NJ Man Pleads Guilty to $487,000 Overtime Fraud on Hudson Bergen Light Rail Projects

Admission of guilt includes forfeiture of nearly half a million dollars.

NEWARK, NJ – Joseph Ferrara, a 56-year-old resident of North Arlington, New Jersey, has pleaded guilty to embezzling over $487,000 through fraudulent overtime claims associated with the Hudson Bergen Light Rail (HBLR) projects. The plea was entered before U.S. District Judge Julien X. Neals in Newark federal court, as announced by U.S. Attorney Philip R. Sellinger.

From January 2018 to April 2020, Ferrara, while employed as an electrical work supervisor for a subcontractor on HBLR projects, submitted fraudulent claims for hundreds of hours of unworked overtime and double time. These projects serve a crucial transit role, operating through Hudson County with over two dozen stations and accommodating more than 50,000 passengers on weekdays.

Ferrara was paid at standard, overtime, and double-time rates depending on the hours he claimed to have worked. Notably, during vacations in Florida in late December of both 2018 and 2019, he falsely claimed over 200 hours of work, thereby receiving compensation for time not spent on actual labor for HBLR projects. In total, he wrongfully received $487,899, an amount he has agreed to forfeit as part of his plea agreement.

The charge of theft from a federally funded entity carries a potential maximum sentence of 10 years in prison and a $250,000 fine. Ferrara's sentencing is scheduled for September 5, 2024.

The FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, led the investigation that culminated in Ferrara’s guilty plea. Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions Division in Newark represents the government in this case. Ferrara’s admission underscores ongoing efforts to combat financial misconduct impacting critical public infrastructure projects.