Pennsylvania Accountant Pleaded Guilty To Embezzling $1.5M For Sports Betting

U.S. District Court Judge Malachy E. Mannion has sentenced Lawrence Malachefski, an accountant from Pennsylvania, to serve 30 months in prison after the man pleaded guilty to embezzling over $1.5 million for sports betting from his ex-employer.

Pennsylvania accountant was ordered to serve a three-year term of supervised release, pay $1,586,557.45 in restitution

The U.S. Attorney’s Office for the Middle District of Pennsylvania (USAO-MDPA) reported the news on X after Judge Mannion ordered Malachefski’s 30-month prison sentence.

Additionally, the 30-month jail sentence under the charge of wire fraud included a three-year term of supervised release. Judge Mannion also ordered Malachefski to pay $1,586,557.45 in restitution to his former employer.

According to the USAO-MDPA news release, the 39-year-old used to work as a financial controller for Engineered Building Systems, which is a heating, ventilation, and A/C business based in the city of Wilkes-Barre.

In his role, he initiated money transfers between company and outside accounts. Malachefski stole over $1.5 million between the months of March and May 2023.

Malachefski spent the money mostly on “online sports betting on brands including FanDuel, Barstool Sports, DraftKings, and Unibet.” He also converted the funds to his own personal use.

Malachefski underwent treatment for gambling addiction after he embezzled over $1.5 million from his ex-employer

According to his attorney, Lawrence Kansky, Malachefski underwent treatment for gambling addiction after the embezzlement came to light.

“Importantly, Mr. Malachefski has been able to voluntarily cease all forms of gambling, through therapy and support groups…to ensure that he never makes such a serious and harmful mistake against anyone, including himself, ever again,” Kansky wrote in sentencing memorandum.

On April 30, he made a restitution payment of $101,649 to the clerk of courts, according to court filings. Malachefski also has a 2023 tax refund of $723,422 that will be applied to his debt.

Until his incarceration, the Pennsylvania man delivered groceries for Instacart in efforts to make up for what he could.

“Larry admits that he is dealing with some demons, but he is trying his best to make things right,” wrote a friend to the judge, per WNEP News. “I hope you will consider the many good qualities of the man I know before handing down his sentence.”

This case was investigated by the Federal Bureau of Investigation (FBI) – Philadelphia Division and prosecuted by Assistant U.S. Attorney Jeffery St John.