Charges Announced in $1M HIV Assistance Fraud Scheme Targeting Hudson County

Prosecutors Say Brent Lee Conspired to Misappropriate Government Funds Intended for Low-Income Individuals with HIV

Federal authorities have charged an Arizona man in connection with a fraud scheme that allegedly misappropriated $1 million in government funds meant to support low-income individuals living with HIV. Acting U.S. Attorney Vikas Khanna announced that Brent Lee, 51, of Phoenix, Arizona, has been charged with bank fraud conspiracy and theft of government funds.

Lee appeared before U.S. Magistrate Judge Deborah M. Fine in the District of Arizona following the unsealing of the complaint.

According to court documents, in January 2023, a municipality in Hudson County, New Jersey, issued five checks totaling approximately $1 million to a nonprofit charitable organization. These funds were intended to support a federally funded program that provides medical care, medications, and essential services for low-income individuals living with HIV.

However, prosecutors allege that the nonprofit never received the checks. Instead, between February and March 2023, Lee and his co-conspirators allegedly created a fraudulent business entity with a name nearly identical to the nonprofit's.

In February 2023, Lee reportedly filed articles of incorporation in Wyoming under the fake business name and subsequently opened a bank account in the entity’s name. Prosecutors claim the stolen checks were deposited into this fraudulent account, and Lee then distributed nearly all the funds through cash withdrawals, cashier’s checks, and wire transfers to himself, a family member, and others. As a result, the bank recorded a financial loss of approximately $1 million.

Potential Penalties

If convicted, Lee faces significant penalties:

• Bank fraud conspiracy – up to 30 years in prison and a maximum fine of $1 million, or twice the gross financial gain or loss from the crime.
• Theft of government funds – up to 10 years in prison and a maximum fine of $250,000, or twice the financial gain or loss from the scheme.

The investigation was led by the FBI’s Public Corruption and Civil Rights Unit in Newark, under the direction of Acting Special Agent in Charge Terence G. Reilly, along with the U.S. Department of Health and Human Services’ Office of the Inspector General (HHS-OIG), New Jersey Field Office, led by Special Agent in Charge Naomi Gruchacz.

The case is being prosecuted by Assistant U.S. Attorney Michael A. Hardin of the U.S. Attorney’s Opioid Abuse Prevention and Enforcement Unit in Newark.

Authorities stress that the charges are merely accusations, and Lee is presumed innocent unless and until proven guilty in a court of law.