Old Forge man pleads guilty to money laundering

Date: June 25, 2026

Contact: [email protected]

Scranton, PA - The United States Attorney's Office for the Middle District of Pennsylvania announced that John Festino of Old Forge, Pennsylvania, pled guilty on June 22, 2026, before United States District Judge Julia K. Munley to money laundering.

According to United States Attorney Brian D. Miller, beginning in or about December 2024 and continuing through July 2025, Festino, a former field engineer employed by a multi-national telecommunications company, devised a scheme to fraudulently obtain telecommunications equipment owned by his employer and resell the property to third-party buyers. Festino advertised the sale of stolen equipment via the internet, including on eBay. In total, Festino received approximately $434,550 in his personal bank accounts from the sales of stolen equipment. During the scheme, Festino conducted a series of financial transactions involving the fraudulently obtained funds, including withdrawing large sums of cash and purchasing a new vehicle for $41,000. Festino's former employer estimates that the value of the stolen equipment is approximately $2.2 million.

The matter was investigated by the Internal Revenue Service. Assistant United States Attorney Tatum R. Wilson is prosecuting the case.

The maximum penalty under federal law for this offense is ten years' imprisonment and a fine of $250,000. A sentence following the finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. It is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code. IRS-CI has 18 field offices located across the U.S. and maintains an international presence through attaché posts abroad.