NJ Leader Of Ring That Defrauded DoD Sentenced: Feds

A South Jersey man who owns two defense contracting firms has been sentenced to three years in prison for providing non-conforming parts for military equipment, illegally sharing sensitive technical information and evading income taxes, U.S. Attorney Craig Carpenito announced.

Roger Sobrado, 49 of Marlton, previously pleaded guilty to an information charging him with one count each of conspiracy to commit wire fraud, conspiracy to violate the Arms Export Control Act, and income tax evasion.

He was also sentenced to three years of supervised release and ordered to pay $8,043,977 in restitution.

Sobrado owned Tico Manufacturing Inc. (TICO), a purported manufacturing company, and Military and Commercial Spares Inc. (MCS), a defense contracting company, both in Berlin Township, according to documents filed in the case and statements made in court.

He admitted that between January 2011 and December 2015, MCS lied to the U.S. Department of Defense (DoD) when it claimed it could provide military parts exactly as described and provided by authorized manufacturers, according to authorities.

The DoD contracts specified that the parts were critical application items for military equipment, including fighter jets and helicopters, authorities said.

Sobrado recruited family members to establish companies that contracted with DoD and lied about the same thing, authorities said.

Sobrado used TICO to contract with local manufacturers to supply non-conforming parts to MCS and his family members’ companies at a significantly reduced cost, according to authorities. The non-conforming parts supplied by Sobrado were shipped from New Jersey to various DoD locations around the country.

In exchange, DoD paid Sobrado and his family members for the non-conforming parts, and the family members gave their money to Sobrado, authorities said.

Sobrado also deposited some of his business receipts into his personal account and paid for personal items with that money without telling his accountant, according to authorities.

Sobrado reported a total taxable income of $1,608,372, neglecting to report additional income of $1,182,405 for tax years 2011 through 2014, according to authorities. As a result, the U.S. government lost $509,962, authorities said.

He also admitted to submitting a fraudulent application to DoD for access to export controlled drawings and technical data on behalf of a family member’s company between August 2005 and November 2010, authorities said.

He requested the drawings and technical data on behalf of a family member who couldn’t get access to the drawings because he wasn’t a U.S. citizen, authorities said.

Oben Cabalceta, 53 of Atco, was a native and citizen of the Republic of Costa Rica who overstayed his tourist visa in 2000 and was not lawfully in the United States, according to authorities.

Cabalceta wanted to gain access to the drawings on behalf of one of his companies that was involved in the overall scheme, Owen's Fasteners Inc. He also owned United Manufacturer LLC.

Both men have acknowledged that access to the controlled drawings and technical data was limited to citizens of the United States and to those lawfully in the United States, according to authorities.

They have also both acknowledged that on July 28, 2011, and at various times between January 2013 and November 2015, that family member accessed or downloaded hundreds of drawings that were sensitive in nature and that required special access.

Cabalceta previously pleaded guilty to one count of wire fraud and one count of conspiracy to violate the Arms Export Control Act, and awaits sentencing.