Soda-Related Scheme Gets Essex County Man 39 Months In Jail

ESSEX COUNTY, NJ — An Essex County resident was sentenced to 39 months in prison for fraudulently using more than $550,000 in investment funds that he solicited to purchase and sell consumer products in bulk, Acting U.S. Attorney William Fitzpatrick announced last week.

Michael Esposito, 45, of North Caldwell, previously pleaded guilty before U.S. District Judge William Martini to an information charging him with one count of wire fraud. Judge Martini imposed the sentence on July 25 in Newark federal court, according to the U.S. Attorney Office (New Jersey).

According to court documents and statements, from August 2013 through February 2017, Esposito was the president of several entities that purported to purchase consumer products in bulk from manufacturers for resale to wholesalers and retailers. Esposito told potential investors that he could purchase consumer goods – such as soda and bottled water – at substantial discounts, and that he had buyers ready to purchase the products at a significant profit.

In return for providing the funds necessary to purchase the products, Esposito promised the victim investors a large percentage of the profits. However, Esposito used the funds for his personal expenses and to pay other investors in order to make it appear the money was properly used, prosecutors stated.

Esposito admitted that his actions resulted in losses of more than $550,000, prosecutors said.

In addition to the prison term, Judge Martini sentenced Esposito to three years of supervised release. Restitution will be determined at a late date, prosecutors said.

• See related article: North Caldwell Man Admits To $550K ‘Soda Discount’ Fraud

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