Somerset County, New Jersey, Man Charged With Defrauding Investors Of $1.5 Million
NEWARK, N.J. – A Somerset County, New Jersey, man is expected to appear in court today on charges of fraud for allegedly soliciting $1.5 million from 16 investors based upon false and fraudulent financial records, U.S. Attorney Paul J. Fishman announced.
Rostyslaw Mykytyn, 56, of Skillman, New Jersey, was indicted by a federal grand jury on June 19, 2015, on five counts of wire fraud. His initial appearance and arraignment is scheduled for later today before U.S. Magistrate Judge James B. Clark III.
According to the indictment:
Mykytyn was the owner, president and CEO of RGM Management Co., d/b/a/ Campbell Co. Inc. Campbell was located in Washington State and provided sales representative services to a company that manufactured and distributed power and cooling infrastructures for large computer spaces. Mykytyn solicited various investors for Campbell based upon false and fraudulent financial statements.
Mykytyn allegedly created false commission statements from a client that showed sales in excess of $4 million, of which Campbell was due $472,720, to make Campbell’s income appear greater than it was. Mykytyn also falsely represented Campbell’s assets to investors who, relying on those representations, wire transferred $1.5 million into the company. Mykytyn would then divert a portion of the investment to himself to pay for his personal expenses, without disclosing the diversion to his investors.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a fine of up to the greater of $250,000 or twice the gain or twice the loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to these charges.
The government is represented by Special Assistant U.S. Attorney Jillian J. Reyes of the U.S. Attorney’s Office Economic Crimes Unit in Newark.