SCRANTON, Pa. — A Luzerne County accountant admitted Tuesday in federal court he embezzled more than $1.5 million from his employer in the span of a few months, the U.S. Attorney’s Office for the Middle District of Pennsylvania said.
Lawrence Malachefski, 39, suffers from a gambling addiction, but is now in treatment and plans to soon begin paying back the seven-figure sum owed to his former employer, said Malachefski’s attorney, Lawrence Kansky.
Malachefski worked as a financial controller for Engineered Building Systems, a Wilkes-Barre based heating, ventilation and air conditioning business. As part of his job, he could independently initiate money transfers between the company’s accounts to external accounts, according to court filings.
Between March and June last year, more than $1.5 million of the company’s funds ended up in accounts connected to sports betting, according to charging documents filed in federal court. Full restitution is part of his plea agreement.
“Malachefski acknowledged that the monetary loss attributable to his conduct was greater than $1.5 million and that he abused a position of private trust in a manner that significantly facilitated the commission of his crime,” federal prosecutors said in a statement issued by a spokeswoman.
A representative from EBS declined to comment Tuesday before first checking with their attorney.
Malachefski, of Wilkes-Barre, agreed to waive indictment by a federal grand jury and plead guilty to one count of wire fraud. He will undergo a presentence investigation. A sentencing date is not yet set.
Attempts to reach Malachefski for comment were unsuccessful. Kansky said his client is taking responsibility for his actions.
A judge could sentence Malachefski to a maximum of 20 years in prison, three years of supervised release and fine him an extra $250,000, according to the plea agreement.
Assistant U.S. Attorney Jeffrey St. John is prosecuting.
