Hudson County Brothers Ran Scrap Metal Scheme For 17 Years: Prosecutor

HUDSON COUNTY, NJ — The owners of a scrap metal company were arrested Wednesday and charged with running a 17-year conspiracy that allegedly defrauded customers out of millions of dollars, prosecutors say.

Craig Cinelli, 47, of Allendale, and his brother, Joseph Cinelli Sr., 61, of Montvale, were indicted on five counts of wire fraud and one count of conspiracy to commit wire fraud, Acting U.S. Attorney William E. Fitzpatrick announced.

The brothers own Cinelli Iron & Metal Co. in Secaucus, prosecutors said.

From 1999 through March of 2016, the brothers, along with former CFO David Barteck, 53, allegedly fraudulently purchased scrap metal from customers for less than what should have been paid for it, Fitzpatrick said.

The conspirators allegedly a variety of techniques to misrepresent the type of scrap metal contained in a specific haul and how much the metal weighed, authorities said.

Each wire fraud charge carries a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

Barteck pleaded guilty to conspiracy to commit wire fraud July 26. He admitted that the loss caused by the conspiracy that was "reasonably foreseeable" to him was more than $9.5 million but less than $25 million, Fitzpatrick said. He is scheduled to be sentenced Oct. 30.

Reporting by Daniel Hubbard (Patch Staff)

Send local news tips, photos and press releases to eric.kiefer@patch.com

Photo: Shutterstock