Disbarred Somerset County Attorney Admits to $1 Million Ponzi-Like Wire Fraud Scheme

Lawrence Coven, 61, defrauded investors through a fraudulent financial services scheme, using their funds for personal expenses.

Lawrence Coven, a disbarred attorney from Hillsborough, New Jersey, pleaded guilty to wire fraud in a scheme that caused over $1 million in losses, U.S. Attorney Philip R. Sellinger announced. Coven, 61, admitted to the charges in front of U.S. District Court Judge Robert Kirsch in Trenton federal court.

Coven operated Sunrise Enterprises LLC, a company he claimed provided financial services to investors. He convinced victims to send him funds by falsely promising substantial returns of 10 to 15 percent through short-term loans to borrowers unable to secure traditional loans. Coven guaranteed the investments were risk-free, but instead of investing the funds, he used the money for personal expenses such as real estate, credit card payments, utilities, and cash withdrawals. To maintain the illusion, Coven paid existing investors with money from new investors, operating in a Ponzi-like fashion.

When investors inquired about their funds, Coven provided false reassurances that their money was secure. His fraudulent actions ultimately led to significant financial losses for the victims involved.

Coven faces a maximum penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss resulting from the crime. His sentencing is scheduled for February 13, 2025.

U.S. Attorney Sellinger credited the FBI’s Newark division, led by Acting Special Agent in Charge Nelson I. Delgado, for their role in the investigation. The case is being prosecuted by Assistant U.S. Attorneys Olta Bejleri and Fatime Meka Cano of the Economic Crimes Unit in Newark.

This case highlights the importance of thorough investigations in protecting investors from fraudulent schemes and ensuring that perpetrators are brought to justice.