Morris County man admits role in $3.7 million small business debt relief fraud scheme
MORRISTOWN, N.J. (Morris County) — A Morristown man admitted participating in a scheme that defrauded small businesses out of millions of dollars by falsely promising debt relief services, U.S. Attorney Robert Frazer announced.
Mark Csantaveri, 53, pleaded guilty May 4 in federal court in Camden to one count of conspiracy to commit wire fraud before U.S. District Judge Karen M. Williams.
According to federal prosecutors, Csantaveri and his co-conspirators operated businesses that claimed to provide debt relief services to struggling small businesses, including during the COVID-19 pandemic.
Authorities said victims were told to make regular payments to the businesses with the understanding that the money would be held while favorable settlements were negotiated with creditors.
Instead, prosecutors said the funds were diverted for personal use.
“This defendant didn’t just break the law—he exploited the financial vulnerability of small business owners who were trying to stay afloat and keep their doors open. By peddling sham debt-relief services and diverting millions for personal use, he turned trust into a weapon and hardship into profit. This case reflects our Office’s sustained commitment to pursuing complex financial fraud schemes and holding accountable those who target everyday business owners for personal gain,” said U.S. Attorney Robert Frazer.
According to court documents, the businesses involved in the scheme collected approximately $3.7 million from small business owners and transferred about $3 million to accounts controlled by Csantaveri and his co-conspirators.
Federal authorities said more than $1 million of the money was spent on gambling expenses.
“Small businesses are often the lifeblood of local economies. The cash-strapped victims in this investigation sought Csantaveri’s help, hoping to keep their doors open during the COVID pandemic. Instead, he and his co-conspirators stole millions from unsuspecting owners. Fraud schemes are insidious and can take on many different forms and dimensions. If you or anyone you know has been swindled by fraudsters, please contact FBI Newark at 800-CALL-FBI,” said FBI Special Agent in Charge Stefanie Roddy.
Csantaveri faces a maximum sentence of 20 years in prison and a fine of up to $250,000, or twice the gross gain or loss involved in the offense.
Sentencing is scheduled for Sept. 29, 2026.
