Attorney General Christopher S. Porrino announced that the Attorney General’s Office and its state and federal partners have charged 100 criminal defendants in their unprecedented collaborative efforts to root out fraud in disaster relief programs following Superstorm Sandy.
Four new defendants were charged yesterday with filing fraudulent applications for federal relief funds related to Sandy, bringing the total charged by the Attorney General’s Office with this type of fraud to 100.
“Charging 100 defendants in these relief-fraud cases is a sad milestone in that it highlights how many people are willing, in the face of a historic disaster, to dishonestly exploit an offer of aid meant for those who were hardest hit,” said Attorney General Porrino. “At the same time, we’re proud of our collaborative efforts, which have recovered millions of dollars and sent an unmistakable message that those who commit this fraud will face serious criminal charges, now and during any future disasters. The 100 defendants we have charged were responsible for diverting nearly $6 million in relief funds.”
The Attorney General’s Office is continuing its aggressive efforts to investigate fraud in Sandy relief programs, working jointly with the New Jersey Department of Community Affairs (DCA), and the Offices of Inspector General of the U.S. Department of Homeland Security, the U.S. Department of Housing and Urban Development (HUD), the U.S. Small Business Administration (SBA), and the U.S. Department of Health and Human Services (HHS). Also assisting the taskforce is the New Jersey Division of Consumer Affairs, the New Jersey Motor Vehicle Commission, New Jersey Office of the State Comptroller, New Jersey Department of the Treasury Office of Criminal Investigation, U.S. Postal Inspection Service, and the non-profit National Insurance Crime Bureau (NICB).
The defendants are alleged, in most cases, to have filed fraudulent applications for relief funds offered by the Federal Emergency Management Agency (FEMA). In many cases, they also applied for funds from a Sandy relief program funded by HUD, low-interest disaster loans from the SBA, or funds from HHS. The HUD funds are administered in New Jersey by the New Jersey Department of Community Affairs and the HHS funds are administered by the New Jersey Department of Human Services.
The following defendants were charged yesterday by complaint-summons:
* Michael A. Avena, 65, of Wyckoff, N.J., allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance and state grants under the Homeowner Resettlement Program (RSP), the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program, and the Sandy Homeowner and Renter Assistance Program (SHRAP). As a result, he allegedly received approximately $201,861 in relief funds to which he was not entitled. Avena allegedly falsely claimed in his applications that a home he owns on 5th Avenue in Ortley Beach, N.J., which was damaged by Superstorm Sandy, was his primary residence when Sandy struck. It is alleged that, in fact, his primary residence at the time of the storm was in Wyckoff and the home in Ortley Beach was a vacation home. As a result of the alleged fraudulent applications, Avena received $31,900 from FEMA, a $10,000 RSP grant, RREM grant funds totaling $150,000, and $9,961 in SHRAP funds. Avena is charged with second-degree theft by deception and fourth-degree unsworn falsification.
* Charles Tuohy, 55, and his wife, Joanne Benzoni, 64, of Tenafly, N.J., allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance and state grants under the Homeowner Resettlement Program (RSP) and the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program. As a result, the couple allegedly received $162,270 in relief funds to which they were not entitled. Tuohy and Benzoni allegedly falsely claimed in their applications that a home Benzoni owns on Lynn Ann Lane in Manahawkin, N.J., which was damaged by Superstorm Sandy, was their primary residence when Sandy struck. It is alleged that, in fact, their primary residence at the time of the storm was in Tenafly and the home in Manahawkin was a seasonal/weekend home. As a result of the alleged fraudulent applications, Tuohy and Benzoni received $2,270 from FEMA, a $10,000 RSP grant, and $150,000 in RREM grant funds. Tuohy and Benzoni are charged with second-degree theft by deception and fourth-degree unsworn falsification.
* Paula Belotta, 56, of Colonia, N.J., allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance and a state grant under the Homeowner Resettlement Program (RSP). As a result, she allegedly received $12,270 in relief funds to which she was not entitled. Belotta allegedly falsely claimed in her applications that a home she owns on Fielder Avenue in Ortley Beach, N.J., which was damaged by Superstorm Sandy, was her primary residence when Sandy struck. It is alleged that, in fact, her primary residence at the time of the storm was in Colonia and the home in Ortley Beach was a seasonal/weekend home. As a result of the alleged false applications, Belotta received $2,270 from FEMA and a $10,000 RSP grant. Belotta is charged with third-degree theft by deception and fourth-degree unsworn falsification.
Second-degree charges carry a sentence of five to 10 years in state prison and a fine of up to$150,000. Third-degree charges carry a sentence of three to five years in prison and a fine of up to $15,000, while fourth-degree charges carry a sentence of up to 18 months in prison and a fine of $10,000.
The charges are merely accusations and the defendants are presumed innocent until proven guilty.