Attorney General Gurbir S. Grewal today announced that the Attorney General’s Office and its state and federal partners have charged four new defendants with filing fraudulent applications for federal relief funds related to Superstorm Sandy, bringing the total number of defendants charged by the office in these cases to 120 since March 2014.
“Any fraud against public assistance programs is deplorable, but these thefts were especially egregious because they diverted funds intended for victims left homeless by one of the most devastating storms in New Jersey history,” said Attorney General Grewal. “We have recovered over $2.2 million through these prosecutions and we also have sent a strong message that should deter this type of fraud during future disaster relief efforts.”
Officials say the 120 people charged by the Attorney General’s Office were allegedly responsible for diverting more than $8 million in relief funds.
The defendants are alleged, in most cases, to have filed fraudulent applications for relief funds offered by the Federal Emergency Management Agency. 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 four defendants were charged yesterday by complaint-summons:
Rhea Jolly, 61, of Toms River, 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, she allegedly received a total of approximately $156,636 in relief funds to which she was not entitled. It is alleged that Jolly falsely claimed in her applications that a home she owns on Beachwood Avenue in Toms River, N.J., which was damaged by Superstorm Sandy, was her primary residence at the time Sandy struck. It is alleged that, in fact, her primary residence at the time of the storm was in Ocean Gate, N.J. As a result of the alleged fraudulent applications, Jolly received approximately $23,285 from FEMA, approximately $123,351 in RREM grant funds, and a $10,000 RSP grant. Jolly is charged with second-degree theft by deception.
Ralph Lubosco, 66, and Eileen Lubosco, 67, of Cream Ridge, 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 married couple allegedly received a total of approximately $134,981 in relief funds to which they were not entitled. It is alleged that the couple falsely claimed in their applications that a home they own on Willard Drive in Manahawkin, N.J., which was damaged by Superstorm Sandy, was their primary residence at the time Sandy struck. It is alleged that, in fact, their primary residence at the time of the storm was in Cream Ridge, and the house in Manahawkin was a long-term rental property. As a result of the alleged fraudulent applications, the Luboscos received $2,270 from FEMA, approximately $122,711 in RREM grant funds, and a $10,000 RSP grant. Each of them is charged with second-degree theft by deception.
Peter Raia Jr., 51, of Lodi, N.J., allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance, a low-interest SBA disaster-relief loan, and state grants under the Homeowner Resettlement Program (RSP) and the Sandy Homeowner and Renter Assistance Program (SHRAP). As a result, he allegedly received approximately $37,822 in relief funds to which he was not entitled. Raia allegedly falsely claimed in his applications that a home he owns on Lincoln Avenue in Seaside Heights, N.J., which was damaged by Superstorm Sandy, was his primary residence when Sandy struck. It is alleged that, in fact, at the time of the storm, his primary residence was in Lodi, and the home in Seaside Heights was a weekend property. As a result of the alleged false applications, Raia received $5,640 from FEMA, a $10,000 RSP grant, $14,000 in SBA loan proceeds, and $8,182 in SHRAP funds. Raia 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, while third-degree charges carry a sentence of three to five years in prison and a fine of up to $15,000. Fourth-degree charges carry a sentence of up to 18 months in prison and a fine of up to $10,000. The charges are merely accusations and the defendants are presumed innocent until proven guilty.