Former Staffers Ran $1M Scam On University In Essex County: Feds

ESSEX COUNTY, NJ — A former assistant dean and two other ex-employees at a graduate school in Essex County have admitted to carrying out a $1.3 million “embezzlement scheme,” federal prosecutors recently announced.

Teresina DeAlmeida, 59, of Warren and Rose Martins, 44, of East Hanover, New Jersey, pleaded guilty to wire fraud conspiracy on Friday. Silvia Cardoso, 61, of Warren, pleaded guilty to the same charge earlier that week, according to the U.S. Attorney’s Office.

Prosecutors didn’t name the specific university in a news release, but Seton Hall officials confirmed the incident took place at the university’s law school, NJ Advance Media reported. A spokesperson said the university “immediately conducted a more intensive review utilizing a third-party auditor and notified the appropriate higher education and government entities.”

“This process led to our implementation of additional financial safeguards and controls to reduce the likelihood of similar incidents,” they added.

Prosecutors released the following allegations about the scam:

“Between 2009 and July 2022, DeAlmeida, Martins and Cardoso conspired to fraudulently misappropriate more than $1.3 million from their former employer, a graduate school of a university in Essex County, New Jersey. DeAlmeida was an assistant dean responsible for financial functions, and Martins served as her assistant. Cardoso, DeAlmeida’s sister, was also employed by the graduate school in a support staff role.”

According to prosecutors, the three defendants used a variety of methods to defraud the university:

FALSE INVOICES - Beginning in 2009, DeAlmeida directed a graduate school vendor to pay Martins and Cardoso as though they worked for the vendor, even though they did not perform any services. DeAlmeida and Martins then caused the vendor to submit false invoices to the graduate school over the course of approximately four years in order to reimburse the vendor for the amounts fraudulently paid to Martins and Cardoso.

GIFT CARDS - From 2010 through 2022, DeAlmeida and Martins directed graduate school vendors to order hundreds of thousands of dollars of gift cards and prepaid debit cards the conspirators used for their personal benefit, and then to submit fraudulent invoices to the school purporting to be for goods and services that were never provided. The conspirators also misused DeAlmeida’s school-issued credit card to purchase hundreds of thousands of dollars of gift cards and prepaid debit cards from the school’s bookstore. DeAlmeida routinely fraudulently approved these charges and Martins forged the signatures of other employees on internal approvals.

SHELL COMPANY - In 2015, Martins opened a shell entity called CMS Content Management Specialist LLC. Although CMS never rendered any services to the graduate school, Martins submitted, and DeAlmeida approved, fraudulent invoices totaling more than $208,000.

CREDIT CARD - The conspirators also used DeAlmeida’s school-issued credit card to make tens of thousands of dollars in unauthorized personal purchases. DeAlmeida and Martins used the card to make over $70,000 in purchases at an online retailer shipped directly to their homes, including woman’s shoes, smart watches, and bed linens. DeAlmeida and Martins fraudulently altered certain receipts before submitting them to the school for payment.

“Through an elaborate, years-long embezzlement scheme, these defendants violated their obligation to the students and exploited took their role at this institution of higher learning to line their own pockets,” U.S. Attorney Philip Sellinger said.

“Through forgery, fraudulent invoices, unauthorized transactions and phony shell companies, they stole money intended to benefit the school and its student body and abused their positions,” Sellinger said.

The wire fraud conspiracy charge carries a maximum potential penalty of up to 20 years in prison and a fine equal to the greater of $250,000 or twice the gain or loss resulting from the offense, whichever is greatest, prosecutors said.

Sentencing for Cardoso is scheduled for Nov. 26, for DeAlmeida on Dec. 2, and for Martins on Dec. 3.

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