3-21-2024 1:30pm

Morristown Man Accused in $3.4 Million Fraud Affecting Over 50 Businesses

A local entrepreneur faces serious charges for allegedly exploiting small businesses through deceptive debt relief services.

MORRISTOWN, N.J. – In a distressing revelation for the small business community of Morris County, Mark Csantaveri, 51, from Morristown, New Jersey, has been charged with orchestrating a fraudulent scheme that siphoned over $3.4 million from more than 50 businesses. U.S. Attorney Philip R. Sellinger made the announcement today, underscoring the gravity of the charges laid against Csantaveri.

Accused of conspiracy to commit wire fraud, Csantaveri was presented before U.S. Magistrate Judge Edward S. Kiel in Newark federal court for his initial appearance and has been detained pending further proceedings. The charges stem from Csantaveri's alleged operation of a deceitful debt relief service aimed at vulnerable small businesses struggling with debt.

According to court documents and statements made during the legal proceedings, Csantaveri, alongside unnamed conspirators, ran enterprises claiming to negotiate favorable settlements with creditors on behalf of their clients.

Victims were persuaded to transfer regular payments into Csantaveri's control, under the guise that these funds would be safeguarded while negotiations took place. Contrary to these assurances, it's alleged that the funds were diverted for Csantaveri and his partners' personal use, with over $1 million reportedly squandered on gambling activities alone.

This elaborate scheme led to significant financial losses for the victims involved, exceeding $3.4 million. The charge of conspiracy to commit wire fraud carries a severe potential penalty, including a maximum of 20 years in prison and substantial fines, highlighting the serious nature of the allegations.

The investigation, spearheaded by special agents of the FBI under the direction of Special Agent in Charge James E. Dennehy in Newark, showcases the dedicated efforts to protect small businesses from fraudulent practices and bring those responsible to justice.

Assistant U.S. Attorney Aaron L. Webman represents the government in this case, emphasizing the commitment to upholding legal standards and safeguarding the integrity of small business operations in New Jersey.

While Csantaveri is presumed innocent until proven guilty, this case serves as a critical reminder of the vulnerabilities small businesses face and the importance of vigilance against deceptive financial schemes that prey on those seeking assistance.