CEO Of carlstadt-Based bulk mail company sentenced to 70 months in prison for $4.5 million wire fraud conspiracy
FOR IMMEDIATE RELEASE
September 7, 2011
NEWARK, N.J. – The founder and owner of New Tech Direct, Inc., a bulk mail company based in Carlstadt, N.J., was sentenced today to 70 months in prison and was ordered to pay more than $4.5 million in restitution for directing a long-running, large-scale wire fraud conspiracy through his company, U.S. Attorney Paul J. Fishman announced.
Arthur Marino, 62, of Englewood, N.J., previously pleaded guilty to an Information charging him with wire fraud conspiracy. Marino entered his guilty plea before U.S. District Judge Susan D. Wigenton, who also imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
New Tech previously employed over 50 people, and was contracted by clients to handle large mailings. Clients sent their mail jobs to New Tech for folding, envelope stuffing, labeling, and delivery of mail material to the post office. New Tech charged a fee based on the amount of postage necessary to mail the job, as well as a fee for the services it provided in preparing the mail for shipment.
Arthur Marino was the founder and sole owner of New Tech. Marino admitted that he conceived and directed a long-running fraud whereby New Tech would not mail the amount of mail contracted, but instead, under Marino’s direction, would dump the excess mail and create bogus postal forms to make it appear that the mailings had been completed.
As part of the fraud, a New Tech employee stole a postal stamp, which Marino and others used to make it appear as though the mail had actually been sent to and approved by the post office.
The fraud, which began in 2003 and lasted through 2010, caused over $4.5 million in losses to New Tech’s customers.
In addition to the prison term, Judge Wigenton sentenced Marino to three years of supervised release.
U.S. Attorney Fishman credited U.S. postal inspectors, under the direction of Postal Inspector in Charge Philip R. Bartlett, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Michael Koribanics Esq., Clifton, N.J.