Streetsboro man faces fed charges Allegedly embezzled $1.6 million from 2002-05

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By Miles Jung-Kilbreath

Record-Courier staff writer

STREETSBORO -- City resident Paul Sabatino has been charged with one count of tax evasion after failing to report $1.6 million he allegedly embezzled between 2002 and 2005 from a business client, according to the Northern District of Ohio U.S. Attorney's Office.

Sabatino, who lived in Seven Hills and Twinsburg when the alleged embezzlement took place, will be arraigned July 24 in Cleveland federal court, according to the United States District Court Northern District of Ohio Web Site.

Sabatino could not be reached for comment.

Sabatino allegedly failed to pay $510,079 from funds he embezzled that he owed to the federal government, according to court records.

According to the records, Sabatino allegedly embezzled the funds from a client of a public accounting firm where he worked to cover gambling debts. The filing says that Sabatino allegedly laundered the funds through Northcoast Landscape Design, a non-existent landscaping company, and Solon resident Jonathan Solonche.

Through 2002 and 2004, records say Sabatino allegedly reported $228,200 on his tax returns from the funds he allegedly embezzled as businesses receipts from Landscape Design. During that time, Sabatino allegedly placed around $1.1 million into the non-existent businesses accounts.

In 2005, Sabatino allegedly laundered $492,218 through Solonche's defunct business, Turnkey Lighting and Sound, by writing checks payable to the business with Solonche returning most of the funds to Sabatino, according to records.

Solonche, who allegedly kept $37,517 from the embezzled funds, pled guilty of tax evasion charges in February and is scheduled to be sentenced on Monday, according to a press release.

The attorney's office is investigating other possible charges against Sabatino.