Investment manager gets federal prison for embezzling $571,000

YOU READ IT HERE FIRST: The former managing director of the investment arm of what once was Pamrapo Savings Bank was sentenced to six months in federal prison for embezzling more than $571,000 in commissions and fees belonging to the Service Corporation through a mail fraud scheme.

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While convicting him on 33 mail fraud counts, jurors were unable to agree on money laundering charges against Brian M. Campbell of Bayonne.

Campbell, 43, faced a minimum of 20 years behind bars for each of the convictions.

U.S. District Judge Dickinson R. Debevoise said he'll also have to pay a $250,000 fine and restitution to his victims once he is released.

Campbell was managing director and an employee of the now-defunct Service Corporation, which did business as Pamrapo Financial Center in Bayonne and was an the investment subsidiary of Pamrapo Savings and Loan.

Without accusing any entities of wrongdoing, prosecutors said Campbell structured a deal with Prime Capital Services, Inc., a broker-dealer of securities transactions, enabling him to act as the company‘s registered representative.

In doing this, they said, Campbell was able to get a salary from Service Corporation, in addition to commissions he collected by telling officials at Prime and other companies in 2007 that “Pamrapo Savings Bank wanted to get out of the investment advisory business, and the bank wanted all commissions sent directly to Campbell,” U.S. Attorney Paul J. Fishman said.

Members of the respective companies testified during the trial that Campbell was never given that authority.

On July 25, 2007, Campbell had his father, the bank’s president, sign a letter that directed Prime to send a substantial amount of commissions and fees directly to the son. Officials testified that Campbell concealed the letter from the company’s Chief Financial Officer and the bank’s Board of Directors.

The deception even included directing his administrative assistant to falsify financial records related to the diverted checks, prosecutors said.

Fishman credited special agents of the IRS-Criminal Investigation, and special agents of the Federal Deposit Insurance Corporation‘s Office of Inspector General. Handling the case was Trial Attorney Keith Liddle of the U.S. Justice Department’s Asset Forfeiture and Money Laundering Section, along with Assistant U.S. Attorney Anthony Moscato of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.