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The scheme used sham companies and false identities to deceive investors into believing they would receive large guaranteed returns from investments in fuel products, according to Attorney General Matthew J. Platkin.
Instead, the defendants diverted investor funds for their own benefit, Platkin said.
Shahid Javed, 39, of Old Bridge, and Wilfredo Topacio, 64, of Woodbridge, were charged in an indictment with first-degree conspiracy, second-degree theft by deception, two counts of second-degree securities fraud, three counts of misconduct by a corporate official, three counts of second-degree impersonation, and two counts of first-degree money laundering in connection with the alleged fraud scheme, Platkin said. Javed is also charged in a separate count with second-degree passing a bad check to an investor during the alleged scheme.
The indictment alleges the scheme began in or about March 2018 and continued through in or about April 2023.
The alleged scheme included defrauding these investors into purchasing $1.1 million in investment contracts with Prime Petroleum, LLC (“Prime Petroleum”) and $5.6 million in investment contracts with Petro Traders Group, LLC (“Petro Traders”), two purportedly legitimate businesses generating substantial profits and guaranteed returns from fuel-product investments.
The defendants, however, allegedly operated these entities as sham companies and diverted investor funds for their own benefit, including, among other things, purchasing expensive vehicles, making payments to friends and family, paying off prior business debts, and paying for other personal expenses, Platkin said.
“Investment-fraud schemes prey on vulnerable victims with empty promises of huge profits and guaranteed returns,” Platkin said.
The investigation of other individuals involved in the scheme as well as other potential victims remains ongoing. Anyone with information is asked to contact DCJ’s tip line at (800) 277-2427 or OSFFCP’s complaint email at OSFFCP@njdcj.org.
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