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U.S. Department of Labor Investigation Results in General Foreman at Port Elizabeth Being Sentenced to Two Years in Prison and Paying $749,000 in Restitution for Salary Fraud
NEWARK, NJ – After a U.S. Department of Labor investigation, the U.S. District Court for the District of New Jersey has sentenced Paul Moe, Sr., a member of the International Longshoremen’s Association (ILA) and general foreman for a Port Elizabeth terminal operator, to 24 months in prison for fraudulently collecting a nearly $500,000 annual salary, much of which was for work he never performed. The court also sentenced Moe to three years of supervised release and ordered him to pay $749,000 in restitution.
The Atlantic Highlands, New Jersey, resident was convicted at trial in October 2017 on one count of wire fraud conspiracy and 13 substantive counts of wire fraud. The jury found that - from September 2015 through March 2017 - Moe fraudulently collected a compensation package that paid him almost $500,000 annually while showing up at his job site for as little as 8 hours per week. To enable Moe to collect his $9,300 weekly paycheck, other conspirators submitted false timesheets each day on his behalf and even credited him for up to 16 hours of overtime a day.
“The U.S. Department of Labor will aggressively seek to correct abuses committed by people who submit false documents knowingly to commit fraud for the purpose of enriching themselves at the expense of employers and employees,” said Thomas Licetti, Employee Benefits Security Administration (EBSA) Acting Regional Director in New York.
The Department of Labor’s EBSA, Office of Inspector General, and Office of Labor Management Standards, and the Waterfront Commission of New York Harbor investigated the case. The office of U.S. Attorney Craig Carpenito prosecuted the case.
Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Additional information can be found at http://www.dol.gov/ebsa.