Downstate man admits defrauding employer

ST. LOUIS -- A southern Illinois man has pleaded guilty to federal charges that accused him of embezzling more than $1.5 million from his employer.

Fifty-eight-year-old Michael Pallagi of Maryville, Ill., pleaded guilty in U.S. District Court in St. Louis to mail fraud.

Pallagi admitted creating two bogus companies to fraudulently bill Steris Corp. over several years until 2006, using the money to pay personal expenses, buy motorcycles and cars and make home improvements.

Ohio-based Steris makes sterilization systems for health care, scientific research and industrial markets.

Pallagi has agreed to forfeit his Illinois home and repay at least $1.1 million.

Sentencing is set for Jan. 9.