By: Najla Alexander
NJ Authorities announced that a Bergen County man admitted to more than $487,000 in overtime fraud involving projects on which he worked relating to the Hudson Bergen Light Rail (HBLR).
U.S. Attorney Philip R. Sellinger said Joseph Ferrara, 56, of North Arlington, pleaded guilty before U.S. District Judge Julien X. Neals in Newark federal court to one count of embezzling, stealing and obtaining by fraud more than $487,000 of funds belonging to and under the care, custody, and control of the HBLR.
According to the documents filed in this case:
Officials stated from January 2018 through April 2020, Ferrara submitted fraudulent claims for compensation related to work performed on HBLR projects on which he had worked as an employee of a subcontractor specializing in electrical work.
According to officials, the HBLR maintains approximately two dozen stations throughout Hudson County and serves more than 50,000 passengers each weekday.
Ferrara, officials say, who supervised numerous workers on HBLR projects, was compensated at a regular rate for normal workday hours, at an elevated overtime rate for work performed during non-regular weekday hours and Saturdays, and at a double time rate for work performed on Sundays.
During a more than two-year period, Ferrara submitted claims for compensation covering hundreds of hours relating to work allegedly performed during regular, overtime, and double time hours, knowing that he had not actually performed that work for his employer or on HBLR projects, officials said.
Authorities say, for example, Ferrara admitted that he spent approximately ten days vacationing in Florida in late December 2018 and late December 2019, during which time he performed no work for his employer or on HBLR projects.
Officials said, nevertheless, Ferrara submitted fraudulent claims representing that he had worked more than 200 hours at regular, overtime, and double time rates during those periods.
In total, officials say, Ferrara admitted to receiving $487,899 in compensation for hours during which he performed no work.
As part of his plea agreement, Ferrara agreed to forfeit this amount, according to officials.
Officials stated the theft charge is punishable by a maximum potential penalty of 10 years in prison and a maximum $250,000 fine.
Sentencing is scheduled for Sept. 5, 2024, officials say.