District of New Jersey
Press releases recorded for this federal judicial district.
Bergen County, New Jersey, Doctor Admits Making Millions in Cash Deposits to Avoid Paying Taxes on Medical Practice IncomeRead the Press Release
NEWARK – A doctor who owns three immediate care facilities in Hudson County, New Jersey, today admitted making millions of dollars’ worth of cash deposits and fraudulently transferring his residence to a family member to evade taxes, U.S. Attorney Paul J. Fishman and Tax Division Principal Deputy Assistant Attorney General Caroline D. Ciraolo announced.
Medhat El Amir of Saddle River, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to Count One of an indictment, charging him with corruptly endeavoring to impede the due administration of the Internal Revenue Code, and Count Two, tax evasion, in connection with an individual income tax return for calendar year 2007.
According to documents filed in this case and statements made in court:
El Amir was a primary care doctor and 60 percent owner of Immediate Care P.C., which provided urgent care health services for patients at an office in North Bergen, New Jersey, and two offices in Jersey City, New Jersey.
From Feb. 11, 2005, through Dec. 31, 2010, El Amir attempted to impede the internal revenue laws in a number of ways. He admitted he fraudulently transferred his residence in Saddle River to his sister for $2.5 million to keep the property out of the reach of the IRS and the payroll taxes he owed through his former practice. El Amir also admitted cashing $7,261,083 in Immediate Care insurance company checks at a check cashing facility, depositing the majority of that income into a number of bank accounts to which he had access and using a portion of the money for personal expenses.
El Amir admitted he failed to report taxable income of $2,087,048 for the years 2007-2010, resulting in a $502,160 tax loss to the United States.
Despite earning a significant income through Immediate Care, El Amir did not file personal income tax returns, Forms 1040, for calendar years 2007, 2009 and 2010. While El Amir did file a personal income tax return for calendar year 2008, it substantially under-reported the income El Amir received from Immediate Care and claimed interest deductions to which he was not entitled. El Amir also caused to be sent to the IRS correspondence that under-reported the amount of income he and his wife received from Immediate Care in calendar year 2008.
The count of corruptly endeavoring to impede the due administration of the Internal Revenue Code carries a maximum potential penalty of three years in prison and a $250,000 fine. The count of tax evasion carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 10, 2015.
U.S. Attorney Fishman and Principal Deputy Assistant Attorney General Ciraolo credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, and the 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 plea.
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.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Trial Attorney Shawn T. Noud of the Justice Department’s Tax Division.
15-053
Defense counsel: Samuel R. DeLuca Esq., Jersey City, N.J.
El Amir, Medhat Indictment
Government Intends to Seek Dealth Penalty for Leader of Violent Newark Street GangRead the Press Release
South Side Cartel Leader Charged with Six Murders in Racketeering Indictment
NEWARK, N.J. – U.S. Attorney General Eric Holder has authorized and directed that the death penalty be sought against the leader of a violent Newark street gang charged with six murders, U.S. Attorney Paul J. Fishman announced today.Formal notice of intent to seek the death penalty was presented in court today to Farad Roland, 30, leader of the South Side Cartel gang in Newark. Roland and two-codefendants were previously arraigned on a 24-count superseding indictment charging them with violations of the Racketeer Influenced Corrupt Organizations Act (RICO), murder, kidnapping, robbery, carjacking, drug conspiracy and other violent acts in aid of racketeering and related charges.
Five of the six murders charged in the superseding indictment are death-eligible offenses. Attorney General Holder authorized the U.S. Attorney to seek the death penalty on Jan.12, 2015. The criminal case against Roland and his codefendants is pending before U.S. District Judge Esther Salas, who has scheduled the trial for Jan. 11, 2016. The formal notice was given to Roland today before Judge Salas in Newark federal court.
If convicted of any of the death penalty eligible murders, a separate penalty phase would follow. If the jury found that the death penalty should not be imposed, Farad Roland would be sentenced to life without the possibility of parole. The case would be the second capital case tried in the history of the District of New Jersey, and the first since 2007.Attorney General Holder also authorized and directed the U.S. Attorney not to seek the death penalty against Roland’s codefendants, Mark Williams, 32, and Malik Lowery, 33, who are each charged with one death penalty eligible murder. The defendants were indicted by a federal grand jury and arraigned on Dec. 20, 2012. They are detained without bail.
According to documents filed in this case:
The South Side Cartel, a sub-set of the Bloods street gang, operated primarily on Hawthorne Avenue in Newark since 2002. Originally a neighborhood-based gang whose main activities were selling drugs and committing violent acts to aid the drug trafficking business, many of the gang's members were officially brought into the Bloods gang in 2002 and 2003. As early as 2005, the gang was officially named “The South Side Cartel.” The gang’s center of activities were apartments located inside buildings dubbed “the Twin Towers,” located at 496-500 Hawthorne Avenue, the location of repeated narcotics and gun arrests by local law enforcement between 2002 and 2010. Many of the South Side Cartel members had tattoos showing these buildings and the logo of “SSC” representing the gang’s initials.
At its peak, the South Side Cartel had about 20 members or associates, many of whom have since been killed in gang-related murders or who are serving prison sentences in state and federal prisons for gang-related crimes. These defendants represent the last of the leadership of the gang. Co-founded by Amin and Farad Roland, between 2003 and 2010 the South Side Cartel was generally known among law enforcement and the FBI as the most violent street gang operating in Newark, committing numerous murders, shootings, robberies and other violent acts in furtherance of the enterprise.
The superseding indictment charges the defendants with their participation in a host of racketeering acts to further the South Side Cartel's goals, including: 1) the Dec. 4, 2003, murder of a rival gang member in a drive-by shooting; 2) the Feb. 23, 2005, murder of a fellow South Side Cartel member who was about to be arrested, in order to keep him from cooperating with law enforcement and implicating Farad Roland in a robbery/murder which took place a few days earlier; 3) the Oct. 20, 2007, murder of a fellow South Side Cartel member who had fallen into disfavor with the gang; and 4) the retaliation murders of two people on March 27, 2008, outside the Oasis Bar located on Lyons Avenue in Newark All the victims were shot to death.
The superseding indictment also charges the defendants with carjacking, assault with dangerous weapons in furtherance of racketeering for shootings of rival gang members and a conspiracy to distribute heroin and crack cocaine, among other charges.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Eric Welling; the Newark Police Department, under the direction of Police Director Eugene Venable and Police Chief Anthony Campos; and Acting Essex County Prosecutor Carolyn Murray, with the investigation leading to the charges in this case.The government is represented by Assistant U.S. Attorneys Robert Frazer and Andrew Bruck of the Organized Crime/Gangs Unit in Newark.
15-051
Defense counsel:
Farad Roland: Donna Newman, Esq. and Richard Jasper Esq.
Mark Williams: James Patton Esq., and Carl Herman Esq.
Malik Lowery: John Azzarello Esq. and Anthony Ricco, Esq.Owners of Tax Preparation Business Convicted on All CountsRead the Press Release
TRENTON, N.J. – The owners of a tax preparation business that filed fraudulent tax returns on behalf of inmates at various New Jersey prisons were convicted at trial today of conspiracy, mail fraud and making false claims to the United States for payment of fraudulent tax refunds, U.S. Attorney Paul J. Fishman and Principal Deputy Assistant Attorney General Caroline D. Ciraolo announced.
Kamal J. James, aka “Bro Messiah Aziz El,” of Seaford, Delaware, and Crystal G. Hawkins, aka “Sis. Crystal Gabri El,” of Laurel, Delaware, had each been charged in a superseding indictment with one count of conspiracy, 16 counts of false claims and three counts of mail fraud. They were convicted on all counts following a one-week trial before U.S. District Judge Peter G. Sheridan in Trenton federal court. The jury deliberated one hour before returning the guilty verdicts.
According to the superseding indictment and the evidence at trial:
Between October 2011 and October 2013, defendants James and Hawkins operated Release Refunds, a purported tax preparation business – previously based in Brick, New Jersey, and in Seaford, Delaware – through which they solicited current and former New Jersey prison inmates as clients and then filed fraudulent tax returns on their behalf. The company is no longer in business.
James and Hawkins sent Release Refunds “promotional” flyers to inmates at various New Jersey prisons and halfway houses offering tax return preparation services. The pair asked inmates interested in Release Refunds’ services to provide basic identification information and to sign income tax returns and other IRS documents, but not to include any information about their income or withholdings. James and Hawkins then filled in the missing income information on the return forms, fabricating the inmates’ earnings to trigger fraudulent and inflated refunds.
During the course of the investigation, an undercover IRS-Criminal Investigation agent posing as an inmate in a New Jersey prison submitted a completed Release Refunds form and sent it to James and Hawkins. They then sent the “inmate” blank income tax forms and other IRS documents and instructions to sign the documents. James and Hawkins did not request any financial information from the undercover agent before preparing three fraudulent tax returns – including false income information that James and Hawkins provided – to be filed on behalf of the agent for tax years 2010 through 2012. The fraudulent returns resulted in several thousand dollars in refunds and a $1,485 fee for the defendants.
The conspiracy count carries a maximum potential penalty of 10 years in prison. The fraudulent claims counts each carry a maximum potential penalty of five years in prison and the mail fraud counts each carry a maximum potential penalty of 20 years in prison. The defendants also face a fine of $250,000 or twice the amount of the gain or loss from the offense for each count of conviction. Sentencing is scheduled for May 11, 2015.
U.S. Attorney Fishman and Principal Deputy Assistant Attorney General Ciraolo credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s charges. They also thanked the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; and the N.J. Department of Corrections, under the direction of Commissioner Gary M. Lanigan, for their roles in the case.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton and Trial Attorney Thomas Jaworski of the Justice Department’s Tax Division.
15-050Defense counsel:
James: Pro se; (Bruce Throckmorton Esq., Trenton, standby counsel)Hawkins: Pro se; (Andrea Bergman Esq. Assistant Federal Public Defender, Trenton, standby counsel)
Northampton County, Pennsylvania, Man Charged with Downloading Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Northampton County, Pennsylvania, man was arrested at his home this morning for allegedly downloading multiple images and videos of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Derrick Baer, 32, of Bath, Pennsylvania, and formerly of Pohatcong, New Jersey, is charged by complaint with one count of receiving child pornography and one count of possessing child pornography. He is scheduled to make his initial court appearance later today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case and statements made in court:
In May 2010, in connection with an investigation into a suspicious death at Baer’s residence, law enforcement obtained Baer’s consent to seize computer equipment in his residence. A subsequent forensic review of that equipment made pursuant to a search warrant revealed 368 images and 29 video files of child pornography. Law enforcement later determined that Baer used a file sharing program to download multiple files in January and February 2009.
The receipt of child pornography count with which Baer is charged is punishable by a maximum potential penalty of 20 years in prison, a minimum penalty of five years in prison, and a fine of $250,000. The possession count is punishable by a maximum potential sentence of 10 years in prison.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Acting Special Agent in Charge Eric Welling in Newark; the Pohatcong Township Police Department, under the direction of Chief Jeffrey S. Greenemeir; and the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
15-049
Two Bergen County, New Jersey, Men and a New York Man Admit Roles in Cross-Country Drug Distribution SchemeRead the Press Release
NEWARK, N.J. – Two Bergen County, New Jersey, men and a New York man today admitted their roles in a scheme to transport more than 20 kilograms of cocaine from California to New Jersey, U.S. Attorney Paul J. Fishman announced.
Melvin Feliz, 48, of Englewood Cliffs, New Jersey; Irving Olivero-Pena, 42, of Edgewater, New Jersey; and Robert Crawford, 39, of Long Island City, New York; each pleaded guilty before U.S. District Judge Kevin McNulty to Count One of an indictment charging them with conspiracy to possess with the intent to distribute five kilograms or more of cocaine. Feliz, Olivero-Pena, and Crawford were arrested on March 11, 2014.
According to the documents filed in this case and statements made in court:
Feliz, Olivero-Pena and Crawford admitted that from January 2011 through March 2014, they conspired to purchase narcotics for distribution in New Jersey. On Oct. 22, 2012, they met a courier in Bergen County. They admitted that they gave the courier $549,950 in currency to transport to California via tractor trailer, where it would be used to purchase approximately 20 kilograms of cocaine. Afterwards, the courier would transport the cocaine to New Jersey for distribution. The currency was ultimately seized by law enforcement officers in California.
The conspiracy charge to which Feliz, Olivero-Pena and Crawford pleaded guilty carries a maximum potential penalty of life in prison and a $10 million fine. Sentencing for all three defendants is scheduled for May 6, 2015.
U.S. Attorney Fishman credited special agents from the Drug Enforcement Administration (DEA), Newark Division, under direction of Special Agent in Charge Carl J. Kotowski; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, New Jersey, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Brian L. Urbano of the U.S. Attorney’s Office Criminal Division and Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office, Special Prosecution’s Division in Newark.
15-045
Defense counsel:Melvin Feliz: Patrick Joyce Esq., New York
Irving Olivero-Pena: David Touger Esq., New York
Robert Crawford: Rubin Sinins Esq., Springfield, New JerseyPhiladelphia Man Pleads Guilty in Two-State Bank Robbery SpreeRead the Press Release
CAMDEN, N.J. - A Philadelphia, Pennsylvania, man admitted robbing five banks in New Jersey and Pennsylvania over four months, U.S. Attorney Paul J. Fishman announced today.
Nathaniel Stroud, 34, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to an information charging him with two counts of bank robbery in connection with robbing a Roma Bank in Delran, New Jersey, on Nov. 8, 2013, and robbing a 1st Constitution Bank in Hightstown, New Jersey, on Jan. 9, 2014. Stroud also admitted robbing a PNC Bank and a TD Bank in Philadelphia and a TD Bank in Willingboro, New Jersey.
According to documents filed in the case and statements made in court:
Between September 2013 and January 2014, Stroud robbed the five banks by presenting a demand note to the bank tellers, in which he stated that he had a gun.
The two counts of bank robbery charged in the information are each punishable by a maximum of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for May 14, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Eric Welling, in Newark; the Burlington County Prosecutor’s Office, under the direction of Prosecutor Robert D. Bernardi: and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Joseph L. Bocchini, with the investigation. He also thanked the Delran, Willingboro and Hightstown police departments for their assistance.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney's Office Special Prosecutions Division in Camden.
15-044
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Members of Atlantic City 'Dirty Block' Gang Sentenced for Participating in Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - An Atlantic City, New Jersey, man was sentenced today to 84 months in prison for engaging in a conspiracy to distribute heroin with Mykal Derry, a leader of the “Dirty Block” criminal street gang that allegedly used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City.
Raymond Mack, a/k/a “Bread,” 21, of Atlantic City, N.J., previously pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute, and to distribute and to possess with intent to distribute within 1,000 feet of public housing, 100 grams or more of heroin. Judge Irenas imposed the sentence today in Camden federal court.
According to documents filed in this and other cases and statements made in court:
Mack was arrested on March 26, 2013. He acted as a heroin dealer on behalf of Mykal Derry, 34, of Atlantic City, helping Dirty Block distribute heroin in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court in Atlantic City.
In addition to the prison term, Judge Irenas sentenced Mack to serve eight years of supervised release.
Mack’s sentencing follows the sentencings last week of two conspirators: Kasan Hayes, 28, was sentenced to 108 months in prison and eight years of supervised release; and Dwayne Townsend, 21, was sentenced to 60 months in prison and eight years of supervised release. Both Hayes and Townsend previously pleaded guilty before Judge Irenas to charges of conspiring to distribute, and to possess with intent to distribute, heroin, within 1,000 feet of a public housing complex.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Eric Welling; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.
15-047
Defense counsel: Paul Hetznecker Esq., Philadelphia, P.A.Doctor Admits Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
Thirty-five Defendants – Including 24 Doctors – Have Pleaded Guilty to Roles in Massive Scheme
NEWARK, N.J. – A Middlesex County doctor with practices in Jersey City, New Jersey, 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.
Anthony DelPiano, 53, of Monmouth Junction, New Jersey, 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 DelPiano, 35 people – 24 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 to date recovered more than $10.5 million through forfeiture.According to documents filed in this and related cases and statements made in court:
DelPiano admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid approximately $2,300 per month. DelPiano’s referrals generated at least $1,752,603.24 in lab business for BLS.
On April 9, 2013, federal agents arrested David Nicoll, 40, of Mountain Lakes, New Jersey, Scott Nicoll, 33, of Wayne, New Jersey, a senior BLS employee and David Nicoll’s brother, and Craig Nordman, 35, of Whippany, New Jersey, a BLS employee and the CEO of Advantech Sales LLC – one of several entities used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Frank Santangelo, 44, of Boonton, New Jersey. In June 2013, David and Scott Nicoll, Nordman and four other associates of BLS pleaded guilty to charges related to their involvement. Santangelo, a doctor, pleaded guilty in August 2013 to charges relating to his role in the scheme
The bribery count to which DelPiano pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for May 12, 2015. As part of his guilty plea, DelPiano must forfeit $204,475, representing the total bribe monies received from BLS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Eric Welling; 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 Acting 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 guilty plea.
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.
15-046Defense counsel: Wick Sollers Esq., Washington, D.C.
Bergen County, New Jersey, Man Admits Conspiring to Sell Firearms Purported to Belong to the Family of Saddam HusseinRead the Press Release
NEWARK, N.J. - A New Milford, New Jersey, man today admitted his role in conspiring to sell seven firearms believed to have belonged to the family of Saddam Hussein, U.S. Attorney Paul J. Fishman announced.
Carlos Manuel Quirola, a/k/a “Carlos Quirola-Ordonez,” a/k/a “Manny, 58, 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 statement 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. The weapons were believed to be kept in Florida, and Quirola and others attempted to find a buyer for them in New Jersey. 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 “QS” 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 “Made 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 “Made 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 “Q.S.”
The count to which the defendant pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for June 1, 2015.
Two other individuals, Karlo Sauer and Howard Blumenthal, have pleaded guilty to their roles in this conspiracy. Blumenthal has been sentenced, and Sauer is awaiting sentencing.
Another individual, David Ryan is charged by indictment, and a trial date is scheduled for May 11, 2015. The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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; and Immigration and Customs Enforcement-Homeland Securities Investigation, under the direction of Acting Special Agent in Charge John P. Woods, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the National Security Unit in Newark.
15-048
Defense Counsel: Miles Feinstein Esq., Clifton, N.J.
Quirola, Carlos Indictment
South Jersey Couple Admit Conspiring to Set Fire to Historic DinerRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, married couple today admitted planning to destroy a historic diner they owned in Bridgeton, New Jersey, U.S. Attorney Paul J. Fishman announced.
Andrew Webster, 49, and Brenda Webster, 44, both of Cedarville, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to separate informations charging them each with one count of conspiracy to commit arson.
According to documents filed in this case and statements made in court:
In March 2012, Andrew and Brenda Webster purchased and operated Angie’s Bridgeton Grill, a nearly 75-year old diner that was listed on the New Jersey and National Register of Historic Places in 2012.
Soon after they began to operate the diner, the Websters experienced several months of poor financial performance. During their plea hearings, Andrew and Brenda Webster admitted that they agreed to destroy the diner by fire. They also admitted that on Oct. 23, 2012, they traveled to the diner in Andrew’s truck.
According to the charges, in the early morning hours of Oct. 24, 2012, the Websters entered the diner, collected combustible materials (including newspapers, paper menus, and other light-weight combustible materials), doused them with gasoline, and ignited them with an open flame. Brenda Webster suffered burns to her body when gasoline vapors inside the diner ignited. The two quickly exited and within a short period of time, the fire destroyed the diner.
Sentencing for both Andrew Webster and Brenda Webster is set for May 14, 2015. Both were released on bail subject to a $50,000 unsecured bond and travel restrictions.
U.S. Attorney Fishman credited the Bureau of Alcohol Tobacco Firearms and Explosives, under the direction of Special Agent in Charge George Belsky; the Cumberland County Prosecutors Office, under the direction of Prosecutor Jennifer Webb-McRae; and the Bridgeton Police Department, under the direction of Chief Mark Ott, for the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
15-043Defense counsel:
Andrew Webster: Richard Coughlin Esq., Assistant Federal Public Defender, Camden
Brenda Webster: Joseph Hoffman III Esq., Turnersville, New Jersey.Middlesex County, New Jersey, Man Sentenced to 71 Months in Prison for Saddle Brook Bank RobberyRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 71 months in prison for robbing a TD Bank in Saddle Brook, New Jersey, U.S. Attorney Paul J. Fishman announced.
Jorge Rodriguez, 47, of South River, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of bank robbery. Judge Martini imposed the sentenced today in Newark federal court.
According to documents filed in this case and statements made in court:
Rodriguez admitted using a BB air pistol to rob a TD Bank in Saddle Brook on April 19, 2013. Rodriguez entered the bank wearing a disguise, which included a hat with a dreadlocks wig attached to it. During the robbery, Rodriguez brandished the BB air pistol, handed a bag to a bank teller and said, “Give me the money or I’ll shoot. You have two seconds.” The teller complied and Rodriguez then fled the bank with the bag of money, which also included a dye pack. Rodriguez was apprehended shortly after the robbery after the dye pack exploded.
In addition to the prison term, Judge Martini sentenced Rodriguez to three years of supervised release and fined $75.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Eric Welling in Newark, along with the Saddle Brook Police Department and the Bergen County Prosecutor’s Office, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Josh Hafetz and David M. Eskew of the Criminal Division of U.S. Attorney’s Office in Newark.
15-041
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Distributor and Enforcer for Atlantic City "Dirty Block" Gang Admits Role in Heroin Trafficking ConspiracyRead the Press Release
Also Pleads Guilty to Firearms Offense
CAMDEN, N.J. - An Atlantic City, New Jersey, man today admitted engaging in a conspiracy to distribute heroin with Mykal Derry, a leader of the “Dirty Block” criminal street gang that allegedly used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City.
Kamal Allen, a/k/a “Geez,” a/k/a “Maly Geez,” 27, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute, and to distribute and to possess with intent to distribute within 1,000 feet of public housing, 1 kilogram or more of heroin, and one count of possessing a firearm and ammunition while being a previously convicted felon.
According to documents filed in this and other cases and statements made in court:
Allen acted as a distributor and enforcer on behalf of Derry, helping Dirty Block to distribute heroin in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court, in Atlantic City. Allen was arrested on March 26, 2013. Allen said in court that he and others travelled with Derry to a shooting range in Lakewood, New Jersey, on Jan. 20, 2013, where Allen – a previously convicted felon – used, possessed, and discharged a firearm. Allen and other members of the group also participated in a violent altercation with rival drug traffickers at an Atlantic City casino in December 2012.
The charge of drug conspiracy in a protected zone, to which Allen pleaded guilty, carries a minimum penalty of 10 years in prison, a maximum penalty of life in prison, and a maximum potential fine of up to $20 million. Sentencing is scheduled for May 12, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Eric Welling; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Justin C. Danilewitz, and Special Assistant U.S. Attorney Edmond Malqui-Burgos of the Atlantic County Prosecutor’s Office.
Defense counsel: Jerome A. Ballarotto Esq., Trenton, N.J.
15-042Pharmacist Sentenced to 78 Months in Prison for Attempting to Weaponize Deadly Toxins and Possessing Narcotics Manufacturing EquipmentRead the Press Release
TRENTON, N.J. – A licensed pharmacist was sentenced today to 78 months in prison for attempting to weaponize the lethal toxins ricin and abrin and for possessing a prohibited flask intending to use it to manufacture illegal narcotics, New Jersey U.S. Attorney Paul J. Fishman announced.
Jordan S. Gonzalez, 34, of New York, formerly of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with the offenses.
“The sentence imposed today on Jordan Gonzalez is an appropriate response to his efforts to manufacture and deploy toxins as deadly weapons,” U.S. Attorney Fishman said. “He was preparing for a violent confrontation that fortunately never occurred because the excellent response by our law enforcement partners stopped him before anyone was hurt.”“Jordan Gonzalez had in his possession the ingredients and equipment necessary to manufacture dangerous biological toxins and explosives, as well as, a cache of weapons and ammunition,” FBI Acting Special Agent in Charge Eric Welling said. “Due to the tireless efforts of the FBI Joint Terrorism Task Force and the Drug Enforcement Administration, the imminent threat posed by Gonzalez did not become a reality. Prevention is the FBI’s priority, so I would like to remind the citizens of New Jersey to remain vigilant and contact the FBI or their nearest law enforcement department if they see or hear anything suspicious.”
“Mr. Gonzalez’ sentencing sends a clear message that attempting to produce weapons of mass destruction cannot be tolerated,” Carl J. Kotowski, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “The dedicated men and women of DEA will continue to work tirelessly to keep criminals such as Mr. Gonzalez from being a threat to society.”
According documents filed in this case and statements made in court:
From Sept. 18, 2011, through March 19, 2013, Gonzalez purchased thousands of seeds containing ricin and abrin, and materials to extract and administer those toxins to others, including filtering equipment, respirators and glass vials. Even small doses of ricin and abrin are lethal to humans if ingested, inhaled or injected – causing death within 36 to 72 hours from the time of exposure. There are no known antidotes.
Gonzalez also obtained conventional weapons, such as crossbows, spraying devices, and other items to deliver the toxins. He admitted he attempted to make these toxins in preparation for future confrontations with others. Gonzalez also obtained firearms, body armor, and precursor materials for the manufacture of military-grade explosives and improvised explosive devices. Gonzalez made the purchases through an online marketplace through which third-party vendors in the United States and abroad sell products to members of the public. Gonzalez learned how to extract toxins from the seeds and about methods to administer them to other persons from manuals he acquired. He also acquired manuals for making improvised explosive devices and synthesizing explosive compounds.
On Nov. 8, 2013, while living in Manhattan, Gonzalez purchased one kilogram of sodium azide, a toxic, gas-forming compound that can explode at high temperatures and is lethal if ingested or absorbed through the skin. Law enforcement officers intercepted the delivery during the investigation.
On Nov. 14, 2013, Gonzalez was arrested in Jersey City and search warrants were executed at three locations he used: apartments in Manhattan and Jersey City and a storage unit in Jersey City. Collectively, material collected through the searches included thousands of seeds containing ricin and abrin; explosive precursor chemicals; manuals related to toxins, explosives and improvised explosive devices; approximately 1,000 rounds of ammunition, handguns, components for assault rifles, and high-capacity magazines; a bulletproof vest; and books and documents related to the collapse of social order and techniques for surviving in a lawless environment.
Gonzalez also acquired manuals for synthesizing controlled substances, including methylenedioxyamphetamine (MDA) and methylenedioxymethamphetamine (MDMA), also known as “ecstasy.” He bought and had delivered to the Jersey City apartment a three-neck round-bottom flask, gel capsules and an encapsulating machine, as well as precursor chemicals used in the manufacture of MDA and MDMA. Possession of that type of flask is prohibited if intended for use in the manufacturing of controlled substances.
In addition to the prison term, Judge Cooper sentenced Gonzalez to five years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Welling in Newark, and the DEA, under the direction of Special Agent in Charge Kotowski in New Jersey, with the investigation leading to today’s sentencing. He also thanked members of FBI Newark’s Joint Terrorism Task Force; FBI’s New York Office and Weapons of Mass Destruction Directorate and Laboratory Division; DEA’s New York Division; and the New Jersey Office of Homeland Security and Preparedness for their work on the case; as well as the police and fire departments of Jersey City and the City of New York, as well as the New Jersey State Police for their assistance.
The government is represented by Assistant United States Attorneys L. Judson Welle and Francisco J. Navarro of the U.S. Attorney’s Office National Security Unit in Newark. Valuable support was provided by attorneys of the Department of Justice’s National Security Division – Counterterrorism Section.
15-040Defense counsel: Steven Ross Esq., New York
Gonzalez, Jordan Sentencing Slides
Pharmacist Sentenced to 78 Months in Prison for Attempting to Weaponize Deadly Toxins and Possessing Narcotics Manufacturing EquipmentRead the Press Release
A licensed pharmacist was sentenced today to 78 months in prison for attempting to weaponize the lethal toxins ricin and abrin and for possessing a prohibited flask intending to use it to manufacture illegal narcotics, U.S. Attorney Paul J. Fishman for the District of New Jersey announced.
Jordan Gonzalez, 34, of New York, formerly of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with the offenses.
“The sentence imposed today on Jordan Gonzalez is an appropriate response to his efforts to manufacture and deploy toxins as deadly weapons,” said U.S. Attorney Fishman. “He was preparing for a violent confrontation that fortunately never occurred because the excellent response by our law enforcement partners stopped him before anyone was hurt.”
“Jordan Gonzalez had in his possession the ingredients and equipment necessary to manufacture dangerous biological toxins and explosives, as well as, a cache of weapons and ammunition,” FBI Acting Special Agent in Charge Eric Welling said. “Due to the tireless efforts of the FBI Joint Terrorism Task Force and the Drug Enforcement Administration, the imminent threat posed by Gonzalez did not become a reality. Prevention is the FBI’s priority, so I would like to remind the citizens of New Jersey to remain vigilant and contact the FBI or their nearest law enforcement department if they see or hear anything suspicious.”
“Mr. Gonzalez’ sentencing sends a clear message that attempting to produce weapons of mass destruction cannot be tolerated,” said Special Agent in Charge Carl J. Kotowski of the Drug Enforcement Administration’s (DEA) New Jersey Division. “The dedicated men and women of DEA will continue to work tirelessly to keep criminals such as Mr. Gonzalez from being a threat to society.”
According documents filed in this case and statements made in court:
From Sept. 18, 2011 through March 19, 2013, Gonzalez purchased thousands of seeds containing ricin and abrin and materials to extract and administer those toxins to others, including filtering equipment, respirators and glass vials. Even small doses of ricin and abrin are lethal to humans if ingested, inhaled or injected – causing death within 36 to 72 hours from the time of exposure. There are no known antidotes.
Gonzalez also obtained conventional weapons, such as crossbows, spraying devices and other items to deliver the toxins. He admitted he attempted to make these toxins in preparation for future confrontations with others. Gonzalez also obtained firearms, body armor and precursor materials for the manufacture of military-grade explosives and improvised explosive devices. Gonzalez made the purchases through an online marketplace through which third-party vendors in the United States and abroad sell products to members of the public. Gonzalez learned how to extract toxins from the seeds and about methods to administer them to other persons from manuals he acquired. He also acquired manuals for making improvised explosive devices and synthesizing explosive compounds.
On Nov. 8, 2013, while living in Manhattan, Gonzalez purchased one kilogram of sodium azide, a toxic, gas-forming compound that can explode at high temperatures and is lethal if ingested or absorbed through the skin. Law enforcement officers intercepted the delivery during the investigation.
On Nov. 14, 2013, Gonzalez was arrested in Jersey City and search warrants were executed at three locations he used: apartments in Manhattan, Jersey City and a storage unit in Jersey City. Collectively, material collected through the searches included thousands of seeds containing ricin and abrin, explosive precursor chemicals, manuals related to toxins, explosives and improvised explosive devices, approximately 1,000 rounds of ammunition, handguns, components for assault rifles, high-capacity magazines, a bulletproof vest, and books and documents related to the collapse of social order and techniques for surviving in a lawless environment.
Gonzalez also acquired manuals for synthesizing controlled substances, including methylenedioxyamphetamine (MDA) and methylenedioxymethamphetamine (MDMA), aka ecstasy. He bought and had delivered to the Jersey City apartment a three-neck round-bottom flask, gel capsules and an encapsulating machine, as well as precursor chemicals used in the manufacture of MDA and MDMA. Possession of that type of flask is prohibited if intended for use in the manufacturing of controlled substances.
In addition to the prison term, U.S. District Judge Cooper sentenced Gonzalez to five years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Ford in Newark, New Jersey, and the DEA under the direction of Special Agent in Charge Kotowski in New Jersey with the investigation leading to today’s sentencing. He also thanked members of FBI Newark’s Joint Terrorism Task Force, FBI’s New York Office and Weapons of Mass Destruction Directorate Laboratory Division, DEA’s New York Division, the New Jersey Office of Homeland Security and Preparedness for their work on the case, the police and fire departments of Jersey City and the city of New York and the New Jersey State Police for their assistance.
The government is represented by Assistant U.S. Attorneys L. Judson Welle and Francisco J. Navarro of the U.S. Attorney’s Office National Security Unit in Newark. Valuable support was provided by attorneys of the Department of Justice’s National Security Division – Counterterrorism Section.
Newark, New Jersey, Man Sentenced to 20 Years in Prison for Robbing Stores in Essex and Hudson CountiesRead the Press Release
TRENTON, N.J. - A man who robbed 11 stores in Newark, Harrison and Jersey City between September 2012 and April 2013 was sentenced today to 240 months in prison, U.S. Attorney Paul J. Fishman announced.
Christopher Mojica, 24, previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with one count of Hobbs Act conspiracy, one count of Hobbs Act robbery and one count of discharging a firearm in furtherance of a crime of violence. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Mojica conspired with others to rob commercial establishments as follows:
New Barbershop
Newark
September 14, 2012
Newark
September 2012
Amcare Pharmacy
Newark
November 13, 2012
Summer Pharmacy
Newark
December 11, 2012
Community Health Pharmacy
Newark
January 19, 2013
Delson Jewelry
Newark
February 8, 2013
Pharmacy Plus
Harrison
February 21, 2013
Forest Hill Pharmacy
Newark
April 4, 2013
Montgomery Pharmacy
Jersey City
April 15, 2013
Harris Pharmacy
Newark
April 16, 2013
Delta Gas Station
Newark
April 19, 2013
Mojica and his conspirators robbed each of these establishments at gunpoint, stealing cash, oxycodone pills, jewelry and other items. During the Delta Gas Station robbery on April 19, 2013, Mojica robbed the gas station attendant at gunpoint while a conspirator served as the “lookout.” Mojica fired a .45 caliber semi-automatic handgun as he fled the scene.
In addition to the prison term, Judge Pisano sentenced Mojica to five years of supervised release. Restitution will be determined at a later date.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of FBI Acting Special Agent in Charge Eric Welling in Newark, with the investigation leading to today’s sentencing. He also thanked the Newark, Harrison and Jersey City police departments, along with the Essex County and Hudson County prosecutor’s offices for their work on this case.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the Organized Crime/Gangs Unit in Newark.
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Defense counsel: Paulette Pitt Esq., Woodbridge, New Jersey
Romanian National Admits Role as Ringleader of $5 Million ATM Skimming SchemeRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Sweden and extradited to the United States admitted today to directing a large-scale scheme that stole bank account information through a process commonly referred to as “ATM skimming,” in which conspirators secretly installed card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Marius Vintila, a/k/a “Dan Girneata,” 31, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Count One of a superseding indictment, conspiracy to commit bank fraud, and Count Two, aggravated identity theft.
In July 2013, as federal agents in New Jersey arrested various members of his large-scale ATM skimming scheme, Vintila fled the United States. On Sept. 24, 2013, he was apprehended in Sweden and subsequently extradited to the United States. Vintila has been held without bail since his arrival in the United States in February 2014.
According to documents filed in this and other cases and statements made in court:
Vintila was the ringleader of an extensive ATM skimming scheme that targeted thousands of bank customers and defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million.
Vintila and his conspirators constructed sophisticated card-reader devices capable of reading and storing customers’ bank account information as the customers performed routine bank transactions at ATMs. Vintila and his conspirators also concealed pinhole cameras in panels designed to match existing ATM components. Vintila then taught and directed several conspirators to install the devices on ATMs. Once installed, the card-reader devices secretly read identity and account information contained on the magnetic strip of customer ATM cards. The pinhole cameras recorded customer keystrokes as they entered their personal identification numbers.
After the account information was stolen, Vintila and his conspirators used the stolen data to create thousands of fraudulent ATM cards, which they used to withdraw millions of dollars from customers’ bank accounts. Vintila also used an alias, “Dan Girneata,” to open bank accounts, rent vehicles and rent multiple self-storage units where he stored skimming devices, pinhole cameras, super glue, tape, SD cards, batteries, computers, molds, fraudulent ATM cards, and cash proceeds. Vintila also provided other conspirators with fake passports and aliases to use in furtherance of the scheme.Vintila’s ATM skimming operation is one of the largest ever uncovered by law enforcement. To date, 16 individuals, including Vintila, have been charged. Eleven of those 16 have pleaded guilty. Bogdan Radu, 30, who was charged separately, helped design and construct the ATM skimming devices used during a large portion of the scheme. Radu 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 Vintila, participated in Vintila’s ATM skimming 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’ imprisonment. Franco and Pendus each received sentences of 33 months in prison. Hadzalic and Apetrei each received 34 and 24 months in prison, respectively. Causevic, Cotiga, Radu and Revesz are still await sentencing.
Dinu Horvat, 28, who was charged as a co-defendant along with Vintila, has pleaded not guilty, and is scheduled to stand trial in March 2015. Charges remain pending against Alin Dumitru Carabus, 40, Ionut Vasile Ciurba-Stana, a/k/a “Ciorba,” 28, and Robert Eduard Mate, a/k/a “Chioru,” 29, three additional members of the conspiracy who were charged by indictment on April 16, 2014. 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 to which Vintila pleaded guilty 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. Vintila is scheduled for sentencing on May 5, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Acting Special Agent in Charge Carl Agnelli, along with special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge John P. Woods, with the investigation leading to today’s guilty plea.
The charges against Horvat, Carabus, Ciurba-Stana and Mate are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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.
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Defense Counsel: Brian Neary Esq., Hackensack, New Jersey
Vintila, Marius Superseding Indictment
Doctor Sentenced to 16 Months in Prison for Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – An internist with a practice in Montclair, New Jersey, was sentenced today to 16 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.
Charles Goldberg, 61, of West Orange, 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 Goldberg imposed the sentence today in in Newark federal court.
Including Goldberg, 34 people – 23 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.According to documents filed in these and related cases and statements made in court:
Goldberg admitted accepting bribes of $1,800 per month through a sham lease agreement with BLS, which identified the waiting room, bathroom and one examination room in Goldberg’s office as being leased.In addition to the prison term, Judge Chesler sentenced Goldberg to one year of supervised release and fined him $50,000. As part of his guilty plea, Goldberg must forfeit $58,000, representing the bribes he received from BLS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; 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 Acting 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 Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, 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: A. Ross Pearlson Esq., West Orange
15-036Doctor Admits Taking Bribes in Test-Referral Scheme New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A Monmouth County doctor with practices in Colts Neck, New Jersey, and Staten Island, 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.
Ralph Messo, 53, of Colts Neck, New Jersey, 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 Messo, 34 people – 23 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:
Messo admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid approximately $3,000 per month. Messo’s referrals generated at least $828,000 in lab business for BLS.
On April 9, 2013, federal agents arrested David Nicoll, 40, of Mountain Lakes, New Jersey, Scott Nicoll, 33, of Wayne, New Jersey, a senior BLS employee and David Nicoll’s brother, and Craig Nordman, 35, of Whippany, New Jersey, a BLS employee and the CEO of Advantech Sales LLC – one of several entities used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Frank Santangelo, 44, of Boonton, New Jersey. In June 2013, David and Scott Nicoll, Nordman and four other associates of BLS pleaded guilty to charges related to their involvement. Santangelo, a doctor, pleaded guilty in August 2013 to charges relating to his role in the scheme
The bribery count to which Messo pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for May 12, 2015. As part of his guilty plea, Messo must forfeit $82,500, representing the total bribe monies received from BLS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; 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 Acting 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 guilty pleas.
The government is represented by Assistant U.S. Attorney Joseph 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.
15-038Defense counsel: Joseph R. Benfante Esq., New York
Burlington County, New Jersey, Man Sentenced to Nine Years in Prison for Downloading Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. – A Palmyra, New Jersey, man was sentenced today to 108 months in prison for using a computer in his home to distribute images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Donald Kivel, 38, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of receiving child pornography. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Kivel admitted downloading images of child pornography that were available for distribution using peer-to-peer sharing software using a computer in his residence in June and July 2011. He also admitted to possessing more than 600 images of child pornography on his computer, which was seized from his residence July 15, 2011. Kivel acknowledged that among the images he possessed and distributed were images which depicted minors posing in a sexually explicit manner, images of child pornography involving children under the age of 12, and images that portrayed sadistic and/or masochistic conduct or other images of violence.
In addition to the prison term, Judge Rodriguez sentenced Kivel to serve 10 years of supervised release and ordered him to pay restitution of $19,980.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s sentencing.The government is represented by Attorney in Charge R. Stephen Stigall of the U.S. Attorney’s Office Criminal Division in Camden.
15-035
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
New York Man Admits Participating in Armed Robberies of Electronic Stores in New JerseyRead the Press Release
TRENTON, N.J. – A New York man today admitted participating in armed robberies of electronics stores in New Jersey, including armed robberies in Linden, Paramus, and Woodbridge, U.S. Attorney Paul J. Fishman announced.
Eric Williams, 34, of Brooklyn, New York, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information that charged him with one count of conspiracy to commit Hobbs Act robberies.
Williams was arrested on Feb. 14, 2013, and charged in a superseding indictment — along with Carl Williams, 31, and Unique Randolph, 28, both of Brooklyn – in connection with several armed robberies of electronic stores in New Jersey. Eric Williams has been in custody since his arrest.
According to documents filed in this case and statements made in court:
On Sept. 20, 2012, Carl Williams and Leonard Arrington, 28, of Roslyn Heights, New York, walked into a T-Mobile store in Linden brandishing a firearm, while Eric Williams and other conspirators served as lookouts and get-away drivers. Carl Williams and Arrington then tied up the employees in the back of the store, stole 50 to 60 cell phones and fled in a Land Rover. Eric Williams and other conspirators then delivered the stolen phones to a cell phone store in Brooklyn.
On Oct. 2, 2012, Arrington entered a T-Mobile store in Woodbridge, brandishing a firearm, along with another man. After locking the front door, the men took the employees to the back of the store and tied them up, then stole approximately 40 cell phones. One of the robbers then called the getaway driver, who drove them away in a Land Rover. Eric Williams and others delivered the stolen phones to the same Brooklyn store.
Eric Williams participated in the planning of a subsequent robbery of an electronics store in Paramus, which took place on Jan. 16, 2013. Randolph and another individual entered an electronics store and, after forcing employees and a customer into the back of the store, Randolph tied them up using zip-ties, while his conspirator held them at gunpoint. As Randolph and his conspirator were looting the store of cell phones, a UPS employee walked into the backroom. Randolph forced him onto the ground and used zip-ties to tie him up. Randolph and his conspirator then fled, along with Carl Williams who was waiting outside as a lookout.
The charge of conspiracy to commit Hobbs Act robberies carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000. Carl Williams, Arrington and Randolph have previously pleaded guilty.U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea. He also thanked the Linden, Paramus, and Woodbridge police departments, as well as the New York City and Nassau County police departments and the Kings County District Attorney’s Office in New York for their work in this case.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division.15-033
Defense counsel:
Carl Williams: Mark A. Berman Esq., River Edge, N.J.
Eric Williams: Michael A. Armstrong Esq., Willingboro, N.J.
Unique Randolph: Damian P. Conforti Esq., Newark
Leonard Arrington: Dennis S. Cleary Esq., NewarkDistributor for Atlantic City 'Dirty Block' Gang Sentenced to 10 Years in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - An Atlantic City, New Jersey, man was sentenced today to 120 months in prison for engaging in a conspiracy to distribute heroin with Mykal Derry, a leader of the “Dirty Block” criminal street gang that allegedly used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, U.S. Attorney Paul J. Fishman announced.
Aree Toulson, a/k/a “Beyah,” a/k/a “Beyeazz,” 26, previously pleaded guilty before U.S. District Judge Joseph E. Irenas to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute, and to distribute and to possess with intent to distribute within 1,000 feet of public housing, 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:
Toulson acted as a distributor on behalf of Mykal Derry, 34, of Atlantic City, helping Dirty Block distribute heroin in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court in Atlantic City.
Toulson was arrested on March 26, 2013. He and others travelled with Mykal Derry to a shooting range in Lakewood, New Jersey, on Oct. 18, 2012, where Toulson – a previously convicted felon – used, possessed, and discharged a firearm. According to filed documents, members of the group also participated in a violent altercation with rival drug traffickers at an Atlantic City casino in December 2012.
In addition to the prison term, Judge Irenas sentenced Toulson to serve eight years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.
The charges and allegations against Derry are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Paul George Esq., Philadelphia
Warren County, New Jersey, Construction Business Owner Admits Concealing Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Belvidere, New Jersey, man today admitted he concealed a mortgage fraud scheme carried out by his wife, a former real estate title agent, in which they obtained seven loans, totaling more than $3.7 million, on two properties located in Belvidere and Wood-Ridge, New Jersey, U.S. Attorney Paul J. Fishman announced.
Zbigniew Cichy, 45, pleaded guilty before U.S. District Judge Stanley R. Chesler to a superseding information charging him with one count of misprision of felony.
According to documents filed in this case and statements made in court:
Cichy owned and operated Global Builders LLC, a construction company. His wife, Ania Nowak, 48, also of Belvidere, was the owner and operator of A.N. Title Agency LLC and was an agent for Stewart Title Guaranty Company.
Nowak obtained seven mortgage loans through fraudulent means, including: an April 2005 loan for her sham sale of the Wood-Ridge property to Cichy; Cichy’s November 2005 refinancing loan on the Wood-Ridge property; a 2005 construction loan to build a house on the Belvidere property owned by Cichy; Cichy’s August 2006 loan on the Belvidere property; May 2007 loans for Cichy’s sham sale of the Belvidere property to another conspirator in the scheme, Kim Salvemini, 60, of Wallington, New Jersey; Salvemini’s May 2007 refinancing loan on the Belvidere property; and Cichy’s November 2007 refinancing loan on the Belvidere property. Nowak admitted that, for each of the seven loans, she lied on loan documents, failed to pay off prior mortgages at closing, failed to record the mortgages and any deeds and that most of the loans went into default for non-payment.
Cichy admitted that although he was aware of the mortgage fraud scheme, including Nowak’s failure to pay off existing liens at closing, he failed to report the fraudulent mortgage transactions to authorities. Instead, Cichy took steps to conceal the scheme by making mortgage payments on a number of the fraudulent loans out of his personal and business accounts to prevent foreclosure and thereby conceal from lenders that the loans had been obtained through fraud. Cichy also admitted to lying on certain loan documents that were used in furtherance of the scheme.
The charge of misprision of felony to which Cichy pleaded guilty carries a maximum penalty of three years in prison and a fine of $250,000, or twice the gross gain or loss resulting from the offense. Sentencing is scheduled for May 5, 2015.
Nowak pleaded guilty on Jan. 15, 2015, and is also scheduled to be sentenced May 5, 2015. Salvemini previously pleaded guilty to her role in the scheme and awaits sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu and Senior Litigation Counsel Leslie F. Schwartz of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.
Today’s guilty plea 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.
15-031
Defense counsel: Carl J. Herman Esq., West Orange, New Jersey
Bayonne Police Officer Charged with Use of Excessive Force During ArrestRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was arrested today and charged with violating a defendant’s civil rights by using excessive force during an arrest that took place in Bayonne, New Jersey, as well as falsifying records in an attempt to conceal the alleged crime, Attorney Paul J. Fishman announced.
Police Officer Domenico Lillo, 44, of Bayonne, New Jersey, was arrested by federal agents this morning and after a federal grand jury in Newark returned an indictment charging him with the deprivation of civil rights under color of law and falsification of records. Lillo had his initial appearance and arraignment before U.S. Magistrate Judge James B. Clark III in Newark federal court. He was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
On the early evening of Dec. 27, 2013, Lillo and other police officers from the Bayonne Police Department went to an address in Bayonne to execute a Sussex County arrest warrant. Lillo allegedly struck the subject of the warrant with a flashlight while the individual was handcuffed and not resisting arrest, which resulted in bodily injury. Lillo allegedly falsified a Bayonne Police Department Use of Force Report related to the arrest with the intent to impede an investigation into the case.
The use of excessive force count with which Lillo is charged carries a maximum penalty of 10 years in prison. The charge of falsifying records carries a maximum penalty of 20 years in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and 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, with the continuing investigation leading to today’s arrest.
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.
15-032
Defense counsel: Frank Arleo Esq. West Orange, N.J.Newark Watershed Conservation and Development Corp. Contractor Admits Role in Bribery SchemeRead the Press Release
NEWARK, N.J. – A former contractor of the Newark Watershed Conservation and Development Corporation (NWCDC) today admitted his role in a bribery and kickback scheme involving an employee and consultant of the NWCDC, U.S. Attorney Paul J. Fishman announced.
James Porter, 78, of East Orange, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with one count of conspiring with Donald Bernard Sr., a former employee and consultant of the NWCDC, and others, to defraud the NWCDC and one count of tax evasion.
According to documents filed in this case and statements made in court:
Between October 2008 and April 2013, Porter conspired with Bernard to provide Bernard and others with a stream of concealed, undisclosed kickbacks in exchange for Bernard’s assistance in securing business opportunities and payments to two companies operated by Porter: Jim P. Enterprises LLC (JPE) and New Beginnings Environmental Services (NBES), a company in which Bernard was also a partner. Both JPE and NBES purported to perform landscaping, snow removal, clean-up and sign posting services to the NWCDC from 2008 through 2013. JPE received payments from the NWCDC totaling more than $500,000 and NBES received approximately $290,000 from the NWCDC. Both companies submitted invoices to the NWCDC that were fraudulently inflated to cover kickback payments to Bernard and billed for some services, such as landscaping and snow removal, which were never performed.
Porter passed a stream of kickback payments to Bernard totaling more than $500,000, which was funded by the proceeds JPE and NBES obtained from the NWCDC, including cash withdrawn from the bank accounts of JPE and NBES totaling $378,867; Bernard’s use of an ATM card issued in his name to withdraw at least $74,681 directly from the NBES bank account; Bernard’s use of the NBES ATM card issued in Bernard’s name to pay personal expenses of nearly $5,000; and checks written from the accounts of JPE and NBES totaling $41,650, which were made payable to Bernard, or to companies he controlled, including a consulting company, Bernard & Associates, and the African American Heritage Parade Committee (AAHPC).
In August 2012, Porter also accepted a $5,000 check payable to JPE from Essex Home Improvements, another contractor of the NWCDC for work that was never performed, and delivered the proceeds to Bernard. The payment from Essex Home Improvements was provided to JPE, rather than to Bernard directly, as a means of concealing a kickback from Essex Home Improvements to Bernard. Bernard and Giacomo DeRosa, 58, a Clinton Township, New Jersey contractor, have been charged in separate indictments and are awaiting trial.
From 2009 to 2012, Porter failed to report income of $767,750 from the proceeds that JPE and NBES received from the NWCDC. Porter also pleaded guilty today to intentionally underreporting income for the 2012 tax year on his personal tax return by $151,603, resulting in tax due and owing of $48,971.
The conspiracy to defraud count and the tax evasion count to which Porter pleaded guilty each carry a maximum potential penalty of five years in prison and a fine of either $250,000 or twice the gain or loss from the offenses. The government is also seeking forfeiture of $573,333. Sentencing is scheduled for May 12, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi, as well as criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Mala Ahuja Harker of the U.S. Attorney’s Office Special Prosecutions Division.
The charges and allegations in the indictment against Bernard and DeRosa are merely accusations, and the defendants are considered innocent unless and until proven guilty.
15-030
Defense counsel: Anthony Mack Esq., NewarkMedical Device Company Manager Sentenced to Prison for Scheme to Defraud Hospitals of $800,000Read the Press Release
TRENTON, N.J. – A regional manager selling medical devices to hospitals for Integra LifeSciences Corp. of Plainsboro, New Jersey, was sentenced to prison today for his role in a scheme to defraud hospitals of more than $800,000, U.S. Attorney Paul J. Fishman announced.
Daniel Metz, 34, of Fairfield, New Jersey, was sentenced to nine months in prison and nine months of home confinement. Charles B. Carey Jr., 35, of Clark, New Jersey, whose cooperation led to Metz’ conviction, was sentenced to three years of probation. Metz and Carey previously pleaded guilty before U.S. District Judge Joel A. Pisano to separate informations charging them with conspiracy to commit wire fraud. Judge Pisano imposed the sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
Integra is a provider of orthopedic products, including devices and implants for the spine, foot and ankle, hand and wrist, and shoulder and elbow. Metz worked there from July 2005 until his termination in April 2013, first as a product specialist (also referred to as a sales representative) and then as Northeast regional manager, supervising 16 product specialists and assistant sales representatives in Massachusetts, New Jersey, New York, and Pennsylvania. Carey was a product specialist, reporting to Metz, from January 2009 until he resigned in April 2011.
Product specialists at Integra were responsible for calling on surgeons to increase sales volume and were routinely present during surgeries. When present during surgeries, product specialists brought with them consignment trays with pre-packaged Integra products available to surgeons, as well as surgery-specific products. Integra billed the hospitals and surgery centers for the products used and product specialists (and their supervisors) were compensated based on salary, sales target-based commission and bonuses.
Metz admitted he used various fraudulent methods to overcharge hospitals and surgery centers. He would sometimes charge for a greater quantity or a more expensive product than was actually used, increasing his compensation and improving his employment evaluations.
Metz and Carey admitted that after Metz became regional manager, he taught at least some of the fraudulent methods to product specialists working for him, including Carey, who sometimes employed those methods.
Metz and Carey fraudulently caused medical facilities to pay more than $800,000 in inflated bills.
In addition to the prison term and home confinement, Judge Pisano sentenced Metz three years of supervised release. As part of their plea agreements, Metz and Carey will forfeit $100,000 and $77,000, respectively, representing the amounts of money they personally made through the fraud scheme. The defrauded hospitals have been reimbursed by Integra for the fraudulent charges.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked detectives of the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp, for their contributions to the investigation.
The government is represented by Jacob T. Elberg, Chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit, in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
15-029
Defense counsel:
Metz: Lawrence Lustberg Esq., Newark
Carey: Timothy Donohue Esq., West Orange, N.J.Real Estate Developer Sentenced to 27 Months in Prison for Diverting Money from Trenton Affordable Housing ProjectsRead the Press Release
TRENTON, N.J. – The developer of three Trenton affordable housing projects was sentenced today to 27 months in prison for making false statements to a financial institution to divert project money for personal and other unauthorized purposes, and to conducting a transaction with the proceeds of this crime, U.S. Attorney Paul J. Fishman announced.
Robert Kahan, 69, of Sunny Isles Beach, Florida, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to two counts of an indictment charging him with making false statements in a loan application (Count 8) and to transacting in criminal proceeds that resulted from those false statements (Count 12). Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Between 2006 and 2009, Kahan was a developer of three affordable housing projects in Trenton – the Canal Plaza Homeownership Project, the Southwest Village II Project and the Catherine S. Graham Project – for which he obtained both private and public funding.
The Southwest Village II Project was a project to construct 52 affordable housing units. Kahan diverted substantial portions of the project’s financing from a $6,435,000 construction loan from Roma Bank to his own personal use, his other development projects and other uses that were outside of the project budget. In October 2008, Kahan diverted $343,354 of Southwest Village II project financing and applied it as a down payment to purchase a Florida condominium. In numerous payment applications made to the loan administrator for the project financing requesting advances of loan and subsidy money, Kahan falsely stated that all money that he was previously paid had been used to pay costs for labor, materials and other obligations for the Southwest Village II Project.
In addition to the prison term, Judge Sheridan sentenced Kahan to four years of supervised release. Under terms of the plea agreement, Kahan must forfeit $989,901 in criminal proceeds.
Defense counsel: Scott Krasny Esq., West Trenton, New Jersey
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Christina Scaringi, Special Agent in Charge, Northeast Region, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Eric Moran in Trenton and Senior Litigation Counsel Mark J. McCarren in Newark, both of the U.S. Attorney’s Office Special Prosecutions Division.
15-027Physician Admits to Billing Medicare and Medicaid for Phantom Physical Therapy ServicesRead the Press Release
Defendant Must Also Pay $900,000 in Forfeiture and Civil Damages
NEWARK, N.J. – A doctor with offices in Newark, Union City, Paterson and Passaic today admitted his role in a three-year scheme to bill Medicare for services that were not provided and services provided by unlicensed and unsupervised providers, U.S. Attorney Paul J. Fishman announced.
Benjamin Sabido, 62, of Franklin Lakes, N.J., pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with health care fraud.
According to documents filed in this case, statements made in court and the civil settlement agreement:
From at least December 2006 through April 2010, Sabido received $237,182 from Medicare and Medicaid based upon fraudulent claims. He instructed staff to submit bills for physical therapy services that were not in fact provided. He authorized and encouraged unqualified staff members to provide physical therapy services, including electrical stimulation, massage, and other therapeutic services. During the time period of the scheme, Sabido did not employ any licensed physical therapists, nor anyone otherwise qualified to provide physical therapy services.
The count of health care fraud to which Sabido pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for May 14, 2015.
Sabido will pay $700,545, plus interest, to resolve allegations arising from Sabido’s submission of claims for physical therapy and nerve conduction studies. From December 2006 to December 2010, Sabido submitted to Medicare and Medicaid claims for physical therapy services that were rendered because the patients wanted these services and not necessarily because they benefited from them, were not provided pursuant to a plan of care, were not properly supervised, or were not provided by qualified personnel. The settlement alleges that from January 2006 through December 2010, Sabido submitted to Medicare claims for nerve conduction studies for which Sabido’s patient charts do not establish that the services were medically necessary or, in some cases, even rendered. Except as admitted in the plea agreement, the claims settled by the civil settlement agreement are allegations only, and there has been no determination of liability as to those claims.
U.S. Attorney Fishman credited special agents of the Department of Health and Human Services Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s guilty plea.
The government is represented in the criminal case by Assistant U.S. Attorney Joseph Mack, Deputy Chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit, and in the civil settlement by Assistant U.S. Attorney Charles Graybow of the 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 $625 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Federal Food, Drug and Cosmetic Act and other statutes.
15-026Defense counsel: John A. Azzarello Esq., Chatham, N.J.
Neptune, New Jersey, Man Sentenced to 23 Years in Prison for Shooting of Cab Driver, Several Armed Robberies in Monmouth CountyRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 276 months in prison for his involvement in a 24-hour crime spree in five separate shore-area towns that involved the shooting of a cab driver and a number of armed robberies, U.S. Attorney Paul J. Fishman announced.
Quam Wilson, 24, of Neptune, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to the first two counts of an indictment charging him with committing a Hobbs Act robbery and using a firearm during the commission of that robbery. Judge Sheridan imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
Wilson engaged in a crime spree that began at approximately 5:00 a.m. on Nov. 13, 2012, when he robbed a cab driver in Asbury Park. The driver was shot during the robbery. The victim, who survived, sustained a single gunshot wound to the head and was taken to Jersey Shore University Medical Center. During the plea hearing, Wilson admitted he took the cab driver’s identification, taxi keys and debit card during the robbery.
After robbing the taxi driver, Wilson proceeded to a Shell gas station located in Ocean Township. There, he approached a gas station attendant and, while brandishing a handgun, robbed him of cash and fled the area. Later that morning, Wilson attempted to obtain money from the cab driver’s bank account from several area banks. Suspecting that a theft was taking place, a bank employee confiscated the identification and debit card from Wilson and contacted police. At approximately 9:00 p.m., that same day, he committed an armed robbery at a taxi stand in Long Branch, again while brandishing a handgun.During the early morning hours of the next day, Nov. 14, 2012, Wilson robbed an Exxon gas station in Red Bank at gunpoint. A short time later, Wilson entered a Quick Check convenience store in Neptune Township. Again, he pointed a handgun at a cashier and demanded money. Wilson was arrested at approximately 10:00 p.m. later that day by several police officers in Asbury Park, where he had been hiding in an attic.
In addition to the prison term, Judge Sheridan sentenced Wilson to serve five years of supervised release. Restitution will be determined at a later date. Wilson’s sentence will be served consecutively to a state prison term he is currently serving. He was sentenced on March 14, 2014, to eight years in state prison with a four- year period of parole ineligibility.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in George Belsky, with the investigation leading to today’s sentencing. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, Asbury Park Police Department, Ocean Township Police Department, Long Branch Police Department, Neptune Township Police Department and the United States Marshals Service N.Y. /N.J. Regional Fugitive Task Force for their assistance.The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, and Special Assistant U.S. Attorney Jacquelynn Seely from the Monmouth County Prosecutor’s Office.
15-028
Defense counsel: David R. Oakley Esq., Princeton, New JerseyAttorney Sentenced to 46 Months in Prison for his Role in Investment and Real Estate FraudsRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, attorney was sentenced today to 46 months in prison for his role in a scheme that defrauded investors in connection with a Facebook IPO and several real estate deals, U.S. Attorney Paul J. Fishman announced.
Fred Todd, 61, of Lakewood, New Jersey, previously pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of conspiracy to commit wire fraud and one count of transacting in criminal proceeds.According to documents filed in this case and statements made in court:
Todd is an attorney with offices in Seaside Heights, New Jersey, and Los Angeles, California. His two co-defendants, Eliyahu Weinstein, 39, of Lakewood, and Aaron Glucksman, 41, of Brooklyn, New York, have already pleaded guilty to charges related to their roles in the scheme.
Weinstein, already convicted and sentenced to 22 years in prison in a separate Ponzi scheme, pleaded guilty on Sept. 3, 2014, to three counts of an indictment pending against him: one count of conspiracy to commit wire fraud, one count of committing wire fraud while on pretrial release, and one count of money laundering. He was sentenced on Dec. 15, 2014, on those charges to an additional two years in prison.
Glucksman has also pleaded guilty and was sentenced by Judge Pisano on May 5, 2014, to 52 months in prison, three years of supervised release, and ordered him to forfeit $1.2 million. Judge Pisano ordered Glucksman’s sentence to run partially concurrently with a 36-month sentence recently imposed by U.S. District Judge Raymond J. Dearie of the Eastern District of New York in an unrelated case.
In February 2012, Todd and his conspirators offered a pair of investors (referred to in the information as the “Facebook victims”) the opportunity to purchase large blocks of Facebook shares prior to the company’s initial public offering, or IPO, in May 2012. The offer was particularly attractive because large blocks of the shares were extremely difficult to get and were expected to increase in value at the time of the IPO. Weinstein and his conspirators did not actually have access to the shares.
Based on misrepresentations by the conspirators, the Facebook victims wired millions of dollars between February and March of 2012 to an account Weinstein and a conspirator controlled. Weinstein and another conspirator provided investors with false documents showing companies owned by various conspirators held assets, which would secure the Facebook victims’ investment.
The conspirators did not use any of the Facebook victims’ money to purchase Facebook shares, instead misappropriating it for their own use.
Around the same time, Todd and his conspirators also persuaded victims to invest in the purported purchase of an apartment complex in Florida. They told the victims that Weinstein had the opportunity to purchase the notes on the condominiums at a discounted price and immediately flip it at a substantial profit. The victims wired money to complete the purchase, but Todd and his conspirators instead used the money for their own purposes.
In addition to the prison term, Judge Pisano sentenced Todd to three years of supervised release and ordered him to pay restitution of $6.53 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for their role in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig; Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit, and Assistant U.S. Attorney Zach Intrater of the Economic Crimes Unit.
This case was brought in coordination with President Barack 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.
15-025
Defense counsel: James Filan Esq., Westport, Conn.
Todd, Fred Information
Defendant Sentenced for Role in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A North Carolina man was sentenced today to three years of probation and ordered to pay more than $750,000 in restitution for role in one of the nation’s largest and longest running stolen identity refund fraud schemes ever prosecuted, U.S. Attorney Paul J. Fishman announced.
Luis Martinez, 49, of Matthews, N.C., previously pleaded guilty before U.S. District Judge Claire C. Cecchi, to an information charging him with conspiracy to defraud the United States and theft of government property. The conspiracy caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds and resulted in losses to the United States of more than $12 million.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud that results in over $2 billion in losses annually to the U.S. Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico;
- SIRF participants complete Individual Income Tax Return 1040 Forms using the fraudulently-obtained information, and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 form are entitled to tax refunds – when in fact, the various tax withholdings indicated have not been paid and no refunds are due;
- SIRF perpetrators direct the U.S. Treasury Department to issue the refunds through checks to locations they control or can access, in various ways;
- SIRF perpetrators generate cash proceeds. Some sell the checks at a discount to face value. The buyers then cash the checks at banks or check cashing businesses or deposit them into bank accounts.
Federal law enforcement agencies, recognizing that SIRF was a serious problem, created a multi-agency task force in New Jersey comprised of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration (the “New Jersey Task Force”).
An investigation led by the New Jersey Task Force with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations has revealed that starting as early as 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long running SIRF scheme. The scheme has caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with losses to the U.S. Treasury of more than approximately $12 million.
Members of the conspiracy obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fake 1040s, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically. By tracing the specific IP addresses that submitted them, law enforcement officers learned just a handful of IP addresses created many of the fraudulent forms that led to the issuance of tax refund checks.
Martinez and the other members of the conspiracy then gained control of checks, sometimes bribing mail carriers to intercept checks and deliver them to other members of the conspiracy.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in fraudulently-applied for refund checks before they were delivered to members of the conspiracy.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Marie Kelokates; the U.S. Secret Service, under the direction of Acting Special Agent In Charge Carl Agnelli; and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, for the investigation leading to today’s sentencing.
In addition to the three-year term of probation, Judge Cecchi ordered Martinez to pay $753,041 in restitution and fined him $10,000.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman, Mala Ahuja Harker, Lakshmi Srinavasan Herman, and Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
15-023
Defense counsel: Barry Goldberg Esq., New YorkCivil Settlement Reached with Construction Company Falsely Claiming to be Owned by a Service Disabled VeteranRead the Press Release
NEWARK, N.J. – Veteran Construction Associates LLC (Veteran Construction), a construction company headquartered in Burlington, New Jersey, will pay $1.3 million to resolve allegations that it improperly billed the U.S. Department of Veterans Affairs on government contracts, U.S. Attorney Paul J. Fishman announced today.
Veteran Construction was formed in 2006 and listed a service-disabled veteran as its 51 percent owner. From 2008 through 2011 the company bid on and received government construction contracts that were reserved for companies that were certified as owned and operated by service disabled veterans. Veteran Construction successfully completed and invoiced the United States 68 times on those contracts for a total of $6.5 million.
The government, through the Small Business Administration and the Department of Veterans Affairs, encourages businesses that are majority owned and operated by service disabled veterans through a federal government procurement program that sets acquisitions aside for exclusive competition among service disabled veteran owned small businesses.
The settlement resolves allegations that Veteran Construction was not owned and controlled by a service disabled veteran, and thus should neither have received the government contracts, nor invoiced the government for work performed on those contracts. Veteran Construction admitted that it is liable to the United States for its conduct under the False Claims Act.In addition to the $1.3 million payment by Veteran Construction, the company has agreed that it shall never seek to obtain any government contracts set aside for veterans of the United States military and will not seek any government contracts at all for three years from the settlement. The company agreed that none of its current or former members will maintain more than a 10 percent ownership interest in any company seeking to obtain government contracts set aside for veterans of the United States military for three years.
U.S. Attorney Fishman credited Special Agent in Charge Jeffrey G. Hughes of the Department of Veterans Affairs, Office of the Inspector General, Criminal Investigation Division, and Special Agent in Charge Aaron Collins of the U.S. Small Business Administration’s Office of Inspector General, Eastern Region, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division in Newark and Assistant U.S. Attorney J. Andrew Ruymann of the U.S. Attorney=s Civil Division in Trenton.
15-024
Defense Counsel: Michael A. Schwartz Esq., Philadelphia
Justice Department Requests Applicants for Federal Monitor of Newark Police DepartmentRead the Press Release
NEWARK, N.J. – The U.S. Department of Justice is now accepting applications from individuals and organizations interested in serving as the federal monitor of the Newark Police Department (NPD), U.S. Attorney Paul J. Fishman and Acting Assistant Attorney General for Civil Rights Vanita Gupta announced today. The Justice Department reached an agreement in principle with Newark to undertake wide-ranging reforms within the police department, including an independent court-appointed monitor, and to incorporate those reforms into a judicially enforceable consent decree.
A three-year investigation by the Justice Department and the New Jersey U.S. Attorney’s Office revealed a pattern or practice of constitutional violations in areas including stop and arrest practices, use of force, and theft by officers. The agreement and a summary of the Justice Department’s findings were announced in July 2014.Selecting a monitoring team to oversee and implement the consent decree is an integral part of the reform process. The Justice Department invites all interested parties to submit applications to serve as the monitoring team of the NPD consent decree. The monitoring team will assess and guide reforms in a number of areas, including: community engagement and civilian oversight; stops, searches, and arrests; use of force; bias-free policing; theft by officers; intake and investigation of misconduct complaints; and police discipline. The monitoring team is expected to serve for at least five years. Successful candidates will have experience in evaluating organizations, measuring organizational change, and engaging with diverse communities, as well as expertise in law enforcement practices and statistical analysis, and familiarity with federal, New Jersey, and local criminal and civil rights laws. Applications must include the qualifications of each team member, a list of prior experience and references, a scope of work detailing the methods and activities the team would use to implement the consent decree, a list of all potential or perceived conflicts of interest, and a cost proposal.
The deadline for submitting applications is Feb. 13, 2015. The Justice Department, in consultation with the City of Newark, will select the monitoring team from applications received by that date.
The request for applications is available at: Request for Applications . The Department’s findings report and the agreement in principle can be found here: Agreement & Findings . For more information about the Civil Rights Division, please visit the Division’s website, Civil Rights Division .
Federal civil rights complaints specific to New Jersey can be directed to the U.S. Attorney’s Office civil rights complaint hotline at 855-281-3339 or can be submitted by filling out a complaint form at: Civil Rights Enforcement.
THIS IS A REQUEST FOR INFORMATION ONLY. This request is issued solely for information and planning purposes. It does not constitute a Request for Proposal (RFP) or a promise to issue a RFP in the future. This request is not part of, and shall not be governed by, any formal municipal, state, or federal procurement process. This request does not commit the parties to select an individual or firm to serve as the Monitor or a member of the monitoring team. The parties may solicit additional information from applicants to supplement information provided in response to this request. Responders are advised that the parties will not pay for any information or administrative costs incurred in response to this request; all costs associated with responding to this request will be solely at the interested party’s expense. Not responding to this request does not preclude participation in any future request for applications, if any is issued, nor does it eliminate an individual or firm from being considered for the monitor or a member of the monitor’s team.
14-022Four Members of ‘Dirty Block’ Atlantic City, New Jersey, Gang Convicted on Drug Conspiracy and Weapons ChargesRead the Press Release
CAMDEN, N.J. – Four members of a criminal street gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, New Jersey, were convicted at trial today on drug conspiracy and weapons charges, U.S. Attorney Paul J. Fishman announced.
The defendants – Kareem Bailey, 21, Terry Davis, 26, Lamar Macon, 26, and Dominique Venable, 24, all of Atlantic City – were each convicted of conspiracy to distribute one kilogram or more of heroin, possession of firearms in furtherance of a drug trafficking crime and brandishing and discharging firearms in furtherance of the conspiracy following a six-week trial before U.S. District Judge Joseph E. Irenas in Camden federal court. The jury deliberated approximately five hours before returning the verdicts.
According to documents filed in this case and the evidence presented at trial:
The four men are members of a gang known as “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,” which operated in a geographic area of Atlantic City that includes the public housing apartment complexes of Stanley Holmes Village Public Housing Complex, Renaissance Plaza and Schoolhouse Apartments.
The defendants participated in a violent street-level drug trafficking organization that controlled heroin sales through the possession of dozens of firearms and the use of gun violence, including at least one homicide and several non-fatal, drug-related shootings.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s convictions.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.The charges and allegations against the other defendants arrested in this investigation are merely accusations and the defendants are considered innocent unless and until proven guilty.
15-021
Defense Counsel:
Bailey: John Holliday Esq., Hamilton, N.J.
Davis: Gina Capuano Esq., Philadelphia
Macon: William Spade Esq., Philadelphia
Venable: James Murphy Esq., Princeton, N.J.New Trial Date Set for Michael 'the Situation' Sorrentino and Marc SorrentinoRead the Press Release
Brothers Indicted for Tax Crimes Involving $8.9 Million in Income
NEWARK, N.J. - A new trial date has been set for television personality Michael “The Situation” Sorrentino and his brother, Marc Sorrentino, on charges they did not properly pay taxes on $8.9 million in income Michael Sorrentino received from promotional activities, U.S. Attorney Paul J. Fishman announced.
U.S. District Judge Susan D. Wigenton issued a complex case designation and a continuance order that sets the matter down for trial on Sept. 14, 2015.
The Sorrentinos are charged with one count of conspiracy to defraud the United States. Marc and Michael Sorrentino also are charged with three and two counts, respectively, of filing false tax returns for 2010 through 2012. Michael Sorrentino faces an additional count for allegedly failing to file a tax return for 2011. The original trial date was March 2, 2015.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney=s Office Criminal Division in Newark, and Trial Attorney Tino Lisella of the Tax Division of the U.S. Department of Justice.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
15-017Defense counsel:
Michael Sorrentino: Richard Sapinski Esq., Newark
Marc Sorrentino: Chris Adams Esq., Colts Neck, N.J.Sorrentino, Michael and Marc Continuance Order
Morris County, New Jersey, Man Admits Receiving Images of Child PornographyRead the Press Release
NEWARK, N.J. – A Boonton, New Jersey, man today admitted using a computer in his home to download images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Lucas J. Reinmann, 35, pleaded guilty today before U.S. District Judge Susan D. Wigenton to an information charging him with one count of knowingly receiving images of child pornography over the internet.
According to documents filed in this case and statements made in court:
Reinmann admitted that he downloaded images and videos of child sexual abuse from the internet to his computer using a peer-to-peer file sharing network. He also admitted possessing more than 600 images of child sexual abuse on his computers and USB drives, which were seized from his residence in July 2013.
The count to which Reinmann pleaded guilty carries a mandatory minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison, followed by a mandatory minimum of five years of supervised release and a $250,000 fine. Sentencing is scheduled for April 20, 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 John P. Woods; the Morris County Prosecutors Office, under the direction of Prosecutor Fredric M. Knapp; and the Boonton Township Police Department, under the direction of Chief Paul C. Fortunato with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office OCDETF Unit in Newark.
15-019Defense counsel: Edward V. Sapone Esq., New York
Former Warren County, New Jersey, Title Agent Admits Role in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. - A former real estate title agent admitted yesterday to carrying out a mortgage fraud scheme in which she obtained seven loans, totaling more than $3.7 million, on two properties located in Wood-Ridge, New Jersey and Belvidere, New Jersey.
Prior to going to trial, Ania Nowak, 48, of Belvidere, pleaded guilty before U.S. District Judge Stanley R. Chesler to Count One of the superseding indictment charging her with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Ania Nowak was the owner and operator of A.N. Title Agency LLC and was an agent for Stewart Title Guaranty Company. Nowak had a duty to review a property’s title to determine ownership and the existence of any prior liens and truthfully disclose them in the title insurance documents. She also had a duty to issue title insurance policies to lenders guaranteeing there were no other liens so that they would be first in line to have the property sold if the borrower stopped making mortgage payments. Nowak also acted as a settlement agent and was required to disburse loan money in accordance with lender instructions, pay off any existing liens and record loan documents in the appropriate county clerk’s office.
Nowak admitted her role in obtaining seven mortgage loans through fraudulent means, including: an April 2005 loan for her sham sale of the Wood-Ridge property to her husband, Zbigniew Cichy, 45, of Belvidere; a November 2005 refinancing loan for the Wood-Ridge property; a 2005 construction loan to build a house on the Belvidere property owned by Cichy; an August 2006 loan on the Belvidere property; May 2007 loans for a sham sale of the Belvidere property to another conspirator in the scheme, Kim Salvemini, 60, of Wallington, New Jersey ; Salvemini’s May 2007 refinancing loan on the Belvidere property; and Cichy’s November 2007 refinancing loan on the Belvidere property. Nowak admitted that, for each of the seven loans, she lied on loan documents, failed to pay off prior mortgages at closing, failed to record the mortgages and any deeds and that most of the loans went into default for non-payment.
The wire fraud conspiracy charge to which Nowak pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense. Sentencing is scheduled for May 5, 2015.
Salvemini previously pleaded guilty to her role in the scheme and awaits sentencing. Charges against Cichy are still pending and he is presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu and Senior Litigation Counsel Leslie F. Schwartz of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.
Today’s guilty plea 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.
15-018Defense counsel: Peter R. Willis Esq., Jersey City, New Jersey
Former Managing Law Clerk for Prominent Law Firm Indicted in Scheme to Trade on Inside InformationRead the Press Release
TRENTON, N.J. – A federal grand jury today indicted the managing clerk of the New York office of a prominent, international law firm for his alleged participation in a multi-year insider trading scheme that netted more than $5.6 million in illicit profits, New Jersey U.S. Attorney Paul J. Fishman announced.
Steven Metro, 40, of Katonah, New York, is charged by indictment with one count of conspiracy to commit securities and tender offer fraud, one count of securities fraud, and one count of tender offer fraud.
According to documents filed in this case and statements made in court:
From 2009 to 2013, Metro, who was then the managing clerk of the New York office of Simpson Thacher & Bartlett LLP (the “Law Firm”), one of the nation’s premier mergers and acquisitions firms, repeatedly provided material, nonpublic information to his friend and former law school classmate, Frank Tamayo, 41, of Brooklyn, New York. The inside information divulged by Metro to Tamayo related to corporate transactions, such as mergers and acquisitions or tender offers, in which the law firm represented a party or financial advisor to the transaction. As the firm’s managing clerk – a litigation-related function – Metro did not personally work on most of the corporate transactions at issue. In most instances, Metro allegedly stole the inside information by scouring the firm’s computer system using search terms such as “merger agreement,” “bid letter,” “engagement letter,” “due diligence,” as well as client names, client-matter numbers, or combinations thereof.
Metro then divulged the inside information to Tamayo in person, usually meeting at a bar, coffee shop, or other location near their respective workplaces in midtown Manhattan. During such meetings, Metro provided Tamayo inside information pertaining to, among other things, the names and/or ticker symbols of the companies whose securities should be purchased, the general timing of the planned deals, and information related to how the deals would affect the issuers’ stock price once announced. Tamayo generally would write the security’s ticker symbol on a small piece of paper or napkin and commit to memory any pricing/timing inside information provided by Metro.
After Tamayo received the inside information from Metro, Tamayo would meet with Vladimir Eydelman, 42, of Colts Neck, New Jersey, a professional stock broker. Tamayo usually would meet Eydelman near Eydelman’s workplace, such as at the large clock in New York City’s Grand Central Terminal, where Tamayo would pass the inside information on to Eydelman. Tamayo would show Eydelman the paper or napkin on which Tamayo had written the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo then would chew the paper or napkin until it was destroyed.
After receiving the inside information provided by Metro, whom Eydelman knew as Tamayo’s source at a law firm, Eydelman purchased securities for himself, family members, friends, and/or clients, including Tamayo. Eydelman quickly sold the shares and covered any positions once the relevant deal was publicly announced and the stock price rose.
Throughout the course of the five-year scheme, Tamayo reinvested the approximately $7,000 in profits that Metro made on the first deal and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to cash out his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate Metro.
Tamayo, Metro and Eydelman netted more than $5.6 million in illicit profits over the course of the five-year insider trading scheme.
The conspiracy count with which Metro is charged carries a maximum potential penalty of five years in prison and a fine of $250,000. The securities and tender offer fraud counts carry a maximum potential penalty of 20 years in prison and a fine of $5 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s indictment. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Daniel Hawke.
The government is represented by Assistant U.S. Attorneys Shirley U. Emehelu of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark, and R. Joseph R. Gribko of the U.S. Attorney’s Office in Trenton, as well as Assistant U.S. Attorney Barbara Ward of the Office’s Asset Forfeiture and Money Laundering Unit.
These charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The charges and allegations contained in the indictment are merely accusations, and defendant is presumed innocent unless and until proven guilty.
Alleged Insider TradesAPPROX. DATE(S) OF PURCHASES
ANNOUNCEMENT DATE
SECURITY
APPROX. ILLICIT PROFIT
2/17/2009
Sirius XM Radio
$212,814
12/29/2009-1/15/2010
1/18/2010
Brinks Home Security
$773,154
7/8/2010-7/15/2010
7/15/2010
Smithtown Bancorp
$29,010
10/20/2010-10/29/2010
11/1/2010
CNA Surety Corporation
$241,141
4/11/2011-4/12/2011
4/13/2011
Graham Packing Company Inc.
$105,964
1/31/2011-4/19/2011
4/26/2011
SMART Modular Technologies
$1,575,382
4/4/2011-4/21/2011
4/27/2011
Vital Images, Inc.
$39,233
4/29/2011
5/2/2011
International Coal Group, Inc.
$231,276
6/21/2011-8/22/2011
8/23/2011
PharMerica Corp.
$1,517,092
4/16/2012-4/20/2012
5/1/2012
Collective Brands, Inc.
$360,775
5/14/2012-10/1/2012
N/A
“Company A”
N/A
9/20/2012-9/25/2012
9/27/2012
Sealy Corporation
$14,509
1/31/2013-2/15/2013
2/20/2013
Officemax Inc.
$573,332
APPROX. TOTAL ILLICIT PROFITS
$5,673,682
15-020 ###
Defense counsel: James Froccaro Esq. Port Washington, N.Y.
Owner of Hudson County, New Jersey, Contracting Company Admits Rigging Selection Process for Union City ProjectsRead the Press Release
NEWARK, N.J. – The owner of a Guttenberg, New Jersey, contracting company today admitted rigging the selection process for projects run by the Union City Community Development Agency (UCCDA), causing losses of at least $120,000, U.S. Attorney Paul J. Fishman announced.
Leovaldo Fundora, 53, of Guttenberg, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of embezzling, stealing, purloining, and converting to his own use and the use of another, money from the U.S. Department of Housing and Urban Development (HUD).
According to documents in this case and statements made in court:
The UCCDA receives funding from HUD under a federal block grant that provides money for home improvement, sidewalk replacement and other projects. Between May 2007 and September 2011, Fundora owned Falcon Remodeling Inc., a general contracting company.
Fundora colluded with two UCCDA inspectors and two other contractors to attain HUD grant funds by having the contractors complete phony proposals with prices higher than those submitted by Falcon. Fundora then submitted these phony proposals and Falcon’s proposals to the UCCDA in order to improperly obtain home improvement projects and sidewalk replacement projects.
On two occasions in June 2010, Fundora submitted phony proposals from the other two contractors pricing sidewalk replacement projects at Kerrigan Avenue and 13th St. in Union City for $4,200. As a result, Falcon secured both projects for $3,900.
The charge to which Fundora pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is currently scheduled for April 22, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Amy Luria and J Imbert of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
15-013
Defense counsel: Raymond F. Flood Esq., Hackensack, New Jersey
Orthodox Jewish Rabbi Admits Conspiring to Travel to New Jersey to Violently Extort Divorce Consent from Reluctant HusbandRead the Press Release
TRENTON, N.J. - An Orthodox Jewish rabbi today admitted conspiring to travel to New Jersey to coerce a Jewish man to give his wife a religious divorce – referred to as a “get” – through threats of violence, U.S. Attorney Paul J. Fishman announced.
Martin Wolmark, 56, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to travel in interstate commerce to commit extortion.
According to documents filed in this case and statements made in court:
On Aug. 7, 2013, Wolmark, an ordained Orthodox Jewish rabbi, spoke with a woman and her brother about obtaining a Jewish divorce from the woman’s recalcitrant husband. A get is a divorce document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce. Unbeknownst to Wolmark, the woman and the brother were actually undercover FBI agents. During the conversation, which was recorded by law enforcement, Wolmark informed the agents that there were two ways to go about obtaining a get from such a recalcitrant husband, one of which was to “nail him.” Wolmark also told the agents that coercing the husband into giving a get could be expensive. He then recommended that the agents speak with his colleague, Mendel Epstein, who he knew had previously used violence to coerce recalcitrant husbands into giving gets to their wives. Wolmark then initiated a conference call with the agents and Mendel Epstein.
On Aug. 14, 2013, the agents met with Mendel Epstein at his home to discuss the case further. On Oct. 2, 2013, Wolmark convened a rabbinical court (a “beth din”) with Mendel Epstein and Jay Goldstein in his office in Suffern, New York. The purpose of this proceeding was to determine whether there were grounds under Jewish law to coerce the husband into giving the get. The female agent also attended and recorded the meeting. During this meeting, Mendel Epstein discussed openly the plan to kidnap and assault the purported husband in order to obtain the get.
On Oct. 9, 2013, a group of Wolmark’s conspirators – including Jay Goldstein, Moshe Goldstein, Avrohom Goldstein, Simcha Bulmash, Ariel Potash, Binyamin Stimler, and Sholom Shuchat – traveled from New York to a warehouse in Edison, New Jersey, with the intent of forcing the purported husband to give his wife a get by means of violence and threats of violence. Six of these coconspirators previously pleaded guilty to traveling to New Jersey to commit extortion.
The conspiracy count to which Wolmark pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for May 18, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
The pending charges and allegations against related defendants are merely allegations, and they are considered innocent unless and until proven guilty.
15-016
Defense counsel: Benjamin Brafman Esq., New York
Wolmark, Martin Information
Monmouth County, N.J., Man Sentenced to 87 Months in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. - A Wayside, New Jersey, man was sentenced today to 87 months in prison for using a computer in his home to distribute images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Nathan Brochstein, 41, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of distribution of child pornography. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Brochstein admitted making images and videos depicting child sexual abuse available online via peer-to-peer file sharing software. He also admitted possessing more than 600 images of child sexual abuse on his computer and external hard drive, which were seized from his residence in November 2012. Brochstein acknowledged that the images and videos of child pornography he distributed portrayed sadistic or masochistic conduct or other depictions of violence and included images of a prepubescent minor.
In addition to the prison term, Judge Cooper sentenced Brochstein to serve five years of supervised release.
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 John P. Woods, with the investigation leading to today’s sentencing. He also thanked the Ocean Township Police Department and the Monmouth County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office General Crimes Unit in Newark.
15-014Defense counsel: Robert Weir Esq., Red Bank, New Jersey
Group of Five Admit their Roles in Large-Scale Stolen Identity Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – Five people involved in an extensive scheme to obtain millions of dollars through fraudulently obtained tax refund checks issued by the U.S. Treasury pleaded guilty today in Newark federal court, U.S. Attorney Paul J. Fishman announced.
Julio C. Concepcion 49, of Passaic, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to steal government funds and one count of theft of government funds. Concepcion also pleaded guilty to separate information charging him with one count of conspiracy to commit wire fraud in connection with his involvement in a separate mortgage fraud scheme.
Concepcion’s two sons, Angel Concepcion-Vasquez, 30, and Julio Concepcion-Vasquez, 32, and two other defendants, Jose Zapata, 67, and Romy Quezada, 24, all of Passaic, also pleaded guilty to one count each of conspiracy to steal government funds.
Concerning the Stolen Identity Refund Fraud (SIRF) scheme, according to documents filed in this case and statements made in court:
Members of the conspiracy, from at least October 2009 through May 2013, obtained the personal identifying information, including the names and Social Security numbers, of other individuals, including residents of Puerto Rico. Conspirators filed with the IRS false and fraudulent income tax returns using the stolen identity information, which generated income tax refund checks to which the members of the conspiracy were not entitled. The funds from these refund checks were then routinely transferred between bank accounts controlled by members of the conspiracy. The SIRF scheme resulted in more than $2.5 million in losses to the U.S. Treasury.
Julio C. Concepcion admitted to obtaining these fraudulent refund checks and recruiting others to open bank accounts and deposit the checks, sometimes providing them with false identification in order to do so. Angel Concepcion-Vasquez, Julio Concepcion-Vasquez, Quezada and Zapata each admitted to opening bank accounts into which these fraudulently obtained refund checks were deposited.
Concerning the mortgage fraud information, according to filed documents and statement made in court:
From January 2008 through March 2010, Concepcion conspired with others to commit wire fraud, specifically mortgage fraud. Once a conspirator purchased properties in New Jersey. Concepcion and others caused people to purchase the homes and receive mortgages for the homes either by using false identification documents or without the intent to live in the homes or pay off the mortgages.
Concepcion and others were able to cause parties to issue mortgages for the properties in reliance on fraudulent documents and material misrepresentations. The Federal Housing Administration (FHA) insured some of these mortgages.
As a result of these actions, the FHA and parties who approved the mortgages have lost more than $2.5 million.
The conspiracy to steal government funds charge is punishable by a maximum penalty of five years in prison. The theft of government funds charge is punishable by a maximum potential penalty of 10 years in prison. The conspiracy to commit wire fraud charge is punishable by a maximum penalty of 20 years in prison. All charges are also punishable by a fine of up to $250,000, or twice the gain or loss caused by the offense. Sentencings for all defendants are scheduled for May 7, 2015.
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; 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; special agents of the U.S. Secret Service, under the direction of Assistant Special Agent in Charge Carl Agnelli; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigations leading to today’s pleas.
The government is represented by Assistant U.S. Attorneys Andrew Kogan of the Economic Crimes Unit and Cari Fais and Melissa Wangenheim of the General Crimes Unit.
14-015
Defense counsel:
Julio Cesar Concepcion: Genesis Peduto Esq. North Bergen, N.J.
Julio Concepcion-Vasquez: David Fromkin Esq., Wallington, N.J.
Angel Concepcion-Vasquez: Anthony Fusco Jr. Esq., Passaic, N.J.
Romy Quezada: Stephen Dratch Esq., Livingston, N.J.
Jose Zapata: Elizabeth Smith Esq., Mendham, N.J.Morris County, New Jersey, Man Charged with Distributing Sexually Explicit Images of ChildrenRead the Press Release
NEWARK, N.J. – Special agents of the FBIand officers of the Madison Police Department (MPD) arrested a Morris County, New Jersey, man at his home this morning for allegedly distributing sexually explicit images of children from his home computer, U.S. Attorney Paul J. Fishman announced.
Michael Hodukavich, 24, is charged by complaint with one count of distributing images of child sexual abuse over the Internet. He appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $100,000 bond.
According to the criminal complaint filed today:
On Nov. 20 and 21, 2014, Hodukavich distributed videos and images depicting child sexual abuse on the Internet via peer-to-peer file sharing software, which allowed others access to the material in shared directories. An undercover agent discovered and downloaded the images and videos, and the username and IP address of the sharer was traced back to Hodukavich’s residence.
The distribution count carries a minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and the MPD, under the direction of Chief Darren Dachisen, Chief of Police, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Melissa M. Wangenheim of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
15-012
Defense counsel: James S. Friedman Esq., NewarkHodukavich, Michael Complaint
Former Princeton, N.J. Youth Soccer Coach Sentenced to Three Years in Prison for Possessing Images of Sexually Exploited ChildrenRead the Press Release
TRENTON, N.J. – A former Princeton, New Jersey, youth soccer coach was sentenced today to 36 months in prison for possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Jorge A. Roman, 50, previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with one count of possession of child pornography. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:On May 16, 2013, Roman possessed 600 or more images of child sexual abuse on various DVDs, computers or other digital media at his residence in Princeton. Some of the images in Roman’s possession were images of prepubescent minors engaged in sexually explicit conduct.
In addition to the prison term, Judge Pisano sentenced Roman to serve five years of supervised release.U.S. Attorney Fishman credited 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.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office in Trenton.
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Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, TrentonCorrections Officer Admits Smuggling Cell Phones into Essex County Correctional Facility for Cash BribesRead the Press Release
TRENTON, N.J. – An Essex County Corrections Officer today admitted her involvement in a scheme to smuggle contraband, including cell phones, into the Essex County Correctional Facility, a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
Channel Lespinasse, 26, of Florham Park, New Jersey, pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging her with one count of conspiring to commit extortion under color of official right.
According to documents filed in this and related cases and statements made in court:
On multiple occasions between August 2013 and January 2014, Lespinasse delivered contraband to federal pretrial detainees at the Essex County Correctional Facility in exchange for cash bribes. On one occasion in November 2013, Lespinasse agreed to deliver a cell phone to an inmate in exchange for $1,000. A conspirator retrieved the cell phone and the $1,000 payment from an individual outside of the facility – actually an undercover FBI agent – and gave the phone, along with a portion of the payment, to Lespinasse, who then delivered the contraband to the inmate.
The conspiracy charge to which Lespinasse pleaded guilty carries a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 7, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and investigators with the Internal Affairs Division of Essex County Correctional Facility, under the leadership of Essex County Corrections Director Al Ortiz, with the investigation leading to today’s guilty plea.
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 office’s Organized Crime/Gangs Unit in Newark.
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Defense counsel: Paulette Pitt Esq., Woodbridge, New JerseyCanadian Man Charged in First Federal Securities Fraud Prosecution Involving ‘Layering’Read the Press Release
A Canadian man was arrested today for allegedly orchestrating a large-scale, international stock market manipulation scheme in the first federal prosecution of securities fraud involving a high-frequency trading strategy known as “layering,” U.S. Attorney Paul J. Fishman for the District of New Jersey announced.
Aleksandr Milrud, 50, of Ontario, Canada, and Aventura, Florida, is charged by complaint with one count of conspiracy to commit securities fraud and one count of wire fraud. FBI agents arrested Milrud at his residence in Aventura this morning. He is scheduled to appear this afternoon before U.S. Magistrate Judge John J. O’Sullivan in federal court in Miami.
“As our complaint shows, illegally manipulating markets to cause even small price changes can yield large gains when done on a massive scale,” U.S. Attorney Fishman said. “The defendant and his far-flung network of conspirators operated an international scheme in which they generated millions of dollars in illicit profits for themselves with artificial trade orders executed at high speeds.”
“As alleged in the complaint, Mildrud was the engineer behind a sophisticated, international, groundbreaking market manipulation scheme that utilized an illicit, high-speed trading strategy to execute trades,” said Special Agent in Charge Aaron T. Ford of the FBI in Newark, New Jersey. “The losses to investors due to this innovative fraud could be in the millions. The FBI will continue to identify and investigate frauds such as this one, in order to ensure a level playing field for all investors.”
According to the complaint unsealed today:
Milrud allegedly orchestrated an extensive and sophisticated international layering scheme that, according to him, yielded millions of dollars in illicit profits. Layering, also known as “spoofing,” is a form of manipulative, high-speed stock trading in which a trader places non-bona fide orders to buy or sell securities and then quickly cancels them before they are executed. The purpose of these non-bona fide orders is to artificially move the price of security up (in the case of non-bona fide buy orders) or down (in the case of non-bona fide sell orders) and to induce other market participants to buy or sell a security at a price not representative of actual supply or demand. While the non-bona fide orders are pending, the trader simultaneously executes trades in an attempt to profit from the artificial movement of the share price that the trader has created. Milrud’s layering scheme targeted U.S. securities markets and involved high-speed trading through numerous brokerage accounts and foreign traders that Milrud recruited and managed in China and Korea.
In January 2013, Milrud solicited the assistance of an individual who owned an off-shore broker-dealer (the Foreign-BD) but who, unbeknownst to Milrud, was a cooperating witness (CW) with law enforcement. Milrud sought to open a trading account at the Foreign-BD for use in his layering scheme. Over the course of several consensually recorded calls and meetings between the CW, Milrud and others, Milrud explained his illegal trading strategies in detail. Milrud said he controlled approximately 60 percent of all China-based traders engaged in layering, that his traders used various trading accounts that were not tied to Milrud in any manner and that the layering scheme generated millions of dollars in illicit profits. Milrud explained that to enable his traders to place and cancel many orders quickly, he worked with a software company on programming “hotkeys” – shortcuts for placing and cancelling multiple orders quickly with few keystrokes. Milrud also explained his efforts to avoid detection by law enforcement and regulators, including not discussing business on the phone, communicating through third party liaisons, and using multiple trading and clearing firms and accounts to execute a single securities transaction, a practice he described as “shredding.”
On Aug. 27, 2014, Milrud met the CW at the offices of the Foreign-BD. The meeting was video and audio recorded by law enforcement. Milrud explained his layering scheme in more detail. Milrud stated that overseas stock traders who he controlled simultaneously utilized at least two trading accounts to execute the layering scheme; one account was used to conduct the manipulative layering trading (the Layering Account), which Milrud referred to as the “dirty work,” and another “clean” account (the Profit Account) was used to buy or sell the manipulated stock at a profit during the small window of time in which the stock price had been artificially moved by the “dirty” activity in the Layering Account. According to Milrud, his foreign traders logged into these accounts from different computers and different internet protocol (IP) addresses so that it would not appear as if the same individual was trading through the two accounts and to evade automated fraud detection systems established by the trading platforms. After explaining his manipulative trading strategy, Milrud said, “Regular trading. If I didn’t tell you what I just told you, it would seem like regular trading – you would not know nothing of what I do.” The CW replied, “Will look just like regular buying and selling?” Milrud responded, “Exactly. One hundred percent kosher. If I didn’t tell you everything behind it, you have no way of [knowing].”
During the Aug. 27, 2014, meeting, Milrud agreed to log into his trading platform using the CW’s computer to show the CW his traders’ activity in real time. The CW had been provided by law enforcement with a laptop computer (the FBI Computer), which included software that recorded all activity and keystrokes on the computer. Milrud logged into and remotely accessed his trading system using the FBI Computer. According to Milrud, his overseas traders were controlling the orders and trades that he and the CW were observing on the FBI Computer. The CW then observed multiple real time trades in a number of different securities in both the Layering and Profit Accounts, and orders being placed and cancelled, while Milrud narrated.
According to Milrud’s statements to the CW during a consensually recorded call on Dec. 15, 2014, the scheme could generate anywhere from $1 million to $50 million per month and had yielded approximately $600,000 in a single day in recent weeks. The investigation is ongoing and law enforcement continues to investigate the brokerage accounts, trader identification numbers that Milrud used to carry out the scheme and the full scope of the illicit profits.
The conspiracy count with which Milrud is charged carries a statutory maximum sentence of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud count carries a statutory maximum sentence of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s arrest and complaint. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Daniel M. Hawke, for its role in the case.
The government is represented by Chief Gurbir S. Grewal and Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Economic Crimes Unit .
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Canadian Man Charged in First Federal Securities Fraud Prosecution Involving 'Layering'Read the Press Release
Scheme Targeted U.S. Securities Markets and Involved Complex Web of Brokerage Accounts, Off-Shore Entities and High-Speed Trading by Stock Traders in China and Korea
NEWARK, N.J. – A Canadian man was arrested today for allegedly orchestrating a large-scale, international stock market manipulation scheme in the first federal prosecution of securities fraud involving a high-frequency trading strategy known as “layering,” U.S. Attorney Paul J. Fishman announced.
Aleksandr Milrud, 50, of Ontario, Canada, and Aventura, Florida, is charged by complaint with one count of conspiracy to commit securities fraud and one count of wire fraud. FBI agents arrested Milrud at his residence in Aventura this morning. He is scheduled to appear this afternoon before U.S. Magistrate Judge John J. O’Sullivan in Miami federal court.“As our complaint shows, illegally manipulating markets to cause even small price changes can yield large gains when done on a massive scale,” U.S. Attorney Fishman said. “The defendant and his far-flung network of conspirators operated an international scheme in which they generated millions of dollars in illicit profits for themselves with artificial trade orders executed at high speeds.”
“As alleged in the complaint, Mildrud was the engineer behind a sophisticated, international, groundbreaking market manipulation scheme that utilized an illicit, high-speed trading strategy to execute trades,” Aaron T. Ford, FBI Special Agent in Charge, Newark, said. “The losses to investors due to this innovative fraud could be in the millions. The FBI will continue to identify and investigate frauds such as this one, in order to ensure a level playing field for all investors.”
According to the complaint unsealed today:
Milrud allegedly orchestrated an extensive and sophisticated international layering scheme that, according to him, yielded millions of dollars in illicit profits. “Layering,” also known as “spoofing,” is a form of manipulative, high-speed stock trading in which a trader places non-bona fide orders to buy or sell securities and then quickly cancels them before they are executed. The purpose of these non-bona fide orders is to artificially move the price of security up (in the case of non-bona fide buy orders) or down (in the case of non-bona fide sell orders) and to induce other market participants to buy or sell a security at a price not representative of actual supply or demand. While the non-bona fide orders are pending, the trader simultaneously executes trades in an attempt to profit from the artificial movement of the share price that the trader has created. Milrud’s layering scheme targeted U.S. securities markets and involved high-speed trading through numerous brokerage accounts and foreign traders that Milrud recruited and managed in China and Korea.
In January 2013, Milrud solicited the assistance of an individual who owned an off-shore broker-dealer (the “Foreign-BD”) but who, unbeknownst to Milrud, was a cooperating witness (“CW”) with law enforcement. Milrud sought to open a trading account at the Foreign-BD for use in his layering scheme. Over the course of several consensually recorded calls and meetings between the CW, Milrud, and others, Milrud explained his illegal trading strategies in detail. Milrud said he controlled approximately 60 percent of all China-based traders engaged in layering, that his traders used various trading accounts that were not tied to Milrud in any manner, and that the layering scheme generated millions of dollars in illicit profits. Milrud explained that to enable his traders to place and cancel many orders quickly, he worked with a software company on programming “hotkeys” – shortcuts for placing and cancelling multiple orders quickly with few keystrokes. Milrud also explained his efforts to avoid detection by law enforcement and regulators, including not discussing business on the phone, communicating through third party liaisons, and using multiple trading and clearing firms and accounts to execute a single securities transaction, a practice he described as “shredding.”
On August 27, 2014, Milrud met the CW at the offices of the Foreign-BD. The meeting was video and audio recorded by law enforcement. Milrud explained his layering scheme in more detail. Milrud stated that overseas stock traders who he controlled simultaneously utilized at least two trading accounts to execute the layering scheme; one account was used to conduct the manipulative layering trading (the “Layering Account”), which Milrud referred to as the “dirty work,” and another “clean” account (the “Profit Account”) was used to buy or sell the manipulated stock at a profit during the small window of time in which the stock price had been artificially moved by the “dirty” activity in the Layering Account. According to Milrud, his foreign traders logged into these accounts from different computers and different internet protocol (IP) addresses so that it would not appear as if the same individual was trading through the two accounts and to evade automated fraud detection systems established by the trading platforms. After explaining his manipulative trading strategy, Milrud said, “Regular trading. If I didn’t tell you what I just told you, it would seem like regular trading – you would not know nothing of what I do.” The CW replied, “Will look just like regular buying and selling?” Milrud responded, “Exactly. One hundred percent kosher. If I didn’t tell you everything behind it, you have no way of [knowing].”During the August 27, 2014, meeting, Milrud agreed to log into his trading platform using the CW’s computer to show the CW his traders’ activity in real time. The CW had been provided by law enforcement with a laptop computer (the “FBI Computer”), which included software that recorded all activity and keystrokes on the computer. Milrud logged into and remotely accessed his trading system using the FBI Computer. According to Milrud, his overseas traders were controlling the orders and trades that he and the CW were observing on the FBI Computer. The CW then observed multiple real time trades in a number of different securities in both the Layering and Profit Accounts, and orders being placed and cancelled, while Milrud narrated.
According to Milrud’s statements to the CW during a consensually recorded call on Dec. 15, 2014, the scheme could generate anywhere from $1 million to $50 million per month and had yielded approximately $600,000 in a single day in recent weeks. The investigation is ongoing and law enforcement continues to investigate the brokerage accounts, trader identification numbers that Milrud used to carry out the scheme, and the full scope of the illicit profits.
The conspiracy count with which Milrud is charged carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s arrest and complaint. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Daniel M. Hawke, for its role in the case.
The government is represented by Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit, and Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
15-009
Former Jersey City Police Officer Sentenced to Three Years in Prison for Cigarette Cargo Theft and ExtortionRead the Press Release
TRENTON, N.J. – A former Jersey City police officer was sentenced today to 36 months in prison for his role in stealing more than half a million cigarettes from a trailer and extorting $20,000 from a drug courier who turned out to be an undercover FBI agent, U.S. Attorney Paul J. Fishman announced.
Mario Rodriguez, 40, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of cargo theft and one count of conspiracy to commit Hobbs Act extortion under color of official right. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On July 3, 2013, Rodriguez and an individual working for the FBI as a confidential informant (CI) drove to a warehouse in Secaucus, New Jersey, to break into a trailer, steal cigarettes and sell the stolen goods to the CI’s associate. Law enforcement agents had previously parked the trailer at the warehouse and established surveillance of the area.
After using bolt-cutters to cut the lock off of the trailer, Rodriguez and the CI loaded 50 cases containing approximately 600,000 cigarettes and six televisions from the trailer into their vehicle. As they drove the stolen items to a parking lot in Staten Island, New York, Rodriguez made several phone calls seeking buyers for the TVs.
The pair met the CI’s associate – actually an undercover officer – in the parking lot to get the $5,000 payment for the cigarettes. Rodriguez kept $3,000 of the cash and three of the TVs.
On July 10, 2013, Rodriguez, the CI and an undercover law enforcement agent met in New Jersey and discussed the possibility of robbing a drug courier, who was actually another undercover officer. On July 24, 2013, the group met again in Staten Island to discuss the plan. The undercover officer told Rodriguez the courier would be delivering cocaine to them that day in exchange for a $20,000 payment. Rodriguez suggested a Jersey City mall parking lot due to an absence of surveillance cameras and called his associate, Anthony Roman, 48, of Jersey City, who was not a law enforcement officer, to help him with the robbery. Roman was charged with one count of Hobbs Act extortion.
Later that day, Rodriguez and Roman drove an SUV to the location where the CI and the drug courier were parked. Law enforcement agents had already established surveillance and staged the car containing $20,000 cash in a plastic bag. Rodriguez and Roman approached the car and identified themselves as law enforcement officers who were investigating the CI. They pretended to arrest the CI, threatened to arrest the drug courier and took the cash.
Later that day, Rodriguez, the CI and the undercover agent met in a hotel room at a Pennsylvania casino to split the cash.
In addition to the prison term, Judge Thompson sentenced Rodriguez to serve three years of supervised release and ordered him to pay a $2,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Special Investigations Unit of the Jersey City Police Department, under the direction of Acting Chief Joseph Connors; the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory; and criminal investigators of the U.S. Attorney’s Office with the investigation leading to the charges. He also thanked the Bayonne Police Department, Waterfront Commission of New York Harbor, IRS-Criminal Investigation, U.S. Department of Labor Office of Inspector General, and the N.J. State Commission of Investigation for their significant contributions to the investigation.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
The charges against Roman remain pending. They are merely accusations, and he remains innocent unless and until proven guilty.
15-008
Defense counsel: Brian J. Neary Esq., Hackensack, New Jersey
Man Who Fled Newark Bank Robbery in Taxi Sentenced to Two Years in PrisonRead the Press Release
NEWARK, N.J. - An Essex County, New Jersey, man who robbed a New York Community Bank in Newark and fled by hailing a cab was sentenced today to 24 months in prison, U.S. Attorney Paul J. Fishman announced.
Willie Chestnut Jr., 62, of Newark, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of bank robbery. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Chestnut robbed the New York Community Bank in Newark on Oct. 11, 2013, by intimidating the teller and another bank employee who attempted to intercede. He approached the teller and told her he needed to make a withdrawal. After the teller handed him a withdrawal slip, Chestnut demanded bills from the top teller drawer.
Chestnut was arrested by officers of the Newark Police Department shortly after fleeing the scene in a taxi cab, wearing the same clothes he wore during the robbery and with the stolen money and the withdrawal slip in his pocket.
In addition to the prison terms, Judge Hayden sentenced Chestnut to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s sentencing. He also thanked the Newark Police Department for its contribution.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office General Crimes Unit in Newark.
15-006
Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender, Newark
Leader of Multi-State Scheme to Obtain Real Driver's Licenses with Fraudulent Documents Sentenced to Six Years in PrisonRead the Press Release
Criminal Enterprise Provided Illegal Aliens and Others with Stolen Immigration Documents, Falsified Visas, Passports, Utility Bills and Bank Statements
NEWARK, N.J. – The leader of a criminal organization who ran a multi-state scheme to fraudulently obtain driver’s licenses for illegal aliens and other ineligible individuals was sentenced today to 72 months in prison, U.S. Attorney Paul J. Fishman announced.
Young-Kyu Park, 58, formerly a resident of Fort Lee, New Jersey, and later a resident of Los Angeles, California, previously pleaded guilty before U.S. District Judge Faith S. Hochberg to Counts One through Three of an indictment charging him with conspiracy to produce identification and false identification documents; conspiracy to steal government property and transport stolen property in interstate commerce, and conspiracy to commit money laundering. Judge Hochberg imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Park was the leader of a criminal enterprise (the Park Criminal Enterprise) operating in Palisades Park, New Jersey, Fort Lee and in other states. He was one of 22 people charged in June 2012 with allegedly providing a suite of unlawful services to individuals illegally residing in the United States, including fraudulently obtaining driver's licenses, and investor and student visas. Federal agentsarrested defendants in New Jersey, New York, California, Nevada, Virginia, and Georgia B including a contract employee of U.S. Citizenship and Immigration Services (USCIS) charged with and later convicted of stealing and providing forms used to aid in the scheme.
The Park Criminal Enterprise illegally obtained driver's licenses genuinely issued by New Jersey, New York, Virginia, Nevada, and elsewhere. To do so, it acquired, created, and counterfeited a variety of documents for sale to customers. Members of the Park Criminal Enterprise also escorted customers to various state motor vehicle agencies and coached them on obtaining the licenses. In return, customers each paid the Park Criminal Enterprise a fee of $3,000 to $4,500 for the unlawful services.
Park fraudulently obtained, completed and sold genuine I-797 forms for customers to get licenses. An I—797 form is used by the federal government B including USCIS, a division of the Department of Homeland Security B to communicate with others or convey an immigration benefit. State agencies that issue driver’s licenses rely on these forms to verify the authenticity of an applicant’s foreign passport and to verify the applicant’s lawful presence in the United States. One version of this form can be used to show eligibility for in-state college tuition.
The Park Criminal Enterprise also altered and counterfeited other immigration documents, including passports, and created and provided fictitious documents to customers B such as fictitious utility bills and bank statements used to establish residency requirements.
In addition to the prison term, Judge Hochberg sentenced Park to two years of supervised release, fined him $10,000 and ordered forfeiture of $1.2 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge John P. Woods; the Department of Homeland Security, Office of Inspector General, Special Agent in Charge Gregory K. Null of the Philadelphia field office; and U.S. Citizenship and Immigration Services, under the direction ofNew Jersey District Director John E. Thompson, with the investigation leading to today’s sentencing.
U.S. Attorney Fishman noted the work of the N.J. Motor Vehicle Commission, under the direction of Chief Administrator Raymond P. Martinez; the Bergen County Prosecutor's Office, under the direction of Prosecutor John L. Molinelli; and the N.J. State Police, under the direction of Colonel Joseph R. Fuentes, for their assistance.
He also thanked the FBI field offices in Los Angeles, Las Vegas, New York, Atlanta, and Richmond, Va., as well as U.S. Attorney's Offices for the District of Nevada and the Central District of California for their support.
The government is represented by Assistant U.S. Attorneys Anthony Moscato, Lisa M. Colone and David M. Eskew of the U.S. Attorney’s Criminal Division in Newark.
15-004
Defense counsel: Mark Waecker, Los Angeles, Calif.
Insurance Adjuster Sentenced to 32 Months in Prison for Defrauding NJ Turnpike Authority, Insurance Companies, of $900,000Read the Press Release
NEWARK, N.J. – The owner of a New Jersey-based insurance adjusting company was sentenced today to 32 months in prison for his role in a scheme to defraud the N.J. Turnpike Authority (NJTA) and various insurance companies of at least $900,000, U.S. Attorney Paul J. Fishman announced.
Robert Napolitano, 55, of Clifton, New Jersey, owner of Dawn to Dusk LLC, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with using the mail to facilitate a scheme to defraud the NJTA and insurance companies through false and fraudulent pretenses, representations and promises. Judge McNulty imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
In October 2011, Napolitano reached an agreement with Gerardo Blasi, 56, of Clifton, New Jersey, a claims manager for the NJTA. It was Blasi’s job to negotiate and recover the costs of repairs from insurance companies of motorists who caused damage to property belonging to the NJTA. As part of the agreement, it was Napolitano’s responsibility to evaluate the damage caused by the insured motorist, create an estimate of the cost to repair the damage, and negotiate with the particular insurance company to arrive at the repair amount. Napolitano would request that the checks issued by the insurance companies for the costs of repairing the damage be made payable to Dawn to Dusk and mailed to Napolitano’s business.
Once Napolitano received these checks he would keep a portion of the proceeds for himself, provide Blasi with a share of the proceeds, and sometimes send the remaining amount to the NJTA as payment for the damages caused by the insured motorist. However, on several occasions, he and Blasi simply kept all of the proceeds. As a result of this scheme, Napolitano and others defrauded the NJTA and various insurance companies of approximately $900,000.
In addition to the prison term, Judge McNulty sentenced Napolitano to serve three years of supervised release.
Blasi previously pleaded guilty to his role in the scheme and was sentenced on Nov. 12, 2014, to 45 months in prison and three years of supervised release.U.S. Attorney Fishman credited special agents from the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentence. He also thanked the N.J. Turnpike Authority, under the direction of Veronique Hakim, for its cooperation during the investigation.
The government is represented by Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office, Special Prosecution’s Division.
15-005
Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark