Old Forge Man Admits to Laundering Hundreds of Thousands from Stolen Equipment Sales

An Old Forge, Pennsylvania, man has pleaded guilty to money laundering charges stemming from a scheme to defraud his employer and sell stolen telecommunications equipment online. John Festino, 66, entered his guilty plea before United States District Judge Julia K. Munley on June 22, 2026, according to the United States Attorney’s Office for the Middle District of Pennsylvania. The case highlights the significant financial losses that can result from corporate theft and the subsequent attempts to conceal illicit gains.

The scheme, which reportedly began around December 2024 and continued through July 2025, involved Festino, a former field engineer for a multinational telecommunications company, fraudulently acquiring his employer’s equipment and then reselling it to unsuspecting buyers. Festino utilized online platforms, including eBay, to advertise and sell the stolen property. Investigations revealed that he deposited approximately 434,550 into his personal bank accounts from these sales. To further obscure the origins of these funds, Festino engaged in a series of financial transactions, including withdrawing substantial amounts of cash and purchasing a new vehicle valued at 41,000. The total estimated value of the equipment stolen from Festino’s former employer is approximately $2.2 million.

The investigation into Festino’s activities was conducted by the Internal Revenue Service. The case is being prosecuted by Assistant United States Attorney Tatum R. Wilson. The offense carries a potential maximum penalty of ten years’ imprisonment and a fine of $250,000. Sentencing will be determined by the Judge after considering federal sentencing statutes and guidelines.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, Middle District of Pennsylvania.

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