California Man Admits Scheme to Defraud New Jersey Company of More Than $4.6 Million

NEWARK, N.J. - A California man today admitted fraudulently obtaining over $4.6 million from a victim company based in New Jersey, U.S. Attorney Robert Frazer announced today.

Joseph Rodriguez, 71, of Irvine, California, pleaded guilty today before U.S. Magistrate Judge José R. Almonte to Count One of an Indictment charging him with wire fraud.

According to documents filed in this case and statements made in court:

In January 2015, Rodriguez, through his company Old American Incorporated, entered into a factoring agreement with a New Jersey company (Victim-1) to obtain loans secured or collateralized by accounts receivable. Under the factoring agreement, in which a business sells its outstanding invoices to a third party for immediate cash, Old American retained control over customer relationships and debt collection and was required to pay back Victim-1 directly within 90 days.

From February 2023 through July 2023, Rodriguez submitted to Victim-1 fraudulent invoices for millions of dollars in future accounts receivable that Rodriguez falsely represented were owed to Old American. In fact, the customers listed in the invoices Rodriguez provided to Victim-1 did not owe money to Old American for outstanding invoices and there were no accounts payable to turn over. Based on the fraudulent invoices, Victim-1 sent over $4.6 million of advance payments to Rodriguez, which he did not return.

The count to which Rodriguez pleaded guilty carries a maximum penalty of 20 years in prison and a maximum fine of up to $250,000, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. Sentencing is scheduled for February 23, 2027.

U.S. Attorney Frazer credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation.

The government is represented by Assistant U.S. Attorney Farhana C. Melo of the Economic Crimes Unit in Newark.

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