Brian M. Campbell, Embezzlement, New Jersey 2007

Brian M. Campbell, the former managing director of the Pamrapo Service Corporation, was convicted of embezzling more than $571,000 from the investment arm of the Pamrapo Savings Bank.

The conviction comes after an eight-day trial before U.S. District Judge Dickinson R. Debevoise in Newark, where Campbell was found guilty of all 33 mail fraud counts charged in the superseding indictment on which he was tried.

Campbell, 42, of Bayonne, N.J., was convicted of mail fraud in connection with a scheme to embezzle commissions and fees belonging to the Service Corporation through a mail fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Paul J. Fishman for the District of New Jersey.

According to court documents and evidence presented at trial, Campbell was the managing director and employee of the Service Corporation, which provided securities and investment services to clients for a fee. In August 2001, the Service Corporation entered into a contract with Prime Capital Services Inc. (Prime), a broker-dealer of securities transactions, and Campbell entered into a contract with Prime where he agreed to act as a registered representative for Prime on behalf of the Service Corporation.

In early 2007, Campbell contacted representatives from Prime and Asset and Financial Planning, falsely telling them that Pamrapo Savings Bank wanted to get out of the investment advisory business and that the bank wanted all commissions sent directly to Campbell. In May 2007, Campbell sent a letter to Prime's president, repeating these false statements. The bank's chairman of the board, another director on the board, and the bank's chief financial officer testified that statements Campbell made were false, and that Campbell was not authorized by the bank to speak on its behalf.

The jury was unable to reach a verdict on three counts of money laundering. Campbell's conviction is a significant blow to the financial industry, highlighting the need for strong oversight and accountability. The case serves as a reminder that embezzlement and financial misconduct will not be tolerated and will be prosecuted to the fullest extent of the law.

Brian M. Campbell, a Bayonne, N.J. resident, will be sentenced at a later date. The exact date of sentencing has not been announced. The maximum penalty for mail fraud is 20 years in prison and a fine of $250,000 or twice the gross gain or loss.

Source: https://www.justice.gov/archives/opa/pr/managing-director-bank-s-investment-company-convicted-embezzling-more-571000