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Newark, New Jersey - Tamer Zakhary, 49, of Toms River, the chief executive officer of a Lyndhurst company is facing charges for engaging in a $35 million fraud involving the sale of prohibited security cameras and equipment to law enforcement agencies through the misrepresentation of product compliance with a national defense law.

Key Points

• Zakhary's firm provided a range of equipment such as surveillance cameras, ALPR cameras, thermal cameras, dome cameras, camera-mounted trailers, and related software for video and image recording and usage to various New Jersey law enforcement agencies, including prosecutors' offices, sheriffs' offices, police departments, and townships.
• According to the complaint, from August 2019 through December 2022, Zakhary, as the CEO of his company, sold surveillance cameras and equipment, totaling over $35 million, with over $15 million coming from federal funds and grants.
• Victim Agency-1, a New Jersey county sheriff’s office, and Victim Agency-2, a New Jersey county prosecutor’s office, have both been customers since 2019, purchasing traffic cameras, portable camera trailers, and ALPR cameras for law enforcement and public safety purposes.
• Zakhary falsely assured customers that the products were compliant with Section 889 of the John S. McCain National Defense Authorization Act (NDAA) for FY 2019. Section 889 prohibits federal agencies from purchasing video surveillance and telecommunications equipment from certain Chinese companies.
• The equipment Zakhary sold was actually sourced from one of these prohibited Chinese companies.
• Zakhary is charged with three counts of wire fraud and one count of making false statements. He appeared in Newark federal court and was released on a $100,000 unsecured bond.
• Each count of wire fraud carries a maximum penalty of 20 years in prison, while the false statements charge has a maximum penalty of five years. Additionally, each count could result in a fine of $250,000, or twice the gain or loss from the offense, whichever is greater.