East Liverpool man sentenced in $8M tax scheme

PITTSBURGH - The founder and former CEO of the Pennsylvania Cyber Charter School has been sentenced in federal court in Pittsburgh to 20 months in prison on a charge of tax conspiracy, United States Attorney Scott W. Brady announced today.

Nicholas Trombetta, 63, of East Liverpool, was sentenced by Chief United States District Judge Joy Flowers Conti.

The court was advised that Trombetta created a series of connected for-profit and not-for-profit entities to siphon taxpayer funds out of PA Cyber and to avoid federal income-tax liabilities. Trombetta funneled approximately $8 million from PA Cyber through an entity then known as NNDS and finally to a company called Avanti Management Group, where Trombetta had free access to the funds.

At the sentencing proceeding, Judge Conti also imposed a three-year term of supervised release on Trombetta. She also ordered he perform community service upon his release from prison.