$6.7M Fuel Investment Fraud Scheme Involved 2 Middlesex Co. Men: AG

WOODBRIDGE, NJ — Two Middlesex County men stole millions of dollars in an investment fraud scheme centered around two phony fuel companies, officials said.

A state grand jury has indicted 39-year-old Shahid Javed of Old Bridgeand 64-year-old Wilfredo Topacio of Woodbridge in connection with that alleged scheme.

The pair are accused of taking more than $6.7 million from investors over the course of five years, said Attorney General Matthew J. Platkin's office.

According to the indictment, Javed and Topacio enticed the victims into investing their money in two "sham companies," saying that they would get guaranteed returns on their fuel product investments.

Instead, officials said they diverted the investor funds for their own personal gain — and used it to pay down business debts, buy expensive cars, and send money to friends and family.

The defendants ended up collecting $1.1 million in investment contracts for “Prime Petroleum” and $5.6 million for contracts with "Petro Traders," court papers show.

"Javed and Topacio also allegedly laundered the funds through bank accounts and corporate entities they controlled to pay the investors in excess of $500,000 in purported investment returns with the investors’ money to promote the alleged deception that their investments actually yielded returns," Platkin's office said.

Both men face charges including 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.

Javed was charged in a separate indictment with second-degree passing a bad check to an investor.

“Investment-fraud schemes prey on vulnerable victims with empty promises of huge profits and guaranteed returns,” said Platkin in a statement. “These defendants allegedly worked together to orchestrate a multi-faceted investment-fraud scheme that took advantage of New Jersey investors for several years. The time has come for them to be held accountable.”