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Richard E. Schade, 63, of Lumberton, set up four fake companies and approved payments to them for services such as landscaping and maintenance at NJ Transit properties in 2015, Acting Essex County Prosecutor Theodore N. Stephens, II, said Friday.
The scheme was uncovered in October 2015 when an internal audit revealed the unexplained payments.
Schade -- formerly a facilities supervisor -- had authority to approve payments of up to $5,000 at a time from New Jersey Transit to subcontractors for facility maintenance.
An investigation found he siphoned $2.1 million from the agency to himself, Stephens said. Schade entered a guilty plea on Sept. 6, 2019 to one count of second-degree conspiracy to commit theft by deception.
"This defendant was a trusted employee of NJ Transit, authorized to sign off on expenses," Assistant Prosecutor Caroline Oliveira said.
"He abused that trust by engaging in a fraud that resulted in millions of dollars being diverted to undeserving companies and ultimately, to him and the others who were part of this criminal scheme."
He was sentenced by New Jersey Superior Court Judge Arthur Batista to five years in State Prison.
Schade is also required to pay $200,000 in restitution to NJ Transit and is forever disqualified from holding public employment in New Jersey.
Others charged in the scheme include:
Leonard Singleton, 39, of Newfield, a former NJ Transit mechanic; his wife, Shonta Singleton, 39; his mother, Calamity Singleton, 62, of Newfield,;and Adam Horning, 35, of Marlton.
Calamity Singleton was admitted to Pretrial Intervention, a diversionary program. Shonta Singleton pleaded guilty to corporate misconduct and received probation; Leonard Singleton also pleaded guilty to corporate misconduct and is scheduled to be sentenced to three years in State Prison on Sept.16.
No sentencing date has been scheduled for Horning.
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