Business & Finance

Wood-Ridge Resident Pleads Guilty To Conspiracy to Commit Wire Fraud

The Federal Courthouse in Newark, NJ.

NEWARK, NJ -  Former Cinelli Iron & Metal Co. (CIMCO) Chief Financial Officer David Barteck, a resident of Wood-Ridge, pleaded guilty to one count of conspiracy to commit wire fraud on July 26, Acting U.S. Attorney William E. Fitzpatrick announced.

CIMCO Chief Executive Officer and co-owner, Craig Cinelli and President and co-owner Joseph Cinelli, Sr., were arrested the morning of August 2 and charged by indictment with one count of conspiracy to commit wire fraud and five counts of wire fraud, and were to appear in Newark federal court Tuesday afternoon before U.S. Magistrate Cathy L. Waldor.

According to documents filed in the case and statements made in court, CIMCO, used fraudulent business practices to pay their customers less than the contracted amount for scrap metal from 1999 through March 2016. CIMCO is accused of using a variety of techniques to misrepresent the weight and type of scrap metal involved in the transactions. 

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The techniques included altering documents to lower the weight of the haul; using a magnet to remove scrap metal before it was weighed; and falsifying records to misrepresent the types of scrap metal in the transactions.  The customers were identified as being corporations from New Jersey, New York, and Illinois.

During his plea hearing, Barteck admitted to the conspiracy, and that the losses to the victims was greater than $9.5 million but less than $25 million.  He is scheduled for sentencing on October 30. 

Under the terms of Barteck’s plea agreement, he will sentenced to 51 to 63 months in prison under federal sentencing guidelines.  

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