Judge Rules in Favor of Estate in $500,000 Fraud Case Involving Tax Accountant
Former Tax Accountant Ordered to Repay Almost $500,000 to Estate of Phoenixville Teacher
A recent ruling by a Common Pleas Court judge has shed light on a case of financial exploitation involving a former Phoenixville Area High School teacher and her longtime tax accountant and friend. The judge ordered Patricia Petitti to repay the estate of Deborah Francis a staggering $492,000, plus interest and attorney’s fees, after it was revealed that Petitti had falsely taken the money from Francis before her death.
The court found that Petitti had convinced Francis to give her the money under the guise of setting up a real estate company to save on taxes. However, it was later discovered that the company did not exist, and Petitti had used the funds to purchase a home for herself and her husband in Ocean View, Del.
During the civil trial, Petitti claimed that the money was a gift from Francis, but Judge Thomas P. McCabe rejected this notion, stating that there was insufficient evidence to support her claim. McCabe emphasized that Petitti had breached the trust placed in her by Francis and had used the money for personal gain.
The estate, represented by attorneys from the West Chester law firm of Unruh, Turner, Burke and Frees, successfully uncovered the paper trail of the funds through records subpoenaed from various sources. The attorneys highlighted the importance of seeking justice for those who have been exploited by trusted individuals and commended Judge McCabe’s ruling as a message that those who violate their positions of trust will be held accountable.
The scheme orchestrated by Petitti involved manipulating tax returns and creating a fictitious company to continue extracting money from Francis, totaling over $650,000 with interest and fees. Once the estate enters judgment against Petitti, they will begin execution on any bank accounts, assets, and real estate owned by her.
Deborah Francis, a beloved teacher at Phoenixville Area High School for 30 years, passed away in November 2019 at the age of 80. She was a recipient of several community awards and was highly regarded by her colleagues and students.
The case serves as a cautionary tale about the importance of vigilance and due diligence when entrusting financial matters to others. It also highlights the legal recourse available to victims of financial exploitation, ensuring that justice is served in cases of betrayal and deceit.