N.J man found guilty of stealing $3M from fund meant to help brain injury victims


A New Jersey man has been convicted in a scheme to steal more than $3 million from a publicly funded program meant to help victims of traumatic brain injury, federal prosecutors said Friday.

C.R. Kraus, of Manville, about 50 miles southwest of Manhattan, was convicted of conspiracy to commit healthcare fraud, five counts of healthcare fraud, and four counts of tax evasion, Philip R. Sellinger, the U.S. attorney for the District of New Jersey, said in a news release.

The 58-year-old was found guilty of all 10 charges following a trial in Trenton federal court.

“This defendant was convicted of multiple crimes for his role in a conspiracy that resulted in the theft of millions of dollars earmarked for victims of traumatic brain injuries,” Sellinger said. “Stealing resources intended to help New Jersey residents who are already coping with serious challenges is especially egregious.”

Kraus and two co-conspirators were arrested in early 2021 for their alleged participation in a long-running scheme to defraud the New Jersey Traumatic Brain Injury Fund of more than $4.5 million.

The TBI Fund, which is run by the New Jersey Division of Disability Services, is designed to provide services to victims of traumatic brain injuries when they can’t afford it, or when insurance is not available to them.

Prosecutors said Kraus and his conspirators, Harry Pizutelli and Maritza Flores, conspired to defraud the TBI Fund by misappropriating more than millions of dollars in payments for services that were never provided.

Pizutelli orchestrated those fraudulent payments “to maintain and further romantic and/or sexual relationships with Flores.” That included more than $3.245 million in fraudulent distributions to Kraus.

Prosecutors also alleged Flores and Kraus lied on their federal income tax returns “to obscure their fraudulent conduct.”

Pizutelli and Flores pleaded guilty to conspiracy to commit healthcare fraud and tax evasion in January 2023. They are scheduled to be sentenced early next month.

Kraus can be sentenced to up to 10 years in prison and be ordered to pay $250,000 for each of the 10 charges he faces. His sentencing hearing is scheduled for Oct. 8.

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