Newark man sentenced to one year and a day in prison for money laundering

A 68-year-old Newark man was sentenced to one year and a day in prison for his part in a wire fraud scheme that transferred $6.1 million from the Newark financial services company his wife worked at to her bank account.

Matthew Czap was sentenced Wednesday by Chief U. S. District Court Judge Leonard P. Stark. Czap’s wife, Roberta, 66, pleaded guilty last month and is scheduled to be sentenced in September.

“Mr. Czap’s conduct helped to conceal the proceeds of fraud and allowed the crime to go undetected for years,” Acting U.S. Attorney for the District of Delaware David C. Weiss said in a statement. “While he didn’t personally steal the money, he enjoyed the benefits of it. Individuals contemplating similar conduct should understand that their crimes will have the most serious of consequences.”

From Jan. 11, 2011, to Aug. 30, 2016, Roberta Czap directed more than $6.1 million dollars in electronic funds transfers from her company’s operating account to her personal bank accounts, according to court documents.

Using the personal identification information of another employee, she created false payment requests, designed to appear legitimate, to the company’s vendors. She then authorized nearly 500 payments with company funds, using her own credentials. While Roberta Czap filed federal tax returns for 2013, 2014, and 2015, those returns did not, as was required by law, include her illegal income from the company’s funds, and materially understated her income.

According to federal prosecutors, Matthew Czap took some of that money and deposited it in amounts of less than $10,000.

Dating back to January 2013, he structured approximately $1.2 million of cash deposits, while aware that the currency represented the proceeds of his wife’s criminal conduct.

Some of the money was used for gambling, according to court documents.

For example, between Jan. 1, 2013, and July 14, 2016, the Czaps played more than $2.9 million on table games and slot machine play at one casino and suffered a combined loss of more than $1.4 million.

The two were indicted early this year.

Matthew Czap pleaded guilty on March 22 to one count of structuring financial transactions to avoid currency reporting requirements.

http://www.delawareonline.com/story/news/crime/2017/07/17/newark-delaware-man-sentenced-one-year-and-day-prison-money-laundering/484934001/