Javan Smith, 72, of Delray Beach, Florida, has admitted to stealing nearly $1 million in merchandise from the fabric company he once helped run. The former vice president of distribution at a Secaucus-based firm pleaded guilty in Newark federal court to one count of interstate transportation of stolen property, capping a years-long scheme that bled his employer dry.
Smith, who worked at the company’s Secaucus warehouse from 1992 to 2014, began quietly orchestrating a theft operation in 2010. He diverted high-value fabric shipments meant for legitimate clients and sold them ‘off the books’ at discounted rates. These backdoor deals were not recorded in company ledgers, allowing Smith to pocket cash while customers got steep discounts — and kept the goods.
Court documents reveal Smith made side arrangements where customers would order a set amount of material but receive far more than invoiced. In return, they paid Smith directly for the extra, stolen inventory. In other instances, customers placed real orders, took delivery, then — with Smith’s inside help — canceled the transactions and received full refunds. They kept the goods and kicked back a cut to Smith.
The fraud spiraled over four years, racking up approximately $945,000 in losses for the company. Authorities say Smith exploited his senior position and deep knowledge of logistics and inventory systems to cover his tracks. The thefts went undetected for years, eroding company profits while Smith lined his own pockets.
The charge Smith pleaded guilty to carries a maximum penalty of 10 years in prison and a $250,000 fine. U.S. Attorney Paul J. Fishman, who announced the plea, credited FBI special agents under Newark Special Agent in Charge Timothy Gallagher for cracking the case. The investigation traced financial flows and delivery records to expose the elaborate fraud.
The government is being represented by Assistant U.S. Attorneys Lakshmi Herman and Zach Intrater of the Economic Crimes Unit in Newark. Smith is represented by defense attorney Evan Goldman, Esq., of Hackensack, New Jersey. Sentencing is scheduled for a later date before U.S. District Judge William J. Martini.
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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