District of New Jersey
Press releases recorded for this federal judicial district.
Monmouth County, New Jersey Man Pleads Guilty to Possessing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A previously convicted sex offender admitted today that he uploaded images of child sexual abuse to an online file-sharing network, U.S. Attorney Paul J. Fishman announced.
Layne Bracht, 32, of Highlands, New Jersey, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
Bract admitted that on Oct. 28, 2013, he knowingly placed images and videos depicting child sexual abuse into shared folders that others could access via a peer-to-peer network. Special agents of the FBI executed a search warrant at his residence in Highlands on Jan. 15, 2014 and seized digital evidence that contained numerous videos and images depicting child sexual abuse, including material involving prepubescent minors and sadistic or masochistic conduct. The digital evidence seized included three files previously downloaded from Bracht by law enforcement agents working in an undercover capacity on the peer-to-peer network.
In 2006, Bracht was arrested and charged with possession of child pornography, a charge to which he subsequently pleaded guilty. On April 2, 2008, U.S. District Judge Joseph E. Irenas sentenced Bracht to 30 months in prison to be followed by five years of supervised release. As a previously convicted sex offender, Bracht now faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for March 13, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, New Jersey, and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
14-417
Defense counsel: Brian P. Reilly Esq, Assistant Federal Public Defender, Trenton
Bracht, Layne Information
Former Longshoreman Sentenced to 12 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - A former longshoreman was sentenced to 12 months in prison today for conspiring to extort others in Local 1235 of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Salvatore LaGrasso, 58, of Edison, New Jersey, a former supervisor on the New Jersey piers – previously pleaded guilty before U.S. District Judge Claire C. Cecchi to conspiring to extort Christmastime tributes from the union members – count three of the second superseding indictment against him. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
LaGrasso admitted that he and others conspired to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra (Genovese family). Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
In addition to the prison term, Judge Cecchi sentenced LaGrasso to two years of supervised release.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.
14-418Defense counsel: Peter Till Esq., Springfield, N.J.
Former Longshoreman Sentenced to 12 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - A former longshoreman was sentenced to 12 months in prison today for conspiring to extort others in Local 1235 of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Salvatore LaGrasso, 58, of Edison, New Jersey, a former supervisor on the New Jersey piers – previously pleaded guilty before U.S. District Judge Claire C. Cecchi to conspiring to extort Christmastime tributes from the union members – count three of the second superseding indictment against him. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
LaGrasso admitted that he and others conspired to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra (Genovese family). Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
In addition to the prison term, Judge Cecchi sentenced LaGrasso to two years of supervised release.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.
14-418Defense counsel: Peter Till Esq., Springfield, N.J.
Bergen County, New Jersey, Man Arrested for Embezzling More Than $6 Million from North Jersey BusinessRead the Press Release
NEWARK, N.J. – The former chief financial officer of a Bergen County business was arrested at home this morning by special agents of the FBI for allegedly embezzling nearly $6.3 million from the company, U.S. Attorney Paul J. Fishman announced.
Gomidas Garabed Hartounian, 50, of Franklin Lakes, New Jersey, is charged by complaint with one count of wire fraud. He is expected to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the complaint:
From April 2007 through April 2014, Hartounian was the CFO for “Company A,” a for-profit company with its principal place of business in Englewood, New Jersey. Hartounian is also the sole owner of MGB LLC, a company registered to his residence.
During the time that Hartounian was with Company A, he fraudulently designated MGB as a vendor in Company A’s accounting system without disclosing that he controlled MGB. Hartounian then directed Company A employees to issue checks to MGB for freight services that MGB supposedly provided Company A. When asked for the MGB invoices, he claimed that he was maintaining them in his office.
Because Hartounian didn’t have sole signatory power, he forged the signatures of the chief executive officer or the chief operating officer before depositing the checks into bank accounts that he controlled. Hartounian also had checks issued directly from Company A bank accounts to pay for his personal expenses, including real estate taxes, motor vehicle expenses and credit card payments. Hartounian allegedly stole nearly $6.3 million from the victim company.
The wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss resulting from the crime.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Shana W. Chen 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.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
14-416
Hudson County, N.J., Man Sentenced to 37 Months in Prison for Defrauding Hospitalized, Elderly WidowRead the Press Release
CAMDEN, N.J. – A North Bergen, New Jersey, man was sentenced today to 37 months in prison for defrauding an elderly woman of approximately $279,000 while she was hospitalized for cancer treatment, U.S. Attorney Paul J. Fishman announced.
Ralph Cozzino, 45, previously pleaded guilty before U.S. District Judge Robert B. Kugler to one count of mail fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to the documents filed in this case and statements made in court:
Cozzino admitted to stealing stock certificates from the elderly victim’s apartment. Cozzino then presented the stolen stock certificates to the victim’s stock transfer agent, along with a fraudulent power of attorney bearing the victim’s name, address, Social Security number and forged signature, which purported to grant him control over the victim’s financial affairs, including the power to redeem and/or sell stock.
Cozzino instructed the stock transfer agent to transfer ownership of the stolen stocks into Cozzino’s name and to liquidate certain shares of stock for his benefit. Cozzino caused the stock transfer agent to send him the proceeds of the liquidated shares, which he deposited into bank accounts that he controlled and spent the funds on various personal expenditures, including a 2006 Nissan, Lasik eye surgery, as well as a down payment, closing costs, and furniture for a new house. From April 2006 until October 2007, Cozzino liquidated, and converted to his own use, approximately $279,000 in stolen shares belonging to the victim.
In addition to the prison term, Judge Kugler sentenced Cozzino to serve three years of supervised release and ordered him to pay restitution of $279,020.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
14-414
Defense counsel: J. Michael Farrell Esq., Wenonah, New JerseyFormer Bank Branch Manager Sentenced to 30 Months in Prison for Embezzling More Than $263,000 from BankRead the Press Release
CAMDEN, N.J. – A former branch manager for Newfield National Bank in Franklinville, New Jersey, was sentenced today to 30 months in prison for embezzling $263,864 from the bank, U.S. Attorney Paul J. Fishman announced.
Season Wengert, 32, of Franklinville, previously pleaded guilty before U.S. District Court Judge Robert B. Kugler to an information charging her with one count of bank embezzlement. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Wengert worked as the bank manager at the Franklinville Branch of the Newfield National Bank. From Sept. 4, 2007, through Jan. 7, 2013, Wengert embezzled funds by fraudulently conducting online computer transfers of money from 38 accounts belonging to 23 customers into accounts owned by her or her husband. She also withdrew money from customers’ accounts and deposited it into her accounts. As branch manager, Wengert was able to conceal her embezzlement by failing to note the fraudulent withdrawals in the customers’ passbooks and by transferring money through various customers’ accounts to cover shortages. When customers sought to withdraw money from an account which had been embezzled, Wengert would then transfer money from another victim’s account to cover the withdrawal and conceal her fraudulent conduct. Wengert stole $263,864 for her own use.
In addition to the prison term, Judge Kugler sentenced Wengert to three years of supervised release and ordered her to pay restitution of $261,654.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
14-415
Defense counsel: John C. Eastlack Jr. Esq., Cherry Hill, New JerseyNew York Man Sentenced to 41 Months in Prison Role in Multimillion-Dollar International Cybercrime SchemeRead the Press Release
Worked as ‘Casher’ for Organization that Allegedly Capitalized on
Information Hacked From Customers of More Than a Dozen Global Financial InstitutionsTRENTON, N.J. – A member of an alleged international cybercrime, identity theft and credit card fraud conspiracy was sentenced today to 41 months in prison for his role in a scheme to use information hacked from customer accounts at more than a dozen banks, brokerage firms, payroll processing companies and government agencies to attempt to steal $15 million from customers, U.S. Attorney Paul J. Fishman announced.
Richard Gundersen, 48, of Brooklyn, New York, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an indictment charging him with one count of conspiracy to commit wire fraud, access device fraud and identity theft. Judge Sheridan imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Gundersen was asked by other members of the conspiracy to participate in a scheme to “cash out” bank accounts and pre-paid debit cards opened in the names of others. Oleksiy Sharapka, 34, of Kiev, Ukraine, allegedly directed the conspiracy with the help of Leonid Yanovitsky, 39, also of Kiev. Oleg Pidtergerya, 50, who previously pleaded guilty to his role in the conspiracy, managed a cash-out crew in New York for Sharapka and Yanovitsky, and Robert Dubuc, 41, who has also pleaded guilty to his role in the conspiracy, controlled a cash-out crew in Massachusetts. Gundersen worked as “casher” under Pidtergerya.
Hackers first gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including: Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.
After obtaining unauthorized access to the bank accounts, Sharapka and Yanovitsky diverted money from them to bank accounts and pre-paid debit cards they controlled. They then implemented a sophisticated cash-out operation, employing crews of individuals, including Gundersen, to withdraw the stolen funds by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere. Both Sharapka and Yanovitsky are under indictment in the United States and remain at large.
Gundersen admitted he was aware fraudulent accounts and cards were created without the consent of the individuals in whose names they were opened. He admitted that he opened bank accounts in the names of identity theft victims and that those accounts were funded with money stolen by other conspirators. He also admitted conducting ATM and bank withdrawals of the stolen funds and providing the proceeds of the fraud, less his own fees, to immediate higher-ups in the organization – Pidtergerya and Dubuc, who, in turn, sent a portion of the proceeds to Sharapka and Yanovitsky in Ukraine.
The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.
In addition to the prison term, Judge Sheridan sentenced Gundersen to three years of supervised release and ordered him to pay restitution of $88,160.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, under the direction of Assistant Special Agent in Charge Carl Agnelli; U.S Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge John P. Woods; Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe, Cyber Field Office; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty pleas.
The government is represented by Economic Crimes Unit Chief Gurbir S. Grewal of the U.S. Attorney’s Office in Newark.
The charges and allegations concerning the remaining conspirators are merely allegations and they are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
14-411
Defense counsel: Cynthia Hardaway Esq., NewarkFormer South Plainfield, N.J., Police Captain Sentenced to 20 Years in Prison for Sexually Exploiting A MinorRead the Press Release
TRENTON, N.J. – A former South Plainfield police captain was sentenced today to 20 years in prison for exploiting a minor girl by enticing her to live-stream sexually explicit acts via the Internet in exchange for payment, U.S. Attorney Paul J. Fishman announced.
Michael Grennier, 52, of South Plainfield, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of production of child pornography. Grennier was charged by complaint on Feb. 19, 2013, and has been in custody since that date. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Feb. 14, 2013, Grennier enticed a girl to perform sexually explicit acts and stream images of herself over the Internet while he watched remotely from his home computer. During the webcam session, Grennier exchanged text messages with the minor in which he directed her actions. Grennier admitted during his guilty plea proceeding that he promised to buy his victim clothing in exchange for her performance.
At the time of his arrest, Grennier was working for a private computer forensics firm. Prior to his retirement, he was a computer forensics specialist for the South Plainfield Police Department.
In addition to the prison term, Judge Wolfson sentenced Grennier to serve lifetime supervised release. Restitution will be determined at a later date. Grennier will also be required to register as a sex offender.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s plea. He also thanked the South Plainfield Police Department, under the direction of Chief of Police James Parker, and the Middlesex County Prosecutor’s Office, under the direction of Acting Prosecutor Andrew Carey, for their assistance with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton and Harvey Bartle, the Attorney-in-Charge of the U.S. Attorney’s Trenton Office.
14-412
Defense counsel: Frank Arleo Esq., West Orange, N.J.
Former Newark City Hall Employee Pleads Guilty to Producing Fraudulent Birth CertificatesRead the Press Release
NEWARK, N.J. – A former Newark City Hall employee today admitted producing fraudulent New Jersey birth certificates, U.S. Attorney Paul J. Fishman announced.
Cory Cooke, 45, of Newark, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of producing false identification documents.
According to documents filed in this case and statements made in court:
Cooke was previously employed by the City of Newark at its Office of Vital Statistics and was responsible for issuing official New Jersey birth certificates. From August 2013 to October 2013, Cooke produced four fraudulent New Jersey birth certificates using four different individuals’ personal identifying information, which Cooke had acquired from a conspirator. After producing the fraudulent New Jersey birth certificates, Cooke gave the documents to his conspirator, who subsequently sold them.
The count of producing false identification documents to which Cooke pleaded guilty carries a maximum potential penalty of 15 years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 23, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI), under the direction of Acting Special Agent in Charge John P. Woods in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney J. Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark.
14-413
Defense counsel: Stephen N. Dratch Esq., Livingston, N.J.
Cooke, Cory Information
New Jersey U.S. Attorney's Office Collects $53 Million in Asset Forfeiture and More Than $17 Million in Civil and Criminal ActionsRead the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishmanannounced today that the New Jersey District, working with partner agencies and divisions, collected$52,963,571in asset forfeiture actions in Fiscal Year 2014; it also collected $17,289,649 – $15,063,556 in criminal actions and $2,226,093 in civil actions – during the same fiscal year.
Additionally, New Jersey worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $27,762,608 in cases pursued jointly.
Attorney General Eric Holder announced today that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending Sept. 30, 2014. Across the country, the more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” Attorney General Holder said. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“Over the past five years, the dedicated public servants in my office have collected substantially more in fines, penalties, restitution and settlements – more than $570 million – than it has cost to operate the office,” U.S. Attorney Fishman said. “That money is used in a variety of ways: It makes whole the victims of crimes , is shared with our state and local law enforcement partners, and returned to the general treasury for the benefit of all Americans.”
This past July, the District of New Jersey recovered $1.6 million as part of a total $10.4 million penalty against two shipping firms – Columbia Shipmanagement (Deutschland) GmbH (CSM-D), a German corporation, and Columbia Shipmanagement Ltd. (CSM-CY), company based in Cyprus. The companies had pleaded guilty to charges including violation of the Act to Prevent Pollution from Ships, for failing to maintain an accurate oil record book, obstruction of justice and making false statements.
The U.S. Attorneys’ Offices, along with the Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.The $52,963,571 in assets the District of New Jersey collected through forfeiture actions is deposited into the Department of Justice Assets Forfeiture Fund and used to restore funds to crime victims and for a variety of law enforcement purposes.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Departments of Housing and Urban Development, Health and Human Services, Education, the Internal Revenue Service and Small Business Administration.
14-407
Monmouth County, N.J., Man Pleads Guilty to Operating $20 Million Ponzi SchemeRead the Press Release
TRENTON, N.J. – A Colts Neck, New Jersey, man who defrauded dozens of investors today admitted operating a $20 million Ponzi scheme out of his Fair Haven, New Jersey office and Miami residence, U.S. Attorney Paul J. Fishman announced.
Louis J. Spina, 57, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
Spina admitted he solicited victims to invest through his business, LJS Trading, LLC. After receiving the funds, Spina provided each investor with a note specifying a guaranteed monthly rate of return, typically ranging from nine to 14 percent. Between August 2010 and November 2013, Spina collected $20 million from 36 investors and deposited the funds into the LJS bank account.Over the course of the scheme, Spina only transferred $9.5 million of the investor funds into a trading account. He used the remaining $10.5 million to pay the investors’ monthly interest payments, return portions of some investors’ principals, and to pay for his own personal expenses, including car purchases, luxury apartment rental payments, and a $400,000 donation to a private university.
Spina admitted he lied to investors about the status of their funds, telling them they were making large gains despite the fact he lost all of the $9.5 million that was actually invested. When certain investors became suspicious, he reassured them by sending misleading screen shots of their account balances that reflected only temporary gains, not the total daily losses. In addition, Spina was able to defraud his investors out of an additional $1.7 million by fabricating a story about a wealthy individual planning to buy LJS, which he told them would result in a 14 to 30 percent return on their investment. Altogether, Spina’s scheme cost investors a total of $12.7 million.
The wire fraud count to which Spina pleaded guilty carries a maximum potential penalty of 20 years in prison and $250,000 fine or twice the gross gain or loss from the offense. Spina will also be ordered to pay restitution at sentencing, currently scheduled for Feb. 26, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, New Jersey; and the U.S. Secret Service, under the direction of Assistant Special Agent in Charge Carl Agnelli in Newark, for their work in the investigation.
The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.14-409
Defense counsel: Assistant Federal Public Defender Brian P. Reilly Esq., Trenton
Spina, Louis Information
Manhattan Man Charged with Traveling to New Jersey for Illegal Sexual Activity with 13-Year-Old GirlRead the Press Release
CAMDEN, N.J. – A Manhattan man was arrested today for traveling to New Jersey for the purpose of sexually abusing a 13-year-old girl, U.S. Attorney Paul J. Fishman announced.
Michael Tway Smith, 66, of New York, was arrested by special agents of the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) in Maple Shade, New Jersey, where he expected to meet the girl. He is scheduled to have his initial court appearance today before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to the complaint:
Beginning on Nov. 13, 2014, Smith initiated a series of chats on a website with an undercover agent from ICE HSI, whom he believed was a 13-year-old girl. Over the course of the next several days, Smith had multiple online communications with the agent during which he indicated his desire to engage in sexual activity with the fictitious girl. Smith then made arrangements to travel from Manhattan to Maple Shade. On Nov. 19, 2014, Smith traveled to Maple Shade, where he had reserved a room at a motel and contacted the fictitious girl to finalize the meeting. Today, Smith went to a convenience store near the motel believing he was going to meet the girl and return to the motel with her to engage in sexual activity.
The count of traveling with intent to engage in illicit sexual conduct carries a maximum potential penalty of 30 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of ICE HSI, under the direction of Acting Special Agent in Charge John P. Woods in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Steven D’Aguanno of the New Jersey U.S. Attorney’s Office Camden Office.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
14-410
Smith, Michael Tway Complaint
Former New Jersey Resident Arrested for Defrauding Investment Bank of More Than $1.5 MillionRead the Press Release
NEWARK, N.J. – A former New Jersey resident was arrested today in North Carolina on charges that he allegedly orchestrated a scheme to defraud a United States subsidiary of an international investment bank of more than $1.5 million, U.S. Attorney Paul J. Fishman announced today.
Michael Lieberman, 43, formerly of New Jersey and currently a resident of Huntersville, North Carolina, is charged by complaint with two counts of wire fraud. He is scheduled to make his initial appearance later today in federal court in Charlotte, North Carolina, at which time it is expected that he will be ordered to appear in Newark federal court.
According to the complaint:
Lieberman was employed by “Company A,” a United States-based subsidiary of an international investment bank, in its International Settlements Group located in Iselin, New Jersey. Company A engaged in and settled cross-border securities transactions and acted as a settlement agent for similar securities transactions entered into by its broker-dealer clients. Company A’s International Settlements Group was responsible for, among other things, wiring funds to settle various securities transactions.
From April 2012 through May 2014, Lieberman devised a scheme to defraud Company A out of more than $1.5 million by using his position in the International Settlements Group to initiate more than 40 separate fraudulent wire transfers of Company A’s money, directing the proceeds to bank accounts he either owned or controlled. Lieberman then spent Company A’s money for his own purposes, including purchasing a home in North Carolina, making tens of thousands of dollars in credit card payments and spending hundreds of thousands of dollars on hotels, airplane tickets, home furnishings, restaurant tabs and other expenditures.
Lieberman took various steps to conceal his fraudulent activities, including making fictitious entries in Company A’s bookkeeping system and supplying phony documents to others in order to cause them to make false entries in the company’s books and records reflecting fake profits on non-existent transactions.
The wire fraud counts with which Lieberman is charged each carry a maximum potential penalty of 30 years in prison and a fine of up to $1 million, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Paul Murphy of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark and Assistant U.S. Attorney Evan S. Weitz of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
This arrest is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
14-408
Defense counsel: TBDLieberman, Michael Complaint
Two People Charged in A Scheme to Defraud Their Former Employers of Millions of DollarsRead the Press Release
NEWARK, N.J. – Two Bergen County, New Jersey, residents were charged today in a scheme to defraud two international companies out $3 million by fraudulently billing them for services that were never completed, U.S. Attorney Paul J. Fishman announced.
Barbara Brown, 64, and Philip Charles de Gruchy, 61, both of Park Ridge, New Jersey, surrendered to federal agents this morning and were charged by complaint with one count of conspiracy to commit mail fraud. The defendants made their initial appearances this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Each was released on $250,000 unsecured bond.
According to the complaint filed in this case:
From August 2007 through April 2, 2010, Brown was employed by “Company A,” a toy and juvenile products retailer headquartered in Wayne, New Jersey, first as director of customer relationship management and then as director of global customer relations management. As part of her position, she had authority to hire and pay contractors. Brown caused Company A to enter into a business relationship with CEM, a company that Brown and de Gruchy secretly controlled. From Nov. 5, 2007, through March 4, 2010, CEM submitted more than 60 invoices to Company A for alleged marketing consulting work. The purported work was either copied from other vendors’ work, was related to other businesses or did not correspond to items on CEM’s invoices.
The net amount that CEM billed and collected from Company A was $2.855 million. Although each of the checks that Company A issued to CEM was mailed to various Canadian addresses, the checks were ultimately deposited at bank branches located in White Plains, New York. Checks were written out of the CEM account payable directly to either de Gruchy or Brown or to Silk Farm and Ontario LLC, companies affiliated with de Gruchy. Monies obtained from the scheme were used for personal purposes, including home renovations and mortgage payments on the Park Ridge residence that Brown and de Gruchy shared, and credit card bills.
From July 2010 through Nov. 11, 2011, de Gruchy was employed as the director of global relations management for “Company B,” an international manufacturer and retailer of luxury travel suitcases and accessories, headquartered in South Plainfield, New Jersey. As part of his job, de Gruchy was responsible for a data migration project designed to assist Company B with identifying customer purchasing patterns. De Gruchy obtained verbal approval from Company B to hire Brown to assist on the migration project. At no time did de Gruchy reveal his personal or business relationship with Brown.
From Nov. 4, 2010, through Sept. 22, 2011, Company B mailed $216,835 in checks to a Canadian address purporting to belong to Brown or BI Insights, an alleged Canadian company engaged in marketing consulting services and controlled by Brown. De Gruchy approved all of the invoices submitted by Brown and BI Insights. An examination of documents that purported to support the invoices to Company B revealed that no meaningful work product was furnished. Additional invoices submitted by Brown to Company B, totaling $124,150, were not paid after the scheme to defraud was uncovered.
The counts of conspiracy to commit mail fraud with which the defendants are charged carry a maximum penalty of 20 years in prison.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Leslie Faye Schwartz 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 defendants are considered innocent unless and until proven guilty.
South Carolina Man Admits Tampering with Witness and Lying During Federal Criminal TrialRead the Press Release
CAMDEN, N.J. - A South Carolina man today admitted tampering with a witness in a federal criminal trial that concluded in September 2013, U.S. Attorney Paul J. Fishman announced.
Dennis Nadeau, 53, of Myrtle Beach, South Carolina, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of witness tampering.
According to documents filed in this case and in the prior criminal case and statements made in court:
From 2010 through 2013, Nadeau worked at the New Jersey-based Vacation Ownership Group LLC (VO Group) and its successor VO Financial. In 2013, 13 former VO Group employees pleaded guilty to conspiring to defraud timeshare owners. Four other VO Group employees, including VO Group President Adam Lacerda and his wife, Ashley Lacerda, were convicted by a jury of conspiracy to defraud and related charges after a seven-week trial that concluded in September 2013. The Lacerdas have been in custody since the trial and all defendants are awaiting sentencing.
Shortly before the start of last year’s trial, Ashley Lacerda directed Nadeau to call former VO Group customers who had spoken to the FBI. Nadeau was told to try to convince them that everything had been explained to them and that any problems occurred because they had not followed the VO Group’s instructions. After Nadeau had an initial call with a witness, Adam Lacerda gave Nadeau a written script and directed him to call the witness again using the script. Adam Lacerda told Nadeau that he wanted to obtain ammunition to use when the witness testified at trial and instructed him to record the call without the witness’ knowledge. With Adam Lacerda standing over him, Nadeau called witness using the script and tried to get the witness to agree with several false statements.
The witness testified at trial and the recording was played during the witness’ trial testimony.
Nadeau then testified at trial as one of Adam Lacerda’s defense witnesses. Adam Lacerda prepared Nadeau to testify and told Nadeau to tell two lies during his trial testimony. Nadeau admitted today that he complied with Adam Lacerda’s instructions and gave false testimony at trial.
The count of witness tampering carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000 or twice the gain or loss caused by the offense. Sentencing is scheduled for Feb. 24, 2015.
U.S. Attorney Fishman credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, NewYork Region, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office in Camden.
14-406
Defense counsel: Stanley O. King Esq., Woodbury, N.J.
Nadeau, Dennis Information
Essex County, N.J., Contractor Sentenced to 14 Months in Prison for Defrauding Bronx Home OwnerRead the Press Release
TRENTON N.J. - An Essex County, N.J. contractor who was paid nearly $100,000 to renovate the home of a Bronx, N.Y., woman, was sentenced today to 14 months in prison for defrauding her of the money in connection with the remodeling project, U.S. Attorney Paul J. Fishman announced today.
Raymond Norville, 45, of Orange, N.J., owner of RRL Unique Homes Inc., a construction company, previously pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to a superseding information charging him with one count of conspiracy to commit wire fraud. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In 2011, Norville was a contractor who owned RRL Unique Homes Inc. The victim wanted to renovate her newly purchased home in the Riverdale section of Bronx. Norville agreed to perform the renovations on the residence for $250,000. He submitted invoices to the victim, inducing her to pay him $98,600 in cash for the purchase of materials, supplies, architectural plans, rental equipment and permits needed for the project. Norville emailed pictures of materials that he intended to purchase. Norville neither delivered to the job site, nor provided proofs of purchase for the materials. By May 2011, work on the project had not started and the victim demanded either a refund or the materials and supplies Norville promised to buy. Norville attempted to repay a portion of the $98,600 by providing a check for $24,500, which was rejected for insufficient funds.
In addition to the prison term, Judge Pisano sentenced Norville to three years of supervised release and ordered him to pay restitution of $98,600.
U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia for the New York Region; and detectives of the Waterfront Commission of New York Harbor, under the direction of Commissioner Michael Murphy, for the investigation leading to today’s guilty plea.The government is represented by Senior Litigation Counsel V. Grady O’Malley in Newark.
14-403
Defense counsel: David P. Schroth Esq., TrentonEssex County, N.J., Man Sentenced to 57 Months in Prison for Using Stolen Identities to Obtain Tax Refund ChecksRead the Press Release
NEWARK, N.J. – An Irvington, New Jersey, man was sentenced today to 57 months in prison for using stolen identities to file false tax returns and obtain hundreds of thousands of dollars in tax refund checks, U.S. Attorney Paul J. Fishman announced.
Hakeem Awe, 40, of Irvington, New Jersey, previously pleaded guilty before U.S. District Judge Jose L. Linares to two counts of an indictment charging him with mail fraud and aggravated identity theft. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Awe used stolen names, Social Security numbers, and other personally identifying information to file false tax returns, using fictitious financial information to make it appear that the filer was entitled to a tax refund. Awe also listed the filer’s address as one of several post office boxes that he controlled in and around New Jersey. He received the checks at his post office boxes and then deposited them into bank accounts that he controlled.
In addition to the prison term, Judge Linares sentenced Awe to three years of supervised release and ordered him to pay restitution of $1,242,047.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen in Newark, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Andrew J. Bruck of the Organized Crime/Gang Unit and Jacques S. Pierre of the Special Prosecutions Division, both of the U.S. Attorney’s Office in Newark.
14-404
Defense counsel: Timothy R. Anderson Esq., Red Bank, N.J.Doctor Admits Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with practices in Wall Township and Howell Township, New Jersey, today admitted accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Anthony DeLuca, 52, of Point Pleasant, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
Including DeLuca, 32 people – 21 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has so far recovered more than $10.2 million to date through forfeiture.According to documents filed in this and related cases and statements made in court:
DeLuca admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid approximately $1,500 per month, which he received from another person on in his medical office engaged in the same activity.
On April 9, 2013, federal agents arrested David Nicoll, 40, of Mountain Lakes, New Jersey, Scott Nicoll, 33, of Wayne, New Jersey, a senior BLS employee and David Nicoll’s brother, and Craig Nordman, 35, of Whippany, New Jersey, a BLS employee and the CEO of Advantech Sales LLC – one of several entities used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Frank Santangelo, 44, of Boonton, New Jersey. In June 2013, David and Scott Nicoll, Nordman and four other associates of BLS pleaded guilty to charges related to their involvement. Santangelo, a doctor, pleaded guilty in August 2013 to charges relating to his role in the scheme
The bribery count to which DeLuca pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for March 20, 2015. As part of his guilty plea, DeLuca must forfeit $16,500, representing the total bribe monies received from BLS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS– Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $540 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-401Defense counsel: Patrick Egan Esq., Philadelphia, Pa.
DeLuca, Anthony Information
Carjacker Identified Through Stolen IPhone Convicted at TrialRead the Press Release
NEWARK, N.J. – A federal jury in Newark has convicted a carjacker identified after his victim used the “find my iPhone” feature on the phone also stolen during the gunpoint robbery, U.S. Attorney Paul J. Fishman announced.
Lee Caraballo, 28, of Newark, was convicted of both counts in the indictment against him: theft of a motor vehicle by force, violence and intimidation and use of a firearm in furtherance of a crime of violence. Following a three-day trial before U.S. District Esther Salas, the jury deliberated one hour before returning the guilty verdict.
According to documents filed in this case and the evidence at trial:
The government proved that, on Nov. 30, 2012, Lee Caraballo carjacked a Rutgers law student at gunpoint, in the driveway of the student’s home. After stealing the victim’s wallet and cell phone, Caraballo fled in the victim’s Toyota Corolla.
A Roselle Park police officer pulled over Caraballo later that day in a routine traffic stop, during which he was driving his own car. In that car, law enforcement found the victim’s cell phone and car keys as well as various items of clothing the victim later identified.
While Caraballo was in police custody, the carjacking victim located his phone remotely and called the police station. He later identified the defendant.
The carjacking charge carries a maximum potential penalty of 15 years in prison. The firearms charge carries a minimum consecutive term of seven years in prison and a maximum consecutive term of life in prison. Each charge also carries a maximum $250,000 fine. Sentencing is currently scheduled for Feb. 23, 2015.
U.S. Attorney Fishman credited investigators and officers of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; the New Jersey State Police, Newark Police Department and Roselle Park Police Department for the investigation that led to the conviction.
The government is represented Assistant U.S. Attorneys Barry A. Kamar and Adam N. Subervi of the U.S. Attorney’s Office Criminal Division in Newark.
14-402
Defense counsel: Gary Leo Cutler Esq., NewarkTwo Men Arrested in Interstate Burglary SchemeRead the Press Release
NEWARK, N.J. – Two men from Lancaster County, Pennsylvania, were arrested by special agents of the FBI this morning for their alleged role in a string of commercial burglaries throughout New Jersey, U.S. Attorney Paul Fishman announced.
Eliezer Medina, 36, is charged by complaint with one count of conspiracy and three counts of knowingly transporting stolen goods in interstate commerce. His brother, Jose Medina, 38, is charged by complaint with one count of conspiracy and one count of knowingly transporting stolen goods in interstate commerce. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the documents filed in this case and statements made in court:
From Nov. 3, 2013, through August 25, 2014, the Medinas allegedly burglarized at least three stores in New Jersey and transported approximately $300,000 in stolen cash across state lines. The burglaries occurred in Paramus, New Jersey, on Nov. 3, 2013, and Nov. 24, 2013, and on August 24, 2014 in Pennsauken, New Jersey. The burglaries followed the same general pattern, including advance surveillance of the stores, disabling of the stores’ alarm systems, drilling a small hole in the emergency exit door to gain access to the store, and the use of pry-bars and vertical cuts to gain access to the stores’ safes.
The counts of conspiracy to transport stolen goods each carry a maximum potential penalty of five years in prison; the counts of transportation of stolen goods each carry a maximum potential penalty of 10 years in prison; all the counts are also punishable by a fine of $250,000, or twice the gross pecuniary gain to the defendant or loss to the victim.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the N.J. State Police, under the direction of Col. Rick Fuentes, superintendent; the Wayne Police Department, under the direction of Chief James Clarke; the Paramus Police Department, under the direction of Chief Kenneth Ehrenberg; and the Lancaster Bureau of Police, under the direction of Chief Keith Sadler, for the investigation leading to today’s arrests. He also thanked special agents of the FBI, Philadelphia; the East Lampert, Pennsylvania, Police Department; the Manor Township, Pennsylvania, Police Department; and the East Hempfield Township, Pennsylvania; Police Department, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Melissa Wangenheim and Barry Kamar of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
14-399
Medina, Eliezer and Medinia, Jose Complaint
Burlington County, N.J. Man Pleads Guilty to Robbing Nine Banks in Five MonthsRead the Press Release
CAMDEN, N.J. - An Edgewater Park, New Jersey, man today admitted to a nine-bank South Jersey robbery spree from September 2013 through January 2014, U.S. Attorney Paul J. Fishman announced.
Shalir Hall, 21, pleaded guilty before Chief U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with nine counts of bank robbery.
Hall allegedly robbed the following New Jersey banks on the dates set forth below:
Beneficial Savings Bank
Willingboro
Sept. 27, 2013
Willingboro
Nov. 14, 2013
Beneficial Savings Bank
Willingboro
Nov. 26, 2013
PNC Bank
Mount Laurel
Nov. 29, 2013
3rd National Bank
Delran
Dec. 12, 2013
Roma Bank
Delran
Dec. 12, 2013
Columbia Savings Bank
Maple Shade
Dec. 17, 2013
TD Bank
Bellmawr
Jan. 8, 2014
PNC Bank
East Windsor
Jan. 8, 2014
According to documents filed in this case and statements made in court:
Hall robbed the Beneficial Savings Bank in Willingboro on Sept. 27, 2013, by threatening and intimidating bank employees, demanding money and then fleeing the bank. Hall joined forces with another individual, and the two went on to commit seven additional robberies in New Jersey – taking turns alternating between going into the banks and staying in the getaway vehicle. Hall committed the Dec.17, 2013 robbery of Columbia Savings Bank on his own. Hall was arrested in Newark on Jan.15, 2014, and has been detained on charges filed by the Burlington County Prosecutor’s Office since his arrest.
The charges to which Hall pleaded guilty each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. Hall’s plea agreement also requires him to make full restitution to each of the banks. Sentencing is scheduled for Feb. 27, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agents In Charge Aaron T. Ford and Edward J. Hanko in Newark and Philadelphia, respectively. He also credited the Camden County Prosecutor’s Office and the Burlington County Prosecutor's Office; the Burlington County Sheriff’s Department Warrant Unit; and the U.S. Marshals Service New York/New Jersey Regional Fugitive Task Force; as well as the East Windsor Township Police Department, Willingboro Police Department, Maple Shade Police Department, Delran Township Police Department, Mount Laurel Police Department, Philadelphia Police Department and the Hazelton, Pennsylvania Police Department for their work leading to today's guilty plea.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney's Office Criminal Division in Camden.
14-400
Defense counsel: Gina A. Capuano, Esquire, Cherry Hill, N.J.
Hall, Shalir Information
Former CFO of New York Brokerage Firm Sentenced to 33 Months in Prison for Stealing $1 Million from His Former EmployerRead the Press Release
TRENTON, N.J. – The former chief financial officer of the Manhattan-based brokerage firm Needham & Co. was sentenced today to 33 months in prison for stealing $1 million from his former employer through an elaborate false invoicing scheme, U.S. Attorney Paul J. Fishman announced.
Glen W. Albanese, 43, of Manalapan, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with conspiring to steal $1 million from Needham & Co. Judge Sheridan imposed the sentence today in Trenton federal court.
Two of Albanese’s conspirators, Vincent Sarubbi, 44, of Manalapan, and Eric Siegel, 39, of New York, have also pleaded guilty in connection with their roles in the scheme. Siegel was sentenced on Sept. 23, 2014 to serve eight months of home confinement and pay restitution of $395,212. Sarubbi was sentenced today to serve 14 months of home confinement and pay restitution of $436,195.
According to documents filed in this case and statements made in court:
From 2000 through 2010, while he was employed as the CFO of Needham & Co., a broker-dealer with headquarters in New York, Albanese stole $1 million from the company through a false invoicing scheme. Albanese induced several vendors of Needham – including Data Source Partners, an information technology services company owned by Sarubbi, and S&R Graphic Company, a printing company where Siegel worked – to submit fraudulent invoices to Needham. Some of the fraudulent invoices charged for services that were never provided, while others inflated the amount due for services that were provided. Albanese approved the fraudulent invoices on behalf of Needham and then directed the vendors to send him the bulk of the illicit proceeds.
The vendors funneled the illicit proceeds to Albanese in a variety of ways. Albanese admitted that he directed Siegel to meet him at predetermined locations in Manhattan with envelopes containing thousands of dollars in cash. He directed both Siegel and Sarubbi to pay his personal expenses directly. Siegel and Sarubbi used the proceeds from the scheme to pay for landscaping and interior decorating at Albanese’s residence, a designer-breed dog and “canine fence,” equestrian equipment, thousands of dollars’ worth of wine and more than $40,000 in flights, hotels and travel expenses.
In addition to the prison term, Judge Sheridan sentenced Albanese to serve three years of supervised release and pay restitution of $1 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation.
The government is represented by Zach Intrater, Deputy Chief of the U.S. Attorney’s Office General Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: Joseph R. Benfante Esq., New York
14-398Essex County Corrections Officer Charged with Taking Bribes to Smuggle Contraband into Federal Pretrial Detention FacilityRead the Press Release
NEWARK, N.J. – An Essex County corrections officer was arrested today by special agents of the FBI for taking bribes to smuggle contraband, including cell phones and cigarettes, into the Essex County Jail, a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
John Grosso, 41, of Belleville, New Jersey, was arrested this morning at the Essex County Jail. He is charged by complaint with one count of conspiring to commit extortion under color of official right, in violation of the Hobbs Act. He appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $100,000 bail.
According to the complaint:
On multiple occasions between November 2013 and December 2013, Grosso, a corrections officer at the Essex County Jail, accepted cash bribes of approximately $1,000 in return for smuggling cell phones and cigarettes to an inmate. Grosso usually met with the inmate’s associate in the parking lot of the Best Buy store in Secaucus, New Jersey, to accept the contraband packages and cash bribes, before delivering the packages to the inmate.
Conspiring to commit extortion under color of official right, in violation of the Hobbs Act, carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and the Internal Affairs Division of Essex County Correctional Facility, under the leadership of Warden Roy Hendricks, with the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Rob Frazer of the Criminal Division, Organized Crime/Gangs Unit, in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty
14-397
Defense counsel: Elizabeth H. Smith Esq., Mendham, New Jersey.Grosso, John Complaint
Jersey City, N.J., Fire Inspector Admits Accepting Bribes for Official Assistance with Prostitution BusinessesRead the Press Release
NEWARK, N.J. – A Jersey City fire inspector admitted today to accepting bribes to provide prostitution businesses with certificates of occupancy and advance notice of inspections or law enforcement activity, U.S. Attorney Paul J. Fishman announced.
Phillip Procaccino, 56, of Belleville, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of attempting to obstruct, delay and affect interstate commerce by extortion under color of official right.
According to documents filed in this case and statements made in court:
Procaccino admitted that on Oct. 23, 2013, he accepted $2,500 in exchange for his official assistance in obtaining a certificate of occupancy for a massage parlor, which also operated as a prostitution business. Procaccino also offered to provide notice of impending inspections from Jersey City authorities so the owner and employees could preemptively hide evidence of prostitution.
In addition, Procaccino agreed to take 10 percent of a separate prostitution business’ future profits in exchange for a certificate of occupancy and one day’s advance notice of any police activity targeting the business. Both prostitution businesses were located in Jersey City.
The extortion count to which Procaccino pleaded guilty carries a maximum potential penalty of up to 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss caused by the offense. Sentencing is scheduled for Feb 23, 2015.
U.S. Attorney Fishman praised special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford; and criminal investigators from the U.S. Attorney’s Office in Newark, for their work leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Vikas Khanna and Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
14-396
Defense counsel: Paul B. Brickfield Esq., River Edge, New Jersey
Procaccino, Phillip Information
New Jersey Builder Indicted on Bank Fraud and Bribery Charges as Part of $1 Million Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A federal grand jury indicted a Neshanic Station, New Jersey, man today for his role in a $1 million mortgage fraud scheme, including an alleged bribe of a bank agent to approve a loan on a property that exploded hours before the closing, U.S. Attorney Paul J. Fishman announced.
Antonio Pimenta, 46, is charged with one count of bank fraud conspiracy, three counts of bank fraud, and one count of bribing a financial institution’s agent. He was previously charged by complaint in September 2012 for bank fraud and money laundering. Pimenta will be arraigned before U.S. District Judge Esther Salas in Newark federal court on a date to be determined.
According to the indictment and other documents filed in this and related cases:
From 2007 to 2008, Pimenta and other conspirators engaged in two related mortgage fraud conspiracies through a company called Premier Mortgage Services. The conspirators targeted properties in low-income areas of New Jersey. After recruiting “straw buyers,” they used fraudulent documents to make it appear as though the straw buyers possessed far more assets and earned far more income than they actually did.
The conspirators then submitted these fraudulent documents as part of mortgage loan applications to financial institutions. Relying on these fraudulent documents, financial institutions provided mortgage loans for the subject properties. The conspirators then split the proceeds from the mortgages among themselves at closing time. The closings went forward through the use of fraudulent settlement statements (HUD-1s), which hid the true sources and destinations of the mortgage funds provided by financial institutions. The straw buyers had no means of paying the mortgages, and many of the properties entered into foreclosure proceedings.
Attorneys, paralegals, loan officers, and others performed different roles in the scheme. Pimenta owned and managed Kelmar Construction Co. Kelmar built properties that were then sold to straw buyers using fraudulent mortgage loans brokered by Klary Arcentales and closed by Linda Cohen, two other conspirators in the scheme.
On the morning of Oct. 19, 2007, one such property, located in Irvington, New Jersey, exploded the morning before the scheduled closing. Even though the house had been obliterated, Pimenta and others were still able to close on the fraudulent mortgage loan later that day by paying a $50,000 cash bribe to Cohen, the bank’s closing agent.
In total, fraudulent loans based on properties built by Pimenta’s company caused losses of more than $1 million.
Three previously charged conspirators have already pleaded guilty in connection with the scheme. Lester Soto, 58, of Freehold, New Jersey; Klary Arcentales, 46, of Lyndhurst, New Jersey; and Linda Cohen, 56, of Orange, New Jersey have each pleaded guilty before Judge Salas.
Each count in the indictment is punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation. Fishman also thanked the Social Security Administration-Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, for its participation in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Zach Intrater of the office’s Criminal Division.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
14-395
Defense counsel: Alain Leibman Esq., Princeton, New Jersey
Pimenta, Antonio Indictment
Former Union County, N.J. Port Executive Sentenced to One Year in Prison for Commercial BriberyRead the Press Release
TRENTON, N.J. - A maintenance director at Maher Terminals in Union County, New Jersey, was sentenced today to 12 months in prison for soliciting and accepting cash bribes of more than $100,000 in return for demolition and construction contracts at a container ship facility, U.S. Attorney Paul J. Fishman announced.
Donald Olesky, 57, of Sayreville, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with two counts of using, and causing to be used, the mail in aid of an unlawful activity, specifically commercial bribery under New Jersey law. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements in court:
Olesky was director of facility maintenance at Maher Terminals at Port Elizabeth, New Jersey. As part of his duties, he obtained bids and awarded contracts for construction projects. From 2000 through 2011, Olesky manipulated the bidding process to ensure demolition and construction projects were awarded to contractors that paid him cash bribes. During his plea proceeding, Olesky admitted to soliciting and accepting $122,000 in bribes.
In addition to the prison term, Judge Wolfson sentenced Olesky to two years of supervised release, ordered him to forfeit $288,000 and fined him $10,000.
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Harvey Bartle, the Attorney-in-Charge of the U.S. Attorney’s Trenton Office, and Vikas Khanna, of the U.S. Attorney’s Office’s Special Prosecutions Division.
14-394
Defense counsel: Robert Stahl Esq., Westfield, N.J.Vendor Admits Paying Bribes to Agent of New Jersey TransitRead the Press Release
NEWARK, N.J. – A New Jersey Transit vendor today admitted paying bribes to a New Jersey Transit employee to obtain landscaping contracts, U.S. Attorney Paul J. Fishman announced.
Raymond Rapuano, 47, of New Providence, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of bribery.
According to documents in this case and statements made in court:
Prior to March 2012, Rapuano had provided an individual who worked for New Jersey Transit (NJ Transit) $3,500 in bribe payments for the purpose of obtaining work for a landscape company, RA Landscape & Design (RA), for which Rapuano worked. Around April 2012, Rapuano agreed to give NJ Transit employees 13 percent of the value of any work awarded by NJ Transit to RA. Rapuano paid an NJ Transit employee a total of $2,000 for $22,000 worth of work awarded to RA by NJ Transit.
The bribery charge to which Rapuano pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for March 18, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and the N.J. State Police, under the direction of Col. Joseph R. Fuentes, Superintendent, with the investigation leading to today’s guilty plea. He also thanked the N.J. Attorney General’s Office, under the direction of Acting Attorney General John Hoffman, and Eli Honig, Director of the N.J. Division of Criminal Justice, for their work in the investigation.
The government is represented by Assistant U.S. Attorney Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark, and Special Assistant U.S. Attorney Michael A. Monahan, the Chief of the Financial and Computer Crimes Bureau, Division of Criminal Justice, in the N.J. Attorney’s General’s Office.
13-391
Defense counsel:
Mary Frances Palisano Esq., NewarkRapuano, Raymond Information
Camden County, N.J., Man Sentenced to 70 Months in Prison for $1.2 Million Phony Pizza Shop Investment Scam, Other OffensesRead the Press Release
CAMDEN, N.J. - A Laurel Springs, New Jersey, man was sentenced today to 70 months in prison for defrauding an investor out of approximately $1.2 million he claimed would be invested in a pizza shop, laundering that money, failing to report it to the IRS and threatening the victim to keep quiet about his crimes, U.S. Attorney Paul J. Fishman announced.
Giovanni Arena, 58, was previously convicted by a federal jury of 15 counts of mail fraud, eight counts of money laundering, three counts of failure to file income tax returns and one count of tampering with a witness. Arena was convicted in November of 2013 following a seven-day trial before Chief U.S. District Judge Jerome B. Simandle, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
Arena’s scheme defrauded a single investor of approximately $1.2 million from 2004 through 2008. Arena, who had operated pizza restaurants in the past, enticed the victim to send checks and cash through the U.S. mail to invest in the purchase of a pizza shop in southern New Jersey. Rather than using the money to buy a restaurant, Arena purchased luxury automobiles – including a Maserati Coupe and Chevrolet Camaro – gambled at Atlantic City casinos and paid his living expenses.The jury reviewed casino records that showed the defendant spent many hours at the gaming tables, losing more than $700,000 in four years of Atlantic City gambling. During the trial, the jury watched surveillance video of the defendant buying in at a black jack table using $81,000 in cash he brought to the table in a shopping bag.
In addition, Arena willfully did not file his individual tax returns for tax years 2006, 2007
and 2008, failing to report hundreds of thousands of dollars in income to the IRS. After federal agents executed search warrants on Arena’s property during the course of the investigation, Arena instructed the victim investor to lie to federal investigators and made threatening statements, saying, “you better not put me in trouble because if you put me in trouble, I’ll put you in trouble.”In addition to the prison term, Judge Simandle sentenced Arena to serve three years of supervised release and ordered him to pay $1,219,200 in restitution to the victim. The judge also ordered Arena to forfeit assets, including the Maserati and the Camaro.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen in Newark, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge David W. Bosch in Philadelphia, with the investigation.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
14-393Defense counsel: Brian S. O’Malley Esq., Haddon Heights, New Jersey
U.S. Attorney's Office Reminds New Jersey Voters to Use Election Day Hotline for Complaints of Voting Irregularities or AbusesRead the Press Release
NEWARK, N.J. – Tuesday, Nov. 4, 2014, is New Jersey’s general election, and U.S. Attorney Paul J. Fishman is reminding voters to use the Election Day Hotline if they suspect voter fraud. The U.S. Attorney’s Office will receive and respond to reports of election irregularities, voter intimidation or any other activities that would interfere with a citizen’s right to vote. The Election Day Hotline – (888) 636-6596 – is active now through Nov. 5, 2014, and will be staffed live on Election Day in English and in Spanish.
The Department of Justice and federal law enforcement partners will work with county boards of election and the New Jersey Attorney General’s Office to respond to complaints and direct them to the appropriate authority.
The Justice Department seeks to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted, without discrimination, intimidation or fraud.
Established in 2010, this yearly initiative is intended to foster public confidence in the integrity of the election process by providing local points of contact within the Justice Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
The Justice Department and federal investigative agencies, led by the FBI, work cooperatively with the state Attorney General’s Office, under the direction of Acting Attorney General John Jay Hoffman, to enforce voters’ rights at the polls.
The Department of Justice Civil Rights Division staff in Washington also will be available by phone to receive complaints related to voting rights (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-305-0082). In addition, individuals may also report complaints, problems, or concerns related to voting by fax to 202-307-3961, by email to [email protected], and, by complaint forms that may be submitted through a link on the Department’s website, at http://www.justice.gov/crt/complaint/votintake/index.php.14-390
La Oficina De La Fiscalia Federal Le Recuerda A Los Votantes De Nueva Jersey Que Pueden Usar La Linea Telefonica De Ayuda Electoral El Dia De Las Elecciones Para Quejarse De Irregularidades O Abusos ElectoralesRead the Press Release
NEWARK, N.J. - Las elecciones de mitad de mandato de Nueva Jersey tomaràn lugar el martes, 4 de noviembre de 2014, y el Fiscal Federal Paul J. Fishman les recuerda a los votantes que si sospechan fraude electoral pueden llamar una línea telefónica de ayuda establecida para temas electorales. La Oficina de la Fiscalía Federal recibirà y responderà a denuncias de irregularidades electorales, intimidación a los votantes y otras actividades que puedan interferir con los derechos electorales de los ciudadanos. La línea telefónica de ayuda el día de las elecciones - (888) 636-6596 – estarà activa desde ahora hasta el 5 de noviembre de 2014, y serà atendida el día de las elecciones en inglés y en español.
El Departamento de Justicia y otras agencias federales del orden público trabajaràn con las juntas electorales de los condados y la Oficina del Fiscal General de Nueva Jersey para recibir quejas y dirigir las quejas a las autoridades correspondientes.
El Departamento de Justicia tiene por objeto garantizar que todos los votantes calificados tengan la oportunidad de emitir su voto y que sus votos cuenten, sin discriminación, intimidación o fraude.
Fundada en el año 2002, esta iniciativa anual tiene como meta fomentar la confianza pública en la integridad del proceso electoral al proporcionar puntos de contacto locales dentro del Departamento de Justicia para que el público pueda reportar posibles violaciones de los derechos electorales y fraude electoral, mientras que las urnas estén abiertas el día de las elecciones.
Las agencias de investigación federales y el Departamento de Justicia, encabezadas por el FBI, trabajan en cooperación con la Oficina del Fiscal General del Estado, bajo la dirección del Fiscal General Interino John Jay Hoffman, para hacer cumplir los derechos de los votantes en las urnas.
El personal de la División de Derechos Civiles del Departamento de Justicia en Washington también estarà disponible por teléfono para recibir denuncias relacionadas con los derechos electorales (1-800-253-3931 peaje gratis o 202-307-2767) o por TTY (202-305-0082). Ademàs, las personas también pueden reportar quejas, problemas o inquietudes relacionadas con la votación por fax al 202-307-3961 , por correo electrónico a [email protected], y usando formularios de reclamaciones que puedan presentarse a través de un enlace en la pàgina web del Departamento, en http://www.justice.gov/crt/complaint/votintake/index.php.
14-391Atlantic County, N.J., Man Pleads Guilty to Conspiring to Defraud the Internal Revenue Service of Nearly $120,000 in TaxesRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted conspiring to defraud the IRS of $119,880 in income taxes over approximately three years, U.S. Attorney Paul J. Fishman announced today.
William Boland, 57, of Ventnor City, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of conspiracy to defraud the United States.
According to documents filed in the case and statements made in court:Boland and two conspirators were partners in Royal Rolling Chairs Inc., a business based in Atlantic City, New Jersey, that provided rolling chair transportation services to patrons on the Atlantic City boardwalk. Boland and his two partners were responsible for accurately reporting income received by the business to the IRS.
Boland admitted that he and his two partners hid gross cash receipts from the operation of the business and did not report this revenue to the IRS. He admitted the business maintained a second set of books, which tracked the unreported cash revenue taken out of the business. The total tax loss from the conspiracy was $119,800.
The count of conspiracy to defraud the United States carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is currently scheduled for May 4, 2015.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney=s Office Special Prosecutions Division in Camden and Trial Attorney Tino Lisella of the Tax Division of the U.S. Department of Justice.
14-390
Defense counsel: John J. Zarych Esq., Northfield, N.J.
Boland, William Information
Two Charged in $5.8 Million Reloadable Debit Card Extortion ScamRead the Press Release
NEWARK, N.J. – Two Philadelphia men were arrested this morning for allegedly conspiring to extort victims to load prepaid debit cards with funds that were stolen as part of the scheme, U.S. Attorney Paul J. Fishman announced.
Special agents of the FBI and U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) arrested Alpeshkumar Patel, 30, and Vijaykumar Patel, 39, of Philadelphia at Vijaykumar Patel’s home on a complaint charging them with conspiracy to commit wire fraud. The pair, who are not related, are expected to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the complaint unsealed today:
From September 2013 through March 2014, Alpeshkumar Patel and Vijaykumar Patel were part of a conspiracy to steal money using reloadable debit cards. First, the conspirators would purchase reloadable Green Dot Cards, and register them in names other than their own. The conspirators – some of whom were located in India – contacted victims by phone and used threats or deceit to induce them to put money on MoneyPak cards, which are used along with assigned PIN codes to add funds to Green Dot Cards. The conspirators then used the reloadable cards to purchase money orders that were deposited into bank accounts. All of the steps were taken quickly so law enforcement and victims could not identify the conspirators or prevent or reverse the fraudulent transfers.
As one example, a retail store located in New Jersey received a telephone call from an unknown caller on Sept. 10, 2013. The caller said there was a bomb in the store and the store manager had five minutes to comply with the caller’s demands or the bomb would detonate. The caller then demanded the manager load 10 $500 MoneyPak cards and provide the caller with the associated PIN codes. The manager had provided the code for one card before law enforcement arrived at the store, instructed the manager to hang up the phone, and evacuated the building.
The $500 associated with that code was transferred to an existing prepaid reloadable Green Dot Card. Surveillance video showed Alpeshkumar Patel in the Philadelphia CVS where the Green Dot Card was bought. That card was then used by Vijaykumar Patel, who was caught on video purchasing two money orders in a Philadelphia Wal Mart. The money orders, in turn, were used to deposit funds into a bank account.
Phone numbers and IP addresses associated with the Sept. 10, 2013, call and other calls tied to the conspiracy were tied to approximately 2,500 Green Dot Cards that were funded in excess of $5.8 million.
The charge of conspiracy to wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, or twice the gross profits to the defendants or twice the gross loss suffered to the victims of the offense.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the Joint Terrorism Task Force, under the direction of FBI Special Agent in Charge Aaron T. Ford in Newark, under the direction of FBI Special Agent in Charge Edward J. Hanko in Philadelphia, and special agents of HSI, under the direction of Special Agent in Charge Andrew McLees in Newark, with the ongoing investigation. Special agents of HSI, under the direction of Special Agent in Charge John Kelleghan in Philadelphia, assisted with the arrest.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are considered innocent unless and until proven guilty.14-389
Defense counsel:
Alpeshkumar Patel: Assistant Federal Public Defender K. Anthony Thomas Esq., Newark
Vijaykumar Patel: James A Plaisted Esq., Roseland, New JerseyPatel, Alpeshkumar and Vijaykumar Complaint
Massachusetts Man Sentenced to 21 Months in Prison for Role in Multimillion-Dollar International Cybercrime SchemeRead the Press Release
Defendant Managed a “Cash-Out” Crew for Organization that Allegedly Capitalized on Information Hacked From Customers of More Than a Dozen Global Financial Institutions
TRENTON, N.J. – A member of an international cybercrime, identity theft and credit card fraud conspiracy was sentenced today to 21 months in prison for using information hacked from customer accounts held at more than a dozen banks, brokerage firms, payroll processing companies and government agencies in an attempt to steal at least $15 million from American customers, U.S. Attorney Paul J. Fishman announced.
Robert Dubuc, 41, of Malden, Massachusetts, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of wire fraud conspiracy and one count of conspiracy to commit access device fraud and identity theft. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
Both Dubuc and Oleg Pidtergerya, 50, of Brooklyn, New York, were asked by leaders of the conspiracy to participate in a scheme to “cash out” bank accounts and pre-paid debit cards opened in the names of others. Oleksiy Sharapka, 34, of Kiev, Ukraine, allegedly directed the conspiracy with the help of Leonid Yanovitsky, 39, also of Kiev. Pidtergerya managed a cash-out crew in New York for Sharapka and Yanovitsky, and defendant Dubuc controlled a cash-out crew in Massachusetts for the organization.
Conspiring hackers first gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including: Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.
After obtaining unauthorized access to the bank accounts, Sharapka and Yanovitsky diverted money to other bank accounts and pre-paid debit cards they controlled. They then implemented a sophisticated “cash-out” operation, employing crews of individuals known as “cashers” to withdraw the stolen funds from the fraudulent accounts, among other ways, by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere. Both Sharapka and Yanovitsky are under indictment in the United States and remain at large.
During their guilty plea proceedings, Pidtergerya and Dubuc admitted they were aware fraudulent accounts and cards were created without the consent of the individuals in whose names they were opened. Both men admitted coordinating ATM and bank withdrawals of the stolen funds. In addition they admitted to sending proceeds of the fraud to Sharapka and Yanovitsky in Ukraine.
The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.
In addition to the prison term, Judge Sheridan sentenced Dubuc to serve three years of supervised release and pay restitution in the amount of $338,685. Sentencing for Pidtergerya is scheduled for Dec. 22, 2014.
U.S. Attorney Fishman credited the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; U.S Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe, Cyber Field Office; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the ongoing investigation.
The government is represented by Economic Crimes Unit Chief Gurbir S. Grewal of the U.S. Attorney’s Office in Newark.
The charges contained in the indictment against Sharapka and Yanovitsky are merely allegations and the defendants are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
14-387
Defense counsel:
Dubuc: Angelo Servidio Esq., Nutley, N.J.Louisiana Man Sentenced to Eight Months in Prison for Abusive Sexual Contact of Sleeping Woman on Flight to New JerseyRead the Press Release
Also Must Register as Sex Offender
NEWARK, N.J. - A Louisiana man was sentenced today to eight months in prison for sexually touching a sleeping woman who did not know him aboard a flight from Houston to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Devender Singh, 62, an Indian national who lives in Baton Rouge, Louisiana, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with abusive sexual contact. Judge Chesler imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Singh was seated next to a woman who occupied a window seat on a United Airlines flight from Houston to Newark. While the plane was in the air, the woman fell asleep. She awoke to find Singh kissing her face with his hand inside her shirt.
After pushing Singh off of her and telling him to get away, the woman went to the back of the plane and told a flight crew member what had happened, asking that the police be present when the plane landed.
The federal government has exclusive jurisdiction over all sexual abuse cases that occur on aircraft in flight in the United States.
In addition to the prison term, Judge Chesler sentenced Singh to serve two years of supervised release and required him to register as a sex offender.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the Port Authority Police Department, under the direction of Superintendent Michael A. Fedorko, with the investigation.
The government is represented by J. Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark.14-388
Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Additional Charges for Franklinville, N.J., Man Who Allegedly Used Fraudulent Invoices to Steal from Schools and CollegesRead the Press Release
Charged Last Week in Similar Scheme
CAMDEN, N.J. – A Franklinville, New Jersey, man was arrested today by federal agents of the U.S. Postal Inspection Service – for the second time this month – for allegedly mailing fraudulent invoices for non-existent advertisements to colleges and trade schools throughout the United States, U.S. Attorney Paul J. Fishman announced.
Robert S. Armstrong, 44, was charged by superseding complaint with two counts of mail fraud. He appeared this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court for an initial appearance on the superseding complaint. Armstrong had previously been arrested on Oct. 16, 2014, for allegedly committing a similar mail fraud scheme.
According to documents filed in this case:
Postal inspectors learned Armstrong – while out on bail following his Oct. 16, 2014, court appearance on the initial charge – was continuing to ask for and pick up mail in the name of one of his companies, Scholastic School Supply. On Oct. 21, 2014, he picked up mail from a Post Office box in Malaga, New Jersey, which he had opened in the names of Scholastic and another of his companies, The Trend Publishing. Armstrong had retrieved mail, opened it and discarded what appeared to be two check stubs bearing the names of two colleges and written in the amount of $495 payable to Trend. A postal employee sent the discarded check stubs to postal inspectors.
A postal inspector contacted the two colleges listed on the check stubs and received a copy of the invoice from Trend addressed to Victim College 1. It appeared very similar in format to the Scholastic invoices except that it sought payment for what is believed to be advertising for the college: $495 for a 5-inch by 8-inch glossy ad to be placed in the “College Edition (Fall 2014 Edition).” The invoice included a telephone number and a Federal Employer Identification Number (FEIN) for Trend. As with the Scholastic scheme, both numbers were phony.
The dean of finance from the second college listed on the check stubs said his office had mailed a check for $495 to Trend and that no one in the purchasing department had any knowledge of ordering any advertisement from the company.
On Oct. 22, 2014, the postal inspector received bank records from Wells Fargo Bank for accounts opened by Armstrong, including an account in the name of Trend. From July 2014 through August 2014, Armstrong deposited 59 checks for $495 each from various colleges and trade schools throughout the United States – including a law school and a medical school – for a total of $29,205. Bank records revealed that he deposited additional $495 checks from various businesses, several of which appear to be related to automobile sales and service.
Employees at three additional colleges confirmed to postal inspectors that they had received invoices from Trend seeking payment for $495 for similar advertising and they mailed payments to Trend. They also said they did not know what the “College Edition (Fall 2014 Edition)” was.
On Oct. 16, Armstrong was arrested and charged with mail fraud for allegedly mailing more than 73,000 fraudulent invoices for non-existent workbooks to schools throughout the United States.
Each count of mail fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Armstrong or twice the gross losses to the victims of his offense.
U.S. Attorney Fishman credited law enforcement officers of the U.S. Postal Inspection Service, under the direction of Inspector in Charge David Bosch in Philadelphia; the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Dalton; the Gloucester County Office of Consumer Protection, under the direction of Harold Spence, Director of Consumer Affairs; the Washington Township Police Department, under the direction of Raphael Muniz, Chief of Police; and the Franklin Township Police Department, under the direction of Mike Rock, Chief of Police, with the continuing investigation leading to today’s arrest.
Individuals with any information about possible fraudulent conduct may call postal inspectors at 877-US MAIL 5 (877-876-2455).
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
The charges and accusations in the complaint are merely accusations, and the defendant is presumed innocent unless and until convicted.
14-386
Defense counsel: Rocco C. Cipparone Jr., Esq. Haddon Heights, N.J.
Armstrong, Robert, Superseding Complaint
Dominican National Sentenced to 39 Months in Prison for Role in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Dominican national who was extradited from Canada earlier this year was sentenced today to 39 months in prison for his role in one of the nation’s largest and longest-running stolen identity refund fraud schemes ever identified, U.S. Attorney Paul J. Fishman announced.
Alejandro Javier, 51, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to steal government funds and one count of theft of government funds. Judge Cecchi imposed the sentence today in Newark federal court.
Javier evaded capture until July 2, 2013, when Canadian law enforcement authorities arrested him as he tried to illegally enter Canada. He had been incarcerated there until he was extradited to New Jersey on Jan. 10, 2014.
According to documents filed in the case and statements made in court:Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
- SIRF perpetrators complete Form 1040 Individual Income Tax Returns using the fraudulently obtained information and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
- Perpetrators direct the U.S. Treasury Department to issue the refunds through checks generated by the fraudulent 1040 forms to locations they control or can access.
- With checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell refund checks at a discount to face value. In turn, the buyers then cash the checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses or by depositing checks into bank accounts. When cashing or depositing checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
Federal law enforcement agencies created a multi-agency task force in New Jersey composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service and with assistance from the Drug Enforcement Administration (New Jersey Task Force).
An investigation led by the New Jersey Task Force, with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, revealed that from at least 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long-running SIRF scheme that caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with more than $12 million in losses to the U.S. Treasury.
Javier and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fraudulent 1040 forms, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically. By tracing the specific IP addresses that submitted the electronically-filed 1040s, law enforcement officers learned that just a handful of IP addresses created many of the fraudulent 1040 forms that lead to the issuance of tax refund checks.
Defense Counsel: David Oakley Esq., Princeton, New Jersey
Conspirators purchased mail routes, that is, lists of addresses covered by a single mail carrier. Conspirators applied for refunds, inserted addresses along the mail route as the purported home addresses of the “taxpayers,” and obtained the refund checks sent to the addresses. They also applied for checks using addresses otherwise controlled by, or accessible by, certain conspirators and collected the checks after they were delivered to those addresses. During the course of the scheme, hundreds of refund checks were mailed to just a few different addresses in a few different towns, including Nutley, Somerset and Newark, New Jersey, and Shirley, New York.
After receiving the refund checks, Javier and others cashed the checks at check cashing institutions and divided the proceeds among the conspirators.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in refund checks – that had been applied for fraudulently – before they were delivered to members of the conspiracy.
In addition to the prison term, Judge Cecchi sentenced Javier to serve three years of supervised release and ordered him to pay restitution and forfeiture of $1,379,464.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; the U.S. Secret Service, under the direction of Special Agent In Charge James Mottola; and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl Kotowski, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman, Zach Intrater, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark, and Mala Harker of the Special Prosecutions Division.
14-385- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
Bulgarian National Sentenced to 30 Months in Prison for Role in Largest Identity Theft Ring of Its TimeRead the Press Release
NEWARK, N.J. - A Bulgarian national was sentenced today to 30 months in prison for his participation in the Shadowcrew forum, an online marketplace for hacking and identity theft that was the largest of its kind when dismantled by the Department of Justice and the U.S. Secret Service in 2004, U.S. Attorney Paul J. Fishman announced.
Aleksi Kolarov, 32, previously pleaded guilty before U.S. District Judge William J. Martini to Count One of an indictment charging him with conspiracy to commit both identity theft and access device fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Kolarov evaded capture until June 14, 2011, when Paraguayan law enforcement authorities arrested him at a hotel in Asunción, Paraguay. He was found in possession of hundreds of thousands of dollars in various currencies, counterfeit payment cards and electronic implements to re-encode cards. Prior to his extradition, he had been incarcerated by Paraguayan authorities relating to that conduct. Kolarov was extradited and arrived in the United States on June 28, 2013, escorted by U.S. Marshals.
Shadowcrew.com was an illegal online marketplace that trafficked in at least 1.5 million stolen credit and bank card numbers and caused more than $4 million in losses to the institutions issuing the cards.
Kolarov, along with the other 18 individuals charged in the indictment, participated in the international conspiracy to operate the Shadowcrew site. As part of the organization, Kolarov served as a vendor, using the site to sell illicit merchandise and services to other members. At one time, Shadowcrew.com had approximately 4,000 members dedicated to facilitating malicious computer hacking and the dissemination of stolen credit card, debit card and bank account numbers and counterfeit identification documents, such as drivers’ licenses, passports and Social Security cards. The conspiracy to commit this activity, often referred to as “carding,” facilitated the use of account numbers and counterfeit identity documents to steal identities and defraud banks and retailers. Of the 19 international participants charged in the indictment, three remain at large.
U.S. Attorney Fishman credited the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, with the investigation leading to the charges. He also thanked the Computer Crime and Intellectual Property Section and Office of International Affairs in the Department of Justice’s Criminal Division and thanked the U.S. Marshals Service for facilitating the extradition. U.S. Attorney Fishman also praised the Paraguayan authorities for their vital role.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit in Newark.
14-384Defense counsel: Michael Koribanics Esq., Clifton, N.J.
Former Longshoreman Sentenced to Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - A former longshoreman was sentenced today to a year and a day in prison for conspiring to extort others in Local 1235 of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Julio Porrao, 72, of Palm Coast, Florida, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to conspiring to extort Christmastime tributes from the union members – count three of the second superseding indictment against him. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
During his guilty plea proceeding, Porrao admitted that he conspired with others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Porrao had already retired from his employment on the New Jersey piers at the time of his arrest.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra. Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235, and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
Two other Genovese family associates charged in the case are former union officials: Albert Cernadas, 79, of Union, New Jersey, the president of ILA Local 1235 from approximately 1981 to 2006 and former ILA executive vice president; and Nunzio LaGrasso, 63, of Florham Park, New Jersey, the former vice president of ILA Local 1478 and former ILA representative.
In addition to the prison term, Judge Cecchi sentenced Porrao to serve two years of supervised release and pay a fine of $5,000. LaGrasso and Nicolosi still await sentencing.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.14-383
Defense counsel: Julio Porrao: Erik Hassing Esq., Flanders, New Jersey
Newark Man Sentenced to 50 Months in Prison for Multiple Armed Robberies of New Jersey EstablishmentsRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 50 months in prison for committing two armed robberies of commercial establishments in Essex County, New Jersey, U.S. Attorney Paul J. Fishman announced.
Antwon Yarbrough, 28, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of conspiring to commit Hobbs Act robberies. Judge Walls also imposed the sentence today in Newark federal court.
According documents filed in this case and statements made in court:
Between April 2013 and May 2013, Yarbrough conspired with others to rob a Krauszers store in West Orange on April 24, 2013, and a Subway restaurant in Verona on May 20, 2013. Yarbrough and his conspirators robbed these establishments at gunpoint. In each robbery, they used plastic zip ties to restrain their victims. The conspirators then stole cash, cigarettes and other items.
In the Krauszers robbery on April 24, 2013, Yarbrough and another robber entered the store wearing dark hoodies, face masks, and gloves. Yarbrough secured the door from the inside using a zip tie, while the other robber pointed a firearm at an employee and forced the employee to the floor. The robber restrained the employee with zip ties and struck the employee in the head with the gun. Yarbrough restrained the hands and feet of two other victims, one of whom he struck in the head with his forearm. Yarbrough and another robber then emptied the cash register of several hundred dollars, stole several cartons of cigarettes, and fled.
In the Subway robbery on May 20, 2013, Yarbrough and two other robbers again entered the restaurant wearing dark hoodies, face masks, and gloves. Both robbers accompanying Yarbrough brandished firearms. After entering the restaurant, the robbers restrained an employee by tying the employee’s hands and feet with zip ties. The robbers then emptied the cash register of several hundred dollars and fled.
Two others involved with these and other robberies – Bobby Dawson, 31, and Jamar Darby, 27, both of Newark – were each sentenced to serve 225 months in prison in July and October 2014, respectively.
In addition to the prison term, Judge Walls sentenced Yarbrough to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange police departments, along with the New Jersey State Police and the Essex County Prosecutor’s Office, for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
14-381
Defense counsel: Stacy Biancamano Esq., West Orange
Former CEO of Pharmacy Dispensing Service Indicted on Federal Tax ChargesRead the Press Release
NEWARK, N.J. - The former chief executive officer of a New Jersey company that provided pharmacy dispensing services was indicted today by a federal grand jury for allegedly filing false tax returns, U.S. Attorney Paul J. Fishman announced.
Gary J. Sekulski, 67, of Flanders, New Jersey, was charged with the filing of false federal income tax returns for tax years 2007, 2008 and 2009. Sekulski is expected to surrender for an arraignment before a federal judge on a date to be determined.
According to the indictment:
Sekulski was the CEO and President of Healthcare Corporation of America (HCA), a New Jersey company that controlled a pharmacy dispensing service to public and non-profit entities and served as a holding corporation for a number of wholly owned subsidiaries.
For tax years 2007, 2008, and 2009, Sekulski understated the amount of income that he received from HCA and other sources on his federal income tax returns. Sekulski then signed the returns under penalty of perjury and caused them to be filed with the IRS.
During that time, Sekulski sold shares of company stock, received settlement payments, and paid company money into his personal bank account without reporting any of the resulting income. In all, Sekulski failed to report approximately $353,000 in taxable income.
Each of the three tax counts carries a maximum potential penalty of three years in prison and a $250,000 fine together with the costs of prosecution.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen for the investigation, and thanked special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for their valuable assistance.The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., of the U.S. Attorney’s Office in Newark.
14-382
Defense counsel: William C. Cagney Esq., New Brunswick, New Jersey
Sekulski, Gary Indictment
Two Newark, N.J. Men Plead Guilty to Smuggling Marijuana and Cell Phones into Federal Detention FacilityRead the Press Release
TRENTON, N.J. – Two Newark men today admitted their involvement in a scheme to smuggle contraband, including marijuana and cell phones, into the Essex County Jail, a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
Darsell Davis, 29, pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of conspiring with others to commit extortion under color of official right. Dwayne Harper, 30, pleaded guilty before Judge Cooper to an information charging him with one count of conspiring to smuggle contraband into the Essex County Jail. Davis has been released on bail and Harper remains in custody.
According to the documents filed in this case and other cases and statements made in court:
On multiple occasions between September 2013 and May 2014, Stephon Solomon, 26, a corrections officer at the Essex County Jail, smuggled contraband – including cell phones, tobacco, and marijuana – to Quasim Nichols, 29, a federal pretrial detainee at the Essex County Jail, in exchange for cash bribes. Davis and Harper aided the smuggling scheme by collecting the contraband to be smuggled into the jail. After receiving contraband and cash bribes from Davis, Solomon smuggled the contraband to Nichols, who ultimately sold some of the marijuana and cell phones to other inmates. The inmates purchased the contraband by having friends and family send Western Union money transfers to Nichols, who then enlisted Davis and others to retrieve those payments for him. Davis obtained at least $4,300 in Western Union payments over the course of the conspiracy.
Charges against Nichols are still pending. The charges and allegations against Nichols are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Solomon pleaded guilty on Oct. 1, 2014, to one count of conspiring to commit extortion under color of official right and awaits sentencing on Jan. 21, 2015. He has been released on bail.
The charge of conspiring to commit extortion under color of official right, to which Davis pleaded guilty, carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000. Davis also will forfeit $4,300, consisting of his proceeds from the conspiracy. The charge of conspiring to provide contraband, including marijuana, to inmates at the Essex County Jail, to which Harper pleaded guilty, carries a maximum potential penalty of five years in prison and a maximum fine of $250,000.
Davis and Harper are set to be sentenced before Judge Cooper on Feb. 11, 2015, and Feb. 4, 2015, respectively.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and investigators with the Internal Affairs Division of the Essex County Jail, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Robert Frazer of the Criminal Division, Organized Crime/Gangs Unit, in Newark.
14-380
Defense counsel:
Davis: Maria Noto Esq., Matawan, N.J.
Dwayne Harper: Michael Pedicini Esq., Morristown, N.J.Davis, Darsell Information
Harper, Dwayne InformationMedical Office Receptionist Pleads Guilty to Embezzlement, Credit Card Fraud, and Tax EvasionRead the Press Release
NEWARK, N.J. – A receptionist previously employed by a medical office in Kearny, New Jersey, today admitted embezzling more than $446,000 from her former employer, using fraudulent credit cards to obtain more than $200,000 in goods and services and evading taxes on that illegal income, U.S. Attorney Paul J. Fishman announced.
Gwendolyn Muller, 53, formerly of Kearny, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging one count each of embezzlement, credit card fraud and tax evasion.
According to documents filed in this case and statements made in court:
From 2007 through 2011, Muller used her position at the medical practice to take, cash, and conceal more than $446,000 in checks paid by insurance companies to the medical practice for services to patients. At various times during this same period, Muller also fraudulently obtained 10 credit cards in the name of a principal of the medical practice and used those cards to charge more than $218,000 in goods and services – a portion of which Muller paid for with embezzled funds. Muller also admitted to filing a false tax return to evade the payment of taxes on this illegally obtained income.
The embezzlement and credit card counts to which Muller pleaded guilty each carry a maximum potential penalty of 10 years in prison, and the tax count carries a maximum potential penalty of five years in prison. All three counts are also punishable by a fine of $250,000, or twice the gross loss or gain caused by the offense. Sentencing is scheduled for Feb. 19, 2015. Under terms of the plea agreement, Muller is required to forfeit $556,000 to the United States.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $540 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-378
Defense counsel: Donald Rinaldi Esq., Nutley, N.J.
Muller, Gwendolyn Information
Businessman Admits Stealing $100,000 Worth of Water from the Jersey City Municipal Utilities AuthorityRead the Press Release
NEWARK, N.J. – The owner of Reliable Wood Products (Reliable Wood) today admitted his role in a conspiracy to steal at least $100,000 worth of water from the Jersey City Municipal Utilities Authority (JCMUA), U.S. Attorney Paul J. Fishman announced.
Nicholas Vene, 43, of Holmdel, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of conspiracy to commit mail fraud.
According to the documents filed in this case and statements made in court:
From January 2007 through March 31, 2012, Vene and others diverted the water flowing from a Jersey City water pipe to 1 Caven Point in Jersey City and away from the water meter on that pipe. United Water New Jersey was responsible for collecting payment on behalf of the JCMUA for water used by residents and businesses in Jersey City, and Vene’s actions resulted in United Water obtaining a false calculation of the volume of water used at 1 Caven Point by under-reporting such usage. At 50 Caven Point, another Reliable Wood location, Vene was aware of the use of a water pipe that was unmetered. In early 2012, Vene caused monthly payments by check to be mailed to the JCMUA that did not accurately cover the actual cost of water used by Reliable Wood. He and others defrauded the JCMUA of at least $100,000.
The conspiracy charge to which Vene pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 26, 2015.
U.S. Attorney Fishman credited special agents from the FBI, under direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea. He also thanked the Hudson County Prosecutor’s Office for its role in the case.
The government is represented by Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office, Special Prosecutions Division, in Newark.
14-379
Defense counsel: Joseph A. Hayden Jr. Esq., Roseland, N.J.Vene, Nicholas Information
Morris County, N.J., Plastic Surgeon Charged with Evading Taxes on More Than $10 Million in IncomeRead the Press Release
NEWARK, N.J. – A plastic surgeon with a practice in Basking Ridge, New Jersey, has surrendered to face charges that he fraudulently diverted millions in corporate earnings for his personal use, costing the United States nearly $3 million in tax revenue, U.S Attorney Paul Fishman announced today.
David Evdokimow, 54, of Harding Township, New Jersey, is charged by indictment with one count of conspiring to defraud the United States and four counts of personal income tax evasion and three counts of corporate tax evasion. He appeared in court Oct. 16, 2104, before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the indictment unsealed today:
Evdokimow conducted his medical practice through a corporate entity known as De’Omilia Plastic Surgery P.C. (De’Omilia). He allegedly paid his personal expenses directly from De’Omilia’s corporate bank accounts while falsely attributing these expenses to De’Omilia’s corporate operations. By falsely characterizing personal expenses as corporate expenses, Evdokimow allegedly received an additional $3,123,721 in personal income from the De’Omilia accounts, which he failed to report to the IRS on his federal income tax returns.
Evdokimow had other conspirators form shell corporations and list themselves as sole signatories in order to conceal any connection with Evdokimow. The conspirators made stamps with their signatures and gave them to Evdokimow so that he had full access to the shell corporations’ bank accounts. He allegedly funneled and diverted millions of dollars in De’Omilia income into the bank accounts of the shell corporations without reporting it to the IRS on his federal income tax returns. Evdokimow used the shell corporation bank accounts to pay for $2,407,165 in personal expenses including designer apparel, jewelry, vacations, artwork, and multiple residences.
Evdokimow also opened bank accounts at several banks and then used these accounts to cash checks received directly from patients for professional medical services. Evdokimow cashed out $339,465 in income from patients, which he failed to report on his federal income tax returns.
The seven substantive counts of tax evasion charge Evdokimow with attempting to avoid paying taxes on $7,305,994 in income, causing a loss to the government of $1,580,155. Three additional years of income – which are included in the conspiracy count, but could not be charged as substantive counts because the statute of limitations has expired – bring the total amount on which he allegedly attempted to avoid paying taxes to $10,800,174, costing the United States a total of $2,760,676 in tax revenue.
Each of the counts with which Evdokimow is charged carries a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Lorraine S. Gerson of the Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
14-375
Defense counsel: James Kridel Esq., Clifton, New Jersey
Evdokimow, David Indictment
Massachusetts Man Gets 30 Months in Prison for Role in Multimillion-Dollar International Cybercrime SchemeRead the Press Release
Worked as ‘Casher’ for Organization that Allegedly Capitalized on
Information Hacked From Customers of More Than a Dozen Global Financial InstitutionsTRENTON, N.J. – A member of an alleged international cybercrime, identity theft and credit card fraud conspiracy was sentenced today to 30 months in prison for his role in a scheme to use information hacked from customer accounts at more than a dozen banks, brokerage firms, payroll processing companies and government agencies to attempt to steal $15 million from customers, U.S. Attorney Paul J. Fishman announced.
Lamar Taylor, 38, of Salem, Mass., previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of conspiracy to commit wire fraud, access device fraud and identity theft. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
Taylor was asked by other members of the conspiracy to participate in a scheme to “cash out” bank accounts and pre-paid debit cards opened in the names of others. Oleksiy Sharapka, 34, of Kiev, Ukraine, allegedly directed the conspiracy with the help of Leonid Yanovitsky, 39, also of Kiev. Oleg Pidtergerya, 50, who previously pleaded guilty to his role in the conspiracy, managed a cash-out crew in New York for Sharapka and Yanovitsky, and Robert Dubuc, 41, who has also pleaded guilty to his role in the conspiracy, controlled a cash-out crew in Massachusetts. Taylor worked as a “casher” under Dubuc.
Hackers first gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including: Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.
After obtaining unauthorized access to the bank accounts, Sharapka and Yanovitsky diverted money from them to bank accounts and pre-paid debit cards they controlled. They then implemented a sophisticated cash-out operation, employing crews of individuals, including Taylor, to withdraw the stolen funds by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere. Both Sharapka and Yanovitsky are under indictment in the United States and remain at large.
Taylor admitted he was aware fraudulent accounts and cards were created without the consent of the individuals in whose names they were opened. He admitted that they opened bank accounts in the names of identity theft victims and that those accounts were funded with money stolen by other conspirators. He also admitted conducting ATM and bank withdrawals of the stolen funds and providing the proceeds of the fraud, less their own fees, to immediate higher-ups in the organization – Pidtergerya and Dubuc, who, in turn, sent a portion of the proceeds to Sharapka and Yanovitsky in Ukraine.
The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.
In addition to the prison term, Judge Sheridan sentenced Taylor to three years of supervised release and ordered him to pay restitution of $338,649.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; U.S Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe, Cyber Field Office; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Economic Crimes Unit Chief Gurbir S. Grewal of the U.S. Attorney’s Office in Newark.
The charges and allegations concerning the remaining conspirators are merely allegations and they are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
14-376
Defense counsel: Bruce Rosen Esq., Florham Park, N.J.
Essex County, N.J., Man Sentenced to 70 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
NEWARK, N.J. - An Essex County, N.J., man with a felony criminal record was sentenced today to 70 months in prison for carrying a loaded semi-automatic pistol, U.S. Attorney Paul J. Fishman announced.
Victor Lopez, 25, of Newark, was previously convicted of one count of being a felon in possession of a firearm following a three-day trial, in which the jury deliberated for four hours before returning the guilty verdict. U.S. District Judge Anne E. Thompson imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
Officers of the City of Passaic Police Department responded to a 911 call on Sept. 13, 2012, about a possible burglary in progress at an apartment building in Passaic, N.J., where they encountered Lopez leaving the building.
Officers stopped Lopez, who appeared nervous, and found a gun in his back pocket. The .380 caliber semi-automatic handgun was loaded with seven bullets, including one in the chamber. Four of the bullets were hollow-point rounds.
In addition to the prison term, Judge Thompson sentenced Lopez to three years of supervised released.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge George Belsky, and officers of the City of Passaic Police Department, under the direction of Deputy Chief Rosario J. Capuana, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Sara F. Merin and Jonathan W. Romankow of the U.S. Attorney's Office Criminal Division in Newark.
14-377
Defense counsel: Edward Washburne, Esq., Red Bank, N.J.
Former Engineer at Two Global Medical Technology Corporations Sentenced to 18 Months in Prison for Theft of Trade SecretsRead the Press Release
TRENTON, N.J. – An engineer who formerly lived in Mahwah, New Jersey, was sentenced today to 18 months in prison for stealing trade secrets from two global medical technology companies based in northern New Jersey, U.S. Attorney Paul J. Fishman announced.
Ketankumar Maniar, 38, aka “Ketan Maniar,” previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with two counts of theft and attempted theft of trade secrets for his own economic benefit. Maniar, an Indian national, has been in custody since his June 2013 arrest. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
C.R. Bard Inc. (Bard), based in Murray Hill, New Jersey, and Becton, Dickinson and Co. (BD), based in Franklin Lakes, New Jersey, are among the world’s leading manufacturers of medical technologies. From November 2004 until his resignation on Jan. 22, 2011, Maniar worked as an engineer at Bard’s Salt Lake City facility and was responsible for developing molding processes and specifications for catheters, ports and other medical products. From February 2012 until his resignation on May 24, 2013, Maniar worked as a staff engineer at BD’s Franklin Lakes headquarters, where he helped manufacture pre-fillable syringes and pen injectors.
Through his work at Bard and BD, Maniar was able to steal secret information related to the companies’ products, including Bard’s development of the first implantable port used for power injection of pharmaceutical drugs throughout the body. Maniar also had access to secret information related to a self-administered disposable pen injector still under development by BD and not yet available for commercial sale.
Maniar admitted he stole Bard and BD trade secrets that he kept after his resignation from those companies. Maniar downloaded numerous files containing Bard or BD product information from his work computers onto multiple computer storage devices, including external hard drives and thumb drives. He also used his work email accounts at Bard and BD to forward trade secrets to his personal email accounts.
On June 3, 2013, pursuant to court-issued federal warrants, FBI agents searched Maniar’s rental car and the New Jersey hotel room he stayed in while planning a move back to India. Agents seized – among other things – at least one hard drive containing Bard and BD trade secrets.
In addition to the prison term, Judge Pisano ordered Maniar to pay $32,454 in restitution to BD and ordered him to forfeit items used in furtherance of his crimes, including computers and storage devices.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, New Jersey, with the investigation leading to today’s sentencing. He also thanked BD and Bard for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark.
Defense counsel: Bradley L. Henry Esq. and Ryan Blanch Esq., New York
14-373Alleged Members of Large Heroin Trafficking Ring ChargedRead the Press Release
Federal, State and Local Law Enforcement Authorities Arrest 14 in Coordinated Takedown
ASBURY PARK, N.J. – Federal and state law enforcement authorities today arrested 14 alleged members and suppliers of a large-scale drug trafficking organization responsible for distributing heroin and cocaine throughout Monmouth, Ocean, and Middlesex counties, U.S. Attorney Paul J. Fishman announced.
The alleged leaders of the conspiracy, Herve Cadet, a/k/a “Gotti,” a/k/a “Bro,” 29, of Neptune and Sayreville, New Jersey; and Eric Smith, a/k/a “EV,” a/k/a “E,” 42, of Manchester, New Jersey, were among the 22 defendants charged in two complaints unsealed today, 14 of whom were arrested this morningas part of a coordinated takedown by federal and local law enforcement authorities. Smith has been incarcerated in New Jersey in connection with New Jersey state offenses since September 2014.The remainingseven defendants remain at large.
Each defendant (see chart below) is charged with one count of conspiracy to distribute one kilogram or more of heroin. Those arrested today are scheduled to make their initial court appearances this afternoon before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.
Also was arrested on a separate complaint today were Joel Mendez, a/k/a “Joey Mendez,” a/k/a “Crack,” 34, of Bradley Beach, New Jersey, and Alfred Lyons III, a/k/a “Alfie,” 33, of Neptune, New Jersey. They were each charged with conspiracy to distribute heroin. Mendez remains at large.
“The criminal complaints describe drug trafficking operations that have been responsible for sizeable quantities of illegal narcotics on the streets of Asbury Park, Neptune Township, and the surrounding towns,” U.S. Attorney Fishman said. “We hope and expect that today’s arrests will make a real difference to the drug trafficking trade in these counties. This is not the last that you will hear from us in this fight.”
“This lengthy and collaborative investigation has resulted in the arrests of major suppliers of heroin in the Monmouth and Ocean county areas,” Carl J. Kotowski, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “DEA and its law enforcement partners will continue to investigate those seeking to poison our communities.”
According to the federal criminal complaints filed in Trenton federal court:
From November 2013 through October 2014, Cadet, Smith, and the other members of their drug trafficking organization (the “Cadet DTO”) conspired to sell illegal drugs – chiefly heroin – in Monmouth, Ocean and Middlesex counties. Through the authorized interception of cell phone calls, the use of confidential informants and other means, law enforcement learned Cadet and Smith were leaders of the Cadet DTO, responsible for identifying sources of heroin supply. Cadet and Smith also oversaw distributors and other conspirators, who sold, packaged and stored the drugs. Members used stash houses, spoke in code and used Haitian Creole to avoid detection by law enforcement.
The Cadet DTO sold prepackaged bundles of heroin, containing approximately one-fifth of a gram, and “bricks,” which contained approximately one gram. Members of the Cadet DTO also packaged heroin for subsequent distribution to dealers and others. Discussions about drug quality, customer satisfaction, pricing and the nature of the drug distribution business were captured on calls recorded by law enforcement.
“This operation demonstrates the cooperative commitment of the multi-levels of law enforcement focused on eradicating the epidemic killing people everywhere, including Monmouth County,” First Assistant Prosecutor Marc C. LeMieux said. “We are committed to putting these purveyors of death out of business.”
The conspiracy count with which each defendant is charged carries a minimum potential penalty of 10 years in prison, a maximum of life in prison and a $10 million fine. The conspiracy count charging Mendez and Lyons carries a maximum potential penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Fishman credited special agents of the DEA, Newark Division, under the direction of Special Agent in Charge Kotowski; and officers of the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher J. Gramiccioni, who is currently wrapping up a U.S. Navy overseas deployment to Afghanistan as part of Operation Enduring Freedom, with the investigation leading to today’s charges. He also thanked special agents of Immigration and Customs Enforcement-Homeland Security Investigation, the U.S. Marshals Service, the Ocean County Prosecutor’s Office; the Asbury Park, Neptune Township and Keansburg police departments, and the Monmouth County Sheriff’s Office for their roles in the case.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
14-372
Defendant
Age
Residence
29
Neptune and Sayreville, N.J.
Eric Smith, a/k/a “EV,” a/k/a “E”
42
Manchester, N.J.
*Dwight Simon, a/k/a “Break Bread”
30
Asbury Park, N.J.
*Noble El-Bey, a/k/a “T,” a/k/a “Terry
42
Asbury Park
Evens Joseph, a/k/a “Dirty Evan,” a/k/a “De”
36
Neptune
*Steve Jean-Baptiste, a/k/a “Black”
29
Asbury Park
Harriel Jean-Baptiste, a/k/a “Harry”
25
Asbury Park
*Junior Parcias, a/k/a “Peso”
28
Neptune
Kurtis Barnes, a/k/a “Gotti”
36
Lakewood, N.J.
Charlene Braithwaite-Lovet, a/k/a “Shay”
40
Asbury Park
Athena L. Gillis, a/k/a “Shorty”
28
Asbury Park
*Jerrel K. Collins, a/k/a “Fat Boy”
27
Ocean Township, N.J.
Delovi R. Canales, a/k/a “Butter”
48
Toms River, N.J.
Laurie A. Matthews
48
Whiting, N.J.
Amal J. Blaine, a/k/a “Mal”
27
Lakewood, N.J.
Mackinson Casimir, a/k/a “Scrappy”
26
Ocean Township
Reginald Walker, a/k/a “Red”
45
Red Bank, N.J.
*Brandon R. Keyes, a/k/a “BK”
31
Neptune, N.J.
Schneider Monestime
32
Asbury Park
Marvin T. Brodie, a/k/a “Marv”
44
Manchester
*denotes at large
Cadet, Herve et al. Complaint
Mendez, Joel et al. ComplaintMiddlesex, N.J., Woman Pleads Guilty to Conspiring to Defraud the U.S. Treasury Department of Nearly $1 MillionRead the Press Release
TRENTON, N.J. - A woman from Middlesex, New Jersey, today admitted defrauding the United States Department of the Treasury of $940,000 in income tax return checks, U.S. Attorney Paul J. Fishman announced today.
Rosemary Valerio, 32, pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging her with one count of conspiracy to defraud the United States.According to documents filed in the case and statements made in court:
Valerio and other conspirators obtained and cashed stolen income tax refund checks, using the illicit cash proceeds for their personal benefit. Valerio provided Treasury checks to Rosanna Rodriguez, the head teller at a Perth Amboy, New Jersey bank, who then negotiated the checks against unknowing third-party bank accounts. At her plea hearing, Valerio admitted that the total loss from the conspiracy was approximately $940,000.
The count of conspiracy to defraud the United States carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is currently scheduled for Jan. 22, 2015.
Rodriguez pleaded guilty to one count of conspiracy to defraud the United States on Sept. 22, 2014 and is scheduled for sentencing on Jan.12, 2015.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation.The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office Criminal Division in Newark, New Jersey.
14-370
Defense counsel: Karen Fernandez Esq., New York
Valerio, Rosemary Information
Former Union Delegate Sentenced to 20 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - A former delegate of the International Longshoremen’s Association (ILA) Local 1235 was sentenced today to 20 months in prison for conspiring to extort longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.
Robert Ruiz, 55, of Watchung, New Jersey – the delegate of the union from approximately 2007 through 2010 – previously pleaded guilty before U.S. District Judge Claire C. Cecchi to one count of an indictment charging him with conspiring to extort Christmastime tributes from ILA Local 1235 members. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Ruiz and two other former ILA officers – Vincent Aulisi, 82, of West Orange, New Jersey, the president of ILA Local 1235 from 2006 through 2007; and Thomas Leonardis, 57, of Glen Gardner, New Jersey, the president of the union from approximately 2008 through 2011 – admitted that they conspired to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Leonardis and Ruiz were suspended from their positions following their arrests in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.
Aulisi was sentenced to 18 months in prison on Oct. 8, 2014. Leonardis still awaits sentencing.
Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 59, of Kenilworth, New Jersey – a soldier in the Genovese organized crime family of La Cosa Nostra. Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235, and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.
Two other Genovese family associates charged in the case are former union officials: Albert Cernadas, 79, of Union, New Jersey, the president of ILA Local 1235 from approximately 1981 to 2006 and former ILA executive vice president; and Nunzio LaGrasso, 63, of Florham Park, New Jersey, the former vice president of ILA Local 1478 and former ILA representative.
In addition to the prison term, Judge Cecchi sentenced Ruiz to serve two years of supervised release.
U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos; as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia of the New York Regional Office, with the investigation.
The government is represented by Assistant U.S. Attorneys Anthony Mahajan of the U.S. Attorney’s Office, District of New Jersey, and Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York.
The charges and allegations against the remaining defendants are merely accusations and they are considered innocent unless and until proven guilty.
14-372Defense counsel: Marc Agnifilo Esq., New York