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Former Executive of Fabric Company Stole Nearly $1 Million from Employer

A former vice president of a Secaucus-based fabric company pleaded guilty today to stealing nearly a $1 million in goods from his employer and selling it for his own profit, U.S. Attorney Paul J. Fishman announced.

Javan Smith, 72, of Delray Beach, Florida, plad guilty to an information charging him with one count of interstate transportation of stolen property.

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

From 1992 to 2014, Smith was an employed as vice president of distribution for a fabric company and worked at the company’s Secaucus warehouse. Starting in 2010, Smith engineered a scheme to steal merchandise and sell it “off the books” to several of his employer’s customers for less than what they would pay if they purchased the items legitimately.

Smith made side arrangements in which a customer would place orders for a certain amount of merchandise, receive far more than the amount on the purchase orders, and then pay Smith for his role in getting the stolen goods. In other cases, the customer would place an order for merchandise, have the merchandise delivered, and then – with Smith’s help – would cancel the order and receive a refund. The customer kept the merchandise and paid a portion of the refund to Smith. Overall, Smith’s scheme caused approximately $945,000 in losses to his employer.

The conspiracy charge to which Smith pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine.