White Collar Crime News

Busy day in NJ as State AG unveils new indictments in two separate cases that each include million dollar theft and fraud charges January 7, 2009

2009 is starting off with a bang here in New Jersey.  The State’s AG unveiled two indictments today that each charge numerous people with over one million dollars in theft and fraud.

The first case involves former OSI Collection Services director Sandra Bielanski.  She is charged with numerous second degree offenses for her role in OSI’s alleged over billing of the State.  The AG alleges that OSI over billed New Jersey in excess of one million dollars and that she helped cover it up.  Previously charged in connection with this case include Enos “George” Blake and Carol Labbe.  Bielanski also faces charges from a 2006 indictment charging her with six counts of offering an unlawful benefit to a public servant for official behavior.

More info is here.

Case two is actually two different indictments.  The first involves allegations against Justin M. Sciarra, Paul Brown, Michael Magee, James Maconaghy, William Griffith, Q-Town, Inc., TJAX Investment Corp., Bay Enterprises, Inc., and 3D Assurance Brokerage, LLC. They are charged with some or all of these offenses: conspiracy, racketeering, insurance fraud, theft by failure to make required disposition of property received (all 2nd degree) and fourth-degree workers’ compensation insurance fraud. 

 The second indictment charges Sciarra, Brown as well as Paul Hopkins with conspiracy to commit racketeering, racketeering, conspiracy, theft by failure to make required disposition of property received, theft of services, misconduct by a corporate official and financial facilitation of criminal activity. Hopkins’s wife, Adrienne Hopkins was charged with conspiracy to commit racketeering, racketeering, conspiracy, misconduct by a corporate official, and financial facilitation of criminal activity.   Eight corporations were also charged: Sciarra Insurance Agency; AJAX Enterprises, a.k.a. AJAX Leasing, Inc.; AJEX Enterprises, Inc., UJEX Enterprises; Inc., Q-Town, Inc.; and Homestead Assurance Brokerage, as well as America’s PEO, Inc., a.k.a. America’s PEO Holdings, Inc., a.k.a. Staff America and PTD Financial, Ltd.

The AG’s press release is here.

I doubt any of this is a surprise to those named in these stories.  It seems like all of these cases have been going on for a while.  Due to the complex nature of these on-going investigations that take years to complete, the biggest issue for those involved is whether or not they have the money to fuel the legal fight that is required to battle these charges.