NJ CEO Charged in $35 Million Fraud Selling Prohibited Equipment to Law Enforcement

Tamer Zakhary faces multiple charges for selling non-compliant security cameras to law enforcement agencies.

Newark, NJ – Tamer Zakhary, the 49-year-old chief executive officer of a Lyndhurst, New Jersey-based company, has been charged with fraudulent activities involving the sale of security cameras and equipment to law enforcement. The charges were announced today by U.S. Attorney Philip R. Sellinger, following Zakhary's appearance in Newark federal court.

Zakhary, a resident of Toms River, New Jersey, faces three counts of wire fraud and one count of making false statements. He was released on a $100,000 unsecured bond after appearing before U.S. Magistrate Judge Edward S. Kiel.

The charges stem from Zakhary’s misrepresentation of compliance with Section 889 of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year 2019. This act prohibits federal procurement of video surveillance and telecommunications equipment from specific Chinese companies identified as security risks.

From August 2019 to December 2022, Zakhary's company allegedly sold surveillance equipment, falsely claimed to be compliant with Section 889, to various law enforcement agencies in New Jersey. These sales amounted to over $35 million, with more than $15 million consisting of federal funds and grants. It is charged that the equipment sold by Zakhary's company actually originated from a Chinese company specifically barred under Section 889.

Each count of wire fraud carries a maximum penalty of 20 years in prison, while the false statements charge could result in up to five years in prison. Additionally, each count may attract a fine of $250,000, or twice the gain or loss from the offense, whichever is greater.

The investigation, led by special agents of the FBI and Homeland Security Investigations in Newark, was acknowledged by U.S. Attorney Sellinger.

Assistant U.S. Attorney Christopher Amore, Chief of the General Crimes Unit in Newark, represents the government in this case.

It is important to remember that these charges and allegations are merely accusations at this stage, and Zakhary is presumed innocent unless and until proven guilty in a court of law.