By: Richard L. Smith
Joseph Cammarata, a 49-year-old resident of Monmouth Beach, New Jersey, has been convicted on five counts of tax evasion as part of his involvement in a $39 million investment fraud, announced U.S. Attorney Philip R. Sellinger for the District of New Jersey.
Cammarata's conviction, reached on November 15, 2023, followed a two-week trial before U.S. District Judge Peter G. Sheridan in Trenton federal court.
It's worth noting that Cammarata had previously been convicted in the Eastern District of Pennsylvania on charges related to conspiracy, wire fraud, money laundering, and more in connection with the same fraudulent scheme, for which he was sentenced to 10 years in prison.
U.S. Attorney Philip R. Sellinger commented, "This defendant has now been convicted by two separate juries of serious crimes. First, he was convicted by a jury in Philadelphia federal court for his role in a scheme to defraud investors out of millions of dollars. Now, a Trenton jury has convicted him of hiding from the IRS the more than $16 million he pocketed as he tried to avoid paying his fair share of taxes. Cammarata will now be held to account for his crimes at sentencing."
U.S. Attorney Jacqueline Romero for the Eastern District of Pennsylvania added, "Last year, a jury in the Eastern District of Pennsylvania found that Cammarata and his partners engaged in a multi-year fraud in order to steal over $40 million.
Cammarata then concealed more than $16 million of his proceeds of that fraud from the IRS. The verdict in the New Jersey case makes clear that those who hide income gained by fraud will face the same consequences as those who try to evade their tax obligations from legal sources of income.
Thanks to the dedicated efforts of the investigators and prosecutors on this case, this defendant has been brought to justice for the full scale of his criminal conduct."
Tammy Tomlins, IRS – Criminal Investigation Special Agent in Charge of the Newark Field Office, emphasized the commitment to holding fraudsters accountable:
"IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed. Mr. Cammarata and his partners stole millions from his victims. IRS Criminal Investigation Special Agents are committed to working with our law enforcement partners to hold account fraudsters like the defendant."
As detailed in court documents and trial evidence, Cammarata, David Punturieri, and Erik Cohen conspired to operate Alpha Plus Recovery, a claims aggregator firm located in Old Bridge, New Jersey.
The trio used this entity to submit false and fraudulent claims on the proceeds of securities fraud class action settlements and SEC enforcement actions.
Their deceitful claims asserted that corporate clients of Alpha Plus Recovery had purchased shares of securities involved in the lawsuits and enforcement actions.
In reality, the supposed clients were entities controlled by the defendants and had not acquired the subject securities nor were entitled to any recovery from the settlements or enforcement actions.
To bolster their fraudulent claims, the defendants fabricated brokerage and financial documents, which they presented to claims administrators.
Cammarata and his accomplices subsequently funneled the fraudulently obtained funds into accounts under their control, pilfering over $39 million between 2015 and 2019.
Cammarata's portion of the ill-gotten proceeds amounted to more than $18 million.
However, he failed to declare or pay taxes on substantial income in the following years: $1.72 million in 2015, $2.56 million in 2016, $4.82 million in 2017, $3.56 million in 2018, and $3.35 million in 2019.
Cammarata deliberately concealed this income, received through corporate entities, from his accountant to evade the IRS.
Each count of tax evasion carries a potential penalty of up to five years in prison. Sentencing for Joseph Cammarata has yet to be scheduled.