NEWARK, N.J. (1010 WINS) – A New Jersey former bank employee admitted to committing bank fraud for over five years and to accepting bribes, the Department of Justice announced on Thursday, June 2.
Kurt Phelps, 53, of Flanders, New Jersey, pleaded guilty by videoconference to one count of conspiracy to commit bank fraud and one count of bank bribery. Three conspirators of Phelps’ had previously pleaded guilty in connection with the fraud.
Phelps’ carried out a plan to defraud his employer and abstained millions of dollars of credit from the bank for Starnet Business Solutions Inc., now defunct New Jersey-based printing company where Phelps’ conspirators worked.
They paid Phelps’ large cash bribes and in 2013 Starnet received a line of credit from the bank after putting in false financial information. By 2018, the credit was nearly $8 million, and Starnet has not repaid it, according to prosecutors.
Phelps coached Starnet on how to defraud the bank. He also made sure that the bank didn’t detect the fraud by helping Starnet avoid audits.
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