Pa. court lifts suspension for York County judge after federal prosecutors drop indictment

A York County judge who was accused of stealing unemployment benefits during the COVID-19 pandemic will be able to return to the bench after the federal indictment against him was dismissed.

The state Court of Judicial Discipline, which hears and decides ethical misconduct charges against Pennsylvania judges, lifted an order suspending Judge Steven Stambaugh on Thursday.

He was suspended without pay in October 2024 after a federal grand jury returned a 31-count indictment against him alleging wire fraud, mail fraud, witness tampering and related offenses.

Stambaugh entered a pretrial diversion agreement with federal prosecutors last month, which allows him to avoid a trial or a guilty plea, according to court records. Under the agreement, he will serve a period of supervised release, which is similar to probation.

U.S. District Judge Malachy E. Mannion dismissed the indictment Wednesday at the request of federal prosecutors. It was dismissed with prejudice, meaning that prosecutors cannot refile the charges.

It’s unclear from court records why the U.S. Attorney’s Office agreed to the dismissal. Stambaugh’s lawyers argued last summer that the indictment should be dismissed because prosecutors withheld evidence that raised serious questions about the credibility of a key witness. Mannion denied that request, the York Daily Record reported.

The indictment accused Stambaugh of using fraudulent unemployment claims to pay employees of his York personal injury law firm, Stambaugh Law. According to the indictment, Stambaugh allegedly filed and instructed his employees to file unemployment claims to collect unemployment compensation payments even though they were still employed.

The claims, during the spring of 2020, included $600-a-week Federal Pandemic Unemployment Compensation payments in addition to the weekly benefit the state pays those who are unemployed and unable to find work.

Stambaugh was also accused of pressuring an employee to lie in testimony before the grand jury and seeking a meeting with the witness to ensure they were “on the same page.”

His  trial was scheduled to begin Wednesday in Harrisburg.