Pennsylvania Man Convicted of Money Laundering Jailed

Federal authorities say a northeastern Pennsylvania businessman convicted of money laundering and fraud is behind bars and they are moving to revoke his bail.

The FBI says 48-year-old Charles Costanzo was taken into custody at his Dunmore home on Saturday, and officials at Lackawanna County Prison say he is being held there. A bail revocation hearing is scheduled Wednesday before U.S. District Judge Edwin M. Kosik.

Costanzo was convicted in April of taking $650,000 from a county workers’ compensation fund. Authorities said he funneled more than $300,000 of taxpayer money to a personal account, using some to buy a luxury SUV, and also deposited more than $330,000 from the Luzerne County workers’ compensation fund into a personal investment account.

FBI Agent Kevin Wevodau says the detention is related to an alleged violation of bail conditions, not the conviction. Defense attorney Joshua Lock could not be reached for comment.