Eight individuals have been charged with orchestrating a large-scale fraudulent lending scheme targeting small business owners across the United States. The announcement was made by U.S. Attorney Alina Habba.
The defendants face multiple counts of conspiracy to commit wire fraud. The individuals charged include Joseph Rosenthal from Holmdel, New Jersey; Nicholas Smith from Bradley Beach, New Jersey; James Missry from New York City; Paul Cotogno and Blaise Cotogno from New Jersey; Adam Akel from Long Branch, New Jersey; Matthew Robertson from Miami, Florida; and Nicholas Winter from Asbury Park, New Jersey. All except Winter, who is in custody on unrelated charges, appeared in federal court and were released on bail.
"These defendants perpetrated a years' long scheme to defraud hard-working business owners in New Jersey and across the United States, stealing millions of dollars from thousands of victims. These charges reflect our Office’s commitment to holding accountable those who prey on small business owners trying to support their communities and earn a decent living." This statement was given by U.S. Attorney Alina Habba.
According to the filed documents and court statements, since June 2020, the defendants engaged in fraudulent practices to enrich themselves under the pretense of providing financing to small businesses. Business owners were misled into making upfront payments with the promise of receiving loans or credit lines, which were never provided. Instead, the defendants ceased communication after receiving the payments, defrauding numerous victims of millions of dollars.
The wire fraud conspiracies carry a potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The investigation was conducted by special agents and intelligence analysts of the FBI, led by Acting Special Agent in Charge Terence Reilly in Newark.
Assistant U.S. Attorneys James H. Graham and Blake Coppotelli represent the government in this case. It is important to note that the charges are accusations, and the defendants are presumed innocent until proven guilty.
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