NEWARK, N.J. – Bergen County, New Jersey, man Joseph Ferrara, 56, of North Arlington, New Jersey, has admitted to swindling nearly half a million dollars in overtime pay from the Hudson Bergen Light Rail (HBLR) system, U.S. Attorney Philip R. Sellinger announced today.
Ferrara pleaded guilty before U.S. District Judge Julien X. Neals in Newark federal court to one count of embezzling, stealing, and obtaining by fraud more than $487,000 of funds belonging to and under the care, custody and control of the HBLR. The defendant’s scheme involved claiming hundreds of hours of overtime work on projects throughout Hudson County, despite spending a significant portion of that time vacationing in Florida.
According to court documents, Ferrara submitted fraudulent claims for compensation related to work performed on HBLR projects from January 2018 through April 2020, while working as an employee of a subcontractor specializing in electrical work. The HBLR maintains approximately two dozen stations throughout Hudson County and serves more than 50,000 passengers each weekday.
Ferrara, who supervised numerous workers on HBLR projects, was compensated at a regular rate for normal workday hours, at an elevated overtime rate for work performed during non-regular weekday hours and Saturdays, and at a double time rate for work performed on Sundays. The defendant admitted to spending approximately 10 days vacationing in Florida in both late December 2018 and late December 2019 during which he performed no work for his employer or upon HBLR projects.
Ferrara submitted fraudulent claims representing that he had worked more than 200 hours at regular, overtime and double time rates during those periods. In total, Ferrara admitted to receiving $487,899 in compensation for hours during which he performed no work. As part of his plea agreement, Ferrara agreed to forfeit this amount.
The theft charge is punishable by a maximum potential penalty of 10 years in prison and a maximum $250,000 fine. Sentencing is scheduled for September 5, 2024. U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions Division in Newark.
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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