District of New Jersey
Press releases recorded for this federal judicial district.
Middlesex County, New Jersey, Lawyer Sentenced to 27 Months in Prison for Extorting and Defrauding Police Officers, Others Through Fake IRS InvestigationRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, lawyer and certified public accountant was sentenced today to 27 months in prison for conspiring with a New Jersey mortgage broker to extort and defraud victims by falsely representing to them that they were the subjects of criminal investigations, U.S. Attorney Paul J. Fishman announced.
Thomas G. Frey, 55, of Edison, New Jersey, previously pleaded guilty before U.S. District Judge Joel A. Pisano to two counts of an indictment charging him with conspiracy to commit extortion under fear of economic harm and to commit wire fraud. The sentence was imposed by U.S. District Judge Anne E. Thompson in Trenton federal court.
According to documents filed in this case and statements made in court:
Frey, Robert G. Cusic Jr., a Millstone, New Jersey, mortgage broker, and another conspirator (named “CC-1” in the indictment) schemed to defraud four victims, including two police officers, by falsely representing to them that they were the subjects of criminal investigations, principally by the IRS, in connection with investment properties that some of them owned. Frey and Cusic falsely represented that while Cusic was at a property formerly owned by one of the victims, Cusic encountered two IRS special agents (SA-1 and SA-2) who questioned him extensively about some of the victims.
Frey falsely told the victims he had ongoing communications with SA-1 about the purported investigation and had a special relationship with SA-1. Frey told the victims if they paid up to $20,000 each, he would call SA-1 and have the investigation converted from a criminal tax investigation to an IRS “desk audit,” a civil matter. Frey and CC-1 falsely stated that if the victims did not retain his services and pay the fee, the investigation would likely result in the arrest of certain of the victims.
In addition to the prison term, Judge Thompson sentenced Frey to 3 years of supervised release; 300 hours of community service and fined him $25,000. The defendant was also ordered to repay the Criminal Justice Act funds expended on his behalf.
Frey was previously charged by complaint on April 8, 2011, along with Cusic, with one count of conspiracy to commit extortion and one count of wire fraud. Cusic pleaded guilty Nov. 28, 2011, to conspiring with Frey to extort the victims. He is awaiting sentencing.
U.S. Attorney Fishman credited special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Rodney Davis, Washington Field Division, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Eric W. Moran of the U.S. Attorney’s Office Special Prosecutions Division in Trenton.
Defense counsel: Charles E. Waldron Esq., Lawrenceville, N.J.
Essex County, New Jersey, Man Sentenced to Three Years’ Probation for Role in ‘Double-Dipping’ SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to three years’ probation for defrauding Home Depot Inc. out of more than $470,000 through an elaborate “double-dipping” scheme he committed at various Home Depot locations, including in New Jersey, U.S. Attorney Paul J. Fishman announced.
Daniel Chalet, 29, of Bloomfield, 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. 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:
From March 2009 through June 2012, Chalet and his conspirators routinely purchased various items from Home Depot locations in New Jersey, New York, Massachusetts, Delaware, Maryland, Connecticut and Pennsylvania. The conspirators would assemble two shopping carts containing identical items. They then purchased the items in one cart (Cart 1) and stashed the other cart in the store (Cart 2). They would typically purchase the items in Cart 1 using cash, fraudulently obtained Home Depot store credit, or some combination thereof. Chalet and his conspirators would then leave the store with the items in Cart 1, as well as the receipt for the purchase, leaving Cart 2 inside the store.
The conspirators would return to the store almost immediately with a receipt corresponding to the items in Cart 1 and retrieve Cart 2, which contained the identical set of items. Under the guise that they had forgotten to purchase an item, usually an inexpensive one, Chalet and his conspirators would return to the register with Cart 2, and purchase only the additional small item. They would present the receipt for the items from Cart 1 and deceive the cashier into believing that the items in Cart 2 had already been purchased.
Chalet and his conspirators would later go back to the same Home Depot store or travel to different Home Depot store locations to return the items. In some instances, they presented a receipt for the return, and in other instances, the defendants obtained a refund for store credit without presenting a receipt.
Chalet and his conspirators carried out the scheme hundreds of times at various Home Depot locations, fraudulently obtaining Home Depot store credit and refunds totaling at least $470,511.66.
In addition to probation, Judge Linares sentenced Chalet to pay restitution of $472,465.49.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Acting Special Agent in Charge Carl Agnelli, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Richard Roberts Esq., Newark
South Jersey Convicted Felon Sentenced to 70 Months in Prison for Role in Conspiracy to Traffic Guns from South Carolina to New JerseyRead the Press Release
CAMDEN, N.J. – A Lawnside, New Jersey, man was sentenced today to 70 months in prison for illegally possessing firearms and selling 22 guns without a license, U.S. Attorney Paul J. Fishman announced.
Anthony Gilmore, a/k/a “Tone,” 25, 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 8, 2014, Gilmore conspired with four others to sell 22 firearms on several occasions, for profit and without a license. The 22 firearms included handguns, shotguns and an assault rifle. Gilmore personally sold or participated in the sale of at least seven firearms, including handguns and shotguns, as well as a bullet-proof vest, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Gilmore’s conspirators obtained the firearms in South Carolina and brought them to New Jersey on a weekly basis, at times using Amtrak to transport the guns. On two occasions, Gilmore sold a firearm to the cooperating witness along with ammunition. All 22 weapons are now in the custody of law enforcement.
In addition to the prison term, Judge Bumb sentenced Gilmore to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky Jr. in Newark, New Jersey, 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 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: Assistant Federal Public Defender Christopher O’Malley Esq., CamdenCruise Line Employee Admits Abusive Sexual Contact of Sleeping Woman on Cruise ShipRead the Press Release
NEWARK, N.J. – A Mauritius man today admitted sexually abusing a sleeping woman aboard a cruise ship, U.S. Attorney Paul Fishman announced.
Karan Seechurn, 25, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of abusive sexual contact.
According to documents filed in this case and statements made in court:
Seechurn was employed by a cruise line and was responsible for restocking the minibars located in passengers’ rooms. In order to conduct this duty, he was provided with a key that gave him access to passengers’ rooms. Seechurn admitted that on Dec. 23, 2014, while he was off-duty, he entered a passenger’s room and encountered a sleeping woman. Seechurn admitted that he touched the passenger’s genitalia while she was asleep.
The abusive sexual contact charge to which Seechurn pleaded guilty carries a maximum potential penalty of three years in prison. Sentencing is scheduled for August 3, 2015.
The federal government has special maritime jurisdiction over sexual abuse cases, such as those that occur on cruise ships.
U.S. Attorney Fishman credited 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.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office General Crime Unit in Newark.
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, Newark
seechurn_karan_information.pdf
Morris County, N.J., Man Sentenced to 44 Months in Prison for Defrauding Investers of $500,000 Through Phony Investment SchemeRead the Press Release
NEWARK, N.J. – A Morris County, N.J., man was sentenced today to 44 months in prison for fraudulently obtaining $500,000 by promising investors favorable returns and that funds would be used to finance educational television programming for teenage audiences, U.S. Attorney Paul Fishman announced.
Peter Lareau, 78, of Mountain Lakes, N.J., previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of wire fraud. Judge Salas imposed the sentencing in Newark federal court.
According to documents filed in this case and statements made in court:
From June 2008 through January 2010, Lareau created numerous entities, including T4Teens LLC and Concordia Mediaworks LLC, for the purpose of soliciting investors. Lareau recruited investors through civic, religious and charitable organizations, as well as through alumni events at prestigious education institutions.
In addition to promising greater-than-market returns, Lareau falsely represented that investors’ funds would be used for educational television programming for teenage audiences.
He sent investors prospectuses and other information related to investment opportunities by email and then directed them to wire funds from brokerage accounts in New York to his business accounts in New Jersey.
Instead of using the funds for educational programming or other business-related purposes, Lareau used those funds for personal expenses, including groceries, tuition payments for his child, rent payments, and club memberships.
In addition to the prison term, Judge Salas sentenced Lareau to one year of supervised release and ordered him to pay restitution of $533,000.
U.S. Attorney Fishman credited special agents from the FBI, 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 U.S. Attorney Lorraine S. Gerson of the Economic Crimes Unit in Newark.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Filipino National Charged with Conspiring to Export Firearms Parts from the United StatesRead the Press Release
CAMDEN, N.J. – A Filipino national appeared in federal court today to face charges that he allegedly conspired to smuggle firearms parts out of the United States, U.S. Attorney Paul J. Fishman announced.
Kirby Santos, 38, of the Republic of the Philippines, is charged in a criminal complaint with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws. Santos was arrested in Guam on March 31, 2015, by special agents of the U.S. Department of Homeland Security-Homeland Security Investigations (DHS-HSI) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). He appeared this morning before U.S. Magistrate Judge Joel Schneider in Camden federal court and was detained.
According to the documents filed in this case and statements made in court:
Beginning in 2008, Santos used an internet forum to meet others and discuss the sales and shipment of firearms and firearms parts from the United States to the Philippines. Santos met a Toms River, New Jersey, conspirator who agreed to help Santos ship firearms and firearms parts from the United States to the Philippines. Santos used his credit cards and other forms of payment to purchase firearms parts from suppliers in the United States. Knowing that they would not ship to the Philippines, Santos arranged for the suppliers – including J&T Distributing from Winchester, Kentucky, Rainier Arms from Auburn, Washington, and Midway Corporation from Columbia, Missouri, among others – to send the firearms parts to the conspirator’s Toms River address in order to make it appear as a domestic sale.
At the direction of Santos, the conspirator would then repackage the firearms parts, falsely label the contents of the package and export the firearms parts to the Philippines for ultimate delivery to Santos. To disguise his role in the conspiracy, the conspirator used an alias when sending the packages containing prohibited items. Upon receiving the firearms parts, Santos paid the conspirator through cash payments to the conspirator’s relatives in the Philippines.
During the course of the nearly five-year long conspiracy, Santos purchased and directed the unlawful exportation of more than $200,000 worth of defense articles from the United States to the Philippines without the required export license.
The conspiracy count with which Santos is charged is punishable by a maximum potential penalty of five years in prison and a $250,000 fine.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of DHS-HSI, under the direction of Acting Special Agent in Charge Kevin Kelly, and special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky Jr., with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Timothy R. Anderson Esq., Red Bank, New Jersey
Three Orthodox Jewish Rabbis Convicted of Conspiracy to Kidnap Jewish Husbands in Order to Force Them to Consent to Religious DivorcesRead the Press Release
TRENTON, N.J. - Three Orthodox Jewish Rabbis were convicted at trial today for conspiring to kidnap Jewish men in an effort to force them to give their wives religious divorces, referred to as “gets,” U.S. Attorney Paul J. Fishman announced.
Rabbis Mendel Epstein, 69, of Lakewood, New Jersey; Jay Goldstein a/k/a “Yaakov,” 60, of Brooklyn, New York; and Binyamin Stimler, 39, of Brooklyn, New York, were each convicted on Count One of the indictment, conspiracy to commit kidnapping. Goldstein and Stimler were additionally convicted on Count Five of the indictment, attempted kidnapping. Epstein’s son, David Epstein a/k/a “Ari,” 40, of Lakewood, New Jersey, was acquitted on three counts. The jury deliberated three days following an eight-week trial before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and the evidence at trial:
On Dec. 1, 2009, in Lakewood, an Orthodox Jewish man, Israel Markowitz, was assaulted, placed in a van, tied up, beaten and shocked with a stun-gun until he agreed to give his wife a get.
On Oct. 16, 2010, in Lakewood, another Orthodox Jewish man, Ysrael Bryskman, was assaulted, tied up and beaten until he agreed to give his wife a get.
On Aug. 22, 2011, in Brooklyn, New York, another Orthodox Jewish man, Usher Chaimowitz, and his roommate, Menachem Teitlebaum, were assaulted, tied up, and beaten until Chaimowitz agreed to give his wife a get.
Based upon these incidents, the FBI began an undercover operation in August 2013 in which two FBI agents posed as a wife who was seeking a get from her recalcitrant husband, and her brother, who was trying to help her obtain the get. Over the next several weeks, the undercover agents had multiple recorded phone calls and in-person meetings with defendant Mendel Epstein. In those meetings, Mendel Epstein arranged to have his team kidnap the husband at a warehouse in exchange for $60,000.
On October 9, 2013, Goldstein, Stimler and six other individuals, traveled from New York to a warehouse in Middlesex County, New Jersey, to execute the planned kidnapping of the husband to force him to give the get. They arrived at the warehouse in two dark minivans shortly after 8:00 p.m. Some of the kidnap team members put on masks and entered the warehouse office with the undercover agent posing as the brother. The remaining kidnappers walked around the outside with flashlights. Over the next 15 minutes, members of the kidnap team went in and out of the warehouse office wearing disguises, including ski masks, Halloween masks and bandanas. They discussed their plan for kidnapping and assaulting the husband, how they planned to grab him, pull him down, tie him up, and take his phone. Members of the kidnap team brought with them to the warehouse a 30-foot nylon rope, a blindfold, vodka, license plates they had switched out, and items used to ceremonially record the get. At 8:23 p.m., law enforcement moved into the warehouse office and arrested the eight men, including Goldstein and Stimler. Mendel Epstein was arrested at his Brooklyn home the same night.
The count of conspiracy to commit kidnapping carries a maximum potential penalty of life in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The count of attempted to commit kidnapping carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 15, 2015. Nine other individuals previously entered guilty pleas in connection with this conspiracy.
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 Lakewood Police for the investigation leading to today’s verdicts.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah M. Wolfe of the U.S. Attorney’s Office in Trenton.
Defense counsel:
Mendel Epstein: Robert G. Stahl Esq. and Laura Gasiorowski Esq., Westfield, New Jersey
Jay Goldstein: Aiden O’Connor Esq., Hackensack, New Jersey
David Epstein: Henry Mazurek Esq., New York
Binyamin Stimler: Nathan Lewin Esq., Washington, D.C. and Gedalia Stern
epstein_mendel_et_al._amended_indictment.pdf
Member of Drug Trafficking Organization Admits Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A South Jersey woman who was a member of a large-scale drug trafficking organization today admitted distributing more than 100 grams of heroin, U.S. Attorney Paul J. Fishman announced.
Dawn Rosser, 34, of Lakewood, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging her with one count of conspiring to distribute heroin.
In March 2014, 20 other alleged members of the drug trafficking organization of which Rosser was a member were charged by criminal complaint with conspiring to distribute heroin. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of those individuals, nine have pleaded guilty.
According to documents filed in this case and statements made in court:
Between February 2013 and March 2014, Rosser conspired with others to distribute heroin in Ocean and Monmouth counties. Rosser admitted distributing between 100 and 400 grams of heroin.
The narcotics conspiracy charge to which Rosser pleaded guilty carries a maximum penalty of 20 years in prison and $1 million fine. Sentencing is scheduled for June 5, 2015.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Joseph Accardi Esq., Elizabeth, New Jersey
rosser_dawn_information.pdf
Member of Drug Trafficking Organization Admits Conspiring to Sell HeroinRead the Press Release
TRENTON, N.J. – A Toms River, New Jersey, man today admitted distributing heroin and cocaine as part of a large-scale drug trafficking organization that operated in Monmouth, Ocean, and Middlesex counties, U.S. Attorney Paul J. Fishman announced.
Delovi R. Canales, a/k/a “Butter,” 48, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiring to distribute heroin.
In October 2014, 20 other alleged members of the drug trafficking organization of which Canales was a member were charged by criminal complaint with conspiring to distribute heroin. The complaint referred to the drug trafficking organization as the “Cadet DTO,” after one of its leaders, Herve Cadet, a/k/a “Gotti,” a/k/a “Bro,” 29, of Neptune and Sayreville, New Jersey.
According to documents filed in this case and statements made in court:
From November 2013 through October 2014, Cadet, Eric Smith, a/k/a “EV,” a/k/a “E,” 42, of Manchester, New Jersey, and the other members of Cadet DTO, including Canales, conspired to sell illegal drugs – chiefly heroin – in Monmouth, Ocean and Middlesex counties. Through the use of confidential informants, authorized interception of cell phone calls and other means, law enforcement learned Cadet and Smith were responsible for identifying sources of heroin supply and oversaw distributors and other conspirators who sold, packaged and stored the drugs. Members used stash houses, spoke in code and used Haitian Creole to avoid detection by law enforcement.
The narcotics conspiracy charge to which Canales pleaded guilty carries a maximum penalty of 20 years in prison and $1 million fine. Sentencing is scheduled for June 27, 2015.
U.S. Attorney Fishman credited special agents of the DEA, Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski and officers of the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher J. Gramiccioni with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel: David R. Oakley Esq., Princeton, New Jersey
Tax Preparer Charged with Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, tax preparer with an office in Essex County, New Jersey, was arrested today on charges of aiding and abetting in the filing of two dozen false tax returns, U.S. Attorney Paul J. Fishman announced.
Darlene Covington, 31, of Hillside, New Jersey, was indicted by a federal grand jury on April 10, 2015, and charged with 24 counts of aiding and abetting in the filing of false tax returns. She made her initial appearance today before U.S. Judge Joseph A. Dickson in Newark federal court and was released on $75,000 unsecured bond.
According to the documents filed in the case and statements made in court:
Covington worked as a tax preparer for KCJ Financial Corp., a tax preparation business in Irvington, New Jersey. During 2009 and 2010, Covington filed 24 false tax returns for tax years 2008 and 2009, using false information and personal identification information without the knowledge, consent or permission of the individuals named in the tax returns. Covington then applied for refund acceleration loans from financial institutions for each of the fraudulent refunds and earned a portion of each loan she secured. The refunds were given to a third party.
The false filing charges with which Covington is charged each carry a maximum potential penalty of three years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and investigators of the U.S. Attorney’s Office with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sharon Ashe.
The charges in the indictment are mere accusations and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender, Newark
Romanian Native in Large-Scale ATM Skimming Scheme Extradited to the United States to Face ChargesRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Spain will make his initial court appearance today following his extradition to face charges that he participated in a large-scale lucrative ATM skimming scheme targeting New Jersey bank customers, U.S. Attorney Paul J. Fishman announced.
Robert Mate, a/k/a “Chioru,” a/k/a “Marcel Varga,” 29, will appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson on a six-count indictment charging him with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, and conspiracy to possess access device-making equipment. The other two individuals charged on the indictment, Alin Dumitru Carabus and Ionut Vasile Ciurba-Stana, have been apprehended in Spain and requests for extradition are pending.
According to documents filed in this case and other cases and statements made in court:
Mate participated as a high-level member of an extensive scheme to steal bank customer account information, commonly referred to as “ATM skimming,” by installing secret card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere. The scheme was organized by Marius Vintila, 31, who previously pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. The scheme defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million, and affected thousands of bank customers. Vintila and Bogdan Radu designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Mate and others then secretly installed the card-reader devices and the pinhole cameras panels onto bank ATMs, and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions at ATMs. After the account information was stolen, it was used to create thousands of false and fraudulent ATM cards, which Mate and others used to withdraw millions of dollars from customers’ bank accounts.
The ATM skimming operation in which Mate participated is one of the largest ever uncovered by law enforcement. To date, 16 individuals have been charged in connection with this scheme, 12 have pleaded guilty, and one individual, Dinu Horvat, was recently convicted after a week-long trial. Marius Vintila, the ringleader of the scheme, pleaded guilty
Marius Vintila, 31, previously pleaded guilty in February 2015 to bank fraud conspiracy and aggravated identity theft charges. Bogdan Radu, 30, pleaded guilty to bank fraud conspiracy and aggravated identity theft charges in February 2014. Dinu Horvat, 28, Enes Causevic, 24, Marius Cotiga, 35, Constantin Ginga, 53, Dezso Gyapias, 29, Ioan Leusca, 30, Constantin Pendus, 30, and Emil Revesz, 30, participated in the scheme by installing or removing the devices, and by subsequently using the fraudulent ATM cards to withdraw cash from compromised bank accounts. Florin Apetrei, 18, Luis Franco, 23, and Mirel Hadzalic, 24, participated in the scheme by using the fraudulent ATM cards to withdraw cash. Causevic, Cotiga, Ginga, Gyapias, Leusca, and Revesz all pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. Apetrei, Cotiga, Pendus, Franco, and Hadzalic pleaded guilty to bank fraud conspiracy. And Horvat was convicted at trial of bank fraud conspiracy, aggravated identity theft, conspiracy to possess 15 or more access devices, and conspiracy to possess access device-making equipment.
For their roles in the scheme, Judge Martini sentenced Ginga, Gyapias, and Leusca each to 57 months in prison and Franco and Pendus each to 33 months in prison. Hadzalic received a sentence of 34 months in prison, Apetrei received a sentence of 24 months in prison, and Cotiga received a sentence of 26 months in prison. Vintila, Causevic, Radu, Revesz, and Horvat are pending sentencing.
Mate is charged with four counts, as described below, which carry the following maximum penalties and fines:
Count
Offense
Maximum Penalty
Maximum Fine
1
Conspiracy to Commit Bank Fraud
Thirty years in prison
$1 million
4
Aggravated Identity Theft
Mandatory, consecutive penalty of two years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
5
Conspiracy to Possess Fifteen or More Counterfeit Access Devices
Five years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
6
Conspiracy to Possess Access Device-Making Equipment
Seven and one-half years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Acting Special Agent in Charge Carl Agnelli, along with special agents of Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Newark, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division, Economic Crimes Unit, in Newark.
Defense counsel: Angelo Servidio Esq., Nutley, New Jersey
Owner of Home Health Care Agency Admits Fraud, Bribery and Other ChargesRead the Press Release
NEWARK, N.J. – The owner of a home health agency today admitted her role in a $7 million scheme to defraud Medicaid and engage in bribery, money laundering, and tax evasion, U.S. Attorney Paul J. Fishman announced.
Irina Krutoyarsky, 61, Springfield, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information that charged her with conspiracy to commit health care fraud, bribery, conspiracy to commit money laundering, and tax evasion.
According to documents filed in this case and statements made in court:
Krutoyarsky owned HHCH Health Care Inc., of Linden, New Jersey, which provided home health aides and health care services to New Jersey residents. Home health aides visit patients at their homes and provide a variety of health care services, such as assistance with eating, dressing, and grooming. These home health aide services were subsidized under the N.J. Medical Assistance Program (Medicaid).
Krutoyarsky and her conspirators defrauded Medicaid by submitting false documents to the N.J. Board of Nursing, the state agency responsible for issuing home health aide certifications. Krutoyarsky falsely represented that prospective home health aides had attended and satisfactorily completed required training and testing. In truth, Krutoyarsky charged prospective home health aides hundreds of dollars for fraudulently obtaining their certifications.
Krutoyarsky also fraudulently billed Medicaid for services not actually rendered to patients. Numerous HHCH home health aides routinely falsified records that claimed they had visited patients and provided them health care services. In truth, these home health aides had other jobs, were on vacations overseas, or were in other parts of the state during the times they claimed they were with patients. Home health aides sometimes gave cash kickbacks to patients who were also participating in the scheme. Federal agents introduced a cooperating witness (CW), posing as a prospective home health aide to Krutoyarsky. During one meeting in January 2012, Krutoyarsky and another conspirator meet with the CW to discuss having him join the scheme to defraud Medicaid. In explaining the scheme, Krutoyarsky explained that they would fraudulently bill Medicaid to obtain “free money [from the] Government.”
Krutoyarsky hired individuals with no home health certifications and no status in the country and then sent them to patients’ homes. Krutoyarsky and her conspirators then billed Medicaid, fraudulently claiming that the services had been provided by duly certified home health aides.
Krutoyarsky defrauded Medicaid out of $7 million. She directed certain home health aides to establish checking accounts at a bank near HHCH’s office and then took control of their checkbooks. After Medicaid paid the claims and transferred the funds into HHCH accounts, Krutoyarsky then transferred portions of the money into the aides’ accounts and used the money to purchase, maintain, and pay for real property in New Jersey, New York, Florida; purchase personal property for her own use and benefit; and pay for personal expenses for her own use and benefit and the use and benefit of her family.
Krutoyarsky also bribed an employee of the N.J. Department of Labor (NJDOL), who was working in an undercover capacity with federal agents. In mid-2010, the NJDOL received a complaint that Krutoyarsky was not paying overtime wages to her employees and commenced an investigation. The department demanded Krutoyarsky produce certain HHCH records. Realizing that providing these records would reveal the Medicaid fraud scheme, Krutoyarsky paid approximately $10,000 in a cash bribe to the employee for the purpose of obstructing and unlawfully influencing the NJDOL investigation. The employee, however, was wearing a recording device and recorded Krutoyarsky making the bribe payment on video.
In May 2011, Krutoyarsky paid a second cash bribe of approximately $15,000 to the employee for the purpose of obstructing and unlawfully influencing a second NJDOL investigation related to one of Krutoyarsky’s conspirator’s companies. This bribe payment was also captured on video.
Between 2007 and 2011, Krutoyarsky cheated the IRS out of $907,150 in taxes due and owing to the United States. She sent home health aides to the homes of patients who were not eligible for Medicaid. These patients wrote checks payable to HHCH. A conspirator cashed these checks at check-cashing businesses in New Jersey and equally divided the cash with Krutoyarsky. Krutoyarsky also issued HHCH checks to “no show” employees, who then wrote personal checks back to Krutoyarsky. On her corporate tax returns, she falsely characterized these payments as legitimate business deductions, thus reducing her business’ corporate taxes.
The counts of conspiracy to commit health care fraud, bribery and money laundering each carry a maximum potential sentence of 10 years in prison, and the count of tax evasion carries a maximum potential sentence of five years in prison. All counts are also punishable by a fine of $250,000. As part of the plea agreement, Krutoyarsky will be ordered to pay a $7 million forfeiture money judgment to the United States and will forfeit several homes and properties in New Jersey, New York, and Florida, as well as hundreds of thousands of dollars seized from her bank accounts or bank accounts that she controlled. Krutoyarsky’s sentencing is scheduled for Sept. 14, 2015.
As other defendants, the charges and allegations contained in the complaint are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; U.S. Citizenship and Immigration Services; Acting N.J Attorney General John J. Hoffman; N.J. State Comptroller Marc Larkins; Division Director Mark Anderson, Office of the State Comptroller, Medicaid Fraud Division; New Jersey Division of Consumer Affairs, under the direction of Acting Director Steve C. Lee; the N.J. Board of Nursing; the N.J. Department of Labor, under the direction of Commissioner Hal Wirth; U.S. Department of State-Bureau of Diplomatic Security; and the Marlboro Police Department, under the direction of Chief Bruce Hall, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys V. Grady O’Malley, Peter Gaeta, and Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Edward V. Sapone Esq., New York
Essex County Man Sentenced to 13 Years in Prison for Armed Robbery of New Jersey Target Store on Black Friday 2012Read the Press Release
TRENTON, N.J. – A Newark, New Jersey, man was sentenced to 156 months in prison for robbing a Target Store in Union, New Jersey, on “Black Friday” in November 2012, U.S. Attorney Paul J. Fishman announced today.
DaQuaan Vaughn, 36, previously pleaded guilty before U.S. District Judge Anne E. Thompson to a superseding information charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence. Vaughn also pleaded guilty to an unrelated count of firearms trafficking in connection with his unlawful sale of firearms between April and June 2012. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Nov. 23, 2012, Vaughn, Lavell Jones, 29, of East Orange, New Jersey, Darrell A. Carter, 25, or Irvington, New Jersey, and Maryland Liggins III, 30, of Newark, robbed a Target store located on Springfield Avenue in Union on Black Friday – the day after Thanksgiving – which is considered to be one of the busiest shopping days of the year. Jones posed as a shopper and served as a lookout inside the store. He alerted the others when the store was closing and money was being transferred from the store’s registers to the cash room. Liggins served as the getaway driver.
Before closing, Carter and Vaughn waited in the bathroom. When an employee entered the bathroom, Carter and Vaughn restrained the employee and threatened him with a firearm. After the store closed, Carter and Vaughn entered the cash room, restrained other Target employees with zip ties and robbed them at gunpoint, stealing more than $50,000 from a cash cart and safe. Then they fled the store and ran out to a vehicle – driven by Liggins – that was parked on the shoulder of nearby Route 78.
In addition to the prison term, Judge Thompson sentenced Vaughn to five years of supervised release and ordered him to pay $54,000 in restitution to Target. All of the defendants have the same restitution obligation until the full $54,000 is satisfied. Liggins also pleaded guilty to his role in the robbery and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel: Timothy Donohue Esq., West Orange, New Jersey
Elizabeth Public School District Pays $272,810 to Its School Lunch Program and $49,500 in Civil Penalties to Settle False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – The Elizabeth Public School District has agreed to credit its School Lunch Program $272,810 and pay $49,500 to the U.S. Department of Justice to settle allegations that it improperly used federal and state funds to provide meals and catering services for school board meetings and other special functions.
The announcement was made today by U.S. Attorney Paul J. Fishman and Special Agent-in-Charge William G. Squires of U.S. Department of Agriculture (USDA), Office of Inspector General.
The school district participates in the USDA’s National School Lunch Program, which provides reimbursement payments to ensure low-cost or free meals (breakfast, lunch and snacks) for certain qualifying students. The USDA administers the program, while oversight, compliance and general administration is done by the N.J. Department of Education, Office of Fiscal Accountability and Compliance (OFAC) and the state Department of Agriculture (NJDA), Division of Food and Nutrition.
The district receives federal and state funds designated specifically for the lunch program. Those funds must be kept separate and independent from other funds and used solely for approved lunch program purposes. The district may generate revenue for its lunch program by selling snacks and meals and providing catering services, but all money used for and earned from these services must be used solely for the lunch program.
According to the settlement agreement:
Between July 1, 2008, and June 30, 2014, the district failed to collect, reimburse, or apply $182,243 to its lunch program for catering services provided to its Board of Directors and $90,567 for catering services provided to various schools, principals, and administrators within the district for other special functions. The United States contends the district’s lunch program was deprived of the use of $272,810.
In addition to repaying the lunch program and paying penalties, the district will participate in training and be subject to three years of monitoring by OFAC and NJDA.
The civil settlement agreement is between the United States – acting through the U.S. Attorney’s Office for the District of New Jersey and on behalf of the USDA, OFAC, NJDA – and the Elizabeth Public School District.
U.S. Attorney Fishman credited OFAC, NJDA, and the USDA, Office of the Inspector General, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Valorie D. Smith of the U.S. Attorney’s Office Civil Division in Newark.
The claims settled by this agreement are allegations only; there have been no admissions of liability.
Defense counsel: Bruce S. Rosen Esq., Florham Park, New Jersey
Atlantic City, New Jersey, Bookkeeper Admits Lying to Federal InvestigatorsRead the Press Release
CAMDEN, N.J. – A bookkeeper at an Atlantic City, New Jersey, rolling chair company today admitted lying to federal agents during an investigation into unreported cash taken from the business, U.S. Attorney Paul J. Fishman announced.
Abdus Mian, 66, of Atlantic City, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of making materially false statements to federal agents.
According to documents filed in the case and statements made in court:
Mian was the bookkeeper for Royal Rolling Chairs LLC, an Atlantic City business that provided rolling chair transportation services to patrons on the Atlantic City boardwalk. Mian admitted that he maintained a second set of books that tracked the cash that William Boland, 58, of Ventnor City, New Jersey, and two other owners were removing from the business and not reporting to the IRS.
Mian admitted that he was interviewed by IRS and FBI special agents on June 9, 2011, at which time he was asked questions about his role as bookkeeper. Mian falsely stated that he only maintained one set of books, never prepared a second set of books and was unaware of the owners taking cash out of the business.
The false statements charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is currently scheduled for July 29, 2015.
On Oct. 30, 2014, Boland admitted conspiring with his two partners at Royal Rolling Chairs to defraud the IRS of $119,880 in income taxes over the course of three years. Boland is scheduled to be sentenced by Judge Rodriguez on July 14, 2015.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and 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.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney=s Office Special Prosecutions Division in Camden and Trial Attorney Tino Lisella of the Tax Division of the U.S. Department of Justice.
Defense counsel: Steven I. Kaplan Esq., Northfield, New Jersey
Genovese Organized Crime Family Soldier Sentenced to 41 Months in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A Kenilworth, New Jersey, man was sentenced today to 41 months in prison for his role in the affairs of the Genovese organized crime family of La Cosa Nostra (the “Genovese family”), including engaging in a pattern of racketeering activity by extorting Christmastime tribute payments from members of the International Longshoremen’s Association (ILA), New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Stephen Depiro, 59, a Genovese family soldier, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to Count One of the second superseding indictment charging him with racketeering conspiracy. Depiro admitted to predicate acts involving conspiracy to commit extortion and bookmaking. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235 and vice president of ILA Local 1478.
During their guilty plea proceedings, Depiro and two other Genovese family associates – Albert Cernadas, 79, of Union, New Jersey, former president of ILA Local 1235 and former ILA executive vice president; and Nunzio LaGrasso, 64, of Florham Park, New Jersey, former vice president of ILA Local 1478 and ILA representative – admitted their involvement in the Genovese family, including conspiring to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. Cernadas and LaGrasso admitted to carrying out multiple extortions of dockworkers. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Depiro also admitted to managing an illegal sports betting business.
In addition to the prison term, Judge Cecchi sentenced Depiro to serve three years of supervised release. Cernadas was previously sentenced to probation and LaGrasso was sentenced to 28 months in prison.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Richard M. Frankel, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s sentencing. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
Defense counsel: Alyssa Cimino Esq., Fairfield, New Jersey
Former Bergen County, N.J., Democratic Chairman Convicted on Racketeering ChargesRead the Press Release
NEWARK, N.J. – A jury today convicted Joseph A. Ferriero, the former chairman of the Bergen County Democratic Organization (BCDO), in connection with a racketeering scheme involving fraud and soliciting and accepting bribes as a party official, U.S. Attorney Paul J. Fishman announced.
Ferriero, 57, was found guilty following an eight-week trial before U.S. District Judge Esther B. Salas in Newark federal court. The jury deliberated four days before finding Ferriero guilty of conducting the BCDO’s affairs through a pattern of racketeering activity (Count One), using the mail and facilities in interstate commerce to promote bribery and distribute bribe proceeds (Count Three) and wire fraud (Count Five).
“Joseph Ferriero was convicted today of running a local political organization as a criminal enterprise, using his power and position to line his pockets,” U.S. Attorney Fishman said. “The evidence we presented at trial described a racketeering operation that ran on influence peddling, bribes and kickbacks. Rooting out and prosecuting this kind of political corruption is a constant priority for this office. The people of New Jersey are entitled to honest public service.”
“Today’s conviction of Joseph A. Ferriero reaffirms the FBI’s commitment to combat public corruption in New Jersey and serves as a reminder that those individuals who violate the public’s trust will be held accountable,” Richard M. Frankel, the FBI’s Special Agent in Charge, Newark, said.
According to documents filed in this case and the evidence at trial:
Ferriero served as the chairman of the BCDO from 1998 until January 2009 and was the sole member of SJC Consulting LLC. The jury found Ferriero accepted bribes in his capacity as BCDO chairman in the course of a scheme involving SJC. Ferriero agreed with John Carrino, a Nutley, New Jersey-based attorney and software developer that Ferriero would recommend and provide a favorable opinion of the software developer and his companies to various public officials in Bergen County with whom Ferriero had influence. The software developer agreed to pay Ferriero one-quarter to one-third of the gross receipts from any contract obtained as a result of Ferriero’s efforts. Ferriero’s financial interest in the software developer’s public contracts was completely hidden using two shell companies, one of which was created and incorporated in Nevada for the sole purpose of contracting with and accepting payments from another shell company controlled by the software developer.
The racketeering charge carries a maximum potential penalty of 20 years in prison; the Travel Act charge carries a maximum penalty of five years in prison; and the wire fraud charge carries a maximum potential penalty of 20 years in prison. Each count of the indictment also carries a maximum $250,000 fine. Sentencing is scheduled for July 27, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Frankel, and investigators from the U.S. Attorney’s Office, under the direction of Supervisory Criminal Investigator Thomas Mahoney, with the investigation leading to today’s conviction.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig and Assistant U.S. Attorney Barbara Llanes of the Special Prosecutions Division in Newark.
Defense counsel: Michael Baldassare, Jennifer Mara and Dillon Malar Esqs., Newark
Two Men Each Sentenced to 130 Months in Prison for Their Roles in Armed Robbery of New Jersey Target Store on Black Friday 2012Read the Press Release
TRENTON, N.J. –Two Essex County, New Jersey, men were each sentenced to 130 months in prison for robbing a Target Store in Union, New Jersey, on “Black Friday” in November 2012, U.S. Attorney Paul J. Fishman announced today.
Lavell Jones, 29, of East Orange, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an indictment charging him with one count of Hobbs Act robbery. Darrell A. Carter, 25, or Irvington, New Jersey, previously pleaded guilty before Judge Thompson to an information charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence. Judge Thompson imposed both sentences in Trenton federal court.
According to documents filed in this case and statements made in court:
On Nov. 23, 2012, Jones, Carter, DaQuaan Vaughn, 36, of Newark, New Jersey, and Maryland Liggins III, 30, of Newark, robbed a Target store located on Springfield Avenue in Union on Black Friday – the day after Thanksgiving – which is considered to be one of the busiest shopping days of the year. Jones posed as a shopper and served as a lookout inside the store. He alerted the others when the store was closing and money was being transferred from the store’s registers to the cash room. Liggins served as the getaway driver.
Before closing, Carter and Vaughn waited in the bathroom. When an employee entered the bathroom, Carter and Vaughn restrained the employee and threatened him with a firearm. After the store closed, Carter and Vaughn entered the cash room, restrained other Target employees with zip ties and robbed them at gunpoint, stealing more than $50,000 from a cash cart and safe. Then they fled the store and ran out to a vehicle – driven by Liggins – that was parked on the shoulder of nearby Route 78.
In addition to the prison term, Judge Thompson sentenced Jones to three years of supervised release and Carter to five years of supervised release; both were ordered to pay $54,000 in restitution to Target. All of the defendants have the same restitution obligation until the full $54,000 is satisfied.
Vaughn and Liggins have also pleaded guilty to their roles in the robbery and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to the guilty pleas. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel:
Carter: Peter Carter Esq., Newark
Jones: Richie Roberts Esq., Newark
South Jersey Man and South Carolina Woman Admit Roles in Conspiracy to Traffic 25 GunsRead the Press Release
CAMDEN, N.J. – A South Jersey man and a woman from South Carolina have admitted their roles in a conspiracy to sell 25 guns without a license, U.S. Attorney Paul J. Fishman announced today.
Shawn Tribbett, 32, of Camden, pleaded guilty to an information charging him with one count of conspiring to deal firearms without a license, two counts of possession of a firearm by a previously convicted felon and one count of distribution and possession with intent to distribute cocaine. Katelynn Schippnick, 25, of Greeley, South Carolina, pleaded guilty to a separate information charging her with one count of conspiring to deal firearms without a license. Both defendants entered their pleas before U.S. District Judge Renée Marie Bumb in Camden federal court.
According to documents filed in this case and statements made in court:
Between April 8, 2013, and July 2014, both Tribbett and Schippnick 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. Tribbett personally sold or participated in the sale of at least six firearms, including handguns, shotguns and an assault-style rifle, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Schippnick assisted in the sale of at least five firearms, including handguns and a shotgun, also to an ATF cooperating witness. On at least one occasion, Tribbett and sold ammunition with the firearms.
In addition to the firearms conspiracy, Tribbett admitted that on several occasions he sold cocaine and oxycodone pills to a witness cooperating with the ATF.
The conspiracy charge to which Tribbett and Schippnick pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The unlawful possession of a firearm as a convicted felon charges to which Tribbett pleaded guilty each carry a maximum potential penalty of 10 years in prison and a $250,000 fine. The distribution of cocaine charge carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing for both defendants is scheduled for July 23, 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 the guilty pleas. 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:
Tribbett: Brian O’Malley Esq., Haddon Heights, New Jersey
Schippnick: Martin Isenberg Esq., Gibbsboro, New Jersey
Pennsylvania Man Sentenced to Five Years in Prison on Assault ChargeRead the Press Release
CAMDEN, N.J. – A Pennsylvania man was sentenced today to 60 months in prison for his role in an assault, U.S. Attorney Paul J. Fishman announced.
Garrett Wiseman, 25, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him in connection with his role in traveling from Pennsylvania to New Jersey to commit an aggravated assault in furtherance of an extortion scheme. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On June 09, 2010, Wiseman and two co-defendants were in a car that was used to run down a construction site manager who had been critical of the work being done by a company called Sands Mechanical Inc., a subcontractor on the restoration and rehabilitation of the Marine Corps Reserve Training Center at Joint Base-McGuire-Dix-Lakehurst in Burlington County, New Jersey. Wiseman was driving the vehicle at the time of the assault. The victim suffered serious injuries.
In addition to the prison term, Judge Rodriguez sentenced Wiseman to serve three years of supervised release.
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; Naval Criminal Investigative Service – Northeast Field Office, under the direction of Special Agent in Charge Leo S. Lamont; and the Air Force Office of Special Investigations Detachment 307, under the direction of Special Agent Seth Neville, detachment commander, Joint Base McGuire-Dix-Lakehurst. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the Organized Crime/Gangs Unit of the U.S. Attorney’s Office in Newark.
Defense counsel: Richard Sparaco Esq., Cherry Hill, New Jersey
Owner of Freight Shipping Company Admits Role in A Scheme to Defraud Pharmaceutical Company Out of $3 MillionRead the Press Release
NEWARK N.J. – The owner of a Morris County, New Jersey, freight shipping company today admitted billing a medical devices and pharmaceutical company more than $3 million for services that were never provided, U.S. Attorney Paul J. Fishman announced.
Courtney P. Shorter, 48, of Roselle, New Jersey, and Memphis, Tennessee, pleaded guilty today before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of mail fraud.
According to the documents filed in this case and statements made in court:
Shorter owned Sam Shorter & Son Delivery Service LLC, a freight shipping and trucking company in Long Valley, New Jersey. Company B manufactured and supplied insulated containers to Company A, a medical devices, pharmaceutical and consumer packaged goods manufacturer headquartered in New Brunswick, New Jersey. Company C was a freight invoice processing company headquartered in Fort Myers, Florida, that Company A used to pay trucking companies.
From 2008 through April 2010, Shorter charged Company A for transporting shipments from Company B to Company A when, in fact, those shipments were never made. Shorter admitted that he and others sent Company C more than 1,725 fraudulent invoices for work that was never actually performed. As a result of the invoices, Shorter received $3,039,840 from Company C, which he later deposited into bank accounts he controlled and used for personal expenses, including more than $120,000 in jewelry.
The mail fraud charge to which Shorter pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for July 28, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to the today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense Counsel: Randy P. Davenport Esq. and Steven Brister Esq., Union, New Jersey
Genovese Organized Crime Family Associate Sentenced to 28 Months in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A North Jersey man was sentenced today to 28 months in prison for his role in the affairs of the Genovese organized crime family of La Cosa Nostra (the “Genovese family”), including engaging in a pattern of racketeering activity by extorting Christmastime tribute payments from members of the International Longshoremen’s Association (ILA), New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Nunzio LaGrasso, 64, of Florham Park, New Jersey, former vice president of ILA Local 1478 and ILA representative – previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to Count One of the second superseding indictment, charging him with racketeering conspiracy. LaGrasso admitted to predicate acts involving conspiracy to commit extortion and multiple extortions.
According to documents filed in this case and statements made in court:
Since at least 2005, co-defendant Stephen Depiro, 59, of Kenilworth, New Jersey, has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235 and vice president of ILA Local 1478.
During their guilty plea proceedings, LaGrasso, Depiro and co-defendant Albert Cernadas, 79, of Union, New Jersey, former president of ILA Local 1235 and former ILA executive vice president, admitted their involvement in the Genovese family, including conspiring to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. LaGrasso and Cernadas admitted to carrying out multiple extortions of dockworkers. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation.
In addition to the prison term, Judge Cecchi sentenced LaGrasso to two years of supervised release and fined $25,000. Cernadas was previously sentenced to probation and DePiro is scheduled to be sentenced April 17, 2015.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Richard M. Frankel, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
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Defense counsel: Michael Critchley Sr., Esq., Roseland
Former New Jersey Resident Pleads Guilty to Defrauding U.S. Subsidiary of Foreign Investment Bank of More Than $1.5 MillionRead the Press Release
TRENTON, N.J. - A former New Jersey resident who previously worked for the U.S. subsidiary of a foreign investment bank admitted today that he orchestrated a scheme to defraud his former employer out of more than $1.5 million, U.S. Attorney Paul J. Fishman announced.
Michael Lieberman, 43, formerly of New Jersey and currently a resident of Huntersville, North Carolina, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of wire fraud for executing a scheme over the course of two years through which he fraudulently transferred more than $1.5 million from accounts of his former employer to bank accounts he controlled.
According to documents filed in this case and statements made in court:
Lieberman was employed by “Company A,” a United States-based subsidiary of an international investment bank, in its International Settlements Group in Iselin, New Jersey. Company A engaged in and settled cross-border securities transactions and acted as a settlement agent for similar securities transactions entered into by its broker-dealer clients. Company A’s International Settlements Group was responsible for, among other things, wiring funds to settle various securities transactions.
From June 2012 through May 2014, Lieberman devised a scheme to use his position in the International Settlements Group to initiate more than 50 separate fraudulent wire transfers of Company A’s money, directing the proceeds to bank accounts he either owned or controlled. Lieberman then spent Company A’s money for his own purposes, including purchasing a home in North Carolina, making tens of thousands of dollars in credit card payments and spending hundreds of thousands of dollars on hotels, airplane tickets, home furnishings, restaurant tabs and other expenditures.
Lieberman took various steps to conceal his fraudulent activities, including making fictitious entries in Company A’s bookkeeping system and supplying phony documents to others in order to cause them to make false entries in the company’s books and records reflecting fake profits on non-existent transactions.
The wire fraud count to which Lieberman pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of up to the greatest of $250,000, twice the gain or twice the loss from the offense. As part of the guilty plea, Lieberman must make restitution and forfeit the proceeds of his scheme, including the home in North Carolina he purchased with money from the fraud. Sentencing is scheduled for July 22, 2015.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Richard Frankel in Newark with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Paul Murphy of the U.S. Attorney’s Office’s Economic Crimes Unit, Zach Intrater, Chief of the General Crimes Unit, and Barbara Ward of the Asset Forfeiture and Money Laundering Unit, in Newark.
This arrest is 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: Linda Pellegrino Esq., Newton, New Jersey
lieberman_michael_information.pdf
New York Man Sentenced to 92 Months in Prison for Role in Multimillion-Dollar International Cybercrime SchemeRead the Press Release
Defendant Managed ‘Cash Out’ Crews for Organization that Allegedly Capitalized on Information Hacked From Customers of More Than a Dozen Global Financial Institutions
TRENTON, N.J. – A member of an international cybercrime, identity theft and credit card fraud conspiracy was sentenced today to 92 months in prison for using information hacked from customer accounts held at more than a dozen banks, brokerage firms, payroll processing companies and government agencies in an attempt to steal at least $15 million from American customers, U.S. Attorney Paul J. Fishman announced.
Oleg Pidtergerya, 50, of Brooklyn, New York, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of wire fraud conspiracy and one count of conspiracy to commit access device fraud and identity theft. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
Pidtergerya was asked by leaders of the conspiracy to participate in a scheme to “cash out” bank accounts and pre-paid debit cards opened in the names of others. Oleksiy Sharapka, 34, of Kiev, Ukraine, allegedly directed the conspiracy with the help of Leonid Yanovitsky, 40, also of Kiev. Pidtergerya managed a cash out crew in New York for Sharapka and Yanovitsky.
Conspiring hackers first gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including: Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.
After obtaining unauthorized access to the bank accounts, Sharapka and Yanovitsky diverted money from them to bank accounts and pre-paid debit cards they controlled. They then employed crews of individuals known as “cashers” to withdraw the stolen funds from the fraudulent accounts, among other ways, by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Georgia and elsewhere. Both Sharapka and Yanovitsky are under indictment in the United States and remain at large.
Pidtergerya admitted he was aware fraudulent accounts and cards were created without the consent of the individuals in whose names they were opened. He admitted coordinating ATM and bank withdrawals of the stolen funds. He also admitted to sending proceeds of the fraud to Sharapka and Yanovitsky in Ukraine.
The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.
In addition to the prison term, Judge Sheridan sentenced Pidtergerya to three years of supervised release, ordered him to pay restitution of $1,758,127, and entered a forfeiture judgment of $250,000.
U.S. Attorney Fishman credited the U.S. Secret Service, under the direction of Acting Special Agent in Charge Carl Agnelli; U.S Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Kevin Kelly; Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe, Cyber Field Office; and IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the ongoing investigation leading to today’s sentencing. He also thanked the Department of Homeland Security’s Customs and Border Protection for assistance with the Yarmolitsky arrest.
The government is represented by Economic Crimes Unit Chief Gurbir S. Grewal of the U.S. Attorney’s Office in Newark.
The charges and allegations concerning alleged conspirators are merely allegations and the defendants are presumed innocent unless and until proven guilty.
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: Mitchell Elman Esq., Port Washington, New York
Monmouth County, New Jersey, Man Admits Possessing Explicit Images of 12-Year Old Pennsylvania GirlRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted possessing sexually explicit images of a 12-year old Pennsylvania girl with whom he had an online relationship, U.S. Attorney Paul J. Fishman announced.
Chad Weber, 22, of Colt’s Neck, New Jersey, pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of possessing images of child pornography.
According to documents filed in the case and statements made in court:
In April 2013, law enforcement agents learned Weber had been communicating with a 12-year-old girl from Pennsylvania. The agents obtained and reviewed copies of various chat logs and other internet-based messages, which reflect Weber’s online communications with the victim between February 2013 and April 2013. Many of these communications were sexually explicit. Weber and the victim also traded sexually explicit photographs of each other through the internet and discussed the photographs in online chats. During some of these communications, Weber acknowledged that the victim was 12 years old. Weber admitted possessing these sexually explicit photographs of the minor victim on his cell phone and computer.
As part of his guilty plea, Weber must forfeit the computer and cell phone he used to commit the offense. He will also be required to register as a sex offender.
The possession of child pornography count to which Weber pleaded guilty carries a statutory maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for June 22, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly in Newark, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, Trenton
Essex County, New Jersey, Carjacker Sentenced to 135 Months in PrisonRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man who was identified by the “find my iPhone” feature on a cell phone he stole during an armed carjacking was sentenced today to 135 months in prison, U.S. Attorney Paul J. Fishman announced.
Lee Caraballo, 28, was previously convicted of both counts in the indictment against him: theft of a motor vehicle by force, violence and intimidation and use of a firearm in furtherance of a crime of violence. Caraballo was convicted following a three-day trial before U.S. District Esther Salas, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
On Nov. 30, 2012, Caraballo carjacked a Rutgers law student at gunpoint in the driveway of the student’s home. After stealing the victim’s wallet and cell phone, Caraballo fled in the victim’s Toyota Corolla. A Roselle Park police officer stopped Caraballo, who was driving his own car, later that day. In that car, law enforcement found the victim’s cell phone and car keys as well as various items of clothing the victim later identified. While Caraballo was in police custody, the carjacking victim located his phone remotely using the “find my iPhone” feature and called the police station. He later identified the defendant.
In addition to the prison term, Judge Salas sentenced Caraballo to five years of supervised release.
U.S. Attorney Fishman credited detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; the N.J. State Police, Newark Police Department and Roselle Park Police Department, as well as criminal investigators from the U.S. Attorney’s Office in Newark with the investigation leading to today’s sentencing.
The government is represented Assistant U.S. Attorneys Barry A. Kamar and Adam N. Subervi of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Gary Leo Cutler Esq., Newark
Former Owner of Defense Contracting Company Admits Defrauding U.S. Department of Defense with Foreign Aircraft PartsRead the Press Release
TRENTON, N.J. – The former owner of a New Jersey defense contracting business today admitted supplying the U.S. Department of Defense (DoD) with foreign-made replacement parts on contracts that only allow products manufactured in the United States, U.S. Attorney Paul J. Fishman announced.
Mehmet Karatokus, 39, of Ankara, Turkey, pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of mail fraud.
According to documents filed in the case and statements made in court:
Karatokus, a Turkish citizen who became a United States resident in 2013, was the founder and owner of Diamond Parts, a company that supplied the DoD with replacement parts for aircraft and other defense items. When he registered the company with the DoD, Karatokus provided a location in Red Bank, New Jersey, even though Diamond Parts did not have manufacturing capabilities in the United States. The investigation revealed that Diamond Parts was actually a shell company created for the purpose of obtaining DoD contracts that Turkish-based manufacturers were not permitted to receive.
From January 2012 to September 2013, Karatokus submitted fraudulent bids stating that Diamond would provide parts manufactured in the United States, when in fact, the items were manufactured in Turkey. Karatokus admitted that in March 2012, he submitted a false bid to provide the DoD with replacement parts for the Hercules C-130 aircraft. Based on Karatokus’ false bid, Diamond Parts was awarded the contract, which was valued at $10,350. Shipping records showed that the parts were sent from Turkey on Sept. 25, 2012, to a packaging and shipping company in Clifton, New Jersey. The parts were subsequently provided to the DoD on Oct. 10, 2012. DoD testing later revealed that the parts had dimensional nonconformities, exhibited poor workmanship and lacked critical markings which could result in a safety issue. As a result, the parts were suspended from use.
The mail fraud count to which Karatokus pleaded guilty is punishable by a maximum penalty of 20 years in prison and a $250,000 fine. As part of the plea, Karatokus must pay restitution of $641,454, representing the funds paid to him pursuant to the fraudulent contracts. Sentencing is scheduled for July 15, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert, and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Special Agent in Charge Kevin Kelly, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Timothy R. Anderson Esq., Red Bank, New Jersey
Deportation Officer Arrested for Harboring an Illegal Alien and Lying to U.S. Immigration AuthoritiesRead the Press Release
NEWARK, N.J. – A deportation officer with Immigration and Customs Enforcement (ICE) surrendered this morning to special agents of ICE’s Office of Professional Responsibility on charges of harboring his girlfriend, an illegal alien, and making false statements about his ownership of a hair salon, U.S. Attorney Paul J. Fishman announced.
Arnaldo Echevarria, 37, of Somerset, New Jersey, is charged by criminal complaint with one count of harboring an illegal alien and one count of making false statements. Echevarria is scheduled for an initial appearance and bail hearing this afternoon before U.S. Magistrate Judge Steven C. Mannion.
According to the criminal complaint unsealed today:
Echevarria was a deportation officer with ICE, a division of the U.S. Department of Homeland Security. In December 2012, Echevarria received permission from his superiors at ICE to open a hair salon in West Orange, New Jersey. Echevarria certified to ICE that the hair salon would not conflict with ICE matters and would not involve illegal aliens. However, Echevarria employed his girlfriend at the time, an illegal alien, to manage the salon. Echevarria’s girlfriend had entered the United States illegally, using the name and identification of an individual in Puerto Rico to obtain a Pennsylvania identification card.
Echevarria allegedly knew his girlfriend and another salon employee resided in the United States illegally. Prior to opening the hair salon, Echevarria queried the name and date of birth of his girlfriend’s alias in various law enforcement databases. After opening the salon, Echevarria allegedly ensured that his girlfriend’s illegal status remained a secret by signing the lease for her apartment and by placing her cable and electric bills in his name. In addition to driving his girlfriend and other salon employees to and from the salon each day, Echevarria also paid the employees in cash and never asked them to fill out employment eligibility paperwork.
The charges of harboring an illegal alien and making false statements are each punishable by a maximum potential penalty of five years in prison and a fine of $250,000 or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of ICE, Office of Professional Responsibility, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Michael Koribanics Esq., Clifton, New Jersey
echevarria_arnaldo_complaint.pdf
Jersey City, New Jersey, Fire Inspector Sentenced to One Year and One Day in Prison for Accepting Bribes in Return for Official Assistance with Prostitution BusinessesRead the Press Release
NEWARK, N.J. – A Jersey City fire inspector was sentenced today to one year and one day in prison for accepting bribes in return for his assistance in providing prostitution businesses with certificates of occupancy and advance notice of inspections or law enforcement activity, U.S. Attorney Paul J. Fishman announced.
Phillip Procaccino, 56, of Belleville, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of attempting to obstruct, delay and affect interstate commerce by extortion under color of official right. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Procaccino admitted that on Oct. 23, 2013, he accepted $2,500 in exchange for his official assistance in obtaining a certificate of occupancy for a massage parlor, which also operated as a prostitution business. Procaccino also offered to provide notice of impending inspections from Jersey City authorities so the owner and employees could preemptively hide evidence of prostitution.
In addition, Procaccino agreed to take 10 percent of future profits from a separate prostitution business in exchange for a certificate of occupancy and one day’s advance notice of any police activity targeting the business. Both prostitution businesses were located in Jersey City.
In addition to the prison term, Judge Hayden sentenced Procaccino to serve one year of supervised release.
U.S. Attorney Fishman praised special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Richard M. Frankel, and criminal investigators from the U.S. Attorney’s Office in Newark for their work leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Vikas Khanna and Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Paul B. Brickfield Esq., River Edge, New Jersey
Hudson County, New Jersey, Man Admits Selling 33 Firearms IllegallyRead the Press Release
NEWARK, N.J. – A convicted felon from Jersey City, New Jersey, today admitted selling 33 firearms to a confidential informant, U.S. Attorney Paul J. Fishman announced.
Bernardo Guzman, 27, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of possessing firearms while being a previously convicted felon.
According to documents filed in this case and statements made in court:
Guzman admitted that on Nov. 14, 2013, he met with an individual in the parking lot of a grocery store in Fort Lee, New Jersey, to illegally sell three handguns. Guzman also admitted that from June 2013 through February 2014, He sold approximately 33 firearms and hundreds of rounds of ammunition to a confidential informant. The firearms sold by Guzman consisted of semiautomatic weapons, sawed-off shotguns, assault-style rifles and firearms with high-capacity magazines. Some of the firearms had obliterated serial numbers. All of the weapons and ammunition are now in the custody of law enforcement.
The charge of possessing a firearm while being a convicted felon carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 11, 2015.
The government is represented by Assistant U.S. Attorney Elizabeth M. Harris of the Organized Crime/Gangs Unit of the Criminal Division in Newark.
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; 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 Jersey City Police Department with the investigation leading to today’s plea.
Defense counsel: Julian Wilsey Esq., Livingston, New Jersey
guzman_bernardo_information.pdf
Essex County, New Jersey, Man Admits Recording His Sexual Abuse of A GirlRead the Press Release
NEWARK, N.J. – A Newark man today admitted inducing a girl to engage in sexually explicit conduct while he took pictures and video, U.S. Attorney Paul J. Fishman announced.
Pedro Rios, 59, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to Counts One through Five and Count Seven of a superseding indictment charging him with sexual exploitation of a child and possession of child pornography.
According to documents filed in the case and statements made in court:
Rios admitted that on five separate dates between March 4, 2008 and Nov. 8, 2011, he induced a girl under the age of 12 to engage in sexually explicit conduct for the purpose of taking pictures and videos of the child’s genitals and the sexually explicit conduct. Rios’s also admitted that he possessed images of child sexual abuse on Feb. 5, 2013. Several of the videos charged in the superseding indictment depict Rios’s abuse of the child victim in the cab of a tractor trailer truck.
Each count of sexual exploitation of a child to which Rios pleaded guilty carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. The possession of child pornography charge carries a maximum statutory penalty of 20 years in prison and a $250,000 fine. Rios will be required to register as a sex offender. Sentencing is scheduled for July 7, 2015.
U.S. Attorney Fishman credited special agents of the FBI Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Richard M. Frankel; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the N.J. Regional Computer Forensics Laboratory with the investigation leading to today’s plea.
The government is represented by Assistant United States Attorneys Danielle Alfonzo Walsman and Jonathan W. Romankow of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Brian J. Neary Esq., Hackensack, New Jersey
New York Doctor Admits Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with a practice in Rockville Centre, New York, today admitted accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Brett Halper, 41, of Glen Head, New York, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
Including Halper, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has so far recovered more than $10.5 million to date through forfeiture.
According to documents filed in this and related cases and statements made in court:
Halper admitted that from January 2011 through April 2013, he accepted bribes in return for referring patient blood specimens to BLS and was often paid in excess of $5,000 per month. Halper’s referrals generated approximately $2,900,000 in lab business for BLS.
The bribery count to which Halper pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 30, 2015.
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; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Joseph N. Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering 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 $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: Marc Agnifilo Esq., New York
New Jersey Doctor Sentenced to over Three Years in Prison for Taking Bribes in Test-Referrals Scheme Involving New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with an office in North Arlington, New Jersey, was sentenced today to 37 months in prison for accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
Angelo Calabrese, 57, of Pine Brook, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes. Judge Chesler imposed the sentence today in Newark federal court.
Including Calabrese, 37 people – 25 of them physicians – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has to date recovered more than $10.5 million through forfeiture.
According to documents filed in this and other cases and statements made in court:
Calabrese admitted accepting more than $130,000 in bribes to refer at least $600,000 in lab business to BLS. From 2010 through 2013, Calabrese received over $4,500 per month from BLS through sham consulting and rental agreements.
In addition to the prison term, Judge Chesler sentenced Calabrese to serve one year of supervised release and ordered him to pay a fine of $5,000. As part of his guilty plea, Calabrese must forfeit $334,000.
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; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Joseph N. Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering 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 $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: Julian Wilsey Esq., Livingston, New Jersey
Paterson City Council Member and Former City Council President Sentenced to Two Years in Prison for Taking BribesRead the Press Release
NEWARK, N.J. – A Paterson City Council member and former council president was sentenced today to 24 months in prison for accepting bribes from a purported developer in exchange for his official help, New Jersey U.S. Attorney Paul J. Fishman announced.
Anthony Davis, 50, of Paterson, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of attempting to obstruct, delay and affect interstate commerce by extortion under color of official right. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On April 20, 2012, Davis accepted $5,000 in cash from an individual who was cooperating with federal authorities and who purported to be an out-of-state real estate developer. Davis accepted the bribe in exchange for his official action as Paterson City Council president to foster the developer’s business interests. Between July 6, 2012, and July 25, 2012, Davis had meetings with the developer, during which Davis discussed the possibility of accepting additional money from the developer in exchange for a letter from Davis to the developer’s lender indicating that the Paterson City Council supported the developer with respect to certain business endeavors in Paterson. On July 25, 2012, Davis agreed to accept, and did accept, $5,000 in cash from the developer in exchange for such a letter.
In addition to the prison term, Judge Walls sentenced Davis to two years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Randy Davenport Esq., Piscataway, New Jersey
Former Owner of Defense Contracting Businesses Pleads Guilty to Illegally Exporting Military Blueprints to India Without A LicenseRead the Press Release
TRENTON, N.J. – The former owner of two New Jersey defense contracting businesses today admitted that she conspired to send sensitive military technical data to India, U.S. Attorney Paul J. Fishman announced.
Hannah Robert, 49, of North Brunswick, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson to Count Six of a superseding indictment, which charged her with conspiracy to violate the Arms Export Control Act by exporting to India military technical drawings without prior approval of the U.S. Department of State.
“Hannah Robert conspired to send to another country thousands of technical drawings of defense hardware items and sensitive military data,” U.S. Attorney Fishman said. “She was also charged with manufacturing substandard parts that were not up to spec, in violation of the contracts she signed with the Department of Defense. Enforcement of the Arms Export Control Act is critical to the defense of our country.”
According to documents filed in this case and statements made in court:
In June 2010, Robert was the founder, owner, and president of One Source USA LLC, a company located at her then-residence in Mount Laurel, New Jersey, that contracted with the U.S. Department of Defense (DoD) to supply defense hardware items and spare parts. In September 2012, Robert opened another defense company, Caldwell Components Inc., based at the same address. Along with a resident of India identified only as “P.R.,” Robert owned and operated a third company located in India that manufactured defense hardware items and spare parts.
From June 2010 to December 2012, Robert conspired to export to India defense technical drawings without obtaining the necessary licenses from the U.S. Department of State. The exported technical drawings include parts used in the torpedo systems for nuclear submarines, in military attack helicopters, and in F-15 fighter aircraft.
In addition to United States’ sales, Robert and P.R. sold defense hardware items to foreign customers. Robert transmitted export-controlled technical data to P.R. in India so that Robert and P.R. could submit bids to foreign actors, including those in the United Arab Emirates (UAE), to supply them or their foreign customers with defense hardware items and spare parts. Neither Robert nor P.R. obtained approval from the U.S. Department of State for this conduct.
On Aug. 23, 2012, P.R. e-mailed Robert requesting the technical drawing for a particular military item. P.R.’s e-mail forwarded Robert an e-mail from an individual purporting to be “an official contractor of the UAE Ministry of Defence,” and who listed a business address in Abu Dhabi, UAE. The UAE e-mail requested quotations for a bid for the “blanket assembly” for the CH-47F Chinook military helicopter and listed the “End User” for the hardware item as the UAE Armed Forces. Later that same day, Robert replied to P.R.’s e-mail, attaching, among other things, the electronic file for an export-controlled technical drawing titled “Installation and Assy Acoustic Blankets, STA 120 CH-47F,” to be used in the Chinook attack helicopter.
In October 2010 Robert transmitted the military drawings for these parts to India by posting the technical data to the password-protected website of a Camden County, New Jersey, church where she was a volunteer web administrator. This was done without the knowledge of the church staff. Robert e-mailed P.R. the username and password to the church website so that P.R. could download the files from India. Through the course of the scheme, Robert uploaded thousands of technical drawings to the church website for P.R. to download in India.
On June 25, 2012, P.R. e-mailed Robert, stating: “Please send me the church web site username and password.” The e-mail was in reference to both an invoice to and a quote for a trans-shipper known to Robert as a broker of defense hardware items for an end user in Pakistan. This individual used a UAE address for shipping purposes. Later that day, Robert replied to this e-mail, providing a new username and password for the church website so that P.R. could download the particular defense drawings.
On Oct. 5, 2012, Robert e-mailed P.R. with the subject line “Important.” The e-mail referenced the Pakistan trans-shipper, a separate potential sale to individuals in Indonesia, and the church website: “Please quote [the Pakistan trans-shipper] and Indonesia items today[.] [Dr]awings I cannot do now as if the size exceeds then problem, I should be watching what I upload, will do over the weekend[.] Ask me if you need any drawing . . . . Talk to you tomorrow . . . .”
There were also quality issues with the parts that Robert provided to the DoD. After the DoD in October 2012 disclosed that certain parts used in the wings of the F-15 fighter aircraft, supplied by one of One Source USA’s United States customers, failed, Robert and P.R. provided the principal of their customer with false and misleading material certifications and inspection reports for the parts. These documents, to be transmitted to the DoD, listed only One Source USA’s New Jersey address and not the address of the actual manufacturer in India, One Source India. As a result of the failed wing pins, the DoD grounded approximately 47 F-15 fighter aircraft for inspection and repair, at a cost estimated to exceed $150,000.
Until November 2012, Robert was an employee of a separate defense contractor in Burlington County, New Jersey, where she worked as a system analyst and had access to thousands of drawings marked with export-control warnings and information on this defense contractor’s bids on DoD contracts. Robert misrepresented to her employer the nature and extent of her involvement with One Source USA in order to conceal her criminal conduct.
Count Six of the superseding indictment – conspiracy to violate the Arms Export Control Act – is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. As part of her plea agreement, Robert must pay $181,015 to the U.S. Department of Defense, which includes the cost of repair for the grounded F-15s. Robert also consented to a forfeiture money judgment of $77,792, which represents the dollar value of Robert’s fraudulent contracts with the U.S. Department of Defense. Sentencing is scheduled for June 26, 2015.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert; and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton, and L. Judson Welle of the U.S. Attorney’s Office National Security Unit. The prosecution received invaluable support from attorneys of the U.S. Department of Justice’s National Security Division, Counterespionage Section.
Defense counsel: David Schafer Esq., Lawrenceville, New Jersey
robert_hannah_superseding_indictment.pdf
Essex County, New Jersey, Man Sentenced to 135 Months in Prison in Multi-Million Dollar Real Estate Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 135 months in prison for running a real estate investment scheme that bilked victims out of more than $5 million, U.S. Attorney Paul J. Fishman announced
Abbe Edelman, 51, of Livingston, New Jersey, previously pleaded guilty before U.S. District Judge Susan Wigenton to an information charging him with one count of wire fraud. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
For roughly a decade, Edelman conducted an elaborate real estate investment fraud Ponzi scheme, duping victim-investors to provide him with money purportedly to buy and sell real estate and earn large returns on their investments. Beginning in 2004, Edelman operated through several companies alleged to be in the business of buying and selling real estate. Edelman told investors that he had significant past real estate experience, including a purported history of successfully buying and selling numerous bank foreclosed properties, and an MBA degree from NYU in real estate finance. Edelman claimed that he had longstanding relationships with banks that provided him with unique access to purchase foreclosed properties at below market prices and, in fact, already had negotiated with the banks to purchase certain properties at agreed-upon prices that would guarantee an easy resale and profit for investors.
Edelman promised investors that any investment would be used solely for the purchase, renovation or sale of specific investment properties in, among other places, New York, New Jersey, California, and Florida. Edelman told his investors that he could obtain extraordinary returns – as much as 25 percent – in as little as eight to 12 months. He purportedly told some victims that he had received from other investors, including professional athletes and celebrities, the majority of the capital needed to purchase the investment properties. He also said he had provided cash deposits to the financial institutions to secure the right to purchase the investment properties and invested his own money in the deals.
In reality, neither Edelman nor any of his real estate companies had a history of purchasing any bank foreclosed properties. Edelman also did not possess even an undergraduate degree. He did not have any deals lined up involving any investment properties, did not have his own money invested in any such deals, and did not have any money from celebrity investors. Edelman induced investors to give him more than $5 million; none of it was used to fund any real estate acquisitions or renovations, but was instead diverted for his own use.
Edelman used his victims’ money for his home mortgage and day-to-day living expenses, such as restaurants, telephone, and gas bills. He purchased merchandise from high-end retailers, such as Gucci and Neiman Marcus, repaid existing investors in Ponzi-scheme fashion, and paid his legal expenses in connection with victims seeking repayment of their investment.
When investors later inquired about the status of their investments, Edelman offered additional misrepresentations, including emails sent from a fake email account that he had created, falsely assuring investors that he and his company had closed on the foreclosed properties, sometimes telling them buyers for the properties already had been identified.
In some cases, to allow the scheme to continue undetected, Edelman made “lulling” payments to investors, ranging from $100 to tens of thousands of dollars, to permit the scheme to continue. When payments were made to any investors, Edelman generally represented that the money was from the sale of investment properties, when, in fact, it came from a new investor.
In addition to the prison term, Judge Wigenton sentenced Edelman to serve three years of supervised release and pay $3,121,279 in restitution to his victims. Judge Wigenton also ordered a money judgment against Edelman in the amount of $3,121,279, representing the proceeds of Edelman’s fraudulent scheme, and forfeiture of Edelman’s interest in certain assets previously seized by the government, including approximately $79,000 and a 2014 Audi.
U.S. Attorney Fishman credited criminal investigators with the U.S. Attorney’s Office and postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s sentencing.
This case is 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 government is represented by Assistant U.S. Attorney Joseph B. Shumofsky of the Economic Crimes Unit.
Defense Counsel: William J. Rush, Wayne, New Jersey
Union City, New Jersey, Inspector Admits Conspiring to Rig Contractor Selection Process for Community Development ProjectsRead the Press Release
NEWARK, N.J. – An inspector at the Union City Community Development Agency (UCCDA) today admitted conspiring with contractors to rig the selection process for home improvement, sidewalk replacement and other projects, causing losses of at least $400,000, U.S. Attorney Paul J. Fishman announced.
Johnny Garces, 52, of Union City, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of conspiring with others to obtain by fraud funds provided by Union City.
According to documents in this case and statements made in court:
Between April 2007 and July 2011, Garces was an inspector at the UCCDA, a government agency that receives funding from the U.S. Department of Housing and Urban Development (HUD) under a federal block grant that provides money for home improvement projects, sidewalk replacement and other projects.
From 2007 through 2011, Garces conspired with contractors Joseph Lado, 66, of Fort Lee, New Jersey, Leovaldo Fundora, 53 of Guttenberg, New Jersey, and others to rig the selection process for HUD-funded projects through false and misleading bids. In addition to instructing Lado and Fundora to submit phony, higher bids from competitors, Garces also fabricated higher bids from numerous fictitious companies so that Lado, Fundora and others would secure the projects.
The conspiracy charge to which Garces pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Garces is scheduled to be sentenced on July 7, 2015. Lado and Fundora have both pleaded guilty for 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, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Christopher L. Patella Esq., Bayonne, New Jersey
Two New Jersey Doctors Sentenced to Prison for Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – Two New Jersey doctors were each sentenced today to prison for accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Wayne Lajewski, 51, of Madison, New Jersey and Glenn Leslie, 60, of Ramsey, New Jersey, were sentenced to 14 months and 24 months in prison, respectively. Lajewski and Leslie previously pleaded guilty before U.S. District Judge Stanley R. Chesler to separate informations charging them each with one count of accepting bribes. Judge Chesler imposed the sentences today in Newark federal court.
Including Lajewski and Leslie, 37 people – 24 of them physicians – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has to date recovered more than $10.5 million through forfeiture.
According to documents filed in this and other cases and statements made in court:
Lajewski admitted he accepted cash bribes of $2,000 per month over two years in return for referring patient blood specimens to BLS, for which BLS received more than $850,000. Leslie admitted accepting $5,000 per month in return for referring patient blood specimens to BLS, for which BLS received $380,000.
In addition to the prison term, Judge Chesler sentenced both Lajewski and Leslie to one year of supervised release and fined them $10,000 each. As part of their guilty pleas, Lajewski must forfeit $48,000 and Leslie must forfeit $350,000.
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; IRS– Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Joseph N. Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering 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 $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:
Lajewski: Thomas Calcagni Esq., Newark
Leslie: Michael J. Beatrice Esq., Mahwah, New Jersey
Miami-Dade, Florida, Police Officer Admits Role in Cocaine Distribution ConspiracyRead the Press Release
NEWARK, N.J. – A former lieutenant with the Miami-Dade Police Department, Internal Affairs, today admitted his role in a narcotics conspiracy, including purchasing six firearms for a drug trafficking organization and smuggling those weapons through security checkpoints at the Miami International Airport, U.S. Attorney Paul J. Fishman announced.
Ralph Mata, 45, a/k/a “the Milk Man,” of Broward County, Florida, pleaded guilty before U.S. District Court Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of aiding and abetting a narcotics conspiracy, one count of conspiring to distribute cocaine and one count of engaging in monetary transactions in property derived from unlawful activity. Judge Wigenton continued Mata’s release on bail pending sentencing.
According to documents filed in this case and statements made in court:
From June 2012 through November 2012, Mata purchased at least six firearms from a gun store in Florida, which ultimately were provided to members of the Juan Arias Drug Trafficking Organization. Using his prior experience as a lieutenant assigned to the Miami International Airport, as well as his law enforcement contacts at the airport, Mata and others smuggled the six firearms through airport security checkpoints and onto a commercial airliner destined for the Dominican Republic.
Mata also provided advice, guidance and counsel to Juan Arias regarding the means and methods the drug trafficking organization should use to import and distribute cocaine. Mata transported narcotics proceeds for the organization.
He also engaged in monetary transactions in property derived from the sale of narcotics. On March 28, 2013, Mata traveled from Miami to New Jersey and received approximately $60,000 in narcotics proceeds from Juan Arias and others. Using a portion of that $60,000, Mata made separate $10,000 cash deposits at two different bank locations in Fort Lee, New Jersey. As payment for his assistance to the drug trafficking organization, Mata accepted a total of approximately $100,000 in cash and gifts from the Juan Arias drug trafficking organization.
The charges of aiding and abetting a narcotics conspiracy and conspiring to distribute cocaine each carry a minimum penalty of 10 years in prison, a maximum penalty of life imprisonment, and a maximum fine of $10 million. The money laundering charge is punishable by a maximum term of 10 years in prison and a $250,000 fine. As part of his plea, Mata also agreed to forfeit the $75,405.17 seized on April 9, 2014. Sentencing is scheduled for July 14, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Garret Mountain Resident Office, under the direction of Special Agent in Charge Richard M. Frankel in Newark; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea. He also thanked the Miami FBI, the Miami-Dade Police Department, the Miami-Area Corruption Task Force and the U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, New York, for their assistance with the investigation.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), 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.
The government is represented by Assistant U.S. Attorneys Mary E. Toscano and José R. Almonte of the Special Prosecutions Division in Newark, and Barbara Ward of the Office’s Asset Forfeiture and Money Laundering Unit.
Defense counsel: Jay V. Surgent Esq., Parsippany, New Jersey, and Bruce H. Fleisher Esq., Miami
Essex County, New Jersey, Man Admits Armed Bank RobberyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted robbing an Investor’s Savings Bank in Irvington, New Jersey, U.S. Attorney Paul J. Fishman announced.
Karim Brunson, 25, of Newark, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an indictment charging him with one count of armed bank robbery and one count of using a firearm during a crime of violence.
According to documents filed in this case and statements in court:
Brunson used a .357 caliber handgun to rob an Investor’s Savings Bank in Irvington on June 28, 2014. After entering the bank wearing a mask, Brunson approached a uniformed, off-duty Irvington police officer and pointed a handgun at his head. Brunson then threw a plastic bag to one of the bank tellers and demanded that bank employees fill the bag with money. As Brunson threw the plastic bag to the teller, the off-duty police officer pushed Brunson’s arm down and fought him for the gun in the bank lobby. Brunson was eventually subdued with the help of bank employees and another off-duty Irvington police officer who arrived at the bank during the robbery.
The bank robbery charge carries a maximum potential penalty of 25 years in prison and a fine of up to $250,000. The charge of using a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison. Sentencing is scheduled for July 7, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; along with the Irvington Police Department under the direction of Police Director Musa A. Malik; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn Murray, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel: Richard Roberts Esq., Newark
brunson_karim_indictment.pdf
Former President and Ceo of Immigration Consultation Company Sentenced to Two Years in Prison for Fraud, Money LaunderingRead the Press Release
CAMDEN, N.J. - A Union, New Jersey, man was sentenced today to 24 months in prison for providing fraudulent immigration documents involving sham marriages and attempting to deposit a fraudulent tax return check of more than $100,000, U.S. Attorney Paul J. Fishman announced.
Maxwell Poku, 36, a naturalized United States citizen from Ghana, previously pleaded guilty before U.S. District Judge Joseph E. Irenas to an information charging him with one count each of immigration fraud, wire fraud and money laundering. Judge Irenas imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Poku was the president and CEO of Max$Max Finance and Travel LLC (Max$Max), a business with offices in Elizabeth, New Jersey, Orange, New Jersey and Ghana. Max$Max purported to offer immigration consultation and other services to the African community.
Poku admitted that he helped numerous individuals obtain immigration benefits to which they were not entitled by filing documents that falsely reflected that they were married to United States citizens. Poku admitted that he paid individuals to act as sham spouses and provided fraudulent letters of employment, utility bills, credit card statements, W-2 forms and tax return transcripts, which he downloaded and altered, to demonstrate the marital status of the immigrant petitioners.
Poku used forged Ghanaian government stamps, which he obtained from a store in New Jersey, as well as blank Ghanaian birth certificates. He used an iron and coffee to give the documents an aged appearance.
The money laundering count arose from an entirely separate scheme in which Poku came into possession of a refund check for $115,138 that was issued as a result of a fraudulent tax return. Poku admitted he incorporated a business entity in the state of New Jersey named “Brian Robinson Equipment Sales LLC,” opened a bank account at Sovereign Bank under that name, and deposited the refund check into the account. The sum was recovered by law enforcement before it could be withdrawn.
As part of the plea, Poku must forfeit to the United States $10,500, and computer media and equipment seized from Max$Max on the day of his arrest on August 10, 2012.
In addition to the prison term, Judge Irenas sentenced Poku to serve three years of supervised release and to pay a fine of $75,000.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly; special agents of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Rodney A. Davis; and special agents of the U.S. Secret Service, under the direction of Acting Special Agent in Charge Carl Agnelli, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Justin Danilewitz of the U.S. Attorney’s Office in Camden.
Defense counsel: Henry E. Klingeman Esq., Newark, N.J.
Essex County, New Jersey, Man Admits Illegally Possessing Fireram and Smuggling Marijuana into Federal Pretrial Detention FacilityRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted illegally possessing a firearm and conspiring with others to smuggle contraband, including marijuana and tobacco, into a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
Muhammad Subpunallah, 33, of Orange, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden to an indictment charging him with the illegal possession of a firearm and to an information charging him with one count of conspiring to smuggle contraband into the Essex County Correctional Facility, a federal pretrial detention facility. Subpunallah is being held without bail.
According to the documents filed in this case and other cases and statements made in court:
On Oct. 11, 2011, Subpunallah had a loaded .38 caliber Cobra firearm in his waistband while standing near Broad and Market streets in Newark. He had previously been convicted of robbery in Essex County Superior Court. After Subpunallah was arrested and detained on the illegal possession of a firearm, he engaged in a conspiracy to smuggle contraband into the Essex County Correctional Facility. From September 2013 to February 2014, Subpunallah directed a relative, Vladimir Sauzereseteo, to deliver contraband, including marijuana and tobacco, to Brian Kapalin, a New Jersey lawyer, who then smuggled the contraband into the Essex County Correctional Facility in exchange for a cash fee. Subpunallah sent inmates to the attorney visitor room to meet with Kapalin and retrieve the contraband.
In January 2014, Subpunallah spoke with Kapalin over a recorded correctional facility phone. Subpunallah asked Kapalin to deliver contraband to an inmate at the Essex County Correctional Facility. Sauzereseteo was then paid $1,650 via Western Union money transfers, which he used to purchase marijuana that he delivered to Kapalin, along with a cash payment for Kapalin’s service. A few days later, Kapalin met the inmate from the Essex County Correctional Facility in the attorney visitor room and he delivered the marijuana.
The charge for illegally possessing a firearm carries a maximum penalty of 10 years in prison. The charge for conspiring to provide contraband, including marijuana, to inmates at the Essex County Correctional Facility, carries a maximum penalty of five years in prison. Each charge also carries a maximum fine of $250,000. Sentencing is scheduled for July 20, 2015.
U.S. Attorney Fishman credited officers with the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos; special agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge George P. Belsky; special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark: and investigators with the Internal Affairs Division of the Essex County Correctional Facility, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s plea.
The government is represented by Special Assistant U.S. Attorney Andrew Tyler and Assistant U.S. Attorneys Cari Fais of the Criminal Division, General Crimes Unit; Robert Frazer, of the Organized Crime/Gangs Unit; and Rahul Agarwal of the Special Prosecutions Division, in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
Union County, New Jersey, Man Charged with Enticing a Child to Engage in Sexual ActivityRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was arrested today for allegedly enticing a child with whom he had an online relationship to engage in sexual activity from 2008 through July 2011, U.S. Attorney Paul J. Fishman announced.
Eric Bing, 28, of Clark, New Jersey, was charged by complaint with enticing a child to engage in sexual activity. Bing is scheduled to make his initial court appearance later today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the complaint:
In 2008, Bing, posing as a famous band singer, allegedly began an online relationship with a girl living overseas who was approximately 14 years old at the time. He used internet-based communications, including chat, email, online video games, and a one-way webcam. Bing made increasingly explicit sexual requests to the victim for her to send pictures and videos of herself using her webcam. The victim complied with many of these requests between 2008 and 2010.
The enticement count with which Bing is charged carries a statutory mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison and a $10 million fine.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to the charge.
The government is represented by Special Assistant U.S. Attorney Andrew R. Tyler of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Bing, Eric Complaint
South Jersey MRI Facility Owners Admit Paying Tens of Thousands in cash Bribes for Patient referralsRead the Press Release
CAMDEN, N.J. – The owners of two South Jersey MRI facilities today admitted paying more than $30,000 in cash bribes to a doctor for patient referrals, U.S. Attorney Paul J. Fishman announced.
Norman Brettler, a/k/a “Norbert,” 67, of Cherry Hill, New Jersey, and Lee Getson, 62, of
Southampton, New Jersey, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to separate informations charging them each with one count of conspiracy to pay kickbacks.According to documents filed in this case and statements made in court:
Brettler and Getson owned Positional Imaging Associates LLC, d/b/a Ocean Upright MRI, in Toms River, New Jersey, and Tilton Dynamic Imaging LLC, in Northfield, New Jersey. From January 2012 through June 2014, Brettler and Getson agreed with others to pay cash bribes to a doctor in exchange for patient referrals. Brettler and Getson paid the doctor more than $30,000 for referrals, resulting in more than $115,000 in Medicare payments to their MRI companies.
The conspiracy charge to which Brettler and Getson pleaded guilty carries a maximum potential penalty of five years in prison and a fine of $250,000 or twice the gross gain or loss resulting from the offense. Sentencing for both defendants is scheduled for June 29, 2015.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jane H. Yoon and Senior Litigation Counsel Andrew Leven 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 $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.
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Brettler: Michael Critchley Esq., Roseland, New Jersey
Getson: Carl D. Poplar Esq., Cherry Hill, New JerseySouthern California Man Charged in Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. - A Southern California man is expected to make his initial court appearance today for allegedly conspiring to transport 12 kilograms of cocaine from California to New Jersey and elsewhere, U.S. Attorney Paul J. Fishman announced.
Jesus Raul Iribe, 37, of Riverside, California, is charged by federal criminal complaint with one count of conspiring to distribute cocaine. Iribe is scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
Iribe has been in custody since he was arrested at his home on March 10, 2015. When federal agents arrested Iribe, they found $460,000 in cash hidden in the house, as well as three guns, including an AR-15 assault rifle.
According to the complaint:On Feb. 8, 2013, law enforcement recorded and observed meetings between Iribe and other conspirators in which they allegedly planned to use a tractor-trailer to transport cocaine from California to New Jersey and other destinations along the East Coast. Eventually, law enforcement followed the tractor trailer to Bronx, New York, where they recovered a produce box containing 12 kilograms of cocaine.
The conspiracy charge carries a statutory mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison and a $10 million fine.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, the DEA Los Angeles Field Office and the Fontana, California, Police Department with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Barry Kamar and David Eskew of the U.S. Attorney’s Office General Crimes Unit.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.15-102
Florida Man Admits Conspiring to Sell Firearms Purported to belong to the Family of Saddam HusseinRead the Press Release
NEWARK, N.J. - A Miami, Florida, man today admitted trying to sell seven firearms believed to have belonged to the family of Saddam Hussein, U.S. Attorney Paul J. Fishman announced.
David Philip Ryan, 50, pleaded guilty before U.S. District Judge Katharine S. Hayden to Count One of an indictment charging him with conspiracy to transport stolen firearms.
According to documents filed in this case and statements made in court:
In April 2012, law enforcement received information that valuable firearms allegedly belonging to members of the family of the late Iraqi president Saddam Hussein were available for sale (Hussein Family Firearms). The Hussein Family Firearms were believed to be kept in Florida, and Ryan and others attempted to find a buyer for them. The firearms had been appraised at $250,000 to $350,000. Seven firearms were shipped to New Jersey for viewing by potential buyers.
Federal law enforcement officers seized the following firearms in the course of the investigation:
(1) One Coonan Arms Inc., .357 semi-automatic pistol, nickel finish, made in St. Paul, Minn., with gold inlay and a medallion AQS@ on left side grip (believed to be the initials of Qusay Saddam Hussein al-Tikriti, the second son of former Iraqi President Saddam Hussein);
(2) One Korth, .357 magnum revolver (six shot) stamped AMade in W. Germany Waffenfabrik Koth Ratzeburg/LBG,@ with gold inlay, black finish, wood grips, which displays a drawing of a wild boar;
(3) One Korth, .357 magnum, revolver (six shot) stamped AMade in W. Germany Waffenfabrik Koth Ratzeburg/LBG,@ with gold inlay, black finish, wood grips, which displays a drawing of a moose;
(4) One Chinese State Factories type 64 pistol, .32 caliber semi-auto pistol, black finish, with Yemen flag icon on both sides of grip and Arabic writing on the slide;
(5) Two Cosmi, 12 gauge shotguns, break top, single barrel;
(6) One Llama Semiautomatic .45 ACP pistol with gold leaf and gold inlays, hand engraved, bearing the initials AQ.S.@
The count to which Ryan pleaded guilty carries a maximum penalty of 5 years’ imprisonment and a fine of $250,000. Sentencing is scheduled for June 22, 2015.
Three other individuals, Carlos Quirola-Ordonez, Karlo Sauer and Howard Blumenthal, have pleaded guilty to their roles in this conspiracy. Blumenthal has been sentenced, and Quirola-Ordonez and Sauer are awaiting sentencing.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of George P. Belsky; and Immigration and Customs Enforcement (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 guilty plea.
The case is being prosecuted by Assistant U.S. Attorney Joyce M. Malliet of the National Security Unit in Newark.
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Defense Counsel: Michael V. Gilberti Esq., Florham Park, New Jersey
Ryan, David Indictment
Corrections Officer Sentenced to 18 Months in Prison for Accepting Cash BribesRead the Press Release
TRENTON, N.J. – An Essex County corrections officer was sentenced today to 18 months in prison for his involvement in a scheme to smuggle marijuana, cell phones and tobacco into the Essex County Correctional Facility, a federal pretrial detention facility, in exchange for cash bribe payments, U.S. Attorney Paul J. Fishman announced.
Stephon Solomon, 27, of Irvington, New Jersey, previously pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of conspiring to commit extortion under color of official right. Judge Cooper imposed the sentence today in Trenton federal court.
According to the documents filed in this and other cases and statements made in court:
On multiple occasions between October 2013 and May 2014, Solomon, a corrections officer at the Essex County Correctional Facility, smuggled contraband – including cell phones, tobacco, and marijuana – to Quasim Nichols, 29, a federal pretrial detainee, in exchange for cash bribes. Darsell Davis, 29, and Dwayne Harper, 30, friends of Nichols, aided in the smuggling scheme by collecting the contraband to be smuggled into the facility. Solomon received the contraband and cash bribes from Davis and then smuggled the contraband to Nichols, who ultimately sold some of the marijuana and cell phones to other inmates. The inmates purchasing marijuana and cell phones from Nichols had their friends and family pay for the items by sending Western Union money transfers to Nichols, who enlisted Davis and others to retrieve those payments for him.
In addition to the prison term, Judge Cooper sentenced Solomon to three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and investigators with the Internal Affairs Division of Essex County Correctional Facility, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Rob Frazer of the Criminal Division, Organized Crime/Gangs Unit, in Newark.
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Defense counsel: Jason Orlando Esq., Jersey City, N.J.Newark, New Jersey, Man Sentenced to 12 Years in Prison for Armed CarjackingRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 144 months in prison for his role in a shotgun carjacking in Little Falls, New Jersey, on Oct. 30, 2011, U.S. Attorney Paul J. Fishman announced.
Hanzah Darby, 26, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an indictment 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 Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Oct. 30, 2011, Darby, and Ivan Lee, 26, of Newark, were in the Little Falls area when they spotted a parked 2008 BMW 335 with passengers inside. Darby and Lee – who brandished a shotgun – approached the car and ordered the occupants out of the vehicle at gunpoint. Darby and Lee then took the car and fled the area. Law enforcement officers recovered the car in Newark on Nov. 7, 2011. Darby was standing next to it at the time.
In addition to the prison term, Judge Wigenton sentenced Darby to serve three years of supervised release.
Lee, who was charged with Darby in the indictment, previously pleaded guilty to one count of theft of a motor vehicle by force and was found guilty of the brandishing a firearm charge following a one-week trial before Judge Wigenton. Lee was sentenced to 14 years in prison on Feb. 11, 2015.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; officers of the Little Falls Police Department, under the direction of Chief John Dmuchowski; the N.J. State Police, under the direction of Col. Rick Fuentes; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s sentencing. He also thanked the Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik for its assistance.
The government is represented by Assistant U.S. Attorney Cari Fais and Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Timothy Donohue Esq., West Orange, New Jersey.Member of Drug Trafficking Organization Admits to Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A member of a large-scale drug trafficking organization today admitted conspiring to distribute heroin in Ocean and Monmouth counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Jonathan Thomas, a/k/a “Life,” 39, of Asbury Park, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiring to distribute heroin.In March 2014, 20 other alleged members of the drug trafficking organization of which Thomas was a member were charged by criminal complaint with conspiring to distribute heroin. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of those individuals, eight have pleaded guilty.
According to documents filed in this case and statements made in court:
Between September 2013 and March 2014, Thomas conspired with others to distribute heroin in Ocean and Monmouth counties. Thomas was one of the Britt-Young DTO’s heroin suppliers. Thomas admitted supplying between 100 and 400 grams of heroin to the Britt-Young DTO during the conspiracy. Although he was incarcerated in New Jersey during the conspiracy, he continued to supply narcotics to the Britt-Young DTO through another conspirator, who picked up heroin from New York City and delivered it on Thomas’ behalf.
The narcotics conspiracy charge to which Thomas pleaded guilty carries a maximum penalty of 20 years in prison and $1 million fine. Sentencing is scheduled for June 30, 2015.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense Counsel: Kim A. Otis Esq., Princeton, New Jersey
Thomas, Jonathan Information
Medical Office Receptionist Sentenced to 34 Months in Prison for Embezzlement, Credit Card Fraud and Tax EvasionRead the Press Release
NEWARK, N.J. – A receptionist previously employed by a medical office in Kearny, New Jersey, was sentenced today to 34 months in prison for embezzling more than $446,000 from her former employer, using fraudulent credit cards to obtain more than $200,000 in goods and services and evading taxes on that illegal income, U.S. Attorney Paul J. Fishman announced.
Gwendolyn Muller, 53, formerly of Kearny, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging her with one count each of embezzlement, credit card fraud and tax evasion. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2007 through 2011, Muller used her position at the medical practice to take, cash, and conceal more than $446,000 in checks paid by insurance companies to the medical practice for services to patients. At various times during this same period, Muller also fraudulently obtained 10 credit cards in the name of a principal of the medical practice and used those cards to charge more than $218,000 in goods and services – a portion of which Muller paid for with embezzled funds. Muller also admitted to filing a false tax return to evade the payment of taxes on this illegally obtained income.
In addition to the prison term, Judge Martini sentenced Muller to three years of supervised release and ordered her to pay restitution of $556,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.The government is represented by Senior Litigation Counsel Andrew Leven 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 $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.
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Defense counsel: Donald Rinaldi Esq., Nutley, New Jersey