CAMDEN, NJ – An Essex County man has entered a guilty plea in a federal court to participating in a fraudulent scheme that siphoned $470,000 from a Jersey City condominium complex owner, according to U.S. Attorney Philip R. Sellinger.
Jonathan Smith, 56, from Montclair, New Jersey, acknowledged his role in a conspiracy to commit wire fraud before U.S. District Judge Karen M. Williams in Camden. This admission is part of a larger investigation involving two other individuals, Nathaniel Obedos and Ranaldo Bennett, linked to the same fraudulent activity.
Obedos had previously admitted guilt on July 6, 2023, and is currently awaiting sentencing. Bennett, on the other hand, faces charges and is awaiting trial.
Court documents reveal that between November 2018 and July 2020, Smith, alongside Bennett and Obedos, orchestrated a kickback scheme targeting the Jersey City condo complex. Bennett, serving as the property’s lead manager, and Smith, the superintendent, directed maintenance and repair jobs to Obedos and his firm. In return, Obedos paid kickbacks to Bennett and Smith, facilitated by the submission of inflated invoices for Obedos’s services. These actions led the condominium complex to overpay more than $500,000 for services valued significantly lower, with the excess funds used to finance the kickbacks.
The legal repercussions of conspiracy to commit wire fraud include a penalty of up to 20 years in prison and a fine of $250,000 or double the amount of the fraud’s gross gain or loss, whichever is higher. Smith’s sentencing is scheduled for June 10, 2024.