District of New Jersey
Press releases recorded for this federal judicial district.
United States Seeks Civil Contempt Against Bayer Corporation for Failure to Substantiate Promotional Claims for Phillips' Colon HealthRead the Press Release
WASHINGTON—The Department of Justice announced today that it filed a motion to show cause why Bayer Corporation should not be held in civil contempt for violating a court order in the U.S. District Court for the District of New Jersey. The court order, entered in 2007 in United States v. Bayer Corporation, prohibits Bayer from making unsubstantiated claims for any dietary supplement it promotes or sells. The government alleges in today’s motion that Bayer promotes one of its products, Phillips’ Colon Health, using claims about the product’s purported benefits without having evidence to substantiate those claims.
The court order prohibits Bayer from making any claim about the performance or efficacy of any dietary supplement, multivitamin or weight-control product unless, at the time Bayer makes the claim, the company possesses “competent and reliable scientific evidence” to support the claim. In its motion, the United States alleges that Bayer expressly claims Phillips’ Colon Health can “defend against” occasional constipation, diarrhea, and gas and bloating, and impliedly claims that Phillips’ Colon Health prevents, treats and cures constipation, diarrhea, and gas and bloating, even though the company lacks competent and reliable scientific evidence for those claims.
“Bayer is required to abide by a longstanding court order to back up claims it makes about the products it sells,” said Assistant Attorney General Stuart F. Delery for the department’s Civil Division. “The Department of Justice will not tolerate companies that seek to gain an unfair advantage over their competitors by promoting to consumers unsubstantiated claims about the health benefits of their products.”
In its motion, the United States describes Bayer’s multimillion dollar nationwide marketing campaign for Phillips’ Colon Health, which includes print advertisements and television commercials featuring “The Colon Lady,” in addition to claims on the product’s packaging. The motion further alleges that consumers have paid hundreds of millions of dollars for Phillips’ Colon Health, even though Bayer lacks the evidence to support the claims of the purported benefits of this product.
The Consumer Protection Branch of the Civil Division and the U.S. Attorney’s Office for the District of New Jersey filed the motion for contempt with the assistance of the Federal Trade Commission (FTC). The matter is filed as United States v. Bayer Corporation, No. 07-0001, in the District of New Jersey.
In 2007, the United States filed a civil complaint against Bayer alleging that Bayer marketed its One-A-Day WeightSmart multivitamin and dietary supplement with unsubstantiated claims that, among other things, One-A-Day WeightSmart helped prevent some of the weight gain associated with a decline in metabolism in users over the age of 30. The complaint alleged that those unsubstantiated claims violated an order issued in 1991 by the FTC against Bayer’s predecessor, Miles Inc., that required all claims about the benefits of One-A-Day brand vitamins to be substantiated by competent and reliable scientific evidence.
In order to resolve the complaint’s allegations, in 2007, Bayer agreed to pay a $3.2 million civil penalty and agreed that it would not make unsubstantiated representations regarding the benefits, performance, efficacy, safety or side effects of any dietary supplement, multivitamin or weight-control product. In 2007, the U.S. District Court for the District of New Jersey entered an order resolving the complaint’s allegations and prohibiting Bayer from making unsubstantiated claims about its products.
Assistant Attorney General Delery commended the efforts of the FTC to investigate Bayer’s compliance with the 2007 court order and for referring this latest matter for enforcement. This case is being handled by the Civil Division’s Consumer Protection Branch.
This motion contains a set of allegations. If this motion is litigated, the government would need to prove the allegations by clear and convincing evidence.
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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Motion in Bayer 9-12-14
Two New Jersey Construction Employees Admit Tax Charges and Other Fraudulent SchemesRead the Press Release
TRENTON, N.J. – Two employees of related Parsippany, New Jersey,-based construction companies today admitted underreporting significant amounts of cash income on their tax returns, U.S. Attorney Paul J. Fishman announced.
Joseph Carsillo, 46, of East Hanover, New Jersey, pleaded guilty to an information charging him with one count of subscribing to a false personal federal income tax return for calendar year 2010, and one count of bankruptcy fraud. Carl J. Corso, 59, of Hamilton Township, New Jersey, pleaded guilty to an information charging him with one count of subscribing to a false personal federal income tax return in calendar year 2010, and one count of engaging in a mail fraud scheme to defraud the state of New Jersey with respect to unemployment compensation benefits.
The defendants were previously charged in separate complaints in November 2013. Both of the pleas were entered today before U.S. District Judge Michael A. Shipp in Trenton federal court. Charges against a third defendant, Frank Chimento, III, 46, of Verona, New Jersey, remain pending.
According to the documents filed in this case and statements 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.
Carsillo started working for the Chimento Companies in 2007 and was the project superintendent at Palmer Square. He admitted that he received cash wages from the Chimento Companies of $66,865 in 2010, which he failed to include on his tax return. He also admitted in court that he failed to include cash wages of $58,161 on his 2009 return and $42,440 on his 2011 return.
Carsillo also admitted that he made false statements at a bankruptcy hearing on April 28, 2011, regarding his combined current monthly income and his monthly gross wages for the prior six-month period.Corso started working for the Chimento Companies on Aug. 12, 2009 and worked through 2011. In addition to payroll checks, Corso requested and received cash wages from the Chimento Companies. He disclosed to his return preparer only the wages he received by payroll check and deliberately omitted the cash payments and certain supplemental paychecks from his personal tax returns despite knowing that these payments should have been included on these returns.
Corso received unreported cash income of $52,780 in 2010, as well as unreported income of $10,074 in 2009, and $34,492 in 2011.
Corso further admitted that on Nov. 1, 2009, he falsely advised the N.J. Department of Labor and Workforce Development that he was no longer working and reactivated an earlier application for unemployment benefits. He collected $19,988 in unemployment benefit checks through the U.S. mail.
As part of their guilty pleas, the two defendants agreed to make full restitution to the IRS for all losses resulting from the filing of false tax returns. Corso agreed to make restitution to the NJDOL-WD with regard to his fraudulent unemployment compensation claim.The charge of subscribing to a false tax return is punishable by a maximum potential penalty of three years in prison; the charge of mail fraud is punishable by a maximum potential penalty of twenty years in prison; and the charge of bankruptcy fraud is punishable by a maximum potential penalty of five years in prison. All charges are punishable by a maximum $250,000 fine. Sentencing for both defendants is scheduled for Dec. 18, 2014.
U.S. Attorney Fishman praised the 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 investigation leading to today’s guilty pleas. 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.
The charges and allegations in the complaint against Chimento are merely accusations, and he remains innocent unless and until proven guilty.
14-321Defense counsel:
Carsillo: Lorraine S. Gauli-Rufo Esq., Assistant Federal Public Defender, Newark
Corso: Lisa Mack Esq., Assistant Federal Public Defender, NewarkCarsillo, Joseph Information
Corso, Carl InformationFormer Defense Contractor Indicted for Illegally Exporting Military Blueprints and Defrauding U.S. Department of DefenseRead the Press Release
TRENTON, N.J. – The former owner of two New Jersey defense contracting businesses was indicted by a federal grand jury today for allegedly submitting fraudulent bids to the U.S Department of Defense (DoD) and disseminating military technical drawings to India without a license, U.S. Attorney Paul J. Fishman announced.
Hannah Robert, 49, of North Brunswick, New Jersey, was charged in a superseding indictment with one count of violating the Arms Export Control Act, one count of conspiracy to violate the act and four counts of wire fraud and one count of conspiracy to commit wire fraud. 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. Robert is currently under home detention pending trial.
According to the superseding indictment:
Robert was the founder, owner, and president of One Source USA LLC, a company located at her residence in Mount Laurel Township, New Jersey, and contracted with DoD to supply defense hardware items and spare parts pursuant to government contracts. Starting in September 2012, Robert opened a second defense-contracting company, Caldwell Components Inc., based at the same address in Mount Laurel Township.
Along with a resident of India identified only as “P.R.”, Robert owned and operated another company (One Source India) located in India that manufactured at its own facility defense hardware items and spare parts. From June 2010 to December 2012, Robert and P.R. allegedly conspired to defraud the DoD by electronically submitting fraudulent bids for DoD contracts, stating that they would provide parts manufactured in the United States, when in fact, the items were manufactured in India. One Source USA also subcontracted to other U.S. defense contractors, including those in Sussex County, New Jersey, and Boca Raton, Florida. Robert provided export-controlled items made in India to these defense contractors in such a way as to appear to the DoD that the items were manufactured in this country.
From June 2010 to December 2012, Robert also allegedly conspired to export defense blueprints to India without obtaining the necessary licenses from the U.S. Department of State. The exported technical drawings include parts used in the torpedo systems for nuclear submarines, military attack helicopters, and F-15 fighter aircraft.
In addition to United States’ sales, Robert and P.R. sold defense hardware items to foreign customers. Robert transmitted export-controlled technical data to P.R. in India so that Robert and P.R. could submit bids to foreigners, including those in the United Arab Emirates (UAE), to supply them or their foreign customers with defense hardware items and spare parts. Neither Robert nor P.R. obtained approval from the U.S. Department of State for this conduct.
On August 23, 2012, P.R. e-mailed Robert from India requesting the technical drawing for a particular military item. P.R.’s e-mail forwarded Robert an e-mail from an individual purporting to be “an official contractor of the UAE Ministry of Defence,” and who listed a business address in Abu Dhabi, UAE. The UAE e-mail requested quotations for a bid for the “blanket assembly” for the CH-47F Chinook military helicopter and listed the “End User” for the hardware item as the UAE Armed Forces. Later that same day, Robert replied to P.R.’s e-mail, attaching, among other things, the electronic file for an export-controlled technical drawing titled “Installation and Assy Acoustic Blankets, STA 120 CH-47F,” to be used in the Chinook attack helicopter.
Starting in October 2010, Robert transmitted the military drawings for parts to India by posting the technical data to the password-protected website of a Camden County, N.J., church where she was a volunteer web administrator. This was done without the knowledge of the church staff. Robert e-mailed P.R. the username and password to the church website so that P.R. could download the files from India. Through the course of the scheme, Robert uploaded thousands of technical drawings to the church website for P.R. to download in India.
On June 25, 2012, P.R. e-mailed Robert from India, stating: “Please send me the church web site username and password.” The e-mail was in reference to both an invoice to, and a quote for, an individual known to Robert as a broker of defense hardware items for an end-user in Pakistan. This individual (the “Pakistan trans-shipper”) employed a UAE address for shipping purposes. Later than day, Robert replied to this e-mail, providing a new username and password for the church website so that P.R. could download the particular defense drawings.
There were quality issues with the parts that Robert provided to the DoD. After the DoD in October 2012 disclosed the failure of certain parts used in the wings of the F-15 fighter aircraft, supplied by one of One Source USA’s American customers, Robert and P.R. provided the principal of that company with false and misleading material certifications and inspection reports for the parts. These documents, to be transmitted to the DoD, listed only One Source USA’s New Jersey address and not the address of the actual manufacturer in India, One Source India. As a result of the failed wing pins, the DoD grounded approximately 47 F-15 fighter aircraft for inspection and repair, at a cost estimated to exceed $150,000.
Robert was, until November 2012, an employee of a separate defense contractor in Burlington County, New Jersey, where she worked as a system analyst and had access to thousands of drawings marked with export-control warnings and to information on this defense contractor’s bids on DoD contracts. Robert misrepresented to her employer the nature and extent of her involvement with One Source USA.
Count One of the superseding indictment, charging conspiracy to commit wire fraud, carries a maximum penalty of 20 years in prison and a fine of $250,000. Counts Two through Five, charging substantive wire fraud, each carry a maximum penalty of 20 years and a fine of $250,000. Count Six, charging conspiracy to violate the Arms Export Control Act, is punishable by a maximum penalty of five years in prison and a $250,000 fine. Count Seven, charging a substantive violation of the Arms Export Control Act, is punishable by a maximum penalty of 20 years in prison and a $1 million fine. The superseding indictment also seeks forfeiture of Robert’s proceeds from the alleged criminal scheme.
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 the superseding indictment.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton, and L. Judson Welle of the U.S. Attorney’s Office National Security Unit.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: David Schafer Esq., Lawrenceville, New JerseyRobert, Hannah, Superseding Indictment
Three Men Charged with Operating Online Website Selling Fake Driver's LicensesRead the Press Release
NEWARK, N.J. – Three New Jersey men were arrested today on charges they allegedly ran an online shop selling fake driver’s licenses, U.S. Attorney Paul J. Fishman announced today.
Ricardo Rosario, 32, and Abraham Corcino, 33, both of Jersey City, and Alexis Scott Carthens, 37, of Newark, are charged by complaint with conspiracy to commit fraud and related activity in connection with authentication features. All three men are expected to make their initial court appearances later today before U.S. Magistrate Steven C. Mannion in Newark federal court.
According to the complaint:
From October 2012 through August 2014, Rosario, Corcino and Carthens allegedly sold fake driver’s licenses over the Internet. The three men ran a website that was available at “fakeidstore.co” and “fakedlstore.com.” A number of the fake driver’s licenses allegedly sold by the defendants were used in connection with “cash out” schemes, where stolen credit card information, usually obtained through hacking or ATM skimming operations, was encoded on to counterfeit credit cards and then used to steal cash from victims’ accounts.
The website sold fake driver’s licenses for the states of New Jersey, Florida, Illinois, Pennsylvania, Rhode Island, and Wisconsin, and boasted that the licenses had “scannable barcodes” and “real” holographic overlays. The price for each fake driver’s license was approximately $150, but the website offered bulk pricing for orders of 10 or more cards. The website allowed its users to pay by bitcoin, a cryptographic-based digital currency, or MoneyPak, a type of prepaid payment card that could be purchased at retail stores. The “FAQ” section of the website indicated that orders would be received one to two days after payment was received and described the website’s policy with respect to returns: “No Refunds. No snitching.”
Rosario allegedly created and ran the Website. Corcino and Carthens allegedly assisted Rosario by creating and mailing the fake driver’s licenses. Corcino also maintained an Instagram website, which was used to promote the website.
Rosario and his conspirators sold 1,514 fake driver’s licenses for $232,660 between or Dec. 30, 2013, and June 23, 2014.
The count of conspiracy to commit fraud and related activity in connection with authentication features carries a maximum potential penalty of 15 years in prison and a fine of twice the gross gain or loss derived from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates in Newark, with the investigation leading to today’s charges.The government is represented by Assistant U.S. Attorneys Andrew S. Pak of the Computer Hacking and Intellectual Property Section and 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 defendants are considered innocent unless and until proven guilty.
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Rosario, Ricardo et al. Complaint
OSHA-Certified Instructor Admits Selling False Construction Safety Certification CardsRead the Press Release
CAMDEN, N.J. – A certified Occupational Safety and Health Administration (OSHA) instructor today admitted selling more than 100 false safety certifications to New Jersey carpenters who never completed the required training, U.S. Attorney Paul J. Fishman announced.
Frederick Prinz, 38, of Marmora, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with making and selling fraudulent construction industry certification forms, known as “OSHA 30” cards.
According to documents filed in this case and statements made in court:The “OSHA 30” training program provides construction workers with foundational knowledge and skills in occupational safety. Prinz was certified by OSHA’s Outreach Training Program (OTP) at the Rocky Mountain Education Center, in Red Rocks, Colorado, to issue workers “OSHA 30” cards after they passed a 30-hour OTP training course. For a fee of $150 to $250 per card, Prinz sold false “OSHA 30” certifications to carpenters who never completed the required training.
The violation charged carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 10, 2014.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, 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
Prinz, Frederick Information
Louisiana Man Admits Abusive Sexual Contact of Sleeping Woman on Domestic Flight to New JerseyRead the Press Release
NEWARK, N.J. - A Louisiana man today admitted sexually touching a sleeping woman who did not know him aboard a flight from Houston to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Devender Singh, 62, an Indian national who lives in Baton Rouge, Louisiana, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with abusive sexual contact.
According to the documents filed in this case and statements made in court:
Singh was seated next to a woman who occupied a window seat on a United Airlines flight from Houston to Newark. While the plane was in the air, the woman fell asleep. She awoke to find Singh kissing her face with his hand inside her shirt.
After pushing Singh off of her and telling him to get away, the woman went to the back of the plane and told a flight crew member what had happened, asking that the police be present when the plane landed.
The federal government has exclusive jurisdiction over all sexual abuse cases that occur on aircraft in flight in the United States.
The charge to which Singh pleaded guilty carries a maximum potential penalty of two years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 23, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the Port Authority Police Department, under the direction of Superintendent Michael A. Fedorko, with the investigation leading to today’s plea.
The government is represented by J. Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark.
14-320Defense counsel: Assistant Federal Public Defender Candace Hom Esq., Newark
Singh, Devender Information
Attorney General Recognizes New Jersey U.S. Attorney's Office EmployeeRead the Press Release
WASHINGTON – Public Affairs Officer Rebekah E. Carmichael of the U.S. Attorney’s Office in the District of New Jersey was one of 243 members of the Department of Justice recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony today in Washington, D.C.
The District of New Jersey was one of 44 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks, Attorney General Holder told the awardees said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
Since her arrival in the District of New Jersey in the spring of 2010, Ms. Carmichael has enhanced the professionalism of the Public Affairs Office and worked with the media to keep the public well-informed about the important work of the office. Her thoughtful recommendations to the U.S. Attorney on opportunities to speak or write publicly on issues of concern in New Jersey and nationwide have raised awareness of the office’s work, as well as promoted its outreach efforts to the state’s diverse communities.
“Rebekah has worked tirelessly to improve our communication with the public we serve about the office’s critically important law enforcement mission,” U.S. Attorney Fishman said. “Her professionalism, messaging ability, excellent writing and editing skills, work ethic and devotion to her job ensure that the public is fully informed about the scope of our office’s mission and the extraordinary success of the dedicated lawyers and support staff who carry it out.”
Ms. Carmichael’s reputation for excellence in the DOJ public affairs community resulted in her appointment to a six–month detail (September 2012-March 2013) as the senior public affairs specialist and on-record spokesperson for the Criminal Division in Washington. She was responsible for fielding and responding to media inquiries, developing communications plans, enhancing relationships with news media and other stakeholders, and succinctly explaining and advocating official positions.
Ms. Carmichael is routinely called upon by public affairs officers in other districts for guidance on media-related matters, and played a significant role in developing the public affairs officer training course at the National Advocacy Center in South Carolina, where she regularly serves as an instructor. In 2013, she led the District of New Jersey’s entry into social media, starting its first Twitter feed, which now has more than 1,100 followers.
Ms. Carmichael and Christina DiIorio Sterling, of the District of Massachusetts, are the first-ever recipients of the award for Superior Performance in Public Affairs.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
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U.S. Department of Justice Awards $500,000 Crime-Fighting Grant to New JerseyRead the Press Release
Office of Justice Programs Funds U.S. Attorney-led Violence Reduction Effort in Jersey City
NEWARK, N.J. - The U.S. Department of Justice today awarded a $500,000 grant to New Jersey for a Project Safe Neighborhoods (PSN) program designed to reduce crime in Jersey City by focusing law enforcement efforts on gang and gun violence, U.S. Attorney Paul J. Fishman announced.
The New Jersey U.S. Attorney’s Office worked with partners in Jersey City and the N.J. Department of Law and Public Safety’s Division of Criminal Justice to develop the application that successfully competed against others from across the country.
“The goal of this project is to reduce violent crime in one of New Jersey’s largest and most densely populated cities,” U.S. Attorney Fishman said. “To do that, this grant will fund state-of-the-art methods to analyze criminal activity, improve information sharing among law enforcement agencies and collaboration with the community, and do a better job of getting services to where they are most needed.”
U.S. Attorney Fishman said Jersey City has made substantial progress in addressing gun crime and gang violence, particularly through its participation in the Violent Enterprise Source Targeting (VEST) Program, which was developed to dismantle criminal organizations through multi-agency collaboration to share intelligence, target the most violent offenders, and conduct sustained enforcement operations and coordinated prosecutions.
Jersey City plans to use the $500,000 PSN grant to expand and amplify the federal, state and local partnerships created by VEST. Project Safe Neighborhoods is a nationwide effort to reduce gang and gun violence by networking existing local programs and providing them with additional tools.
The New Jersey U.S. Attorney’s Office is responsible for establishing a collaborative PSN task force of federal, state, and local law enforcement and other community members to implement gang violence and gun crime enforcement, intervention and prevention initiatives within the district. The PSN Task Force will be expanded to include community partners, Rutgers University, as well as law enforcement. The law enforcement arm includes the Drug Enforcement Administration, the N.J. State Police, the N.J., Department of Corrections, Hudson County Prosecutor’s Office, Hudson County Sheriff’s Office and Jersey City Police Department. On the community level, collaborators will include the City of Jersey City, Rutgers University, Jersey City Employment and Training Program, which operates Jersey City’s reentry program led by former New Jersey Gov. Jim McGreevey, Jersey City Public Schools, Jersey City Department of Recreation, Urban Concerns, Boys & Girls Club of Hudson County, Jersey City Housing Authority, Interdenominational Ministerial Alliance of Jersey City, Jersey City Medical Center, Hudson County Chamber of Commerce, Urban League of Hudson County, and a network of additional non-profit and faith-based partners.
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South Jersey Man Admits Shooting Four Species of Protected Hawks in His Residential NeighborhoodRead the Press Release
NEWARK, N.J. - A Somers Point, New Jersey man admitted today to killing, or attempting to kill, four different species of hawks protected by federal law, U.S. Attorney Paul J. Fishman announced.
Robert Losasso, 69, pleaded guilty today to six counts of violating the Migratory Bird Treaty act for shooting the birds from his home. He entered his guilty plea before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
Losasso admitted that he fatally shot or attempted to shoot red-tailed, sharp-shinned, red-shouldered and Cooper’s hawks on several occasions. These species are among the tens of thousands of birds of prey that migrate every year from Canada along the Atlantic Flyway through New Jersey.
Losasso also admitted that he didn’t have any permit to shoot the birds.
The Migratory Bird Treaty Act is a statute that was enacted in 1918 and implements in the United States protections afforded migratory birds under several international conventions to which the United States is a party. Breeding populations of red-shouldered hawks are listed as endangered on the State of New Jersey’s Endangered and Threatened Wildlife list. Sharp-shinned hawks and populations of Cooper’s hawks also have special protections under New Jersey state law.
The charges to which Losasso pleaded guilty each carry a maximum potential penalty of six months in prison and a maximum fine equal to the greatest of $15,000 or twice the gross gain or loss resulting from the offenses. Sentencing is currently scheduled for Dec. 15, 2014.
In his plea agreement, Losasso also agreed to pay more than $4,000 in restitution to the wildlife rehabilitation centers that incurred losses treating or euthanizing hawks injured as a result of his conduct.
U.S. Attorney Fishman credited special agents of U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Resident Agent in Charge Carmine Sabia, with the investigation leading to the charges. He also thanked the New Jersey Division of Fish and Wildlife, Bureau of Law Enforcement, and the Somers Point Police Department for their roles in the case.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney's Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: Assistant Federal Public Defender Linda Foster Esq., Newark
Losasso, Robert Information
Former Officer of Cranbury, N.J., Furniture Importer Admits False Statements to Customs AuthoritiesRead the Press Release
NEWARK, N.J. - A Pennsylvania man today admitted lying to customs authorities in order to avoid $7 million in anti-dumping duties on children’s bedroom furniture imported from China, U.S. Attorney Paul J. Fishman announced.
John Sandiford, 66, of East Earl, Pennsylvania, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of importing merchandise from China by means of false statements.
According to documents filed in this case and statements made in court:
Sandiford was the managing director of a Cranbury, New Jersey, company that imported children’s wooden bedroom furniture from China. Importers must pay “anti-dumping” duties of 216 percent on some types of wooden bedroom furniture made in certain Chinese factories because those factories sell the furniture at less than fair value and materially injure U.S. industry. However, importers pay an anti-dumping duty of only 7.24 percent on the same types of furniture if it is made in Chinese factories that are not state-owned or controlled.
Between 2008 and 2011, Sandiford and others at his company imported furniture from factories with the 216 percent anti-dumping duty rate, but filed false customs documents and bills of lading stating that the furniture was made at factories with the 7.24 percent anti-dumping duty rate. These fraudulent documents enabled Sandiford’s company to avoid paying $7 million in anti-dumping duties.
The count with which Sandiford is charged carries a maximum penalty of two years in prison and a fine of $250,000 or twice the gain or loss caused by the offense. Sentencing is currently scheduled for Jan. 14, 2015.
U.S. Attorney Fishman credited special agents of U.S. Department of Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI), under the direction of Special Agent in Charge Andrew M. McLees, for the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Melissa L. Jampol of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit.
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Defense counsel: Barry Gross Esq., Philadelphia
Sandiford, John Information
Electronics Engineer Admits Lying on U.S. Army Contract Bid to Make Battery for Artillery Weapon Guidance SystemRead the Press Release
NEWARK, N.J. – An electronics engineer for the U.S. Army pleaded guilty today to making false statements in an attempt to obtain a government military contract to manufacture a portable power supply for U.S. Army use, U.S. Attorney Paul J. Fishman announced.
Modesto Torres, 49, of Dover, New Jersey, surrendered today to federal law enforcement and pleaded guilty to an information charging him with making false statements to the U.S. Department of Defense. He entered his guilty plea before U.S. District Court Judge William J. Martini in Newark federal court and was released on $25,000 unsecured bond.
According to documents filed in this case and statements made in court:
In June 2012, Torres, an electronics engineer for the U.S. Army at Picatinny Arsenal, sought to bid – through a company referred to in court documents as “Company A” – on a contract with the U.S. Army. The winner of the contract would manufacture the Artillery Portable Universal Battery Supply, or “APUBS,” a battery that powered the guidance system on the 105 mm Howitzer, a type of artillery weapon used by the U.S. military.
Torres prepared the majority of the content of the proposal submitted to a U.S. Army bidding officer. During his guilty plea, Torres admitted that he included fabricated biographies of personnel not employed by the company, as well as false representations regarding the company’s supplier relationships with manufacturers based in Puerto Rico and China when no such relationships existed.
The charge of false statements carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is currently scheduled for Jan. 14, 2015.
U.S. Attorney Fishman credited special agents with the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig Rupert; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit in Newark.
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Defense counsel: Joel M. Bacher Esq., Wayne, N.J.
Torres, Modesto Information
Attorney Admits Role in Investment and Real Estate FraudsRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, attorney today admitted his role in a scheme that defrauded investors in connection with a Facebook IPO and several real estate deals, U.S. Attorney Paul J. Fishman announced.
Fred Todd, 61, of Lakewood, New Jersey, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of conspiracy to commit wire fraud and one count of transacting in criminal proceeds.According to documents filed in this case and statements made in court:
Todd is an attorney with offices in Seaside Heights, New Jersey, and Los Angeles, California. His two co-defendants, Eliyahu Weinstein, 39, of Lakewood, and Aaron Glucksman, 41, of Brooklyn, New York, have already pleaded guilty to charges related to their roles in the scheme.
Weinstein, already convicted and sentenced to 22 years in prison in a separate Ponzi scheme, pleaded guilty on Sept. 3, 2014, to three counts of an indictment pending against him: one count of conspiracy to commit wire fraud, one count of committing wire fraud while on pretrial release, and one count of money laundering. He is scheduled to be sentenced on those charges on Dec. 15, 2014.
Glucksman has also pleaded guilty and was sentenced by Judge Pisano on May 5, 2014, to 52 months in prison, three years of supervised release, and ordered him to forfeit $1.2 million. Judge Pisano ordered Glucksman’s sentence to run partially concurrently with a 36-month sentence recently imposed by U.S. District Judge Raymond J. Dearie of the Eastern District of New York in an unrelated case.
In February 2012, Todd and his conspirators offered a pair of investors (referred to in the information as the “Facebook victims”) the opportunity to purchase large blocks of Facebook shares prior to the company’s initial public offering, or IPO, in May 2012. The offer was particularly attractive because large blocks of the shares were extremely difficult to get and were expected to increase in value at the time of the IPO. Weinstein and his conspirators did not actually have access to the shares.
Based on misrepresentations by the conspirators, the Facebook victims wired millions of dollars between February and March of 2012 to an account Weinstein and a conspirator controlled. Weinstein and another conspirator provided investors with false documents showing companies owned by various conspirators held assets, which would secure the Facebook victims’ investment.
The conspirators did not use any of the Facebook victims’ money to purchase Facebook shares, instead misappropriating it for their own use.
Around the same time, Todd and his conspirators also persuaded victims to invest in the purported purchase of an apartment complex in Florida. They told the victims that Weinstein had the opportunity to purchase the notes on the condominiums at a discounted price and immediately flip it at a substantial profit. The victims wired money to complete the purchase, but Todd and his conspirators instead used the money for their own purposes.
The conspiracy count to which Todd pleaded guilty carries a maximum potential penalty of 20 years in prison; the transacting in criminal proceeds count carries a maximum potential penalty of 10 years in prison. Both are also punishable by a potential fine of $250,000 or twice the gross loss or gain from the scheme, whichever is greater.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for their role in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig; Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit; Assistant U.S. Attorneys Zach Intrater of the Economic Crimes Unit; and Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
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Defense counsel: James Filan Esq., Westport, Conn.Todd, Fred Information
Monmouth County, N.J. Doctor Admits Structuring and Tax ChargesRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, doctor today admitted he structured transactions in order to avoid reporting requirements and filed false tax returns, U.S. Attorney Paul J. Fishman announced.
Dr. Paul DiLorenzo, 60, of Ocean Township, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to Counts Two and 12 of a second superseding indictment charging him with structuring financial transactions and helping to file false tax returns.
According to documents filed in this case and statements made in court:
Between 2009 and June 27, 2012, DiLorenzo received more than $2 million in cash payments from his patients. On at least 35 occasions, the office received payments exceeding $10,000 in a single day. Between May 28, 2009, and Nov. 2, 2011, DiLorenzo deposited approximately $1 million in cash into banks accounts in his name and in the name of his business. The deposits included 150 separate transactions, all but one of which were for amounts of less than $10,000. Transactions of $10,000 or more trigger Currency Transaction Report requirements. DiLorenzo admitted he made the deposits for less than $10,000 to evade the reporting requirement.
On March 29, 2011, DiLorenzo helped his accountant file a U.S. Individual Income Tax Return, Form 1040, for the 2010 tax year, reporting gross receipts of $444,331, knowing his gross receipts were approximately $1 million. In May 2012, DiLorenzo helped his accountant prepare a tax return for the 2011 tax year in which he reported gross receipts of $537, 236. In fact, his gross receipts were in excess of $800,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; special agents of IRS-Criminal Investigations, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and special agents and task force officers from the Tactical Diversion Squad of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl Kotowski, with the investigation leading to today’s guilty plea.
The structuring charge carries a maximum potential penalty of 10 years in prison and a fine of $500,000; the tax charge carries a maximum potential penalty of three years in prison and a fine of up to $250,000. Sentencing is scheduled for Dec. 18, 2014.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office in Trenton and Yael Epstein, Trial Attorney with the U.S. Department of Justice, Tax Division.
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Defense counsel: Robert J. DeGroot Esq., Newark
DiLorenzo, Paul SSuperseding Indictment
Hudson County, N.J., Financial Consultant Admits Tax EvasionRead the Press Release
NEWARK, N.J. - A Hoboken, New Jersey, financial consultant today admitted evading payment of taxes on approximately $273,000 in commission payments received from an insurance broker, U.S. Attorney Paul J. Fishman announced.
John Twomey Booth, 66, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count Three of an information charging him with willfully attempting to evade the payment of federal personal income tax for calendar year 2008.
According to documents filed in this case and statements made in court:
Booth was a financial consultant who operated in Hoboken and elsewhere. Beginning in March 2006 and continuing through December 2009, Booth accepted hundreds of thousands of dollars in payments from an insurance broker based in Towson, Maryland, whose companies provided insurance brokerage services for New Jersey municipal entities—including the Weehawken Board of Education and the Union City Board of Education. Booth directed the insurance broker and others to make payments to four entities controlled by Booth.
Booth used the funds to pay for his personal expenses and withdraw cash. Despite receiving approximately $719,000 in income during the calendar years 2006, 2007, 2008, and 2009, including approximately $273,000 from the insurance broker, Booth failed to report any of this income to the IRS, causing a loss to the government of $119,731.
The tax evasion count to which Booth pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 15, 2014.
U.S. Attorney Fishman credited special agents of IRS—Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, and the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: Richard Lawler Esq., New York
Booth, John Twomey Information
Union County, N.J., Pastor Admits Role in $15 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A pastor of the now-defunct ReBirth International Church in Elizabeth, New Jersey, admitted today to defrauding 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.
Sean A. Souels, 44, of Linden, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to a second superseding indictment charging him with one count of conspiracy to commit wire fraud.
Souels was among 11 defendants charged in July 2012 with conspiracy to commit wire fraud and conspiracy to commit money laundering. Two additional defendants, Nicholas Tarsia, 65, of Totowa, N.J., and Mashon Onque, 43, of East Orange, N.J., were charged in November 2013 with conspiracy to commit wire fraud. Tarsia was also charged with one count of conspiracy to commit money laundering.
According to the documents filed in this case and statements made in court:
Souel’s conspirators, including Darryl Henry, 48, of Somerset, New Jersey, and Jerry Smith, 48, of Rahway, New Jersey – who both pleaded guilty before Judge Simandle; Henry in March of 2009 and Smith in December, 2011 – located oceanfront condominiums overbuilt by financially distressed developers and negotiated 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, Fla. – 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.
In 2007, Souels agreed with Henry and Smith to recruit a church member to purchase a Wildwood Crest property at an inflated rate. In order for the “straw purchaser” to appear more creditworthy, Souels submitted documents fraudulently claiming that the church member was employed as the president of operations at ReBirth International Church. Once the loan was approved and the mortgage lender sent the loan proceeds in connection with real estate closing, Souels received $30,000 from his conspirators.
The wire fraud conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. Souels is scheduled to be sentenced on 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, 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 guilty plea.
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: Jose Ongay Esq., Haddon Heights, N.J.
Ricks, Timothy, et al., Superseding Indictment
Seafood Company and Owner Sentenced for False Records Conspiracy, Overharvesting Sea Scallops Off Atlantic CoastRead the Press Release
Company owner sentenced to 30 months in prison
NEWARK, N.J. – The owner of a Maine seafood company was sentenced to 30 months in prison today for his role in concealing 79,666 pounds of Atlantic sea scallops harvested off the coast of New Jersey and Cape Cod, Massachusetts, New Jersey U.S. Attorney Paul J. Fishman announced.
The owner of D.C. Air & Seafood, Christopher Byers, 42, of Winter Harbor, Maine, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with conspiring with his company and six fishing boat operators to prepare false reports to conceal the overharvesting. Judge Walls imposed the sentence today in Newark federal court. The six boat operators previously pleaded guilty before Judge Walls and await sentencing.
According to documents filed in this case and statements made in court:
D.C. Air & Seafood, a seafood wholesaler, purchased Atlantic sea scallops harvested by federally permitted vessels in the Elephant Trunk Access Area – a large sea scallop fishing ground off the mid-Atlantic coast. That area and others managed by the National Oceanic and Atmospheric Administration (NOAA) had been closed to fishing as part of an area rotation management program to rebuild the scallop population, but were open to limited scallop fishing by federally permitted vessels for two-week periods in March 2007, July 2007 and March 2008.
During those periods, individual vessels were restricted to harvesting no more than 400 pounds of scallops per vessel per trip. Vessels operated by the conspiring boat operators failed to report 79,666 pounds of scallops harvested off the coast of New Jersey and Cape Cod for purchase by D.C. Air & Seafood during the permit periods. Some of the scallops were off-loaded from the vessels in Atlantic City, New Jersey, to trucks used by Byers and D.C. Air & Seafood.
Byers admitted during his guilty plea that he, D.C. Air & Seafood and the six boat operators conspired to conceal the overharvesting of scallops by preparing fishing vessel trip reports – required to be submitted to NOAA – which falsely represented the amount of scallops harvested on certain vessel trips was 400 pounds or less.
As part of its plea agreement, D.C. Air & Seafood agreed to pay $520,371 in restitution to the United States – representing the value of the sea scallops – and to be placed on probation for five years. During the probationary period, the company will be subject to the terms of an environmental compliance plan to ensure all purchases and sales of fish comply with federal law. The company agreed not to participate in the scallop industry during that time.
In addition to the prison term, Judge Walls sentenced Byers to three years of supervised release and ordered him to pay restitution in the amount of $520,371.
U.S. Attorney Fishman credited special agents of the National Oceanic and Atmospheric Administration, under the direction of Special Agent in Charge Logan Gregory, with the investigation.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: William J. Hughes Esq., Atlantic City, N.J.Passaic County, N.J., Man Sentenced to 10 Years in Prison for Possession of Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A former delivery driver from Totowa, New Jersey, was sentenced today to 120 months in prison for possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Anthony Chiampi, 49, previously pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to an information charging him with one count of possession of child pornography. U.S. District Judge Faith S. Hochberg imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Chiampi is registered sex offender, having been previously convicted for endangering the welfare of a child. As a result, he is subject to community supervision for life.On March 14, 2013, as part of his community supervision, officers of the N.J. Division of Parole visited Chiampi’s residence in Totowa. The officers discovered 63 disks that contained images and videos depicting child sexual abuse, including material that involved prepubescent minors.
In addition to the prison term, Judge Hochberg sentenced Chiampi to 10 years of supervised release.
U.S. Attorney Fishman credited the N.J. State Parole Board, under the direction of Chairman James T. Plousis, and 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. Attorney Danielle M. Corcione of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: David A. Holman Esq., Assistant Federal Public Defender, NewarkNew York Man Admits Participating in Six Armed Robberies of New Jersey and New York Electronics StoresRead the Press Release
TRENTON, N.J. – A Brooklyn, New York, man admitted today to participating in six armed electronic store robberies, including robberies in Linden, New Jersey and Paramus, New Jersey, U.S. Attorney Paul J. Fishman announced.
Carl Williams, 30, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to a superseding indictment charging him with conspiracy to commit Hobbs Act robberies and brandishing a firearm in furtherance of a crime of violence. Williams has been in custody since his arrest on Feb. 14, 2013.
According to documents filed in this case and statements made in court:
Between June 11, 2012, and Jan. 16, 2013, Williams conspired with others to commit a series of armed electronics store robberies in New Jersey and New York. During each robbery, Williams and other conspirators would assign “look-outs” to remain outside while the rest of the group, armed with a gun, entered the store, locked the front doors, and tied-up employees and customers with zip ties before stealing the merchandise.
The charge of conspiracy to commit Hobbs Act robberies carries a maximum potential penalty of 20 years in prison. The charge of brandishing a firearm in furtherance of a crime of violence carries a mandatory minimum of seven years in prison, which must run consecutive to any other prison sentence imposed, and a maximum of life in prison. Each count carries a maximum fine of $250,000. 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, with the investigation leading to today’s guilty plea. He also thanked the Linden and Woodbridge police departments in New Jersey, as well as the New York City and Nassau County police departments and the Kings County District Attorney’s Office in New York for their work in this case.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division.
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Williams, Carl Superseding Indictment
New Jersey Man Pleads Guilty to Operating Fraudulent Visa and Payroll Scheme to Facilitate Illegal ImmigrationRead the Press Release
NEWARK, N.J. – A New Jersey man pleaded guilty today to orchestrating an eight-year scheme to falsify employment certifications to facilitate the illegal entry of Indian immigrants into the United States and to filing a false tax return.
U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Chief Richard Weber of Internal Revenue Service – Criminal Investigation (IRS-CI) and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
Sandipkumar Patel, 41, of Edison, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to conspiring to defraud the United States and to filing a false federal income tax return. Sentencing is scheduled for Jan. 6, 2015.
According to court documents filed with the plea agreement, from 2001 until 2009, Patel sponsored the visa applications of Indian nationals by falsely claiming to provide employment for them in the United States. Patel falsely certified on the visa applications that he would employ the immigrants in various technical fields at several New Jersey companies, thereby facilitating their illegal entry into the United States. Over the course of the scheme, immigrants paid Patel thousands of dollars for the false certifications to fraudulently secure the visas. To disguise the scheme, Patel issued payroll checks and other payroll forms. Patel required the immigrants to return the money from the checks and also to reimburse him for his payroll tax expenses. Patel used the fraudulent pay stubs and payroll checks to support false applications to extend the visas, and Patel charged the immigrants fees for the visa extensions.
As a result of falsely carrying the immigrant employees on his payrolls, Patel overstated his payroll expenses on his federal income tax returns by more than $1.4 million over four years, under-reporting his tax obligation by over $400,000 for those years.
This case was investigated by IRS-CI and DSS. The case is being prosecuted by Senior Trial Attorneys Hope S. Olds and William H. Kenety of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Danielle M. Corcione of the District of New Jersey, with assistance from the Criminal Division’s Asset Forfeiture and Money Laundering Section.
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Patel, Sandipkumar Information
Former Senior Vice President of Marketing at A&P Sentenced to Three Years in Prison for Wire FraudRead the Press Release
NEWARK N.J. – The former senior vice president of marketing at A&P, a U.S. supermarket and liquor store chain, was sentenced today to 36 months in prison for his role in a scheme to defraud A&P by selling for personal gain event tickets that were intended for A&P’s use, U.S. Attorney Paul J. Fishman announced.
John R. Moritz, 45, of Mason, Ohio, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
From December 2010 through December 2011, Moritz worked at A&P, a U.S. supermarket and liquor store chain headquartered in Montvale, New Jersey. He arranged for A&P to purchase thousands of tickets to sporting events, concerts and other shows that were to be used to reward high-performing A&P employees and for other legitimate business purposes. However, Moritz resold more than 7,000 tickets to third parties over the internet, without A&P’s knowledge or consent. Some of these tickets were for the 2011 Super Bowl, the 2011 New York Yankees playoff games and Bon Jovi, Lady Gaga and U2 concerts. He admitted that as a result of his conduct he fraudulently obtained $1,218,192.
In addition to the prison term, Judge McNulty sentenced Moritz to three years of supervised release and ordered to pay restitution of $3.2 million.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark and Evan Weitz of the Asset Forfeiture and Money Laundering Unit.
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Defense Counsel: Lawrence S. Feld Esq. and Paul Silverman Esq. New YorkFormer Senior Vice President of Marketing at A&P Sentenced to Three Years in Prison for Wire FraudRead the Press Release
NEWARK N.J. – The former senior vice president of marketing at A&P, a U.S. supermarket and liquor store chain, was sentenced today to 36 months in prison for his role in a scheme to defraud A&P by selling for personal gain event tickets that were intended for A&P’s use, U.S. Attorney Paul J. Fishman announced.
John R. Moritz, 45, of Mason, Ohio, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
From December 2010 through December 2011, Moritz worked at A&P, a U.S. supermarket and liquor store chain headquartered in Montvale, New Jersey. He arranged for A&P to purchase thousands of tickets to sporting events, concerts and other shows that were to be used to reward high-performing A&P employees and for other legitimate business purposes. However, Moritz resold more than 7,000 tickets to third parties over the internet, without A&P’s knowledge or consent. Some of these tickets were for the 2011 Super Bowl, the 2011 New York Yankees playoff games and Bon Jovi, Lady Gaga and U2 concerts. He admitted that as a result of his conduct he fraudulently obtained $1,218,192.
In addition to the prison term, Judge McNulty sentenced Moritz to three years of supervised release and ordered to pay restitution of $3.2 million.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark and Evan Weitz of the Asset Forfeiture and Money Laundering Unit.
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Defense Counsel: Lawrence S. Feld Esq. and Paul Silverman Esq. New YorkFormer FBI Special Agent, Owner of Retail Pharmacy Plead Guilty to Conspiracy to Defraud the IRSRead the Press Release
TRENTON, N.J. - A former FBI special agent and his wife today admitted colluding to hide her income as part-owner of a retail pharmacy in Piscataway, New Jersey, from the Internal Revenue Service – instead using the cash to pay for home renovations and other personal expenses, U.S. Attorney Paul J. Fishman announced.
Pritesh Desai, 47, and his wife, Darshna Desai, 45, both of Watchung, New Jersey, surrendered to federal authorities this morning. Each pleaded guilty to one count of conspiring to defraud the IRS. The pair entered their guilty pleas to an information before U.S. District Judge Michael A. Shipp in Trenton federal court.
According to documents filed in this case and statements made in court:
At the time of the conspiracy, Pritesh Desai was employed as a special agent with the FBI’s New York Field Office until his resignation in July 2013, and Darshna Desai was a part-owner in DVS Pharma Inc., known as Heights Pharmacy. From June 2004 to June 2012, the couple conspired with each other and with Darshna Desai’s partner to conceal cash income from the pharmacy.
Darshna Desai admitted that she or her partner would separate the cash earned by Heights Pharmacy from other income received, pay a portion to Darshna Desai as cash salary, and then split the remainder.
Pritesh and Darshna Desai admitted they took certain actions to conceal her share of the cash, depositing it into various financial institutions and multiple accounts. They also acknowledged they used cash to pay personal living expenses, including renovating their residence, and gave cash to others in exchange for checks the Desais deposited in their personal bank accounts. Pritesh Desai also admitted providing false information to his employer, the FBI, when submitting financial disclosure forms for years 2007 through 2011. He falsely claimed the cash held by his family was gifts from other family members.
For tax years 2004 through 2011, Darshna Desai and her partner filed false corporate income tax returns for the pharmacy. For those same tax years, Darshna Desai and Pritesh Desai filed false joint personal income tax return which also failed to disclose the cash. The total tax loss from the fraud was between $200,000 and $400,000.
The offense to which the Desais pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for Dec. 11, 2014.
U.S. Attorney Fishman credited special agents of the Department of Justice, Office of the Inspector General, under the direction of Special Agent in Charge Ronald G. Gardella, and IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Maureen Nakly and Jacques Pierre of the U.S. Attorney’s Special Prosecutions Division in Newark.
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Pritesh Desai: Michael Critchley and John Vazquez Esqs., Roseland, N.J.
Darshna Desai: Lawrence Horn and Richard Sapinski Esqs., NewarkDesai, Pritesh, Information
Desai, Darshna InformationConvicted Ponzi Schemer Eliyahu Weinstein Admits New Fraud and Money Laundering ChargesRead the Press Release
Defrauded Investors in Facebook IPO and Real Estate Deals
TRENTON, N.J. – Convicted Ponzi schemer Eliyahu Weinstein, 39, of Lakewood, N.J., who was previously sentenced to 22 years in prison for running a real estate investment fraud scheme that caused $200 million in losses, today admitted that he also defrauded investors in connection with the Facebook IPO and several additional real estate deals and then laundered the proceeds of the scheme, U.S. Attorney Paul J. Fishman announced.
Weinstein pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to three counts of an indictment pending against him: one count of conspiracy to commit wire fraud, one count of committing wire fraud while on pretrial release, and one count of money laundering.Two co-defendants, Alex Schleider, 48, of Lakewood, and Aaron Glucksman, 41, of Brooklyn, New York, have already pleaded guilty to charges related to their roles in the scheme. Judge Pisano sentenced Glucksman on May 5, 2014, to 52 months in prison, three years of supervised release, and ordered him to forfeit $1.2 million. Judge Pisano ordered Glucksman’s sentence to run partially concurrently with a 36-month sentence recently imposed by U.S. District Judge Raymond J. Dearie of the Eastern District of New York in an unrelated case. Glucksman remains on release pending his designation to a federal institution by the U.S. Department of Justice, Bureau of Prisons. Schleider is scheduled to be sentenced Sept. 18, 2014.
“Even while facing federal charges that eventually netted him decades in prison, Weinstein couldn’t resist the buzz around the Facebook IPO and the opportunity to fleece unsuspecting investors,” U.S. Attorney Fishman said. “Shamelessly, he even used the money he stole to pay the legal fees he accumulated from the previous scam.”
“Eliyahu Weinstein spent the greater part of a decade creating and executing a series of elaborate fraudulent investment schemes, ultimately defrauding victims of over $200 million by taking advantage of trusted relationships and innocent investors,” Aaron T. Ford, FBI Special Agent in Charge, Newark, said. “This long-term, complex investigation required much in terms of investigative resources. The FBI, through its vast experience investigating investment schemes, was able to provide such resources, resulting in the arrest and today’s guilty plea of Eliyahu Weinstein.”
According to documents filed in this case and statements made in court:
In February 2012, Weinstein and his fellow conspirators offered a pair of investors (referred to in the indictment as the “Facebook victims”) the opportunity to purchase large blocks of Facebook shares prior to the company’s initial public offering, or IPO, in May 2012. The offer was particularly attractive because large blocks of the shares were extremely difficult to get and were expected to increase in value at the time of the IPO. Weinstein and his conspirators did not actually have access to the shares.
Based on misrepresentations by Weinstein and his conspirators, the Facebook victims wired millions of dollars between February and March of 2012 to an account Weinstein and a conspirator controlled. Weinstein and another conspirator provided investors with false documents showing companies owned by various conspirators held assets, which would secure the Facebook victims’ investment.
The conspirators did not use any of the Facebook victims’ money to purchase Facebook shares, instead misappropriating it for their own use. Weinstein used some of the money to pay lawyers and experts representing him in his earlier – and at that time, still pending – criminal case and in related civil matters. Weinstein and his conspirators also used the Facebook victims’ money to make investments in businesses unrelated to Facebook and to make loans for their own benefit.
Around the same time, Weinstein and his conspirators also persuaded the Facebook victims to invest in the purported purchase of an apartment complex, “Belle Glade Gardens,” in Florida. They told the Facebook victims that Weinstein had the opportunity to purchase Belle Glade Gardens at a discounted price and immediately flip it at a substantial profit. Weinstein and his conspirators further told the Facebook victims that Weinstein had already placed $2.5 million in the trust account of a Miami law firm for the transaction; that if the Facebook victims contributed another $2.5 million toward the transaction, those funds would remain in escrow at the Miami law firm until the deal closed; and that the Facebook victims would be repaid within 60 days. The Facebook victims wired $2.83 million to the Miami law firm in order to complete the Belle Glades Gardens transaction. Weinstein and his conspirators did not use the money to purchase Belle Glades Gardens. Instead, they redirected the money from the law firm to accounts that they controlled, returned $1.8 million to the Facebook victims as a purported return on their Facebook investment, and used the remaining money for their own purposes.
In July 2012, Weinstein approached another group of investor victims (referred to in the indictment as the “Florida condominium victims”) and told them he had the opportunity to purchase the notes on seven condominiums in Florida at a discounted price of $3 million. Weinstein and his conspirators falsely represented that they had already paid $1.5 million toward the deal, and that they needed only $1.5 million to complete the transaction. They claimed that the properties had an annual rental income of approximately $780,000 and provided to the Florida condominium victims fraudulent documentation purporting to verify this fact. The victims transferred $1.5 million to Weinstein and his conspirators between August 2012 and December 2012. Weinstein did not use this money to purchase the notes on the Florida condominiums – many of which he himself had previously owned and lost to foreclosure. Instead, Weinstein and his conspirators converted the money to their own use.
Throughout the scheme, Weinstein was already under indictment and on pretrial release, and was prohibited from engaging in any monetary transaction for more than $1,000 without the approval of court-appointed special counsel. Weinstein pleaded guilty on Jan. 3, 2013, before Judge Pisano to two counts of that indictment, admitting he ran a Ponzi-style real estate investment fraud scheme that caused $200 million in losses and then laundered the proceeds of the scheme. Judge Pisano sentenced Weinstein on Feb. 25, 2014, to 264 months in prison and ordered him to pay more than $200 million in restitution and forfeiture to the victims of his scheme.
The counts to which Weinstein pleaded guilty today carry the following maximum potential penalties: 20 years in prison on the conspiracy count; 30 years in prison on the wire fraud while on pretrial release count (20 years on the wire fraud plus 10 years for commission while on pretrial release); and 10 years on the money laundering count. All the counts are also punishable by a maximum fine of the greater of $250,000 or twice the amount of Weinstein’s gain from the scheme. Sentencing is scheduled for Dec. 15, 2014.
Charges against a third conspirator, Aaron Muschel, 64, of Brooklyn, NY, who was charged in the criminal complaint filed against Weinstein and Schleider in May 2013, remain pending. The charges against him are merely accusations and he is presumed innocent until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for their role in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig; Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit; Assistant U.S. Attorneys Zach Intrater of the Economic Crimes Unit; and Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
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Defense counsel: Eric Creizman Esq., New York
Weinstein, Eliyahu Indictment
Essex County, N.J., Man Charged in Armed Robberies of New Jersey HotelsRead the Press Release
NEWARK, N.J. – An Orange, New Jersey, man was taken into federal custody today and is expected to make his initial court appearance this afternoon for allegedly committing six armed robberies of New Jersey hotels, U.S. Attorney Paul J. Fishman announced.
Tremone Burnett, 42, is charged by complaint with six counts of committing a Hobbs Act robbery and one count of using a firearm during a crime of violence. He was previously charged with related offenses by the Essex County Prosecutor’s Office and has been in state custody. Burnett is expected to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the complaint unsealed today:
From May 9, 2014, through June 19, 2014, Burnett robbed at least six New Jersey hotels at gunpoint: in Carteret, Lebanon, Newark, Rockaway, and Secaucus. In each of the robberies, Burnett pointed a handgun at a hotel employee and, in some instances, tied the victim’s hands and feet. During the course of the robberies, Burnett also variously stole uncashed employee checks, safe deposit boxes, an ATM, and a personal credit card in addition to cash.
The Hobbs Act charges each carry a maximum penalty of 20 years in prison. The charge of brandishing a firearm during a crime of violence carries a maximum penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s charges, along with the Essex County Prosecutor’s Office and Newark Police Department. He also credited the Carteret, Edison, Lebanon, Rockaway, Parsippany, Weehawken and Woodbridge Township police departments in New Jersey; and the Clarkstown and Ramapo police departments in New York – along with the New Jersey State Police and the Bergen County, Hunterdon County, Middlesex County, and Morris County Prosecutors’ Offices for their work on this case.
The government is represented by Assistant U.S. Attorney Barry A. Kamar 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.
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Defense counsel: Assistant Federal Public Defender Chester Keller Esq., Newark
Burnett, Tremone ComplaintBelleville, N.J., Man Admits Role in $15 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – An Essex County, New Jersey, man today admitted conspiring to defraud financial institutions as part of a $15 million mortgage fraud scheme that used phony documents and “straw buyers” to make illegal profits on overbuilt condos, U.S. Attorney Paul J. Fishman announced.
Larry Fullenwider, 63, of Belleville, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to a second superseding indictment charging him with one count of conspiracy to commit wire fraud. Using the alias “Stanley Hyde," Fullenwider admitted purchasing four condominiums in North Wildwood, New Jersey, after presenting a false identification and using fake documents to support fraudulent loan applications.
According to the documents filed in this case and statements made in court:
Fullenwider was among 11 defendants charged in July 2012 with conspiracy to commit wire fraud and conspiracy to commit money laundering. Two additional defendants, Nicholas Tarsia, 65, of Totowa, New Jersey, and Mashon Onque, 43, of East Orange, New Jersey, were charged in November 2013 with conspiracy to commit wire fraud. Tarsia was also charged with one count of conspiracy to commit money laundering.
Fullenwider’s conspirators, including Timothy Ricks, 46, of East Orange, and Kinard Henson of Ventres, Alabama, who both pleaded guilty before Judge Simandle – Ricks in February 2013 and Henson in February 2014 – located oceanfront condominiums overbuilt by financially distressed developers and negotiated 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 sale and finder’s fee agreements.
Fullenwider served as a “straw buyer” and purchased four North Wildwood properties at the inflated rates in late January and early February of 2007. Fullenwider used the alias “Stanley Hyde” and a false Social Security number to purchase the properties. In order to qualify for mortgage loans, Fullenwider and his conspirators created false documents, such as fake W-2 forms, pay stubs, bank statements and investment statements, to make him (and other straw buyers) appear more creditworthy.
Fullenwider and his conspirators caused fraudulent mortgage loan applications in his name, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Fullenwider received a portion of the proceeds from his conspirators after they had funds wired or checks deposited into various accounts they controlled. Fullenwider’s conspirators also distributed a portion of the proceeds to other members of the conspiracy for their respective roles.
The wire fraud conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is 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; and IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen in Newark, for the investigation leading to today’s guilty plea.
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.
14-301Defense counsel: Brian O’Malley Esq., Haddon Heights, N.J.
Fullenwider, Larry Superseding Indictment
East Brunswick, N.J., Man Admits Distributing Child Sex Abuse Images from His Home ComputerRead the Press Release
NEWARK, N.J. - An East Brunswick, New Jersey, man admitted today to sharing images of child sexual abuse from his home computer, U.S. Attorney Paul J. Fishman announced.
Armia Alber, 28, entered his guilty plea today before U.S. District Judge Stanley R. Chesler in Newark federal court to an indictment charging him with distributing images of child pornography over the Internet. Alber was initially arrested in July 2013.
According to documents filed in the case and statements made during Alber’s guilty plea proceeding:
Alber admitted that between March and July 2013, he was a member of an online peer-to-peer file sharing network and had more than 600 images or videos of children being sexually abused. Alber also admitted he made images and videos of child pornography available for other members to download from his “shared” folder. During this period, a law enforcement agent successfully downloaded multiple images and videos of child sexual abuse from Alber’s computer.
On July 25, 2013, federal law enforcement agents executed a search warrant at Alber’s residence. The agents recovered two computer hard drives, both of which contained numerous images and videos of child pornography.
As part of his guilty plea, Alber 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.
The distribution of child pornography count to which Alber pleaded guilty carries a mandatory minimum penalty of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for Dec. 16, 2014.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s guilty plea. He also thanked the Middlesex County Prosecutor’s Office and the East Brunswick Police Department for their roles in the search and arrest.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Office General Crimes Unit in Newark.14-299
Defense counsel: Assistant Federal Public Defender Carol Gillen Esq., Newark
Alber, Armia Information
Essex County, N.J., Man Admits Smuggling Drugs into Federal Detention FacilityRead the Press Release
TRENTON, N.J. – An East Orange, New Jersey, man today admitted his involvement in a scheme to smuggle marijuana and tobacco into the Essex County Correctional Facility, U.S. Attorney Paul J. Fishman announced.
Vladimir Sauzereseteo, 40, 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 smuggle contraband into a federal detention facility.
According to documents filed in this case and statements made in court:
From September 2013 to January 2014, Sauzereseteo, an associate of Muhammad Subpunallah, 32, a federal detainee at the Essex County Correctional Facility, delivered marijuana and tobacco to Brian Kapalin, 67, of Maplewood, New Jersey, a lawyer who smuggled the contraband into the jail in exchange for a cash fee.
On one occasion in January 2014 Kapalin spoke with Subpunallah over a recorded jail phone. Subpunallah asked Kapalin to deliver contraband to an inmate at the Essex County Correctional Facility. After receiving $1,650 via Western Union money transfers, Sauzereseteo used the money to purchase marijuana and delivered the drugs to Kapalin, along with a cash payment for Kapalin’s service. A few days later, Kapalin met an inmate in the attorney conference room at the Essex County Correctional Facility and gave him the marijuana.
The conspiracy charge to which to Sauzereseteo pleaded guilty carries a maximum potential penalty of five years in prison and a maximum fine of $250,000. Sentencing is scheduled for Dec. 4, 2014. Charges against Kapalin and Subpunallah are still pending, and they are considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and investigators with the Internal Affairs Division of Essex County Jail, under the direction 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 office’s Criminal Division, Organized Crime/Gangs Unit, in Newark.
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Defense counsel: Lorraine Gauli-Rufo Esq., Verona, New JerseySauzereseteo, Vladimir Information
Newark Man Charged with Additional Counts of Producing Child Pornography for Recording His Sexual Abuse of GirlRead the Press Release
NEWARK, N.J. – A Newark man was indicted by a federal grand jury today on three additional counts of producing images of child sexual abuse for allegedly abusing a prepubescent girl repeatedly and filming the abuse, U.S. Attorney Paul J. Fishman announced.
Pedro Rios, 58, was charged in a superseding indictment with a total of five counts of production of child pornography and one count each of possession and distribution of child pornography. The case has been assigned to U.S. District Judge Stanley R. Chesler. An arraignment will be scheduled.
According to the documents filed in this case and statements made in court:Law enforcement officers executed a search warrant at Rios’s home in Newark on Feb. 5, 2013. A forensic review of the computer equipment seized revealed several video files of child pornography which appear to be self-produced and allegedly depict Rios on camera engaging in sexually explicit conduct with a prepubescent female in the rear of a cab of a tractor trailer truck.
Law enforcement officers identified and interviewed the female, who allegedly said Rios would periodically drive her to his tractor trailer truck in Union County, N.J., where he would undress her and have sexual contact and sexual relations with her and record the encounters. Rios allegedly threatened to hurt the victim’s family if she told anyone.
Each 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. Rios remains detained.
U.S. Attorney Fishman credited special agents of the FBI Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and the N.J. Regional Computer Forensics Laboratory with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.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: Brian J. Neary Esq., Hackensack, N.J.
Rios, Pedro Superseding Indictment
Bergen County, N.J., Man and Disbarred New York Attorney Indicted for Real Estate Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – Two men were indicted by a federal grand jury today for allegedly using a real estate investment scheme to defraud 15 victims of more than $3 million, U.S. Attorney Paul J. Fishman announced.
Paul Mancuso, 46, of Glen Rock, New Jersey, is charged by indictment with one count of conspiracy to commit wire fraud and five counts of wire fraud. Pasquale Stiso, 52, of West Harrison, New York, is charged by indictment with one count of conspiracy to commit wire fraud and one count of wire fraud.
According to documents filed in this case:
Since 2009, Mancuso posed as a real estate investor, broker and developer, as well as a “hard money” lender for other investments. Stiso, a disbarred attorney, held himself out as an individual working with Mancuso on various investment projects.
Mancuso and Stiso fraudulently obtained financing for projects that did not exist or in which they had no actual involvement. Some of the purported projects touted by Mancuso, Stiso, and other conspirators included investments in a phony ticket scam, the development of a pizzeria at a resort in the Bahamas, the development of a casino in Atlantic City, the development of a commercial shopping center, and the “flipping” of a piece of real estate in Matawan.
Victims lost all of their investments or life savings in Mancuso’s schemes. Instead of funding the purported projects, Mancuso and Stiso used the money for personal expenses and financing their involvement in illegal gambling pursuits.
The charge of wire fraud conspiracy and each substantive count of wire fraud carry a maximum potential penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greater. The indictment also includes a notice of forfeiture of $3,425,750, representing the fraudulent payments Mancuso and Stiso received from the scheme.
U.S. Attorney Fishman credited criminal investigators of the U.S. Attorney’s Office; special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorneys Lisa M. Colone and Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
14-296Defense counsel:
Mancuso: Mary Frances Palisano Esq., Newark
Stiso: Henry E. Klingeman Esq., NewarkMancuso, Paul, and Stiso, Pasquale Indictment
Bronx, N.Y., Man Charged in Violent Multi-State Crime Spree Capped by High-Speed ChaseRead the Press Release
NEWARK, N.J. – A Bronx, N.Y., man is scheduled to appear in federal court today to face charges stemming from a violent crime spree spanning three states, in which he attacked, kidnapped, and raped a woman, assaulted a National Park Service employee and set fire to a used car dealership office before crashing on the George Washington Bridge, U.S. Attorney Paul J. Fishman announced.
Luis Figueroa, 33, is charged in a six-count complaint with kidnapping, brandishing a firearm during a crime of violence, possession of a firearm by a convicted felon, aggravated sexual abuse, assaulting an employee of the United States, and arson. He is scheduled to make his initial court appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court this afternoon.
According to the complaint:
On the morning of June 6, 2014, Figueroa allegedly entered a multi-family residence in Luzerne County, Pa., where a woman (Victim One) with whom he had a previous relationship and several other people lived in an apartment. He waited outside the apartment armed with a loaded shotgun.
When Victim One opened the door to leave shortly after 8:00 a.m., Figueroa struck her in the head with the shotgun. Figueroa allegedly stated, “I told you, bitch. I told you I was going to kill you.” He then entered the apartment and punched Victim One multiple times. Figueroa also struck Victim Two, a relative of Victim One, with the shotgun, then chased her and kicked her as she tried to escape, causing her to fall down a flight of stairs, and slammed her head against the front entrance. After a brief struggle with Victim One, which enabled Victim Two to escape, Figueroa collected the shotgun from the apartment and exited the building. Figueroa then forced Victim One into the back seat of a red SUV and drove away. Victim Two was eventually treated for her injuries.
Figueroa headed east in the red SUV on Interstate 80 towards New Jersey. At one point, Figueroa told Victim One that he was going to kill her, then kill himself. As he was driving, Figueroa allegedly forced Victim One to perform a sex act. After crossing the New Jersey state border, Figueroa exited the freeway and pulled the red SUV into a rest stop area at the Kittatinny Point Visitor’s Center.
After parking the red SUV, Figueroa allegedly climbed into the back seat with Victim One and forcibly raped her. Figueroa removed the ammunition from the shotgun and disposed of the rounds in a nearby wooded area. He then returned to the vehicle and retrieved the shotgun, then left again to dispose of the firearm. Once Figueroa left the red SUV with the shotgun, Victim One got in the driver’s seat of the vehicle and sped away. Victim One was subsequently transported to a hospital to receive treatment for her injuries.
After Victim One escaped in the red SUV, Figueroa allegedly approached U.S. National Park Service employee (Victim Three) near the parking lot area, attacked him and forced him into a nearby storage room, where he rammed Victim Three’s head into a door. Figueroa told Victim Three, “If you want to live, you better give me your car keys right now.” Victim Three handed over the keys and Figueroa drove away in Victim Three’s red minivan, heading east on Interstate 80. Victim Three was also treated for injuries.
Figueroa eventually stopped in Paterson, New Jersey, where he left Victim Three’s red minivan at a used car dealership he sub-let on West Broadway Street. Several days prior to June 6, 2014, Figueroa was given an eviction notice to vacate the property. At 11:30 a.m., Figueroa went to a separate used car dealership (the Victim Car Dealership) in Paterson, which was several blocks away. The Victim Car Dealership is operated by the individual who leased the West Broadway Street property to Figueroa. Figueroa asked an employee to borrow a portable gas container, then drove to a nearby gas station in a white SUV and filled the container with gasoline. Figueroa returned to the Victim Car Dealership and doused a small office area near the corner of the property with gasoline. The employee managed to get the gas container out of Figueroa’s hands, but Figueroa lit a match and ignited the structure. He then fled the scene in the white SUV.
Figueroa’s alleged crime spree ended when law enforcement officers traveling in marked police vehicles spotted him on the George Washington Bridge in the white SUV. Figueroa ignored the officers’ commands to stop and led them on a high-speed chase across the bridge, during which he struck two police vehicles before crashing into a wall. Figueroa then attempted to flee from the officers on foot but they tackled him and took him into custody.
Law enforcement subsequently searched the Kittatinny Point Visitor’s Center area and recovered the shotgun Figueroa used in the attacks.
The charge of kidnapping carries a maximum penalty of life in prison and a $250,000 fine. The charge of brandishing a firearm during a crime of violence carries a mandatory minimum term of seven years in prison and a maximum penalty of life in prison and a $250,000 fine. The charge of possession of a firearm by a convicted felon carries a maximum penalty of ten years in prison and a $250,000 fine. The charge of aggravated sexual abuse carries a maximum penalty of life in prison and a $250,000 fine. The charge of assaulting an employee of the United States carries a maximum penalty of twenty years in prison and a $250,000 fine. The charge of arson carries a mandatory minimum term of five years in prison and a maximum penalty of twenty in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge George Belsky in Woodland Park, for the investigation leading to the charges. He also thanked the Hazelton City Police Department (Pennsylvania), the Luzerne County District Attorney’s Office (Pennsylvania), the N.J. State Police, the Warren County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Bergen County Prosecutor’s Office, the Port Authority of New York and New Jersey Police Department, and the Manhattan District Attorney’s Office.
The government is represented by Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office’s General Crimes Unit in Newark.14-295
Figueroa, Luis Complaint
Bronx, N.Y., Man Charged in Violent Multi-State Crime Spree Capped by High-Speed ChaseRead the Press Release
NEWARK, N.J. – A Bronx, N.Y., man is scheduled to appear in federal court today to face charges stemming from a violent crime spree spanning three states, in which he attacked, kidnapped, and raped a woman, assaulted a National Park Service employee and set fire to a used car dealership office before crashing on the George Washington Bridge, U.S. Attorney Paul J. Fishman announced.
Luis Figueroa, 33, is charged in a six-count complaint with kidnapping, brandishing a firearm during a crime of violence, possession of a firearm by a convicted felon, aggravated sexual abuse, assaulting an employee of the United States, and arson. He is scheduled to make his initial court appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court this afternoon.
According to the complaint:
On the morning of June 6, 2014, Figueroa allegedly entered a multi-family residence in Luzerne County, Pa., where a woman (Victim One) with whom he had a previous relationship and several other people lived in an apartment. He waited outside the apartment armed with a loaded shotgun.
When Victim One opened the door to leave shortly after 8:00 a.m., Figueroa struck her in the head with the shotgun. Figueroa allegedly stated, “I told you, bitch. I told you I was going to kill you.” He then entered the apartment and punched Victim One multiple times. Figueroa also struck Victim Two, a relative of Victim One, with the shotgun, then chased her and kicked her as she tried to escape, causing her to fall down a flight of stairs, and slammed her head against the front entrance. After a brief struggle with Victim One, which enabled Victim Two to escape, Figueroa collected the shotgun from the apartment and exited the building. Figueroa then forced Victim One into the back seat of a red SUV and drove away. Victim Two was eventually treated for her injuries.
Figueroa headed east in the red SUV on Interstate 80 towards New Jersey. At one point, Figueroa told Victim One that he was going to kill her, then kill himself. As he was driving, Figueroa allegedly forced Victim One to perform a sex act. After crossing the New Jersey state border, Figueroa exited the freeway and pulled the red SUV into a rest stop area at the Kittatinny Point Visitor’s Center.
After parking the red SUV, Figueroa allegedly climbed into the back seat with Victim One and forcibly raped her. Figueroa removed the ammunition from the shotgun and disposed of the rounds in a nearby wooded area. He then returned to the vehicle and retrieved the shotgun, then left again to dispose of the firearm. Once Figueroa left the red SUV with the shotgun, Victim One got in the driver’s seat of the vehicle and sped away. Victim One was subsequently transported to a hospital to receive treatment for her injuries.
After Victim One escaped in the red SUV, Figueroa allegedly approached U.S. National Park Service employee (Victim Three) near the parking lot area, attacked him and forced him into a nearby storage room, where he rammed Victim Three’s head into a door. Figueroa told Victim Three, “If you want to live, you better give me your car keys right now.” Victim Three handed over the keys and Figueroa drove away in Victim Three’s red minivan, heading east on Interstate 80. Victim Three was also treated for injuries.
Figueroa eventually stopped in Paterson, New Jersey, where he left Victim Three’s red minivan at a used car dealership he sub-let on West Broadway Street. Several days prior to June 6, 2014, Figueroa was given an eviction notice to vacate the property. At 11:30 a.m., Figueroa went to a separate used car dealership (the Victim Car Dealership) in Paterson, which was several blocks away. The Victim Car Dealership is operated by the individual who leased the West Broadway Street property to Figueroa. Figueroa asked an employee to borrow a portable gas container, then drove to a nearby gas station in a white SUV and filled the container with gasoline. Figueroa returned to the Victim Car Dealership and doused a small office area near the corner of the property with gasoline. The employee managed to get the gas container out of Figueroa’s hands, but Figueroa lit a match and ignited the structure. He then fled the scene in the white SUV.
Figueroa’s alleged crime spree ended when law enforcement officers traveling in marked police vehicles spotted him on the George Washington Bridge in the white SUV. Figueroa ignored the officers’ commands to stop and led them on a high-speed chase across the bridge, during which he struck two police vehicles before crashing into a wall. Figueroa then attempted to flee from the officers on foot but they tackled him and took him into custody.
Law enforcement subsequently searched the Kittatinny Point Visitor’s Center area and recovered the shotgun Figueroa used in the attacks.
The charge of kidnapping carries a maximum penalty of life in prison and a $250,000 fine. The charge of brandishing a firearm during a crime of violence carries a mandatory minimum term of seven years in prison and a maximum penalty of life in prison and a $250,000 fine. The charge of possession of a firearm by a convicted felon carries a maximum penalty of ten years in prison and a $250,000 fine. The charge of aggravated sexual abuse carries a maximum penalty of life in prison and a $250,000 fine. The charge of assaulting an employee of the United States carries a maximum penalty of twenty years in prison and a $250,000 fine. The charge of arson carries a mandatory minimum term of five years in prison and a maximum penalty of twenty in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge George Belsky in Woodland Park, for the investigation leading to the charges. He also thanked the Hazelton City Police Department (Pennsylvania), the Luzerne County District Attorney’s Office (Pennsylvania), the N.J. State Police, the Warren County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Bergen County Prosecutor’s Office, the Port Authority of New York and New Jersey Police Department, and the Manhattan District Attorney’s Office.
The government is represented by Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office’s General Crimes Unit in Newark.14-295
Figueroa, Luis Complaint
Pennsylvania Couple Sentenced to Prison for Using Stolen Identities to Scam Student Loan Money from Online UniversitiesRead the Press Release
CAMDEN, N.J. – An East Stroudsburg, Pennsylvania, couple was sentenced to prison today for stealing $272,247 in student loan proceeds from Liberty University and American Public University by using stolen identities to direct the money to addresses where they could intercept it, U.S. Attorney Paul J. Fishman announced.
Stephanie Mitchell, 37, and Ronzell Mitchell, 38, were sentenced to 12 months and 28 months in prison, respectively. They previously pleaded guilty before U.S. District Judge Renée Marie Bumb to separate informations charging each with one count of conspiracy to commit mail fraud. Judge Bumb imposed the sentences today in Camden federal court.
According to documents filed in this case and statements made in court:
From Aug. 19, 2010, through March 21, 2012, the Mitchells fraudulently obtained U.S. Department of Education (ED) funds for their own use. Stephanie Mitchell regularly used a box at a UPS Store located in Montvale, New Jersey, that was opened using the name and driver’s license of another person. The couple then contacted online universities Liberty and American and posed as students for whom student loans had been issued, causing the proceeds of numerous credit balance checks and debit cards to be redirected to the UPS Store and a vacant house located in Stroudsburg, Pennsylvania.
Stephanie and Ronzell Mitchell admitted several specific instances in which they redirected student loans intended for others to addresses they controlled, fraudulently obtaining $272,247 in ED funds.
In addition to the prison term, Judge Bumb sentenced the Mitchells each to three years of supervised release, fined them each $35,000, and ordered them to pay total restitution of $272,247, which has been paid in full.
U.S. Attorney Fishman credited special agents of the ED Office of the Inspector General, Northeastern Regional Office, under the direction of Special Agent in Charge Brian Hickey; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, and special agents of the U.S. Secret Service, under the direction of James Mottola, Special Agent in Charge of the Newark Field Office, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
14-293Defense counsel:
Ronzell Mitchell: Paul Brickfield Esq., River Edge, N.J.
Stephanie Mitchell: Susan Cassell Esq., Ridgewood, N.J.Colorado Man Sentenced to 51 Months in Prison in Interstate Sex Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Colorado man was sentenced today to 51 months in prison for his role in a conspiracy to transport women across state lines for prostitution in New Jersey and other states, U.S. Attorney Paul J. Fishman announced.
James Roy Smith, 36, a/k/a “Mister Smith,” of Lakewood, Colorado, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to a superseding information charging him with conspiracy to transport women across state lines to work as prostitutes and transportation of a victim across state lines with the intent that the victim work as a prostitute. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From February 2009 through June 27, 2010, Smith conspired to operate a prostitution business in numerous locations around the United States, including New Jersey, New Mexico, Nebraska and Pennsylvania. The women would be transported between states by air as well as in a Cadillac Escalade registered to Smith’s uncle. In order to attract and locate local customers, the conspirators would place advertisements for escort services on Craigslist as well as Backpage.com.
Smith admitted that in late June 2010, he conspired to transport six women from New Jersey to Philadelphia to work as prostitutes. During that time, while checked in at the Econolodge in Elizabeth, New Jersey, he also caused a victim to be transported between these two states with the intent that the victim work as a prostitute.
In addition to the prison term, Judge Chesler sentenced Smith to 15 years of supervised release, fined him $5,000 and ordered him to forfeit the Cadillac.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with investigation leading to today’s sentencing. He also thanked FBI offices in Omaha, Nebraska and Salt Lake City, Utah; the Union County, New Jersey, Prosecutor’s Office; the Elizabeth, New Jersey, Police Department; and the Clay County, Nebraska, Sheriff’s Office for their roles in the investigation.
The government is represented by Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Brooke M. Barnett Esq., NewarkEssex County, N.J., Pharmacist, 15 Others, Charged with Illegal Drug DistributionRead the Press Release
NEWARK, N.J. - A Belleville, New Jersey, pharmacist and 15 others were charged today for their roles in a scheme to fraudulently obtain and distribute oxycodone, U.S. Attorney Paul J. Fishman announced.
The defendants are each charged by criminal complaint with a single count of conspiring to possess and distribute oxycodone, a Schedule II controlled substance. Federal agents of the Drug Enforcement Administration Tactical Diversion Squad arrested 12 of the defendants today and two on Aug. 12, 2014. The defendants in custody are making their initial appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court. Two defendants remain at large.
According to the complaint:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the DEA discovered that members and suppliers of a drug trafficking organization (DTO) secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Victoria Horvath, 42, of Elizabeth, New Jersey, as a senior member of the DTO, who obtained and filled prescriptions for controlled substances and then distributed them.
Vincent Cozzarelli, 77, of Belleville, is a pharmacist and owner of Rossmore Pharmacy in Belleville. The investigation revealed that Cozzarelli supplied Victoria Horvath and the DTO with oxycodone and other controlled substances even though he knew the prescriptions were fraudulently obtained and that the DTO would illegally distribute the controlled substances.
The conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Fishman credited special agents of the DEA under the direction of Special Agent in Charge Carl. J Kotowski for the investigation leading to the arrests. He also thanked the Belleville and Elizabeth police departments for their contribution to the case.The government is represented by Assistant U.S. Attorney Charlton A. Rugg of the Organized Crime Drug Enforcement Task Force in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
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DEFENDANT
AGE
RESIDENCE
42
Elizabeth, New Jersey
Alexis Horvath, a/k/a “Tima”
26
Elizabeth
Rickie Horvath, a/k/a “Yoggi”
53
Elizabeth
Steven Horvath, a/k/a “Chi-Chi,”
43
Elizabeth
Tony Marco
45
Elizabeth
Vincent Cozzarelli
77
Belleville
Daniel Horvath
25
Rutherford, New Jersey
Monica Horvath, a/k/a “Becky”
20
Rutherford
Johnny Horvath
45
Rutherford
Rhonda Musallam
38
Jersey City
Sabrina Vajda
31
Brooklyn, New York
Justin Farraj, a/k/a “Blaze”
23
Newark
Robert O’Brien
57
Bloomfield, New Jersey
Brian Perez, a/k/a “B,”
21
Newark
Matthew Policarpio, a/k/a “Papi”
26
Newark
Luis Rivera, a/k/a “Tupac”
23
Bloomfield
denotes still at large
Horvath, Victoria et al. Complaint
Medical Device Company Officials Admit Scheme to Defraud Hospitals of $800,000Read the Press Release
TRENTON, N.J. – A regional manager and a product specialist selling medical devices to hospitals for Integra LifeSciences Corp. of Plainsboro, New Jersey, today admitted their roles in a scheme to defraud hospitals of more than $800,000, U.S. Attorney Paul J. Fishman announced.
Daniel Metz, 34, of Fairfield, New Jersey, and Charles B. Carey Jr., 35, of Clark, New Jersey, each pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to separate informations charging them with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Integra is a provider of orthopedic products, including devices and implants for the spine, foot and ankle, hand and wrist, and shoulder and elbow. Metz worked there from July 2005 until his termination in April 2013, first as a product specialist (also referred to as a sales representative) and then as Northeast regional manager, supervising 16 product specialists and assistant sales representatives in Massachusetts, New Jersey, New York, and Pennsylvania. Carey was a product specialist, reporting to Metz, from January 2009 until he resigned in April 2011.
Product specialists at Integra were responsible for calling on surgeons to increase sales volume and were routinely present during surgeries. When present during surgeries, product specialists brought with them consignment trays with pre-packaged Integra products available to surgeons, as well as surgery-specific products. Integra billed the hospitals and surgery centers for the products used and product specialists (and their supervisors) were compensated based on salary, sales target-based commission and bonuses.
Metz admitted he used various fraudulent methods to overcharge hospitals and surgery centers. He would sometimes charge for a greater quantity or a more expensive product than was actually used, increasing his compensation and improving his employment evaluations.
Metz and Carey admitted that after Metz became regional manager, he taught at least some of the fraudulent methods to product specialists working for him, including Carey, who sometimes employed those methods.
Metz and Carey fraudulently caused medical facilities to pay more than $800,000 in inflated bills.
The count of conspiracy to commit wire fraud to which Metz and Carey pleaded guilty 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. Metz and Carey also agreed to forfeit $100,000 and $77,000, respectively, representing the amounts of money they personally made through the fraud scheme. The defrauded hospitals have been reimbursed by Integra for the fraudulent charges.
Sentencing is 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, with the investigation leading to today’s guilty pleas. He also thanked detectives of the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp, for their contributions to the investigation.
The government is represented by Jacob T. Elberg, Chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit, in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $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:
Metz: Lawrence Lustberg Esq., Newark
Carey: Timothy Donohue Esq., West Orange, N.J.Metz, Daniel Information
Carey, Charles InformationFlorida Man Admits Role in International Murder Conspiracy and Sale and Smuggling of Deadly ToxinsRead the Press Release
TRENTON, N.J. – A Florida man today admitted producing and selling potentially deadly toxins ricin and abrin for use as weapons and conspiring to kill a woman in the United Kingdom, U.S. Attorney Paul J. Fishman announced.
Jesse William Korff, 19, of LaBelle, Florida, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with five counts of developing, producing, transferring and possessing toxins, five counts of smuggling toxins and one count of conspiring to kill a person in a foreign country.
Korff was arrested in Florida on Jan. 18, 2014, following a joint investigation by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) and the FBI.
“Jesse Korff admitted producing and selling potentially deadly toxins to strangers over the Internet,” U.S. Attorney Fishman said. “Working in the shadows of a secretive computer network favored by cybercriminals, he peddled his poison on a virtual black market of illegal and dangerous goods. Today he admitted he was in the midst of aiding an overseas customer in an attempted murder. Thankfully, an undercover law enforcement officer posing as a buyer was able get Korff off the street before he could conclude the transaction.”
“HSI has worked tirelessly with our law enforcement partners to shutter underground websites such as BMR and arrest those responsible for reckless and dangerous illegal activity,” Andrew McLees, special agent in charge of HSI Newark, said. “Anyone involved in the sale of toxins designed for use in chemical terrorism must be stopped, and this guilty plea shows HSI’s commitment to stopping individuals who show callous disregard for public safety in the interest of making a buck.”
“The overriding focus of the FBI’s WMD Directorate, and the primary focus of the FBI's overall efforts is prevention,” Aaron T. Ford, Special Agent in Charge of FBI, Newark, said. “To keep the threat posed by Korff from becoming a reality, the FBI leveraged subject matter experts to include WMD coordinators, special agent bomb technicians, hazardous evidence response teams, surveillance and computer forensics personnel to disrupt the activities of Korff. The intensive three-day search, evidence collection, analysis and investigation uncovered an international nexus to Korff. Working through FBI legal attachés, information gleaned from the investigation was communicated to foreign law enforcement partners to disrupt international subjects.”
According to documents filed in this case and statements made in court:
In April 2013 HSI special agents began investigating illicit sales activity on an underground Internet marketplace known as “Black Market Reloaded” (BMR). The website provided a platform for vendors and buyers to conduct anonymous online transactions involving biological agents, toxins, firearms, ammunition, explosives, narcotics and counterfeit items.
From August 2013 through January 2014 Korff maintained a seller’s profile on BMR under the screen name “Snowman840.” He advertised the sale of deadly toxins and provided his prospective purchasers with information about quantities necessary to kill a person of a given weight, along with instructions on how to secretly administer the toxin to avoid suspicion. Korff sold ricin and abrin to international purchasers in India, Austria, Denmark and England. He smuggled the toxins from Florida to the international purchasers by concealing the toxins in packages sent through the U.S. Postal Service.
In December 2013 Korff provided a quantity of abrin to a purchaser in London who claimed she intended to kill her mother. After the purchaser’s receipt and administration of the initial dose, which she claimed was ineffective, Korff agreed to provide a second quantity of the toxin in order to assist the purchaser in the implementation of the murder plot.
Before Korff had an opportunity to smuggle the second dose of abrin to the London purchaser, a federal undercover agent contacted Korff through BMR and negotiated the sale of two liquid doses of abrin. Korff told the buyer about his delivery methods – concealing vials in a carved-out and re-melted candle – and discussed how much abrin was needed to kill a person of a particular weight and how best to administer the toxin. Korff also assured the buyer that a victim’s death would appear to be similar to a bad case of the flu.
Following Korff’s arrest, FBI agents searched Korff’s property over three days and recovered several computers, castor beans, rosary peas, capsules, vials, jars, syringes, filters, respirators and other items commonly utilized in the manufacture, production, sale, packaging, and shipping of toxins and chemical substances. Among the items recovered was a liquid dose of abrin that Korff had intended to ship to the London purchaser.
The toxin and murder conspiracy charges to which Korff pleaded guilty carry a maximum potential penalty of life in prison and a $250,000 fine. The smuggling charges carry a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 21, 2014.
U.S. Attorney Fishman credited special agents of HSI, under the direction of Special Agent in Charge McLees in Newark, New Jersey; special agents of the FBI in Newark, under the direction of Special Agent in Charge Ford; and FBI special agents under the direction of Special Agent in Charge Paul Wysopal, Tampa Division, with the investigation leading to today’s guilty plea. He also thanked HSI in Ft. Myers, Florida, under the direction of Special Agent in Charge Susan McCormick, for their work. The U.S. Attorney also thanked the FBI’s Joint Terrorism Task Force, including the U.S. Postal Inspection Service and the Glades County, Henry County and Lee County, Florida, sheriff’s offices for their assistance. Vital support was provided by the Justice Department’s National Security Division Counterterrorism Section and FBI WMD Directorate in Washington, the FBI Laboratory Division, the DHS National Bioforensic Analysis Center; the U.S. Attorney’s Office for the Middle District of Florida; and the London Metropolitan Police Service (MPS), SO15 Counter Terrorism Command, under the direction of Commander Duncan Ball.
The government is represented by Assistant U.S. Attorney Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit in Newark.
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Defense counsel: David Holman Esq., Newark
Korff, Jesse Information
Ithaca, N.Y., Man Charged with Abusive Sexual Contact with Sleeping Woman on International FlightRead the Press Release
NEWARK, N.J. – An Ithaca, New York, man appeared in federal court today on charges he allegedly engaged in abusive sexual contact with a sleeping woman aboard a flight from Tokyo, Japan, to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Eun Jong Lee, 47, was detained upon arrival in Newark yesterday evening, Aug.10, 2014, and arrested by agents of the FBI. He was charged by complaint with abusive sexual contact and appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.According to the complaint filed today:
Lee was seated next to a woman on a United Airlines flight from Tokyo to Newark. While the plane was in the air, the woman B who did not know Lee B fell asleep. She awoke to find Lee’s hand on the front of her shirt, touching her breast through her clothing. Lee then touched the skin of her neck and attempted to place his hand down the front of the woman’s shirt.
After asking Lee to stop touching her, the woman reported the incident to a flight crew member and provided the crew member a written statement describing what happened. The federal government has exclusive jurisdiction over all abusive sexual contact cases that occur in American airplanes in flight.
The abusive sexual contact charge carries a maximum potential penalty of two years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the arrest. He also thanked the Port Authority of New York and New Jersey Police Department for their role in the case.
The government is represented by Shirley U. Emehelu of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark
Lee, Eun Jong Complaint
Ocean County, N.J., Man Charged with Seven Bank RobberiesRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, man will make his initial court appearance today on charges that he allegedly robbed seven banks between October 2013 and January 2014, U.S. Attorney Paul J. Fishman announced.
Steven Wisnowski, 30, of Barnegat, New Jersey, is charged in a superseding complaint with seven counts of bank robbery. He made his initial court appearance today before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the superseding complaint:
Wisnowski allegedly went on a crime spree in which he robbed seven banks throughout Middlesex, Ocean, and Monmouth counties between October 2013 and January 2014. Wisnowski robbed the following banks on the following dates:
Bank Name
Location
Date
Edison
Oct. 30, 2013
TD Bank
Brick
Nov. 7, 2013
Santander Bank
Brick
Nov. 15, 2013
Columbia Bank
Edison
Nov. 27, 2013
TD Bank
Toms River
Dec. 2, 2013
PNC Bank
Aberdeen
Dec. 9, 2013
Fulton Bank
Edison
Jan. 7, 2014
Wisnowski allegedly entered the banks wearing hats, hooded jackets and wigs to conceal his identity, approached the bank tellers and demanded money. During the Columbia Bank robbery, Wisnowski appeared to point something at the teller from under his clothing, as if he had a gun. Wisnowski then demanded money, stating: “Give me all your hundreds.” As the teller gathered the money, Wisnowski counted backwards from 10. He then fled with the money.
During the Fulton Bank robbery, Wisnowski allegedly gave a teller a manila envelope and stated, “Give me what I want and nobody gets hurt. I want large bills.” He then pulled up his sweatshirt as if he had a gun. The teller gathered the money and placed it in the envelope, after which Wisnowski fled.
Law enforcement tracked Wisnowski’s vehicle to the scene of the Fulton Bank robbery and waited for him outside. They approached Wisnowski as he exited the bank and ordered him to the ground at gunpoint. Wisnowski threw the envelope filled with cash and ran. Law enforcement officers pursued Wisnowski and apprehended him moments later.
Each count of bank robbery with which Wisnowski is charged carries a maximum penalty of 20 years in prison and a fine of $250,000.
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 Edison, Aberdeen, Brick, and Toms River police departments, and the Middlesex, Ocean, and Monmouth County prosecutor’s offices for their contributions to the case.
The government is represented by Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s General Crimes Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent until proven guilty in a court of law.
14-287Wisnowski, Steven Superseding Complaint
Florida Man Admits Leading Stolen Credit Card Trafficking Ring Involving More Than 114,000 Accounts and Losses of $23 MillionRead the Press Release
NEWARK, N.J. – A Florida man pleaded guilty today to his role in a conspiracy to possess and traffic stolen credit card data held by New Jersey residents, U.S. Attorney Paul J. Fishman announced.
Miguel Gonzalez, 40, of Miami, Florida, pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Between January 2010 and July 2013, Gonzalez obtained and possessed stolen credit card data for more than 114,000 credit card accounts. Gonzalez purchased the stolen credit card information from various vendors who advertise and transmit the data over the Internet using email and instant chat software. These vendors sold stolen credit card data obtained from network intrusions into various corporate victims, including major retailers in the state of New Jersey. The stolen credit card data was used by Gonzalez and others to create counterfeit credit cards, which were used to enter into unauthorized and fraudulent transactions. The credit card issuers associated with the more than 114,000 stolen credit card accounts suffered a combined loss of more than $23 million. Gonzalez used the proceeds of his illegal activity to purchase multiple homes, expensive jewelry and a speedboat.
The conspiracy to commit wire fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 21, 2014.
U.S. Attorney Fishman credited agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section of the Office’s Economic Crimes Unit.
14-288Defense counsel: Ricardo P. Hermida Esq., Miami
Gonzalez, Miguel Information
Former Stockton College Police Officer Admits Distributing OxycodoneRead the Press Release
CAMDEN, N.J. - A former Richard Stockton College of New Jersey police officer today admitted selling oxycodone-based pills to an undercover officer and a witness who was cooperating with law enforcement officers, U.S. Attorney Paul J. Fishman announced.
Marcus Taylor, 41, of Sicklerville, New Jersey, pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with distributing and possessing with intent to distribute oxycodone. As part of his plea agreement, Taylor will forfeit $8,775, consisting of the illegal profits obtained from his sale of oxycodone.
According to documents filed in this case and statements made in court:
Between November 2012 and January 2013, Taylor sold 537 oxycodone-based prescription pills to either an undercover Drug Enforcement Administration task force officer or the cooperating witness over five meetings, each of which occurred in Clementon, New Jersey. Taylor arranged the meetings with the undercover officer through a series of text messages. Taylor discussed the price of the pills and his hope of fostering a long-term drug distribution relationship. At the Nov. 28, 2012, meeting, Taylor told the undercover officer that the 30-milligram oxycodone pills he sold the officer were obtained through a prescription issued by a doctor, and “if you gonna be a good customer for me and buy these every 28 days for 15 bucks, I won’t give these to nobody.”
None of the transactions involved students or took place at the Stockton College campus, nor was Taylor ever in uniform when the drug sales were made. He resigned in April 2014.
The drug distribution charge carries a maximum potential penalty of 20 years of in prison and a $1 million fine. Sentencing is scheduled for Nov. 14, 2014.
U.S. Attorney Fishman credited special agents and officers assigned to the Camden High Intensity Drug Trafficking Area team, under the direction of the DEA Special Agent in Charge Carl J. Kotowski, for the investigation leading to today’s guilty plea. He also thanked U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); the Camden County Prosecutor’s Office; the Westampton Township, Camden, Burlington City and Richard Stockton College police departments; the Delaware River Port Authority; and the N.J. Division of Criminal Justice for their work on the case.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the Special Prosecutions Division in Camden.
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Defense counsel: Edward Plaza Esq., Little Silver, New JerseyTaylor, Marcus Information
Chicago Man Sentenced in New Jersey to 63 Months in Prison for Stealing More Than $1 Million Worth of Iphones and IpadsRead the Press Release
NEWARK, N.J. - A Chicago man was sentenced today to 63 months in prison for stealing more than $1 million worth of iPhones and iPads from Verizon Wireless by misappropriating corporate purchasing accounts and then diverting the shipments by bribing Federal Express drivers, U.S. Attorney Paul J. Fishman announced.
Stephen Gunn, 36, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an indictment charging him with one count of conspiracy to commit wire fraud. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Gunn accessed the online accounts of dozens of Verizon’s customers, including several customers located in New Jersey, and used those accounts to place unauthorized orders for electronics products, primarily smart phones and accessories. He directed the fraudulently ordered products to be shipped to addresses in Texas, including several addresses that did not exist, via Federal Express.
At Gunn’s direction, two Federal Express drivers intercepted the shipments, removed the contents, and re-shipped the contents to addresses in Illinois provided by Gunn. In exchange, Gunn paid each of the drivers thousands of dollars. Gunn fraudulently obtained approximately 1,700 items – including several hundred Apple iPhones and iPads, Blackberry devices, and Motorola phones – worth more than $1 million.
In addition to the prison term, Judge Cecchi sentenced Gunn to serve three years of supervised release and pay $2,002,424.40 in restitution.
The two drivers who conspired with Gunn, Marion Samuel Perkins and George Greene Jr., were prosecuted by the U.S. Attorney’s Office for the Western District of Texas, pleaded guilty, and were sentenced to prison terms.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Daniel V. Shapiro of the Computer Hacking and Intellectual Property Crimes Section of the U.S. Attorney’s Office Economic Crimes Unit in Newark.14-286
Defense counsel: Assistant Federal Public Defender David Holman Esq., NewarkChicago Man Sentenced in New Jersey to 63 Months in Prison for Stealing More Than $1 Million Worth of IPhones and IPadsRead the Press Release
NEWARK, N.J. - A Chicago man was sentenced today to 63 months in prison for stealing more than $1 million worth of iPhones and iPads from Verizon Wireless by misappropriating corporate purchasing accounts and then diverting the shipments by bribing Federal Express drivers, U.S. Attorney Paul J. Fishman announced.
Stephen Gunn, 36, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an indictment charging him with one count of conspiracy to commit wire fraud. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Gunn accessed the online accounts of dozens of Verizon’s customers, including several customers located in New Jersey, and used those accounts to place unauthorized orders for electronics products, primarily smart phones and accessories. He directed the fraudulently ordered products to be shipped to addresses in Texas, including several addresses that did not exist, via Federal Express.
At Gunn’s direction, two Federal Express drivers intercepted the shipments, removed the contents, and re-shipped the contents to addresses in Illinois provided by Gunn. In exchange, Gunn paid each of the drivers thousands of dollars. Gunn fraudulently obtained approximately 1,700 items – including several hundred Apple iPhones and iPads, Blackberry devices, and Motorola phones – worth more than $1 million.
In addition to the prison term, Judge Cecchi sentenced Gunn to serve three years of supervised release and pay $2,002,424.40 in restitution.
The two drivers who conspired with Gunn, Marion Samuel Perkins and George Greene Jr., were prosecuted by the U.S. Attorney’s Office for the Western District of Texas, pleaded guilty, and were sentenced to prison terms.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Daniel V. Shapiro of the Computer Hacking and Intellectual Property Crimes Section of the U.S. Attorney’s Office Economic Crimes Unit in Newark.14-286
Defense counsel: Assistant Federal Public Defender David Holman Esq., NewarkClifton, N.J., Bank Robber Sentenced to 55 Months in PrisonRead the Press Release
Newark, N.J. – A man who admitted using a note to rob the Valley National Bank in Clifton, New Jersey, was sentenced today to 55 months in prison, U.S. Attorney Paul J. Fishman announced.
Wayne Winner, 50, of Nutley, New Jersey, pleaded guilty on April 8, 2014, to an information charging him with robbing the bank on Jan. 4, 2013. U.S. District Judge William H. Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Winner admitted to entering the Valley National Bank in Clifton, New Jersey on Jan. 4, 2013, and handing a bag and a note to a bank teller which read, “No joke, loose bills, no dye, in a hurry.” He also admitted he intended to intimidate the teller, who placed cash in the bag before Winner left the premises.
Winner was sentenced to 40 months in prison for the April bank robbery. Judge Walls imposed the additional 15 months, to run consecutively for a total of 55 months, because Winner violated the terms of his supervised release following a prior federal bank robbery conviction – by robbing the Clifton bank. In addition to the prison term, Judge Walls sentenced Winner to a year 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, along with the Passaic County Prosecutor’s Office and the Clifton Police Department for their work leading to Winner’s conviction.
The government is represented by Assistant U.S. Attorneys Josh Hafetz and Courtney Oliva of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Assistant Federal Public Defender Peter Carter Esq., Newark
Atlantic County, N.J., Man Sentenced to 57 Months in Prison for Trafficking over $100,000 Cartons of Contraband CigarettesRead the Press Release
Charges Include Participation in Separate $2 Million Mortgage Fraud Scheme
CAMDEN, N.J. - An Egg Harbor Township, New Jersey, man was sentenced today to 57 months in prison for trafficking millions of dollars in contraband cigarettes, laundering the proceeds through his South Jersey store and participating in a $2 million mortgage scheme in New York, U.S. Attorney Paul J. Fishman announced.
Muhammad Shafique, 44, previously pleaded guilty before U.S. District Judge Noel L. Hillman to charges of conspiracy to traffic contraband cigarettes, conspiracy to commit money laundering and conspiracy to commit wire and bank fraud. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From June 2010 through February 2012, Shafique engaged in a large-scale operation to traffic 149,668 cases of contraband cigarettes and defraud New Jersey of more than $4 million dollars in tax revenue. Shafique purchased the cigarettes from undercover officers and then laundered the proceeds through the bank account of Get & Go Supermarket in Pleasantville, New Jersey, a store he purchased in part with funds from the scheme.
Shafique was also involved in a separate conspiracy to use stolen identities to fraudulently obtain mortgage loans on properties in New York. Using falsified identification documents and straw buyers posing as the actual homeowners, Shafique and other conspirators defrauded various banks and lenders out of almost $2 million.
In addition to the prison term, Judge Hillman sentenced Shafique to serve five years of supervised release and ordered him to pay restitution of $4,046,382 for the cigarette trafficking and an additional $1,405,000 for the mortgage fraud
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Robin Shoemaker, and special agents of the FBI in New Jersey and New York, under the direction of Special Agent in Charge Aaron T. Ford and Assistant Director in Charge George Venizelos, respectively.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden, New Jersey.
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Defense counsel: Jose Luis Ongay Esq., Philadelphia
Two Men Sentenced to Prison, Third Pleads Guilty, for Racketeering Conspiracy/Illegal Online Gambling EnterpriseRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, man who is a reputed associate of the Genovese Crime Family was sentenced today to prison for his role in a racketeering conspiracy and tax evasion conspiracy, U.S. Attorney Paul J. Fishman announced. Also today, a New York man was sentenced to prison and a Hudson County, New Jersey, man pleaded guilty in connection their respective parts in the scheme.
John Breheney, a/k/a “Fu,” 49, of Little Egg Harbor, New Jersey, was sentenced to 38 months in prison. He previously pleaded guilty before U.S. District Judge Claire C. Cecchi, who imposed the sentence today in Newark federal court, to an information charging him with conspiracy to violate the Racketeer Influenced and Corrupt Organizations, or RICO, statute by participating in the activities of the Genovese Crime Family of La Cosa Nostra through a pattern of racketeering activity and through the collection of unlawful debt. He also pleaded guilty to tax evasion.
Patsy Pirozzi, 75, of Suffern, New York, was also sentenced today to 22 months in prison. Pirozzi previously pleaded guilty before Judge Cecchi to an information charging him with conspiracy to violate the RICO statute.
And Eric Patten 37, of Bayonne, New Jersey, pleaded guilty today before Judge Cecchi to an information charging him with conspiracy to violate the RICO statute.
According to documents filed in this case and statements made in court:Joseph Lascala, 80, of Monroe, New Jersey, was the alleged “capo” and a made member of the Genovese family operating in northern New Jersey. He directed the criminal activities of a smaller group of associates, referred to as a crew, whose activities included illegal gambling and the collection of unlawful debt.
Joseph Graziano, 77, of Springfield, New Jersey, was the principal owner of Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Dominick J. Barone, 44, also of Springfield, New Jersey, worked with Graziano in carrying out the daily activities of the website. Both men conspired with the Genovese Crime Family of La Cosa Nostra in the operation of Beteagle. Graziano and Barone pleaded guilty on July 29, 2014, to their roles in the racketeering conspiracy, each admitting that they were associates of the Genovese Crime Family. Beteagle, through the individuals that owned, operated, and controlled it, was a “criminal enterprise” that operated in interstate and foreign commerce.Lascala’s organized crime crew and the criminal enterprise joined forces to allow traditional organized crime members and associates to use the Internet and current technology to conduct traditional organized crime by engaging in and profiting from illegal sports betting through the website. Associates of the crew were given access to Beteagle and were considered “agents.” Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” or bookies, under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors.
To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. Associates of the crew paid out winnings or collected losses in person. If a bettor failed to pay his gambling losses, the crew used their LCN status and threats of violence to collect on these debts.The agent or sub-agent paid a fee to the website for each bettor added to a package. Barone and others made weekly collections of cash in furtherance of the scheme.
Breheney, Pirozzi and Patten each pleaded guilty to being associates of and conspiring with the Genovese crime family.
Mark Sanzo, Robert Scerbo, William Bruder, Michael O’Donnell, Graziano, Barone, Salvatore Turchio, 48, of Little Egg Harbor, New Jersey and Jose Gotay, 76, New Milford, New Jersey have also pleaded guilty to their role in this racketeering conspiracy and await sentencing.
As to the remaining defendants, the charges and allegations contained in a criminal complaint sworn in May 2012 are merely accusations and they are presumed innocent unless and until proven guilty.
In addition to the prison terms, Judge Cecchi sentenced Breheney three years of supervised release, fined him $16,000 and ordered him to pay forfeiture of $400,000. Pirozzi was also sentenced to three years of supervised release and ordered to pay forfeiture of $31,400.
The conspiracy count to which Patten pleaded guilty carries a maximum potential punishment of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Dec. 3, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant United States Attorneys Serina M. Vash and Anthony Moscato of the New Jersey U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel:
Breheney: Anthony J. Pope Jr. Esq., Newark
Pirozzi: Michael D’Alessio Jr. Esq., Roseland, New Jersey
Patten: Alan Dexter Bowman Esq., NewarkPatten, Eric Information
Pair of Brothers Among Five Charged in Conspiracy to Traffic Guns to New Jersey from South CarolinaRead the Press Release
Sixth Defendant Charged With Related Firearms Offense in Investigation That Intercepted at Least 22 Weapons Bound for South Jersey
CAMDEN, N.J. – Five Camden County, N.J., men and a woman from South Carolina are charged with federal firearms violations following an investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) that resulted in multiple arrests last night and this morning and the confiscation of numerous guns bound for the streets of Camden, Clementon and Lawnside, New Jersey, U.S. Attorney Paul J. Fishman announced.
Marcus Rutling, 32, of Camden and Saluda, South Carolina; Joseph Rutling, 23, of Camden; Katelynn Schippnick, 24, of Greeleyville, South Carolina: Shawn Tribbett, 32, of Camden, and Anthony Gilmore, 24, of Lawnside, are each charged with conspiracy to traffic in firearms without a license. Tribbett and a sixth defendant: Lewis DiMatessa, 37, of Clementon, are also each charged with being a felon in possession of a firearm.
Tribbett was arrested late yesterday and Gilmore, Schippnick and DiMatessa were arrested this morning by ATF special agents. The Rutlings were already in statecustody on unrelated charges.
Tribbett, Gilmore and DiMatessa made their initial appearance in federal court today before U.S. Magistrate Judge Joel Schneider. All three were remanded to custody. Schippnick made her initial appearance in U.S. District Court for the District of South Carolina before U.S. Magistrate Judge Kay West and was released on bond. She has been ordered to appear in New Jersey before Judge Schneider on Aug. 12, 2014. Joseph and Marcus Rutling will make their initial appearances on Aug. 26, 2014.
According to documents filed in this case and statements made in court:
Over the course of the investigation, ATF special agents used a confidential informant to purchase at least 22 firearms from illegal gun brokers and dealers, including an assault rifle, shotguns, handguns and ammunition, as well as a bullet-proof vest.
The Rutlings sold guns – including the assault rifle – and ammunition out of several locations in Camden and Lawnside. The complaints charging them detail several transactions, including a sale in which the defendants provided the informant with a short-barreled shotgun out of their house in Camden. The men said they obtained the firearms in South Carolina and brought them to New Jersey on a weekly basis, at times using Amtrak trains to transport the guns.
Gilmore sold handguns, shotguns and a bullet proof vest, mostly from a house on LaPierre Avenue in Lawnside, with Tribbett and Schippnick serving as brokers for the transactions. Tribbett, a previously convicted felon, brokered a deal in which DiMatessa, also a convicted felon, sold a rifle to the informant.
U.S. Attorney Fishman credited the ATF special agents, under the direction of ATF Special Agent in Charge George Belsky in Newark, with the ongoing investigation, and thanked special agents from the Drug Enforcement Administration, under the direction of DEA Special Agent in Charge Carl J. Kotowski, as well as officers from the Winslow Township and Clementon Police Departments, for their work leading to the arrests.
The conspiracy to traffic in firearms without a license charge carries a maximum potential penalty of five years in prison, and the felon-in-possession of a firearm charge carries a maximum potential penalty of 10 years in prison. Each count also carries a maximum $250,000 fine.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jason Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaints are merely accusations and the defendants are considered innocent unless and until proven guilty.14-282
Defense counsel:
Shawn Tribbett: Brian O’Malley Esq., Haddon Heights, New Jersey
Lewis DiMattesa: Michael Riley Esq., Mount Holly, New Jersey
Anthony Gilmore: Assistant Federal Public Defender Christopher O’Malley Esq., Camden
Marcus Rutling: Edward Borden Esq., Cherry Hill, N.J.
Joseph Rutling: Mark Catanzaro Esq., Moorestown, N.J.Rutling, Marcus Complaint
Rutling, Joseph Complaint
Tribbett, Shawn Complaint
Gilmore, Anthony Complaint
DiMatessa, Lewis Complaint
Schippnick, Katelyn ComplaintMercer County, N.J., Man Sentenced to 87 Months in Prison for Role in Trenton, N.J., Narcotics RingRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 87 months in prison for his role in a conspiracy to distribute oxycodone pain pills, U.S. Attorney Paul J. Fishman announced.
Anthony DiMatteo, 32, of Trenton, previously pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an indictment charging him with conspiracy to distribute and possess with intent to distribute oxycodone. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Between May 2011 and October 2011, DiMatteo sold oxycodone-based prescription pain pills that he received from his conspirators, Joseph A. “JoJo” Giorgianni, Charles Hall III and Mary Manfredo. DiMatteo obtained the pills at JoJo’s Steakhouse in Trenton and sold them, remitting a portion of the proceeds to Giorgianni and Hall. DiMatteo also told Hall how Hall himself could obtain prescription pain pills, which could later be sold, from a Nutley, New Jersey, doctor.
In addition to the prison term, Judge Shipp sentenced DiMatteo to serve three years of supervised release and fined him $1,000.
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 leading to today’s sentencing.
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: Edward Plaza Esq., Little Silver, New JerseyFormer Bank Branch Manager Admits to Embezzling More Than $263,000 of Bank’s MoneyRead the Press Release
CAMDEN, N.J. – A former branch manager for Newfield National Bank in Franklinville, New Jersey, today admitted that she embezzled $263,864 from the bank, U.S. Attorney Paul J. Fishman announced.
Season Wengert, 32, of Franklinville, pleaded guilty before U.S. District Court Judge Robert B. Kugler in Camden federal court to an information charging her with one count of bank embezzlement. Wengert was released on bail after her guilty plea hearing.
According to documents filed in this case and statements made in court:
Wengert worked as the bank manager at the Franklinville Branch of the Newfield National Bank. From Sept. 4, 2007, through Jan. 7, 2013, Wengert embezzled funds by fraudulently conducting online computer transfers of money from 38 accounts belonging to 23 customers into accounts owned by her or her husband. She also withdrew money from customers’ accounts and deposited it into her accounts. As branch manager, Wengert was able to conceal her embezzlement by failing to note the fraudulent withdrawals in the customers’ passbooks and by transferring money through various customers’ accounts to cover shortages. When customers sought to withdraw money from an account which had been embezzled, Wengert would then transfer money from another victim’s account to cover the withdrawal and conceal her fraudulent conduct. Wengert stole $263,864 for her own use.
The bank embezzlement count to which Wenger pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. Under the terms of her plea agreement, Wenger is required to make full restitution to her former employer for all of the losses resulting from her embezzlement. Sentencing is scheduled for Nov. 13, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
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Defense counsel: John C. Eastlack Jr. Esq., Cherry Hill, New Jersey
Wengert, Season Information
Pennsylvania Man Sentenced to 15 Years in Prison for Scheme to Rob Drug Dealers and Sell Their CocaineRead the Press Release
CAMDEN, N.J. - A Pennsylvania man was sentenced today to 180 months in prison for his role in a conspiracy to rob a drug stash house in order to sell the stolen cocaine, U.S. Attorney Paul J. Fishman announced.
Ralph Dennis, 35, and conspirator Terrance Hardee, a/k/a “Fat Cat,” 37, both of Philadelphia, were previously convicted of one count of conspiracy to commit robbery and one count of conspiracy to possess more than five kilograms of cocaine with intent to distribute. Dennis was also found guilty of using and carrying a firearm during a violent crime. The jury returned the verdict on the second day of deliberations following a three-week trial before U.S. District Judge Joseph E. Irenas, who imposed Dennis’ sentence today in Camden federal court.
Hardee awaits sentencing.
According documents filed in this case and the evidence at trial:
In June and July of 2012, Dennis and Hardee planned a gunpoint robbery of a drug stash house. They prepared to steal multiple kilograms of cocaine from the drug dealers at the location, then sell it themselves to make a profit.
During the investigation, Dennis was recorded discussing his willingness to kill anyone they found inside the house as they were robbing it. Hardee was recorded talking about his role – tying up the house’s occupants with zip ties.
Special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested the pair when they arrived in Maple Shade, New Jersey, on July 16, 2012, on their way to the robbery location, with Dennis carrying a gun. Dennis and Hardee also brought gloves, and zip ties were found in the car they drove to Maple Shade.
In addition to the prison term, Judge Irenas sentenced Dennis to five years of supervised release.
U.S. Attorney Fishman credited ATF special agents in Cherry Hill, New Jersey, under the direction of Special Agent in Charge Robin Shoemaker, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Jacqueline M. Carle and Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Thomas Young and Christopher O’Malley, Esqs. Assistant Federal Public Defenders, Camden
Staten Island Woman Admits Role in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. - A Staten Island, New York, woman today admitted her role in one of the nation’s largest and longest running stolen identity refund fraud schemes ever identified, in which more than 8,000 fraudulent U.S. income tax returns sought more than $65 million in tax refunds and resulted in losses to the United States of more than $12 million, U.S. Attorney Paul J. Fishman announced.
Elian Matlovsky, 29, pleaded guilty today before U.S. District Judge Claire C. Cecchi to an information charging her with one count of conspiracy to defraud the United States and one count of theft of government property.
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 Form 1040 Individual Income Tax Returns using the fraudulently obtained information and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
- Perpetrators direct the U.S. Treasury Department to issue the refunds through checks generated by the fraudulent 1040 forms to locations they control or can access.
- With checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell refund checks at a discount to face value. In turn, the buyers then cash the checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses or by depositing checks into bank accounts. When cashing or depositing checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
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 (New Jersey Task Force).
An investigation led by the New Jersey Task Force, with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, revealed that from at least 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long-running SIRF scheme that caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with more than $12 million in losses to the U.S. Treasury.
Matlovsky and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fraudulent 1040 forms, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically. By tracing the specific IP addresses that submitted the electronically-filed 1040s, law enforcement officers learned that just a handful of IP addresses created many of the fraudulent 1040 forms that lead to the issuance of tax refund checks.
Conspirators purchased mail routes, that is, lists of addresses covered by a single mail carrier. Conspirators applied for refunds, inserted addresses along the mail route as the purported home addresses of the “taxpayers,” and obtained the refund checks sent to the addresses. They also applied for checks using addresses otherwise controlled by, or accessible by, certain conspirators and collected the checks after they were delivered to those addresses. During the course of the scheme, hundreds of refund checks were mailed to just a few different addresses in a few different towns, including Nutley, Somerset and Newark, New Jersey, and Shirley, New York.
Matlovsky and others then deposited and cashed the checks. The conspirators used several methods, but Matlovsky opened several bank accounts, into which she deposited nearly $1 million in Tax Refund Treasury Checks. Once the Tax Refund Treasury Checks were deposited into Matlovsky’s accounts, she and others caused proceeds of the fraud to be withdrawn, and spent those funds.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in refund checks – that had been applied for fraudulently – before they were delivered to members of the conspiracy.
The conspiracy count carries a maximum potential penalty of five years in prison and up to a $250,000 fine. The substantive count of theft of government property carries a maximum potential penalty of 10 years in prison and up to a $250,000 fine. The theft of mail by a postal employee carries a maximum potential penalty of five years in prison and up to a $250,000 fine. Sentencing is scheduled for Nov. 18, 2014.
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.
The government is represented by Assistant U.S. Attorneys Mala Ahuja Harker, Lakshmi Srinavasan Herman, Zach Intrater, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark.14-276
Defense Counsel: Henry E. Klingeman Esq., Newark, New Jersey
Matlovsky, Elian Information