Lakewood Man Admits Money Laundering In $1M Wire Fraud Scam

NEWARK, NJ — A Lakewood man has pleaded guilty to money laundering in a scheme that stole more than $1 million from a payment card corporation, federal authorities said Tuesday.

Eli Schamovic, 41, pleaded guilty Tuesday to money laundering before U.S. District Judge Kevin McNulty in Newark, U.S. Attorney Philip R. Sellinger said. He faces up to 10 years in prison and a fine of $250,000, or twice the gross profits or gross loss suffered by the victims, whichever is greatest. Sentencing is scheduled for Sept. 8, Sellinger's office said.

Investigators found Schamovic had transferred at least $500,000 from a bank account in his name. The money resulted from a scheme where he made — or caused others to make — numerous fraudulent financial transactions through at least two entities that Schamovic formed and established as merchants that used multiple credit card processing companies.

The fraudulent transactions stole more than $1 million from a multinational financial services corporation that specialized in payment cards, federal authorities said.

The U.S. Postal Inspection Service in Newark; the FBI, and special agents of IRS-Criminal Investigation, investigated the case.