By: Richard L. Smith
Jonathan Smith, 56, from Montclair, has entered a guilty plea to charges related to a complex kickback scheme that defrauded a condominium complex owner in Jersey City out of $470,000, according to U.S. Attorney Philip R. Sellinger.
The admission came before U.S. District Judge Karen M. Williams in Camden, where Smith faced one count of conspiracy to commit wire fraud.
This case highlights a calculated fraud operation that spanned from November 2018 to July 2020.
Federal officials said Smith, alongside his conspirators Nathaniel Obedos and Ranaldo Bennett, orchestrated a kickback scheme targeting the condominium complex where Bennett served as the lead property manager, and Smith held the position of superintendent.
The trio manipulated repair and maintenance operations to benefit Obedos's company, through which they executed their fraudulent activities.
Bennett and Smith were instrumental in channeling work towards Obedos, subsequently receiving kickbacks.
These illicit payments were funded by inflating invoices for Obedos's services, deceiving the condominium complex into overpaying by more than double the actual value of the work performed.
The scheme saw the complex pay over $1 million for services worth merely $500,000, enabling Obedos to distribute $460,000 in kickbacks to Bennett and around $30,000 to Smith.
The investigation, led by special agents of the FBI under the guidance of Special Agent in Charge James E. Dennehy in Newark, culminated in today's guilty plea.
Nathaniel Obedos had previously pleaded guilty to his role in the scheme on July 6, 2023, and is currently awaiting sentencing.
Meanwhile, Ranaldo Bennett's legal proceedings are ongoing.
Smith's conviction of conspiracy to commit wire fraud brings with it a maximum potential penalty of 20 years in prison and a fine up to $250,000 or twice the gross gain or loss from the offense, whichever is higher.
His sentencing is scheduled for June 10, 2024.
This case underscores the determined efforts of law enforcement to combat fraud and protect the integrity of property management and maintenance operations.