District of New Jersey
Press releases recorded for this federal judicial district.
Ocean County, N.J., Attorney Sentenced to Six Months in Prison, Six Months of Home Confinement, for Income Tax Evasion and Failing to Pay Payroll TaxesRead the Press Release
TRENTON, N.J. - An Ocean County, N.J., attorney was sentenced today to six months in prison and six months of home confinement for evading federal income taxes after hiding assets in an attorney trust account in his wife’s name when he was already in debt to the IRS, U.S. Attorney Paul J. Fishman announced.
Lee Gottesman, 58, of Toms River, N.J., previously pleaded guilty before U.S. District Judge Freda L. Wolfson an indictment charging him with one count of federal income tax evasion and one count of failing to pay payroll taxes for the employees of his law firm. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
Gottesman operated a law firm in Toms River. In 2002, the IRS filed a levy on Gottesman’s assets because of unpaid taxes. Gottesman then opened a sub-account, within his attorney trust account, in the name of his wife. His wife had never been a legal client of his.
Gottesman ran nearly all of his personal and business expenses through the account, closing all other business and personal accounts in his name. His payments from the account included more than $90,000 in mortgage payments for his home; more than $17,000 in household expenses, including maintenance on his pool, landscaping services and construction costs; and thousands of dollars in other personal expenses, such as life insurance premiums, auto body repair work and personal credit card payments. The scheme allowed Gottesman to avoid paying personal income taxes on the hidden income.
Gottesman also withheld payroll and other taxes from his employees’ pay, but never filed the required forms or turned the withheld payments over to the IRS. Gottesman specifically admitted he did not pay all his personal income taxes owed for 2006 or payroll taxes for 2009.
In addition to the prison term, Judge Wolfson sentenced Gottesman to three years of supervised release. He will also be responsible for paying all taxes owed from 2006 to the present, $27,384.99.U.S. Attorney Fishman credited special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
14-080
Defense counsel: Salvatore Alfano Esq., Bloomfield, N.J.Brooklyn, N.Y., Brothers Admit Traveling to New Jersey to Violently Extort Divorce Consent from Reluctant HusbandRead the Press Release
TRENTON, N.J. - A pair of Brooklyn brothers have admitted on consecutive days to crossing state lines as part of a plan to violently coerce an unwilling husband to grant his wife a religious divorce, U.S. Attorney Paul J. Fishman announced.
Avrohom Goldstein, 34, pleaded guilty today to an information charging him with traveling in interstate commerce to commit extortion. Moshe Goldstein, 31, entered his guilty plea March 10, 2014, to the same charge. Both brothers entered their guilty pleas before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and statements made in court:
On Oct. 9, 2013, Moshe Goldstein, Avrohom Goldstein and a group of conspirators – including David Hellman, 31, their father, Jay Goldstein, 59, Simcha Bulmash, 30, Ariel Potash, 40, Binyamin Stimler, 38, and Sholom Shuchat, 29 – traveled from New York to a warehouse in Edison, N.J., with the intent of forcing a Jewish husband to give his wife a "get," a document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce.
During their guilty plea proceedings, Moshe and Avrohom admitted that when they arrived at the warehouse, the group met with an individual who, unbeknownst to them, was an undercover FBI agent posing as the “husband’s” brother in law. The brothers admitted that they discussed a plan and prepared to confine, restrain and threaten the victim.
The group was then arrested by a team of FBI agents and charged by criminal complaint – along with rabbis Mendel Epstein, 68, and Martin Wolmark, 55 – in connection with the scheme. All of the defendants reside in Brooklyn, except Potash and Wolmark, who live in Monsey, N.Y.
Hellman, the first defendant to plead guilty, admitted the same conduct in Trenton federal court on March 6, 2014; the charges against the alleged conspirators remain pending.
Moshe and Avrohom Goldstein also admitted that on Aug. 22, 2011, they and others went to a residence in Brooklyn where they restrained, assaulted and injured a man in an attempt to extort a divorce from him. That conduct will be considered by the court during sentencing, currently scheduled for June 16, 2014, for Moshe Goldstein and June 20, 2014, for Avrohom Goldstein. Each brother is bailed on a $500,000 bond and subject to GPS monitoring.
The brothers each face a maximum potential penalty of 20 years in prison and a $250,000 fine, 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, for the investigation leading to the guilty pleas. He also thanked the Lakewood, N.J., Police Department for their role.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
The pending charges and allegations against related defendants are merely allegations, and they are considered innocent unless and until proven guilty.
14-082
Defense counsel:
Moshe Goldstein: Roger Stavis Esq., New York
Avrohom Goldstein: Charles Waldron Esq., Lawrenceville, N.J.Goldstein, Avrohom Information
Goldstein, Moshe InformationDoctor Admits Taking Cash Kickbacks for Patient Referrals and Failing to Report Nearly $1 Million in IncomeRead the Press Release
NEWARK, N.J. — An Essex County, N.J., doctor practicing family medicine in East Orange, N.J., today admitted receiving cash kickbacks for diagnostic testing referrals of his patients and failing to file tax returns on $1 million of income over a three-year period, U.S. Attorney Paul J. Fishman announced.
Yash Khanna, M.D., 72, of Livingston, N.J., pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to a six-count superseding indictment charging him with conspiracy to violate the federal health care anti-kickback statute; soliciting and receiving more than $10,000 in illegal cash kickbacks for patient referrals in violation of the anti-kickback statute; and failing to file tax returns for tax years 2008, 2009, and 2010.
According to documents filed in this case and statements made in court:
From 2009 through 2011 Khanna owned and operated his own medical practice, Family Medicine and Pediatrics LLC. He agreed with representatives of a diagnostic testing facility called Orange Community MRI LLC (Orange MRI) that he would be paid cash in exchange for patients he referred for testing. He received cash kickbacks from Orange MRI for diagnostic tests performed on Medicare and Medicaid patients and met with an Orange MRI representative at his office on Oct. 4, 2011, and Nov. 10, 2011, taking envelopes with cash. Khanna acknowledged taking kickback cash from Orange MRI on other occasions as well.
Khanna admitted to earning income of more than $381,000 in 2008, $400,000 in 2009, and $214,000 in 2010. He intentionally failed to file tax returns or ask for extensions during those years.
The anti-kickback charges each carry a maximum potential penalty of five years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. The tax charges each carry a maximum penalty of one year in prison and a maximum $100,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for June 27, 2014.Khanna is the 15th doctor convicted in the government’s investigation of Orange MRI and its corrupt referring doctors. Healthcare practioners convicted in the case have so far forfeited a total of $460,140.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Tom O’Donnell; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and criminal investigators with the U.S. Attorney’s Office for the investigation leading to the guilty plea.The case is being prosecuted by Deputy Chief Scott B. McBride of the U.S. Attorney’s Office’s Economic Crimes Unit and Deputy Chief Joseph G. Mack of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-079
Defense counsel: Christopher L. Patella Esq., Bayonne, N.J.
Khanna Superseding Indictment
Owners of Tax Preparation Business Indicted on New Charges for Filing Phony Tax Returns for New Jersey Prison InmatesRead the Press Release
TRENTON, N.J. – The owners of a tax preparation business that filed fraudulent tax returns on behalf of inmates at various New Jersey prisons were indicted today on additional charges of mail fraud and making claims to the United States for payment of fraudulent tax refunds, U.S. Attorney Paul J. Fishman announced.
The 20-count superseding indictment returned by a federal grand jury against Kamal J. James, aka “Bro Messiah Aziz El,” of Seaford, Del., and Crystal G. Hawkins, aka “Sis. Crystal Gabri El,” of Laurel, Del., adds 16 counts of making claims to the United States for payment of fraudulent tax refunds, and three counts of mail fraud. The original count of conspiring to defraud the United States, on which the defendants were indicted on Jan. 16, 2014, remains in place.
According to the superseding indictment and other documents filed in court:
Between October 2011 and October 2013, defendants James and Hawkins operated Release Refunds, a purported tax preparation business – previously based in Brick, N.J., and now in Seaford, Del. – through which they solicited current and former New Jersey prison inmates as clients and then filed fraudulent tax returns on their behalf.
To execute the scheme, James and Hawkins sent Release Refunds “promotional” flyers to inmates at various New Jersey prisons and halfway houses offering tax return preparation services. The pair asked inmates interested in Release Refunds’ services to provide basic identification information and to sign income tax returns and other IRS documents, but not to include any information about their income or withholdings. James and Hawkins then filled in the missing income information on the return forms, fabricating the inmates’ earnings to trigger fraudulent and inflated refunds.
During the course of the investigation, an undercover IRS-Criminal Investigation agent posing as an inmate in a New Jersey prison submitted a completed Release Refunds form and sent it to James and Hawkins. They then sent the “inmate” blank income tax forms and other IRS documents and instructions to sign the documents. James and Hawkins did not request any financial information from the undercover agent before preparing three fraudulent tax returns – including false income information that James and Hawkins provided – to be filed on behalf of the agent for tax years 2010 through 2012. The fraudulent returns resulted in several thousand dollars in refunds and a $1,485 fee for the defendants.
The conspiracy count carries a maximum potential penalty of 10 years in prison. The fraudulent claims counts each carry a maximum potential penalty of five years in prison and the mail fraud counts each carry a maximum potential penalty of 20 years in prison. The defendants also face a fine of $250,000 or twice the amount of the gain or loss from the offense for each count of conviction.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s charges. He also thanked the U.S. Postal Inspection Service and the N.J. Department of Corrections for their roles in the case.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton and Trial Attorney Tino Lisella of the Justice Department’s Tax Division.The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
14-078
Defense counsel:
James: Pro se; (Bruce Throckmorton Esq., Trenton, standby counsel)
Hawkins: Pro se; (Andrea Bergman Esq. Assistant Federal Public Defender, Trenton, standby counsel)Brooklyn, N.Y., Man Admits Traveling to New Jersey to Violently Extort Divorce Consent from Reluctant HusbandRead the Press Release
TRENTON, N.J. - A Brooklyn, N.Y., man admitted today in Trenton federal court to traveling to New Jersey in order to coerce a Jewish man to give his wife a religious divorce – referred to as a “get” – through threats of violence, U.S. Attorney Paul J. Fishman announced.
David Hellman, 31, a personal trainer, pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with traveling in interstate commerce to commit extortion. His bail conditions include a $500,000 bond and GPS monitoring.
According to documents filed in this case and statements made in court:
On Oct. 9, 2013, Hellman and a group of conspirators – including Jay Goldstein, 59, Moshe Goldstein, 31, Avrohom Goldstein, 34, Simcha Bulmash, 30, Ariel Potash, 40, Binyamin Stimler, 38, and Sholom Shuchat, 29 – traveled from New York to a warehouse in Edison, N.J., with the intent of forcing a Jewish man to give his wife a “get,” a divorce document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce.
Hellman admitted that when he arrived at the warehouse, the group met with an individual who, unbeknownst to them, was an undercover FBI agent posing as the husband’s brother in law. Hellman admitted that they discussed a plan and prepared to confine, restrain and threaten the victim.
The group was then arrested by a team of FBI agents and charged by criminal complaint – along with rabbis Mendel Epstein, 68, and Martin Wolmark, 55 – in connection with the scheme. Hellman is the first defendant to plead guilty; the charges against the alleged conspirators remain pending. All of the defendants reside in Brooklyn, except Potash and Wolmark, who live in Monsey, N.Y.
During his guilty plea proceeding, Hellman also admitted that on Aug. 22, 2011, he and others went to a residence in Brooklyn where they restrained, assaulted and injured a man in an attempt to extort a divorce from him. That conduct will be considered by the court during sentencing, currently scheduled for June 12, 2014.
Hellman faces a maximum potential penalty of 20 years in prison and a $250,000 fine, 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, for the investigation leading to today’s guilty plea. He also thanked the Lakewood, N.J., Police Department for their role.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
The pending charges and allegations against related defendants are merely allegations, and they are considered innocent unless and until proven guilty.
14-077
Defense counsel: Michael Bachner Esq., New York
Hellman, David Information
Montgomery County, Pa., Man Admits Three Bank RobberiesRead the Press Release
CAMDEN, N.J. - A Montgomery County, Pa., man today admitted his role in three bank robberies in Pennsylvania, U.S. Attorney Paul J. Fishman announced.
Kyle Wilson, 22, of Fort Washington, Pa., pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with three counts of bank robbery. In June 2012, Wilson pleaded guilty before Judge Rodriguez to a separate information charging him with traveling from Pennsylvania to New Jersey to commit an aggravated assault in furtherance of an extortion scheme. All three of the bank robberies to which Wilson pleaded guilty occurred after his June 2012 plea while he was released on bail pending sentencing. He is currently detained.
Although the three bank robberies occurred in Pennsylvania, Wilson waived his right to contest venue so that all of his pending criminal charges – the robberies and the prior aggravated assault conviction – could be resolved in the District of New Jersey.
According to documents filed in this case and statements made in court:- On March 6, 2013, Wilson entered a Citizens Bank located inside a Giant Store in Montgomeryville, Pennsylvania. He approached the teller and handed him a withdrawal slip that read “the gun will go off, give me some money.” The teller handed Wilson cash, and Wilson left the store.
- On March 11, 2013, Wilson entered a PNC Bank located inside a Giant Store in Plymouth Meeting, Pennsylvania. He approached the teller and handed him a note. The teller then heard Wilson warn him not to “hit any buttons” and demand money. The teller handed Wilson cash and Wilson left the store.
- On March 14, 2013, Wilson entered a First Niagara Bank in Lower Providence Township, Pennsylvania. He approached the teller, displayed what appeared to be a small black gun, and demanded money. The teller handed Wilson cash, and Wilson left the store.
Each of the three bank robbery counts with which Wilson is charged carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross amount of any pecuniary loss or gain from the offense. Sentencing is scheduled for June 9, 2014.
U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent-in-Charge Robert Panella; the Department of Labor-Wage and Hour Division, under the direction of George Ference, regional administrator; Naval Criminal Investigative Service, under the direction of Special Agent in Charge Cheryl DiPrizio, Northeast field office; and the Air Force Office of Special investigations, under the direction of Special Agent Seth Neville, detachment commander, Joint Base McGuire-Dix-Lakehurst. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Andrew Bruck of the Organized Crime/Gangs Unit of the U.S. Attorney’s Office in Newark.
14-076Defense counsel: Stanley O. King Esq., Woodbury, N.J.
Wilson, Kyle Information
Former New Jersey Attorney Admits Generating More Than $1 Million Profit from Phony Awsuits Filed in New York State CourtRead the Press Release
CAMDEN, N.J. – A former attorney in the Haddonfield, N.J., office of a firm specializing in toxic tort litigation today admitted that he falsified defendants’ names in more than 100 asbestos suits filed in New York State courts in order to increase business and his standing in the firm, U.S. Attorney Paul J. Fishman announced.
Arobert C. Tonogbanua, 44, of Sicklerville, N.J., pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of wire fraud. During the proceeding, Tonogbanua admitted that he fraudulently inserted the names of his former law firm’s clients into legitimately filed asbestos suits and charged the clients more than $1 million in attorney’s fees, costs and settlements to defend them.
According to documents filed in this case and statements made in court:
From 2008 through April 9, 2012, Tonogbanua worked at the Haddonfield office of a firm specializing in toxic tort litigation, workers’ compensation and immigration law, during which time he engaged in the wire fraud scheme.
Specifically, Tonogbanua admitted, he obtained copies of legitimately filed asbestos complaints and fraudulently altered them by deleting a named defendant and inserting the name of one or more of his firm’s clients. Tonogbanua admitted that, unbeknownst to anyone else at the firm, he forwarded those fraudulently altered complaints by email, fax and otherwise to the firm’s clients, their representatives and insurance companies.
After notifying the firm’s clients of the suits, Tonogbanua – and others at the firm who were not involved in the scheme – undertook the representation of the clients, by attending depositions, answering discovery and even settling claims. It is estimated that Tonogbanua inserted his firm’s clients’ names into more than 100 lawsuits, resulting in the generation of more than $1 million in fraudulent fees, costs and settlements. Tonogbanua personally benefitted from the scheme through bonuses and increased compensation.
Tonogbanua faces a maximum potential penalty of 20 years in prison and a $250,000, or twice the gross gain or loss from the scheme – whichever is greater. Sentencing is currently scheduled for June 17, 2014.
Under the terms of the plea agreement, Tonogbanua has agreed to make full restitution to his former law firm for all of the losses resulting from his fraudulent scheme. The firm has already repaid its clients.
U.S. Attorney Fishman credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, with the investigation leading to Tonogbanua’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
14-075
Defense counsel: Michael Miller Esq., Turnersville, N.J.
Tonogbanua, Arobert Information
Essex County, N.J., Man Convicted of CarjackingRead the Press Release
NEWARK, N.J. - An Essex County, N.J., man has been convicted on all counts in connection with a March 2012 carjacking, U.S. Attorney Paul J. Fishman announced today.
Anthony Jefferson, 21, of Newark, was convicted of one count of conspiracy, one count of carjacking and one count of brandishing a firearm in furtherance of a carjacking following a five-day trial before U.S. District Judge Kevin McNulty in Newark federal court. The jury deliberated two hours before returning the guilty verdicts on March 3, 2014.
According to documents filed in this case and the evidence at trial:
On the morning of March 11, 2012, Jefferson and Sharod Culp, 21, of Newark, approached two individuals who were sitting in a parked 2009 Hyundai Sonata in the area of Patterson Street in Newark. Culp pointed a firearm at the victims, and both Culp and Jefferson ordered the victims to get out of the car. After robbing and taunting the victims, Culp and Jefferson fled the area in the carjacked vehicle.
After the carjacked vehicle was recovered, it was processed for evidence, and latent fingerprints identified to be those of Culp and Jefferson were found inside the vehicle. Both victims positively identified Culp as one of the people who carjacked them; one of the victims also identified Jefferson to be the other person who carjacked them. Culp pleaded guilty in July 2013 to carjacking and brandishing a weapon in furtherance of a carjacking and is awaiting sentencing.
The charge of carjacking carries a maximum potential penalty of 15 years in prison. The charge of use of a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each of the two counts also carries a maximum fine of $250,000. Sentencing will be scheduled at a later date.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Newark Police Department, under the leadership of Acting Director Sheilah A. Coley; and the Essex County Prosecutor's Office, under the direction of Acting Prosecutor Carolyn A. Murray; as well as criminal investigators from the U.S. Attorney's Office in Newark with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorneys Robert Frazer and Elizabeth Harris of the U.S. Attorney's Office Criminal Division in Newark.
14-074
Defense counsel: Vincent Sanzone Jr. Esq., Elizabeth, N.J.'Real Housewives of New Jersey’ Stars Plead Guilty to Conspiracy, Bankruptcy Fraud and Tax OffensesRead the Press Release
NEWARK, N.J. – Two of the stars of the Bravo TV television show “The Real Housewives of New Jersey” today admitted committing a string of crimes as part of a long-running financial fraud conspiracy, U.S. Attorney Paul J. Fishman announced.
Teresa Giudice, 41, and Giuseppe “Joe” Giudice, 43, both of Towaco, N.J., pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to several counts of the superseding indictment returned against them in July 2013. The Giudices each pleaded guilty to one count of conspiracy to commit mail and wire fraud, one count of bankruptcy fraud by concealment of assets, one count of bankruptcy fraud by false oaths, and one count of bankruptcy fraud by false declarations. Giuseppe Giudice also pleaded guilty to one count of failure to file a tax return.
“Teresa and Giuseppe Giudice used deception and fraud to cheat banks, bankruptcy court and the IRS,” said U.S. Attorney Fishman. “With their guilty pleas, they admitted the schemes with which they were charged. Having now confessed their wrongdoing, the Giudices face the real cost of their criminal conduct.”
“The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG) is pleased to join our law enforcement colleagues in announcing these guilty pleas today,” A. Derek Evans, Special Agent in Charge of FDIC-OIG, New York Region, said. “We are committed to combating bank fraud and bringing to justice those who engage in criminal conduct that undermines the integrity of our nation's financial institutions.”
“Tax violations have been erroneously referred to as victimless crimes, which is a far cry from reality,” Acting Special Agent in Charge Jonathan D. Larsen, IRS-Criminal Investigation, Newark Field office, said. “Every time someone in America cheats on their taxes there are over 300 million victims. Tax fraud and bankruptcy fraud are real crimes with serious consequences as evidenced today by the guilty pleas of Giuseppe and Teresa Giudice.”
According to documents filed in this case and statements made in court:
From September 2001 through September 2008, Giuseppe and Teresa Giudice engaged in a mail and wire fraud conspiracy in which they submitted fraudulent applications and supporting documents to lenders in order to obtain mortgages and other loans. The Giudices falsely represented on loan applications and supporting documents that they were employed and/or receiving substantial salaries when they were either not employed or not receiving such salaries.
In September 2001 Teresa Giudice applied for a $121,500 mortgage loan for which she submitted a loan application falsely claiming she was employed as an executive assistant. She also submitted fake W-2 forms and fake pay stubs purportedly issued by her employer. For a $361,250 mortgage loan that Teresa Giudice obtained in July 2005, she and Giuseppe Giudice prepared a loan application which falsely stated she was employed as a realtor and that she made a monthly salary of $15,000. In reality, Teresa Giudice was not employed at the time.
The Giudices also admitted they committed bank fraud and loan application fraud in the course of obtaining loans from several banks. On Oct. 29, 2009, they filed a petition for individual Chapter 7 bankruptcy protection in U.S. Bankruptcy Court in Newark. Over the next few months, they filed several amendments to the bankruptcy petition. As part of the bankruptcy filings, the Giudices were required to disclose to the United States Trustee their assets, liabilities, income and any anticipated increase in income. The Giudices intentionally concealed businesses they owned, income they received from a rental property, and Teresa Giudice’s true income from the television show “The Real Housewives of New Jersey,” website sales, and personal and magazine appearances. The Giudices concealed their anticipated increase in income from the then-upcoming second season of the show.
Giuseppe Giudice also admitted that during tax years 2004 through 2008, he received income totaling $996,459 but did not file tax returns for those years.
The conspiracy to commit mail and wire fraud count to which the Giudices each pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Each of the bankruptcy fraud counts carries a maximum potential penalty of five years in prison and a $250,000 fine. Teresa Giudice’s plea agreement requires her to pay $200,000 to the government at the time of sentencing, which is scheduled for July 8, 2014.
The plea agreements also require the Giudices to forfeit money which they obtained via conspiracy to commit mail and wire fraud and bankruptcy fraud, in an amount to be determined by the court at sentencing.
U.S. Attorney Fishman credited special agents of the FDIC-OIG New York, under the direction of SAC Evans; special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Larsen; and Region 3 U.S. Trustee Roberta A. DeAngelis and the Newark office of the U.S. Trustee, with the investigation which led to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the office’s Criminal Division, and Counsel to the U.S. Attorney Rachael A. Honig, in Newark.
13-073
Defense counsel:
Teresa Giudice: Henry E. Klingeman Esq., Newark
Giuseppe Giudice: Miles Feinstein Esq., Clifton, N.J.Giudice, Giuseppe and Teresa Superseding Indictment
Giudice, Giuseppe Plea Agreement
Giudice, Teresa Plea AgreementLouisiana Man Charged with Abusive Sexual Contact of Sleeping Woman on Domestic Flight to New JerseyRead the Press Release
NEWARK, N.J. — A Louisiana man appeared in Newark federal court today to face a charge that he sexually touched 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, 61, an Indian national who lives in Baton Rouge, was arrested on March 2, 2014 – the day his plane arrived in Newark – and was taken into federal custody by the FBI. He appeared this afternoon, to face a complaint charging him with one count of abusive sexual contact, before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court and was detained with the option to request a bail hearing.
According to the complaint filed today:
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. Singh was also touching his exposed penis.
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.
If convicted of the abusive sexual contact charge, Singh faces a maximum potential penalty of two years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the Port Authority Police Department, under the direction of Superintendent Michael A. Fedorko, with the investigation leading to the charge.
The government is represented by J. Jamari Buxton of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
14-072
Defense counsel: Assistant Federal Public Defender Candace Hom Esq., Newark
Singh Complaint
U.S. Attorney for New Jersey and Head of IRS-Newark Field Office: Tax Filing Deadline Is NearRead the Press Release
NEWARK, N.J.— With tax season already upon us, U.S. Attorney Paul J. Fishman and IRS-Criminal Investigation Special Agent in Charge Shantelle P. Kitchen, Newark Field Office, are reminding New Jersey taxpayers about the importance of filing complete and accurate tax returns by the April 15 deadline.
They also urged those who are hiring someone else to prepare their returns to be careful when choosing a professional tax preparer.
“Many taxpayers appropriately hire somebody to prepare their tax returns for them,” U.S. Attorney Fishman said. “Given the importance of filing an accurate and timely tax return, this is a decision that should be made carefully. You should choose a return preparer with the same diligence you would use in selecting a doctor or a lawyer.”
“While the vast majority of return preparers are professional, honest and provide a valuable service to their clients, there are some who are not,” SAC Kitchen said, highlighting two recent cases of return preparers who pleaded guilty to preparing false tax returns for clients:- Sean Gunby, of Jersey City, pleaded guilty Dec. 16, 2013, to one count of aiding and assisting in the preparation of false tax returns. Gunby was the sole owner and operator of Gunby Consulting Inc. and Gunby Consulting Group., Gunby admitted that for the tax years 2006 through 2010 he prepared false tax returns for his clients by fabricating and inflating certain expenses, deductions and credits on Schedules A, C, D and E, of his clients personal tax returns. By falsifying this information, Gunby was able to obtain tax refunds for his clients greater than those they were lawfully entitled to receive. The total amount of tax the IRS was defrauded of as a result of the fraudulent returns prepared by Gunby is $84,559. Gunby faces a maximum prison sentence of three years when he is sentenced on April 4.
- Carlyle Frasier, of Maplewood, N.J., owner of Fraser CPA and Taxko Inc., a tax preparation business, pleaded guilty Jan. 28, 2014, before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of aiding and assisting in the preparation of false individual income tax returns. From 2008 through 2011, Fraser prepared and filed false individual income tax returns for his clients. On April 8, 2011, Fraser prepared a false 2010 individual income tax return for an undercover agent, which claimed false deductions for medical and dental expenses, charitable contributions, unreimbursed employee expenses, tuition, a business loss, and a capital gains loss. In preparing false individual income tax returns for his clients, Fraser caused a tax loss to the IRS of $149,739. Frasier faces a maximum prison sentence of three years when he is sentenced on June 25, 2014.
“Tax violations have been erroneously referred to as victimless crimes, but it’s the honest law-abiding citizen who is harmed when someone tries to cheat our nation’s tax system,” SAC Kitchen said.
“Our tax system depends on honest people filing returns that are complete and accurate,” U.S. Attorney Fishman said. “My office along with IRS-Criminal Investigation will investigate and prosecute those who violate our tax laws.”
Recent tax cases investigated by IRS-Criminal Investigation and prosecuted by the U.S. Attorney’s Office here in New Jersey include:- Amadeus Manata, of Warren, N.J., pleaded guilty Jan. 10, 2014, to an information charging him with one count of subscribing to false personal federal income tax returns. For the tax years 2005 through 2007, Manata filed U.S. individual income tax returns in which he claimed to report all of his income from his pizzeria, Pizza Pasta Etc., but which omitted $563,343 in cash he had diverted from the businesses for his personal use. Manata’s intentional failure to disclose true, correct and complete information to the IRS resulted in a tax loss to the United States of $190,712. Manata faces up to three years in prison when he is sentenced on April 16, 2014.
- Rafael Holguin, of Rochelle Park, N.J., pleaded guilty Jan. 30, 2014, to an information charging him with one count of subscribing to a false corporate tax return for the 2008 calendar year. Holguin was the sole owner of Bronx Express Liquors. For the 2008 calendar year, Holguin signed and filed a false corporate tax return on behalf of Bronx Express Liquors. This return was false in that Holguin failed to include $391,831 of taxable income. In addition, Holguin admitted that he failed to report $513,744 of additional taxable income on the corporate tax returns for 2007 and 2009. Holguin’s intentional failure to report the additional taxable income for the years 2007, 2008 and 2009 resulted in a tax loss to the government of $388,876. Holguin faces up to three years in prison when he is sentenced on May 12, 2014.
IRS-Criminal Investigation is the law enforcement side of the IRS. Special agents investigate potential violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.
14-071- Sean Gunby, of Jersey City, pleaded guilty Dec. 16, 2013, to one count of aiding and assisting in the preparation of false tax returns. Gunby was the sole owner and operator of Gunby Consulting Inc. and Gunby Consulting Group., Gunby admitted that for the tax years 2006 through 2010 he prepared false tax returns for his clients by fabricating and inflating certain expenses, deductions and credits on Schedules A, C, D and E, of his clients personal tax returns. By falsifying this information, Gunby was able to obtain tax refunds for his clients greater than those they were lawfully entitled to receive. The total amount of tax the IRS was defrauded of as a result of the fraudulent returns prepared by Gunby is $84,559. Gunby faces a maximum prison sentence of three years when he is sentenced on April 4.
Former Chairman of Woodland Park, N.J., Democratic Committee Sentenced to Two Years in Prison for Bribing IRS OfficialRead the Press Release
CAMDEN, N.J. — The former chairman of the Woodland Park, N.J., Democratic Committee was sentenced today to 24 months in prison for bribing two individuals he thought were IRS officials to eliminate his tax debt, U.S. Attorney Paul J. Fishman announced.
Michael Kazmark, 61, of Woodland Park, previously pleaded guilty before Chief U.S. District Judge Jerome B. Simandle to an information charging him with one count of bribing a federal public official in exchange for official action. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Kazmark failed to pay federal income taxes from 1997 through 2005. In 2010, Kazmark owed the IRS $98,046 in unpaid federal income taxes, interest and penalties. On April 18, 2010, Kazmark made an application to the IRS for an offer in compromise, requesting that he pay $48,800 to the IRS in order to settle his entire federal tax debt.
On Oct. 5, 2010, Kazmark paid a $1,000 bribe to an undercover FBI agent and IRS employee, posing as IRS officials, in exchange for their official assistance in transferring his offer in compromise file to one of the officials for acceptance. On Nov. 23, 2010, Kazmark made a $17,500 bribe payment to the individuals, believing it was in exchange for their official assistance in placing his federal tax liability in noncollectible status for two years and agreeing to accept Kazmark’s offer in compromise for the amount of the check that he had already paid to the IRS – $9,760 – if he did not incur any additional federal tax liability for two years.
In addition to the prison term, Judge Simandle sentenced Kazmark to two years of supervised release. As a condition of that release, Kazmark is required to pay his full tax liability to the IRS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of the U.S. Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Robert Geary, for the investigation leading to today’s sentence.The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: Miles Feinstein Esq., Clifton, N.J.
Doctor Admits Taking Bribes in Test-Referrals Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A pediatrician with a practice in Staten Island and Brooklyn, N.Y., admitted today he accepted bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president and numerous associates, New Jersey U.S. Attorney Paul J. Fishman announced.
Demetrios Gabriel, 46, of Brooklyn pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
Including Gabriel, 24 people – 13 of them physicians– have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.According to documents filed in this and related cases and statements made in court:
Gabriel admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid more than $4,500 per month. Gabriel received a flat fee of $3,000 per month in cash, plus additional cash based on the number of patient blood samples his pediatric practice referred to BLS each month. In addition, Gabriel received $1,500 per month through credit card payments to a restaurant he owns.The bribery count to which Gabriel pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 18, 2014. As part of his guilty plea, Gabriel agreed to forfeit $200,000, representing the bribes he received from BLS.
The investigation has recovered more than $7 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS– Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $520 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-070Defense counsel: Joseph Corozzo Esq., New York
Gabriel Information
Former Hudson County, N.J., Teacher Sentenced to More Than 10 Years in Prison for Distributing Images of Child Sexual Abuse over the InternetRead the Press Release
TRENTON, N.J. – A former substitute teacher at a private school in Jersey City, N.J., was sentenced today to 121 months in prison for distributing images of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
Guy West, 45, of Jersey City, previously pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of distribution of child pornography. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
West was working as a permanent substitute teacher who regularly taught and supervised children between the ages of 2 and 14 at the time of his January 2013 arrest. West admitted that on Dec. 18, 2012, he made images and videos of child pornography stored on his computer available for others to download via a peer-to-peer file-sharing network. On that date, an undercover law enforcement agent successfully downloaded 120 images and 24 videos of child sexual abuse from West via the file-sharing network.
As part of his guilty plea, West agreed to forfeit the computers and computer accessories he used to commit the offense.
In addition to the prison term, Judge Sheridan sentenced West to serve a lifetime of supervised release. Restitution is to be determined.
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; officers of the Jersey City Police Department, under the direction of Chief of Police Robert Cowan; and the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Nace Naumoski Esq., Roseland, N.J.
Former Atlantic County, N.J., Paralegal Charged with Mail Fraud ConspiracyRead the Press Release
Allegedly Urged Clients to Feign Spousal Abuse to Stay in United States
CAMDEN, N.J. – A woman who allegedly filed false and fraudulent immigration petitions for clients while working as a paralegal in Atlantic County, N.J., made her initial court appearance today on conspiracy charges, U.S. Attorney Paul J. Fishman announced.
Maria James, 68, of Willingboro, Burlington County, N.J., was charged by complaint Feb. 19, 2014, with one count of conspiracy to commit mail fraud. She appeared before U.S. Magistrate Judge Ann Marie Donio in Camden federal court this morning and was released on a $50,000 bond.
According to documents filed in this case:
From 2002 through June 2011, James worked from an office in Brigantine, Atlantic County, as a paralegal on immigration issues, working for three different lawyers. She solicited and recruited as clients for the lawyers’ immigration practices various individuals who were illegally in the United States. James arranged for two marriages and also filed numerous fraudulent immigration petitions seeking to allow her clients to obtain legal permanent resident status.
At least 22 of James’ former clients have admitted that the immigration petitions submitted by James and the attorneys for whom James worked contained false and fraudulent information. Many of the petitions were based upon false claims of physical abuse by spouses against the illegal alien clients, and contained fraudulent supporting documentation, including photographs taken by or at the direction of James. She allegedly used makeup or ketchup to fake the injuries. James then filed or directed the filing of petitions with U.S. Customs and Immigration Services by U.S. Mail or Federal Express.
The charge of conspiracy to commit mail fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew McLees in Newark; and IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
The charge 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: Edward Crisonino Esq., Westmont, N.J.
James Complaint
Doctor Admits Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – An internist with a practice in Montclair, N.J., admitted today accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Charles Goldberg, 60, of West Orange, N.J., pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of accepting bribes.
Including Goldberg, 23 people – 12 of them physicians– have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.According to documents filed in these and related cases and statements made in court:
Goldberg admitted accepting bribes of $1,800 per month through a sham lease agreement with BLS, which identified the waiting room, bathroom and one examination room in Goldberg’s office as being leased.The bribery count to which Goldberg pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. He will be sentenced on a date to be determined. As part of his guilty plea, Goldberg agreed to forfeit $58,000, representing the bribes he received from BLS.
The BLS investigation has recovered more than $7 million to date through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-068Defense counsel: A. Ross Pearlson Esq., West Orange, N.J.
Goldberg InformationAlleged Members of ATM Skimming Scheme Targeting New Jersey Bank Customers in Court for Guilty Plea, SentencingRead the Press Release
NEWARK, N.J. — Two of the leaders of a scheme to steal account information from bank customers throughout New York, New Jersey and Connecticut by installing secret card-reading devices on ATMs were in court today for separate proceedings, U.S. Attorney Paul J. Fishman announced.
Bogdan Radu, 31, of Queens, N.Y., pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Marius Vintila, 31, of Queens, was arraigned before Judge Martini after being charged in a six-count indictment on Feb.18, 2014, with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, possession of 15 or more counterfeit access devices, conspiracy to possess access device-making equipment and possession of access device-making equipment. The ATM skimming operation involving Romanian nationals living in Queens is one of the largest ever uncovered by law enforcement.
Also today, Constantin Ginga, 53, who previously pleaded guilty before Judge Martini to one count of conspiracy to commit bank fraud and one count of aggravated identity theft, was sentenced to 57 months in prison and two years of supervised release. Restitution will be determined at a later date. On Feb. 25, 2014, another defendant, Marius Cotiga, 35, pleaded guilty to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in these and related cases and statements made in court:
Radu admitted designing and creating ATM skimming devices and pinhole cameras. Each skimmer, an electronic device, would read and record identity and account information contained in the magnetic strip of a customer’s ATM card. The pinhole camera secretly recorded bank customers’ keystrokes as they entered their personal identification numbers. Radu taught others how to install them on bank ATMs, and gave his conspirators the devices and pinhole cameras to install on bank ATMs throughout New Jersey, New York, Connecticut and Florida. After capturing customer account information, Radu and others created counterfeit ATM cards they used to withdraw millions of dollars in cash from bank ATMs. From June 2012 through July 2013, they used these devices and cameras to defraud Wells Fargo, Citibank and TD Bank of $5 million.
Vintila worked with Radu to design and create the skimming devices and pinhole cameras and recruited individuals, including Cotiga and Ginga, to install them on bank ATMs. Vintila also used an alias to rent multiple self-storage units, in which he stored the contents of an entire skimming operation, including skimming devices, pinhole cameras, super glue, tape, SD cards, batteries, computers, molds, fraudulent ATM cards and cash proceeds. He was apprehended in Sweden and extradited to the United States on Feb. 7, 2014.
Cotiga and Ginga admitted they installed skimmers and pinhole cameras at bank ATMs and subsequently used counterfeit ATM cards to withdraw cash from bank ATMs. Cotiga, Ginga and others stole approximately $985,000 from Citibank ATMs in New Jersey, New York and Connecticut.
The charges to which Radu and Cotiga pleaded guilty arose from a larger investigation into a skimming scheme that targeted customers in the tri-state area in 2012 and early 2013. Of the 11 others charged in the scheme, all Romanian nationals who lived in Queens, 10 are in custody.
The bank fraud conspiracy charge to which Radu and Cotiga each pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge to which Radu pleaded guilty carries a mandatory, consecutive penalty of two years in prison and a $250,000 fine. Sentencings for Radu and Cotiga are currently scheduled for June 5, 2014.
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, along with special agents of Immigration and Customs Enforcement, Homeland Security Investigations in Newark, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation. He also thanked the Englewood, N.J., Police Department for their role in effecting Ginga’s arrest.
The charges and allegations against the other defendants charged in the pending complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel:
Radu: John P. McGovern Esq., Newark
Vintila: Chris Adams Esq., Colts Neck, N.J.
Ginga: Warren Sutnick Esq., Hackensack, N.J.
Cotiga: John Weichsel Esq., HackensackRadu Information
Cotiga InformationLeader of Massive Real Estate Fraud Scheme Sentenced to 22 Years in Prison for Fraud and Money LaunderingRead the Press Release
TRENTON, N.J. - An Ocean County, N.J., man was sentenced today to 264 months in prison for running a real estate investment fraud scheme that caused $200 million in losses and laundering the proceeds of the scheme, U.S. Attorney Paul J. Fishman announced.
Eliyahu Weinstein, a/k/a “Eli Weinstein,” a/k/a “Edward Weinstein,” a/k/a “Eddie Weinstein,” 38, of Lakewood, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano to two counts of an indictment charging him with conspiracy to commit wire fraud, and money laundering. Weinstein’s co-defendant, Vladimir Siforov, is charged in the indictment with three counts of wire fraud and remains a fugitive.
According to documents filed in this case and statements made in court:
From June 2004 through August 2011, Weinstein orchestrated – with the help of Siforov and others – a real estate investment fraud scheme headquartered in Lakewood that resulted in multimillion-dollar losses to victim investors.
To induce victims to invest, Weinstein and others made various types of materially false and misleading statements and omissions. Weinstein and others told victims that Weinstein’s inside access to certain real estate opportunities allowed him to buy a particular piece of property at a below-market price. Weinstein and others also told victims that their money would be used to purchase a specific property, and the property would be quickly resold – or “flipped” – to a third-party purchaser that Weinstein had lined up. Victims were also told that the victims’ money would be held in escrow until the closing of a purported real estate transaction.
Weinstein bolstered his lies by creating, and causing to be created, various types of fraudulent documents, including “show checks,” which Weinstein led victims to believe represented Weinstein’s investments in specific transactions, but which in fact were never deposited; forged checks, which had actually been negotiated for small amounts, but which Weinstein altered so as to appear worth millions of dollars; and various kinds of phony legal documents, including mortgages, and deeds.
Weinstein and others initially targeted victims from the Orthodox Jewish community to which Weinstein belonged, exploiting his standing in, and knowledge of, the customs and practices of this community to further the scheme. Weinstein abused the Orthodox community’s practice of engaging in transactions based on trust, and without paperwork, to obtain money from his victims without substantial written records. He would then falsely represent that specific real estate transactions existed, that the victims’ monies were used to fund those transactions, or that the victims’ profits from those transactions were being “rolled” into new investments. Weinstein also used a portion of the fraud’s proceeds to fund “charitable and religious contributions,” which he used to elevate his reputation within the Orthodox Jewish community.
By 2010, Weinstein had tarnished his reputation in the Orthodox Jewish community due to the massive losses caused by his fraud scheme and found it difficult to obtain more money to further the scheme from within the community. In April 2010, Weinstein and others began soliciting victims from outside of the Orthodox Jewish community, whom they defrauded out of additional millions of dollars.
Weinstein also used millions of dollars fraudulently obtained from his victims to fund his own lavish spending, including millions of dollars’ worth of antique Judaica and other artwork; a multimillion-dollar collection of jewelry and watches; gambling in Las Vegas and elsewhere; and Weinstein’s personal expenses, including millions of dollars in credit card bills, millions of dollars in legal bills, and luxury car-lease payments.
In addition to the prison term, Judge Pisano sentenced Weinstein to three years of supervised release. Judge Pisano ordered Weinstein to pay restitution of $215.4 million and forfeiture of $215.4 million.
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 sentence. He also credited agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their important contributions to the investigation.
The government is represented by Assistant U.S. Attorneys Zach Intrater, Gurbir S. Grewal, Rachael A. Honig and Evan Weitz.
The charges and allegations against Siforov are merely accusations, and he is considered innocent unless and until proven guilty.
Defense counsel: Eric Creizman Esq., New York
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
14-064Former Director of Finance of New Jersey-Based Toll Global Forwarding Admits Stealing $1.3 Million from the CompanyRead the Press Release
TRENTON, N.J. – The former director of finance of the Middlesex County-based integrated logistic services company Toll Global Forwarding today admitted stealing more than $1.3 million from her former employer through an elaborate false invoicing scheme, U.S. Attorney Paul J. Fishman announced.
Karen Sipes, 40, of Brick, N.J., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging her with wire fraud for her theft from the multi-national company based in Carteret, N.J. She was originally charged by complaint in November 2012.
According to documents filed in this case and statements made in court:
While Sipes was employed at Toll Global Forwarding (TGF) – from August 2010 through August 2012 – she was responsible for entering vendor transactions and invoices into TGF’s accounts payable accounting system and paying those vendors by preparing checks from TGF. As a result, Sipes had access to and significant control over TGF’s accounts payable accounting and bill payment systems.
In the false invoicing scheme, Sipes identified vendors with a high number of transactions and invoices in TGF’s accounting system. She admitted she would then create and input fake transactions and invoices for them, preparing checks payable to herself.
Sipes also admitted that she identified legitimate vendor transactions and invoices and changed vendors’ names to her name, making those checks payable to herself. She also used TGF checks to pay the credit card bill of a family member and accessed TGF’s accounting system to remove any record of the fraudulent transactions.
The wire fraud count to which Sipes pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. As part of her guilty plea, Sipes is required to pay restitution of $1,335,698.93 to Toll Global Forwarding. Sentencing is scheduled for July 29, 2014.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Courtney M. Oliva and Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Michael Critchley Sr. and Edmund DeNoia, Esqs., Roseland, N.J.
Diagnostic Imaging Group to Pay $15.5 Million for Allegedly Submitting False Claims to Federal and State Health Care ProgramsRead the Press Release
NEWARK, N.J. – Diagnostic Imaging Group (DIG) has agreed to pay a total of $15.5 million to resolve allegations that its diagnostic testing facilities falsely billed federal and state health care programs for tests that were not performed or not medically necessary and by paying kickbacks to physicians.
U.S. Attorney for the District of New Jersey Paul J. Fishman, Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery, and U.S. Attorney for the Eastern District of New York Loretta E. Lynch announced the settlement today.
DIG has agreed to pay $13.65 million to the federal government and an additional total of $1.85 million to New York and New Jersey. DIG operates a chain of diagnostic testing facilities through its subsidiary, Doshi Diagnostic Imaging Services, which is headquartered in Hicksville, N.Y. DIG previously operated chains in New Jersey and Florida through subsidiaries Doshi Diagnostic Imaging Services of New Jersey and Signet Diagnostic Imaging Services.
“Health care providers who make decisions based on profit instead of medical need compromise patient safety and confidence,” U.S. Attorney Fishman said. “Unnecessary tests and the payment of kickbacks also siphon precious resources from our health care system. The settlement we’re announcing today is an appropriate response to these unacceptable practices.”
“When health care providers pay kickbacks and submit false claims to Medicare, they not only deplete the Medicare Trust Fund, they undermine the integrity of the health care system,” said Assistant Attorney General Stuart F. Delery. “The Justice Department will relentlessly pursue those who misuse federal health care funds for their own profit.”
The settlement announced today resolves allegations that DIG submitted claims to Medicare, as well as the New Jersey and New York Medicaid Programs, for 3D reconstructions of CT scans that were never performed or interpreted. Additionally, DIG allegedly bundled certain tests on its order forms so that physicians could not order other tests without ordering the additional bundled tests, which were not medically necessary. Today’s settlement also resolves allegations that DIG paid kickbacks to physicians for the referral of diagnostic tests. According to the government, the kickbacks were in the form of payments that DIG made to physicians ostensibly to supervise patients who underwent nuclear stress testing. These payments allegedly exceeded fair market value and were, in fact, intended to reward physicians for their referrals.
“Patients deserve testing decisions based solely on medical need, not doctors’ pocketbooks,” said U.S. Attorney Lynch. “We will continue to work with our federal and state law enforcement partners to investigate vigorously allegations of fraud on federal programs like Medicare and to pursue those who seek to fraudulently deplete the Medicare Trust Fund.”
“Paying physicians for their referrals and submitting false claims to increase Medicare and Medicaid reimbursements – as was alleged in this case – simply cannot be tolerated,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Besides levying a hefty penalty, the settlement requires an independent organization to review Diagnostic Imaging Group’s claims for five years and to send reports to the government.”
The allegations resolved by today’s settlement were raised in three lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The three whistleblowers will receive the following amounts as part of today’s settlement: Mark Novick, M.D., $1.5 million; Rey Solano, $1.07 million; Richard Steinman, M.D., $209,250.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 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.
The government is represented by Assistant U.S. Attorney Charles Graybow of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Trial Attorneys Arthur Di Dio and William Olson of the Justice Department’s Civil Division in all aspects of the case, as well as Assistant U.S. Attorney Paul Kaufman of the U.S. Attorney’s Office for the Eastern District of New York with regard to the Steinman qui tam. New York was represented the New York Attorney General’s Medicaid Control Fraud Unit in New York City, and New Jersey was represented by the New Jersey Attorney General’s Government & Healthcare Fraud Section in Newark.
The settlement is the culmination of an investigation conducted jointly by special agents of the Department of Health and Human Services Office of Inspector General and special agents of the FBI in Newark under the direction of Special Agent in Charge Aaron T. Ford, with contributions from the Railroad Retirement Board.The claims settled by this agreement are allegations only, and there has been no determination of liability. The three cases are captioned United States ex rel. Mark Novick, M.D. v. Doshi Diagnostic Imaging Services P.C., Civil Action No. 09-4992 (D.N.J.), United States ex rel. Rey Solano v. Diagnostic Imaging Group et al., Civil Action No. 10-267 (D.N.J.) and United States ex rel. Richard Steinman, M.D. v. Diagnostic Imaging Group, et al., Civil Action No. 10-4161 (E.D.N.Y.).
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Defense counsel for Doshi:
Mitchell Lazris Esq. and Ronald Wisor Esq., WashingtonCounsel for Relators:
Novick qui tam – bundling, including 3D reconstruction: Marc S. Raspanti Esq. and Michael A. Morse Esq., Philadelphia
Solano qui tam – stress-testing: Eric H. Jaso Esq., New York, and David Bocian Esq., Radnor, Pa.
Steinman qui tam – 3D reconstruction: Timothy McCormack Esq., WashingtonDoshi Executed Settlement Agreement
Clifton Insurance Adjuster Charged with Defrauding N.J. Turnpike Authority and Insurance Companies of over $200,000Read the Press Release
NEWARK, N.J. – The owner of a New Jersey-based insurance adjusting company was arrested today for allegedly defrauding the N.J. Turnpike Authority and certain insurance companies of more than $200,000, U.S. Attorney Paul J. Fishman announced.
Robert Napolitano, 54, of Clifton, N.J., the owner of Dawn to Dusk LLC, an insurance adjusting company that investigated and provided adjusting services to property and casualty insurance carriers in New Jersey, was arrested by special agents of the FBI and charged by complaint filed Feb. 19, 2014, and unsealed today with one count of mail fraud. Napolitano is scheduled to make his initial appearance before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court later today.
According to the complaint:
From October 2011 to June 2013 Napolitano obtained by fraud more than $200,000 from the Turnpike Authority (NJTA) and certain insurance companies in several ways, including instructing insurance companies whose motorists caused damage to the N.J. Turnpike to issue checks payable to Dawn to Dusk. After the checks were mailed to Dawn to Dusk, Napolitano did not forward the payments to the NJTA and instead shared the money with his previously charged conspirator, Gerardo A. Blasi, an NJTA claims manager.
Blasi, 55, of Clifton, pleaded guilty Dec.11, 2013, before U.S. District Judge Kevin McNulty to an information charging him with using the mails to facilitate a scheme and artifice to defraud the NJTA and certain insurance companies in connection with his theft of more than $1.5 million from the authority and the insurance companies. He is scheduled to be sentenced March 19, 2014.The fraud count with which Napolitano is charged is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office Special Prosecution’s Division.
13-061Napolitano, Robert Complaint
Owner of Bulk Mailing Company Sentenced to Two Years in Prison for Multimillion-Dollar FraudRead the Press Release
NEWARK, N.J. – The owner of Clevett Worldwide Mailers LLC, a Succasunna, N.J., bulk mailing house, was sentenced today to 24 months in prison for defrauding clients of more than $1 million through a fraudulent bulk-mailing scheme in which he shredded millions of pieces of mail rather than delivering them, U.S. Attorney Paul J. Fishman announced.
Mark Clevett, 37, of Randolph, N.J., previously pleaded guilty before U.S. District Judge Kevin McNulty to an indictment charging him with one count of conspiracy to commit wire fraud. Judge McNulty imposed the sentence today in Newark federal court. Clevett’s father, Harold Clevett, 68, of Middlesex, N.J., who also previously pleaded guilty to the same charge, will be sentenced March 27, 2014.
According to documents filed in this case and statements made in court:
Mark Clevett owned, and both Clevetts operated, Clevett Worldwide Mailers, which contracted with international and domestic customers to handle large mailings. Customers sent their mail jobs to Clevett Worldwide Mailers for sorting, addressing and delivery to the post office. The company received fees for each piece of mail and for the total weight of the mail that it handled.
Both father and son admitted that rather than sending their clients’ mail as contracted, they directed their employees to throw away all or part of it, and even called in a shredding company to destroy unsent mail.
Mark and Harold Clevett also acknowledged they charged their customers for the full amount of the mailings, even sending some of their customers fraudulent postal forms to make it appear as though the mailings were delivered. The pair admitted that between 2007 and June 2011, they discarded and shredded nearly 3 million pieces of customer mail and reaped nearly $1 million in illicit profits.
In addition to the prison term, Judge McNulty sentenced Mark Clevett to serve three years of supervised release and ordered him to pay restitution of restitution and forefeiture of $999,461.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorneys Rahul Agarwal and Michael Robertson of the U.S Attorney’s Office in Newark.
14-059
Defense counsel:
Harold Clevett: Brian J. Neary Esq., Hackensack, N.J.
Mark Clevett: Don Larsen Esq., Montville, N.J.New Jersey Man Charged in Violation of Mann ActRead the Press Release
NEWARK, N.J. – Federal agents arrested a Middlesex County, N.J., man today in Mercer County, N.J., for violating the Mann Act, a federal law prohibiting interstate transportation of a minor for illicit purposes, U.S. Attorney Paul J. Fishman announced.
Jayme Shannon, 51, of East Brunswick, N.J., was arrested at a residence in East Windsor, N.J., this morning by FBI agents and detectives with the Bergen County Prosecutor’s Office on a federal complaint charging him with interstate transportation of a minor for illicit purposes. Shannon is scheduled to make his initial appearance before U.S. Magistrate Judge Mark Falk in Newark federal court this afternoon.
According to the Complaint:
In September 2013, Shannon met the 15-year old victim in the internet chat room “Chatavenue.com” and continued to communicate with the victim in September and October 2013.
On Oct. 14, 2013, Shannon arranged to meet the victim at the Skyview Motel in Fort Lee, N.J. After renting a motel room that morning, Shannon drove from New Jersey to New York, where he picked up the victim. Shannon then drove the victim from New York to the motel for the purpose of engaging in sexual conduct and did, in fact, engage in sexual conduct with the victim in the motel.
On Oct. 14, 2013, police officers found Shannon and the victim inside the Skyview Motel. Fort Lee Police arrested Shannon, who was charged in New Jersey Superior Court with sexual assault and endangering the welfare of a child.
The federal count with which Shannon is charged carries a minimum penalty of 10 years in prison and a maximum penalty of life imprisonment.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli; and the Fort Lee Police Department, under the direction of Chief Keith Bendul, with the investigation leading today’s arrest.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Shannon Complaint
Burlington, N.J., Real Estate Consultant Sentenced to 20 Months in PrisonRead the Press Release
Helped Clients Fraudulently Obtain Multiple Home Equity Loans.
CAMDEN, N.J. – A real estate consultant was sentenced today to 20 months in prison for helping five people defraud banks by obtaining multiple home equity loans on the same property, U.S. Attorney Paul J. Fishman announced.
William Barksdale, 47, of Burlington, N.J., previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to commit wire fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Barksdale was the owner of Barksdale Business Group, Barksdale Investment Properties, and Barksdale Loan Consultants. He devised a scheme to obtain multiple home equity lines of credit on a single home for more than the property was worth. A homeowner would submit loan applications to several lenders simultaneously without advising each lender about the other applications. Any bank conducting a title search would receive a clean title report because the other home equity lines of credit had not yet been recorded.
Barksdale advised five people to secure multiple home equity loans using his scheme, and each obtained at least three home equity loans on a single property. One individual obtained seven home equity loans on one home. Each person paid Barksdale a portion of the fraudulent proceeds. Many of the home equity loans later went into default. The scheme caused more than $1 million in losses.
In addition to the prison term, Judge Kugler sentenced Barksdale to five years of supervised release. A restitution hearing will be held at a later date.
U.S. Attorney Fishman credited agents of the FBI’s Trenton Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford, and agents of the N.J. Division of Criminal Justice, under the leadership of Director Elie Honig, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
14-058Defense counsel: Robert N. Agre Esq., Haddonfield, N.J.
Barksdale Information
Burlington, N.J., Real Estate Consultant Sentenced to 20 Months in PrisonRead the Press Release
Helped Clients Fraudulently Obtain Multiple Home Equity Loans.
CAMDEN, N.J. – A real estate consultant was sentenced today to 20 months in prison for helping five people defraud banks by obtaining multiple home equity loans on the same property, U.S. Attorney Paul J. Fishman announced.
William Barksdale, 47, of Burlington, N.J., previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to commit wire fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Barksdale was the owner of Barksdale Business Group, Barksdale Investment Properties, and Barksdale Loan Consultants. He devised a scheme to obtain multiple home equity lines of credit on a single home for more than the property was worth. A homeowner would submit loan applications to several lenders simultaneously without advising each lender about the other applications. Any bank conducting a title search would receive a clean title report because the other home equity lines of credit had not yet been recorded.
Barksdale advised five people to secure multiple home equity loans using his scheme, and each obtained at least three home equity loans on a single property. One individual obtained seven home equity loans on one home. Each person paid Barksdale a portion of the fraudulent proceeds. Many of the home equity loans later went into default. The scheme caused more than $1 million in losses.
In addition to the prison term, Judge Kugler sentenced Barksdale to five years of supervised release. A restitution hearing will be held at a later date.
U.S. Attorney Fishman credited agents of the FBI’s Trenton Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford, and agents of the N.J. Division of Criminal Justice, under the leadership of Director Elie Honig, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
14-058Defense counsel: Robert N. Agre Esq., Haddonfield, N.J.
Barksdale Information
Queens, N.Y., Men Sentenced to 57 Months in Prison for Large-Scale Atm Skimming Scheme Targeting New Jersey Bank CustomersRead the Press Release
NEWARK, N.J. - Two Romanian natives residing in Queens, N.Y., were sentenced today to prison terms for a scheme to steal account information from bank customers throughout New York, New Jersey, and Connecticut by installing secret card-reading devices on ATMs, U.S. Attorney Paul J. Fishman announced.
Ioan Leusca, a/k/a “Ionel Spinu,” 30, and Dezso Gyapias, a/k/a “Valentin Folea,” 29, were each sentenced to 57 months in prison.
The defendants previously pleaded guilty before U.S. District Judge William J. Martini to separate informations charging each with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Leusca and Gyapias have been held without bail since their arrests on Jan. 13, 2013. Judge Martini imposed the sentences today in Newark federal court.
According to documents filed in these and other cases and statements made in court:
Leusca and Gyapias admitted that they and their fellow conspirators installed skimmers and pinhole cameras at bank ATMs. The devices were installed on multiple ATMs in New Jersey and Connecticut. Each skimmer, an electronic device, would read and record identity and account information contained in the magnetic strip of a customer’s ATM card. The pinhole camera secretly recorded bank customers’ keystrokes as they entered their personal identification numbers. Leusca and Gyapias admitted that they and other conspirators went back to collect the devices containing the recorded information.
Leusca and Gyapias acknowledged that after the stolen customer account and identification information had been loaded onto blank ATM cards, they and their conspirators used those cards to steal $985,000 from Citibank ATMs in New Jersey, New York and Connecticut.
The charges leading to their sentences arose from a larger investigation into a skimming scheme that targeted customers in the tri-state area in 2012 and early 2013. Together, the schemes cost a number of banks a total of $5 million in cash stolen from their customer accounts.
Of the eight others charged in relation to the wider scheme, all Romanian nationals who lived in Queens, seven are in custody. The leaders of the scheme, Marius Vintila, 31, and Bogdan Radu, 31, were charged by criminal complaint on July 10, 2013. Vintila and Radu designed and created the actual skimming devices and pinhole cameras and recruited individuals, including Leusca and Gyapias, to install them on bank ATMs. Vintila used an alias to rent multiple self-storage units, in which he stored the contents of an entire skimming operation, including skimming devices, pinhole cameras, super glue, tape, SD cards, batteries, computers, molds, fraudulent ATM cards, and cash proceeds. Radu taught co-conspirators how to install the skimming devices, and used an alias to move skimming devices and cash proceeds overseas.Other charged conspirators, including Constantin Ginga, 53, Marius Cotiga, 35, Constantin Pendus, 30, Emil Revesz, 30, Florin Apetrei, 18 and another individual charged as “first name unknown, last name unknown,” a/k/a “Chioru,” installed the devices designed by Vintila and Radu onto bank ATMs and used fraudulent ATM cards to steal millions of dollars. They used hats, jackets, scarves and sunglasses to disguise themselves while installing the devices and while using the cards to withdraw money.
Ginga, Cotiga, Leusca, Gyapias, Pendus, Revesz, Apetrei, and Radu are in custody in New Jersey and being held without bail. Ginga previously pleaded guilty to conspiring to commit bank fraud and aggravated identity theft and awaits sentencing on Feb. 26, 2014. On Sept. 24, 2013, Vintila was apprehended in Sweden and extradited to the United States in February 2014. Vintila was charged in a six-count indictment on Feb.18, 2014, with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, possession of 15 or more counterfeit access devices, conspiracy to possess access device-making equipment, and possession of access device-making equipment. The individual known as “Chioru” remains at large.
In addition to the prison terms, Judge Martini sentenced Leusca and Gyapias to two years each of supervised release and to pay $985,000 in restitution.
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, along with special agents of the U.S. Department of Homeland Security’s Immigration and Customs Enforcement, Homeland Security Investigations in Newark, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s sentences.
The charges and allegations against the other defendants charged in the pending complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
14-055
Defense counsel:
Leusca: Frank Arleo Esq., West Orange, N.J.
Gyapias: Joseph Rotella Esq., NewarkFormer Bayonne Official Admits Accepting $65,000 in Bribes for Awarding HUD Grant FundsRead the Press Release
TRENTON, N.J. - A Hudson County, N.J. man, who served as the senior accountant of the City of Bayonne Department of Community Development (CBDCD) today admitted accepting $65,000 in bribe payments in exchange for his assistance in awarding projects funded by U.S. Department of Housing and Urban Development grants, U.S. Attorney Paul J. Fishman announced.
Anselmo Crisonino, 53, of Bayonne, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to a four-count information charging him with one count of accepting bribe payments totaling approximately $65,000 from Joseph Arrigo, the owner of a contracting company in Bayonne. Crisonino also pleaded guilty to one count of theft and conversion of federal funds ($422,360), one count of conducting an illegal gambling business, and one count of submitting a false tax return for tax year 2011.According to documents filed in this case and statements made in court:
The CBDCD was an agency that received funds from the U.S. Department of Housing and Urban Development (HUD) under a federal program that provided grants up to $20,000 to low income families to rehabilitate their homes and to repair conditions affecting health and safety, accessibility, energy efficiency or code compliance. The CBDCD also provided these HUD funds under the same federal program to nonprofit organizations. Crisonino was responsible for reviewing applications and awarding such funds to qualified applicants.
In September 2010, Crisonino solicited cash bribe payments from Arrigo in exchange for Crisonino’s assistance in awarding HUD grant funds from the CBDCD to Arrigo as the owner of Shadow Contracting LLC. From September 2010 to February 2013, Crisonino received cash payments from Arrigo totaling approximately $65,000 in exchange for Crisonino’s assistance in awarding HUD grant funds from the CBDCD to Arrigo that totaled approximately $426,000.
Between September 2010 and February 2013, Crisonino awarded HUD grant funds to several contractors and plumbers in Bayonne through the CBDCD, despite the fact that Crisonino knew that the submitted bids for the projects were fraudulent and were the result of collusion by the contractors and plumbers. Crisonino also approved change orders on projects where little to no legitimate work had been done by the contractors and plumbers at the job sites. The approved change orders allowed the CBDCD to disperse additional HUD grant funds to the projects that had already reached the maximum $20,000 grant allotment.
Crisonino also pleaded guilty to conducting an illegal gambling business in northern New Jersey. The illegal gambling business was administered and managed through a website that Crisonino and others accessed through usernames and passwords.
He admitted making and subscribing a U.S. Individual Tax Return, Form 1040, for tax year 2011 filed with the IRS, which he did not believe to be true and correct as to every material matter, including approximately $65,000 in unreported income through the bribe payments.
The bribery and theft of government funds charges to which Crisonino pleaded guilty are each punishable by a maximum potential penalty of 10 years in prison. The charge of conducting an illegal gambling business is punishable by a maximum potential penalty of five years in prison. The charge of filing a false tax return is punishable by a maximum potential penalty of three years in prison. All of four charges are also punishable by a $250,000 fine. Sentencing is currently scheduled for June 4, 2014.
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 the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, with the continuing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the Appeals Division.
14-056
Defense counsel: Daniel J. Welsh Esq., Jersey City, N.J.
Crisonino, Anselmo Information
Bulgarian National Admits Role in Largest Identity Theft Ring of Its TimeRead the Press Release
NEWARK, N.J. - A Bulgarian national today admitted his participation in the Shadowcrew forum, an online marketplace for hacking and identity theft that was the largest of its kind when dismantled by the Department of Justice and the U.S. Secret Service in 2004, U.S. Attorney Paul J. Fishman announced.
Aleksi Kolarov, 31, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Count One of the indictment, which charges him with conspiracy to commit both identity theft and access device fraud.
“Aleksi Kolorov has now admitted his role in the most notorious online cybercrime marketplace of its time, selling the means to steal money and identities to other criminals,” U.S. Attorney Fishman said. “His efforts to hide his illegal activity behind computers and foreign borders did not deter us. It is vital that law enforcement work internationally to bring cybercriminals to justice, no matter how long it takes.”
Kolarov evaded capture until June 14, 2011, when Paraguayan law enforcement authorities arrested him at a hotel in Asunción, Paraguay. He was found in possession of hundreds of thousands of dollars in various currencies, counterfeit payment cards and electronic implements to re-encode cards.
“The arrest and extradition of Aleksi Kolarov to the United States demonstrates the steadfast commitment of the Secret Service to protect our nation’s financial infrastructure from unlawful acts committed by cyber-criminals on our homeland,” Special Agent in Charge James Mottola of the U.S. Secret Service, Newark Field Office, said. “The successful apprehension of suspects is due to the efforts our special agents and participating members of the electronic crimes task forces which include federal, state and local law enforcement agencies, private industry and academia.”
According to documents filed in this case and statements made in court:
Shadowcrew.com was an illegal online marketplace that trafficked in at least 1.5 million stolen credit and bank card numbers and caused more than $4 million in losses to the institutions issuing the cards.
Kolarov, along with the other 18 individuals charged in the indictment, participated in the international conspiracy to operate the Shadowcrew site. As part of the organization, Kolarov served as a vendor, using the site to sell illicit merchandise and services to other members. At one time, Shadowcrew.com had approximately 4,000 members dedicated to facilitating malicious computer hacking and the dissemination of stolen credit card, debit card and bank account numbers and counterfeit identification documents, such as drivers’ licenses, passports and Social Security cards. The conspiracy to commit this activity, often referred to as “carding,” facilitated the use of account numbers and counterfeit identity documents to steal identities and defraud banks and retailers.
Of the 19 international participants charged in the indictment, only three remain at large.
The count to which Kolarov pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross amount of pecuniary gain or loss resulting from the offense. Sentencing is scheduled for May 28, 2014.
U.S. Attorney Fishman credited the U.S. Secret Service, under the direction of Special Agent in Charge Mottola, with the investigation leading to the charges. He also thanked the Computer Crime and Intellectual Property Section and Office of International Affairs in the Department of Justice’s Criminal Division for its role in the case and the U.S. Marshals Service for facilitating the extradition. U.S. Attorney Fishman also praised the Paraguayan authorities for their vital role.
The government is represented by Assistant U.S. Attorney Daniel V. Shapiro of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit in Newark.
14-054Defense counsel: Nicholas Wooldridge Esq., New York
Kolarov, Aleski Indictment
Union County, N.J., Man Admits Distributing Images of Chlld Sexual Abuse over the InternetRead the Press Release
NEWARK, N.J. – A Union County, N.J., man today admitted distributing images of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
John Ellenbacher, 48, of Linden, N.J., pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of distributing images of child pornography over the Internet.
According to documents filed in this case and statements made in court:
Ellenbacher admitted that between August 15, 2012, and August 21, 2012, he distributed 90 images and 6 videos depicting child sexual abuse to others via email. As part of his guilty plea, Ellenbacher 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 Ellenbacher pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a mandatory minimum prison sentence of five years, and a fine of $250,000. Sentencing is scheduled for July 8, 2014.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
14-053
Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Ellenbacher Information
Monmouth County, N.J., Doctor Admits Stealing $1.1 MillionRead the Press Release
NEWARK, N.J. – A pain management doctor with a practice based in Red Bank, N.J., admitted today that he embezzled more than $1.1 million from a medical practice, U.S. Attorney Paul J. Fishman announced.
Robert Muscio, 40, a resident of Colts Neck, N.J., pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to one count of committing mail fraud to embezzle those monies.
According to documents filed in this case and statements made in court:
Between 2007 and 2008, Muscio misused his position as medical director of a practice – with which he is no longer associated – to write checks on the practice’s bank account to pay his personal expenses. To conceal this misconduct from his partners, Muscio falsely described the payments as business expenses of the practice.The mail fraud count to which Muscio pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 21, 2014.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell, and the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $520 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-052
Defense counsel: Joseph J. Benedict Esq., New Brunswick, N.J.Muscio Information
Hudson County, N.J., Man Sentenced to 10 Years in Prison for Coercing A Minor to Engage in Sexual ActivityRead the Press Release
NEWARK, N.J. – A Hudson County, N.J. man was sentenced today to 120 months in prison for using video chat programs to persuade a minor girl to engage in sexual conduct, U.S. Attorney Paul J. Fishman announced.
Paul R. Kleinman, 34, of Jersey City, N.J. and Verona, N.J., previously pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to an information charging him with coercing and enticing a minor to engage in sexual activity. 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:
Kleinman admitted that from September 2012 through October 2012, he communicated with a female minor through Skype and FaceTime applications on his tablet and computer. During these online communications, Kleinman instructed the minor to perform sexual acts on herself while he watched.
In addition to the prison term, Judge Hochberg sentenced Kleinman to seven years of supervised release.
U.S. Attorney Fishman credited special agents of the United States Department of Homeland Security, under the direction of Special Agent in Charge Andrew M. McLees, the Union County Prosecutor’s Office under the direction of Acting Prosecutor Grace Park, the Roselle Park Police Department under the direction of Chief Paul Morrison and the Royal Canadian Mounted Police under the direction of Commissioner Bob Paulson with the investigation leading to today’s sentencing.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
14-051
Defense counsel: Anthony Macula Esq., Nutley, N.J.
Staten Island Man Admits Role in New Jersey Cigarette HeistRead the Press Release
Plea Stems from an FBI Undercover Sting Operation
NEWARK, N.J. – A Staten Island, N.Y., man admitted today his role in the theft of a trailer containing 270 cases of counterfeit cigarettes that were part of an FBI undercover sting, U.S. Attorney Paul J. Fishman announced.
Augustine “Augie” Guido, 73, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with conspiracy to commit cargo theft. Guido and seven other conspirators were previously arrested and charged by complaint on Dec. 19, 2012. Guido was released on a $100,000 bond after his arrest.
According to documents filed in this case and statements made in court:
A cooperating witness (CW One) secretly wore a recording device and consensually recorded conversations with various people. CW One assisted federal agents in multiple districts by providing material information, intelligence, and evidence concerning members and associates of La Cosa Nostra and their criminal activities.
On Jan. 27, 2010, CW One and Guido attended a funeral in New York. Guido engaged in a consensually recorded conversation with CW One, asking if CW One was aware of any warehouses that they could rob. Guido said he was interested in stealing perfume, cigarettes and pharmaceuticals.
CW One participated in an FBI sting operation in which Guido and others conspired and stole a tractor-trailer loaded with 270 cases of counterfeit Pall Mall and Lucky 7 cigarettes. The cigarettes were placed in the back of a tractor-trailer at a locked trucking facility in Edison, N.J. Federal agents placed video cameras and other evidence gathering equipment in and around the facility.
On various occasions before July 31, 2010, Guido and his conspirators met to discuss the plan to steal the cigarettes. These meetings were consensually recorded by CW One.
On July 31, 2010, law enforcement officers conducting surveillance near the Edison location observed Guido and his conspirators unlawfully enter the trucking facility. The conspirators, who were wearing masks, drove a tractor into the facility, attached it to a trailer full of cigarettes, and then departed the facility. Guido used a hand-held walkie-talkie to communicate with other members of the conspiracy during the heist. The trailer was dropped off at a warehouse located in Perth Amboy, N.J. Law enforcement officers executed a search warrant at the warehouse and recovered 52 full boxes, with each box containing approximately 50 cartons of the cigarettes.
At the plea hearing, Guido admitted his involvement in the conspiracy to steal the cigarettes from the Edison trucking facility, including planning the theft with other individuals over several months.
Two other conspirators, John S. Dicrescento, 33, of Staten Island, and Anthony Gerbino, 52, of North Valley Stream, N.Y., also pleaded guilty to their roles in the heist. Charges against the other five defendants are still pending.
The conspiracy charge to which Guido pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Guido is scheduled to be sentenced June 4, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked the N.J. State Police; IRS-Criminal Investigation; the U.S. Department of Labor; the Waterfront Commission of New York Harbor; N.J. State Commission of Investigation; and the Bayonne Police Department for their roles in the investigation.
As to the remaining defendants, the charges and allegations contained in the complaints are merely accusations, and they are presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys David M. Eskew and Anthony Moscato of the New Jersey U.S. Attorney’s Office Criminal Division in Newark.14-050
Defense Counsel: Roy B. Greenman Esq, Union, N.J.Guido, Augustine Information
Former Ceo of Oil Services Company Pleads Guilty to Foreign Bribery ChargesRead the Press Release
CAMDEN, N.J. - A former chief executive officer of PetroTiger Ltd. – a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey – today admitted his role in a scheme to pay bribes to foreign government officials and defraud PetroTiger.
U.S. Attorney Paul J. Fishman of the District of New Jersey, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Special Agent in Charge Aaron T. Ford of the FBI’s Newark Division, made the announcement.Knut Hammarskjold, 42, of Greenville, S.C., a former co-CEO of PetroTiger, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to an information charging him with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud. Gregory Weisman, 42, of Moorestown, N.J., the former general counsel of PetroTiger, pleaded guilty to the same charges on Nov. 8, 2013. Charges remain pending against Joseph Sigelman, 42, of Miami, Fla., and the Philippines, the other former co-CEO of PetroTiger, for conspiracy to commit wire fraud, conspiracy to violate the FCPA, conspiracy to launder money and substantive violations of the FCPA.
According to the charges, the defendants allegedly paid bribes to an official in Colombia in exchange for the official’s assistance in securing approval for an oil services contract worth roughly $39 million. To conceal the bribes, the defendants first attempted to make the payments to a bank account in the name of the foreign official’s wife, for purported consulting services she did not perform. The charges allege that Sigelman and Hammarskjold provided Weisman invoices including her bank account information. The defendants made the payments directly to the official’s bank account when attempts to transfer the money to his wife’s account failed.
In addition, court documents allege that the defendants attempted to secure kickback payments at the expense of PetroTiger’s board members. According to the criminal charges, the defendants were negotiating an acquisition of another company on behalf of PetroTiger, including on behalf of several members of PetroTiger’s board of directors who were helping to fund the acquisition. In exchange for negotiating a higher purchase price for the acquisition, two of the owners of the target company agreed to kick back to the defendants a portion of the increased purchase price. According to the charges, to conceal the kickback payments, the defendants had the payments deposited into Sigelman’s bank account in the Philippines, created a “side letter” to falsely justify the payments, and used the code name “Manila Split” to refer to the payments amongst themselves.
Sigelman and Hammarskjold were charged by sealed complaints filed in the District of New Jersey on Nov. 8, 2013. Hammarskjold was arrested Nov. 20, 2013, at Newark Liberty International Airport. Sigelman was arrested on Jan. 3, 2014, in the Philippines. The charges against Sigelman, Hammarskjold, and Weisman were unsealed on January 6, 2014.
The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit wire fraud count carries a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value gained or lost. Sentencing for Hammarskjold is scheduled for May 16, 2014.
As to the charges in the complaint pending against Sigelman, they are merely accusations and the defendant is presumed innocent unless and until proven guilty.
The department has worked closely with and has received significant assistance from its law enforcement counterparts in the Republic of Colombia and greatly appreciates their assistance in this matter. The department also thanks the Republic of the Philippines, including the Bureau of Immigration, for its assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs.
The case is being investigated by the FBI’s Newark Division. The case is being prosecuted by Assistant U.S. Attorney Aaron Mendelsohn of the District of New Jersey and Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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Defense counsel:
Hammarskjold: Kevin G. Walsh Esq., Newark
Sigelman: Andrew C. Lourie Esq., Washington, D.C., and William A. Burck Esq., Washington, D.C.Gregory Weisman: Michael A. Schwartz Esq., Philadelphia, Pa.
Hammarskjold, Knut Information
Burlington County Woman Sentenced to Three Years in Prison for Defrauding Retailers of $500,000 Through Debit Card SchemeRead the Press Release
NEWARK, N.J. - A Burlington County, N.J., woman who used a debit card fraud scheme to steal more than $500,000 from clothing retailers was sentenced today to 36 months in prison, U.S. Attorney Paul J. Fishman announced.
Temeshia McDonald, 29, of Mount Holly, N.J., previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging her with one count of access device fraud. As part of the sentence, McDonald was ordered to pay $557,690.18 in restitution to the retailers victimized by her fraud, including Victoria’s Secret, Banana Republic, Wet Seal, and BCBG. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
McDonald took advantage of a particular type of debit card transaction known as a “forced sale,” which is used from time to time in regular business dealings and is described briefly below.
Ordinarily, when a merchant swipes a credit or debit card, a computerized check is performed to determine whether the account associated with the card is valid. If the account is open and funds are available, the transaction goes through; if the account is closed or funds are unavailable, the transaction is denied. If the transaction is denied, a merchant has two choices: ask the customer for another card, or perform a “forced sale” using the declined card. During a typical forced sale, the merchant calls the card issuer (i.e., the customer’s bank or credit card company) and receives an authorization code. The merchant types the code into the credit card terminal and “forces” the transaction, essentially overriding the denial and allowing the sale to go through. At some later date, the merchant and the card issuer settle the outstanding charge.
But for technical reasons relating to the forced sale process, it does not actually matter what code the merchant types into the terminal. Any combination of digits will override the denial. So long as the customer provides a fake authorization code and convinces the merchant to enter it into the terminal, the transaction will go through. The merchant is unlikely to discover the fraud until days or weeks later.
From April 2011 to September 2012, Defendant McDonald convinced retail merchants to “force” more than 500 transactions on her behalf, totaling more than $800,000 in attempted credit card purchases. Defendant McDonald used this “forced sale” scheme to obtain gift cards, clothes, and accessories from a variety of retail stores, including Victoria’s Secret, Wet Seal, Banana Republic, and BCBG, in New Jersey and other states.
In McDonald’s case, when the cashier finished ringing up McDonald’s goods, McDonald would provide an expired or counterfeit card. The transaction would be denied. McDonald would then pretend to call the card issuer and/or claim to possess an “authorization code” that would allow the purchase to go through. The cashier would then enter the code, thereby forcing the sale and permitting the purchase. Only later, when the merchant and the credit card company attempted to settle the charge, would the retail store realize that McDonald had provided a fake code.
In addition to the prison term, Judge Wigenton sentenced McDonald to three years of supervised release and ordered her to pay restitution of $557,690.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Bruck and Special Assistant U.S. Attorney Thomas Kearney of the U.S. Attorney’s Office Criminal Division in Newark.
14-048Defense counsel: Lorraine Gauli-Rufo Esq., Assistant Federal Public Defender, Newark
McDonald, Temeshia Complaint
McDonald, Temeshia InformationLeader of Large-Scale Identity Theft Ring Sentenced to 12 Years in Prison for His Role in Fraud EnterpriseRead the Press Release
NEWARK, N.J. – The leader of a fraud ring that engaged in identity theft and financial crimes which have led to charges against 54 individuals was sentenced today to 144 months in prison for directing the large-scale, sophisticated criminal enterprise, U.S. Attorney Paul J. Fishman announced.
Sang-Hyun Park, a/k/a “Jimmy,” 48, of Palisades Park, N.J., previously pleaded guilty before then-U.S. Magistrate Judge Patty Shwartz to a five-count information charging him with conspiracy to unlawfully produce identification documents and false identification documents (Count One); conspiracy to commit wire fraud affecting financial institutions and bank fraud (Count Two); aggravated identity theft (Count Three); money laundering (Count Four); and conspiracy to defraud the Internal Revenue Service (Count Five). U.S. District Court Judge Katharine S. Hayden imposed the sentence today in Newark federal court.
“Sang-Hyun Park presided over a criminal enterprise that was extraordinary in its scope and complexity,” U.S. Attorney Fishman said. “The crimes for which he was sentenced today put us all at risk, not just because of the cost to our financial institutions, but also because of the threat posed by fake identification documents. Fortunately, the law enforcement agents and prosecutors who target identity theft and organized crime were just as patient and painstaking as the defendants who designed and executed this scheme, Mr. Park today joins dozens of his criminal conspirators in federal prison.”
“Sang Hyun Park was the mastermind behind multiple, complex, fraudulent schemes that affected numerous financial institutions and individual victims,” FBI-Newark Special Agent in Charge Aaron T. Ford said. “In doing so, he exploited the close ties of the community he lived in. The severity of the sentence imposed today speaks to the outstanding efforts of the FBI, IRS, DHS-HSI, and the United States Attorney's Office who uncovered, investigated and prosecuted Park and all of his co-conspirators who participated in these schemes.”
According to documents filed in these cases and statements made in court:
Park was the leader of a criminal organization (the “Park Criminal Enterprise”) headquartered in Bergen County, N.J., that obtained, brokered, and sold identity documents to customers for the purpose of committing credit card fraud, bank fraud and tax fraud. As part of the scheme, the Park Criminal Enterprise obtained Social Security cards beginning with the prefix “586.” Social Security cards with that prefix were issued by the United States to individuals, usually from China, employed in American territories, such as American Samoa, Guam, and Saipan. The Park Criminal Enterprise sold the cards to its customers and then escorted the customers to various states to use them to obtain identification cards and driver’s licenses.
The Park Criminal Enterprise then engaged in the fraudulent “build up” of credit scores associated with these fraudulently obtained identities. They did so by adding these identities as authorized users to the credit card accounts of various conspirators who received a fee for this service - members of the enterprise’s credit build-up teams. By attaching the identities to these existing credit card accounts, the teams increased the credit scores associated with the identities to between 700 and 800. The members of the build-up teams knew neither the real person to whom the identity belonged nor virtually any of the customers who had purchased the identities.After building the credit scores associated with these identities, Park and his conspirators assisted, coached and directed his customers to open bank accounts and obtain credit cards. Park and his conspirators then used these accounts and credit cards to commit fraud. Park relied on several collusive merchants who possessed credit card processing machines. For a fee, known as a “kkang fee,” these collusive merchants charged the fraudulently obtained credit cards, although no transaction took place. After receiving the money into their merchant accounts from the credit card related to these fraudulent transactions, the collusive merchants gave the money to Park and his conspirators, minus their kkang fee.
Park admitted that he operated the criminal enterprise out of several offices in Bergen County, ran advertisements in local newspapers to attract customers interested in his illegal services, met with customers and other conspirators and otherwise directed the activities of the criminal enterprise. He also admitted that he obtained and sold 586-prefix Social Security cards to his customers and members of his criminal enterprise escorted more than 100 customers to various states so they could fraudulently obtain identification cards and driver’s licenses using the Social Security cards and other fraudulent documents – such as counterfeit Chinese passports.
Park also admitted he conspired with and paid cash to various build-up teams to build the credit scores and establish credit histories for the fraudulent identities that he had sold to his customers. Park also laundered portions of the money he obtained through the fraud by wiring the money to various accounts in South Korea.Park defrauded various credit card companies, banks, and lenders out of $4 million. He and his conspirators also claimed more than $182,000 in tax refunds from the IRS through the filing of false and fictitious tax returns and accompanying documents.
In addition to the prison term, Judge Hayden sentenced Park to five years of supervised release and ordered to pay restitution of $4,774, 116. He will also be deported upon his release from prison.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special
Agent in Charge Aaron T. Ford in Newark; IRS Criminal Investigation, under the direction
of Special Agent in Charge Shantelle P. Kitchen; the Department of Homeland Security’s
Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Andrew M. McLees; the Federal Deposit Insurance Corporation –Office of Inspector General, under the direction of Acting Inspector General Fred W. Gibson Jr.; and the Bergen County Prosecutor’s Office and the office’s Chief of Detectives Steven Cucciniello for their work leading to today’s sentence.The government is represented by Assistant U.S. Attorneys Jane Yoon of the U.S. Attorney’s Office Criminal Division and Anthony Moscato of the Office’s Organized Crime/Gangs Unit in Newark.
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Defense counsel: Christian P. Fleming Esq., East Brunswick, N.J.Middlesex County, N.J., Woman Who Admitted Conspiring to Defraud Treasury Department Sentenced to 44 Months in PrisonRead the Press Release
NEWARK, N.J. — A Middlesex County, N.J., woman who conspired with others to defraud the U.S. Department of the Treasury of more than $1 million in income tax refunds over a four-year period was sentenced today to 44 months in prison, U.S. Attorney Paul J. Fishman announced today.
Jahmeelah Mitchell, 30, of South Plainfield, N.J., previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging her with one count of conspiracy to defraud the United States. Judge Cecchi imposed the sentence today in Newark federal court.According to documents filed in this case and statements made in court:
Between April 2008 and August 2011, Mitchell and others advised numerous people that they could receive tax refunds of several thousand dollars each by filing fraudulent federal tax returns. The scheme involved reporting inflated amounts of income and taxes withheld, which resulted in artificially inflated tax refunds.
Mitchell and her conspirators instructed others to provide Mitchell with names, Social Security numbers, dates of birth, number of dependents and addresses. After obtaining this information, Mitchell electronically filed the fraudulent tax returns using internet-based software from Mitchell’s residence. Mitchell received the tax refunds in the form of either U.S. Treasury checks or prepaid debit cards deposited into various accounts Mitchell established in the names of her conspirators. Mitchell retained a percentage of the refunds as her fee for filing the fraudulent returns.
On August 22, 2011, law enforcement agents executed a search warrant at Mitchell’s residence and recovered ledgers containing identifying information for approximately 100 individuals, as well as a stack of prepaid credit cards issued in the names of dozens of people. Subsequent analysis of this information revealed that a total of 127 people were participants and/or victims, and Mitchell filed hundreds of fraudulent tax returns seeking $1,082,638 in refunds.
In addition to the prison term, Judge Cecchi sentenced Mitchell to three years of supervised release and ordered her to pay $1,082,638 in restitution.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; IRS B Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates, for the investigation leading today’s sentencing.
The government is represented by Assistant U.S. Attorney Adam N. Subervi of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Michael Pedicini Esq., Morristown, N.J.
Trenton, N.J., Mayor Convicted on Federal Extortion, Bribery and Mail and Wire Fraud ChargesRead the Press Release
Mayor’s Brother Also Convicted in Connection with Extortion Plot
TRENTON, N.J. — A federal jury today found Trenton Mayor Tony F. Mack guilty on all six federal extortion, bribery and mail and wire fraud charges against him, U.S. Attorney Paul J. Fishman announced.
Mack’s brother, Ralphiel Mack, was also convicted on three of the charges, but found not guilty on three mail and wire fraud counts, following a five-week trial before U.S. District Judge Michael A. Shipp in Trenton federal court. The Macks were charged in connection with a scheme to accept $119,000 in bribes in exchange for Mayor Mack’s official actions and influence in assisting cooperating witnesses in the development of an automated parking garage on City-owned land.
“The jury’s verdict solidly affirms what we first charged more than a year ago – that Tony Mack, with the helping hands of his brother and their cohorts, sold the mayor’s office and sold out the people of Trenton,” U.S. Attorney Fishman said. “We are very grateful to the members of the jury for their service.”
Tony F. Mack, 48, and Ralphiel Mack, 41, both of Trenton, originally were charged by complaint on Sept. 10, 2012, with one count of conspiracy to obstruct commerce by extortion under color of official right related to the $119,000 extortion scheme. Also charged at that time was Joseph A. Giorgianni, 64, of Ewing, N.J. An indictment returned in December 2012 added charges against all three defendants.
Giorgianni pleaded guilty on Dec. 13, 2013, to one count of conspiring with the Macks and others to obstruct interstate commerce by extorting individuals under color of official right, in addition to a separate extortion scheme, a narcotics charge and illegal weapons possession, all charges unrelated to the Macks.
Mayor Mack was convicted of the six counts charged in the indictment:
- Conspiracy to obstruct and affect interstate commerce by extortion under color of official right;
- Attempted obstruction of commerce by extortion under the color of official right;
- Accepting and agreeing to accept bribes;
- Two counts of wire fraud;
- Mail fraud;
Ralphiel Mack was convicted on the same first three counts and found not guilty of the mail and wire fraud charges. The jury members deliberated for seven hours before returning their verdicts.
According to documents filed in this case and the evidence presented at trial:
Mayor Mack, Giorgianni and Ralphiel Mack conspired to accept approximately $119,000 in cash and other valuables, of which $54,000 was accepted and another $65,000 that the defendants planned to accept, from two cooperating witnesses (“CW-1” and “CW-2”). In exchange for the payments, Mayor Mack agreed to, and did, assist CW-1 and CW-2 in their efforts to acquire a City-owned lot (the “East State Street Lot”) to develop an automated parking garage (the “Parking Garage Project”). The scheme included a plan to divert $100,000 of the purchase amount that CW-2 had indicated a willingness to pay to the City of Trenton for the lot as a bribe and kickback payment to Giorgianni and Mayor Mack. The mayor authorized and directed a Trenton official responsible for disposition of City-owned land to offer the East State Street Lot to CW-2 for $100,000, significantly less than the amount originally proposed by CW-2.
The defendants went to great lengths to conceal their corrupt activity and keep Mayor Mack “safe” from law enforcement. For example, Giorgianni and Ralphiel Mack acted as intermediaries, or “buffers,” who accepted cash payments for Mayor Mack’s benefit. Mayor Mack also used another City of Trenton employee involved in the scheme, Charles Hall III, 49, of Trenton, to contact other Trenton officials to facilitate the Parking Garage Project and to inform the mayor when Giorgianni had received corrupt cash payments. Hall pleaded guilty before Judge Shipp in February 2013 to an information charging him with one count of conspiracy to obstruct commerce by extortion under color of official right and one count of conspiring to distribute narcotics with others, including Giorgianni.
To conceal the corrupt arrangement, the defendants avoided discussing matters related to the scheme over the telephone. When those matters were discussed, they used code words and aliases. One such code word was “Uncle Remus,” which both Giorgianni and Hall regularly used to communicate to Mayor Mack that a corrupt payment had been received. For example, on Oct. 29, 2011, Giorgianni telephoned Hall and informed him that Giorgianni had to “see” Mayor Mack and that “I got Uncle Remus for him,” meaning a corrupt cash payment that Giorgianni had received from CW-1 two days earlier. Giorgianni directed Hall to bring Mayor Mack to a meeting location controlled by Giorgianni (“Giorgianni’s Clubhouse”), stating “we gotta talk” because “I got something that might be good for him” and that “they’ve already come with Uncle Remus,” meaning a corrupt cash payment. On June 13, 2012, Giorgianni telephoned Mayor Mack and informed him that “Uncle Remus,” meaning a corrupt cash payment, “was there.” Mayor Mack replied, “I’ll call you, J. Okay?” In text messages to Mayor Mack related to the scheme, Giorgianni would refer to himself as “Mr. Baker.”
The defendants also concealed their activities by holding meetings concerning the corrupt activity away from Trenton City Hall, including at Giorgianni’s residence, an eatery maintained by Giorgianni known as JoJo’s Steakhouse, Giorgianni’s Clubhouse and Atlantic City restaurants. At one Atlantic City meeting among Mayor Mack, Giorgianni, Hall and CW-2, Mayor Mack instructed Giorgianni to ensure that no photographs were taken in order to conceal the corrupt arrangement.
The extortion conspiracy and attempted extortion charges are each punishable by a maximum potential penalty of 20 years in prison. The bribery charge is punishable by a maximum potential penalty of 10 years in prison. The mail and wire fraud charges are each punishable by a maximum potential penalty of 20 years in prison. All of the counts also carry a potential fine of $250,000 or twice the gain or loss from the offense. Sentencing is scheduled for May 14, 2014
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 the charge.
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:
Tony Mack: Mark G. Davis Esq., Hamilton, N.J.
Ralphiel Mack: Robert Haney, Princeton Junction, N.J.Ringleader of Large-Scale ATM Skimming Scheme Extradited to United States to Face Multiple ChargesRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Sweden is scheduled to make his initial court appearance today following his extradition to face charges that he directed a large-scale ATM skimming scheme targeting New Jersey bank customers, U.S. Attorney Paul J. Fishman announced.
Marius Vintila, a/k/a “Dan Girneata,” 31, is scheduled to appear before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court on a six-count criminal complaint charging him with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, possession of 15 or more counterfeit access devices, conspiracy to possess access device-making equipment, and possession of access device-making equipment. In July 2013, as federal agents arrested various members of Vintila’s large-scale ATM skimming scheme, Vintila fled the United States. On Sept. 24, 2013, he was apprehended in Sweden.
According to documents filed in this and other cases and statements made in court:
Vintila was allegedly the ringleader of an extensive ATM skimming scheme that defrauded Wells Fargo, Citibank, TD Bank and multiple other financial institutions out of at least $5 million. Vintila and his conspirators installed skimmers and pinhole cameras at bank ATMs in order to steal thousands of customer bank account numbers and PIN codes. Each skimmer would read and record identity and account information contained in the magnetic strip of a customer’s ATM card. The pinhole camera secretly recorded bank customers’ keystrokes as they entered their personal identification numbers.
Vintila and another conspirator, Bogdan Radu, 30, who was charged separately and is also in custody, created and constructed the homemade skimming devices and taught others how to install them on bank ATMs. The homemade devices were installed on multiple ATMs in New Jersey, New York, Connecticut, and Florida, and were used to steal thousands of bank account numbers and personal identification numbers. After the account information was stolen, Vintila and his conspirators created false and fraudulent ATM cards, which they used to withdraw millions of dollars from customers’ bank accounts. During the course of the conspiracy, Vintila produced and transferred hundreds of fraudulent ATM cards. Vintila also used an alias, “Dan Girneata,” to open bank accounts, rent vehicles, and rent multiple self-storage units, in which he stored the contents of an entire skimming operation, including skimming devices, pinhole cameras, super glue, tape, SD cards, batteries, computers, molds, fraudulent ATM cards, and cash proceeds.
Vintila’s alleged ATM skimming operation is one of the largest ever uncovered by law enforcement. In total, to date, 12 others have been charged in connection with the skimming scheme. Many of the conspirators are Romanian nationals who lived in and around Queens, N.Y. Other charged conspirators, recruited by Vintila, included Radu, Constantin Ginga, 53; Marius Cotiga, 35; Constantin Pendus, 30; Emil Revesz, 30; Florin Apetrei, 18; Ioan Leusca, 30; Dezso Gyapias, 29; Luis Franco, 23; Mirel Hadzalic, 24; Enes Causevic, 23; and another individual charged as “FNU LNU,” (first name unknown, last name unknown) a/k/a “Chioru.” These conspirators installed the devices designed by Vintila and Radu and used the stolen bank account information to withdraw millions of dollars from bank customers’ accounts.
With the arrest of Vintila, 12 of the 13 conspirators charged in connection with Vintila’s ATM skimming scheme to date are in custody in New Jersey and are being held without bail. Leusca and Gyapias have pleaded guilty to separate informations charging each with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. They await sentencing on Feb. 20, 2014. Ginga also previously pleaded guilty to conspiring to commit bank fraud and aggravated identity theft and awaits sentencing on Feb. 26, 2014.
Vintila is charged with six counts, as described below, which carry the following maximum penalties and fines:
Count
Offense
Maximum Penalty
Maximum Fine
Conspiracy to Commit Bank Fraud
Thirty years in prison
$1 million
2
Aggravated Identity Theft
Mandatory, consecutive penalty of two years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
3
Conspiracy to Possess Fifteen or More Counterfeit Access Devices
Five years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
4
Possession of Fifteen or More Counterfeit Access Devices
Ten years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
5
Conspiracy to Possess Access Device-Making Equipment
Seven and one-half years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
6
Possession of Access Device-Making Equipment
Fifteen years in prison
$250,000, or twice the gross pecuniary gain or loss from the offense
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, along with special agents of Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Newark, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to Vintila’s arrest and extradition. U.S. Attorney Fishman also thanked the U.S. Secret Service London Field Office, HSI Frankfurt, the Swedish National Bureau of Investigation, Fugitive Active Search Team, and the Police Authority of Skåne, Malmo Division, for their assistance in locating and apprehending Vintila in Sweden. The Office of International Affairs from the Justice Department’s Criminal Division provided assistance with the extradition.The charges in the complaint against Vintila are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David M. Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
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Vintila Complaint
Former Mayor of Manalapan, N.J., Arrested for Mortgage Fraud, Identity Theft, and Obstruction of JusticeRead the Press Release
Indictment Alleges Former Mayor Defrauded Investment Client of $250,000 and Submitted Falsified Tax Returns in Order to Purchase Farm in Manalapan
TRENTON, N.J. – The former mayor of Manalapan, N.J., was arrested today on charges that he falsified his 2007 and 2008 tax returns in order to purchase a farm property in Manalapan and that he provided federal investigators and a federal grand jury with a fabricated document in 2013, U.S. Attorney Paul J. Fishman announced.
Andrew Lucas, 36, was arrested as a result of an 11-count indictment charging him with wire fraud, illegal monetary transaction, loan application fraud, false statements to the IRS, aggravated identity theft, obstruction of a grand jury investigation and falsification of records in a federal investigation. Lucas is scheduled to make his initial court appearance this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.
According to the indictment unsealed today:
On Dec.15, 2009, Lucas submitted a loan application to a New Jersey bank requesting $525,000 to finance his purchase of the Burke Farm property in Manalapan. Lucas provided the bank with falsified versions of his 2007 and 2008 tax returns, as well as a falsified version of a 2007 tax return for a relative whose name was also on the loan application. Lucas also falsely reported that he had a total of $210,000 in cash.
Lucas owned and operated Lucas Capital Advisors LLC (Lucas Capital), through which he served as an investment advisor and manager to multiple individuals. To obtain the $250,000 down payment for the property, Lucas approached “Victim 1,” who was a client of Lucas Capital, to pitch an investment in an entity called VLM Investments LLC (VLM). On Feb. 15, 2010, Lucas presented a written note to Victim 1, which stated that the $250,000 investment was to be secured by “…interest in the equipment, fixtures, inventory and accounts receivable” of VLM. However, Lucas failed to inform Victim 1 that at the time the note was signed, VLM did not exist. Lucas also failed to disclose to Victim 1 that Lucas intended to make personal use of the funds. It was not until three days later, on Feb. 18, 2010, that Lucas created VLM by registering it with the State of New Jersey and the IRS, using the name and Social Security number of Lucas’s out-of-state relative, “Victim 2,” without Victim 2’s knowledge or permission.
On Feb. 22, 2010, Lucas wired $250,000 from Victim 1’s Lucas Capital investment account to a VLM bank account that had Lucas as the only authorized signer. On March 1, 2010, Lucas withdrew this money in the form of a bank check, which he provided the next day to the closing attorney for the purchase of the Burke Farm property.
Lucas also filed tax returns for VLM for tax years 2011 and 2012, both times listing Victim 2’s name and Social Security number without Victim 2’s knowledge or permission.
Federal investigators served Lucas with subpoenas on Feb. 7, 2013, for the records of VLM and Lucas Capital Advisors. In response, Lucas provided federal authorities with a fabricated and back-dated letter purporting to be from Victim 2 concerning a transaction for the purchase of the Burke Farm property.
The counts of wire fraud and falsification of records in a federal investigation are each punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine. Loan application fraud is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. Illegal monetary transaction and obstruction of a grand jury investigation are each punishable by a maximum potential penalty of 10 years. Each of the charges of false statements to the IRS is punishable by a maximum potential penalty of five years in prison. Aggravated identity theft is punishable by a mandatory prison term of two years, to be run consecutive to any other sentence.
U.S. Attorney Fishman credited special agents of the FBI Red Bank Office, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and investigators with the U.S. Attorney’s Office, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton and Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Special Prosecutions 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: Mario F. Gallucci Esq., Staten Island, N.Y.
Lucas Indictment
Cape May County, N.J., Man Admits Transporting Minor Across State Lines for SexRead the Press Release
CAMDEN, N.J. – A Cape May County, N.J. man today admitted transporting an underage girl across state lines for the purpose of engaging in sexual activity, U.S. Attorney Paul J. Fishman announced.
Michael Kulick, 46, of Dennis Township, N.J., pleaded guilty before U.S. District Court Judge Joseph E. Irenas to an information charging him with one count of transportation of a minor over state lines in order to engage in sexual activity.
According to documents filed in this case and statements made in court:
In August 2012, Kulick and his family went on a vacation to Lancaster, Pa., accompanied by his daughter’s friend, a 15-year-old girl. Kulick engaged in sexual contact with the minor girl while staying at a hotel in Pennsylvania. Kulick admitted that after returning to New Jersey, he continued to have a sexual relationship with the minor girl for approximately two months. Kulick also admitted that at the time that he transported the minor girl to and from Pennsylvania, he knew that it was illegal in both New Jersey and Pennsylvania to commit statutory rape.
The count to which Kulick pleaded guilty is punishable by a maximum potential penalty of 10 years in prison, a $250,000 fine and restitution for the victim. He will also be required to serve at least five years of supervised release. Sentencing is scheduled for May 13, 2014.
U.S. Attorney Fishman credited special agents of the FBI Atlantic City resident agency, under the direction of Special Agent In Charge Aaron T. Ford; in Newark; the N.J. State Police, under the direction of Col. Rick Fuentes, superintendent of the state police, and investigators with the Cape May County Prosecutor’s office, under the direction of Prosecutor Robert L. Taylor, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Edwin J. Jacobs Jr. Esq., of Atlantic City, N.J.
Kulick Information
Alabama Man Admits Attempted Murder of Witness, Mortgage Fraud Conspiracy and Money LaunderingRead the Press Release
CAMDEN, N.J. – An Alabama man admitted today to conspiring to defraud financial institutions and launder stolen funds 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.
Kinard Henson, 41, of Ventress, Ala., also admitted to the attempted murder of a straw buyer who was a witness to the mortgage fraud scheme.
Henson 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, one count of conspiracy to commit money laundering, and one count of attempted murder of a witness in a federal case.
According to the documents filed in this case and statements made in court:
Henson 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.
Henson’s conspirators, including Timothy Ricks, 46, of East Orange, N.J., who pleaded guilty before Judge Simandle on Feb. 27, 2013, 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, N.J., 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 sale and finder’s fee agreements.
Henson recruited one of the straw buyers to purchase certain properties at the inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans. The conspirators created false documents, such as fake W-2 forms, pay stubs, bank statements and investment statements, to make the straw buyers appear more creditworthy than they actually were in order to induce the lenders to make the loans.
Henson and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers, 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, Henson received a portion of the proceeds from his conspirators, after his conspirators had funds wired or checks deposited into various accounts they controlled. Henson’s conspirators also distributed a portion of the proceeds to other members of the conspiracy for their respective roles.
Henson learned of a subpoena seeking documents in connection with a straw buyer’s purchases of real estate properties shortly after it was served by federal law enforcement agents on a mortgage brokerage firm. Henson, who had recruited the straw buyer, contacted another individual to kill the straw buyer. They then lured the straw buyer to a wooded area in Mobile, Ala. At Henson’s direction and using Henson’s firearm, the other individual shot the straw buyer multiple times.
The wire fraud conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy charge is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine. The attempted murder of a witness charge carries a maximum potential penalty of 30 years in prison and a $250,000 fine. Henson’s is scheduled to be sentenced July 11, 2014.
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 Shantelle P. Kitchen in Newark, for their roles in the ongoing investigation.
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.
14-041Defense counsel: Stanley King Esq., Woodbury, N.J.
Henson, Kinard Second Superseding Indictment
New Jersey Doctor Convicted of Taking Cash Kickbacks for Patient ReferralsRead the Press Release
NEWARK, N.J. – A doctor practicing in Newark was convicted at trial of receiving cash kickbacks for diagnostic testing referrals, becoming the 14th doctor and 16th defendant to be convicted in connection with the government’s investigation of illegal payments made by an Orange, N.J., diagnostic testing facility, U.S. Attorney Paul J. Fishman announced today.
Maryam Jafari, 43, was convicted of all three counts of a superseding indictment charging her with conspiracy and two counts of violating the federal health care anti-kickback statute after a three-week trial before U.S. District Judge Claire C. Cecchi in Newark federal court. The jury returned the guilty verdicts late Tuesday afternoon (Feb. 4, 2014) after two hours of deliberations.
According to documents filed in this case and the evidence at trial:
Jafari was a doctor licensed in New Jersey to practice internal medicine and operated an office in Newark. From 2010 through December 2011, Jafari solicited and received cash kickbacks from Orange Community MRI LLC (Orange MRI) in exchange for MRIs and CAT scans she referred to the diagnostic testing facility.
At the end of each month, OCM printed patient reports that included information such as dates of service, patient name, referring health care practitioner and medical insurance to be billed. The reports were used to tally the number of tests referred by each doctor and determine the amount of kickback payment paid to the referring healthcare provider.
On Nov. 22, 2011, Jafari met with a cooperating witness at Jafari’s office and accepted a white envelope containing $1,965 in cash, payments for three months of tests Jafari referred to Orange MRI. On Dec. 6, she accepted another payment of $420 in cash for referrals from October 2011. A trial on these charges in 2012 ended in a mistrial when the jury could not reach a unanimous verdict.
The charges of which Jafari was convicted are each punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing will be scheduled at a later date.U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, who investigated the case with criminal investigators from the U.S. Attorney’s Office.
The government is represented by Assistant U.S. Attorneys Scott B. McBride and Deputy Chief Joseph G. Mack 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 $500 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-040Defense counsel: Maria Noto Esq., Matawan, N.J.
Jafari, Maryam Superseding Indictment
Bergen County, N.J., Woman Admits Role in $2 Million Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. - A Bergen County, N.J., woman today admitted her role in a large-scale mortgage fraud scheme that caused millions of dollars in losses, U.S. Attorney Paul J. Fishman announced.
Klary Arcentales, 45, of Lyndhurst, N.J., pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging her with one count of conspiracy to commit bank fraud and four counts of bank fraud.
According to the documents filed in this case and statements made in court:
Between 2007 and 2012, Arcentales engaged in a mortgage fraud conspiracy through a company called Premier Mortgage Services (Premier), where she worked as a loan officer. Arcentales provided false and fraudulent documents to financial institutions in connection with mortgage loan applications on behalf of “straw buyers” to induce those financial institutions to fund mortgage loans. Arcentales then profited illegally by receiving a commission from Premier for each mortgage loan that she closed and by diverting portions of the fraudulently obtained mortgage proceeds to herself.
Two other conspirators, Lester Soto, 57, of Freehold, N.J., and Linda Cohen, 56, of Orange, N.J., previously pleaded guilty in connection with their roles in the mortgage fraud scheme. Soto acted as a loan officer on certain Premier mortgage loan applications and took a percentage of Premier’s profits. Soto employed document makers to create false and fraudulent documents in furtherance of the scheme and put loan officers at Premier, including Arcentales, in contact with these document makers to create other false and fraudulent documents. Soto is scheduled to be sentenced on Feb. 10, 2014.
Cohen was a paralegal who served as the settlement agent on mortgage loans brokered by Arcentales for various properties. Cohen convened closings, received funds from lenders, and prepared “HUD-1” reports that claimed to reflect the sources and destinations of funds for mortgages on subject properties. However, the HUD-1s were neither true nor accurate. Cohen is scheduled to be sentenced Feb. 18, 2014.
Arcentales faces a maximum potential penalty of 30 years in prison and a fine of $1 million, or twice the gross gain or loss caused by her offense. Sentencing is currently scheduled for May 19, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea. Fishman also thanked the Social Security Administration-Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan, for its participation in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and Zach Intrater of the Criminal Division in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
14-039Defense counsel: Michael Orozco Esq., Newark
Arcentales, Klary Indictment
Russian National Sentenced to 30 Months in Prison for $1 Million Trading Account Hack, Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Russian national living in New York was sentenced today to 30 months in prison for conspiring with others to hack into retail brokerage accounts and execute sham trades, New Jersey U.S. Attorney Paul J. Fishman announced.
Petr Murmylyuk, 33, of Brooklyn, N.Y., previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with conspiracy to commit securities fraud. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Murmylyuk admitted that he participated in a conspiracy to steal from online trading accounts at Scottrade, E*Trade, Fidelity, Schwab and other brokerage firms. Members of the conspiracy first gained unauthorized access to the online accounts of brokerage firm customers. The conspirators then used stolen identities to open additional accounts – referred to in the Information as “Profit Accounts” – at other brokerage houses. They then caused the victims’ accounts to make unprofitable and illogical securities trades with the Profit Accounts, leading to losses in the victims’ accounts and gains in the Profit Accounts. One version of the fraud involved causing the victims’ accounts to sell options contracts to the Profit Accounts, then to purchase the same contracts back minutes later for many times the price.
The members of the conspiracy recruited foreign nationals visiting, studying, and living in the United States to open bank accounts into which illegal proceeds could be deposited. The conspirators then caused the proceeds of the sham trades to be transferred from the Profit Accounts into those accounts, where the stolen money could be withdrawn. The scheme caused combined losses to Scottrade, E*Trade, Fidelity, Schwab and other affected brokerage firms of approximately $1 million.
In addition to the prison term, Judge Salas sentenced Murmylyuk to serve three years of supervised release and ordered him to pay $505,357.79 in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew McLees; and IRS – Criminal Investigations, New York Field Office, under the direction of Special Agent in Charge Toni M. Weirauch, with the investigation leading to today’s sentencing. He also thanked the U.S. Securities and Exchange Commission’s Philadelphia Regional Office, under the leadership of its Regional Director Daniel M. Hawke, and the Justice Department’s Computer Crime and Intellectual Property Section for their assistance in the investigation, as well as the Manhattan District Attorney’s Office, under the direction of District Attorney Cyrus R. Vance Jr., for its contributions and cooperation in coordinating parallel investigations.
The government is represented by Assistant U.S. Attorney Christopher J. Kelly, Chief of the Economic Crimes Unit in Newark.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.
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Defense counsel: Bradley L. Henry Esq., New YorkFour Brooklyn, N.Y., Men Indicted for Armed Robberies of Electronics Stores in New Jersey and New YorkRead the Press Release
NEWARK, N.J. – A federal grand jury returned a superseding indictment today against four Brooklyn, N.Y., men in connection with a spree of eight armed robberies of electronic stores in New Jersey and New York, U.S. Attorney Paul J. Fishman announced.
Today’s indictment adds multiple defendants and counts to the original indictment returned on May 22, 2013. Carl Williams, 30, Eric Williams, 33, (no relation) Kajuan Crawley, 26, and Unique Randolph, 27, are charged with one count of conspiracy to commit Hobbs Act robbery in connection with eight armed robberies of electronic stores that took place between May 30, 2012, and Jan. 16, 2013, including robberies in Linden, Paramus, and Woodbridge, N.J.
In addition, Carl Williams and Eric Williams, both arrested on Feb. 14, 2013, are each charged with two counts of Hobbs Act robbery and two counts of using a firearm in furtherance of a crime of violence. Randolph, arrested July 24, 2013, and Crawley, arrested Oct. 2, 2013, are also each charged with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence. All defendants have been detained since their arrest.
All defendants are scheduled to appear before U.S. District Judge Joel A. Pisano in Trenton federal court for an arraignment at a date yet to be determined.
According to the indictment and other documents filed in this case:
Crawley, Randolph, Carl Williams, and Eric Williams conspired to commit eight armed robberies of electronic stores as follows:
Date
Store
Location
Radio Shack
New Rochelle, N.Y.
June 11, 2012
T-Mobile
Hempstead, N.Y.
June 18, 2012
Radio Shack
Westbury, N.Y.
June 20, 2012
T-Mobile
West Hempstead, N.Y.
June 21, 2012
Radio Shack
Rockville Center, N.Y.
Sept. 20, 2012
T-Mobile
Linden, N.J.
Oct. 2, 2012
T-Mobile
Woodbridge, N.J.
Jan. 16, 2013
T-Mobile
Paramus, N.J.
The men used a similar routine for each of the robberies. One or two men would serve as lookouts while two or more men would enter the store, brandish a firearm, and tie-up the store employees at gunpoint. After tying up the employees, the men would steal cell phones and other electronic equipment and then flee in getaway cars.
The charges of conspiracy to commit a Hobbs Act robbery are punishable by a maximum potential penalty of 20 years in prison. The first count of using a firearm in furtherance of a crime of violence carries a mandatory minimum penalty of seven years and a maximum of life in prison. Any additional count carries a mandatory minimum prison term of 25 years and a maximum of life in prison. Each charge also carries a maximum 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 Linden, Paramus, 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.The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel:
Carl Williams: Mark A. Berman Esq., River Edge, N.J.
Kajuan Crawley: Maria D. Noto Esq., Matawan, N.J.
Eric Williams: Aaron M. Goldsmith Esq., New York
Unique Randolph: Damian P. Conforti Esq., NewarkWilliams, Carl et al., Superseding Indictment
Four Indicted in New Jersey for Allegedly Trafficking A Minor, Forcing Her to Work as A ProstituteRead the Press Release
TRENTON, N.J. – A federal grand jury in Trenton returned a superseding indictment today charging four men from New York and Pennsylvania with various offenses related to the trafficking of a minor and forcing her into prostitution for their own profit, New Jersey U.S. Attorney Paul J. Fishman announced.
The indictment charges Varian Charles, 29, aka “Bob,” of Philadelphia; Wilbur Senat, 24, aka “Wilby,” of Haverstraw, N.Y.; Samuel Verrier, 35, aka “Dre,” of Philadelphia; and Karl Venord, 31, aka “Imme,” of Philadelphia. All four were previously charged by complaint with related offenses in July 2013 and have been detained since that time. Charles was subsequently indicted. Today’s superseding indictment adds additional charges. All four defendants will be arraigned on a date to be determined.
According to the documents filed in this case:
The minor victim met Senat in the summer of 2011 in upstate New York. Shortly after they met, Senat took her to a motel in Nyack, N.Y., where he forced her to engage in commercial sex acts with various individuals for which they paid Senat. Senat threatened the victim’s family if she did not leave New York with him, so she agreed, and Senat purchased tickets for himself and the minor victim to take public transportation from New York to Philadelphia.
Charles met Senat and the victim in Philadelphia, where the men told the girl she would be staying at Charles’ house to engage in prostitution. While there, the victim was forced to have sex with various individuals who paid Senat and Charles. Senat and Charles also physically abused her.
Verrier met the victim while she was at Charles’ house, and took her. He then brought her to various clubs in Philadelphia, where he instructed her to solicit club patrons for sex acts in exchange for money.
In late August 2011, Verrier introduced the victim to Venord and the pair took her to New Jersey. During the drive, the men told her they intended to blackmail an individual in New Jersey, instructing her to have sex with this individual and take photographs of him. After locating the individual outside a bank in Bordentown, N.J., they were unsuccessful in their attempt.
The charges and maximum penalties are as follows:
Count
Defendant(s) Charged
Maximum Potential Penalty
Charles
SenatLife in prison; $250,000 fine
2 – sex trafficking of children
Senat
Life in prison (10 year minimum/15 year minimum if by force); $250,000 fine
3 – conspiracy to transport minors to engage in prostitution
Charles
SenatLife in prison (minimum 10 years); $250,000 fine
4 – transportation of a minor to engage in prostitution
Senat
Life in prison (minimum 10 years); $250,000 fine
5 – conspiracy to transport a minor to engage in criminal sexual activity
Verrier
VenordLife in prison (minimum 10 years); $250,000 fine
6 – transportation of a minor to engage in criminal sexual activity
Verrier
VenordLife in prison (minimum 10 years); $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. The New Jersey Division of Criminal Justice also provided assistance.
The government is represented by Assistant U.S. Attorneys Sarah Wolfe in Trenton and Courtney M. Oliva in Newark.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
Charles, Varian Superseding Indictment
Morris County, N.J., Man Convicted of Armed Bank RobberyRead the Press Release
NEWARK, N.J. – A Morris County, N.J. man has been found guilty of robbing a bank at gunpoint, U.S. Attorney Paul J. Fishman announced today.
Rahman Fulton, 35, of Randolph, N.J., was convicted by a jury Jan. 28, 2014, after a two-week trial before U.S. District Judge Stanley R. Chesler in Newark federal court. The jury deliberated three hours before returning guilty verdicts on one count of bank robbery and one count of using a firearm in furtherance of the bank robbery.
According to documents filed in this case and the evidence at trial:
Fulton was charged with robbing the PNC bank in Randolph May 25, 2012. Fulton entered the bank wearing a black cloth mask covering his head and face and holding a handgun. He demanded and received money from a bank teller. The bank teller slipped a GPS tracking device into the money she handed over to Fulton. The GPS data placed the tracking device in Fulton’s bedroom minutes after the robbery. He later lied to the police about his whereabouts during the robbery and made other incriminating statements to his girlfriend and girlfriend’s sister, including a call just 10 minutes after the robbery to someone that worked across the street from the bank asking them if they had heard about the robbery.
Fulton faces a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, on the bank robbery conviction and a mandatory consecutive seven years in prison on the weapons conviction. Sentencing is scheduled for May 13, 2014.
U.S. Attorney Paul J. Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the charge. He also thanked the Randolph Township Police Department and Morris County Prosecutor’s Office for their contributions to the case.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Elizabeth Harris of the U.S. Attorney's Office General Crimes Unit in Newark.14-033
Defense Counsel: Carol Gillen Esq. and K. Anthony Thomas Esq., Assistant Federal Public Defenders, NewarkHudson County, N.J., Man Sentenced to More Than Eight Years in Prison for Sexually Abusing Sleeping Woman on Domestic FlightRead the Press Release
NEWARK, N.J.— A Hudson County, N.J., man was sentenced today to 97 months in prison for sexually abusing a sleeping woman aboard a flight from Phoenix to Newark Liberty International Airport in August 2012, U.S. Attorney Paul J. Fishman announced.
Bawer Aksal, 49, of North Bergen, N.J., was previously convicted of one count of sexual abuse and one count of abusive sexual contact following a five-day trial before U.S. District Judge Jose L. Linares. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence presented at trial:
Aksal was a passenger on a United Airlines flight from Phoenix to Newark on Aug. 20, 2012, sitting in the middle seat in a row of three. Neither Aksal, the victim seated by the window nor the passenger in the aisle seat knew one other. Before the plane took off, the victim texted a friend complaining about Aksal’s arm encroaching into her seating area.
About one hour before landing, the aisle passenger looked to his right and saw Aksal with his body against the victim’s, his arms around her back and beneath a sweater draped over her. The victim awoke to find Aksal’s hands inside her shirt and shorts and struggled out of his grasp. The aisle passenger observed her jolting awake and he and the victim both gathered their belongings and headed to the back of the plane to report what happened to the flight attendants.
Aksal was detained upon arrival in Newark and arrested by FBI agents.
In addition to the prison term, Judge Linares sentenced Aksal to serve three years of supervised release and ordered him to pay restitution to the victim for her medical expenses. Aksal is required to register as a sex offender.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the Port Authority Police Department, under the direction of Superintendent Michael A. Fedorko, with the investigation.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman and Robert Frazer of the U.S. Attorney’s Office Criminal Division in Newark.
The federal government has exclusive jurisdiction over all sexual abuse cases that occur in American airplanes, as such events are outside the jurisdiction of any state.14-035
Defense counsel: Robert Degroot Esq., Newark
Camden County, N.J., Man Sentenced to Seven Years in Prison for Illegal Weapons PossessionRead the Press Release
CAMDEN, N.J. – A Camden County, N.J., man was sentenced today to 84 months in prison for illegally possessing firearms, including assault rifles and a stolen handgun, which he sold to a confidential informant, U.S. Attorney Paul J. Fishman announced.
Ashley C. Love, 39, of Lindenwold, N.J., previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of possessing firearms and ammunition while being a previously convicted felon.
According to documents filed in this case and statements made in court:
Between October 2011 and November 2011, Love sold a confidential informant five firearms – three assault rifles (one of them, with compatible ammunition), a stolen 9mm Ruger handgun (with compatible ammunition), and a shotgun. All of the weapons and ammunition are now in the custody of law enforcement.
In addition to the prison term, Judge Bumb sentenced Love to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Acting Special Agent in Charge George Belsky, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office in Camden.
14-034
Defense counsel: Lisa Lewis Esq., PhiladelphiaStrength and Conditioning Coach Admits Role in Insurance Billing SchemeRead the Press Release
TRENTON, N.J. – A partner in Source Institute for Human Performance, a Princeton, N.J., provider of exercise coaching services to independent high schools, pleaded guilty today to defrauding insurance companies by falsely claiming that Source gave clients physical therapy, U.S. Attorney Paul J. Fishman announced.
David Nogaki, 42, of North Brunswick, N.J., pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Nogaki was a partner in Source Institute for Human Performance, which provided exercise, strength, conditioning and performance coaching services to students, faculty and staff at certain independent high schools in New Jersey. Nogaki and his conspirators at Source developed a scheme to enrich themselves by billing their personal training sessions as physical therapy services covered by health insurance – even though no one at Source was a physical therapist.
Nogaki and his conspirators would ask clients for their health insurance information and then lie to the insurance companies, indicating Source provided physical therapy. Some clients came to Source with a doctor’s prescription for physical therapy, and Source would treat those individuals under the prescription and then bill insurers. For other clients who had never seen a doctor, Nogaki made up his own diagnosis and then billed insurers as if he had provided physical therapy.
Nogaki admitted submitting claims to AmeriHealth, Aetna, Horizon Blue Cross Blue Shield of New Jersey and United Healthcare. Source received over $200,000 in fraudulent insurance payments from the scheme.
Nogaki faces a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss caused by his offense. Sentencing is currently scheduled for May 5, 2014.
U.S. Attorney Fishman credited agents of the FBI’s Trenton Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit.
14-032Defense counsel: Roberto Cuan Esq., Teaneck, N.J.
Nogaki Information