Title: Holtec to Pay $5 Million Penalty and Accept Independent Monitoring to Avoid Criminal Prosecution

In a significant development, Holtec International, a Camden-based company specializing in manufacturing nuclear reactor parts, has agreed to pay a hefty $5 million penalty to avoid criminal prosecution. The penalty stems from a 2018 application they made under the New Jersey Economic Development Authority's Angel Investor Tax Credit program, wherein they attempted to double their $500,000 tax credit by submitting false investment documents.

Attorney General Matt Platkin announced the settlement, which also includes a provision requiring Holtec to hire an independent monitor selected by the state to review any future government program applications over the next three years. The monitor is tasked with ensuring compliance and preventing any further fraudulent activities.

The investigation revealed that in July 2018, Holtec had invested $12 million in Eos, a manufacturer of battery systems for energy storage, in exchange for six million shares in the company. Later, Holtec became aware of the Angel Investor Tax Credits available for emerging technology companies and sought to exploit this opportunity.

"These agreements reinforce our commitment to protecting New Jersey's taxpayers and ensuring fairness and integrity in our economic system by preventing companies from defrauding the State's tax incentive programs," said Attorney General Platkin. He added, "Today, we are sending a clear message: no matter how big and powerful you are, if you lie to the State for financial gain, we will hold you accountable - period."

While the settlement puts an end to the criminal investigation, it allows the state to continue investigating or prosecuting current or former Holtec officers, directors, employees, and potentially others connected to the company in matters unrelated to the settlement. Holtec has also agreed to forego any future claims to tax credits stemming from their November 2018 submission to the EDA.

Singh Real Estate Enterprises (SRE), operated by Holtec's founder Krishna P. Singh, has also entered into a non-prosecution agreement that mandates an external monitor. If either Holtec or SRE engage in or attempt criminal conduct violating the terms of the settlement, the agreement can be voided, allowing the state to pursue prosecution.

During the investigation, it was revealed that Holtec failed to inform the EDA that their entire $12 million investment in Eos had been made prior to their application, allowing them to receive an additional $500,000 in tax credits. Documents were allegedly created to falsely show that both Holtec and SRE had invested $6 million each in Eos in July 2018, despite SRE not having contemplated such an investment at the time.

The settlement indicates that Holtec requested the EDA to reissue the tax credit certificates in the names of both companies after their issuance, but the EDA refused, citing an ongoing investigation into Holtec's applications for various tax credits.

It is worth noting that Holtec had previously faced scrutiny in a 2014 application for $260 million in tax incentives from the New Jersey Economic Development Authority, but the state appellate court ruled last year that no fraud had been committed.

Holtec has invested significantly in the area, constructing a 50-acre technology campus in Camden. However, this recent settlement showcases the state's commitment to holding companies accountable for fraudulent practices and maintaining the integrity of its tax incentive programs.