NEWARK – The son of a former manager at Picatinny Arsenal pleaded guilty today in federal court, admitting that he used his mother’s government-issued credit card to embezzle approximately $25,744 in government funds, U.S. Attorney Christopher J. Christie announced.

John T. Peterson, 18, pleaded guilty to a one-count Information which charged him with embezzling money and items of value of the United States, namely approximately $25,744 in personal items charged to a credit card issued to and paid for by the United States Army. Peterson entered his plea before U.S. District Judge Joel A. Pisano, who scheduled sentencing for Nov. 1.

scheduled sentencing for Nov. 1.

The maximum statutory penalty for the conviction is 10 years in prison, though under the advisory U.S. Sentencing Guidelines Judge Pisano has wide discretion in imposing sentence. Peterson remains free on a $50,000 unsecured bond pending sentencing.

Peterson admitted that he used his mother’s U.S. Army-issued credit card to purchase miscellaneous unauthorized items including, emergency equipment, digital cameras, and approximately $6,000 to $7,000 worth of gift cards for his personal use. Peterson also admitted that he did not have authority from the U.S. Army to use the credit card.

Peterson and his mother, Mary Ann Peterson, were arrested on May 9, 2006, and charged with conspiracy to embezzle approximately $50,231 in government funds. While employed at Picatinny, Mary Ann Peterson was authorized to use her government-issued credit card to purchase office-related supplies for use in the building in which she worked.

The investigation came to light in December 2005 after law enforcement officers in Jefferson Township arrested John Peterson in connection with outstanding warrants. As the officers were effecting his arrest, they observed full-length police emergency light bars secured to the front windshield and rear window of the vehicle he was driving. The officers also observed a light and siren control box and a police duty belt containing handcuffs and pepper spray inside the vehicle.

The investigation revealed that the police equipment was purchased with Mary Ann Peterson’s government-issued credit card and shipped to John Peterson at their home in Lake Hopatcong.

The case against Mary Ann Peterson remains open.

Approximately $6,250 worth of gift cards, receipts for various items purchased in the amount of $3,400, two laptop computers and a GPS navigational system were seized from the vehicle. In addition, law enforcement officers observed a U.S. Department of Defense vehicle decal affixed to the front windshield. The investigation revealed that the decal was registered to Mary Ann Peterson, in her official capacity as a U.S. government employee at Picatinny Arsenal, for another vehicle.

Christie credited Special Agents of the Defense Criminal Investigative Service, under the direction of Resident Agent in Charge, James Murawski; Special Agents of the FBI,

under the direction of Special Agent in Charge Leslie G. Wiser, Jr.; and Installation Management Agency, Office of Criminal Investigations at Picatinny Arsenal, under the direction of the Director of Emergency Services Tom Perry, for their assistance and cooperation in furthering the prosecution.

The government is represented by Assistant U.S. Attorney Lisa Rose of the U.S. Attorney’s Government Fraud Unit in Newark.

Defense Counsel: Marc E. Leibman, Esq., Fort Lee