WilmerHale Secures Landmark Victory for New Jersey Business Executive Michael Verzaleno, Jr. in High-Stakes Fraud Case

WilmerHale Secures Landmark Victory for New Jersey Business Executive Michael Verzaleno, Jr. in High-Stakes Fraud Case

Client News

On March 25, 2025, WilmerHale and co-counsel Chiesa Shahinian & Giantomasi achieved a significant victory for the President of Kearny Steel Container (KSC) Corporation Michael Verzaleno, Jr. in a federal fraud case, securing him a sentence of time served despite the prosecutor's request for 27 months’ imprisonment.

Verzaleno was originally charged in 2023 in a 19-count indictment as part of a larger federal investigation into a kickback scheme allegedly being carried out by industrial drum vendors in New Jersey and New York. As part of a plea deal, he pleaded guilty to one count of conspiracy to commit wire fraud.

Prior to sentencing, 71 letters were submitted to the court on Verzaleno’s behalf, including one from former New Jersey Governor Jim McGreevey. McGreevy, who now runs a reentry program for incarcerated people, also spoke at the sentencing hearing about how Verzaleno has hired former inmates at KSC and helped them to turn their lives around. KSC employees spoke at the sentencing hearing and submitted letters describing how Verzaleno had served as a surrogate father and big brother to dozens of his employees.

At Verzaleno’s sentencing hearing in the US District Court for the District of Maryland, prosecutors asked for the high end of the offense’s sentencing guidelines, which include 21 to 27 months of incarceration.

Instead, Judge Paula Xinis said that while Verzaleno’s crime was wrong, she needed to view it in the context of his overall life. She said he’d lived an extraordinary life in the service of others and society would be better served if he remained at the helm of his Newark, N.J.-based company leading and helping his employees and his community. She also noted that it was a corrupt insider, not Verzaleno, who had initiated the kickback scheme.

Xinis sentenced Verzaleno to time served (1 day) and five years of supervised release.

“This incredible result exceeded our client’s expectations,” said WilmerHale Partner George Varghese. “We are gratified by the court’s appreciation of all Michael does for his employees and his community.”

The WilmerHale team was led by Varghese and Counsel Benjamin Conery and included Senior Associates Tyler Carroll, Justin Metz, Christina Luo and former Senior Associate Hyun-Soo Lee, and paralegal April Jones.

Notice

Unless you are an existing client, before communicating with WilmerHale by e-mail (or otherwise), please read the Disclaimer referenced by this link.(The Disclaimer is also accessible from the opening of this website). As noted therein, until you have received from us a written statement that we represent you in a particular manner (an "engagement letter") you should not send to us any confidential information about any such matter. After we have undertaken representation of you concerning a matter, you will be our client, and we may thereafter exchange confidential information freely.

Thank you for your interest in WilmerHale.