Trio given probation in financial scheme

On Feb. 2, Murad Kassin, 32, of Long Branch, Fred Harari, 44, of West Long Branch, and Michael Adjmi, 47, of Eatontown, were sentenced to a five-year period of probation in connection with the criminal misuse of their corporation, American Dream Home Furnishings Inc., to defraud CitiFinan-cial Retail Services of $500,000.

According to a press release from the Monmouth County Prosecutor's Office, the three defendants, the principal owners of American Dream Home Furnish-ings, each pleaded guilty on Oct. 17 to one count of third degree misconduct by a corporate official.

In addition, Harari, who handled the business' books, pleaded guilty that same day to a charge of third degree failing to file a state sales tax return for the first quarter of 2003.

The guilty pleas and the sentencings took place before state Superior Court Judge Patricia DelBueno Cleary, sitting in Freehold.

The investigation revealed that the defendants started their furniture business in Howell in January 2001 and also operated a second store in Ocean Town-ship. In March 2001, the defendants entered into an agreement with CitiFinancial Retail Services to provide in-house financing for customers who wished to purchase furniture on credit.

The agreement provided that Amer-ican Dream would be paid by CitiFinan-cial once the furniture had actually been delivered to the customer. Instead, the defendants applied for payment as soon as the orders were placed by the customers, misleading CitiFinancial into believing that the furniture had actually been delivered.

In time, according to the press release, CitiFinancial discovered what the defendants were doing and advised them this procedure was not acceptable and that they were not to apply for payment until the furniture was actually in the hands of the customers. The defendants, however, disregarded this directive and continued to receive payment for furniture that was never delivered to its customers, according to the prosecutor.

As a condition of receiving the probationary sentence, the defendants paid $300,000 ($100,000 each) restitution to CitiFinancial Retail Services prior to sentencing. The $200,000 restitution balance was directed to be paid within one year and there is joint and severed liability as to each defendant.

Cleary also ordered that each defendant be prohibited from obtaining a commercial line of credit, opening a business or incurring any new indebtedness without prior probation department approval, and imposed a further fine of $10,000 upon each defendant.

Prosecutor Luis A. Valentin said, "The $500,000 that must be paid by these defendants will make up, at least in part, for the financial injury that their criminal business practices caused to CitiFinancial. The period of probationary supervision, which prohibits these men from opening another business, will hopefully restore public confidence. These criminal sanctions and accompanying restitution payments are designed to not only make CitiFinancial whole, but also to assure the public that such thievery will not simply be excused as bad business practices."

Valentin commended detectives from the Monmouth County Prosecutor's Office Financial Crimes Unit, the Ocean Township, Howell and Holmdel police departments, as well as investigators from the New Jersey State Division of Taxation for their investigative efforts in this case.