$1.5M Cosmetics Scheme Gets Former Bergen Man A 29-Month Sentence

NEWARK, NJ — A former Englewood resident was sentenced to 29 months in prison for his role in a cosmetics investment scheme, according to a news release.

Matthew Benjamin, 54, previously pleaded guilty to charges of wire fraud and securities fraud according to Philip R. Sellinger, the U.S. Attorney for the District of New Jersey. A U.S. District Court judge sentenced him Thursday.

Benjamin got more than $1.5 million from at least three families by promising them closeout cosmetics, Sellinger said. Benjamin ran a company, Clear Solutions Group LLC, and told the families he had "lucrative contracts" to buy closeout or excess goods through his connections in the cosmetics and fragrance industry.

"Benjamin induced the victims to provide him with money to purchase the inventory from the first company and promised significant profits in return," the news release said. "Instead of investing the money as he promised, Benjamin misappropriated the investors’ money for his own use and benefit."

He used the money for food, travel, legal fees, house and car rentals, and summer camp tuition for family members, Sellinger's office said.

The judge also sentenced Benjamin to three years of supervised release, ordered forfeiture of $1.53 million, and ordered him to pay $909,539 in restitution.

Benjamin lives in New York and used to live in Englewood, Sellinger's office said. The U.S. Securities and Exchange Commission filed a civil complaint against Benjamin "based on allegations underlying the securities fraud charge," the news release said.