SYRACUSE, N.Y. – The former chief financial officer of ParTech in New Hartford pleaded guilty to federal fraud charges Thursday, after stealing money from the company to invest in a diamond selling scheme.
Michael Bartusek, 58, of Fairport, pleaded guilty to wire fraud, money laundering and filing a false tax return.
Bartusek admitted to defrauding the company of $776,000 from the summer of 2015 through the end of 2016, to invest in buying and selling diamonds from overseas. Bartusek told the court he had hoped to gain enough profits from the diamond sales to pay the money back before the fraud was discovered, however, the investment failed and the money was lost.
In an effort to recoup the lost funds, Bartusek admitted he and two others solicited six-figure investments for a company called Integra Diamonds by fraudulently claiming the investors would return profits in one year.
Bartusek also admitted to underreporting his income to the Internal Revenue Service in 2015 by about $123,000, and in 2016 by roughly $46,000.
Bartusek faces up to 20 years in prison for the fraud charge, 10 years for money laundering and three years for filing a false tax return. He may also be fined up to $250,000, and ordered to forfeit $946,000.
His sentencing is scheduled for July 28.