The Attorney General’s Office is continuing its aggressive efforts to investigate fraud in Sandy relief programs, working jointly with the New Jersey Department of Community Affairs (DCA) and the Offices of Inspector General of the U.S. Department of Homeland Security, the U.S. Department of Housing and Urban Development (HUD), and the U.S. Small Business Administration (SBA).

The individuals who have been charged are alleged, in most cases, to have filed fraudulent applications for relief funds offered by the Federal Emergency Management Agency (FEMA). In many cases, they also applied for funds from a Sandy relief program funded by HUD, low-interest disaster loans from the SBA, or assistance provided by the New Jersey Department of Human Services. The HUD funds are administered in New Jersey by the Department of Community Affairs.

“Lying to collect any form of public assistance is inexcusable, but it is especially egregious in the context of a major disaster like Superstorm Sandy, when all available funds are needed for those who were hardest hit and who legitimately qualify for aid,” said Acting Attorney General Hoffman. “These offenders also burden relief administrators, who must allocate time and resources to police this fraud, rather than focusing entirely on helping those most in need.”

The following defendants were charged today by complaint-summons:

• Dennis Zawadzki, 63, of Clifton, N.J., allegedly fraudulently obtained a total of $174,051 by filing false applications following Superstorm Sandy for FEMA assistance and state grants under the Homeowner Resettlement Program (RSP) and the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program. It is alleged that Zawadzki falsely claimed in the applications that a storm-damaged property that he owned on West Potomac Drive in Little Egg Harbor Township, N.J., was his primary residence at the time Sandy hit. It is alleged that, in reality, Zawadzki’s primary residence was in Clifton, N.J., and the property in Little Egg Harbor Township was a seasonal home. Zawadzki received $2,270 in FEMA relief funds. He also received a $10,000 RSP grant and a total of $161,781 from a grant under the RREM program. Zawadzki is charged with second-degree theft by deception and fourth-degree unsworn falsification.

• Juli Schaber, 58, of Colonia, N.J., allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance, state grants under the Homeowner Resettlement Program (RSP) and the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program, and state assistance under the Sandy Homeowner and Renter Assistance Program (SHRAP) funded by the New Jersey Department of Human Services. She received a total of $128,313 as a result of the alleged fraud. Schaber allegedly falsely claimed on the applications that a storm-damaged property she owns on Eisenhower Avenue in Ortley Beach, N.J., was her primary residence at the time Sandy hit. It is alleged that, in fact, Schaber’s primary residence was in Edison, N.J., at the time of the storm, and the property in Ortley Beach is a vacation home. Schaber received $31,900 from FEMA for rental assistance and personal property loss. She received a $10,000 RSP grant and $11,413 for replacement of household items through the SHRAP program. Schaber also received $75,000 in construction funds from a grant under the RREM program. She is charged with second-degree theft by deception and fourth-degree unsworn falsification.

• Daniela Cannizzo-Rybak, 36, of Little Falls, N.J., allegedly fraudulently obtained a total of $111,630 by filing false applications following Superstorm Sandy for FEMA assistance, state grants under the Homeowner Resettlement Program (RSP) and the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program, and state assistance under the Sandy Homeowner and Renter Assistance Program (SHRAP) funded by the New Jersey Department of Human Services. Cannizzo-Rybak allegedly falsely claimed on the applications that a storm-damaged property she owns on East Navasink Drive in Little Egg Harbor Township was her primary residence at the time Sandy hit. It is alleged that, in actuality, her primary residence was an apartment in Garfield, N.J., at the time of the storm, and the property in Little Egg Harbor Township was a summer residence. Cannizzo-Rybak received $23,329 from FEMA; $10,000 from an RSP grant; $63,301 from a grant under the RREM program; and $15,000 through the SHRAP program. She is charged with second-degree theft by deception and fourth-degree unsworn falsification.

• Nancy L. Fletcher, 54, of Ringwood, N.J., allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance and a state grant under the Homeowner Resettlement Program (RSP). She received a total of $32,759 as a result of the alleged fraud. Fletcher allegedly falsely claimed on the applications that a storm-damaged property she owned on Bayberry Road in Lavallette, N.J., was her primary residence when Sandy hit. It is alleged that, in fact, her primary residence was in Ringwood, and the Lavallette property was a summer home. Fletcher received $22,759 in FEMA relief funds. She also received a $10,000 RSP grant. She is charged with third-degree theft by deception and fourth-degree unsworn falsification.

• Christopher Carlino, 51, of Staten Island, N.Y., allegedly fraudulently obtained a total of $56,248 by filing false applications following Superstorm Sandy for FEMA assistance, a state grant under the Homeowner Resettlement Program (RSP), and state assistance under the Sandy Homeowner and Renter Assistance Program (SHRAP) funded by the New Jersey Department of Human Services. In addition, Carlino allegedly filed fraudulent applications for a grant from the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program and a low-interest loan from the SBA, but those applications were rejected. Carlino allegedly falsely claimed on all of the applications that a storm-damaged house he owns on Alcala Drive in Brick, N.J., was his primary residence at the time Sandy hit. It is alleged that, in reality, Carlino’s primary residence was in Staten Island, N.Y., at the time of the storm. Carlino received $31,900 from FEMA for rental assistance, repairs and other items. He received a $10,000 RSP grant and $14,348 for mortgage and utility payments through the SHRAP program. Carlino allegedly submitted a fraudulent lease and invoice to FEMA purporting to show that he was renting a home in Trenton as a result of being displaced by Sandy. He paid restitution of the FEMA funds and also has been repaying the RSP grant. Carlino is charged with second-degree attempted theft by deception, third-degree theft by deception and fourth-degree unsworn falsification.

“We’re working diligently with our state and federal law enforcement partners to ensure that every allegation of fraud involving these Sandy relief programs is thoroughly investigated,” said Director Elie Honig of the Division of Criminal Justice. “Our goal in these joint efforts is to recover the stolen funds and also to send a clear message that this type of fraud will be met with serious criminal charges, now and during any future disaster relief efforts.”

“DCA has been committed from day one of the Sandy recovery effort to ensuring that recovery funds get to Sandy survivors who legitimately qualify for assistance,” said DCA Commissioner Charles Richman. “As part of our charge to be good stewards of public funds, we have and will continue to vigilantly report to the proper authorities those individuals who seek to misuse Sandy recovery funds.”

The new cases were investigated by detectives of the New Jersey Division of Criminal Justice and special agents of the U.S. Department of Homeland Security Office of Inspector General, HUD Office of Inspector General and SBA Office of Inspector General. Deputy Attorneys General John Nicodemo, Valerie Butler, TJ Harker and William N. Conlow are prosecuting the five new defendants, under the Supervision of Deputy Attorney General Michael A. Monahan, Chief of the Financial & Computer Crimes Bureau, and Deputy Attorney General Mark Kurzawa, Deputy Bureau Chief. They are working with Lt. David Nolan, Sgt. Fred Weidman and Analyst Alison Callery, who are conducting and coordinating the investigations for the Division of Criminal Justice, along with other detectives, including Detectives Terrence Buie, Sonya Sullivan, Thomas Page and Mike Arduini, and Special Civil Investigator Rita Binn.

Second-degree charges carry a sentence of five to 10 years in state prison and a fine of up to $150,000. Third-degree charges carry a sentence of three to five years in state prison and a fine of up to $15,000, while fourth-degree charges carry a sentence of up to 18 months in state prison and a fine of $10,000. The charges are merely accusations and the defendants are presumed innocent until proven guilty.

On Oct. 29, 2012, Superstorm Sandy hit New Jersey, resulting in an unprecedented level of damage. Almost immediately, the affected areas were declared federal disaster areas, making residents eligible for FEMA relief. FEMA grants are provided to repair damaged homes and replace personal property. In addition, rental assistance grants are available for impacted homeowners. FEMA allocates up to $31,900 per applicant for federal disasters. To qualify for FEMA relief, applicants must affirm that the damaged property was their primary residence at the time of the storm.

In addition to the FEMA relief funds, HUD allocated $16 billion in Community Development Block Grant (CDBG) funds for storm victims along the East Coast. New Jersey has received $2.3 billion in CDBG funds for housing-related programs, including $215 million that was allocated for the Homeowner Resettlement Program (RSP) and $1.1 billion that was allocated for the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program. Under the Resettlement Program, the New Jersey Department of Community Affairs is disbursing grants of $10,000 to encourage homeowners affected by Sandy to remain in the nine counties most seriously impacted by the storm: Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean and Union counties. The RREM Program, which is the state’s largest housing recovery program, provides grants to Sandy-impacted homeowners to cover rebuilding costs up to $150,000 that are not funded by insurance, FEMA, U.S. Small Business Administration loans, or other sources.

The Small Business Administration provides low-interest disaster loans to homeowners, renters, businesses of all sizes, and most private nonprofit organizations. SBA disaster loans can be used to repair or replace real estate, personal property, machinery and equipment, and inventory and business assets damaged or destroyed in a declared disaster. Renters and homeowners may borrow up to $40,000 to repair or replace clothing, furniture, cars or appliances damaged or destroyed in the disaster. Homeowners may apply for a loan of up to $200,000 to replace or repair their primary residence to its pre-disaster condition. Secondary homes or vacation properties are not eligible for these loans, but qualified rental properties may be eligible for assistance under the business loan program.

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