District of New Jersey
Press releases recorded for this federal judicial district.
Two Brooklyn, New York, Men Sentenced to Prison for Traveling to New Jersey to Violently Extort Divorce Consent from Recalcitrant HusbandRead the Press Release
TRENTON, N.J. – Two Brooklyn, New York, men were each sentenced today to more than three and a half years in prison for crossing state lines as part of a plan to violently coerce a recalcitrant husband to grant his wife a religious divorce, U.S. Attorney Paul J. Fishman announced.
David Hellman, 33, and Simcha Bulmash, 32, were sentenced to 44 and 48 months in prison, respectively. Both defendants previously pleaded guilty before U.S. District Judge Freda L. Wolfson to separate informations charging them each with one count of traveling in interstate commerce to commit extortion. Judge Wolfson imposed both sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Oct. 9, 2013, Hellman, Bulmash and a group of conspirators – including Avrohom Goldstein, 36, Moshe Goldstein, 32, Jay Goldstein, 61, Binyamin Stimler, 40, Sholom Shuchat, 31, all of Brooklyn, and Ariel Potash, 42, of Monsey, New York – traveled from New York to a warehouse in Edison, New Jersey, with the intent of forcing a Jewish husband to give his wife a “get,” a document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce.
Hellman and Bulmash admitted that when they arrived at the warehouse, the group met with an individual who, unbeknownst to them, was an undercover FBI agent posing as the husband’s brother in law. Hellman and Bulmash admitted that they discussed a plan and prepared to confine, restrain and threaten the victim.
The group was then arrested by a team of FBI agents and charged by criminal complaint – along with rabbis Mendel Epstein, 70, of Lakewood, New Jersey, and Martin Wolmark, 57, of Monsey – in connection with the scheme.
Hellman and Bulmash also admitted that on Aug. 22, 2011, they went to a residence in Brooklyn where they restrained, assaulted and injured another recalcitrant husband and his roommate in an attempt to extort a divorce from the husband.
In addition to the prison term, Judge Wolfson sentenced both Hellman and Bulmash to serve two years of supervised release.
Avrohom Goldstein, Moshe Goldstein, Potash and Shuchat each pleaded guilty to one count of traveling in interstate commerce to commit extortion. Moshe Goldstein was sentenced yesterday to four years in prison. Avrohom Goldstein, Potash and Shuchat are scheduled for sentencing Nov. 19, 2015. Wolmark, who pleaded guilty to conspiracy to travel in interstate commerce to commit extortion, is scheduled for sentencing on Dec. 14, 2015.
Epstein, Jay Goldstein and Stimler were all convicted at trial on April 21, 2015. Epstein, who was convicted of conspiracy to commit kidnapping, is scheduled for sentencing on Dec. 15, 2015. Stimler and Jay Goldstein, both convicted of conspiracy to commit kidnapping and attempted kidnapping, are scheduled for sentencing on Dec. 15, 2015 and Dec. 16, 2015, respectively.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s sentencing. He also thanked the Lakewood, New Jersey, Police Department for its role.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
Defense counsel:
Hellman: Michael Bachner Esq., New York
Bulmash: Robert C. Gottlieb Esq., New York
Morris County, New Jersey, Couple Admit Falsifying Thousands of Medical Diagnostic Reports as Part of $4.3 Million Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – A Rockaway, New Jersey, husband and wife who owned a mobile diagnostic testing company today admitted receiving more than $4.3 million from Medicare and private insurance companies for diagnostic testing and reports that were never interpreted by a licensed physician, U.S. Attorney Paul J. Fishman announced.
Nita K. Patel, 53, and Kirtish N. Patel, 53, pleaded guilty today before U.S. District Judge William H. Walls in Newark federal court to separate informations charging them each with one count of health care fraud.
According to the documents filed in the case and statements made in Court:
From 2006 through June 2014, Nita and Kirtish Patel owned and operated Biosound Medical Services Inc. and Heart Solutions (collectively, “Biosound”), of Parsippany, New Jersey, which were mobile diagnostic companies and approved Medicare providers. The companies provided mobile diagnostic testing, including ultrasounds, echocardiograms and nerve conduction studies that were used to diagnose heart defects, blood clots, abdominal aortic aneurysms and other serious medical conditions.
Biosound technicians would travel to the office of a primary care physician in the New York and New Jersey area to conduct diagnostic testing. Biosound was responsible for sending the tests to a “reading physician” – an appropriate specialist who would interpret the results. After the reading physician prepared a report, Biosound was responsible for providing it to the referring physician. Biosound was paid millions of dollars by Medicare and other payors for the diagnostic testing, the reading physician’s interpretation of the results and the reports.
Kirtish Patel admitted to, from October 2008 through June 2014, fraudulently interpreting and writing diagnostic reports produced by Biosound despite having no medical license and knowing that the reports would be used by the referring physicians to make important patient treatment decisions. Nita Patel admitted assisting her husband in forging physician signatures on the fraudulently produced reports to make them appear legitimate. Nita and Kirtish Patel also admitted falsely representing to Medicare that the neurological testing performed by Biosound was being supervised by a licensed neurologist.
According to the informations, more than half of the diagnostic reports generated by Biosound between October 2008 and June 2014 were never actually reviewed or interpreted by a physician. Nita and Kirtish Patel were paid more than $4,386,133.75 by Medicare and private insurance companies for the fraudulent reports, which they used for personal expenses, including multiple residences and luxury vehicles.
The health care fraud charge to which Nita and Kirtish Patel pleaded guilty 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. Sentencing for both defendants is scheduled for March 15, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s pleas.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Health Care and Government Fraud Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $640 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
Defense counsel:
Kirtish Patel: Anthony Fusco Jr. Esq., Passaic, New Jersey
Nita Patel: Frank Arleo Esq., West Orange, New Jersey
California Woman Admits Scheme to Steal 94,000 Debit and Credit Cards from Michaels’ Stores in 19 StatesRead the Press Release
CAMDEN, N.J. – A California woman today admitted her role in a large-scale conspiracy to steal 94,000 credit and debit cards from customers at approximately 80 Michaels’ Stores in 19 states and to then use that information to make fraudulent withdrawals from the bank accounts of those customers, U.S. Attorney Paul J. Fishman announced.
Crystal Banuelos, 28, of Bloomington, California, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to Count One of the indictment, conspiracy to commit bank fraud, and Count Three of the indictment, aggravated identity theft.
According to documents filed in this case and statements made in court:
The conspirators installed devices that acquired customers’ bank account and personal identification number (PIN) information on point of sale (POS) terminals at stores operated by Michaels. The stolen account information was used to produce counterfeit bank cards, which were used with the stolen PINs to withdraw funds from the compromised bank accounts.
The conspirators allegedly replaced 88 POS terminals in 80 different stores operated by Michaels across 19 states, including New Jersey, with counterfeit POS devices. Each counterfeit device was equipped with wireless technology, which the conspirators used to retrieve the stolen information. From February 2011 to April 2011, conspirators stole approximately 94,000 debit and credit card account numbers.
From April 2011 to May 2011, Banuelos, her co-defendant, Angel Angulo, and others obtained counterfeit cards with the corresponding PIN numbers written on them from other conspirators. They used the cards and PIN numbers to withdraw money using automated teller machines (ATMs) from hundreds of bank accounts. On May 14, 2011, Banuelos and Angulo possessed 179 counterfeit cards in New Jersey.
The charge of conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. The charge of aggravated identity theft carries a mandatory penalty of two years in prison, to be served consecutively to any other sentence. Banuelos also consented to an order of forfeiture in the amount of $480,300, representing the proceeds of the offense. Her sentencing is scheduled for Feb. 23, 2016.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge David Beach, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Edward Sapone Esq., New York
Union County, New Jersey, Man Sentenced to 22 Years in Prison for Robbing Multiple New Jersey Banks at GunpointRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, man was sentenced today to 22 years in prison for robbing seven New Jersey banks at gunpoint and attempting to rob an eighth bank at the time of his arrest on July 30, 2012, U.S. Attorney Paul J. Fishman announced.
Claude Williams, 64, previously pleaded guilty before U.S. District Judge Kevin McNulty to Count One, Count Fourteen and Count Fifteen of an indictment charging him with conspiracy to commit bank robbery, bank robbery and using a firearm during a crime of violence. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Williams admitted that, between Sept. 26, 2011 and July 30, 2012, he robbed seven banks and attempted to rob an eighth bank, all at gunpoint. He used a similar procedure for each robbery: after entering the bank armed with a handgun and wearing a bandana, hooded sweatshirt or jacket and white gloves, Williams would vault over the counter and demand money from bank tellers at gunpoint.
Williams admitted robbing, or attempting to rob, the following New Jersey banks:
Date
Bank
Location
Sept. 26, 2011
Financial Resources Federal Credit Union
Somerset
Nov. 21, 2011
Somerset Savings Bank
Somerville
Feb. 27, 2012
Provident Bank
Piscataway
April 17, 2012
Provident Bank
Clifton
May 22, 2012
Provident Bank
Piscataway
June 20, 2012
Fulton Bank
Metuchen
July 12, 2012
Unity Bank
Middlesex
July 30, 2012
Unity Bank
North Plainfield
Prior to the July 12, 2012 robbery, an unarmed, off-duty police officer was parked across from the Unity Bank. The officer observed Williams leave the bank, get into the rear of the getaway car and crouch down to hide. After noting the license plate number, the officer followed the car. During the plea hearing, Williams admitted that he exited the getaway car, walked toward the officer’s car and pointed his firearm at the officer, forcing the officer to leave the scene.
On July 30, 2012, Williams was arrested after law enforcement observed him driving in the vicinity of the Unity Bank in North Plainfield on July 27, 2012 and July 28, 2012. He admitted that he planned to rob the bank at gunpoint.
In addition to the prison term, McNulty sentenced Williams to serve five years of supervised release.
Andrea Dorsey, 56, of Plainfield New Jersey, who admitted that she served as a lookout and getaway driver for three of the robberies, was sentenced to 87 months in prison on March 13, 2014. Teresa Webb, 45, of Plainfield, who admitted that she was the getaway driver for one of the robberies, was sentenced to 54 months in prison on May 30, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s sentencing. He also thanked the Somerset County Prosecutor’s Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield and Plainfield Police Departments for their roles.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Courtney M. Oliva of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kenneth W. Kayser Esq., Irvington
Brooklyn, New York, Man Sentenced to Four Years in Prison for Traveling to New Jersey to Violently Extort Divorce Consent from Recalcitrant HusbandRead the Press Release
TRENTON, N.J. – A Brooklyn, New York, man was sentenced today to 48 months in prison for crossing state lines as part of a plan to violently coerce a recalcitrant husband to grant his wife a religious divorce, U.S. Attorney Paul J. Fishman announced.
Moshe Goldstein, 32, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with traveling in interstate commerce to commit extortion. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Oct. 9, 2013, Moshe Goldstein and a group of conspirators – including his brother Avrohom Goldstein, 36, his father, Jay Goldstein, 61, David Hellman, 33, Simcha Bulmash, 32, Binyamin Stimler, 40, Sholom Shuchat, 31, all of Brooklyn, and Ariel Potash, 42, of Monsey, New York – traveled from New York to a warehouse in Edison, New Jersey, with the intent of forcing a Jewish husband to give his wife a “get,” a document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce.
During his plea hearing, Moshe Goldstein admitted that when he and the other conspirators arrived at the warehouse, they met with an individual who, unbeknownst to them, was an undercover FBI agent posing as the “husband’s” brother in law. They discussed a plan and prepared to confine, restrain and threaten the victim.
The group was then arrested by a team of FBI agents and charged by criminal complaint – along with rabbis Mendel Epstein, 70, of Lakewood, New Jersey, and Martin Wolmark, 57, of Monsey – in connection with the scheme.
Moshe Goldstein also admitted that on Aug. 22, 2011, he and others went to a residence in Brooklyn where they restrained, assaulted and injured another recalcitrant husband and his roommate in an attempt to extort a divorce from the husband.
In addition to the prison term, Judge Wolfson sentenced Moshe Goldstein to serve two years of supervised release.
Avrohom Goldstein, Hellman, Bulmash, Potash and Shuchat each pleaded guilty to one count of traveling in interstate commerce to commit extortion. Hellman and Bulmash are scheduled for sentencing on Nov. 17, 2015. Avrohom Goldstein, Potash and Shuchat are scheduled for sentencing Nov. 19, 2015. Wolmark, who pleaded guilty to conspiracy to travel in interstate commerce to commit extortion, is scheduled for sentencing on Dec. 14, 2015.
Epstein, Jay Goldstein and Stimler were all convicted at trial on April 21, 2015. Epstein, who was convicted of conspiracy to commit kidnapping, is scheduled for sentencing on Dec. 15, 2015. Stimler and Jay Goldstein, both convicted of conspiracy to commit kidnapping and attempted kidnapping, are scheduled for sentencing on Dec. 15, 2015 and Dec. 16, 2015, respectively.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s sentencing. He also thanked the Lakewood, New Jersey, Police Department for its role.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
Defense counsel: Roger Stavis Esq., New York
Head of Stock Trading Operation Indicted in Cross-Country Scheme to Trade on Inside InformationRead the Press Release
Traded on Information in Violation of Confidentiality Agreements, Netting More Than $3.9 Million During Three-Year Scheme
NEWARK, N.J. – A federal grand jury today indicted the owner and operator of a stock trading operation for his alleged participation in a multi-year insider trading scheme that netted more than $3.9 million in illicit profits, U.S. Attorney Paul J. Fishman announced.
Steven Fishoff, 58, of Westlake Village, California, is charged by indictment with one count of conspiracy to commit securities fraud and four counts of securities fraud.
According to documents filed in this case and statements made in court:
On numerous occasions, Fishoff and his conspirators obtained material nonpublic information related to publicly traded companies and traded on that information before it became public. Between June 2010 and July 2013, Fishoff or one of his traders – conspirators Ronald Chernin, 66, of Oak Park, California; Steven Costantin, 54, of Farmingdale, New Jersey, or a business associate referred to in the indictment as “Trader A”– expressed interest in participating in numerous stock offerings by publicly traded companies. Before providing confidential information to these individuals concerning the companies or the terms of the proposed sales, however, the investment bankers first required that Fishoff, Chernin, Costantin, Trader A, and their associated trading entities, agree to be “brought over the wall,” or “wall-crossed,” standard industry terms that meant they were required to keep the information confidential and could not buy or sell the stock based on the information.
Fishoff, Chernin, Costantin, or Trader A agreed to these disclosure and trading restrictions, then flagrantly breached the agreements. In many instances where Fishoff was not personally wall-crossed in an offering, Chernin, Costantin, and Trader A tipped Fishoff by telephone or by email about the offering prior to the public announcement. Even where Fishoff ostensibly was a party to the confidentiality agreement, through his affiliation with the wall-crossed trading entity, Fishoff breached the agreement by trading on the confidential information and by providing the information to his friends, Paul Petrello, 53, of Boca Raton, Florida, and a conspirator referred to in the indictment as “CC-1,” so that Petrello and CC-1 could engage in parallel trading through their own respective trading entities. There were also instances where Fishoff’s traders, Chernin or Costantin, violated the terms of the confidentiality agreements by using Fishoff trading entities to execute trades themselves before the offering. Fishoff and his conspirators shared the illicit profits from their insider trading scheme.
The conspiracy count with which Fishoff is charged carries a maximum potential penalty of five years in prison and a fine of $250,000. The securities fraud counts each carry a maximum potential penalty of 20 years in prison and a fine of $5 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s indictment. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Special Prosecutions Division and Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark, as well as Unit Chief Barbara Ward and Assistant U.S. Attorney Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.
These charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The charges and allegations contained in the indictment are merely accusations, and defendant is presumed innocent unless and until proven guilty.
Defense counsel: Steven D. Feldman Esq., New York
Franklinville, New Jersey, Man Sentenced to 57 Months in Prison for Using Fraudulent Invoices to Steal More Than $600,000 from Elementary Schools Across the U.S.Read the Press Release
CAMDEN, N.J. – A Franklinville, New Jersey, man was sentenced today to 57 months in prison for mailing fraudulent invoices for non-existent workbooks to more than 73,000 schools throughout the United States, U.S. Attorney Paul J. Fishman announced.
Robert S. Armstrong, 45, previously pleaded guilty before U.S. District Judge Noel L. Hillman to Count Two of a superseding indictment charging him with mail fraud. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Armstrong admitted that from July 2014 through September 2014, he sent more than 73,000 fraudulent invoices to schools throughout the United States seeking payment for non-existent workbooks. Armstrong opened mail boxes in Sewell, New Jersey, and Las Vegas, Nevada, under the name of his business, Scholastic School Supply LLC. Armstrong then drafted fraudulent invoices typically seeking payments of $647.50 for batches of math or language workbooks that the schools never ordered or received. In order to make the invoices appear legitimate, Armstrong included phony International Standard Book Numbers (ISBN), which are unique identifying numbers assigned to each book published in the United States.
Armstrong used a bulk mailing company to mail the phony invoices to more than 73,000 schools. Each invoice included a payment envelope preaddressed to Scholastic School Supply’s Sewell or Las Vegas address.
In response to the phony invoices, hundreds of schools throughout the United States sent payments to Scholastic School Supply. Armstrong deposited the checks from the victim schools into at least seven accounts that he had opened at various banks in the name of Scholastic School Supply. As of March 12, 2015, 938 schools sent a total of $612,774 in checks to Scholastic School Supply.
Armstrong originally pleaded guilty to Count One of the superseding indictment on June 12, 2015 and agreed to serve a stipulated sentence of 44 months in prison. According to the Federal Rules of Criminal Procedure, when the parties agree to a stipulated sentence, the judge has the opportunity to accept or reject the plea agreement. Judge Hillman rejected the agreement, and Armstrong entered a new plea agreement on Sept. 15, 2015 in which he pleaded guilty to Count Two of the superseding indictment and agreed to a stipulated sentence of 51 to 63 months in prison.
In addition to prison term, Judge Hillman sentenced Armstrong to serve three years of supervised release. A restitution hearing will be held on Dec. 22, 2015.
U.S. Attorney Fishman credited law enforcement officers of the U.S. Postal Inspection Service, under the direction of Inspector in Charge David W. Bosch in Philadelphia; the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Dalton; the Gloucester County Office of Consumer Protection, under the direction of Harold H. Spence Jr., Director of Consumer Affairs; the Washington Township Police Department, under the direction of Raphael Muniz, Chief of Police; and the Franklin Township Police Department, under the direction of Lawrence W. Roberts, Chief of Police.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office Criminal Division in Camden and Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey.
Trophy Hunter Admits Illegally Killing Black Bear in New Jersey and Staging Fake Kill Site in New York to Conceal CrimeRead the Press Release
NEWARK, N.J. – A Ringwood, New Jersey, man today admitted transporting an American black bear he illegally killed in New Jersey across state lines to New York, and covering up the crime by creating false records and staging a fake kill site, U.S. Attorney Paul J. Fishman announced.
Martin Kaszycki, 36, pleaded guilty before U.S. Magistrate Judge Leda D. Wettre in Newark federal court to an information charging him with two counts of violating the Lacey Act by transporting a bear he had illegally killed in Newfoundland, New Jersey, to Sterling State Forest in New York, and covering up the crime by making false statements and staging a fake kill site.
According to documents filed in this case and statements made in court:
On Oct. 5, 2012, Kaszycki killed a 450-pound, male, America black bear from an elevated tree stand, with a bow and arrow, out of hunting season, after setting out bait for the bear within 300 feet of the stand near his place of business in Newfoundland, all in violation of New Jersey state laws. He then drove the bear across state lines to New York, where he falsely told a New York weigh station employee that he had killed the bear in New York’s Sterling State Forest, causing the employee to record the false information on a New York state Bear Data Form.
On Oct. 8, 2012, Kaszycki drove the hide and skull of the bear to a taxidermy shop in Pennsylvania to arrange for the parts to be mounted for a trophy display and falsely represented to a taxidermist that he had hunted the bear in New York, causing the taxidermist to record that information on a New York State Department of Environmental Conservation Taxidermist Bear Report.
When N.J. Division of Fish and Wildlife Officers confronted Kaszycki about the bear on Oct. 10, 2012, at his place of business, Kaszycki told them he had killed the bear in New York. Later that night, Kaszycki drove the guts of the bear to Sterling State Forest in New York, where he placed them in the woods to stage a fake kill site. When confronted again the next day by state officials about the bear, he led those officials to the staged kill site and told them it was the location where he had killed the bear.
The Lacey Act prohibits the interstate transport of wildlife taken or possessed in violation of any state law or regulation as well as the making of a false record for wildlife that has been or is intended to be transported in interstate commerce. New Jersey state laws prohibit the hunting of an American black bear out of season. New Jersey laws also prohibit the hunting of these bears while elevated in a standing tree within 300 feet of a baited area or with a bow and arrow.
As part of his plea agreement, Kaszycki must pay a fine of $5,000 to the U.S. Fish and Wildlife Service Lacey Act Reward Fund. He must also forfeit the skull and hide of the bear and pay $1,250 to the Woodlands Wildlife Refuge for the care and release of orphaned and injured American black bears in New Jersey.
The charge to which Kaszycki pleaded guilty carries a maximum penalty of one year in prison and a $100,000 fine. He was released on unsecured $10,000 bond with the condition that he surrender his hunting license and refrain from hunting pending his sentencing hearing, which is currently scheduled for Feb 17, 2016.
U.S. Attorney Fishman credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction Resident Agent in Charge Preston Fant, as well as the N.J. Division of Fish and Wildlife, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney's Office Health Care and Government Fraud Unit in Newark.
Defense counsel: Peter L. Festa Esq., Paterson, New Jersey
Owner of Toms River, New Jersey, Accounting Business Admits Swindling Clients Out of Tax Refunds, Filing False Tax ReturnsRead the Press Release
CAMDEN, N.J. - A Toms River, New Jersey, woman today admitted filing false tax returns and using her accounting business to cheat her clients out of their tax refunds, U.S. Attorney Paul J. Fishman announced.
Doreen Gentile, 61, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to Count 2 and Count 27 of an indictment, charging her with mail fraud and filing a false income tax return.
According to documents filed in this case and statements made in court:
Gentile owned and operated her accounting business, Doreen A. Gentile & Associates, LLC (“DAG & Associates”), out of her home in Toms River. Gentile admitted that as part of her scheme, she would show her clients a tax return that indicated that they had no tax or refund due, owed a minimal amount of tax, or were due a refund that was far less than the amount to which they were entitled. Gentile then prepared a second set of tax returns, signed without her clients’ permission, that she submitted to the IRS or the State of New Jersey for the full tax refund.
Based on the second set of returns, the IRS or the State of New Jersey issued tax refund checks care of DAG & Associates and mailed them to the DAG & Associates post office box in Toms River. Gentile then deposited the tax refund checks into the DAG & Associates bank account without her clients’ permission. Afterwards, Gentile used the funds to pay for personal expenses.
Gentile also admitted that from 2006 through 2009, she failed to report to the IRS all of her income generated from DAG & Associates, including funds she stole as part of her refund scheme, resulting in tax losses of approximately $188,811.
The mail fraud count to which Gentile pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of filing a false income tax return carries a maximum potential penalty of three years in prison and a $100,000 fine. As part of her plea agreement, Gentile must also forfeit $905,004 representing proceeds of her scheme. Sentencing is scheduled for Feb. 22, 2016.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan Larsen, and special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, the for investigation leading to today’s plea.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Defense counsel: Christopher O’Malley Esq., Camden
New York Man Sentenced to 10 Years in Prison for Enticing A Minor to Engage in Criminal Sexual ConductRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced today to 120 months in prison for soliciting a girl to produce sexually explicit images and using Craigslist to advertise sexual encounters with the girl, U.S. Attorney Paul J. Fishman announced.
Gabriel Toro, 31, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Toro admitted that between December 2011 and August 2014, he used the internet to induce a 14-year-old girl to engage in criminal sexual conduct, including taking pictures of her genitals for him. Toro also admitted to distributing images of the girl to another individual and posting advertisements on Craigslist for individuals to have sex with the girl in exchange for money.
In addition to the prison term, Judge Martini sentenced Toro to a lifetime term of supervised release. Toro must register as a sex offender.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: James Friedman Esq., Newark
Hudson County, New Jersey, Man Admits Leading Armed Robbery Spree of Banks and Restaurants in Bergen and Hudson CountiesRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted his role in an armed robbery spree of banks and commercial establishments in Bergen and Hudson counties in July 2013, U.S. Attorney Paul J. Fishman announced.
Gary Bohanan, 46, of North Bergen, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to one count of conspiracy to commit armed bank robberies and Hobbs Act robberies, two counts of armed bank robbery, and two counts of armed Hobbs Act robbery.
According to documents filed in this case and statements made in court:
On July 10, 2013, Bohanan and Ramon Lopez, 25, of Union City, who were both wearing masks, entered a McDonald’s restaurant in North Bergen. Bohanan brandished a handgun and demanded money from the employees of McDonald’s. Bohanan and Lopez then took $1,600 in cash from the cash registers and fled in a car driven by Josephine Chenet, 45, formerly of North Bergen.
On July 18, 2013, Bohanan, Angel Feliu, 22, of North Bergen, Lopez, and Chenet watched Le Chateau restaurant in West New York, New Jersey, for the purpose of robbing it. Bohanan and the other individuals waited for a restaurant employee to close the restaurant, followed her home, and then robbed her at gunpoint of $6,000 in cash, representing the proceeds from the restaurant.
On July 22, 2013, Bohanan, Feliu and Chenet robbed the Sovereign Bank (now Santander Bank) in Secaucus, New Jersey. Both men wore latex gloves and masks. Once inside the Sovereign Bank, Bohanan brandished a black handgun, jumped over the counter and proceeded to empty two drawers of money into a black bag, while pointing the handgun at bank tellers. As Bohanan emptied the drawers, Feliu stood guard. Bohanan and Feliu then fled the bank and shared the proceeds of the robbery with Lopez and Chenet.
On July 26, 2013, Bohanan, Feliu and Chenet robbed the TD Bank, located in Fairview, New Jersey. Bohanan and Feliu entered the bank at 9:48 a.m. Bohanan and Feliu both wore latex gloves and masks. Feliu, however, was captured by the bank’s video surveillance system before he put the mask on his face. During the robbery, Feliu brandished a knife at employees and customers, and Bohanan brandished what appeared to be a black handgun, but what was later identified as an air pistol. Bohanan then jumped over the counter and emptied two drawers of money into a black bag, while pointing the air pistol at bank tellers. As Bohanan emptied the drawers, Feliu stood guard and held bystanders back by brandishing the knife. After the robbery, Bohanan and Feliu fled on foot; however, they were followed by concerned citizens and victims of the bank robbery. Bohanan then came upon a van, pointed the air pistol at the driver, and ordered the driver out of the van. Bohanan then attempted to flee the area by driving away in the van, but he crashed it into a nearby structure. Bohanan was found hiding under a truck and arrested in possession of a black bag containing an air pistol and money covered with red dye.
The two counts of armed bank robbery to which Bohanan pleaded guilty each carry a maximum penalty of 25 years in prison and a fine of $250,000. The two counts of Hobbs Act robbery each carry a maximum penalty of 20 years in prison. The count of conspiracy carries a maximum penalty of five years in prison. Sentencing is scheduled for Feb. 24, 2016.
Feliu previously pleaded guilty to one count of conspiracy to commit armed bank robberies and Hobbs Act robberies and two counts of armed bank robbery. Lopez previously pleaded guilty in a separate proceeding to one count of conspiracy to commit armed bank robberies and Hobbs Act robberies and two counts of Hobbs Act robberies. Bohanan, Feliu, and Lopez are detained pending sentencing. Charges that had been pending against Chenet for her role in the robberies were dismissed following her death on June 22, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s guilty plea. He also thanked the Fairview, North Bergen and Secaucus police departments for their contributions to the case.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Carl J. Herman Esq., West Orange, New Jersey
Clerk Admits Stealing Material Information from Prominent Law Firm for Use in $5.6 Million Insider Trading SchemeRead the Press Release
TRENTON, N.J. - The former managing clerk for a prominent, international law firm today admitted stealing sensitive, confidential information for use in a five-year insider trader scheme that yielded net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.
Steven Metro, 41, of Katonah, New York, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to the first two counts of an indictment charging him with securities fraud and conspiracy to commit securities and tender offer fraud.
According to documents filed in this case and statements made in court:
From 2009 to 2013, Metro stole material nonpublic information from his then-employer, Simpson Thacher & Bartlett LLP, one of the nation’s premier mergers and acquisitions firms. The information related to corporate transactions, such as mergers and acquisitions or tender offers, in which the firm represented a party or financial advisor to the transaction. As the firm’s managing clerk, Metro did not personally work on most of these transactions. Instead, Metro stole the inside information by scouring the firm’s computer system for client names and the keywords “merger agreement,” “bid letter,” “engagement letter,” and “due diligence.”
After obtaining the inside information, Metro would meet his friend, Frank Tamayo, 42, of Brooklyn, New York, at a bar, coffee shop, or other location near their respective workplaces in midtown Manhattan. During these meetings, Metro provided Tamayo material information pertaining to, among other things, the names and/or ticker symbols of the companies whose securities should be purchased. Tamayo would write the security’s ticker symbol on a small piece of paper or napkin and commit the rest of the inside information to memory.
Afterwards, Tamayo would meet Vladimir Eydelman, 43, formerly of Colts Neck, New Jersey, usually at a location near Eydelman’s workplace, such as at the large clock in New York City’s Grand Central Terminal. Tamayo would show Eydelman the paper or napkin with the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo would place the paper or napkin into his mouth and chew it until it was destroyed.
After receiving the inside information provided by Metro, whom Eydelman knew as Tamayo’s “source,” Eydelman then purchased securities for himself, family members, friends, and/or clients, including Tamayo. Eydelman quickly sold the shares and covered any positions once the relevant deal was publicly announced and the stock price rose.
Throughout the course of the approximately five-year scheme, Tamayo reinvested the approximately $7,000 in profits that Metro made on the first deal, and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to “cash out” his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate his law firm source – i.e., Metro – for providing them the inside information.
By exploiting the information that Metro took from the firm, Metro, Tamayo and Eydelman netted more than $5.6 million in illicit profits over five years.
The securities fraud charge to which Metro pleaded guilty carries a maximum potential penalty of 20 years in prison a $5 million fine. The conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Metro must also forfeit any proceeds from the offense. His sentencing is scheduled for Feb. 17, 2016.
Tamayo and Eydelman have both pleaded guilty to their roles in the scheme and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Special Prosecutions Division of the U.S. Attorney’s Office in Newark, and R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, as well as Unit Acting Chief Barbara Ward and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.
These charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Defense counsel: James R. Froccaro Jr. Esq., Port Washington, New York
Mercer County, New Jersey, Man Charged with Production and Receipt of Child PornographyRead the Press Release
NEWARK, N.J. – A Mercer County, New Jersey, man was arrested today and charged with coercing a minor to engage in sexually explicit conduct and with receiving images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Curtis E. Thompson, 30, of Lawrenceville, New Jersey, is charged by complaint with one count of the production of child pornography and one count of receiving child pornography. He is scheduled to appear later today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the complaint:
In April 2015, Thompson used a Facebook account in the name of Frank Lucas to become “friends” with the victim, a minor. On June 11, 2015, the victim told Thompson that the victim was under the age of 18. Thompson used the Facebook account to solicit and persuade the victim to record videos of the victim and others engaging in sexually explicit conduct, and to send those videos to Thompson. Thompson also coerced the victim to engage in sexually explicit conduct and allow Thompson to watch in real time through a video streaming service. Thompson requested additional videos of the victim and others engaged in sexually explicit conduct in exchange for payments from Thompson wired via MoneyGram to the victim and others. Thompson sent the payments on various dates in June 2015.
The charge of production of child pornography carries a maximum potential penalty of 30 years in prison, a mandatory minimum penalty of 15 years in prison and a $250,000 fine. The charge of receiving child pornography carries a mandatory minimum penalty of five years and a maximum of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office General Crimes Unit in Newark.
Anyone with information which may be relevant to this investigation is encouraged to contact the FBI online at: [email protected]
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Leader and Supplier for Atlantic City ‘Dirty Block’ Gang Admits Role in Heroin Trafficking Conspiracy and BeingRead the Press Release
TRENTON, N.J. - An Atlantic City, New Jersey, man today admitted engaging in a conspiracy to distribute heroin with members of the “Dirty Block” criminal street gang that allegedly used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City.
Tyrone Ellis, a/k/a “Rome,” 33, pleaded guilty before U.S. District Judge Anne Thompson in Trenton federal court to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, and one count of possessing a firearm and ammunition while being a previously convicted felon.
According to documents filed in this case and statements made in court:
Ellis acted as a supplier of pre-packaged heroin to Mykal Derry, the leader of the Dirty Block criminal street gang. Ellis also distributed heroin to a smaller group of mid-level heroin distributors who sold the heroin to customers all over the Atlantic City area and in surrounding towns.
Ellis was arrested on March 26, 2013, in Vineland, New Jersey. At the time of his arrest, a loaded Glock .40 caliber handgun belonging to Ellis was recovered from a bedroom in the residence and more than $37,000 in cash was seized from various locations inside the residence and in an attached garage.
Tyrone Ellis’ guilty plea marks the 34th felony conviction of the 34 defendants arrested by the FBI and state and local law enforcement officers working with the FBI in March 2013. Ellis and approximately 15 other defendants are awaiting sentencing; the remaining defendants have all been sentenced to prison terms.
The drug conspiracy carries a minimum penalty of five years in prison, a maximum penalty of 40 years in prison, and a maximum potential fine of $5 million. Sentencing is scheduled for Feb. 2, 2016.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s guilty plea.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; and the Millville Police Department for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Justin C. Danilewitz and Special Assistant U.S. Attorney Edmond Mallqui-Burgos.
Defense counsel: Rocco Cipparone Esq., Haddon Heights, New Jersey
Essex County, New Jersey, Man Sentenced to 30 Years in Prison for Taking Cellphone Pictures While Sexually Abusing Two ChildrenRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man was sentenced today to 360 months in prison for sexually abusing two girls and recording the conduct on his cellphone, U.S. Attorney Paul J. Fishman announced.
Justin Kinney, 26, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an indictment charging him with two counts of producing child pornography. Judge Chesler imposed the sentence today in Newark federal court.
According to the documents filed in the case and statements made in court:
On Oct. 25, 2012, law enforcement executed a search warrant on Kinney’s laptop computer and cellphone, which revealed several files of child pornography that appeared to be taken with Kinney’s cellphone. Kinney admitted that two of the images, dated Aug. 19, 2012 and Oct. 10, 2012, were taken by him while he sexually abused two girls.
In addition to the prison term, Judge Chesler sentenced Kinney to a lifetime term of supervised release. Kinney is required to register as a sex offender.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Danielle M. Corcione and Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Assistant Federal Public Defender John H. Yauch Esq., Newark
Two New Jersey Men Admit Roles in Scheme to Extort Thousands of Dollars from Hudson County ProjectRead the Press Release
NEWARK, N.J. – Two men today admitted extorting thousands of dollars in corrupt payments in connection with arranging approvals to provide landfill materials for a Hudson County Improvement Authority (“HCIA”) project, U.S. Attorney Paul J. Fishman announced.
Gerard Pica, 65, of Middletown, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares to Count Four of an indictment charging him with conspiracy to commit extortion under color of official right. James Castaldo, 60, of Beachwood, New Jersey, pleaded guilty before Judge Linares to Count One of the indictment charging him with conspiracy to commit extortion under color of official right.
According to the documents filed in this case and statements made in court:
The HCIA was overseeing the construction of a nine-hole public golf course located at Lincoln Park West in Jersey City, New Jersey (the “LPW project”). As part of its construction, the LPW project required several hundred thousand cubic yards of soil, fill material and crushed stone to be incorporated into the site, as well as to serve as road bedding during the construction of the golf course. As the overseer of the LPW project, one of the functions of the HCIA – either directly or through a designated contractor – was to serve as a gatekeeper for any material to be delivered to the LPW site. It was the HCIA’s responsibility to solicit, evaluate and decide which contractors’ proposals to accept for the provision of soil and fill material for the LPW project.
Castaldo ran Renda Enterprises LLC, which provided interstate transportation and broker services that moved or received recycled waste and other materials. Pica had been employed by the HCIA as an environmental scientist and had the ability to influence the HCIA’s decisions regarding the selection of contractors to provide soil and fill material to the LPW project. An individual referred to in the indictment as “Employee 1” also had authority over the selection of contractors seeking to provide materials for the project site.
From August 2010 through November 2011, Pica, Castaldo and others schemed to obtain payments from certain contractors in exchange for Pica and Employee 1’s assistance in getting approval for certain companies to provide materials for the LPW project.
Pica admitted that he arranged to obtain corrupt payments from “Individual 3,” the owner of a recycling business in Bayonne, New Jersey. Pica admitted using his authority at the HCIA to ensure that Individual 3 and Individual 3’s company received approval to provide Class B materials, including crushed stone, for the LPW project. As part of the agreement, Individual 3 would pay Castaldo a fee – $2 per cubic yard of fill and soil material delivered to the site – for the benefit of Pica, Castaldo and Employee 1. Pica admitted receiving approximately $6,600 in December 2010 as a partial payment of his share. In addition, Pica admitted to creating a fraudulent invoice from a separate company which he owned for monies purportedly owed to him by Renda Enterprises. Pica admitted that he accepted a check for $6,000 from Renda Enterprises in April 2011, knowing that this amount was further payment of his share which he extorted from Individual 3.
Castaldo admitted that in early 2011, he met with Pica and a person referred to in the indictment as “Individual 1,” who was the owner of a full service environmental consulting firm seeking authorization to dump soil and fill material at the LPW site. Castaldo admitted that he, Pica and Individual 1 agreed upon the amount per cubic yard that Individual 1 would have to pay in return for Pica’s assistance in ensuring Individual 1 would receive authorization to dump the material at the LPW site. Castaldo acknowledged that in July 2011, Renda Enterprises received two payments totaling more than $8,600 as corrupt payments for allowing Individual 1 to dump more than 2,600 cubic yards of fill materials at the LPW site.
The counts to which Pica and Castaldo pleaded guilty both carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Pica and Castaldo are also jointly responsible for forfeiture of $53,861. Sentencing for both defendants is scheduled for Feb. 23, 2016.
U.S. Attorney Fishman credited special agents from the FBI, under direction of Special Agent in Charge Richard M. Frankel in Newark and special agents with the N.J. State Commission of Investigation, under the direction of Acting Executive Director Lee C. Seglem, for the investigation.
The government is represented by Assistant U.S. Attorneys David L. Foster and Mark McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel:
Pica: Edward Plaza, Esq., Newark
Castaldo: Matthew J. Heagen, Toms River
Guilty Verdict Against Essex County, New Jersey, Man for Possessing Firearm as A Previously Convicted FelonRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man was convicted today by a federal jury of possessing a firearm as a previously convicted felon, U.S. Attorney Paul J. Fishman announced.
Caliph Barr, 25, was convicted of possessing a firearm despite his previous conviction in Essex County Superior Court. Barr was convicted today following a three-day trial before U.S. District Judge Kevin McNulty in Newark federal court. The jury deliberated for two hours before returning the verdict.
According to documents filed in this case and the evidence at trial, on June 2, 2014, Barr was found in possession of a Russian Nagant .32 caliber revolver along with six rounds of ammunition.
The charge of which Barr was convicted carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is not yet scheduled.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Courtney A. Howard and David Feder of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Assistant Federal Public Defenders K. Anthony Thomas Esq. & Carol Gillen Esq., Newark
Union County, New Jersey, Man Charged with Distribution of Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Union County, New Jersey man was charged today with distributing images of child sexual abuse online, U.S. Attorney Paul J. Fishman announced.
Lenin Eugenio Basantes, 30, of Elizabeth, New Jersey, is charged by complaint with one count of distribution of child pornography. He had his initial court appearance before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.
According to the complaint:
On June 19, 2013, Basantes distributed 18 video files and approximately 70 image files of child sexual abuse via a peer-to-peer file sharing network on the Internet, to which others had access in shared directories. During an undercover operation, a special agent of the FBI communicated with Basantes via the peer-to-peer network. Basantes provided this agent with a password to a file containing the images and video files. The undercover agent was able to access and download these images. On Nov. 4, 2015, FBI agents interviewed Basantes, who admitted that that he shared pornographic images of children with other people via the peer-to-peer network.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender, Newark
Bergen County, New Jersey, Woman Charged with Tax Evasion, Defrauding Two New York Law Firms Out of $7.8 MillionRead the Press Release
NEWARK, N.J. - A Newark federal grand jury today indicted an Englewood Cliffs, New Jersey, woman for tax evasion and using bogus litigation support companies to obtain millions from two law firms where she was a partner, U.S. Attorney Paul Fishman announced.
Keila Ravelo, 50, is charged by indictment with one count of conspiracy to commit wire fraud, four counts of wire fraud and four counts of tax evasion. Ravelo and her husband, Melvin Feliz, 49, also of Englewood Cliffs, were originally arrested and charged by complaint on Dec. 22, 2014 with conspiracy to commit wire fraud.
According to documents filed in the case and statements made in court:
Ravelo worked as a partner for a company identified in the indictment as “Law Firm 1” from July 1, 2005 through October 2010. She then became partner for another company identified as “Law Firm 2” and worked there from October 2010 through November 2014.
From 2008 through July 2014, Ravelo and Feliz allegedly formed two limited liability companies, “Vendor 1” and “Vendor 2,” which purported to provide litigation support for both firms, but in fact provided no actual services. Ravelo and Feliz controlled Vendor 1 and Vendor 2 bank accounts and submitted invoices to Law Firm 1, Law Firm 2 and a client of both firms for work that was never performed. Ravelo, in her capacity as a partner at the law firms, allegedly approved payments to Vendor 1 and Vendor 2, which Ravelo and Feliz later used for personal expenses.
Over the course of the conspiracy, the law firms paid Vendor 1 and Vendor 2 a combined total of approximately $7.8 million. The indictment further alleges that Ravelo willfully failed to report the fraudulent earnings on her tax returns.
The conspiracy charge and each count of wire fraud are punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The tax evasion charges are each punishable by a maximum potential penalty of five years in prison and a $100,000 fine.
The charges and allegations in the indictment are merely accusations, and Ravelo is considered innocent unless and until proven guilty.
On Aug. 25, 2015, Feliz pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud and one count of tax evasion. His sentencing is currently scheduled for Dec. 14, 2015.
U.S. Attorney Fishman credited law enforcement officers of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Carl Kotowski, and law enforcement officers of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Assistant U.S. Attorneys Ronnell Wilson, Andrew Kogan, and Brian Urbano of the U.S. Attorney’s Office Criminal Division, Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit, and Assistant U.S. Attorney David Foster of the U.S. Attorney’s Office Special Prosecution’s Division in Newark.
Defense counsel: Lawrence S. Lustberg Esq., Newark, and Steven H. Sadow Esq., Atlanta, Georgia
Project Manager Overseeing Construction Projects at Morris County, New Jersey, U.S. Army Installation Admits Accepting KickbacksRead the Press Release
NEWARK, N.J. – A regional manager for a prime contractor working at Picatinny Arsenal today admitted taking more than $20,000 in kickbacks in return for favorable treatment on construction projects at the installation, U.S. Attorney Paul J. Fishman announced.
Shawn A. Fuller, 45, of East Stroudsburg, Pennsylvania, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of accepting unlawful kickbacks.
According to documents filed in this case and statements made in court:
Fuller, a project manager for a prime contractor working at Picatinny Arsenal, admitted taking kickbacks from subcontractors in return for favorable treatment on related construction projects. On June 27, 2010, Fuller solicited and accepted a Yamaha Wave Runner, valued at $4,250, from a subcontractor who owned a Warren County, New Jersey, construction company. Fuller also admitted that, between 2009 and June 2013, he accepted approximately $20,000 in cash payments from other subcontractors involved in Picatinny Arsenal construction projects.
The charge to which Fuller pleaded guilty 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. Sentencing is scheduled for Feb. 16, 2016.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig Rupert; and the U.S. Army Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Barbara R. Llanes and Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Assistant Federal Public Defender Candace Hom Esq., Newark
Compounding Pharmacist Sentenced to 20 Months in Prison for Paying Kickbacks for Referrals, Health Care FraudRead the Press Release
CAMDEN, N.J. – The owner of a compounding pharmacy in Lakewood, New Jersey, was sentenced today to 20 months in prison for paying tens of thousands of dollars in cash bribes to physicians for referring pain cream prescriptions, defrauding health care benefit programs out of hundreds of thousands of dollars, U.S. Attorney Paul J. Fishman announced.
The president and pharmacist-in-charge of Prescriptions R US – Vladimir Kleyman, 44, of Lakewood, New Jersey – previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with conspiracy to pay kickbacks and to commit health care fraud. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From January 2013 through January 2014, Kleyman provided another individual with tens of thousands of dollars in cash and checks to provide bribes to physicians for referring prescriptions for a compounded pain cream to Prescriptions R US. Compounding pharmacies prepare medication, using different types and dosages of drugs, in order to provide more personalized medications for patients. The compounded pain cream prepared by Prescriptions R US in this case contains several components, including ketamine (a Schedule III non-narcotic), lidocaine and diclofenac.
Kleyman admitted that in a series of meetings in November and December 2013 alone, he arranged for the middleman to receive more than $50,000 in cash or checks with the understanding it would be used to pay bribes for the referral of pain cream prescriptions.
Kleyman also admitted he knew certain health insurance carriers, including federal health care benefit programs, did not cover compounded pain cream, but he nevertheless dispensed the pain cream to these patients and obtained payment from their insurance carriers by falsely representing the pain cream to be other covered items. Kleyman also acknowledged he defrauded health insurance carriers by making false and misleading representations about the quantity of the pain cream that he dispensed and the frequency with which he dispensed it. As a result, private insurance companies paid the pharmacy hundreds of thousands of dollars.
In addition to the prison term, Judge Rodriguez sentenced Kleyman to serve three years of supervised release, ordered him to pay $1,036,658 in criminal restitution and forfeiture and civil penalties. As part of his plea agreement, Kleyman also must pay $2 million in federal income taxes, interest, and penalties for the 2013 tax year.
In a separate civil settlement with the Justice Department and the Office of Inspector General of the Department of Health and Human Services, Kleyman paid $160,000 to resolve allegations of receiving Medicare funds through referrals and orders by physicians he paid.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented in the criminal case by Assistant U.S. Attorney Jane H. Yoon and Senior Litigation Counsel Andrew Leven, and in the civil settlement, by Assistant U.S. Attorney Bernard J. Cooney, all of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Alain Jeff Ifrah Esq., Washington, D.C.
Mastermind of Online Counterfeit Card Retail Shop Sentenced to More Than Six Years in PrisonRead the Press Release
Fakeplastic.net Responsible for More than $30 Million in Fraud
NEWARK, N.J. – The creator and administrator of fakeplastic.net, a one-stop online shop selling counterfeit credit and debit cards, or “payment” cards, and holographic overlays used by criminals to create fake driver’s licenses, was sentenced today to 78 months in prison, U.S. Attorney Paul J. Fishman announced.
Sean Roberson, 40, of Palm Bay, Florida, previously pleaded guilty before U.S. Magistrate Judge James B. Clark III to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit fraud and related activity in connection with authentication features. U.S. District Judge Jose L. Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The fakeplastic.net website was a one-stop online shop operated by Roberson and used by criminals across the country to purchase customized counterfeit credit and debit cards used for unauthorized transactions with stolen payment card data, and holographic overlays used to make fake driver’s licenses.
During his guilty plea proceeding, Roberson admitted he began selling counterfeit cards and related items as early as April 2011 and launched the fakeplastic website in June 2012. Roberson owned and operated the website with the assistance of Vinicio Gonzalez and Hugo Rebaza. Roberson admitted that he and his conspirators fulfilled orders for approximately 69,000 counterfeit payment cards, more than 35,000 holographic stickers used to make counterfeit cards appear more legitimate and more than 30,000 state identification card holographic overlays. The orders – more than 3,600 parcels – were shipped through the U.S. mail.
Law enforcement estimates the losses associated with just the counterfeit payment cards trafficked by Roberson and his conspirators at more than $30 million. During his guilty plea, Roberson admitted he personally made more than $1.7 million from the scheme.
The fakeplastic website was used by various groups of criminals across the country often referred to as “carding” or “cash out” crews. These crews bought stolen payment card numbers and related information – referred to as “track data” or “dumps” – which typically appear on the magnetic stripe on the back of legitimate payment cards. Illegal vendors of that information usually get it through hacking or skimming operations involving the installation of specialized equipment at ATM locations or point-of-sale terminals. The stolen data was ultimately put on a counterfeit payment cards, purchased from Roberson, and used to make unauthorized transactions.
In addition to the prison term, Judge Linares ordered Roberson to serve five years of supervised release and pay restitution of $3,578,996.52. As part of his plea agreement, Roberson forfeited his Bitcoin, a house in Palm Bay, a 2013 Yamaha motorboat and trailer, and a 2008 Hummer.
Gonzalez and Rebaza have both pleaded guilty to related charges in the Western District of North Carolina and were sentenced to 36 and 12 months in prison, respectively.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation leading to today’s sentencing.
The Computer Crimes and Intellectual Property Section (CCIPS) of the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Western District of North Carolina have been partners in the prosecution.
The government is represented by Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section and Barbara Ward of the office’s Asset Forfeiture and money laundering unit.
Defense counsel: Assistant Federal Public Defender Patrick McMahon Esq., Newark
U.S. Attorney's Office Reminds New Jersey Voters to Use Election Day Hotline for Complaints of Voting Irregularities or AbusesRead the Press Release
NEWARK, N.J. – Tuesday, Nov. 3, 2015, is New Jersey’s general election, and U.S. Attorney Paul J. Fishman is reminding voters to use the Election Day Hotline if they suspect voter fraud. The U.S. Attorney’s Office will receive and respond to reports of election irregularities, voter intimidation or any other activities that would interfere with a citizen’s right to vote. The Election Day Hotline – (888) 636-6596 – is active now through Nov. 4, 2015, and will be staffed live on Election Day in English and in Spanish.
The Department of Justice and federal law enforcement partners will work with county boards of election and the New Jersey Attorney General’s Office to respond to complaints and direct them to the appropriate authority.
The Justice Department seeks to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted, without discrimination, intimidation or fraud.
Established in 2010, this yearly initiative is intended to foster public confidence in the integrity of the election process by providing local points of contact within the Justice Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
The Justice Department and federal investigative agencies, led by the FBI, work cooperatively with the state Attorney General’s Office, under the direction of Acting Attorney General John J. Hoffman, to enforce voters’ rights at the polls.
The Department of Justice Civil Rights Division staff in Washington also will be available by phone to receive complaints related to voting rights (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-514-0716). In addition, individuals may also report complaints, problems, or concerns related to voting by fax to 202-307-3961, by email to [email protected], and, by complaint forms that may be submitted through a link on the Department’s website, at http://www.justice.gov/crt/complaint/votintake/index.php.
Two Men Convicted for Roles in Multi-State $3.4 Million Burglary SpreeRead the Press Release
NEWARK, N.J. – A North Jersey man and a Brooklyn, New York, man were convicted today on multiple counts in connection with a multimillion-dollar, multi-state burglary spree, U.S. Attorney Paul J. Fishman announced.
Daniel “Tokyo” Gatson, 43, of North Bergen, New Jersey, and Anthony Hanks, 36, of Brooklyn, were each convicted of one count of conspiracy to transport stolen property in interstate commerce; Gatson was convicted of 11 counts, and Hanks three counts, of interstate transportation of stolen property. The two men were convicted following a three-week trial before U.S. District Judge William J. Martini in Newark federal court. The jury deliberated a day and a half before returning the verdicts.
According to documents filed in this case and the evidence at trial:
Gatson, Hanks and four conspirators – who previously pleaded guilty and testified against Gatson and Hanks – took part in 27 burglaries and attempted burglaries in six states, stealing $3.4 million in cash and valuables.
The conspiracy count on which the defendants were found guilty carries a maximum potential penalty of five years in prison. The substantive counts of interstate transportation of stolen property each carry a maximum potential penalty of 10 years in prison. Sentencing is scheduled for Feb. 11, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli, with the investigation leading to today’s guilty verdicts.
The government is represented by Assistant U.S. Attorney Joshua Hafetz of the Criminal Division in Newark and Special Assistant U.S. Attorney Thomas S. Kearney, on loan from the Bergen County Prosecutor’s Office.
Defense counsel:
Gatson: Michael Pedicini Esq., Chatham, New Jersey
Hanks: Peter S. Gordon Esq., Forest Hills, New York
President of New Jersey-Based Textile Company Sentenced to Three Years in Prison for Defrauding Investors Out of $4 MillionRead the Press Release
NEWARK, N.J. – A Mahwah, New Jersey, woman was sentenced today to 36 months in prison for pretending to be an employee of the United States in order to defraud investors out of $4 million, U.S. Attorney Paul J. Fishman announced.
Sara Rong Liu, 54, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging her with one count of falsely assuming or pretending to be an employee of the United States and obtaining money as a result of her impersonation. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Liu was the president of Westone Inc., a company purportedly involved in the wholesale distribution of textiles as well as interior design. Liu falsely represented to prospective victim investors, among other things, that Westone had been awarded a lucrative $156.6 million contract by the New York City Department of Design and Construction Fund (NYC DDC).
The NYC DDC never awarded the defendant or her company any such contract.
Liu falsely represented to the victim investors that there was a problem with the fictitious contract that required Westone to pay certain fees before the NYC DDC would release contract payments to the defendant and her company.
To support her false claims, Liu created, or caused to be created, a number of fictitious documents, including documents purportedly from, among others: the NYC DDC, which stated she had been awarded the contract to provide ADesign, Construction, and Construction Support Services for the Design, Manufacture, and Supply of Good Quality Home & Office Interior Textile Products and Finishing” in and around the New York metropolitan area; the Federal Reserve Bank of New York; the U.S. Department of Treasury; the FBI; and the U.S. Attorney=s Office for the Southern District of New York, among others. Liu emailed a number of these documents to the victim investors from whom she solicited funds. She characterized the funds as short-term loans, which would be repaid immediately upon the release of the first contract payment of $52.2 million from the NYC DDC.
In all, the defendant obtained more than approximately $4 million in illegitimate proceeds from victim investors.
In addition to the prison term, Judge Wigenton sentenced Liu to serve one year of supervised release and pay $4,220,185 in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and the U.S. Treasury Department, Office of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Rodney Davis, Washington Field Division, with the investigation leading to today’s sentencing.
The government is represented by Chief Gurbir Grewal and Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: Assistant Federal Public Defender Lisa Mack Esq., Newark
South Jersey Man Sentenced to 15 Years in Prison for Conspiracy to Traffic Guns from South Carolina to New JerseyRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 180 months in prison for his role in a conspiracy to sell 22 guns without a license, U.S. Attorney Paul J. Fishman announced.
Joseph Rutling, 24, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiring to deal firearms without a license and one count of possession of a firearm by a previously convicted felon. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Between April 8, 2013, and July 28, 2014, Joseph Rutling and his brother, Marcus Rutling, a/k/a “Fresh,” 33, of Camden, and Saluda, South Carolina, conspired with others to illegally sell firearms without a license, including handguns, shotguns and an assault rifle. They obtained the firearms from pawn shops, gun stores and other sources in South Carolina and brought them to New Jersey, at times using Amtrak trains to transport the guns. Marcus Rutling personally sold or participated in the sale of at least seven firearms, including handguns and shotguns, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Joseph Rutling personally sold or participated in the sale of at least 15 firearms, including handguns, shotguns and an assault rifle, also to an ATF cooperating witness. On at least five occasions, Joseph Rutling sold ammunition with the firearms.
In addition to the prison term, Judge Bumb sentenced Joseph Rutling to three years of supervised release. Marcus Rutling also pleaded guilty to his role in the conspiracy and was sentenced to 14 years in prison on Oct. 8, 2015.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to today’s sentencing. He also thanked special agents from the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, as well as officers from the Winslow Township and Clementon, New Jersey, police departments, for their work in the case.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
Defense counsel: Mark W. Catanzaro Esq., Mount Holly
Somerset County, New Jersey, Builder Admits Bank Fraud Associated with Bogus Sale of Irvington, New Jersey, PropertyRead the Press Release
NEWARK, N.J. – A Neshanic Station, New Jersey, man today admitted his role in a scheme that used straw buyers and phony loan documents to fraudulently obtain a $400,500 loan on a property in Irvington, New Jersey, U.S. Attorney Paul J. Fishman announced.
Antonio Pimenta, 47, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count Two of an indictment charging him with bank fraud.
According to documents filed and statements made in court:
Pimenta owned and managed Kelmar Construction Co. (“Kelmar”). Kelmar built multiple properties in Irvington, New Jersey. These properties were sold to straw buyers utilizing fraudulent mortgage loans brokered by loan officer, Klary Arcentales, 47, of Lyndhurst, New Jersey, and closed by settlement agent Linda Cohen, 57, of Orange, New Jersey, who used fraudulent settlement statements (HUD-1s) to hide the true sources and destinations of the mortgage funds. The straw buyers had no means of paying the mortgages, and many of the properties entered into foreclosure proceedings.
One such transaction took place in September 2007 on a property located at 97 22nd Street in Irvington, New Jersey, which was built by Kelmar. The mortgage loan application contained false and fraudulent information concerning the straw buyer’s income, employment and rental history. The application also falsely represented that the straw buyer intended to reside in the property as his primary residence. The straw buyer also represented to JP Morgan Chase that he would make a down payment of $44,500. Based on the bogus information, JP Morgan Chase agreed to fund a mortgage loan of approximately $400,500.
Pimenta admitted that despite the fact that he never received a down payment, he knowingly signed a settlement statement that falsely indicated that the payment was made. Afterwards, Pimenta and Kelmar received approximately $381,000 from the fraudulent transaction. No payments were ever made to JP Morgan Chase for this mortgage loan.
The charge to which Pimenta pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Feb. 16, 2016.
Arcentales and Cohen have both pleaded guilty to related charges and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and special agents of the Federal Housing Finance Agency, Office of the Inspector General, under the direction of Special Agent in Charge Steven Perez, for the investigation leading to today’s plea. Fishman also thanked the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, for its role in the investigation.
The government is represented by Special Assistant U.S. Attorney Sean M. Farrell and Assistant U.S. Attorneys Zach Intrater and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: Alain Leibman Esq., Princeton, New Jersey
North Bergen, New Jersey, Compliance Officer Indicted for Rigging Contractor Selection Process for Community Development ProjectsRead the Press Release
NEWARK, N.J. – A compliance officer with the Union City Community Development Agency (UCCDA) was indicted today for allegedly manipulating the contractor selection process for federally-funded residential rehabilitation and sidewalk replacement projects, causing losses of at least $250,000, U.S. Attorney Paul J. Fishman announced.
Washington Borgono, 64, of North Bergen, New Jersey, was charged with one count of obtaining by fraud, converting and misapplying government funds provided by the UCCDA and one count of conspiring with others to do the same. The indictment was returned today by a federal grand jury sitting in Newark.
According to the indictment:
From April 2007 through February 2013, Borgono was a compliance officer at the UCCDA, a local government agency that receives grant funds from the U.S. Department of Housing and Urban Development (HUD) for home improvement projects, sidewalk replacement and other projects.
From 2007 through 2013, Borgono conspired with Johnny Garces, 52, of Union City, New Jersey, a UCCDA inspector, and contractors Joseph Lado, 67, of Fort Lee, New Jersey, Leovaldo Fundora, 54, of Guttenberg, New Jersey, and others to use false and misleading bids to rig the selection process for HUD-funded projects. In addition to instructing Lado, Fundora and other contractors to submit phony higher bids from competitors or their own companies, Borgono and Garces used fabricated higher bids or threw out lower bids in order to secure certain UCCDA projects for Lado, Fundora and others.
The charge of obtaining by fraud, converting and misapplying government funds 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. The conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
The charges and allegations contained in the indictment are merely accusations, and Borgono is presumed innocent unless and until proven guilty.
Garces, Lado and Fundora previously pleaded guilty to their roles in the scheme and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, for their work in the investigation.
The government is represented by Assistant U.S. Attorney Barbara R. Llanes of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Louis A. Zayas Esq., North Bergen, New Jersey
New Jersey Man Admits Conspiring to Provide Material Support to ISILRead the Press Release
A West New York, New Jersey, man today admitted that he conspired to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Richard M. Frankel of the FBI’s Newark, New Jersey, Division.
Alaa Saadeh, 24, pleaded guilty before U.S. District Judge Susan D. Wigenton of the District of New Jersey to an information charging him with one count of conspiring with others to provide material support to ISIL. He remains detained without bail.
“Saadeh conspired with his brother and others to travel overseas to join ISIL,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“Alaa Saadeh is the second defendant in this case who has admitted trying to provide material support to a known terrorist organization,” said U.S. Attorney Fishman. “That organization, and others who share its goals, are intent on recruiting people in this country and around the world to join their campaign against our security. The fight against these kinds of groups is going on around the world, but is also being waged here at home. They are intent on threatening the safety of Americans here and abroad, and we and our law enforcement partners are intent on stopping them.”
“Today in the U.S. District Court of New Jersey Alaa Saadeh admitted he planned to travel to Syria to join ISIL along with others,” said Special Agent in Charge Frankel. “Now, thanks to the efforts of Newark FBI’s Joint Terrorism Task Force, Saadeh will go to prison rather than take up arms overseas.”
According to documents filed in this and related cases and statements made in court:
Saadeh admitted that prior to his arrest on June 29, 2015, he planned to travel overseas to join ISIL along with others. Saadeh discussed the plans to join ISIL with his brother, Nader Saadeh, Samuel Rahamin Topaz and Munther Omar Saleh, and told the judge today that each of them indicated that they wanted to join ISIL at various times. Saadeh also admitted that he watched ISIL-related videos with Nader Saadeh and Topaz, some of which depicted the execution of individuals – both Muslim and non-Muslim – regarded by ISIL as enemies.
On May 5, 2015, Nader Saadeh, departed the United States with plans to travel overseas to join ISIL as part of the conspiracy, according to Saadeh’s statements in court today. Saadeh further admitted assisting Nader Saadeh with these plans by letting him purchase airline tickets using Saadeh’s credit card, removing the SIM card from Nader’s smartphone and resetting the smartphone in an effort to avoid detection. Saadeh admitted that Saleh assisted Nader Saadeh by giving him a contact that would facilitate Nader’s travel from Turkey to ISIL in Syria. Saadeh further admitted that after his brother left the United States, Saleh and Topaz intended to travel overseas to join ISIL. After becoming aware that the FBI was investigating this matter, Saadeh instructed an individual who knew of Nader Saadeh’s support for ISIL to lie if questioned by the FBI on the subject. Saadeh further admitted telling this individual to “just play stupid,” “pretend it never happened” and “keep it honest up to a point.”
Saadeh admitted to knowing that ISIL was a designated terrorist organization and was taking over territory overseas, expelling non-Muslims from their homes and executing individuals who did not obey ISIL’s commands.
The count of conspiracy to provide material support to a designated foreign terrorist organization carries a maximum potential penalty of 15 years in prison and a fine of $250,000. Sentencing is scheduled for Feb. 16, 2016.
Saadeh’s alleged co-conspirators are being prosecuted and are currently in federal custody. On Sept. 9, 2015, Topaz pleaded guilty before Judge Wigenton to conspiring to provide material support to ISIL. Nader Saadeh has been charged in a criminal complaint with conspiring to provide material support to ISIL, among other charges. Saleh has been indicted on terrorism-related charges in the Eastern District of New York. The charges and allegations against Nader Saadeh and Saleh are merely accusations, and they are presumed innocent unless and until proven guilty.
Assistant Attorney General Carlin and U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, under the direction of Special Agent in Charge Frankel, and the Joint Terrorism Task Force with the investigation leading to today’s guilty plea.
The case is being prosecuted by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta and Francisco J. Navarro of the District of New Jersey, with assistance from Trial Attorney Robert Sander of the National Security Division’s Counterterrorism Section.
Alaa Saadeh Information
Alaa Saadeh Plea Agreement
Hudson County, New Jersey, Man Admits He Conspired to Provide Material Support to ISILRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted that he conspired to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, U.S. Attorney Paul J. Fishman, Assistant Attorney General for National Security John P. Carlin, and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division announced.
Alaa Saadeh, 24, of West New York, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiring with others to provide material support to ISIL. He remains detained without bail.
“Alaa Saadeh is the second defendant in this case who has admitted trying to provide material support to a known terrorist organization,” U.S. Attorney Fishman said. “That organization, and others who share its goals, are intent on recruiting people in this country and around the world to join their campaign against our security. The fight against these kinds of groups is going on around the world, but is also being waged here at home. They are intent on threatening the safety of Americans here and abroad, and we and our law enforcement partners are intent on stopping them.”
“Saadeh conspired with his brother and others to travel overseas to join ISIL,” Assistant Attorney General Carlin said. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“Today in the U.S. District Court of New Jersey Alaa Saadeh admitted he planned to travel to Syria to join ISIL along with others,” FBI Newark Special Agent in Charge Richard M. Frankel said. “Now, thanks to the efforts of Newark FBI’s Joint Terrorism Task Force, Saadeh will go to prison rather than take up arms overseas.”
According to documents filed in this and related cases and statements made in court:
Saadeh admitted that prior to his arrest June 29, 2015, by the FBI Joint Terrorism Task Force (JTTF), he planned to travel overseas to join ISIL along with others. Saadeh discussed the plans to join ISIL with his brother, Nader Saadeh, Samuel Rahamin Topaz, and Munther Omar Saleh, and admitted that at various times each of them indicated that they wanted to join ISIL. Saadeh also admitted he watched ISIL-related videos with Nader Saadeh and Topaz, some of which depicted the execution of individuals – both Muslim and non-Muslim – regarded by ISIL as enemies.
On May 5, 2015, Saadeh’s brother, Nader Saadeh, departed the United States with plans to travel overseas to join ISIL as part of the conspiracy, according to Alaa Saadeh’s statements in court today. Saadeh admitted assisting his brother with these plans by letting him purchase airline tickets using Saadeh’s credit card and by removing the SIM card from Nader’s smartphone and resetting the smartphone in an effort to avoid detection. Saadeh admitted that Saleh assisted Nader Saadeh by giving him a contact who would facilitate Nader’s travel from Turkey to ISIL in Syria.
Saadeh admitted that after Nader Saadeh left the United States, Saleh and Topaz intended to travel overseas to join ISIL. After becoming aware the FBI was investigating this matter, Saadeh instructed an individual who knew of Nader Saadeh’s support for ISIL to lie to the FBI if the individual was interviewed. Saadeh told this individual to “just play stupid,” “pretend it never happened,” and “keep it honest up to a point.”
Saadeh admitted knowing that ISIL was a designated terrorist organization and was taking over territory overseas, expelling non-Muslims from their homes, and executing individuals who did not obey ISIL’s commands.
The count of conspiracy to provide material support to a designated foreign terrorist organization carries a maximum potential penalty of 15 years in prison and a fine of $250,000. Sentencing is scheduled for Feb. 16, 2016.
Saadeh’s alleged conspirators are being prosecuted and are currently in federal custody. On Sept. 9, 2015, Topaz pleaded guilty before Judge Wigenton to conspiring to provide material support to ISIL. Nader Saadeh has been charged in a criminal complaint with conspiring to provide material support to ISIL, among other charges. Saleh has been indicted on terrorism-related charges brought by the U.S. Attorney’s Office for the Eastern District of New York.
The charges and allegations against Nader Saadeh and Saleh are merely accusations, and they are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman and Assistant Attorney General Carlin credited special agents of the FBI, under the direction of Special Agent in Charge Frankel in Newark, and the JTTF, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta, and Francisco J. Navarro of the U.S. Attorney’s Office National Security Unit in Newark, with assistance from Trial Attorney Robert Sander of the National Security Division’s Counterterrorism Section.
Defense counsel for Alaa Saadeh: Maria Noto Esq., Matawan, New Jersey
Former Burlington Coat Factory Employee Admits Tax Evasion on Income Generated from Shell Recruitment CompanyRead the Press Release
CAMDEN, N.J. - A Mt. Laurel, New Jersey, woman today admitted evading taxes on income she generated by using her position as a Burlington Coat Factory vice president to approve payments to her shell recruitment company, U.S. Attorney Paul J. Fishman announced.
Barbara Ames, 53, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging her with one count of tax evasion.
According to documents filed in this case and statements made in court:
In 2007, Barbara Ames was hired by Burlington Coat Factory as Vice President of Talent Acquisition. Ames was responsible for recruiting and hiring all executive management positions within Burlington Coat Factory, including store management, corporate management and field management. As part of her job duties, Ames was responsible for working with vendors and suppliers associated with her position. Burlington Coat Factory used outside companies, or “headhunters,” to identify and recruit qualified applicants for open positions. Ames had sole authority to approve payments to headhunters working on behalf of Burlington Coat Factory.
In 2008, Ames established L. Castillo LLC using her mother’s name and Social Security number. Ames admitted that between 2008 and 2012, she performed headhunting services under the name of L. Castillo on behalf of Burlington Coat Factory. Afterwards, Ames generated invoices from L. Castillo and submitted those invoices to Burlington Coat Factory for payment.
Ames admitted she used her authority at Burlington Coat Factory to approve the L. Castillo invoices. From Aug. 4, 2008 through Nov. 2, 2012, Ames caused Burlington Coat Factory to issue approximately 46 checks, totaling $466,290, to pay L. Castillo invoices. Ames later used these funds for personal expenditures.
Ames admitted that, from 2009 through 2012, she failed to include her income from L. Castillo, which caused a tax loss of $143,877.
The charge to which Ames pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 1, 2016.
U.S. Attorney Fishman credited special agents of the IRS, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: John O. Poindexter III Esq., Moorestown
Behavioral Health Services Provider Agrees to Pay $1 Million for Allegedly Submitting False Claims to Federal Health Care ProgramsRead the Press Release
NEWARK, N.J. – Vericare Management Inc., a behavioral health services provider, agreed today to pay more than $1 million to resolve allegations that it violated the False Claims Act by falsely billing federal health care programs for services that were not medically necessary, U.S. Attorney Paul J. Fishman announced.
Vericare, which is headquartered in San Diego, California, provides psychiatric and psychological services focused on geriatric patients in long-term care and skilled nursing facilities in New Jersey, California, and Texas, among other states.
According to the contentions of the United States contained in the settlement agreement:
From Jan. 1, 2012, through Dec. 31, 2014, Vericare sought and obtained “standing orders” or other agreements with 128 facilities under which Vericare’s clinicians performed evaluations on all new admissions to the facility. These evaluations were conducted regardless of whether a physician provided a patient-specific order indicating that such an evaluation was medically necessary. Vericare improperly submitted claims to the United States pursuant to these standing orders or other agreements for diagnostic interviews, evaluations, and examinations.
These allegations were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.
The settlement also resolves allegations that Vericare incorrectly submitted claims to Medicare for certain nursing facility evaluation and management services which were not supported by the patient’s medical record. This component of the settlement resulted from Vericare’s self-disclosure of this issue to the U.S. Attorney’s Office. As a result of Vericare’s decision to self-disclose this issue, the company was required to pay significantly less than the treble damages and penalties that the United States may seek under the False Claims Act.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s settlement.
The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $640 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The qui tam case is captioned United States ex rel. Bart Rossi v. Vericare, Civil Action No. 13-6884 (D.N.J.).
Defense counsel for Vericare:
Michael Kendall Esq., Boston, Massachusetts
Counsel for relator:
Lisa M. Fittipaldi Esq., Warren, New Jersey
Lancaster County, Pennsylvania, Man Sentenced to 30 Months in Prison for Interstate Burglary SchemeRead the Press Release
TRENTON, N.J. – A Lancaster County, Pennsylvania, man was sentenced today to 30 months in prison for his role in transporting goods stolen through a string of commercial burglaries throughout northern and southern New Jersey, U.S. Attorney Paul J. Fishman announced.
Eliezer Medina, 37, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of conspiracy to transport stolen goods in interstate commerce. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From November 2013 through August 2014, Medina conspired with his brother, José Medina, 39, to steal money by burglarizing stores in New Jersey, New York, Pennsylvania, and elsewhere, and then transport the stolen money across state lines. He admitted burglarizing at least three stores in Paramus, New Jersey, and Pennsauken, New Jersey, and to stealing approximately $625,000. The burglaries followed the same general pattern, including advance surveillance, disabling of the alarm systems and the use of pry-bars and vertical cuts to gain access to the stores’ safes.
In addition to the prison term, Judge Cooper sentenced Medina to two years of supervised release. He must also forfeit $625,000.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Richard M. Frankel, and special agents of the FBI in Philadelphia Branch, under the direction of Special Agent in Charge William F. Sweeney Jr., with the investigation leading to today’s sentencing. He also thanked the Paramus, New Jersey; Wayne, New Jersey; and Pennsauken Township, New Jersey, police departments; the N.J. State Police; and the Lancaster City, Pennsylvania; East Lampert, Pennsylvania; Manor Township, Pennsylvania; Manheim Township, Pennsylvania; and East Hempfield, Pennsylvania, police departments for their work on the case.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the General Crimes Unit in Newark.
José Medina remains charged by complaint with conspiracy to transport stolen goods in interstate commerce. The charges and allegations in the complaint are merely accusations, and the defendant remains innocent unless and until proven guilty.
Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark
Fourteen Grape Street Crips Leaders, Members and Associates Indicted for Racketeering Conspiracy, Violent CrimesRead the Press Release
NEWARK, N.J. – Fourteen leaders, members and associates of the New Jersey Grape Street Crips, a violent street gang operating in and around Newark, were charged by indictment today with racketeering, violent crimes in aid of racketeering, drug trafficking, firearms offenses and related crimes, U.S. Attorney Paul J. Fishman announced.
Today’s third superseding indictment follows the coordinated takedown in May 2015 of 50 alleged members and associates of the Grape Street Crips who were charged by criminal complaints with drug-trafficking, physical assaults and witness intimidation. The charges are the result of a long-running DEA and FBI investigation, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. Overall, 71 defendants have been charged with federal and state charges.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark, including the area of 6th Avenue and North 5th Street and public-housing complexes at Pennington Court, Oscar Miles, the Millard Terrell Homes, the John W. Hyatt homes and the former James Baxter Terrace complex.
Gang leaders, members and associates routinely engaged in acts of intimidation and violence to avenge attacks or perceived slights against the gang, silence individuals who were perceived to be cooperating with law enforcement and protect their drug trafficking activities. Members frequently used social media, including Instagram and YouTube, to disseminate the rules of the gang, intimidate witnesses and other members of the community, and promote the gang’s reputation for violence and drug-trafficking.
In October 2013, Kwasi Mack, a/k/a “Welchs,” 26, of Belleville, New Jersey, and Corey Batts, a/k/a “C-Murder,” a/k/a “Cee,” 30, of Newark, two Grape Street Crips leaders, plotted to kill a gang rival (Victim 3). After Batts missed an opportunity to shoot and kill Victim 3, Mack ordered Batts to have junior gang members patrol the Oscar Miles housing complex in case the gang rival returned to the area. Several weeks later, Batts and other gang members allegedly shot and nearly killed the gang rival and an innocent woman in broad daylight in Newark.
Also in October 2013, Mack and other Grape Street Crips members, including Justin Carnegie, a/k/a “Dew Hi,” a/k/a “Dew,” a/k/a “D,” 28, Rashan Washington, a/k/a “Shoota,” 25, and Aaron Terrell, a/k/a “Push,” 24, all of Newark, allegedly committed a shooting in retaliation for the murder of a fellow gang member.
Carnegie and Ahmed Singleton, a/k/a “Gangsta-Moo,” a/k/a “Gangsta,” a/k/a “Mooshie,” 26, of Newark, frequently carried and stock-piled firearms in furtherance of the gang’s activities and talked about harming individuals who were perceived to be cooperating with law enforcement. In May 2010, Carnegie stored a loaded Romarm SA Cugir 7.62x39 assault rifle, an American Industries Calico M100 .22LR carbine, 7.62x39 caliber ammunition, .22 caliber ammunition and $2,952 in Orange, New Jersey.
In March 2015, during the lawful wiretap of a cell phone used by Singleton, law enforcement agents intercepted Singleton detailing his efforts to intimidate a witness who took the witness stand to testify against him. Singleton was facing trial for aggravated assault in connection with a shooting. He bragged about how he had “beat trial” by intimidating the main witness and getting the state charges against him dismissed.
Numerous gang members — including Washington, Eric Concepcion, a/k/a “Eddie Arroyo,” a/k/a “E-Wax” a/k/a “Wax,” 28, Hakeem Vanderhall, a/k/a “Keem,” a/k/a “Sugar Bear,” 31, Jamar Hamilton, a/k/a “Gunner,” 27, Tyquan Clark, a/k/a “Tah,” 28, and James Gutierrez, a/k/a “Bad News,” 24, — sold thousands of “clips” of crack-cocaine in the area of 6th Avenue and North 5th Street (a clip is slang for a package containing 10 doses). To protect their territory, the Grape Street Crips used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a .45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle and numerous semi-automatic handguns.
Also, Hanee Cureton, a/k/a “City,” 30, Khalil Stafford, a/k/a “Stod,” a/k/a “Homicide,” 31, and Lateef Grimsley, a/k/a “Bird,” 26, distributed kilogram quantities of heroin in and around Newark. Cureton controlled a heroin mill located inside a Newark apartment that was used exclusively to package heroin for street-level distribution. Law enforcement agents later recovered several kilograms of heroin, glassine envelopes, cutting agents and blenders from the apartment.
The chart below summarizes the offenses charged in the third superseding indictment and the maximum and minimum penalties faced by each of the charged defendants. The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to the charges. U.S. Attorney Fishman also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto, Elizabeth M. Harris and Barry Kamar of the District of New Jersey’s Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Count
Offense
Defendant(s)
Max Penalties
1
Racketeering Conspiracy
Kwasi Mack, a/k/a “Welchs,” “The Prince,” “Mini Me,” 26, Belleville
Corey Batts, a/k/a “C-Murder,” “Cee,” 30, Newark
Hakeem Vanderhall, a/k/a “Keem,” “Sugar Bear,” 31, East Orange
Eric Concepcion, a/k/a “Eddie Arroyo,” “E-Wax,” “Wax,” 28, Clifton
Justin Carnegie, a/k/a “Dew Hi,” “Dew,” “D,” 28, East Orange
Ahmed Singleton, a/k/a “Gangsta-Moo,” “Gangsta,” “Mooshie,” 26, Newark
Jamar Hamilton, a/k/a “Gunner,” 26, Tottowa
Tyquan Clark, a/k/a “Tah,” 28, Newark
Rashan Washington, a/k/a “Shoota,” 25, Newark
Hanee Cureton, a/k/a “City” 30, Springfield
Khalil Stafford, a/k/a “Stod,” “Homicide,” 31, Newark
James S. Gutierrez, a/k/a “Bad News,” 24, Newark
Life imprisonment;
$250,000 fine
2
Conspiracy to Commit Murder in Aid of Racketeering
Kwasi Mack
Corey Batts
10 years in prison; $250,000 fine
3
Attempted Murder in Aid of Racketeering
Kwasi Mack
Corey Batts
10 years in prison; $250,000 fine
4
Attempted Murder in Aid of Racketeering
Kwasi Mack
Corey Batts
10 years in prison; $250,000 fine
5
Conspiracy to Assault with a Dangerous Weapon in Aid of Racketeering
Kwasi Mack
Corey Batts
3 years in prison; $250,000 fine
6
Assault with a Dangerous Weapon in Aid of Racketeering
Kwasi Mack
Corey Batts
20 years in prison; $250,000 fine
7
Assault with a Dangerous Weapon in Aid of Racketeering
Kwasi Mack
Corey Batts
20 years in prison; $250,000 fine
8
Use of a Firearm in Furtherance of a Crime of Violence
Kwasi Mack
Corey Batts
Life imprisonment; 10-year mandatory minimum; $250,000 fine
9
Conspiracy to Possess a Firearm in Furtherance of a Crime of Violence
Kwasi Mack
Corey Batts
20 years in prison; $250,000 fine
10
Assault with a Dangerous Weapon in Aid of Racketeering
Kwasi Mack
20 years in prison; $250,000 fine
11
Conspiracy to Assault with a Dangerous Weapon in Aid of Racketeering
Kwasi Mack
Justin Carnegie
Rashan Washington
Aaron Terrell, a/k/a “Push” 24, Newark
3 years in prison; $250,000 fine
12
Conspiracy to Possess a Firearm in Furtherance of a Crime of Violence
Kwasi Mack
Justin Carnegie
Rashan Washington
Aaron Terrell
20 years in prison; $250,000 fine
13
Use of a Firearm in Furtherance of a Crime of Violence
Kwasi Mack
Life in prison; 25-year mandatory minimum; $250,000 fine
14
Conspiracy to Distribute Heroin
Kwasi Mack
Life in prison;10-year mandatory minimum; $10,000,000 fine
Corey Batts
Life in prison; 20-year mandatory minimum; $10,000,000 fine
15
Distribution, and Possession with Intent to Distribute, Heroin
Corey Batts
30 years in prison; $2,000,000 fine
16
30 years in prison; $2,000,000 fine
17
30 years in prison; $2,000,000 fine
18
Use of a Firearm in Furtherance of a Drug-Trafficking Crime
Kwasi Mack
Life in prison; 25-year mandatory minimum; $250,000 fine
19
Use of a Firearm in Furtherance of a Drug-Trafficking Crime
Corey Batts
Life in prison; 25-year mandatory minimum; $250,000 fine
20
Conspiracy to Distribute Crack-Cocaine
Hakeem Vanderhall
Eric Concepcion
Jamar Hamilton
Tyquan Clark
Rashan Washington
James S. Gutierrez
Life in prison;10-year mandatory minimum; $10,000,000 fine
21
Continuing Criminal Enterprise
Hakeem Vanderhall
Eric Concepcion
Jamar Hamilton
Tyquan Clark
Rashan Washington
Life in prison; 20-year mandatory minimum
22
Conspiracy to Distribute Heroin
Justin Carnegie
Ahmed Singleton
Life in prison;10-year mandatory minimum; $10,000,000 fine
23
Conspiracy to Distribute Heroin
Hanee Cureton
Khalil Stafford
Lateef Grimsley, a/k/a “Bird,” 26, Newark
Life in prison;10-year mandatory minimum; $10,000,000 fine
24
Distribution of Heroin
Khalil Stafford
Life in prison;10-year mandatory minimum; $10,000,000 fine
25
Distribution of Heroin
Hanee Cureton
Life in prison;10-year mandatory minimum; $10,000,000 fine
26
Felon-in-Possession of a Firearm
Kwasi Mack
10 years in prison; $250,000 fine
27
Felon-in-Possession of a Firearm
Corey Batts
10 years in prison; $250,000 fine
Former Gloucester County Financial Advisor Sentenced to 63 Months in Prison for $900,000 Investment Fraud SchemeRead the Press Release
CAMDEN, N.J. – John Montague, a former Gloucester County, New Jersey-based financial advisor was sentenced today to 63 months in prison for defrauding his clients of more than $900,000 by having them make investment checks payable to himself, which he then diverted to his personal use, U.S. Attorney Paul J. Fishman announced.
Montague, 60, of Mantua, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of wire fraud. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Montague was licensed to sell mutual funds, variable annuities, and insurance premiums but at no time was he licensed to sell corporate or municipal securities, direct participation programs, or options. Montague engaged in a scheme to defraud his clients by soliciting and inducing them to purchase investment vehicles that Montague knew he could not sell. Montague described the investment vehicles to his clients as guaranteed investments that promised a rate of return of approximately 6 percent. Montague instructed his clients to make their investment checks payable to him, and he then deposited them into his personal bank accounts. To maintain the clients’ confidence in the investments, Montague issued periodic “dividend” checks to his clients.
In addition to the prison term, Judge Hillman sentenced Montague to three years of supervised release and ordered him to pay $788,716 in restitution.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge William F. Sweeney Jr. in Philadelphia, with the investigation leading to today’s sentencing.
The government is represented by Attorney in Charge R. Stephen Stigall of the U.S. Attorney’s Office Criminal Division in Camden.
Two Grape Street Crips Gang Members Admit Dealing Heroin and Crack-Cocaine in Newark, New JerseyRead the Press Release
NEWARK, N.J. – Two members of the Grape Street Crips gang today admitted their roles in conspiracies to distribute heroin and crack-cocaine in and around Newark, New Jersey, U.S. Attorney Paul J. Fishman announced.
Larry Coleman, a/k/a “LA,” 28, of Newark, pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to distribute heroin. Tauheed Satchell, a/k/a “Tah,” 26, also of Newark, pleaded guilty before U.S. District Judge Jose L. Linares to a separate information charging him with one count of conspiracy to distribute crack-cocaine and one count of possessing a firearm as a previously convicted felon.
According to documents filed in this case and statements made in court:
Coleman admitted that from December 2014 through May 20, 2015, he conspired with others to distribute 20 bricks of heroin. Satchell admitted that from April 2014 through May 2015, he conspired with others to distribute 28 grams of crack-cocaine. Satchell, who was convicted in March 2009 of distributing a controlled substance on school property, also admitted possessing an AMT .380 9mm Kurz Backup semi-automatic pistol and six hollow point bullets.
The conspiracy to distribute heroin charge to which Coleman pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. The conspiracy to distribute crack-cocaine charge to which Satchell pleaded guilty carries a mandatory minimum of five years in prison, a maximum potential penalty of 40 years in prison and a $5 million fine. The unlawful possession of a firearm charge to which Satchell pleaded guilty carries a maximum potential penalty of 10 years in prison. Sentencing for Coleman and Satchell is set for Feb. 16, 2016 and Feb. 1, 2016, respectively.
In May 2015, over the course of three weeks, 50 alleged members and associates of the Grape Street Crips were charged by criminal complaints with drug-trafficking, physical assaults and witness intimidation. The charges are the result of a long-running investigation led by the DEA and FBI, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. Over the course of the entire investigation, 71 defendants have been charged with federal and state charges.
Other defendants who have recently pleaded guilty include Bernard Anderson, a/k/a “BA,” 32, and Dennis Wright, a/k/a “Hersh,” a/k/a “Coyote,” 32, both of Newark, who pleaded guilty to heroin distribution charges on Oct. 21, 2015, and Oct. 13, 2015, respectively. Monesha Johnson, a/k/a “Smoove,” 36, and Willie Brooks, a/k/a “Animal,” 24, both of Newark, pleaded guilty to conspiracy to distribute crack-cocaine on Oct. 6, 2015. Antonio Foye, a/k/a “Steel,” 29, of Newark pleaded guilty to possession of a firearm as a previously convicted felon and conspiracy to distribute crack-cocaine on Sept. 23, 2015.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to the pleas. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their work.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto, Elizabeth M. Harris, and Barry Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel:
Coleman: Adalgiza A. Nunez Esq., Newark
Satchell: Michael V. Gilberti Esq., Florham Park, New Jersey
Husband and Wife from Bergen County, New Jersey, Admit Embezzling More Than $150,000 from Union Benefit PlanRead the Press Release
NEWARK, N.J. – A husband and wife from Northvale, New Jersey, today admitted using a union health care benefit plan to steal more than $150,000 for their personal use, U.S. Attorney Paul J. Fishman announced today.
Leonard Telesca, 62, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count One of an indictment charging him with conspiracy to embezzle from a health care benefit program. Joann Telesca, 63, pleaded guilty before Judge Salas to Count Two of the indictment charging her with embezzling funds from the benefit program.
According to statements made and documents filed in court:
Between 2006 and 2011, Leonard and Joann Telesca operated the United International Brotherhood of All Trades, Technologies, Service, Administration, and Medical Workers Union (“All Trades Union”). All Trades Union sponsored a welfare fund to provide health care coverage to union participants, who were recruited over the internet. As administrators of the plan, Leonard and Joann Telesca were required to ensure that the funds were used exclusively for the benefit of union members.
Leonard Telesca admitted that from February 2009 through April 2011, he embezzled $159,598 in benefit funds for personal expenses. According to the indictment, the funds were used for mortgage payments on his residence and other rental property, cruises and luxury hotel stays. Joann Telesca admitted that from September 2009 through March 2010, she used $13,369 in benefit funds to make mortgage payments on a personal rental property in River Vale, New Jersey.
The charges to which Leonard and Joann Telesca pleaded guilty each carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for Feb. 8, 2016.
U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, New York Region, and the Employee Benefit Security Administration (EBSA) under the supervision of New York Regional Director Jonathan Kay, with the investigation.
The government is represented by V. Grady O'Malley, Senior Litigation Counsel of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
Defense counsel:
Leonard Telesca: Brian Neary Esq., Hackensack, New Jersey
Joann Telesca: Assistant Federal Public Defender Kevin F. Carlucci Esq., Newark
Honduran National Charged with Illegal Entry into the United States, Kidnapping Woman in Kansas City, MissouriRead the Press Release
CAMDEN, N.J. – A Honduran national appeared in federal court today to face charges that he illegally re-entered the United States after being deported and that he kidnapped a woman in Kansas City, Missouri, and raped her while they traveled to New Jersey, U.S. Attorney Paul J. Fishman announced.
José Amaya-Vasquez, 30, is charged by criminal complaint with one count of kidnaping and one count of illegal re-entry into the United States by an alien after removal. He appeared this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court and was detained.
According to the complaint:
On June 7, 2014, Amaya-Vasquez was arrested in Kansas City and charged with domestic assault against the victim referenced in the complaint. After he was removed from the United States by immigration authorities on July 7, 2014, Amaya-Vasquez was caught trying to illegally enter the United States on Sept. 9, 2014. He was incarcerated for 30 days and removed from the United States on Oct. 22, 2014. On Feb. 14, 2005, he was again arrested trying to enter the country and failed to make his required July 13, 2005 immigration court appearance.
On May 23, 2015, Amaya-Vasquez met the victim in the parking lot of the Burlington Coat factory in Independence, Missouri. Amaya-Vasquez allegedly entered the victim’s vehicle, threatened her with a knife and instructed her to follow him. The victim’s two-year old child was in the vehicle. The victim followed Amaya-Vasquez to an abandoned house in Kansas City, where he allegedly raped her.
From May 24, 2015 through May 25, 2015, Amaya-Vasquez took the victim and the child towards New York. He stopped at motels in Englewood, Ohio, and Bellmawr, New Jersey, and continued to rape the victim.
On May 26, 2015, officers from the Bellmawr Police Department, acting on information from the Kansas City Police Department, located the victim in the Bellmawr motel. Amaya-Vasquez escaped from the motel as the officers approached. Later that morning, officers from Bellmawr and Mt. Ephraim, New Jersey, arrested Amaya-Vasquez a short distance from the motel. Amaya-Vasquez has been in custody in Camden County since his arrest.
The kidnapping charge carries a maximum potential penalty of life in prison. The illegal re-entry into the United States charge carries a maximum potential penalty of two years in prison.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge William F. Sweeney Jr. in Philadelphia, special agents of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, and investigators with the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo, with the investigation leading to the charges. He also thanked the Kansas City Police Department and the Bellmawr Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Jason Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Assistant Federal Public Defender Maggie Moy Esq., Camden
Essex County, New Jersey, Man Sentenced to 114 Months for Armed CarjackingRead the Press Release
NEWARK, N.J. – An Irvington, New Jersey, man was sentenced today to 114 months in prison for brandishing a firearm while stealing a car in Newark, U.S. Attorney Paul J. Fishman announced.
Raheem Sylla, 24, of Irvington, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of theft of a motor vehicle by force, violence, and intimidation, and one count of use of a firearm in furtherance of a crime of violence. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
During the early morning of Sept. 22, 2014, Sylla and a conspirator allegedly approached a 2000 Chevrolet Tahoe parked on a Newark street. Sylla went to the front driver’s window of the Tahoe, pointed a firearm at the driver’s chest and ordered the driver out of the car. The other conspirator approached the front passenger’s side window of the Tahoe and ordered the other passenger out of the car. Sylla and the other male then entered the car and fled.
In addition to the prison term, Judge Salas sentenced Sylla to three years of supervised release.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the direction of Special Agent in Charge George P. Belsky; the Newark Police Department, under the direction of director Eugene Venable and Chief Anthony Campos; the Rutgers University Police Department, under the direction of Executive Director of Police Services Kenneth Cop; and the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Carolyn A. Murray; as well as criminal investigators from the U.S. Attorney’s Office in Newark with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office Criminal Division in Newark.
Union County, New Jersey, Youth Organization Leader Admits Sexually Abusing Children, Possessing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Linden, New Jersey, man who was a leader in a boys’ youth organization and a religious education teacher today admitted sexually abusing children and possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Gregory J. Aker, 46, pleaded guilty before U.S. District Judge Susan G. Wigenton in Newark federal court to an information charging him with possession of child pornography. He is currently in state custody.
According to the documents filed and statements made in court:
Aker was a leader with a boys’ youth organization and a religious education teacher with his church. On Feb. 22, 2014, Aker was arrested by the Linden Police Department for sexual assault and endangering the welfare of two minor children.
After his arrest, law enforcement obtained multiple computers and electronic storage media from Aker’s residence. Today, Aker admitted that the devices belonged to him and contained more than 600 images and dozens of videos of child sexual abuse that he knowingly collected. Aker also admitted sexually abusing more than one child who was known to him on more than one occasion.
The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Aker will be required to register as a sex offender. Sentencing is scheduled for Feb. 23, 2016.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, the New Jersey Regional Computer Forensics Laboratory, the Union County Prosecutor’s Office and the Linden Police Department with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Criminal Division in Newark.
Defense counsel: Jeffrey Hark Esq., Cherry Hill, New Jersey
Two California Men Charged with Conspiracy to Distribute Five Pounds of MethamphetamineRead the Press Release
NEWARK, N.J. – Two California men were charged today with conspiracy to distribute methamphetamine, U.S. Attorney Paul J. Fishman announced.
Rigoberto Sandoval-Varela, 30, of Stockton, California, and Mario I. Zavala-Rodriguez, 34, of Palo Alto, California, were charged by complaint with one count of conspiracy to possess methamphetamine with intent to distribute. Sandoval-Varela and Zavala-Rodriguez were arrested in Ontario, California, on Oct. 22, 2015, following an undercover law enforcement investigation. They are scheduled to make their initial court appearances later today in Los Angeles federal court.
According to the complaint:
Earlier this month, an undercover Drug Enforcement Administration (DEA) special agent in New Jersey negotiated with Sandoval-Varela via text message and telephone the purchase of a large quantity of narcotics to be brought from California to New Jersey. Another undercover law enforcement agent later met with Sandoval-Varela and Zavala-Rodriguez on Oct. 21, 2015, in California to conclude the deal. The defendants agreed to provide the undercover agent with large quantities of methamphetamine, heroin, and cocaine in exchange for approximately $765,000. The defendants met with the undercover agent the next day and displayed approximately five pounds of methamphetamine. The defendants fled the scene on foot as other agents approached and were quickly apprehended.
The conspiracy with which both defendants are charged is punishable by a maximum potential penalty of life in prison.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, the DEA’s Los Angeles Field Office and the State of California Department of Justice, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the U.S. Attorney’s Criminal Division in Newark.
Two Indian Nationals Arrested, Charged with Smuggling Foreign Nationals into the United States via Commercial FlightsRead the Press Release
NEWARK, N.J. – Two Indian nationals will appear in federal court today to face charges that they conspired to use commercial airline flights to smuggle foreign nationals into the United States, U.S. Attorney Paul J. Fishman announced.
Nileshkumar Patel, 41, and Harsad Mehta, 65, both of India, are charged by criminal complaint with one count of conspiracy to bring in and harbor aliens. In addition, Patel is charged with six counts and Mehta is charged with four counts of smuggling foreign nationals into the United States for private financial gain.
Both were arrested yesterday by special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) upon their arrival at Newark Liberty International Airport and are expected to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the complaint:
HSI received information that a smuggling operation run by Patel and Mehta was attempting to find methods to illegally smuggle foreign nationals from India into the United States. The investigation revealed that the smuggling organization recruited Indian nationals and others to pay fees in exchange for passage to the United States.
Beginning in April 2014, an undercover law enforcement officer posing as a smuggler began meeting with Patel and Mehta in Bangkok, Thailand. Patel and Mehta stated that they were involved in the smuggling business and had multiple Indian nationals that they were looking to smuggle into the United States. Mehta and Patel agreed to transport the Indian nationals from India to Thailand, at which point the undercover law enforcement officer would presumably use contacts to smuggle them into the United States via commercial airline flights. Patel and Mehta agreed to wire a $10,000 down payment for each individual to be smuggled into the United States and to pay a balance of tens of thousands of dollars for each individual once the foreign nationals arrived in the United States.
Over the ensuing months, Patel and Mehta arranged for six Indian nationals to be brought to Thailand for smuggling into the United States via Newark Liberty International Airport.
The conspiracy charge carries a maximum potential penalty of 10 years in prison. Each substantive charge of smuggling carries a maximum potential penalty of five years in prison.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of HSI, under the direction of Acting Special Agent in Charge Kevin Kelly in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S Attorney’s Office National Security Unit in Newark.
Former Executive Director of Jersey City Child Development Centers in Jersey City Charged with Stealing at Least $200,000Read the Press Release
NEWARK, N.J. - The former executive director of the Jersey City Child Development Centers Inc. (JCCDC) in Jersey City, New Jersey, was charged today with stealing more than $200,000 from the organization, U.S. Attorney Paul J. Fishman announced.
Robert E. Mays, 38, of Jersey City, New Jersey, was arrested this morning by federal agents and charged by complaint with one count of embezzlement and theft from JCCDC, an organization which provided early childhood development services and education to under-privileged children in Jersey City. Mays appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case and statements made in court:
Mays was the executive director of JCCDC from Sept. 10, 2013, to May 21, 2014. JCCDC received $8,020,919 in funds from the Administration for Children and Families (ACF), a division of the U.S. Department of Health and Human Services (HHS), for the benefit of the children who attended the child development programs that were managed by JCCDC. Mays was not authorized to expend JCCDC funds solely for his personal benefit. He allegedly engaged in a scheme to steal and take by fraud more than $200,000 from JCCDC principally by: (1) unilaterally increasing his annual salary from $96,500 to $155,000 without authorization from JCCDC, after two months of his employment with JCCDC; and (2) withdrawing funds from JCCDC bank accounts for his personal benefit without authorization from JCCDC. Mays allegedly took JCCDC funds intended to benefit children to purchase, among other things, a 2007 Maserati Quattroporte and a fur coat worth thousands of dollars.
The embezzlement count with which Mays is charged carries a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss resulting from the scheme, as well as mandatory restitution in the full amount of the loss to JCCDC.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, and special agents of the Office of the Inspector General, U.S. Department of Health and Human Services, under the direction of Scott J. Lampert, with the investigation leading to today’s arrest. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys José R. Almonte and Mala Ahuja Harker of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Alexander W. Booth Jr., Union City, New Jersey
Three Individuals in District of New Jersey Receive Attorney General AwardsRead the Press Release
NEWARK, N.J. – Attorney General Loretta Lynch recognized 279 Justice Department employees and 33 individuals, including three people in the District of New Jersey, with Attorney General Awards at a ceremony today in Washington, D.C. These annual awards recognize department employees and other individuals for their dedication to carrying out the Department of Justice’s mission.
“The individuals being honored today stand out within a department that holds all of its employees and partners to an extremely high standard of excellence,” said Attorney General Lynch. “They have put in long hours, made immense sacrifices, and, in some cases, placed themselves in harm’s way. They have taken on issues that once seemed intractable, and made progress on problems that once seemed impossible. And their outstanding work is an inspiration to public servants everywhere.”
In the District of New Jersey, the following individuals were recognized for the following award: Assistant U.S. Attorneys Leticia Vandehaar and David Feder and Auditor Barbara Radey received the Attorney General’s Award for Distinguished Service in connection with their work on the Department of Justice’s historic settlement with Bank of America regarding fraud in the sale of residential mortgage backed securities (RMBS) by BofA subsidiary Merrill Lynch.
“Merrill Lynch continued to buy and package mortgage loans in the run-up to the financial crisis, selling them off in securities, knowing full well that a substantial number of those loans were defective,” U.S. Attorney Paul J. Fishman said. “The tireless work of Leticia, David and Barbara as part of the RMBS Working Group led to a record-breaking settlement, which included the resolution of our office’s imminent multibillion-dollar suit.”
As part of the RMBS Working Group, AUSAs Vandehaar and Feder, with the assistance of Radey, conducted a Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) investigation into misrepresentations made by Merrill Lynch to investors in 72 RMBS throughout 2006 and 2007. The investigation revealed that Merrill Lynch regularly told investors the loans it was securitizing were made to borrowers who were likely and able to repay their debts. Merrill Lynch made these representations even though it knew, based on the due diligence it had performed on samples of the loans, that a significant number of those loans had material underwriting and compliance defects – including as many as 55 percent in a single pool. Merrill Lynch rarely reviewed the unsampled loans to ensure that the defects observed in the samples were not present throughout the remainder of the pools. Merrill Lynch also disregarded its own due diligence and securitized loans that the due diligence vendors had identified as defective.
As a result of the District of New Jersey’s investigation of Merrill Lynch and other investigations conducted by Working Group members across the country, BofA agreed in August 2014 to a $16.65 billion global settlement – at that time, the largest civil settlement with a single entity in American history – to resolve federal and state claims against BofA and its former and current subsidiaries, including Merrill Lynch and Countrywide Financial Corporation. As part of this global resolution, the bank agreed to pay a $5 billion penalty – the largest FIRREA penalty ever – and provide billions of dollars of relief to struggling homeowners.
Vandehaar, Feder, and Radey share this award with the other Working Group members who investigated cases resolved by the global settlement with BofA, as well as those who investigated cases resolved in a similar settlement between the Department of Justice and Citibank.
Sussex County, New Jersey, Man Charged with Distributing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Hardyston, New Jersey, man was charged today with exchanging images of child sexual abuse with an offender living in Maryland, U.S. Attorney Paul J. Fishman announced.
Marshall M. Cohen, 48, is charged by complaint with one count of distributing images of child sexual abuse. He appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and remains in federal custody.
According to the complaint:
In December 2014, a law enforcement investigation revealed than an individual living in Maryland (the “Maryland Offender”) produced images of child sexual abuse depicting a two-year old girl to whom he was believed to have had access. The Maryland Offender disseminated the images to Cohen in exchange for other images of child sexual abuse in Cohen’s possession. Today, law enforcement officers executed a search warrant at Cohen’s Hardyston address where he allegedly admitted receiving and sending images of child sexual abuse.
The child pornography distribution charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, as well as the New Jersey Regional Computer Forensics Laboratory, the Sussex County Prosecutor’s Office and the Hardyston Police Department with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the U.S. Attorney’s Office Criminal Division in Newark.
Two Essex County Men Charged with Wire FraudRead the Press Release
NEWARK, N.J. – A Newark federal grand jury today indicted two Essex County men for their respective roles in a scheme that allegedly defrauded credit card companies of hundreds of thousands of dollars, U.S. Attorney Paul Fishman announced.
Richard Adebayo, 38, of East Orange, New Jersey, and Amos Peter Agbajaife, 37, of Newark, are each charged with one count of conspiracy to commit wire fraud, eight counts of wire fraud, and one count of aggravated identity theft. They were originally charged by complaint on Sept. 16, 2014. Adebayo was arrested in 2014 and Agbajaife remains at large.
According to documents filed in this case and statements made in court:
From March 2014 to April 2014, Adebayo and Agbajaife fraudulently obtained personal identifying information, including dates of birth, Social Security numbers, and passwords, of credit card holders. They used the information to fraudulently obtain replacement credit cards in the victims’ names and then used the cards to purchase high-value items from retail stores.
Adebayo was carrying a laptop computer when he was arrested. A forensic analysis of the computer allegedly revealed the stolen identities, including names, Social Security numbers, dates of birth, addresses, bank account information, and credit card information of at least 70 victims. Law enforcement confirmed that approximately $350,000 in fraudulent charges was incurred on the credit cards of the victims.
Each count of wire fraud and conspiracy to commit wire fraud carries a maximum potential penalty of 30 years in prison and a fine of up to $1 million. The count of aggravated identity theft carries a mandatory term of two years in prison, which must run consecutively to any term of imprisonment imposed for other counts of the indictment
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg and Special Assistant U.S. Attorney Erica Liu of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel for Adebayo: Michael D’Alessio Esq., West Orange, New Jersey
Jersey City, New Jersey, Man Sentenced to Five Years of Probation for Trafficking Threatened TurtlesRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man was sentenced today to five years of probation for conspiring to traffic turtle species designated as threatened under New Jersey state law, U.S. Attorney Paul J. Fishman announced.
Patrick Elfers, 48, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiracy to violate the Lacey Act, which prohibits the interstate sale of wildlife with a market value of more $350 that has been taken or possessed in violation of any state law or regulation. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
New Jersey’s Endangered and Nongame Species Act prohibits the taking, possession, transportation, exportation or sale of spotted turtles, North American wood turtles and Eastern box turtles, among other species. New Jersey has designated the North American wood turtle as threatened because it is a vulnerable species that could become endangered. The spotted turtle and Eastern box turtle are listed as species of special concern.
Elfers admitted that, from December 2011 through March 2014, he possessed various turtle species, including spotted turtles, North American wood turtles and Eastern box turtles, at his home in Jersey City without the required permits under New Jersey State law. He advertised the turtles on wildlife trade websites to prospective purchasers in New Jersey and elsewhere. Elfers also shipped turtles to purchasers in New York State by tying them in tube socks to restrict their movement and packing them in boxes that were neither designed nor appropriate for the shipment of live animals.
As part of his probationary term, Elfers is prohibited from residing with wildlife of any kind and his computer will be monitored for any online wildlife trade activity. Judge Chesler also fined Elfers $30,450 for the care and housing of the 40 turtles Elfers forfeited as part of his plea agreement. The mandatory forfeiture included 27 Eastern box turtles, one Florida box turtle, three three-toed box turtles, five Gulf Coast box turtles and four North American wood turtles.
U.S. Attorney Fishman credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction Resident Special Agent in Charge Preston Fant, with the investigation leading to today’s sentencing.
The Government is represented by Assistant United States Attorney Kathleen P. O'Leary of the U.S. Attorney's Office Health Care and Government Fraud Unit in Newark.
Defense counsel: James R. Lisa Esq., Newark
Philadelphia Man Sentenced to More Than 10 Years in Prison for Trying to Distribute 1.7 Kilograms of Pure MethamphetamineRead the Press Release
NEWARK, N.J. – A Philadelphia man was sentenced today to 126 months in prison for trying to deliver 1.7 kilograms of pure methamphetamine in Elizabeth, New Jersey, U.S. Attorney Paul J. Fishman announced.
Aaron Vega-Castelo, 29, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an indictment charging him with one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Dec. 11, 2013, Vega-Castelo was stopped while driving a blue Jeep on the New Jersey Turnpike in Elizabeth. Law enforcement found four plastic food storage-style containers of methamphetamine hydrochloride and two shoeboxes containing approximately $110,000 in cash in the back seat area of his vehicle. Vega-Castelo admitted that at the time he was stopped by law enforcement, he was on his way to deliver the drugs and cash to other individuals near an Ikea in Elizabeth.
DEA testing of the seized methamphetamine revealed that it had a net weight of 1.79 kilograms and substance purity of 95.1 percent, which results in 1.7 kilograms of pure methamphetamine hydrochloride.
In addition to the prison term, Judge Arleo sentenced Vega-Castelo to five years of supervised release.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Narcotics and Organized Crime Drug Enforcement Task Force Unit in Newark.
Defense counsel: Eric M. Mark Esq., Newark, New Jersey
Disbarred New York Attorney Indicted for Real Estate Investment Fraud Scheme and Money LaunderingRead the Press Release
NEWARK, N.J. – A disbarred New York attorney was indicted for allegedly engaging in a real estate investment fraud conspiracy that defrauded more than 15 victims of $5 million from 2009 to the present, U.S. Attorney Paul J. Fishman announced today.
Pasquale Stiso, a/k/a “Pat Stiso,” 54, of New Rochelle, New York, is charged by indictment with one count of conspiracy to commit wire fraud, seven substantive counts of wire fraud, and three counts of money laundering. The indictment was returned Oct. 14, 2015, by a federal grand jury sitting in Newark. Co-defendant Paul Mancuso previously pleaded guilty in federal court to conspiring with Stiso to commit wire fraud.
According to documents filed in this case and statements made in court:
From 2009 through the present, Mancuso held himself out as an investor, broker, and developer of various purported investments. Mancuso obtained from his victims substantial investments for various projects that, in fact, either did not exist at all or in which Mancuso had no actual involvement. Stiso held himself out as an individual who was working with Mancuso on various purported projects. Many of the victims of Stiso and Mancuso’s schemes lost all or substantially all of the money they invested with Mancuso and Stiso. Many lost all or most of their life savings in the various schemes to defraud.
Stiso and Mancuso falsely represented to some victims that they would purchase event tickets, such as tickets to sporting events and concerts, at a lower or wholesale rate, and then resell them to members of the public at an inflated rate, creating profits for their investors. In reality, Stiso and Mancuso did not buy tickets with their victims’ money.
In one of the real estate schemes, Stiso and Mancuso falsely represented to victims that they were investors in a real estate development project in Valley Cottage, New York, and that investor money would be used to purchase an interest in real property. The real property interest would then be resold at an increased price, creating profits for their investors. In reality, Stiso and Mancuso did not invest in any such real estate project with their victims’ money. Instead, they engaged in monetary transactions designed to funnel, and in many instances launder, the victims’ investments for their own benefit, including to pay illegal gambling debts. Stiso and Mancuso were heavily involved in illegal gambling pursuits and they both owed substantial sums of money to one of their bookmakers.
The charge of wire fraud conspiracy and the substantive counts of wire fraud each carry a maximum potential penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Each money laundering count carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and criminal investigators of the U.S. Attorney’s Office with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorneys Francisco J. Navarro and Anthony J. Mahajan of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Henry E. Klingeman Esq., Newark
Bergen County, New Jersey, Man Sentenced to Six Years in Prison for Defrauding Foreign Nation of More Than $3.5 MillionRead the Press Release
TRENTON, N.J. – A former international legal advisor and New York-licensed attorney was sentenced today to 72 months in prison for using a sham accounting firm to defraud a foreign nation of more than $3.5 million, U.S. Attorney Paul J. Fishman announced.
Bobby Boye, a/k/a “Bobby Ajiboye,” a/k/a “Bobby Aji-Boye,” 52, of Mahwah, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to commit wire fraud. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
As part of his employment as an international legal advisor for the victim nation, which is referred to in the information as “Country A,” Boye served on a committee responsible for reviewing and evaluating bids, solicited in February 2012, for a multimillion-dollar contract to provide legal and tax accounting advice to Country A. In order to secure the lucrative contract for himself, Boye created a sham New York law and accounting firm called Opus & Best Law Services LLC (Opus & Best) that, unbeknownst to Country A, was secretly controlled by Boye.
In March 2012, Boye caused Opus & Best to submit by email a bid for the contract with Country A. The bid documents contained multiple, material misrepresentations and omissions, including: (1) a false claim that Opus & Best was founded in 1985 and was registered as a legal and accounting services provider in Europe, the Middle East and Africa; (2) a fraudulent listing of several purported employees of Opus & Best; and (3) a reference to prior consulting work purportedly performed by Opus & Best for another foreign country. In reality, Boye created Opus & Best for the purpose of submitting the fraudulent bid documents. Opus & Best employed no one other than Boye, let alone the professionals identified in the bid, and had never provided consulting services to the foreign country listed as a reference. The bid documents failed to disclose that Boye’s affiliation with Opus & Best created a conflict of interest and rendered him a third-party beneficiary of the proposed contract.
Unaware that Opus & Best was a sham firm secretly controlled by Boye, and relying on the recommendation of Boye, Country A awarded the contract to Opus & Best in June 2012. Under the terms of the consulting contract, Boye was one of the two project coordinators acting on behalf of Country A and had authority to receive and approve invoices for payment.
Between June 2012 and December 2012, Country A wired more than $3.5 million to Opus & Best’s New York business checking account, which was controlled by Boye. He used a substantial part of the money to purchase four properties in New Jersey for more than $1.5 million in cash, three luxury vehicles (a 2012 Bentley for $172,000, a 2012 Range Rover for $100,983, and a 2011 Rolls Royce for $215,000), and two designer watches for almost $20,000.
In addition to the prison term, Judge Wolfson ordered Boye to serve three years of supervised release and pay $3,510,000 in restitution.
U.S. Attorney Fishman credited special agents of the FBI’s Garret Mountain Resident Office in Woodland Park, New Jersey, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark and Assistant U.S. Attorney Barbara Ward of the U.S. Attorney’s Office’s Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
Defense counsel: K. Anthony Thomas, Assistant Federal Public Defender, Newark