2 Charged With Sandy Fraud Involving Ortley Beach Homes: AG

TOMS RIVER, NJ — Two people who own homes in Ortley Beach have been accused of filing fraudulent applications for assistance after their homes were damaged during Superstorm Sandy, Attorney General Christopher S. Porrino announced Thursday.

The latest charges bring to 100 the number of people who have been charged as the fifth anniversary of the storm approaches.

“Charging 100 defendants in these relief-fraud cases is a sad milestone in that it highlights how many people are willing, in the face of a historic disaster, to dishonestly exploit an offer of aid meant for those who were hardest hit,” Porrino said. “At the same time, we’re proud of our collaborative efforts, which have recovered millions of dollars and sent an unmistakable message that those who commit this fraud will face serious criminal charges, now and during any future disasters."

Porrino said nearly $6 million in relief funds were fraudulently diverted by those 100 defendants.

Charged in this most recent round of fraud cases were Michael A. Avena of Wyckoff, and Paula Belotta of Colonia, Porrino's office said in a news release.

Avena, 65, is accused of receiving $201,861 in relief funds after filing fraudulent aid applications for FEMA assistance and state grants under the Homeowner Resettlement Program, the Reconstruction, Rehabilitation, Elevation and Mitigation Program, and the Sandy Homeowner and Renter Assistance Program. Avena is accused of claiming a home he owns on 5th Avenue in Ortley Beach was his primary residence when Sandy struck; authorities allege his primary home at the time of the storm was in Wyckoff and the Ortley Beach home was a vacation home, the release said. He eceived $31,900 from FEMA, a $10,000 RSP grant, RREM grant funds totaling $150,000, and $9,961 in SHRAP funds, authorities said. Avena is charged with second-degree theft by deception and fourth-degree unsworn falsification, authorities said.

Belotta, 56, is accused of receiving $12,270 in funds she was not entitled to receive after she allegedly filed false applications for FEMA assistance and a state grant under the Homeowner Resettlement Program. Belotta is accused of claiming a home she owns on Fielder Avenue in Ortley Beach was her primary residence at the time of the storm; authorities allege her primary residence was in Colonia and the Ortley Beach home was was a seasonal/weekend home. Belotta received $2,270 from FEMA and a $10,000 RSP grant. She is charged with third-degree theft by deception and fourth-degree unsworn falsification, authorities said.

“Our unprecedented collaborative efforts to target Sandy relief fraud have been highly productive," said Elie Honig, director of the Division of Criminal Justice. “The payoff from this anti-fraud program is not only the millions of dollars we are recovering, but also the deterrent message we hammer home each time new charges are filed."

“The State’s continued vigilance against Sandy fraud demonstrates that we won’t stand for this reprehensible behavior,” said DCA Commissioner Charles A. Richman. “As such, my Department remains as committed as ever to working with our law enforcement partners to catch anyone who misuses our Sandy recovery programs.”

The new cases were investigated by detectives of the New Jersey Division of Criminal Justice and special agents and inspectors of the U.S. Department of Homeland Security Office of Inspector General, HUD Office of Inspector General, SBA Office of Inspector General, HHS Office of Inspector General and U.S. Postal Inspection Service, the news release said.

Photos provided by NJ State Attorney General's Office