Attorney General's Office Charges Three More With Sandy Fraud

OCEAN COUNTY, NJ - The state Attorney General's Office has charged three more residents with Superstorm Sandy fraud, bringing the total number of those accused of bilking agencies out of relief funds from the devastating storm to 112.

The Attorney General's office began charging defendants back in March 2014.

“Any fraud against public assistance programs is deplorable, but these thefts were especially egregious because they diverted funds intended for victims left homeless by one of the most devastating storms in New Jersey history,” Attorney General Gurbir S. Grewal said. “We have recovered over $2 million through these prosecutions and we also have sent a strong message that should deter this type of fraud during future disaster relief efforts.”

The three defendants charged this week include:

Diane DiCosmo, 74, Fair Lawn, was charged with theft by deception after she fraudulently received a total of $177,439. That amount included $160,924 in state Reconstruction, Rehabilitation, Elevation and Mitigation funds, $6,515 in Federal Emergency Management Agency, and a $10,0000 Homeowner's Resettlement Grant.

DiCosmo filed a fraudulent application that claimed her home on Melody Lane in Lavallette was her primary home at the time of the storm, when her primary home was in Fair Lawn. The Lavallette home was a seasonal/weekend home, the Attorney General's office said.

Also charged with theft by deception were:

Barry Benevento, 72, and his wife Karen Benevento, 70, of Matawan. The two received a total of $127,388 in relief funds for claiming their home on Mary Jeanne Lane in Manahawkin was their primary home when the storm struck on Oct.29, 2012. Their primary home was in Matawan, the Attorney General's office said.

The couple received $108,788 in RREM grant funds, a $8,600 Small Business Adminstration loan and a $10,000 Homeowner's Resettlement Grant.

“This historic anti-fraud initiative is a model of state and federal collaboration, which continues to produce results in terms of defendants charged and relief funds recovered,” Elie Honig, Director of the Division of Criminal Justice said. “We’ve recovered over $2 million and stand to recover much more by ensuring that all defendants pay full restitution.”

The new cases were investigated by detectives of the New Jersey Division of Criminal Justice and special agents and inspectors of the U.S. Department of Homeland Security Office of Inspector General, HUD Office of Inspector General, SBA Office of Inspector General, HHS Office of Inspector General, the U.S. Postal Inspection Service and the National Insurance Crime Bureau.

The second-degree theft by deception charges carry a sentence of five to 10 years in state prison and a fine of up to $150,000.

Photos: From left to right: Diane DiCosmo, Barry Benevento, Karen Benevento, Courtesy of New Jersey State General's Office