Man Made $250K In False Sandy Claims For Mom's Ocean City Home: Authorities

OCEAN CITY, NJ — A Pennsylvania man has been charged with fraudulently collecting $252,734 from the federal government to cover storm damage costs to his mother’s Ocean City home that was damaged during Superstorm Sandy, authorities said Wednesday evening.

Nicholas Ochs, 54 of Ambler Pa., is charged by indictment with one count of disaster benefits fraud, five counts of mail fraud and one count of theft of government funds. He made his first court appearance on Wednesday, and was released on $100,000 unsecured bond, according to Acting U.S. Attorney William E. Fitzpatrick.

In January 2013, Ochs, on behalf of his mother, filed an application with the Federal Emergency Management Agency (FEMA) seeking federal rental assistance and assistance for personal property damage for her Ocean City home that was damaged during Superstorm Sandy in October of 2012, according to the indictment.

During the inspection, Ochs, acting as power of attorney, signed the application on behalf of his mother attesting that all the information on the application was true and correct, and that ny disaster relief money awarded would be returned if his mother received insurance benefits for the same loss, authorities said.

FEMA initially denied the claim, citing that the property was covered by flood insurance. However, Ochs submitted fraudulent documents to FEMA indicating that the insurance provider denied his mother’s claim, authorities said. In addition, when applying for the federal assistance, Ochs allegedly submitted false documents claiming that, as a result of being displaced, his mother was renting another property on the same block in Ocean City.

Throughout 2013, Ochs faxed fraudulent lease agreements and rental receipts, authorities said. He failed to disclose that the property his mother was renting was owned by his mother and that no rent was ever paid, according to authorities.

Also, in February of 2013, Ochs s contacted FEMA and made a claim for transportation assistance based on his false claim that his mother’s 1985 Mercedes Benz was damaged by the storm.

In all, FEMA paid Ochs’s mother $17,229 for rental assistance and $4,345 for home repairs based on false documents, authorities said. Then, Ochs used the money for his own personal expenses. The total amount of FEMA benefits for rental assistance and home repair that Ochs collected to which he was not entitled was $21,574, authorities said.

On top of that, his mother’s insurance provider ultimately paid her $231,160, $169,518 of which was held in escrow by the mortgage-holder, Wells Fargo. Ochs provided Wells Fargo with fake invoices and forms that made it appear as though the value of the work was much greater than it was, in an effort to get that $169,518 out of the escrow, authorities said.

It apparently worked, as Wells Fargo mailed numerous checks totaling $169,518 to the house in Ocean City. Ochs deposited those checks into bank accounts that he controlled and spent on personal expenses. These funds were ultimately paid for by FEMA pursuant to its National Flood Insurance Program, which backed insurance payments for disaster-related expenses. Altogether, Ochs allegedly defrauded FEMA of $252,734, according to authorities.

The count of disaster benefits fraud carries a potential penalty of 30 years in prison and a $250,000 fine. The mail fraud counts each carry a potential penalty of 30 years in prison and $1 million fine. The count of theft of government funds carries a potential penalty of 10 years in prison and a $250,000 fine.

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