Allstate Sales Group CEO Charged in $5M Fraud, Bribery, and Witness Tampering Scheme

Federal prosecutors have indicted Anthony Tepedino, the CEO and owner of New Jersey-based telecom construction firm Allstate Sales Group (ASG), accusing him of orchestrating a sophisticated scheme that stole more than $5 million from his own company, bribed insiders at major clients, defrauded a bank, and attempted to tamper with witnesses when investigators closed in.

The 61-year-old executive now faces charges including wire fraud, honest-services fraud, bank fraud, aggravated identity theft, and witness tampering—each carrying potential decades in prison if convicted, according to court documents unsealed this week.

Background and Context

The alleged scheme unfolded between 2018 and 2024, transforming what appeared to be a legitimate telecommunications construction company into what federal prosecutors described as a "personal cash machine" for its CEO. The indictment reveals how Tepedino and an unnamed co-conspirator allegedly funneled fraudulent payments through shell companies using fabricated invoices, then used stolen funds to pay more than $1 million in bribes to a senior manager at ASG's largest client.

This corruption scheme enabled ASG to secure millions in contracts through illegal means, while simultaneously undermining the competitive integrity of New Jersey's telecommunications infrastructure sector. The case highlights ongoing vulnerabilities in procurement and oversight systems that allow executives to manipulate corporate structures for personal gain.

Key Figures and Entities

At the center of the indictment is Anthony Tepedino, who founded and served as CEO of Allstate Sales Group, a major player in New Jersey's telecom construction industry. According to federal prosecutors, Tepedino abused his executive position to systematically defraud both his own company and its major clients.

The indictment also references a senior manager at ASG's largest client who allegedly received over $1 million in bribes in exchange for steering lucrative contracts to the company. Court documents suggest this arrangement represented a classic quid pro quo scheme that violated both federal and state anti-corruption laws.

The company itself faces significant legal challenges beyond the criminal case. According to reporting by Inside Towers, ASG was sued on September 8 in U.S. District Court in Trenton by former vice president of electrical sales Joseph Horling, representing employees who were laid off without the advance notice required by law. Additionally, the Asbury Park Press reports that ASG faces two other vendor lawsuits totaling approximately $300 million in unpaid debts.

Legal and Financial Mechanisms

The indictment outlines a complex financial scheme in which Tepedino allegedly created shell companies to receive fraudulent payments through fake invoices. These payments, totaling more than $5 million, were then partially used to bribe the client insider who helped secure additional contracts for ASG.

Prosecutors also allege that Tepedino lied to a bank while seeking $18 million in credit, providing false information about his company's financial condition. This bank fraud charge carries particularly severe penalties under federal law.

When investigators began closing in, Tepedino allegedly attempted to obstruct justice by urging co-conspirators to adopt false stories to conceal their misconduct. The witness tampering charges represent some of the most serious allegations in the case, reflecting federal prosecutors' focus on maintaining the integrity of their investigations.

The civil lawsuit filed by former employees highlights violations of New Jersey's updated WARN Act, which requires 90 days' notice and severance pay for layoffs at companies with more than 100 workers. While the federal WARN Act requires only 60 days' notice with exceptions for unforeseen circumstances, New Jersey law provides no such exceptions, creating stronger protections for workers in the state.

International Implications and Policy Response

While the case centers on a New Jersey-based company, it reflects broader challenges in combating corporate fraud and corruption in the telecommunications and construction sectors globally. The sophisticated use of shell companies and cross-border payment systems to conceal illegal activities demonstrates how executives can exploit gaps in international financial oversight frameworks.

The case also illustrates the critical role of whistleblower protections and employee rights in exposing corporate misconduct. The lawsuit filed on behalf of laid-off workers under New Jersey's WARN Act provides an additional avenue for holding executives accountable beyond criminal proceedings.

Federal authorities have emphasized their commitment to prosecuting such cases aggressively. "As alleged, Anthony Tepedino turned a major construction company into his personal cash machine, stealing from companies that serve New Yorkers, bribing insiders, and lying to banks to keep the scheme alive," said U.S. Attorney Jay Clayton. "Fraud and corruption hurt real people in this city, and we will hold accountable any executive who abuses the trust placed in them."

Christopher G. Raia, FBI Assistant Director in Charge, echoed these sentiments: "Anthony Tepedino allegedly stole millions of dollars from his own company by fabricating fake businesses, invoices, and even a story to conceal his misconduct. Rather than serve the best interest of his company, Tepedino allegedly abused his rank as CEO and founder to mislead trusted customers and steer their money into his private accounts."

Sources

This report draws on the federal indictment filed in the case, public statements from U.S. Attorney Jay Clayton and FBI Assistant Director Christopher G. Raia, court filings in U.S. District Court in Trenton, reporting by Inside Towers and the Asbury Park Press, and New Jersey's WARN Act provisions governing employee layoff notifications.