Former supervisor for the NJ Transit, Richard E. Schade (63), was sentenced to five years in New Jersey State Prison by Judge Arthur Batista. His sentence was announced by Essex County Prosecutor Theodore N. Stephens II on August 21, 2020.
Story by Angela
Richard Schade, from Lumberton, New Jersey, was the architect behind the scheme to steal millions of dollars from the transit agency. He stole up to $2.1 million by authorizing payments to four fraudulent companies he set up. These transactions were classified as payments for services including landscaping and maintenance for NJ Transit properties. In addition to Schade, four other individuals were charged for their involvement in the scheme.
Assistant Prosecutor Caroline Oliveria stated that Schade was trusted by the transit agency to approve NJ Transit expenses of up to $5,000.00 at a time. In this role, he took advantage of that authority by committing fraud, dispersing the money to the fraudulent companies as well as for himself and the other four individuals involved.
An internal audit revealed the unverifiable payments back in October 2015 exposing the scheme. The case was referred
to the NJ Transit Fraud Investigation Unit, which was then forwarded to the Essex County Prosecutor’s Office. It was not until September 6, 2019, however, that Schade pleaded guilty to one count of second-degree conspiracy to commit theft by deceit.
On top of serving five years in state prison, Schade must pay $200,000.00 in restitution to NJ Transit. He is permanently prohibited from holding public employment within the state of New Jersey.
