PHILADELPHIA, PA — An Upper Merion man has pleaded guilty in federal court to wire fraud and filing false tax returns after admitting to a years-long scheme that defrauded hundreds of customers who paid for headstones and engraving services that were never delivered, federal prosecutors announced.
Gregory J. Stefan Jr., 56, pleaded guilty Tuesday before U.S. District Judge Juan R. Sánchez to seven counts of wire fraud and four counts of filing a false tax return. The charges stem from his operation of headstone sales businesses and his failure to report income earned through those companies, according to the U.S. Attorney’s Office.
Federal prosecutors alleged that between January 2018 and September 2023, Stefan, through his businesses 1843 LLC and Colonial Memorials, entered into contracts with customers seeking custom headstones and engraving services for deceased loved ones while knowing the work would not be completed within the promised timeframe, if at all.
According to court filings and statements made in court, Stefan typically required customers to pay large upfront deposits, often the full purchase price, but routinely failed to deliver monuments by the projected dates. Prosecutors alleged that when customers sought updates, Stefan either ignored their inquiries or assured them their orders would soon be completed without taking steps to fulfill those promises.
The U.S. Attorney’s Office alleged that nearly 500 customers paid Stefan more than $1.5 million for orders that were never completed or refunded.
Prosecutors also alleged that Stefan falsely reported earning no income on his federal tax returns for tax years 2018 through 2021 despite receiving income from the businesses.
As part of his federal plea agreement, Stefan accepted responsibility for similar offenses charged in 10 local criminal cases in Pennsylvania, New Jersey, and Delaware, involving an additional $210,000 in victim losses.
Stefan faces a maximum possible sentence of 152 years in prison. A sentencing date has not yet been scheduled.
The case was investigated by the FBI and IRS Criminal Investigation. Assistant U.S. Attorney Jessica Rice is prosecuting the case.
The U.S. Attorney’s Office credited the Delaware County District Attorney’s Office, Northampton County District Attorney’s Office, the Bergen, Burlington, Gloucester, Middlesex, and Passaic County prosecutors’ offices in New Jersey, and the Delaware Department of Justice for assisting in the investigation and resolution of the case.
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