The New Jersey Attorney General‘s Office announced July 30 the indictment of two Middlesex County men for allegedly defrauding investors out of approximately $6.7 million.

Prosecutors allege Shahid Javed, 39, of Old Bridge, and Wilfredo Topacio, 64, of Woodbridge, used sham companies and false identities to deceive investors as part of a scheme that began in March 2018 and continued through about April 2023.

During that time, the pair deceived investors into thinking they would receive large, guaranteed returns from investments in fuel products, according to authorities.

“The alleged scheme included defrauding those investors into purchasing $1.1 million in investment contracts with Prime Petroleum LLC and $5.6 million in investment contracts with Petro Traders Group LLC, two purportedly legitimate businesses generating substantial profits and guaranteed returns from fuel-product investments,” the AG’s Office wrote in a press release announcing the indictment.

“The defendants, however, allegedly operated these entities as sham companies and diverted investor funds for their own benefit, including, among other things, purchasing expensive vehicles, making payments to friends and family, paying prior business debts, and paying for other personal expenses,” the statement continued.

“Investment-fraud schemes prey on vulnerable victims with empty promises of huge profits and guaranteed returns,” said Attorney General Matthew Platkin. “These defendants allegedly worked together to orchestrate a multi-faceted investment-fraud scheme that took advantage of New Jersey investors for several years. The time has come for them to be held accountable.”

The charges include:

• One count of first-degree conspiracy
• One count of second-degree theft by deception
• Two counts of second-degree securities fraud
• Three counts of misconduct by a corporate official
• Three counts of second-degree impersonation
• Two counts of first-degree money laundering in connection with the alleged fraud scheme

On the last charge, prosecutors allege that the duo laundered the funds through bank accounts and corporate entities they controlled to pay investors more than $500,000 in purported returns – with the investors’ own money – to keep the illusion that the investments were yielding returns.

“These defendants allegedly took advantage of investors by duping them into investing millions of dollars into sham companies and then diverted invested money to line their own pockets and to pay other personal expenses,” said Pablo Quiñones, legal chief, Office of Securities Fraud and Financial Crimes Prosecutions. “Cases like this one are a top priority for the Division of Criminal Justice – and we will continue to relentlessly ensure bad actors are brought to justice.”

Attorneys for the defendants were not immediately known.

See also:

• Former Seton Hall Law employees admit stealing $1.3M
• Former McElroy Deutsch CFO gets 5 years for embezzlement
• Menendez set to step down from Senate seat in August