NEWARK, N.J. – Rami Zubidat, 31, of Clifton, New Jersey, is facing a potential 20-year stretch in federal prison after admitting today to running a systematic, million-dollar fraud scheme through a network of household goods moving companies. The operation preyed on vulnerable customers, inflating moving costs by as much as 400 percent after loading their belongings, according to U.S. Attorney Craig Carpenito.
Zubidat pleaded guilty before U.S. District Judge Susan D. Wigenton to one count of conspiracy to commit wire fraud. The scheme involved luring customers with deceptively “low-ball” price estimates, only to jack up the final bill on moving day when customers had no other options. This wasn’t a case of honest mistakes; it was a calculated, years-long pattern of extortion.
Court documents detail how Zubidat and his co-conspirators operated multiple moving companies, consistently exceeding the legally allowed increase from initial estimates – a clear violation of federal regulations. The collective overcharge, tallied across hundreds of moves, exceeded $1 million. Zubidat didn’t just manage these companies; he owned them, directly profiting from the misery of those he ripped off.
“This wasn’t a simple pricing error,” a source close to the investigation told Grimy Times. “These guys were deliberately trapping people. Loading up a truck full of someone’s life, then holding it hostage until they paid an exorbitant ransom. It’s disgusting.” The investigation uncovered a pattern of intimidation and threats used to force customers into paying the inflated fees.
Zubidat has been held in custody since August 2018, and sentencing is scheduled for September 19, 2019. He faces a maximum penalty of 20 years imprisonment and a $250,000 fine. The case was a collaborative effort by the Department of Transportation-Office of the Inspector General, the U.S. Postal Inspection Service, and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).
Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Criminal Division in Newark is prosecuting the case. Zubidat was represented by Stephen Turano, Esq., of Newark, New Jersey. Grimy Times will continue to follow this case and report on any further developments. This conviction sends a message: preying on people during a stressful life event will not be tolerated.
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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