2 LV Men Charged in Alleged Energy Fraud Scheme

By Jack Tobias

In a case investigated by the FBI, a Fogelsville man and a Schnecksville area man are facing federal charges in an alleged fraud scheme involving energy contracts, federal prosecutors announced Wednesday.

The local men are Samuel Puleo, 26, of Fogelsville, and Matthew Morgan, 39, of the Schnecksville area.

Also charged was Michael Mateja, 27, of Massachusetts.

As a result of the alleged scheme, the suspects earned commissions they were not entitled to and clients paid higher electricity prices that they had agreed to pay, the charges say.

According to the charges, Mateja and Puleo altered contracts without clients' knowledge. As a result, clients paid a higher per-kilowatt-hour price than the rates they agreed to pay, the charges say.

Mateja and Puleo owned and operated Coastal Energy LLC, a company that brokered energy contracts between businesses and energy suppliers. Morgan was a Coastal employee. The alleged scheme occurred between June 2011 and February of this year.

In September 2012, the charges say, Mateja and Puleo became aware that the FBI was investigating Coastal's suspected fraudulent conduct. "In an attempt to conceal these crimes," Mateja agreed to pay Morgan to delete documents from Coastal's computers, the charges say.

Mateja and Puleo are each charged with wire fraud. Morgan—as well as Mateja —is charged with obstruction of justice for allegedly attempting to delete documents on Coastal's computers.

If convicted, each man faces a maximum possible sentence of at least 20 years in prison, three years of supervised release, a $250,000 fine and a $100 special assessment, according to the U.S. Attorney's office in Philadelphia.

The case is being prosecuted by Assistant U.S. Attorney David L. Axelrod.