District of New Jersey
Press releases recorded for this federal judicial district.
Columbian Cartel Leader Admits Trafficking Narcotics Sold in the United StatesRead the Press Release
NEWARK, N.J. B A Colombian cartel leader expelled from Venezuela to face federal charges in New Jersey for his role in an international cocaine distribution conspiracy admitted today in Newark federal court to conspiring traffic the drug into the United States, U.S. Attorney Paul J. Fishman and FBI Special Agent in Charge Aaron T. Ford announced.
Colombian national Salomon Camacho Mora, 70, a/k/a “Papa Grande,” a/k/a “El Viejo,” a/k/a “Hector,” was arrested in Valencia, Venezuela, on Jan. 13, 2010, and subsequently expelled by Venezuelan authorities to the United States. Previously, Camacho, who had been designated a Consolidated Priority Organization Target (CPOT) by the Department of Justice, was a New Jersey FBI fugitive for more than eight years.
Camacho was originally indicted in September 2002 in U.S. District Court for the District of New Jersey. He entered a plea of guilty today, to a count of conspiracy contained in a superseding indictment, before U.S. District Judge William H. Walls.
According to statements made during Camacho’s guilty plea proceeding and documents filed in Newark federal court:
Camacho admitted that he and members of his drug organization purchased multi-kilogram quantities of cocaine from various cocaine processing laboratories located in Colombia, and arranged for the transportation of the cocaine loads to various shipping ports in Venezuela. Camacho and members of his drug organization then sold the cocaine shipments to other drug trafficking organizations operating in Puerto Rico, the Dominican Republic, and the United States.
He also acknowledged that others in his organization received and stored the drug shipments in Venezuela, and arranged for their maritime transportation to Puerto Rico and the United States.
The drug trafficking operation generated substantial profits for Camacho and his conspirators.
Camacho faces a statutory mandatory minimum of 10 years in prison, a statutory maximum of life in prison, and fines of up to $10 million or twice the amount of profits he gained from his illegal conduct. As part of his plea agreement, Camacho has agreed to the entry of a $1.6 million forfeiture money judgment and the forfeiture of eight Colombian properties that were the product of ill-gotten gains. Sentencing is currently scheduled for March 10, 2015.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark; and the New Jersey National Guard Anti-Narcotics Task Force for the investigation.
Fishman also thanked the U.S. Department of Justice Criminal Division's Office of International Affairs for providing assistance in this matter. Additionally, Fishman thanked the Venezuelan agencies Oficina Nacional Anti Drogas (ONA), Servicio Bolivariano de Intelligencia Nacional, (SEBIN), Servicio Administrativo de identificacion migracion y Extranjeria, (SAIME) and the Colombian law enforcement authorities for their assistance in Camacho’s arrest and deportation.
The government is represented by Assistant U.S. Attorney Adam N. Subervi of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: William Clay Esq., MiamiCamacho Mora Salomon Superseding Indictment
Camden Drug Trafficking Organization Charged with Selling Heroin, Methamphetamine and Assault WeaponsRead the Press Release
Multiple Arrests Made Following Multi-Agency Investigation
CAMDEN, N.J. - Four members of a drug trafficking organization allegedly responsible for distributing heroin and crystal methamphetamine in the Camden area were arrested today by federal, state and local law enforcement officers, U.S. Attorney Paul J. Fishman announced.
Arrested this morning were the alleged leader of the conspiracy, Wendell Fleetwood, a/k/a “Dell,” 28, of Camden and Sicklerville, N.J, and three other members of the conspiracy: Wendell Bethea, a/k/a “Rell,” a/k/a “Ruger;” 25, of Camden and Maple Shade, N.J.; and Julio Alvarado, 25, and Erica Fleetwood, 24, both of Camden. A fifth federal defendant, Brandon Jones, 25, of Camden, remains at large. The charges are the result of an investigation by the Camden County Crime Collaboration (C-4).
Each defendant was charged in a federal criminal complaint unsealed today with one count of conspiracy to distribute 100 grams or more of heroin and 50 grams or more of methamphetamine. The defendants are also charged in separate counts in connection with distribution of heroin and/or methamphetamine to an undercover officer. Wendell Fleetwood and Bethea are additionally charged with possessing methamphetamine with intent to distribute. Bethea faces three counts in connection with selling three high-capacity assault weapons to an undercover officer, as well as a handgun that had been used in a recent homicide. The defendants are scheduled to make their initial court appearances this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
“Because of C-4 – our collaborative partnership with state and local law enforcement -- as well as the more robust Camden County PD and its community policing orientation, and other efforts, Camden is becoming safer every day,” U.S. Attorney Fishman said. “We are grateful that all of our law enforcement partners share our vision and commitment to make Camden the safe city its residents deserve.”
“While the success of this operation hinged on the teamwork of many agencies, it was the bravery, selflessness and dedication of the law enforcement officers involved that made these significant arrests possible,” Camden County Prosecutor Mary Eva Colalillo said.
According to the complaint:From November 2013 through October 2014, the defendants engaged in a conspiracy to distribute illegal drugs – primarily heroin – in and around Camden. Through the authorized interception of cell phone calls and texts, the use of various surveillance methods, controlled undercover purchases and other means, law enforcement learned that Wendell Fleetwood was the leader of the drug trafficking organization (the “Wendell Fleetwood DTO”). He supplied wholesale quantities of heroin to Bethea and Alvarado, who either resold it to other distributors or repackaged it into smaller quantities for sale to customers.
In intercepted calls, Bethea, Jones and Alvarado and their associates discussed and directed the purchasing, processing, packaging, storing and distributing of heroin, as well as its quality and the pricing and collection of the proceeds from its sale. In addition to replacing their cellular phones after only a couple weeks of use and speaking in code to avoid detection by law enforcement, the Wendell Fleetwood DTO allegedly used Erica Fleetwood to relay drug-related messages from her brother, Wendell, to Bethea and Jones. Jones, Alvarado and Erica Fleetwood also conducted counter surveillance for the DTO. The Wendell Fleetwood DTO also replaced their vehicles frequently to avoid detection, renting cars or obtaining vehicles which were stolen or fraudulently obtained.
“Camden’s drug gangs victimize the city in so many ways – through the poison they sling, and the violence tied to the trade,” Edward J. Hanko, FBI Special Agent in Charge, said. “The FBI’s South Jersey Violent Offender and Gang Task Force, alongside our law enforcement partners, is committed to dismantling these despicable drug trafficking organizations.”
“Heroin abuse has been a major issue facing New Jersey,” Carl J. Kotowski, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “The arrest of these individuals highlights the fact that members of DEA will continue to do its part to remove those responsible for putting those drugs on the street.”
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 firearms charges faced by Bethea each carry a maximum penalty of 10 years in prison and a $250,000 fine.
“The dismantling of this sophisticated criminal network wouldn’t have been possible without the dedication and cooperation of all the law enforcement partners who worked long and hard to identify these suspects and ensure their arrest,” Camden Police Chief J. Scott Thomson said. “The removal of these individuals from the community this morning will have an immediate positive impact on public safety in Camden as the supply of illegal drugs and guns on Camden’s streets has just been reduced.”
“The success of this collaboration proves the value of sharing intelligence with others in law enforcement,” Col. Rick Fuentes, Superintendent of the N.J. State Police, said. “Multiple agencies were targeting different individuals who turned out to be working together to push drugs into the South Jersey region. This was a well-organized group who went to great lengths to avoid detection, such as speaking in code and frequently changing cell phones.”U.S. Attorney Fishman credited special agents of the FBI, Cherry Hill Resident Agency’s South Jersey Violent Offender and Gang Task Force, under the direction of Special Agent in Charge Hanko; special agents of the DEA, Maple Shade Resident Office’s High Intensity Drug Trafficking Area Group, under the direction of Special Agent in Charge Kotowski; investigators of the N.J. State Police’s Violent and Organized Crime Bureau, Trafficking South Unit, under the direction of Superintendent Fuentes; investigators with the Camden County Prosecutor’s Office, under the direction of Prosecutor Colalillo; detectives of the Camden County Police Department – Metro, under the direction of Chief J. Scott Thomson, with the investigation leading to today’s charges. He also thanked the U.S. Postal Inspection Service, under the direction of Inspector in Charge David W. Bosch; and the Camden County Sheriff’s Office, under the direction of Charles H. Billingham, for their roles in the case. He also thanked U.S. Immigration and Customs Enforcement – Homeland Security Investigations; the N.J. Office of Attorney General, Division of Criminal Justice; the Delaware River Port Authority, the Burlington County Prosecutor’s Office, the Gloucester City Police Department and the Cherry Hill Police Department for their roles in the investigation.
The government is represented by Deputy U.S. Attorney Nelson S.T. Thayer Jr. and Special Assistant U.S. Attorney Michael Angermeier of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
This case was developed through the work of the Camden County Crime Collaboration. Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. This coordination greatly enhances the law enforcement community’s ability to identify and prosecute Camden’s most dangerous criminals.
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Fleetwood DTO Global Complaint Affidavit
Fleetwood, Wendell Complaint
Bethea, Wendell Complaint
Alvarado, Julio Complaint
Fleetwood, Erica ComplaintBergen County, N.J., Man Sentenced to 63 Months in Prison for Receiving Images of Child Sexual Abuse over the InternetRead the Press Release
TRENTON, N.J. - A Bergen County, New Jersey, man was sentenced today to 63 months in prison for downloading images and videos depicting child sexual abuse on a computer at his parents’ house, U.S. Attorney Paul J. Fishman announced.
Joshua Babilonia, 24, Fair Lawn, New Jersey previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with one count of receiving images of child sex abuse over the Internet. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Special agents of the U.S. Department of Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) executed a search warrant on Sept. 13, 2012, at the residence of Babilonia’s parents. Agents seized digital evidence that contained more than 600 images and a large number of videos depicting child sexual abuse, including material that involved prepubescent minors and portrayed sadistic or masochistic conduct. The evidence seized included three files previously downloaded from Babilonia by law enforcement agents working in an undercover capacity on a peer-to-peer network.
During his plea hearing, Babilonia admitted he was a member of the online network between January 2011 and September 2012 and searched for and downloaded images of child sexual abuse. He also admitted that his files were viewable and downloadable by others on the network.
In addition to the prison term, Judge Pisano sentenced Babilonia to five years of supervised release and ordered him to pay restitution of $6,000. He is also required to register as a sex offender.
U.S. Attorney Fishman credited special agents of ICE HSI, under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney=s Office General Crimes Unit in Newark.
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Defense counsel: Adolph Galluccio Esq., Totowa, N.J.Compounding Pharmacist Admits Paying Kickbacks for Referrals, Health Care FraudRead the Press Release
CAMDEN, N.J. – A pharmacist with a compounding pharmacy in Lakewood, New Jersey, admitted today to paying tens of thousands of dollars in cash bribes to physicians for referring pain cream prescriptions, defrauding health care benefit programs out of hundreds of thousands of dollars, U.S. Attorney Paul J. Fishman announced.
The president and pharmacist-in-charge of Prescriptions R US – Vladimir Kleyman, 43, of Lakewood, New Jersey – pleaded guilty to an information charging him with conspiracy to pay kickbacks and to commit health care fraud. Kleyman, who originally was charged by complaint in January of 2014, entered his guilty plea before U.S. District Judge Joseph H. Rodriguez in Camden federal court.
According to documents filed in this case and statements made in court:
From January 2013 through January 2014, Kleyman provided another individual with tens of thousands of dollars in cash and checks to provide bribes to physicians for referring prescriptions for a compounded pain cream to Prescriptions R US. Compounding pharmacies prepare medication, using different types and dosages of drugs, in order to provide more personalized medications for patients. The compounded pain cream prepared by Prescriptions R US in this case contains several components, including ketamine (a Schedule III non-narcotic), lidocaine and diclofenac.
During his guilty plea proceeding, Kleyman admitted that in a series of meetings in November and December 2013 alone, he arranged for the middleman to receive more than $40,000 in cash or checks with the understanding it would be used to pay bribes for the referral of pain cream prescriptions.
Kleyman also admitted he knew certain health insurance carriers, including federal health care benefit programs, did not cover compounded pain cream, but he nevertheless dispensed the pain cream to these patients and obtained payment from their insurance carriers by falsely representing the pain cream to be other covered items. Kleyman also acknowledged he defrauded health insurance carriers by making false and misleading representations about the quantity of the pain cream that he dispensed and the frequency with which he dispensed it. As a result, private insurance payors paid the pharmacy hundreds of thousands of dollars.
The conspiracy count with which Kleyman is charged carries a maximum potential penalty of five years in prison and a $250,000 fine. The government is also seeking Kleyman’s forfeiture of any proceeds derived from his offense. Sentencing is currently scheduled for Jan. 20, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; 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 Assistant U.S. Attorney Jane H. Yoon and Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney 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.
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Defense counsel: Alain Jeff Ifrah, Esq., Washington
Kleyman, Vladimir Information
Woman from Dominican Republic Convicted of Using Phony Passport to Re-Enter United StatesRead the Press Release
NEWARK, N.J. – A citizen of the Dominican Republic was convicted at trial today of several crimes related to her effort to re-enter the United States with a phony passport, U.S. Attorney Paul J. Fishman announced.
Angela De Jesus-Concepcion, 35, of New York, was convicted of all three counts of the indictment against her: false claim of U.S. citizenship, use of a U.S. passport obtained by false statement, and aggravated identity theft. Following a one week trial before U.S. District Judge William Walls, the jury deliberated one hour before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
On March 17, 2012, De Jesus-Concepcion attempted to enter the United States at Newark Airport from the Dominican Republic. At CBP passenger processing she presented a United States passport bearing the name of an identity theft victim and De Jesus-Concepcion’s photograph. She also filled out a customs declaration using the victim’s name and the number of the passport that she was carrying. Customs and Border Protection conducted a secondary inspection and found a New Jersey driver’s license bearing the victim’s name and De Jesus-Concepcion’s photograph along with a Visa debit card in De Jesus-Concepcion’s own name. At trial, it was proven that the passport being carried by De Jesus-Concepcion had been obtained using an earlier version of the New Jersey driver’s license bearing the victim’s name and De Jesus-Concepcion’s photograph and a replacement naturalization certificate, also bearing the victim’s name and De Jesus-Concepcion’s photograph.
The count of false claim of citizenship carries a maximum potential penalty of three years in prison. The count of use of a passport obtained by false statement carries a maximum potential penalty of 10 years in prison. The count of aggravated identity theft carries a maximum potential penalty of two years in prison, consecutive to any sentence imposed on the other two counts. Sentencing is scheduled for Jan. 6, 2015.
U.S. Attorney Fishman credited officers of U.S. Customs and Border Protection, under the leadership of Robert E. Perez, director of New York Field Operations, for the investigation leading to today’s conviction. He also thanked the Department of State, Diplomatic Security Service, for its investigation.
The government is represented Assistant U.S. Attorneys Sara F. Merin of the General Crimes Unit and Shirley U. Emehelu of the Economic Crimes Unit in Newark.
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Defense counsel: Kathleen Theurer Esq., Jersey City, N.J.De Jesus-Concepcion, Angela Superseding Indictment
Union County, N.J., Man Sentenced to More Than 10 Years in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. - A Union County, New Jersey, man was sentenced today to 121 months in prison for distributing images of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
Carl Tullis III, 50, of Plainfield, New Jersey, previously pleaded guilty before U.S. District Judge Faith S. Hochberg to Count One of an indictment charging him with distribution of child pornography. Judge Hochberg imposed the sentence today in Newark federal court.
According to documents filed in this case and statements in court:
Tullis admitted that on March 26, 2011, he made available for others to download via an online peer-to-peer, file-sharing network images and videos of child sexual abuse that were stored on his home computer. An undercover FBI agent successfully downloaded from Tullis multiple images and videos of child sexual abuse via the file sharing network. A subsequent search of Tullis’ computers and computer accessories revealed that he:- 1,634 images of child sexual abuse
- 1,420 videos of child sexual abuse
- Multiple images and videos of child pornography involving sadistic or masochistic conduct and bestiality
- Multiple images and videos of child sexual abuse involving infants
As part of his guilty plea, Tullis agreed to forfeit the computers and computer accessories he used to commit the offense. He will also be required to register as a sex offender.
In addition to the prison term, Judge Hochberg sentenced Tullis to five years of supervised release and pay restitution of $8,000 to each of two victims.
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, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Francisco J. Navarro and Courtney M. Oliva of the U.S. Attorney’s Office General Crimes Unit in Newark.
14-366Defense counsel: Brian Neary Esq., Hackensack, New Jersey
Former Union President Sentenced to 18 Months in Prison for Extortion Conspiracy Involving Christmastime Tribute PaymentsRead the Press Release
NEWARK, N.J. - The former president of the International Longshoremen’s Association (ILA) Local 1235 was sentenced today to 18 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.
Vincent Aulisi, 82, of West Orange, New Jersey – the president of ILA Local 1235 from 2006 through 2007 – 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:
Aulisi and two other former ILA officers – Thomas Leonardis, 57, of Glen Gardner, New Jersey, the president of the union from approximately 2008 through 2011; and Robert Ruiz, 55, of Watchung, New Jersey, the delegate of the union from approximately 2007 through 2010 – 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.
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 Aulisi to serve one year of supervised release and fined him $10,000.
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.
14-367Defense counsel: Joseph Fusella Esq., Bloomfield, New Jersey
Essex County, N.J., Man Sentenced to Nearly 19 Years in Prison for 17 Armed Robberies, Armed Carjacking, and ShootingRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today To 225 months in prison for committing 17 armed robberies of commercial establishments throughout Union, Essex and Bergen counties, all within a six-month period, U.S. Attorney Paul J. Fishman announced.
Bobby Dawson, 31, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of committing an armed carjacking, one count of conspiring to commit Hobbs Act robberies and one count of discharging a firearm during the commission of one of those robberies. Judge Walls imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Dawson conspired with others to rob commercial establishments as follows:
Pao Da Terra
Newark
Dec. 29, 2012
Newark
Jan. 20, 2013
Newark Community Pharmacy
Newark
Jan. 24, 2013
Linden Stationary
Linden
Feb. 1, 2013
Delta Gas Station
Newark
Feb. 1, 2013
Shoppers Express
Belleville
Feb. 2, 2013
Krauszers
Kearny
Feb. 10, 2013
Krauszers
Bloomfield
Feb. 13, 2013
Pat’s Deli
Newark
Feb. 19, 2013
Smashburger
Paramus
March 16, 2013
Krauszers
Bloomfield
March 29, 2013
MS&K Confectionery
Maplewood
April 1, 2013
Belleville News and Food
Belleville
April 17, 2013
South Wood Discount Liquor
Linden
April 17, 2013
Krauszers
West Orange
April 24, 2013
Newark Community Pharmacy
Newark
May 1, 2013
Subway Restaurant
Verona
May 20, 2013
Dawson and his conspirators robbed each of these establishments at gunpoint, stealing cash, cigarettes and other items. In 15 of the 17 robberies, Dawson and his conspirators used zip-ties or duct tape to restrain their victims.
In the MS&K robbery on April 1, 2013, Dawson threatened the clerk of the store with a .380 caliber semi-automatic handgun. When the clerk resisted, Dawson fired his gun at the clerk, ordered the clerk to lie down and then stole $9,000 from the cash register.
In the robbery of Krauszers in West Orange on April 24, 2013, Dawson and a conspirator tied up three individuals in the store with zip-ties before stealing approximately $600 and several cartons of cigarettes. Dawson injured a store employee by hitting the victim in the head with his firearm.
On Jan. 1, 2013, Dawson and others agreed to steal a Mitsubishi Gallant parked on Underwood Street in Newark. Before driving away with the car, Dawson and his conspirators brandished multiple firearms to subdue the driver, with one conspirator using his firearm to strike the driver in the head.
In addition to the prison term, Judge Walls sentenced Dawson to serve three years of supervised release and ordered him to pay $72,518 in restitution.
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.
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Defense counsel: Assistant Federal Public Defender Candace Hom Esq., Newark
Bergen County, N.J., Man Sentenced to 17 Months in Prison in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 17 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 today.
David Pinski, 75, of Fort Lee, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to conspiracy to defraud the United States and theft of government funds. Judge Cecchi imposed the sentence today in Newark federal court.
The scheme caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds, and which resulted in the losses to the United States of more than $12 million.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud
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 Individual Income Tax Return Form 1040s (Form 1040) 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, in various ways.
• Certain SIRF perpetrators sell the tax 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 refund checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
The Investigation
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. 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 engaged in a large-scale, long running SIRF scheme.
Pinski and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. Pinski and others 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 fraudulent 1040 forms were created and 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, which, in turn, led to the issuance of tax refund checks that the conspirators obtained, sold, cashed, and spent.
Conspirators purchased mail routes, that is, lists of addresses covered by a single mail carrier. Conspirators applied for tax refunds, inserted addresses along the mail route as the purported home addresses of the “taxpayers,” and obtained the checks sent to the addresses. In other instances, the conspirators applied for checks using addresses otherwise controlled by, or accessible by, certain conspirators, and collected the checks after they were delivered to those addresses. Hundreds of refund checks were mailed to just a few different addresses in a few towns, including Nutley, Somerset and Newark in New Jersey and Shirley, N.Y. After receiving the checks, Pinski and others cashed the checks and divided the proceeds.
Members of the New Jersey Task Force identified certain “hot spots” of activity related to the scheme, where conspirators were directing millions of dollars of refunds just a few towns and cities. New Jersey Task Force members then interacted with U.S. Postal Service employees in these hot spots, and identified the characteristics of refund checks connected to the scheme. More than $22 million in fraudulently applied for refund checks were interdicted by law enforcement and never delivered.
In addition to the prison terms, Judge Cecchi sentenced Pinski to 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, Mala Ahuja Harker, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense Counsel: Samuel DeLuca Esq., Jersey City, N.J.Employee of Essex County Contractor Admits Tax ChargesRead the Press Release
TRENTON, N.J. – An employee of several related Parsippany, New Jersey-based construction companies today admitted underreporting significant amounts of cash income on his tax return, U.S. Attorney Paul J. Fishman announced.
Frank Chimento III, 46, of Verona, N.J., pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of subscribing to a false personal federal income tax return in 2007.
According to the documents filed in this case and statements made in court:
Chimento Construction, Chimento Construction Services, and FAC Construction, were commingled companies specializing in commercial masonry and concrete work (the “Chimento Companies”). From 2008 through 2011, the Chimento Companies’ primary construction job was the Palmer Square project in Princeton, New Jersey. Chimento Companies operated a cash payroll for a significant portion of the wages paid to employees during the period 2006 through 2011. Chimento worked for the Chimento Companies for more than 10 years and was one of the employees who received cash wages.
In 2007, Chimento briefly operated his own excavation business. An analysis of his bank accounts showed payments in 2007 from the Chimento Companies totaling $85,860. Chimento failed to report $45,860 of that income on his 2007 federal personal income tax return. He also admitted in court that he did not file individual income tax returns for 2008 through 2011 although he received approximately $100,000 in cash wages in 2008, and a total of $351,788 in cash wages during the years 2009 through 2011.The count of subscribing to a false tax return is punishable by a maximum potential penalty of three years in prison and a $250,000 fine. As part of his guilty plea, Chimento agreed to make full restitution to the IRS for all losses resulting from the filing of false tax returns. Sentencing is scheduled for Jan. 13, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Cheryl Garcia New York Regional Office; and special agents of IRS-Criminal Investigation, under the leadership of Acting Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s guilty plea. He also thanked the N.J. Department of Labor and Workforce Development, under the leadership of Commissioner Harold J. Wirths, for its assistance in the investigation.The government is represented by Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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ChimentoIII, Frank Information
Clifton, N.J., Ambulance Service Provider Arrested, Charged with Health Care FraudRead the Press Release
Company In Top 3 Percent of Transport Provider Medicare Earners After Operator Barred From Medicare Participation for Previous Crime
NEWARK, N.J. – A Passaic County man who operates a lucrative New Jersey ambulance company was arrested this morning at his home by special agents of the FBI and the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) on charges he ran the service after being barred from doing business with Medicare and laundered government payments, U.S. Attorney Paul J. Fishman announced.
Imadeldin Awad Khair, 54, of Paterson, New Jersey, is charged by complaint with one count of health care fraud and one count of money laundering. He is expected to appear today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the criminal complaint unsealed today:
As a result of his 2003 conviction on a New Jersey state health care charge, Khair was excluded from participating in any capacity in Medicare, Medicaid, or other federal health care program for a minimum period of 11 years.
Despite this, Khair has – since 2011 – been an operator and a de facto owner of K & S Invalid Coach, a licensed ambulance and wheelchair transportation service operating out of Clifton, New Jersey. Nearly all of K & S’ patients are Medicare beneficiaries requiring regular transportation to dialysis treatment. Since September 2011, Medicare Part B has paid more than $6 million in claims submitted by K & S. Thus far in 2014, K & S has been in the top 3 percent of the more than 400 ambulance transport providers in the state of New Jersey, as measured by receipt of payments from Medicare.
Since 2011, Khair and others at K & S have concealed his involvement at K & S from Medicare, including his substantial control over K & S’s bank accounts and operations, including the authority to hire and terminate employees, determine employee salaries, and enforce company policies. Since 2011, Khair has received more than $485,000 from K & S, and additional funds have been transferred to his wife.
After Medicare had directly deposited the money into a bank account in the name of K & S, Khair transferred money to various other accounts. In particular, on Nov. 15 2012, Khair wrote a check for $15,500 against a K & S operating account, made payable to an individual with the initials “E.A.,” endorsed by Khair, and deposited into an account in the name of E.A. Including this and other transactions from K & S operating accounts, Khair caused more than $86,000 to be transferred to that account. On Feb. 8, 2013, Khair caused a wire transfer in the amount of $86,295 to be made from the bank account in the name of E.A. for the purpose of completing a real estate transaction through which the property in which Khair resides was nominally transferred to E.A.
In filing the complaint, the United States is seeking to forfeit the property as proceeds and property involved in money laundering.
Each of the two counts with which Khair is charged carry a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gain or loss from the offense.U.S. Attorney Fishman credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and HHS-OIG, under the direction of Special Agent in Charge Thomas O’Donnell, with the ongoing investigation leading to these charges.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman and Danielle M. Corcione of the U.S. Attorney’s Health Care and Government Fraud Unit, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
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.
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Khair, Imadeldin Awad Complaint
Middlesex County, N.J., Man Admits Multiple Bank RobberiesRead the Press Release
NEWARK, N.J. - A Middlesex County, New Jersey, man admitted his role in two bank robberies, U.S. Attorney Paul J. Fishman announced today.
Peter Greer, 40, of New Brunswick, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with two counts of bank robbery.
According to documents filed in this case and statements made in court:
Greer admitted using intimidation to rob the Valley National Bank in Newark, New Jersey, on Sept. 27, 2012. Greer entered the bank, approached the bank teller and provided a note that said “give me the money in hundred dollar bills.” The teller complied and Greer fled the bank with the money. Greer also admitted to using intimidation to rob the rob Sovereign Bank, located in Newark on Oct. 31, 2012. Greer entered the bank, approached the bank teller and provided a note that said “I have a gun, give me money.” This time the teller did not comply, and Greer fled the bank without any money.
The bank robbery counts carry a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, for each count with which he is charged. Sentencing is scheduled for Jan. 5, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to charges. He also thanked the Passaic Police Department and the Passaic County Sheriff’s Department for their contribution to the case.The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the Criminal Division in Newark, N.J.
Greer, Peter Information
Georgia Man Sentenced to 121 Months in Prison for Traveling from New York to New Jersey for Illicit Sexual Conduct with ChildrenRead the Press Release
TRENTON, N.J. – A Georgia man living in Long Island, N.Y., was sentenced today to 121 months in prison for traveling from New York to New Jersey to have sexual contact with a minor, U.S. Attorney Paul J. Fishman announced.
Richard J. Simone Jr., 23, of Acworth, Ga., previously pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to Count One of an indictment charging him with traveling across state lines for the purpose of engaging in sexual conduct with a minor. Simone has been in custody since his arrest in September 2013. Judge Cooper imposed the sentence in Trenton federal court.
According to documents filed in this case and statements made in court:
Simone admitted that beginning in July 2013, he engaged in numerous graphic communications over the Internet with an individual he believed was the father of a 9-year-old girl. In those communications, Simone discussed having sex with the girl and her minor babysitter. The individual with whom he was corresponding was actually an undercover agent from the Department of Homeland Security, Homeland Security Investigations, and both of the minors were fictitious. On Sept. 13, 2013, Simone traveled from Long Island to Monmouth County, N.J., for the purpose of having sex with the two minors. Simone was arrested when he arrived at the location where he and the undercover had arranged to meet.
In addition to the prison term, Judge Cooper sentenced Simone to five years of supervised release.
U.S. Attorney Fishman credited agents of Homeland Security Investigations, Immigrations and Customs Enforcement, under the direction of Special Agent in Charge Andrew M. McLees in Newark; the West Long Branch Borough Police Department, under the direction of Chief of Police Lawrence L. Mihlon, for the investigation leading to today’s guilty plea. He also thanked HSI New York; U.S. Customs and Border Protection, and the Monmouth County Prosecutor’s Office, for their assistance with the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to
combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by
the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and
Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe
Childhood marshals federal, state and local resources to better locate, apprehend and prosecute
individuals who exploit children as well as to identify and rescue victims. For more information
about Project Safe Childhood, please visit www.projectsafechildhood.gov
The government is represented by Assistant U.S. Attorneys Fabiana Pierre-Louis and Harvey Bartle, attorney in charge of the U.S. Attorney’s Trenton Office.14-359
Defense counsel: Guy L. Womack Esq., Houston, TexasBrother and Sister, One Other Person, Convicted at Trial in $15 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A federal jury convicted a brother and sister and one other person today for conspiring to defraud financial institutions as part of a $15 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos, U.S. Attorney Paul J. Fishman announced.
The jury returned the guilty verdicts after five hours of deliberation following a four-week trial before U.S. District Judge Jerome B. Simandle in Camden federal court. Nancy Wolf-Fels, 57, of Toms River, New Jersey; Dwayne Onque, 46, of Belleville, New Jersey; and Mashon Onque, 43, of East Orange, New Jersey, were each convicted of one count of conspiracy to commit wire fraud. Dwayne Onque was also convicted of one count of conspiracy to commit money laundering.
According to the documents filed in this case and the evidence at trial:
The defendants and their conspirators schemed to defraud financial institutions by locating oceanfront condominiums overbuilt by financially distressed developers and negotiating a buyout price with the sellers. They then caused the sales prices for the properties – located in Wildwood Crest and North Wildwood, New Jersey, other locations in New Jersey and in Naples, Florida – to be much higher than the buyout price to ensure large proceeds. Other defendants helped conceal the true sales prices of certain properties through inflated sales contracts and finder’s fee agreements.
From 2007 through mid-2008, Wolf-Fels served as a loan officer at the Forked River Branch of the mortgage company, Mortgage Now. She and her conspirators originated six loan applications for unqualified buyers that contained false and fraudulent information. Working with her conspirators – including one who manufactured fake bank statements, retirement account statements and pay stubs to support the false loan applications – Wolf-Fels assembled the loan applications and sent them to victim financial institutions, which lent the unqualified buyers mortgage funds.
From late 2006 through mid-2007, Dwayne Onque served as a “straw buyer” of five properties in Middletown, New Jersey, and Wildwood, New Jersey. For each of the five properties, he signed false and fraudulent loan applications and closing documents that resulted in the release of more than $2 million of mortgage funds.During 2006 and 2008, Mashon Onque served as a title agent at Tri-State Title Agency in Montclair, New Jersey. She acted as the closing agent for fraudulent mortgage loans orchestrated by her conspirators, including Timothy Ricks and her brother, Dwayne Onque. The conspirators put together buyers and sellers in real estate transactions, and then filed false and fraudulent loan applications containing inflated income figures for the borrowers. After the mortgage lenders approved the loans, Mashon Onque prepared and signed fraudulent settlement statements that falsely claimed that the borrowers had made down payments to close the loans.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Wolf-Fels and Dwayne Onque are scheduled to be sentenced on Jan. 29, 2015. Mashon Onque is scheduled to be sentenced on Jan. 30, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s convictions.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel:
Wolf-Fels: Paul Urbania Esq., Shrewsbury, N.J.
Dwayne Onque: Peter Levin Esq., Philadelphia
Mashon Onque: Anne Singer Esq., Haddonfield, N.J.Justice Department Files Suit Against New Jersey Company for Adulterated and Misbranded Medical DevicesRead the Press Release
WASHINGTON – The Justice Department, on behalf of the Food and Drug Administration (FDA), has filed suit in the U.S. District Court for the District of New Jersey against Pharmaceutical Innovations Inc. and its president Gilbert Buchalter, New Jersey U.S. Attorney Paul J. Fishman and Acting Assistant Attorney General Joyce R. Branda for the department’s Civil Division, announced today.
According to the complaint, the defendants violated the Federal Food, Drug and Cosmetic Act (FDCA) by manufacturing and distributing adulterated and misbranded medical devices. The devices at issue are gels that hospitals and other caregivers use to take ultrasound scans. Under the FDCA, a device manufacturer must: comply with current good manufacturing practice requirements; obtain required premarket approval or clearance before distributing its devices and notify the FDA and follow-up on any reports of serious injuries or deaths associated with its devices. The government alleges that the company violated each of these requirements.
“Patients should be able to have confidence that the healthcare products they use are safe,” U.S. Attorney Fishman said. “Actions like the one we are taking here reinforce the law that manufacturers adhere to strict approval and production requirements. We are committed to stopping those who don’t.”
“Today’s action furthers the FDA’s mission of ensuring that all medical devices sold to hospitals and other caregivers are produced in conformance with current good manufacturing practice requirements,” said Acting Assistant Attorney General Branda. “Device manufacturers who undermine this mission will be held accountable.” (DRAFT)
The complaint alleges that FDA inspections at Pharmaceutical Innovations’ Newark, New Jersey, facility have identified numerous and repeated deviations from current good manufacturing practices, including that the company has failed to show that it: validated its dry heat sterilization and dry heat treatment processes; routinely monitors its water systems to ensure that the water is suitable for manufacturing medical devices and routinely sanitizes the tubing and connections of its water systems to ensure objectionable microorganisms do not reside in the inner piping surface. The complaint further alleges that Pharmaceutical Innovations has not sought FDA approval or clearance for the new ultrasound gels it has brought into the market. As a result, according to the complaint, the defendants’ products are adulterated and misbranded devices under the FDCA.
According to the complaint, in February 2012, a Michigan hospital reported that it had traced infections among 16 surgical patients to a specific gel made by Pharmaceutical Innovations. However, the company failed to submit a medical device report to the FDA after becoming aware of these infections as required by law. FDA testing on samples of that gel identified bacterial contamination, and after the United States filed a seizure lawsuit, relevant lots of Pharmaceutical Innovations’ ultrasound gel were seized by the U.S. Marshals Service.
The complaint alleges that, despite numerous warnings from FDA, the defendants have failed to bring their operations into compliance with the law. The Justice Department will seek a permanent injunction requiring the defendants to cease manufacturing, processing, packing, labeling, holding and distributing devices until they comply with the FDCA and applicable FDA regulations.
The FDA referred this matter to the Justice Department. The Consumer Protection Branch of the Civil Division and the U.S. Attorney’s Office for the District of New Jersey filed this case on behalf of the United States.
The government is represented by Trial Attorney Daniel Crane-Hirsch of the Consumer Protection Branch, Assistant U.S. Attorney Lucy Muzzy of the U.S. Attorney's Office's Health Care and Government Fraud Unit, and Associate Chief Counsel Julie Dohm of FDA's Office of Chief Counsel.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
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Pharmaceutical Innovations Complaint
Camden Man Admits Conspiracy to Distribute HeroinRead the Press Release
CAMDEN, N.J. – A Camden man today admitted his involvement in a heroin distribution ring, U.S. Attorney Paul J. Fishman announced.
Keenan Johnson, a/k/a “Super Star K,” a/k/a “K,” 30, pleaded guilty before U.S. District Court Judge Joseph E. Irenas to an information charging him with conspiring to distribute more than 100 grams of heroin.
According to documents filed in this case and statements made in court:
From December 2007 through June 2012, Johnson conspired with others to distribute and possess with the intent to distribute more than 100 grams of heroin.
The counts to which Johnson pleaded guilty carry a maximum potential penalty of 40 years in prison and a fine of $5 million. Under terms of the plea, Johnson must forfeit to the United States $ 52,380 seized from his residence, as well as four vehicles, jewelry, and a Glock 26 9mm semi-automatic handgun. Sentencing is scheduled for Jan. 16, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Resident Agency in Cherry Hill, N.J., under the direction of Special Agent in Charge Edward J. Hanko; and the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense attorney: Jose L. Ongay Esq., Camden‘Real Housewives of New Jersey’ Stars Sentenced to Prison for Conspiracy, Bankruptcy Fraud and Tax OffensesRead the Press Release
Forty-one Months for Giuseppe Giudice, 15 Months for Teresa Giudice
NEWARK, N.J. – Two of the stars of the television show “The Real Housewives of New Jersey” were sentenced today to prison terms for committing a string of crimes as part of a long-running financial fraud conspiracy, U.S. Attorney Paul J. Fishman announced.
Teresa Giudice, 42, and her husband, Giuseppe “Joe” Giudice, 44, both of Towaco, New Jersey, were sentenced to 15 months and 41 months in prison, respectively. Both defendants previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to several counts of the superseding indictment returned against them in July 2013. The Giudices each pleaded guilty to one count of conspiracy to commit mail and wire fraud, one count of bankruptcy fraud by concealment of assets, one count of bankruptcy fraud by false oaths, and one count of bankruptcy fraud by false declarations. Giuseppe Giudice also pleaded guilty to one count of failure to file a tax return. Judge Salas also imposed the sentences today.
Judge Salas ordered Teresa Giudice to report to the Bureau of Prisons on Jan. 5, 2015, to begin serving her sentence. Giuseppe Giudice will report to serve his sentence after his wife finishes serving her prison term.
“The Giudices together deceived financial institutions with patently false loan applications; were dishonest when they sought the protection of the bankruptcy court and hid assets and income from the trustee; and Giuseppe Giudice cheated the government by failing to pay taxes on years of significant income,” U.S. Attorney Fishman said. “When they pleaded guilty, both admitted swearing to statements they knew were lies. Prison is the appropriate penalty for these serious financial crimes.”
“The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General is pleased to join the U.S. Attorney’s Office and our law enforcement partners in this final phase of the prosecution,” Fred W. Gibson, FDIC’s Principal Deputy Inspector General, said. “Today’s sentences highlight the seriousness of offenses that undermine the integrity of the financial services industry. We are committed in our efforts to uncover such fraudulent schemes that cause harm to FDIC-insured institutions and to the Nation’s housing industry.”
“Reality hit home today for Giuseppe and Teresa Giudice,” Jonathan D. Larsen, Acting Special Agent in Charge, IRS-Criminal Investigation, Newark Field office, said. “They are now both convicted felons with prison sentences to serve. Choosing lies over the truth when dealing with the IRS, banks, and the bankruptcy court will not be tolerated.”
“Concealing assets and lying in a bankruptcy case are crimes, deserving of punishment,” Roberta A. DeAngelis, U.S. Trustee for Delaware, New Jersey and Pennsylvania (Region 3), said. “The Giudices remain responsible for paying their debts. They lost the protection our bankruptcy laws afford debtors because they broke the law to obtain it.”
According to documents filed in this case and statements made in court:
From September 2001 through September 2008, Giuseppe and Teresa Giudice engaged in a mail and wire fraud conspiracy in which they submitted fraudulent applications and supporting documents to lenders in order to obtain mortgages and other loans. The Giudices falsely represented on loan applications and supporting documents that they were employed and/or receiving substantial salaries when they were either not employed or not receiving such salaries.
In September 2001, Teresa Giudice applied for a $121,500 mortgage loan for which she submitted a loan application falsely claiming she was employed as an executive assistant. She also submitted fake W-2 forms and fake pay stubs purportedly issued by her employer. For a $361,250 mortgage loan that Teresa Giudice obtained in July 2005, she and Giuseppe Giudice prepared a loan application which falsely stated she was employed as a realtor and that she made a monthly salary of $15,000. In fact, Teresa Giudice was not employed at the time.
On Oct. 29, 2009, they filed a petition for individual Chapter 7 bankruptcy protection in U.S. Bankruptcy Court in Newark. Over the next few months, they filed several amendments to the bankruptcy petition. As part of the bankruptcy filings, the Giudices were required to disclose to the United States Trustee their assets, liabilities, income and any anticipated increase in income. The Giudices intentionally concealed businesses they owned, income they received from a rental property, and Teresa Giudice’s true income from the television show “The Real Housewives of New Jersey,” website sales, and personal and magazine appearances. The Giudices concealed their anticipated increase in income from the then-upcoming second season of the show. They also testified falsely under oath in bankruptcy proceedings when questioned about their assets and income.
Giuseppe Giudice also admitted that during tax years 2004 through 2008, he received income totaling $996,459 but did not file tax returns for those years.
In addition to the prison terms, Judge Salas sentenced Giuseppe and Teresa Giudice each to two years of supervised release, and ordered the couple to forfeit $414,588. Additionally, the judge fined Giuseppe Giudice $10,000 and fined Teresa Giudice $8,000.
Giuseppe Giudice was advised by the court that he faces deportation after serving his sentence. That decision will be made by U.S. Immigrations and Customs Enforcement following completion of his prison sentence.
U.S. Attorney Fishman credited special agents of the FDIC-OIG New York, under the direction of Principal Deputy Inspector General Gibson; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Larsen; and Region 3 U.S. Trustee DeAngelis and the Newark office of the U.S. Trustee, with the investigation.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Criminal Division, and Counsel to the U.S. Attorney Rachael A. Honig, in Newark.
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Defense counsel:
Teresa Giudice: Henry E. Klingeman Esq., Newark
Giuseppe Giudice: Miles Feinstein Esq., Clifton, N.J.Leader of Hudson County, N.J., Set of Violent International Street Gang Admits Murder ConspiracyRead the Press Release
NEWARK, N.J. – A member of the international criminal street gang Mara Salvatrucha (also known as “MS” or “MS-13”), today admitted trying to kill a rival gang member, U.S. Attorney Paul J. Fishman announced.
Marvin Garcia-Cruz, a/k/a “Buffalo,” 31, of West New York, New Jersey, pleaded guilty today before U.S. District Court Judge Stanley R. Chesler to one count of conspiring to commit murder in aid of racketeering and one count of conspiring to possess firearms in furtherance of a crime of violence. Garcia-Cruz was previously indicted in July 2014 with numerous other top-ranking members of MS-13 for various racketeering crimes.
According to documents filed in this case and statements made in court:
Garcia-Cruz admitted to being the leader of an MS-13 set, or “clique,” operating in Hudson County, known as “Pinos Locos Salvatrucha.” In November 2013, leaders of several MS-13 cliques operating in northern New Jersey hatched a plot to murder rival gang members. Before carrying out the plot, these local gang leaders sought authorization from some of the highest-ranking members in the gang’s national and international leadership – including Joel Antonio Cortez, a/k/a “Pee Wee,” who served as a top deputy to Jose Juan Rodriguez-Juarez, a/k/a “Sacerdote,” the leader of Mara Salvatrucha in the United States. Law enforcement learned of the murder plot during the course of the investigation and arrested gang members, including Garcia-Cruz, before it could be carried out.
The murder conspiracy count to which Garcia-Cruz pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The firearm conspiracy count carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 21, 2015.
Aside from Garcia-Cruz, eight defendants – including Cortez and Rodriguez-Juarez – remain in federal custody, awaiting trial on the indictment pending before Judge Chesler.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea. The investigation involved multiple FBI Field Offices, with substantial assistance provided by the FBI Field Office in Los Angeles. Fishman also thanked the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace Park, for their work on this case. He also acknowledged the U.S. Attorney’s Office for the Central District of California for its assistance in the ongoing investigation.
The government is represented by Assistant U.S. Attorneys James M. Donnelly and Andrew J. Bruck of the U.S Attorney’s Office Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the other defendants are presumed innocent unless and until proven guilty.
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Defense Counsel: Pierre Eloi Esq., Orange, New Jersey
Rodriguez-Juarez, Jose Juan et al. Indictment
Member of N.J. Army National Guard Arrested for Alleged Sexual AbuseRead the Press Release
TRENTON, N.J. – A Hunterdon County, New Jersey, man was arrested at his home by U.S. Marshals this morning on a charge that he allegedly sexually abused a woman at Joint Base McGuire-Dix-Lakehurst, U.S. Attorney Paul J. Fishman announced.
Ioannis V. Karazoupis, 27, of Flemington, New Jersey, a member of the N.J. Army National Guard, is charged by indictment with sexual abuse. He is scheduled to appear this afternoon before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.
According to the indictment:
On May 4, 2014, Karazoupis engaged in a sexual act with a person who at the time was incapable of appraising the nature of the conduct and was physically incapable of declining participation and communicating unwillingness to engage in a sexual act. At the time of the alleged offense, Karazoupis’ National Guard unit was at Joint Base McGuire-Dix-Lakehurst for training.
The sexual abuse charge with which Karazoupis is charged carries a maximum potential penalty of life in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the U.S. Army Criminal Investigation Command, under the leadership of Special Agent in Charge John P. Gueli, with the investigation leading to the indictment.
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 indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: Jerome A. Ballarotto Esq., Trenton, N.J.
Karazoupis, Ioannis Indictment
Corrections Officer Admits Accepting Cash Bribes in Exchange for Smuggling Marijuana and Cell Phones into Federal Pretrial Detention FacilityRead the Press Release
TRENTON, N.J. – An Essex County corrections officer today admitted his involvement in a scheme to smuggle marijuana, cell phones and tobacco into the Essex County Jail, a federal pretrial detention facility, in exchange for cash bribe payments, U.S. Attorney Paul J. Fishman announced.
Stephon Solomon, 26, of Irvington, New Jersey, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of conspiring to commit extortion under color of official right.
According to the documents filed in this and other cases and statements made in court:
On multiple occasions between October 2013 and May 2014, Solomon, a corrections officer at the Essex County 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. Darsell Davis, 29, and Dwayne Harper, 30, friends of Nichols, aided in the smuggling scheme by collecting the contraband to be smuggled into the jail. Solomon received the contraband and cash bribes from Davis and then smuggled the contraband to Nichols, who ultimately sold some of the marijuana and cell phones to other inmates. The inmates purchasing marijuana and cell phones from Nichols had their friends and family pay for the items by sending Western Union money transfers to Nichols, who enlisted Davis and others to retrieve those payments for him. Charges against Nichols, Davis and Harper are still pending.
The charge for conspiring to commit extortion under color of official right to which Solomon pleaded guilty carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. Under terms of the plea agreement, Solomon will forfeit $4,000, representing his proceeds from the conspiracy. Sentencing is scheduled for Jan. 21, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and investigators with the Internal Affairs Division of Essex County Jail, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Rob Frazer of the Criminal Division, Organized Crime/Gangs Unit, in Newark.
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Solomon, Stephon Information
U.S. Attorney Paul J. Fishman Announces Department of Justice Hiring Grants to Help Reduce Violence and Protect Schools in New JerseyRead the Press Release
Grants Awarded to Hire School Resource Officers, Reduce Violence
and Address Other Critical Law Enforcement NeedsNEWARK, N.J. – U.S. Attorney Paul J. Fishman, following yesterday’s announcement by the U.S. Department of Justice Office of Community Oriented Policing Services (COPS) of nearly $124 million in nationally awarded funding, today announced the specific funding awards for the District of New Jersey.
Ten cities and counties in New Jersey will receive more than $12.2 million in funding awards aimed at creating, and in some cases protecting, 87 law enforcement positions.
“Local law enforcement is in the streets every day working to reduce violent crime and create safer neighborhoods,” said U.S. Attorney Fishman. “This federal funding recognizes the importance of community policing as a critical piece of our crime prevention strategy. Putting more cops on the beat helps to build community trust, and that is one of the most effective things we can do to combat crime.”
The grantees and amounts awarded include:
Recipient
Total Officers Awarded
Estimated Award Amount
6
$750,000
Camden County Police Department
15
$3,248,200
Irvington, Township of
8
$1,000,000
Jersey City
15
$1,875,000
Long Branch Police Department
5
$625,000
Newark, City of
15
$1,875,000
Paramus Police Department
5
$623,592
Phillipsburg, Town of
1
$125,000
Trenton, City of
12
$1,500,000
Wildwood Police Department
5
$625,000
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community police officers. The program provides salaries and benefits for officer and deputy hires for three years.
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
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Philadelphia Business Owner Found Guilty of Hiring Hitman, Related CrimesRead the Press Release
CAMDEN, N.J. – A federal jury in Camden convicted a Philadelphia business owner today for arranging a murder for hire that led to a shooting in Atlantic City, New Jersey, U.S. Attorney Paul J. Fishman announced.
Ronald Galati, 63, was found guilty of all four counts in the indictment against him: conspiracy to commit murder for hire; conspiracy to possess and use a firearm during a crime of violence; murder for hire; and aiding and abetting the possession and use of a firearm during a crime of violence.
Galati was convicted following a two-week trial before U.S. District Judge Joseph H. Rodriguez in Camden federal court. The jury deliberated for five hours before returning its verdict.
“Ronald Galati hired two men to kill his daughter’s boyfriend outside his home,” said U.S. Attorney Fishman. “This reprehensible conduct has no place in in civilized society. We are grateful to the jury for bringing Galati to justice.”
According to documents in this case and the evidence at trial:
Beginning sometime before June 2013, Galati began saying that he was going to kill his friend, Andrew Tuono. Galati told witnesses he would “kill him myself, I will strangle him, I will poke his eyes out” and “I am going to stab him right in the forehead with this thing,” referring to a pointed object. In June 2013, Galati, members of Galati’s family and associates had dinner with Tuono at a restaurant in Northfield, New Jersey. During dinner, Galati took Tuono into the kitchen and threatened to kill him.
Galati owned and operated American Collision & Automotive Center in Philadelphia, where Jerome Johnson, 45, also of Philadelphia, sometimes worked for him. Galati and Johnson approached two associates, Ronald Walker, 49, of Philadelphia, and Alvin Matthews, 47, and enlisted them to kill Tuono in a manner that would not implicate Galati. Galati promised to pay Walker $20,000 to shoot and kill Tuono.
Galati provided Johnson with several addresses associated with the intended victim. Johnson and Walker went to Tuono’s in Philadelphia.
Johnson gave Matthews a Colt .25 caliber semi-automatic handgun he had obtained near 60th Street in Philadelphia. On Nov. 30, 2013, Johnson telephoned Walker and Matthews and arranged to meet them. Galati called Johnson and told him that Tuono was in New Jersey.
Thereafter, Johnson drove Walker and Matthews to the area where Tuono lived in Atlantic City. During the drive, Johnson told Walker and Matthews that if there was a woman with Tuono, she was not to be harmed. While in Johnson’s vehicle, Matthews gave Walker the gun Johnson had given Matthews the day before. Johnson then dropped Walker and Matthews off around the corner from Tuono’s home.
Walker and Matthews then stalked Tuono from an alley adjacent to the residence. When Tuono and a woman came out of the house, Walker and Matthews approached them and got Tuono’s attention. Walker shot Tuono multiple times. The victim was transported by ambulance from the scene of the shooting to Atlantic City Medical Center for emergency surgery, where he spent six days.
Walker and Matthews were arrested as they fled from the scene.
The two conspiracy counts and the murder for hire count each carry a maximum potential penalty of 20 years in prison. The aiding and abetting firearms count carries a mandatory minimum consecutive prison sentence of 10 years and a maximum of life in prison. Each count also carries a maximum $250,000 fine. A date for sentencing has not yet been set.
Walker, Matthews and Johnson have each pleaded guilty to related offenses and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Aaron T. Ford; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge George P. Belsky; and detectives of the Atlantic City Police Department, under the direction of Chief Henry White, for the investigation the case. He also thanked the Philadelphia District Attorney’s Office, under the direction of District Attorney R. Seth Williams, detectives of the Philadelphia Police Department, under the direction of Commissioner Charles Ramsey; and troopers of the Pennsylvania State Police, under the direction of Commissioner Frank Noonan, for their assistance.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Anthony Voci Esq., PhiladelphiaOfficer of Middlesex, N.J. Union Admits Accepting Bribes to Circumvent Collective Bargaining AgreementRead the Press Release
NEWARK, N.J. – A union officer for Local 594 of the Laborers International Union of North America (LIUNA) today admitting accepting $8,000 in bribes to allow a demolition contractor to use non-union workers on a New Jersey building project in violation of their collective bargaining agreement (CBA), U.S. Attorney Paul J. Fishman announced.
John Adams, 58, of Bridgewater, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of accepting between $5,000 and $10,000 in bribes from an employer working on the New York Times building in Edison, New Jersey.
According to the documents filed in this case and statements made in court:Adams is the business manager for Laborers Local 594 in Middlesex County, New Jersey. When the New York Times building in Edison was renovated in 2009, DAMICO Inc. was hired to do interior demolition work. DAMICO was obligated to use all union workers pursuant to a CBA with Local 594. A collective agreement regulates employee duties, employer responsibilities, and health care and pension benefits. Adams was responsible for making sure DAMICO followed the CBA.
During the 10-month period, ADAMS was paid on four occasions approximately $8,000 in total to permit DAMICO to use up to 18 non-union workers on a weekly basis. Consequently, DAMICO cost Local 594 union dues and benefit plan contributions.
As the project was concluding, LIUNA officials learned of the CBA violations by DAMICO and filed an arbitration claim against the company. In May 2013, an arbitrator ruled in favor of the union and charged DAMICO’s owners $500,000 in restitution for lost wages and benefit plan remittances. Adams is responsible, along with the DAMICO owners, for repaying $204,000 in losses to the union’s benefit plan.
The bribery charge to which Adams pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 5, 2015.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, and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea.
The government is represented by V. Grady O’Malley, Senior Litigation Counsel of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
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Defense counsel: William J. Hughes Esq., Atlantic City, New Jersey
Adams, John Information
Man Who Fled Newark Bank Robbery in A Taxi Pleads GuiltyRead the Press Release
NEWARK, N.J. - An Essex County man who left the scene of the crime by hailing a cab admitted today to robbing the New York Community Bank in Newark, U.S. Attorney Paul J. Fishman announced.
Willie Chestnut Jr., 61, of Newark, pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of bank robbery.
According to documents filed in this case and statements made in court:
Chestnut robbed the New York Community Bank in Newark on Oct. 11, 2013, by intimidating the teller and another bank employee who attempted to intercede. He approached the teller and told her he needed to make a withdrawal. After the teller handed him a withdrawal slip, Chestnut demanded bills from the top teller drawer.
Chestnut was arrested by officers of the Newark Police Department shortly after the robbery fleeing the scene in a taxi cab, wearing the same clothes he wore during the robbery, with the stolen money and the withdrawal slip in his pocket.
The bank robbery count carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gain or loss from the offense. Sentencing is currently scheduled for Jan. 5, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Newark Police Department for its contribution.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Assistant Federal Public Defender Lisa Mack Esq., NewarkChestnut Willie Jr Information.pdf
Georgia Man Sentenced to 27 Months in Prison for Defrauding Investors Out of More Than $800,000Read the Press Release
NEWARK, N.J. – A Georgia business owner who held himself out to be an investor and loan broker was sentenced today to 27 months in prison for his role in defrauding investors of more than $800,000, U.S. Attorney Paul J. Fishman announced.
Ronnie Singleton, 41, of Lithonia, Ga., previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count One of an indictment charging him with conspiring to commit wire fraud. Judge Salas imposed the sentence today in Newark federal court.According to documents in this case and statements made in court:
Singleton owned and operated a business called Wonder World Inc. and held himself out to be a financier. Using the Internet and telephone, he met his codefendant, Michael Woodruff, 66, of Peeples Valley, Ariz., and the two agreed to work together to find investors. Singleton falsely represented that he would providing financing for real estate deals through a “European system of financing” that involved leasing financial instruments. Singleton received more than $800,000 in investors’ funds, $360,000 of which he wired to Woodruff. Instead of obtaining the promised financing for the real estate projects, Singleton instead used the investors’ money for his own personal benefit.
In addition to the prison term, Judge Salas sentenced Singleton to three years of supervised release and ordered him to pay restitution of $830,500 in restitution. Woodruff previously pleaded guilty in Arizona federal court to his role in the scheme and is awaiting sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jenny Kramer of the Economic Crimes Unit.
The charges and allegations against Woodruff are merely accusations and he remains innocent unless and until proven guilty.
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Defense counsel: Paul Condon Esq., Jersey City, N.J.Mercer County, N.J., Woman Sentenced to 32 Months in Prison for Narcotics DistributionRead the Press Release
TRENTON, N.J. - A Lawrenceville, New Jersey, woman was sentenced today to 32 months in prison for distributing oxycodone-based prescription pills from a steakhouse in Trenton, U.S. Attorney Paul J. Fishman announced.
Mary Manfredo, 67, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an indictment charging her with one count of conspiracy to distribute and possess with intent to distribute oxycodone. Judge Shipp imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Manfredo admitted that from May 2011 through July 2012, she conspired with Joseph Giorgianni, a/k/a “Jo Jo,” 65, of Ewing Township, New Jersey; Charles Hall III, 51, of Trenton; Anthony DiMatteo, 33, of Trenton; Giuseppe A. Scordato, 49, of Hamilton, New Jersey; and others to illegally acquire and distribute oxycodone-based prescription pills. JoJo’s Steakhouse, a Trenton restaurant, served as a front for the conspiracy. Manfredo admitted that she received pills from Giorgianni and Hall at JoJo’s Steakhouse and then gave them to DiMatteo and Scordato. After selling the pills, DiMatteo and Scordato gave a portion of the proceeds to Manfredo, who later gave the money to Giorgianni and Hall.
For their roles in the conspiracy, DiMatteo and Scordato were sentenced to 87 months in prison and 48 months in prison, respectively.
Giorgianni and Hall also were sentenced – to 78 months in prison and 48 months in prison, respectively – after pleading guilty to the oxycodone distribution conspiracy and separate charges, including conspiring with the former Trenton Mayor Tony Mack to extort bribes and kickbacks in connection with a Trenton parking garage project.
In addition to the prison terms, Judge Shipp sentenced Manfredo to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation.
The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Trenton and Camden, respectively.14-346
Defense counsel: Anthony Simonetti Esq., Hightstown, New JerseyDepartment of Justice Announces Camden, N.J., as Selected City for New Violence Reduction NetworkRead the Press Release
New Partnership Brings Together Federal and Local Law Enforcement,
Community Leaders to Reduce Violent Crime
WASHINGTON –Attorney General Eric Holder and Assistant Attorney General Karol V. Mason for the Office of Justice Programs today launched the Violence Reduction Network (VRN), a national comprehensive approach to reduce violent crime in communities around the country. The Justice Department’s ability to provide intensive training and cutting-edge technical assistance will give local officials and law enforcement executives in each of the partner communities the support they need to advance anti-violence strategies.
Camden, New Jersey, was selected as one of six cities slated to receive resources as part of the effort. Paul J. Fishman, U.S. Attorney for the District of New Jersey, was invited along with United States Marshal for the District of New Jersey Juan Mattos Jr.; Special Agents in Charge George P. Belsky of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, and Carl J. Kotowski of the Drug Enforcement Administration, New Jersey Division; J. Scott Thomson, Chief of the Camden County Police Department; and other federal, state, and local law enforcement officials working in Camden and around the country to participate in the three-day discussion on crime reduction strategies.
“This new ‘all-hands’ approach to curbing endemic violence is founded on the recognition that our efforts are most effective when all criminal justice leaders stand united,” said Attorney General Holder. “It’s predicated on the notion that – although violent crime is in some ways a fundamentally local problem – it is not one that any community can meet in isolation.”We have seen extraordinary things from what we call C-4, the unprecedented fusion center in Camden that brings together federal, state and local partners in a truly collaborative approach to fighting violent crime,” said U.S. Attorney Fishman. “It is gratifying that Camden has been selected as a partner in the VRN, so we will be able to build on what we’ve started and ensure federal resources are being used as effectively as possible to create safer communities. We have terrific local, county, state and federal partners who share our mission to make Camden the safe city its residents deserve”
The Violence Reduction Network will help localities access a broad spectrum of Justice Department resources – empowering the federal government to strengthen partnerships and collaboratively tackle persistent challenges caused by violent crime. The partnering cities announced today are Camden, New Jersey; Chicago, Illinois; Detroit, Michigan; Oakland/Richland, California; and Wilmington, Delaware.
The VRN summit’s agenda is dedicated to collaborative working sessions analyzing each city’s violence challenges and discussing the variety of department resources available to address the issues. Following the summit, the department will work with police chiefs and city leaders, along with leading criminal justice researchers and practitioners, to develop effective approaches to accomplishing each city’s violence reduction strategies.
“Through our partnerships with local leaders and practitioners and the wide range of resources we have available to address America’s public safety challenges, the Department of Justice is putting its full support behind violence reduction efforts in these five cities,” said Assistant Attorney General Mason. “I am eager to begin working with each of the sites and to help define a way forward to safer, healthier communities.”
Even with reports of national violent crime decreasing, in too many communities, crime rates have remained unacceptably high, particularly in areas where social ills like poverty, unemployment, and a lack of opportunity lead to tragic circumstances in which systemic violence can easily take root.
The launch of VRN is a result of the Obama administration’s continuing efforts to address violence in communities across the country. Nearly a year ago, President Obama convened a meeting at the White House with 18 mayors to discuss strategies for reducing youth violence. Following that meeting, Attorney General Holder sat down with mayors and police chiefs to talk about how the federal government can better support local efforts.
Representatives from VRN partner federal agencies include the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco and Firearms, the United States Marshals Service, the Drug Enforcement Administration, the Executive Office of the United States Attorneys, the Community Oriented Policing Services Office, the Office on Violence Against Women and the Office of Justice Programs.
For more VRN information visit www.bja.gov/Programs/VRN.html.14-347
Two Mercer County, N.J., Men Sentenced to Prison for Conspiring with Former Trenton, N.J., Mayor to Extort BribesRead the Press Release
Sentences Also Consider Separate Extortion, Narcotics Distribution and Weapons Charges
TRENTON, N.J. - Two Mercer County, New Jersey, men were sentenced today for conspiring with the former Mayor of Trenton and others to extort bribes and kickbacks in connection with a Trenton parking garage project, and for unrelated drug charges, U.S. Attorney Paul J. Fishman announced.
Joseph Giorgianni, a/k/a “Jo Jo,” 65, of Ewing Township, New Jersey, and Charles Hall III, 51, of Trenton, were sentenced to 78 and 48 months in prison, respectively. U.S. District Judge Michael A. Shipp imposed the sentences today in Newark federal court.
Giorgianni previously pleaded guilty before Judge Shipp to an indictment charging him with one count of conspiring with former Trenton Mayor Tony F. Mack, 48, Ralphiel Mack, 41, (Tony Mack’s brother) both of Trenton, Hall and others to obstruct interstate commerce by extorting individuals under color of official right in connection with the development of an automated parking garage. Giorgianni also pleaded guilty to one count of extorting individuals under color of official right in connection with the administration of a power washing contract, as well as charges contained in a separate indictment, including one count of conspiracy to distribute and possess with intent to distribute oxycodone and one count of possessing a firearm as a felon.
Hall previously pleaded guilty before Judge Shipp to an information charging him with one count of conspiring to obstruct interstate commerce by extorting individuals under color of official right. Hall also pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute oxycodone.
According to documents filed in this case and statements made in court:
Tony Mack, Ralphiel Mack, Hall, and Giorgianni conspired to accept approximately $119,000 in cash and other valuables – actually accepting $54,000 and planning to accept the rest – from two cooperating witnesses. In exchange for the payments, Tony Mack assisted them in their efforts to acquire a city-owned lot on East State Street to develop an automated parking garage. The scheme included a plan for the city of Trenton to sell the lot for far less than one of the cooperating witnesses was willing to pay – diverting $100,000 of the suggested purchase amount as a bribe and kickback payment to Giorgianni and Tony Mack. The mayor authorized and directed a Trenton official responsible for disposition of city-owned land to offer the East State Street lot to one of the witnesses for $100,000, significantly less than the amount originally proposed, so the rest could be taken as a bribe.
The defendants went to great lengths to conceal their corrupt activity and keep Tony Mack “safe” from law enforcement. For example, Giorgianni and Ralphiel Mack acted as intermediaries, or “buffers,” who accepted cash payments for Tony Mack’s benefit.
To conceal the corrupt arrangement, the defendants avoided discussing matters related to the scheme over the telephone. When those matters were discussed, they used code words and aliases, including “Uncle Remus,” which both Giorgianni and Hall regularly used to communicate to Tony Mack that a corrupt payment had been received. The defendants also concealed their activities by holding meetings concerning the corrupt activity away from Trenton City Hall, including a restaurant maintained by Giorgianni known as JoJo’s Steakhouse.
In addition to the parking garage bribe and extortion payments, Giorgianni and Hall admitted their involvement in a narcotics distribution conspiracy with Mary Manfredo, 67, of Lawrenceville, New Jersey, and others from May 2011 to July 2012. Hall said he obtained, in coordination with Giorgianni, 13 prescriptions for oxycodone-based pain medication from a doctor in Nutley, New Jersey, which included a total of 1,560 pills. JoJo’s Steakhouse served as a front where oxycodone pills and drug proceeds were received and distributed.
Also, on July 18, 2012, Giorgianni, a convicted felon, was found in possession of four guns, including three pistols and a pump-action shotgun.
Tony F. Mack and Raphiel Mack, both convicted following a five-week trial in February 2014, were sentenced to serve 58 months in prison and 30 months in prison, respectively.
In addition to the prison terms, Judge Shipp sentenced Giorgianni and Hall each to serve three years of supervised release.
Manfredo pleaded guilty to conspiring with Giorgianni, Hall and others to distribute and possess with intent to distribute oxycodone. Manfredo awaits sentencing.
U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation.
The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Trenton and Camden, respectively.
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Defense counsel: Jerome A. Ballarotto Esq., TrentonTwo Indicted for Alleged Conspiracy to Sell Weapons Supposedly Owned by Family of Saddam HusseinRead the Press Release
NEWARK, N.J. - A federal grand jury in Newark returned an indictment today charging two men with conspiring to sell seven firearms in New Jersey believed to have been stolen and smuggled out of Iraq after once belonging to the family of Saddam Hussein, U.S. Attorney Paul J. Fishman announced.
David Phillip Ryan, 50, of Miami, Florida, and Carlos Quirola-Ordonez, a/k/a “Julio Antonio Gonzalez,” a/k/a “Manny,” 57, of New Milford, New Jersey, are each charged with one count of conspiring to transport stolen firearms. Ryan is also charged with one count of transporting stolen property in interstate commerce.
According to the indictment and other documents filed in Newark federal court:
In April 2012, law enforcement received information that valuable firearms allegedly belonging to members of the family of the late Iraqi president Saddam Hussein were available for sale. The weapons were kept in Florida while attempts were made by Ryan, Quirola-Ordonez and others to find buyers in New Jersey. During the course of the conspiracy, seven firearms – which were appraised as a collection to be worth between $250,000 to $350,000 – were shipped to New Jersey for viewing by potential buyers.
Federal law enforcement officers seized the following firearms in the course of the investigation:
- One Coonan Arms Inc., .357 semi-automatic pistol, nickel finish, made in St. Paul, Minn., with gold inlay and a medallion “QS” on left side grip (believed to be the initials of Qusay Saddam Hussein al-Tikriti, the second son of former Iraqi President Saddam Hussein);
- One Korth, .357 magnum revolver (six shot) stamped “Made in W. Germany Waffenfabrik Koth Ratzeburg/LBG,” with gold inlay, black finish, wood grips, which displays a drawing of a wild boar;
- One Korth, .357 magnum, revolver (six shot) stamped “Made in W. Germany Waffenfabrik Koth Ratzeburg/LBG,” with gold inlay, black finish, wood grips, which displays a drawing of a moose;
- One Chinese State Factories type 64 pistol, .32 caliber semi-auto pistol, black finish, with Yemen flag icon on both sides of grip and Arabic writing on the slide;
- Two Cosmi, 12 gauge shotguns, break top, single barrel;
- One Llama Semiautomatic .45 ACP pistol with gold leaf and gold inlays, hand engraved, bearing the initials “QS”
The conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine. The unlawful transportation of stolen property in interstate commerce count with which Ryan is also charged carries a maximum penalty of 10 years in prison and a $250,000 fine.
Four men, including Ryan and Quirola-Ordonez, were originally charged by complaint with related offenses. The two other individuals, Howard Blumenthal and Karlo Sauer, have pleaded guilty to their roles in this conspiracy and await sentencing.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of George P. Belsky; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to the charges.
The government is represented by Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense counsel:
David Philip Ryan: Michael V. Gilberti Esq., Red Bank, New Jersey
Carlos Manuel Quirola-Ordonez: Miles Feinstein Esq., Clifton, New JerseyRyan, David Phillip and Quirola-Ordonez, Carlos Indictment
Mastermind of Online Counterfeit Card Retail Shop Pleads GuiltyRead the Press Release
Fakeplastic.net Responsible for More than $30 Million in Fraud
NEWARK, N.J. – The mastermind of a one-stop online shop selling counterfeit payment cards and holographic overlays used by criminals to create fake driver’s licenses admitted today to running the fakeplastic.net website, which was responsible for an estimated $30 million in fraud, U.S. Attorney Paul J. Fishman announced.
Sean Roberson, 39, of Palm Bay, Florida, pleaded guilty today before U.S. Magistrate Judge James B. Clark, III in Newark federal court, to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit fraud and related activity in connection with authentication features.
According to documents filed in this case and statements made in court:
The fakeplastic.net website was a one-stop online shop operated by Roberson and used by criminals across the country to purchase customized counterfeit credit and debit cards used for unauthorized transactions with stolen payment card data, and holographic overlays used to make fake driver’s licenses.
During his guilty plea proceeding, Roberson admitted he began selling counterfeit cards and related items as early as April 2011 and launched the fakeplastic website in June 2012. Roberson owned and operated the website with the assistance of Vinicio Gonzalez and Hugo Rebaza. Roberson admitted that he and his conspirators fulfilled orders for approximately 69,000 counterfeit payment cards, more than 35,000 holographic stickers used to make counterfeit cards appear more legitimate and more than 30,000 state identification card holographic overlays. The orders – more than 3,600 parcels – were shipped through the U.S. mail.
Law enforcement estimates the losses associated with just the counterfeit payment cards trafficked by Roberson and his conspirators at more than $30 million. During his guilty plea, Roberson admitted he personally made more than $1.7 million from the scheme.
The fakeplastic website was used by various groups of criminals across the country often referred to as “carding” or “cash out” crews. These crews bought stolen payment card numbers and related information – referred to as “track data” or “dumps” – which typically appear on the magnetic stripe on the back of legitimate payment cards. Illegal vendors of that information usually get it through hacking or skimming operations involving the installation of specialized equipment at ATM locations or point-of-sale terminals. The stolen data was ultimately put on a counterfeit payment cards, purchased from Roberson, and used to make unauthorized transactions.
Both Gonzalez and Rebaza have pleaded guilty to charges in the Western District of North Carolina relating to their activity in connection with the website.
The conspiracy to commit wire fraud count carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. The conspiracy to commit fraud and related activity in connection with authentication features count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. A date for sentencing has not yet been determined.
U.S. Attorney Fishman credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates for the investigation leading to Roberson’s guilty plea.
The Computer Crimes and Intellectual Property Section (CCIPS) of the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Western District of North Carolina have been partners in the prosecution.
The government is represented by Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section and Barbara Ward of the office’s Asset Forfeiture and money laundering unit.
14-343Defense counsel: Assistant Federal Public Defender Patrick McMahon Esq., Newark
Roberson, Sean Information
Michael "the Situation" and Marc Sorrentino Indicted for Tax Crimes Involving $8.9 Million IncomeRead the Press Release
NEWARK, N.J. - Television personality Michael “The Situation” Sorrentino and his brother Marc Sorrentino are expected to appear in federal court this afternoon to face an indictment alleging they did not properly pay taxes on $8.9 million in income Michael Sorrentino received from promotional activities, U.S. Attorney Paul J. Fishman announced.
Michael Sorrentino and his brother Marc Sorrentino are charged with one count of conspiracy to defraud the United States. Marc and Michael Sorrentino also are charged with three and two counts, respectively, of filing false tax returns for 2010 through 2012. Michael Sorrentino faces an additional count for allegedly failing to file a tax return for 2011. The defendants are expected to surrender to special agents of IRS-Criminal Investigation and United States Marshals prior to their court appearance before U.S. Magistrate Judge Steven C. Mannionin Newark federal court.
“According to the indictment, Michael and Marc Sorrentino filed false tax returns that incorrectly reported millions made from promotions and appearances,” said U.S. Attorney Paul J. Fishman. “The brothers allegedly also claimed costly clothes and cars as business expenses and funneled company money into personal accounts. The law is absolutely clear: telling the truth to the IRS is not optional.”
“Most individuals file truthful tax returns and pay their fair share of taxes. However, as alleged in today's indictment, rather than living in reality and reporting their true income, Michael Sorrentino and his brother Marc created the illusion that they earned less income by filing false and fraudulent tax returns,” stated Jonathan D. Larsen, Acting Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office. “No matter what your occupation or status in life, if you attempt to cheat on your taxes for personal financial gain, you face real consequences including criminal prosecution and a possible prison sentence.”
Both Michael and Mark Sorrentino are expected to be arraigned on the indictment before U.S. District Judge Susan D. Wigenton in Newark federal court on Oct. 6, 2014.
According to the indictment returned today:
Michael Sorrentino is a reality television personality who first gained fame on “The Jersey Shore,” which appeared on the MTV network. Marc Sorrentino is Michael’s brother and manager. The pair conspired to fail to pay all federal income tax owed on approximately $8.9 million earned by Michael Sorrentino between 2010 and 2012. This income was largely received by two companies controlled by the brothers: MPS Entertainment, LLC and Situation Nation, Inc.
As part of the conspiracy, the brothers submitted or caused to be submitted to the IRS false documents which understated the gross receipts received by the brothers and the two companies. The brothers also submitted false personal tax returns which failed to report all of the income they received, and Michael failed to file a personal tax return in 2011, despite earning $1,995,757 that year.
As part of the conspiracy, the brothers also fraudulently claimed millions of dollars in personal expenses as business expenses, including payments for high-end vehicles and clothing, personal grooming expenses, and distributions – or direct payments – from the businesses to personal bank accounts.
The conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine; the filing false tax return counts each carry a maximum potential penalty of three years in prison and a $250,000 fine. The count charging Michael Sorrentino with failing to file a tax return carries a maximum potential penalty of one year in prison and a $100,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Larsen, with the investigation.
The government is represented by Assistant U.S. Attorneys Evan S. Weitz and Jonathan W. Romankow of the U.S. Attorney's Office Criminal Division in Newark, as well as Trial Attorney Tino Lisella of the Tax Division of the United States Department of Justice.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.14-341
Defense counsel:
Michael Sorrentino: Richard Sapinski Esq., Newark, N.J.
Marc Sorrentino: Chris Adams Esq., Colts Neck, N.J.Sorrentino, Michael and Marc Indictment
Hudson County, New Jersey Woman Admits Valentine's Day Bank Heist Was Part of Robbery SpreeRead the Press Release
NEWARK, N.J. - A woman today admitted committing three bank robberies over a three week span in Newark and Harrison, New Jersey – including one on Valentine’s Day, U.S. Attorney Paul J. Fishman announced.
Valeria Parziale, 35, of Harrison, N.J., pleaded guilty before U.S. Magistrate Judge Michael A. Hammer in Newark federal court to an information charging her with robbing a Wells Fargo Bank in Newark on Feb. 14, 2014. Parziale also admitted committing two other robberies.
According to the documents filed in this case and statements made in court:
Parziale robbed a Valley National Bank in Harrison on Jan. 30, 2014, a Wells Fargo bank in Newark on Feb. 14, 2014, and a Popular Community Bank in Newark on Feb. 20, 2014. At each robbery, Parziale handed the teller a note demanding cash and threatening the use of a gun. On one occasion, she wore a wig to disguise her identity.
On Feb. 24, 2014, Parziale was located in Newark and was in possession of a wig and a note similar to the one used in the prior bank robberies. She has been in custody since that time.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 23, 2014.
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 arrest and charges. He also thanked the Newark, Kearny, and Harrison Police Department for their excellent work in this case.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Assistant Federal Public Defender John Yauch Esq., Newark
Parziale, Valeria Information
New Jersey Transit Employee Admits Extorting Money from VendorsRead the Press Release
NEWARK, N.J. – A New Jersey Transit employee admitted today to obtaining money from New Jersey Transit vendors to use his official authority and influence to help them get work with New Jersey Transit, U.S. Attorney Paul J. Fishman announced.
William Talerico, 55, of Beachwood, New Jersey, pleaded guilty to an information charging one count of affecting commerce by extortion under color of official right. Talerico entered his guilty plea before U.S. District Judge William H. Walls in Newark federal court.
According to documents in this case and statements made in court:
From at least around January 2006 to April 2012, Talerico served as a supervisor of stations responsible for overseeing the maintenance and custodial functions for certain New Jersey Transit facilities, including stations on New Jersey Transit’s North Jersey Coast Line and Northeast Corridor.
During this time period, Talerico agreed to accept and accepted corrupt payments in cash from numerous New Jersey Transit vendors. In exchange, Talerico agreed to, and did, exercise official authority and influence to assist the New Jersey Transit vendors with securing work from New Jersey Transit. In addition, Talerico acted as an intermediary through which corrupt payments were given to a New Jersey Transit supervisor. Talerico received more than $70,000, for himself and the supervisor, in corrupt payments of cash and other items of value from these New Jersey Transit vendors.
The extortion charge to which Talerico pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Talerico is scheduled to be sentenced on Jan. 6, 2015.
U.S. Attorney Fishman thanked the New Jersey Attorney General’s Office, under the direction of Acting Attorney General John Hoffman and Elie Honig, Director of the New Jersey Division of Criminal Justice, for their work in this investigation.
U.S. Attorney Fishman credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Aaron T. Ford; and the New Jersey State Police, under the direction of Colonel Joseph R. Fuentes, Superintendent of the New Jersey State Police, for their work in the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Amy Luria and Maureen Nakly 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 New Jersey Attorney General’s Office.
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Defense counsel: Peter R. Willis Esq., Jersey City, New Jersey
Talerico, William Information
Former Assistant Vice President for Bergen County, N.J., Bank Charged with Embezzling over $1 MillionRead the Press Release
NEWARK, N.J. - A former assistant vice president at a Fort Lee, New Jersey bank surrendered to the FBI today for her alleged involvement in a scheme to embezzle over $1 million from her employer, U.S. Attorney Paul J. Fishman announced.
Miye Chon, a/k/a/ “Karen Chon,” 34, of Englewood Cliffs, New Jersey, is scheduled to make her initial appearance today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. She is charged by complaint with theft, embezzlement or misapplication of funds by a bank officer or employee.
According to the complaint unsealed today:
Chon was employed by BankAsiana, a federally insured financial institution, until the bank was acquired in October 2013. Chon was an operations officer and later an assistant vice president at the Fort Lee branch. As a result, she had access to customer accounts, as well as the bank’s internal account records, computer system and vault.
Over the course of several years, Chon allegedly stole over $1 million from BankAsiana’s customer accounts by regularly making unauthorized transfers from customer certificate of deposit (CD) accounts into BankAsiana’s vault cash account, and then physically removing cash from the bank’s vault.
BankAsiana’s successor bank began an internal investigation after a customer found problems with tax forms and account records. The successor bank discovered that Chon, using her unique credentials, accessed BankAsiana’s computer systems on multiple occasions to make unauthorized transfers from customer CDs to the bank’s vault account before removing the cash. Chon had avoided detection by making false entries in the bank’s records and ensuring that funds she removed from CDs were transferred back into those accounts before they were set to reach maturity.
Chon allegedly embezzled funds on dozens of occasions, typically taking tens of thousands of dollars at a time, and one time converting as much as $100,000 from a customer’s CD account. Bank records show that during one week between September 27, 2013 and October 4, 2013, Chon’s last day working at the bank, she made multiple unauthorized transfers from customer accounts totaling approximately $1.2 million to cover losses in other customer accounts that she had previously looted. According to the successor bank’s investigation, the scheme resulted in an approximate $1.4 million loss to the bank.
Chon faces a maximum sentence of 30 years in prison, a maximum fine of the greater of $1 million or twice the gross gain or loss from the offense, and a mandatory restitution order in the full amount of BankAsiana’s loss.
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, for their work on this case.
The charge in the complaint against Chon is merely an accusation, and the defendant is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Paul A. Murphy of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark.
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Defense counsel: Matthew Jeon Esq., Fort Lee
Chon, Miye Complaint
Distributor for Atlantic City "Dirty Block" Gang Admits Role in Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - An Atlantic City, New Jersey, man admitted today to engaging in a conspiracy to distribute heroin with Mykal Derry, a leader of the “Dirty Block” criminal street gang that allegedly used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, U.S. Attorney Paul J. Fishman announced.
Aree Toulson, a/k/a “Beyah,” a/k/a “Beyeazz,” 25, of Atlantic City, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute, and to distribute and to possess with intent to distribute within 1,000 feet of public housing, 100 grams or more of heroin.
During the period of the conspiracy Toulson acted as a distributor on behalf of Mykal Derry, 34, of Atlantic City, helping Dirty Block to distribute heroin in and around the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court in Atlantic City.
Toulson was arrested on March 26, 2013. According to Toulson’s statements in court, he and others travelled with Mykal Derry to a shooting range in Lakewood, New Jersey, on Oct. 18, 2012, where Toulson – a previously convicted felon – used, possessed, and discharged a firearm. According to filed documents, members of the group also participated in a violent altercation with rival drug traffickers at an Atlantic City casino in December 2012.
The drug conspiracy charge carries a minimum penalty of five years in prison, a maximum penalty of 80 years in prison, and maximum potential fine of up to $10 million. Sentencing is scheduled for January 16, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Police Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang Task Force, with the investigation.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Justin C. Danilewitz of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations against Derry are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
14-340Defense counsel: Paul George Esq., Philadelphia
Toulson, Aree Superseding Information
Two Taiwan Nationals Admit International Drug Trafficking, Attempting to Export United States Military Drone Technology to People's Republic of ChinaRead the Press Release
NEWARK, N.J. - Two Taiwan nationals today admitted their roles in an international scheme to import narcotics and attempting to export sensitive United States’ military technology, U.S. Attorney Paul J. Fishman announced.
Hui Sheng Shen, 47, and Huan Ling Chang, 43, each pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to one count of conspiracy to import illegal drugs and one count of conspiracy to violate the Arms Export Control Act.
According to documents filed in this case and statements made in court:
From June 2010 through February 2012, Shen and Chang engaged in a wide-ranging pattern of global criminal activity that touched on the United States, the People’s Republic of China (PRC), the Philippines, Taiwan, Hong Kong, and elsewhere.
In September 2011, Shen and Chang asked undercover agents from the FBI (UCs) whether they could obtain and pass along highly sensitive American military technology, including defense articles restricted from export, for the benefit of individuals and organizations operating on behalf of the PRC. In December 2011, the UCs told Shen and Chang that the UCs could obtain certain drone technology, including a small drone known as the “RQ-11B,” and a manual for the RQ-4 “Global Hawk” drone, and asked Shen and Chang to find out if their clients were interested in these items. Shen and Chang later e-mailed the UCs that their clients were interested in the RQ-11B (as well as the RQ-4 and related manuals), and asked how much each would cost.
In February 2012, Shen and Chang arrived in New York and told a UC that they purchased cameras to take pictures of military technology. They explained they intended to delete them from the memory cards and use one of their contacts in the PRC to retrieve the deleted photos from the cameras’ memory, avoiding detection by law enforcement.
At another meeting, Shen and Chang examined the RQ-11B, as well as manuals relating to the RQ-4. A UC explained that it was illegal to export any of the items being discussed, and pointed out the warnings to that effect affixed to each of the items. Shen then told the UCs how he and Chang planned to remove the RQ-11B from the United States, and stated that he could use techniques that he had learned from narcotics trafficking, such as using scuba divers to swim out to a ship docked offshore with parts from the RQ-11B, or loading the parts onto a remote controlled semi-submersible vehicle to rendezvous with a ship.
Shen and Chang were then shown manuals for the RQ-4 and the RQ-11B, and Shen and Chang took photographs of both manuals. The pair were arrested before they could delete the photographs.
In February 2011 a conspirator introduced Shen and Chang to the UCs at a meeting in Manila. The conspirator and Shen arranged for the delivery of a sample of crystal methamphetamine to the UCs, who then negotiated the purchase of one kilogram of crystal meth for $70,000. In July 2011, the drug was shipped to the United States hidden in a shipping container, which was discovered by law enforcement agents in the exact location described by Shen and Chang.
The drug charge to which Shen and Chang pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. The arms export control act violation carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencings are scheduled for January 5, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty pleas. He also thanked officers of the U.S. Customs and Border Protection, under the direction of Robert E. Perez, Director, Field Operations; FBI special agents in Manila, Beijing, Hong Kong and Taiwan; the Philippine authorities; and the Department of Justice’s Organized Crime and Gangs Section, Office of Enforcement Operation and Office of International Affairs, for their roles in the case.
The government is represented by Assistant U.S. Attorneys Andrew Pak and Zach Intrater of the Computer Hacking and Intellectual Property section of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.14-337
Defense counsel:
Shen: Kenneth Kayser Esq., West Orange, N.J.
Chang: Maria Noto, Esq., Matawan, N.J.Shen, Hui Sheng Information
Chang, Huan Ling InformationMiddlesex County, N.J., Woman Admits Conspiring to Defraud U.S. Treasury Department of More Than $900,000Read the Press Release
TRENTON, N.J. - A Middlesex County, New Jersey, woman today admitted her role in defrauding the United States Department of the Treasury of more than $900,000 in income tax return checks, U.S. Attorney Paul Fishman announced today.
Rosanna Rodriguez, 29, of Middlesex, New Jersey, pleaded guilty today before U.S. District Judge Anne E. Thompson in federal court in Trenton, 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:
Rodriguez was the head teller at a bank located in Perth Amboy, New Jersey, and received Treasury checks from her conspirators. Rodriguez’ role in the scheme was to negotiate Treasury checks against unknowing third-party bank accounts at the bank. She admitted the total loss from the conspiracy was more than $900,000, and that she used a portion of that money for her own personal expenses, knowing the money had been fraudulently obtained from the U.S. Treasury.
The count of conspiracy to defraud the United States is punishable by a maximum penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for January 12, 2015.
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and special agents of Homeland Security Investigations, Immigration and Customs Enforcement, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, N.J.
14-335
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, NewarkRodriguez, Rosanna Information
Insurance Adjuster Pleads Guilty to Defrauding New Jersey Turnpike Authority, Insurance Companies of $900,000Read the Press Release
NEWARK, N.J. – The owner of a New Jersey-based insurance adjusting company today admitted his role in a scheme to defraud the New Jersey Turnpike Authority (NJTA) and various insurance companies of at least $900,000, U.S. Attorney Paul J. Fishman announced.
Robert Napolitano, 54, of Clifton, New Jersey, owner of Dawn to Dusk LLC, pleaded guilty today before U.S. District Judge Kevin McNulty to an information charging him with using the mails to facilitate a scheme to defraud the NJTA and insurance companies through false and fraudulent pretenses, representations and promises.
According to the documents filed in this case and statements made in court:
In October 2011, Napolitano reached an agreement with Gerardo Blasi, 56, of Clifton, New Jersey, who was employed as claims manager for the NJTA. It was Blasi’s job to negotiate and recover the costs of repairs from insurance companies of motorists who caused damage to property belonging to the NJTA. As part of the agreement, it was Napolitano’s responsibility to evaluate the damage caused by the insured motorist, create an estimate of the cost to repair the damage, and negotiate with the particular insurance company to arrive at the repair amount. Napolitano would request that the checks issued by the insurance companies for the costs of repairing the damage be made payable to Dawn to Dusk and mailed to Napolitano’s business.
Once Napolitano received these checks he would keep a portion of the proceeds for himself, provide Blasi with a share of the proceeds, and sometimes send the remaining amount to the NJTA as payment for the damages caused by the insured motorist. However, on several occasions, he and Blasi simply kept all of the proceeds. As a result of this scheme, Napolitano and others defrauded the NJTA and various insurance companies of approximately $900,000.
The charge to which Napolitano pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for January 8, 2015.
U.S. Attorney Fishman credited special agents from the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s plea. He also thanked the N.J. Turnpike Authority, under the direction of Veronique Hakim, for its cooperation during the investigation.Blasi pleaded guilty on December 11, 2013, and is due to be sentenced on Nov. 12, 2014.
The government is represented by Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office, Special Prosecution’s Division.
14-336
Defense counsel: John Yauch Esq., Assistant Federal Public Defender, NewarkNapolitano, Robert Information
Pennsylvania Accountant Sentenced to 40 Months in Prison for Conspiring with Members of Organized Crime Family in Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Pennsylvania accountant was sentenced today to 40 months in prison for conspiring to defraud FirstPlus Financial Group Inc. (FirstPlus), a Texas-based financial services company, which had been targeted for extortionate takeover and looting by a group led by Lucchese organized crime family member Nicodemo S. Scarfo.
New Jersey U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement.
Howard Drossner, 53, of Ambler, Pennsylvania, previously pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with conspiracy to commit wire fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to court documents and evidence introduced at a related trial:
Scarfo is a made member of the Lucchese La Cosa Nostra (LCN) organized crime family. In April 2007, Scarfo, Salvatore Pelullo, and others devised a scheme to take over FirstPlus. Scarfo and Pelullo used threats of economic harm to intimidate and remove the prior management and board of directors and replaced those officers with individuals beholden to Scarfo and Pelullo.
Drossner, a certified public accountant, joined the conspiracy in February 2008 when he helped Scarfo and Scarfo’s then-fiancée secure a $500,000 mortgage to purchase a house for $715,000 in Egg Harbor Township, New Jersey. At the direction of Pelullo, Drossner created false tax returns to help Scarfo’s fiancée qualify for a mortgage. Scarfo used money looted from FirstPlus for the $215,000 down payment on the house. The false tax returns, which exaggerated Scarfo’s fiancée’s income so that she could qualify for the mortgage without naming Scarfo, were used to secure the mortgage.
After the First Plus scheme was shut down by federal law enforcement in May 2008, Scarfo was unable to pay the mortgage and the house ultimately went into foreclosure. It was sold by the bank in 2010.
In addition to the prison term, Judge Kugler sentenced Drossner to three years of supervised release and fined him $125,000. Under the terms of his plea agreement, Drossner was required to notify the Pennsylvania State Board of Accountancy of his guilty plea and consent to the voluntary suspension of his CPA license.
Four other members of the conspiracy – Scarfo; Pelullo, an associate of the Lucchese and Philadelphia LCN families; William Maxwell, a Texas lawyer; and John Maxwell, who acted as the nominal CEO of FirstPlus after the takeover – were convicted of several offenses, including racketeering conspiracy, in July 2014 after a six-month trial. The indictment in which they were charged also named Nicodemo S. Scarfo’s father, Nicodemo D. Scarfo – the former boss of the Philadelphia LCN family – and Vittorio Amuso – the boss of the Lucchese family – as unindicted co-conspirators. Both are serving lengthy prison sentences.
Three other defendants charged in the indictment – John Parisi, manager of Scarfo’s shell company; Lisa Murray-Scarfo, Scarfo’s then-fiancée and a participant in the mortgage fraud conspiracy; and Cory Leshner, a participant in the looting of FirstPlus – have pleaded guilty and are awaiting sentencing. Todd Stark, also charged in the indictment, previously pleaded guilty and was sentenced for providing ammunition to Scarfo and Pelullo despite knowing that they were convicted felons.
U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of the FBI under the direction of Special Agent in Charge Aaron T. Ford in Newark; 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, New York Region; and the ATF, under the direction of Special Agent in Charge George P. Belsky in Newark, for the investigation leading to today’s sentencing. They also thanked the FBI under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia for its assistance.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the New Jersey U.S. Attorney’s Office’s Camden Office and Trial Attorney Adam L. Small of the Organized Crime and Gang Section in the Department of Justice’s Criminal Division in Washington.
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Defense counsel: Christopher D. Adams Esq., Roseland, N.J.New York Man Sentenced to Two Years in Prison for Distributing 'Bath Salts' at Area CollegesRead the Press Release
TRENTON, N.J. - A New York man was sentenced today to 24 months in prison for a scheme to distribute kilogram amounts of a controlled substance commonly known as “bath salts,” U.S. Attorney Paul J. Fishman said today.
Conor Healion, 22, of West Hempstead, New York, previously pleaded guilty before U.S. District Judge Joel A. Pisano to conspiracy to distribute methylone. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
Healion and Benjamin Caturano, 22, of New Brunswick, New Jersey, were arrested on March 15, 2013. Kyle Jobes, 23, of East Brunswick, New Jersey, Charles Knierim, 24, of Old Bridge, N.J., were arrested on March 14, 2013. All were charged in connection with their respective roles in a conspiracy to distribute methylone in New Jersey and New York. “Bath salts” is the street name for a family of designer drugs that have effects similar to amphetamine and cocaine. Their white and yellow crystals often resemble legal bath salts, like Epsom salts, but are chemically different.
The current investigation involved a package containing approximately two kilograms of methylone that was intercepted by law enforcement. The package originated in the People’s Republic of China and was supposed to be shipped to an address in Old Bridge. Law enforcement removed the methylone and replaced it with sham drugs that resembled bath salts. On March 14, 2013, law enforcement delivered the package and watched over the next two days as Knierim, Jobes, Caturano, and Healion transferred the package among themselves. After their arrests, a number of the defendants admitted that they had distributed multiple kilograms of bath salts over the past year and that some of the drugs were sold at local college campuses, including Rutgers University and Monmouth University. As part of the investigation, agents of Immigration and Customs Enforcement-Homeland Security Investigations seized more than $90,000 in cash and two luxury automobiles obtained with proceeds from the drug conspiracy.
Healion was the first to be sentenced before Judge Pisano, who also sentenced him to three years of supervised release. Caturano, Jobes and Knierim will each be sentenced by Judge Pisano on Sept. 22, 2014, Oct. 9, 2014, and Oct. 15, 2014, respectively.
U.S. Attorney Fishman credited special agents of the ICE-HSI, under the direction of Special Agent in Charge Andrew M. McLees; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Maria L. Kelokates; and U.S. Customs and Border Protection, under the direction of Robert E. Perez, Director of CBP's New York Field Operations, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Health Care & Government Fraud Unit in Newark, N.J.
14-334Defense counsel: Michael Chazen Esq., Freehold, N.J.
Mortgage Broker Admits Trading on Inside Information Stolen from Prominent New York Law FirmRead the Press Release
TRENTON, N.J. - The middleman in a five-year insider trading scheme admitted today to receiving numerous trading tips from a law firm source and passing the tips on to his broker-dealer to trade, yielding net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.
Frank Tamayo, 41, of Brooklyn, New York, surrendered this morning to the FBI and pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit securities and tender offer fraud, one count of securities fraud, and one count of tender offer fraud.
According to documents filed in this case and statements made in court:
Tamayo, a mortgage broker, admitted that from 2009 to 2013, he obtained material nonpublic information from his friend and former law school classmate, Steven Metro, 40, of Katonah, New York. Metro was then the managing clerk of the New York office of Simpson Thacher & Bartlett LLP, a law firm specializing in mergers and acquisitions. The inside information divulged by Metro to Tamayo concerned mergers, acquisitions, or tender offers in which the firm represented a party or financial advisor. As the firm’s managing clerk, Metro did not personally work on most these transactions. Instead, Metro stole the information by scouring the firm’s computer system for client names and the keywords “merger agreement,” “bid letter,” “engagement letter,” and “due diligence.”
After stealing material information, Metro would personally meet Tamayo at bars, coffee shops, or other locations near their Manhattan workplaces. Tamayo admitted that during these meetings, Metro gave him the names and ticker symbols of the companies whose securities should be purchased, the general timing of the planned deals, and information related to how the deals would affect the issuers’ stock price once public. Tamayo would write the security’s ticker symbol on a small piece of paper or napkin and then commit the information to memory.Tamayo would then meet with his broker-trader Vladimir Eydelman, 42, of Colts Neck, New Jersey, who was employed first at Oppenheimer & Co. and later at Morgan Stanley. Tamayo and Eydelman met at locations near Eydelman’s workplace, including the large clock in New York City’s Grand Central Terminal. Tamayo admitted that during these meetings, he would show Eydelman the paper or napkin with the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo put the paper or napkin into his mouth and chewed it until it was destroyed.
Using the stolen information, Eydelman purchased securities for himself, family members, friends, and clients, including Tamayo. Eydelman quickly sold the shares and covered any options positions once the relevant deal was publicly announced and the stock price rose.
Tamayo admitted he reinvested the approximately $7,000 in profits that Metro made on the first deal, and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to “cash out” his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate Metro for the inside information.By exploiting the material information that Metro stole from the firm, Tamayo, Metro and Eydelman netted more than $5.6 million in illicit profits over the course of the five-year insider trading scheme.
Tamayo faces a maximum potential penalty of five years in prison and a fine of $250,000 on the conspiracy count; and a maximum potential penalty of 20 years in prison and a fine of $5 million on the securities and tender offer fraud counts. Tamayo agreed to pay a forfeiture money judgment of more than $1 million and to forfeit certain property, including the contents of two brokerage accounts and a 2008 Audi Q7 automobile. He is scheduled to be sentenced on Dec. 23, 2014.
Metro and Eydelman have been charged by complaint for their own involvement in the insider trading scheme. The charges and allegations contained in the complaint are merely accusations, and defendants Metro and Eydelman are presumed innocent unless and until proven guilty.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Daniel Hawke. The SEC today filed a civil complaint against Tamayo. U.S. Attorney Fishman also thanked the Financial Industry Regulatory Authority for their assistance.
The government is represented by Assistant U.S. Attorneys Shirley U. Emehelu of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark, and Joseph R. Gribko of the U.S. Attorney’s Office in Trenton, as well as Unit Chief Marion Percell and Assistant U.S. Attorney Barbara Ward of the Office’s Asset Forfeiture and Money Laundering Unit.
These charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.14-332
Defense counsel: A. Ross Pearlson Esq. and Matthew E. Beck Esq., West Orange, New Jersey
Insider Trades
APPROX. DATE(S) OF PURCHASES
ANNOUNCEMENT DATE
SECURITY
APPROX. ILLICIT PROFIT
2/17/2009
Sirius XM Radio
$212,814
12/29/2009-1/15/2010
1/18/2010
Brinks Home Security
$773,154
7/8/2010-7/15/2010
7/15/2010
Smithtown Bancorp
$29,010
10/20/2010-10/29/2010
11/1/2010
CNA Surety Corporation
$241,141
4/11/2011-4/12/2011
4/13/2011
Graham Packing Company Inc.
$105,964
1/31/2011-4/19/2011
4/26/2011
SMART Modular Technologies
$1,575,382
4/4/2011-4/21/2011
4/27/2011
Vital Images, Inc.
$39,233
4/29/2011
5/2/2011
International Coal Group, Inc.
$231,276
6/21/2011-8/22/2011
8/23/2011
PharMerica Corp.
$1,517,092
4/16/2012-4/20/2012
5/1/2012
Collective Brands, Inc.
$360,775
5/14/2012-10/1/2012
N/A
“Company A”
N/A
9/20/2012-9/25/2012
9/27/2012
Sealy Corporation
$14,509
1/31/2013-2/15/2013
2/20/2013
Officemax Inc.
$573,332
APPROX. TOTAL ILLICIT PROFITS
$5,673,682
Tamayo, Frank Information
Middlesex County, N.J., Couple Charged with Running Prostitution Business Which Employed Undocumented AliensRead the Press Release
NEWARK, N.J. - A New Brunswick, New Jersey, couple was arrested today and charged with harboring undocumented aliens to serve as prostitutes in a string of at least eight brothels scattered across the state, U.S. Attorney Paul J. Fishman announced.
Juan Fredy Hernandez-Zozaya, 36, and his wife, Elizabeth Rojas Rojas, 33, are charged by complaint with one count of harboring aliens for the purpose of prostitution, one count of harboring aliens for the purpose of financial gain and conspiracy to commit those offenses. The defendants are scheduled to make their initial court appearances this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal Court.
According to the documents filed in this case and statements made in court:
Since at least 2012, law enforcement has been investigating Hernandez-Zozaya and Rojas in connection with a chain of brothels in towns including New Brunswick, Trenton, Orange, Lakewood, Asbury Park and Bridgeton, New Jersey. The brothels were typically located in private residences, and undocumented aliens were employed as prostitutes.
Hernandez-Zozaya and Rojas were allegedly the leaders of the organization. Hernandez-Zozaya hired, fired and oversaw individuals who managed the daily activities at the brothels. Rojas organized, directed and scheduled prostitutes. The couple also employed and relied on a string of conspirators to help manage the brothels. The investigation revealed that the prostitutes sometimes traveled across state lines to work and that Hernandez-Zozaya and Rojas both collected the proceeds from the prostitution activities.
Both of the harboring counts with which the defendants are charged carry a maximum penalty of 10 years in prison. The conspiracy count carries a maximum penalty of five years in prison.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sharon Ashe of the office’s Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
14-330Hernandez-Zozaya, Juan Fredy and Rojas, Elizabeth Rojas Complaint
Former Mayor of Manalapan, N.J., Found Guilty on All Counts: Mortgage Fraud, Identity Theft, and Obstruction of JusticeRead the Press Release
Defrauded Investment Client of $250,000 and Submitted Falsified Loan Application in Order to Purchase Farm in Manalapan
TRENTON, N.J. – The former mayor of Manalapan, New Jersey, was convicted at trial today on charges related to his acquisition of farmland in Monmouth County, New Jersey, U.S. Attorney Paul J. Fishman announced.
Andrew Lucas, 37, was found guilty today on all 11 counts of an indictment charging him with wire fraud, an illegal monetary transaction, loan application fraud, false statements to the IRS, aggravated identity theft, obstruction of a grand jury investigation and falsification of records in a federal investigation. The jury deliberated three hours before returning its verdict following a two-week trial before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and the evidence at trial:
On Dec.15, 2009, Lucas submitted a loan application to a New Jersey bank requesting $525,000 to finance his purchase of the Burke Farm property in Manalapan. Lucas provided the bank with falsified versions of his 2007 and 2008 tax returns, as well as a falsified version of a 2007 tax return for a relative whose name was also on the loan application. Lucas also falsely reported that he had a total of $210,000 in cash.
Lucas owned and operated Lucas Capital Advisors LLC (Lucas Capital), through which he served as an investment advisor and manager to multiple individuals. To obtain the $250,000 down payment for the property, Lucas approached Bobby Janowski, who was a client of Lucas Capital, to pitch an investment in an entity called VLM Investments LLC (VLM). On Feb. 15, 2010, Lucas presented a written note to Janowski, which stated that the $250,000 investment was to be secured by “…interest in the equipment, fixtures, inventory and accounts receivable” of VLM. However, Lucas failed to inform Janowski that at the time the note was signed, VLM did not exist. Lucas also failed to disclose to Janowski that Lucas intended to make personal use of the funds. It was not until three days later, on Feb. 18, 2010, that Lucas created VLM by registering it with the State of New Jersey and the IRS, using the name and Social Security number of Lucas’ out-of-state relative, Thomas Littlefield, without his knowledge or permission.
On Feb. 22, 2010, Lucas authorized the wiring of $250,000 from Janowski’s Lucas Capital investment account to a VLM bank account that had Lucas as the only authorized signer. On March 1, 2010, Lucas withdrew this money in the form of a bank check, which he provided the next day to the closing attorney for the purchase of the Burke Farm property.
Lucas also filed tax returns for VLM for tax years 2011 and 2012, both times listing Littlefield’s name and Social Security number without Littlefield’s knowledge or permission.
Federal investigators served Lucas with subpoenas on Feb. 7, 2013, for the records of VLM and Lucas Capital Advisors. In response, Lucas provided federal authorities with a fabricated and back-dated letter purporting to be from Littlefield concerning a transaction for the purchase of the Burke Farm property.
The counts of wire fraud and falsification of records in a federal investigation are each punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. Loan application fraud is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. The counts of conduction an illegal monetary transaction and obstruction of a grand jury investigation are each punishable by a maximum potential penalty of 10 years. Each of the charges of false statements to the IRS is punishable by a maximum potential penalty of five years in prison. Aggravated identity theft is punishable by a mandatory prison term of two years, to be run consecutive to any other sentence. Sentencing is scheduled for Jan. 20, 2015.
U.S. Attorney Fishman credited special agents of the FBI Red Bank Office, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and investigators with the U.S. Attorney’s Office, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Matthew Skahill in Camden and Rahul Agarwal in Newark, both of the U.S. Attorney’s Special Prosecutions Division.14-331
Defense counsel: Mario F. Gallucci Esq., and Michael DeSantis Esq., of Staten Island, N.Y.
Lucas, Andrew Indictment
Two More Men Admit Roles in Armed Robbery of New Jersey Target Store on Black Friday 2012Read the Press Release
TRENTON, N.J. –Two Newark men admitted this week to robbing a Target Store in Union, New Jersey, on “Black Friday” in November 2012, U.S. Attorney Paul J. Fishman announced today.
Lavell Jones, 29, pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton federal court to an indictment charging him with one count of Hobbs Act robbery. DaQuaan Vaughn, 36, pleaded guilty before Judge Thompson on Sept. 16, 2014, to a superseding information charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence. Vaughn also pleaded guilty to an unrelated count of firearms trafficking in connection with his unlawful sale of firearms between April and June 2012.
Vaughn, Jones, and two other men – Darrell A. Carter, 24, of Irvington and Maryland Liggins, 29, of Newark – were arrested on June 19, 2013, and charged by criminal complaint in connection with the Target robbery. Carter and Liggins each pleaded guilty before Judge Thompson in May 2014 to informations charging them with Hobbs Act robbery. Carter also pleaded guilty to one count of using a firearm in furtherance of a crime of violence. Sentencing dates for both Carter and Liggins are pending.
According to documents filed in this case and statements made in court:On Nov. 23, 2012, Vaughn, Carter, Jones and Liggins robbed a Target store located on Springfield Avenue in Union on Black Friday – the day after Thanksgiving – which is considered to be one of the busiest shopping days of the year. Jones posed as a shopper and served as a lookout inside the store. He alerted the others when the store was closing and money was being transferred from the store’s registers to the cash room. Liggins served as the getaway driver.
Before closing, Carter and Vaughn waited in the bathroom. When an employee entered the bathroom, Carter and Vaughn restrained the employee and threatened him with a firearm. After the store closed, Carter and Vaughn entered the cash room, restrained other Target employees with zip ties and robbed them at gunpoint, stealing more than $50,000 from a cash cart and safe. Then they fled the store and ran out to a vehicle – driven by Liggins – that was parked on the shoulder of nearby Route 78.
The charge of Hobbs Act robbery carries a maximum potential penalty of 20 years in prison. The charge of using a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years, which must run consecutively to any other prison term. The firearms trafficking charge against Vaughn carries a maximum potential penalty of five years in prison. Each of these counts also carries a maximum fine of $250,000. Sentencing for Vaughn is scheduled for Jan. 6, 2015, and sentencing for Jones is scheduled for Jan. 7, 2015.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the guilty pleas. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense Counsel:Carter: Peter Carter Esq., Newark
Liggins: Joseph Rotella Esq., Newark
Vaughn: Timothy Donohue Esq., West Orange, New Jersey
Jones: Richie Roberts Esq., NewarkJones, Lavell Indictment
Vaughn, DaQuaan InformationJersey City Man Sentenced to 114 Months in Prison for Armed Robbery of Jewelry StoreRead the Press Release
TRENTON, N.J. – A Jersey City man was sentenced today to 114 months in prison for committing an armed robbery of a jewelry store in Hudson County, New Jersey, U.S. Attorney Paul J. Fishman announced.
Mouhamadou Lamine Amar, 21, previously pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an indictment charging him with committing a Hobbs Act robbery and with brandishing a firearm during the robbery. Judge Cooper imposed the sentence – which includes 30 months on the robbery count and 84 months, served consecutively, on the weapons count – today in Trenton federal court.
According to documents filed in this case and statements made in court:
On June 28, 2013, Amar entered a jewelry store in Jersey City and held a gun to a store employee’s head. He grabbed and pushed the employee when the employee tried to flee. He tied up the employee and threatened to shoot the employee if the employee tried to escape. Amar was arrested inside the store while still in possession of the firearm.
In addition to the prison term, Judge Cooper sentenced Amar to 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 leading to today’s guilty plea. He also thanked the Jersey City Police Department and the Hudson County Prosecutor’s Office for their work on this case.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Jeffrey B. Steinfeld Esq., NewarkFormer Contract Employee for U.S. Citizenship and Immigration Services Sentenced to 26 Months in Prison for Theft, Sale of FormsRead the Press Release
NEWARK, N.J. - A former contract employee for U.S. Citizenship and Immigration Services (USCIS) was sentenced today to 26 months in prison for stealing hundreds of immigration forms from the warehouse where he worked and selling them for ultimate use as part of a criminal enterprise, U.S. Attorney Paul J. Fishman announced.
Martin Trejo, 47, of Rialto, California, was previously convicted of one count of conspiracy to steal government property and transport it in interstate commerce and one count of transportation of stolen goods in interstate commerce. Trejo was convicted following a one-week trial before U.S. District Judge Faith S. Hochberg, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
While working as a contract employee for USCIS, Trejo stole hundreds of immigration forms from the warehouse where he worked and sold them to a conspirator, who sold the forms to a criminal enterprise that used them to obtain hundreds of driver’s licenses for individuals living in New Jersey and other states illegally.
In addition to the prison term, Judge Hochberg sentenced Trejo to serve two years of supervised release and fined him $4,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and agents of the Department of Homeland Security, Office of Inspector General, under the direction of Acting Special Agent in Charge Edward Nasiatka of the New York field office, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Anthony Moscato and David M. Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
14-329Defense counsel: John P McGovern Esq., Newark
Two New Jersey Doctors Admit Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
31 Defendants – including 20 Doctors – Have Pleaded Guilty to Roles in Massive Scheme
NEWARK, N.J. – Two doctors with practices in Secaucus and Hawthorne, New Jersey, today admitted accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Eugene DeSimone, 60, of Eatontown, New Jersey, who practiced in Secaucus, and Douglas Bienstock, 48, of Wayne, New Jersey, who practiced in Hawthorne, each pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to one count of accepting bribes.
According to documents filed in this and related cases and statements made in court:
DeSimone admitted accepting $1,500 in cash per month between August 2010 and March 2013 in return for referring patient blood specimens to BLS. Bienstock admitted that in return for patient blood specimens referrals to BLS he was paid more than $2,500 per month under a sham service contract. BLS also paid Bienstock $100 in cash for each of a certain type of blood test that he ordered. The two doctors acknowledged generating a total of at least $1.6 million in lab business for BLS from their respective practices.
As part of their guilty pleas, DeSimone and Bienstock agreed to forfeit a combined total of $339,000.
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 counts to which DeSimone and Bienstock pleaded guilty carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for Dec. 16, 2014.
Including DeSimone and Bienstock, 31 people have now 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. So far, 11 employees or associates of BLS, and 20 doctors have pleaded guilty to their roles in the bribery scheme. The investigation has recovered more than $10.2 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Joseph Minish, Senior Litigation Counsel Andrew Leven and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney 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.
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Defense counsel:
Eugene DeSimone: Alain Leibman Esq., Lawrenceville, N.J.Douglas Bienstock: Alan Zegas Esq., Chatham, N.J.
Desimone, Eugene Information
Bienstock, Douglas InformationSomerset County, N.J., Man Admits Production and Transportation of Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Watchung, New Jersey, man today admitted producing and transporting sexually explicit videos of children, U.S. Attorney Paul J. Fishman announced.
Patrick T. Deck, 54, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with two counts of transportation of child pornography.
According to documents filed in this case and statements made in court:
On Aug. 12, 2012, Deck was arrested at the Land of Make Believe amusement park in Hope, New Jersey, by the N.J. State Police for allegedly filming children, without their or their parents’ knowledge, in the men’s restroom. The following day, law enforcement officers executed a search warrant at Deck’s home in Watchung and discovered multiple videos and images containing child sexual abuse on Deck’s computers and other electronic devices.
Deck also admitted that between 1997 and 2010, he transported two minors, beginning when they were approximately 11 years old, to locations across the country, including New Jersey, New York, Pennsylvania, Colorado and Montana for the purpose of filming the minors in sexually explicit conduct. Deck produced the videos and images of child pornography and then transported those images back to his home in Watchung.
In 1988, Deck was convicted in N.J. Superior Court, Burlington County, of two counts of endangering the welfare of a child. Those convictions arose out of prior incidents where Deck photographed or filmed minors engaged in prohibited sexual acts. As a result of Deck’s prior convictions, each count of transportation of child pornography to which Deck pleaded guilty carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 40 years in prison and a $250,000 fine. Sentencing is currently scheduled for Jan. 12, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, the N.J. State Police, under the direction of Col. Rick Fuentes, and the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: James Wronko Esq., Somerville, New Jersey
Deck, Patrick Information
Former Owner of Defense Contracting Companies Charged with Mail Fraud and Violating Arms Export Control ActRead the Press Release
TRENTON, N.J. – The former owner of two New Jersey defense contracting businesses was charged with mail fraud and violating the Arms Export Control Act, U.S. Attorney Paul J. Fishman announced today.
Alper Calik, 38, of Ankara, Turkey, was arrested upon his entry into the United States on Sept. 13, 2014 and charged by complaint with two counts of mail fraud, in connection with allegedly fraudulent contracts entered into with the U.S. Department of Defense (DoD), and one count of violating the Arms Export Control Act, in connection with his download of thousands of military technical drawings while outside the United States without prior approval from the U.S. Department of State. He is scheduled to make his initial court appearance later today before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.
According to the complaint:
Starting in November 2009, Calik was the co-owner of Clifmax LLC in Clifton, New Jersey. The company contracted with DoD to supply defense hardware items and spare parts. Starting in May 2011, Calik started a second defense-contracting company, Tunamann LLC, based at the same address in Clifton. Both Clifmax and Tunamann were allegedly “shell” companies for manufacturing facilities in Turkey, created to obtain DoD contracts that the manufacturers were not permitted to receive. Calik, on numerous occasions, falsely claimed to the DoD that Clifmax and Tunamann were U.S.-based manufacturers, when, in fact, neither company ever had any manufacturing capabilities in the United States.
From November 2009 to March 2011, Calik allegedly defrauded the DoD by electronically submitting fraudulent bids for DoD contracts stating that he would provide parts manufactured in the United States when the items were, in fact, manufactured in Turkey. On Feb. 17, 2010, Calik submitted a false bid to the DoD for a contract to provide 121 parts known as “gear, spur,” an item used in the “steer section and brake” of the Amphibious Assault Vehicle. Calik claimed that Clifmax was a manufacturer and that the parts would be manufactured in the United States. Only U.S.-based contractors were eligible to obtain that contract. Based on Calik’s false bid, Clifmax was awarded the contract, valued at $50,215. Shipping records showed that the parts were shipped from Turkey to Clifmax’s address on July 20, 2014. The parts were subsequently provided to the DoD on July 25, 2014. The DoD paid Clifmax $49,913.71 for the foreign manufactured parts. Subsequent testing by the DoD revealed that the parts had dimensional non-conformances and were unusable.
Calik is also charged with violating the Arms Export Control Act. For both Clifmax and Tunamann, Calik submitted Military Critical Technical Data Agreements in which he claimed his companies were U.S.-based manufacturers. Calik also acknowledged that he understood export control laws and agreed not to disseminate export-controlled data and technical drawings in a manner that would violate export control laws. Based on his false representations, Calik was granted electronic access to drawings and technical data subject to U.S. export control regulations. Beginning in 2009, Calik downloaded approximately one hundred thousand drawings, some of which were subject to U.S. export control regulations. Calik was not in the United States when the majority of the drawings were downloaded and he did not obtain export licenses from the U.S. Department of State.
On May 23, 2013, Calik, who at that time was operating Tunamann, downloaded from a DoD database the technical drawings for parts that go into the NSSN Class Submarine. Those drawings contained warnings stating that the export of the drawings to places outside the United States is restricted by the Arms Export Control Act. Calik was not in the United States when those drawings were downloaded and he did not obtain an export license from the U.S. Department of State for the export of those drawings.
Counts One and Two of the complaint, charging mail fraud, each carry a maximum penalty of 20 years in prison and a fine of $250,000. Count Three carries a maximum penalty of 20 years in prison and a $1 million fine.The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert, and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Special Agent in Charge Andrew M. McLees, with the investigation leading to Calik’s arrest.
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 complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Calik, Alper Complaint
Warren County, N.J., Man Charged with Stalking and Sexual Exploitation of MinorsRead the Press Release
NEWARK, N.J. – A Washington, New Jersey, man is charged with stalking a female minor and soliciting another to produce images of herself engaging in sexually explicit conduct, U.S. Attorney Paul J. Fishman announced today.
Brandon McIntyre, 22, is charged by complaint with one count of stalking and one count of sexual exploitation of a child. He is scheduled to appear today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint:
McIntyre allegedly met various female minors through Facebook, sometimes pretending to be a teenage girl. Disguised under the Facebook alias of “Katie Thompson,” McIntyre urged one female minor to go on trips with him. When she refused, McIntyre, still using the alias, threatened to hurt her boyfriend and kill her family.
During his interaction with another female minor, McIntyre allegedly sent images of his genitals and asked her to send nude images of herself. When the victim refused, McIntyre claimed he was a police officer and would make her life a “living hell.” McIntyre threatened the victim with fines, school expulsion, and jail time until she sent him pictures of her engaging in sexually explicit conduct.
The charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. The charge of stalking carries maximum penalty of five years in prison and a $250,000 fine.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; and Hunterdon County Prosecutor’s Office for the investigation leading to the arrest. He also thanked special agents from FBI in Anchorage, Alaska, and Albany, New York, for their assistance.
The government is represented by Special Assistant U.S. Attorney Jillian J. Reyes of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.14-323
McIntyre, Brandon Complaint