A 58-year-old man from Manville, New Jersey, has been sentenced to 87 months in federal prison for his role in a scheme that defrauded the New Jersey Traumatic Brain Injury Fund out of more than $4 million. C.R. Kraus was convicted of multiple counts of healthcare fraud and tax evasion, highlighting a significant breach of trust involving funds meant to support victims of traumatic brain injuries.
Key Takeaways
- C.R. Kraus sentenced to 87 months in prison.
- Convicted of conspiracy to commit healthcare fraud and tax evasion.
- Over $4 million misappropriated from the New Jersey Traumatic Brain Injury Fund.
- Co-conspirators Harry Pizutelli and Maritza Flores also involved.
The Fraudulent Scheme
From 2009 to 2019, Kraus, along with his co-conspirators, orchestrated a scheme to defraud the TBI Fund, which is designed to provide essential services to New Jersey residents suffering from traumatic brain injuries. The fund is managed by the New Jersey Division of Disability Services and aims to assist individuals when other financial resources are unavailable.
Kraus and his accomplices submitted false claims for services that were never rendered, resulting in fraudulent payments that severely impacted the fund's ability to assist legitimate patients. The fraudulent activities included:
- False Invoices: Generated to create the illusion of services provided.
- Internal Payment Vouchers: Processed to authorize payments for non-existent services.
- Misappropriation of Funds: Over $4 million was siphoned off through these fraudulent claims.
The Role of Co-Conspirators
Harry Pizutelli, the manager of the TBI Fund, played a crucial role in facilitating the fraud. He was responsible for overseeing the payment process and generated false invoices to ensure Kraus and Flores received payments for services that were never delivered. The breakdown of fraudulent payments included:
- Kraus: Over $3.2 million in fraudulent distributions.
- Flores: More than $940,000 in fraudulent payments.
Pizutelli's actions were reportedly motivated by personal relationships with Flores, further complicating the ethical breaches involved in this case.
Legal Consequences
In addition to his prison sentence, Kraus was ordered to pay $4.19 million in restitution and will serve three years of supervised release following his incarceration. U.S. Attorney Philip R. Sellinger emphasized the severity of the crime, stating that stealing resources intended for vulnerable individuals is particularly egregious.
The investigation, led by the FBI and IRS, aimed to hold those responsible accountable for their actions. The case serves as a reminder of the importance of safeguarding public funds and ensuring that they are used for their intended purposes.
Conclusion
The sentencing of C.R. Kraus marks a significant step in addressing healthcare fraud and protecting the integrity of programs designed to assist those in need. As the legal proceedings continue for his co-conspirators, the case underscores the ongoing efforts to combat fraud within public health programs and ensure that resources are allocated to those who truly require assistance.
Sources
- NJ man sentenced for stealing millions from brain injury victims fund, Central New Jersey News.
- NJ man gets prison for scamming brain injury victim fund, New Jersey 101.5.
- Brain UnTrust: New Jersey Man Defrauded Brain Injury Fund Out of $4 Million, Shore News Network.
- New Jersey Man Gets 87 Months For Defrauding Traumatic Brain Injury Fund Out Of Millions, Tampa Free Press.
