Former IRS agent accused of stealing $12M, shredding evidence as NJ scheme unravels

💰Ex-IRS agent in NJ accused of stealing $12M from employer over 8 years

💰Investigators say large sums went to gambling, including $21K bets

💰Surveillance allegedly shows him shredding evidence after being caught

A Bergen County man who previously worked for the Internal Revenue Service is accused of embezzling more than $12 million while in charge of finances for a fuel company based in New Jersey.

Robert M. McCloughy was charged in Newark federal court with wire fraud and two counts of money laundering, or “engaging in monetary transactions involving criminally derived property.”

Former IRS agent accused of massive NJ fraud scheme

The 43-year-old Carlstadt resident was a revenue agent with the IRS before being hired in 2009 by a New Jersey-based fuel company, U.S. Attorney Robert Frazer said.

While not disclosed by Frazer, the company was Prospect Transportation, according to online records.

McCloughy served interchangeably as the Chief Financial Officer and Controller of the four-generation family business, earning a salary of more than $180,000 a year for the last several years during his stint.

How investigators say $12M was stolen over years

Between 2017 and 2025, McCloughy stole about $12 million from work, creating fake, unauthorized “expense” reimbursements and secretly transferring hundreds of thousands of dollars from company accounts to his personal bank accounts.

“This Office is committed to rooting out sophisticated financial fraud and holding accountable those who illegally exploit their positions to enrich themselves at the expense of others.”

He spent a large chunk of the stolen money on massive gambling debts, according to federal investigators, including single transactions of $21,200 and $15,000 to Sportsbook on separate days in 2024.

Dramatic moment as alleged scheme unraveled

On March 28, 2025, McCloughy's work account access was cut off, as his scheme had been discovered, investigators said.

McCloughy then drove to the company’s headquarters in New Jersey and was caught on surveillance cameras destroying evidence.

He is seen on video bringing stacks of files from his own office to a shared room with a shredder, which he then leaves with a full trash bag.

If convicted, McCloughy faces decades in federal prison and a very extensive fine.

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