Ex-nj transit executive admits to $1. 3m cellphone theft scheme, tax fraud

Former NJ Transit manager pleads guilty after stealing and reselling 1,000+ phones

TRENTON, N.J. – A former NJ Transit supervisor admitted in court to orchestrating a years-long scheme to steal more than 1,000 agency-issued cellphones and resell them for personal profit, netting hundreds of thousands of dollars while failing to report the income for tax purposes.

Peejay Manila, 37, formerly of Hackensack and now of Little Ferry, pleaded guilty March 24 to second-degree theft by unlawful taking and third-degree failure to pay or turn over taxes. Prosecutors say the scheme spanned more than four years and cost NJ Transit approximately $1.3 million.

Attorney General Jennifer Davenport said the defendant abused his role within the agency to carry out the theft. “For years, this defendant stole from NJ Transit in order to fund his lavish lifestyle,” said Attorney General Davenport. “He exploited his position of public trust for his own ends and hurt New Jersey taxpayers in the process. Our office will continue to protect the public fisc and ensure that all public servants perform their duties with integrity.”

Scheme spanned years, funded travel and luxury spending

Authorities said Manila began the scheme around November 2020 while working in a senior leadership role at NJ Transit, where he had access to accounts used to purchase electronic devices for employees.

Instead of distributing the phones for official use, Manila admitted he ordered the devices and diverted them for resale through multiple buyback companies, generating more than $900,000 in proceeds.

Key Points

Former NJ Transit executive stole over 1,000 phones worth about $1.3 million
Sold devices to buyback companies, generating more than $900,000
Faces five-year prison term and ordered to pay full restitution

Prosecutors said Manila used the proceeds to fund personal expenses, including international travel to destinations such as Japan and Dubai.

“Instead of serving the people of New Jersey, this defendant used his position for his own personal benefit,” said Eric L. Gibson, Executive Director of the Office of Public Integrity and Accountability. “Our office will continue to work tirelessly towards rooting out this type of public corruption in New Jersey.”

Search warrants reveal stockpile, sentencing set for June

During a May 2025 search of Manila’s residence, office, and vehicle, investigators recovered approximately 20 cellphones, including several new devices still in unopened boxes. Some were packaged and labeled for shipment to a buyback company, according to court documents.

Officials said most of the seized devices were confirmed to have been purchased through NJ Transit accounts under Manila’s control.

Under the plea agreement, prosecutors will recommend a five-year prison sentence. Manila must also pay approximately $1.383 million in restitution and file amended tax returns for 2021 through 2024, with an estimated $56,000 in back taxes owed.

He has forfeited all public employment and is permanently barred from holding any government position in New Jersey.

Sentencing is scheduled for June 5, 2026.

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