Eight individuals face charges following allegations of a fraudulent lending scheme that targeted small business owners across the United States. This was announced by U.S. Attorney Alina Habba. Defendants are charged with multiple counts of conspiracy to commit wire fraud.
The individuals charged include Joseph Rosenthal, 33, from Holmdel, New Jersey; Nicholas Smith, 31, from Bradley Beach, New Jersey; James Missry, 40, from New York City, New York; Paul Cotogno, 31, from Long Branch, New Jersey; Blaise Cotogno, 32, from Tinton Falls, New Jersey; and Adam Akel, 30, from Long Branch, New Jersey. They appeared before U.S. Magistrate Judge James B. Clark, III, in Newark federal court and were released on bail. Matthew Robertson, 31, from Miami, Florida, arrested in the Southern District of Florida, appeared before U.S. Magistrate Judge Enjoliqué A. Lett and was also released on bail. Nicholas Winter, 38, from Asbury Park, New Jersey, is in custody on unrelated state charges.
U.S. Attorney Alina Habba stated, "These defendants perpetrated a years’ long scheme to defraud hard-working business owners in New Jersey and across the United States, stealing millions of dollars from thousands of victims. These charges reflect our Office’s commitment to holding accountable those who prey on small business owners trying to support their communities and earn a decent living."
According to court documents, since June 2020, the defendants allegedly enriched themselves by defrauding small business owners interested in obtaining business financing. The defendants reportedly deceived victims into providing upfront payments in exchange for a loan or line of credit, which never materialized. Once payments were made, the defendants allegedly ceased communication and retained the victims' funds.
The wire fraud conspiracies charged in Counts One and Two of the criminal complaint carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Habba credited special agents and intelligence analysts of the FBI, under the direction of Acting Special Agent in Charge Terence Reilly in Newark, for the investigation leading to these charges.
Representing the government are Assistant U.S. Attorneys James H. Graham of the Special Prosecutions Division and Blake Coppotelli of the Economic Crimes Unit in Newark.
The charges and allegations in the complaint are unproven at this stage, and all defendants are presumed innocent until proven guilty.