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Seven Charged with Filing Fraudulent Sandy Relief Funds Applications

Trenton

Acting Attorney General Robert Lougy announced that seven additional individuals were charged criminally today with filing fraudulent applications for federal relief funds related to Superstorm Sandy. Since March 2014, the Attorney General’s Office has filed criminal charges against 57 people for allegedly engaging in this type of fraud, including the seven individuals charged today.

The individuals who have been charged 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 assistance provided by the New Jersey Department of Human Services. The HUD funds are administered in New Jersey by the Department of Community Affairs.

The following defendants were charged today by complaint-summons:

James Avellini, 67, and Susan Horty-Avellini, 65, of Red Bank, N.J., allegedly fraudulently obtained a total of $49,969 by filing false applications following Superstorm Sandy for FEMA assistance and state grants under the Homeowner Resettlement Program (RSP) and the Sandy Homeowner and Renter Assistance Program (SHRAP) funded by the New Jersey Department of Human Services. It is alleged that the married couple falsely claimed in the applications that a storm-damaged property that they owned on Norman Court in Lavallette, N.J., was their primary residence at the time Sandy hit. It is alleged that, in reality, the couple’s primary residence was in Red Bank, N.J., and the property in Lavallette was a seasonal home. The couple received a $24,992 FEMA grant, a $10,000 RSP grant, and $14,977 in SHRAP funding. Both defendants are charged with third-degree theft by deception and fourth-degree unsworn falsification.

Claire P. Sullivan, 55, and Catherine Perry, 57, of Caldwell, N.J., allegedly fraudulently obtained a total of $22,253 by filing false applications following Superstorm Sandy for a state grant under the Homeowner Resettlement Program (RSP) and state assistance under the Sandy Homeowner and Renter Assistance Program (SHRAP) funded by the New Jersey Department of Human Services.

In addition, Sullivan allegedly fraudulently attempted to obtain $77,801 by filing a false application for a grant from the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program. Sullivan was awarded $77,801 but no RREM monies were disbursed because she was later determined to be ineligible. Sullivan and Perry, who are married, claimed in the applications that a storm-damaged residence they owned on Island Avenue in Seaside Park, N.J., was their primary residence at the time Sandy hit. It is alleged that, in reality, their primary residence was in Caldwell at the time of the storm. The couple received a $10,000 RSP grant and $12,253 in mortgage assistance from SHRAP. Sullivan repaid the RSP grant. Sullivan is charged with second-degree attempted theft by deception and third-degree theft by deception. Perry is charged with third-degree theft by deception.

Concetta Curry, 63, of Brooklyn, N.Y., allegedly fraudulently obtained a total of $18,883 by filing false applications following Superstorm Sandy for a state grant under the Homeowner Resettlement Program (RSP) and state assistance under the Sandy Homeowner and Renter Assistance Program (SHRAP) funded by the New Jersey Department of Human Services. Curry allegedly falsely claimed on the applications that a storm-damaged property she owned on Monterey Drive in Brick, N.J., was her primary residence when Sandy hit. It is alleged that, in fact, her primary residence was in Brooklyn, N.Y., at the time of the storm and the Brick residence was a rental property. Curry received a $10,000 RSP grant and $8,883 in mortgage and utility payment assistance from SHRAP. Curry is charged with third-degree theft by deception and fourth-degree unsworn falsification.

Leonard Itri, 41, of Philadelphia, Pa., allegedly fraudulently obtained a total of $11,888 by filing false applications following Superstorm Sandy for FEMA rental assistance and a state grant under the Homeowner Resettlement Program (RSP). In addition, he allegedly fraudulently attempted to obtain $77,769 by filing a false application for a grant from the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program. He was awarded $77,769 but no RREM monies were disbursed because he was later determined to be ineligible. It is alleged that Itri falsely claimed in his applications that a storm-damaged property that they owned on North Surrey Avenue in Ventnor, N.J., was his primary residence at the time Sandy hit. It is alleged that, in reality, his primary residence was in Philadelphia and the property in Ventnor was a seasonal home. Itri received a $10,000 RSP grant and $1,888 in FEMA rental assistance. He repaid the RSP grant. Itri is charged with second-degree attempted theft by deception, third-degree theft by deception, and fourth-degree unsworn falsification.

Kevin P. Trotta, 51, of Surf City, N.J., allegedly fraudulently obtained a total of $12,820 by filing false applications following Superstorm Sandy for FEMA rental assistance and a state grant under the Homeowner Resettlement Program (RSP) on behalf of a relative for whom he had been named power of attorney. At the time Sandy hit, Trotta was living in a home on 10th Street in Surf City that was damaged by the storm. The home was not owned by Trotta; it was owned by the relative for whom he was power of attorney. It is alleged that Trotta filed false applications on behalf of the relative claiming that the home in Surf City also was her primary residence at the time Sandy struck. It is alleged that, in reality, the relative’s primary residence was in Tucson, Arizona. Trotta filed a joint application on behalf of himself and his relative that led to him receiving a $10,000 RSP grant. He also filed an application on behalf of his relative which led to $2,820 in FEMA rental assistance being paid into a joint account they held. Trotta 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 state prison and a fine of up to $15,000, while fourth-degree charges carry a sentence of up to 18 months in state prison and a fine of $10,000.

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