Middlesex County man sentenced in $7.7 million securities fraud case
Prosecutors said Shahid Javed used fictitious fuel companies, false promises of returns, and a Ponzi scheme to steal millions from investors.
A Middlesex County man was sentenced to seven years in state prison Thursday for orchestrating a $7.7 million securities fraud scheme that prosecutors said defrauded investors through fictitious fuel companies and false investment opportunities.
Shahid Javed, 41, of Old Bridge, pleaded guilty in April to two counts of securities fraud and one count of theft by deception. A Morris County judge also ordered him to pay $250,000 in restitution.
According to prosecutors, Javed defrauded investors between 2018 and 2023 by falsely claiming their money would be used to finance fuel-trading businesses and investments in a Texas oil refinery. Instead, authorities said he diverted much of the money for personal expenses, including a Bentley, a house, and a boat.
Prosecutors said the scheme began when Javed obtained about $640,000 in purported loans for a company called East Coast Energy Partners, claiming the money would be used to purchase and sell jet fuel. He later created two fake New Jersey companies, Prime Petroleum Group LLC and Petro Traders Group LLC, which prosecutors said were used to lure additional investors.
Authorities said Javed promised returns of up to 50% and falsely claimed the companies generated substantial profits through fuel transactions and refinery investments. He allegedly impersonated multiple fictitious employees to solicit investments. He operated a Ponzi scheme, using approximately $1 million from new investors to pay earlier investors in an effort to keep the fraud going, according to prosecutors.
Javed and a co-defendant were indicted in July 2024. The charges against the co-defendant remain pending.
Krystal Knapp is the founder, executive director, and publisher of The Jersey Vindicator and the founder of Planet Princeton. She has more than two decades of experience reporting in New Jersey, including 10 years at The Trenton Times, where she was the newsroom’s public records and computer-assisted reporting expert. Her work has been recognized by the New Jersey Press Association and the Center for Cooperative Media. You can reach her at Krystal AT jerseyvindicator.org.