An Old Bridge man who admitted stealing millions from investors through fake fuel companies, a luxury car purchase, and a fraudulent investment operation has been sentenced to seven years in state prison.
A Middlesex County man will serve seven years in state prison after admitting he orchestrated a multimillion-dollar securities fraud scheme that prosecutors say defrauded investors out of approximately $7.7 million.
Attorney General Jennifer Davenport announced that Shahid Javed, 41, of Old Bridge, was sentenced June 18 in Morris County Superior Court after pleading guilty earlier this year to securities fraud and theft by deception charges.
Fake fuel companies used to attract investors
Javed pleaded guilty on April 15 to two counts of second-degree securities fraud and one count of second-degree theft by deception before Superior Court Judge Ralph E. Amirata.
According to prosecutors, Javed admitted that between March 2018 and May 2023 he carried out a fraud scheme targeting investors with promises of lucrative returns from fuel-related businesses.
“At his plea hearing, Javed admitted that from March 2018 through May 2023, he conducted a fraud scheme to steal approximately $7.7 million from investors,” the Attorney General’s Office said.
Authorities said Javed initially obtained approximately $640,000 in purported loans for a company called East Coast Energy Partners, claiming the money would be used to buy and sell jet fuel.
Instead, prosecutors said he diverted the funds for personal use.
Investors promised returns of up to 50%
Investigators said Javed later created two fake New Jersey companies, Prime Petroleum Group LLC and Petro Traders Group LLC, and falsely claimed they generated substantial profits through fuel trading operations and ownership interests in a Texas oil refinery.
To support the scheme, prosecutors said Javed impersonated multiple fictitious employees to convince victims to invest.
“Javed admitted to misleading investors with promises of investment returns of up to 50 percent plus the return of their original investment,” authorities said.
Rather than generating legitimate profits, prosecutors said Javed operated a Ponzi scheme, using investor money to make approximately $1 million in purported returns to earlier investors in order to encourage additional investments.
Luxury purchases funded by investor money
According to prosecutors, Javed used investor funds to support his personal lifestyle.
Authorities said he used the money to pay creditors, acquire a Bentley automobile, and purchase a home and a boat.
“He knowingly used the investors’ funds for his personal benefit, including paying his creditors, obtaining a Bentley automobile, and purchasing a house and a boat,” prosecutors said.
Restitution ordered
In addition to the prison sentence, Judge Amirata ordered Javed to pay $250,000 in restitution.
Attorney General Davenport said the case reflects New Jersey’s commitment to prosecuting financial crimes targeting investors.
“The defendant stole from hardworking New Jerseyans who were simply looking for ways to invest their money wisely,” Davenport said.
Division of Criminal Justice Director Theresa L. Hilton said Javed “used dishonest tactics and made false claims to swindle his victims.”
The case was prosecuted by Deputy Attorney General Jack Daily on behalf of the Office of Securities Fraud and Financial Crimes Prosecutions.
Authorities noted that charges remain pending against a codefendant who was indicted alongside Javed in 2024.
Key Points
• Old Bridge resident Shahid Javed was sentenced to seven years in prison for a $7.7 million securities fraud scheme.
• Prosecutors said he created fake fuel companies and promised investors returns of up to 50 percent.
• Authorities said investor funds were used to purchase a Bentley, a house, and a boat while operating a Ponzi scheme.