Newark, N.J. – In a shocking turn of events, former freight company executive Morten Nielsen, 37, has pleaded guilty to a scheme that resulted in the embezzlement of over $550,000 from the company.
Nielsen, a Danish national residing in New Jersey, admitted to submitting fraudulent invoices from a sham company he controlled to the freight forwarding company for work that the sham company never performed.
The scheme, which took place from July 2017 through July 2019, involved Nielsen sending the fraudulent invoices on behalf of his employer to the Egyptian government. The invoices were approved by Egypt and, in turn, the U.S. Department of Defense reimbursed the freight forwarding company.
Nielsen caused his employer to pay the sham company he created approximately $559,000 over the course of two years, and then transferred those funds into his personal account.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or loss, whichever is greatest.
Nielsen is scheduled to be sentenced on March 23, 2022.
Acting U.S. Attorney Rachael Honig credited special agents of the FBI, U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, and Department of Homeland Security, Homeland Security Investigations, with the investigation leading to Nielsen’s guilty plea.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office Government Fraud Unit in Newark.
Mandatory Facts:
1. Defendant: Morten Nielsen
2. Exact Criminal Charges: Wire fraud
3. City and State: Newark, N.J.
4. Exact Date: July 2017 to July 2019 (crime date)
5. Sentence or Outcome: Nielsen pleaded guilty to wire fraud, sentencing scheduled for March 23, 2022
6. Dollar Amounts: $559,000
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Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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