Nicholas Trombetta’s attorney stood before a federal judge Tuesday and asked her not to base his client’s sentence on “his worst day,” an “aberration of an otherwise exemplary life.”
But the lead prosecutor in the tax conspiracy case against the founder of the Pennsylvania Cyber Charter School in Beaver County countered, “Dr. Trombetta’s worst day lasted quite a while.”
From 2006 to 2012, it turns out.
Trombetta, who pleaded guilty in August 2016 to a tax conspiracy charge, will serve 20 months in federal prison.
According to the U.S. Attorney’s office, Trombetta siphoned $8 million from the school to a network of businesses he created and failed to pay $437,632 in taxes.
In addition to his prison term — which Chief U.S. District Judge Joy Flowers Conti said she would recommend he serve at a minimum security facility in Morgantown, W.Va. — Trombetta must also serve three years of supervised release and perform 40 hours of community service.
He must also pay restitution for the tax loss.
Judge Conti said that because Trombetta does not have the ability to pay a fine, she would not impose one.
“You were the leader, and you admitted that,” the judge said. “It came down to greed at the end of the day.”
Trombetta pleaded to tax conspiracy stemming from his diversion of money to a company he created in 2008, Avanti Management Group. It was run by four straw owners, from whom he would later assume control and pay them $500,000 for reduced ownership, prosecutors said.
Avanti did contract work for the National Network of Digital Schools, a nonprofit created by Trombetta to manage the cyber school.
Another company, one2one, which was owned by Trombetta’s sister, Elaine Neill, was used by Trombetta for his daily expenses, the U.S. Attorney’s office said.
Trombetta was initially indicted on additional charges of mail fraud, theft or bribery concerning a program receiving federal funds and filing a false tax return. Prosecutors withdrew those counts Tuesday following sentencing.
Defense attorney Adam Hoffinger told the court that his client had previously lived a law-abiding life and had an unblemished career.
He called him “a visionary educator, teacher, wrestling coach, mentor and innovator,” who was always charitable.
Trombetta, who previously served as superintendent of the Midland Borough School District, created both PA Cyber and Lincoln Park Performing Arts Charter School after the district’s high school was forced to close in 1986.
His work spawned the creation of hundreds of jobs in Midland, and, Trombetta said during his sentencing, thousands more across the country. The defense submitted a video to the court showing what it called “The Miracle of Midland,” recounting his history there.
Recounting Trombetta’s work with students, and now with a group that tries to reintegrate ex-convicts back into society, Mr. Hoffinger asked the court to sentence his client to a period of house arrest with the possibility of work release.
“We know we’re asking for something extraordinary, for someone whose life has been extraordinary,” he said. “The damage has been done. All he can do now is try to redeem himself.”
Trombetta, who had dozens of supporters in the courtroom Tuesday, apologized for his actions, saying he failed to pay his fair share of taxes.
“I tried throughout life to be a good leader, a good role model to the students of Midland and the Pittsburgh area,” he said. “In the end, I failed. I let a lot of people down. But I’m here today to try to set things right.”
Trombetta told Judge Conti that he considered it his “life’s privilege” to be part of Midland’s transformation .
“I am deeply sorry for what I have done, especially that I let down a community I fought so hard for.”
In addressing the court, Assistant U.S. Attorney James R. Wilson referred to the 106 letters of support submitted on Trombetta’s behalf, touting his good reputation and character.
Quoting his father, Mr. Wilson said, “Reputation is what you are when everyone can see you, and the lights are on. Character is what you are when you think no one can see what you’re doing.
“He acted to enhance his own self-interest with public money.”
Mr. Wilson urged the court to sentence Trombetta to a guideline range sentence of 37 to 46 months in prison, noting that as part of the six-year scheme, the defendant misdirected $8 million and personally profited from it. He said there was “overwhelming evidence of the defendant’s abuse of his public position of trust.”
“He, alone, was the one who made this process go forward,” Mr. Wilson said.
He also told the court that a prison sentence would send a message to others who commit white-collar crimes.
“Public officials who have access to public money must be held to the highest standards of duty and care,” Mr. Wilson said.
But throughout his presentation, Mr. Hoffinger repeatedly disputed the prosecution’s argument that the underlying case involved a figure of $8 million.
“It’s not about $8 million and the theft of $8 million,” he said. Instead, the attorney repeated, it’s a tax loss of $467,000.
“This crime, this offense, has been mischaracterized,” Mr. Hoffinger said. He added, too, that the victim of the crime was not PA Cyber’s students, but the IRS.
In the end, Judge Conti said that issue wasn’t before her.
“It was a complex process,” she said to Trombetta. “It was set up so it wouldn’t be divulged to protect your position at PA Cyber.”
He structured his scheme, Judge Conti said, so that no one would know he was violating his ethical duties by collecting money that came from the school.
“That was a breach of trust people had in you. There have to be serious consequences.”
Paula Reed Ward: pward@post-gazette.com, 412-263-2620 or on Twitter: @PaulaReedWard.
First Published: July 24, 2018, 4:49 p.m.
Updated: July 24, 2018, 11:49 p.m.
