$1M Scam at an Essex County Graduate School

Three staff members at an Essex County school pleaded guilty to running a $1.3 million embezzlement scheme, according to federal authorities.

Teresina DeAlmeida of Warren and Rose Martins of East Hanover admitted to wire fraud conspiracy on Friday, July 26, and Silvia Cardoso of Warren confessed to the same charge a few days earlier.

Federal prosecutors did not mention the location of the graduate school, but Seton Hall University officials verified that the scam occurred at the university’s law school. According to an official spokesperson, the university organized an “intensive review utilizing a third-party auditor,” which then prompted authorities to develop and execute new financial protocols for additional safety.

Prosecutors released an official statement about the scheme, noting that it occurred “between 2009 and July 2022.” The three women were also employed by the university in different roles, with DeAlmeida serving as an assistant dean in charge of financial functions and Martins as her assistant. Cardoso worked as a support staff member.

The women utilized various ways to conduct their scam, including:

False Invoices: In 2009, DeAlmeida prompted a graduate school vendor to compensate Martins and Cardoso, although they did not work for the vendor in any capacity. DeAlmeida and Martins had the vendor write up false invoices to Seton Hall’s law school for around four years to pay back the vendor for the money initially given to Martins and Cardoso.

Gift Cards: DeAlmeida and Martins instructed graduate school vendors to purchase hundreds of thousands of gift cards and prepaid debit cards that the two women used for their own gain. To disguise the purchases, they ordered the vendors to write up false invoices to the school, claiming the gift cards and prepaid debit cards were for school necessities. The women used DeAlmeida’s school-issued credit card to also buy gift cards and prepaid debit cards from the bookstore at Seton Hall. From 2010 to 2022, these purchases occurred without fail, with DeAlmeida approving them and Martins forging signatures of employees for approvals.

Shell Company: Martins organized a shell company in 2015 named CMS Content Specialist LLC, through which she submitted false invoices for more than $208,000 with DeAlmeida’s approval. The company did not provide any services to the law school.

Credit Cards: The women used DeAlmeida’s school-issued credit card for personal reasons. Spending $70,000 with the card, DeAlmeida and Martins purchased many items, including shoes, smart watches, and bed linens. They then made changes to receipts before handing them to the school.

DeAlmeida, Martins, and Cardoso can face up to 20 years in prison and a fine greater than or equal to $250,000 or an amount twice the gain or loss of their crime. Cardoso’s sentencing will occur on November 26, DeAlmeida’s on December 2, and Martins’ on December 3.

U.S. Attorney Phillip Selligner remarked that the women “violated their obligation to the students and exploited . . . their role at this institution of higher learning to line their own pockets.”