Felon Sentenced For NJ COVID Benefit Fraud, Must Pay $942K: Officials

CAMDEN, NJ — Officials say a Camden County man who submitted fake applications for COVID-19 relief will go to prison for his role in fraudulently obtaining benefits, and for illegally possessing a firearm.

A judge in Camden federal court sentenced Stephen Bennett, 46, of Berlin to 41 months in prison, according to U.S. Attorney Philip R. Sellinger.

U.S. District Judge Karen M. Williams ordered him to pay restitution of $942,141 and sentenced him to five years of supervised release, said Sellinger.

In July, Bennett pleaded guilty to one count of bank fraud conspiracy, one count of wire fraud and one count of being a felon in possession of a firearm.

Officials say Bennett conspired with Rhonda Thomas of Sicklerville to submit applications for COVID-19 financial relief using made-up employees, revenue and payroll information.

"The applications stated that the company had 16 employees, gross revenues of $1.73 million, and an average monthly payroll of $144,000, when in fact the company had no employees, revenue, or payroll," Sellinger's office said.

The pair also "submitted forged tax forms and altered bank statements," officials said. The federal government approved $510,000 in loans based on Bennett and Thomas' fraudulent acts, according to officials.

Of that total, $150,000 went to Thomas in kickbacks and the balance was used to pay for personal items such as jewelry and vehicles, according to officials.

Bennett had also received $425,339 from the state of Pennsylvania's Department of Labor in 2020 based on "fraudulent claims he submitted," officials said. In this scheme, officials said, he collected other peoples' information and submitted them for unemployment benefits.

In addition, a May 2021 search of Bennett's home yielded "a .9 millimeter semiautomatic pistol with no serial number (commonly referred to as a ghost gun) and a magazine loaded with 16 rounds of ammunition," according to officials. Bennett is a previously convicted felon, Sellinger said.

Thomas has previously pleaded guilty to bank fraud conspiracy and money laundering, according to officials. Her sentence is pending, Sellinger said.