By: Richard L. Smith
Federal authorities have charged eight individuals for their roles in a widespread fraudulent loan scheme that scammed small business owners across the country, according to a statement released by the U.S. Department of Justice.
U.S. Attorney Alina Habba announced that the defendants are facing multiple conspiracy to commit wire fraud charges after allegedly deceiving thousands of victims out of millions of dollars.
The individuals charged include Joseph Rosenthal, 33, of Holmdel; Nicholas Smith, 31, of Bradley Beach; Paul Cotogno, 31, and Adam Akel, 30, both of Long Branch; Blaise Cotogno, 32, of Tinton Falls; and James Missry, 40, of New York City.
All appeared in Newark federal court and were released on bail. Matthew Robertson, 31, of Miami, was arrested in Florida and also released on bail.
An eighth defendant, Nicholas Winter, 38, of Asbury Park, remains in custody on unrelated state charges.
According to court documents, beginning in June 2020, the group falsely promised small business owners financing opportunities in exchange for upfront payments.
Victims were led to believe they would receive loans or lines of credit, but once the payments were made, the promised financing never materialized and communication with the defendants abruptly ended.
Prosecutors say the scheme allowed the group to unlawfully pocket millions by targeting business owners already in financially vulnerable positions.
Each wire fraud conspiracy charge carries a potential sentence of up to 20 years in prison and a fine of $250,000, or double the amount of financial loss or gain.