Eight individuals have been charged in connection with a large-scale lending scheme targeting small business owners from across the United States.
The complaint charges the defendants with multiple counts of conspiracy to commit wire fraud. Joseph Rosenthal, Nicholas Smith, James Missry, Paul Cotogno, Blaise Cotogno, Adam Akel, Matthew Robertson, Nicholas Winter, Joseph Rosenthal, 33, of Holmdel, New Jersey; Nicholas Smith, 31, of Bradley Beach, New Jersey; James Missry, 40, of New York City, New York; Paul Cotogno, 31, of Long Branch, New Jersey; Blaise Cotogno, 32, of Tinton Falls, New Jersey; and Adam Akel, 30, of Long Branch, New Jersey, appeared before U.S. Magistrate Judge James B. Clark, III in Newark federal court and were released on bail.
Matthew Robertson, 31, of Miami, Florida, arrested in the Southern District of Florida, appeared before U.S. Magistrate Judge Enjoliqué A. Lett and was released on bail. Nicholas Winter, 38, of Asbury Park, New Jersey, is in custody on unrelated state charges.
According to documents filed in this case and statements made in court, since June 2020, the defendants enriched themselves by defrauding small business owners interested in obtaining financing for their businesses.
Through misrepresentations and falsehoods, the defendants promised their victims that in exchange for money provided upfront, the defendants would ultimately extend a loan or line of credit to the victims.
In reality, once a victim provided the upfront payment to the defendants, the defendants did not extend financing to the victim. Instead, the defendants kept the victims’ money and broke off communication. As a result of the scheme, the defendants defrauded thousands of victims out of millions of dollars.
The wire fraud conspiracies charged in counts one and two of the criminal complaint each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offence.
