Nassau County District Attorney Kathleen Rice announced the arrest today of a Freeport man for stealing thousands of dollars of client funds while conducting electronic transfers meant for the payment of federal and state payroll taxes.Pozo, George
George Pozo, 42, was arrested today and arraigned before Nassau District Court Judge Andrea Phoenix on a charge of Grand Larceny in the 2nd Degree (a C felony). Judge Phoenix conditionally discharged the defendant to probation. Pozo faces up to five to 15 years in prison. He is due back in court on Oct. 22.
“When this defendant stole funds from this company, he put the fiscal health of his client’s business and the jobs of dozens of employees at risk for his own personal gain,” DA Rice said. “My office will continue to vigorously prosecute those who abuse the trust placed in them by their clients.”
DA Rice said that Pozo, as the president of KGP Payroll Services, Inc., was authorized by a client to make withdrawals from the client’s bank account for the payment of federal and state payroll taxes. From Jan. 8, 2009 to Nov. 7, 2011, Pozo withdrew $686,859.97 from the client’s account by electronic transfer into the KGP operating account. However, Pozo only forwarded $256,864 for the payment of taxes, leaving a net theft of $429,995.97. The KGP operating account closed with a zero balance in January 2013.
DA investigators determined that $86,627.89 in checks were drawn from the KGP account by Pozo and made payable to himself, his wife, and for other purposes not related to the payment of his client’s payroll taxes.
The case was referred to DA Rice’s office in June 2013. Pozo was arrested by DA investigators on Sept. 24.
Assistant District Attorney Peter Mancuso of DA Rice’s Government and Consumer Fraud Bureau is prosecuting the case. Pozo is represented by Michael DerGarabedian, Esq.
The charges are merely accusations and the defendant is presumed innocent until and unless found guilty.