District of New Jersey
Press releases recorded for this federal judicial district.
Camden, N.J., Man Sentenced to Two Years in Prison for Making Fake Green CardsRead the Press Release
CAMDEN, N.J. – A Camden, New Jersey, man was sentenced today to 24 months in prison for his role in a scheme to produce and sell fake government documents, U.S. Attorney Paul J. Fishman announced.
Domingo Luna, 34, aka “Morro,” previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of making fake identification documents and one count of willfully entering the United States illegally. Judge Rodriguez imposed the sentence today in Camden federal court.
Luna was arrested by special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) on Dec. 12, 2013. A Mexican citizen not legally in the United States, he has been held in ICE administrative custody since that time.
According to documents filed in this case and statements made in court:
Luna, who previously convicted of theft in 2001 and later convicted of aggravated assault with bodily harm in 2011, was deported from the United States on May 29, 2012. During his plea hearing Luna admitted to willfully entering the United States after his 2012 deportation.
Federal law enforcement officers learned that a man nicknamed “Morro” was producing and selling false and fraudulent U.S. Social Security cards, permanent residence cards and driver’s licenses from a location in Camden. From early to mid-December 2013, “Morro,” who was later identified as Luna, sold an undercover law enforcement officer two fake Social Security cards, a fraudulent permanent residence card and a Pennsylvania driver’s license. Luna took pictures of the officer with a digital camera and produced the documents at the Camden address. At the time of his arrest, law enforcement officers found evidence of a sophisticated fraudulent document-making operation, including computer equipment, a digital camera, a laminating machine and at least 25 fake cards in Luna’s residence.
In addition to the prison term, Judge Rodriguez sentenced Luna to three years of supervised release.
U.S. Attorney Fishman credited special agents of ICE HSI, under the direction of Acting Special Agent in Charge John P. Woods with the investigation leading to today’s arrests.The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Tom Young Esq., Assistant Federal Public Defender, Camden
15-007Bergen County, N.J. Man Sentenced to 18 Months in Prison for Tax EvasionRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 18 months in prison for tax evasion, U.S. Attorney Paul J. Fishman announced.
Mikhail Goldman, 63, of Fort Lee, New Jersey, previously pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to a one-count information charging him with tax evasion for failing to report a total of $600,000 in income that he received between 2007 and 2011. Goldman was sentenced to 18 months in prison by United States District Judge Faith S. Hochberg.
According to documents filed in this case and statements made in court:
Goldman received $12 million in checks written to various companies controlled by him, which he cashed for a fee of 5 percent of the face amount of each check. Goldman then failed to disclose those retained fees of $600,000 on his income tax returns to avoid paying the taxes he owed.In addition to the prison term, Judge Hochberg sentenced Goldman to three years of supervised release and ordered Goldman to pay over $120,000 in restitution to the United States.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s sentence.
The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
14-003
Defense counsel: George Farkas Esq., Brooklyn, New York
North Jersey Doctor Sentenced to One Year of House Arrest and Three Years' ProbationRead the Press Release
Admitted Accepting Bribes for Test Referrals to Clinical Laboratory
NEWARK, N.J. – A doctor with a practice in Paterson, New Jersey, was sentenced today to three years’ probation, which includes one year of house arrest with electronic monitoring, for accepting more than $200,000 in bribes from Parsippany, New Jersey-based Biodiagnostic Laboratory Services LLC (BLS) as part of a long-running scheme operated by the lab, its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
Claudio Dicovsky, 52, of Fort Lee, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes. Judge Chesler imposed the sentence today in Newark federal court.
Including Dicovsky, 33 people – 22 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 this and other cases and statements made in court:
Dicovsky admitted he agreed with BLS president David Nicoll, 40, of Mountain Lakes, New Jersey, to accept bribes in exchange for his referral of blood specimens. To disguise those bribes, Dicovsky and BLS entered into a sham lease agreement and a sham service agreement in which the monthly bribe payments of more than $5,000 were characterized as “lease” and “service” payments. While the lease agreement purported to be for 1,000 square feet of space, little or no space was allocated to BLS in Dicovsky’s medical office in Paterson. Between November 2006 and August 2009, Dicovsky received more than $224,000 in bribe payments from BLS, and BLS made more than $800,000 through testing on blood specimens referred by Dicovsky.
In addition to probation and house arrest, Judge Chesler fined Dicovsky $75,000 and sentenced him to 1,500 hours of community service. He must also forfeit more than $222,000.
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 Thomas O’Donnell; IRS– Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; 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 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 $620 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.
15-002
Defense counsel: Gerald Miller Esq., Jersey City, N.J.
Former Rockaway Township School Superintendent Pleads Guilty to Attempted Witness TamperingRead the Press Release
NEWARK, N.J. – The former Rockaway Township superintendent of schools today admitted instructing a witness to lie to the FBI about $4,000 that the witness had previously given to him, U.S. Attorney Paul J. Fishman announced.
Gary Vitta, 63, of Denville, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of attempted witness tampering.
According to the documents filed in this case and statements made in court:
Vitta was the superintendent of the Rockaway Township School District from 2006 to 2011. He dealt with brokers who provided insurance brokerage services to the district and were paid a commission for the insurance contracts they negotiated. At a Vitta family event, Vitta accepted approximately $4,000 in cash from three of the brokers who had provided insurance brokerage services. Shortly after accepting the $4,000, Vitta returned the $4,000 to one of the insurance brokers. Then, in December 2013, Vitta again accepted the $4,000 from the same insurance broker to whom he had returned it.
After accepting the $4,000, Vitta was interviewed by law enforcement agents with the FBI about any benefits that he may have received from insurance brokers who provided brokerage services to the school district. Vitta failed to mention the $4,000 that he had recently received from an insurance broker, or the $4,000 that he had previously received from three insurance brokers at a family event. Following the interview, Vitta contacted the insurance broker who had repaid him the $4,000 in December 2013. He met the insurance broker at a restaurant in Denville, New Jersey, where they first discussed whether the broker was wearing a wire. Vitta told broker that he had recently been approached by FBI agents. He handed the broker a note instructing the broker to lie to the FBI about the $4,000 that the broker had given to him in December 2013. He instructed the broker to lie about the $4,000 that Vitta had previously received at a family event. He also confirmed to this broker that one of the other insurance brokers who had paid him money at that family event also would lie to the FBI if questioned about that payment.
The witness tampering charge to which Vitta pleaded guilty carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is 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 in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and Lee M. Cortes Jr. of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
15-001
Defense counsel: Henry E. Klingeman Esq., NewarkMauritius Man Charged with Abusive Sexual Contact of a Sleeping Woman on a Cruise ShipRead the Press Release
NEWARK, N.J. – A Mauritius man is scheduled to appear in Newark federal court for allegedly engaging in abusive sexual contact with a sleeping woman aboard a cruise ship, U.S. Attorney Paul Fishman announced.
Karan Seechurn, 25, was detained upon arrival in Bayonne, New Jersey, early on Dec. 27, 2014, and arrested by agents of the FBI. He is charged by complaint with abusive sexual contact and is scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the complaint:
Seechurn was an employee of the cruise line and was responsible for restocking the minibars located in passengers’ rooms. In order to conduct this duty, he was provided with a key that gave him access to passengers’ rooms. On Dec. 23, 2014, he allegedly used this key to access passengers’ rooms when he was not authorized or permitted to do so. Seechurn entered a sleeping female passenger’s room without her knowledge and permission. She awoke to find Seechurn touching her genitalia and she pushed him off her. When she tried to leave the room, he pulled her back and threated to burn down the cruise ship if she told anyone.
The federal government has special maritime jurisdiction over sexual abuse cases, such as those that occur on cruise ships.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the charge.
The government is represented by Meredith Williams of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, Newark
Seechurn, Karan Complaint
Department of Justice Grantee Pays $105,000 to Settle False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – A company and its owner have agreed to pay $105,000 to settle allegations that they failed to properly account for grant money given to Justice Planners International, a joint venture created to provide juvenile detention center consulting services to Native American tribes, U.S. Attorney Paul J. Fishman and Michael Horowitz, Inspector General for the U.S. Department of Justice, announced today.
Mark Goldman of Atlanta, Georgia, and Mark Goldman Associates (MGA) have agreed to resolve allegations that they violated the federal False Claims Act. They have agreed to pay $105,000 to the United States to resolve the federal and civil claims.
According to documents filed in this case and statements made in court:
Beginning in October 2005 Goldman and MGA allegedly failed to properly account for $2,369,838 drawn from Justice Department grants. These funds were used by Goldman and his business partner, Justice Solutions Group, of Closter, New Jersey, to provide training and technical assistance to Native American tribes in planning and constructing correctional facilities. While there was no indication that Goldman and MGA failed to perform the services as required by the grants, they nevertheless failed to maintain books and records to satisfactorily account for the funds drawn down from those grants.
The civil settlement agreement is between the United States of America – acting through the U.S. Attorney’s Office for the District of New Jersey and on behalf of the U.S. Department of Justice Office of the Inspector General (DOJ OIG), and Goldman and MGA.
U.S. Attorney Fishman credited Special Agent in Charge M. Elise Chawaga of the DOJ OIG with the investigation leading to the settlement.
The government is represented by Special Litigation Counsel Anthony J. LaBruna of the U.S. Attorney’s Office Civil Division in Newark.
The claims settled by this agreement are allegations only; there have been no admissions of liability.
14-460
Defense counsel: Brian McEvoy Esq., Atlanta, Ga.
Bureau of Prisons Employee Admits Providing Mobile Phones to an Inmate at Federal Prison at Fort DixRead the Press Release
TRENTON, N.J. - A U.S. Bureau of Prisons employee today admitted providing two mobile phones to an inmate at Fort Dix Federal Correctional Institution (FCI Fort Dix), U.S. Attorney Paul J. Fishman announced.
Elizabeth M. Quinones, 30, of Willingboro, New Jersey, pleaded guilty before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court to an information charging her with one count of giving an inmate at FCI Fort Dix two mobile telephones.
According to documents filed in this case and statements made in court:
Quinones worked as a health services assistant at FCI Fort Dix, in Burlington County, New Jersey. Between May 2014 and June 2014, Quinones provided an FCI Fort Dix inmate with two mobile phones. Federal inmates housed at FCI Fort Dix are prohibited by federal statute from possessing mobile telephones.
The offense to which Quinones pleaded guilty is punishable by a maximum potential penalty of one year in prison and a $100,000 fine. Sentencing is scheduled for April 9, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Department of Justice Office of the Inspector General, New Jersey Area Office, under the direction of Special Agent in Charge Ronald G. Gardella, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Eric W. Moran of the U.S. Attorney’s Office Special Prosecutions Division in Trenton.
14-461
Defense Counsel: Mark W. Catanzaro Esq., Trenton, N.J.
Owner of Car Dealership Charged with Large-Scale FraudRead the Press Release
NEWARK, N.J. - A complaint charging the owner of a Ramsey, New Jersey, auto dealership with allegedly engaging in a pattern of fraudulent activity through his business has been unsealed, U.S. Attorney Paul J. Fishman announced today.
Afzal Khan, a/k/a “Bobby Khan,” 32, of Egg Harbor Township, New Jersey, was charged by complaint with one count of wire fraud. He is currently being sought by law enforcement.
According to the complaint unsealed today in Newark federal court:
From at least December 2013 through September 2014, Khan, through Emporio Motor Group, engaged in acts to defraud lenders to Emporio and customers of the dealership.
As part of his criminal activities, Khan obtained loans from the auto finance division of a large bank for cars that he never delivered, but for which the purchaser was still responsible. He also obtained loans from the bank for cars that were delivered, but for which neither he nor Emporio had title. As a result, the purchasers of these cars were liable for the loan, but could not register the vehicles. In addition, Khan offered to sell cars for individuals on consignment, and then neither returned the cars nor provided any money from car sales.
For example, Emporio submitted a loan application in February 2014 for approximately $150,000 in connection with the sale of a 2013 Rolls Royce. The victim who had intended to purchase the car had signed the necessary paperwork for the purchase and financing of the car, but never received the vehicle. Khan himself sent some loan payment checks – some of which he stopped or were returned for insufficient funds – but failed to pay the balance on the car. The true owner of the Rolls Royce told law enforcement that it had never even been sold to Khan or left the owner’s possession.
As a result of Khan’s actions, the bank is exposed to a potential loss of more than $1.7 million. To date, more than 75 individuals have filed complaints concerning Khan’s actions at Emporio.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000 or twice the gross profits to Khan or twice the gross loss suffered to the victims of 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; as well as officers of the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli, and the Borough of Ramsey Police Department, under the direction of Chief of Police Bryan H. Gurney, Chief of Police, with the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
14-458Khan, Afzal Complaint
South Jersey Man Sentenced to Six Hours in Jail for Shooting Four Species of Protected Hawks in his Residential NeighborhoodRead the Press Release
NEWARK, N.J. - A Somers Point, New Jersey, man was sentenced today to six hours in jail for killing, or attempting to kill, four different species of hawks protected by federal law, U.S. Attorney Paul J. Fishman announced.
Robert Losasso, 70, previously pleaded guilty before U.S. Magistrate Judge Steven C. Mannion to six counts of violating the Migratory Bird Treaty act for shooting the birds from his home. Judge Mannion imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Losasso admitted that he fatally shot or attempted to shoot red-tailed, sharp-shinned, red-shouldered and Cooper’s hawks on several occasions. These species are among the tens of thousands of birds of prey that migrate every year from Canada along the Atlantic Flyway through New Jersey. Losasso also admitted that he didn’t have any permit to shoot the birds.
The Migratory Bird Treaty Act is a statute that was enacted in 1918 and implements in the United States protections afforded migratory birds under several international conventions to which the United States is a party. Breeding populations of red-shouldered hawks are listed as endangered on the State of New Jersey’s Endangered and Threatened Wildlife list. Sharp-shinned hawks and populations of Cooper’s hawks also have special protections under New Jersey state law.
In addition to the incarceration, which will be served Jan. 5, 2015, Judge Mannion sentenced Losasso to 18 months of supervised release, during which time he may not possess any firearms. He must also pay a total of $4,350 in restitution to four wildlife rehabilitation facilities and perform 60 hours of community service at a wildlife facility.
In his plea agreement, Losasso must also pay more than $4,000 in restitution to the wildlife rehabilitation centers that incurred losses treating or euthanizing hawks injured as a result of his conduct.
U.S. Attorney Fishman credited special agents of U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Resident Agent in Charge Carmine Sabia, with the investigation leading to today’s sentencing. He also thanked the N.J. Division of Fish and Wildlife, Bureau of Law Enforcement, and the Somers Point Police Department for their roles in the case.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney's Office Health Care and Government Fraud Unit in Newark.
14-457
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, NewarkMorris County, New Jersey, Man Sentenced to 141 Months for Armed Bank RobberyRead the Press Release
NEWARK, N.J. – A Randolph, New Jersey, man was sentenced to 141 months in prison for robbing a bank at gunpoint, U.S. Attorney Paul J. Fishman announced today.
Rahman Fulton, 35, was previously convicted by a federal jury of one count of bank robbery and one count of using a firearm in furtherance of the bank robbery. Fulton was convicted after a two-week trial before U.S. District Judge Stanley R. Chester, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
Fulton was charged with robbing the PNC bank in Randolph May 25, 2012. Fulton entered the bank wearing a black cloth mask covering his head and face and holding a handgun. He demanded and received money from a bank teller. The bank teller slipped a GPS tracking device into the money she handed over to Fulton. The GPS data placed the tracking device in Fulton’s bedroom minutes after the robbery. He later lied to the police about his whereabouts during the robbery and made other incriminating statements to his girlfriend and girlfriend’s sister, including a call just 10 minutes after the robbery to someone that worked across the street from the bank asking them if they had heard about the robbery.
In addition to the prison term, Judge Chester sentenced Fulton to serve three years of supervised release.
U.S. Attorney Paul J. Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the charge. He also thanked the Randolph Township Police Department and Morris County Prosecutor’s Office for their contributions to the case.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Elizabeth Harris of the U.S. Attorney's Office General Crimes Unit in Newark.14-456
Defense counsel: Carol Gillen Esq. and K. Anthony Thomas Esq., Assistant Federal Public Defenders, NewarkFormer Law Firm Partner and her Husband Charged with Defrauding Two Law Firms and the Firms' Client of $5 MillionRead the Press Release
NEWARK, N.J. - A former partner of a prominent New York law firm and her husband were arrested by federal law enforcement officers this morning for allegedly engaging in a conspiracy to obtain millions of dollars through fraudulent activity, U.S. Attorney Paul Fishman announced.
Agents of IRS-Criminal Investigation and the Drug Enforcement Administration, arrested Keila Ravelo, 49, and Melvin Feliz, 50, of Englewood Cliffs, New Jersey, this morning on a complaint charging them with conspiracy to commit wire fraud. They are scheduled to make their initial appearance this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the complaint:
An investigation conducted jointly by the IRS and DEA revealed that from 2008 through July 2014, Ravelo and Feliz used two companies (Vendor 1 and Vendor 2) to fraudulently obtain money from two New York law firms (Law Firm 1 and Law Firm 2) where Ravelo previously worked. Ravelo worked as a partner at Law Firm 1 from at least 2008 to October 2010. She then joined Law Firm 2 as a partner and worked there from October 2010 to November 2014. Vendor 1 and Vendor 2 purported to provide litigation support services to both of those law firms.
Ravelo and Feliz either created or caused to be created both vendors, including having bank accounts opened in Vendor 1’s and Vendor 2’s names, and controlled those bank accounts. Ravelo and Feliz used Vendor 1 and Vendor 2 to fraudulently obtain money from Law Firm 1, Law Firm 2, and a client of both those firms by submitting invoices to both law firms for work that was not performed. Funds paid to Vendor 1 and Vendor 2 were allegedly used to pay the personal expenses of Ravelo and Feliz or were transferred to a joint account held by them. Checks were issued from accounts controlled by Ravelo and Feliz to certain individuals for allegedly performing litigation support work. Law enforcement officers interviewed some of these individuals, who stated that they never performed any legal or litigation support work for Vendor 1 and/or Vendor 2. Law firm employees who worked with Ravelo on matters allegedly supported by the vendors stated that they reviewed no work product produced by either Vendor 1 or Vendor 2. Individuals who opened the respective bank accounts for Vendor 1 and Vendor 2 said they did so at the request of either Ravelo or Feliz and then signed blank checks, which were given to Ravelo or Feliz.
The two law firms paid Vendor 1 and Vendor 2 more than $5 million. Ravelo, in her capacity as a partner at the law firms, approved many of the payments from the law firms to Vendor 1 and Vendor 2. The couple funneled the majority of the fraudulently obtained funds into their joint bank account and used the funds to pay for their personal expenses and investments, which included $250,000 in payments to a jewelry store.
Both law firms and the client have cooperated with the investigation.
The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to the defendants or twice the gross loss sustained by the victims.U.S. Attorney Fishman credited special agents of the DEA, Newark Division, under the 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 arrest.
The government is represented by Assistant U.S. Attorneys Andrew Kogan, Brian Urbano, Ronnell Wilson and Marion Percell, of the U.S. Attorney’s Office Criminal Division and Assistant U.S. Attorney David Foster of the U.S. Attorney’s Office Special Prosecution’s Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
14-455
Defense counsel:
Ravelo: Aidan O’Connor Esq., Hackensack, N.J., and Steve H. Sadow Esq., Atlanta, Ga.Feliz: Patrick Joyce Esq., New York
Genovese Organized Crime Family Soldier and Two Crime Family Associates Admit Racketeering ConspiracyRead the Press Release
Union Officials Admit Extorting Port Workers for Christmastime Tribute Payments
NEWARK, N.J. – Three North Jersey men today admitted conspiring to conduct or participate in the affairs of the Genovese organized crime family of La Cosa Nostra (the “Genovese family”) through a pattern of racketeering activity, including a conspiracy to extort members of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Stephen Depiro, 59, of Kenilworth, New Jersey, a Genovese family soldier, and two other Genovese family associates – Albert Cernadas, 79, of Union, New Jersey, former president of ILA Local 1235 and former ILA executive vice president; and Nunzio LaGrasso, 64, of Florham Park, New Jersey, former vice president of ILA Local 1478 and ILA representative – pleaded guilty today before U.S. District Judge Claire C. Cecchi in Newark federal court. All three pleaded guilty to Count One of the second superseding indictment charging them with racketeering conspiracy. Depiro admitted to predicate acts involving conspiracy to commit extortion and bookmaking. Cernadas and LaGrasso admitted to predicate acts involving conspiracy to commit extortion and multiple extortions.According to documents filed in this case and statements made in court:
Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235 and vice president of ILA Local 1478. Depiro also controlled a sports betting package that was managed by several others, through the use of an overseas sports betting operation.
During their guilty plea proceedings, Depiro, Cernadas and LaGrasso admitted their involvement in the Genovese family, including conspiring to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. Cernadas and LaGrasso admitted to carrying out multiple extortions of dockworkers. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation.
The racketeering charge to which Depiro, Cernadas and LaGrasso pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled as follows: Cernadas, Jan. 16, 2015; LaGrasso, March 9, 2015; and Depiro, March 10, 2015.U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
14-452
Defense counsel:
Depiro: Alyssa Cimino Esq., Fairfield, New Jersey
Cernadas: Joseph Hayden Esq., Roseland, New Jersey
LaGrasso: Michael Critchley, Sr., Esq., RoselandDepiro, Stephen et al. S2 Indictment
Defense Contractor Agrees to Pay $27.5 Million to Settle Overbilling AllegationsRead the Press Release
NEWARK, N.J. – Lockheed Martin Integrated Systems (LMIS) has agreed to pay $27.5 million to resolve allegations that it violated the False Claims Act by knowingly overbilling the government for work performed by LMIS employees who lacked required job qualifications.
The settlement was announced today by U.S. Attorney Paul J. Fishman for the District of New Jersey and Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division.
“U.S. forces rely on the goods and services provided by defense contractors, so it is imperative the government be able to rely on those contractors to adhere to the rules,” said U.S. Attorney Fishman. “This settlement should remind all who do business with the government that there is a price to pay for fudging the math.”
“Contractors that knowingly bill the government in violation of contract terms will face serious consequences,” said Acting Assistant Attorney General Branda. “The department will ensure that those who do business with the government, and seek taxpayer funds, do so fairly and in accordance with the applicable rules.”
LMIS is a subsidiary of Lockheed Martin Inc., which is headquartered in Bethesda, Maryland. The alleged labor mischarging occurred on the Rapid Response (CR2) contract and the Strategic Services Sourcing (S3) contract, both issued by the U.S. Army Communication and Electronics Command (CECOM). CECOM is located at Fort Monmouth, New Jersey, and at the Aberdeen Proving Group in Maryland. The purpose of the CR2 and S3 contracts is to provide rapid access to products and services to be provided to the Army in Iraq and Afghanistan. Individual task orders then are separately negotiated, based on these contracts, to quickly meet the needs of CECOM. LMIS allegedly violated the terms of the contracts by using under-qualified employees who were billed to the United States at the rates of more qualified employees. The overbilling allegedly resulted in greater profit for LMIS.
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and our partners to vigorously pursue alleged violations of the False Claims Act,” said Special Agent in Charge Craig W. Rupert of the DCIS Northeast Field Office. “All contractors doing business with the federal government are expected to abide by the acquisition rules no matter who they are. Investigations of such allegations are necessary to protect American taxpayers and our warfighters.”
This settlement was the result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the District of New Jersey, the Southern New Jersey Branch of the Defense Contract Audit Agency (DCAA) and the DCAA’s Mid-Atlantic Region's Comprehensive Labor Team and Investigative Support Team, the U.S. Army’s Criminal Investigative Command’s Major Procurement Fraud Unit and the DCIS.
The District of New Jersey was represented by Senior Litigation Counsel Anthony J. LaBruna Jr. of the U.S. Attorney’s Office Civil Division in Newark.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Two Members of Drug Trafficking Organization Admit Conspiring to Sell Heroin in South JerseyRead the Press Release
TRENTON, N.J. – Two members of a large-scale drug trafficking organization have admitted conspiring to distribute hundreds of grams of heroin throughout Monmouth and Ocean counties, U.S. Attorney Paul J. Fishman announced.
Valerie Resendes, 27, of Beachwood, New Jersey, and Rashawn Ramos, 37, of Perth Amboy, New Jersey, both pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court. Resendes pleaded guilty today to an information charging her with one count of conspiring to distribute heroin. On Dec. 16, 2014, Ramos pleaded guilty to an information charging him with one count of conspiring to distribute 100 grams or more of heroin and 500 grams or more of cocaine.In March 2014, 21 alleged members of the “Britt-Young DTO,” a drug trafficking organization named after its leaders Robert Britt and Rufus Young, were charged by criminal complaint with conspiring to distribute heroin. Of those 21 individuals, 10 have pleaded guilty.
According to documents filed in this case and statements made in court:
Resendes admitted that between February 2013 and March 2014, she conspired with Young and others to distribute heroin in Ocean and Monmouth counties. During this time, Resendes possessed and sold more than 400 grams of heroin.
Ramos admitted that from November 2013 through March 2014, he received numerous packages of heroin and cocaine at his residence in Perth Amboy. The packages were sent from California via the U.S. Mail. Ramos later transferred the packages to another conspirator, who distributed the narcotics to others in New Jersey, including members of the Britt-Young DTO. Altogether, Ramos received at least 1,000 grams of heroin and 1,500 grams of cocaine.
The narcotics conspiracy charge to which Resendes pleaded guilty carries a maximum penalty of 20 years in prison and $1 million fine. The narcotics conspiracy charge to which Ramos pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a $5 million fine. Sentencing for Resendes and Ramos is set for March 10, 2015, and March 24, 2015, respectively.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Aaron T. Ford; officers of the Brick Township Police Department, under the direction of Chief Nils R. Bergquist: and officers of the Toms River Police Department, under the direction of Chief Mitchell Little, with the investigation leading to today’s guilty pleas. He also thanked special agents of the Bureau of Alcohol Tobacco Firearms and Explosives, under the direction of Acting Special Agent in Charge George Belsky; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; officers of the Monmouth County Prosecutor’s Office, under the direction of acting Prosecutor Christopher J. Gramiccioni; and officers of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato, for their work on the investigation. He also thanked the Monmouth County Sheriff’s Office and the Neptune Township, Asbury Park, Marlboro, Long Branch and Freehold police departments for their roles in the case.
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Defense Counsel:
Ramos: Anthony Simonetti Esq., Hightstown, New Jersey
Resendes: Lawrence G. Welle Esq., Wall, New JerseyResendes, Valerie Information
Ramos, Rashawn InformationOcean County, N.J., Man Indicted Today in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, man was indicted today for his role in a large-scale mortgage fraud scheme that caused millions of dollars in losses, U.S. Attorney Paul J. Fishman announced.
Joseph DiValli, 45, of Jackson, New Jersey, was charged in a seven-count indictment with one count of conspiracy to commit wire fraud and six counts of wire fraud, all of which caused losses of at least $2 million. DiValli was originally charged by complaint on Jan. 24, 2013, with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
From as early as March 2011, DiValli, a loan officer at a mortgage bank, allegedly engaged in a large-scale mortgage fraud conspiracy. He provided fraudulent documents to financial institutions in connection with mortgage loan applications on behalf of “straw buyers” to induce those financial institutions to fund mortgage loans. Relying upon those false documents, financial institutions funded mortgage loans. DiValli then profited illegally by receiving money from a conspirator.
DiValli is also charged with wire fraud involving a modification of a loan on his personal residence. From as early as March 2011, DiValli caused a loan officer at a mortgage brokerage company to send payroll ledgers and earnings statements from DiValli’s employer that falsely understated his earnings in order to fraudulently secure the modification.
The counts of wire fraud conspiracy and bank fraud are each punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million.
U.S. Attorney Fishman credited law enforcement agents of the FBI Newark Mortgage Fraud Task Force, including special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of the Federal Housing Finance Agency, Office of the Inspector General, under the direction of Special Agent in Charge Steven Perez; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan Larsen; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria Kelokates; special agents of the U.S. Housing and Urban Development, Office of Inspector General, Northeast Region of Investigations, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero; and the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano Gregory, for the investigation leading to today’s charges.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the Economic Crimes Unit of the Criminal Division in Newark.
The charges and allegations contained in the indictment and complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel: Michael Calabro Esq., Newark
DiValli, Joseph IndictmentOwner of Dietary Supplement Company Pleads Guilty to Multimillion-Dollar Scheme to Adulterate Dietary SupplementsRead the Press Release
NEWARK, N.J. – The owner and president of a dietary supplement manufacturing company in Flanders, New Jersey, pleaded guilty today to conspiracy to commit wire fraud in relation to a scheme in which he directed the sale of diluted and adulterated dietary ingredients and supplements sold by his company, U.S. Attorney Paul J. Fishman announced.
Barry Steinlight, 69, of Hackettstown, New Jersey, pleaded guilty to a one-count information charging him with conspiring to commit wire fraud. As part of his plea agreement, Steinlight admitted that Raw Deal’s gross sales during the scheme were between $7 million and $20 million. Steinlight has agreed to forfeit more than $1 million in profits from the scheme.
“Barry Steinlight diluted his products, cheated his customers and lied to the Food and Drug Administration when they came to inspect his company,” U.S. Attorney Fishman said. “This scheme went on for four years and essentially became the business model at his company. People who sell and use dietary supplements have the right to expect that the ingredients are listed and they get what they paid for.”
“This dietary supplement company owner ignored his basic obligations in his pursuit for profit,” said Acting Assistant Attorney General Joyce R. Branda for the Department of Justice’s Civil Division. “American consumers have a right to know that the dietary supplements they purchase are safe to consume and that the ingredients listed on the label are actually in the bottle. This case demonstrates the Department of Justice’s commitment to ensuring that those who deal products affecting the health and safety of consumers are law abiding and that wrongdoers will be held accountable.”
According to documents filed in this case and statements made in court:
Steinlight was the president and owner of Raw Deal Inc., a dietary supplement manufacturing facility. From at least 2009 through November 2013, Steinlight instructed Raw Deal employees to add “fillers,” including maltodextrin, viobin cocoa replacer and rice flours to the dietary ingredients and supplements packaged for, and sold to, Raw Deal’s customers. These “fillers” were added without customer consent or knowledge. Steinlight also directed Raw Deal employees not to list the “fillers” as ingredients on the certificates of analysis (COAs) issued to its customers as proof of the identity of the ingredients contained in the products.
In addition to directing the dilution and adulteration of Raw Deal’s products, Steinlight also directed Raw Deal employees to create COAs that falsely certified that certain of Raw Deal’s products were kosher or organic. Further during an U.S. Food and Drug Administration (FDA) inspection of Raw Deal in February 2012, Steinlight instructed Raw Deal employees to alter a document before providing it to the FDA.
U.S. Attorney Fishman credited special agents of the FDA’s Office of Criminal Investigations, under the direction of Acting Special Agent in Charge James J. Royal, who investigated the case.
“When a company distributes adulterated and misbranded dietary supplements, they put consumers at risk,” said Acting Special Agent in Charge Royal. “Today’s plea agreement should serve as a reminder that FDA’s Office of Criminal Investigations will continue working with the Department of Justice to protect consumers from public health risks and fraud.”
The conspiracy charge carries a statutory maximum sentence of five years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for March 30, 3015.The government is represented by Assistant U.S. Attorney Joseph Mack, Deputy Chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit, Special Assistant U.S. Attorney Shannon M. Singleton from the FDA’s Office of Chief Counsel, and Trial Attorneys Patrick Runkle and David Sullivan of the Civil Division’s Consumer Protection Branch. Paralegal Jeffrey Skonieczny of the U.S. Attorney’s Office also assisted in the criminal investigation.
U.S. Attorney Fishman reorganized the health care fraud practice at the U.S. Attorney’s Office for the District of New Jersey 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 $620 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
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Defense counsel: William F. Maderer Esq., Florham Park, N.J.
Steinlight, Barry Information
Essex County, New Jersey, Tax Return Preparer Sentenced to 57 Months in Prison for Filing Tax Returns Using a Dead Person's IdentityRead the Press Release
Obtained More Than $350,000 in Fraudulent Tax Refunds
NEWARK, N.J. – An Essex County, New Jersey, tax return preparer was sentenced today to 57 months in prison for filing false claims with the IRS using a dead tax return preparer’s identification and preparing false documents for numerous fraudulent loans, U.S. Attorney Paul J. Fishman announced.
Todd P. Halpern, 49, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of filing false claims and one count of wire fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements in court:
In late 2008, Halpern purchased A & V Financial (A & V), a tax return preparation business located in Guttenberg, New Jersey, from the wife of the prior owner, identified only as “V.R.,” who had died in March 2008. Halpern received the company’s computers and all of its client records. As part of the agreement to purchase A & V, Halpern was to obtain a new Electronic Filing Identification Number (EFIN) in his own name. Instead, he continued to file tax returns using V.R.’s EFIN number because Halpern’s criminal record prevented him from obtaining an EFIN.
From 2009 through 2010, Halpern prepared and filed 657 fraudulent federal income tax returns with the IRS using V.R.’s EFIN. Halpern prepared and filed some of these fraudulent tax returns without the knowledge and authorization of the taxpayers identified on the returns. Some of these tax returns contained fraudulent income and deduction amounts, which generated fraudulent refunds that were directly deposited into Halpern’s bank account.
On June 24, 2009, Halpern prepared and filed a fraudulent 2008 U.S. Individual Income Tax Return 1040 form with the IRS in the name of B.G., which fraudulently claimed an income tax refund in the amount of $13,183. The 2008 1040 form prepared by Halpern contained false income and deduction entries for B.G., because B.G. did not have any income for that tax year and did not file an income tax return. The $13,183 tax refund was directly deposited into Halpern’s bank account.
Halpern received a total of $373,938 in fraudulent tax refunds. He used these funds to support his lavish lifestyle, including purchases at Prada, Chanel, Saks Fifth Avenue, and Bloomingdales, to acquire season tickets to the New York Giants, to purchase thousands of dollars in jewelry, gold coins, and silver certificates, to make car payments on multiple luxury vehicles, including a 2007 Cadillac Escalade and a 2008 Lexus GX-470, and to buy parts for his classic 1957 Chevy Bel Air.
From January 2008 through May 2012, Halpern prepared false documents for numerous fraudulent loans from financial institutions. Halpern prepared tax returns, W-2 forms, and bank statements showing inflated income and asset balances to be used to support loan applications for borrowers, including him, to acquire mortgage loans, primarily involving residential properties in New Jersey, as well as other personal and business loans. Halpern and others caused the fraudulent documents to be submitted to mortgage lenders, other financial institutions, the U.S. Department of Housing and Urban Development, and the Federal Housing Administration (FHA), which were relied upon for the approval of mortgage and other loans.
In November 2009, Halpern served as the buyer for the short sale of 215 Newark Ave., Bloomfield, New Jersey, from seller B.S. for a purchase price of approximately $185,000. In support of Halpern’s purchase of this property, an FHA-insured mortgage loan for Halpern in the amount of $181,649 was obtained from a New Jersey-based mortgage company. Halpern and others submitted numerous fraudulent documents to FHA and to the mortgage company, including false bank statements, pay stubs and 2008 federal income tax returns in Halpern and his wife’s names. As in his tax fraud scheme, the false tax returns that Halpern prepared reflected V.R.’s identification number in an effort to conceal that Halpern had personally prepared the tax returns.
At the plea hearing, the Judge Martini also entered a consent judgment and order of forfeiture for $373,938 and for a classic 1957 Chevy Bel Air, which constitutes the proceeds that Halpern obtained as a result of his frauds. In addition to the prison term, Judge Martini also sentenced Halpern to serve five years of supervised release and pay restitution of $1.3 million.
U.S. Attorney Fishman credited special agents of the FBI, 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 special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Cary Rubenstein, with the investigation leading to today’s sentencing.The government is represented by Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office Criminal Division in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel: Marshall J. Wofsy Esq., Jersey City, N.J.Convicted Felon from Camden County, New Jersey, Admits Role in Conspiracy to Traffic Guns from South Carolina to New JerseyRead the Press Release
CAMDEN, N.J. – A Lawnside, New Jersey, man today admitted illegally possessing firearms and selling 22 guns without a license, U.S. Attorney Paul J. Fishman announced.
Anthony Gilmore, a/k/a “Tone,” 25, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of conspiring to deal firearms without a license and one count of possession of a firearm by a previously convicted felon.
According to documents filed in this case and statements made in court:
Between April 8, 2013, and July 8, 2014, Gilmore conspired with four others to sell 22 firearms on several occasions, for profit and without a license. The 22 firearms included handguns, shotguns, and an assault rifle. Gilmore personally sold or participated in the sale of at least seven firearms, including handguns and shotguns, as well as a bullet-proof vest, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Gilmore’s conspirators obtained the firearms in South Carolina and brought them to New Jersey on a weekly basis, at times using Amtrak to transport the guns. On two occasions, Gilmore sold a firearm to the cooperating witness along with ammunition. All 22 weapons are now in the custody of law enforcement.
The conspiracy charge to which Gilmore pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The unlawful possession of a firearm as a convicted felon charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for March 23, 2015.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George Belsky in Newark, New Jersey, with the investigation leading to today’s guilty plea. He also thanked special agents from the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, as well as officers from the Winslow Township and Clementon police departments, for their work in the case.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
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Defense counsel: Assistant Federal Public Defender Christopher O’Malley Esq., CamdenGilmore, Anthony Information
Burlington County, New Jersey, Man Admits Collecting Dead Mother's Monthly Benefit ChecksRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted converting to his own use Retirement Savings benefits and Veterans Affairs Dependency and Indemnity Compensation payments that were wrongfully paid to his deceased mother, U.S. Attorney Paul J. Fishman announced.
Irvin Cooper, 65, of Delran, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of theft of government funds.
According to documents filed in this case and statements made in court:
Cooper admitted that when his mother died in December 2006 he intentionally did not notify the Social Security Administration (SSA) and the Department of Veteran’s Affairs (VA) as he was obligated to do. This allowed him to continue to receive his mother’s SSA survivor benefit checks and the VA’s Dependency and Indemnity Compensation checks. The SSA and VA discovered the death in April of 2014.
After his mother had died, the SSA and the VA continued to deposit the checks electronically into a PNC Bank account in his mother’s name. Cooper acknowledged he accessed that account at various times and used the money to pay for personal expenses. He admitted that from December 2009 to April 2014, he collected $98,454 to which he was not entitled.
The charge to Cooper pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for March 26, 2015.
U.S. Attorney Fishman credited special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan; and the Department of Veterans Affairs, Office of Inspector General, under the direction of the direction of Special Agent in Charge Jeffrey G. Hughes, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
14-448Defense counsel: James K. Grace Esq., Mount Holly, N.J.
Cooper, Irvin Information
Two Newark Men Charged with Two Armed Carjackings and One Attempted Armed CarjackingRead the Press Release
NEWARK, N.J. – Two Newark men will make their initial appearance in court today on charges they carried out two armed carjackings and one attempted carjacking during a five-day span in September 2013, U.S. Attorney Paul J. Fishman announced.
Dion Hines, 21, is charged by complaint with two counts of carjacking, one count of attempted carjacking, and one count of using and carrying a firearm during a crime of violence. Roosevelt Robinson, 23, is charged by complaint with one count of carjacking, one count of attempted carjacking, and one count of using and carrying a firearm during a crime of violence. Both defendants are expected to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case and statements made in court:
At 10:30 p.m. on Sept. 22, 2013, Hines, Robinson, and another male conspirator allegedly approached a Mercedes Benz sedan that was parked in a residential driveway in Newark. Hines brandished a silver revolver and ordered the driver to get out of the vehicle. Hines, Robinson, and the other conspirator pulled on the driver’s side door, but the victim resisted. Robinson allegedly said: “Shoot that [expletive].” The victim eventually got out of the Mercedes Benz and Robinson sat in the driver’s seat.
After Hines and the other conspirator fled on foot, the victim pulled Robinson from the Mercedes Benz, got back into the vehicle and reversed the car. Hines allegedly returned and fired two shots at the Mercedes Benz, striking the rear driver side door. Hines, Robinson, and the other conspirator then ran down the block and jumped into a car waiting nearby. The victim pursued them in the Mercedes Benz, striking both the getaway car and Robinson before Robinson entered the vehicle. A car chase ensued, during which Hines fired two additional shots at the Mercedes Benz.
At 9:25 p.m. on Sept. 26, 2013, Hines allegedly approached a vehicle parked in a lot near a Newark residence. After the driver exited the vehicle, Hines allegedly pointed a black revolver and stated: “Give me your car keys or I’ll shoot.” Around this time, another victim, who had just parked a late-model Acura sedan in the parking lot, walked over to where Hines and the other victim were standing. Hines then pointed the revolver at owner of the Acura and demanded the car keys. The owner of the Acura complied and Hines got into the car and fled.
At 4:45 a.m. on Sept. 27, 2013, a dark-colored SUV driven by an unknown person pulled in front of a Range Rover stopped at an intersection in Belleville, New Jersey, blocking the Range Rover’s path. Hines allegedly jumped out of the passenger side of the dark-colored SUV and pointed a black handgun at the victim. Hines then approached the driver’s door, pulled the victim out of the vehicle and demanded the car keys. The victim complied and Hines then got into the Range Rover and fled, followed by the dark-colored SUV.
At 2:20 p.m. that day, law enforcement located the Range Rover in Newark. A brief car chase ensued, during which the Range Rover rammed multiple police vehicles before getting trapped and stopping. Law enforcement officers surrounded the Range Rover with their guns drawn. Hines and Robinson both exited the Range Rover and ran. Law enforcement officers arrested them shortly thereafter. The third occupant was taken into custody immediately. After arresting the three men, law enforcement officers searched the Range Rover and discovered a loaded black revolver in the vehicle.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge John P. Woods in Newark; and the Newark, Elizabeth and Belleville police departments with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney J. Jamari Buxton of the U.S. Attorney’s Office Organized Crime/Gangs in Newark.
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Hines, Dion, and Robinson, Roosevelt Complaint
Former Collateralized Mortgage Obligations Bond Trader Sentenced for Multi-Million Dollar Securities Fraud SchemeRead the Press Release
TRENTON, N.J. – A former collateralized mortgage obligation (CMO) bond trader was sentenced today to 30 months in prison for engaging in a fraudulent trading scheme in which he manipulated the prices of CMOs by millions of dollars over a period of four years, U.S. Attorney Paul J. Fishman announced.
Douglas Green, 50, of Boca Raton, Florida, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to one count of securities fraud. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From May 2004 through June 2008, Green was a registered representative associated with Crocker Securities, a broker dealer that used the clearing services of Pershing LLC. Pershing, which is based in Jersey City, New Jersey, is one of the largest clearing firms in the United States. As Crocker’s clearing firm, Pershing received payments and securities from Crocker and handled record-keeping for the securities Crocker controlled.
Green traded a Crocker account on behalf of the firm. In June 2004, the account Green managed suffered significant trading losses, which continued to grow during the length of the fraudulent scheme. To conceal the losses, Green entered into fraudulent transactions designed to increase the price of the CMOs to correspond to and cover the increasing losses in the Crocker trading account.
Green admitted that to manipulate the price of the CMO he entered a fraudulent sale into Pershing’s trading system. As the settlement date of the trade approached, Green cancelled the fraudulent sale so it would not actually settle and thereby alert Pershing and the purported purchasers, who were unaware they were identified in the fake transaction.
Green also manipulated the price of the CMOs using a network of bond traders. The traders purchased the CMOs at Green’s direction and immediately sold them back to him at slightly elevated prices. As a result of Green’s fraudulent trading activity, the total price of the CMOs was artificially inflated by millions of dollars. When the scheme collapsed, Pershing lost millions of dollars when it was forced to liquidate the CMO positions in the Crocker account.
In addition to the prison term, Judge Wolfson sentenced Green to three years of supervised release and ordered him to pay $9.2 million in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent-in-Charge Aaron Ford, for the investigation which led to today’s sentence. He also thanked the Financial Industry Regulatory Authority for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Paul A. Murphy of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
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Defense counsel: Thomas Fitzpatrick, Esq. – New York, N.Y.
Doctor Sentenced to 37 Months in Prison for Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A pediatrician with a practice in Staten Island and Brooklyn, New York, was sentenced today to 37 months in prison for accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Demetrios Gabriel, 47, of Brooklyn, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes. Judge Chesler imposed the sentence today in Newark federal court.
Including Gabriel, 33 people – 22 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 this and related cases and statements made in court:
Gabriel admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid more than $4,500 per month. Gabriel received a flat fee of $3,000 per month in cash, plus additional cash based on the number of patient blood samples his pediatric practice referred to BLS each month. In addition, Gabriel received $1,500 per month through credit card payments to a restaurant he owns.In addition to the prison term, Judge Chesler sentenced Gabriel to one year of supervised release and fined him $75,000.
The investigation has recovered more than $10.3 million to date through forfeiture.
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 Thomas O’Donnell; 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 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 $620 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.
14-445Defense counsel: Joseph Corozzo Esq., New York; Joseph Hayden Esq., Roseland
Owner of Parsippany-Based Diagnostic Testing Facility Pleads Guilty to Health Care FraudRead the Press Release
NEWARK, N.J. - A Morris County, New Jersey, man pleaded guilty today to health care fraud in a scheme to bill for diagnostic testing services he did not render and to enable a cardiologist to evade the Medicare program’s pre-payment review of his claims, U.S. Attorney Paul J. Fishman announced.
Vijay Patel, 57, of Parsippany, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of health care fraud.
According to documents filed in this case and statements made in court:
From 2009 to the present, Patel has been the owner of a diagnostic testing facility in Parsippany called Mobile Diagnostic Testing of NJ LLC (Mobile Diagnostic). He was also a participant in Medicare.
Patel had an associate identified as “S.A.,” who was a cardiologist and also a participant in the Medicare program. From around 2009 through 2012, S.A.’s Medicare contractor had placed him on so-called “pre-payment review,” which was initiated to ensure that S.A. was submitting claims within established rules and regulations and consistent with appropriate medical decision-making, and which required S.A. to submit medical and other documentation to support the services being billed to Medicare. Under pre-payment review, claims for reimbursement that did not have the documentation necessary to support the services being billed are rejected by the Medicare contractor.
From November 2009 through October 2012, Patel and S.A. engaged in a scheme to defraud Medicare whereby S.A. paid Patel substantial sums of money to enable S.A. to evade Medicare’s prepayment review. Patel admitted in court that he submitted claims to Medicare for diagnostic testing services that S.A. had performed as if Mobile Diagnostic had performed the services instead of S.A. Once Medicare paid Patel and Mobile Diagnostic for diagnostic testing services that S.A. had actually provided, Patel then transferred a portion of the payment to S.A. and kept a substantial portion for himself.
The charge to which Patel pleaded guilty carries a maximum potential penalty of 10 years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for March 23, 2015.U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, for the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Scott B. McBride, Deputy Chief of the U.S. Attorney’s Office’s Economic Crimes Unit.
14-443 ###
Defense counsel: Richard M. Asche Esq., New York
Patel, Vijay Information
Hudson County Gang Leader Pleads Guilty to Murder Conspiracy after Obtaining Approval from Gang’s National LeadershipRead the Press Release
NEWARK, N.J. – A Hudson County, N.J., man today admitted to trying to kill a rival gang member, U.S. Attorney Paul J. Fishman announced.
Carlos Valdez, a/k/a “Catracho,” 27, was indicted in July 2014 with numerous other top-ranking members of the international criminal street gang, Mara Salvatrucha (also known as “MS” or “MS-13”), for racketeering crimes, including conspiracy to commit murder. Valdez, who admitted to being the leader of an MS-13 set, or “clique,” operating in Hudson County, known as “Hudson Locotes Salvatruchas,” pleaded guilty today before U.S. District Court Judge Stanley R. Chesler in Newark federal court to Count One of the indictment, engaging in a racketeering conspiracy, and Count Five, conspiring to possess firearms in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
In autumn 2013, Valdez was recruited by Joel Antonio Cortez, a/k/a “Pee Wee,” a high-ranking member of Mara Salvatrucha’s national leadership, to join the “national program,” a scheme to consolidate the gang’s cliques under a single, nationwide organization devoted to violence, extortion, and drug trafficking. At the time, Cortez was incarcerated in a California state prison and used a contraband cellular phone to remain in contact with Mara Salvatrucha members on the East Coast. Cortez served as a top deputy for Jose Juan Rodriguez-Juarez, a/k/a “Sacerdote,” the leader of Mara Salvatrucha in the United States and the primary organizer of the new “national program.”
In November 2013, Valdez and other gang leaders in northern New Jersey hatched a plot to murder two brothers in Hudson County, New Jersey. Before carrying out the plot, Valdez and others sought authorization from high-ranking members in the gang’s national and international leadership, including Cortez and incarcerated members of the gang in El Salvador. Law enforcement learned of the murder plot during the course of its investigation and arrested certain gang members, including Valdez, before it could be completed.
Both of the charges to which Valdez pleaded guilty carry a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for March 16, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford. The investigation involved multiple FBI Field Offices, with substantial assistance provided by the FBI Field Office in Los Angeles. Fishman also thanked the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace Park, for their work on this case. He also acknowledged the U.S. Attorney’s Office for the Central District of California for its assistance in the ongoing investigation.
The government is represented by Assistant U.S. Attorneys James M. Donnelly and Andrew J. Bruck of the U.S Attorney’s Office Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel: Scott Finckenauer Esq., Fairview, N.J.
Valdez, Carlos Indictment
Hudson County Gang Leader Pleads Guilty to Murder Conspiracy After Obtaining Approval from Gang’s National LeadershipRead the Press Release
A Hudson County, New Jersey, man today admitted to trying to kill a rival gang member, U.S. Attorney Paul J. Fishman announced.
Carlos Valdez, aka “Catracho,” 27, was indicted in July 2014 with numerous other top-ranking members of the international criminal street gang, Mara Salvatrucha (also known as “MS” or “MS-13”), for racketeering crimes, including conspiracy to commit murder. Valdez, who admitted to being the leader of an MS-13 set, or “clique,” operating in Hudson County, known as “Hudson Locotes Salvatruchas,” pleaded guilty today before U.S. District Court Judge Stanley R. Chesler in Newark federal court to Count One of the indictment, engaging in a racketeering conspiracy, and Count Five, conspiring to possess firearms in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
In autumn 2013, Valdez was recruited by Joel Antonio Cortez, aka “Pee Wee,” a high-ranking member of Mara Salvatrucha’s national leadership, to join the “national program,” a scheme to consolidate the gang’s cliques under a single, nationwide organization devoted to violence, extortion, and drug trafficking. At the time, Cortez was incarcerated in a California state prison and used a contraband cellular phone to remain in contact with Mara Salvatrucha members on the East Coast. Cortez served as a top deputy for Jose Juan Rodriguez-Juarez, aka “Sacerdote,” the leader of Mara Salvatrucha in the United States and the primary organizer of the new “national program.”
In November 2013, Valdez and other gang leaders in northern New Jersey hatched a plot to murder two brothers in Hudson County, New Jersey. Before carrying out the plot, Valdez and others sought authorization from high-ranking members in the gang’s national and international leadership, including Cortez and incarcerated members of the gang in El Salvador. Law enforcement learned of the murder plot during the course of its investigation and arrested certain gang members, including Valdez, before it could be completed.
Both of the charges to which Valdez pleaded guilty carry a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for March 16, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford. The investigation involved multiple FBI Field Offices, with substantial assistance provided by the FBI Field Office in Los Angeles. Fishman also thanked the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace Park, for their work on this case. He also acknowledged the U.S. Attorney’s Office for the Central District of California for its assistance in the ongoing investigation.
The government is represented by Assistant U.S. Attorneys James M. Donnelly and Andrew J. Bruck of the U.S Attorney’s Office Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Newark Watershed Conservation and Development Official Indicted in Kickback Scheme, Money LaunderingRead the Press Release
One Contractor Who Paid Kickbacks Also Charged
NEWARK, N.J. – A former high ranking employee of the Newark Watershed Conservation and Development Corp. (NWCDC) and a contractor from whom he allegedly received kickbacks were indicted by a federal grand jury today in connection with a scheme to solicit and accept payments for work by outside contractors, U.S. Attorney Paul J. Fishman announced.Donald Bernard Sr., 67, of Newark, is charged in the indictment with six counts of defrauding the corporation of his honest services, four counts of violating the Travel Act, three counts of extortion under color of official right affecting interstate commerce, two counts of wire fraud and three counts of money laundering.
Giacomo (Jack) DeRosa, 58, of Clinton Township, New Jersey, was indicted separately on two counts of wire fraud, one count of violating the Travel Act and three counts of money laundering.
According to the documents filed in this case and statements made in court:
During the time that Bernard was a consultant to NWCDC (2008 through 2009), as well as when he worked there as manager of Special Projects (January 2010 through March 2013), he devised scheme to accept a stream of concealed and undisclosed bribes and kickbacks from contractors. Bernard agreed to accept, and did accept, at least $730,000 in kickbacks directly and indirectly from various contractors, including DeRosa. Bernard assisted the contractors in financing the payments to him by causing certain contractors to submit fraudulent and inflated invoices to the NWCDC, which contained materially false representations and half-truths, in many instances billing the NWCDC for work that was never performed.
For example, from August 2008 to January 2011, Bernard accepted approximately $136,000 in kickbacks from a Newark company (Company 1) that performed printing work for the NWCDC. At times, due to the physical ailments suffered by the proprietor of the company, Bernard obtained blank checks from the company signed by the proprietor, which Bernard filled out payable to himself or his consulting company, Bernard & Associates (B&A), with the proprietor’s consent.
The maximum potential penalties per count are detailed in the chart below:Counts of Indictment
Defendant
Charge
Maximum Penalty per Count
Bernard
18 U.S.C. §§ 1343 and 1346
(Wire Fraud)20 years
Counts 1 and 2
DeRosa
Counts 7 to 11
Bernard
18 U.S.C. § 1952(a)(3) (the Travel Act)
5 years
Count 3
DeRosa
Counts 12 to 15
Bernard
18 U.S.C. § 1951(a) (extortion under color of official right affecting interstate commerce)
20 years
Counts 16 and 17
Bernard
18 U.S.C. § 1343
(Wire Fraud)20 years
Counts 18 to 20
Bernard
18 U.S.C. § 1956(a)(1)(B)(i) (Money Laundering)
20 years
Counts 4 to 6
DeRosa
The maximum fines for all of the above violations except the money laundering charges are $250,000 or twice the gain or loss resulting from the offense. The maximum fines for the money laundering charges are: $500,000, or twice the value of the property involved in the money laundering transactions, or twice the gain or loss resulting from the offense, whichever is greatest.
The Bernard indictment also seeks forfeiture of $1.4 million to $1.8 million in connection with the fraudulent schemes and forfeiture of $20,000 in connection with the money laundering charges. The DeRosa indictment seeks forfeiture of between $200,000 and $360,000 in connection with the fraudulent scheme and forfeiture of at least $20,000 in connection with the money laundering charges.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; IRS – Criminal Investigation, Newark Field Office, 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, Newark office, 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 the charges.
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 contained in the indictments are merely accusations and the defendants are considered innocent unless and until proven guilty.
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Defense counsel:
Bernard Sr.: Thomas Ashley Esq., Newark
DeRosa: Anthony Pope Esq., NewarkBernard, Donald Indictment
DeRosa, Giacomo IndictmentEssex County, New Jersey, Man Pleads Guilty in Multimillion-Dollar Real Estate Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man today admitted his role in a real estate investment scheme that bilked victims out of more than $5 million, U.S. Attorney Paul J. Fishman announced today.
Abbe Edelman, 50, of Livingston, New Jersey, pleaded guilty before U.S. District Judge Susan Wigenton in Newark federal court to an information charging him with wire fraud.
According to documents filed in this case and statements made in court:
Beginning in 2004, Edelman operated through several companies alleged to be in the business of buying and selling real estate. He allegedly engaged in a real estate investment fraud in which he obtained millions of dollars from victims who invested in his scheme. Edelman told investors that he had significant past real estate experience, including a purported history of successfully buying and selling numerous bank-foreclosed properties, and an MBA degree from NYU in real estate finance. Edelman claimed that he had long-standing relationships with banks that provided him with unique access to purchase foreclosed properties below market prices and, in fact, already had negotiated with the banks to purchase certain properties at agreed-upon prices that would guarantee an easy resale and profit for investors.
Edelman promised investors that any investment would be used solely for the purchase and renovation of specific investment properties in, among other places, New York, New Jersey, California, and Florida. Edelman represented to his investors that he could obtain extraordinary returns – as much as 25 percent – in as little as eight to 12 months. Edelman allegedly told some victims he had received from other investors, including professional athletes and celebrities, the majority of the capital needed to purchase the investment properties. He also said he provided cash deposits to the financial institutions to secure the right to purchase the investment properties and invested his own money in the deals.
In reality, neither Edelman nor any of his real estate companies had a history of purchasing any bank-foreclosed properties. Edelman also did not possess even an undergraduate degree. He did not have any deals lined up involving any investment properties, did not have his own money invested in any such deals, and did not have any money from celebrity investors. Edelman induced investors to give him $4 million and used little, if any, of it to fund any real estate acquisitions or renovations, instead diverting the funds for his own use.
He allegedly used the funds for his home mortgage and day-to-day living expenses, such as restaurants, telephone, and gas bills, purchased merchandise from high-end retailers, such as Gucci and Neiman Marcus, repaid existing investors in Ponzi-scheme fashion and paid his legal expenses in connection with victims seeking repayment of their investment.
When investors later inquired about the status of their investments, Edelman offered additional misrepresentations, including emails sent from a fake email account he had created, falsely assuring investors that he and his company had closed on the foreclosed properties, sometimes telling them buyers for the properties already had been identified.
In some cases, to allow the scheme to continue undetected, Edelman made “lulling” payments to investors, ranging from $100 to tens of thousands of dollars, to permit the scheme to continue. When payments were made to any investors, Edelman generally represented that the money was from the sale of investment properties, when, in fact, it came from a new investor.
The wire fraud count to which he pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for March 23, 2015.
U.S. Attorney Fishman credited criminal investigators with the U.S. Attorney’s Office and postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s arrest.
Today’s 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.
The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky and Lakshmi Srinivasan Herman of the Economic Crimes Unit, and Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit.
14-441Defense Counsel: William Rush Esq., Wayne, N.J.
Edelman, Abbe Information
Convicted Ponzi Schemer Eliyahu Weinstein Sentenced to Additional 24 Months in Prison on New Fraud and Money Laundering ChargesRead the Press Release
Already Serving 22 Years for Previous Fraud Scheme
TRENTON, N.J. – A man already serving 22 years in prison for a real estate Ponzi scheme was sentenced today to an additional 24 months in prison for defrauding investors in connection with the Facebook IPO and several additional real estate deals and laundering the proceeds of the scheme, U.S. Attorney Paul J. Fishman announced.
Eliyahu Weinstein, 39, of Lakewood, New Jersey, was previously sentenced to 22 years in prison for running a real estate investment fraud scheme that caused $200 million in losses. Today, U.S. District Judge Joel A. Pisano sentenced Weinstein to 135 months in prison, 111 months of which will be served concurrently with his previous sentence and 24 months to be served consecutively. His total sentence for the two schemes is 24 years in prison. Weinstein previously pleaded guilty before Judge Pisano to an indictment charging him with one count of conspiracy to commit wire fraud, one count of committing wire fraud while on pretrial release, and one count of money laundering.
According to documents filed in this case and statements made in court:
In February 2012, Weinstein and his fellow conspirators offered a pair of investors (referred to in the indictment 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 Weinstein and his conspirators, the Facebook victims wired millions of dollars between February and March of 2012 to an account that 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. Weinstein used some of the money to pay lawyers and experts representing him in his earlier – and at that time, still pending – criminal case and in related civil matters. Weinstein and his conspirators also used the Facebook victims’ money to make investments in businesses unrelated to Facebook and to make loans for their own benefit.
Around the same time, Weinstein and his conspirators also persuaded the Facebook victims to invest in the purported purchase of an apartment complex, “Belle Glade Gardens,” in Florida. They told the Facebook victims that Weinstein had the opportunity to purchase Belle Glade Gardens at a discounted price and immediately flip it at a substantial profit. Weinstein and his conspirators further told the Facebook victims that Weinstein had already placed $2.5 million in the trust account of a Miami law firm for the transaction; that if the Facebook victims contributed another $2.5 million toward the transaction, those funds would remain in escrow at the Miami law firm until the deal closed; and that the Facebook victims would be repaid within 60 days. The Facebook victims wired $2.83 million to the Miami law firm in order to complete the Belle Glades Gardens transaction. Weinstein and his conspirators did not use the money to purchase Belle Glades Gardens. Instead, they redirected the money from the law firm to accounts that they controlled, returned $1.8 million to the Facebook victims as a purported return on their Facebook investment, and used the remaining money for their own purposes.
In July 2012, Weinstein approached another group of investor victims (referred to in the indictment as the “Florida condominium victims”) and told them he had the opportunity to purchase the notes on seven condominiums in Florida at a discounted price of $3 million. Weinstein and his conspirators falsely represented that they had already paid $1.5 million toward the deal, and that they needed only $1.5 million to complete the transaction. They claimed that the properties had an annual rental income of approximately $780,000 and provided to the Florida condominium victims fraudulent documentation purporting to verify this fact. The victims transferred $1.5 million to Weinstein and his conspirators between August 2012 and December 2012. Weinstein did not use this money to purchase the notes on the Florida condominiums – many of which he himself had previously owned and lost to foreclosure. Instead, Weinstein and his conspirators converted the money to their own use.
Throughout the scheme, Weinstein was already under indictment and on pretrial release, and was prohibited from engaging in any monetary transaction for more than $1,000 without the approval of court-appointed special counsel. Weinstein pleaded guilty on Jan. 3, 2013, before Judge Pisano to two counts of that indictment, admitting he ran a Ponzi-style real estate investment fraud scheme that caused $200 million in losses and then laundered the proceeds of the scheme. Judge Pisano sentenced Weinstein on Feb. 25, 2014, to 264 months in prison and ordered him to pay more than $200 million in restitution and forfeiture to the victims of his scheme.
In addition to the prison term, Judge Pisano today ordered Weinstein to pay $6.2 million restitution and forfeiture.
Two co-defendants, Alex Schleider, 49, of Lakewood, and Aaron Glucksman, 41, of Brooklyn, New York, have already pleaded guilty to charges related to the scheme. On Dec.8, 2014, Judge Pisano sentenced Schleider to serve on year and one day in prison, three years of supervised release, and ordered him to pay restitution of $613,200 and forfeiture of $363,200. Judge Pisano sentenced Glucksman 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.
Charges against another conspirator, Aaron Muschel, 64, of Brooklyn, NY, who was charged in the criminal complaint filed against Weinstein and Schleider in May 2013, remain pending. The charges against him are merely accusations and he is presumed innocent until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Aaron T. Ford in Newark, for the investigation leading to today’s sentencing. He also thanked special 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; Assistant U.S. Attorneys Zach Intrater of the Economic Crimes Unit; and Evan S. Weitz of the Asset Forfeiture and Money Laundering 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.
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Defense counsel: Eric Creizman Esq., New YorkOcean County, N.J., Woman Admits Defrauding FEMA after Major DisastersRead the Press Release
TRENTON, N.J. – A Brick, New Jersey, woman today admitted stealing benefit money from the Federal Emergency Management Agency (FEMA) after major storms in New Jersey, falsely claiming she needed the funds for housing, U.S. Attorney Paul J. Fishman announced.
Sara L. Cengiz, 47, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging her with disaster benefits fraud related to Hurricane Irene.
According to documents filed in this case and statements made in court:
On April 2, 2010, a Presidential Disaster Declaration was issued for certain areas in the State of New Jersey adversely affected by severe storms, which occurred in March 2010. Cengiz filed an application the following month with FEMA seeking federal rental assistance and assistance for personal property damage. Cengiz admitted that in her application, she falsely claimed she had to rent another residence because her residence was damaged as a result of the severe storms and was unfit for occupancy. Cengiz submitted fraudulent lease agreements and rental receipts to FEMA to prove she was paying rent, which she was not. From May 2010 to June 2011, Cengiz received $26,938 in fraudulently obtained FEMA disaster-related funds.
On Aug. 31, 2011, a Presidential Disaster Declaration for the State of New Jersey was issued as a result of Hurricane Irene. The next month, Cengiz again filed an application with FEMA seeking federal rental assistance and assistance for personal property damage as a result of Hurricane Irene. Cengiz admitted that she again falsely claimed her residence was unfit for occupancy. Cengiz again submitted fraudulent lease agreements and rental receipts to FEMA to prove she was paying rent. From November 2011 to January 2012, Cengiz received $13,039 in fraudulently obtained FEMA disaster related funds.
The charge to which Cengiz pleaded guilty carries a maximum potential penalty of 30 years in prison and a $250,000 fine. As part of her plea agreement, Cengiz will also be required to pay restitution. Sentencing is scheduled for March 27, 2015.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Office of Inspector General, Philadelphia Field Office, under the direction of Special Agent in Charge Gregory Null, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Andrea Bergman Esq., Assistant Federal Public Defender, TrentonCengiz, Sara Information
Former Louis Berger Group Inc. Chairman, CEO, and President Admits 20-Year Conspiracy to Defraud Federal GovernmentRead the Press Release
Scheme Involved International Environmental Consulting Contracts, Including Reconstruction Contracts in Afghanistan and Iraq
TRENTON, N.J. – The former president, chief executive officer, and chairman of the board of a New Jersey-based international engineering consulting company pleaded guilty to conspiring to defraud the U.S. Agency for International Development (USAID) with respect to billions of dollars in contracts over a nearly 20-year period, U.S. Attorney Paul J. Fishman announced.
Derish Wolff, 79, of Bernardsville, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information charging conspiracy to defraud the government with respect to claims.
“Two years after the Louis Berger Group and two of its executives confessed to defrauding USAID, the company’s former chairman admitted his role in the scheme,” U.S. Attorney Fishman said. “Derish Wolff admitted today that he enriched himself and his company with money intended for important reconstruction projects in Afghanistan and Iraq. This type of conduct cheats the American taxpayers.”
“Today’s plea is the result of impressive investigative work undertaken to root out fraud that hinders global development,” Special Agent in Charge Daniel Altman, USAID-Office of Inspector General, said.
According to documents filed in this case and statements made in court:
Wolff, the former president and CEO of Morristown-based Louis Berger Group Inc. (LBG), and the former chairman of LBG’s parent company, Berger Group Holdings Inc. (BGH), led a conspiracy to defraud USAID by billing the agency on so-called “cost-reimbursable” contracts – including hundreds of millions of dollars of contracts for reconstructive work in Iraq and Afghanistan – for LBG’s overhead and other indirect costs at falsely inflated rates.
USAID, an independent federal government agency that advances U.S. foreign policy by supporting economic growth, agriculture, trade, global health, democracy, and humanitarian assistance in developing countries, including countries destabilized by violent conflict, awarded LBG hundreds of millions of dollars in reconstruction contracts in Iraq and Afghanistan as well as in other nations. LBG calculated certain overhead rates and charged USAID and other federal agencies these rates on cost-reimbursable contracts, which enabled LBG to pass on their overhead costs to the agency in general proportion to how much labor LBG devoted to the government contracts.
From at least 1990 through July 2009, LBG, through Wolff and other former executives, intentionally overbilled USAID in connection with these cost-reimbursable contracts. The scheme to defraud the government was carried out by numerous LBG employees at the direction of Wolff.
Wolff targeted a particular overhead rate, irrespective of what the actual rate was, and ordered his subordinates to achieve that target rate through a variety of fraudulent means. From at least as early as 1990 through 2000, Wolff ordered LBG’s assistant controller to instruct the accounting department to pad its time sheets with hours ostensibly devoted to federal government projects when it had not actually worked on such projects.
At an LBG annual meeting in September 2001, Salvatore Pepe, who was then the controller and eventually became chief financial officer (CFO), presented a USAID overhead rate that was significantly below Wolff’s target. In response, Wolff denounced Pepe, called him an “assassin” of the overhead rate and ordered him to target a rate above 140 percent, meaning that for every dollar of labor devoted to a USAID contract, LBG would receive an additional $1.40 in overhead expenses supposedly incurred by LBG.
In response, Pepe and former controller Precy Pellettieri, with Wolff’s supervision, hatched a fraudulent scheme from 2003 through 2007 to systematically reclassify the work hours of LBG’s corporate employees, including high-ranking executives and employees in the general accounting division, to make it appear as if those employees worked on federal projects when they did not. Wolff admitted in court today thatPepe and Pellettieri, at Wolff’s direction, reclassified these hours without the employees’ knowledge and without investigating whether the employees had correctly accounted for their time, and at times did so over an employee’s objection.
In addition to padding employees’ work hours with fake hours supposedly devoted to USAID work, Wolff instructed his subordinates to charge all commonly shared overhead expenses, such as rent, at LBG’s Washington, D.C., office to an account created to capture USAID-related expenses, even though the D.C. office supported many projects unrelated to USAID or other federal government agencies.
“Derish Wolff spent close to 20 years creating and executing a series of elaborate fraudulent billing schemes, ultimately defrauding the federal government of tens of millions of dollars,” FBI Special Agent in Charge Aaron T. Ford said. “This long-term, complex investigation required much in terms of investigative resources and financial analysis. The FBI, in partnership with the U.S. Agency for International Development and the U.S. Department of Defense, and through its vast experience investigating complex financial schemes was able to provide such resources, resulting in today's guilty plea of Derish Wolff.”
“The plea by Mr. Wolff for his actions as chief executive of Louis Berger Group Inc. supports the need for continued aggressive oversight and investigation of allegations of wrongdoing,” Special Agent in Charge Craig W. Rupert, Defense Criminal Investigative Service Northeast Field Office, said. “This example of corporate and personal greed harms both the American taxpayer and the acquisition process, saying nothing of the harm to the reputation of the many faithful employees of this corporation. DCIS will continue to work with our law enforcement partners on our priority to search out and prosecute fraud found in Defense Department programs.”
On Nov. 5, 2010, Pepe and Pellettieri both pleaded guilty before then-U.S. Magistrate Judge Patty Shwartz to separate informations charging them with conspiring to defraud the government with respect to claims. Also on that date, LBG resolved criminal and civil fraud charges related to Wolff’s and others’ conduct. The components of the settlement included:
• a Deferred Prosecution Agreement (DPA), pursuant to which the U.S. Attorney’s Office in New Jersey suspended prosecution of a criminal complaint charging LBG with a violation of the Major Fraud Statute; in exchange, LBG agreed, among other things, to pay $18.7 million in related criminal penalties; make full restitution to USAID; adopt effective standards of conduct, internal controls systems, and ethics training programs for employees; and employ an independent monitor who would evaluate and oversee the company’s compliance with the DPA for a two‑year period;
• a civil settlement that required the company to pay the government $50.6 million to resolve allegations that LBG violated the False Claims Act by charging inflated overhead rates that were used for invoicing on government contracts; and
• an administrative agreement between LBG and USAID, which was the primary victim of the fraudulent scheme.
In the settlement, the government took into consideration LBG’s cooperation with the investigation and the fact that those responsible for the wrongdoing were no longer associated with the company.The charge to which Wolff pleaded guilty carries a maximum potential penalty of 10 years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for March 20, 2015.
U.S. Attorney Fishman credited special agents of USAID-Office of Inspector General, under the direction of Special Agent in Charge Altman; the FBI, under the direction of Special Agent in Charge Ford; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Rupert; and the former Office of the Special Inspector General for Iraq Reconstruction, under the direction of former Special Inspector General Stuart W. Bowen Jr., for the investigation leading to the guilty plea. He also thanked the U.S. Attorney’s Office, District of Maryland, and the U.S. Department of Justice Civil Division for their roles in the case.
The case is being prosecuted by Assistant U.S. Attorneys Scott B. McBride, Deputy Chief of the U.S. Attorney’s Office’s Economic Crimes Unit, and Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit.
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Defense counsel: Herbert J. Stern Esq.; Mark W. Rufolo Esq.; Jeffrey Speiser Esq.; Florham Park, N.J.
Wolff, Derish Superseding Information
Hudson County Contractor Indicted on Additional Charges of Paying Bribes to Fire OfficialRead the Press Release
NEWARK, N.J. – A Hudson County, N.J., man was indicted today on an additional charge of paying thousands of dollars in bribes to a fire official in exchange for the elimination of outstanding fines and penalties on certain buildings that had fire code violations, U.S. Attorney Paul J. Fishman announced.
Victor Coca, 48, of West New York, N.J. was also charged by a federal grand jury with two counts of violating the Travel Act. Coca had been arrested May 20, 2014, by special agents of the FBI and charged by complaint with one count of paying bribes to the fire official for the West New York Bureau of Fire Prevention.
According to documents filed in this case and statements made in court:
Coca was the owner of a general contracting company located in West New York. There were two buildings in West New York with outstanding fines for fire code violations – one building had approximately $14,500 in fines and the other had approximately $8,730,000 in fines and penalties.
Coca paid the fire official cash bribes to reduce or eliminate the outstanding fines. For the first building, Coca paid a $2,000 cash bribe to the fire official to eliminate the outstanding $14,500 in fines. For the second building, Coca wrote paid a $5,000 cash bribe to the fire official, in return for the fire official reducing the $8,730,000 in outstanding penalties, thus making the amount due to the West New York Bureau of Fire Prevention only the initial fine amount of $5,000.
The charge is punishable by a maximum potential penalty of ten years in prison and a maximum fine of $250,000 or twice the gain or loss arising out of 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, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
14-436Defense counsel: Zak Aljaludi Esq., Union City, N.J.
Coca, Victor Indictment
Eleven People Charged in Takedown of Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – Federal, state and local law enforcement authorities arrested eight people this morning in connection with a ring that allegedly trafficked heroin, powder cocaine and crack cocaine in the Atlantic City area, U.S. Attorney Paul J. Fishman announced.
In pre-dawn raids, agents and officers of the FBI, Drug Enforcement Administration, the Atlantic County Prosecutor’s Office, N.J. State Police and Atlantic City Police Department arrested eight people, seven of whom were charged by indictment with drug trafficking conspiracy; one of those defendants, Toye Tutis, is also charged with one count of money laundering along with Jazmin S. Vega, who is charged only with a single count of money laundering.
A ninth defendant is already in custody on other charges in Pennsylvania and two more defendants are being sought in California.
The defendants arrested in New Jersey today are scheduled to make their initial court appearance this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
According to documents filed in this case and statements made in court:
The defendants are allegedly members of a drug trafficking organization that dealt in large quantities of heroin, powder cocaine, and crack cocaine in and around Atlantic City. All but one of the defendants (see chart below) are charged with a single count of conspiracy to distribute more than five kilograms of cocaine, more than 280 grams of crack cocaine, and more than one kilogram of heroin.
The conspiracy count carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The count of money laundering carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
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 DEA’s Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; and the Atlantic City Police Department, under the direction of Police Chief Henry Wright, with the investigation leading to today’s arrests.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana V. Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS
Name
Age
Residence
42
Pleasantville, New Jersey
Kareem A. Taylor
39
Atlantic City, New Jersey
Ivan Joel Cuellar-Naranjo*
28
Los Angeles, California
Francisco Alberto Rascon-Muracami
21
Lancaster County Prison, Pennsylvania
Phillip C. Horton*
49
Inglewood, California
Tozine N. Tiller
40
Absecon, New Jersey
Talib N. Tiller
32
Pleasantville
Kabaka Atiba
43
Atlantic City
Ronald D. Byrd
49
Pleasantville
John Wellman
39
Atlantic City
Jazmin S. Vega
40
Pleasantville
*Not in custody
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Tutis, Toye et al., Indictment
Eleven People Charged in Takedown of Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – Federal, state and local law enforcement authorities arrested eight people this morning in connection with a ring that allegedly trafficked heroin, powder cocaine and crack cocaine in the Atlantic City area, U.S. Attorney Paul J. Fishman announced.
In pre-dawn raids, agents and officers of the FBI, Drug Enforcement Administration, the Atlantic County Prosecutor’s Office, N.J. State Police and Atlantic City Police Department arrested eight people, seven of whom were charged by indictment with drug trafficking conspiracy; one of those defendants, Toye Tutis, is also charged with one count of money laundering along with Jazmin S. Vega, who is charged only with a single count of money laundering.
A ninth defendant is already in custody on other charges in Pennsylvania and two more defendants are being sought in California.
The defendants arrested in New Jersey today are scheduled to make their initial court appearance this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
According to documents filed in this case and statements made in court:
The defendants are allegedly members of a drug trafficking organization that dealt in large quantities of heroin, powder cocaine, and crack cocaine in and around Atlantic City. All but one of the defendants (see chart below) are charged with a single count of conspiracy to distribute more than five kilograms of cocaine, more than 280 grams of crack cocaine, and more than one kilogram of heroin.
The conspiracy count carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The count of money laundering carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
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 DEA’s Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; and the Atlantic City Police Department, under the direction of Police Chief Henry Wright, with the investigation leading to today’s arrests.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana V. Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS
Name
Age
Residence
42
Pleasantville, New Jersey
Kareem A. Taylor
39
Atlantic City, New Jersey
Ivan Joel Cuellar-Naranjo*
28
Los Angeles, California
Francisco Alberto Rascon-Muracami
21
Lancaster County Prison, Pennsylvania
Phillip C. Horton*
49
Inglewood, California
Tozine N. Tiller
40
Absecon, New Jersey
Talib N. Tiller
32
Pleasantville
Kabaka Atiba
43
Atlantic City
Ronald D. Byrd
49
Pleasantville
John Wellman
39
Atlantic City
Jazmin S. Vega
40
Pleasantville
*Not in custody
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Tutis, Toye et al., Indictment
Newark Man Admits Five Armed CarjackingsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted committing five armed carjackings between June 6, 2012 and June 22, 2012.
Jahleel McLendon, 21, of Newark, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with five counts of theft of a motor vehicle by force, violence, and intimidation, and one count of brandishing a firearm during a crime of violence.
According to documents filed in this case and statements made in court:
On June 6, 2012, McLendon approached a man sitting in the driver’s seat of a parked Chrysler 300 and ordered him out of the car at gunpoint. Three days later McLendon and an accomplice carjacked an Acura TL while the victim was loading the trunk of the car. On June 15, 2012, McLendon and an accomplice carjacked a Chevrolet Trailblazer at gunpoint, and approximately 20 minutes later, used that Trailblazer to carjack a BMW 325 at a gas station in Newark. On June 22, 2012, McLendon carjacked a Chevrolet Impala at gunpoint. Less than two hours later, McLendon was arrested by Newark police officers and found to be in possession of a handgun.
The carjacking counts to which McLendon pleaded guilty each carry a maximum potential penalty of 15 years in prison. The firearms charge to which McLendon pleaded guilty is punishable by a minimum consecutive term of seven years in prison and a maximum consecutive term of life in prison. Each of these charges also carries a maximum $250,000 fine. Sentencing is scheduled for March 23, 2015.
U.S. Attorney Fishman credited the Newark Police Department, under the direction of Police Director Eugene Venable and Police Chief Anthony Campos; special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; detectives with the Essex County Prosecutor’s Office, under the Direction of Acting Prosecutor Carolyn A. Murray, and investigators with the U.S. Attorney’s Office with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Cari Fais and Meredith Williams of the Criminal Division in Newark.
14-433Defense counsel: Carol Gillen, Esq., Assistant Federal Public Defender, Newark
McLendon, Jahleel Information
Middlesex County, N.J., Woman Sentenced to 30 Years in Prison for Sexually Exploiting A MinorRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, woman was sentenced today to 30 years in prison for sexually exploiting a minor female by coercing the girl to live stream sexually explicit acts via the Internet, U.S. Attorney Paul J. Fishman announced.
Jane Dornick, 53, of South Plainfield, New Jersey, pleaded guilty, prior to the selection of a jury, to Count One of an indictment charging her with three counts of sexual exploitation of a child. The remaining counts will be dismissed at sentencing. Dornick entered her plea before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and statements made in court:
On August 16, 2010, Dornick coerced and used “Victim 1,” a minor female, to perform sexually explicit acts and live stream them over the Internet to Michael Grennier, 51, who watched remotely via his computer in his home in South Plainfield.
In addition to the prison term, Judge Wolfson sentenced Dornick to lifetime supervised release.
Grennier pleaded guilty before Judge Wolfson to a separate charge of the sexual exploitation of a minor on Dec. 16, 2013, and was sentenced Nov. 21, 2014, to 20 years in prison.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s plea. Fishman also thanked the South Plainfield Borough Police Department, under the direction of Chief of Police James Parker, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew Carey, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Fabiana Pierre-Louis and Harvey Bartle, Attorney-in-Charge of the U.S. Attorney’s Trenton Office.
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Defense counsel: Bruce Throckmorton Esq., TrentonContractor Admits Conspiring to Rig Selection Process for Union City Community Development Agency ProjectsRead the Press Release
NEWARK, N.J. – A Union City contractor today admitted conspiring to rig the contractor selection process for projects run by the Union City Community Development Agency (UCCDA), causing losses of at least $70,000, U.S. Attorney Paul J. Fishman announced.
Joseph Lado, 66, of Fort Lee, New Jersey, pleaded guilty to an information charging him with one count of conspiring with agents of the UCCDA and a Jersey City, New Jersey, contractor to obtain money from the agency by fraud. Lado entered his guilty plea before U.S. District Judge William H. Walls in Newark federal court.
According to documents in this case and statements made in court:
Between June 2007 and September 2010, Lado owned Lado Construction in Union City. There were two individuals (Inspector 1 and Inspector 2) at the UCCDA, a government agency that received funds from the U.S. Department of Housing and Urban Development under a federal block grant. The funding was used for home improvement projects and sidewalk replacement projects, among other things.
Lado conspired with another individual who owned a paving contracting company in Jersey City, New Jersey (the Contractor), Inspector 1 and Inspector 2 to rig the competitive process by submitting false and materially misleading proposals for contracts to perform sidewalk replacement and residential rehabilitation. The process was rigged to favor of certain contractors, including Lado Construction. Lado caused the Contractor to provide Lado with phony proposals from the Contractor’s company that were higher than Lado’s own proposals. He also caused the contractor to provide Lado with blank proposal forms from the Contractor’s company that Lado later completed with the help of another, listing amounts that were higher than Lado Construction’s proposals for the same work. Under both of those scenarios, Lado would then submit the Contractor’s phony higher-priced proposals and his own to the UCCDA in order to obtain projects, and ultimately, HUD grant funds, from the UCCDA for the completion of the projects. Lado would also, at the request of Inspector 1 and Inspector 2, provide both inspectors with phony proposals for amounts higher than his competitors for projects that the inspectors had already decided to award to other contractors.
The conspiracy charge to which Lado pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Lado is scheduled to be sentenced on March 24, 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, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Amy Luria and Senior Litigation Counsel J Imbert of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: John M. Vazquez Esq., Roseland, N.J.
Lado, Joseph Information
Member of Multi-State Theft Scheme Sentenced to 28 Months in Prison for Selling Stolen PharmaceuticalsRead the Press Release
NEWARK, N.J. – A Miami, Florida, man was sentenced today to 28 months in prison for his role in a multi-state conspiracy to possess and sell prescription medication taken from a stolen tractor trailer, U.S. Attorney Paul J. Fishman announced.
Martin Lopez, a/k/a “El Negro,” 47, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with conspiracy to possess stolen prescription medicine. Judge Martini imposed the sentenced today in Newark federal court.
According to documents filed in this case and statements made in court:
On Dec. 2, 2009, a full shipment of prescription respiratory medicine manufactured by Dey LLP in Allen, Texas, was stolen on its way to Sandoz Inc. in Mechanicsburg, Pennsylvania. Lopez admitted that from December 2009 through March 2010, he conspired with others to acquire and sell medicine stolen from the shipment.
In early 2010, Lopez spoke with Ernesto Romero-Vidal, a/k/a “Bemba,” 48, of Hallandale, Florida, to identify a potential buyer for the stolen medicine. On March 2, 2010, Lopez arranged to have the medicine delivered to a buyer in New Jersey. Two days later, two other conspirators delivered the stolen goods to the buyer in return for $64,000 in cash, which they split with Lopez.
In addition to the prison term, Judge Martini sentenced Lopez to three years of supervised release and ordered forfeiture of $7,000.
On Dec. 18, 2013, Romero-Vidal was sentenced by Judge Martini to 80 months in prison for his role in the scheme and other federal charges.
U.S. Attorney Fishman credited special agents of the FBI, 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 detectives of the North Bergen Police Department, under the direction of Chief Robert J. Dowd, with the investigation leading to today’s sentencing.The government is represented by Senior Litigation Counsel Leslie Faye Schwartz and Assistant U.S. Attorney Jane H. Yoon of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Kathleen M. Theurer Esq., Jersey City, N.J.Former Union President Sentenced to 22 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - The former president of International Longshoremen’s Association (ILA) was sentenced today to 22 months in prison for conspiring to extort ILA Local 1235 longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Thomas Leonardis, 57, of Glen Gardner, New Jersey, the president of the union from 2008 through 2011, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to Count Three of a second superseding indictment charging him with conspiring to extort Christmastime tributes from ILA Local 1235 members. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
During their guilty plea proceedings, Leonardis – along with Vincent Aulisi, 82, of West Orange, New Jersey, the president of ILA Local 1235 from approximately 2006 through 2007; and Robert Ruiz, 56, of Watchung, New Jersey, the delegate of the union from approximately 2007 through 2010 and former ILA representative – admitted that they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Leonardis and Ruiz were suspended from their positions following their arrest in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra. Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235, and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
In addition to the prison term Judge Cecchi sentenced Leonardis to serve three years of supervised release.
Aulisi and Ruiz previously pleaded guilty before Judge Cecchi to conspiring to extort Christmastime tributes from ILA Local 1235 members. In October 2014, Aulisi and Ruiz were sentenced to 18 months and 20 months in prison, respectively.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s sentencing. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.
14-431Defense counsel: Michael N. Pedicini Esq., Chatham, New Jersey
Otismed Corporation and Former CEO Plead Guilty to Distributing FDA-Rejected Cutting Guides for Knee Replacement SurgeriesRead the Press Release
Corporation to Pay More than $80 Million to Resolve Criminal and Civil Investigations
NEWARK, N.J. – OtisMed Corp. and its former chief executive officer admitted today to intentionally distributing knee replacement surgery cutting guides after their application for marketing clearance had been rejected by the Food and Drug Administration (FDA), and the corporation agreed to pay more than $80 million to resolve its related criminal and civil liability, the Justice Department announced today.
OtisMed and its CEO, Charlie Chi, 45, of San Francisco, pleaded guilty in Newark federal court. OtisMed pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging it with distributing, with the intent to defraud and mislead, adulterated medical devices into interstate commerce in violation of the Food, Drug, and Cosmetic Act (FDCA). Judge Cecchi also sentenced the company today, fining OtisMed $34.4 million and ordering $5.16 million in criminal forfeiture. In a separate civil settlement, OtisMed agreed to pay $40 million plus interest to resolve its civil liability. Chi pleaded guilty before U.S. Magistrate Judge Mark Falk to three counts of introducing adulterated medical devices in interstate commerce. Chi will be sentenced by Judge Cecchi on March 18, 2015.
“It is vital that products like the OtisKnee are subjected to the appropriate level of scrutiny,” U.S. Attorney Paul J. Fishman said. “Patients seeking medical care are vulnerable; they are often afraid, and in pain. They should be able to trust their doctors. And they should be entitled to trust that the devices their doctors are using are safe, effective, tested, and approved. OtisMed and Charlie Chi betrayed that trust.”
“Americans must be able to trust that they are treated with medical devices that have been shown to be safe and effective,” Deputy Assistant Attorney General Jonathan Olin for the Justice Department’s Civil Division said “The Department of Justice will not tolerate companies and individuals that cut corners when it comes to the public’s health.”
The civil settlement resolves claims filed under the whistleblower provisions of the False Claims Act, which permit private parties to file suit on behalf of the United States and obtain a portion of the government’s recovery. The civil lawsuit was filed in the District of New Jersey and is captioned U.S. ex rel. Adrian v. OtisMed Corp., et al.
OtisMed was a privately held company when OtisMed and Chi committed the criminal conduct, and was later acquired by Stryker Corp., a medical technology company based in Michigan, in November 2009. At the time the shipments were made in September 2009, Stryker executives were not aware that OtisMed and Chi had shipped cutting guides after the FDA had rejected the company’s application for marketing clearance for the device. Stryker, OtisMed’s parent corporation, cooperated with the government with regard to Otismed’s pre-acquisition conduct throughout the investigation. In addition to the criminal pleas and civil resolution, OtisMed also agreed to be excluded from participating in all federal health care programs for a period of 20 years and Stryker separately agreed to a series of compliance measures aimed at preventing future misconduct.
According to documents filed in this case and statements made in court:
Chi was among the founders of OtisMed in August 2005, and conceived of the OtisKnee orthopedic cutting guide, its primary product. Chi acted as OtisMed’s president, chief executive officer and board of directors’ chairman until OtisMed was acquired by Stryker in November 2009. The OtisKnee was used by surgeons during total knee arthroplasty (TKA), commonly known as knee replacement surgery. The surgical procedure requires a surgeon to remove the ends of the leg bones and to reshape the remaining bone to accommodate the implantation of an artificial knee prosthesis. The cuts to the bone must be made at precise angles because they are critical to the clinical result; failure to achieve the correct angle in TKA procedures can result in failure of the bones and/or the implanted prosthetic joint.
OtisMed marketed the OtisKnee cutting guide as a tool to assist surgeons in making accurate bone cuts specific to individual patients’ anatomy based on magnetic resonance imaging (MRI) performed prior to surgery. None of OtisMed’s claims regarding the OtisKnee device were evaluated by the FDA before the company used them in advertisements and promotional material.
Between May 2006 and September 2009, OtisMed sold more than 18,000 OtisKnee devices, generating revenue of approximately $27.1 million.
On Oct. 2, 2008, OtisMed submitted a pre-market notification to the FDA seeking clearance to market the OtisKnee. The company had not previously sought the FDA’s clearance or approval and had been falsely representing to physicians and other potential purchasers that the product was exempt from such pre-market requirements.
On Sept. 2, 2009, the FDA sent OtisMed a notice that its submission had been denied, noting that the company had failed to demonstrate that the OtisKnee was as safe and effective as other legally marketed devices. The letter warned OtisMed that distribution of the OtisKnee prior to approval would be an FDCA violation, and indicated the FDA viewed the product as a “significant risk device system,” which is defined as presenting a potential for serious risk to the health, safety or welfare of a subject. Chi and others at OtisMed received advice from legal and regulatory counsel confirming it would be unlawful for OtisMed to continue distributing the OtisKnee.
Though the board of directors unanimously decided to stop further shipments of the devices, Chi and others at OtisMed were concerned that inconveniencing surgeons planning to use the OtisKnee in scheduled surgeries would exacerbate the negative impact of the FDA letter on the reputation of OtisMed and the device. Chi directed OtisMed employees to organize a mass shipment of all OtisKnee devices that had been manufactured but had not yet been shipped and suggested ways for the employees to hide the shipments from FDA regulators.
At Chi’s direction, OtisMed shipped approximately 218 OtisKnee guides from California to surgeons throughout the United States, including 16 to surgeons in New Jersey. Both Chi and OtisMed admitted that Chi ordered the distribution a week after the FDA denied OtisMed’s request for clearance.
“Companies and individuals put the public health at risk by not complying with FDA regulatory requirements for the pre-market review of medical devices,” said Acting Director Philip J. Walsky for the FDA’s Office of Criminal Investigations. “We will continue to assure consumer confidence in FDA-regulated products by investigating and bringing to justice those who endanger patient safety by distributing unapproved surgical devices.”
“When OtisMed and its CEO, Charlie Chi, distributed medical devices that were not FDA-approved, they violated the trust that patients extend to health care professionals. This outrageous behavior triggered our agency to exclude OtisMed from participating in Medicare and Medicaid for 20 years,” Special Agent in Charge Thomas O’Donnell of the New York Regional Office of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) said. “We will continue to work with our law enforcement partners to protect federally funded health care programs and the patients who rely on those programs.”
The civil settlement resolves allegations arising from the marketing and distribution of the OtisKnee without receiving approval or clearance from the FDA for the device. Specifically, the settlement alleged that in May 2006, OtisMed, through co-promotion activities with Stryker Corporation, began commercially distributing the OtisKnee without having received clearance or approval from the FDA for the device. OtisMed continued to distribute the device while its application was pending and even after the FDA informed OtisMed that the product could not be lawfully distributed until FDA approved the device.
The settlement also alleged that OtisMed encouraged health care providers to submit claims for MRIs that were not reimbursable because they were not performed for diagnostic use, but rather solely to provide data for the creation of the OtisKnee. 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.The company will pay approximately $41.2 million, including interest, to resolve its civil liability for submitting false claims to the Medicare, TRICARE, Federal Employees Health Benefits and Medicaid programs. Of that amount, approximately $41 million will be paid to the federal government. Medicaid is funded jointly by the states and the federal government and participating Medicaid states will receive approximately $376,700 of the settlement amount. As part of today’s resolution, the relator will receive approximately $7 million.
In addition to agreeing to continue to cooperate with the government’s investigation and maintain a compliance program, Stryker agreed to conduct a review and audit regarding whether other marketed devices have the appropriate FDA approvals and share the results of that audit with the government. Stryker also agreed to annual certifications from the president of Stryker’s orthopedics group and from Stryker’s board of directors regarding the effectiveness of the compliance program.
Chi faces a statutory maximum sentence of one year in prison and a $100,000 fine, or twice the gain or loss from the offense, for each of the three counts of introducing adulterated medical devices in interstate commerce.
The guilty pleas and civil settlement are the culmination of a long-term investigation conducted jointly by the FDA’s Office of Criminal Investigations, under the direction of Special Agent in Charge Antoinette V. Henry, and HHS-OIG, under the direction of Special Agent in Charge O’Donnell. Counsel to the HHS-OIG and FDA’s Office of Chief Counsel to the FDA also assisted. The National Association of Medicaid Fraud Control Units, along with the Medicaid Fraud Control Unit of the Massachusetts Attorney General’s Office, assisted in coordinating the settlements with the various states.Additional assistance was provided by the Defense Health Agency and the Office of Personnel Management–Office of the Inspector General.
This resolution illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.2 billion through False Claims Act cases, with more than $14.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The government is represented in the criminal case by Jacob T. Elberg, chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit and Trial Attorney Ross S. Goldstein of the Justice Department’s Consumer Protection Branch, and in the civil settlement by Assistant U.S. Attorney Charles Graybow of the District of New Jersey’s Health Care and Government Fraud Unit, and Trial Attorney Charles Biro of the Justice Department’s Civil Division.
U.S. Attorney Fishman reorganized the health care fraud practice at the U.S. Attorney’s Office for the District of New Jersey shortly after taking office, including creating the 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 $620 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the FDCA and other statutes.
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Defense counsel:
OtisMed: Brien O’Connor Esq.; Joshua Levy Esq., Boston
Charlie Chi: Peter Harvey Esq., New YorkCounsel for Relator Richard Adrian: Joseph Callow Esq., Cincinnati, Ohio; Joel Hesch Esq., Lynchburg, Virginia
OtisMed Documents
Ocean County, N.J., Man Sentenced to One Year in Prison for His Role in Multi-Million Dollar Real Estate Investment SchemeRead the Press Release
TRENTON, N.J. – A Lakewood, New Jersey, man was sentenced today to one year and one day in prison for his part in a real estate investment fraud scheme that defrauded investors of more than $1 million, U.S. Attorney Paul J. Fishman announced.
Alex Schleider, 49, previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with one count of wire fraud. Judge Pisano imposed the sentence today in Trenton federal court.According to documents filed in this case and statements made in court:
Schleider, Eliyahu Weinstein, 39, of Lakewood, and the other defendants persuaded victims to invest in the purported purchase of an apartment complex, “Belle Glade Gardens,” in Florida. They told the victims that Weinstein had the opportunity to purchase Belle Glade Gardens at a discounted price and immediately flip it at a substantial profit. Schleider and Weinstein further told the victims that Weinstein had already placed $2.5 million in the trust account of a Miami law firm for the transaction; that if the victims contributed another $2.5 million toward the transaction, those funds would remain in escrow at the Miami law firm until the deal closed; and that the victims would be repaid within 60 days. The victims wired $2.83 million to the Miami law firm in order to complete the Belle Glades Gardens transaction. Schleider and Weinstein did not use the money to purchase Belle Glades Gardens. Instead, they redirected the money from the law firm to accounts that they controlled, returned $1.8 million to the victims as a purported return on a prior Facebook investment, and used the remaining money for their own purposes.
In addition to the prison term, Judge Pisano Schleider to serve three years of supervised release and ordered him to pay restitution of $613,200 and forfeiture of $363,200.
Weinstein, 39, also pleaded guilty to charges related to his role in the scheme and is scheduled for sentencing on Dec. 15, 2014. Charges against a third conspirator, Aaron Muschel, 64, of Brooklyn, New York, who was charged in the criminal complaint filed against Weinstein and Schleider in May 2013, remain pending. The charges against him are merely accusations and he is presumed innocent until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Aaron T. Ford in Newark, for the investigation leading to today’s sentencing. 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; Assistant U.S. Attorney Zach Intrater, Deputy Chief of the General Crimes Unit; and Evan S. Weitz of the Asset Forfeiture and Money Laundering 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.
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Defense counsel: Marc Agnifilo Esq., New YorkDocuments and Resources from the December 8, 2014, OtisMed and Charlie Chi Press ConferenceRead the Press Release
Press Release
OtisMed News Release
Court Documents:OtisMed
OtisMed Information
OtisMed Plea Agreement with Attachments
Stryker Side Letter Agreement
OtisMed Civil Settlement Agreement
Charlie Chi
Charlie Chi Information
Charlie Chi Plea Agreement
Government Exhibits from OtisMed Sentencing:Exhibit 1
Exhibit 2
Exhibit 3 - Video with no audio. Video description: The bones of the diseased preoperative knee joint rotate on the left side of the screen. On the right, a progressive series of magnetic resonance imaging (MRI) images of the same knee are displayed. The MRI images are transformed into a computer-generated three dimensional model of the knee that rotates in the center of the screen. A computer-generated yellow grid is superimposed over the surfaces of the rotating computer model, illustrating the contours of the bone structure. As it rotates, the prosthetic knee implant appears, affixed to the articular surfaces of the bones. The screen then returns to the depiction of the diseased knee, and the OtisKnee cutting guide is affixed to the surface of the femoral condyles. A bone saw is inserted through the cutting guide and cuts through the bone. The guide and cut surface are removed to reveal the prepared femoral surface, following the completion of the femoral cuts. The metallic femoral knee prosthesis is affixed to the femur. The same cutting process is illustrated with regard to the tibia: the OtisKnee cutting guide is placed over the diseased tibial end, the bone saw is inserted through the slot in the cutting guide, removing the articular surface, and the tibial prosthetic implant is placed on the cut surface.
West Milford Township, New Jersey, Man Charged with Distributing Sexually Explicit Images of ChildrenRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was arrested at his home today by special agents of the FBI and officers of the Passaic County Sheriff’s Office and West Milford Police Department on a charge that he distributed sexually explicit images of children from his computer, U.S. Attorney Paul J. Fishman announced.
Thomas Bachalis, 30, of West Milford Township, New Jersey, is charged by complaint with one count of distributing images of child pornography over the Internet. He is scheduled to make his initial court appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the complaint:
On Aug. 15, 2013, Bachalis allegedly distributed images depicting child sexual abuse on the Internet via peer-to-peer file sharing software. In September 2013, officers of the Passaic County Sheriff’s Office executed a search warrant at Bachalis’ residence and seized digital evidence that contained images depicting child sexual abuse—including material involving prepubescent minors.
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 the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik; and the West Milford Police Department, under the direction of Chief Timothy Storbeck, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Courtney A. Howard 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 presumed innocent unless and until proven guilty.
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Bachalis, Thomas Complaint
Three Members of Drug Trafficking Organization Admit to Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – Three members of a large-scale drug trafficking organization have admitted conspiring to distribute heroin in Ocean and Monmouth counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced today.
Richard Durham, 28, of Brick, New Jersey, Jamar Johnson, 35, a/k/a “Rep,” of Lakewood, New Jersey, and Anthony J. Brooks, 45, of San Bernadino, California, all pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to informations charging them with conspiring to distribute heroin. Durham entered his plea today. Johnson and Brooks entered their pleas on Dec. 1, 2014, and Nov. 24, 2014, respectively.In March 2014, 18 other alleged members of the drug trafficking organization of which Durham, Johnson, and Brooks were members were charged by criminal complaint with conspiring to distribute heroin. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of those 18 individuals, five have pleaded guilty.
According to documents filed in this case and statements made in court:
Between September 2013 and March 2014, Johnson and Durham conspired with Rufus Young and others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO.
Brooks shipped through the U.S. Postal Service packages from California containing large quantities of heroin and cocaine to conspirators in New Jersey, including an individual who supplied heroin to the Britt-Young DTO. The conspirators in New Jersey then transported and packaged the narcotics and distributed them to others. Brooks shipped more than 1 kilogram of heroin and 1.5 kilograms of cocaine from California to New Jersey.
The narcotics conspiracy charge to which Durham and Johnson pleaded guilty carries a maximum penalty of 20 years in prison and $1 million fine. The charge to which Brooks pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a $5 million fine. Sentencing for Durham is scheduled for March 10, 2015. Johnson’s sentencing is scheduled for March 9, 2015, and Brooks’ sentencing is scheduled for March 2, 2015.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense Counsel:
Durham: Scott Krasny Esq., West Trenton, N.J.
Johnson: Joshua Markowitz Esq., Lawrenceville, N.J.
Brooks: Ryan Clark Esq., Freehold, N.J.Durham, Richard Information
Brooks, Anthony, Information
Johnson, Jamar InformationSecond Burlington County, N.J. Man Pleads Guilty to South Jersey Bank Robbery SpreeRead the Press Release
CAMDEN, N.J. - A Burlington Township, New Jersey, man today admitted seven bank robberies of South Jersey banks between November 2013 and January 2014, U.S. Attorney Paul J. Fishman announced.
David Glenn, 23, pleaded guilty before Chief U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with seven counts of bank robbery.
According to documents filed in this case and statements made in court:
Glenn robbed the following New Jersey banks on the dates below:
Beneficial Savings Bank
Willingboro
Nov. 14, 2013
Willingboro
Nov. 26, 2013
PNC Bank
Mount Laurel
Nov. 29, 2013
3rd National Bank
Delran
Dec. 12, 2013
Roma Bank
Delran
Dec. 12, 2013
TD Bank
Bellmawr
Jan. 8, 2014
PNC Bank
East Windsor
Jan. 8, 2014
Glenn admitted he robbed the banks with Shalir Hall, 21, of Edgewater Park, New Jersey. The two men took turns going into the banks and staying in the getaway vehicle.
The charges to which Glenn pleaded guilty each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. In addition, Glenn’s plea agreement also requires him to make full restitution to each of the banks. Sentencing is scheduled for March 13, 2015.
Hall pleaded guilty before Judge Simandle on Nov. 14, 2014, and is currently scheduled for sentencing on Feb. 27, 2015. Both defendants have been in custody since Jan. 15, 2014, when they were detained on charges filed by the Burlington County Prosecutor’s Office.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agents in Charge Aaron T. Ford and Edward J. Hanko in Newark and Philadelphia, respectively, with the investigation leading to today’s guilty plea. He also thanked the Camden County Prosecutor’s Office and the Burlington County Prosecutor’s Office; the Burlington County Sheriff’s Department Warrant Unit; and the U.S. Marshals Service New York/New Jersey Regional Fugitive Task Force; as well as the East Windsor Township Police Department, Willingboro Police Department, Maple Shade Police Department, Delran Township Police Department, Mount Laurel Police Department, Philadelphia Police Department and the Hazelton, Pennsylvania Police Department for their work on the case.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney's Office Criminal Division in Camden.
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Defense counsel: Lisa Evans Lewis Esq., Assistant Federal Public Defender, Camden
Glenn, David Information
California CPA Charged with Defrauding New Jersey Religious Center Out of More Than $4 MillionRead the Press Release
NEWARK, N.J. - A California CPA who allegedly stole more than $4 million from a worship center in New Jersey, is scheduled to have his initial New Jersey court appearance on Dec. 8, 2015, U.S. Attorney Paul Fishman announced.
Donald Gridiron, 50, is charged by complaint with one count of wire fraud. He was arrested in California Dec. 2, 2014, by FBI agents and released on bail after appearing in court there.
According to the complaint:
The worship center, a religious facility located in New Jersey, hired Gridiron based,
in part, on his connections with individuals in the religious community as well as his standing within that community. The worship center agreed to pay Gridiron a monthly salary and reimburse him for reasonable expenses related to his work.Gridiron allegedly used his employment to obtain additional money from the worship center without authorization. He had the worship center’s bank accounts transfer more than $2.75 million to accounts he controlled and more than $1.5 million to an account associated with a foundation in which Gridiron was involved. Gridiron then used funds from his accounts for his own use, including payments on a mortgage for his residence, payments to a luxury car dealership, and withdrawals in furtherance of his gambling.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Gridiron or twice the gross loss suffered to the victims of his offense.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; law enforcement officers of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s arrest. He also thanked special agents of the FBI in California for their assistance.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.14-427
Gridiron, Donald Complaint
President of Middlesex County, New Jersey, Investment Company Sentenced to 15 Months in Prison for Defrauding InvestorsRead the Press Release
NEWARK, N.J. – The former president of a Middlesex County, New Jersey, investment company was sentenced today to 15 months in prison for defrauding investors out of more than $250,000, U.S. Attorney Paul J. Fishman announced.
Shreyans Desai, 27, of Edison, New Jersey, president of Shreysiddh Capital LLC, located in Iselin, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to Counts One and Two of a superseding indictment charging him with wire fraud. The third count in the indictment, securities fraud, was dismissed after Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Desai misled a number of investors about his licensing status and the registration status of the company to induce them to entrust their money to him so that he could trade securities on their behalf. Desai then sought to retain control of the funds by providing investors with an inflated value of their investments and also inflated the amount of commissions he purportedly earned through trading those funds.In addition to the prison term, Judge Martini sentenced Desai to three years of supervised release and ordered to pay restitution of $121,250.
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.
The government is represented by Assistant U.S. Attorney Jane H. Yoon and Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: Alyssa A. Cimino Esq., Fairfield, N.J.Paterson City Council Member and Former City Council President Pleads Guilty to Agreeing to Accept and Accepting BribesRead the Press Release
NEWARK, N.J. – A Paterson City Council member and former council president today admitted accepting bribes from a purported developer in exchange for his official help, New Jersey U.S. Attorney Paul J. Fishman announced.
Anthony Davis, 50, of Paterson, New Jersey, pleaded guilty today before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of attempting to obstruct, delay and affect interstate commerce by extortion under color of official right.
According to documents filed in this case and statements made in court:
On April 20, 2012, Davis accepted $5,000 in cash from an individual who was cooperating with federal authorities and who purported to be an out-of-state real estate developer. Davis accepted the bribe in exchange for his official action as Paterson City Council president to foster the developer’s business interests in Paterson. Between July 6, 2012, and July 25, 2012, Davis had meetings with the developer, during which Davis discussed the possibility of accepting additional money from the developer in exchange for a letter from Davis to the developer’s lender indicating that the Paterson City Council supported the developer with respect to certain business endeavors in Paterson. On July 25, 2012, Davis agreed to accept and accepted $5,000 in cash from the developer in exchange for such a letter.
The extortion count to which Davis pleaded guilty is punishable by up to 20 years in prison and a fine of the greater of $250,000 or twice the gross pecuniary loss or gain from the offense. Sentencing is scheduled for March 18, 2015.
U.S. Attorney Fishman credited special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division.
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Defense counsel: Randy Davenport Esq., Piscataway, N.J.
Davis, Anthony Information
Ohio Woman Sentenced to Six Months in Prison, Six Months' Home Confinement, for Creating Fictitious Evidence to Obstruct A Federal InvestigationRead the Press Release
NEWARK, N.J. - An Ohio woman who claimed she investigates labor unions on behalf of attorneys was sentenced today to six months in prison and six months’ home confinement for impeding a federal investigation, U.S. Attorney Paul J. Fishman announced.
Debbie Shank Morgan, 58, of Euclid, Ohio, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging her with one count of obstruction of justice. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In May 2012, Morgan contacted federal agents from the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL-OIG) in New Jersey, a law enforcement agency that investigates allegations related to federal crimes, such as bribery and theft, involving labor unions, union officers, and employee benefit plans.
Morgan said she was a non-practicing lawyer who investigates crimes associated with labor unions, employee benefit plans and other alleged violations of federal criminal and civil law. Morgan said she had information that a former union officer and his father, both from an international labor union, had committed serious violations of federal law. She alleged they had embezzled $30 million from a political action committee (PAC) associated with the union.
Morgan provided federal agents with e-mails and other documents and items as evidence. She had, in fact, falsified, altered and created these items. Morgan provided federal agents with e-mails she claimed were evidence in support of her allegations. Federal agents then obtained a court-authorized search warrant and seized the actual e-mails transmitted through the service provider. The e-mails from the search warrant demonstrated that she had altered and fabricated the e-mails before giving them to federal agents. In September 2012, she claimed that an unknown individual had fired a weapon at her car while she was driving it in Ohio. Morgan then provided federal agents with two digital recordings, allegedly with the wife of the alleged shooter. In these consensual recordings, the wife admitted that her husband had fired a weapon at Morgan’s car. The recordings, however, were fabricated and created by Morgan and an unknown third party.
In addition to the prison term, Judge McNulty sentenced Morgan to serve three years of supervised release and fined her $5,000.
U.S. Attorney Fishman credited special agents of the U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, New York Region, under the direction of Special Agent in Charge Cheryl Garcia, for the investigation.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Jack A. Meyerson Esq., Philadelphia
Gloucester County, New Jersey, Man Sentenced to Four Years in Prison for Conspiring to Distribute OxycodoneRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 48 months in prison for conspiring to distribute 5,000 oxycodone pills, U.S. Attorney Paul J. Fishman announced.
Kristopher Williams, 29, of Glassboro, New Jersey, previously pleaded guilty before U.S. District Judge Noel H. Hillman to an information charging him with conspiracy to distribute and possess with intent to distribute oxycodone. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Williams admitted that he and his conspirator, Corey Glenn, sought to obtain 5,000 oxycodone 30 milligram tablets in exchange for $30,000 in April 2012. Glenn previously pleaded guilty to the conspiracy charge and was sentenced on August 18, 2014, to 132 months’ in prison, followed by four years’ supervised release.
In addition to the prison term, Judge Hillman sentenced Williams to three years of supervised release.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, 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.
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Defense counsel: Nino V. Tinari Esq. Philadelphia
Essex County, New Jersey, Lawyer Admits Smuggling Marijuana into Federal Pretrial Detention FacilityRead the Press Release
TRENTON, N.J. – An attorney from Maplewood, New Jersey, today admitted his involvement in a scheme to smuggle contraband, including marijuana and tobacco, into the Essex County Jail, a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
Brian Kapalin, 67, pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of conspiring to smuggle contraband into a federal detention facility.
According to the documents filed in this case and other cases and statements made in court:
From September 2013 to May 2014, Kapalin accepted packages of contraband containing marijuana and tobacco from Vladimir Sauzereseteo, 40, of East Orange, New Jersey. In exchange for cash payments from Sauzereseteo, Kapalin agreed to smuggle the contraband to federal pretrial detainees at the Essex County Jail, including Sauzereseteo’s brother, Muhammad Subpunallah, 32.
In January 2014 Subpunallah gave Kapalin $500 to deliver a package of marijuana to another inmate. Kapalin met with the inmate at the jail’s attorney conference room and gave him the contraband. Kapalin admitted delivering multiple packages of marijuana to a third inmate at the Essex County Jail between August 2013 and May 2014 in return for $500 per package.
The conspiracy charge to which Kapalin pleaded guilty carries a maximum penalty of five years in prison and a maximum fine of $250,000. Sentencing is scheduled for March 18, 2015.
Sauzereseteo previously pleaded guilty to one count of conspiring to smuggle contraband into a federal detention facility and is scheduled to be sentenced on Dec. 4, 2014. Charges against Subpunallah are still pending and he is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and investigators with the Internal Affairs Division of Essex County Jail, under the leadership of Warden Roy Hendricks, 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 Criminal Division, Organized Crime/Gangs Unit, in Newark.
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Defense counsel: Michael Pedicini Esq., Chatham, New JerseyKapalin, Brian Information