Scams-R-Us: Two Busted by Federal Investigators for Wire Fraud Conspiracy

Newark, NJ—It’s a tale of payroll fraud, investment fraud, misappropriation and commingling of funds, and outright lies. Special Agent In Charge Weysan Dun announced the surrender of Paul Bultmeyer, age 69, of Upper Saddle River, New Jersey and Arthur Piacentini, age 49, of Saddle Brook, New Jersey. The two men quietly surrendered to the FBI this morning, charged with one count of wire fraud, thus concluding a joint investigation between criminal investigators from the United States Attorney’s Office, the FBI, and the Securities Exchange Commission (SEC).

Ameripay, a payroll company, was established by Bultmeyer and Piacentini in their offices located at 114 Essex Street, Rochelle Park, New Jersey in 1996. Ameripay handled payroll services for numerous private companies and public entities throughout New Jersey. In October of 2004, Bultmeyer and Piacentini incorporated Sherbourne Capital Management, Ltd., which purported to be an investment company, but never registered either Sherbourne Capital or their third company, Sherbourne Financial with Federal or State regulators to sell investments of any kind. According to the criminal complaint, Bultmeyer and Piacentini allegedly conspired with each other to divert funds from their three companies—Ameripay; Sherbourne Financial, Ltd.; and Sherbourne Capital Management, Ltd. to satisfy the payroll obligations of other payroll clients or to make unrelated tax payments to the Internal Revenue Service (IRS).  

After amassing a shortfall in the Ameripay payroll operations, Bultmeyer and Piacentini allegedly used Sherbourne Financial and Sherbourne Capital to solicit numerous investors in various states by e-mail and telephone, according to the criminal complaint. Investors were supposedly told their investments would be protected and that Bultmeyer and Piacentini used a diversified investment strategy. In one instance in September of 2008, Bultmeyer allegedly sent an e-mail to an investor in Vermont boldly stating this claim. However, the investors were never told their money would instead be used to operate Ameripay; no investments were ever made. 

Contrary to the alleged claims of Bultmeyer and Piacentini, Sherbourne investor funds were commingled in Ameripay bank accounts. Based on the complaint, the defendants used the funds to pay both the customers of Ameripay and the IRS. To perpetuate the fraud, Bultmeyer and Piacentini allegedly used some of the commingled funds to pay certain Sherbourne investors purported “interest” on their investments in the form of interstate wire transfers.   

“Misters Bultmeyer and Piacentini certainly have some explaining to do,” said Weysan Dun. “This appears to be a calculated scheme to steal money. They allegedly robbed Peter to pay Paul, but that’s not good business and is definitely not legal. Their surrender is the first and only honorable act in this entire scheme. I hope the justice system sees fit to restore the stolen money to the victims of this crime. I thank the investigators from the U.S. Attorney’s Office, the Securities Exchange Commission, and our FBI agents in the Garret Mountain Resident Agency for their hard work and commitment to this matter.”

Bultmeyer and Piacentini are scheduled for an initial appearance today before the Honorable Michael A. Shipp, United States Magistrate. If convicted, the defendants could face a maximum sentence of up to thirty years in prison, a $1,000,000 fine, or both.

A criminal complaint is merely an accusation. Despite this accusation, every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.