NJ Man Convicted in $39M Investment Fraud and Tax Evasion Case

Joseph Cammarata, a 49-year-old resident of Monmouth Beach, New Jersey, has been convicted on five counts of tax evasion, connected to his involvement in a $39 million investment fraud scheme. This follows his prior conviction for wire fraud, money laundering, and related charges.

In a major development announced by U.S. Attorney Philip R. Sellinger, a Monmouth County man has been found guilty of significant tax evasion, marking the culmination of a lengthy legal battle spanning multiple jurisdictions. Joseph Cammarata, 49, was convicted on November 15, 2023, for evading taxes on over $16 million in income derived from a substantial investment fraud.

Previously, Cammarata faced justice in the Eastern District of Pennsylvania, where he was convicted of wire fraud, money laundering, and conspiracy, resulting in a 10-year prison sentence. These charges stemmed from his role in a fraudulent scheme that deceived investors out of millions, leading to a significant financial fallout.

“This defendant has now been convicted by two separate juries of serious crimes. First, he was convicted by a jury in Philadelphia federal court for his role in a scheme to defraud investors out of millions of dollars. Now, a Trenton jury has convicted him of hiding from the IRS the more than $16 million he pocketed as he tried to avoid paying his fair share of taxes. Cammarata will now be held to account for his crimes at sentencing.” - U.S. Attorney Philip R. Sellinger.

U.S. Attorney Jacqueline Romero from the Eastern District of Pennsylvania highlighted Cammarata's attempts to conceal his fraudulent income from the IRS, drawing attention to the broader implications of such actions. Romero stressed that evading taxes on income obtained illegally carries the same consequences as evading taxes on legitimate income, underscoring the gravity of Cammarata's crimes.

“Last year, a jury in the Eastern District of Pennsylvania found that Cammarata and his partners engaged in a multi-year fraud in order to steal over $40 million,” U.S. Attorney Jacqueline Romero for the Eastern District of Pennsylvania said. “Cammarata then concealed more than $16 million of his proceeds of that fraud from the IRS. The verdict in the New Jersey case makes clear that those who hide income gained by fraud will face the same consequences as those who try to evade their tax obligations from legal sources of income. Thanks to the dedicated efforts of the investigators and prosecutors on this case, this defendant has been brought to justice for the full scale of his criminal conduct.”

Special Agent Tammy Tomlins of the IRS's Criminal Investigation Newark Field Office emphasized the expertise and dedication of IRS special agents in unraveling complex financial crimes. Cammarata's conviction underlines the commitment of federal agencies to hold fraudsters accountable.

“IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed,” Tammy Tomlins, IRS – Criminal Investigation Special Agent in Charge of the Newark Field Office, said. “Mr. Cammarata and his partners stole millions from his victims. IRS Criminal Investigation Special Agents are committed to working with our law enforcement partners to hold account fraudsters like the defendant.” 

The case against Cammarata revealed his involvement with Alpha Plus Recovery, an Old Bridge-based claims aggregator firm. Alongside David Punturieri and Erik Cohen, Cammarata exploited the firm to make fraudulent claims on securities fraud settlements, using falsified documents to misappropriate over $39 million between 2015 and 2019.

Cammarata's tax evasion charges stem from his failure to report substantial income over several years, amounting to more than $18 million in illegal proceeds. Each count of tax evasion he faces could lead to a maximum of five years in prison, with sentencing yet to be scheduled.

This conviction was made possible by the collaborative efforts of the IRS, FBI, U.S. Postal Inspectors, and the SEC, demonstrating the effective coordination of federal agencies in tackling complex financial crimes. The case was represented by Assistant U.S. Attorneys David Ignall and Paul Shapiro of the Eastern District of Pennsylvania, highlighting the cross-district collaboration in federal law enforcement.