Head Of Wall Firm Admits Unemployment Fraud

A Point Pleasant man who is head of an engineering consulting firm in Wall Township admitted to leading a scheme in which several of his employees fraudulently collected unemployment benefits while he paid the remaining portion of their salaries, in an effort to reduce his payroll costs, U.S. Attorney Paul J. Fishman announced.

Lino DeAlmeida Jr., 68, of Point Pleasant, pleaded guilty Tuesday before U.S. District Judge Freda L. Wolfson in Trenton federal court to one count of conspiracy to defraud the N.J. State Division of Unemployment Insurance and one count of failing to collect Social Security, Medicare, and income payroll taxes, according to a news release from Fishman’s office.

According to documents filed in the case and statements made in court: DeAlmeida operated an engineering consulting firm, Consolidated Construction Management Services (CCMS) in Wall Township, the release said.

In late 2011, DeAlmeida told his four employees that due to financial difficulties, he could not continue paying their salaries. He proposed a scheme in which the employees would claim to have been terminated from CCMS and seek unemployment benefits from the state. In return, he promised to continue to pay them “under the table” for the remaining portion of their salaries that would not be covered by the benefits, the release said.

Three of the CCMS employees agreed to the scheme and submitted false applications to the state Division of Unemployment Insurance.

DeAlmeida’s employee conspirators received a total of $130,363 in benefits between July 2011 and January 2013 while receiving CCMS checks from DeAlmeida. In addition, DeAlmeida failed to pay payroll taxes of $109,068 on the undisclosed wages of $790,860 he and his conspirators received during the scheme.

The conspiracy to defraud the NJUI charge to which DeAlmeida pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The failure to collect payroll taxes charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, the release said.

DeAlmeida’s sentencing is scheduled for Jan. 5, 2016.