NJ man gets prison for massive scam of public fund for brain injury victims

◼️NJ man gets prison for multi-million fraud
◼️ NJ duo pleaded guilty to roles last year
◼️ Trio scammed public fund for brain injury victims

A 58-year-old Somerset County man has been sentenced to more than seven years in federal prison for his role in scamming millions from the New Jersey Traumatic Brain Injury Fund, U.S. Attorney Philip Sellinger announced.

C.R. Kraus, of Manville, was convicted in April of conspiracy to commit healthcare fraud, five acts of healthcare fraud and four counts of tax evasion.

Early last year, his conspirators, Harry Pizutelli and Maritza Flores, pleaded guilty to conspiracy to commit healthcare fraud and tax evasion for their roles in the scam.

Pizutelli, of Edison, was manager of the publicly funded health care benefit program over a 10-year span.

He led $4.5 million in phony payments to maintain and pursue romantic and sexual relationships with Flores and other women, Sellinger previously said.

RELATED: Duo admit to scamming $4.5M from NJ Traumatic Brain Injury Fund 

Both were still awaiting sentencing as of Thursday.

Pizutelli, Flores and Kraus, then a Toms River resident, were all arrested by special agents of the FBI and IRS in January 2021.

Trio plotted fake services, payments

TBI Fund is a publicly funded program run by the state Division of Disability Services through the Department of Human Services.

From 2009 through 2019, Pizutelli, Kraus, and Flores plotted to scam the TBI Fund, by misappropriating more than $4 million in fake vendor payments for services never actually provided.

In addition to prison, Kraus was sentenced to three years of supervised release and ordered restitution of $4.19 million.

“This defendant stole millions of dollars earmarked for victims of traumatic brain injuries,” Sellinger said in a written release.

He continued “Stealing resources intended to help New Jersey residents who are already coping with serious challenges is especially egregious. This office will never relent in holding such criminals accountable.”

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