NJ man accused of ripping off investors, losing over $1M

⬛ NJ man accused of ripping off investors

⬛ Losses of over $1M, feds say

⬛ Scheme was 'Ponzi-like' in cover-up

A disbarred attorney from Somerset County has admitted to a Ponzi-like scheme that lost more than $1 million.

Lawrence Coven, 61, of Hillsborough, pleaded guilty in U.S. District Court to one count of wire fraud.

Coven ran Sunrise Enterprises from around May 2014 through February 2022, which claimed to provide financial services to investors, according to court documents.

He was disbarred in 2002, for misappropriating mortgage settlement funds from four mortgage refinancings, the Star-Ledger previously reported.

Coven avoided criminal charges in those incidents, as an appeals court ruled that they had been filed too late, the report said.

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In reality, Coven lied about expecting large profits, through providing short-term loans to borrowers who could not get standard loans,U.S. Attorney Philip Sellinger said.

He falsely guaranteed investors returns of between 10% to 15% on investments, “risk-free.”

Coven then used investor funds for personal expenses, including utilities, entertainment, real estate, credit card bills and cash withdrawals, federal prosecutors said.

When investors began asking questions, Coven lied that their money was safe and used money from existing investors to pay other investors — in a Ponzi-like fashion, Sellinger said.

Sentencing has been set for Feb. 13, 2025, in Trenton.

The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 — or twice the gross gain to Coven or loss to his victims, whichever is greatest.

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