Prison For Old Bridge Man Who Ran $7.7 Million Ponzi Scheme

OLD BRIDGE, NJ — An Old Bridge man was sentenced Thursday to seven years in state prison for defrauding investors of approximately $7.7 million in a fraud scheme involving fake jet fuel companies, announced New Jesrey Attorney General Jennifer Davenport.

Shahid Javed, 41, of Old Bridge, pleaded guilty in April to two counts of second-degree securities fraud and one count of second-degree theft by deception.

Javed admitted that from March 2018 through May 2023, he conducted a fraud scheme to steal approximately $7.7 million from investors. He obtained $640,000 in loans from his investors for his company, East Coast Energy Partners, to supposedly purchase and sell jet fuel.

Instead, he diverted the funds for his personal use. He ran a Ponzi scheme, where he bought himself a Bentley, a boat and a home, and also used investors' money to pay off other creditors.

Javed created two additional fake New Jersey companies — Prime Petroleum Group LLC (PPG) and Petro Traders Group LLC (PTG) — and falsely claimed they generated substantial investment returns through the purchase and sale of fuel products and ownership interests in an oil refinery in Texas.

To perpetuate the fraud, he impersonated multiple fictitious employees from these fake companies to solicit millions of dollars in investments from the victims.

Woodbridge Police helped investigate this case, and the Attorney General thanked them for their detective work.

In addition to the prison term, Javed was ordered to pay $250,000 in restitution.

He and a codefendant were indicted two years ago, in July 2024; the charges against the codefendant remain pending.

Javed admitted to misleading investors with promises of investment returns of up to 50 percent.

“The defendant admitted his role in leading a complex scheme to defraud investors of millions of dollars to line his own pockets,” said Division of Criminal Justice Director Theresa Hilton. “He used dishonest tactics and made false claims to swindle his victims. He must now face the consequences of his actions.”