The Newark Housing Authority’s former director of information technology was sentenced Wednesday to two years in prison for using his job to embezzle nearly $600,000 by buying phones and tablets with the federally-funded agency’s money and selling the devices.
Venancio Diaz, 57, of Jersey City, who previously pleaded guilty to committing theft from an agency receiving federal funds, also must serve three years of supervised release and pay restitution to the housing authority, U.S. Attorney Philip R. Sellinger said in a statement.
The scheme lasted from December 2013 to August 2021 while Diaz bought more than 1,500 devices - largely phones and tablets - using his then-employer’s money, according to court documents.
Diaz activated the devices for a short period of time on NHA’s account then posed as the owners to sell the electronics through online marketplaces, filings in the case said. He made $594,425 from the scheme after moving the money into his personal bank accounts.
In addition to federal prison, he previously agreed to a $594,425 money judgment, giving up the ill-gotten gains and also agreed to forfeit 27 cell phones from the theft, according to officials.
Agents with the U.S. Department of Housing and Urban Development Office of the Inspector General and FBI’s Newark office handled the investigation with assistance from IRS Criminal Investigations.
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Noah Cohen may be reached at ncohen@njadvancemedia.com.
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