Community Corner

Hasbrouck Heights Man Admits Running 17-Year Scrap Metal Scheme

Michael A. Valenti III, 43, admitted participating in the conspiracy that defrauded customers out of millions of dollars.

HASBROUCK HEIGHTS, NJ — The former vice president of a scrap metal recycling business admitted in federal court Thursday to participating in a 17-year conspiracy that defrauded customers out of millions of dollars.

Michael A. Valenti III, 43, of Hasbrouck Heights, pleaded guilty before U.S. District Judge Susan D. Wigenton to conspiracy to commit wire fraud.

Cinelli Iron & Metal Co. purchased scrap metal for resale and ran three scrap metal recycling facilities in New Jersey. The Secaucus-based business would deliver scrap metal containers to jobsites and pick them up once they were filled, said Acting U.S. Attorney William E. Fitzpatrick announced.

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Cineli paid customers based on the type and weight of the material.

From 1999 through March 2016, Valenti, Craig Cinelli and Joseph Cinelli Sr. David Barteck allegedly used fraudulent business practices to buy the scrap metal for less than that what Cineli should have paid for it, Fitzpatrick said.The company then resold the metal for a profit.

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The conspirators misrepresented the true weight and type of the scrap metal. They reportedly changed documents to indicate lower weights, removed metal from a haul before it was weighed and misrepresented the type of scrap metal in a container, Fitzpatrick said.

RELATED: Bergen Men Ran 17-Year Scrap Metal Scheme, Authorities Allege

Cinelli, 47, of Allendale, and his brother,Cinelli Sr., 61, of Montvale, were each indicted on five counts of wire fraud and one count of conspiracy to commit wire fraud, authorities previously announced.

Valenti faces a maximum penalty of up to 20 years in federal prison and a $250,000 fine, or twice the gross gain or loss from the offense.

Vanenti admitted that the loss caused by the company was more than $9.5 million, but less than $25 million. His sentencing is scheduled for Nov. 21.


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