AG: Schroeder Swindled $5 Million in 'Criminal Scheme'

State Assemblyman Robert Schroeder laundered money, passed bad checks and conspired to swindle more than $5 million in a criminal scheme, New Jersey officials allege in a complaint filed by the Attorney General's Office December 10.

Deputy Attorney General Derek A. Miller is seeking to seize more than $1,500 and a vehicle which Schroeder allegedly used in his scheme. Schroeder would obtain loans and, when payments were due, issue checks from at least 10 different businesses he owned or controlled, according to the complaint. The checks were returned due to insufficient funds and the loans remained unpaid.

"At no time did Schroeder have sufficient legitimate sources of income to repay these loans as promised to the lenders," officials wrote.

In the complaint officials outlined the crimes Schroeder has been accused of committing, including money laundering, passing of bad checks and conspiracy to commit those crimes. Schroeder allegedly made more than $5 million off the "criminal scheme."

The state has moved to take funds from four bank accounts in the names of Schroeder's businesses — All Points Croatia, Inc., RGS Bergen LLC and R.S. Consultants — as well as cash seized by state police during a search of All Points International in Hillsdale and a 2005 GMC Yukon registered to API Industries, which Schroeder allegedly used to drive a victim to the bank.

"The state's investigation further revealed that Schroeder utilized other assets held by him in corporate names in furtherance of the crimes alleged herein," officials wrote.

Under New Jersey law, property can be seized if it was "utilized in furtherance of an unlawful activity." Schroeder was to a pair of investors.

Since then, numerous other lawsuits from banks and individuals have been filed against Schroeder alleging he failed to repay loans.

In one complaint, Washington Township Council Vice President Joseph D'Urso and his wife, Linda, allege that Schroeder . The D'Ursos wrote that the loans were "never repaid and, in certain cases, were repaid with checks that knowingly would not be honored."

The complaint further states that Schroeder was asking the D'Ursos for loans "on an almost weekly basis" for almost three years. Schroeder allegedly gave the D'Ursos bad checks at least three times, according to the complaint.

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