‘This was not a simple lapse in judgment.’ Former Penn State employee sentenced for fraud

A former Penn State employee who defrauded the university of more than $267,000 over the course of more than a decade was sentenced Wednesday to one year and one day in prison.

Daniel P. Sickels, 49, of Mifflin County, is scheduled to report Sept. 19. He was also sentenced by Chief U.S. Middle District Judge Matthew W. Brann to two years of supervised release.

The former networks and systems manager in the university’s Office of Development and Alumni Relations agreed to pay more than $267,000 in restitution. He’s set to pay at least $200 per month once released from prison, if he has not yet repaid the university.

Sickels used his former position to buy equipment he falsely claimed was necessary to upgrade, replace or maintain servers. He purchased about $1.3 million of equipment during his tenure, a federal prosecutor wrote in a memo sent to Brann.

He sold a “substantial portion” of the equipment for his benefit to third-party buyers outside Pennsylvania, Assistant U.S. Attorney Alisan V. Martin wrote. Sickels pleaded guilty in February to one count of wire fraud.

The purchases dated back to 2005 and continued through 2017. Sickels “took advantage of the trust placed in him,” Martin wrote.

“His scheme to steal from the University went on for years. Each purchase and sale of items involved dozens of deliberate steps. From creating work orders through the University to identifying buyers, emailing buyers, mailing equipment, Sickles’ willingness to engage in each of these steps throughout this long-running fraud exhibits a comfort in his own criminality,” Martin wrote. “This was not a simple lapse in judgment. Sickels knowingly and intentionally stole from his employer multiple times over the course of multiple years.”

Assistant Federal Public Defender Ari D. Weitzman fought to keep Sickels’ prison term as short as possible, writing in a 16-page memo sent to the judge that Sickels carried out the fraud to keep his family afloat financially.

Sickels, Weitzman wrote, made about $75,000 annually, a salary that “could only be stretched so far” to support a family of eight. One of his adult children has Down syndrome and requires “constant monitoring,” Weitzman wrote.

Sickels has no prior criminal history. He and his ex-wife filed for bankruptcy in 2009, Weitzman wrote.

The Sickels also host a Down syndrome fundraiser that has raised more than $10,000. His wife, Weitzman wrote, describes him as a “caring man who would do anything for anyone.”

A Penn State spokesperson previously told the CDT the university was made aware of the allegations after receiving a report from another employee. The university launched an investigation before handing it over to the FBI.

Sickels resigned when he was confronted by the university and now works as a delivery driver. He volunteers on the Mifflin County Elementary Wrestling board and the Mifflin County Youth Baseball League.

The university “appreciates the court’s careful consideration of this important matter,” Penn State spokeswoman Lisa Powers wrote in an email Wednesday. Penn State encouraged employees to report potential wrongdoing.

“While we can never fully guarantee that an employee will not abuse the system, Penn State is committed to financial integrity and to continuous improvement in our processes and systems,” Powers wrote. “Over the past several years, and as part of its ongoing business process improvements, the University re-evaluated purchasing protocols, including additional limitations on use of and access to Penn State purchasing cards, created a more centralized model for purchases, and used data analytics to monitor purchases across the University.”

Those who witness potential workplace misconduct may contact the Penn State Hotline. Reports can be anonymous.