TOMS RIVER MAN CHARGED IN $35M FRAUD SCHEME TO SELL PROHIBITED SECURITY CAMERAS EQUIPMENT TO LAW ENFORCEMENT

NJ authorities announced that the chief executive officer of a Lyndhurst company was charged with falsely representing law enforcement customers that the security cameras and equipment he sold were compliant with the National Defense Authorization Act.U.S. Attorney Philip R. Sellinger said that Tamer Zakhary, 49, of Toms River, is charged by complaint with three counts of wire fraud and one count of making false statements.

Officials stated Zakhary appeared on January 4th, before U.S. Magistrate Judge Edward S. Kiel in Newark federal court and was released on a $100,000 unsecured bond.

According to documents filed in this case and statements made in court:

In August 2018, in order to address increased concerns that foreign intelligence actors were looking to infiltrate United States systems and exploit technologies, Congress signed into law Section 889 of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year 2019, officials said.

Authorities say Zakhary fraudulently misrepresented to these customers that his company’s products were compliant with Section 889. Officials say the customers purchased at least $35 million in surveillance cameras and equipment from Zakhary’s company, over $15 million of which consisted of federal funds and grants.

According to officials, Section 889 prohibits the federal government from procuring or obtaining video surveillance and telecommunications equipment from specifically identified Chinese companies and from entering into contracts with any entity that uses such video surveillance equipment from those specifically identified Chinese companies.

From August 2019 through December 2022, officials say, Zakhary, the owner and chief executive officer of a company that sells surveillance and security cameras and equipment, sold millions of dollars worth of surveillance cameras and equipment to public safety and law enforcement agencies in New Jersey, including prosecutors’ offices, sheriffs’ offices, police departments, and townships.

The complaint also states, that Zakhary helped these agencies with applying for federal grants, including CARES Act money to be reimbursed for the purchases. In total, the office alleged $15 million of the $35 million Zakhary obtained through sales came from federal funds and grants.

The complaint against Zakhary doesn’t list the exact names of the agencies that bought equipment from his company, but it does state that the equipment came from one of the three companies listed as prohibited in the legislation: Hytera Communications Corporation, Hangzhou Kikvision Digital Technology Company and Dahuya Technology Company. Prosecutors added in the complaint that one of the companies was partially state-owned and was based in the Binjiang District of Hangzhou, China.