Ex-CFO Took $115K From Monmouth Autism Services Group: Indictment

TRENTON, NJ – The former chief financial officer of an autism services organization was indicted Tuesday on charges he stole about $115,000 from the organization and spent it on cars, furniture and a $2,000 fish tank, among other things, the state attorney general's office said.

Peter Pflug, 55, of Freehold, was the former CFO for New Horizons in Autism. He was indicted on second-degree charges of theft by unlawful taking and misapplication of entrusted property and property of government, Attorney General Gurbir S. Grewals said. The alleged expenditures, between June 2015 and February 2018 included cars, and furniture for his home, authorities said.

New Horizons, a nonprofit based in Monmouth County, provides services to individuals with autism, including the operation of group homes. New Horizons receives the vast majority of the funding for its programs through a contract with the New Jersey Division of Developmental Disabilities.

Pflug, as chief financial officer of New Horizons, was entrusted with use of the organization’s credit cards and checking accounts to make purchases for the nonprofit. It is alleged that Pflug, without authorization, used the nonprofit’s accounts to buy personal items and frequently recorded then products and services as purchases made for group homes operated by the nonprofit.

The alleged personal purchases made by Pflug using New Horizons’ credit cards and checks included:

• more than $36,000 for purchases of personal vehicles and expenses related to personal vehicles;
• about $10,000 for carpeting for his home;
• more than $35,000 for other renovations and repairs to his home;
• more than $20,000 for landscaping and fencing at his home;
• more than $10,000 for new dining room and bedroom furniture and a new refrigerator; and
• nearly $2,000 for a fish tank and related equipment.

"Pflug is alleged to have abused his position as chief financial officer of this nonprofit by diverting funds for his personal use that were intended to provide services to individuals with autism," Grewal said. "Most of this was taxpayer money, dedicated to funding group homes under a state contract."

"The betrayal (of a nonprofit organization) was even more egregious because Pflug allegedly stole public funds intended for the assistance of a particularly vulnerable population," said Veronica Allende, director of the Division of Criminal Justice.

The indictment is the result of an investigation by the Division of Criminal Justice Corruption Bureau. Detectives of the Division of Criminal Justice executed a search warrant in April at Pflug’s home, where they allegedly identified numerous items and home improvements paid for using New Horizons credit cards and financial accounts.

Second-degree charges carry a sentence of five to 10 years in state prison and a fine of up to $150,000. The indictment is merely an accusation and the defendant is presumed innocent until proven guilty.

The indictment was handed up to Superior Court Judge Mary C. Jacobson in Mercer County, who assigned the case to Monmouth County, where Pflug will be ordered to appear in court at a later date for arraignment.
Attorney General Grewal and Director Allende noted that the Division of Criminal Justice has a toll-free Corruption Tipline 1-866-TIPS-4CJ for the public to report corruption, financial crime and other illegal activities confidentially. The public can also log on to the Division webpage at www.njdcj.org to report suspected wrongdoing confidentially.

The Attorney General’s Office has an Anti-Corruption Reward Program that offers a reward of up to $25,000 for tips from the public leading to a conviction for a crime involving public corruption. Information is posted on the Attorney General’s website at: http://nj.gov/oag/corruption/reward.html.

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Peter Pflug, photo provided by the state Attorney General's Office