Michael Esposito Charged in $1M Wire Fraud Scheme

Michael Esposito, 45, of North Caldwell, New Jersey, is facing federal charges after allegedly ripping off an investor for more than $1 million in a web of lies involving fake medical supply deals and phantom consumer goods transactions. Arrested this morning by FBI agents, Esposito now stares down a wire fraud charge that could land him in prison for up to 20 years.

According to a criminal complaint unsealed today, Esposito posed as the president of three companies claiming to buy bulk medical supplies and consumer products for resale. In August 2013, he told an individual, referred to as ‘Victim 1,’ that a buyer had backed out of a medical supply deal. Victim 1 found a new buyer and wired Esposito funds to secure the product — but the supplies never existed. Instead, Esposito allegedly funneled the money into personal expenses, including restaurant tabs, salary payments, and payouts to earlier investors in what appears to be a Ponzi-style shell game.

Esposito didn’t stop there. Over months, he bombarded Victim 1 with emails pitching new ‘lucrative’ investment opportunities in bulk goods at deep discounts. Promising big returns, he collected more cash — all while diverting funds away from any actual deals. To keep the scheme alive, he sent repeated false updates: shipments were imminent, bank issues delayed transfers, deals were closing. None were real.

Victim 1 wired over $1 million to Esposito in total. In a twisted effort to maintain trust, Esposito sent back approximately $517,000 in wire transfers, falsely claiming the money was profit and returned principal from successful transactions. Investigators say those funds were likely recycled from stolen cash, not legitimate earnings. The deception ended in January 2014 — when Esposito went dark, cutting off all communication.

The sole charge — one count of wire fraud — carries a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss. U.S. Attorney Paul Fishman, whose office in Newark is handling the prosecution, credited the FBI’s Newark field office, led by Special Agent in Charge Timothy Gallagher, for cracking the case. Assistant U.S. Attorney Andrew Kogan is leading the government’s case from the Economic Crimes Unit.

Esposito appeared before U.S. Magistrate Judge Mark Falk in federal court this afternoon and was released on bail. He is represented by Brooke M. Barnett, Esq., of Newark. The complaint’s allegations are presumed false until proven in court — but the paper trail, prosecutors say, tells a damning story of greed, deception, and betrayal of trust.