Judge suspended without pay after indictment for alleged fake layoffs
A common pleas judge in York County, Pennsylvania, has been suspended without pay following his indictment for allegedly urging four law firm employees to collect unemployment benefits during the COVID-19 pandemic while continuing to work from home. (Image from Shutterstock)
A common pleas judge in York County, Pennsylvania, has been suspended without pay following his indictment for allegedly urging four law firm employees to collect unemployment benefits during the COVID-19 pandemic while continuing to work from home.
The Pennsylvania Court of Judicial Discipline suspended 61-year-old Judge Steven Stambaugh of Pennsylvania from the bench Oct. 9, report Law360 and the York Dispatch.
The Judicial Conduct Board of Pennsylvania sought Stambaugh’s suspension earlier that day, citing a 31-count indictment alleging mail and wire fraud, witness tampering and obstruction of justice, according to an Oct. 9 press release that included the petition and indictment. The U.S. Department of Justice summarized the allegations in an Oct. 8 press release.
Stambaugh began service as a judge in January 2022.
The Oct. 8 indictment, filed in the U.S. District Court for the Middle District of Pennsylvania, says beginning in March 2020, Stambaugh urged his employees to collect unemployment benefits. He allegedly promised to make up the difference between the benefits and their usual pay. The benefit payment was expanded during the pandemic.
The employees were instructed to falsely say they had been laid off in March 2020 and later to file false certifications that they did not work during preceding weeks, the indictment says.
Stambaugh’s alleged aim was to “unjustly enrich himself by using government funds to pay the employees of Stambaugh Law,” according to the indictment.
Stambaugh is also accused of omitting information about the ostensible layoffs in applications for government loans and loan forgiveness during the pandemic.
The indictment also alleges that Stambaugh tried to persuade an employee to state that any work that he performed for the firm was voluntary, if he was questioned by federal investigators. He also asked the employee to meet with him in advance of grand jury testimony to ensure that they were “on the same page,” according to the indictment. Those actions allegedly happened from April 2021 through November 2022.
Jerry Russo, Stambaugh’s lawyer, told the York Dispatch after the indictment that he and his client were evaluating the charges.
“We’re doing our own investigation of the facts,” Russo said.
Stambaugh did not immediately respond to a request for comment submitted through his firm website. Russo did not immediately comment when the ABA Journal reached him by phone.
