District of New Jersey
Press releases recorded for this federal judicial district.
Chilean National Charged with Conspiracy and Possessing Property Stolen from Burglary of Jewelry StoreRead the Press Release
NEWARK, N.J. – A Chilean man, believed to be part of a South American theft group, is charged for his involvement in a conspiracy to break into a jewelry store in New Jersey and possess the stolen property in other states, Acting U.S. Attorney Vikas Khanna announced.
Gustavo Ignacio Salas Ortega, 33, of Chile, is charged by complaint with one count of conspiracy to receive stolen property that had crossed state lines and one count of receiving stolen property that had crossed state lines. ICE ERO Newark arrested Salas Ortega on October 14, 2024, in Rochelle Park, New Jersey.
“Sophisticated and highly organized burglars that allegedly target businesses do great damage and put the public at risk. The defendant is charged with conspiring to break into a jewelry store in New Jersey to steal expensive wristwatches and jewelry and then taking the valuables to other states. This office is committed to finding the perpetrators of these crimes and preventing them from continuing to harm our businesses.”
Acting U.S. Attorney Vikas Khanna
“The Joint Organized Crime Task Force has been working tirelessly to apprehend these alleged criminals, following a labyrinth of conspirators that span multiple states.” FBI-Newark Acting Special Agent in Charge Terence G. Reilly said. “These alleged criminals are part of South American theft groups who have been targeting stores throughout the United States for months. These alleged thieves have worked equally hard to evade law enforcement as they have to infiltrate the very businesses they have ripped off. This charge marks a positive step forward towards dismantling this group.”
“As alleged, the illegal alien offender threatened the public safety of our community by participating in an organized theft group,” said ICE ERO Newark Field Office Director John Tsoukaris. “These charges against Salas Ortega demonstrate ICE ERO Newark’s commitment to uphold the integrity of our immigration system while promoting the security of New Jersey’s residents.”
“We are incredibly proud of the tireless efforts of our detectives and the collaborative work with federal agencies that led to the identification of these suspects. This case underscores the importance of community and inter-agency cooperation in solving complex crimes,” said Millburn Police Chief Gilfedder. “Our department remains committed to bringing those responsible to justice and ensuring the safety of our residents and businesses.”
Salas Ortega appeared on February 4, 2025, before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
The defendant was part of a group that scouted a jewelry store in a New Jersey mall before committing the burglary. The defendant and his co-conspirators then entered the jewelry store through the ceiling and a hole they cut through an adjacent wall. Law enforcement later found the defendant wearing an expensive wristwatch that had been in the jewelry store at the time of the burglary. Further investigation showed that the defendant had possessed the stolen wristwatch in New York on multiple days after the burglary.
The charge of conspiracy to sell or receive stolen property carries a maximum penalty of five years in prison; and the charge of receipt of stolen property carries a maximum potential penalty of ten years in prison. Both charges also carry a maximum potential penalty of up to a $250,000 fine, or twice the amount of money involved in the offense, whichever is greater.
Acting U.S. Attorney Khanna credited the FBI Newark’s Joint Organized Crime Task Force (JOCTF), under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark; Immigration and Customs Enforcement – Enforcement and Removal Operations, under the direction of Field Office Director John Tsoukaris; the Millburn Police Department under the direction of Chief Brian Gilfedder; and the Port Authority of New York and New Jersey Police Department, under the direction of Superintendent of Police Edward T. Cetnar, with the investigation leading to the charges. He also thanked the Denver Police Department, Paramus Police Department, Fair Lawn Police Department, Edison Police Department, Northbrook (IL) Police Department, Vacaville (CA) Police Department, Nassau County (NY) Police Department, Woodbury (NY) Town Police Department, Town of Greenburgh (NY) Police Department, New York Police Department, New Jersey State Police, Essex County Prosecutor’s Office, U.S. Customs and Border Protection, FBI Denver, FBI New York, and the FBI Legal Attaché Santiago, Chile.
The government is represented by Assistant U.S. Attorney Trevor A. Chenoweth of the Narcotics/OCDETF 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.
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Defense counsel:
Mary Toscano, Esq., Roseland, New Jersey
salas_ortega.complaint.pdfDallas, Texas Man Admits Making Threats of Violence Against Sikh OrganizationRead the Press Release
CAMDEN, N.J. – A man from Dallas County, Texas admitted to a federal hate crime and for making interstate threats against the employees of a Sikh nonprofit organization, Acting U.S. Attorney Vikas Khanna for the District of New Jersey and Deputy Assistant Attorney General Kathleen Wolfe of the Justice Department’s Civil Rights Division announced.
Bushan Athale, 49, of Dallas, Texas, pleaded guilty today before U.S. District Judge Edward S. Kiel in Camden federal court to an Information charging him with one count of interfering with federally protected activities through the threatened use of a dangerous weapon and one count of transmitting an interstate threat to injure another person. Sentencing is scheduled for June 3, 2025.
“Threats of violence have no place in our society,” said Vikas Khanna, Acting U.S. Attorney for the District of New Jersey. “Every individual in this country must be free to practice their religion without fear of violence or persecution. We will continue to ensure the safety of our communities by prosecuting those who threaten our basic American freedoms.”
“Every citizen has the right to feel safe, secure, and free from fear of violence or hate,” said Wayne A. Jacobs, Special Agent in Charge of the FBI’s Philadelphia Field Office. “We are deeply grateful to our law enforcement and community partners who stand with us daily. Together, we remain steadfast in pursuing those who threaten the safety and well-being of the people we are sworn to protect.”
According to documents filed in the case and statements made in court:
On or about September 17, 2022, Athale called the main number of an organization that advocates for the civil rights of Sikh individuals within the United States. Over the course of the next hour, Athale left seven voicemails expressing hatred toward Sikh individuals working at this same organization and threatening to injure or kill these individuals with a razor.
Athale’s voicemails, which were filled with violent imagery and obscenity, contained references to places, people, and tenets that are particularly significant within the Sikh religion. Among other things, Athale stated his intention to “catch” the Sikhs at Organization 1, forcibly shave their “top and bottom hair,” use a “razor” to “cut” their hair and “make” them bald, “make” them smoke and eat tobacco, and “show [them] the heaven.”
On March 21, 2024, Athale again called the same Sikh organization and left two more voicemails. In these voicemails, Athale again used violent, sexual imagery to express his hatred toward Sikhs as well as Muslims, and spouted antisemitic rhetoric.
During his guilty plea, Athale also admitted to additional conduct reflecting his long history of making violent threats rooted in religious animus. For example, Athale admitted that on November 6, 2021 and November 7, 2021, he had sent electronic messages to a former co-worker, in which he stated that he “hate[d] Pakistan” and “hate[d] Muslims.” Athale wrote, “I hate you, I just don’t know how to kill your whole family including you? Tell me??? I will figure it out […] Probably I will hire a Jew, they will be most happy.”
Athale also admitted that, from May 28, 2024 to May 31, 2024, he had sent threatening electronic messages to a recruiter who he believed to be a Muslim. Athale wrote statements such as “you will be dead, get out [expletive] Muslim” and “If you dont [sic] back off you are killed.”
The charge of interfering with federally protected activities carries a maximum potential penalty of ten years in prison and the charge of transmitting an interstate threat carries a maximum potential penalty of five years in prison. Both charges also carry a maximum potential penalty of up to a $250,000 fine. The defendant also may be sentenced to a term of supervised release after any term of imprisonment imposed.
Acting U.S. Attorney Khanna credited the special agents of the FBI of the Philadelphia Division, under the direction of Special Agent in Charge Wayne A. Jacobs, with the investigation leading up to this guilty plea.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the Special Prosecutions Division in Camden, Assistant U.S. Attorney Jason M. Richardson of the Civil Rights Division in Camden, and Trial Attorney Eric Peffley of the Justice Department’s Civil Rights Division.
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Defense Counsel: AFPD Maggie Moy
athale.information.pdfNorth Carolina Man Charged with Transportation and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Wilmington, North Carolina man was charged with transporting and possessing videos and images of child sexual abuse, Acting U.S. Attorney Vikas Khanna announced.
Barry Grant Bevier, 61, of Wilmington, North Carolina, is charged by complaint with one count of transportation of child pornography and one count of possession of child pornography. He appeared today before U.S. Magistrate Judge Stacey D. Adams in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On November 26, 2024, Bevier returned from an international trip aboard a flight that landed at Newark Liberty International Airport. After Bevier arrived in Newark, law enforcement officers searched Bevier’s cellular phone and found approximately forty-five photographs and approximately twenty-one videos depicting child sexual abuse material. The officers found multiple photographs and videos of child sexual abuse material that Bevier took himself, along with a “selfie” image of himself and one of the victims.
The charge of transportation of child pornography carries a statutory mandatory minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison. The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison. Each count also carries a fine of up to $250,000 or twice the gain or loss from the offense, whichever is greatest.
Acting U.S. Attorney Khanna credited special agents of Homeland Security Investigations (“HSI”)—Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation leading to the charges. He also thanked U.S. Customs and Border Protection in New Jersey for its assistance.
The government is represented by Assistant U.S. Attorney Trevor A. Chenoweth of the Narcotics/OCDETF Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel: Paul A. Di Lella, Esq., Parsippany
bevier.complaint.pdfHudson County Man Charged with Online Enticement of A MinorRead the Press Release
NEWARK, N.J. – A Hudson County man has been charged with enticing a minor to engage in criminal sexual conduct, Acting U.S. Attorney Vikas Khanna announced.
Ryan Niksa, 34, of Jersey City, New Jersey, was charged in a one-count complaint with enticement of a minor to engage in sexual activity. He had an initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court on January 29, 2025, and was ordered detained.
According to documents filed in this case and statements made in court:
Since in or around August 2024, Niksa communicated with a minor victim located in another state through social media applications and text messages. Niksa and the minor victim exchanged sexually explicit photos and videos. Niksa expressed his desire to live with the minor victim, discussed traveling to the minor victim’s home state to be with her, and discussed running away with the minor victim to another country where they could evade law enforcement.
Enticement of a minor carries a mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison, as well as a $250,000 fine.
Acting U.S. Attorney Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, the Jersey City Police Department, under the direction of Director James Shea, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Alison Thompson of the Organized Crime and Gangs 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.
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Defense counsel: Shaiba Rather, Assistant Federal Public Defender
niksa.complaint.pdfUnion County Man Sentenced to 57 Months in Prison for Stolen Vehicles ConspiracyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey man was sentenced to 57 months in prison for his role in a conspiracy to receive, retitle, and “re-VIN” stolen vehicles, Acting U.S. Attorney Vikas Khanna announced.
Nathaniel Bell, 27, of Linden, New Jersey, previously pleaded guilty before Senior U.S. District Judge Stanley R. Chesler to a seven-count information charging him with one count of conspiracy to receive stolen vehicles, five counts of altering or removing motor vehicle identification numbers (VINs) and one count of transportation of stolen vehicles.
According to documents filed in this case and statements made in court:
Bell was the leader of a criminal conspiracy that obtained stolen vehicles from New Jersey, New York, Florida, and other states, obtained fraudulent titles for the stolen vehicles, and altered vehicle identification numbers to conceal the fact that the vehicles were stolen. Bell and his co-conspirators then sold the stolen cars to dealerships or individual purchasers so they could make a profit. In at least two instances, the co-conspirators sold a stolen car to an individual purchaser and then stole it back so they could sell it again. Bell also knowingly altered or removed the VIN numbers on five vehicles and knowingly transported a stolen vehicle between New York and New Jersey.
In addition to the prison term, Judge Chesler sentenced Bell to three years of supervised release and ordered him to pay restitution.
Bell’s co-conspirators, Johnathan Tanksley, 31, of Orange; L’Hubermane Felix, 25, of Miami, Florida; and Dayanna Sarango-Hidalgo, 29, of Newark, have all pleaded guilty to conspiracy to receive stolen vehicles. Felix was previously sentenced to 24 months in prison. Tanksley and Sarango-Hidalgo await sentencing.
Acting U.S. Attorney Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation that led to the sentencing. He also thanked the New Jersey State Police Auto Theft Task Force; the Port Authority of New York and New Jersey; the New Jersey Motor Vehicle Commission; the Union County Prosecutor’s Office; the National Insurance Crime Bureau; the Jersey City Police Department; the Belleville Police Department; the Rahway Police Department; the Linden Police Department; the Roselle Police Department; the Eatontown Police Department; the Freehold Police Department; the Elizabeth Police Department; the Miami Police Department (Florida); the Florida Highway Patrol; Florida Fish and Wildlife Conservation Commission; the Howard County Police Department (Maryland); the New York Police Department; the Nassau County Police Department (New York); the Georgia Department of Revenue; the New Jersey Division of Criminal Justice; the Deputy Attorney General’s Office; the FBI Miami Office; the FBI Cleveland Office; and the FBI Milwaukee Office
The government is represented by Assistant U.S. Attorney Lauren Kober of the Organized Crimes/Gangs Unit in Newark.
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Defense counsel: Jason F. Orlando
Passaic County Man Convicted of Fentanyl Analogue Distribution and Money Laundering ConspiraciesRead the Press Release
NEWARK, N.J. – A Passaic County man was convicted by a jury in connection with his role in a drug trafficking organization responsible for the importation and distribution of hundreds of kilograms of fentanyl analogues, Acting U.S. Attorney Vikas Khanna announced.
Defendant William Panzera, 51, of North Haledon, New Jersey was convicted of drug trafficking conspiracy and international promotional money laundering conspiracy by a jury in Newark, New Jersey. Eight other defendants have previously pleaded guilty in related cases.
According to documents filed in this case and statements made in court:
From approximately January 2014 through September 2020, William Panzera and other members of the drug trafficking organization agreed to import and distribute various controlled substances and controlled substance analogues, including fentanyl analogues, MDMA, methylone, and ketamine. Members of the conspiracy placed orders with a source in China and agreed to distribute, and did distribute, the controlled substances and analogues in New Jersey, both in bulk and in the form of counterfeit pharmaceutical pills that actually contained fentanyl analogues. In total, they imported over a metric ton of fentanyl and other drugs into the United States. They also sent hundreds of thousands of dollars to China using wire transfers and Bitcoin to pay for the drugs.
The charge of drug trafficking conspiracy of which Panzera was found guilty carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a fine of up to $10 million. The charge of international promotional money laundering conspiracy of which Panzera was found guilty carries a maximum potential penalty of 20 years in prison and a fine of up to $500,000. Sentencing is scheduled for June 25, 2025.
Acting U.S. Attorney Khanna credited special agents of Homeland Security Investigations (“HSI”) – Newark, under the direction of Special Agent in Charge Spiros Karabinas, with the investigation leading to today’s guilty plea. He also thanked U.S. Customs and Border Protection in New Jersey, New York, and Kentucky, HSI in Philadelphia, the Federal Bureau of Investigation – Newark Division, U.S. Postal Inspection Service in Newark, IRS-Criminal Investigation, the Newark Police Department, and the Essex County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek and Special Assistant U.S. Attorney Alexander Hasapidis-Sferra of the Criminal Division in Newark and Trial Attorney Stephen Sola, Chief of the Money Laundering and Forfeiture Unit of the Justice Department’s Money Laundering and Asset Recovery Section. Financial Investigator Kathryn Montemorra of the MLARS Special Financial Investigations Unit supported the investigation. The case is being prosecuted jointly by the United States Attorney’s Office, District of New Jersey and the Money Laundering and Asset Recovery Section (MLARS) of the United States Department of Justice.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Defense counsel: Jeffrey G. Garrigan, Esq.; Christopher L. Patella, Esq.
New Jersey Man Convicted for Conspiring to Traffic Fentanyl-Related Substances and Launder MoneyRead the Press Release
A federal jury in Newark convicted a New Jersey man on Jan. 27 for conspiring to traffic fentanyl-related substances and launder money.
According to court documents and evidence presented at trial, from approximately January 2014 through September 2020, William Panzera, 51, of North Haledon, and other members of a drug trafficking organization, agreed to import and distribute controlled substances and controlled substance analogues, including fentanyl analogues, methylenedioxymethamphetamine (MDMA), methylone, and ketamine. Co-conspirators ordered controlled substances and analogues from a source in China and paid those sources hundreds of thousands of dollars via wire transfer and cryptocurrency. The conspirators distributed the substances throughout New Jersey in bulk and in the form of counterfeit pharmaceutical pills that actually contained fentanyl analogues. Eight other defendants have pleaded guilty in the case.
The jury convicted Panzera of conspiracy to distribute and possess with intent to distribute 100 grams or more of furanyl fentanyl and 100 grams or more of 4 fluoroisobutyryl fentanyl and conspiracy to commit international promotional money laundering. Panzera faces a mandatory minimum penalty of 10 years in prison, a maximum penalty of life in prison, and a fine of up to $10 million for the drug trafficking conspiracy charge, and a maximum penalty of 20 years in prison and a fine of up to $500,000 for the money laundering conspiracy charge. He is scheduled to be sentenced on June 25. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Vikas Khanna for the District of New Jersey, and Special Agent in Charge Spiros Karabinas of Homeland Security Investigations (HSI) Newark made the announcement.
HSI Newark is investigating the case. HSI Philadelphia, the FBI Newark Field Office, the U.S. Postal Inspection Service Newark Field Office, IRS Criminal Investigation, U.S. Customs and Border Protection, the Newark Police Department, and the Essex County Prosecutor’s Office provided valuable assistance.
Money Laundering and Forfeiture Unit Chief Stephen Sola of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney Sammi Malek and Special Assistant U.S. Attorney Alexander Hasapidis-Sferra for the District of New Jersey are prosecuting the case. Financial Investigator Kathryn Montemorra of the MLARS Special Financial Investigations Unit supported the investigation.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Two New Jersey Men Convicted for Their Roles in the Stephen Crane Village Drug Trafficking Organization, Including A Leader Convicted of MurderRead the Press Release
NEWARK, N.J. – Yesterday afternoon a Newark jury convicted two New Jersey men for their roles in a violent drug trafficking organization, Acting U.S. Attorney Vikas Khanna announced.
Michael Mayse, 38, of Newark, a leader of the Stephen Crane Drug Trafficking Organization, was convicted of murder, drug trafficking conspiracy, and related drug and firearms offenses.
Gary Shahid, 66, of Newark, a drug supplier of the Stephen Crane Drug Trafficking Organization, was convicted of drug trafficking conspiracy, distribution and possession with intent to distribute controlled substances, and firearms offenses.
“This Office’s commitment to prosecuting violent crime and serious drug trafficking offenses is unwavering. This case demonstrates the strength of our partnerships with federal, state, and local law enforcement and ensures that serious consequences will follow for these defendants.”
Acting U.S. Attorney Vikas Khanna
“ATF remains steadfast in identifying and apprehending those who are terrorizing our neighborhoods with violence and senseless disorder,” ATF Special Agent in Charge L.C. Cheeks, Jr., Newark Field Division stated. “These guilty verdicts bring accountability to violent criminals whose actions disregard criminal law, human life, and public safety. We will continue to work alongside our law enforcement partners and secure the safety of our communities.”
“Drug trafficking can be a dangerous and violent game, often entangled with the deadly consequences. Today’s conviction against these two members of the Stephen Crane Village Drug Trafficking Organization, who repeatedly used violence when operating their criminal enterprise, shows the commitment the DEA and our law enforcement partners have in keeping our communities safe and making sure those responsible for these types of violent crimes face the consequences for their actions,” said DEA Special Agent in Charge Cheryl Ortiz, New Jersey Field Division.
According to documents filed in this case and statements made in court:
Stephen Crane Village is a public housing complex near Branch Brook Park, on the border of Newark, New Jersey and Belleville, New Jersey. Stephen Crane Village was the site of an open-air drug market controlled by a violent drug trafficking organization (“DTO”) from at least February 2019 through February 2020.
Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, electronic surveillance, and the analysis of telephone call detail records, law enforcement determined that the members of the DTO conspired to distribute narcotics, including heroin, fentanyl, and cocaine base, in and around Stephen Crane Village.
The DTO used a drug stash apartment in Stephen Crane Village to package and store their drugs for distribution. The DTO sold significant quantities of drugs to confidential sources and an undercover agent. On December 15, 2019, Mayse entered the DTO’s stash apartment in Stephen Crane Village and murdered a member of the DTO over a monetary debt relating to the drug trafficking conspiracy.
The count of conspiracy to distribute at least 100 grams of heroin carries a minimum sentence of five years in prison, maximum penalty of 40 years in prison, and a fine of up to $5 million. The counts of distribution of heroin, fentanyl, and cocaine each carry a maximum of 20 years in prison and a fine of $1 million. The count for of possession with intent to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and 500 grams or more of cocaine carries a minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a fine of up to $10 million. The count of murder during and in relation to a drug trafficking crime carries a maximum sentence of life in prison and a $250,000 fine. The count of discharging a firearm during and in relation to a drug trafficking crime carries a minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a $250,000 fine. The counts of possessing a firearm in furtherance of a drug trafficking crime carries a minimum sentence of 5 years in prison, a maximum sentence of life in prison, and a $250,000 fine.
Acting U.S. Attorney Khanna credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II and Chief Mitchell G. McGuire; the Newark Police Department, under the direction of Director Emanuel Miranda; and the Belleville Police Department, under the direction of Chief Mark Minichini. He also thanked the U.S. Marshals Service and the Federal Bureau of Investigation for their assistance with this case.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the DHS/HSI, the USMS, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
This case is also conducted under the auspices of the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Criminal Division in Trenton and Assistant U.S. Attorney Jason Goldberg of the Organized Crime and Gangs Unit in Newark.
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Defense counsel:
Thomas Ambrosio, Esq., for Gary Shahid
Joel Silberman, Esq., and Keith Oliver, Esq., for Michael Mayse
Bronx Man and Former Postal Employee Admits to Stealing Valuable Trading Cards and Sports Memorabilia from the MailRead the Press Release
NEWARK, N.J. – A Bronx man formerly employed by the United States Postal Service as a sorting clerk admitted to theft of mail, Acting U.S. Attorney Vikas Khanna announced.
Shelby Dozier, 34, of the Bronx, New York, pleaded guilty before U.S. District Court Judge Esther Salas to an Information charging him with theft of mail by a postal service employee.
According to documents filed in this case and statements made in court:
In August 2022, Dozier was hired by the United States Postal Service as a sorting clerk and assigned to the Clifton Main Post Office. Shortly after Dozier started his employment, numerous parcels destined for a consignment auction house located in Clifton (“Company-1”) went missing. Company-1 specializes in the sale of trading cards and sports memorabilia that it receives from customers around the world.
Between September 2022 and December 2022, Dozier stole the contents of at least 10 parcels that were mailed to Company-1. The stolen parcels contained valuable trading cards and sports memorabilia that Dozier sold to either individual customers or sports collectible stores. As part of his plea agreement, Dozier agreed to pay restitution to the victims in the amount of $108,692.49.
The theft of mail by a postal employee charge carries a maximum potential sentence of 5 years’ imprisonment and a maximum fine equal to the greatest of $250,000 or twice the gross amount of any pecuniary gain that any persons derived from the offense. Sentencing is scheduled for April 22, 2025.
Acting U.S. Attorney Khanna credited special agents of the United States Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modaferri in the North East Area Field Office; and postal inspectors from the United States Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: Areeb Salim, Esq.
dozier.information.pdfPhiladelphia Man Sentenced to 120 Months for Enticing A MinorRead the Press Release
CAMDEN, N.J. – A Philadelphia, Pennsylvania, man was sentenced today to 120 months in prison for his conviction of online enticement of a minor to engage in prostitution, Acting U.S. Attorney Vikas Khanna announced.
Louis Goldenberg, 41, of Philadelphia, Pennsylvania, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with one count of attempted online enticement of a minor to engage in prostitution.
According to documents filed in this case and statements made in court:
In August 2023, Goldenberg began interacting on a messaging application with an undercover agent, who was posing as a middle-aged woman with a 12-year-old niece. From August through September 2023, Goldenberg messaged the undercover, continuously expressing interest in having sexual contact with the minor. During one of the conversations, Goldenberg indicated a specific hotel in Mt. Laurel, New Jersey where he wanted to have sex with the minor. On September 18, 2023, Goldenberg traveled from Pennsylvania to the Mt. Laurel hotel, where he had a reservation for that evening. When Goldenberg arrived, he was arrested by law enforcement.
In addition to the prison term, Judge O’Hearn sentenced Goldenberg to five years of supervised release and ordered him to register as a sex offender.
Acting U.S. Attorney Vikas Khanna credited special agents and task force officers with Homeland Security Investigations (HSI) Newark, under the leadership of Acting Special Agent in Charge Spiros Karabinas, with the investigation leading to the charges. He also thanked the Burlington County Prosecutor’s Office and Mount Laurel Police Department.
The government is represented by Special Assistant U.S. Attorney Katelyn Waegener of the U.S. Attorney’s Office in Camden.
Defense counsel: Rocco C. Cipparone, Jr., Esq.
Newark Man Charged with Firearm and Narcotics OffensesRead the Press Release
NEWARK, N.J. – A Newark man has been charged with firearm and narcotics offenses, Acting U.S. Attorney Vikas Khanna announced.
Khalif Irving, 25, of Newark, New Jersey, was charged in a three-count complaint with possession of a firearm and ammunition by a convicted felon, possession with intent to distribute fentanyl, and possession of a firearm in furtherance of a drug trafficking crime. He had an initial appearance before U.S. Magistrate Judge Michael A. Hammer in Newark federal court on January 24, 2025, and was ordered detained.
According to documents filed in this case and statements made in court:
Irving, a/k/a “Kah Kah,” has been advertising narcotics for sale on social media and posting photos depicting firearms. On January 23, 2025, Irving stowed a loaded firearm in a utility box affixed to the side of a building at the Janice Kromer Village apartments. Minutes later, law enforcement recovered the firearm, arrested Irving, and recovered suspected narcotics from Irving’s person.
The offense of possession of a firearm and ammunition by a convicted felon charged in Count One of the Complaint carries a maximum penalty of 15 years’ imprisonment and a maximum fine of $250,000. The offense of possession with intent to distribute narcotics charged in Count Two of the Complaint carries a maximum penalty of 20 year’ imprisonment and a maximum fine of $1 million. The offense of possession of a firearm in furtherance of a drug trafficking crime charged in Count Thee of the Complaint carries a mandatory minimum penalty of 5 years’ imprisonment and a maximum of life imprisonment, which must run consecutively to any other term of imprisonment and a maximum fine of $250,000.
Acting U.S. Attorney Khanna credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge L.C. Cheeks Jr., the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda, and the North Bergen Police Department, under the direction of Chief Robert Farley with the investigation leading to today’s charges.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the DHS/HSI, the USMS, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Alison Thompson of the Organized Crime and Gangs 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.
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Defense counsel: Michael Thomas, Assistant Federal Public Defender
irving.complaint.pdfMaryland Man Convicted of Money Laundering Offenses Related to Computer IntrusionsRead the Press Release
NEWARK, N.J. – A Maryland man was convicted yesterday for money laundering offenses related to funds that were obtained through unlawful computer intrusions that targeted a victim’s 401(k) retirement plan, Acting U.S. Attorney Vikas Khanna announced.
Oladapo Sunday Ogunbiyi, 43, of Bowie, Maryland, was convicted of conspiracy to commit money laundering, two counts of money laundering, and two counts of engaging in monetary transactions in property derived from specified unlawful activity. The jury returned the verdict following a three-day trial before U.S. District Judge Michael A. Shipp in Trenton federal court.
According to documents filed in this case and statements made in court:
Ogunbiyi conspired with others to launder funds obtained through an unlawful computer fraud scheme in which they obtained unauthorized access to a 401k account belonging to the victim. The co-conspirators then added a bank account belonging to another individual to the victim’s 401k account without the victim’s knowledge or authorization. This account was designated as the account to receive withdrawals from the victim’s 401k account. Thereafter, $246,390 was transferred to the bank account belonging to the account that had been added without the victim’s knowledge or consent.
Ogunbiyi’s co-conspirator directed that the fraud proceeds be converted into cashier’s checks, which were provided to Ogunbiyi. Ogunbiyi then deposited the cashier’s checks into business bank accounts under his control and withdrew the funds in a series of ATM and counter withdrawals designed to conceal the source of the money, which he used for personal expenditures.
The counts of money laundering and money laundering conspiracy carry a maximum penalty of 20 years in prison and a fine of $500,000, or twice the value of the property involved in the transaction, whichever is greater. The counts of engaging in monetary transactions in property derived from specified unlawful activity carry a maximum penalty of 10 years in prison and a fine of $250,000, or twice the value of the property involved in the transaction, whichever is greater. Sentencing is scheduled for July 7, 2025.
Acting U.S. Attorney Khanna credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Lauren Kober of the Organized Crime/Gangs Unit and Peter A. Laserna of the Bank Integrity, Money Laundering, and Recovery Unit in Newark.
25-019 ###
Defense counsel: Jason A. Seidman, Esq., Freehold, New Jersey
Hudson County Man Charged with Defrauding Elderly Victim Out of More Than $880,000Read the Press Release
NEWARK, NJ. – A New Jersey man was arrested today and charged with engaging in a scheme to defraud an elderly victim investor out of out of more than $880,000, after entrusting him to invest her money on her behalf, Acting U.S. Attorney Vikas Khanna announced today.
Antonio Petrosino, a/k/a Anthony Petrosino, 59, of Union City, New Jersey, is charged by complaint with one count of wire fraud and one count of money laundering. He is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in the case and statements made in court:
Between March 2018 and March 2024, Petrosino fraudulently induced the victim investor to transfer approximately $916,000 to Petrosino based on his misrepresentations that he would invest those funds in brokerage accounts and other investment products for the benefit of the victim investor. To perpetuate his fraud, Petrosino provided the victim investor with falsified investment statements that purported to show that she had hundreds of thousands of dollars deposited in various investment accounts in her name. Petrosino also provided the victim investor with payments in the approximate range of $4000-$8000 that he claimed was the interest that the victim investor had earned on her investments.
In reality, Petrosino failed to invest the victim investor’s funds for her benefit as promised. Instead, he misappropriated the money to pay for his personal expenses, including gambling, credit card payments, and rent on his luxury apartment unit. Petrosino also caused the transfer of the victim investor’s funds without her knowledge or consent, including transfers directly from the victim investor’s bank account to Petrosino’s landlord. Additionally, Petrosino told the victim investor he would assist her with preparing her tax returns and told her to send him approximately $40,000 that he claimed she owed in taxes, which he misappropriated for his personal benefit. In total, Petrosino stole more than approximately $888,000 from the victim investor.
The wire fraud charge carries a maximum penalty of 20 years in prison. The money laundering charge carries a maximum penalty of 10 years in prison. Both counts carry a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest.
Acting U.S. Attorney Vikas Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark; special agents of the Board of Governors of the Federal Reserve System - Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Brian Tucker; and the Wyckoff Police Department, under the direction of Chief David V. Murphy, with the investigation leading to today’s arrest, and thanked the Union City Police Department, under the direction of Chief Anthony Facchini, for its assistance with the arrest.
The government is represented by Assistant U.S. Attorney Jennifer Kozar 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.
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antonio_petrosino.complaint.pdfCalifornia Man Sentenced to 87 Months for Role in $50 Million Wire and Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A California man was sentenced on Tuesday, January 21, 2025, to 87 months in prison by U.S. District Court Judge Esther Salas for his role in a $50 million internet-enabled fraud scheme, Acting U.S. Attorney Vikas Khanna announced.
Allen Giltman, 59, of Irvine, California, previously pleaded guilty in Newark federal court to a two-count Information charging him with conspiracy to commit wire fraud and conspiracy to commit securities fraud.
According to the documents filed in this case and statements made in court:
Between 2012 and October 2020, Giltman and others engaged in an internet-based financial fraud scheme, which generally involved the creation of fraudulent websites to solicit funds from investors. At times, the fraudulent websites were designed to closely resemble websites being operated by actual, well-known, and publicly reputable financial institutions; at other times, the fraudulent websites were designed to resemble legitimate-seeming financial institutions that did not exist.
Victims of the fraud scheme typically discovered the fraudulent websites via internet searches. The fraudulent websites advertised various types of investment opportunities, most prominently the purchase of certificates of deposit, or CDs. The fraudulent websites advertised higher than average rates of return on the CDs to lure potential victims.
The fraudulent websites used a variety of means to appear legitimate and to gain and maintain the trust of prospective investors, including by (a) displaying the actual names and logos of real financial institutions; (b) purporting that the institutions were members of and/or regulated by the Federal Deposit Insurance Corporation (FDIC), Financial Industry Regulatory Authority (“FINRA”), the Securities Investor Protection Corporation, or New York Stock Exchange; (c) claiming that deposits made to the institutions associated with the fraudulent websites were FDIC insured; and (d) using FINRA and/or FDIC member identification numbers issued to real financial institutions and real FINRA broker-dealers.
After discovering one of the fraudulent websites, victims would contact an individual via telephone or email as directed on the sites. As alleged in the Information, this individual was Giltman. During his communications with victims of the fraud scheme, Giltman impersonated real FINRA broker-dealers by using their names and FINRA CRD numbers. Giltman would then provide the victims with applications and wiring instructions for the purchase of a CD. The funds wired by the victims would then be moved to various domestic and international bank accounts, including accounts in Russia, the Republic of Georgia, Hong Kong, and Turkey. None of the victims received a CD after wiring the funds.
To date, law enforcement has identified at least 150 fraudulent websites created as part of the scheme. At least 70 victims of the fraud scheme nationwide, including in New Jersey, collectively transmitted funds that they believed to be investments in the aggregate amount of at least approximately $50 million.
* * *
In addition to the prison term, Judge Salas sentenced Giltman to 3 years of supervised release and ordered forfeiture of numerous assets seized from Giltman at the time of his arrest in 2020.
The U.S. Securities and Exchange Commission (SEC) previously filed a civil complaint against Giltman based on the same conduct.
Acting U.S. Attorney Khanna credited special agents of the FBI under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark. He also thanked the SEC for the assistance provided by its Enforcement Division.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore, Chief of the U.S. Attorney’s Cybercrime Unit in Newark.
25-020 ###
Defense counsel:
Nina Marino, Esq. and Jennifer Lieser, Esq, Beverly Hills, California
India- And New Jersey-Based Jeweler Sentenced to 30 Months Incarceration for Multimillion Dollar International Trade Fraud Scheme and Unlicensed Money TransmittingRead the Press Release
NEWARK, NJ. – An India- and New Jersey-based man who operated jewelry companies in New York City’s Diamond District was sentenced to 30 months incarceration for spearheading a scheme to illegally evade customs duties for more than $13.5 million of jewelry imports into the United States and for illegally processing more than $10.3 million through an unlicensed money transmitting business, Acting U.S. Attorney Vikas Khanna announced.
Monishkumar Kirankumar Doshi Shah, a/k/a “Monish Doshi Shah” (Shah), 40, of Mumbai, India and Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to a two-count Information charging him with conspiracy to commit wire fraud and operating and aiding and abetting the operation of an unlicensed money transmitting business. Judge Salas imposed the sentence in Newark federal court and remanded Shah to begin serving his sentence.
According to documents filed in this case and statements made in court:
From in or around December 2019 through in or around April 2022, Shah engaged in a scheme to evade duties for shipments of jewelry from Turkey and India to the United States. Shah would ship and/or instruct his co-conspirators to ship goods from Turkey or India—which would have been subject to an approximately 5.5% duty if shipped directly to the United States—to one of Shah’s companies in South Korea. Shah’s co-conspirators in South Korea would change the labels on the jewelry to state that they were from South Korea instead of Turkey or India, and then ship them to Shah or his customers in the United States, thereby unlawfully evading the duty. Shah would also make and instruct his customers to make fake invoices and packing lists to make it look like Shah’s South Korean companies were actually ordering jewelry from Turkey or India. Shah also instructed a third-party shipping company to provide false information to U.S. Customs and Border Protection (CBP) concerning the origin of the jewelry. During the scheme, Shah shipped approximately $13.5 million of jewelry from South Korea to the United States without paying the appropriate duty.
In addition, from in or around July 2020 through in or around November 2021, Shah owned and/or operated numerous jewelry companies in New York City’s Diamond District, including MKore LLC, MKore USA Inc, and Vruman Corp. Shah used these entities to conduct more than $10.3 million in illegal financial transactions for customers—including converting cash to checks or wire transfers. Shah would also collect cash from customers and use other individuals’ jewelry companies to convert the cash into wires or checks. At times, Shah and other members of the money transmitting business moved hundreds of thousands of dollars in a single day. In exchange for their services, certain members of the money transmitting business charged a fee. None of Shah’s or his associates’ companies were registered as money transmitting businesses with New York, New Jersey, or the Financial Crimes Enforcement Network (FinCEN).
In addition to the prison term, Judge Salas ordered restitution in the amount of $742,500 for the wire fraud scheme and forfeiture in the amount of $11,126,982.33 for the wire fraud and unlicensed money transmitting schemes. In addition, the Court imposed a two-year term of supervised release.
Acting U.S. Attorney Khanna credited special agents and task force officers of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark; special agents with Homeland Security Investigations New York, under the direction of Special Agent in Charge William S. Walker; special agents with Homeland Security Investigations Newark, under the direction of Special Agent in Charge Spiros Karabinas; and special agents with U.S. Customs and Border Protection at the Port of New York/Newark, under the direction of Acting Port Director Jeffrey R. Greene, with the investigation leading to today’s sentence. He also thanked U.S. Customs and Border Protection in New York; Homeland Security Investigations in Seoul, South Korea; the Korea Customs Service in South Korea; the Seoul Customs Special Investigation Office in South Korea; the U.S. Drug Enforcement Administration in Paterson; the Parsippany-Troy Hills Police Department; the Morristown Police Department; the Federal Deposit Insurance Corporation – Office of Inspector General; and the Justice Department’s Money Laundering and Asset Recovery Section (MLARS) for their assistance in the investigation.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Olta Bejleri of the Economic Crimes Unit and Marko Pesce, Deputy Chief of the Bank Integrity, Money Laundering, and Recovery Unit in Newark.
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Defense Attorney: Rahul Agarwal, Esq.
Former Mercer County Pharmacist Found Guilty of Conspiracy to Illegally Distribute Oxycodone from Trenton PharmacyRead the Press Release
TRENTON, N.J. – A former Mercer County pharmacist was convicted yesterday for her role in a conspiracy to distribute and dispense outside the course of professional practice large quantities of Schedule II controlled substances, including oxycodone, from a pharmacy formerly located in Trenton, New Jersey, Acting U.S. Attorney Vikas Khanna announced.
Florence Ndubizu, 64, of Princeton Junction, New Jersey, was convicted of two counts of an indictment charging her with conspiracy to unlawfully distribute and dispense Schedule II controlled substances, including oxycodone, between 2014 and 2017 and maintaining a premises for the illegal distribution of controlled substances. A third count of unlawful distribution of controlled substances was dismissed before trial. The jury returned the guilty verdict following a two-week trial before U.S. District Judge Zahid N. Quraishi in Trenton federal court.
According to documents filed in this case and the evidence presented at trial:
Between 2014 and 2017, Ndubizu was the co-owner and pharmacist-in-charge of Healthcare Pharmacy in Trenton. She and her employee conspirators, acting at her direction, filled fraudulent prescriptions outside the usual course of professional practice, knowing that the drugs would not be used for a legitimate medical purpose, but instead would be illegally diverted, including to street-level drug dealers. Ndubizu, operating a single-location pharmacy, purchased and distributed millions of dosage units of oxycodone, including over 800,000 pills in 2014; over 900,000 pills in 2015; over 800,000 pills in 2016; and over 200,000 pills in 2017, the year that the Drug Enforcement Administration (“DEA”) suspended the pharmacy’s registration.
Ndubizu diverted oxycodone pills and then evaded state and federal reporting requirements by manipulating the pharmacy’s records. The DEA conducted an audit of Healthcare Pharmacy’s inventory and found that between April 2015 and August 2017 alone, Ndubizu and Healthcare Pharmacy diverted more than 64,000 oxycodone containing pills.
The conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. The charge of maintaining Healthcare Pharmacy as a drug-involved premises carries a maximum penalty of 20 years in prison and a $500,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Khanna credited special agents, diversion investigators, and task force officers of the DEA, under the direction of Special Agent in Charge Cheryl Ortiz; special agents of the Internal Revenue Service-Criminal Investigations, Newark Field Office, under the direction of Special Agent in Charge Jenifer Piovesan; officers of the Trenton Police Department, under the supervision of Director Steve Wilson, members of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Janetta D. Marbrey, and members of the Gloucester County Prosecutor’s Office, under the direction of Acting Prosecutor Elizabeth Parvin, with the investigation leading to yesterday’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Ashley Super Pitts of the U.S. Attorney’s Office Criminal Division in Trenton.
Ndubizu’s husband, Gordian A. Ndubizu, the co-owner of Healthcare Pharmacy, was separately convicted of tax evasion offenses after a jury trial in August 2024. Gordian A. Ndubizu was not charged with controlled substance offenses.
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Defense counsel: William H. Newman, Esq., and Shrey Sharma, Esq., of New York, New York
Former Employee of Real Estate Investment Firm Indicted for Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – The former Vice President of Project Management for National Realty Investment Advisors (“NRIA”) has been indicted for his role in an investment fraud scheme and for misappropriating approximately $2.3 million from victim investors, Acting U.S. Attorney Vikas Khanna announced today.
Ivel Turner, 51, of Newark, Delaware, was indicted by a federal grand jury with eight counts of wire fraud and one count of securities fraud. He appeared today before U.S. Magistrate Judge Sharon A. King in Camden federal court and was released on a $100,000 unsecured appearance bond and other conditions. His arraignment is scheduled for February 4, 2025 before U.S. District Judge Susan D. Wigenton.
According to documents filed in this case and statements made in court:
Turner was previously employed as Vice President of Project Management for NRIA, which held itself out as a real estate investment management fund with over $1.25 billion in assets under management. NRIA promised investors guaranteed returns of at least 12 percent per year for a period of five years, a full return of their investments, and monthly distributions of between six and ten percent of their original investments. Turner had access to NRIA’s PPM, which made many such representations pertaining to NRIA’s purported returns on investment and distributions.
In April 2020, while still employed at NRIA, Turner incorporated Oasis Realty Investment Group (“ORIG”). Turner, through ORIG, solicited real estate investors to purchase, finance, and co-develop residential units in Delaware, Pennsylvania, and elsewhere. Turner used NRIA as a model for ORIG.
To induce investors to invest and continue to invest in ORIG, Turner made material misrepresentations and omissions related to, among other things: (a) ORIG’s financial position; (b) the manner in which Turner used investor money; and (c) Turner’s role at ORIG. Turner also falsely represented to the victim investors that substantially all of ORIG’s proceeds would be used for real estate investment purposes, but instead, Turner misused hundreds of thousands of dollars of investor money on personal expenses, including luxury retail purchases, several vehicles, international travel, and a down payment on his residence.
The wire fraud charges each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The securities fraud charge carries a maximum potential penalty of 20 years in prison and a maximum fine of up to $5,000,000.
Acting U.S. Attorney Vikas Khanna credited special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Terence G. Reilly, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Rubin M. Sinins, Esq., Springfield, New Jersey
turner.indictment.pdf
Amtrak Employee Admits Participating in $11 Million Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – An Amtrak employee admitted participating in a health care fraud scheme to defraud Amtrak, Acting U.S. Attorney Vikas Khanna announced.
Rodolfo Rivera, 41, of Clayton, Delaware, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an Indictment charging him with conspiracy to commit health care fraud. The Indictment also charges nine other co-conspirators in connection with the scheme: Kevin Frink, 53, of Willingboro, New Jersey; Quinton Johnson, 53, of Irvington, New Jersey; David McBrien, 36, of Levittown, Pennsylvania; Gregory Richardson, 35, of Roosevelt, New York; Michael Toal, 35, of Hazlet, New Jersey; Damany Walker, 41, of Irvington, New Jersey; Timothy Bogen, 59, of Hamden, Connecticut; Dion Jacob, 50, of Brooklyn, New York; and David Lonergan, 64, of Rockaway Park, New York.
According to documents filed in this case and statements made in court:
From January 2019 through June 2022, Rivera and his co-conspirators—who were also Amtrak employees—engaged in a scheme to obtain cash kickbacks from health care providers in return for their agreement to allow their health insurance plan to be billed for services that were never provided and were not medically necessary. As a result of the fraudulent claims submitted on behalf of Rivera, his dependent, and other Amtrak employees that he recruited into the scheme, the Amtrak health care plan paid over $2 million in reimbursements. In total, as a result of the conspiracy, the Amtrak health care plan paid over $11 million in fraudulent claims associated with providers connected to the scheme.
Rivera received thousands of dollars in cash kickbacks from health care providers in return for his participation in the scheme, including from Punson Figueroa, an acupuncturist, and Michael DeNicola, a podiatrist. Figueroa previously pleaded guilty to conspiracy to commit health care fraud and was sentenced on September 24, 2024 to 34 months in prison. DeNicola previously pleaded guilty on June 29, 2022 to conspiracy to commit health care fraud, among other offenses. His sentencing remains pending.
The health care fraud conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Rivera’s sentencing is scheduled for June 26, 2025.
Acting U.S. Attorney Khanna credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, the Amtrak Police Department, under the direction of Chief of Police Samuel Dotson, and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jessica R. Ecker and Katherine M. Romano of the Health Care Fraud Unit, and Senior Trial Counsel Barbara Ward of the Bank Integrity, Recovery, and Money Laundering Unit, in Newark.
The charge and allegations contained in the Indictment against Frink, Johnson, McBrien, Richardson, Toal, Walker, Bogen, Jacob, and Lonergan, are merely accusations, and they are each presumed innocent unless and until proven guilty.
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Defense counsel: Dennis S. Cleary, Esq.
rivera.indictment.pdfMiddlesex County Man Admits Defrauding South Koreans Through Bogus Sugar Investment SchemeRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey man today admitted defrauding victims in South Korea through a bogus investment scheme, Acting U.S. Attorney Vikas Khanna announced.
Mohammed Rahman, 64, of Iselin, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to an Information charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Rahman controlled a company, Caltech Trading Corporation, through which he purported to buy and sell commodities. Rahman and other individuals in South Korea persuaded approximately 60 victims there to invest funds purportedly towards the purchase of $1 million of sugar from Brazil, which Caltech would then sell for a substantial profit. Rahman and his associates memorialized the investment terms in a fraudulent investment agreement that falsely promised the victim investors that they would receive a one hundred percent return on their investment. The victims relied on Rahman’s misrepresentations about how their funds would be used which, instead of being invested towards the purchase of sugar, were wired into Rahman’s bank account and used to pay his personal expenses, including his mortgage. Rahman also altered his bank account statement in an attempt to conceal the fact that he did not use the investors’ funds to purchase sugar.
The wire fraud conspiracy charge to which Rahman pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 29, 2025.
Acting U.S. Attorney Khanna credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan, and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Spiros Karabinas in Newark, with the investigation. He also thanked the Seoul Metropolitan Police Agency and the Seoul Central District Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Jessica R. Ecker of the Health Care Fraud Unit in Newark.
25-013 ###
Defense counsel: Robert G. Stahl, Esq.
rahman.information.pdfGang Member Admits to Racketeering ChargeRead the Press Release
NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang admitted to his role in a racketeering conspiracy, Acting U.S. Attorney Vikas Khanna announced.
Jason Franklin, a/k/a “Freak,” (“Franklin”), 41, pleaded guilty before U.S. District Judge Susan D. Wigenton to a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations (“RICO”) conspiracy.
According to documents filed in this case and statements made in court:
From at least in or around 2015 through on or about September 22, 2022, Franklin was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere. Franklin held a leadership role within the enterprise and ordered other members and associates of the enterprise to commit several acts of violence.
Specifically, on or about March 20, 2019, in Irvington, New Jersey, Franklin ordered other members and associates of the enterprise to murder another person, in retaliation for the murder of a member and associate of the Rollin’ 60s.
In or around early April 2021, Franklin ordered other members and associates of the enterprise to retaliate against rival gang members, resulting in the April 5, 2021 attempted murder of another person, who sustained serious bodily injury as a result of being shot.
The defendant faces a maximum sentence of life imprisonment and a fine of up to $250,000. Sentencing is scheduled for May 21, 2025, at 11:00 a.m.
Acting U.S. Attorney Khanna credited special agents of the DEA, under the direction of Special Agent in Charge Cheryl Ortiz; the Internal Revenue Service, Criminal Investigation (IRS-CI), under the direction of Special Agent in Charge Jenifer Piovesan, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge L.C. Cheeks, Jr., as well as investigators of the U.S. Marshals Service, under Marshal Juan Mattos’ direction; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers, the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, the FBI, under the direction of Special Agent in Charge Brian J. Discroll Jr., the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda, Sr., the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio, the Essex County Sheriff’s Office, under Sheriff Amir D. Jones’s direction, the East Orange Police Department, under the direction of Chief Phyllis L. Bindi, the Elizabeth Police Department, under the direction of Police Director Earl J. Graves, the Edison Police Department, under the direction of Chief of Police Tom Bryan, the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel, the Spotswood Police Department, under the direction of Chief Philip Corbisiero, and the North Carolina State Bureau of Investigation Fugitive and Missing Person Task Force, which includes members of the FBI, for the investigations leading to the charges in the Rollin 60’s Neighborhood Crips investigation.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the Department of Homeland Security – Homeland Security Investigations, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division and Assistant U.S. Attorney Jake A. Nasar of the Health Care Fraud Unit.
Defense Counsels:
Anthony Iacullo, Esq.
Michael Koribanics, Esq.
franklin.superseding_indictment.pdfTwo Omaha Men Sentenced for Firearm Offenses after Jury TrialRead the Press Release
United States Attorney Susan Lehr announced that Dilang N. Dat, age 31, and Jany Jock, age 29, both of Omaha, Nebraska were sentenced on January 16, 2025, in federal court in Omaha. United States District Judge Brian C. Buescher sentenced Dilang Dat to 120 months for possessing a firearm as a felon and 24 months consecutive that for violating the terms of his supervised release as a result of a prior conviction for robbery. Judge Buescher sentenced Jany Jock to 120 months for transferring a firearm to a prohibited person. There is no parole in the federal system. After Dat and Jock are released from prison, each defendant will begin an individual 3-year term of supervised release.
On January 26, 2022, the Omaha Police Department (“OPD”) executed a search warrant at home near 47th and Ellison Avenue, Omaha, based on reports by a concerned citizen that drugs were being sold and stored at the residence. At the time, the home was part of an on-going police investigation into gang activity based on the recent homicide of Goa Dat, a Trip Set gang member who was shot and killed in Lincoln, Nebraska on October 30, 2021. His brothers, Dilang Dat and Baling Dat, both convicted felons and Trip Set gang members, resided at the home.
Officers located distribution amounts of drugs, including marijuana and cocaine, and recovered five (5) firearms in the home, one of which had been reported stolen. Two of the firearms recovered during the search were purchased by Jany Jock. More evidence revealed that Jock has purchased other firearms that were not found in his possession. Jock gave permission to law enforcement to search his phone. Jock’s iPhone contained several pieces of evidence, including text messages between Jock, Baling and Dilang Dat indicating a conspiracy to purchase, transfer and possess firearms. Further evidence established that Jock knew Baling Dat was a convicted felon at that time due to his communications with Baling Dat while Dat was incarcerated in the Nebraska Department of Corrections for a robbery conviction.
Dilang Dat is a convicted felon out of the District of Nebraska for robbery and was on federal supervised release at the time of his arrest.
Jany Jock and Dilang Dat were arrested along with Baling Dat and Bumatet Duop.
Following a two-week jury trial, Baling Dat, Dilang Dat, and Jany Jock were convicted on all counts against them.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Baling N. Dat was convicted by a jury trial for possessing with the intent to distribute cocaine, possessing a firearm in drug trafficking and being a felon in possession of a firearm. He was sentenced on January 8, 2025, to 195 months in prison.
Bumatet G. Duop pled guilty to possession of a stolen firearm and on June 7, 2023, was sentenced to 15 months imprisonment, consecutive to a state sentence he was serving in Woodbury County, Iowa. He will serve a 3-year term of supervision upon his release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Omaha Police Department and United States Marshals Service Omaha Metro Fugitive Task Force.
Seven Chilean Nationals Charged in Connection with Residential Burglaries in Multiple StatesRead the Press Release
NEWARK, N.J. – Seven members of an interstate burglary crew were charged for conspiring to target homeowners across multiple states in residential burglaries, Acting U.S. Attorney Vikas Khanna announced.
Christofer Sanguesa Aguirre, Fabiana Prado Scatarzi, Santana Arturo Castillo Gonzalez, Felipe Andres Del Valle Munoz, Carlos Alfredo Calderon Valencia, Diego Antonio Calderon Leiva, and Pedro Alejandro Salgado Vallejos, all Chilean nationals, were each charged by complaint with one count of conspiracy to sell and receive stolen property that had crossed state lines and one count of receiving stolen property that had crossed state lines.
"Residential burglaries have a traumatic and personal impact upon the people whose homes are violated. Seven Chilean nationals have been charged with conspiring to target homeowners in residential burglaries across multiple states from New Jersey to Massachusetts, resulting in the theft of expensive wristwatches, designer handbags, and thousands of dollars in cash. This office will continue to pursue those who commit these serious crimes.”
Acting U.S. Attorney Vikas Khanna
“We allege these men and women ransacked houses here in New Jersey and the East Coast, and then quickly traveled across the country, stealing over one hundred thousand dollars in valuables from private homes.” FBI-Newark Special Agent-in-charge Brian J. Driscoll, Jr. said. “These alleged criminals are part of South American theft groups who have been coming in and out of the United States for months. They hit an area and immediately disappear, using fake identifications and short-term rentals to evade getting caught. It’s like chasing ghosts. We put in a tremendous amount of hard work with incredible partner agencies from here to Oregon. We caught this group—and a warning to others, this doesn’t end here.”
“This is another outstanding example how cooperation, both on a local and national level amongst law enforcement agencies, yields positive outcomes for public safety in our communities,” said Immigrations and Customs Enforcement - Enforcement and Removal Operations, Newark Field Office Director John Tsoukaris. “ERO’s contributions to this investigation, initially with the defendants’ arrests on immigration charges, were critical in facilitating the criminal charges.”
“To disrupt these fast-moving, well-traveled crime networks, it often takes strong collaboration and state-of-the-art technology. Thankfully, we have both,” said Port Authority Police Superintendent Edward Cetnar. “By working together and leveraging our advanced technology, including CCTV and ALPR systems, we were able to track these subjects across state lines so that we could assist our law enforcement partners in apprehending them. This operation is a testament to the strength of cooperation throughout our vast law enforcement family, including our longtime partners at the FBI Newark Joint Organized Crime Task Force and the New Jersey U.S. Attorney’s Office.”
Sanguesa Aguirre and Castillo Gonzalez appeared on January 15, 2025, before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and were detained. Del Valle Munoz and Calderon Valencia had their initial appearances on January 15, 2025, before U.S. Magistrate Judge Theresa L. Fricke in federal court in Tacoma, Washington, and were detained. Calderon Leiva had his initial appearance on January 15, 2025, before U.S. Magistrate Judge Daryl F. Bloom in federal court in Harrisburg, Pennsylvania and was detained. Prado Scatarzi appeared before U.S. Magistrate Judge Carol B. Whitehurst in federal court in Lafayette, Louisiana today and was detained. Salgado Vallejos appeared before U.S. Magistrate Judge Paul G. Levenson in federal court in Boston, Massachusetts today and was detained.
According to documents filed in this case and statements made in court:
The defendants were part of a sophisticated burglary ring that committed multiple residential burglaries in November 2024 in New Jersey and Massachusetts. The defendants conspired to possess large amounts of jewelry, watches, designer handbags, and other valuable goods, among other items, with the losses totaling over $100,000.
Law enforcement searched a vehicle the defendants were using to transport the stolen goods and recovered multiple pieces of jewelry, designer handbags and belts, perfume bottles, paper currency, watches, and other valuable items, alongside tools commonly used to burglarize residences. After law enforcement stopped the vehicle, Del Valle Munoz and Calderon Valencia fled across the country, eventually appearing near Seattle, Washington before traveling to a residence in Carlton, Oregon. Law enforcement searched the residence where Del Valle Munoz, Calderon Valencia, and others had arrived and recovered bags and backpacks containing additional gold jewelry, diamonds, and watches, along with additional burglary tools.
The charge of conspiracy to sell or receive stolen property carries a maximum penalty of five years in prison; and the charge of receipt of stolen property carries a maximum potential penalty of ten years in prison. Both charges also carry a maximum potential penalty of up to a $250,000 fine, or twice the amount of money involved in the offense, whichever is greater.
Acting U.S. Attorney Khanna credited the FBI Newark’s Joint Organized Crime Task Force (JOCTF), under the direction of Special Agent in Charge Brian J. Driscoll, Jr. in Newark; Immigration and Customs Enforcement – Enforcement and Removal Operations, under the direction of Field Office Director John Tsoukaris; and the Port Authority of New York and New Jersey Police Department, under the direction of Superintendent of Police Edward T. Cetnar, with the investigation leading to the charges. He also thanked the Colts Neck Police Department, Keansburg Police Department, Fort Lee Police Department, Paramus Police Department, New Jersey State Police, Monmouth County Prosecutor’s Office, Spring Valley Police Department (NY), Town of Greenburgh Police Department (NY), Wellesley Police Department (MA), Westwood Police Department (MA), Massachusetts State Police, Renton Police Department (WA), King County Sheriff’s Office (WA), Tukwila Police Department (WA), Oregon State Police, Yamhill County Sheriff’s Office (OR), Carlton Police Department (OR), Denver Police Department (CO), Pennsylvania State Police, Novi Police Department (MI), ICE/ERO Portland, ICE/ERO Seattle, U.S. Customs and Border Protection, FBI New York, FBI Philadelphia, FBI Seattle, FBI Portland, FBI Denver, FBI New Orleans, FBI Boston, and FBI Legal Attaché Santiago, Chile.
Anyone who believes they may be a victim, or has information about the theft group or burglaries, is asked to call 1-800-CALL-FBI, submit the information online at tips.fbi.gov, or call a local field office.
The government is represented by Assistant U.S. Attorney Trevor A. Chenoweth of the Narcotics/OCDETF Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel:
Christofer Sanguesa Aguirre: Claressa Lowe, Esq., Newark, New Jersey
Fabiana Prado Scatarzi: James N. Green, Esq., Lafayette, Louisiana
Santana Arturo Castillo Gonzalez: Michael Simon, Esq., Mountainside, New Jersey
Felipe Andres Del Valle Munoz: John Carpenter, Esq., Tacoma, Washington
Carlos Alfredo Calderon Valencia: Thomas Weaver, Esq., Bremerton, Washington
Diego Antonio Calderon Leiva: Thomas Thornton, Esq., Harrisburg, Pennsylvania
Pedro Alejandro Salgado Vallejos: Michael Tumposky, Esq., Boston, Massachusetts
residential_burglars.complaint.pdfFederal Inmate Sentenced to Additional 10 Years in Prison for Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – A federal inmate serving a ten-year sentence for possessing child pornography was sentenced today to an additional ten years in prison for possessing images and videos of child sexual abuse while incarcerated on his prior conviction, Acting U.S. Attorney Vikas Khanna announced.
Daniel Baldwin, 33, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of possession of child pornography. U.S. District Judge Karen M. Williams imposed the sentence today.
According to documents filed in this case and statements made in court:
Baldwin was convicted in 2018 of possessing child pornography and sentenced to ten years imprisonment. In June 2022, while serving his sentence at a federal correctional institution in New Jersey, corrections officers found a SD card hidden in Daniel Baldwin’s clothing. A subsequent search of the SD card revealed hundreds of images and videos of child pornography, including depictions of prepubescent minors engaged in sexually explicit conduct.
In addition to the prison term, Judge Williams sentenced Baldwin to seven years of supervised release.
Acting U.S. Attorney Khanna credited special agents of the Federal Bureau of Investigation, under the leadership of Special Agent in Charge Brian J. Driscoll, with the investigation leading to today’s sentencing. He also thanked FCI Fort Dix staff for their assistance in the investigation.
The Government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Bergen County Man Sentenced to 72 Months in Prison for Possession with Intent to Distribute HeroinRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced to 72 months in prison for possession of heroin with intent to distribute, Acting U.S. Attorney Vikas Khanna announced.
Dawan A. Brown, 37, of Cliffside Park, New Jersey, previously pleaded guilty before Judge Brian R. Martinotti to an information charging him with one count of possession with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin. Judge Martinotti imposed the sentence in Newark federal court.
According to documents filed in this case and statements made in court:
Since at least January 2022, law enforcement had investigated drug trafficking activity in the District of New Jersey, to include in and around Harrison, New Jersey. During the investigation, law enforcement officers learned that Dawan Brown, a/k/a “DB,” distributes narcotics in New Jersey.
Through investigation, law enforcement officers learned that Brown packaged and distributed large amounts of heroin from an apartment in a building located in Harrison, New Jersey. On June 14, 2022, law enforcement officers executed search warrants at the Harrison apartment and at Brown’s residence located in Cliffside Park, New Jersey. From the apartment in Harrison, officers recovered approximately two kilograms of narcotics, suspected to contain amounts of heroin and fentanyl; drug paraphernalia, including a ledger, a safe, scales, a coffee and spice grinder, ink pads, stamps, Ziplock bags, vacuum bags and a vacuum bag sealer machine, razor blades, glassine envelopes and strainers; and approximately $34,000 that was contained within the safe along with some of the suspected heroin and fentanyl. From the residence in Cliffside Park, officers recovered approximately $169,000, five cell phones, safety deposit keys, and various jewelry including diamond necklaces, gold watches, and a gold ring. Law enforcement officers also recovered approximately $225,000 from safety deposit boxes that were associated with Brown.
As part of his plea agreement, Brown agreed to forfeit $436,615.95, the proceeds from the narcotics trafficking.
In addition to the prison term, Judge Martinotti sentenced Brown to four years of supervised release.
Acting U.S. Attorney Khanna credited special agents of the FBI, under the direction of Special Agent in Charge Brian J Driscoll Newark; the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II; Harrison Police Department, under the direction of Chief David Strumolo; and Cliffside Park Police Department, under the direction of Chief Marc Marano, with the investigation leading to the sentencing. He also thanked the Essex County Sheriff’s Office, the Bloomfield Police Department, the Newark Police Department, Irvington Police Department, Hillsborough Police Department, and the Fort Lee Police Department.
The government is represented by Assistant U.S. Attorney Robert L. Frazer of the Organized Crime/Gangs Unit and Assistant U.S. Attorney Dong Joo Lee of the Cybercrime Unit, in Newark.
Pharmacy Agrees to Resolve False Claims Act Allegations for Billing for Drugs Not DispensedRead the Press Release
NEWARK, N.J. – Medsinbox Pharmacy LTC LLC d/b/a Farmacia San Antonio (“Medsinbox”), a pharmacy located in Camden, New Jersey, has agreed to pay $625,000 to resolve allegations that it violated the False Claims Act by knowingly billing federal health care programs for medications that it never dispensed, Acting U.S. Attorney Vikas Khanna announced today.
According to the contentions of the United States in the settlement agreement:
The United States alleged that, from January 1, 2019, through January 24, 2022, Medsinbox caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries. The government contends that inventory records showed that Medsinbox did not purchase enough of these medications from wholesalers to fill all the prescriptions billed to these federal health care programs.
“Pharmacies play an important role in maintaining the safety and accuracy of prescribed medications, and allegedly billing for medications not actually dispensed undermines that role and defrauds our healthcare programs. The government will continue to pursue entities that engage in fraud and abuse at the taxpayers’ expense.”
Acting U.S. Attorney Vikas Khanna
“Health care providers defraud federal health care programs when they bill for goods or services that they did not provide,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who improperly seek to profit from taxpayer funded programs.”
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Division’s Commercial Litigation Branch, Fraud Section.
The government is represented by Assistant U.S. Attorneys Robert Toll and Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Jennifer Cihon in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
medsinbox.settlement_agreement.pdfNew Jersey Resident and Business Owner Admits $3,400,000 Tax EvasionRead the Press Release
CAMDEN, N.J. – A Gloucester, County, New Jersey man admitted to willfully evading more than $3,400,000 of taxes, Acting U.S. Attorney Vikas Khanna announced today.
Jose Camilo Perez, Jr., 54, of Sewell, New Jersey, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb to an information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
Perez controlled a company that digitized medical records for hospitals and other healthcare entities. From 2016 through 2023, the business received more than $8,000,000 for the services it performed. Perez attempted to evade the assessment of federal income taxes by cashing checks payable to the business at a check cashing business rather than depositing those checks into the business’s bank account or his personal bank account, and then he used the cash for personal expenses and to pay payroll. From 2016 through 2023, Perez did not report any of the income he received from the business to the IRS. As a result, Perez evaded income taxes of more than $3,400,000.
The tax evasion charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for May 20, 2025.
Acting U.S. Attorney Khanna credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
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Defense counsel:
Brian J. McMonagle Esq., Philadelphia, Pennsylvania
josecamiloperez.information.pdfNew Jersey Pharmacy Agrees to Resolve False Claims Act Allegations for Billing for Drugs Not DispensedRead the Press Release
Medsinbox Pharmacy LTC LLC, doing business as Farmacia San Antonio (Medsinbox), a pharmacy located in Camden, New Jersey, has agreed to pay $625,000.00 to resolve allegations that it violated the False Claims Act by knowingly billing federal health care programs for medications that it never dispensed.
The United States alleged that, from Jan. 1, 2019, through Jan. 24, 2022, Medsinbox caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries. The government contends that inventory records showed that Medsinbox did not purchase enough of these medications from wholesalers to fill all of the prescriptions billed to these federal health care programs.
“Health care providers defraud federal health care programs when they bill for goods or services that they did not provide,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who improperly seek to profit from taxpayer funded programs.”
“Pharmacies play an important role in maintaining the safety and accuracy of prescribed medications, and allegedly billing for medications not actually dispensed undermines that role and defrauds our healthcare programs,” said Acting U.S. Attorney Vikas Khanna for the District of New Jersey. “The government will continue to pursue entities that engage in fraud and abuse at the taxpayers’ expense.”
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and U.S. Attorney’s Office for the District of New Jersey.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Senior Trial Counsel Jennifer Cihon of the Justice Department’s Civil Division and Assistant U.S. Attorneys Kruti Dharia and Robert Toll for the District of New Jersey handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Mercer County Man Pleads Guilty to Communicating Threats to Attack Members of the White CommunityRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man admitted to transmitting, via the internet, a post containing threats to injure members of the white community by shooting them with a firearm, Acting U.S. Attorney Vikas Khanna announced today.
Joshua Cobb, 24, of Trenton, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court to an information charging him with transmitting a threat in interstate commerce.
According to documents filed in this case and statements made in court:
On December 17, 2022, Cobb used a social media application to post a message, stating:
“I want to cause mayhem on the white community. The reason i specifically want to target white people is because as a black male, they will NEVER understand my struggles. Same way I will never understand their struggles, but I don't care to. I want to erase them. All of them really, but in this case as many as I possibly can.
As of today I have officially began planning my attack. It is going to take place in 2023 in the state of New Jersey, I have not chosen a exact date but I am going to be sure it is close to an important holiday to their race. I have a location in mind already which I have frequented for the past year and I am certain nobody there is armed to be able to stop me from spraying them to the ground. I have already acquired 2 of the 4 firearms I plan to use for my attack, and I also know my entry and exit points already after the mayhem…
White people are going to feel my pain in 2023. I will be certain I send as many as I possible can to the deepest pits of hell. I am going to wipe those ugly smiles completely off their faces. I dream of a day of pure evil on them. I plan to allow every evil spirit to work entirely through me and kill as many as i can. Some will get extra rounds through their head.
And you guys can think I'm a troll all you want. Just pay close attention the news, you will see my aftermath. And I will be sure I kill myself after I finish my terrorism.
White men and women in New Jersey, get ready. You are going to feel my pain very fucking soon. I put that on my life. From here on out I don't want to talk, my rounds are going to, after they exit the back of all your heads. Get ready New Jersey. The devil is coming.”
As part of his guilty plea, Cobb admitted to writing the above-described posts, and that he understood that the messages would be threatening towards certain individuals. He had previously provided detailed information to law enforcement on locations he had considered as possible targets for his attack, including a gym and a grocery store in Robbinsville, New Jersey. Cobb also discussed his access to guns and idolization of other mass shooters.
Transmitting a threat in interstate commerce carries a statutory maximum of five years in prison and a fine of $250,000. Sentencing is scheduled for May 20, 2025.
.
Acting U.S. Attorney Khanna credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge Brian J. Driscoll, with the investigation. He also thanked the U.S. Attorney’s Office for the Central District of California, under the direction of U.S. Attorney E. Martin Estrada, agents of the FBI Field Office in Los Angeles, California, under the direction of Acting Assistant Director in Charge Akil Davis; the Hamilton Police Department, under the direction of Chief Kenneth R. DeBoskey; the Robbinsville Police Department, under the direction of Chief Michael K. Polaski; and the Mercer County Prosecutor’s Office, under the direction of Acting Prosecutor Theresa L. Hilton.The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Office’s National Security Unit, with assistance from the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
cobb.information.pdf
Former Atlantic City Housing Authority Coordinator Admits to Fraud in Connection with Covid-19 Relief FundsRead the Press Release
CAMDEN, N.J. – The former Ross Family Service Coordinator for the Atlantic City Housing Authority and Urban Redevelopment Agency today admitted to fraudulently applying for and obtaining COVID-19 relief funds, Acting U.S. Attorney Vikas Khanna announced.
Luquay Zahir, 50, of Atlantic City, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams to two counts of an information charging him with making false statements to influence the U.S. Small Business Administration (“SBA”) and wire fraud.
According to documents filed in the case and statements made in court:
In 2020 and 2021, Zahir, then the Ross Family Service Coordinator for the Atlantic City Housing Authority and Urban Redevelopment Agency, fraudulently obtained more than $30,000 through a Paycheck Protection Program loan and Economic Injury Disaster Loan advance issued under the Coronavirus Aid, Relief, and Economic Security Act.
The count of making false statements to influence the SBA carries a maximum potential penalty of two years in prison and a maximum fine of $250,000. The count of wire fraud carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000.
Acting U.S. Attorney Khanna credited special agents of the FBI, Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Brian J. Driscoll; and special agents of SBA Office of Inspector General’s Eastern Region, under the direction of Special Agent in Charge Amaleka McCall-Braithwaite, with the investigation leading to the guilty plea.
zahir.information.pdf
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Branch Office, working in conjunction with the Special Prosecutions Division in Newark.
Hudson County Convicted Felon Indicted for Possessing A Firearm and an Extended MagazineRead the Press Release
NEWARK, N.J. – A Hudson County man has been indicted for a firearms offense, Acting U.S. Attorney Vikas Khanna announced.
Richard Sharp, 25, of Bayonne, New Jersey and known on social media as “Famous Richard,” is charged with one count of possession of a firearm and ammunition by a convicted felon. He was arrested earlier today and appeared before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On July 4, 2024, law enforcement responded to reports of an incident at a gas station in Bayonne, New Jersey. The investigation revealed that during an altercation at the gas station, Sharp had brandished a firearm with an extended magazine and threatened to shoot other people who were at the gas station. Several days later, Sharp posted a video on social media showing him dancing while holding a firearm equipped with an extended magazine.
Subsequently, on July 12, 2024, following a judicially authorized search of Sharp’s residence and vehicle, law enforcement recovering a loaded Beretta M9 semi-automatic handgun with a defaced serial number and an extended magazine that contained approximately 24 rounds of ammunition.
The count of being a felon in possession of a firearm and ammunition is punishable by a maximum of 15 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest.
Acting U.S. Attorney Khanna credited special agents of the Federal Bureau of Investigation, Newark Field Division under the direction of Special Agent in Charge Brian J. Driscoll, with the investigation. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez and the Bayonne Police Department under the direction of Police Chief Robert Geisler.
The government is represented by Assistant U.S. Attorney Sean Nadel of the Narcotics/OCDETF Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Areeb Salim, Esq.
sharp.indictment.pdfCalifornia Man Admits Role in $10 Million Health Care Kickback SchemeRead the Press Release
NEWARK, N.J. – A California man today admitted his role in a kickback scheme that caused more than $10 million in losses to Medicare, Attorney for the United States Vikas Khanna announced.
Adam Wayne Owens, 44, of Riverside, California, pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark to one count of a superseding indictment charging him with conspiracy to violate the federal Anti-Kickback Statute.
According to documents filed in the case and statements made in court:
From November 2018 to January 2020, Owens participated in a kickback and bribery scheme with testing companies that arranged for at-home cancer genetic tests (CGX). Owens owned and controlled marketing companies in California through which he and his conspirators identified Medicare beneficiaries to target for CGX testing. Owens and his conspirators provided personal and medical information about the Medicare beneficiaries to the testing companies, which caused CGX testing kits to be sent to the beneficiaries. Once the CGX tests were completed and returned, Owens’ conspirators submitted claims for reimbursement to Medicare. Owens’ companies received kickback payments ranging from $1,700 to $2,000 for each CGX test resulting in Medicare reimbursement.
To conceal the scheme, the testing companies wired various kickback payments to a company in New Zealand, which then wired the payments to bank accounts controlled by Owens in the United States. To further conceal the scheme, Owens entered into a sham contract with the New Zealand company which made it appear that one of Owens’ marketing companies was engaged in and being paid for legitimate marketing and referral services by the New Zealand company. Owens then generated invoices falsely purporting that the marketing company was providing hourly referral services for the New Zealand company. Instead, Owens received payments from the New Zealand company based solely on the number of CGX tests that Medicare reimbursed.
As a result of the kickback scheme, Owens and his conspirators caused a loss to Medicare of more than $10 million.
Conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge Brian Driscoll; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorneys Garrett J. Schuman and Katherine M. Romano of the Health Care Fraud Unit and Senior Trial Counsel Barbara A. Ward of the Asset Recovery and Money Laundering Unit.
owens.supindictment.pdf
Marketers and Healthcare Providers in Texas, Virginia, and South Carolina Agree to Pay over $1.1 Million to Settle Laboratory Kickback AllegationsRead the Press Release
NEWARK, N.J. – Two laboratory marketers, three healthcare providers, an outpatient clinic, and associated entities have agreed to pay a $1.14 million to resolve violations of the Anti-Kickback Statute, U.S. Attorney Philip R. Sellinger announced today.
Shahram Naghshbandi, of Fort Worth, Texas, and John Bello, of Chesterfield, Virginia; and three physicians – Abbesalom Ghermay, of Plano, Texas, Daniel Theesfeld, of Longview, Texas, and James Cook, of Richmond, Virginia – and medical practice owner Troy Belton, of Columbia, South Carolina, agreed to settle False Claims Act allegations they took part in laboratory kickback schemes in violation of the Anti-Kickback Statute.
“Kickbacks can harm taxpayer-funded healthcare programs and improperly influence healthcare providers’ medical decisions. Patients should always be able to rely on their medical professionals making decisions in the patients’ best interest, and not for any monetary reason. We will continue to pursue all those involved in illegal kickback schemes.”
U.S. Attorney Philip R. Sellinger
“Monetary inducements to healthcare providers undermine the integrity of taxpayer-funded healthcare programs and can improperly influence healthcare providers’ decision-making,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division said. “We will continue to hold accountable individuals, as well as companies, who disregard their legal obligations and participate in illegal kickback schemes.”
“Individuals and entities that participate in the federal healthcare system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients,” said Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue working with law enforcement to investigate parties alleged to have violated the Anti-Kickback Statute.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The Anti-Kickback Statute ascribes liability to parties on both sides of an impermissible kickback arrangement. The settlements announced today resolve allegations that laboratory marketers and their companies paid or conspired to pay kickbacks to doctors, and that doctors and their companies received kickbacks in return for laboratory referrals. The alleged kickbacks resulted in the submission of false or fraudulent laboratory testing claims to Medicare in violation of the False Claims Act.
The Marketer Settlements
The settlements announced today resolve allegations that two marketers paid kickbacks in violation of the Anti-Kickback Statute to induce healthcare providers to make referrals to laboratories in New Jersey, Florida, Virginia, and Texas.
Shahram Naghshbandi agreed to pay $400,000 to resolve allegations that he entered into illegal schemes to pay kickbacks to doctors for laboratory referrals. From August 2018 through July 2022, in return for Naghshbandi and his marketing company arranging for and/or recommending that several healthcare providers order laboratory testing from three clinical laboratories in Kenilworth, New Jersey, Dallas, Texas, and Orlando, Florida, these laboratories allegedly paid commissions to Naghshbandi’s marketing company based on reimbursements from the healthcare providers’ laboratory testing referrals. To induce these healthcare providers to order testing, Naghshbandi allegedly paid them thousands of dollars in kickbacks disguised as investment distributions from purported management service organizations (MSOs). In addition to the monetary settlement, Naghshbandi has been excluded from federal healthcare programs for ten years.
John Bello and his marketing company, RiteRx4U LLC, agreed to pay $140,000 to resolve allegations that, from February 1, 2019 through February 28, 2021, they paid Dr. James Cook, of Richmond. Virginia, thousands of dollars in kickbacks to induce Cook to order testing from two clinical laboratories in Kenilworth, New Jersey and Chester, Virginia. Bello and RiteRx4U allegedly sought to disguise these payments as purported investment returns when they were in fact based on the volume and value of Cook’s referrals to these laboratories.
The Healthcare Provider Settlements
The settlements announced today also resolve allegations that healthcare providers received kickbacks in violation of the Anti-Kickback Statute in return for making referrals to laboratories in New Jersey, Virginia, and Texas.
Dr. Abbesalom Ghermay agreed to pay $228,482 to resolve allegations that, from January 2016 to November 2018, he received thousands of dollars in payments from a purported MSO in return for ordering testing from a laboratory in Houston, Texas.
Dr. James Cook and his medical practice, Family Medical Centers, P.C., agreed to pay $206,987 to resolve allegations that, from February 2019 to February 2021, they received thousands of dollars in payments from marketer RiteRx4U LLC in return for ordering testing from two clinical laboratories in Kenilworth, New Jersey and Chester, Virginia. Cook and his practice allegedly received thousands of dollars in payments from the marketer that were disguised as purported investment returns but in fact were based on the volume and value of Cook’s testing referrals to the two laboratories.
Dr. Daniel Theesfeld and his medical practice, H8 Pain Management Center of Texas PLLC, agreed to pay $99,125 to resolve allegations that, from April 2017 to September 2018, they received thousands of dollars in payments from a purported MSO in return for ordering testing from a laboratory in Houston, Texas.
Advantage Medical Group, an outpatient clinic in Columbia, South Carolina, and its owner, Troy Belton, agreed to pay $63,320 to resolve allegations that from June 2017 to July 2022, they received thousands of dollars in payments from two purported MSOs in return for ordering testing from three laboratories in Kenilworth, New Jersey, Dallas, Texas, and Denton, Texas.
The parties have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.
The settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG.
The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
naghshbandi.settlementagreement.pdf ghermay.settlementagreement.pdf cook.settlementagreement.pdf bello.settlementagreement.pdf amg.settlementagreement.pdf theesfeld.settlementagreement.pdfMercer County Man Charged with Illegally Possessing Firearms, Fentanyl, and CocaineRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was arrested and charged with illegally possessing firearms and possessing with the intent to distribute fentanyl and cocaine, U.S. Attorney Philip R. Sellinger announced today.
Jose Colon-Matos, 33, of Trenton, is charged by complaint with one count of being a previously convicted felon in possession of two firearms, one count of possession with the intent to distribute fentanyl, one count of possession with the intent to distribute cocaine, and one count of possession of firearms in furtherance of a drug trafficking crime. He made his initial appearance on January 6, 2025, before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and was detained pending a detention hearing scheduled for January 10, 2025.
According to documents filed in this case and statements made in court:
On May 15, 2024, following an investigation into narcotics activity in Hamilton Township in Mercer County, law enforcement officers conducted a court-ordered search of an apartment used by Colon-Matos during which they recovered from a safe in the apartment two loaded firearms, including one with an obliterated serial number, distribution quantities of suspected fentanyl and cocaine, and approximately $9,000.00 in United States currency. The narcotics were subsequently tested by the New Jersey State Police forensic laboratory, which returned positive results for fentanyl and cocaine.
The charge of being a convicted felon in possession of a firearm carries a potential maximum penalty of 15 years in prison and a fine of up to $250,000. The counts of possession with intent to distribute fentanyl and cocaine each carry a maximum penalty of 20 years in prison and a fine of up to $1 million. The charge of possession of a firearm in furtherance of a drug trafficking crime carries a mandatory minimum sentence of five years in prison, which must run consecutively to any other sentence imposed, and a maximum potential penalty of life imprisonment, and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Brian Driscoll in Newark, with the investigation leading to the charges. He also thanked the Hamilton Township Police Division, under the direction of Chief Kenneth R. DeBoskey, and the Mercer County Prosecutor’s Office, for their assistance in the investigation.
The government is represented by Special Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Andrea G. Aldana, Assistant Federal Public Defender, Office of the Federal Public Defender.
colon_matos.complaint.pdfDefense Contractor Agrees to Pay $628,000 to Settle False Claims Act AllegationsRead the Press Release
NEWARK, N.J. - A Vermont company will pay $628,328 to resolve allegations that it sold substandard items to the United States Army, U.S. Attorney Philip Sellinger announced today.
The settlement resolves allegations that from July 13, 2018 through November 21, 2019, Live Wire, LLC made false claims in conjunction with contracts awarded to it by the United States Army. Live Wire contracted with the Army to sell electronic communications headsets and admits in the settlement that it provided non-compliant headsets that were not tested to the appropriate military specifications prior to their sale. Upon discovering that the headsets were not properly tested, Live Wire self-disclosed that information to the Government and cooperated with the investigation.
U.S. Attorney Sellinger credited special agents of the United States Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, and special agents of the United States Army, Army Criminal Investigation Division, Northeast Field Office, under the direction of Special Agent in Charge Joel Kirch, for the investigation of the allegations against Live Wire.
The United States is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Health Care Fraud Unit in Newark.
livewire.settlementagreement.pdf
Virginia Man Sentenced to 180 Months in Prison for Possession with Intent to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Virginia man was sentenced today to 180 months in prison for possession with intent to distribute fentanyl, U.S. Attorney Philip Sellinger announced today.
Djavon Holland, 37, of Virginia, was convicted on April 15, 2024, by a federal jury of two counts of possession with intent to distribute fentanyl following trial before U.S. District Judge Peter G. Sheridan in Trenton federal court. U.S. District Judge Robert Kirsch imposed the sentence today in Trenton federal court.
According to court documents and evidence presented at trial:
In August 2021, law enforcement officials received information that Holland was engaged in narcotics trafficking in or around the Virginia area and New Jersey. On Aug. 12, 2021, a confidential source working with the Ocean County Prosecutor’s Office contacted Holland to arrange a meeting with a confidential source working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). On several occasions, Holland drove to New Jersey and sold fentanyl to ATF’s confidential source.
In addition to the prison term, Judge Kirsch sentenced Holland to 4 years of supervised release.
U.S. Attorney Sellinger credited special agents of the ATF, under the direction of Special Agent in Charge L.C. Cheeks Jr., and the Ocean County Prosecutor’s Office, under the direction of Ocean County Prosecutor Bradley D. Billhimer, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Megan N. Linares and Jenny Chung of the Office’s Criminal Division in Newark.
Defense counsel: Pro Se; Michael Alexander Thomas Esq., Assistant Federal Public Defender, Newark, Standby Counsel
U.S. Attorney Philip R. Sellinger Announces His ResignationRead the Press Release
NEWARK, N.J. – The United States Attorney for the District of New Jersey, Philip Sellinger, announced his resignation today, effective at 11:59 p.m., Jan. 8, 2025. Mr. Sellinger made the following statement regarding his departure and tenure in office:
Serving as the United States Attorney has been the honor of a lifetime. My sincere thanks to President Biden for appointing me the temporary steward of the U.S. Attorney’s Office. I leave knowing the storied traditions of this Office will continue through our dedicated career Assistant U.S. Attorneys and staff. Here is just a fraction of their accomplishments over the past three years.
Violent Crime
Targeting New Jersey’s violent street gangs has been a top priority of my administration. Building on the Office’s strong tradition in this area, our Violent Crime Initiatives (“VCIs”) in Newark, Jersey City, Camden, and Paterson bring together our federal and local law enforcement partners to identify, investigate and prosecute the perpetrators driving shootings and the lethal drug trade in our communities. Rather than broadly imposing mandatory minimum sentences, we have reserved the most severe sentences for these drivers of violence. This targeted approach has proven extremely effective. Shootings and murders in New Jersey have fallen steadily year over year. The total number of shooting victims statewide fell from 1,166 in 2021, to 733 in 2023, and murder victims fell from 250 in 2021, to 190 total in 2023. In 2024, shootings and murders continue to decline.
And because our responsibility to protect vulnerable members of the community extends well beyond gang violence, after nearly a decade of skillful appellate advocacy, we obtained significant sentences for a husband and wife who inflicted years of devastating abuse on their three young foster children while living at the Picatinny Arsenal and elsewhere.
Civil Rights
I created the first standalone Civil Rights Division at any U.S. Attorney’s Office, bringing civil and criminal AUSAs together to combat hate and protect civil rights, including the alarming rise in hate incidents against our Black, Jewish and Muslim communities. We advanced the civil rights of the people of New Jersey in several areas.
We obtained the hate crime conviction of a man who committed a string of violent assaults—including carjackings—on visibly identifiable members of the Orthodox Jewish community around Lakewood, New Jersey. We obtained the conviction of a man who admitted to publishing a manifesto containing threats to attack a synagogue and Jewish people. And we secured a hate crime conviction against a man who admitted to breaking into the Center for Islamic Life at Rutgers University, during the Eid-al-Fitr holiday, where he destroyed religious artifacts. We also charged an individual with throwing a Molotov cocktail at a Jewish temple, which charges remain pending.
We brought civil lawsuits to end systemic racism of communities of color by major banks in and around Newark and New Brunswick, obtaining remedies likely to result in $250 million in loans for the residents of Black, Hispanic, and Asian neighborhoods. We issued findings that New Jersey Veterans Homes provided grossly inadequate conditions resulting in some of the highest death rates in the nation during the COVID-19 pandemic and secured a consent decree to protect the constitutional rights of the veterans. And after issuing a Findings Report regarding systemic violations of Fourth Amendment rights by the Trenton Police Department, we have taken significant steps to end unconstitutional policing in Trenton.
We also brought lawsuits securing the right of religious organizations to build temples and mosques in the face of discriminatory zoning policies. And we protected voting rights for Spanish speakers in Union County, and access to the polls for individuals with disabilities in Hudson and Morris Counties.
Economic Crimes and Government Fraud
My Office led the investigation into TD Bank’s pervasive failures to prevent money laundering networks from using the bank to move massive sums of illicit funds. Our investigation established that the bank did not monitor 92% of its funds, totaling $18 trillion, for a period of years. This allowed criminal money laundering networks to move over $670 million through the bank. The investigation recently culminated in TD Bank’s landmark guilty plea to violating the Bank Secrecy Act and conspiring to commit money laundering, resulting in over $1.8 billion in criminal penalties. We prosecuted and obtained convictions of a shadow CEO of a real estate firm for perpetrating a Ponzi scheme that scammed thousands of victims out of $658 million and an Army reservist who defrauded and stole from Gold Star families. We prosecuted several other securities fraud, insider trading and market manipulation cases.
And we charged the chief executive officer and a foreperson of a construction company hired by the city of Newark to replace lead pipes, whom we allege intentionally left lead pipes in the ground, endangering public health.
Cyber Crime
During my administration, our Cybercrime Unit achieved international prominence, leading the investigation of LockBit, then the most prolific and destructive ransomware group in the world. LockBit victims included hospitals, schools, nonprofit organizations, critical infrastructure facilities, and government and law-enforcement agencies across nearly 120 countries, including Washington D.C.’s Metropolitan Police Department. Before being disrupted through the efforts of our Office and our international partners, LockBit had extracted over $500 million in ransom payments worldwide and caused billions of dollars in broader losses. We charged seven LockBit members, including its leader, and have obtained two convictions to date.
National Security
Our National Security Unit, working in partnership with the FBI and our state and local partners, has protected New Jersey from domestic and international threats.
We swiftly charged a former Marine for his threats to commit mass shootings targeting white people in New Jersey. We successfully prosecuted two individuals for concealing material support to designated foreign terrorist organizations Hamas and Hay'at Tahrir al-Sham (HTS). And we also charged three Chinese intelligence officers, along with a Chinese national, with conspiracy to act in the United States as agents of China. Among other things, the conspirators allegedly attempted to recruit an individual who was a former federal law enforcement officer and state homeland security official, and was then serving as a professor at an American university.
Health Care Fraud and Opioid Abuse Prevention and Enforcement
Our Health Care Fraud Unit prosecuted individuals and companies responsible for defrauding government and private health care plans; government contract and customs fraud; unlawful kickback schemes; and fraudulently obtaining millions in federal COVID-19 relief loans. Our Opioid Abuse Prevention and Enforcement Unit aggressively prosecuted the crooked doctors, pharmacies, and sales representatives who put opioids on the street.
Civil Litigation and Asset Recovery
Our Civil Division successfully represented various branches of the United States government in a wide variety of civil and administrative litigation. Quite apart from the $1.8 Billion criminal penalty recovered from TD Bank, for fiscal years 2022, 2023 and 2024, the District of New Jersey collected a total of over $599 million in criminal and civil debts, including restitution for victims, criminal fines, civil penalties, and in cases the office handled jointly with other U.S. Attorney’s Offices and components of the Department of Justice.
Office Transformation
Because of the office’s demonstrated track record, we secured a rare opportunity to hire more AUSAs and support staff. With over 165 AUSAs, the Office is now the largest, and the most impactful, it has ever been. At the same time, building on the office’s longstanding strengths in eLitigation, and U. S. Attorney Sellinger’s role as Chair of the DOJ-wide Elitigation Advisory Council, the office has substantially upgraded its capacity for electronic review of evidence.
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The attorneys and staff members of this Office are some of the finest public servants in the country. They work extraordinarily hard, uphold the highest standards of excellence, and ceaselessly pursue the cause of justice. It is their dedication and commitment that has enabled this Office to achieve so much over the past three years.
Acting U.S. Attorney
Upon United States Attorney Sellinger’s departure, First Assistant U.S. Attorney Vikas Khanna will become Acting U.S. Attorney.
Pending Charges
With respect to all individuals and entities noted above against whom charges remain pending, the charges and allegations contained in the charging instruments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Operator and Owner of Oil Tanker Plead Guilty to Concealment of Pollution from Vessel and Obstruction of JusticeRead the Press Release
NEWARK, N.J. – Two Greek shipping companies pleaded guilty today to violating the Act to Prevent Pollution from Ships (APPS), falsifying records and obstruction of justice. The charges arose out of two United States port calls in which crew members of the Motor Tanker Kriti Ruby presented false records to the U.S. Coast Guard to conceal illegal transfers and discharges of oily bilge water from the vessel.
In accordance with the plea, United States District Judge Esther Salas sentenced Avin International Ltd. and Kriti Ruby Special Maritime Enterprises to pay a criminal fine of $3,375,000 and a $1,250,000 community service payment to the National Fish and Wildlife Foundation. She also sentenced them to serve five-year terms of probation during which they will be subject to environmental compliance plans with a monitorship to ensure future compliance.
The companies pleaded guilty for violating APPS in May and September 2022 during port calls by the Kriti Ruby to Jacksonville, Florida, and the Sewaren Terminal of the port of Newark, respectively. The companies also pleaded guilty to falsification of records and obstruction of justice in connection with the September 2022 port call.
The Kriti Ruby’s former chief engineer, Konstantinos Atsalis, was sentenced today to time served and ordered to pay a $5,000 fine after previously pleading guilty to charges related to the discharge of oily waste into the sea — including concealing the pollution by falsifying records — from the Kriti Ruby near the petroleum terminal in Sewaren, New Jersey. Second engineer Sonny Bosito was sentenced to time served for concealing pollution by falsifying records.
“Maritime pollution is extremely harmful to the environment, and so difficult to detect, especially when the polluters take elaborate steps to falsify records to conceal their crimes. Law protecting our seas exist for a reason, and we will work together with our enforcement partners to ensure they are followed, and violators are punished.”
U.S. Attorney Sellinger
“Prioritizing profits over the environment by discharging oily waste into the sea and working to cover up that pollution is illegal,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We are committed to enforcing the law and fighting against maritime pollution.”
“Today’s plea demonstrates our unwavering commitment, in partnership with the Environmental Crimes Section and the U.S. Attorney’s Office, to ensuring compliance of critical domestic oil pollution laws and holding violators of these laws accountable,” said Rear Admiral Michael E. Platt, Commander of the U.S. Coast Guard’s First District. “Please assist the Coast Guard in these vital efforts by promptly reporting any suspicions of similar illegal activity onboard vessels directly to the Coast Guard Investigative Service (CGIS).”
According to court documents and statements made in court:
The Kriti Ruby is an ocean-going oil tanker registered in Greece. It is owned by Avin International and operated by Kriti Ruby Special Maritime Enterprises. On multiple occasions between May and September 2022, crew members discharged oily waste into the sea via the ship’s sewage system, bypassing required pollution prevention equipment. They did not, as required, record these discharges in the vessel’s oil record book. To make it difficult for the USCG to discover, crew members concealed most of the pumps and hoses used to conduct the bypass operations in a sealed void space called a “cofferdam.”
As part of his guilty plea, Atsalis admitted to falsifying the vessel’s oil record book and he acknowledged that the vessel’s crew had knowingly bypassed required pollution prevention equipment by discharging oily waste from the vessel’s engine room through its sewage system into the sea. Additionally, he admitted that he directed crew members to hide equipment used to conduct these transfers.
Bosito admitted to causing a false oil record book to be presented to the USCG during its inspection of the Kriti Ruby. He also admitted to directing crew members to hide equipment used to conduct transfers from the bilge wells to the sewage tank before the USCG’s inspection.
The USCG’s Investigative Service investigated the case. Individuals can report suspicious activity onboard vessels to CGIS TIPS at www.p3tips.com/878.
Assistant U.S. Attorneys Joseph Stern and Kathleen P. O’Leary and Special Assistant U.S. Attorney Katherine E. Ward for the District of New Jersey and Senior Trial Attorney Kenneth E. Nelson and Trial Attorney Lauren D. Steele of the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case.
03-_avin_dnj_information_signed.pdfFormer Executive of New Jersey Pharmaceutical Company Charged with $38 Million Insider Trading SchemeRead the Press Release
NEWARK, N.J. – An indictment was unsealed today charging a former executive of a publicly traded company with securities fraud and insider trading, U.S. Attorney Philip R. Sellinger announced.
Dale Chappell, 54, a former United States citizen and current resident of Switzerland, was charged by indictment with five counts of securities fraud. Chappell was formerly the Chief Scientific Officer and member of the Board of Directors of Humanigen, Inc., a publicly traded clinical-stage biopharmaceutical company with offices in New Jersey and California. Chappell was arrested on December 20 in Switzerland based on the U.S. criminal charges. The United States will seek Chappell’s extradition to stand trial in the District of New Jersey.
According to court documents, between June and August of 2021, Chappell avoided more than $38 million in losses by selling millions of shares of Humanigen stock while in possession of material, nonpublic information about Humanigen’s application to the Food and Drug Administration (FDA) for approval a drug to treat COVID-19 called Lenzilumab. Chappell—who sold the Humanigen shares through funds that he controlled—is alleged to have engaged in an insider trading scheme in which he fraudulently used Rule 10b5-1 trading plans to trade Humanigen stock.
The indictment alleges that in March 2021, Humanigen announced that it planned to seek emergency-use authorization (EUA) for Lenzilumab. However, between April and May of 2021, FDA staff allegedly informed Humanigen that it was unlikely to meet the criteria for issuance of an EUA. As alleged, knowing that Humanigen had not disclosed this information publicly, Chappell sold the funds’ Humanigen stock, and later also implemented Rule 10b5-1 plans to trade more Humanigen stock holdings. After Humanigen publicly announced that the FDA had declined EUA approval for Lenzilumab, Humanigen’s stock price declined approximately 50%.
“Our office is committed to holding accountable those who profit based on insider information. Combatting securities fraud and protecting the integrity of the markets continues to be a priority for this office.”
U.S. Attorney Sellinger
Chappell is charged with one count of engaging in a securities fraud scheme and four counts of securities fraud for insider trading. If convicted, he faces a maximum penalty of 25 years in prison on the securities fraud charge and 20 years in prison on each of the insider-trading charges.
The case is part of a data-driven initiative led by the Criminal Division’s Fraud Section to identify executive abuses of 10b5-1 trading plans. Chappell’s alleged trading was identified by the Fraud Section through its data-analytics tools. A Rule 10b5-1 trading plan, which allows a corporate insider of a publicly traded company to set up a plan for selling company stock, can offer an executive a defense to insider-trading charges. However, the defense is unavailable if the executive is in possession of material nonpublic information at the time he or she enters into the 10b5-1 trading plan. Additionally, a plan does not protect an executive if the trading plan was not entered into in good faith or was entered into as part of an effort or scheme to evade the prohibitions of Rule 10b5‑1.
U.S. Attorney Sellinger credited special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Nelson I. Delgado, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark and Trial Attorneys Matthew Reilly and David Austin of the Criminal Division’s Fraud Section.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
chappell.indictmentunsealed.pdfEssex County Man Charged with Firearms and Drug Trafficking OffensesRead the Press Release
NEWARK, N.J. – An Essex County man has been indicted for firearms and narcotics offenses, U.S. Attorney Philip R. Sellinger announced.
Raishaun Lofton, 30, of Newark, New Jersey, was charged by indictment with one count of possession of a firearm and ammunition by a convicted felon, one count of possession of ammunition by a convicted felon, one count of possession with intent to distribute fentanyl, and one count of possessing a firearm in furtherance of a drug trafficking crime. He appeared today before United States Magistrate Judge Almonte in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On February 22, 2024, during an investigation, police officers recovered from Lofton a privately made firearm with no serial number, nine rounds of 9mm ammunition, 81 glassine envelopes containing fentanyl, and plastic jugs commonly used to distribute illegal drugs. On April 22, 2024, video surveillance footage depicted Lofton firing a different firearm into the air during an argument. One of the bullets from the firearm that Lofton shot entered a nearby living room where a family with two children was watching a movie. During the subsequent investigation, law enforcement recovered the firearm that Lofton had fired.
The two counts of possession of a firearm and ammunition by a convicted felon each carry a maximum sentence of 15 years in prison and a maximum fine of $250,000. The count of possession with intent to distribute fentanyl carries a maximum sentence of 20 years in prison and a maximum fine of $1,000,000. The count of possession of a firearm in furtherance of a drug trafficking offense carries a mandatory minimum sentence of five years in prison, which must run consecutively to the sentence imposed on the other counts, a maximum sentence of life in prison, and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, and police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda, with the investigation that led to the charges.
The government is represented by Assistant U.S. Attorney Eli Jacobs of the General Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Tatiana Nnaji, Esq., Assistant Federal Public Defender, Newark
lofton_indictment.pdfChief Science Officer of Publicly Traded Health Care Company Charged for Insider Trading Scheme Utilizing 10b5-1 Trading PlansRead the Press Release
Note: View a copy of the indictment here.
An indictment was unsealed today charging a former U.S. citizen with engaging in an insider trading scheme involving the stock of Humanigen Inc., a publicly traded biopharmaceutical company. Dale Chappell, 54, who was formerly the chief scientific officer and member of the Board of Directors of Humanigen, was arrested on Dec. 20 in Switzerland based on the U.S. criminal charges. The United States will seek Chappell’s extradition to stand trial in the District of New Jersey.
According to court documents, between June and August of 2021, Chappell avoided more than $38 million in losses by selling millions of shares of Humanigen stock while in possession of material nonpublic information about Humanigen’s application to the Food and Drug Administration (FDA) for approval of a drug to treat COVID-19 called Lenzilumab. Chappell — who sold the Humanigen shares through funds that he controlled — is alleged to have engaged in an insider trading scheme in which he fraudulently used Rule 10b5-1 trading plans to trade Humanigen stock.
The indictment alleges that, in March 2021, Humanigen announced that it planned to seek emergency use authorization (EUA) for Lenzilumab. However, between April and May 2021, FDA staff allegedly informed Humanigen that Humanigen was unlikely to meet the criteria for issuance of an EUA. As alleged, knowing that this information was not disclosed publicly by Humanigen, Chappell sold the funds’ Humanigen stock, and later also implemented Rule 10b5-1 plans to trade more Humanigen stock holdings. After Humanigen publicly announced that the FDA had declined EUA approval for Lenzilumab, Humanigen’s stock price declined approximately 50%.
Chappell is charged with one count of engaging in a securities fraud scheme and four counts of securities fraud for insider trading. If convicted, he faces a maximum penalty of 25 years in prison on the securities fraud scheme charge and 20 years in prison on each of the insider trading charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is part of a data-driven initiative led by the Criminal Division’s Fraud Section to identify executive abuses of 10b5-1 trading plans. Chappell’s alleged trading was identified by the Fraud Section through its data-analytics tools. A Rule 10b5-1 trading plan, which allows a corporate insider of a publicly traded company to set up a plan for selling company stock, can offer an executive a defense to insider-trading charges. However, the defense is unavailable if the executive is in possession of material nonpublic information at the time he or she enters into the 10b5-1 trading plan. Additionally, a plan does not protect an executive if the trading plan was not entered into in good faith or was entered into as part of an effort or scheme to evade the prohibitions of Rule 10b5‑1.
Principal Deputy Assistant Attorney General Brent Wible, head of the Justice Department’s Criminal Division; U.S. Attorney Philip R. Sellinger for the District of New Jersey; and Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division made the announcement.
The FBI is investigating the case. The Justice Department’s Office of International Affairs is handling the request for Chappell’s extradition.
Trial Attorneys David Austin and Matthew Reilly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine Romano for the District of New Jersey are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brazilian Man Charged with Making Extortionate Threats to Publicize Stolen Data Obtained by Unlawful Computer IntrusionRead the Press Release
Newark, N.J. – A citizen and resident of Brazil was charged with making extortionate threats to publicize data stolen from the Brazilian subsidiary of a New Jersey company, U.S. Attorney Philip R. Sellinger announced.
Junior Barros De Oliveira, 29, of Curitiba, Brazil was charged with four counts of extortionate threats involving information obtained from protected computers in violation of Title 18, United States Code, Section 1030(a)(7)(B) and four counts of threatening communications in violation of Title 18, United States Code, Section 875(d) in an indictment unsealed today in Newark federal court.
According to the Indictment:
In March 2020, De Oliveira gained unauthorized access and exceeded authorized access to the computer systems of Victim 1-Brazil, the Brazilian subsidiary of a New Jersey company. Exploiting this access, De Oliveira obtained confidential customer information relating to approximately 300,000 customers of Victim 1-Brazil. In September 2020, De Oliveira began contacting U.S. representatives of Victim 1, including its CEO, in an attempt to extort money from Victim 1-Brazil. De Oliveira demanded over approximately $3,000,000 in Bitcoin in exchange for keeping the stolen data confidential and not publicizing it.
Each of the four counts of making extortionate threats in relation to information obtained from protected computers carry a maximum prison term of 5 years, and a maximum fine of $250,000 or twice the value of any gain or loss, whichever is greater. Each of the four counts of threatening communications carry a maximum prison term of 2 years, and a maximum fine of $250,000 or twice the value of any gain or loss, whichever is greater.
U.S. Attorney Sellinger credited special agents of the Federal Bureau of Investigation (“FBI”)’s Newark Field Office, under the direction of Acting Special Agent in Charge Nelson I. Delgado.
The government is represented by Assistant U.S. Attorney David E. Malagold of the Cybercrime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
deoliveira.indictment.pdfUnited States Charges Dual Russian and Israeli National as Developer of LockBit Ransomware GroupRead the Press Release
Note: A copy of the superseding criminal complaint can be found here.
A superseding criminal complaint filed in the District of New Jersey was unsealed today charging a dual Russian and Israeli national for being a developer of the LockBit ransomware group.
In August, Rostislav Panev, 51, a dual Russian and Israeli national, was arrested in Israel pursuant to a U.S. provisional arrest request with a view towards extradition to the United States. Panev is currently in custody in Israel pending extradition on the charges in the superseding complaint.
“The Justice Department’s work going after the world’s most dangerous ransomware schemes includes not only dismantling networks, but also finding and bringing to justice the individuals responsible for building and running them,” said Attorney General Merrick B. Garland. “Three of the individuals who we allege are responsible for LockBit’s cyberattacks against thousands of victims are now in custody, and we will continue to work alongside our partners to hold accountable all those who lead and enable ransomware attacks.”
“The arrest of Mr. Panev reflects the Department's commitment to using all its tools to combat the ransomware threat,” said Deputy Attorney General Lisa Monaco. “We started this year with a coordinated international disruption of LockBit — the most damaging ransomware group in the world. Fast forward to today and three LockBit actors are in custody thanks to the diligence of our investigators and our strong partnerships around the world. This case is a model for ransomware investigations in the years to come.”
“The arrest of alleged developer Rostislav Panev is part of the FBI’s ongoing efforts to disrupt and dismantle the LockBit ransomware group, one of the most prolific ransomware variants across the globe,” said FBI Director Christopher Wray. “The LockBit group has targeted both public and private sector victims around the world, including schools, hospitals, and critical infrastructure, as well as small businesses and multi-national corporations. No matter how hidden or advanced the threat, the FBI remains committed to working with our interagency partners to safeguard the cyber ecosystem and hold accountable those who are responsible for these criminal activities.”
“The criminal complaint alleges that Rostislav Panev developed malware and maintained the infrastructure for LockBit, which was once the world’s most destructive ransomware group and attacked thousands of victims, causing billions of dollars in damage,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Along with our domestic and international law enforcement partner actions to dismantle LockBit’s infrastructure, the Criminal Division has disrupted LockBit’s operations by charging seven of its key members (including affiliates, developers, and its administrator) and arresting three of these defendants — including Panev. We are especially grateful for our partnerships with authorities in Europol, the United Kingdom, France, and Israel, which show that, when likeminded countries work together, cybercriminals will find it harder to escape justice.”
“As alleged by the complaint, Rostislav Panev for years built and maintained the digital weapons that enabled his LockBit coconspirators to wreak havoc and cause billions of dollars in damage around the world,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “But just like the six other LockBit members previously identified and charged by this office and our FBI and Criminal Division partners, Panev could not remain anonymous and avoid justice indefinitely. He must now answer for his crimes. Today’s announcement represents another blow struck by the United States and our international partners against the LockBit organization, and our efforts will continue relentlessly until the group is fully dismantled and its members brought to justice.”
According to the superseding complaint, documents filed in this and related cases, and statements made in court, Panev acted as a developer of the LockBit ransomware group from its inception in or around 2019 through at least February 2024. During that time, Panev and his LockBit coconspirators grew LockBit into what was, at times, the most active and destructive ransomware group in the world. The LockBit group attacked more than 2,500 victims in at least 120 countries around the world, including 1,800 in the United States. Their victims ranged from individuals and small businesses to multinational corporations, including hospitals, schools, nonprofit organizations, critical infrastructure, and government and law-enforcement agencies. LockBit’s members extracted at least $500 million in ransom payments from their victims and caused billions of dollars in other losses, including lost revenue and costs from incident response and recovery.
LockBit’s members comprised “developers,” like Panev, who designed the LockBit malware code and maintained the infrastructure on which LockBit operated. LockBit’s other members, called “affiliates,” carried out LockBit attacks and extorted ransom payments from LockBit victims. LockBit’s developers and affiliates would then split ransom payments extorted from victims.
As alleged in the superseding complaint, at the time of Panev’s arrest in Israel in August, law enforcement discovered on Panev’s computer administrator credentials for an online repository that was hosted on the dark web and stored source code for multiple versions of the LockBit builder, which allowed LockBit’s affiliates to generate custom builds of the LockBit ransomware malware for particular victims. On that repository, law enforcement also discovered source code for LockBit’s StealBit tool, which helped LockBit affiliates exfiltrate data stolen through LockBit attacks. Law enforcement also discovered access credentials for the LockBit control panel, an online dashboard maintained by LockBit developers for LockBit’s affiliates and hosted by those developers on the dark web.
The superseding complaint also alleges that Panev exchanged direct messages through a cybercriminal forum with LockBit’s primary administrator, who, in an indictment unsealed in the District of New Jersey in May, the United States alleged to be Dimitry Yuryevich Khoroshev (Дмитрий Юрьевич Хорошев), also known as LockBitSupp, LockBit, and putinkrab. In those messages, Panev and the LockBit primary administrator discussed work that needed to be done on the LockBit builder and control panel.
Court documents further indicate that, between June 2022 and February 2024, the primary LockBit administrator made a series of transfers of cryptocurrency, laundered through one or more illicit cryptocurrency mixing services, of approximately $10,000 per month to a cryptocurrency wallet owned by Panev. Those transfers amounted to over $230,000 during that period.
In interviews with Israeli authorities following his arrest in August, Panev admitted to having performed coding, development, and consulting work for the LockBit group and to having received regular payments in cryptocurrency for that work, consistent with the transfers identified by U.S. authorities. Among the work that Panev admitted to having completed for the LockBit group was the development of code to disable antivirus software; to deploy malware to multiple computers connected to a victim network; and to print the LockBit ransom note to all printers connected to a victim network. Panev also admitted to having written and maintained LockBit malware code and to having provided technical guidance to the LockBit group.
The LockBit Investigation
The superseding complaint against, and apprehension of, Panev follows a disruption of LockBit ransomware in February by the United Kingdom (U.K.)’s National Crime Agency (NCA)’s Cyber Division, which worked in cooperation with the Justice Department, FBI, and other international law enforcement partners. As previously announced by the Department, authorities disrupted LockBit by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and by seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threatening to publish stolen data. That disruption succeeded in greatly diminishing LockBit’s reputation and its ability to attack further victims, as alleged by documents filed in this case.
The superseding complaint against Panev also follows charges brought in the District of New Jersey against other LockBit members, including its alleged primary creator, developer, and administrator, Dmitry Yuryevich Khoroshev. An indictment against Khoroshev unsealed in May alleges that Khoroshev began developing LockBit as early as September 2019, continued acting as the group’s administrator through 2024, a role in which Khoroshev recruited new affiliate members, spoke for the group publicly under the alias “LockBitSupp,” and developed and maintained the infrastructure used by affiliates to deploy LockBit attacks. Khoroshev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, with information accepted through the FBI tip website at www.tips.fbi.gov/.
A total of seven LockBit members have now been charged in the District of New Jersey. Beyond Panev and Khoroshev, other previously charged LockBit defendants include:
- In July, two LockBit affiliate members, Mikhail Vasiliev, also known as Ghostrider, Free, Digitalocean90, Digitalocean99, Digitalwaters99, and Newwave110, and Ruslan Astamirov, also known as BETTERPAY, offtitan, and Eastfarmer, pleaded guilty in the District of New Jersey for their participation in the LockBit ransomware group and admitted deploying multiple LockBit attacks against U.S. and foreign victims. Vasiliev and Astamirov are presently in custody awaiting sentencing.
- In February, in parallel with the disruption operation described above, an indictment was unsealed in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses nationwide in the manufacturing and other industries, as well as victims around the world in the semiconductor and other industries. Sungatov and Kondratyev remain at large.
- In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Mikhail Matveev, also known as Wazawaka, m1x, Boriselcin, and Uhodiransomwar, with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev remains at large and is currently the subject of a reward of up to $10 million through the U.S. Department of State’s TOC Rewards Program, with information accepted through the FBI tip website at www.tips.fbi.gov/.
The U.S. Department of State’s TOC Rewards Program is offering rewards of:
- Up to $10 million for information leading to the arrest and/or conviction in any country of Khoroshev;
- Up to $10 million for information leading to the arrest and/or conviction of Matveev;
- Up to $10 million for information leading to the identification and location of any individuals who hold a key leadership position in LockBit; and
- Up to $5 million for information leading to the arrest and/or conviction in any country of any individual participating or attempting to participate in LockBit.
Information is accepted through the FBI tip website at tips.fbi.gov.
Khoroshev, Matveev, Sungatov, and Kondratyev have also been designated for sanctions by the Department of the Treasury’s Office of Foreign Assets Control for their roles in launching cyberattacks.
Victim Assistance
LockBit victims are encouraged to contact the FBI and submit information at www.ic3.gov/. As announced by the Department in February, law enforcement, through its disruption efforts, has developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Submitting information at the IC3 site will enable law enforcement to determine whether affected systems can be successfully decrypted.
LockBit victims are also encouraged to visit www.justice.gov/usao-nj/lockbit for case updates and information regarding their rights under U.S. law, including the right to submit victim impact statements and request restitution, in the criminal litigation against Panev, Astamirov, and Vasiliev.
The FBI Newark Field Office, under the supervision of Acting Special Agent in Charge Nelson I. Delgado, is investigating the LockBit ransomware variant. Israel’s Office of the State Attorney, Department of International Affairs, and Israel National Police; France’s Gendarmerie Nationale Cyberspace Command, Paris Prosecution Office — Cyber Division, and judicial authorities at the Tribunal Judiciare of Paris; Europol; Eurojust; the U.K.’s NCA; Germany’s Landeskriminalamt Schleswig-Holstein, Bundeskriminalamt, and the Central Cybercrime Department North Rhine-Westphalia; Switzerland’s Federal Office of Justice, Public Prosecutor’s Office of the Canton of Zurich, and Zurich Cantonal Police; Spain’s Policia Nacional and Guardia Civil; Japan’s National Police Agency; Australian Federal Police; Sweden’s Polismyndighetens; Canada’s Royal Canadian Mounted Police; Politie Dienst Regionale Recherche Oost-Brabant of the Netherlands; and Finland’s National Bureau of Investigation have provided significant assistance and coordination in these matters and in the LockBit investigation generally.
Trial Attorneys Debra Ireland and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey are prosecuting the charges against Panev and the other previously charged LockBit defendants in the District of New Jersey.
The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust, Office of International Affairs, and National Security Division also provided significant assistance.
Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Charges Dual Russian and Israeli National as Developer of Lockbit Ransomware GroupRead the Press Release
Defendant Rostislav Panev in Custody Pending Extradition from Israel to the United States
NEWARK, N.J. – A superseding criminal complaint filed in the District of New Jersey was unsealed today charging a dual Russian and Israeli national for being a developer of the LockBit ransomware group, U.S. Attorney Philip R. Sellinger announced.
In August, Rostislav Panev, 51, a dual Russian and Israeli national, was arrested in Israel pursuant to a U.S. provisional arrest request with a view towards extradition to the United States. Panev is currently in custody in Israel pending extradition on the charges lodged in the superseding complaint.
“As alleged by the complaint, Rostislav Panev for years built and maintained the digital weapons that enabled his LockBit coconspirators to wreak havoc and cause billions of dollars in damage around the world. But just like the six other LockBit members previously identified and charged by this office and our FBI and Criminal Division partners, Panev could not remain anonymous and avoid justice indefinitely. He must now answer for his crimes. Today’s announcement represents another blow struck by the United States and our international partners against the LockBit organization, and our efforts will continue relentlessly until the group is fully dismantled and its members brought to justice.”
U.S. Attorney Philip R. Sellinger
“The Justice Department’s work going after the world’s most dangerous ransomware schemes includes not only dismantling networks, but also finding and bringing to justice the individuals responsible for building and running them,” said Attorney General Merrick B. Garland. “Three of the individuals who we allege are responsible for LockBit’s cyberattacks against thousands of victims are now in custody, and we will continue to work alongside our partners to hold accountable all those who lead and enable ransomware attacks.”
“The arrest of Mr. Panev reflects the Department's commitment to using all its tools to combat the ransomware threat,” said Deputy Attorney General Lisa Monaco. “We started this year with a coordinated international disruption of LockBit — the most damaging ransomware group in the world. Fast forward to today and three LockBit actors are in custody thanks to the diligence of our investigators and our strong partnerships around the world. This case is a model for ransomware investigations in the years to come.”
“The arrest of alleged developer Rostislav Panev is part of the FBI’s ongoing efforts to disrupt and dismantle the LockBit ransomware group, one of the most prolific ransomware variants across the globe,” said FBI Director Christopher Wray. “The LockBit group has targeted both public and private sector victims around the world, including schools, hospitals, and critical infrastructure, as well as small businesses and multi-national corporations. No matter how hidden or advanced the threat, the FBI remains committed to working with our interagency partners to safeguard the cyber ecosystem and hold accountable those who are responsible for these criminal activities.”
“The criminal complaint alleges that Rotislav Panev developed malware and maintained the infrastructure for LockBit, which was once the world’s most destructive ransomware group and attacked thousands of victims, causing billions of dollars in damage,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Along with our domestic and international law enforcement partner actions to dismantle LockBit’s infrastructure, the Criminal Division has disrupted LockBit’s operations by charging seven of its key members (including affiliates, developers, and its administrator) and arresting three of these defendants — including Panev. We are especially grateful for our partnerships with authorities in Europol, the United Kingdom, France, and Israel, which show that, when likeminded countries work together, cybercriminals will find it harder to escape justice.”
“For five years, Panev helped to grow LockBit into a ransomware machine of deception and extortion,” said Acting Special Agent in Charge Nelson I. Delgado of the FBI Newark Field Office. “His reach was far and wide but FBI Newark and our international law enforcement partners were able to disrupt his reign. Panev’s arrest marks a victory against these conspirators, and is a step towards upholding justice and neutralizing these criminals.”
According to the superseding complaint, documents filed in this and related cases, and statements made in court, Panev acted as a developer of the LockBit ransomware group from its inception in or around 2019 through at least February 2024. During that time, Panev and his LockBit coconspirators grew LockBit into what was, at times, the most active and destructive ransomware group in the world. The LockBit group attacked more than 2,500 victims in at least 120 countries around the world, including 1,800 in the United States. Their victims ranged from individuals and small businesses to multinational corporations, including hospitals, schools, nonprofit organizations, critical infrastructure, and government and law-enforcement agencies. LockBit’s members extracted at least $500 million in ransom payments from their victims and caused billions of dollars in other losses, including lost revenue and costs from incident response and recovery.
LockBit’s members comprised “developers,” like Panev, who designed the LockBit malware code and maintained the infrastructure on which LockBit operated. LockBit’s other members, called “affiliates,” carried out LockBit attacks and extorted ransom payments from LockBit victims. LockBit’s developers and affiliates would then split ransom payments extorted from victims.
As alleged in the superseding complaint, at the time of Panev’s arrest in Israel in August, law enforcement discovered on Panev’s computer administrator credentials for an online repository that was hosted on the dark web and stored source code for multiple versions of the LockBit builder, which allowed LockBit’s affiliates to generate custom builds of the LockBit ransomware malware for particular victims. On that repository, law enforcement also discovered source code for LockBit’s StealBit tool, which helped LockBit affiliates exfiltrate data stolen through LockBit attacks. Law enforcement also discovered access credentials for the LockBit control panel, an online dashboard maintained by LockBit developers for LockBit’s affiliates and hosted by those developers on the dark web.
The superseding complaint also alleges that Panev exchanged direct messages through a cybercriminal forum with LockBit’s primary administrator, who, in an indictment unsealed in the District of New Jersey in May, the United States alleged to be Dimitry Yuryevich Khoroshev (Дмитрий Юрьевич Хорошев), also known as LockBitSupp, LockBit, and putinkrab. In those messages, Panev and the LockBit primary administrator discussed work that needed to be done on the LockBit builder and control panel.
Court documents further indicate that, between June 2022 and February 2024, the primary LockBit administrator made a series of transfers of cryptocurrency, laundered through one or more illicit cryptocurrency mixing services, of approximately $10,000 per month to a cryptocurrency wallet owned by Panev. Those transfers amounted to over $230,000 during that period.
In interviews with Israeli authorities following his arrest in August, Panev admitted to having performed coding, development, and consulting work for the LockBit group and to having received regular payments in cryptocurrency for that work, consistent with the transfers identified by U.S. authorities. Among the work that Panev admitted to having completed for the LockBit group was the development of code to disable antivirus software; to deploy malware to multiple computers connected to a victim network; and to print the LockBit ransom note to all printers connected to a victim network. Panev also admitted to having written and maintained LockBit malware code and to having provided technical guidance to the LockBit group.
The LockBit Investigation
The superseding complaint against, and apprehension of, Panev follows a disruption of LockBit ransomware in February by the U.K. National Crime Agency (NCA)’s Cyber Division, which worked in cooperation with the Justice Department, FBI, and other international law enforcement partners. As previously announced by the Department, authorities disrupted LockBit by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and by seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threatening to publish stolen data. That disruption succeeded in greatly diminishing LockBit’s reputation and its ability to attack further victims, as alleged by documents filed in this case.
The superseding complaint against Panev also follows charges brought in the District of New Jersey against other LockBit members, including its alleged primary creator, developer, and administrator, Dmitry Yuryevich Khoroshev. An indictment against Khoroshev unsealed in May alleges that Khoroshev began developing LockBit as early as September 2019, continued acting as the group’s administrator through 2024, a role in which Khoroshev recruited new affiliate members, spoke for the group publicly under the alias “LockBitSupp,” and developed and maintained the infrastructure used by affiliates to deploy LockBit attacks. Khoroshev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, with information accepted through the FBI tip website at www.tips.fbi.gov/.
A total of seven LockBit members have now been charged in the District of New Jersey. Beyond Panev and Khoroshev, other previously charged LockBit defendants include:
- In July, two LockBit affiliate members, Mikhail Vasiliev, also known as Ghostrider, Free, Digitalocean90, Digitalocean99, Digitalwaters99, and Newwave110, and Ruslan Astamirov, also known as BETTERPAY, offtitan, and Eastfarmer, pleaded guilty in the District of New Jersey for their participation in the LockBit ransomware group and admitted deploying multiple LockBit attacks against U.S. and foreign victims. Vasiliev and Astamirov are presently in custody awaiting sentencing.
- In February, in parallel with the disruption operation described above, an indictment was unsealed in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses nationwide in the manufacturing and other industries, as well as victims around the world in the semiconductor and other industries. Sungatov and Kondratyev remain at large.
- In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Mikhail Matveev, also known as Wazawaka, m1x, Boriselcin, and Uhodiransomwar, with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev remains at large and is currently the subject of a reward of up to $10 million through the U.S. Department of State’s TOC Rewards Program, with information accepted through the FBI tip website at www.tips.fbi.gov/.
The U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program is offering rewards of:
- Up to $10 million for information leading to the arrest and/or conviction in any country of Khoroshev;
- Up to $10 million for information leading to the arrest and/or conviction of Matveev;
- Up to $10 million for information leading to the identification and location of any individuals who hold a key leadership position in LockBit; and
- Up to $5 million for information leading to the arrest and/or conviction in any country of any individual participating or attempting to participate in LockBit.
Information is accepted through the FBI tip website at tips.fbi.gov.
Khoroshev, Matveev, Sungatov, and Kondratyev have also been designated for sanctions by the Department of the Treasury’s Office of Foreign Assets Control for their roles in launching cyberattacks.
Victim Assistance
LockBit victims are encouraged to contact the FBI and submit information at www.ic3.gov. As announced by the Department in February, law enforcement, through its disruption efforts, has developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Submitting information at the IC3 site will enable law enforcement to determine whether affected systems can be successfully decrypted.
LockBit victims are also encouraged to visit www.justice.gov/usao-nj/lockbit for case updates and information regarding their rights under U.S. law, including the right to submit victim impact statements and request restitution, in the criminal litigation against Panev, Astamirov, and Vasiliev.
The FBI Newark Field Office, under the supervision of Acting Special Agent in Charge Nelson I. Delgado, is investigating the LockBit ransomware variant. Israel’s Office of the State Attorney, Department of International Affairs, and Israel National Police; France’s Gendarmerie Nationale Cyberspace Command, Paris Prosecution Office — Cyber Division, and judicial authorities at the Tribunal Judiciare of Paris; Europol; Eurojust; the United Kingdom’s National Crime Agency; Germany’s Landeskriminalamt Schleswig-Holstein, Bundeskriminalamt, and the Central Cybercrime Department North Rhine-Westphalia; Switzerland’s Federal Office of Justice, Public Prosecutor’s Office of the Canton of Zurich, and Zurich Cantonal Police; Spain’s Policia Nacional and Guardia Civil; Japan’s National Police Agency; Australian Federal Police; Sweden’s Polismyndighetens; Canada’s Royal Canadian Mounted Police; Politie Dienst Regionale Recherche Oost-Brabant of the Netherlands; and Finland’s National Bureau of Investigation have provided significant assistance and coordination in these matters and in the LockBit investigation generally.
Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey and Trial Attorneys Debra Ireland and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the charges against Panev and the other previously charged LockBit defendants in the District of New Jersey.
The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust, Office of International Affairs, and National Security Division also provided significant assistance.
Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A.
The charges and allegations contained in the superseding complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Frank Arleo, Esq.
panev.supersedingcomplaint.pdfThe U.S. Attorney’s Office Secures an Agreement Resolving ADA Complaint Involving A New Jersey Medical PracticeRead the Press Release
Agreement Removes Discriminatory Barriers to Individuals with Vision and Hearing Disabilities
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey secured a settlement agreement to resolve allegations that Advanced ENT & Allergy discriminated against a prospective patient who is deaf and has low vision in violation of the Americans with Disabilities Act (ADA). Following an investigation, the U.S. Attorney’s Office found that Advanced ENT & Allergy, which has eleven offices in southern New Jersey, violated the ADA by refusing to provide in-person sign language interpretation services where doing so was necessary for deaf and low vision patients to effectively communicate. Instead, the practice relied exclusively on screen-based, remote interpretation, even when those services could not accommodate patients and prospective patients who could not effectively see a screen due to their vision disability. These findings are based, in part, on evidence gathered by the U.S. Department of Justice Fair Housing Testing Program.
Under the settlement agreement, Advanced ENT & Allergy will, among other things, implement a non-discrimination policy to ensure that individuals with disabilities are afforded full and equal opportunities to its benefits and services. The medical practice will also ensure that it will provide in-person interpretation services to patients and prospective patients with disabilities who require that service to effectively communicate. Advanced ENT & Allergy will also provide mandatory ADA training to its employees. It is anticipated that Advanced ENT & Allergy will be acquired by ENT and Allergy Associates, LLP effective January 1st, and will do business under that new name. ENT and Allergy Associates had no role in conduct at issue in the complaint.
The ADA prohibits places of public accommodation, such as Advanced ENT & Allergy, from discriminating on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office’s Civil Rights Division at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint.
Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).
The government is represented by Assistant U.S. Attorney Emily B. Goldberg of the U.S. Attorney’s Office’s Civil Rights Division.
advancedentallergy.settlement.pdfUtah Man Sentenced to 57 Months in Prison for $8 Million Credit Card Fraud Scheme, False Statements to BankRead the Press Release
TRENTON, N.J. – A Utah man was sentenced today to 57 months in prison for his role in two criminal schemes, U.S. Attorney Philip R. Sellinger announced.
Timothy Gibson, 48, of Lehi, Utah, previously pleaded guilty in Trenton federal court to Count One of a five-count indictment, which charged him with conspiracy to commit wire fraud for his role in a multi-million dollar credit card fraud scheme that occurred in New Jersey; and to a three-count information which charged him with making false statements to a bank as part of a scheme that took place in Utah. Judge Georgette Castner imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
The credit card fraud scheme:
Gibson and his conspirators solicited personal information from straw credit card applicants so the members of the conspiracy could submit falsified credit card applications to obtain credit cards. The credit cards were then used to make purchases that generated rewards points from the credit card company. In general, purchases were made on the credit cards and were then cancelled after the rewards points posted but before the credit card payments for the purchases were due. Other “purchases” on the cards were in fact sham transactions run through Gibson’s business’s merchant account.
Gibson and his conspirators solicited straw credit card applicants by offering to purchase credit card offers the applicants received in the mail. They then asked the straw credit card applicants to provide their personal identifying information, and used that information to open numerous credit cards in the names of fictitious businesses created with falsified financial and employment information, straw e-mail addresses, and fake business addresses. Straw cardholders sent Gibson and his conspirators the credit card account information in exchange for payment. Gibson also used his business’s credit card merchant account to charge the fraudulent credit cards for sham purchases that he knew were not legitimate, all in an effort to generate rewards points on those cards. The conspirators added themselves to the credit card accounts as authorized users, and transferred rewards points to accounts they controlled. The conspirators cancelled the points-generating purchases before the credit card payment was due.
The conspiracy involved more than 8,000 fraudulent accounts in the names of more than 1,500 straw cardholders that obtained more than 800 million rewards points, which were worth more than $8 million.
Charges remain pending against Aharon Lev, a/k/a “Aaron Lev,” a/k/a “Aron Lev,” a/k/a “David Gold,” a/k/a “David Monroe,” 37, of Lakewood, New Jersey. The charges against Lev are merely accusations and he is presumed innocent unless and until proven guilty.
The false statements to a bank:
In March 2020, the CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 outbreak. One new program was the Small Business Association’s (“SBA”) Paycheck Protection Program (“PPP”), a loan program designed to provide an incentive for small businesses to keep workers on payroll during the pandemic. Borrowers were required to submit an application form through an SBA-approved entity.
In May 2020, Gibson falsely reported the number of employees and the average monthly payroll of a business with which he was associated in order to obtain a loan through the PPP program, and advised multiple businesses on how they could do the same.
In addition to the prison term, Judge Castner sentenced Gibson to three years of supervised release and ordered him to pay restitution.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen Philadelphia Division.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division.
Jersey City Gang Member Charged with Violent Crime in Aid of Racketeering and Weapons Offense for Role in ShootingRead the Press Release
NEWARK, N.J. – A member of the Rutgers neighborhood street gang operating in the area of Triangle Park in Jersey City, New Jersey, is charged for his role in shooting rival gang members, U.S. Attorney Philip R. Sellinger announced.
Micah Reid, aka “Nips,” 33, of Jersey City is charged by complaint with one count of violent crime in aid of racketeering activity and one count of discharging of a firearm during a crime of violence. Reid made his initial appearance today before U.S. Magistrate Judge James B. Clark, III in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
Reid is a high-ranking member and associate of the Rutgers neighborhood street gang, which operates in the area of Triangle Park in Jersey City. The gang has historically engaged in retaliatory acts of violence against rival neighborhood street gangs operating in the area of the Salem Lafayette Apartments and the area of Wilkinson Avenue, Ocean Avenue, Martin Luther King Drive, and Wegman Parkway.
On October 1, 2023, Reid, driving a stolen vehicle, shot at members and associates of rival street gangs who were exiting a nightclub on Culver Avenue in Jersey City. In total, six individual suffered gunshot wounds. Law enforcement later recovered the firearm used in the shooting from Reid’s residence while executing a search warrant.
Reid faces a maximum sentence of 30 years in prison on the violent crime in aid of racketeering charge, and a statutory mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison on the firearm offense, which must run consecutively to any other sentence imposed. Both offenses carry a maximum fine of $250,000.
U.S. Attorney Sellinger credited investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge L.C. Cheeks Jr., and the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to the charges.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Alison Thompson of the General 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.
reid.complaint.pdf
Father and Son Admit Role in International Market Manipulation Scheme Related to New Jersey DeliRead the Press Release
CAMDEN, N.J. – A father and son today admitted to orchestrating a large-scale market manipulation scheme related to two publicly traded companies, U.S. Attorney Philip R. Sellinger announced.
Peter Coker, Sr., 82, of Chapel Hill, North Carolina, and Peter Coker, Jr., 56, formerly of Hong Kong, China, both pleaded guilty before U.S. District Judge Christine P. O’Hearn to securities fraud and conspiracy to commit securities fraud.
James Patten, 65, of Winston-Salem, North Carolina previously pleaded guilty to the same charges.
According to documents filed in this case and statements made in court:
From 2014 through September 2022, Peter Coker Sr., Peter Coker Jr., and Patten conspired to enrich themselves through a scheme to manipulate securities prices via a pattern of coordinated trading, which injected inaccurate information into the marketplace, creating false impressions of supply and demand for these securities.
As part of the securities fraud scheme, the defendants targeted two publicly traded companies—Hometown International Inc. and E-Waste Corp.—which were both traded on the OTC Link Alternative Trading System, also known as the OTC Marketplace. The OTC Marketplace is an alternative trading system that contains three tiers of markets, which are largely based on the quality and quantity of the listed companies’ information and disclosures.
Coker Sr., Coker Jr., and Patten took steps to gain control of both entities’ management and stock with the ultimate intention of entering reverse mergers, a transaction through which an existing public company merges with a private operating company. A successful reverse merger would allow the defendants to sell shares of each entity at a significant profit.
In or around 2014, two New Jersey residents began the process of opening a local deli in Paulsboro, New Jersey. One of the individuals discussed his interest in opening the deli with Patten, a long-time friend, who suggested the creation of Hometown International, an umbrella corporation, under which the deli would operate as a wholly owned subsidiary. Unbeknownst to the deli owners, after Hometown International was formed, Patten and his associates began positioning Hometown International as a vehicle for a reverse merger that would yield substantial profit to them.
Around October 2019, Hometown International began selling shares on the OTC Marketplace. Shortly thereafter, Patten, Coker Sr., and Coker Jr. undertook a calculated scheme to gain control of Hometown International’s management and its shares from the deli owners. Coker Sr., Coker Jr., and Patten took similar actions to gain control of E-Waste Corporation’s stock and management.
Once the defendants gained control of Hometown International and E-Waste’s shares, they arranged for the transfer of millions of shares of stock to a number of nominee entities, including entities controlled by Coker Jr., in an effort to mask their control of the shares.
In addition, the defendants transferred shares to family members, friends, and associates and gained control over their trading accounts by obtaining their log-in information in order to conceal the defendants’ involvement. The defendants then used those accounts to commit a number of coordinated trading events, often referred to as match and wash trades, to trade in Hometown International and E-Waste Corp.’s stock on both sides of the transaction.
These tactics artificially inflated the price of Hometown International and E-Waste’s stock by giving the false impression that there was a genuine market interest in the stock. Their scheme had the ultimate impact of artificially inflating Hometown International’s stock by approximately 939 percent and E-Waste’s stock by approximately 19,900 percent.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. The conspiracy to commit securities fraud carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense whichever is greatest.
Judge O’Hearn scheduled Coker, Jr.’s sentencing for April 2, 2025 and Coker Sr.’s sentencing for May 13, 2025.
U.S. Attorney Sellinger credited special agents of the FBI’s Philadelphia Division, under the direction of Special Agent in Charge Wayne A. Jacobs, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation. He also thanked special agents from FBI Charlotte, FBI Los Angeles, FBI San Francisco, FBI Denver, and FBI Knoxville, for their assistance.
The government is represented by Lauren E. Repole, Chief of the Economic Crimes Unit, and Assistant U.S. Attorney Aaron Webman of the Economic Crimes Unit.
pattencokeretal.indictment.pdf
Essex County Convicted Felon Admits Drug Trafficking and Possession of Firearms, Including Two Assault RiflesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted distributing cocaine, possessing with intent to distribute cocaine and heroin, and possessing three firearms, including two assault rifles with high capacity magazines, U.S. Attorney Philip R. Sellinger announced.
Azmar Carter, a/k/a “Bizzy,” 32, of East Orange, pleaded guilty before U.S. District Judge Madeline Cox Arleo to a superseding information charging him with two counts of distribution and possession with intent to distribute cocaine, possession of firearms and ammunition by a convicted felon, and possession with intent to distribute heroin and cocaine.
According to documents filed in this case and statements made in court:
In 2021, law enforcement began investigating a drug trafficking organization that operates primarily in and around Orange, New Jersey and distributes narcotics throughout Essex County. During the investigation, Carter distributed cocaine to law enforcement in May 2021 and in July 2021. Subsequently, on August 18, 2021, law enforcement searched Carter’s residence and car in East Orange, New Jersey and recovered the following items: one Draco AK 47 rifle; one Smith and Wesson AR rifle; one .40 caliber pistol; ninety-four rounds of associated ammunition; a distribution quantity of heroin and cocaine; and approximately $7,177.00.
The drug trafficking offenses carry a maximum potential penalty of 20 years in prison, and a fine of $1 million. The possession of firearms and ammunition by a convicted a felon offense carries a maximum potential penalty of 10 years in prison, and a maximum fine of $250,000. Sentencing is scheduled for April 30, 2024.
U.S. Attorney Sellinger credited special agents and members of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; members of the Orange Police Department, under the direction of Police Director Todd Warren, Chief Vincent Vitiello and Captain Brian Mooney; members of the Elizabeth Police Department, under the direction of Chief of Police Giacomo Sacca and Police Director Earl J. Graves; members of the East Orange Police Department, under the direction of Chief Phyllis Bindi; member of the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda and Chief of Police Sharonda Morris; and the Belleville Police Department, under the direction of Chief Mark Minichini, with the investigation leading to the charges and arrests.
This case is part of Operation Orange, which is a part of the Newark Violent Crime Initiative (VCI), which was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, the Orange Police Department and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the General Crimes Unit in Newark.
Defense counsel: Christopher D. Adams, Esq.
carter.superseding_information.pdf
Two Members of Drug Trafficking Organization Admit Fentanyl Analogue Distribution and Money LaunderingRead the Press Release
NEWARK, N.J. – Two Essex County men today admitted their respective roles as members of a drug trafficking organization responsible for the importation and distribution of hundreds of kilograms of fentanyl analogues, U.S. Attorney Philip R. Sellinger announced.
Defendants Thomas Padovano, 50, and Bartholomew Padovano, 72, of Newark, New Jersey pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to drug trafficking conspiracy and international promotional money laundering conspiracy.
According to documents filed in this case and statements made in court:
Thomas Padovano and Bartholomew Padovano admitted that from approximately January 2014 through September 2020, they and other members of the drug trafficking organization agreed to import and distribute various controlled substances and controlled substance analogues, including fentanyl, fentanyl analogues, methylone, and ketamine. Members of the conspiracy placed orders with a source in China and agreed to distribute, and did distribute, the controlled substances and analogues in New Jersey, both in bulk and in the form of counterfeit pharmaceutical pills that actually contained fentanyl analogues. The Padovano defendants additionally admitted to having engaged in financial transactions aimed at concealing the origin and true ownership of more than $500,000 in drug proceeds.
The charge of drug trafficking conspiracy to which Thomas Padovano pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a fine of up to $10 million. The charge of drug trafficking conspiracy to which Bartholomew Padovano pleaded carries a mandatory minimum penalty of 5 years in prison, a maximum potential penalty of 40 years in prison, and a fine of up to $5 million. The charge of domestic concealment money laundering conspiracy to which both Padovano defendants pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of up to $500,000. Sentencing for both defendants is scheduled for May 6, 2025.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations (“HSI”) – Newark, under the direction of Special Agent in Charge Spiros Karabinas, with the investigation leading to today’s guilty plea. He also thanked HSI in Philadelphia, the Federal Bureau of Investigation – Newark Division, U.S. Postal Inspection Service in Newark, IRS-Criminal Investigation, the Newark Police Department, and the Essex County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek and Special Assistant U.S. Attorney Alexander Hasapidis-Sferra of the Criminal Division in Newark and Trial Attorney Stephen Sola, Chief of the Money Laundering and Forfeiture Unit of the Justice Department’s Money Laundering and Asset Recovery Section. The case is being prosecuted jointly by the United States Attorney’s Office, District of New Jersey and the Money Laundering and Asset Recovery Section (MLARS) of the United States Department of Justice.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
padovano.sinformation.pdf padovanoetal.3rdsindictment.pdf
German Sentenced to 240 Months in Prison for Travel with the Intent to Engage in Illicit Sexual ConductRead the Press Release
NEWARK, N.J. – A German man was sentenced today to 240 months in prison for traveling to New Jersey for the purpose of engaging in sexual conduct with a minor, U.S. Attorney Philip R. Sellinger announced.
Christian Stefan Walther, 40, of Erfurt, Germany, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with travel with intent to engage in illicit sexual conduct.
According to documents filed in this case and statements made in court:
Law enforcement authorities began investigating Walther around January 2023 for child exploitation offenses. Two undercover officers communicated with Walther via email, phone, and an encrypted messaging app concerning Walther’s desire for sexual encounters with young children. Walther sent an undercover officer two videos, each of which depicted an adult male engaging in sexual conduct with a prepubescent aged female child. Walther also expressed his desire to engage in sexual conduct with children aged 8 to 12, described in graphic detail the sex acts he planned to commit against the children, and explained that he had lied to his friends in Germany about the purpose of his trip to the United States. Walther agreed to pay U.S. currency for access to the children.
On March 23, 2023, Walther traveled from Germany to New Jersey to meet the undercover officers in advance of what he believed would be a sexual encounter with one or more children at a hotel. Upon his arrest, Walther admitted that he traveled to the United States to have sex with children under 12.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigation, under the direction of Acting Special Agent in Charge Spiros Karabinas in Newark, with the investigation leading to the charge. He also thanked officers of the New Jersey State Police, under the leadership of Col. Patrick J. Callahan, for its assistance.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division.