Assistant to Bell Acres businessman gets probation in multimillion fraud case

The long-time administrative assistant to a wealthy Bell Acres businessman convicted of concealing more than $60 million in income from the federal government will serve two years of probation for her role in the crime.

Ann E. Harris, 62, of Washington County, appeared before Senior U.S. District Judge Joy Flowers Conti on Thursday — more than eight years after she entered a guilty plea in the case to one count of conspiracy to defraud the U.S. government.

Although Harris could have faced 30 months in federal prison based on advisory sentencing guidelines, prosecutors said they were not seeking incarceration given her significant cooperation in their case against her boss, Joseph Nocito, convicted of committing the largest tax fraud ever in Western Pennsylvania.

Nocito, who long fought the charges against him, pleaded guilty last year to one count of conspiracy.

In September, Conti sentenced Nocito, then 83, to one year and a day in prison to be followed by three years of supervised release, including six months of home detention. He received a $250,000 fine and also was ordered to pay $15.8 million in restitution, which he already paid.

Prosecutors said that Nocito, who built a 51,000-square-foot mansion in Bell Acres, wrote off millions of dollars in constructions costs as business expenses.

He was the president and CEO of Automated Health Systems.

The government said he improperly concealed income from the company, which serves as a Medicaid enrollment brokering firm, and underreported profits.

Harris, who began working for Nocito in 1982, was charged before he was, targeted by the government to cooperate in the case against her boss for whom she still works.

She served as his bookkeeper and personal assistant, handling payroll, accounts receivable and accounts payable. In that role, she admitted to classifying Nocito’s personal bills as business expenses.

The government said that between 2006 through 2013, Harris, who had no previous criminal record, was paid wages and bonuses of more than $1 million.

In addition to the term of probation, Conti ordered Harris to pay a $60,000 fine and serve 100 hours of community service.

Defense attorney James DePasquale said that Harris made no excuses and cooperated fully.

“What she did is wrong. What she did is a crime,” he said. “What she did after that to make up for it is exemplary.”

DePasquale, who noted that Harris was on pre-trial release for eight years with no problems, asked for no further penalty, given her cooperation in the case. She met with federal investigators a half-dozen times and testified before the grand jury.

But the judge declined that request.

Conti said that Nocito, who was facing a recommended prison term of 37 to 46 months, received a significant reduction in his sentence because of his age and ill health.

In Harris’ case, the judge said, those concerns aren’t present.

“This is a very serious financial fraud case,” Conti said. “Your participation was critical. I understand the pressure you were under, but you were receiving significant remuneration.”

Harris apologized to her family, the government and the court.

“I promise the court the actions that got me here today will never, ever happen again,” she said.