District of New Jersey

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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

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

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

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

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

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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.

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

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

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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Defense counsel: Brettler: Michael Critchley Esq., Roseland, New Jersey
Getson: Carl D. Poplar Esq., Cherry Hill, New Jersey

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.

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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

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, 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.

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

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

NEWARK, N.J. - A doctor practicing family medicine in East Orange, New Jersey, was sentenced today to nine months in prison for receiving cash kickbacks for diagnostic testing referrals and failing to file tax returns on almost $1 million in income over a three-year period, U.S. Attorney Paul J. Fishman announced.

Yash Khanna, 73, of Livingston, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to a six-count superseding indictment charging him with conspiracy to violate the federal health care anti-kickback statute; soliciting and receiving more than $10,000 in illegal cash kickbacks for patient referrals in violation of the anti-kickback statute; and failing to file tax returns for tax years 2008, 2009 and 2010. Judge Cecchi imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

From 2009 through 2011 Khanna owned and operated his own medical practice, Family Medicine and Pediatrics LLC. He agreed with representatives of diagnostic testing facility Orange Community MRI LLC (Orange MRI) to accept cash in exchange for Medicare and Medicaid patient referrals. Khanna admitted meeting with an Orange MRI representative at his office on Oct. 4, 2011, Nov. 10, 2011, and other occasions to receive envelopes containing cash kickbacks.

Khanna also admitted to earning income of more than $381,000 in 2008, $400,000 in 2009, and $214,000 in 2010. He intentionally failed to file tax returns or ask for extensions during those years.

In addition to the prison term, Judge Cecchi sentenced Khanna to serve one month of house arrest and three years of supervised release. He was fined $30,000 and ordered to forfeit $10,400.

U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and criminal investigators with the U.S. Attorney’s Office, with the investigation leading to today’s sentencing.

The government is represented by Deputy Chief Scott B. McBride of the U.S. Attorney’s Office’s Economic Crimes Unit and Deputy Chief Joseph G. Mack of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit.

U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $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: Christopher L. Patella Esq., Bayonne, New Jersey

TRENTON, N.J. – Two Newark, New Jersey, men were each sentenced prison terms today for their involvement in a scheme to smuggle contraband, including marijuana and cell phones, into the Essex County Correctional Facility, a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.

Darsell Davis, 29, and Dwayne Harper, 31, were sentenced to 15 months and 12 months in prison, respectively. Davis previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of conspiring with others to commit extortion under color of official right. Harper previously pleaded guilty before Judge Cooper to an information charging him with one count of conspiring to smuggle contraband into the Essex County Correctional Facility. Judge Cooper imposed both sentences today in Trenton federal court.

According to the documents filed and statements made in court:

On multiple occasions between September 2013 and May 2014, Stephon Solomon, 27, a corrections officer at the Essex County Correctional Facility, smuggled contraband – including cell phones, tobacco, and marijuana – to Quasim Nichols, 30, a federal pretrial detainee at facility, in exchange for cash bribes. Davis and Harper aided the smuggling scheme by collecting the contraband to be smuggled into the facility. After receiving contraband and cash bribes from Davis, Solomon smuggled the contraband to Nichols, who ultimately sold some of the marijuana and cell phones to other inmates. The inmates purchased the contraband by having friends and family send Western Union money transfers to Nichols, who then enlisted Davis and others to retrieve those payments for him. Davis obtained at least $4,300 in Western Union payments over the course of the conspiracy.

Nichols pleaded guilty before U.S. District Judge Mary L. Cooper on Feb. 11, 2015, to an information charging him with one count of committing an armed carjacking and one count of conspiring with others to commit extortion under color of official right. Nichols is scheduled for sentencing on May 20, 2015.

Solomon pleaded guilty on Oct. 1, 2014, to one count of conspiring to commit extortion under color of official right and awaits sentencing on March 25, 2015. He has been released on bail.

In addition to the prison term, Judge Cooper sentenced Davis and Harper to each serve 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 the Essex County Correctional Facility, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s sentencings.

The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Robert Frazer of the Criminal Division, Organized Crime/Gangs Unit, in Newark.

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Defense counsel: Davis: Maria Noto Esq., Matawan, New Jersey
Dwayne Harper: Michael Pedicini Esq., Morristown, New Jersey

NEWARK, N.J. – A Romanian citizen made his initial court appearance today following his extradition to face charges that he orchestrated an international hacking scheme targeting retailers, security companies, medical offices and individuals in the United States, U.S. Attorney Paul J. Fishman announced.

Mircea-Ilie Ispasoiu, 29, of Drobeta-Turnu Severin, Romania, is charged by federal indictment with two counts of wire fraud, two counts of unauthorized computer access to obtain information, two counts of unauthorized computer access that caused damage and three counts of aggravated identity theft. Ispasoiu was arrested Nov. 13, 2014, following an investigation led by the U.S. Secret Service and coordinated with Romanian law enforcement. The Court of Appeal of Bucharest granted extradition on Jan. 26, 2015, and Ispasoiu arrived in the United States on March 20, 2015. He appeared this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

According to documents filed in this case and statements made in court:

From August 2011 through February 2014, Ispasoiu was employed as computer systems administrator at a large financial institution in Romania. Ispasoiu’s scheme allegedly involved hacking networks belonging to retailers, security companies, medical offices and individuals in order to steal user names and passwords, personal identifiers and credit and debit card data. For just one of the victims identified in the indictment, Ispasoiu was able to steal more than 10,000 credit and debit card numbers. Ispasoiu also gained access to a computer at a large security company that ran background checks on job applicants. Ispasoiu stole the applicants’ personal identifying information, including their fingerprints.

The maximum potential penalties for each count are as follows:

Count

Violation

Maximum Penalty

1 and 2

Wire fraud

30 years; $1 million fine or twice the gain or loss from the offense

3 and 4

Unauthorized computer access to obtain information

Five years; $250,000 fine or twice the gain or loss from the offense

5 and 6

Unauthorized computer access that caused damage

Five years; $250,000 fine or twice the gain or loss from the offense

7-11

Aggravated identity theft

Mandatory two years (consecutive to any other imposed sentence); $250,000 fine or twice the gain or loss from the offense

U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Newark Field Office, under the direction of Acting Special Agent in Charge Carl Agnelli, with the investigation leading to the charges. U.S. Attorney Fishman also thanked the Justice Department’s Office of International Affairs in Washington, as well as the Prosecutor’s Office attached to the High Court of Cassation and Justice in Romania and its law enforcement partners, for their support.

The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Office’s Economic Crimes Unit.

The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.

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Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark

CAMDEN, N.J. – An admitted leader of the “Fruit Town Brims” set of the Bloods street gang was sentenced today to 151 months in prison for dealing heroin, U.S. Attorney Paul J. Fishman announced.

Tyrone Tyson Sr., 40, of Camden, pleaded guilty in October 2014 before U.S. District Judge Joseph E. Irenas to an information charging him with distributing and possession with intent to distribute 100 grams or more of heroin. Judge Irenas imposed the sentence today in Camden federal court.

According to documents filed in this case and statements made in court:

Tyson controlled the activities of the “Fruit Town Brims” set of the Bloods in Camden. He was released in August 2013 from a 21-year state prison term for first-degree aggravated manslaughter and second-degree aggravated assault for shooting two people seated inside of a car and killing one of them. He began selling heroin in the area of North 32nd Street in Camden and sold heroin to an undercover agent twice in September 2013, just one month after being released from prison. Tyson’s criminal history also includes convictions for possession of controlled dangerous substances, second-degree aggravated assault, third-degree aggravated assault, conspiracy to distribute controlled dangerous substances, and possessing an electronic communication device in a correctional facility.

In late July 2013, members of the Camden High Intensity Drug Trafficking Area (HIDTA) Task Force conducted an investigation into Tyson’s drug trafficking activities, using surveillance, undercover officers, confidential informants, audio recordings and controlled drug purchases. The investigation revealed Tyson was selling heroin in the area of North 32nd Street in Camden and, in fact, sold heroin to an undercover law enforcement agent on two occasions.

In addition to the prison term, Judge Irenas sentenced Tyson to five years of supervised release.
U.S. Attorney Fishman credited special agents of the N.J. Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Kevin Kelly; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Dalton; and the Burlington County Prosecutor’s Office, under the direction of Prosecutor Robert D. Bernardi, with the investigation leading to today’s sentencing.

He also thanked officers of the Camden County Sheriff’s Department, the Delaware River Port Authority Police, the Gloucester City Police Department, the Westampton New Jersey Police Department, the Monroe Township Police Department and the Washington Township Police Department for taking part in the investigation.

The government is represented by Special Assistant U.S. Attorney Erin M. Fay of the Camden office.

This case was developed through the work of the Camden Collaborative Crime Commission (C-4). Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop investigative strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. Such intense coordination greatly enhances the law enforcement community’s ability to correctly identify and successfully prosecute the most dangerous criminals in one of our nation’s most dangerous cities.

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Defense Counsel: Scott Cohen Esq., Cherry Hill, N.J.

NEWARK, N.J. – An Essex County, New Jersey, man was charged today with sexually abusing two children and recording the abuse on his cell phone, U.S. Attorney Paul J. Fishman announced.

Justin Kinney, 26, of Newark, was indicted by a federal grand jury in Newark on two counts of producing child pornography. Kinney was previously arrested and charged by federal complaint on April 20, 2014, and is currently in state custody on related charges. He will be arraigned at a later date.

According to the indictment, other documents filed in this case and statements made in court:

On Oct. 25, 2012, law enforcement officers executed a search warrant on Kinney’s laptop computer and cell phone, which revealed several files depicting child sexual abuse, which appeared to be self-produced and were taken with the same type of cell phone seized from Kinney at the time of his arrest.

Each count of production of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine.

U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorneys Danielle M. Corcione and Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.

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Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – A St. Albans, N.Y., man was sentenced today to 210 months in prison for his involvement in a scheme to distribute heroin in and through New Jersey, U.S. Attorney Paul J. Fishman announced.

Ronald Burnell Bassett, 62, previously pleaded guilty before U.S. District Judge William H. Walls to Count One of an Indictment charging him with knowingly and intentionally conspiring to distribute one kilogram or more of heroin. Judge Walls imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

Pursuant to federal wiretap orders, the first of which was initiated in December 2009, DEA special agents were able to intercept Bassett’s telephone conversations. The monitored calls and other law enforcement information revealed that Bassett was distributing large amounts of heroin. During the calls, agents overheard Bassett agreeing to deliver heroin to others, among them, James Edward Pender, 42, of Newark, who appeared before Judge Walls on June 5, 2012, and pleaded guilty in connection with his role in the heroin distribution scheme. Agents observed Bassett meeting with Pender on numerous occasions and learned that at least some of the heroin originating with Bassett was delivered to individuals in the Monroeville, Pa., area.

To date, 20 people have been charged for their roles in this heroin distribution conspiracy. Approximately seven kilograms of heroin and $450,000 have been seized.

In addition to the prison term, Judge Walls sentenced Bassett to five years of supervised release and ordered him to pay a $17,500 fine.

U.S. Attorney Fishman credited special agents of the DEA’s New Jersey Division, under the direction of Acting Special Agent in Charge Robert G. Koval, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorney Sharon Ashe, of the U.S. Attorney’s Office Narcotics/Organized Crime Drug Enforcement Task Force Unit in Newark.

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Defense counsel: Ronald Rubinstein Esq., New York

CAMDEN, N.J. – A computer programmer was sentenced today to 24 months in prison for launching a virus that infected approximately 100,000 computers around the world and directed them to attack media outlets that republished stories that mentioned him, U.S. Attorney Paul J. Fishman announced.

In September 2010, a jury returned a guilty verdict against Bruce Raisley, 48, of Kansas City, Mo. – formerly of Monaca, Pa. – following a six-day trial before U.S. District Judge Robert B. Kugler. Raisley was convicted of the count charged in the Indictment on which he was tried: launching a malicious computer program designed to attack computers and Internet websites, causing damages. Judge Kugler also imposed the sentence today in Camden federal court.

According to documents filed in this case and the evidence at trial:

Raisley formerly volunteered for Perverted Justice, an organization that worked with the Dateline NBC television show “To Catch a Predator” to identify and apprehend pedophiles. After a falling out with the group and its founder, Xavier Von Erck, Raisley became an outspoken critic of Perverted Justice and Von Erck.

Von Erck retaliated by posing online as an adult woman named “Holly” and initiating an Internet relationship with Raisley. Eventually, Raisley agreed to leave his wife for “Holly” and was photographed by a Perverted Justice volunteer waiting for “Holly” at the airport.

In September 2006, Radar Magazine published an article entitled “Strange Bedfellows,” and in July 2007, Rolling Stone Magazine published an article entitled, “To Catch a Predator: The New American Witch Hunt for Dangerous Pedophiles.” Both articles discussed the television show “To Catch a Predator” and, more specifically, the techniques employed by Perverted Justice and the show to ensnare pedophiles. Both articles discussed the episode between Raisley and Von Erck posing as “Holly.”

The two articles proved popular, and were later posted on a number of websites beyond Radar and Rolling Stone, including a website operated by the Rick Ross Institute of New Jersey. As a result, Raisley devised a plan to remove the articles from the websites.

Specifically, Raisley developed a virus that would spread over the Internet and infect computers. When he deployed the virus, it infected approximately 100,000 computers across the world, creating what is known as a “botnet.” Expert witnesses explained that a botnet is a collection of victim computers that are remotely controlled to accomplish tasks such as sending out e-mail spam or, as in this case, attacking websites.

Raisley used the botnet to launch distributed denial of service attacks. Such attacks caused the 100,000 computers to repeatedly attempt to access any websites that posted the two articles in an effort to overwhelm the computers that hosted the websites and shut down the websites. The effect of denial of service attacks is akin to an “all circuits are busy” message – making it impossible for Internet users to access the content of the victim websites, including, of course, the two articles.

Evidence admitted at trial demonstrated that Raisley targeted and attacked a number of websites, including those of Rolling Stone, Radar, Nettica, Corrupted Justice, and the Rick Ross Institute of New Jersey. In total, those websites suffered damages in excess of $100,000 in lost revenues and mitigation.

In addition to the prison term, Judge Kugler sentenced Raisley to three years of supervised release and ordered him to pay $90,386.34 in restitution.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward, for the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorneys Erez Liebermann and Lee Vartan of the U.S. Attorney’s Office Economic Crimes Unit, Computer Hacking and Intellectual Property Section in Newark.

11-157 ###

Defense counsel: John Yauch, Esq., Assistant Federal Public Defender, Newark, N.J.

NEWARK, N.J. – Former Assemblyman and Perth Amboy Mayor Joseph Vas and his longtime aide Melvin Ramos were sentenced today to 78 and 37 months in prison, respectively, for corruptly misusing Vas’ position as mayor to steal affordable housing funds and for committing federal election fraud, U.S. Attorney Paul J. Fishman announced.

The defendants were convicted following a three-week trial before U.S. District Judge Susan D. Wigenton, who also imposed the sentences today in Newark federal court. Vas, 56, and Ramos, 55, both of Perth Amboy, were each convicted of two counts of mail fraud for misappropriating $360,000 in affordable housing funds. The jury also convicted Vas of one count of fraud and misapplication of funds in connection with unlawfully misapplying $90,000 in low income housing funds; one count of making false statements to FBI agents; and one count of accepting contributions to a federal candidate in the names of others. The jury also convicted Ramos of one count of making contributions to a federal candidate in the names of others and two counts of making false statements to the Federal Election Commission (“FEC”). The jury acquitted Vas and Ramos of four counts of mail fraud.

According to documents filed in this case and statements made in court:

Vas and Ramos misused Vas’ position and authority as mayor to assist Vas in selling a 12-unit Perth Amboy apartment building on DeKalb Avenue in Perth Amboy. As part of the scheme, Vas bought the building in December 2005 for approximately $660,000 – well under the $955,000 property appraisal Vas had obtained. Five months later, Vas “flipped” the property to a contractor for approximately $950,000. To induce the contractor to buy the property, Vas and Ramos assured him that a significant amount of affordable housing funding would be available to offset the cost of renovating the building. After selling the property, Vas directed city employees to submit a resolution to the Perth Amboy City Council to authorize $360,000 in funds for the rehabilitation of the property. City Council members voted to approve the resolution on June 14, 2006. Though Vas was present at the council meeting, he did not disclose any facts regarding the profit he received from the sale.

Vas also misused his authority to direct city employees to make a $90,000 advance payment, even though state officials had not yet approved this project as state law required. Vas failed to completely recuse himself from this matter. Vas and Ramos also concealed material aspects of the arrangement and used mail and a courier service in furtherance of the scheme.

In an interview by FBI agents in December 2008, after the investigation began, Vas falsely stated that he had never spoken with the contractor about the availability of city funds for the property, and that he never directed city officials to sign off on the $90,000 disbursement.

Ultimately, Vas used approximately $75,000 of his approximately $290,000 in profits from the sale of the apartment building to fund his 2006 congressional primary campaign for the Democratic nomination in New Jersey’s 13th District.

Ramos was convicted for his participation in a scheme to use conduit donors to funnel contributions to that same campaign. Ramos, who was Vas’ campaign treasurer, used four straw donors to contribute between $2,000 and $2,100 each to the campaign. Ramos funded the straw donations by giving cash to each donor, who then gave Ramos a check made out to the campaign fund. He then filed false and fraudulent reports with the FEC regarding the contributions.

The jury also convicted Vas of accepting campaign contributions which he knew to have been obtained in violation of federal election law.

U.S. Attorney Fishman stated: “The lengthy prison sentence the defendants will serve is an appropriate punishment for abusing the power of Vas’ office.”

In addition to prison terms, Judge Wigenton sentenced Vas and Ramos to three years of supervised release and ordered them to pay $90,000 in restitution to Perth Amboy. Vas was also ordered to pay a $73,200 fine.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward, for the investigation leading to today’s sentences.

The government is represented by Assistant U.S. Attorneys Brian R. Howe, Deputy Chief of the U.S. Attorney’s Office Special Prosecutions Division, and Jenny R. Kramer, Acting Deputy Chief of the Office’s General Crimes Unit.

11-152 ###

Defense counsel: Vas: Alan L. Zegas and Edward J. Byrne, Esq., Chatham, N.J.
Ramos: Jerome A. Ballarrotto, Esq., Trenton, N.J.

NEWARK, N.J. – A Bronx, New York, man today admitted soliciting a female minor to produce sexually explicit images and using Craigslist to advertise sexual encounters with the minor, U.S. Attorney Paul J. Fishman announced

Gabriel Toro, 31, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct.

According to documents filed in the case and statements made in court:

Toro admitted that between December 2011 and August 2014, he used the internet to induce a 14-year-old girl to engage in criminal sexual conduct including taking pictures of her genitals for him. Toro also admitted to distributing images of the girl to another individual and posting advertisements on Craigslist for individuals to have sex with the minor in exchange for money.

The charge to which Toro pleaded guilty carries a maximum statutory penalty of life in prison, a mandatory minimum prison sentence of 10 years and a maximum fine of $250,000. Toro will be required to register as a sex offender. Sentencing is scheduled for June 25, 2015.

U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.

15-091                                           

Defense counsel: James Friedman Esq., Newark

TRENTON, N.J. – A member of a large-scale drug trafficking organization was sentenced today to 57 months in prison for conspiring to distribute heroin in Ocean and Monmouth counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.

Jamar Johnson, a/k/a “Rep,” of Lakewood, New Jersey, pleaded guilty Dec. 1, 2014, before U.S. District Judge Peter G. Sheridan to conspiracy to distribute heroin. Judge Sheridan imposed the sentence today in Trenton federal court.

In March 2014, 18 other alleged members of the drug trafficking organization of which Johnson 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 the case and statements made in court: Between September 2013 and March 2014, Johnson conspired with Rufus Young and others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO.  Johnson admitted that he distributed between 100 and 400 grams of heroin in furtherance of the conspiracy.

In addition to the prison term, Judge Sheridan sentenced Johnson to three years of supervised release. 

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 sentencing.

The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.

15-093                                               

Defense Counsel:  Joshua Markowitz Esq., Lawrenceville, N.J.

TRENTON, N.J. - A Hudson County, New Jersey, man, today admitted to colluding with other contractors to secure projects funded by U.S. Department of Housing and Urban Development grants, U.S. Attorney Paul J. Fishman announced.

John Youngclaus, 43, of Bayonne, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with theft of $224,250 in government funds.

According to documents filed in this case and statements made in court:

Youngclaus was the owner of JRY Plumbing and Heating (JRY), a plumbing company in Bayonne. The City of Bayonne Department of Community Development (CBDCD) was a government agency that received funds from the U.S. Department of Housing and Urban Development (HUD) under a federal program that provided grants up to $20,000 to low-income families to rehabilitate their homes and to repair conditions affecting health and safety, accessibility, energy efficiency or code compliance. The CBDCD selected contractors for the HUD-funded rehabilitation grants through a competitive bidding process that required the submission of bids from competing contractors with estimated price quotes. The CBDCD selected the lowest bidder for particular applications.

Between January 2012 and December 2012, Youngclaus solicited, received and submitted bids from competing contractors that were higher than the bids that Youngclaus submitted to the CBDCD on behalf of JRY. On at least one occasion, Youngclaus received blank invoices from a competing contractor and Youngclaus wrote the job details and price quote on the blank invoice and submitted the fraudulent bid along with a lower bid from JRY to the CBDCD for a certain grant-funded job to obtain the grant project. The information also describes at least two instances when Youngclaus submitted fraudulent bids from competing contractors for properties that he owned in Bayonne. Although the jobs were awarded to the competing contractor with the lowest bid, JRY plumbing performed the work on the properties owned by Youngclaus and received the payment for the work.

As a result of Youngclaus colluding with other contractors, JRY wrongfully obtained $224,250 in HUD funds from the CBDCD during 2012.

The theft of government funds charge to which Youngclaus pleaded guilty carries a maximum potential penalty of 10 years in prison and maximum fines of $250,000.  Sentencing is currently scheduled forJune 22, 2015.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, with the continuing investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the Appeals Division.

15-092                                          

Defense counsel: Lawrence S. Lustberg Esq., Newark

TRENTON, N.J. – The former assistant division administrator of the Federal Highway Administration (FHWA), New Jersey Division, today admitted using a straw company to fraudulently obtain grant funds, U.S. Attorney Paul J. Fishman announced.

Lawrence F. Cullari Jr., 43, of Tinton Falls, 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 mail fraud.

According to documents filed in this case and statements made in court:

The defendant was the assistant division administrator at the FHWA’s New Jersey Division from 2010 through July 2013 and was able to influence the allocation of U.S. Department of Transportation funding. He also operated a private consulting and engineering company called Dencore Consulting, which was owned by his ex-wife. His former father-in-law owned and operated “Company 1,” an engineering company located in Middletown, New Jersey, that provided mechanical, plumbing and electrical designs for commercial and residential projects.

Cullari admitted that in 2006, he and his father-in-law agreed to use Company 1 as a straw contractor to get FHWA-funded work for Dencore Consulting from Rutgers University’s Center for Advanced Infrastructure and Transportation (Rutgers CAIT) and the N.J. Institute of Technology (NJIT). From May 2006 through June 2013, Cullari prepared bids and work proposals for Company 1 to sign and submit to Rutgers CAIT and NJIT. When Rutgers CAIT or NJIT awarded the projects to Company 1, Cullari arranged for the completion of engineering reports and invoices that fraudulently stated that Company 1 completed the work. After Rutgers CAIT or NJIT paid Company 1, its owner kept a small portion of the payment and wrote a check to Dencore Consulting for the remaining balance. 

The mail fraud charge to which Cullari pleaded guilty 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 June 22, 2015.

U.S. Attorney Fishman credited special agents of the U.S. Department of Transportation, Office of the Inspector General, under the direction of Regional Special Agent in Charge Douglas Shoemaker, and the N.J. Department of Transportation, Office of the Inspector General, for the investigation leading to today’s guilty plea.    

The government is represented by Assistant U.S. Attorney Scott B. McBride, Deputy Chief of the U.S. Attorney’s Office’s Economic Crimes Unit.

15-090                                                  

Defense counsel: Bradley L. Henry Esq., New York

NEWARK, N.J. – The deputy director of the Hudson County Correctional Facility was found guilty today of illegally wiretapping his co-workers and another individual, U.S. Attorney Paul J. Fishman announced.

Kirk Eady, 46, of East Brunswick, N.J. was found guilty of one count of intentionally intercepting the wire, oral or electronic communications of others following a four-day trial before Judge Jose L. Linares. The jury deliberated three hours before returning the guilty verdict.

According to the documents filed in this case and the evidence at trial:

From March 8, 2012, to July 8, 2012, while working as the deputy director of the Hudson County Correctional Facility, Eady used the services of a website on more than 10 occasions to intercept the telephone calls of other Hudson County Correctional Facility employees and another individual who were critical of his work performance. Eady was able to conceal the telephone number from which the call originated. He then called two of the employees at the same time and made it appear that one or both of the other individuals initiated the call. Eady also recorded these telephone conversations and never told the other employees he was recording these private communications. These individuals did not consent to their private conversations being monitored and recorded by Eady.

The wiretapping count on which Eady was convicted is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 8, 2015.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s guilty verdict.

The government is represented by Assistant U.S. Attorneys David L. Foster and Amy Luria of the U.S. Attorney’s Office Special Prosecution Division.

15-089                                                     

Defense counsel: Peter Willis Esq., Jersey City, N.J.

Eady, Kirk Indictment

Charged With Murder Plot, Cocaine Distribution and Prostitution Business

NEWARK, N.J. – Ten members and associates of the DeCavalcante organized crime family of La Cosa Nostra were arrested today and charged with various plots to commit murder, distribute drugs and run a prostitution business, U.S. Attorney Paul J. Fishman announced.

Charles Stango, 71, of Henderson, Nevada; Frank Nigro, 72, of Toms River, New Jersey; and Paul Colella, 68, of Toms River, were arrested this morning and charged by complaint for their roles in a plot to kill a rival gang member. Charles Stango was also charged along with his son, Anthony Stango, 33 of Brick, New Jersey, with conspiring with members of his New Jersey-based “crew” to distribute cocaine and run a prostitution business. John Capozzi, 34, of Union, New Jersey; Mario Galli, 23, of Toms River, New Jersey; and Nicholas Degidio, 37, of Union, New Jersey, were also charged with cocaine distribution.

“Though its ranks have been thinned by countless convictions and its own internal bloodletting, traditional organized crime remains a real problem,” U.S. Attorney Fishman said. “As today’s complaint shows, members and associates of a long-standing organized crime family continue to ply their illegal trade, selling dangerous drugs and illegal cigarettes, promoting prostitution and threatening to settle internal scores with violence and death.”

“Today Newark FBI arrested 10 members of the DeCavalcante organized crime family, disrupting one of the most notorious crime families,” FBI Special Agent in Charge Richard M. Frankel said. “The FBI is confident this is a severe blow to the La Cosa Nostra family. It is also a message to La Cosa Nostra that FBI Newark will do everything possible within in its legal powers to eradicate La Cosa Nostra from New Jersey.

“The Commission remains committed to working with all its law enforcement partners to eliminate organized crime in and around the port district,” Walter Arsenault, Executive Director of the Waterfront Commission of New York Harbor, said.

According to the complaint unsealed today: Stango, a captain in the DeCavalcante family, allegedly sought and obtained permission from Nigro, the crime family’s consigliore – or counsel – and other upper-echelon members of the crime family, to kill a rival member living in New Jersey. Colella’s role was to speak on behalf of Charles Stango to ensure the killing would be approved by other ranking members. Charles Stango discussed his plans with an undercover agent, which included hiring two members of an outlaw biker gang to shoot the rival gang member.

Charles and Anthony Stango also allegedly planned to operate a high-end escort service targeting white collar businessmen and professionals in the Toms River area. As part of the plan, their crew would establish a legal club as a front for the prostitution business in order to avoid law enforcement scrutiny.

On several occasions between Dec. 12, 2014, and March 9, 2015, Stango and various conspirators were audio or video recorded conducting drug transactions with an undercover law enforcement officer.

Authorities also arrested three members of a separate “crew” of the crime family: James Heeney, 35, of Elizabeth, New Jersey, and Rosario Pali, 35, of Linden, New Jersey, were charged with conspiring to distribute more than 500 grams of cocaine. Heeney and Pali were recorded on various occasions between Aug. 29, 2012, and March 14, 2013, providing undercover officers with quantities of cocaine in exchange for cash and counterfeit goods. Luigi Oliveri, 41, of Elizabeth, was charged with the possession of contraband cigarettes. Between June 6, 2013, and Nov. 6, 2013, Oliveri bought multiple cases of untaxed cigarettes from undercover law enforcement officers.

All of the defendants arrested in New Jersey are scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court. Charles Stango is scheduled to appear later today before U.S. Magistrate Judge Nancy Koppe in Las Vegas, Nevada, federal court.

U.S. Attorney Fishman credited the members of the FBI’s Organized Crime Task Force under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter Arsenault; the Bayonne Police Department, under the direction of Chief Drew Niekrasz; and the N.J. State Commission of Investigation, under the direction of Chairman Joseph F. Scancarella, with the investigation leading to today’s charges. He also thanked the FBI’s Las Vegas office and the Union County Prosecutor’s Office for their roles in the investigation.

The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.

15-088                                      

Stango, Charles et al. Complaint
Heeney, James & Pali, Rosario Complaint
Oliveri, Luigi Complaint

NEWARK, N.J. – Eight people were charged today in connection with their roles in a drug trafficking organization that obtained heroin from Essex County, New Jersey, and supplied it to Central Jersey, U.S. Attorney Paul J. Fishman announced.

 The defendants (see chart below) were each charged by complaint with one count of conspiracy to distribute 100 grams or more of heroin. Five of the eight defendants were arrested this morning as part of a coordinated takedown by federal, state and local law enforcement authorities and are scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.

According to the complaint:

The joint investigation by the Middlesex County Prosecutor’s Office and the Organized Crime and Drug Enforcement Task Force relied upon intercepted communications, physical surveillance, controlled heroin purchases, information from confidential sources and other investigative techniques. Law enforcement officers uncovered the operational structure and inner workings of the drug trafficking organization, which enriched a local street gang, the “Bounty Hunter Bloods.”

From October 2014 through March 2015, the defendants took part in a scheme to distribute heroin in an area known as “Parkside,” which straddles Franklin Township in Somerset County and New Brunswick in Middlesex County. Members of the drug trafficking organization transported the “raw,” or unpackaged, form of heroin from Essex County to Middlesex and Somerset counties and used stash houses and other temporary locations to package, store and distribute heroin. They attempted to avoid detection by using code to disguise the nature of their discussions and used prepaid cellular phones for short periods of time.

The defendants are:

Name

Age

Residence

40

Newark

Daniel Newsom, a/k/a “Spree,”

35

Franklin Township

David Miller

38

Franklin Township

Bruce Williams*

37

Newark

Juan Peralta

40

Newark

Anthony McBride*

57

New Brunswick

Tamir Styles*

37

Franklin Township

Myisha Wilson

36

Newark

(*remains at large)

Webb supplied heroin to Newsom, Miller, and Styles, all of whom lived in and around the Parkside neighborhood. He typically obtained the raw heroin suppliers, including Williams and Peralta.  In some cases, Webb drove from Newark to Parkside to deliver the heroin; in other cases, Newsom, Miller, and others traveled to Newark to pick up the drugs from Webb.

The conspiracy count with which each of the defendants is charged carries a minimum potential penalty of five years in prison, a maximum of 40 years in prison, and a $5 million fine.

U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge George Belsky; detectives of the N.J. State Police, under the direction of Col. Rick Fuentes; officers of the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey; and officers of the Somerset County Prosecutor’s Office, under the direction of Prosecutor Geoffrey D. Sorianno, with the joint investigation leading to today’s charges. He also thanked the North Brunswick, New Brunswick and Franklin Township police departments for their roles in the investigation.

The government is represented by Assistant U.S. Attorneys Andrew Bruck and Jonathan W. Romankow of the office’s Organized Crime/Gangs Unit in Newark.

The charge and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.

14-087                                                     

NEWARK, N.J. – A Chicago man was convicted at trial today for his role in a large-scale, long-running, and lucrative scheme to steal bank customer account information – commonly referred to as “ATM skimming” – by installing hidden card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.

Dinu Horvat, 28, was convicted on four counts of a superseding indictment – 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 – following a one-week trial before U.S. District Judge William J. Martini in Newark federal court. The jury deliberated about two hours before returning the verdict.

According to documents filed in this case and the evidence at trial:

Horvat was a high-level member of an extensive ATM skimming scheme 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 defendant Bogdan Radu, 30, designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Horvat and his partners 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. The stolen data was used to create thousands of false and fraudulent ATM cards, which Horvat and others used to withdraw millions of dollars from customers’ bank accounts. Horvat also recruited others to participate in the scheme, including Enes Causevic, Mirel Hadzalic, and Luis Franco, all of whom have previously pleaded guilty.  

The ATM skimming operation in which Horvat participated is one of the largest ever uncovered by law enforcement. To date, 16 individuals, including Vintila, have been charged in connection with the scheme. Twelve of those 16 have pleaded guilty. In addition to Vintila, Radu, who was charged separately, pleaded guilty to bank fraud conspiracy and aggravated identity theft in February 2014. Enes Causevic, 24, Marius Cotiga, 35, Constantin Ginga, 53, Dezso Gyapias, 29, Ioan Leusca, 30, Constantin Pendus, 30, and Emil Revesz, 30, all charged separately from Horvat, 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. For their roles in the scheme, Judge Martini sentenced Ginga, Gyapias, and Leusca each to 57 months in prison.  Franco and Pendus received sentences of 33 months in prison each. Hadzalic received a sentence of 34 months in prison. Apetrei received a sentence of 24 months in prison. Vintila, Causevic, Cotiga, Radu, and Revesz are pending sentencing.

Charges remain pending on three additional members of the conspiracy who were charged by indictment on April 16, 2014: Alin Dumitru Carabus, 40, Ionut Vasile Ciurba-Stana, a/k/a “Ciorba,” 28, and Robert Eduard Mate, a/k/a “Chioru,” 29, were each charged with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more access devices, and possession of 15 or more access devices. Carabus, Ciurba-Stana, and Mate were all apprehended in Spain, and requests for extradition to the United States are pending.         

The bank fraud conspiracy charge for which Horvat was convicted carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge carries a mandatory, consecutive penalty of two years in prison and a maximum $250,000 fine. The conspiracy to possess 15 or more counterfeit access devices carries a maximum potential penalty of five years in prison and a maximum fine of $250,000. The conspiracy to possess access device-making equipment carries a maximum penalty of seven and one-half years in prison and a maximum $250,000 fine. Sentencing is scheduled for June 23, 2015.

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; special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) in Newark, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation. He also thanked the Barnegat Township Police Department and the Brick Township Police Department for their participation in the case.

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.

15-086                                                  

Defense Counsel: E. Alexander Jardines Esq., West New York, New Jersey

CAMDEN, N.J. - A Hudson County, New Jersey, man today admitted his role in a $13 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos in Wildwood and Wildwood Crest, New Jersey, U.S. Attorney Paul J. Fishman announced.

John Leadbeater, 58, of Kearny, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to a superseding indictment charging him with conspiracy to commit wire fraud. The plea came after the first week in what prosecutors and defense lawyers expected to be a lengthy mortgage fraud trial.   

According to documents filed in this case and statements made in court: Leadbeater and the conspirators located for purchase condominiums overbuilt by financially distressed developers in Wildwood and Wildwood Crest, New Jersey. Leadbeater and his conspirators recruited “straw buyers” from New Jersey, New York, Ohio, Arkansas, and California, to purchase those properties. The straw buyers had good credit scores, but lacked the financial resources to qualify for the mortgage loans. The conspirators created false documents such as loan applications that contained fraudulent financial and employment information, to make the straw buyers appear more credit-worthy than they actually were in order to induce the lenders to make the loans. 

To prepare the straw buyers’ false loan applications, Leadbeater and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers to be submitted to mortgage brokers that the brokers knew were false, attributing to the straw buyers inflated income and assets. Once the loans were approved, Leadbeater and his conspirators created and signed fraudulent closing documents in order to induce the mortgage lenders to send the loan proceeds in connection with real estate closings on the properties. Once the mortgage lenders sent the loan proceeds, Leadbeater and his conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to the other members of the conspiracy for their respective roles.   

Leadbeater admitted to personally participating in fraudulent activity related to nine properties in Wildwood and Wildwood Crest.  He admitted to causing mortgage lenders to fund $4,711,557 worth of mortgages based on false and fraudulent loan applications and closing documents prepared by him and his conspirators. As part of his guilty plea to the wire fraud conspiracy, prosecutors agreed to dismiss a charge of money laundering conspiracy. 

Twelve of the conspirators not charged in the superseding indictment have already pleaded guilty to the mortgage fraud scheme.  On diverse dates in 2013, John Bingaman, 45, of Benton, Arkansas; Angela Celli, 42, of Somerset, Massachusetts; Deborah Hanson, 52, of Sewell, New Jersey; Robert Horton, 40, of Nashport, Ohio; Michelle Martinez, 50, of Brick, New Jersey; Ernesto Rodriguez, 46, of Brick; Dana Rummerfield, 48, of Los Angeles, California; Justin Spradley, 37, of Cincinnati, Ohio; and Paul Watterson, 54, of Maplewood, New Jersey, pleaded guilty before the Judge Simandle. In 2015, Sweet Briar Development Corp. of New Jersey; Joel Tirado, 51, of Woodbridge, New Jersey; and Diana Wisniewski, 45, of Kings Park, New York, pleaded guilty before Judge Simandle.  All await sentencing.

The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine.  Sentencing is scheduled for June 26, 2015.    

U.S. Attorney Fishman credited special agents from the FBI”s Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and special agents of IRS - Criminal Investigation in Mays Landing, under the direction of Special Agent in Charge Jonathan Larsen in Newark, for the investigation leading to today’s guilty plea. 

The government is represented by Assistant U.S. Attorneys Jacqueline M. Carle and Matthew T. Smith of the U.S. Attorney=s Office Criminal Division in Camden.

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Defense counsel: Thomas J. Cammarata Esq. and Jeffrey Garrigan Esq., Jersey City

Leadbeater, John Superseding Indictment

NEWARK, N.J. - A former officer with U.S. Customs and Border Protection (CBP) today admitted coordinating shipments of crystal methamphetamine from interstate suppliers and providing them to retailers in North Jersey, U.S. Attorney Paul J. Fishman announced.
 
John Freehauf, a/k/a “Johnnie Rocket,” 37, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of knowingly and intentionally conspiring with others to distribute 50 grams or more of methamphetamine.
  
According to documents filed in this case and statements made in court:

Individuals operating in Arizona, California, Nevada and elsewhere sent parcels containing large quantities of methamphetamine through the U.S. mail to addresses provided by New Jersey-based conspirators, who would then repackage the methamphetamine and distribute it to lower level dealers in and around New Jersey. Conspirators working for the U.S. Postal Service would sometimes supervise receipt of the methamphetamine-laden parcels to ensure successful delivery.

Freehauf admitted that between July 2013 and June 2014, he conspired with others to distribute an average of three to five pounds of crystal methamphetamine per month in North Jersey. Freehauf admitted that he arranged the shipments from California, Arizona and elsewhere and repackaged the drugs for distribution to lower level dealers.

Freehauf and the other defendants were charged by complaint on June 18, 2014, with conspiracy to distribute methamphetamine:

Age

Residence

37

Jersey City

Benjamin Navarro

44

Jersey City

Maria Lisa Pascual

37

North Bergen, N.J.

Arnold Balagtas

55

Jersey City

Margaret Tiangco

39

Jersey City

Javier Diaz

31

Los Angeles, Calif.

Candace Healy

21

Fresh Meadows, N.Y.

Ricce Anciado Jr.

44

Union, N.J.

Stephanie Luna

36

Bergenfield, N.J.

Benedict Cipriano

52

Jersey City

Ricky Tulud

44

Belleville, N.J.

Janice Vidallon

32

Belleville

Ryan Bontempi

35

Phoenix, Ariz.

Howard Taylor

49

Phoenix

Carlos Asturias

43

Clifton, N.J.

The conspiracy charge to which Freehauf pleaded guilty carries a mandatory minimum penalty of 10 years in prison and a maximum of life in prison and a $10 million fine. Sentencing is scheduled for July 1, 2015.

Diaz, Anciado, Cipriano, Tulud, Bontempi, and Asturias have also pleaded guilty to their roles in the conspiracy. Charges against Navarro, Pascual, Tiangco, Healy, Luna, Vidallon, and Taylor are still pending. The charges and allegations against them are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski; U.S. Postal Inspectors under the direction of Inspector in Charge Maria L. Kelokates; law enforcement officers from the N.J. National Guard Counter Drug Task Force, under the direction of the Adjutant General, Brig. Gen. Michael L. Cunniff; the N.J. State Police, under the direction of Superintendent Rick Fuentes; the Edison Police Department, under the direction of Chief Thomas Bryan; and the Jersey City Police Department, under the direction of Chief Robert Cowan, with the investigation.

The government is represented by Assistant U.S. Attorney Adam N. Subervi of the U.S. Attorney’s Organized Crime Drug Enforcement Task Force (OCDETF) unit in Newark.

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.

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Defense counsel: Joseph R. Rubino Esq., West Orange, New Jersey