New Jersey informant in fraud scheme arrested for lying to FBI
Several years ago, federal investigators arrested nearly 50 individuals believed to be involved in one of the largest fraud schemes in New Jersey's history. One New Jersey man who was arrested in connection with the scheme recently had his bail revoked after violating the terms of his agreement as a cooperating witness.
In 2006, the man was arrested and admitted to being a part of a Ponzi scheme that resulted in $50 million fraud charges. He agreed to help investigators and after pleading guilty was released on bail until his next court appearance. His most recent arrest was the result of lying to federal agents about a rental car he failed to return.
The federal government used him to get evidence of other potentially illegal dealings involving politicians and businessmen and businesswomen. The man went undercover and sought help on the East Coast from prominent politicians with regards to illegitimate real estate deals.
Because of his undercover work, federal agents gained enough information and evidence to arrest a number of individuals who were involved in political corruption. Though the details of those arrests are not given in the article, it does mention that some of the charges included bribery, conspiracy, and extortion. The man was called to testify as a witness in several of those trials.
But the recent arrest will keep the man in custody until his sentencing hearing in March. There is no indication as to what the sentence could be; federal charges of fraud can carry serious penalties. Because of his cooperation, he may face a less severe sentence.
Source: Asbury Park Press online, "Solomon Dwek's bail revoked in corruption case," Jean Mikle, 29 June 2011