Rudolph
Chiorazzo, 68, of Marmora, who was president
and owner of South Shore Ford, Inc., pleaded
guilty to second-degree theft by deception
before Superior Court Judge Raymond A. Batten
III in Cape May County. The charge was contained
in an April 25, 2011 state grand jury indictment.
Under the plea agreement, the state will
recommend that Chiorazzo be sentenced to
three years in state prison. He must pay
full restitution to Ford Motor Credit Company
(FMCC). Deputy Attorney General Mark Kurzawa
took the plea for the Division of Criminal
Justice Financial & Computer Crimes
Bureau. Judge Batten scheduled Chiorazzo
for sentencing on July 13.
Chiorazzo
admitted that, in order to continue to receive
financing, he falsified information about
the value of the vehicles in his inventory
in monthly financial statements he submitted
to FMCC. An investigation by the Division
of Criminal Justice and New Jersey State
Police revealed that he falsified the statements
to conceal the fact that he failed to remit
to FMCC more than $11 million in proceeds
from 380 vehicles sold between February
2005 and July 2006. Under their agreement,
FMCC advanced money to South Shore to buy
cars, taking back a security interest in
the cars. South Shore was required, upon
sale of each vehicle, to repay FMCC the
amount allocated to the vehicle. FMCC previously
secured a $15 million civil judgment against
South Shore related to the fraud.
“This
car dealer resorted to outright fraud to
try to keep his business afloat,”
said Attorney General Chiesa. “This
type of financial fraud is a drag on the
economy because it imposes large costs on
lenders, which ultimately are passed along
to honest borrowers. We will vigorously
prosecute such crimes.”
“While
civil actions can provide important recourse
for victims in these cases, it is vital
to prosecute such defendants criminally
in order to deter others,” said Director
Stephen J. Taylor of the Division of Criminal
Justice. “We are devoting considerable
resources to fighting white collar crime.”
Deputy
Attorney General Kurzawa and Detective Eric
Ludwick led the investigation for the Division
of Criminal Justice. Detective Sgt. William
Gant led the investigation for the New Jersey
State Police, assisted by detectives from
Woodbine Station and the State Police Crime
Scene Unit. Also assigned to the case for
the Division of Criminal Justice were Deputy
Attorney General Peter Gallagher; Detective
Ed Augustyn; Analysts Alison Callery, Rita
Gillis, and Amy Patterson; and Technical
Assistant Janet Duffield. Assistance was
provided by Agent Scott Stefanowicz and
other agents from the FBI’s Atlantic
City Regional Office, and by Detectives
Paul Worrell and Linda Infusino of the Cape
May County Prosecutor’s Office.
