A former trucking company owner has been accused of participating in a conspiracy to overcharge Williams-Sonoma and others more than $4 million.
Jose Pena, 46, of Monroe Township, N.J., was charged on Wednesday, Feb. 5 in Newark federal court with one count of conspiracy to commit wire fraud.
According to court documents released by the U.S. attorney’s office for the District of New Jersey, Pena owned and operated a trucking business that subcontracted with a national transportation and logistics company to provide deliveries for Williams-Sonoma, a home goods company. Pena is accused of conspiring with employees of Williams-Sonoma and the logistics company from June 2018 through September 2020 to charge more than $3.6 million for fabricated deliveries and services.
“In exchange for his co-conspirators’ participation in the scheme, Pena gave them lavish kickbacks, including cash, checks, a sport utility vehicle and a Rolex watch,” the U.S. attorney’s office said in a news release.
In October 2020, Williams-Sonoma and the logistics company ceased operations with Pena’s company after an internal audit revealed fraud.
According to the criminal complaint, however, Pena hid his interest in another trucking company that contracted with Williams-Sonoma in 2021.
Pena is accused of continuing to work with co-conspirators to charge nearly $1 million to Williams-Sonoma for fake deliveries through June 2024.
Raymond DeLeon and Cintia Elaxcar, who were employed by the logistics company, pleaded guilty in January for conspiracy to commit wire fraud. The U.S. attorney’s office said that DeLeon and Elaxcar received kickbacks of $200,000 and $435,000, respectively.
Court documents said that Elaxcar submitted fraudulent billing requests to Williams-Sonoma for about 17,000 deliveries. In many instances, the company was charged for the same delivery twice or billed for extra services that weren’t provided.
“In other instances, Elaxcar and the employee conspirators would simply fabricate deliveries and submit billing requests for them,” the criminal complaint stated.
Pena, DeLeon and Elaxcar each face a maximum penalty of 20 years in prison. LL
Related: A bill in the House and Senate aims to prevent freight fraud.
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