120 in N.J. charged for $8M in false Sandy relief fund applications
Most of the defendants were alleged to have filed fraudulent applications for FEMA relief funds.
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Four more people have been charged in New Jersey with filing fraudulent applications for federal relief funds related to Superstorm Sandy, bringing the total number of individuals charged by the New Jersey Attorney General’s Office in these cases to 120 since March 2014.
Deter fraud during future disasters
“Any fraud against public assistance programs is deplorable, but these thefts were especially egregious because they diverted funds intended for victims left homeless by one of the most devastating storms in New Jersey history,” said Attorney General Gurbir S. Grewal. “We have recovered over $2.2 million through these prosecutions and we also have sent a strong message that should deter this type of fraud during future disaster relief efforts.”
Related: Former Brooklyn assemblywoman pleads guilty to Superstorm Sandy fraud
The 120 people charged by the Attorney General’s Office allegedly were responsible for diverting more than $8 million in relief funds.
The defendants were alleged, in most cases, to have filed fraudulent applications for relief funds offered by the Federal Emergency Management Agency (FEMA). In many cases, they also applied for funds from a Sandy relief program funded by the U.S. Department of Housing and Urban Development (HUD), low-interest disaster loans from the U.S. Small Business Administration, or funds from the U.S. Department of Health and Human Services.
The HUD funds are administered in New Jersey by the New Jersey Department of Community Affairs and the HHS funds are administered by the New Jersey Department of Human Services.
The four new defendants are:
Rhea Jolly, of Toms River, New Jersey, allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance and state grants under the Homeowner Resettlement Program (RSP) and the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program. As a result, she allegedly received a total of approximately $156,636 in relief funds to which she was not entitled.
The government alleged that Jolly falsely claimed in her applications that a home she owns on Beachwood Avenue in Toms River, New Jersey, which was damaged by Superstorm Sandy, was her primary residence at the time Sandy struck. According to prosecutors, her primary residence at the time of the storm was in Ocean Gate, New Jersey.
Related: Man charged with defrauding FEMA of over $260K
The government asserted that, as a result of the alleged fraudulent applications, Jolly received approximately $23,285 from FEMA, approximately $123,351 in RREM grant funds, and a $10,000 RSP grant. Jolly is charged with second-degree theft by deception.
Ralph and Eileen Lubosco of Cream Ridge, New Jersey, allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance and state grants under the RSP and the RREM Program. As a result, the married couple allegedly received a total of approximately $134,981 in relief funds to which they were not entitled.
The government asserted that the couple falsely claimed in their applications that a home they own on Willard Drive in Manahawkin, New Jersey, which was damaged by Superstorm Sandy, was their primary residence at the time Sandy struck. Prosecutors contend that, in fact, their primary residence at the time of the storm was in Cream Ridge, and the house in Manahawkin was a long-term rental property.
As a result of the alleged fraudulent applications, the Luboscos received $2,270 from FEMA, approximately $122,711 in RREM grant funds, and a $10,000 RSP grant. They both were charged with second-degree theft by deception.
Peter Raia Jr., of Lodi, New Jersey, allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance, a low-interest SBA disaster-relief loan, and state grants under the RSP and the Sandy Homeowner and Renter Assistance Program (SHRAP). As a result, according to prosecutors, he allegedly received approximately $37,822 in relief funds to which he was not entitled.
The government asserted that Raia falsely claimed in his applications that a home he owns on Lincoln Avenue in Seaside Heights, New Jersey, which was damaged by Superstorm Sandy, was his primary residence when Sandy struck. According to the government, at the time of the storm, his primary residence was in Lodi, and the home in Seaside Heights was a weekend property.
As a result of the alleged false applications, Raia received $5,640 from FEMA, a $10,000 RSP grant, $14,000 in SBA loan proceeds, and $8,182 in SHRAP funds. He was charged with third-degree theft by deception and fourth-degree unsworn falsification.
Collaborative state & federal effort
“[W]e have held over 100 defendants accountable for allegedly lying about vacation homes and other secondary properties in order to steal relief funds intended for victims whose primary homes were damaged,” said Veronica Allende, the director of the Division of Criminal Justice. “We also have charged a number of renters who falsely claimed they were displaced by the storm or lost personal property. This collaborative state and federal initiative will undoubtedly serve as a model for other jurisdictions that face these issues in future disaster relief efforts.”
Related: N.J. federal court in Superstorm Sandy coverage case rejects insureds’ challenges
Steven A. Meyerowitz, Esq., (smeyerowitz@meyerowitzcommunications.com) is the director of FC&S Legal, the editor-in-chief of the Insurance Coverage Law Report, and the founder and president of Meyerowitz Communications Inc.