Eight Charged in Multi-Million Dollar Fraud Scheme Targeting Small Business Owners Nationwide

Defendants from New Jersey, New York, and Florida accused of defrauding entrepreneurs with false lending promises in a wire fraud conspiracy

NEWARK — Federal prosecutors have charged eight individuals in connection with an alleged nationwide scheme that defrauded small business owners out of millions of dollars through false promises of loans and lines of credit, U.S. Attorney Alina Habba announced.

The criminal complaint accuses the defendants of engaging in a wire fraud conspiracy that began in June 2020. According to court documents, the group exploited business owners across the United States who were seeking financing to grow or sustain their operations.

The defendants charged are:

• Joseph Rosenthal, 33, of Holmdel, NJ

• Nicholas Smith, 31, of Bradley Beach, NJ

• James Missry, 40, of New York City, NY

• Paul Cotogno, 31, of Long Branch, NJ

• Blaise Cotogno, 32, of Tinton Falls, NJ

• Adam Akel, 30, of Long Branch, NJ

• Matthew Robertson, 31, of Miami, FL

• Nicholas Winter, 38, of Asbury Park, NJ (currently in custody on unrelated state charges)

“These defendants perpetrated a years’ long scheme to defraud hard-working business owners in New Jersey and across the United States, stealing millions of dollars from thousands of victims. These charges reflect our Office’s commitment to holding accountable those who prey on small business owners trying to support their communities and earn a decent living.” - U.S. Attorney Alina Habba

The complaint alleges that the defendants falsely represented themselves as capable of securing loans or lines of credit in exchange for upfront fees. Once payments were received, the defendants failed to provide any financing and often ceased communications with the victims. Thousands of business owners are believed to have been affected by the fraudulent scheme.

Each count of conspiracy to commit wire fraud carries a potential sentence of up to 20 years in prison and a fine of $250,000, or twice the amount of financial gain or loss from the offense.

Rosenthal, Smith, Missry, Paul and Blaise Cotogno, and Akel appeared before U.S. Magistrate Judge James B. Clark III in Newark federal court and were released on bail. Robertson, arrested in Florida, appeared before U.S. Magistrate Judge Enjoliqué A. Lett in the Southern District of Florida and was also released.

The investigation was conducted by the FBI’s Newark Division, under Acting Special Agent in Charge Terence Reilly. The case is being prosecuted by Assistant U.S. Attorneys James H. Graham of the Special Prosecutions Division and Blake Coppotelli of the Economic Crimes Unit.

As with all criminal proceedings, the charges are accusations, and the defendants are presumed innocent unless and until proven guilty in a court of law.