Eight individuals—including a Holmdel man—have been charged in a multi-million dollar fraudulent lending scheme that targeted small business owners across the United States. The defendants allegedly operated a criminal advance-fee scam masquerading as legitimate alternative lending, using a network of fake companies to solicit upfront payments from business owners in exchange for loans or lines of credit that were never delivered.
“These defendants perpetrated a years’ long scheme to defraud hard-working business owners in New Jersey and across the United States, stealing millions of dollars from thousands of victims. These charges reflect our Office’s commitment to holding accountable those who prey on small business owners trying to support their communities and earn a decent living.”
— U.S. Attorney Alina Habba
The Fraud Scheme Details
The fraudulent activity began in June 2020 and continued for nearly four years.
Companies Used as Fronts
The defendants operated under numerous business names and domains, including:
- Old Bridge Funding
- Advance Source Capital Group (ASF Capital)
- Clover Advance Group LLC
- Pine Equities
- Quick Call Capital
- Oak Capital Group (oakcapitalgrp.com)
- Delta Fund Group
- FFCG LLC, WSF Capital Group, Forward Advance LLC, United Front Capital, D&D Equities, ASC Group LLC, and others
How the Scheme Worked
- The group contacted small business owners nationwide, promising loans or lines of credit in exchange for upfront fees.
- Victims were told that paying these fees (sometimes called “balloon payments”) would secure funding or improve their creditworthiness.
- Once the upfront payment was made, the promised financing never materialized. The scammers kept the money and often ceased all communication with the victims.
Thousands of small business owners were defrauded, with losses totaling millions of dollars.
The stolen funds were spent on luxury car leases, high-end watches, clothing, and gambling on sporting events.
Legal Proceedings
Charges Filed and Potential Penalties
Each defendant is charged with conspiracy to commit wire fraud. Each count carries a maximum penalty of 20 years in prison and a $250,000 fine, or twice the amount of financial gain or loss from the offense.
Current Status of Defendants
- Joseph Rosenthal (Holmdel), Nicholas Smith, James Missry, Paul Cotogno, Blaise Cotogno, and Adam Akel appeared in Newark federal court and were released on bail.
- Matthew Robertson was arrested in Florida and released after appearing before a magistrate there.
- Nicholas Winter remains in custody on unrelated state charges.
The FBI’s Newark Division led the investigation, with prosecution by the U.S. Attorney’s Office for the District of New Jersey.
Red Flags That Exposed This as a Scam
- Upfront Payment Requirements: Victims were required to pay substantial fees before receiving any funds, a hallmark of advance-fee fraud.
- Guarantees of Approval: The scammers promised loan approval regardless of creditworthiness, which is not standard practice for legitimate lenders.
- Pressure Tactics: Victims experienced urgency and pressure to pay fees quickly.
- Lack of Documentation: There was little or no proper documentation or legally binding contracts provided to victims.
- No Verification: The scammers did not verify business history, licensing, or financials—steps that legitimate lenders always take.
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