Prosecutor: Former Low-Income Housing CFO Gets 7 Years for $2M Theft

The former chief financial officer of a low-income residential high-rise in Long Branch who stole nearly $2 million from his ex-employer has been sentenced to seven years in state prison, Monmouth County Prosecutor Raymond S. Santiago announced on Tuesday.

John O’Donnell, 58, of Scotch Plains (Union County), was sentenced Friday by Monmouth County Superior Court Judge Jill G. O’Malley.

O’Donnell had pleaded guilty to first-degree financial facilitation of criminal activity. He will be required to serve a minimum of half his sentence before becoming eligible for parole, and also required to pay $1.7 million in restitution.

The case background …

An investigation into O’Donnell’s activities by the MCPO Financial Crimes and Public Corruption Bureau was initiated in June of 2023, after the company that owns Washington Manor, which manages 100 housing units for seniors and disabled individuals on the 300 block of Ocean Boulevard, took note of an unauthorized $14,000 deduction from the property’s account, payable to O’Donnell’s life-insurance company to cover a yearly premium.

The investigation determined that from February 2009 to May 2023, O’Donnell issued approximately 400 unauthorized checks from company accounts to a construction firm he owned, totaling approximately $1.9 million, many containing the forged signature of a Washington Manor employee. He used the stolen funds for personal expenses such as mortgage payments. From December 2020 to May 2023, O’Donnell also used a Washington Manor credit card for unauthorized personal purchases, such as home renovations, pool services, and HVAC repair, totaling more than $30,000.

— Edited press release from the Monmouth County Prosecutor’s Office