Mercer Man Charged With Embezzling, Laundering Stolen Funds:Prosecutor

Lawrenceville NJ

05 April, 2022

11:23 AM

Description

MERCER COUNTY, NJ — A property manager from an apartment complex in Hamilton Township was indicted on charges of embezzling and laundering stolen funds, Mercer County Prosecutor Angelo J. Onofri said Tuesday. Nicolas DePaola, 64, of Ewing, was indicted April 1 by a Mercer County grand jury on charges of first degree financial facilitation of criminal activity, second-degree theft by unlawful taking, second-degree misapplication of entrusted property, second-degree theft by failure to make required disposition of property received and other offenses. DePaola is charged with embezzling and laundering stolen funds from his former client, Hamilton Park CO-OP of Arena Drive, from 2014 through 2018, Onofri said. DePaola acted as the property manager after taking over for his father, Richard DePaola of R.A. DePaola, Inc. According to the CO-OP's tax documents, which DePaola was responsible for, reported management fees paid by the CO-OP to DePaola for 2014 through 2016 ranged from approximately $64,000-$79,000 per year, Onofri said. From 2014 through 2018, financial records reveal Nicholas DePaola stole approximately $925,403 directly from the CO-OP, through unauthorized checks and transfers from the victim's operating bank account, Onofri said. Authorities said DePaola used the funds to pay his American Express credit card bills in the amount of $224,381 during the same time. In total, DePaola was charged with laundering approximately $1,149,784, Onofri said. He also faces related tax charges. The embezzling was initially uncovered when a tenant mistakenly received a letter from Hamilton Township notifying the recipient that the property was going to be sold within days at a tax sale because the CO-OP owed back taxes and sewer fees to Hamilton Township, Onofri said. The outstanding bill with fees, penalties and interest totaled $372,840.39. The matter was then brought to the attention of the Mercer County Prosecutor's Economic Crime Unit (ECU) in September 2019 and an investigation began. Second-degree crimes carry a penalty of five to 10 years in state prison and a $150,000 fine. Third-degree crimes carry a penalty of three to five years in state prison and a $15,000 fine. If convicted of the first-degree crime of financial facilitation, DePaola faces a penalty of 10–20 years in state prison, to run consecutive to the theft charges, and a $200,000 fine, Onofri said. He would also be subject to a $500,000 anti-money laundering profiteering penalty. Thank you for reading. Have a correction or news tip? Email [email protected] Get breaking news alerts on your phone with our app. Download here. Sign up to get Patch emails so you don't miss out on local and statewide news.