Ex-Nursing Home CEO Charged With $169,000 Racketeering Scheme :: exploreClarion.com
CLEARFIELD CO., Pennsylvania (EYT) – A former retirement home CEO is facing a long list of charges stemming from a $169,000 racketeering scheme.
According to court documents, DuBois-based State Police have filed the following criminal charges against a 64-year-old man Samuel Joseph Zaffutoof Sykesville, Friday, May 13, 2022, in the office of Magistrate District Judge David S. Meholick:
– Corrupt Org-Int/Control in Enterprise, Felony 1
– Corrupt Organizations – Employee, Felony 1
– Theft by failure to make required provision of funds, crime 2
– Theft by default of having the required funds, Felony 3 (two counts)
– Theft by deception-false impression, Felony 2
– Theft by Deception-False Impression, Felony 3
– Theft by unlawful taking of personal property, felony 3 (10 counts)
– Receipt of Stolen Goods, Felony 3
– Accessing device for other reason is not authorized by issuer, Felony 3
– Theft by illegal taking of movable property, offense 1 (14 counts)
– Theft by illegal taking of movable property, offense 2 (three counts)
According to a criminal complaint filed Friday, May 13 in the office of Judge David S. Meholick, Samuel Zaffuto was employed by Christ the King Manor, the victim, in 1985. He was promoted to director and CEO in May 2004. He was placed on administrative leave due to the discovery of “numerous concerning issues” on June 4. 2019, and his employment ended on July 12, 2019.
It has been noted that during his employment at Christ the King Manor, Zaffuto was also a board member or president of the Sykesville AG & Youth Fair and vice president of the Pennsylvania State Association of County Fairs. He also took care of the accounting records for Sykesville AG & Youth Fair.
On February 3, 2021, Christ the King Manor asked PSP DuBois to investigate the incident.
Christ the King Manor hired chartered accountants to assess the financial problems that emerged during and after Zaffuto’s employment. The accountants prepared an independent accountants’ report on the agreed procedures, which was sent to PSP DuBois with the request for investigation.
That document listed six areas of activity that appeared to be criminal in nature, the complaint states.
On February 24, 2021, after reviewing the report, PSP contacted Christ the King Manor and requested that a forensic audit be carried out, and an accounting firm was retained to carry out a forensic accounting investigation, the complaint states.
According to the complaint, on March 24, 2022, the forensic audit was conducted by the accounting firm. During the period between May 13, 2017 and Zaffuto’s administrative leave on June 4, 2019, the following was discovered:
1. The concealment of two unauthorized bank accounts by Christ the King Manor was discovered during Zaffuto’s administrative leave. One account had funds embezzled by Zaffuto during his employment. The other account – called the “charity account” – had $151,575.63 from various donation funds and $21,330.00 from the Glen & Ruth Mengle Trust diverted to it. This account contained donations intended for the use of Christ the King Manor, but which were used for personal reasons by Zaffuto. Zaffuto used funds from this account to support the Sykesville AG & Youth Fair and for other purposes unrelated to victim use. Zaffuto used this account to make illegal payments to known people for amounts of $300.00, $720.00, $801.55, $112.00, $2,400.00, $1,660.00, $1,375.00, $2,186.00, $36.00, $1,000.00, $500.00, $600.00, $135.0 and $135.0. Zaffuto also paid the Sykesville AG & Youth Fair in the amount of $25,000.00 and paid the electricity bills belonging to the Sykesville AG & Youth Fair in the amount of $3,382.52. All of these transactions and events were entered into without the authorization and approval of the Christ the King Manor Board of Directors.
2. In June 2018, Zaffuto purchased a new 2018 Ford F-150 truck for approximately $58,000.00 without the victim’s approval. The truck was financed at 7.79%, which was above market interest rates at the time. This resulted in the deduction of a monthly payment from the bank account of the Manoir du Christ-Roi. Zaffuto used the truck for personal use and to tow his foot trailer to various locations at the State Fair, having it registered to Christ the King Manor. This sale was concluded without the authorization and approval of the board of directors of the Manoir du Christ-Roi.
3. Zaffuto used Christ the King Manor vendor accounts to personally purchase food and other items for his food trailer which he took to fairs and festivals for $20,333.12. These items have not been endorsed by Christ the King Manor and were intended for personal use by Zaffuto only.
4. Zaffuto used Christ the King Manor’s credit card for personal purposes resulting in a charge of $1,516.24. All of these transactions and events were carried out without the authorization and approval of the Christ the King Manor Board of Directors.
5. Zaffuto directed employees of Christ the King Manor to perform the duties of Sykesville AG & Youth Fair, while being compensated by Christ the King Manor, who were outside the scope authorized by the Christ the King Manor Board of Directors (i.e. employees were not working at the approved booth at the Sykesville AG & Youth Fair). Zaffuto admitted on June 4, 2019 to having demanded that certain employees perform these functions, while being compensated by the victim. This created a financial loss for the victim in the amount of $10,049.59, $5,327.28, $2,536.80, $2,568.00 and $1,196.80 per employee. All of these transactions and all of these events were entered into without the authorization and approval of the victim.
6. In addition to using employees to work at the Sykesville AG & Youth Fair, Zaffuto invited several employees to attend the State Fair’s annual convention in January 2018 and 2019. The employees received their salaries paid by Christ the King Manor to attend, even though it was not approved by the Christ the King Manor Board. This created a financial loss for the victim in the amount of $695.04, $338.24 and $490.24 per employee. Zaffuto also paid himself $1,440.00 to attend. All of these transactions and all of these events were entered into without the authorization and approval of the victim.
7. The Christ the King Manor Auxiliary Committee had a concessions booth at the Sykesville AG & Youth Fair each year. Based on a review of accounting records, it appears the Stand profited in excess of $12,000.00 per year using the resources of Christ the King Manor. Between May 15, 2017 and June 4, 2019, Zaffuto failed to provide approximately $24,000.00 in profits made by the Auxiliary Stand to the victim.
Based on this investigation, including the forensic audit currently being completed, PSP DuBois believes there is probable cause to substantiate the charges listed above.
During the period from May 13, 2017, through the termination of Zaffuto’s employment, Christ the King Manor suffered a financial loss of $169,179.49 due to fraudulent payouts, corrupt business practices and racketeering , as well as the abuse of Christ the King Manor. resources by Samuel Zaffuto.
Court documents indicate that Zaffuto is awaiting a preliminary hearing.
Copyright © 2022 EYT Media Group, Inc. All rights reserved. Any copying, redistribution or retransmission of the content of this service without the express written consent of EYT Media Group, Inc. is expressly prohibited.