On Tuesday, October 8, 2024, the York Daily Record reported that a federal grand jury indicted York County Judge Steven Stambaugh on 31 counts related to wire and mail fraud, witness tampering, and obstruction of justice. The indictment alleges that Stambaugh directed employees at his former law firm to fraudulently collect unemployment benefits during the COVID-19 pandemic and later attempted to conceal the fraud by intimidating a witness.
The indictment, filed in the U.S. District Court, includes 26 counts of wire fraud, two counts of mail fraud, two counts of witness tampering, and one count of obstruction of justice. Stambaugh, who has served on the York County bench since his election in 2021, is accused of orchestrating a scheme to defraud the Commonwealth of Pennsylvania.
According to the indictment, between March 19 and May 18, 2020, Stambaugh instructed employees at Stambaugh Law, his personal injury firm, to apply for and collect unemployment benefits while they continued to work. The indictment claims that Stambaugh informed his employees on March 20, 2020, that they were being laid off but required them to remain on the job. He allegedly offered to cover the difference between their salaries and the unemployment benefits they received.
The indictment further asserts that Stambaugh submitted false forms to the state, misrepresenting employees as laid off when they were still actively working. One employee was reportedly encouraged by Stambaugh to lie to the state about their employment status during this time.
In addition to the fraud charges, Stambaugh is accused of attempting to intimidate a witness to provide false testimony to federal investigators. He allegedly told an employee to misrepresent the nature of their work during the purported layoff and to claim that any work performed was voluntary. Stambaugh reportedly warned the employee against cooperating with federal authorities and suggested that he would retaliate against another employee for reporting his conduct.
The indictment notes that Stambaugh’s actions took place while he was serving as a judicial officer for the Pennsylvania Court of Common Pleas for York County. Wayne A. Jacobs, special agent in charge of the FBI’s Philadelphia office, commented on the indictment, stating that Stambaugh’s actions aimed to exploit government funds intended for pandemic relief.
Stambaugh was elected to the bench despite receiving low ratings from the York County Bar Association, which found him “not presently qualified” for the position. His election occurred in November 2021, alongside Joe Gothie, while Suzanne Smith, who received the highest rating from the bar association, was not elected.
The investigation into Stambaugh’s conduct reportedly began during the 2021 election campaign, with multiple employees from his law firm approached by federal investigators. One former employee, Sarah Livengood, described being contacted by the FBI regarding her employment and potential involvement in the fraud scheme. She stated that investigators asked her questions about unemployment compensation and provided her with a subpoena to appear before a grand jury, although she was not called to testify.
Other former employees also reported receiving subpoenas and participating in interviews with federal investigators. One former employee noted that they reached out to Stambaugh while investigators monitored the conversation.
Prior to his election as a judge, Stambaugh was a well-known personal injury attorney, recognized for his advertisements throughout York County, which often featured him advocating for law enforcement. His candidacy for the judicial position was supported by local police unions.
As of now, the York County court administration has declined to comment on Stambaugh’s status following the indictment. The maximum penalties for the charges he faces are significant, with mail and wire fraud and witness tampering carrying sentences of up to 20 years in federal prison, while obstruction of justice could result in an additional 10 years.
Source: York Daily Record
