A certified public accountant from Oceanside pleaded guilty Wednesday to tax evasion for embezzling $758,000 from two of his clients — nonprofit Queens schools for special needs students, officials said.
Dennis Stamm, 67, used the money for personal use, including to pay payroll taxes for a separate school for special needs students in Merrick that he operated, according to officials.
In pleading guilty to tax evasion in federal court in Central Islip, Stamm said: “I embezzled the funds and used the money . . . I knew this was wrong and illegal.”
The nonprofit Merrick school — the Long Island Infant Development Program — was foundering, and Stamm used the embezzled money in an unsuccessful attempt to keep it afloat, sources said. The Queens schools were not identified.
Stamm had worked for those schools from 1985 to 2013, and part of his job was to collect payroll taxes and pass the money on to the IRS, according to the information Stamm pleaded to. The embezzlement of the tax money occurred between 2009 and 2013, the information said.
Stamm’s attorney, Marc Gann, of Mineola, and Eastern District prosecutor Charles Rose declined to comment afterward.
Stamm faces up to 5 years in prison, restitution of $1.1 million and a fine of up to $250,000 when he is sentenced. He was released on a personal recognizance bond, pending sentencing.