Robert Powell, the former Luzerne County attorney central to the notorious "Kids for Cash" scandal, was sentenced on Thursday to four years in federal prison for tax evasion. Powell, now 66 and a resident of Palm Beach, Florida, had previously pleaded guilty in August 2024 to a scheme designed to conceal millions of dollars in income from the IRS. According to the Department of Justice, the charges stemmed from legal fees generated by his former firm, the Powell Law Group, which he was forced to relinquish control of following his 2009 suspension from the bar. Despite no longer managing the firm, Powell retained the right to a significant portion of future fees, including those from a massive $5.15 billion mass tort settlement.
Prosecutors revealed that Powell engaged in a sophisticated evasion tactic by utilizing "nominee" bank accounts—accounts held in the names of others—to hide over $18 million in income earned between 2010 and 2022. During a 2019 IRS audit, he allegedly doubled down on the deception by making false statements to federal agents, claiming his only source of funds were loan advances and that he held no ownership in any corporations. This latest prison term follows a previous 18-month sentence Powell served starting in 2011 for his role in the original judicial kickback scheme, where he paid nearly $1 million to former judges Mark Ciavarella and Michael Conahan.
In addition to the 48-month prison sentence, Powell has been ordered to pay $3.5 million in restitution to the IRS and a $100,000 fine. The sentencing judge noted that Powell’s conduct continued even after his prior incarceration, highlighting a persistent pattern of financial criminality. Once his prison term is complete, he will serve three years of supervised release. The "Kids for Cash" scandal remains one of the most significant stains on Pennsylvania’s judicial history, having led to the overturning of thousands of juvenile convictions and long prison sentences for the two judges involved.
