District of New Jersey
Press releases recorded for this federal judicial district.
Elizabeth Man Sentenced to 60 Months in Prison for Illegally Possessing A GunRead the Press Release
NEWARK, N.J. – An Elizabeth man was sentenced today to 60 months in prison for illegally possessing a firearm, U.S. Attorney John Giordano announced.
Stanley Claiborne, 28, of Elizabeth, New Jersey, previously pleaded guilty before U.S. District Judge Evelyn Padin to an Indictment charging him with possession of a firearm by a convicted felon. Judge Padin imposed the sentence in Newark federal court.
According to documents filed in this case and statements made in court:
On the morning of July 14, 2022, members of the United States Marshals Service apprehended Claiborne near Market and Broad Streets in downtown Newark based on two unrelated arrest warrants. Claiborne was in possession of a loaded gun at the time of his arrest. Claiborne was previously convicted of unlawful possession of a handgun in New Jersey Superior Court, among other felony convictions, and is prohibited from possessing firearms and ammunition under federal law.
In addition to the prison term, Judge Padin sentenced Claiborne to 3 years of supervised release.
“This case is an excellent example of state and federal authorities partnering together to aggressively combat illegal gun possession in New Jersey"
U.S. Attorney John Giordano
“The arrest of Stanley Claiborne and prosecution for possessing an illegal firearm is a testament to the U.S. Marshals Service and U.S. Attorney’s Office commitment to justice and safety for our communities throughout the state,” said Juan Mattos Jr., U.S. Marshal for the District of New Jersey.
U.S. Attorney John Giordano credited special agents of the Federal Bureau of Investigation (FBI) Newark Field Office, under the direction of Acting Special Agent in Charge Terence G. Reilly, the United States Marshals Service (USMS), under the direction of Marshal Juan Mattos Jr., and the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda with the investigation leading to today’s sentencing.
The investigation was also conducted as part of the USMS’s New York/New Jersey Regional Fugitive Task Force (NY/NJ RFTF). The NY/NJ RFTF was formed in 2002 and has made an extraordinary impact on the investigation and apprehension of the region’s most dangerous and violent fugitives.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The government is represented by Assistant U.S. Attorneys Clara Kim and Thomas S. Kearney of the Special Prosecutions Division in Newark.
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Defense counsel: Lorraine Gauli-Rufo, Verona, New Jersey
Colombian National Sentenced to 12 Years in Prison for Conspiring to Transport Hundreds of Kilograms of Cocaine into the United StatesRead the Press Release
NEWARK, N.J. – A Colombian citizen was sentenced to 12 years in prison for conspiring to import hundreds of kilograms of cocaine into the United States from Colombia, Venezuela, and the Dominican Republic, U.S. Attorney John Giordano announced.
Edgar Ruiz-Gomez, a/k/a “Gono,” 57, previously pleaded guilty before U.S. District Judge Esther Salas to Count One of an Indictment charging him with conspiracy to import five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
From 2016 through January 2020, Ruiz-Gomez and others conspired to import hundreds of kilograms of cocaine. Ruiz-Gomez acknowledged holding a managerial role in this conspiracy, which involved more than five individuals.
In addition to the prison term, Judge Salas sentenced Ruiz-Gomez to five years of supervised release.
“My office is fully committed to employing its considerable resources to prosecuting dangerous drug organizations,” said U.S. Attorney John Giordano.
U.S. Attorney Giordano credited special agents and task force officers with the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Cheryl Ortiz in Newark, New Jersey, as well as special agents and task force officers with the DEA operating in Colombia, the Dominican Republic, and Puerto Rico. He also thanked the Justice Department’s Office of International Affairs; the Criminal Division’s Narcotic and Dangerous Drug Section Judicial Attachés in Bogotá, Colombia; Colombian law enforcement authorities; and the U.S. Marshals Service for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is also part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the Economic Crimes Unit in Newark.
CEO of Georgia HVAC Company Charged with Illegally Importing Harmful Greenhouse Gases into the United StatesRead the Press Release
TRENTON, N.J. – The chief executive officer of a Georgia-based HVAC company has been charged with illegally importing 500 cylinders of potent greenhouse gases known as hydrofluorocarbons (HFCs) into the United States from Peru, U.S. Attorney John Giordano announced today. This case is the second prosecution in the United States under the AIM Act, and the first prosecution of a corporate executive.
William Randolph Hires a/k/a “Randy Hires,” 57, of Woodstock, Georgia and Lima, Peru, is charged by complaint with violating the American Innovation and Manufacturing Act (AIM Act) by unlawfully importing 500 cylinders of HFCs. Hires appeared today before U.S. Magistrate Judge André M. Espinosa in Newark federal court.
HFCs include refrigerants used in heating, ventilation, and air conditioning systems commonly known as “Freon.” The global warming impact of an HFC can be hundreds to thousands of times greater than carbon dioxide. Because of this, in 2020 Congress enacted the AIM Act, which authorizes the Environmental Protection Agency (EPA) to phase down the production and consumption of HFCs by 85 percent over time.
“The defendant’s actions in this case not only violated the AIM Act and created a threat to the environment they also unfairly disadvantaged other law-abiding U.S. businesses,” said Dan Meyers, Acting Assistant Special Agent in Charge for the Environmental Protection Agency’s Criminal Investigation Division. "Today’s charges send a clear message: Enforcement of the law protects our air, land, and water, ensuring a brighter future for our citizens and a level playing field for American businesses and workers.”
“Hires disregarded our nation’s environmental laws and put our country at risk with shipments containing potent greenhouse gases,” said ICE HSI Newark Special Agent in Charge Ricky J. Patel. “HSI Newark successfully conducts investigations into violations of U.S. import and export laws to ensure national security and protect the public’s health and safety. We will hold individuals and corporations accountable for violating global trade regulations.”
According to documents filed in this case and statements made in court:In April 2022, on behalf of his company, Hires purchased 500 cylinders of HFCs in Peru. Over the next several months, EPA officials explained to Hires’s employees that, under the AIM Act and its implementing regulations, Hires’s company could not lawfully import the HFCs to the United States because it did not have the required EPA-issued allowances. In a July 22, 2022 email to one of Hires’s employees, an EPA official stated, in substance, “it is not possible to import bulk HFCs without consumption allowances.”
Hires’s employees conveyed this information from the EPA to Hires on several occasions. On one occasion, an employee forwarded to Hires an email that the employee had received from an EPA official which stated, “[t]he HFC you listed (R-410A) is a regulated substance. So if you do not have allowances, you cannot import those bulk HFC refrigerants.” In another email exchange between Hires and an employee, the employee informed Hires that, based on a video conference the employee had with EPA officials, shipping without the necessary allowances would violate import laws so “[i]t is out of our hands.”
Hires nevertheless instructed his employees to illegally import the HFCs into the United States. In a July 28, 2022 email, Hires stated to his employees: “[y]eah you have to be careful what agencies you’re reaching out to because the EPA . . . can create a hassle and they can hold our stuff up in customs there[.]” In a subsequent email, Hires instructed his employees to “get [the HFCs] on the ship and get it out to sea . . . don’t care what it takes[.]” Hires later instructed his employees via email: “Do not call the EPA please do not.”
The violation of the AIM Act with which Hires is charged carries a maximum potential penalty of 5 years in prison and a $250,000 fine.
U.S. Attorney John Giordano credited special agents of the Environmental Protection Agency-Criminal Investigation Divisions, under the direction of Acting Assistant Special Agent in Charge Dan Meyers; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Ricky J. Patel; and officers of U.S. Customs and Border Protection, under the direction of Francis J. Russo, Director of Field Operations, New York Field Office, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorneys Jessica R. Ecker and Bernard J. Cooney of the Health Care Fraud Unit, and Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit, in Newark, and Trial Attorney Ronald A. Sarachan of the Environmental Crimes Section of the U.S. Department of Justice Environmental and Natural Resources Division.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
hires.complaint.pdf
Burlington County Man Sentenced to 120 Months in Prison for Gunpoint Robberies in Passaic CountyRead the Press Release
NEWARK, N.J. – A Burlington County man was sentenced in connection with his role in two armed robberies committed in August 2022 in Passaic County, New Jersey, U.S. Attorney John Giordano announced today.
Kareem Powell, 32, of Willingboro, New Jersey, was sentenced by U.S. District Judge Claire C. Cecchi in Newark federal court on March 20, 2025, to 120 months in prison. Powell previously pleaded guilty before Judge Cecchi to two counts of Hobbs Act robbery and one count of brandishing a firearm in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
In the evening of August 22, 2022, Powell, along with accomplices Carlos Diaz and Edward Porter, robbed a Passaic bodega of several thousand dollars while pointing guns at a victim and threatening to kill him. Later that night, Powell, Diaz, and Porter also robbed a Paterson business of several thousand dollars. During both robberies, Powell, Diaz, and Porter wore face masks and ordered customers at gunpoint to lie down on the ground.
Diaz and Porter have both admitted their guilt and pled guilty in connection with the two armed robberies described above, as well as in connection with two additional armed robberies committed the following day in Passaic County. Their sentencings are scheduled to take place later in 2025.
In addition to the prison term imposed on Powell, Judge Cecchi sentenced him to three years of supervised release and ordered him to make restitution to the victims of his crimes.
U.S. Attorney Giordano credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr., and the Passaic County Sheriff’s Office, under the direction of Sheriff Thomas Adamo, with the investigation leading to the convictions and sentencing. U.S. Attorney Giordano also thanked officers of the Paterson Police Department and the Passaic Police Department for their work on this case.
The government is represented by Assistant U.S. Attorney Garrett Schuman of the Criminal Division in Newark.
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Defense counsel: Lorraine Gauli-Rufo, Verona, New Jersey
New York Man Sentenced to Life Imprisonment for Multiple Child Sex OffensesRead the Press Release
CAMDEN, N.J. – A New York man was sentenced to life in prison on charges stemming from his travel to have sex with a 13-year old New Jersey minor, his coercion and enticement of a minor, and his production and possession of child pornography, U.S. Attorney John Giordano announced.
Zachary Williams, 37 of New York, New York, was previously convicted of two counts of interstate travel to engage in illicit sexual conduct with a minor, production of and possession of child pornography, and coercion and enticement of a minor, following a 13-day trial before U.S. District Judge Christine P. O’Hearn.
According to documents filed in this case and the evidence at trial:
In or about September 2020, Williams met the minor via Snapchat. He lied about his age, telling her that he was 17-years old, when in actuality, he was 33-years old. Williams asked the minor for nude photographs of herself and, after receiving them, began to “sextort” the minor by threatening to send the nude photographs to the minor’s friends and family. He ultimately convinced the minor to meet him at a hotel in Atlantic County, New Jersey, and agreed to allow her to delete the nude photographs from his phone. On October 2, 2020, Williams traveled to a hotel in Atlantic County and, two days later, engaged in sexual intercourse with the minor in his hotel room. Afterward, despite his earlier promises, Williams continued to send messages to the minor threatening to expose the minor’s nude photographs.
Law enforcement officers arrested Williams in March 2021 in a sting operation through which they lured him to the same Atlantic County hotel by posing as the minor victim. Williams’ phone contained numerous images of child pornography, which have led to the identification of additional child victims in both the Eastern District of New York and the District of Connecticut where additional charges remain pending against Williams.
In addition to the life sentence on the coercion and enticement charge, the Court sentenced Williams to 30 years’ imprisonment on each of the two counts of interstate travel to engage in illicit sexual conduct with a minor, and the count of manufacturing child pornography, and 20 years’ on the possession of child pornography count, all to run concurrent to the life sentence.
“Zachary Williams is a callous sexual predator whose crimes against children were especially cruel,” said U.S. Attorney John Giordano. “First and foremost, the Court’s imposed sentence will forever protect our children from further abuse by Williams. My office, and our law enforcement partners, are steadfast in our commitment to protecting our nation’s young people.”
"A 13-year-old by any normal definition is a child. Children can't fend for themselves, needing adults to provide food, shelter and security. Williams, and other sexual deviants, prey on helpless children for reasons most of us can't fathom. However, it is easy to see why monsters view an innocent and defenseless child as an easy and appealing target,” said FBI Acting Special Agent in Charge Terence G. Reilly. “At FBI Newark, alongside our law enforcement partners, we are relentless in our mission to track down and remove these dangerous predators from our communities—because every child deserves to grow up safe and free from harm."
U.S. Attorney Giordano credited special agents of the FBI, Newark Division, Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Terence G. Reilly; officers from the Galloway Township Police Department, under the direction of Chief Richard D. Barber, and also recognizes the efforts of the Atlantic City Police Department, under the direction of Chief James A. Sarkos and the Atlantic County Prosecutor’s Office, under the direction of Prosecutor William Reynolds with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Patrick C. Askin of the Criminal Division, Camden.
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Defense counsel:
Mark W. Catanzaro, Esq. (Mt. Holly, NJ)
Two Executives of Louisiana Compounding Pharmacy Convicted of Defrauding TRICARE and New Jersey State Health Benefits Programs, Identity Theft, and Money LaunderingRead the Press Release
CAMDEN, N.J. – Two former executives of a Louisiana compounding pharmacy were found guilty of conspiring to use the pharmacy to defraud New Jersey and military health benefits programs of approximately $100 million, conspiring to commit identity theft in connection with the fraud, and conspiring to transact in the criminal proceeds, U.S. Attorney John Giordano announced.
Christopher Kyle Johnston, 46, of Baton Rouge, Louisiana and Trent Brockmeier, 62, of The Villages, Florida, were convicted on March 10, 2025 of one count of conspiracy to commit wire fraud and health care fraud, one count of conspiring to commit identity theft by fraudulently using a means of identification, and one count of conspiracy to commit money laundering by transacting in criminal proceeds following a six-week trial before U.S. District Judge Edward S. Kiel.
According to documents filed in this case and the evidence at trial:
Central Rexall Drugs was a pharmacy in Louisiana that prepared compounded medications, which are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. In 2013, Johnston and Brockmeier entered into an agreement to take over the management of the pharmacy and expand the compounding business in exchange for 90 percent of the profits. Brockmeier became chief operating officer of Central Rexall and Johnston became general counsel.
Johnston and Brockmeier learned that certain insurance plans would reimburse thousands of dollars for a one-month supply of certain compounded medications – including pain, scar, and antifungal creams, as well as vitamin combinations. The health plans for New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, covered these medications, as did TRICARE, which insures current and former members of the U.S. military and their families.
Johnston and Brockmeier designed compounded medications and manipulated the ingredients in the medications in order to obtain high insurance reimbursements rather than serve the medical needs of patients. To determine which ingredients and combinations resulted in high insurance reimbursements, Johnston and Brockmeier directed Central Rexall employees to submit false prescription claims to test out different combinations of ingredients, but they did not have a valid prescription signed by a doctor for these formulas. Central Rexall submitted these false claims using, without their consent, individuals’ names, dates of birth, and identifying information (including insurance information) from pre-existing Central Rexall prescriptions.
By use of these false claims, Johnston and Brockmeier designed compounded medications with combinations of ingredients that were chosen solely based on the amount of money that insurance would pay rather than on the medications’ ability to serve the medical needs of patients.
Johnston and Brockmeier retained and directed an outside sales force that used various methods to get doctors to prescribe these medications and patients to accept them, including having prescriptions signed without the patient seeing a doctor or knowing about the medications, having medications or refills ordered without the patients’ knowledge, paying patients to accept the medications, and paying doctors to prescribe them.
Johnston and Brockmeier caused approximately $100 million in fraudulent insurance claims for compounded medications that were not medically necessary. Johnston received approximately $34 million and Brockmeier received approximately $5 million in illicit profits.
50 people have been convicted or pled guilty in the overarching conspiracy.
The health care fraud and wire fraud conspiracy count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The conspiracy to commit identity theft count carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The conspiracy to commit money laundering charge carries a maximum term of imprisonment of 10 years and a fine of $250,000 or twice the gross gain or loss from the offense or not more than twice the amount of the criminally derived property involved in the transactions. Sentencing is scheduled for July 21, 2025.
U.S. Attorney John Giordano credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark; and the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Daniel A. Friedman of the Criminal Division.
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Defense counsel:
Johnston: Lawrence S. Lustberg, Anne Collart, and Andrew Marino, Esqs. (Newark, NJ)
Brockmeier: Marc Agnifilo and David Gelfand, Esqs. (New York, NY)
Dual Russian and Israeli National Extradited to the United States for His Role in the LockBit Ransomware ConspiracyRead the Press Release
NEWARK, N.J. – A dual Russian and Israeli national was extradited to the United States on charges that he was a developer of the LockBit ransomware group, United States Attorney John Giordano announced.
In August, Rostislav Panev, 51, was arrested in Israel pursuant to a U.S. provisional arrest request. Today, Panev was extradited to the United States and had an initial appearance before U.S. Magistrate Judge André M. Espinosa where Panev was detained pending trial.
“Rostislav Panev’s extradition to the District of New Jersey makes it clear: if you are a member of the LockBit ransomware conspiracy, the United States will find you and bring you to justice,” said United States Attorney John Giordano. “Even as the means and methods of cybercriminals become more sophisticated, my Office and our FBI, Criminal Division, and international law enforcement partners are more committed than ever to prosecuting these criminals.”
"No one is safe from ransomware attacks, from individuals to institutions. Along with our international partners, the FBI continues to leave no stone unturned when it comes to following LockBit's trail of destruction. We will continue to work tirelessly to prevent actors, such as Panev, from hacking their way to financial gain," said Acting Special Agent in Charge of the FBI Newark Division Terence G. Reilly.
According to the superseding complaint, documents filed in this and related cases, and statements made in court, Panev acted as a developer of the LockBit ransomware group from its inception in or around 2019 through at least February 2024. During that time, Panev and his LockBit coconspirators grew LockBit into what was, at times, the most active and destructive ransomware group in the world. The LockBit group attacked more than 2,500 victims in at least 120 countries around the world, including 1,800 in the United States. Their victims ranged from individuals and small businesses to multinational corporations, including hospitals, schools, nonprofit organizations, critical infrastructure, and government and law-enforcement agencies. LockBit’s members extracted at least $500 million in ransom payments from their victims and caused billions of dollars in other losses, including lost revenue and costs from incident response and recovery.
LockBit’s members were comprised of “developers,” like Panev, who designed the LockBit malware code and maintained the infrastructure on which LockBit operated. LockBit’s other members, called “affiliates,” carried out LockBit attacks and extorted ransom payments from LockBit victims. LockBit’s developers and affiliates would then split the ransom payments which were extorted from victims.
As alleged in the superseding complaint, at the time of Panev’s arrest in Israel in August, law enforcement discovered on Panev’s computer administrator credentials for an online repository that was hosted on the dark web and stored source code for multiple versions of the LockBit builder, which allowed LockBit’s affiliates to generate custom builds of the LockBit ransomware malware for particular victims. On that repository, law enforcement also discovered source code for LockBit’s StealBit tool, which helped LockBit affiliates exfiltrate data stolen through LockBit attacks. Law enforcement also discovered access credentials for the LockBit control panel, an online dashboard maintained by LockBit developers for LockBit’s affiliates and hosted by those developers on the dark web.
The superseding complaint also alleges that Panev exchanged direct messages through a cybercriminal forum with LockBit’s primary administrator, who, in an indictment unsealed in the District of New Jersey in May, the United States alleged to be Dimitry Yuryevich Khoroshev (Дмитрий Юрьевич Хорошев), also known as LockBitSupp, LockBit, and putinkrab. In those messages, Panev and the LockBit primary administrator discussed work that needed to be done on the LockBit builder and control panel.
Court documents further indicate that, between June 2022 and February 2024, the primary LockBit administrator made a series of transfers of cryptocurrency, laundered through one or more illicit cryptocurrency mixing services, of approximately $10,000 per month to a cryptocurrency wallet owned by Panev. Those transfers amounted to over $230,000 during that period.
In interviews with Israeli authorities following his arrest in August, Panev admitted to having performed coding, development, and consulting work for the LockBit group and to having received regular payments in cryptocurrency for that work, consistent with the transfers identified by U.S. authorities. Among the work that Panev admitted to having completed for the LockBit group was the development of code to disable antivirus software; to deploy malware to multiple computers connected to a victim network; and to print the LockBit ransom note to all printers connected to a victim network. Panev also admitted to having written and maintained LockBit malware code and to having provided technical guidance to the LockBit group.
The LockBit Investigation
The superseding complaint against, and apprehension of, Panev follows a disruption of LockBit ransomware in February 2024 by the U.K. National Crime Agency (NCA)’s Cyber Division, which worked in cooperation with the Justice Department, FBI, and other international law enforcement partners. As previously announced by the Department, authorities disrupted LockBit by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and by seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threatening to publish stolen data. That disruption succeeded in greatly diminishing LockBit’s reputation and its ability to attack further victims, as alleged by documents filed in this case.
The superseding complaint against Panev also follows charges brought in the District of New Jersey against other LockBit members, including its alleged primary creator, developer, and administrator, Dmitry Yuryevich Khoroshev. An indictment against Khoroshev unsealed in May alleges that Khoroshev began developing LockBit as early as September 2019, continued acting as the group’s administrator through 2024, a role in which Khoroshev recruited new affiliate members, spoke for the group publicly under the alias “LockBitSupp,” and developed and maintained the infrastructure used by affiliates to deploy LockBit attacks. Khoroshev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, with information accepted through the FBI tip website at www.tips.fbi.gov/.
A total of seven LockBit members have now been charged in the District of New Jersey. Beyond Panev and Khoroshev, other previously charged LockBit defendants include:
- In July, two LockBit affiliate members, Mikhail Vasiliev, also known as Ghostrider, Free, Digitalocean90, Digitalocean99, Digitalwaters99, and Newwave110, and Ruslan Astamirov, also known as BETTERPAY, offtitan, and Eastfarmer, pleaded guilty in the District of New Jersey for their participation in the LockBit ransomware group and admitted deploying multiple LockBit attacks against U.S. and foreign victims. Vasiliev and Astamirov are presently in custody awaiting sentencing.
- In February 2024, in parallel with the disruption operation described above, an indictment was unsealed in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses nationwide in the manufacturing and other industries, as well as victims around the world in the semiconductor and other industries. Sungatov and Kondratyev remain at large.
- In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Mikhail Matveev, also known as Wazawaka, m1x, Boriselcin, and Uhodiransomwar, with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev remains at large and is currently the subject of a reward of up to $10 million through the U.S. Department of State’s TOC Rewards Program, with information accepted through the FBI tip website at www.tips.fbi.gov/.
The U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program is offering rewards of:
- Up to $10 million for information leading to the arrest and/or conviction in any country of Khoroshev;
- Up to $10 million for information leading to the arrest and/or conviction of Matveev;
- Up to $10 million for information leading to the identification and location of any individuals who hold a key leadership position in LockBit; and
- Up to $5 million for information leading to the arrest and/or conviction in any country of any individual participating or attempting to participate in LockBit.
Information is accepted through the FBI tip website at tips.fbi.gov.
Khoroshev, Matveev, Sungatov, and Kondratyev have also been designated for sanctions by the Department of the Treasury’s Office of Foreign Assets Control for their roles in launching cyberattacks.
Victim Assistance
LockBit victims are encouraged to contact the FBI and submit information at www.ic3.gov. As announced by the Department in February, law enforcement, through its disruption efforts, has developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Submitting information at the IC3 site will enable law enforcement to determine whether affected systems can be successfully decrypted.
LockBit victims are also encouraged to visit www.justice.gov/usao-nj/lockbit for case updates and information regarding their rights under U.S. law, including the right to submit victim impact statements and request restitution, in the criminal litigation against Panev, Astamirov, and Vasiliev.
The FBI Newark Field Office, under the supervision of Acting Special Agent in Charge Terence G. Reilly, is investigating the LockBit ransomware variant. Israel’s Office of the State Attorney, Department of International Affairs, and Israel National Police; France’s Gendarmerie Nationale Cyberspace Command, Paris Prosecution Office — Cyber Division, and judicial authorities at the Tribunal Judiciare of Paris; Europol; Eurojust; the United Kingdom’s National Crime Agency; Germany’s Landeskriminalamt Schleswig-Holstein, Bundeskriminalamt, and the Central Cybercrime Department North Rhine-Westphalia; Switzerland’s Federal Office of Justice, Public Prosecutor’s Office of the Canton of Zurich, and Zurich Cantonal Police; Spain’s Policia Nacional and Guardia Civil; authorities in Japan; Australian Federal Police; Sweden’s Polismyndighetens; Canada’s Royal Canadian Mounted Police; Politie Dienst Regionale Recherche Oost-Brabant of the Netherlands; and Finland’s National Bureau of Investigation have provided significant assistance and coordination in these matters and in the LockBit investigation generally.
Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey and Trial Attorneys Debra Ireland and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the charges against Panev and the other previously charged LockBit defendants in the District of New Jersey.
The Justice Department’s former Cybercrime Liaison Prosecutor to Eurojust, Office of International Affairs, and National Security Division also provided significant assistance.
Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A.
The charges and allegations contained in the superseding complaint and above-named Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel: Frank Arleo, Esq.
panev.complaint.pdfBrooklyn Man Admits to Fraudulently Entering Competitor Laboratory, Destroying and Stealing EquipmentRead the Press Release
NEWARK, N.J. – A Brooklyn, New York man admitted to having entered a laboratory business on false pretenses and destroying and stealing that business’ equipment, U.S. Attorney John Giordano announced.
Eric Leykin, 33, of Brooklyn, New York, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a one-count indictment charging him with wire fraud.
According to documents filed in this case and statements made in court:
Leykin was the CEO of a clinical reference laboratory based in New Jersey. Leykin’s laboratory competed against the victim business, another clinical reference laboratory also based in New Jersey. On June 30, 2022, Leykin bought and activated a prepaid mobile phone and called an employee of the victim business, claiming to be a technician with a vendor that the victim business used to service its laboratory equipment. On that false pretense, Leykin arranged with the victim business’ employee to come to the victim business on the following day, supposedly to service the victim business’ laboratory equipment. On July 1, 2022, the date of the supposed service appointment, Leykin went to the victim business, entered the premises fraudulently posing as a vendor technician, and proceeded to destroy a significant amount of the victim business’ laboratory and computer equipment. Leykin also stole multiple hard drives housed within the victim business’ equipment.
The wire fraud count carries a maximum potential penalty of 20 years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for July 22, 2025.
U.S. Attorney Giordano credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to the guilty plea. U.S. Attorney Giordano also thanked the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, and the Millburn Police Department, under the direction of Chief Brian Gilfedder, for substantial assistance provided to the investigation.
The government is represented by Assistant U.S. Attorneys Andrew M. Trombly, Deputy Chief of the Cybercrime Unit, and Chana Y. Zuckier of the Bank Integrity, Recovery, and Money Laundering Unit.
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Defense counsel: Albert Dayan, Esq.; Robert DeGroot, Esq.; Oleg Nekritin, Esq.
leykin.indictment.pdfEssex County Man Sentenced to 85 Months in Prison for Illegally Possessing Firearms and AmmunitionRead the Press Release
NEWARK, N.J. An Essex County, New Jersey, man with a previous felony conviction was sentenced to 85 months in prison for illegally possessing firearms and ammunition, U.S. Attorney John Giordano announced.
Ramad Moultrie, 23, of Newark, previously pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an Indictment charging him with two counts of possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On Aug. 2, 2021, members of the Newark Police Department responded to a shooting at the Grace West Manor Complex on Irvine Turner Boulevard, where they located two victims with gunshot wounds. Surveillance video recorded Moultrie waving members of a crowd, including small children, out of his way before firing a gun towards the two victims. Three .45 auto caliber casings were recovered from the area where Moultrie discharged the firearm. A .45 caliber handgun, a 9 mm handgun, ammunition, and drugs were recovered when Moultrie was arrested at his residence.
In addition to the prison term, Judge Martinotti sentenced Moultrie to three years of supervised release.
U.S. Attorney John Giordano credited special deputies of the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr.; and officers of the Newark Police Department, under the direction of Director Emanuel Miranda, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division.
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Defense counsel: Christopher D. Adams, Newark, N.J.
Paterson Firearms Trafficker Indicted on Firearm Offenses, Including Possession of Machine GunsRead the Press Release
NEWARK, N.J. – A Paterson man was indicted today by a federal grand jury for his role in committing firearms offenses after authorities discovered dozens of illicit firearms, including 3D-printed “ghost” gun frames, machine gun conversion devices, firearm silencers, short-barreled rifles, hundreds of rounds of ammunition, and a 3D printer in his residence, U.S. Attorney John Giordano announced.
Mikhail Gouldson, 36, of Paterson, New Jersey, is charged in a five-count indictment with one count of dealing in firearms without a license, one count of possession of a firearm and ammunition by a convicted felon, one count of possession of machineguns, one count of possession of unregistered firearms and one count of attempted trafficking in firearms. Gouldson, who was previously charged by complaint, will be arraigned on a date to be determined.
According to documents filed in this case and statements made in court:
Over the course of the investigation, law enforcement intercepted multiple shipments of weaponry that were mailed to Gouldson’s residence. After searching Gouldson’s residence, law enforcement recovered large quantities of firearms and ammunition, as well as 3D printing equipment.
The dealing in firearms without a license count carries a maximum penalty of 5 years’ imprisonment. The possession of firearms and ammunition by a convicted felon and attempted trafficking in firearms counts each carries a maximum penalty of 15 years’ imprisonment. The possession of machineguns and unregistered firearms counts each carries a maximum penalty of 10 years’ imprisonment. Each of the counts carries a maximum fine of $250,000.
U.S. Attorney John Giordano credited special agents of the United States Department of Homeland Security, Homeland Security Investigations Newark, under the direction of Ricky J. Patel; the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; and the postal inspectors of the United States Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to today’s charges.
This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act of June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also part of the Paterson Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Bergen County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
The government is represented by Assistant U.S. Attorney Daniel H. Rosenblum of the Narcotics/OCDETF Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
gouldson.indictment.pdf
Convicted Felon Sentenced to 144 Months’ Imprisonment for Possession of Firearms and the Distribution of CocaineRead the Press Release
NEWARK, N.J. – A New Jersey man was sentenced to 144 months in prison for possession of firearms and ammunition by a convicted felon, and possession with intent to distribute cocaine, U.S. Attorney John Giordano announced.
Dominick Montgomery, 38, of Plainfield, New Jersey, appeared before U.S. District Court Judge Georgette Castner on October 8, 2024, and pleaded guilty to possession of firearms and ammunition by a convicted felon, and possession with intent to distribute cocaine. On March 6, 2025, Judge Castner sentenced Montgomery to 144 months’ imprisonment.
According to court documents:
In October of 2021, law enforcement was investigating narcotics trafficking in the Somerset and Middlesex County area. During the investigation, law enforcement identified Montgomery as an individual distributing narcotics in that area. From October 27, 2021 until January 24, 2022, Montgomery sold eight firearms, cocaine, and fentanyl to an undercover law enforcement officer in exchange for money. During the last transaction, on January 24, 2022, Montgomery sold the undercover officer cocaine and three firearms in exchange for $6,750. On February 2, 2022, law enforcement arrested Montgomery and found him in possession of a Smith and Wesson pistol and fifteen rounds of ammunition.
In addition to the prison term, Judge Castner sentenced Montgomery to three years of supervised release.
U.S. Attorney Giordano credited special agents of the ATF, under the direction of Special Agent in Charge L.C. Cheeks Jr., and the Somerset County Prosecutors Office, under the direction of Somerset County Prosecutor John P. McDonald, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Megan N. Linares of the Office’s Criminal Division in Newark.
VA Firefighter Admits Scheme to Commit Workers’ Compensation FraudRead the Press Release
CAMDEN, N.J. – A Department of Veterans Affairs firefighter admitted to a scheme to commit workers’ compensation fraud, U.S. Attorney John Giordano announced.
Richard Hyland, 61, of Westbury, New York, pleaded guilty to an Information charging one count of workers’ compensation fraud, in violation of 18 U.S.C. § 1920 before U.S. District Judge Karen M. Williams in Camden federal court.
According to documents filed in this case and statements made in court:
Hyland was employed as a firefighter by the Department of Veterans Affairs and worked at the Lyons VA Medical Center in Lyons, New Jersey. In 2014, Hyland suffered a back injury and began receiving workers’ compensation benefits. To continue receiving benefits, Hyland certified annually to the U.S. Department of Labor that he was not working or volunteering anywhere else.
These certifications were false. As early as March 2017, Hyland worked as a tow truck driver. He also worked as a long-haul truck driver and volunteered at his local fire department. From March 2017 through December 2024, Hyland fraudulently received $479,341.26 in workers’ compensation benefits.
The count of workers’ compensation fraud carries a maximum penalty of 5 years in prison and a $250,00 fine. Sentencing is scheduled for July 11, 2025.
U.S. Attorney John Giordano credited special agents of the U.S. Department of Labor, Office of the Inspector General, under the direction of Jonathan Mellone, and of the Department of Veterans Affairs, Office of the Inspector General, under the direction of Chris Algieri, with the investigation.
The government is represented by Assistant U.S. Attorney Joseph McFarlane of the Special Prosecutions Division in Camden.
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Defense counsel: Zach Intrater, Agnifilo Intrater LLP
hyland.information.pdfThree New Jersey Men Indicted for Their Roles in Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – A federal grand jury in the District of New Jersey returned a 12-count indictment against three New Jersey men yesterday for their alleged roles in a drug trafficking organization that distributed fentanyl, cocaine, and methamphetamine in Newark, U.S. Attorney John Giordano announced.
George Lopez, 50, of Newark, New Jersey, Reinaldo Cruz, 45, of Elizabeth, New Jersey, and Joel Hernandez, 28, of Parlin, New Jersey, are each charged by indictment with one count of conspiracy to distribute methamphetamine, cocaine, and fentanyl. In addition, George Lopez was charged with one count of possession with intent to distribute methamphetamine and cocaine, two counts of illegal possession of firearms and ammunition by a convicted felon, and one count of possession of firearms in furtherance of a drug trafficking crime. Reinaldo Cruz was charged with two counts of possession with intent to distribute fentanyl, one count of possession with intent to distribute fentanyl and cocaine, and one count of illegal possession of firearms and ammunition by a convicted felon. Finally, Joel Hernandez was charged with one count of possession with intent to distribute methamphetamine and cocaine, one count of possession with intent to distribute cocaine, one count of possession of a firearm and ammunition by a convicted felon, and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to the indictment and other documents previously unsealed in the District of New Jersey, Reinaldo Cruz and Joel Hernandez distributed controlled substances on behalf of the drug trafficking organization (“DTO”) in and around Essex and Union Counties, New Jersey, specifically from several drug distribution locations. George Lopez, in turn, provided advice and connections regarding sources of supply of controlled substances from jail while he and his wife received cash from the DTO. Lopez and Cruz are associates of the Latin Kings street gang.
During the investigation, law enforcement intercepted wire and electronic communications, used mobile and fixed surveillance, conducted controlled purchases and seizures of narcotics, and analyzed telephone records. The investigation has revealed that the DTO distributed more than 500 grams of methamphetamine, 5 kilograms of cocaine, and 40 grams of fentanyl.
The methamphetamine and cocaine conspiracy count carries a mandatory minimum penalty of 10 years in prison, maximum potential penalty of life in prison, and a $10 million fine. The fentanyl conspiracy count and methamphetamine and cocaine possession count against George Lopez each carries a mandatory minimum penalty 5 years in prison, maximum potential penalty of 40 years in prison, and a $5 million fine. The remaining drug possession counts each carry a maximum potential penalty of 20 years in prison and a $1 million fine. The illegal possession of firearms and ammunition counts each carry a maximum potential penalty of 15 years in prison and a $250,000 fine. The possession of firearms in furtherance of a drug trafficking crime counts each carry a mandatory minimum penalty of 5 years in prison, which must run consecutively to any other sentence imposed.
U.S. Attorney Giordano credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark, the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel and Chief Harvey A. Barnwell, and the Elizabeth Police Department, under the direction of Chief Giacomo Sacca, with the investigation leading to the charges. U.S. Attorney Giordano thanked the Union County Police Department, under the direction of Officer in Charge, Captain John DaSilva, Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks Jr., Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, the Essex County Sheriff’s Department, under the direction of Sheriff Amir D. Jones, Hudson County Department of Corrections, under the direction of Director Becky Scott, the Cranford Police Department, under the direction of Chief Matthew R. Nazzaro, the Bloomfield Police Department, under the direction of Chief George Ricci, the New Jersey State Police SWAT Team, under the direction of Col. Patrick J. Callahan, the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda, the Hudson County Regional SWAT Team, under the direction of Prosecutor Esther Suarez, and the U.S. Marshals Service, under the direction of Special Agent in Charge Juan Mattos Jr., for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Eli Jacobs of the Organized Crime and Gangs Unit and John Mezzanotte of the Economic Crimes Unit of the U.S. Attorney’s Office.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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lopez_cruz_hernandez.indictment.pdfNew Jersey Man Sentenced to 40 Months in Prison for Stealing COVID-19 Unemployment Benefits; Others Previously SentencedRead the Press Release
TRENTON, N.J. – A New Jersey man was sentenced to 40 months in prison for his role in a conspiracy to illegally obtain over $570,000 in COVID-19 unemployment benefits, U.S. Attorney John Giordano announced.
Jose Tavares, 37, of Englewood, New Jersey, was convicted on Oct. 28, 2024, on one count of conspiracy to commit wire fraud after a five-day jury trial before U.S. District Judge Robert Kirsch. Judge Kirsch imposed the sentence in Trenton federal court. Tavares’ conspirators, Yanira Abreu, 43, of Keasbey, New Jersey, and Christopher Valerio, 34, of Perth Amboy, New Jersey, were each sentenced previously by Judge Kirsch in the same scheme.
According to documents filed in this case and statements made in court:
From July 2020 through February 2021, Tavares, Valerio, Abreu and others submitted fraudulent applications for unemployment insurance benefits to the New York Department of Labor (NYDOL) through fictitious online profiles that they created using personally identifiable information, including names, dates of birth, and Social Security numbers of other individuals without their consent. Once the NYDOL processed and approved the fraudulent applications, Tavares and his conspirators obtained debit cards with the illegally obtained funds totaling over $570,000, which they used for personal gain, including vacations, luxury retail purchases, and cosmetic surgery.
In addition to the prison term, Judge Kirsch sentenced Tavares to 3 years of supervised release and ordered Tavares to pay in $570,077 in restitution.
U.S. Attorney Giordano credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark; Special Agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation that led to the sentencing.
The government is represented by Assistant U.S. Attorneys Matthew Stark and Benjamin D. Bleiberg of the Economic Crimes Unit in Newark.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Defense Counsel for Tavares: Jeffrey Simms, Esq. and Roberto Espinosa, Esq., of New Jersey.
Defense counsel for Valerio: Kevin Roe, Esq., of New Jersey.
Defense counsel for Abreu: John Russo, Esq., of New York.
tavares.indictment.pdfNew Jersey Man Admits to Concealing Material Support and Resources to ISISRead the Press Release
NEWARK, N.J. – A Morris County man today admitted to having concealed his efforts to provide material support and resources to ISIS, U.S. Attorney John Giordano, Sue Bai, Head of the U.S. Department of Justice’s National Security Division, and FBI-Newark Acting Special Agent in Charge Terence G. Reilly announced.
Kyse S. Abushanab, 27, of Budd Lake, New Jersey pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to a one-count information charging him with concealing material support and resources to a designated foreign terrorist organization.
“The crime that Kyse Abushanab admitted to today threatened the safety of Americans both here and abroad,” said U.S. Attorney John Giordano. “Kyse Abushanab gathered and distributed training materials on the making and use of bombs and explosives to ISIS supporters. He concealed these activities through various means, including using encrypted messaging platforms. Abushanab’s activities are a stark reminder that terrorist organizations like ISIS are intent on compromising the safety of Americans around the world. We and our law enforcement partners are fully committed to disrupting these activities to restore safety and security.”
“At a time when terrorist attacks are fresh in the minds of Americans everywhere, this thwarted effort should serve as a warning to all ISIS and violent extremist ideologists everywhere,” Acting Special Agent in Charge Reilly said. “The FBI Newark Joint Terrorism Task Force will work tirelessly to stop you and your misguided ideology before you harm innocent victims.”
According to documents filed in this case and statements made in court:
Between in or around March 2021 and in or around January 2022, Abushanab compiled resources, including information pertaining to the manufacture and use of weapons of mass destruction, with the aim of providing members of the Islamic State of Iraq and Syria (“ISIS” or “the Islamic State”), a designated foreign terrorist organization, and its supporters with a repository of information and resources to help carry out ISIS’s mission. This material included, among other things, videos and documents showing step-by-step instructions on how to make suicide belts or vests, detonators and timers, improvised bombs, and other explosives and incendiary devices. In an effort to evade detection by law enforcement, Abushanab took steps to conceal his efforts to assist ISIS by, among other things, using encrypted applications, untraceable email accounts, and a secured cloud storage space to gather and store information on how to make a variety of weapons of mass destruction.
The charge of concealment of provision of material support carries a maximum potential penalty of 10 years in prison, and a fine of up to $250,000. Sentencing is scheduled for September 24 2025.
U.S. Attorney Giordano credited special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Reilly, and the Morris County Sheriff’s Office, under the direction of Sheriff James M. Gannon, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sammi Malek of the National Security Unit in Newark, with assistance from the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
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Defense counsel: Robert C. Scrivo, Esq. and Andrew Gimigliano, Esq.
abushanab.information.pdfOwner of Marketing Companies and DME Company Convicted for Role in $100 Million Scheme to Defraud Medicare and Other Insurers and to Violate the Anti-Kickback StatuteRead the Press Release
NEWARK, N.J. A Florida man was convicted by a federal jury for his role in a durable medical equipment (DME) kickback scheme that caused millions of dollars in losses to Medicare and other insurance providers, United States Attorney John Giordano announced.
Following a month-long jury trial before U.S. District Judge Michael E. Farbiarz, Raheel Naviwala, 36, of Coral Springs, Florida, was convicted on Feb. 28, 2025, of conspiracy to commit health care fraud and wire fraud, one count of health care fraud, conspiracy to violate the Anti-Kickback Statute, and three counts of violating the Anti-Kickback Statute. He was also acquitted of two counts of health care fraud.
“This Office is committed to prosecuting those like the defendant who seek to profit by defrauding and corrupting our nation’s medical systems,” United States Attorney John Giordano said. “When people siphon millions from Medicare to line their own pockets, regular citizens pay the price. This case demonstrates that serious consequences will follow for such conduct.”
“The scheme Naviwala and his co-conspirators created to steal money from the government was complex and expansive,” FBI Acting Special Agent in Charge Terence G. Reilly said. “However, FBI Newark and our law enforcement partners have the expertise and grit to dig through mountains of data and find the fraudsters. We want this case to serve as a warning to anyone hoping to capitalize on hiding under the red tape - we are still here, and you will eventually get caught.”
“The defendant convicted in this case prioritized greed over the provision of appropriate health care services to patients, bilking the federal government for medically unnecessary durable medical equipment,” stated Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to ensure the integrity of the federal health care system and hold accountable owners and providers engaging in fraud that targets its programs.”
“Investigating corrupt schemes that undermine the integrity of TRICARE, the healthcare system for military members and their families, is a top priority for the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Mr. Naviwala’s illegal schemes put the TRICARE program and its beneficiaries at risk. We are committed to working with our partner agencies and the Department of Justice to pursue those individuals who selfishly place personal gain over the safety and care of TRICARE beneficiaries.”
“Schemes such as these compromise the integrity of VA’s programs and services and divert funds from our nation’s deserving veterans,” said Special Agent in Charge Christopher F. Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG will continue to work with our law enforcement partners to root out fraudsters and hold them accountable.”
According to the evidence at trial:
Naviwala and his coconspirators purchased lists of Medicare patients’ names, addresses, and phone numbers, and hired telemarketers to convince the patients to get DME (orthotic braces). These telemarketers pre-filled prescriptions and picked the highest-paying braces to bill to insurers. Naviwala then paid telemedicine doctors to sign the pre-filled prescriptions for braces, regardless of whether the patients needed or wanted braces. Generally, the telemedicine doctor did not even speak to the patients before signing the pre-filled prescriptions.
Naviwala then sold the signed prescriptions to DME supply companies that could bill Medicare, TRICARE, and other insurers for the braces. To conceal the fraud, Naviwala and his coconspirators signed sham contracts and used sham invoices that falsely represented that Naviwala was billing DME supply companies for marketing or consulting.
Naviwala also owned and operated a DME supply company that was used to bill Medicare, and which submitted claims to Medicare for up to nine braces for a single patient.
To further conceal his illegal conduct, Naviwala put multiple of his businesses in the names of nominee owners. The nominee owners generally performed no legitimate work for any company and were paid to hide Naviwala’s involvement.
Medicare and other insurers paid hundreds of millions of dollars to members of the conspiracy and paid at least approximately $100 million for DME associated with Naviwala’s companies. Naviwala personally pocketed more than $10 million in fraud proceeds.
Conspiracy to commit health care fraud and wire fraud is punishable by a maximum potential penalty of 20 years in prison. Health care fraud is punishable by a maximum potential penalty of 10 years in prison. Conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison. Each count of illegal kickbacks is punishable by a maximum potential penalty of 10 years in prison. Each count is also punishable by a fine. Sentencing is scheduled for 10 a.m. on July 29, 2025, before Judge Farbiarz in Newark.
United States Attorney John Giordano credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark; HHS-OIG, under the direction of Special Agent in Charge Naomi Gruchacz; DCIS, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou, Deputy Chief of the Criminal Division, Matthew Specht of the Special Prosecutions Division, and Aaron L. Webman of the Economic Crimes Unit in Newark.
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Defense counsel:
Jamie Hoxie Solano, Esq. New York, New York
Amy C. Brown, Esq. New York, New York
Bryan W. McCracken, Esq. New York, New York
Ifedapo Benjamin, Esq. New York, New York
New Jersey Man Admits to Concealing Material Support and Resources to ISISRead the Press Release
Kyse S. Abushanab, 27, of Budd Lake, New Jersey, pleaded guilty today to a one-count information charging him with concealing material support and resources to a designated foreign terrorist organization.
According to court documents, between in or around March 2021 and in or around January 2022, Abushanab compiled resources, including information pertaining to the manufacture and use of weapons of mass destruction, with the aim of providing members of the Islamic State of Iraq and Syria (ISIS or the Islamic State), a designated foreign terrorist organization, and its supporters with a repository of information and resources to help carry out ISIS’s mission. This material included, among other things, videos and documents showing step-by-step instructions on how to make suicide belts or vests, detonators and timers, improvised bombs, and other explosives and incendiary devices. In an effort to evade detection by law enforcement, Abushanab took steps to conceal his efforts to assist ISIS by, among other things, using encrypted applications, untraceable email accounts, and a secured cloud storage space to gather and store information on how to make a variety of weapons of mass destruction.
The charge of concealment of provision of material support carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Sept. 24.
Sue Bai, head of the Justice Department’s National Security Division; Acting U.S. Attorney Vikas Khanna for the District of New Jersey; Assistant Director David J. Scott of the FBI's Counterterrorism Division; and Acting Special Agent in Charge Terence G. Reilly of the FBI Newark Field Office made the announcement.
The FBI is investigating the case, with valuable assistance provided by the Morris County Sheriff’s Office.
Assistant U.S. Attorney Sammi Malek for the District of New Jersey and Trial Attorney Ryan White of the National Security Division’s Counterterrorism Section are prosecuting the case.
John Giordano Sworn in as 64th U.S. Attorney for District of New JerseyRead the Press Release
John Giordano was appointed by Attorney General Pamela Bondi as the 64th United States Attorney for the District of New Jersey. Mr. Giordano was officially sworn in on March 3.
“I thank President Donald Trump and Attorney General Pam Bondi for their trust and confidence in me. Serving President Trump and the citizens of my home state of New Jersey is the honor of a lifetime and a privilege I do not take lightly. Together with the dedicated and highly skilled men and women of the U.S. Attorney's Office, I am committed to tirelessly protecting our citizens and ensuring swift justice for those who violate the laws of the United States of America. Our immediate focus will be to aggressively confront violent gang activity, dismantle human trafficking networks, and eliminate the ability of cartels to flood our streets with fentanyl and other deadly drugs.”
U.S. Attorney John Giordano
A native of Burlington County, Mr. Giordano brings a depth of high-level experience from both the public and private sectors. His career includes extensive work within the Department of Justice as Counselor to the Assistant Attorney General for the Environment and Natural Resources Division, and as a prosecutor in the U.S. Attorney’s Office for the Eastern District of Virginia, where he handled complex federal felony matters, including national security violations, narcotics trafficking, violent crimes, and government theft. Mr. Giordano also served as Assistant Commissioner for Compliance and Enforcement at the New Jersey Department of Environmental Protection.
In addition, Mr. Giordano was previously appointed by President Trump to serve as Representative of the United States to the 74th Session of the United Nations General Assembly, where he focused on issues directly impacting the national security of the United States, including human trafficking and counterterrorism. He has also shared his extensive knowledge of federal law as an Adjunct Professor at Rutgers University School of Law and as a Lecturer in Law at the University of Pennsylvania Law School.
A Phi Beta Kappa graduate of Villanova University in 1998, Mr. Giordano earned his law degree from Villanova University School of Law in 2002. Following law school, he clerked for United States District Judge Joseph E. Irenas in the District of New Jersey before entering private practice.
As the U.S. Attorney for the District of New Jersey, Mr. Giordano oversees all federal criminal prosecutions and civil litigation involving federal interests in the State. With offices in Newark, Camden, and Trenton, he supervises a dedicated staff of approximately 153 federal prosecutors and 104 support personnel.
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Mercer County Accounting Professor Convicted of Tax Evasion and Filing False Tax Returns Sentenced to 24 Months in PrisonRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey man was sentenced today to 24 months in prison for evading federal income taxes and filing false tax returns, Acting U.S. Attorney Vikas Khanna announced.
Gordian A. Ndubizu, of Princeton Junction, New Jersey, was convicted on Aug. 15, 2024, of all eight counts of an indictment charging him with four counts of tax evasion and four counts of filing false tax returns in tax years 2014 through 2017, following a four-day trial before U.S. District Judge Zahid N. Quraishi, who imposed the sentence today in Trenton federal court.
According to documents filed in this case and evidence introduced at trial:
During tax years 2014 through 2017, Ndubizu was a professor of accounting at a university in Pennsylvania as well as the co-owner of Healthcare Pharmacy in Trenton, New Jersey. Healthcare Pharmacy was organized as an S corporation, the income of which flowed through to Ndubizu and his wife and was to be reported on their personal income tax returns. Ndubizu prepared fraudulent books and records for Healthcare Pharmacy inflating the pharmacy’s costs of goods sold to reduce and underreport the pharmacy’s actual profits flowing through to Ndubizu and his wife. In the fraudulent books and records, among other things, Ndubizu identified certain wire transfers as payments to purchase goods sold by the pharmacy when those wire transfers were in fact made to personal bank accounts under Ndubizu’s control and to bank accounts in Nigeria associated with an automotive company under Ndubizu’s control. Each of Ndubizu’s tax returns for tax years 2014 through 2017 falsely underreported his income and falsely reported that he had no financial interest in or signature authority over any foreign bank accounts. Ndubizu failed to report approximately $3.28 million in income from the pharmacy, resulting in the evasion of approximately $1.25 million in tax due and owing.
Acting U.S. Attorney Khanna credited special agents of IRS Criminal Investigation , under the direction of Special Agent in Charge Jennifer L. Piovesan in Newark, with the investigation leading to the sentencing. He also thanked special agents of the Drug Enforcement Administration, and officers of the Trenton Police Department and Mercer County Prosecutor’s Office for their work on this case.
The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Ashley Super Pitts of the U.S. Attorney’s Office Criminal Division in Trenton.
United States Files Civil Complaint to Forfeit 9,000 Boys’ Suits Imported from China That Contained Unsafe Levels of LeadRead the Press Release
NEWARK, N.J. – The United States Attorney’s Office filed a civil complaint today to forfeit more than 9,000 boys’ suits that were intercepted at the Port of New York/Newark after being imported from China, Acting U.S. Attorney Vikas Khanna announced.
As alleged in the civil forfeiture complaint, the boys’ suits were seized by the Department of Homeland Security, U.S. Customs and Border Protection, in March 2020, after the buttons on the boys’ suits were tested by the U.S. Consumer Product Safety Commission and found to contain prohibited levels of lead. Further, and as alleged in the civil forfeiture complaint, this was at least the third instance in which the importer, Angels New York US, Inc., attempted to import children’s clothing that contained unsafe levels of lead.
Acting U.S. Attorney Khanna credited members of the U.S. Customs and Border Protection at the Port of New York/Newark, under the direction of Port Director Jeffrey Greene, and members of the U.S. Consumer Product Safety Commission.
The government is represented by Assistant U.S. Attorney Peter A. Laserna of the Bank Integrity, Money Laundering and Recovery Unit.
The accusations in the complaint, and the description of the complaint, constitute only allegations.
angelsnewyork.complaint.pdf
Essex County Armed Career Criminal Charged with Weapons Possession and Trafficking Fentanyl, Heroin, and MethamphetamineRead the Press Release
NEWARK, N.J. – An Essex County man was charged today with (i) being a felon in possession of a firearm, (ii) possession with intent to distribute fentanyl, heroin, and methamphetamine, and (iii) possessing a firearm in furtherance of a drug trafficking crime, Acting U.S. Attorney Vikas Khanna announced.
Michael Weaver, 38, of Irvington, New Jersey was charged today by superseding indictment with the above-referenced charges, and his arraignment will be scheduled before U.S. District Judge Claire C. Cecchi in Newark federal court.
As a result of Weaver’s significant and violent criminal history, which includes numerous convictions in Essex County for robbery, aggravated assault, unlawful weapons possession, and drug trafficking, he was charged under the Armed Career Criminal Act. That charge carries a mandatory minimum penalty of 15 years in prison. In total, as a result of all the charges in the Superseding Indictment, Weaver faces a total mandatory minimum sentence of 20 years in prison and a maximum sentence of imprisonment of life in prison. Each offense carries a maximum fine of $250,000.
Acting U.S. Attorney Khanna credited special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Terence G. Reilly, the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II and Chief Mitchell G. McGuire, and the Newark Police Department, under the direction of Director Emanuel Miranda, with the investigation.
The government is represented by Assistant U.S. Attorney Joseph Stern of the Opioid Abuse Prevention and Enforcement Unit in Newark.
The charges and allegations contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
El Salvador National Previously Convicted of Double Homicide Charged with Illegally Reentering the United StatesRead the Press Release
NEWARK, N.J. – A citizen of El Salvador who was previously convicted for double homicide and sentenced to 50 years in prison in El Salvador, was charged with illegally reentering the United States, Acting U.S. Attorney Vikas Khanna announced.
César Eliseo Sorto-Amaya, 28, was charged today by complaint with illegally reentering the United States and appeared before U.S. Magistrate Judge José R. Almonte in Newark federal Court.
According to documents filed in this case, public statements and statements made in court:
Since 2015, Sorto-Amaya was deported from and illegally returned to the United States three separate times, including one time where he was deported after being convicted of weapons possession charges in Elizabeth, New Jersey. In April 2024, Sorto-Amaya was convicted in abstentia in El Salvador of double aggravated homicide and sentenced to 50 years in prison.
Acting U.S. Attorney Khanna credited special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Terence G. Reilly, U.S. Department of Homeland Security Investigations (HSI) Newark, under the direction of Special Agent in Charge Ricky Patel, Immigration and Customs Enforcement – Enforcement and Removal Operations, under the direction of Field Office Director John Tsoukaris, and law enforcement authorities in El Salvador, with the investigation.
The government is represented by Assistant U.S. Attorney Joseph Stern of the Opioid Abuse Prevention and Enforcement Unit in Newark.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Carol Dominguez, Esq.
sorto_amaya.complaint.pdfPhiladelphia Resident Sentenced to 60 Months in Prison for Role in Operating Fentanyl Drug MillRead the Press Release
NEWARK, N.J. – A Philadelphia resident was sentenced to 60 months in prison for his role in a conspiracy to distribute and transport bulk quantities of fentanyl into northern New Jersey communities from a drug mill located in the Philadelphia, Pennsylvania area, Acting U.S. Attorney Vikas Khanna announced.
Emmanuel F. Almonte Mejia, 40, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiracy to distribute and possess with intent to distribute fentanyl.
According to documents filed in this case and statements made in court:
In February 2022, Mejia and his co-conspirators operated a private residence, commonly referred to as a drug mill, in which he and his co-conspirators produced large quantities of bulk fentanyl for redistribution. In total, law enforcement recovered nearly six kilograms of fentanyl which was produced in the mill.
In addition to the prison term, Judge Hayden sentenced Mejia to three years of supervised release.
Mejia’s co-conspirators, Hector Luiz De La Cruz Nunez, 32, and Loanny F. Duran Hiciano, 37, have both pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl. Nunez was sentenced to 60 months in prison followed by three years of supervised release, and Hiciano awaits sentencing.
Acting U.S. Attorney Khanna credited special agents of the U.S. Department of Homeland Security Investigations (HSI) Newark, under the direction of Special Agent in Charge Ricky Patel, HSI Philadelphia, under the direction of Special Agent in Charge Edward Owens, and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation that led to the sentencing.
The government is represented by Assistant U.S. Attorney Vincent D. Romano of the Criminal Division in Newark.
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Defense counsel: Robert M. Gamburg
Thirteen Individuals Charged as Part of International Ring Targeting Cell Phone Shipments for TheftRead the Press Release
NEWARK, N.J. – Thirteen members of an international network that stole thousands of shipments of iPhones and other electronic devices around the United States were charged today, Acting U.S. Attorney Vikas Khanna, District of New Jersey, announced.
Demetrio Reyes Martinez, a/k/a “CookieNerd,” 37, of the Dominican Republic, Andrickson Jerez, 28, of Bronx, NY, Edickson Lora Castillo, 24, of New York, NY, Raimond Cabrera De Leon, 31, of New York, NY, Luis Marte Tavares, 33, of Brooklyn, NY, Frederick Duverge Guzman, 26, of New York, NY, rgJulio Vasquez Sanchez, a/k/a “BotTrack,” 30, of Brooklyn, NY, Alejandro Then Castillo, 45, of Paterson, NJ, Wilson Peralta Tavarez, 28, of Belleville, NJ, Ecker Montero Hernandez, 25, of Paterson, NJ, Jean Luis Diaz Dominguez, a/k/a “Botija,” 24, of Paterson, NJ, Luis Nunez, 23, of Paterson, NJ, and Joel Suriel, a/k/a “La Melma,” 31, of Brooklyn, NY, were each charged in Count One of the Criminal Complaint unsealed today with conspiracy to transport and receive stolen property.
In addition, Then Castillo and Peralta Tavares were charged in Count Two of the Criminal Complaint with wire fraud conspiracy. Finally, Jerez and Then Castillo (Count Three) and Lora Castillo (Count Four) were each charged with one count transportation of stolen property.
According to documents filed in this case and statements made in court:
The defendants were part of an international and nationwide ring involved in the widespread theft of electronic device shipments from FedEx and other carriers. The ring identified valuable packages to steal through two primary means: (1) the creation and use of automated computer scripts, developed by Reyes Martinez and others, to scrape data from the public and customer-facing tracking systems of FedEx and Victim-1, a major U.S. cellular provider; and (2) bribing corrupt Victim-1 employees such as Then Castillo and Peralta Tavares to provide confidential information about Victim-1 customers, including orders, names, tracking numbers, and delivery addresses.
This criminal network operated in layers with some members, referred to as “dispatchers,” obtaining and selling the delivery information and others, referred to as “runners,” purchasing this delivery information and stealing the packages.
Jerez, Cabrera De Leon, and Marte Tavares operated a major “fence” location out of a residential building in the Bronx, where an almost constant stream of people brought stolen devices for sale. Suriel ran a fence location in Brooklyn where he received bulk deliveries of devices stolen across the country, including by Ecker Montero, Nunez, and Diaz Dominguez, who traveled around the country stealing iPhones, iPads, Samsung phones and other electronic devices. On one occasion where FedEx security seized stolen iPhones from a shipment sent by Nunez and Diaz Dominguez, Nunez complained to FedEx customer service that his iPhones had been stolen.
Then Castillo and Peralta Tavarez were Victim-1 retail store employees who accepted bribe payments in exchange for providing confidential customer information from Victim-1’s order tracking system.
Lora Castillo, Duverge Guzman, and Vasquez Sanchez were dispatchers who sold and provided runners with delivery addresses, tracking numbers and customer names. They also directed runners to fence locations to sell the stolen devices.
Count One carries a maximum prison sentence of 5 years imprisonment and a fine of $250,000 or twice the gross amount of gain or loss resulting from the offense. Count Two carries a maximum prison sentence of 20 years’ imprisonment and a fine of $250,000 or twice the gross amount of gain or loss resulting from the offense. Counts Three and Four each carry a maximum prison sentence of 10 years’ imprisonment and a fine of $250,000 or twice the gross amount of gain or loss resulting from the offense.
“These defendants are alleged to have worked together as part of an international ring to steal thousands of expensive electronic devices, which caused millions of dollars of losses to the victims. They are alleged to have done so by harnessing technology through the use of computer scripts which gave them access to shipping information, including individuals’ names and their home addresses. My office will continue to work with our law enforcement partners to pursue these types of criminals no matter where in the world they are and seek justice for their victims.”
Acting United States Attorney Vikas Khanna
“As alleged, the defendants, both here and abroad, victimized American customers and businesses alike by targeting, tracking, and stealing their valuable electronic shipments. The new-age ‘porch pirates,’ these accused criminals tailored their alleged scheme to the modern times, but were stopped short of doing so successfully. HSI New York and our law enforcement partners continue to adapt as brazen bad actors relentlessly try — and fail — to find new illicit money-making methods. I thank HSI Newark, the NYPD, the U.S. Attorney’s Office for the District of New Jersey, the FBI, and our many counterparts for their unified and unwavering support,” stated Homeland Security Investigations (“HSI”), New York Field Office Acting Special Agent in Charge Michael Alfonso.
“These alleged members of this international crime ring traveled the country stealing goods, for monetary profit; compromising customers’ privacy and hijacking the cellular providers’ business flow.” FBI Acting Special Agent in Charge Terence G. Reilly warns that “No matter how elaborate or invasive a criminal ring may be, we will break the chain of criminality and bring the perpetrators to justice.
Acting U.S. Attorney Khanna credited special agents of Homeland Security Investigations, New York Field Office, under the direction Acting Special Agent in Charge Michael Alfonso, the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Terence G. Reilly, the New York City Police Department under the direction of Commissioner Jessica S. Tisch, and the Union County Prosecutor’s Office under the direction of Prosecutor William Daniel and Chief Harvey Barnwell with the investigation leading to these charges.
Acting U.S. Attorney Khanna also thanked the Dominican Republic’s Procuraduría Especializada Contra los Crímenes y Delitos de Alta Tecnología (PEDATEC), (Specialized Prosecutor's Office for High Technology Crimes and Offenses) and HSI’s Newark Field Office for their collaboration in this matter.
In 2024 New Jersey experienced a surge of over 400 identified package thefts targeting cellular devices. To combat this threat, Union County Prosecutor’s Office (NJ) partnered with New Jersey State Police Real Time Crime Center North and FBI Newark to spearhead a task force of investigators from impacted jurisdictions along with federal, state, and county agencies to collaborate on emerging intelligence. Through private sector partnerships, collusive employees were identified. Prospective delivery information was also shared amongst the task force to proactively identify, surveil, and arrest individuals involved in package theft within New Jersey. The following agencies are credited with contributing:
Cranford Police Department, Sparta Police Department, Moorestown Police Department, Barnegat Police Department, Paterson Police Department, Belleville Police Department, Department of Homeland Security-U.S. Customs and Border Protection, Department of Homeland Security, Immigration and Customs Enforcement-Enforcement and Removal Operations, Port Authority Police Department, Edison Police Department, Woodbridge Police Department, Rahway Police Department, Elizabeth Police Department, Kenilworth Police Department, Plainfield Police Department, Westfield Police Department, Summit Police Department, Linden Police Department, Scotch Plains Police Department, Berkeley Heights Police Department, Union County Police Department, Mountainside Police Department, Hillside Police Department, Fanwood Police Department, Clark Police Department, New Providence Police Department, Roselle Police Department, Roselle Park Police Department, Springfield Police Department, Union Police Department, Wayne Police Department, South Amboy Police Department, Brick Police Department, Wyckoff Police Department, Rutherford Police Department, Carlstadt Police Department, Oakland Police Department, Glen Rock Police Department, Fort Lee Police Department, Montvale Police Department, Little Falls Police Department, Wallington Police Department, Englewood Police Department, Leonia Police Department, Bloomfield Police Department, Fair Lawn Police Department, Closter Police Department, Verona Police Department, Elmwood Park Police Department, Clifton Police Department, Woodcliff Lakes Police Department, Cresskill Police Department, Palisades Park Police Department, Hillsdale Police Department, Franklin Lakes Police Department, Warren Township Police Department, Caldwell Police Department, Fairview Police Department, New Milford Police Department, Bergenfield Police Department, Branchburg Police Department, Wayne Police Department, Paramus Police Department, Jersey City Police Department, Secaucus Police Department, Randolph Police Department, Teaneck Police Department, Middlesex Police Department, Montvale Police Department, Manalapan Police Department, Toms River Police Department, Riverdale Police Department, Morristown Police Department, Dover Police Department, Roxbury Police Department, Montville Police Department, Parsippany Police Department, Denville Police Department, Chatham Township Police Department, Morris County Sheriff’s Office, Passaic County Sheriff’s Office, North Brunswick Police Department, New Jersey Division of Criminal Justice, Hudson County Prosecutor’s Office, Morris County Prosecutor’s Office, Bergen County Prosecutor’s Office, Ocean County Prosecutor’s Office, Burlington County Prosecutor’s Office.
Defendants Andrickson Jerez, Edickson Lora Castillo, Luis Marte Tavares, Raimond Cabrera De Leon, Alejandro Then Castillo, Wilson Peralta Tavares, Ecker Montero Hernandez, and Joel Suriel, a/k/a “La Melma,” are scheduled to appear before Hon. José R. Almonte, U.S.M.J. this afternoon at the U.S. District Court in Newark.
The government is represented by Assistant U.S. Attorneys David E. Malagold of the Cybercrime Unit and Trevor A. Chenoweth of the OCDETF/Narcotics Unit in Newark
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
martinez.complaint.pdfNew Jersey Man Pleads Guilty to Filing A False Tax Return; Avoided Paying More Than $1 Million in TaxesRead the Press Release
NEWARK, N.J. – A New Jersey man admitted to filing a false tax return and causing more than $200,000 in tax losses for tax year 2018, Acting United States Attorney Vikas Khanna announced.
Francis Esposito, 66, of Red Bank, New Jersey, pleaded guilty before United States District Court Judge Georgette Castner in Trenton federal court today to an Information charging him with one count of filing a false tax return.
According to documents filed in this case and statements made in court:
Esposito was the sole or majority owner of numerous entities. For tax years 2015 through 2018, Esposito derived certain income through these entities that he failed to report on his Form 1040.
For tax year 2018, Esposito had approximately $719,272 of unreported income, which resulted in a tax loss of approximately $216,635. For tax year 2017, Esposito had approximately $940,978 of unreported income, which resulted in a tax loss of approximately $383,806. For tax year 2016, Esposito had approximately $746,886 of unreported income, which resulted in a tax loss of approximately $304,640. For tax year 2015, Esposito had approximately $589,929 of unreported income, which resulted in a tax loss of approximately $244,291. In total, Esposito’s unreported income resulted in a tax loss of approximately $1,149,372.
The filing a false tax return charge has a maximum term of three years, and a maximum fine of $250,000 or twice the gain or loss resulting from the offense.
Acting United States Attorney Khanna credited special agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark.
The government is represented by Assistant U.S. Attorneys Vinay Limbachia and Andrew Kogan of the Cybercrime Unit in Newark.
esposito.information.pdf
Three Men Plead Guilty in Bribery and Fraud Investigation at Newark AirportRead the Press Release
TRENTON, N.J. – Three men have pleaded guilty in connection with a bribery and fraud investigation pertaining to business at Newark Liberty International Airport (“Newark Airport”), Caroline Sadlowski, Attorney for the United States, announced.
Edward Dolphin, 65, of Tomball, Texas, pleaded guilty on February 19, 2025, before U.S. District Judge Quraishi in Trenton federal court, to an Information charging him with conspiracy to commit honest services wire fraud. James Wajda, 59, of Cement City, Michigan, pleaded guilty on February 19, 2025, before District Judge Quraishi, to an Information charging him with conspiracy to commit wire fraud. Ronald Delucia, 70, of Wayne, New Jersey pleaded guilty today before District Judge Quraishi to a two-count Information charging conspiracy to commit honest services wire fraud (Count One) and conspiracy to commit wire fraud (Count Two).
According to documents filed in this case and statements made in court:
Dolphin was an employee of an airline that operated at Newark Airport. From at least as early as 2014 through in or about April 2017, he was an Airport Operations Hub Vendor Manager, and from in or about April 2017 through in or about November 2022, he was a Manger of Hub Business Partners. In his positions at the airline, Dolphin was able to influence which companies would be awarded certain contracts. Dolphin traded this influence for bribes and kickbacks. For example, Dolphin received bribes from Delucia, who was Chief Operating Officer and later Chief Executive Officer of a company that provided a range of services to airlines at Newark Airport, including the airline for which Dolphin worked. Delucia’s company paid Dolphin up to $31,500 per month, totaling $1 million, in exchange for Dolphin’s assistance in securing work for Delucia’s company. In addition, Dolphin received approximately $70,000 from another vendor in exchange for Dolphin’s influence in the process of awarding a busing contract. Dolphin received approximately $278,000 from another vendor in exchange for his influence in the process of awarding a snow removal contract. Finally, Dolphin received approximately $262,000 in exchange for his influence in the process of awarding an aircraft cleaning contract. In total, Dolphin received over $1.6 million in bribes and kickbacks.
Wajda was the Chief Operating Officer for a Des Plaines, Illinois based company that provided various services to an airline at Newark Airport, including cabin cleaning services. In or about December 2021, the company had a contract with the airline to load provisions onto the airline’s planes. In or about March 2022, Wajda conspired with Delucia, agreeing that Delucia’s company would invoice Wajda’s company for a “dispatcher” to assist in the transportation of the provisions, as if Wajda’s company had subcontracted Delucia’s company to assist in dispatching the trucks transporting provisions to the aircraft. Delucia’s company then fraudulently invoiced Wajda’s company for work that Delucia’s company did not in fact provide, and Wajda’s company paid the invoices. Delucia then kicked back a portion of the fraudulently obtained funds to Wajda through Wajda’s personal limited liability company. Pursuant to this agreement, Delucia’s company invoiced Wajda’s company $150,000 for services that were never rendered. Wajda, in turn, received approximately $38,600 from this scheme.
In addition to pleading guilty to the conduct involving Dolphin and Wajda, Delucia also admitted his role in conduct involving Alok Saksena, Anthony Rosalli, and Lovella Rogan, who each previously pleaded guilty in this investigation. Rosalli, Saksena, and Rogan all held positions with the airline that enabled them to influence which companies the airline would award certain contracts to at Newark Airport. The defendants conspired to receive bribes and kickbacks from Delucia’s company in exchange for helping Delucia’s company obtain lucrative airline contracts at Newark Airport.
For example, in or about September 2021, Delucia’s company bid on a contract to renovate restrooms at Newark Airport. Saksena, Rosalli, and Rogan sat on the selection committee and each of them voted to award the contract to the company. In exchange for their help in obtaining the $19.7 million restroom renovation contract, and with the expectation that they would use their positions to help the company obtain future contracts, Delucia’s company agreed to pay for significant renovations at their personal residences, including renovating and building bathrooms, renovating a deck, installing floors and sheetrock, and renovating a kitchen. Delucia’s company also gave them valuable items, including electronics and jewelry. The total value of the bribes paid was approximately $539,000 to Saksena; approximately $276,000 to Rosalli; and approximately $409,000 to Rogan.
“The defendants exploited their positions within their respective companies to enrich themselves while defrauding others. Defendants’ commercial bribery and fraud corrupts the fairness of our economic system. We will hold to account those who break the law to line their own pockets.”
Attorney for the United States Caroline Sadlowski
“The schemes conceived and executed by these individuals to defraud the airline operating out of Newark Airport are reprehensible. The individuals who benefited with monetary and other high-value gain are being held responsible for the bribery and corruption they had hoped would fly under the radar,” Newark Acting Special Agent in Charge Terence G. Reilly said.
“Blatant corruption like this erodes public trust and robs honest businesses of fair opportunities,” said Port Authority Inspector General John Gay. “This case is a stark example of individuals exploiting their positions for personal gain, putting greed ahead of the public good. We’re grateful for the partnership of the U.S. Attorney’s Office and the FBI as we root out fraud, hold bad actors accountable, and protect the integrity of the systems that keep our region moving.”
Dolphin, Wajda, and Delucia each face a maximum sentence of 20 years’ imprisonment and a fine of up to $250,000 on each count. Sentencing for Dolphin is scheduled for June 24, 2025. Sentencing for Wajda is scheduled for June 24, 2025. Sentencing for Delucia is scheduled for July 1, 2025.
Attorney for the United States Caroline Sadlowski credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, investigators from the Port Authority of New York & New Jersey Office of Inspector General, under the direction of Inspector General John Gay, and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Katherine J. Calle and Francesca Liquori of the Special Prosecutions Division in Newark.
All other co-conspirators identified in the Informations are presumed innocent until proven guilty.
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Defense counsel: David Wikstrom, Esq., Counsel to Edward Dolphin
Paul Flannery, Esq., Counsel to James Wajda
Paul Faugno, Esq., Counsel to Ronald Delucia
wajda.information.pdf dolphin.information.pdf delucia.information.pdfNew York Woman Charged with Fraudulently Obtaining More Than $1,000,000Read the Press Release
NEWARK, N.J. – A New York woman has been charged with fraudulently obtaining more than $1,000,000, Acting U.S. Attorney Vikas Khanna announced.
Raena Fuller, 28, of Yaphank, New York, had her initial appearance today before U.S. Magistrate Judge José R. Almonte in Newark.
According to the Complaint:
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in or around March 2020 that was designed to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic. The CARES Act enabled the Small Business Association (“SBA”) to offer funding through the Economic Injury Disaster Loan (“EIDL”) program to business owners negatively affected by the COVID-19 pandemic.
In or around September 2021, an application was made to the SBA for an EIDL on behalf of a business. In total, the SBA provided approximately $1,200,000 in response to the application. According to a representative of the business, the business did not make the application. Fuller eventually received a portion of SBA funds. In addition, Fuller was involved in additional criminal activity concerning fraudulent checks and received additional proceeds from her criminal acts.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered to the victims of his offense.
Acting U.S. Attorney Khanna credited special agents of the Federal Bureau of Investigation, Franklin Township Resident Agency, under the direction of Acting Special Agent in Charge Terence G. Reilly, and special agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark with the investigation leading to today’s arrest.
The government is represented by Senior Trial Counsel Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: A. Charles Peruto, Jr., Philadelphia, PA
fuller.complaint.pdfArizona Man Charged with Conspiracy to Commit Bank Fraud and Theft of $1 Million in Federal Grants for HIV ProgramsRead the Press Release
NEWARK, N.J. – Yesterday, a complaint was unsealed charging an Arizona man for his role in a conspiracy to misappropriate government funds used to support low-income individuals with HIV, Acting U.S. Attorney Vikas Khanna announced.
Brent Lee, 51, of Phoenix, Arizona, was charged by complaint with one count of bank fraud conspiracy and one count of theft of government funds. Lee appeared before U.S. Magistrate Judge Deborah M. Fine in the District of Arizona.
According to documents filed in this case and statements made in court:
In January 2023, a municipality in Hudson County, New Jersey, issued five checks totaling approximately $1M to a nonprofit charitable organization. The funds for four of the checks originated from a federal grant program that funds a comprehensive system of primary medical care, medications, and essential support for low-income people with HIV. Yet, as alleged in today’s complaint, the nonprofit organization never received the checks.
Instead, as alleged, in February and March 2023, Lee conspired with others to use a fraudulent business entity to misappropriate nearly all of the funds derived from the checks. In February 2023, Lee filed articles of incorporation in Wyoming for a business entity with a name nearly identical to the nonprofit’s, and opened a bank account for that entity. From February to March 2023, the checks were deposited into that account, and Lee paid himself, a family member, and various other individuals nearly all the proceeds via cash withdrawals, cashier’s checks, and wire transfers. As a result, the bank recorded a loss of approximately $1M.
The charge of bank fraud conspiracy carries a maximum penalty of 30 years in prison and a maximum fine of $1,000,000, or twice the gross gain or loss from the offense, whichever is greatest. The charge of theft of government funds carries a maximum penalty of 10 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Khanna credited special agents and members of the FBI’s Public Corruption and Civil Rights Unit in Newark, under the direction of Acting Special Agent in Charge Terence G. Reilly, and the New Jersey Field Office of the U.S. Department of Health and Human Services’ Office of the Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, with the investigation leading to the charges and arrest.
The government is represented by Assistant U.S. Attorney Michael A. Hardin of the U.S. Attorney’s Opioid Abuse Prevention and Enforcement Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense Counsel: Jazmin Alagha, Esq.
lee.complaint.pdfLos Angeles Man Sentenced to 41 Months’ Imprisonment for Conspiring to Launder MoneyRead the Press Release
NEWARK, N.J. – A California man was sentenced today to 41 months in prison for conspiring to launder money obtained from internet-related fraud, Acting U.S. Attorney Vikas Khanna announced.
Charles Singleton, 65, of Los Angeles, California, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo, to Count One of an Indictment, which charged him with conspiracy to commit money laundering.
According to documents filed in this case and statements made in court:
From September 2018 to August 2020, Singleton worked with conspirators to launder money obtained through business email compromises, which is a method of wire fraud often targeting businesses or individuals working on business transactions involving high-dollar wire transactions. The fraud is carried out by compromising, hacking, and/or “spoofing” legitimate email accounts through social engineering or computer intrusion techniques to cause employees of a target company, or other individuals involved in legitimate business transactions, to conduct unauthorized transfers of funds, most often to accounts controlled by the fraud perpetrators.
Singleton opened several business bank accounts in the names of companies he controlled and received proceeds of wire fraud in those accounts. Singleton and his conspirators then withdrew and transferred money from various bank accounts and shared the bank account information. Singleton also executed at least one fraudulent contract with a conspirator for a wire of $70,000.
In addition to the prison term, Judge Arleo sentenced Singleton to three years of supervised release, ordered forfeiture of over $1.1 million constituting proceeds derived from the conspiracy, and ordered $1,469,003 in restitution to the victims.
Acting U.S. Attorney Khanna credited special agents of the FBI, Woodland Park Office, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the Economic Crimes Unit in Newark.
singleton.indictment.pdf
Leader of One of Newark’s Largest Open-Air Drug Markets and Last of 26 Defendants Sentenced to 168 Months’ ImprisonmentRead the Press Release
NEWARK, N.J. – a Newark, New Jersey man was sentenced today for his role as the leader of an expansive drug trafficking organization that distributed significant quantities of drugs and used firearms to protect their drug operation in Newark, New Jersey, Acting U.S. Attorney Vikas Khanna announced.
Shaheed Blake, a/k/a “Sha Gotti,” a/k/a “Sha,” a/k/a “Bruh,” 41, was sentenced to 168 months’ imprisonment followed by 5 years’ supervised release by U.S. District Judge Evelyn Padin in Newark, New Jersey. He was the last among his 25 co-defendants to be sentenced in the U.S. District Court for the District of New Jersey in Newark.
Blake’s 25 conspirators were previously sentenced as follows:
- Anderson Hutchinson was sentenced to 168 months’ imprisonment;
- Jabaar Blake was sentenced to 163 months’ imprisonment;
- Jason Colon was sentenced to 144 months’ imprisonment;
- Keyenn Rodgers was sentenced to 150 months’ imprisonment;
- William Teal was sentenced to 132 months’ imprisonment;
- Brian White was sentenced to 120 months’ imprisonment;
- Todd Garrett was sentenced to 84 months’ imprisonment;
- Anthony Bowens was sentenced to 88 months’ imprisonment;
- Dorrell Blake was sentenced to 84 months’ imprisonment;
- Daquan Lockhart was sentenced to 90 months’ imprisonment;
- Aldoray McClain was sentenced to 72 months’ imprisonment;
- Sharif Davis was sentenced to 72 months’ imprisonment;
- Roger Thomas was sentenced to 70 months’ imprisonment;
- Lamont Pugh was sentenced to 60 months’ imprisonment;
- David Rogers was sentenced to 60 months’ imprisonment;
- Hanif Yarrell was sentenced to 60 months’ imprisonment;
- Aaron Watson was sentenced to 60 months’ imprisonment;
- Marquise O’Neal was sentenced to 60 months’ imprisonment;
- Jaleel Metz was sentenced to 66 months’ imprisonment;
- Bernard Brown was sentenced to 60 months’ imprisonment;
- Jesse Scott was sentenced to 60 months’ imprisonment;
- Rasheem Langley was sentenced to 60 months’ imprisonment;
- Shadesasha Ford was sentenced to 60 months’ imprisonment;
- Linwood Lyles was sentenced to 42 months’ imprisonment; and
- Andrew Knox was sentenced to 30 months’ imprisonment.
This case was the result of a long-running wiretap investigation led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office and the Newark Police Department.
According to the documents filed in this case and statements made in court:
Defendants were members and associates of a Bloods-affiliated gang that called itself the “CKarter Boys,” a play on “the Carter”—the name of the drug distribution building in the 1991 film New Jack City. As Bloods members, the CKarter Boys used the letters “CK” to signify “Crip Killer,” a sign of disrespect to their rival street gang, the Crips.
The investigation revealed that the organization’s leaders—Blake and Anderson Hutchinson, a/k/a “Murda Rah”—operated a massive drug market that flooded the streets of Newark with heroin and crack cocaine 24 hours per day, seven days per week.
Blake, Hutchinson, and members of their organization sold heroin and crack cocaine to customers out of two neighboring houses near the Newark-Irvington border. These drug dens were located in the heart of a residential community, just two blocks from the Thurgood Marshall Elementary School, a public school serving children from Pre-K to Fifth Grade. On average, just one of these locations, which Blake controlled, generated approximately $10,000 per day in revenue from narcotics sales, and, on at least one occasion, revenue exceeded $13,000 in a single shift.
One of the abandoned residences was virtually impenetrable due to the organization’s efforts to fortify the structure by boarding up all doors and windows. The defendants gained access to the residence through a second-floor window by way of a ladder that conspirators then brought inside the residence. Once inside the abandoned residence, the defendants would sell heroin and crack cocaine through a small hole that was cut out on a first-floor outer wall, allowing customers to purchase narcotics in exchange for cash, similar to a restaurant’s drive-through window. In a backyard shed, the defendants stored narcotics, a communal cell phone that was used to operate the business, multiple firearms, and several boxes of ammunition.
The investigation resulted in charges against 26 defendants, including Blake, two other leaders, middlemen who assisted with transporting drugs and drug proceeds, distributors, and suppliers.
Acting U.S. Attorney Khanna credited special agents of ATF, under the direction of Special Agent in Charge L.C. Cheeks, Jr. in Newark, and members of the Newark Department of Public Safety, under the direction of Director Emanuel Miranda, with the investigation. He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey State Police, the Irvington Police Department, the Union County Prosecutor’s Office, the Belleville Police Department, the West Orange Police Department, the Livingston Police Department, the Nutley Police Department, the Orange Police Department, and the Verona Police Department.
The CKarter Boys were prosecuted as part of the Newark Violent Crime Initiative (“VCI”). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the ATF, the Federal Bureau of Investigation, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, the Essex County Correctional Facility, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Desiree Grace, Chief of the Criminal Division, and Assistant U.S. Attorneys Olta Bejleri and Jake A. Nasar of the Criminal Division in Newark.
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Political Organizer and Former President of City Council of Atlantic City Pleads Guilty to Submitting Fraudulent Mail-In BallotsRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted to the procurement, casting, and tabulation of fraudulent mail-in ballots submitted in connection with the general election held on November 8, 2022, Acting U.S. Attorney Vikas Khanna announced.
Craig Callaway, 64, a former member and President of the City Council of Atlantic City and a political organizer who assisted campaigns for elected offices in New Jersey, pleaded guilty today before Chief U.S. District Judge Renée Marie Bumb in Camden federal court to an Information charging him with depriving, defrauding, and attempting to deprive and defraud the residents of the State of New Jersey of a fair and impartially conducted election process by the fraudulent procurement, casting, and tabulation of ballots.
“The defendant admitted to depriving New Jersey residents of a fair election by participating in a scheme to cast ballots for voters who did not vote in the election. Along with our law enforcement partners, we are committed to prosecuting those who criminally seek to undermine impartially conducted elections.”
Acting U.S. Attorney Vikas Khanna
According to the documents filed in this case and statements made in court:
Beginning in or about October 2022, approximately one month before the general election held on November 8, 2022 (the “2022 General Election”), Callaway and others who were working at Callaway’s direction approached numerous individuals in Atlantic City, promising to pay them between approximately $30 and $50 to act as purported authorized messengers for voters who supposedly wished to vote by mail.
After receiving Vote-By-Mail Applications from Callaway or his subordinates, these purported messengers entered the Atlantic County Clerk’s Office carrying anywhere from one to four completed Vote-By-Mail Applications. Inside the County Clerk’s Office, as instructed by Callaway or his subordinates, these individuals provided County Clerk’s Office personnel proof of identification and signed the Vote-By-Mail Applications in the authorized messenger portion of the application before handing those signed applications to office personnel. Further, as instructed by Callaway or his subordinates, these purported messengers waited while Clerk’s Office personnel processed the applications and, if the applications were approved, provided to the purported messengers mail-in ballots for the voters listed on the applications.
Under New Jersey law, a messenger was required to deliver any mail-in ballots they received directly to the voter who requested the ballots, and certify that they would do so. However, after receiving mail-in ballots, these purported messengers left the County Clerk’s Office and handed the ballots to Callaway or his subordinates, instead of delivering the ballots to the voters.
Many of the mail-in ballots collected by Callaway or his subordinates were ultimately cast in the names of voters who have confirmed that they did not vote in the 2022 General Election—either in-person or by submitting a mail-in ballot—and that they did not authorize Callaway, his subordinates, or anyone else, to cast ballots for them in the 2022 General Election. Many of these mail-in ballots were counted towards the 2022 General Election.
Acting U.S. Attorney Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly; the FBI’s Atlantic City Resident Agency's Public Corruption Task Force, including the Atlantic County Prosecutor's Office, under the direction of Prosecutor William Reynolds; the Atlantic City Police Department, under the direction of Chief James A. Sarkos; and the New Jersey State Police, under the direction of Superintendent Colonel Patrick J. Callahan; as well as special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone; the Department of Agriculture - Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins; and the postal inspectors of the United States Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to today’s complaint.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Branch Office and Assistant U.S. Attorney James H. Graham of the Special Prosecutions Division.
Sentencing is scheduled for June 17, 2025.
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Defense counsel: Megan J. Davies, Haddonfield, New Jersey
callaway.information.pdfPhiladelphia Man Sentenced to 39 Months’ Imprisonment for Conspiracy to Burglarize Ups Warehouses; Others Previously SentencedRead the Press Release
CAMDEN, N.J. – A Philadelphia man was sentenced today on conspiracy charges related to his role in a conspiracy to burglarize approximately 55 United Parcel Service (“UPS”) warehouses across the United States, resulting in the theft of over $1.6 million worth of merchandise, Acting U.S. Attorney Vikas Khanna announced.
Aboudramane Karamoko, 21, of Philadelphia, Pennsylvania, was sentenced to 39 months’ imprisonment followed by 3 years’ supervised release before Chief U.S. District Judge Renée Bumb in Camden, New Jersey.
Three other defendants, all of Philadelphia, Pennsylvania, were each sentenced previously before Chief Judge Bumb. Specifically, Sekou Fofanah, 20, was sentenced to 24 months’ imprisonment followed by three years’ supervised release; Shamaire Brown, 19, was sentenced to 24 months’ imprisonment followed by 3 years’ supervised release; and Quamaire Brown, 19, was sentenced to 33 months’ imprisonment followed by 3 years’ supervised release.
As part of their sentences, all four defendants were ordered to pay restitution in the amount of $1,600,157.
According to documents filed in this case and statements made in court:
Beginning at least as early as January 2021 through at least as recently as April 2023, Sekou Fofanah, Shamaire Brown, Quamaire Brown, Aboudramane Karamoko, and others conspired to commit burglaries of UPS facilities throughout the United States, including warehouses in New Jersey, New York, Pennsylvania, Indiana, and Rhode Island, among other States. The defendants gained access to the UPS facilities by breaking the windows of the loading bay doors or by prying open the loading bay doors. Once inside, they sought parcels marked with “lithium-ion battery” warnings, which indicated that the packages contained high-value electronic devices such as a cell phones. Sekou Fofanah, Shamaire Brown, Quamaire Brown, and Aboudramane Karamoko each admitted that they participated in the burglary of at least 55 UPS facilities and stole items valued at approximately $1,600,157.00.
Acting U.S. Attorney Khanna credited special agents of the United States Department of Homeland Security, Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation. Acting U.S. Attorney Khanna also acknowledged South Brunswick Police Department, Warwick Rhode Island Police Department, Clarkstown New York Police Department, Livonia, Michigan Police Department, HSI State College, State College Police Department, New York State Police, Fulton County Sheriff’s Office, Homeland Security Investigations Philadelphia, Homeland Security Investigations Rhode Island, New Jersey State Police, Philadelphia Police Department, Pennsylvania State Police, Ohio State Highway Patrol, Taylor Police Department, Brookfield Police Department, Summit County Prosecutor’s Office, and Centre County District Attorney’s Office, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jake A. Nasar of the Health Care Fraud Unit in Newark.
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Defense counsels:
Anthony Iacullo, Esq. (for Sekou Fofanah)
Gary Mizzone, Esq. (for Quamaire Brown)
Stephen Natoli, Esq. (for Shamaire Brown)
Joel Silberman, Esq. (for Aboudramane Karamoko)
Monmouth County Man Charged with Aiming Beam of A Laser at Federal Law Enforcement AircraftRead the Press Release
NEWARK, N.J. – A Monmouth County man was charged with aiming the beam of a laser at an aircraft, Acting U.S. Attorney Vikas Khanna announced.
James M. Pedone, 27, of Colts Neck, New Jersey, was charged by complaint with knowingly aiming the beam of a laser at an aircraft in the special aircraft jurisdiction of the United States. Pedone had an initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court on February 13, 2025.
According to documents filed in this case and statements made in court:
On or about December 12, 2024, Pedone pointed the beam of a laser on three separate occasions, striking an aircraft operated by federal law enforcement personnel in or near the vicinity of Colts Neck, New Jersey, erroneously believing the aircraft to be a drone.
Knowingly aiming the beam of a laser pointer at an aircraft in the special jurisdiction of the United States carries a maximum penalty of 5 years in prison, as well as a $250,000 fine.
Acting U.S. Attorney Khanna credited special agents and Joint Terrorism Task Force Officers of the FBI Newark Joint Terrorism Task Force, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, as well as the Colts Neck Police Department, under the direction of Chief Daniel DeVito, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Vincent D. Romano of the U.S. Attorney’s Office’s National Security Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Michael Thomas, Esq.
pedone.complaint.pdfMexican Citizen Admits Conspiring to Distribute Heroin and CocaineRead the Press Release
NEWARK, NJ. – A citizen of Mexico previously extradited to the United States today admitted to conspiring to distribute heroin and cocaine, Acting U.S. Attorney Vikas Khanna announced.
Norma Flores-Fernandez, a/k/a “Norma Camarillo,” 56, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a Superseding Information charging conspiracy to distribute heroin and cocaine.
According to documents filed in this case and statements made in court:
Flores-Fernandez was part of a Guadalajara, Mexico-based drug trafficking organization that distributed kilogram quantities of narcotics, including heroin and cocaine, throughout the United States from in or around March 2018 through in or around December 2019. Flores-Fernandez acknowledged holding a leadership role in this conspiracy.
The charge to which Flores-Fernandez pleaded guilty carries a statutory mandatory minimum sentence of 5 years in prison, a maximum sentence of 40 years in prison and a fine of up to $5 million. Sentencing is scheduled for July 23, 2025.
Acting U.S. Attorney Khanna credited special agents and task force officers of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Sheila G. Lyons in Chicago, Illinois and Special Agent in Charge Cheryl Ortiz in Newark; and special agents of the Customs and Border Protection, under the direction of Director of Field Operations Lafonda Sutton-Burke in Chicago, with the investigation leading to today’s guilty plea. He also thanked special agents and task force officers with the DEA operating in Lima, Peru and Guadalajara, Mexico; Homeland Security Investigations in Chicago; and officials in Mexico for their assistance. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest of Flores-Fernandez and her extradition to the United States.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the Economic Crimes Unit in Newark.
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Defense counsel: Michael Rubas, Esq., Jersey City, NJ
flores-fernandez.superseding_information.pdfTwo Individuals Charged in Connection with Fentanyl DistributionRead the Press Release
NEWARK, N.J. – Two individuals have been charged in connection with possessing distribution quantities of fentanyl, and one of the individuals has additionally been charged with possession of a firearm with an obliterated serial number, U.S. Attorney Vikas Khanna announced.
Pablo Suruy Hernandez, 41, of Guatemala, and Giovanni Guzman, 41, of El Salvador, were charged by complaint with one count of conspiracy to distribute fentanyl, and one count of possession with intent to distribute fentanyl. Hernandez is also charged with one count of possession of a firearm with an obliterated serial number. Hernandez and Guzman appeared before U.S. Magistrate Judge Stacey D. Adams in Newark federal court on February 10, 2025, and were detained.
According to documents filed in this case and statements made in court:
In January 2025, law enforcement officials received information that Hernandez was engaged in narcotics trafficking in New Jersey. On January 16, 2025, Hernandez met with a confidential source to discuss the potential purchase of firearms, fentanyl, and cocaine. On January 21, 2025, Hernandez sold a defaced firearm to the confidential source. On February 7, 2025, Hernandez and Guzman met with the confidential source to sell 100,000 fentanyl pills. Along with the seizure of approximately eleven kilograms of fentanyl, law enforcement also recovered approximately $65,000 during a lawfully executed search of Hernandez’s residence.
The fentanyl conspiracy and distribution counts carry a mandatory minimum penalty of 10 years in prison, maximum potential penalty of life in prison, and a $10 million fine. The possession of a firearm with an obliterated serial number carries a maximum penalty of 5 years in prison and a fine of not more than $250,000.
Acting U.S. Attorney Khanna credited the Drug Enforcement Administration (DEA) New York Division’s Special Agent in Charge Frank Tarentino, and the work of New York Drug Enforcement Task Force Group T-42, which is comprised of Special Agents from the DEA and Task Force Officers from the New York City Police Department (NYPD) and the New York State Police (NYSP).
The government is represented by Assistant U.S. Attorney Ingrid Eicher of the Office’s Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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hernandez_guzman.complaint.pdfSomerset County Woman Charged with Bank RobberyRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, woman was arrested and charged with bank robbery, Acting U.S. Attorney Vikas Khanna announced today.
Ciara Brascom, 39, of Skillman, is charged by complaint with one count of bank robbery. She had her initial appearance on February 11, 2025, before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.
According to documents filed in this case and statements made in court:
On July 28, 2024, Brascom entered a bank in Princeton and demanded cash from a bank teller, while holding what appeared to be a black handgun. During the robbery, Brascom threatened that she would use the gun if the bank’s alarm was activated. Brascom fled from the bank after taking approximately $60,500.
The charge of bank robbery carries a maximum penalty of 20 years in prison and a fine of $250,000.
Acting U.S. Attorney Vikas Khanna credited special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to the charges. He also thanked the Princeton Police Department, under the direction of Chief of Police Christopher Tash, and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Janetta D. Marbrey, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Richard G. Shephard of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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brascom.complaint.pdfSicklerville Man Admits to Conspiring to Commit Tax FraudRead the Press Release
CAMDEN, N.J. – A Sicklerville, New Jersey, man today admitted to conspiring to defraud the IRS by working with others to conceal cash wages paid to employees, Acting U.S. Attorney Vikas Khanna announced.
Chung “Alex” Lam, 46, of Sicklerville, New Jersey, pleaded guilty before U.S. District Judge Edward S. Kiel to an information charging him with one count of conspiring to defraud the United States.
According to documents filed in this case and statements made in court:
In 2018, Lam pleaded guilty in federal court to failing to pay over to the IRS payroll taxes. He received an 18-month prison sentence, which he served during parts of 2019 and 2020. Prior to serving that sentence and upon his release from custody, Lam conspired with the owners of various temporary staffing companies to defraud the IRS. The temporary staffing companies provided temporary workers businesses. As part of their agreements with their customer businesses, the temporary staffing companies were responsible for collecting and paying over to the IRS the payroll taxes due and owing on the wages paid to the temporary workers.
Lam received checks that were payments to the staffing companies for labor provided by their employees. Between the first quarter of 2018 and the second quarter of 2023, Lam used a commercial check casher to negotiate more than $4,000,000 of such checks. Lam kept a portion of the cash for personal use and caused the rest of the cash to be provided to co-conspirators to pay the temporary workers in cash. As a result, payroll taxes were not collected or paid to the IRS. Lam also filed false individual income tax returns that omitted the income he earned from his role in the conspiracy. Lam admitted that the conspiracy caused a tax loss of approximately $628,351.
The count of conspiracy to defraud the United States carries a maximum penalty of five years in prison and a fine of up to $250,000. Sentencing is scheduled for June 16, 2025.
Acting U.S. Attorney Khanna credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
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Defense counsel: John B. Brennan, Esq., of Marlton, NJ
lam.information.pdfIndiana Real Estate Developer and Property Manager Sentenced to 41 Months in Prison for Multi-Million Dollar Ponzi SchemeRead the Press Release
NEWARK, N.J. – An Indianapolis man was sentenced today to 41 months in prison today for his role in a scheme to defraud real estate investors, Acting U.S. Attorney Vikas Khanna announced.
Herbert Whalen, a/k/a “Bert Whalen,” 50, of Indianapolis, Indiana, previously pleaded guilty in Newark federal court to conspiracy to commit wire fraud for his role in a multi-million dollar real estate investment scheme that took place in Indiana and New Jersey. Judge Madeline Cox Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From August 2016 to July 2018, Whalen, who operated Oceanpointe Property Management in Indianapolis, engaged in a scheme to obtain money from real estate investors by misrepresenting and concealing the poor condition of properties managed by Oceanpointe and by creating fake leases for unoccupied Oceanpointe properties. Investors were promised that, after repairs and rehabilitations were completed, and tenants rented the properties, investors would receive copies of the leases and begin to receive rent payments as their return on investment. In reality, many Oceanpointe properties were not repaired and rehabilitated, and were not ready for occupancy. To conceal these facts from victim investors, Whalen and a conspirator directed Oceanpointe employees to draft fake leases, making it appear to investors that Oceanpointe properties were rented, when, in fact, the properties remained vacant. Whalen instructed Oceanpointe employees to place fake tenant names on leases to send to Oceanpointe investors.
Whalen and others commingled tenant rent payments and selected which investors would be paid from the pool of funds in order to silence investors who voiced concerns and evade detection of the fraud. In order to prevent investors from leaving Oceanpointe and exposing his fraudulent conduct, Whalen directed an Oceanpointe employee to create a false identity and falsely claim, on an online real estate message forum, that the Oceanpointe employee was an investor with Oceanpointe and another company, and that Oceanpointe had addressed all of the concerns regarding the investment property. These misrepresentations and others led to millions of dollars in losses to investors, which Whalen used to, among other things, fund his lifestyle.
In addition to the prison term, Judge Arleo sentenced Whalen to three years of supervised release.
Acting U.S. Attorney Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorneys Caroline Silane of the Economic Crimes Unit and Ari B. Fontecchio, Chief of the Opioid Abuse Prevention and Enforcement Unit.
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Defense counsel: John L. Tompkins, Tompkins Law, Indianapolis, IN
Amtrak Employee Admits Participating in $11 Million Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – An Amtrak employee today admitted participating in a health care fraud scheme to defraud Amtrak, Acting U.S. Attorney Vikas Khanna announced.
Anthony Saloka, 44, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From January 2019 through June 2022, Saloka and his co-conspirators engaged in a scheme to obtain cash kickbacks from health care providers in return for allowing the providers to use their personal and health insurance information to submit fraudulent claims for services that were either never provided or which were medically unnecessary. Saloka received thousands of dollars in cash kickbacks from health care providers in return for his participation in the scheme, including from Punson Figueroa, an acupuncturist, and Michael DeNicola, a podiatrist. Figueroa previously pleaded guilty to conspiracy to commit health care fraud and was sentenced on September 24, 2024 to 34 months in prison. DeNicola previously pleaded guilty on June 29, 2022 to conspiracy to commit health care fraud, among other offenses. His sentencing remains pending.
In total, the Amtrak health care plan paid over $11 million as a result of fraudulent claims associated with providers connected to the health care fraud scheme.
The health care fraud conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for June 4, 2025.
Acting U.S. Attorney Khanna credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, the Amtrak Police Department, under the direction of Chief of Police Samuel Dotson, and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jessica R. Ecker and Katherine M. Romano of the Health Care Fraud Unit in Newark.
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Defense counsel: Vincent LaPaglia, Esq.
Passaic County Man Charged with Threatening Flight Attendants on an AirplaneRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey man was arrested for threatening flight attendants and crew members during an incident in which he refused to comply with flight attendant instructions, banged on the cockpit door, and called out and threatened the captain before being escorted off the flight by law enforcement to Newark Liberty International Airport, Acting United States Attorney Vikas Khanna announced.
Luis A. Vaquero, 27, of Passaic County, New Jersey, was charged by complaint in Newark federal court with one count of interference with flight crew members and attendants by assault or intimidation. He appeared before Magistrate Judge Stacey D. Adams in Newark, New Jersey federal court, and was released.
According to documents filed in this case and statements made in court:
On February 9, 2025, shortly after taking off on a flight from Miami, Florida, Vaquero began threatening and harassing various passengers, including making threats of physical violence toward a disabled minor and mocking a group of Jewish passengers. Vaquero also threatened a flight crew member who declined to serve Vaquero alcohol after the beverage service window closed, telling her, “You better watch out, shit’s gonna happen to you.” Upon landing at Newark Liberty International Airport, flight attendants alerted law enforcement. After hearing the announcement that the airplane was awaiting the arrival of law enforcement, Vaquero forced his way to the front of the plane and began banging on the flight deck door, demanding, “I need the pilot to come outside!” When a flight attendant attempted to intervene, Vaquero yelled, “I will really break your fuckin’ jaw n***a!” Vaquero also yelled, “I wanna see that fuckin’ captain! Come outside you bitch ass n***a!” When the captain emerged, Vaquero continued to make threats to the captain while six inches from his face until law enforcement intervened.
“The defendant is charged with threatening flight crew members and passengers while traveling to Newark. We are committed to keeping the skies safe for flying and will prosecute those who criminally interfere with the professionals responsible for ensuring passenger safety.”
Acting United States Attorney Vikas Khanna
“Over the course of a 3-hour flight, we allege Vaquero lost his temper and physically harassed not only the crew and captain, but passengers, making threats of physical violence toward a disabled minor and mocking a group of Jewish passenger.” Acting Special Agent in Charge Terence G. Reilly said. “It all culminated in a terrifying attack and attempted breach of the flight deck when witnesses say he banged on the cockpit door and confronted the pilot. The harrowing flight and other similar incidents onboard airplanes recently are creating tension and fear for fliers and crew members. FBI Newark has a warning for those who think it may not be a big deal—they're breaking federal law, and they will be brought to justice.”
The charge of interfering with flight crew members and attendants carries a maximum sentence of 20 years in prison and a maximum fine of $250,000.
Acting United States Attorney Vikas Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to the charge. He also thanked the Port Authority Police Department, under the direction of Superintendent of Police Edward T. Cetnar, for its assistance.
The government is represented by Assistant United States Attorney Rachelle M. Navarro of the Bank Integrity, Money Laundering & Recovery Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Adalgiza A. Nunez, Esq., Newark, New Jersey
vaquero.complaint.pdfCamden Man Admits to Conspiring to Commit Tax FraudRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man today admitted to conspiring to defraud the IRS by concealing cash wages paid to his business’s employees, Acting U.S. Attorney Vikas Khanna announced.
Tri Anh Tieu, 53, of Camden, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn to an indictment charging him and co-defendant Andy Tran with one count of conspiring to defraud the United States.
According to documents filed in this case and statements made in court:
Tieu owned Tri States Staffing LLC, a business based in Pennsauken, New Jersey. Tri States Staffing provided temporary workers to New Jersey businesses located in Gloucester and Burlington Counties. As part of its agreement with its customer businesses, Tri States Staffing was responsible for collecting and paying over to the IRS the payroll taxes due and owing on the wages paid to the temporary workers provided by Tri States Staffing.
Between the third quarter of 2018 and the second quarter of 2022, Tri States received more than $2.5 million in payments from its customer businesses. Tieu paid Tri States’s employees in cash and failed to pay over the payroll taxes due and owing on those wages. Tieu spent at least some of the unpaid taxes on personal expenditures, including gambling. Tieu admitted that the conspiracy caused a tax loss of approximately $305,332.
The count of conspiracy to defraud the United States carries a maximum penalty of five years in prison and a fine of up to $250,000. Sentencing is scheduled for June 26, 2025.
Acting U.S. Attorney Khanna credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Yury Kruty in Philadelphia and Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
tieuandtran.indictment.pdf
Repeat Offender Sentenced to 10 Years for Possession of Child Sexual Abuse MaterialRead the Press Release
NEWARK, N.J. – A Hudson County man was sentenced to 120 months in prison for possessing images of child sexual abuse, Acting U.S. Attorney Vikas Khanna announced.
Jonathan Lattif, 46, of Jersey City, New Jersey previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an Information charging him with one count of possession of child pornography. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On March 18, 2022, Lattif possessed videos depicting sexual abuse of minors, including prepubescent children, on his mobile device. He possessed over 500 videos files and 1 photograph of child sexual abuse material.
Lattif also has a prior state conviction for possession of child pornography.
In addition to the prison term, Judge Cecchi sentenced Lattif to 10 years of supervised release.
Acting U.S. Attorney Khanna credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark; and Customs and Border Protection Officers from the Port of New York/Newark, U.S. Customs and Border Protection, Office of Field Operations New York Field Office, under the direction of Acting Port Director Jeffrey Greene, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.
Mexican National Admits to Trafficking Cocaine After Illegally Re-Entering the United States After Multiple Previous DeportationsRead the Press Release
CAMDEN, N.J. – A Mexican national admitted on Tuesday to trafficking cocaine and illegally re-entering the United States after previously sustaining an aggravated felony conviction, Acting U.S. Attorney Vikas Khanna announced.
Anastacio Santiago Chaparro, aka Arnoldo Urquidez, 41 of Mexico pleaded guilty to an indictment charging him with possession with intent to distribute cocaine and illegal reentry by a convicted felon before U.S. District Judge Edward S. Kiel in Camden federal court.
According to documents filed in this case and statements made in court:
On November 6, 2023, Santiago Chaparro was caught by law enforcement transporting a backpack that contained over 10 kilograms of cocaine. Santiago Chaparro admitted that the cocaine was intended for distribution. Additionally, Santiago Chaparro had been deported from the United States to Mexico three times and previously sustained a conviction for being an illegal alien in possession of a firearm, an aggravated felony.
The charge of possession with intent to distribute cocaine carries a maximum penalty of 20 years in prison and a fine of up to $1,000,000. The charge of illegal reentry by a convicted felon carries a maximum penalty of 20 years in prison and a fine of up to $250,000.
Acting U.S. Attorney Khanna credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky Patel, and from the Drug Enforcement Administration New York, under the direction of Frank A. Tarentino, with the investigation.
The government is represented by Assistant U.S. Attorney Chana Y. Zuckier of the Bank Integrity, Money Laundering and Recovery Unit in Newark. Sentencing is scheduled for June 9, 2025, at 11:00 a.m.
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Defense counsel: Victor A. Afanador
chaparro.indictment.pdfGang Member Sentenced to 144 Months in Prison for Racketeering and Drug ChargesRead the Press Release
NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang was sentenced on Wednesday to 144 months in prison for his role in a racketeering conspiracy and the sale of cocaine, Acting U.S. Attorney Vikas Khanna announced.
Kareem Green, a/k/a “Try Me”(“Green”), 32, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations (“RICO”) conspiracy and a separate indictment charging him with distribution of cocaine. Judge Wigenton imposed the sentence on February 5, 2025 in Newark federal court.
According to documents filed in this case and statements made in court:
From 2015 through Sept. 22, 2022, Green was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere. On April 5, 2021, Green worked with other members of the gang to shoot a victim. On April 11, 2021, Green worked with other members of the gang to shoot another victim. On March 5, 2021, Green worked with another member of the gang to distribute cocaine.
In addition to the prison term, Judge Wigenton sentenced Green to three years of supervised release.
Acting U.S. Attorney Khanna credited special agents of the DEA, under the direction of Special Agent in Charge Cheryl Ortiz; the Internal Revenue Service, Criminal Investigation (IRS-CI), under the direction of Special Agent in Charge Jenifer Piovesan, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge L.C. Cheeks, Jr., as well as investigators of the U.S. Marshals Service, under Marshal Juan Mattos’ direction; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers, the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly, the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda, Sr., the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio, the Essex County Sheriff’s Office, under Sheriff Amir D. Jones’ direction, the East Orange Police Department, under the direction of Chief Phyllis L. Bindi, the Elizabeth Police Department, under the direction of Police Director Earl J. Graves, the Edison Police Department, under the direction of Chief of Police Tom Bryan, the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel, the Spotswood Police Department, under the direction of Chief Philip Corbisiero, and the North Carolina State Bureau of Investigation Fugitive and Missing Person Task Force, which includes members of the FBI, for the investigations leading to the charges in the Rollin 60’s Neighborhood Crips investigation.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the Department of Homeland Security – Homeland Security Investigations, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division and Assistant U.S. Attorney Jake A. Nasar of the Health Care Fraud Unit.
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Defense Counsel:
William Strazza, Esq., Chester, NJ
Eleven Members and Associates of Paterson Based Gang Known as “100k” Indicted for Racketeering for Their Roles in A Murder, Three Shootings, Two Robberies, Drug Trafficking Activities, Bank Fraud, and Other CrimesRead the Press Release
NEWARK, N.J. – Eleven members of the Paterson based neighborhood street gang known as “100k” were indicted for their roles in a violent racketeering conspiracy, Acting U.S. Attorney Vikas Khanna announced today.
The Indictment charges Jasun Allah, a/k/a “Rackz,” 21, of Paterson (“J.Allah”); Christopher Thomas, a/k/a “CJ,” 27, of Hackensack; Michael Davis, a/k/a “Baby 3,” 27, of Paterson; Jazmeir Reyes, a/k/a “Baby Joe,” a/k/a “Joe,” 19, of Paterson; Kyzeik Robinson, a/k/a “Doo Doo,” a/k/a “King Sparks,” a/k/a “Sparks,” 19, of Paterson; Jacim Pitts, a/k/a “Jefe,” 24, of Paterson; Born Allah, a/k/a “Freedom,” 23, of Paterson (“B.Allah”); Elijah Rubio, a/k/a “Lottery,” 20, of Paterson; Trasean Short, a/k/a “Hound,” 19, of Elmwood Park; Elijah Byrd, a/k/a “CEO,” 19, of Paterson; and Quincy Franklin, a/k/a “Double O,” 27, of Paterson with one count of conspiracy to violate the Racketeer Influenced Corrupt Organizations statute (“RICO”), in violation of Title 18, United States Code, Section 1962(d) (“RICO conspiracy”). The Indictment also incorporates charges connected to a drug conspiracy involving Reyes, Davis, Robinson, and Pitts and the attempted armed robbery of a postal inspector by Reyes, which were previously charged on complaint.
These charges are the result of a long-running investigation coordinated between the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Jersey State Police, the United States Postal Inspection Service, and the Passaic County Sheriff’s Office, among other law enforcement agencies.
According to documents filed in this case and statements made in court:
J.Allah, Thomas, Davis, Reyes, Robinson, Pitts, B.Allah, Rubio, Short, Byrd, and Franklin are all members and associates of the neighborhood based street gang known as “100k,” which operates in the area of North Main Street and Jefferson Street in Paterson, New Jersey (the “100k Enterprise”). Since in or around January 2022, these members and associates of the 100k Enterprise have engaged in numerous criminal acts in furtherance of their gang, including murder, shootings, robberies, drug trafficking, and bank and wire fraud.
Since the gangs founding in 2016, members and associates of the 100k Enterprise have engaged in acts of violence against members of rival gangs, such as their primary rival, “the Blockboyz,” which operates out of the Presidential Tower Housing Complex in Paterson, among other rival gangs, such as “4k,” which operates in the area of Rosa Parks Boulevard near Lyon Street, Keen Street, and Mercer Street, also in Paterson.
Several of these acts of violence are charged in the Superseding Indictment. Specifically, on or about October 1, 2023, in retaliation for the death of a high ranking member of the 100k Enterprise, J.Allah, Thomas, Davis, and other members and associates of the 100k Enterprise shot and killed Victim-2, in territory controlled by the Blockboyz.
On or about May 27, 2024, Pitts and other members and associates of the 100k Enterprise shot and injured Victim-3, a member of the rival gang “4k.”
On or about October 3, 2024, Short exchanged fire with Victim-4 in territory controlled by the 100k Enterprise. Weeks later, on or about November 17, 2024, Short shot and injured Victim-5, a member of the Blockboyz, in territory controlled by the Blockboyz, and Byrd acted as the driver in that November shooting.
The defendants raised money for themselves and the 100k Enterprise by engaging in robberies, drug trafficking, and bank fraud and other financial schemes. Two such robberies are charged in the Indictment, including the armed robbery of a commercial marijuana store on or about January 13, 2022 by Reyes, B.Allah, Short, Rubio, and others; and the attempted armed robbery of Victim-1, a United States Postal Service employee, on or about July 28, 2023 by Reyes, who tried to obtain an arrow key from the victim. This arrow key would have allowed members of the 100k Enterprise to gain access to United States Postal Service mailboxes within a certain geographic area or postal route.
The gang’s drug trafficking activities were extensive, with investigators conducting 16 controlled buys with Reyes, Robinson, Davis, and Pitts by utilizing undercover officers and observing countless more drug deals committed by the defendants within and around the territory of Paterson controlled by the 100k Enterprise through physical surveillance and review of cell phone records and social media accounts controlled by the defendants.
The charge of RICO conspiracy in the Indictment carries a maximum statutory penalty of life in prison as to J.Allah, Thomas, and Davis, and a maximum statutory penalty of 20 years in prison as to Reyes, Robinson, Pitts, B.Allah, Rubio, Short, Byrd, and Franklin.
The count of conspiracy to distribute controlled substances charged in the Indictment against Reyes, Robinson, Davis, and Pitts carries a mandatory minimum term of 5 years in prison and a maximum penalty of 40 years in prison and a fine of at least $5 million. On each of the counts of distribution and possession with intent to distribute controlled substances, Reyes, Robinson, Davis, and Pitts face a maximum penalty of 20 years in prison and a maximum fine of $1 million.
On each of the counts of attempted Hobbs Act robbery and assaulting or impeding certain United States officers or employees, Reyes faces a maximum penalty of 20 years’ imprisonment and up to a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. On the count of brandishing a firearm in connection with a crime of violence, Reyes faces a mandatory minimum term of 7 years and a maximum term of life imprisonment, which must run consecutively to any other prison sentence imposed, and a fine of up to $250,000.
Acting U.S. Attorney Khanna credited law enforcement members with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; the New Jersey State Police, Gangs and Organized Crime North Unit, under the direction of Col. Patrick J. Callahan; the United States Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen; the Passaic County Sheriff’s Office, under the direction of Sheriff Thomas Adamo; the Paterson Police Department, under the direction of Officer In Charge Patrick Murray; the Bergen County Sheriff’s Office under the direction of Sheriff Anthony Cureton; the Passaic County Prosecutor’s Office under the direction of Prosecutor Camelia Valdes; and the Bergen County Prosecutor’s Office under the direction of Prosecutor Mark Musella with the investigation leading to today’s charges.
This case is part of the Paterson Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Bergen County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Jake A. Nasar of the Criminal Division in Newark.
allahetal.sindictment.pdf
Dominican National Sentenced to 60 Months in Prison for Role in Operating Fentanyl Drug MillRead the Press Release
NEWARK, N.J. – A Dominican national was sentenced to 60 months in prison for his role in a conspiracy to distribute and transport bulk quantities of fentanyl into northern New Jersey communities from a drug mill located in the Philadelphia, Pennsylvania area, Acting U.S. Attorney Vikas Khanna announced.
Hector Luiz De La Cruz Nunez, 32, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to a two-count information charging him with one count of conspiracy to distribute and possess with intent to distribute fentanyl, and one count of possession with intent to distribute fentanyl.
According to documents filed in this case and statements made in court:
In February 2022, Nunez and his co-conspirators operated a private residence, commonly referred to as a drug mill, in which he and his co-conspirators produced large quantities of bulk fentanyl for redistribution. In early March 2022 following a car stop, law enforcement recovered nearly six kilograms of fentanyl packaged in approximately 400 individual bricks concealed within a hidden compartment inside of the vehicle that Nunez was driving.
In addition to the prison term, Judge Hayden sentenced Nunez to three years of supervised release.
Nunez’s co-conspirators, Emmanuel F. Almonte Mejia, 40, and Loanny F. Duran Hiciano, 37, have both pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl. Mejia and Hiciano await sentencing.
Acting U.S. Attorney Khanna credited special agents of the U.S. Department of Homeland Security Investigations (HSI) Newark, under the direction of Special Agent in Charge Ricky Patel, HSI Philadelphia, under the direction of Special Agent in Charge Edward Owens, and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation that led to the sentencing.
The government is represented by Assistant U.S. Attorney Vincent D. Romano of the Criminal Division in Newark.
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Defense counsel: Justin Capek
New York Man Sentenced to 84 Months in Prison for Conspiring to Engage in Multimillion Dollar Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 84 months in prison for conspiring to commit wire fraud, Acting U.S. Attorney Vikas Khanna announced.
Terrell Fuller, 34, of Baldwin, New York, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with conspiring to commit wire fraud.
According to documents filed in the case and statements made in court:
Fuller and his co-conspirators submitted a fraudulent application to the Small Business Administration, which caused the SBA to provide them with approximately $1,200,000. In addition, Fuller and his co-conspirators opened bank accounts in the names of various entities and individuals, deposited illegally obtained or fraudulent checks into those accounts, and then withdrew and attempted to withdraw money from the accounts. Further, Fuller, using stolen personal identifying information, fraudulently rented locations to live in New York and failed to pay more than $400,000 in rent and fees for those locations. Through the conspiracy, Fuller and his co-conspirators obtained more than $2,000,000 in money and property through their fraudulent actions.
In addition to the prison term, Judge Chesler sentenced Fuller to 3 years of supervised release and $2,289,816.06 in restitution.
Acting U.S. Attorney Khanna credited special agents of the Federal Bureau of Investigation, Franklin Township Resident Agency, under the direction of Acting Special Agent in Charge Terence G. Reilly, and special agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the Cybercrime Unit in Newark.
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Defense counsel: Scott Leemon, New York City, New York
Middlesex County Man Charged with Participating in Multimillion-Dollar Overbilling Scheme; Two Co-Conspirators Have Pleaded GuiltyRead the Press Release
NEWARK, N.J. – A Middlesex County man was charged with participating in a conspiracy to defraud Williams-Sonoma, Inc. and another national transportation and logistics company through overbilling for trucking services, Acting U.S. Attorney Vikas Khanna announced.
Jose Pena, 46, of Monroe Township, New Jersey was charged by complaint with one count of conspiracy to commit wire fraud. He appeared today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court.
According to documents filed in this case and statements made in court:
Pena owned and operated a trucking firm that subcontracted with a national transportation and logistics company (referred to in the Complaint as “Company-1”) to provide delivery services in the New Jersey/New York metropolitan area for Williams-Sonoma, Inc., a publicly-traded home goods company, out of Williams-Sonoma’s distribution center in Cranbury, New Jersey. From approximately June 2018 through September 2020, Pena conspired with others who worked at Williams-Sonoma and Company-1, among others, to overbill the victim companies for over $3.6 million in fabricated deliveries and services that Pena and his firm did not complete. In exchange for his co-conspirators’ participation in the scheme, Pena paid to them lavish kickbacks, including cash, checks, a sport utility vehicle, and a Rolex watch.
After an internal audit revealed the fraud and the victim companies no longer wished to contract with Pena, Pena hid his interest in another trucking firm that contracted directly with Williams-Sonoma in September 2021. Pena continued to work with a subset of his co-conspirators to overbill Williams-Sonoma for fabricated deliveries through June 2024, resulting in nearly $1 million in additional losses to Williams-Sonoma.
Two of Pena’s co-conspirators, Raymond DeLeon and Cintia Elaxcar, pleaded guilty last month for participating in this conspiracy in their capacities as former employees of Company-1.
Raymond DeLeon, 38, of Ridgefield Park, New Jersey, pleaded guilty on January 3, 2025 before Judge Zahid N. Quraishi in Trenton federal court to one count of conspiracy to commit wire fraud. DeLeon worked as an operations general manager for Company-1 and received over $200,000 in kickback payments in exchange for his role in causing the fraudulent billing requests to be submitted to the victim companies.
Cintia Elaxcar, 40, of Perth Amboy, New Jersey, pleaded guilty on January 15, 2025 before Judge Quraishi in Trenton federal court to one count of conspiracy to commit wire fraud. Elaxcar worked as a billing and dispatch manager for Company-1 and received over $435,000 in kickback payments in exchange for her role in causing the fraudulent billing requests to be submitted to the victim companies.
The charge of conspiracy to commit wire fraud – which Pena is charged with and which DeLeon and Elaxcar have each pleaded guilty to – carries a maximum penalty of twenty years in prison. It also carries a fine of up to $250,000 or twice the gain or loss from the offense, whichever is greatest.
Acting U.S. Attorney Khanna credited special agents of the United States Secret Service, under the direction of Special Agent in Charge Aaron Hatley, with the investigation.
The government is represented by Assistant U.S. Attorney Joseph Stern of the Opioid Abuse Prevention and Enforcement Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel:
Michael Critchley, Esq. for Pena
Nicholas Moschella, Esq. for DeLeon
Maria Noto, Esq. for Elaxcar
pena.complaint.pdf elaxcar.information.pdf deleon.information.pdfPharmacy LLC Agrees to Resolve False Claims Act Allegations of Billing for Drugs Not DispensedRead the Press Release
NEWARK, N.J. – A Plus Pharmacy LLC, the former owner of A Plus Pharmacy, a pharmacy located in Manalapan, New Jersey, has agreed to pay $350,000 to resolve allegations that it violated the False Claims Act by knowingly billing a federal health care program for certain medications that it never dispensed, Acting U.S. Attorney Vikas Khanna announced today.
According to the contentions of the United States in the settlement agreement:
The United States alleged that, from January 1, 2015, through February 27, 2023, A Plus Pharmacy LLC caused the submission of claims for reimbursement to the Medicare Part D Program for certain drugs that were never dispensed to beneficiaries. The government contends that inventory records showed that A Plus Pharmacy LLC did not purchase enough of these medications from wholesalers to fill the prescriptions billed to the federal health care program.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, with assistance from the U.S. Marshals Service.
The government is represented by Assistant U.S. Attorneys Robert Toll and Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Jennifer Cihon in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims settled by the agreement are allegations only, and there has been no admission of liability.
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a_plus_pharmacy.settlement_agreement.pdfConvicted Felon Admits Drug Trafficking Offense and Possessing Firearm in Furtherance of Drug TraffickingRead the Press Release
NEWARK, N.J. – An East Orange, New Jersey man today admitted possessing quantities of fentanyl, heroin and cocaine he intended to distribute, and possessing a firearm in furtherance of the drug trafficking crime, Acting U.S. Attorney Vikas Khanna announced.
Ibraheem Muhammad, 41, of East Orange, New Jersey pleaded guilty before U.S. District Judge Brian R. Martinotti to an Indictment charging him with one count of possession of a firearm and ammunition by a convicted felon, one count of possessing with intent to distribute controlled substances, and one count of possessing a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
Law enforcement investigated Muhammad for his drug distribution from an apartment in East Orange (the “Residence”). On May 9, 2022, Muhammad was arrested on a warrant after law enforcement saw him exit the Residence and engage in a suspected drug transaction. He was caught in possession of numerous envelopes of suspected heroin and keys to the Residence. A subsequent search of the Residence revealed Muhammad to be in possession of controlled substances that subsequently lab tested positive for heroin, cocaine, and fentanyl, and various glassine envelopes and other paraphernalia used for packaging drugs. Law enforcement also recovered approximately $14,000 in cash; a Girsan 9mm semi-automatic handgun, loaded with fourteen (14) rounds of 9mm ammunition; and an additional fifteen (15) rounds of 9mm ammunition.
The drug charge carries a maximum potential penalty of 20 years in prison and a maximum fine of $1 million. The felon in possession of a firearm charge carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000. The possession of a firearm in furtherance of a drug trafficking crime charge carries a minimum sentence of 5 years in prison, a maximum potential penalty of life in prison, and a maximum fine of $250,000. Sentencing is scheduled for June 24, 2025.
Acting U.S. Attorney Khanna credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge L.C. Cheeks Jr., Newark Field Division; and the East Orange Police Department, under the direction of Public Safety Director Maurice Boyd.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the Economic Crimes Unit in Newark.
muhammad.indictment.pdf