Butler Man Sentenced for Willfully Failing to Pay Employment Taxes for Two Businesses

PITTSBURGH, Pa. - A resident of Butler, Pennsylvania, has been sentenced in federal court to three years of probation and ordered to pay restitution of $711,253.10 to the Internal Revenue Service on his conviction of willful failure to collect or pay over tax, United States Attorney Troy Rivetti announced today.

United States District Judge William S. Stickman IV imposed the sentence on Michael D. Funovits, 51.

According to information presented to the Court, between 2016 and 2023, Funovits failed to pay over to the Internal Revenue Service payroll taxes he collected on behalf of his businesses, PennRo Associates LLC and Penn Exteriors LLC.

Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.

United States Attorney Rivetti commended the Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of Funovits.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within federal benefit programs.