N.J. business owner admits he sold U.S. military $1.9M in fraudulent parts, including for planes

A New Jersey business owner who has been living in the country illegally for nearly 20 years admitted Tuesday he defrauded the U.S. military out of nearly $1.9 million by selling it the wrong parts for critical equipment, including airplanes, federal authorities said.

Oben Cabalceta, 53, of the Atco section of Waterford, pleaded guilty to one count of wire fraud and one count of conspiracy to violate the Arms Export Control Act, the U.S. District Attorney’s office said in a statement. He faces up to 20 years in prison on the first count and five years on the second count when he is sentenced Aug. 2 in federal court in Camden.

Cabalceta’s co-conspirator and brother-in-law, Roger Sobrado, pleaded guilty in October to conspiracy to commit wire fraud, conspiracy to violate the Arms Export Control Act, and tax evasion. Sobrado awaits sentencing.

Cabalceta, the owner of two manufacturing companies in the West Berlin section of Berlin Township, obtained contracts with Department of Defense to provide specific parts for military equipment from authorized manufacturers. Instead, Cabalceta obtained the equipment from local manufacturers or produced the parts himself at a much lower cost, authorities said. He won the contracts on multiple occasions between 2004 and 2016 and was paid $1,890,939 for the fake parts.

Read more: https://www.nj.com/news/2019/04/nj-business-owner-admits-he-sold-us-military-19-million-in-fraudulent-parts-including-for-planes.html