News and Press Releases

Burlington county, n.J., man admits defrauding charity



FOR IMMEDIATE RELEASE
November 15, 2012


 

TRENTON, N.J. – The director of operations at a warehouse for a non-profit organization admitted today that he defrauded the charity of approximately $101,927, U.S. Attorney Paul J. Fishman announced.

Sean J. Smith, 38, of Mount Holly, N.J., pleaded guilty today before U.S. District Judge Michael A. Shipp in Trenton federal court to an Information charging him with one count of mail fraud.

According to the documents filed in this case and statements made in court:

Smith admitting to stealing money from Clothes for Kids Sake Inc., (Clothes for Kids) by making it appear as though employees were working for Clothes for Kids and entitled to wages even though those employees had either left or never worked there. Smith caused Clothes for Kids to electronically deposit their wages into bank accounts he controlled and spent the funds on various personal expenses. Between May 2011 and August 2012, Smith made it appear that two employees were entitled to compensation of $59,361, all of which was directly deposited into his own bank accounts

Smith admitted to stealing money from Clothes for Kids by causing Clothes for Kids to pay wages to at least seven employees who had recently stopped working for Clothes for Kids and directing that those wages be deposited into his own bank accounts. Beginning in January 2012, Smith manually changed the direct deposit information for approximately seven employees who recently stopped working for him at the Mount Laurel warehouse. After changing the direct deposit information to his own bank accounts, Smith would make it appear as though the former employees were continuing to do work for Clothes for Kids, which would continue to pay them wages. Smith stole approximately $42,566 from Clothes for Kids as wages for employees who no longer worked at his warehouse.

The mail fraud count to which Smith pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Feb. 21, 2013.

U.S. Attorney Fishman credited Special Agents of the FBI, under the direction of Special
Agent in Charge Michael B. Ward, for the investigation leading to today’s Complaint.

The Government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office General Crimes Unit in Newark.

12-400
Defense Counsel: David Bahuriak Esq., Philadelphia, P.A.

Smith Information

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