One set of Superstorm-related fraud allegations reaches resolution and another set begins, in separate cases handled by investigators under the aegis of New Jersey Attorney General Christopher S. Porrino.

Sandipkumar Patel (NJ Atty. General's Office)
Sandipkumar Patel (NJ Atty. General's Office)
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In Trenton, Sandipkumar Patel, 43, owner of the American Motel in Toms River, admitted collecting $81,567 under false pretenses from the Federal Emergency Management Agency (FEMA) to cover the costs of housing Sandy victims.

In Newark, GL Construction Limited Liability Company of Manahawkin and its owner, George LaRosa, are accused of collecting Superstorm relief funds amounting to $280,750 from homeowners for renovations and elevations and leaving the work either unfinished, or unstarted, or providing sub-standard workmanship.

Motel owner faces three years

Patel, of Edison, has a scheduled November 4 sentencing date. In exchange for his guilty plea to second-degree theft by deception, Patel is being recommended for a three-year prison term by prosecutors.

He admitted collecting payments on 11 claims of temporary lodgers, who either never stayed at his American Motel on Route 166 in Toms River, stayed for shorter durations than he claimed, or, in one case, shared a room he already claimed under FEMA's Transitional Shelter Assistance (TSA) program.

Calculated at $133.28 per room, per day, investigators surmised that more than $50,000 of the claims were filed under the identities of Patel family members who weren't displaced by Sandy at all.

Contractor accused of skimming RREM funds

Charges are accusations Defendants are presumed innocent unless, and until, found guilty in a court of law.

According to authorities, GL Construction is the subject of the third complaint filed by the New Jersey Department of Community Affairs (DCA) alleging fraud connected to its Reconstruction, Rehabilitation, Elevation and Mitigation (RREM) program. Six home owners are listed.

Charges include violations of the Consumer Fraud Act, Contractors' Registration Act, and regulations for home elevations, home improvements, and advertising

Filing in Ocean County Superior Court in Toms River, investigators contend that money changed hands for work that the company either didn't undertake, performed shoddily, or started without returning for weeks, months, or ever.

They also allege that GL Construction ignored customer calls, e-mails and texts seeking continuation dates for unfinished work, misled one customer to believe that a non-existent building inspection had occurred, and skipped payments to subcontractors, who then sought payments from home owners or threatened to place construction liens on the properties.

Investigators contend that, despite claims on its website of experience in waterfront construction and expertise in FEMA's home elevation requirements and local standards, GL Construction did not obtain state registration as a home elevation contractor

Prosecutors seek restitution for the consumers, repayment of RREM funds in question back to DCA, reimbursement of legal and court costs, cancellation of the company's certificate of formation, revocation of its home improvement and new home builder registrations, and a permanent injunction against advertising and performing home building, improvements or elevations in New Jersey.

GL Construction is represented by Westfield attorney Matthew H. Sontz. The state's case is headed by Deputy Attorney General Alina Wells, of the Consumer Fraud Prosecution Section, Division of Law.

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