Toms River Man Sold $35M In Banned Security Equipment To NJ Law Enforcement: Feds

NEWARK, NJ — A Toms River man has been charged with wire fraud and making false statements, after authorities said he sold $35 million in security cameras and equipment to New Jersey law enforcement agencies that came from a banned Chinese company, then falsely claimed the equipment had not come from the banned firm.

Tamer Zakhary, 49, of Toms River, the owner and CEO of a Lyndhurst firm that sold equipment all over the state, was charged with three counts of wire fraud and one count of making false statements, U.S. Attorney Philip R. Sellinger announced.

Zakhary appeared before U.S. Magistrate Judge Edward S. Kiel in Newark federal court Thursday and was released on $100,000 unsecured bond.

Zakhary is the owner and CEO of PackeTalk, according to his LinkedIn profile. The company was not named by federal authorities in the criminal complaint.

In August 2018, a provision in the John S. McCain National Defense Authorization Act for Fiscal Year 2019 banned the federal government from buying or obtaining video surveillance and telecommunications equipment from specifically identified Chinese companies and from entering into contracts with any entity that uses such video surveillance equipment from those specifically identified Chinese companies, authorities said.

That provision, referred to as Section 889, listed the Chinese companies that were banned.

Federal authorities allege Zakhary sold millions of dollars’ worth of surveillance cameras and equipment to law enforcement entities from August 2019 through December 2022 that he had obtained from a Chinese company specifically identified in Section 889.

Zakhary then lied to his customers about the source of his company’s products, saying they were compliant with Section 889 when in fact they were not, according to the criminal complaint. Those customers included public safety and law enforcement agencies in New Jersey, including prosecutors' offices, sheriffs' offices, police departments and towns, federal authorities said.

He also lied to FBI agents when he was questioned about the source of the equipment, according to the complaint.

The customers purchased at least $35 million in surveillance cameras and equipment from Zakhary’s company, more than $15 million of which consisted of federal funds and grants.

The wire fraud charges each carry a maximum penalty of 20 years in prison; the false statements charge carries a maximum penalty of five years in prison, federal authorities said. All counts are also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the charges.