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For Immediate Release: For Further Information:
January 26, 2017

Office of The Attorney General
- Christopher S. Porrino, Attorney General
Division of Criminal Justice
- Elie Honig, Director
Media Inquiries-
Peter Aseltine
609-292-4791
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Citizen Inquiries-
609-984-5828
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Five More Individuals Charged With Filing False Applications For Superstorm Sandy Relief Funds
A Total of 81 People Have Been Charged Since March 2014
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TRENTON –Attorney General Christopher S. Porrino announced that five additional individuals have been charged criminally with filing fraudulent applications for federal relief funds related to Superstorm Sandy. Since March 2014, the Attorney General’s Office has filed criminal charges against 81 people for allegedly engaging in this type of fraud, including the five individuals charged today.

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), the U.S. Small Business Administration (SBA), and the U.S. Department of Health and Human Services (HHS). Also assisting the taskforce is the New Jersey Division of Consumer Affairs, the New Jersey Motor Vehicle Commission, New Jersey Office of the State Comptroller, and the non-profit National Insurance Crime Bureau (NICB).

The defendants 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 funds from HHS. The HUD funds are administered in New Jersey by the New Jersey Department of Community Affairs and the HHS funds are administered by the New Jersey Department of Human Services.

“We charge that these defendants stole from disaster relief programs and by extension from the victims who were hardest hit by the storm,” said Attorney General Porrino. “We’ll continue to charge every cheat we identify who diverted funds from these recovery programs and from victims in need.”

The following defendants were charged today by complaint-summons:

  • Carmela Longo, 54, of Westerly, R.I., allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance and state grants under the Homeowner Resettlement Program (RSP), the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program, and the Sandy Homeowner and Renter Assistance Program (SHRAP). As a result, she allegedly received approximately $191,314 in relief funds to which she was not entitled. Longo allegedly falsely claimed in her applications that a home she owns on North Cambridge Avenue in Ventnor, N.J., which was damaged by Superstorm Sandy was her primary residence when Sandy struck. It is alleged that, in fact, her primary residence at the time of the storm was in West Greenwich, Rhode Island, and the Ventnor home was a summer/vacation home. As a result of the alleged fraudulent applications, Longo received $19,209 from FEMA, a $10,000 RSP grant, RREM grant funds totaling approximately $149,831, and $12,274 in SHRAP funds. Longo is charged with second-degree theft by deception and fourth-degree unsworn falsification.
  • Michael McCrone, 64, of Bayville, N.J., allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance and a state grant under the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program. As a result, he allegedly received approximately $72,163 in relief funds to which he was not entitled. McCrone allegedly falsely claimed in his applications that a home he owns on Rosewood Drive in Bayville, which was damaged by Superstorm Sandy, was his primary residence when Sandy struck. In fact, his primary residence at the time allegedly was in Newtown, Pa., and the property in Bayville was a seasonal/vacation property. As a result of the alleged fraudulent applications, he received $2,270 from FEMA and was approved for $77,659 in RREM monies, out of which he ultimately received $69,893. McCrone is charged with second-degree attempted theft by deception, third-degree theft by deception and fourth-degree unsworn falsification.
  • Keith Bowden, 69, of North Plainfield, N.J., allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance and a state grant under the Homeowner Resettlement Program (RSP). As a result, he received approximately $27,108 in relief funds. Bowden also applied for a grant from the Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) Program but was deemed ineligible, and he applied for a loan from the SBA but withdrew his application before being approved for any loan. Bowden allegedly falsely claimed in his applications that a home he owns on Ivy Lane in Lavallette, N.J., which was damaged by Superstorm Sandy, was his primary residence when Sandy struck. In fact, it is alleged that the property in Lavallette was a rental/secondary property at the time and his primary residence was in North Plainfield. As a result of the alleged fraudulent applications, Bowden received $17,108 in FEMA home repair and rental assistance, and a $10,000 RSP grant. Bowden is charged with third-degree theft by deception and fourth-degree unsworn falsification.
  • Marcy Gendel, 65, of Verona, N.J., allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance and a state grant under the Homeowner Resettlement Program (RSP). As a result, she received $12,270 in relief funds. Gendel allegedly falsely claimed in her applications that a home she owns on the Boardwalk in Point Pleasant Beach, N.J., which was damaged by Superstorm Sandy, was her primary residence when Sandy struck. In fact, it is alleged that the property in Point Pleasant Beach was a rental property at the time and her primary residence was in Verona. As a result of the alleged fraudulent applications, Gendel received $2,270 in FEMA rental assistance and a $10,000 RSP grant. Gendel is charged with third-degree theft by deception and fourth-degree unsworn falsification.
  • Randolph Colson, 65, of Netcong, N.J., allegedly filed fraudulent applications following Superstorm Sandy for FEMA assistance and a state grant under the Homeowner Resettlement Program (RSP). As a result, he received a $10,000 RSP grant. He withdrew his FEMA application prior to receiving any FEMA funds. Colson allegedly falsely claimed in his applications that a home he owns on East Church Street in Sea Bright, N.J., which was damaged by Superstorm Sandy, was his primary residence when Sandy struck. In fact, it is alleged that the property in Sea Bright was a summer/weekend home at the time. Colson is charged with third-degree theft by deception.

“Stealing any type of public aid is reprehensible, but it’s especially egregious to steal relief funds in the context of a historic disaster, when every dollar is needed for recovery,” said Director Elie Honig of the Division of Criminal Justice. “We’ll continue to pursue these prosecutions with our state and federal partners, so we can guard these funds and deter this type of criminal conduct in future emergencies.”

“The Department of Community Affairs remains committed to helping thwart fraudulent activity as our state continues to recover and rebuild from Superstorm Sandy,” said DCA Commissioner Charles A. Richman. “People who attempt to scam disaster recovery funds do so at the expense of Sandy survivors who legitimately qualify for help, which is why my Department does not hesitate to report suspicious applications to our law enforcement partners.”

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, SBA Office of Inspector General, and HHS Office of Inspector General. The National Insurance Crime Bureau also assisted. Deputy Attorneys General Denise Grugan, William Conlow, Valerie Noto and Norma Evans are prosecuting the 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, with others, including Special Civil Investigators Rita Binn and James Parolski, and Detectives Michael Woods, Terrence Buie and Earl Washington.

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 prison and a fine of up to $15,000, while fourth-degree charges carry a sentence of up to 18 months in 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 on the East Coast. New Jersey 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 RSP, 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, SBA 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.

The Disaster Relief Act provided HHS approximately $760 million in funding for Sandy victims. The Administration for Children and Families (ACF) received approximately $577 million in Sandy funding through three grant programs, including the Social Services Block Grant (SSBG) program, which received nearly $475 million to help five states (New York, New Jersey, Connecticut, Rhode Island, and Maryland). New Jersey received over $226 million for a wide range of social services directly related to the disaster. New Jersey used SSBG funds to develop the Sandy Homeowner/Renter Assistance Program (SHRAP) to assist individuals/families with expenses for housing and other related needs.


Defense Attorneys:
For Longo: Rocco C. Cipparone Jr., Esq. Haddon Heights.
For McCrone: W. Curtis Dowell, Esq., Beach Haven.
For Bowden: Robert Scrivo, Esq., McElroy, Deutsch, Mulvaney & Carpenter LLP, Morristown.
For Gendel: Mauro G. Tucci, Esq., Chiesa, Shahinian & Giantomasi PC, West Orange.
For Colson: Anthony Arbore, Esq., Forster Arbore Velez, Ledgewood, N.J.


Follow the New Jersey Attorney General’s Office online at Twitter, Facebook, Instagram & YouTube. The social media links provided are for reference only. The New Jersey Attorney General’s Office does not endorse any non-governmental websites, companies or applications.

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