Joseph Nocito Sr., whose massive Bell Acres mansion was built upon years of tax fraud, changed his plea in federal court Thursday to guilty, putting an end in sight for the case that has dragged on for nearly five years.
Nocito, who will be 81 later this month, stood flanked by his attorneys and answered each question posed to him by U.S. District Judge Joy Flowers Conti over the course of nearly an hour. He ultimately pleaded guilty to one count of tax conspiracy.
Per the plea agreement read in court late Thursday afternoon, Nocito acknowledged the other nine charges of tax evasion against him, and his actions that led to those charges can be considered in his eventual sentencing.
Nocito’s answers were limited largely to “yes, your honor,” though he expounded when asked if he’d consumed any alcohol in the past day: Two martinis before dinner and some amaretto with his chicken parmesan Wednesday night, he said.
Asked if he was under the care of a physician, he said he underwent surgery on his face for cancer about a month ago.
The change of plea means there could be an endpoint soon in the years-long saga that has centered upon the sprawling mansion, believed to be the largest private residence in Pennsylvania.
Sentencing is set for March 23.
Nocito’s attorney, Phil DiLucente, declined to comment but told Judge Flowers Conti that his client intends to pay his restitution — about $15.8 million — by the time he is sentenced.
The maximum penalty under the sentencing guidelines is five years in federal prison followed by up to three years of supervised release.
Nocito was indicted in early 2018 on one charge of conspiracy and nine counts of filing false tax returns, though the case against the former CEO of Automated Health Systems had been a long time coming.
The investigation came to light in 2015 when his then-secretary, Ann Harris, pleaded guilty to conspiring with her then-boss to shield some $27 million from the IRS. Harris, in pleading guilty, agreed to cooperate in the case against Nocito.
The investigation into Nocito’s finances began nearly a decade before his indictment. The scheme centered around his massive estate, which some estimates peg as worth $20 million, and how exactly it was built and paid for.
Investigators said they believed that Nocito and others used his wide network of companies to hide income and paint the home’s construction as business expenses. Among his firms at the time were Automated Health Systems, Nocito Enterprises, Automated Health Services, Management Financial Services, Northland Properties, Palace Development Co., Donotti Properties and Jonolley Properties.
After myriad continuances, COVID delays and a failure to reach a plea agreement earlier this year, Judge Flowers Conti had initially set a trial date for September. In June, court filings show, the sides agreed that they would not be able to meet that timetable, and the trial was pushed to early 2023.
Investigators founds dozens of company ledger entries that painted building and other personal expenses as legitimate costs faced by his companies. Ledger entries were written as categories such as “consulting,” or “repairs and maintenance,” and construction invoices were paid through Nocito’s companies.
In one example presented as would-be evidence by federal prosecutors, a check for $76,000 for interior design kitchen work was classified as “consulting” in one of the company’s ledgers. In another example classified as “consulting,” the check was for $6,100 for artwork for the home’s wine cellar.
Prosecutors said they found a document from September 2000 titled “list of thoughts and life lessons.” Among the 25 bullet points, No. 7 was “Maintain the lifestyle of the millionaire next door at least until you achieve the stage in your life where you have all the material things you want and the next generation is taken care of. Then it becomes a choice of giving it to the government or building the house of your dreams.”
First Published: November 17, 2022, 10:37 p.m.
