By: Richard L. Smith.
C.R. Kraus, 58, of Manville, New Jersey, was convicted on all charges related to a large-scale healthcare fraud and tax evasion scheme, as announced by U.S. Attorney Philip R. Sellinger.
The trial, held before U.S. District Judge Zahid N. Quraishi in Trenton federal court, ended with Kraus facing serious penalties for defrauding the New Jersey Traumatic Brain Injury Fund (TBI Fund).
Kraus, along with his conspirators Harry Pizutelli and Maritza Flores—who both pleaded guilty in January—manipulated the system to steal over $4 million meant for residents suffering from traumatic brain injuries.
Pizutelli, who managed the TBI Fund, facilitated the scheme by creating and approving fraudulent invoices, making it appear that Flores and Kraus provided services to eligible patients, which they did not.
The funds were intended for critical services such as therapy, assistive technology, and home modifications for those who cannot afford them through other means. Instead, the money lined the pockets of the conspirators, who also evaded taxes on their ill-gotten gains.
The FBI's James E. Dennehy highlighted the damage to vulnerable victims and commended the investigative team for their dedication. Kraus now faces up to 10 years in prison for each of the charges, with sentencing scheduled for October 8, 2024.
The case underscores ongoing efforts to combat fraud and protect essential public resources.