Disbarred Hillsborough Attorney Sentenced to 30 Months for Wire Fraud Scheme

Lawrence Coven misled investors with false promises of high returns, diverted funds for personal use in Ponzi-like operation

HILLSBOROUGH — A former attorney from Somerset County has been sentenced to 30 months in federal prison for orchestrating a Ponzi-like wire fraud scheme that defrauded multiple investors, U.S. Attorney Alina Habba announced.

Lawrence Coven, 61, of Hillsborough, pleaded guilty to one count of wire fraud and was sentenced by U.S. District Judge Robert Kirsch in Trenton federal court. In addition to the prison term, Coven was ordered to serve three years of supervised release.

According to court filings and statements made during the proceedings, Coven operated a financial business under the name Sunrise Enterprises LLC, through which he promised clients substantial investment returns by claiming he would provide short-term loans to borrowers unable to secure traditional financing. Coven falsely guaranteed returns of 10% to 15% and described the investments as risk-free.

However, instead of investing the funds as promised, Coven misappropriated the money for personal use. Expenditures included payments toward utilities, entertainment, real estate, credit cards, and cash withdrawals. As investor inquiries increased, Coven used funds from newer investors to pay earlier ones, in a structure resembling a Ponzi scheme. He also provided false reassurances to victims about the safety of their investments.

Coven was previously disbarred from practicing law and did not hold the appropriate credentials to offer investment services at the time of the fraud.

The case was investigated by the FBI’s Newark Division under Acting Special Agent in Charge Terence G. Reilly. The prosecution was led by Assistant U.S. Attorneys Fatime Meka Cano and Olta Bejleri of the Economic Crimes Unit in Newark.