Former CFO of New York Brokerage Firm Arrested for Stealing $1 Million from His Former Employer

NEWARK, NJ—The former chief financial officer of the Manhattan-based brokerage firm Needham & Co. was arrested today by agents of the FBI for allegedly stealing $1 million from his former employer through an elaborate false invoicing scheme, U.S. Attorney Paul J. Fishman announced.

Glen W. Albanese, 41, of Manalapan, New Jersey, is charged by criminal complaint with conspiracy to commit wire fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.

According to documents filed in this case:

From 2000 through 2010, while he was employed as the CFO of Needham & Co., a broker-dealer with headquarters in New York, Albanese allegedly stole more than $1 million from the company through a false invoicing scheme. He induced several vendors of Needham—including a company that provided information technology services and a company that provided printing services—to submit fraudulent invoices to Needham. Some of the fraudulent invoices charged for services that were never provided, while others inflated the amount due for services that were provided. Albanese approved the fraudulent invoices on behalf of Needham and then directed the vendors to send him the bulk of the illicit proceeds.

The vendors funneled the illicit proceeds to Albanese in a variety of ways. Albanese directed one vendor to meet him at predetermined locations in Manhattan with envelopes containing thousands of dollars in cash. Albanese also directed several vendors to pay his personal expenses directly; the vendors used the proceeds from the scheme to pay for landscaping and interior decorating at Albanese’s residence; a designer-breed dog and “canine fence”; equestrian equipment; thousands of dollars worth of wine; and more than $40,000 in flights, hotels, and travel expenses.

The count with which Albanese is charged is punishable by a maximum potential penalty of 20 years in jail and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward, for the investigation leading to today’s arrest.

The government is represented by Assistant U.S. Attorney Christopher J. Kelly of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

The charge and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.

If you believe you are a victim of or otherwise have information concerning this alleged scheme, you are encouraged to contact the FBI at 973-792-3000.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.