Former Acting Executive Director of Jersey City Employment and Training Program Charged in Embezzlement Scheme
NEWARK, N.J. – The former acting executive director of the Jersey City Employment and Training Program (JCETP) has been charged with embezzling JCETP funds, U.S. Attorney Craig Carpenito announced today.
Sudhan M. Thomas, 44, of Jersey City, New Jersey, is charged by complaint with embezzling funds from an organization receiving federal funds. Thomas is expected to make his initial appearance on Jan. 9, 2020, before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the complaint:
Thomas served as JCETP’s acting executive director from January 2019 until his resignation in July 2019. JCETP is a nonprofit organization that operated to assist Jersey City residents to prepare for and enter the work force. JCETP received substantial amounts of its funding from federal grants from the U.S. Department of Labor and the U.S. Department of Housing and Urban Development.
Using his access to JCETP funds and control of JCETP’s bank accounts, from March 2019 through July 2019, Thomas embezzled more than $45,000 from JCETP. Thomas caused checks to be drawn from JCETP accounts that were made payable to others, but ultimately received by Thomas. He also embezzled JCETP funds by issuing JCETP checks made out to cash that Thomas either cashed himself or used to obtain bank checks that Thomas made payable to his entity, Next Glocal, which were deposited into a Next Glocal bank account that Thomas controlled. Thomas used the JCETP funds deposited to Next Glocal’s bank account to pay for his personal expenses, including payments to Thomas’s landlord in Jersey City and airfare and hotel expenses for a trip to Hawaii, and to fund transfers to Thomas’ family trust account.
The count of theft from an organization receiving federal funds carries a maximum potential penalty of up to 10 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Department of Labor, Office of the Inspector General (OIG), under the supervision of Special Agent in Charge Michael Mikulka; and special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney Lee M. Cortes Jr., Chief of the Health Care Fraud Unit, in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.