Burlington County Man Sentenced to 18 Months in Prison for Defrauding Charity

TRENTON, NJ—The director of operations at a warehouse for a non-profit organization was sentenced today to 18 months in prison for defrauding the charity of $101,927, U.S. Attorney Paul J. Fishman announced.

Sean J. Smith, 38, of Mount Holly, New Jersey, pleaded guilty November 15, 2012, before U.S. District Judge Michael A. Shipp to an information charging him with one count of mail fraud. Judge Shipp imposed the sentence today in Trenton federal court.

According to the documents filed in this case and statements made in court:

Smith admitting to stealing money from Clothes for Kids Sake Inc., (Clothes for Kids) by making it appear as though employees were working for Clothes for Kids and entitled to wages even though those employees had either left or never worked there. Smith caused Clothes for Kids to electronically deposit their wages into bank accounts he controlled and spent the funds on various personal expenses. Between May 2011 and August 2012, Smith made it appear that two employees were entitled to compensation of $59,361, all of which was directly deposited into his own bank accounts

Smith admitted to stealing money from Clothes for Kids by causing Clothes for Kids to pay wages to at least seven employees who had recently stopped working for Clothes for Kids and directing that those wages be deposited into his own bank accounts. Beginning in January 2012, Smith manually changed the direct deposit information for approximately seven employees who recently stopped working for him at the Mount Laurel warehouse. After changing the direct deposit information to his own bank accounts, Smith would make it appear as though the former employees were continuing to do work for Clothes for Kids, which would continue to pay them wages. Smith stole approximately $42,566 from Clothes for Kids as wages for employees who no longer worked at his warehouse.

In addition to the prison term, Judge Shipp also sentenced Smith to three years of supervised release, and ordered him to pay $117,615 in restitution to victims of his offense.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez, for the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office General Crimes Unit in Newark.

Defense Counsel: David Bahuriak Esq., Philadelphia