District of New Jersey
Press releases recorded for this federal judicial district.
Two New York Men Sentenced to Lengthy Prison Sentences for Committing Three Gunpoint Robberies and Conspiring to Commit Additional RobberiesRead the Press Release
NEWARK, N.J. – Two Brooklyn, New York, men were sentenced to lengthy prison terms today for their roles in three gunpoint robberies of check cashing locations in different parts of New Jersey in 2021 and 2022, as well as conspiring to commit robberies in New Jersey, New York, and Pennsylvania, U.S. Attorney Philip R. Sellinger announced.
Ramel Harris, a/k/a Ramel Harrison, 43, of Brooklyn, and Neville Brown, 40, of Brooklyn, were both sentenced today by U.S. District Judge Claire C. Cecchi in Newark federal court to 186 months in prison. Both men previously pleaded guilty before Judge Cecchi to three counts of an Indictment charging them with Hobbs Act conspiracy, Hobbs Act robbery, and using, carrying, and brandishing a firearm during and in relation to a crime of violence, namely the Hobbs Act robbery.
According to documents filed in this case and statements made in court:
On several dates between January 2021 and January 2022, two individuals, later identified as Harris and Brown, attempted to rob a check cashing location in Nanuet, New York, and thereafter successfully robbed three check cashing locations in Parsippany, New Jersey, Old Bridge, New Jersey, and Hackettstown, New Jersey while brandishing a firearm and using zip ties to restrain female employees at each location. During those robberies, Harris and Brown stole approximately $563,566.35.
During the subsequent investigation, law enforcement learned that the conspirators surveilled check cashing locations in the following locations: Mount Kisco, New York, Allentown, Pennsylvania and West Chester, Pennsylvania. Law enforcement obtained video surveillance footage that ultimately linked Harris and Brown to the robberies. Furthermore, historical cell phone records indicate that Harris’s and Brown’s cellular telephones were in or around the locations of the various robberies around the times that they were committed.
In addition to the prison term, Judge Cecchi sentenced Harris and Brown to five years of supervised release.U.S. Attorney Sellinger credited members of the FBI’s New Jersey field office, under the direction of Acting Special Agent in Charge Nelson I. Delgado; members of the FBI’s New York field office, under the leadership of Assistant Director In Charge James E. Dennehy; members of the FBI’s Philadelphia field office, under the leadership of Special Agent in Charge Wayne A. Jacobs; members of the Hackettstown Police Department, under the direction of Police Chief Aaron Perkins; members of the Old Bridge Police Department, under the leadership of Chief of Police Thomas J. Montagna; members of the Parsippany-Troy Hills Police Department, under the leadership of Police Chief Richard Pantina; members of the Morris County Prosecutor’s Office, under the leadership of Prosecutor Robert J. Carroll; members of the Clarkstown Police Department, under the leadership of Police Chief Jeffrey Wanamaker; members of the Westchester County (New York) Department of Public Safety; and members of the Borough of West Chester (Pennsylvania) Police Department, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the General Crimes Unit in Newark.
harrisbrown.indictment.pdf
Brothers Re-Sentenced to 360 Months for Two Armed Bank Robberies and Conspiracy to Commit Armed RobberyRead the Press Release
NEWARK, N.J. – Two brothers were re-sentenced to 360 months for committing two armed bank robberies and conspiring to commit a third armed robbery of an armored car in 1997-1998, U.S. Attorney Philip R. Sellinger announced.
Charles Rodriguez, 58, of New Jersey and Joseph Rodriguez, 57, of New Jersey were originally convicted by a jury after an approximately six week trial in 1999 for conspiracy to commit two bank robberies and attempted robbery of an armored car, the two bank robberies, using firearms during the bank robberies, carjacking, an attempted robbery of an armored car, using firearms in relation to the attempted robbery of an armored car, and being felons in possession of firearms. Charles and Joseph Rodriguez were originally sentenced on March 30, 2000 to life sentences.
Based on a challenge to the sentence under 18 U.S.C. § 2255, Judge Claire C. Cecchi dismissed one of the counts, Count Eight, for using firearms in relation to the attempted robbery of an armored car, due to intervening changes in the law. Therefore, Charles and Joseph Rodriguez were re-sentenced on the remaining counts.
On July 19, 1997, four armed men—including Charles and Joseph Rodriguez—wearing masks and body armor and heavily armed with rifles and a handgun robbed the Corestates Bank branch in Woodlynne, New Jersey, terrorizing numerous civilian victims. The robbers hit multiple victims with the stock of their rifles, pointed firearms at victims’ faces, and threatened the kill them. After completing the robbery, the robbers got into a stolen vehicle and drove to an empty parking lot. There, they abandoned the vehicle, set it on fire, and switched to a second stolen vehicle. The robbers stole $64,039 from the bank.
On May 23, 1998, three armed men—including Charles and Joseph Rodriguez— wearing masks and tactical gear robbed the Commerce Bank branch in Moorestown, New Jersey. Arriving shortly before the bank opened for business, the robbers shot out the plate glass entrance doors, pointed their firearms at victims, and threatened to shoot them. The robbers also fired three shots into the ceiling of the bank and six shots at a plexiglass door in front of a vault. After the robbery, the robbers first attempted to flee on a stolen vehicle. When the stolen vehicle stalled, they demanded the car keys of a bank employee at gun point. They stole the employee’s car and drove a short distance before switching to another vehicle. The robbers stole $15,373 from the bank.
On September 1, 1998, Charles and Joseph Rodriguez, along with a co-defendant, Jose Soto, attempted to rob an armored car at the Walt Whitman rest stop on the New Jersey Turnpike in Cherry Hill. When the defendants arrived at the rest stop, they were dressed in tactical gear, including bullet proof vests, and were carrying numerous firearms, including two machine guns. In total, they brought approximately 1,000 rounds of ammunition to the intended robbery. Due to law enforcement intervention, Charles and Joseph Rodriguez were prevented from committing the intended robbery.
On November 18, 2022, Judge Cecchi sentenced Jose Soto to time served—approximately 289 months— for charges connected to the attempted robbery of an armored car. He was acquitted of the two bank robberies.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the assistance leading to the re- sentencing.The government is represented by Assistant U.S. Attorneys Clara Kim of the Special Prosecutions Division in Newark and Norman Gross of the Camden Office.
rodriguezetal.sindictment.pdf
Prominent Leader of Black Axe Extradited to United States for Conspiring to Engage in Internet Scams and Money LaunderingRead the Press Release
TRENTON, N.J. – A leader of the Cape Town Zone of the Neo Black Movement of Africa, also known as “Black Axe,” who was extradited from South Africa to the United States on wire fraud and money laundering charges, had his initial appearance today in Trenton federal court, U.S. Attorney Philip R. Sellinger announced today.
Enorense Izevbigie, aka “Richy Izevbigie,” aka “Lord Samuel S Nujoma,” 49, originally from Nigeria, is charged in a superseding indictment with two counts of wire fraud, wire fraud conspiracy, and money laundering conspiracy, spanning from 2011 to 2021. He had his initial appearance today, before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and was detained pending trial.
According to documents filed in this case and statements made in court:
Izevbigie was a leader of the Neo Black Movement of Africa, also known as “Black Axe,” an organization headquartered in Benin City, Nigeria that operates in various countries. Black Axe is organized into regional chapters known as “zones,” and Izevbigie was a leader within the Cape Town, South Africa, Zone.
From at least 2011 through 2021, Izevbigie and other conspirators worked together from Cape Town to engage in widespread internet fraud involving romance scams and advance fee schemes. Many of these fraudulent narratives involved claims that an individual was traveling to South Africa for work and needed money or other items of value following a series of unfortunate and unforeseen events, often involving a construction site or problems with a crane. The conspirators used social media websites, online dating websites, and voice over internet protocol phone numbers to find and talk with victims in the United States, while using a number of aliases.
The conspirators’ romance scam victims believed they were in romantic relationships with the person using the alias and, when requested, the victims sent money and items of value overseas, including to South Africa. Sometimes, when victims expressed hesitation in sending money, the conspirators used manipulative tactics to coerce the payments, including by threatening to distribute personally sensitive photographs of the victim.
The conspirators used the bank accounts of victims and individuals with United States-based financial accounts to transfer the money to South Africa. On certain occasions, the conspirators convinced victims to open financial accounts in the United States that the conspirators would then be permitted to use themselves. In addition to laundering money derived from romance scams and advance fee schemes, the conspirators also worked to launder money from business email compromises. In addition to their aliases, the conspirators used business entities to conceal and disguise the illegal nature of the funds.
The wire fraud conspiracy and wire fraud charges each carry a maximum term of 20 years in prison and a maximum fine of $250,000. The money laundering conspiracy charge carries a maximum term of 20 years in prison and a maximum fine of $500,000 or twice the value of the property involved in the transaction, whichever is greatest.
Izevbigie, along with six named co-defendants, were arrested in South Africa in 2021. The six named co-defendants are awaiting extradition to the United States.
Anyone who believes they may be a victim may visit https://www.justice.gov/usao-nj/blackaxe for information about the case, including a questionnaire for victims to fill out and submit.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; and the FBI Legal Attaché Office at the United States Embassy in Pretoria, South Africa, under the direction of Legal Attaché John Connell; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Aaron Hatley in Newark, Resident Agent in Charge Todd Bratz in the Pretoria Resident Office, and Special Agent in Charge William Mancino of the Criminal Investigative Division, with the investigation leading to the charges.
U.S. Attorney Sellinger also thanked officials in South Africa for their assistance including the South African Directorate of Priority Crime Investigations (HAWKS), the South African Police Service, the South African National Prosecuting Authority & Asset Forfeiture Unit, the Department of Justice and Constitutional Development for the Republic of South Africa, and INTERPOL for their assistance in this case. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Izevbigie to the United States.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Priority Transnational Organized Crime (PTOC) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Richard G. Shephard of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
osagiede.indictment.pdfNewark Businessman Admits Bribing Former Newark Deputy Mayor and Director of Newark Department of Economic and Housing DevelopmentRead the Press Release
NEWARK, N.J. – A Newark business owner admitted bribing a former city official in exchange for that official’s assistance in acquiring and redeveloping Newark-owned properties, U.S. Attorney Philip R. Sellinger announced.
Frank Valvano, Jr., 57, of Florham Park, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to two counts of an indictment charging him with honest services fraud and bribery.
“As he admitted in court, Frank Valvano, Jr. provided cash, jewelry, and other benefits to a public official in exchange for the official’s use of his influence to further Valvano’s private business interests, defrauding the people of Newark of their right to the official’s honest services. He corrupted the public official’s independent judgment and violated the public trust for his own financial gain. Our office will continue to work with our law enforcement partners to make sure that the people of New Jersey are protected from public officials whose greed overrides their sworn duty to serve the people and from the individuals who bribe those officials.”
U.S. Attorney Philip R. Sellinger
According to documents filed in the case and statements made in court:
Valvano admitted bribing Carmelo Garcia – who served as deputy mayor and director of the Newark Department of Economic and Housing Development (DEHD) and executive vice president and chief real estate officer of the Newark Community Economic Development Corporation (NCEDC) – in exchange for Garcia’s assistance with the acquisition and redevelopment of city-owned property.
From 2017 through April 2019, Valvano, Irwin Sablosky, and others provided significant monetary payments and other benefits to Garcia while he was serving as a high-level Newark official, and prior to that, as an executive officer of the NCEDC (now known as Invest Newark), in exchange for Garcia’s use of his official positions and influence within the city of Newark and the NCEDC to advance real estate development matters of interest to Sablosky and Valvano. These matters included obtaining preliminary designation letters for Sablosky and Valvano and securing Newark-approved redevelopment agreements (RDAs) that allowed them to purchase and acquire various Newark-owned properties for redevelopment, and to ensure that Garcia did not use his influence and authority to act against their interests. In addition to cash, Valvano and Sablosky also gifted Garcia jewelry, including multiple high-end watches and chains, from their pawnbroker and jewelry business. They also paid for Garcia’s expenses on a trip to Miami, Florida.
Phone records and text messages obtained by law enforcement show extensive communication between Garcia, Valvano, Sablosky, and others throughout this period of time, including text messages in which Garcia arranged to personally collect cash provided by Valvano and Sablosky. In one instance, in June 2018, Valvano and Sablosky, through an intermediary, supplied Garcia, then the city’s acting deputy mayor and director of the city’s DEHD, $25,000 in cash as part of the stream of bribes provided to Garcia.
The Travel Act charge in Count 19 of the indictment carries a maximum potential penalty of 5 years in prison. The bribery charge in Count 26 carries a maximum penalty of 10 years in prison. All charges are punishable by a fine of $250,000 or twice the amount of the pecuniary gain from the offense. Sentencing is scheduled for April 16, 2025.
Valvano originally was charged by indictment in October 2021 with Sablosky, 64, of Springfield, New Jersey, and Garcia, 49, of Hoboken, New Jersey. Garcia previously pleaded guilty to conspiracy to defraud the city of Newark and the NCEDC of Garcia’s honest services, honest services wire fraud, and receiving bribes in connection with the business of a federally funded local government and organization and is awaiting sentencing. Sablosky previously pleaded guilty to conspiracy to honest services wire fraud and bribery and is awaiting sentencing.
U.S. Attorney Sellinger credited special agents of the FBI’s Newark Field Office, under the direction of Acting Special Agent in Charge Nelson I. Delgado; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer I. Piovesan, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Vicky Vazquez, with the investigation leading to today’s plea.
The government is represented by Elaine K. Lou, Deputy Chief of the Criminal Division, and Katherine J. Calle and Edeli Rivera of the U.S. Attorney’s Office’s Special Prosecutions Division.
valvanoetal.indictment.pdf
New York-Based Businessman Admits $5.3 Million Health Care Fraud and Kickback ConspiracyRead the Press Release
NEWARK, N.J. – A New York-based businessman admitted his role in a health care fraud and illegal kickback conspiracy, Attorney for the United States Vikas Khanna announced today.
Mansinh Chaudhari, aka “Monsi Koova,” 55, of Illinois, pleaded guilty today before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging him with conspiracy to commit health care fraud and conspiracy to violate the Federal Anti-Kickback statute.
According to documents filed in the case and statements made in court:
Chaudhari owned, operated, and had a financial interest in a New York-based consulting company that purchased information associated with prospective Medicare beneficiaries amounting to a guarantee that Medicare would reimburse the purchase of COVID-19 tests. Chaudhari then sold beneficiary information to medical providers in New Jersey, Tennessee, Colorado, Connecticut, Utah, and elsewhere, so the medical providers could use that information to submit or cause the submission to Medicare of claims for up to eight OTC COVID-19 tests per month that beneficiaries did not need and had not ordered.
Chaudhari and the medical providers attempted to conceal their arrangements by entering into sham agreements. He also issued fraudulent invoices to the medical providers that solicited payment for marketing, consulting, or fulfillment. In total, Chaudhari and his conspirators caused a loss to Medicare of more than $5.3 million.
Conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and conspiracy to violate the Federal Anti-Kickback Statute is punishable by a maximum of five years in prison. Each count is also punishable by a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for April 29, 2025.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division under the supervision of the Opioid Abuse Prevention and Enforcement Unit.
24-451
Defense counsel: Paul D’Emilia Esq., New York
chaudhari.information.pdfFormer Hoboken Director of Health and Human Services Pleads Guilty to Embezzlement, Filing False Tax ReturnRead the Press Release
NEWARK, N.J. – Pantaleo “Leo” Pellegrini, the former Hoboken Director of Health and Human Services and Director of the Department of Environmental Services, pleaded guilty today before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging him with embezzling money from the City of Hoboken and filing a false tax return.
According to documents filed in this case and statements made in court:
While working for the City of Hoboken, Pellegrini embezzled money from the City of Hoboken by diverting payments intended for the City of Hoboken to bank accounts he controlled. Pellegrini also embezzled money from the City of Hoboken by submitting invoices for his personal business expenses, which City of Hoboken unknowingly paid. Additionally, Pellegrini did not report the embezzled money on his personal tax returns, and thereby made and subscribed a false personal tax return.
Pellegrini had oversight over the City of Hoboken’s Division of Cultural Affairs’ Division of Health; Division of Parks, Recreation & Public Works; Division of Rent Leveling and Stabilization; and Division of Senior Services. He therefore had oversight responsibilities related to certain public recreational facilities, including soccer fields that could be reserved by both Hoboken and non-Hoboken residents for a fee paid to the City of Hoboken. Through this arrangement, the City of Hoboken Department of Parks, Recreation & Public Works sponsored a non-profit recreation soccer league open to all Hoboken residents aged 5 to 13 (the “Youth Soccer League”), which was funded by the City of Hoboken and participant fees. Also during the charged time period, an adult soccer league open to Hoboken and non-Hoboken residents (the “Adult Soccer League”) was in operation, which was funded from participant fees.
Pellegrini developed a scheme to divert the Adult Soccer League’s participant fee payments intended for the City of Hoboken to a business account on which he was a signatory (the “Pellegrini Soccer Business Account”) and which was registered to a soccer-related entity linked to him (the “Pellegrini Soccer Business Entity”). At various times, Pellegrini told an individual who operated the Adult Soccer League–“Individual-1”—to sign checks for the rental of public recreation facilities but leave the payee blank for Pellegrini to fill in later. Pellegrini later filled in the name of the Pellegrini Soccer Business Entity and deposited the checks into the Pellegrini Soccer Business Account, without the knowledge of Individual-1.
During the relevant time period, Pellegrini was also the Owner and President of a private travel soccer club that was open to Hoboken residents and non-Hoboken residents (the “Pellegrini Private Soccer Club”). Pellegrini also submitted or caused the submission to the City of Hoboken invoices associated with the Pellegrini Private Soccer Club, which Pellegrini falsely or fraudulently represented to the City of Hoboken as invoices eligible for reimbursement by the City of Hoboken. As a result, the City of Hoboken—at Pellegrini’s direction—unknowingly paid tens of thousands of dollars to the Pellegrini Private Soccer Club’s vendors for the Pellegrini Private Soccer Club’s expenses, and also unknowingly paid tens of thousands of dollars directly to Pellegrini through the Pellegrini Private Soccer Club.
Pellegrini intentionally did not disclose and report the income from the above-described embezzlement scheme, thereby causing his tax returns to understate a substantial amount of the income he received.
The count of embezzlement carries a maximum penalty of 10 years in prison and a maximum fine of $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. The count of filing a false tax return carries a maximum penalty of three years in prison and a maximum fine of $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. Sentencing is scheduled for April 29, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Matthew Specht of the Special Prosecutions Division.
pellegrini.information.pdf
Three Nigerian Men Indicted in Multi-Million Dollar Internet-Enabled Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – The United States Attorney’s Office for the District of New Jersey unsealed charges today against three Nigerian nationals for their roles in a transnational internet-enabled investment fraud scheme, U.S. Attorney Philip R. Sellinger announced.
Augustine Chibuzo Onyeachonam, 30, Stanley Asiegbu, a/k/a “Stanislaus, Asiegbu”, 37, and Chukwuebuka Nweke-Eze, 29, all of the Federal Republic of Nigeria, were each charged by Indictment with one count of wire fraud conspiracy (Count One), two counts of wire fraud (Counts Two and Three), one count of securities fraud conspiracy (Count Four), one count of identity theft conspiracy (Count Five), and four counts of aggravated identity theft (Counts Six through Nine).
These defendants not only defrauded dozens of victims out of millions of dollars of their hard-earned money, but they also impersonated licensed FINRA representatives, spoofed their websites, and misappropriated the seal of the SEC to carry out their fraud,” U.S. Attorney Sellinger said. “My office will continue to work with our law enforcement partners to pursue these kinds of scammers no matter where in the world they are and seek justice for their victims.”
According to the Indictment:
From at least as early as in or around 2018 through the present, Onyeachonam, Asiegbu, Nweke-Eze, and others (the “Conspirators”) orchestrated an internet-enabled fraud scheme that targeted victims throughout the United States, including in the District of New Jersey. As part of the fraud scheme, the Conspirators impersonated dozens of individuals registered as broker-dealers with the Financial Industry Regulatory Authority (“FINRA”) and used those stolen identities to solicit investments from members of the public through fraudulent public-facing websites.
The fraudulent, or “spoofed”, websites were registered in the names of the impersonated victim brokers and often included genuine credentials, such as CRD numbers, associated with the victim brokers. At times, the spoofed websites also included links to: (1) the FINRA website associated with the victim brokers that allowed any member of the public to view the victim brokers’ employment history, certifications, licenses, or prior violations; and (2) fake social media accounts created by the Conspirators in the names of the victim brokers. At times, the spoofed websites also displayed, without authorization, the seal of the U.S. Securities and Exchange Commission (“SEC”). The Conspirators would further use the SEC seal in email communications with victims.
The Conspirators lured victims of the fraud scheme to the spoofed websites by touting the services of the victim brokers in the comment sections of online articles or videos discussing financial and cryptocurrency investment-related topics. At times, the Conspirators would include links to one or more of the spoofed websites.
When a fraud victim visited a spoofed website, he or she was directed to communicate with an individual they believed to be a legitimate broker-dealer by contacting a telephone number or email address listed on the spoofed website. The Conspirators, posing as the victim brokers, then communicated with fraud victims and, among other things: (1) told fraud victims that their money would be invested in various stocks and cryptocurrencies; and (2) guaranteed fraud victims returns on their investments of up to 25%. The Conspirators used voice-changing software applications to impersonate certain female victim broker dealers when communicating by telephone.
When a fraud victim decided to invest money with one of the Conspirators posing as a victim broker, the fraud victim was told to: (1) open an account at a particular cryptocurrency trading platform; (2) purchase cryptocurrency assets through that platform; and (3) send the cryptocurrency assets to a particular cryptocurrency wallet address for the purpose of investment. In reality, the funds transferred by the fraud victims to the Conspirators were not invested but were stolen by the Conspirators. At times, fraud victims’ funds were stolen directly from the account(s) opened by them at a particular cryptocurrency exchange.
As part of the fraud scheme, the Conspirators further created fraudulent online investment platforms that falsely displayed monthly returns associated with the fraud victims’ investments. A fraud victim visiting one of the fraudulent investment platforms typically would observe substantial returns on their investment. At times, when a fraud victim requested to withdraw funds from their account, they would be asked by the Conspirators to pay additional money in fees or taxes to withdraw the funds. After paying these fees, the funds would still not be released.
In total, the Conspirators caused dozens of fraud victims to transmit funds that they believed to be for investments in the aggregate amount of at least approximately $3 million.
The wire fraud conspiracy charged in Count One carries a maximum potential penalty of 20 years in prison and a $250,000 fine; the wire fraud charged in Counts Two and Three of the Indictment each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, the conspiracy to commit securities fraud charged in Count Four of the Indictment carries a maximum potential penalty of 20 years in prison and a $250,000 fine; the conspiracy to commit identity theft charged in Count Five of the Indictment carries a maximum potential penalty of 15 years in prison and a $250,000 fine; and the aggravated identity theft counts charged in each carry a mandatory minimum sentence of two years and a $250,000 fine.
The U.S. Securities and Exchange Commission today filed a civil complaint against all three defendants based on the same conduct.
U.S. Attorney Sellinger credited special agents of the FBI – Newark Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
24-450
onyeachonam.indictment.pdfThree New Jersey Men Convicted for Racketeering Conspiracy and for Their Roles in Three Gang-Related MurdersRead the Press Release
NEWARK, N.J. – A Newark jury convicted three New Jersey men for their roles in a violent racketeering conspiracy, three murders, and related firearms offenses, U.S. Attorney Philip R. Sellinger announced.
Myron Williams, aka “Money,” aka “Tunchi,” 31, of Newark, Khalil Kelley, aka “Billski,” 25, and Roger Pickett, aka “Zy Gz,” 24, both of Jersey City, were convicted in connection with a multi-count Indictment predicated upon their respective roles in the racketeering conspiracy. Williams was convicted of racketeering conspiracy, murder in aid of racketeering, discharging a firearm during and in relation to a crime of violence, causing death through the use of a firearm, and possession with intent to distribute controlled substances. Kelley was convicted of racketeering conspiracy, murder in aid of racketeering, discharging a firearm during and in relation to a crime of violence, and causing death through the use of a firearm. Pickett was convicted of racketeering conspiracy, three counts of murder in aid of racketeering, three counts of discharging a firearm during and in relation to a crime of violence, three counts of causing death through the use of a firearm, and Hobbs Act robbery.
“These three Marion street gang members brazenly committed three murders in the name of their gang. Two rival gang members were lured to their deaths through social media accounts that gang members used to impersonate the victims’ friends, and a third individual was killed during the course of a robbery committed against him. The senseless killing of these three men caused incredible danger to the community. Myron Williams, Khalil Kelley, and Roger Pickett now face mandatory life sentences for their crimes, and the District of New Jersey is safer as a result. As this case demonstrates, my office is committed to working closely with the Hudson County Prosecutor’s Office and the Jersey City Police Department, alongside our federal law enforcement partners, to protect the community. This commitment to prosecuting violent crime ensures that serious consequences will follow for individuals who commit violence and have no regard for human life.”
U.S. Attorney Philip R. Sellinger
“Today’s guilty verdicts bring accountability to violent criminals whose actions disregard criminal law, human life, and public safety. ATF remains steadfast in identifying and apprehending those who are terrorizing our neighborhoods with gang violence and disorder. We will continue to work alongside our law enforcement partners and secure the safety of our communities.”
ATF SAC L.C. Cheeks, Jr.
“This verdict is a testament of our commitment in law enforcement to ensure that justice is always served. The defendants in this matter intentionally disregarded human life and instilled fear in neighborhoods across Jersey City. I thank our local, state, and federal partners who continuously work collaboratively with the Hudson County Prosecutor’s Office to ensure residents feel safe in their own communities.”
Hudson County Prosecutor Esther Suarez
According to documents filed in this case and statements made in court:
Williams, Kelley, and Pickett are all members and associates of the neighborhood street gang associated with the Marion Gardens Housing Complex. Since 2013, they have committed numerous acts of violence, including three separate murders, on March 29, 2021, Nov. 20, 2021, and Nov. 1, 2022.
On March 29, 2021, Kelley and other gang members lured a rival gang member outside by sending him Instagram messages pretending to be the victim’s fellow gang member. When the victim opened the door to his residence, Kelley and another gang member brandished firearms, and the victim was shot multiple times in the chest, killing him. Pickett and Williams then picked up Kelley and other gang members after they abandoned the murder vehicle in Newark.
On Nov. 20, 2021, Williams, Pickett, and another gang member lured a rival gang member outside by sending him Instagram messages pretending to be the second victim’s fellow gang member. Williams and another gang member shot the victim when he opened the door to his residence.
On Nov. 1, 2022, a gang member facilitated the murder of the third victim by coordinating a narcotics transaction with the victim and an associate of the victim. When the victim and his associate arrived at the Marion Gardens Housing Complex to complete the narcotics transaction, they were robbed of their narcotics supply. During the robbery, Pickett and another gang member held the victim and his associate at gunpoint. After a struggle ensued, Pickett shot and killed the victim while his associate fled. Pickett then fled the Marion Gardens Housing Complex in his vehicle.
Investigators observed and documented hundreds of narcotics transactions in and around the Marion Gardens Housing Complex during the monthslong investigation. In addition, when Williams was arrested on March 17, 2023, he possessed controlled substances packaged for distribution.
Eight other individuals originally were indicted with Williams, Kelley, and Pickett. All have since pleaded guilty for their roles in the racketeering enterprise.
The racketeering conspiracy count of which all three were convicted carries a maximum potential penalty of life in prison, and a $10 million fine. Each was also convicted of murder in aid of racketeering, which carries a mandatory life sentence, discharging a firearm during and in relation to a crime of violence, which carries a mandatory minimum penalty of ten years in prison and a maximum potential penalty of life in prison, and causing death through the use of a firearm, which carries a maximum potential penalty of life in prison. Pickett was also convicted of Hobbs Act robbery, which carries a maximum potential penalty of 20 years in prison, and Williams was convicted of possession with intent to distribute controlled substances, which also carries a maximum potential penalty of 20 years in prison. Sentencing is scheduled for April 22, 2025.
U.S. Attorney Sellinger credited investigators of the Gang Intelligence Unit and the Homicide Unit of the Major Case Division of Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez and Chief of Detectives James A. Parker, and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge L.C. Cheeks Jr., and investigators of the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to the convictions. He also thanked the Federal Bureau of Investigation (FBI), under the direction of Acting Special Agent in Charge Nelson I. Delgado, and the U.S. Marshals, under the direction of U.S. Marshal Juan Mattos, for their assistance.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Department of Homeland Security – Homeland Security Investigations (“HSI"), the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Desiree Grace, Chief of the Criminal Division, and Assistant U.S. Attorneys John Maloy and Javon Henry, of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
williamsetal.2ndsupindictment.pdf
TD Bank Insider Arrested and Charged with Facilitating Money LaunderingRead the Press Release
A former Florida-based employee of TD Bank N.A. was arrested and charged by criminal complaint yesterday for facilitating money laundering to Colombia through the financial institution.
According to court documents, Leonardo Ayala, 24, worked at a TD Bank store in Doral, Florida, between February and November 2023. Starting in June 2023, Ayala allegedly exploited his position as a bank employee to facilitate money laundering. As alleged, after another TD Bank employee opened accounts in the names of shell companies with nominee owners, Ayala assisted the money laundering network by issuing dozens of debit cards for the accounts in exchange for bribes. Those accounts were then allegedly used to launder millions of dollars in narcotics proceeds through cash withdrawals at ATMs in Colombia.
Ayala made his initial appearance yesterday in Miami federal court, and all future court proceedings will be in New Jersey. He is charged with one count of conspiracy to commit money laundering. If convicted, he faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Philip R. Sellinger for the District of New Jersey; Special Agent in Charge Jenifer L. Piovesan of the IRS Criminal Investigation (IRS-CI) Newark Field Office; Special Agent in Charge Denise Foster of the Drug Enforcement Administration (DEA) Caribbean Division; and Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) New York Region made the announcement.
The IRS-CI Newark Field Office, DEA San Juan Field Office, and FDIC-OIG New York Field Office are investigating the case. The U.S. Attorney’s Office for the Southern District of Florida, IRS-CI Miami Field Office, FDIC-OIG South Florida Field Office, DEA Miami Field Office, and Morristown Police Department provided valuable assistance in the investigation.
Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Bank Integrity Unit of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney Marko Pesce for the District of New Jersey are prosecuting the case.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
TD Bank Insider Arrested and Charged with Facilitating Money LaunderingRead the Press Release
NEWARK, N.J. – A former Florida-based employee of TD Bank, N.A. was arrested yesterday for facilitating money laundering to Colombia through the financial institution, U.S. Attorney Philip R. Sellinger announced.
Leonardo Ayala, 24, of Homestead, Florida, is charged by complaint with one count of money laundering conspiracy. Ayala had his initial appearance yesterday before U.S. Magistrate Judge Lisette M. Reid in Miami federal court and was released on location monitoring and a $100,000 bond.
According to documents filed in this case and statements made in court:
Ayala worked at a TD Bank store in Doral, Florida, between February and November 2023. Starting in June 2023, Ayala exploited his position as a bank employee to facilitate money laundering. After another TD Bank employee opened accounts in the names of shell companies with nominee owners, Ayala assisted the money laundering network by issuing dozens of debit cards for the accounts in exchange for bribes. Those accounts were then used to launder narcotics proceeds through cash withdrawals at ATMs in Colombia. The investigation has revealed that millions of dollars were laundered to Colombia through accounts Ayala serviced.
The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater.
U.S. Attorney Sellinger credited special agents and task force officers of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; special agents and task force officers of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Denise Foster in San Juan, Puerto Rico; and special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, New York Division, under the direction of Special Agent in Charge Patricia Tarasca with the investigation leading to the charges. He also thanked the U.S. Attorney’s Office for the Southern District of Florida; Internal Revenue Service – Criminal Investigation in Miami, Florida; Federal Deposit Insurance Corporation – Office of Inspector General, South Florida Division; U.S. Drug Enforcement Administration in Miami, Florida; and Morristown Police Department for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Marko Pesce of the Economic Crimes Unit in Newark and Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Justice Department’s Money Laundering and Asset Recovery Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
ayala.complaint.pdf
Mercer County Man Charged with Multiple Armed Robberies of Business Owners and Causing the Death of One Victim Through Use of A FirearmRead the Press Release
TRENTON, N.J. – A Mercer County man made an initial appearance on charges of three armed robberies of Trenton-area businesses, including one during which the man caused the death of a victim through use of a firearm, U.S. Attorney Philip R. Sellinger announced.
Paul X. McNeil, 38, of Trenton, was charged by complaint with one count of conspiracy to commit Hobbs Act robbery, three counts of Hobbs Act robbery, one count of murder during and in relation to a crime of violence, one count of discharging a firearm during and in relation to a crime of violence, and two counts of brandishing a firearm during and in relation to a crime of violence. McNeil made his initial appearance before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.
According to documents filed in this case and statements made in court:
McNeil targeted certain local businesses and/or business owners based upon the victims’ access to the businesses’ cash proceeds. On September 30, 2022, as an employee of an auto recycling shop in Ewing, New Jersey, was in the process of collecting the shop’s cash proceeds, McNeil and a coconspirator entered the shop. McNeil pointed a firearm at the employee before he and the coconspirator took from the employee approximately $150,000 of the shop’s cash proceeds and the employee’s lawfully registered firearm. Later that day, McNeil purchased a new car, paying $9,500 in a down payment, comprised of ninety-five $100 bills.
On August 10, 2023, McNeil followed the owner of a Trenton cannabis shop from the shop to the owner’s residence in Lawrence Township. Moments after the cannabis shop owner entered the residence, McNeil followed the owner into the residence and robbed the owner of the cannabis shop’s cash proceeds which the owner had carried into the residence. As overheard by the cannabis owner’s spouse, who was in the residence, the owner stated to McNeil, “No, no, no … please, here, you can have it,” moments before McNeil shot and killed the owner with a firearm. In addition to taking from the owner the cannabis shop’s cash proceeds, McNeil also took from the owner jewelry the owner was wearing at the time of the robbery. Photographs recovered from McNeil’s cellphone depict McNeil wearing the owner’s jewelry, which was recovered later from McNeil’s vehicle.
On September 23, 2023, McNeil entered the Ewing residence of an owner of a Trenton-area house-flipping business. Upon entering the residence, McNeil encountered three victims, including two minors. The owner of the business was not in the residence at the time. McNeil pointed a handgun at the three victims and demanded money. McNeil then bound the victims’ hands behind their backs with zip ties and forced them at gunpoint into the basement, while he searched the residence. McNeil took approximately $4,500 in cash proceeds from the house- flipping business as well as some personal items belonging to the business owner and the three victims. Law enforcement later recovered from McNeil’s residence approximately $4,000 in cash and some of the personal items belonging to the business’s owner and the three victims.
“These charges allege that the defendant targeted several local business owners for robbery and murdered one of them. The U.S. Attorney’s Office, together with its federal and local law enforcement partners, will spare no effort to investigate and prosecute violent offenders who target the businesses and residents of New Jersey.”
U.S. Attorney Philip R. Sellinger
"We allege McNeil went into a Ewing business, held it up at gun point, and while the owner was attempting to hand over money McNeil shot and killed him. We also have evidence showing he also took part in several other brutal attacks and robberies. Violent offenders should take this investigation as a warning that the FBI Newark and our law enforcement partners are pursuing criminals who believe they can act with impunity and not face justice,” Acting SAC Nelson I. Delgado said.
The count of murder during and in relation to a crime of violence is punishable by death, or a term of imprisonment up to life. The counts of Hobbs Act robbery and conspiracy to commit Hobbs Act robbery each carry a maximum potential penalty of 20 years in prison. The brandishing and discharging of a firearm during and in relation to a crime of violence counts each carry a maximum potential penalty of life in prison, where the brandishing count has a mandatory minimum sentence of 7 years in prison and the discharging count has a mandatory minimum sentence of 10 year in prison, which sentences must run consecutively to any other term of imprisonment imposed. Each count also carries a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents and task force officers of the Federal Bureau of Investigation, under the direction of Acting SAC Nelson I. Delgado, members of the Mercer County Prosecutor’s Office Homicide Task Force, under the direction of Acting Mercer County Prosecutor Theresa L. Hilton, and detectives with the Ewing Police Department, under the direction of Chief Albert Rhodes, with the investigation.
The government is represented by Assistant U.S. Attorney Tracey Agnew and Special Assistant Laura Sunyak of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
24-447
Defense counsel: Benjamin West, Esq.
mcneil.complaint.pdfWashington Man Charged with Threatening Flight Attendants on an AirplaneRead the Press Release
NEWARK, N.J. – A Washington, DC, man was arrested for threatening flight attendants during an incident in which he had to be restrained by flight crew and passengers while aboard a flight to Newark Liberty International Airport, U.S. Attorney Philip R. Sellinger announced.
Kedus Yacob Damtew, 38, of Washington, DC, was charged by complaint in Newark federal court with one count of interference with flight crew members and attendants by assault or intimidation. He appeared before Magistrate Judge Matthew J. Sharbaugh in Washington, DC federal court, and was released.
According to documents filed in this case and statements made in court:
On June 12, 2024, shortly before landing on a flight from Houston, Texas, Damtew removed his shirt; pushed his bare chest into a flight attendant, pinning the flight attendant against the aircraft exit door; shouted epithets and threats of physical violence; and punched an aircraft oven. Damtew then followed the same flight attendant to the rear of the aircraft, where he continued to shout threats and epithets and threw a cup of water. Another flight attendant requested assistance over the airplane’s public address system, prompting several passengers to assist in securing Damtew in flex cuffs in the last row of the plane until the flight landed at Newark.
The charge of interfering with flight crew members and attendants carries a maximum sentence of 20 years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the charge. He also thanked the Port Authority Police Department, under the direction of Edward T. Cetnar, for its assistance.
The government is represented by Assistant U.S. Attorney Eli Jacobs of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
24-446
Defense counsel: Elizabeth Mullin, Esq., Assistant Federal Public Defender, Washington, DC
damtew.complaint_0.pdfU.S. Attorney’s Office Secures Agreement with Hudson and Morris County Boards of Elections to Ensure Polling Place Access to Voters with DisabilitiesRead the Press Release
NEWARK--The United States Attorney’s Office for the District of New Jersey has secured agreements with the Hudson and Morris County Boards of Election to ensure that the counties provide accessible polling places to voters with disabilities, U.S. Attorney Philip Sellinger announced today. The agreement resolves the United States’ investigations into both counties’ compliance with Title II of the Americans with Disabilities Act (ADA), which prohibits discrimination on the basis of disability by state or local government in its programs or services.
The United States’ investigation identified architectural barriers at multiple polling places in both counties that rendered some of the polling places not fully accessible to voters with disabilities. The Boards of Elections in both counties have cooperated fully with the U.S. Attorney’s Office to reach these agreements to improve physical accessibility at their respective polling place locations.
“Ensuring that all eligible citizens can participate in the voting process is one of the most fundamental elements of our democracy. Voters with disabilities have a right to vote at their local polling places free from barriers to physical accessibility. Our office remains committed to using every tool available to ensure that all eligible New Jersey voters can cast their ballot without barriers.”
U.S. Attorney Philip R. Sellinger
Under the settlement agreement, the Election Boards will each employ temporary measures, such as portable ramps and signage, where appropriate, to make their existing polling places accessible. They will also train poll workers on the ADA’s accessibility requirements, how to use temporary measures to make polling places accessible, and how to survey polling locations for accessibility on Election Day. The U.S. Attorney’s Office will monitor the Board of Elections’ compliance with the agreements and provide them with technical assistance.
The United States is represented by Senior Civil Rights Counsel Kelly Horan Florio and Assistant U.S. Attorney Thandiwe Boylan of the U.S. Attorney’s Civil Rights Division.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
hudson.settlementagreement.pdf morris.settlementagreement.pdfHudson County Man Admits Role in Four Robberies and Two Shootings in Jersey City, New JerseyRead the Press Release
NEWARK, N.J. – A Hudson County man admitted his role in four robberies and two shootings in Jersey City, New Jersey, which took place on the same night, U.S. Attorney Philip R. Sellinger announced today.
Rodney Williams, 32, of Jersey City, New Jersey pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an Indictment charging him with conspiracy to commit Hobbs Act robbery, conspiracy to use and carry a firearm in relation to a crime of violence, Hobbs Act robbery, attempted Hobbs Act robbery, using and carrying a firearm in relation to a crime of violence, and possession of a firearm and ammunition by a convicted felon. Williams’ co-defendant, Siobhan Chandler, was sentenced on April 25, 2024 to 12 years’ imprisonment followed by 5 years’ supervised release for her role.
According to documents filed in this case and statements made in court:
On the evening of November 14, 2021, Williams and Chandler committed multiple armed robberies and two shootings in Jersey City. The criminal activity began when Williams, acting alone, robbed a store while he pointed his gun at the clerk and demanded money. The clerk handed money to Williams who then fled.
A short time later, Williams, now with Chandler, robbed a gas station, where Williams pointed his gun at two attendants and demanded money. When the attendants did not immediately comply, Williams shot one of the attendants in the chest. Williams and Chandler then fled.
Williams and Chandler later entered another store, and Williams again pointed his gun at a clerk and demanded money. The clerk handed money to Williams and he and Chandler fled.
Williams and Chandler then entered a nearby restaurant, and Williams again pointed his gun at the cashier and demanded money. When the cashier did not immediately comply, Williams shot the cashier in the chest. The cashier then handed money to Williams, after which Williams and Chandler fled.
The Hobbs Act robbery charges to which Williams pleaded guilty each carry a maximum potential penalty of 20 years in prison; the conspiracy to use and carry a firearm in relation to a crime of violence charge carries a maximum potential penalty of 20 years in prison; the using and carrying a firearm in relation to a crime of violence charges carry statutory mandatory minimum terms of 7 (Count Four) and 10 years (Count Nine) in prison and maximum potential penalties of life in prison. Any term of imprisonment on Counts Four and Nine must run consecutive to any other prison term imposed on the other counts. Each count also carries a maximum fine of $250,000. Sentencing is scheduled for April 23, 2025.
U.S. Attorney Sellinger credited officers of the Jersey City Police Department, under the direction of Acting Chief Kearns, and the Hudson County Prosecutor’s Office with the investigation leading to today’s guilty plea. He also thanks the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance.
The government is represented by Assistant U.S. Attorneys Shontae D. Gray and Eli Jacobs of the Criminal Division in Newark.
williamsetal.indictment.pdf
Gloucester County Man Sentenced to 120 Months in Prison for Drug Trafficking and Possession of Firearms as A FelonRead the Press Release
CAMDEN, N.J. – A Gloucester County man was sentenced today to 120 months in prison for possessing with intent to distribute thousands of methamphetamine pills and possessing two firearms as a felon, U.S. Attorney Philip R. Sellinger announced today.
George W. Joyce, 40, of Glassboro, previously pleaded guilty before U.S. District Christine P. O’Hearn to an information charging him with one count of possessing with intent to distribute more than 50 grams of methamphetamine and one count of possessing a firearm as a felon. Judge O’Hearn imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On March 29, 2023, law enforcement officers executed a search warrant at Joyce’s residence in Glassboro, New Jersey. Officers recovered from Joyce’s bedroom approximately 2,587 methamphetamine pills that Joyce admitted to possessing with the intent to distribute to others. Joyce further admitted to possessing two loaded firearms that officers also recovered from his bedroom. Joyce’s possession of the firearms was unlawful because he was a felon.
In addition to the prison term, Judge O’Hearn sentenced Joyce to 4 years of supervised release.U.S. Attorney Sellinger credited special agents of FBI’s Wilmington Resident Agency, under the direction of Special Agent in Charge William J. DelBagno in Baltimore, with the investigation leading to the sentencing. He also thanked the U.S. Attorney’s Office for the District of Delaware, the FBI’s Philadelphia Field Office, the Delaware State Police, and the New Castle County (Delaware) Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
joyce.information.pdf
Former Assistant Dean Sentenced to 36 Months in Prison for Million-Dollar Embezzlement from Essex County Graduate SchoolRead the Press Release
NEWARK, N.J. – A former assistant dean of an Essex County graduate school was sentenced yesterday to 36 months in prison for defrauding her former employer of more than $1.3 million, U.S. Attorney Philip R. Sellinger announced.
Teresina DeAlmeida, 59, of Warren, New Jersey and her co-conspirators, Rose Martins, 44, of East Hanover, New Jersey, and Silvia Cardoso, 61, of Warren, NJ, previously pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Julien Xavier Neals in Newark federal court.
“The defendant abused her position of trust as an assistant dean to orchestrate an elaborate embezzlement scheme for more than a decade. In doing so, she and her co-conspirators stole more than $1.3 million intended to benefit the school and its students. My office is committed to relentlessly prosecuting those who commit financial frauds.”
U.S. Attorney Philip R. Sellinger
“By choosing to utilize her position for illicit profit, Teresina DeAlmeida chose to enrich herself first and serve the students of the University last,” stated Jenifer L. Piovesan, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office. “Financial fraud like this will not be tolerated and IRS Criminal Investigation will continue to work with our law enforcement partners to root out and investigate these financial crimes.”
“Trust is an intangible thing, a faith that people who have access to large sums of money won't steal it. DeAlmeida took funds meant for students at the university and did so for more than a decade,” FBI Acting Special Agent-in-Charge Nelson I. Delgado said. “Students and most average citizens cannot see into finances of institutions, to question where it's going and why it's missing. The FBI Newark and our law enforcement partners have the tools to investigate wrongdoing and hold accountable those who don't think anyone will notice $1.3 million is missing.”
“I am proud of the contribution of OIG Special Agents in holding former Assistant Dean DeAlmeida accountable for her criminal actions. Her willful diversion and theft of funds that were intended for the school and its students was completely unacceptable,” said John Carlo, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office. “The OIG will continue to work with our law enforcement partners to protect the integrity of Federal education funds.”
According to documents filed in this case and statements made in court:
Between 2009 and July 2022, DeAlmeida, Martins, and Cardoso conspired to fraudulently misappropriate more than $1.3 million from their former employer, a graduate school of a university in Essex County, New Jersey. During the scheme, DeAlmeida was an assistant dean responsible for financial functions, and Martins served as her assistant. Cardoso, DeAlmeida’s sister, was also employed by the graduate school in a support staff role.
The defendants used a variety of methods to defraud the university. For instance:
• Beginning in 2009, DeAlmeida directed a graduate school vendor to pay Martins and Cardoso as though they worked for the vendor, even though they did not perform any services. DeAlmeida and Martins then caused the vendor to submit false invoices to the graduate school over the course of approximately four years to reimburse the vendor for the amounts fraudulently paid to Martins and Cardoso.
• From 2010 through 2022, DeAlmeida and Martins directed graduate school vendors to order hundreds of thousands of dollars of gift cards and prepaid debit cards the co-conspirators used for their personal benefit, and then to submit fraudulent invoices to the school purporting to be for goods and services that were never provided. The co-conspirators also misused DeAlmeida’s school-issued credit card to purchase hundreds of thousands of dollars of gift cards and prepaid debit cards from the school’s bookstore. DeAlmeida routinely fraudulently approved these charges and Martins forged the signatures of other employees on internal approvals.
• In 2015, Martins opened a shell entity called CMS Content Management Specialist LLC. Although CMS never rendered any services to the graduate school, Martins submitted, and DeAlmeida approved, fraudulent invoices totaling more than $208,000.
• The co-conspirators also used DeAlmeida’s school-issued credit card to make tens of thousands of dollars in unauthorized personal purchases. For example, DeAlmeida and Martins used the card to make over $70,000 in purchases at an online retailer shipped directly to their homes, including woman’s shoes, smart watches, and bed linens. DeAlmeida and Martins fraudulently altered certain receipts before submitting them to the school for payment.
In addition to the prison term, Judge Neals sentenced DeAlmeida to 2 years of supervised release and ordered restitution of approximately $1,397,000.
U.S. Attorney Sellinger credited special agents of the Internal Revenue Services, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; and special agents of the Department of Education, under the direction of Acting Special Agent in Charge John Carlo with the investigation.
The government is represented by Assistant U.S. Attorneys Carolyn Silane and Aja Espinosa of the Economic Crimes Unit in Newark.
Founder of Beverage Company Charged with Defrauding Investors of Millions of DollarsRead the Press Release
NEWARK, N.J. – The founder and executive chairman of a beverage company appeared in court for lying to solicit investments in his company, U.S. Attorney Philip R. Sellinger announced.
Todd O’Gara, 44, of Austin, Texas was charged by complaint with one count of wire fraud and appeared in court today to before U.S. Magistrate Judge Dustin Howell in Austin federal court.
According to documents filed in this case and statements made in court:
O’Gara, who founded and managed a beverage company, Wanu Water, Inc., raised at least $3.4 million dollars from individual victim investors. O’Gara repeatedly lied to solicit those investments and to encourage investors to maintain their investments. Among other things, O’Gara lied about the size of purchase orders from retailers and about major investments from private equity firms. As part of this fraudulent scheme, O’Gara sent investors fake documents including doctored emails and forged term sheets.
The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.
U.S. Attorney Sellinger added that the investigation is continuing. If you believe you are a victim of or otherwise have information concerning this scheme, please contact the FBI at [email protected].
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, Newark Field Division, with the investigation.
The government is represented by Assistant U.S. Attorneys Aaron L. Webman and Carolyn Silane of the Economic Crimes Unit in Newark.
ogara.complaint.pdf
Camden Registered Sex Offender Sentenced to 260 Months in Prison for Sex Trafficking MinorsRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 260 months in prison for trafficking three minors to engage in commercial sex acts, U.S. Attorney Philip R. Sellinger announced today.
Semaj A. Gilmore, 34, previously pleaded guilty before U.S. Chief District Judge Renée Marie Bumb to three counts of a superseding indictment charging him with sex trafficking minors. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From September 2020 to April 2021 Gilmore transported, at various times, three minor victims from Philadelphia to New Jersey knowing they would engage in a commercial sex act at Gilmore’s direction. Each of the victims was under age 18 at the time. During that time period, Gilmore had been required to register as a sex offender as a result of a prior conviction.
In addition to the prison term, Judge Bumb sentenced Gilmore to 10 years of supervised release.
U.S. Attorney Sellinger credited special agents of FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs in Philadelphia, with the investigation leading to the sentencing. He also thanked members of the Mount Laurel Police Department and the Burlington County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Jeffrey Bender and Special Assistant U.S. Attorney Katelyn Waegener of the U.S. Attorney’s Office in Camden.
New York Man Pleads Guilty in Connection with Transnational “Grandparent Scam” Operated from Dominican RepublicRead the Press Release
A New York man pleaded guilty yesterday to serving as a courier for a Dominican Republic-based “grandparent scam” that targeted elderly Americans.
Victor Anthony Valdez, 40, of the Bronx, New York, was charged in District of New Jersey with one count of wire fraud conspiracy for his role in the scam. According to the indictment, returned over the summer by a grand jury sitting in Newark, New Jersey, the scam operated from call centers in the Dominican Republic, making phone calls to elderly American victims purporting to be the victim’s grandchild, an attorney representing the grandchild in criminal proceedings, court personnel, or other persons associated with the legal system. Co-conspirators told the victims that their grandchildren had been arrested and needed cash for bail or other expenses. Once victims were convinced through lies and falsehoods, coconspirators instructed the victims to provide cash to couriers, including Valdez, who went to victims’ homes to pick up the money.
While acting as a courier for the scam between August 2020 and August 2021, Valdez is alleged to have retrieved, or attempted to retrieve, tens of thousands of dollars from defrauded victims at their homes in New York and New Jersey. Valdez was an employee of the Social Security Administration, New York Region, at the time he committed the offense.
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes like the one in which the defendant here participated,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Those who aid transnational criminals in deliberately targeting vulnerable consumers in the United States will be held accountable.”
“The defendant admitted today to his role in a scam targeting vulnerable seniors,” said U.S. Attorney Philip Sellinger for the District of New Jersey. “The defendant and his co-conspirators took advantage of grandparents’ love and concern for their grandchildren they believed to be in trouble, convincing them to pay thousands of dollars. My office will continue to protect the rights of all victims, and we will relentlessly prosecute those who target and cheat vulnerable seniors.”
“Mr. Valdez intentionally conspired to defraud the elderly of their money and property through a cruel, international grandparent scam,” said Acting Inspector General Hannibal “Mike” Ware of the Social Security Administration. “The vast majority of the victims are Social Security beneficiaries, who live on a fixed income. We will continue to aggressively pursue such intolerable criminal activities. I thank the U.S. Attorney’s Office for their work in prosecuting this case.”
Valdez pleaded guilty to wire fraud conspiracy in a hearing in Newark before the Honorable Claire C. Cecchi of the United States District Court for the District of New Jersey. Valdez is scheduled to be sentenced on April 9, 2025, and faces a maximum penalty of 20 years in prison and a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Social Security Administration’s Office of the Inspector General and the Department of Homeland Security’s Homeland Security Investigations are investigating the case.
Trial Attorney Joshua Ferrentino of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Carolyn Silane and Alison Thompson for the District of Jersey are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Former Social Security Administration Employee Admits to Role in Transnational “Grandparent Scam” Operated from Dominican RepublicRead the Press Release
NEWARK, N.J. – A New York man who previously worked as a claims specialist with the U.S. Social Security Administration admitted yesterday to acting as a courier for a Dominican Republic-based “grandparent scam” that targeted elderly Americans.
Victor Anthony Valdez, 39, of the Bronx, New York, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an indictment charging him with wire fraud conspiracy.
According to documents filed in this case and statements made in court, the scam operated from call centers in the Dominican Republic, making phone calls to elderly American victims purporting to be the victim’s grandchild, an attorney representing the grandchild in criminal proceedings, court personnel, or other persons associated with the legal system. Conspirators told the victims that their grandchildren had been arrested and needed cash for bail or other expenses. Once victims were convinced through lies and falsehoods, coconspirators instructed the victims to provide cash to couriers, including Valdez, who went to victims’ homes to pick up the money.
While acting as a courier for the scam between August 2020 and August 2021, Valdez is alleged to have retrieved, or attempted to retrieve, tens of thousands of dollars from defrauded victims at their homes in New York and New Jersey.
“The defendant admitted to his role in a scam targeting vulnerable seniors. The defendant and his coconspirators took advantage of grandparents’ love and concern for their grandchildren they believed to be in trouble, convincing them to pay thousands of dollars. My office will continue to protect the rights of all victims, and we will relentlessly prosecute those who target and cheat vulnerable seniors.”
U.S. Attorney Philip R. Sellinger
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes like the one in which the defendant here participated,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Those who aid transnational criminals in deliberately targeting vulnerable consumers in the United States will be held accountable.”
“Mr. Valdez intentionally conspired to defraud the elderly of their money and property through a cruel, international grandparent scam,” said Hannibal “Mike” Ware, Acting Inspector General for the Social Security Administration. “The vast majority of the victims are Social Security beneficiaries, who live on a fixed income. We will continue to aggressively pursue such intolerable criminal activities. I thank the U.S. Attorney’s Office for their work in prosecuting this case.”
Valdez faces a maximum of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for April 9, 2025.
U.S. Attorney Sellinger credited the special agents of the Social Security Administration’s Office of the Inspector General under the direction of Special Agent in Charge Amy Connelly, and the Department of Homeland Security’s Homeland Security Investigations (HSI) New York, under the direction of Special Agent in Charge William S. Walker.
Assistant U.S. Attorneys Carolyn Silane and Alison Thompson, and Trial Attorney Joshua Ferrentino of the Civil Division's Consumer Protection Branch and are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime (OVC), can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through OVC, which can be reached at www.ovc.gov.
valdez.indictment.pdf
Union County Man Admits COVID-19 Relief Program FraudRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a scheme to fraudulently obtain a Payroll Protection Program (PPP) loan, U.S. Attorney Philip R. Sellinger announced.
Joseph McKeon, aka “Jay McKeon,” 54, of Westfield, New Jersey, pleaded guilty before U.S. District Judge Julien Xavier Neals in Newark federal court to an indictment charging him with one count of wire fraud and one count of money laundering.
According to documents filed in this case and statements made in court:
From February 2021 through February 2022, McKeon submitted fraudulent PPP loan and forgiveness applications for $900,000 on behalf of a New Jersey company he owned. In support of those applications, McKeon lied about the number of employees the business employed and the income the employees earned. McKeon also submitted forged documents, including fake payroll information, bank statements, tax return documents. After the victim lender funded the loan, McKeon withdrew a significant amount of the loan proceeds as cash and made several large transfers between bank accounts, including one transfer for $315,504, that was sent to an Indiana title company.
The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. The money laundering conspiracy count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. Sentencing is scheduled for April 1, 2025.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Special Agent in Charge Amy Connelly; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Benjamin D. Bleiberg of the Economic Crimes Unit in Newark.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
mckeon.information.pdfSomerset County Man Admits Stealing more than $600,000 in Federal Benefits Meant for His Deceased FatherRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man today admitted stealing more than $600,000 in federal benefits that were intended for his deceased father, U.S. Attorney Philip R. Sellinger announced.
Steven Jones, 66, of Somerset, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court today to an information charging him with conversion of federal funds.
According to documents filed in this case and statements made in court:
Steven Jones’ father received several federal retirement benefits before he died in October 2004. After Jones’s father died, Jones intentionally falsified his father’s death certificate so that the federal agencies would continue to issue the retirement benefits. On two occasions, Jones had a person impersonate his father to a federal agency so that the agency would think his father was still alive and continue payments. The investigation revealed that Jones unlawfully collected these payments for nearly 20 years, from October 2004 to December 2023.
The charge of conversion of government funds carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 21, 2025.
U.S. Attorney Sellinger credited special agents of the Social Security Administration Office, of the Inspector General, Boston-New York Field Division, under the direction of Special Agent in Charge Amy Connelly.
The government is represented by Assistant U.S. Attorney Chana Y. Zuckier of the OCDETF Unit in Newark.
jones.information.pdfBergen County Man Admits Robbery of New Jersey BankRead the Press Release
CAMDEN, N.J. – A Bergen County, New Jersey, man admitted robbing a bank in Mountain Lakes, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Tony Winst, 46, of Cresskill, New Jersey, pleaded guilty before U.S. District Judge Edward S. Kiel in Camden federal court to an information charging him with bank robbery.
According to documents filed in this case and statements made in court:
On Nov. 17, 2023, Winst entered a bank in Mountain Lakes, New Jersey, and handed a note to a teller stating: “this is a robbery.” He claimed to have a weapon. The teller gave Winst money and he fled from the bank.
The count of bank robbery carries a maximum penalty of 20 years in prison, and a maximum fine of $250,000. Sentencing is scheduled for April 2, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; the Morris County Prosecutor’s Office, under the direction of Prosecutor Robert J. Carroll, with the investigation leading to the guilty plea. He also thanked the Mountain Lakes Police Department, under the direction of Chief of Police Shawn Bennett.
The government is represented by Assistant U.S. Attorney Sean Nadel of the General Crimes Unit in Newark.
winst.information.pdfTax Preparer Charged in 16-Count Indictment for Falsifying Tax Returns for Customers and Defrauding COVID-19 Relief Programs for Small BusinessesRead the Press Release
NEWARK, N.J. – A New Jersey tax preparer was charged in a sixteen-count indictment for using false information to increase client tax refunds, and fraudulently obtaining money from Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced.
Anne Bonilla, aka “Anne Davinovish,” 53, of Linden, New Jersey, is charged by indictment with thirteen counts of procuring, counseling, and advising in the preparation and filing of false tax returns; one count of conspiracy to commit wire fraud; and two counts of wire fraud. Bonilla was arraigned today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and pleaded not guilty.
According to the indictment:
Bonilla was a tax preparer at Anne Accounting Services Inc. who created fraudulent tax returns on behalf of multiple clients by falsifying various expenses. As a result, those clients’ returns requested higher tax credits and higher refunds than the clients were entitled to receive. Bonilla prepared at least 46 fraudulent tax returns that caused approximately $340,000 in refunds to which the taxpayers were not entitled.
Bonilla also arranged for a conspirator to obtain an Employer Identification Number (EIN) and Electronic Filer Identification Number (EFIN) using the conspirator’s personal identifying information. The fraudulent EIN was associated with tax returns that received more than $195,000 in federal refunds for tax year 2023, and the fraudulent EFIN was associated with tax returns that received more than $595,000 in federal refunds for tax year 2023, including tax refunds totaling more than $100,000 in the names (including variations of the names) of Bonilla and her associates.
In June 2020, Bonilla and a conspirator submitted a fraudulent EIDL application, which resulted in the Small Business Administration (SBA) paying $110,000 in COVID-19 related proceeds. In July 2020, Bonilla and the conspirator submitted another fraudulent EIDL application, which resulted in the SBA paying $131,200 in COVID-19 related proceeds. The July 2020 application was submitted under another person’s name to conceal the involvement of Bonilla and her conspirator, but law enforcement was subsequently able to link the July 2020 application back to Bonilla. Bonilla also sent a lender altered bank statements in connection with the purchase of real property in Florida.
Each of the 13 counts of procuring, counseling, and advising in the preparation and filing of false tax returns carries a maximum penalty of three years in prison and a $250,000 fine. Each count of wire fraud conspiracy and wire fraud carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jennifer L. Piovesan in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
bonilla.indictment.pdfEssex County Man Sentenced to 70 Months in Prison for Defrauding Victims in Car Theft and Fraudulent Resale SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 70 months in prison for defrauding victims by orchestrating a multistate car theft and fraud ring, U.S. Attorney Philip R. Sellinger announced.
Warren Guerrier, 47, of Newark, previously pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an indictment charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
From November 2016 to June 2020, Guerrier and several conspirators acting at his direction orchestrated a scheme to steal and then fraudulently sell vehicles to unsuspecting buyers. Guerrier and his conspirators identified vehicles to steal, then photographed, tracked, and advertised them for sale on the internet. The buyer victims were provided with electronically programmed keys and falsified certificates of title for the stolen vehicles in exchange for a negotiated purchase price in cash. Buyer victims also were provided with fraudulent identity documents utilized by conspirators to obscure their true identities.
The scheme involved the theft of at least 40 stolen vehicles, approximately 30 of which were sold by Guerrier and his conspirators to buyer victims. As a result of the scheme, Guerrier and his conspirators collected approximately $285,000.
In addition to the prison term, Judge Martini sentenced Guerrier to three years of supervised release and ordered restitution of $291,637.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark and Special Agent in Charge Lyonel Myrthil in New Orleans, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Jessica R. Ecker of the Criminal Division in Newark.
Monmouth County Man Charged with Armed Bank RobberyRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man made his initial court appearance today for an alleged armed bank robbery, U.S. Attorney Philip R. Sellinger announced today.
Jeffrey L. Kniffin, 50, of Wall Township, is charged by complaint with one count of armed bank robbery. He appeared before U.S. Magistrate Judge Rukhsanah L. Singh in Trenton federal court and was detained. A detention hearing is scheduled for November 25, 2024.
According to documents filed in this case and statements made in court:
On Oct. 23, 2024, Kniffin entered a bank in Wall Township, New Jersey, and demanded cash from a bank teller before grabbing and displaying for the teller a firearm. On several occasions during the robbery, Kniffin instructed the teller and other bank employees who were present, “Don’t do anything stupid.” After taking by force and intimidation cash from the teller, Kniffin fled the bank. He was apprehended and arrested by law enforcement several minutes later. At the time of his arrest, law enforcement recovered from Kniffin and his immediate surroundings a loaded firearm and more than $17,000 in cash.
The count of armed bank robbery carries a maximum penalty of 25 years in prison and a fine of $250,000.
U.S. Attorney Sellinger credited officer of FBI Newark’s Jersey Shore Safe Streets Task Force, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the charges. He also thanked the Wall Township Police Department, under the direction of Chief Sean O’Halloran, and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, for their assistance.
The government is represented by Special Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
kniffin.complaint.pdfU.S. Attorney’s Office for the District of New Jersey and Justice Department’s Civil Rights Division Find Civil Rights Violations by Trenton Police Department and City of TrentonRead the Press Release
trenton_findings_report.pdf
usa_sellinger_remarks_tpd.pdfTRENTON, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the Justice Department announced today that the Trenton Police Department (TPD) and the city of Trenton engage in a pattern or practice of conduct that violates the Fourth Amendment of the U.S. Constitution and federal law.
A comprehensive investigation found that TPD unlawfully uses excessive force, including unreasonable forms of physical force and pepper spray when facing little resistance or danger. TPD also conducts stops, searches and arrests without reasonable suspicion or probable cause. In addition, the department identified deficiencies in training, supervision, policy and accountability that contribute to TPD and the city’s unlawful conduct.
“For too long, the residents of Trenton have felt afraid of the police, rather than protected by them. The use of excessive force and unconstitutional stops, searches and arrests, sometimes with tragic consequences, have eroded public trust and undermined public safety. Today’s findings are the first step in achieving the reforms needed to rebuild public trust, so that the Trenton Police Department can effectively fight crime and keep residents safe, while respecting the constitutional rights of each and every person.”
U.S. Attorney Philip R. Sellinger
“Police officers must respect people’s civil and constitutional rights and treat people with dignity,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “After an extensive review, we found that police officers in Trenton routinely failed to respect the Fourth Amendment rights of those who call Trenton home. Trenton police stop and search pedestrians and motorists without a legal basis, make illegal arrests and use excessive force without basis. We are committed to the hard work necessary to achieve constitutional policing across the country. By bringing city officials, the police department and the community together, we are confident that we can institute meaningful reforms that remedy the violations uncovered.”
The Justice Department found that TPD engaged in a pattern or practice of using excessive force, with police officers often escalating encounters when facing little resistance or threat. For example, in one incident from 2023, after initially using reasonable force to arrest a man, an officer stomped on the man’s hand multiple times once he was on the ground, kneeled on his head and kicked him in the shoulder.
TPD also conducted numerous stops and searches of pedestrians and cars without reasonable suspicion or probable cause, often unlawfully arresting the person they stopped and searched.
TPD’s violations have eroded community trust and cost the city more than $7 million since 2021 to resolve lawsuits stemming from accusations of officer misconduct.
The Justice Department opened this investigation on Oct. 17, 2023. Career attorneys and staff in the U.S. Attorney’s Office for the District of New Jersey and the Civil Rights Division’s Special Litigation Section conducted the investigation. The team conducted an extensive review of TPD’s records, including hundreds of police reports and hundreds of hours of body-worn camera footage. The team also interviewed city and TPD leadership and line officers, accompanied officers on ride-alongs and met with dozens of community members.
The city and TPD cooperated fully with the Justice Department’s investigation. The department provided a comprehensive written report of its investigative findings to the city and TPD. The report acknowledges the changes already made by the city and TPD, and it identifies additional remedial measures the Justice Department believes are necessary to address its findings.
The Justice Department conducted this investigation pursuant to 34 U.S.C. § 12601, which prohibits law enforcement officers from engaging in a pattern or practice of conduct that deprives people of rights protected by the Constitution or federal law. Section 12601 authorizes the Attorney General to file a lawsuit in federal court seeking court-ordered remedies to eliminate a pattern or practice of unlawful conduct.
The Justice Department will conduct outreach to members of the Trenton community to explain the findings and for input on remedies to address the findings. Individuals may also submit recommendations by email at [email protected] or by phone at 973-645-2801
The Justice Department will hold a community meeting at a date to be determined. Members of the pubic are encouraged to attend.
Additional information about the Justice Department’s Civil Rights Division is available at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of New Jersey is available at www.justice.gov/usao-nj. Information specific to the Civil Rights Division’s Police Reform Work can be found at The Civil Rights Division’s Pattern and Practice Police Reform Work: 1994-Present. Additional information about civil rights enforcement at the U.S. Attorney’s Office for the District of New Jersey is available at www.justice.gov/usao-nj/civil-rights-enforcement.
The government is represented by Michael Campion, Chief of the Civil Rights Division; Assistant U.S. Attorneys Junis L. Baldon and Nicole Taykhman of the U.S. Attorney’s Civil Rights Division; and attorneys from the Special Litigation Section of the Justice Department’s Civil Rights Division.
24-433
Justice Department Finds Civil Rights Violations by the Trenton Police Department and the City of Trenton, New JerseyRead the Press Release
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey announced today that the Trenton Police Department (TPD) and the City of Trenton, New Jersey, engage in a pattern or practice of conduct that violates the Fourth Amendment of the U.S. Constitution. The city and TPD have stated that they will work with the department to implement the reform recommendations included in the report.
Specifically, the Justice Department finds that TPD unlawfully uses excessive force, including unreasonable forms of physical force and pepper spray in the absence of any significant resistance or danger. TPD also conducts stops, searches and arrests without reasonable suspicion or probable cause. In addition, the department identified deficiencies in training, supervision, policy and accountability that contribute to TPD and the city’s unlawful conduct.
“Police officers must respect people’s civil and constitutional rights and treat people with dignity,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “After an extensive review, we found that police officers in Trenton routinely failed to respect the Fourth Amendment rights of those who call Trenton home. Trenton police stop and search pedestrians and motorists without a legal basis, make illegal arrests and use excessive force without basis. We are committed to the hard work necessary to achieve constitutional policing across the country. By bringing city officials, the police department and the community together, we are confident that we can institute meaningful reforms that remedy the violations uncovered.”
“For too long, the residents of Trenton have felt afraid of the police, rather than protected by them,” U.S. Attorney Philip R. Sellinger for the District of New Jersey. “The use of excessive force and unconstitutional stops, searches and arrests, sometimes with tragic consequences, have eroded public trust and undermined public safety. Today’s findings are the first step in achieving the reforms needed to rebuild public trust, so that the Trenton Police Department can effectively fight crime and keep residents safe, while respecting the constitutional rights of each and every person.”
The Justice Department found that TPD engaged in a pattern or practice of using excessive force, with police officers often escalating encounters when facing little resistance or threat. For example, in one incident from 2023, after initially using reasonable force to arrest a man, an officer stomped on the man’s hand multiple times once he was on the ground, kneeled on his head and kicked him in the shoulder.
TPD also conducted numerous stops and searches of pedestrians and cars without reasonable suspicion or probable cause, often unlawfully arresting the person they stopped and searched. TPD’s violations have eroded community trust and cost the city more than $7 million since 2021 to resolve lawsuits stemming from accusations of officer misconduct.
The Justice Department opened this investigation on Oct. 17, 2023. Career attorneys and staff in the Civil Rights Division’s Special Litigation Section and U.S. Attorney’s Office for the District of New Jersey conducted the investigation. The team conducted an extensive review of TPD’s records, including hundreds of police reports and hundreds of hours of body-worn camera footage. The team also interviewed city and TPD leadership and line officers, accompanied officers on ride-alongs and met with dozens of community members.
The city and TPD cooperated fully with the Justice Department’s investigation. The department provided a comprehensive written report of its investigative findings to the city and TPD. The report acknowledges changes already made by the city and TPD, and it identifies additional remedial measures necessary to address its findings.
The Justice Department conducted this investigation pursuant to 34 U.S.C. § 12601, which prohibits law enforcement officers from engaging in a pattern or practice of conduct that deprives people of rights protected by the Constitution or federal law. Section 12601 authorizes the Attorney General to file a lawsuit in federal court seeking court-ordered remedies to eliminate a pattern or practice of unlawful conduct.
The Justice Department will conduct outreach to members of the Trenton community to explain the findings and for input on remedies to address the findings. Individuals can also submit recommendations by email at [email protected] or by phone at 973-645-2801.
Additional information about the Justice Department’s Civil Rights Division is available at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of New Jersey is available at www.justice.gov/usao-nj. Information specific to the Civil Rights Division’s Police Reform Work can be found at www.justice.gov/crt/file/922421/download. Additional information about civil rights enforcement at the U.S. Attorney’s Office for the District of New Jersey is available at www.justice.gov/usao-nj/civil-rights-enforcement.
Spanish translation forthcoming. La traducción al español estará disponible próximamente.
El Departamento de Justicia encuentra vulneraciones de los derechos civiles por parte de la Policía de Trenton y la Ciudad de Trenton, New JerseyRead the Press Release
La División de Derechos Civiles del Departamento de Justicia y la Fiscalía Federal para el Distrito de New Jersey anunció hoy que la Policía de Trenton (TPD, por sus siglas en inglés) y la Ciudad de Trenton, New Jersey, están incurriendo en un patrón o una práctica de conducta que vulnera la Cuarta Enmienda de la Constitución. La Ciudad y la TPD han declarado que trabajarán con el Departamento para implementar las recomendaciones de reforma incluidas en el informe.
En concreto, el Departamento de Justicia ha encontrado que la TPD emplea, de forma ilegal, una fuerza excesiva, lo que incluye formas irrazonables de fuerza física y aerosol de pimienta en ausencia de cualquier resistencia o peligro significativo. La TPD también realiza paradas, registros y detenciones sin sospechas razonables o motivos fundados para lo mismo. Asimismo, el Departamento identificó deficiencias en políticas, capacitación, supervisión y rendición de cuentas que contribuyen a la conducta ilícita de la TPD y la Ciudad.
«Los agentes de policía deben respetar los derechos civiles y constitucionales de las personas y tratar a las personas con dignidad», dijo Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Después de una revisión dilatada, descubrimos que los agentes de policía en Trenton no respetaban, de forma rutinaria, los derechos de la Cuarta Enmienda de los residentes de Trenton. La policía de Trenton para y registra a peatones y automovilistas sin fundamento jurídico, realiza detenciones ilegales y emplea fuerza excesiva sin motivos fundados para lo mismo. Estamos comprometidos con el arduo trabajo necesario para lograr una aplicación constitucional de vigilancia policial en todo el país. Al reunir a funcionarios municipales, la policía y la comunidad, estamos seguros de que podemos instituir reformas significativas que remedien las infracciones descubiertas».
«Durante demasiado tiempo, los residentes de Trenton han sentido miedo a la policía, en lugar de estar protegidos por ellos», comentó Philip R. Sellinger, el Fiscal Federal para el Distrito de New Jersey. «El uso de fuerza excesiva y paradas, registros y detenciones inconstitucionales, a veces con consecuencias trágicas, han minado la confianza pública y socavado la seguridad pública. Los hallazgos de hoy son el primer paso para lograr las reformas necesarias para reconstruir la confianza pública, de modo que la Policía de Trenton pueda luchar de forma eficaz contra la delincuencia y mantener a los residentes seguros, al tiempo que respeta los derechos constitucionales de cada persona».
El Departamento de Justicia descubrió que la TPD incurrió en un patrón o práctica de uso de fuerza excesiva, con agentes de policía que a menudo intensificaban los encuentros cuando se enfrentaban a poca resistencia o amenaza. Por ejemplo, en un incidente en el año 2023, después de emplear inicialmente una fuerza razonable para detener a un hombre, un agente pisoteó la mano del hombre varias veces estando este en el suelo, arrodillado sobre su cabeza y lo pateó en el hombro.
Asimismo, la TPD llevó a cabo numerosas paradas y registros de peatones y carros sin sospecha razonable o causa probable, a menudo deteniendo ilegalmente a la persona a la que detuvo y registró. Las infracciones de la TPD han socavado la confianza de la comunidad y han costado a la Ciudad más de $7 millones desde el 2021 para resolver demandas derivadas de acusaciones de mala conducta de agentes de policía.
El Departamento de Justicia inició esta investigación el 17 de octubre del 2023. La investigación fue llevada a cabo por abogados profesionales y personal en la Sección de Litigios Especiales de la División de Derechos Civiles y en la Fiscalía Federal para el Distrito de New Jersey. El equipo realizó una revisión exhaustiva de los registros de la TPD, incluidos cientos de informes policiales y cientos de horas de grabaciones de cámaras corporales. El equipo también entrevistó a líderes municipales y de la TPD, así como policías de línea, acompañó a los oficiales en los recorridos y se reunió con docenas de miembros de la comunidad.
La Ciudad y la TPD cooperaron plenamente con la investigación del Departamento de Justicia. El Departamento proporcionó a la Ciudad y la TPD un informe completo por escrito de sus hallazgos de investigación. El informe reconoce los cambios ya realizados por la Ciudad y la TPD e identifica medidas correctivas adicionales que son necesarias para poder abordar sus hallazgos.
El Departamento de Justicia llevó a cabo esta investigación de conformidad con la Sección 12601 del Título 34 del Código de los EE. UU. (Sección 12601), que prohíbe a los agentes del orden público participar en un patrón o una práctica de conducta que prive a las personas de los derechos protegidos por la Constitución o las leyes federales. La Sección 12601 autoriza al Fiscal General a presentar una demanda ante un tribunal federal que solicite recursos ordenados por un tribunal para eliminar un patrón o una práctica de conducta ilegal.
El Departamento de Justicia estará en comunicación con los miembros de la comunidad de Trenton para explicar los hallazgos y obtener sus comentarios sobre soluciones que puedan abordar los hallazgos. También se puede enviar recomendaciones por correo electrónico a [email protected] o por teléfono al 973-645-2801.
Hay más información disponible sobre la División de Derechos Civiles del Departamento de Justicia en www.justice.gov/crt. Información adicional sobre la Fiscalía Federal para el Distrito de New Jersey está disponible en https://www.justice.gov/usao-nj. Puede encontrar información específica sobre el Trabajo de Reforma Policial de la División de Derechos Civiles en www.justice.gov/crt/file/922421/download. Información adicional sobre la aplicación de los derechos civiles en la Fiscalía Federal para el Distrito de New Jersey está disponible en www.justice.gov/usao-nj/civil-rights-enforcement.
Two New Jersey Residents Charged with Sex Trafficking of MinorRead the Press Release
NEWARK, N.J. – Two New Jersey residents have been charged for child sex trafficking and related offenses, U.S. Attorney Philip R. Sellinger announced today.
Daquan McCallum, 30, of Elizabeth, New Jersey, and Destiny Tamarato, 26, of Brick, New Jersey, are charged by complaint with sex trafficking of a minor and conspiracy to engage in sex trafficking of a minor. McCallum made his initial appearance before U.S. Magistrate Judge on Stacey D. Adams on Nov. 19, 2024, and was detained. Tamarato made her initial appearance before U.S. Magistrate Judge André M. Espinosa on Nov. 15, 2024, and was detained.
According to documents filed in this case and statements made in court:
In April 2020, Tamarato was arrested at a motel in Elizabeth with two minor victims after law enforcement located an online advertisement for sexual services and communicated with Tamarato, who agreed to provide sexual services for an agreed-upon price. Following this arrest and after being advised that one of the victims was underage, Tamarato continued to advertise that victim’s sexual services online. Tamarato was again arrested for engaging in prostitution with the same victim in April 2021. Tamarato also introduced the victim to McCallum, who then arranged for the victim to engage in additional commercial sex work, despite knowing that the victim was a minor.
The charges of sex trafficking of a minor each carry a mandatory minimum of 10 years in prison, a maximum penalty of life imprisonment, and a fine of up to $250,000. The charge of conspiracy to engage in sex trafficking of a minor carries a maximum penalty of life imprisonment.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Nelson I. Delgado, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Lauren Kober of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
mccallumtamarato.complaint_.pdfMercer County Man Convicted of Several Carjackings Resulting in Serious Bodily Injury to Victims Sentenced to Life in PrisonRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man who was convicted of carjacking, brandishing a firearm during the carjacking, two attempted carjackings resulting in serious bodily injury, and possession of a firearm by a convicted felon was sentenced today to life in prison, U.S. Attorney Philip R. Sellinger announced.
Cedrick Hodges, 41, of Trenton, New Jersey, was convicted on Oct. 24, 2023, of all five counts of a second superseding indictment following a seven-day trial before U.S. District Judge Zahid N. Quraishi, who imposed the sentence today in Trenton federal court.
“On an evening in December 2017, Cedrick Hodges terrorized the people of Hamilton Township in a series of horrific and violent carjackings during which he shot two of his victims with a sawed-off shotgun at point blank range, inflicting on these victims permanent and life-altering injuries. Our office, together with our federal and local law enforcement partners, will spare no effort prosecuting violent offenders like Hodges. The sentence handed down today will ensure that this violent offender will never again be in a position to harm the people of New Jersey or anywhere else.”
U.S. Attorney Philip R. Sellinger
According to documents filed in this case and statements made in court:
On the evening of Dec. 16, 2017, Hodges entered the rear passenger seat of a Toyota Camry and pointed a loaded sawed-off shotgun at the driver, demanding that she operate the vehicle while Hodges entered the rear seat. The driver exited the vehicle and ran, in response to which Hodges discharged the shotgun towards her as she fled.
Moments later, Hodges approached a Honda Accord occupied by a driver and one passenger. Hodges pointed the shotgun at the driver’s window demanding that the driver and passenger exit the vehicle. When the driver refused, and instead began to drive the vehicle away from Hodges, Hodges discharged the firearm into the driver’s side window, striking the driver in his torso, causing permanent and serious bodily injury.
Hodges fled the area and several minutes later approached a man who was entering a Nissan Rogue. Hodges demanded that the man hand Hodges the keys to the Nissan Rogue. When the man refused, Hodges brandished the shotgun and discharged the firearm at the man, causing permanent and serious bodily injury.
U.S. Attorney Sellinger credited special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; the Hamilton Township Police Department, under the direction of Chief of Police Kenneth R. DeBoskey; the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge L.C. Cheeks Jr., with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Eric Suggs and Tracey Agnew of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Florida Nurse Charged with Fraudulently Diverting Fentanyl from Hospital EmployerRead the Press Release
NEWARK, N.J. – A Florida nurse was arrested today for diverting fentanyl from his hospital employer, U.S. Attorney Philip R. Sellinger announced today.
David L. Shaeffer, 35, of St. Petersburg, Florida, is charged by complaint with unlawfully acquiring or obtaining controlled substances by misrepresentation, fraud, forgery, deception and subterfuge. Shaeffer appeared today before U.S. Magistrate Judge Christopher Tuite in Tampa federal court, and was released on $50,000 bond.
According to documents filed in this case and statements made in court:
From Jan. 22, 2024, through Feb. 14, 2024, Shaeffer used his position as a travel nurse to fraudulently acquire and steal vials of fentanyl on at least 143 occasions while employed at a New Jersey hospital. Shaeffer took vials of fentanyl from the hospital’s automated medication dispensing cabinets by using an override in the system to bypass the requisite doctor’s order for the dispensing of fentanyl. Shaeffer prescribed the fentanyl himself to a specified patient even though he was not authorized to prescribe controlled substances. Shaeffer would dispense fentanyl and fail to administer the substance to the specified patient or dispose of the substance; dispense fentanyl and improperly dispose of the substance; and dispense fentanyl for a specified patient who had been discharged from the hospital. Shaeffer also fraudulently obtained fentanyl in a similar way while employed as a nurse in hospitals in Florida and Pennsylvania.
The charge of unlawfully obtaining or acquiring controlled substances by fraud carries a maximum penalty of up to four years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited task force officers and diversion investigators of the Drug Enforcement Administration, New Jersey Division, Newark District Office, under the direction of Special Agent in Charge Cheryl Ortiz; the Jersey City Police Department, Detective Bureau, under the direction of Public Safety Director James Shea; the Drug Enforcement Administration, Tampa Field Office; and the St. Petersburg Police Department with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the Opioid Abuse Prevention and Enforcement Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
schaeffer.complaint.pdfBergen County Investment Advisor Admits Stealing Millions of Dollars from ClientsRead the Press Release
TRENTON, N.J. – A former broker and investment advisor today admitted stealing more than $3 million from five clients, U.S. Attorney Philip R. Sellinger announced.
Kenneth A. Welsh, 42, of River Edge, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court to and indictment charging him with four counts of wire fraud and one count of investment advisor fraud.
According to documents filed in this case:
From July 2017 through March 2021, Welsh, while serving in his capacity as an investment advisor employed by a large brokerage firm, misappropriated at least $3 million from five clients. Welsh, who had been entrusted to manage client funds responsibly, instead perpetrated a scheme to defraud the five clients by diverting money from their brokerage accounts to accounts under his control. Welsh then used the unlawfully obtained money to fund his gambling and to purchase high-end, luxury items for himself.
Each of the wire fraud counts carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The investment advisor fraud count carries a maximum potential penalty of five years in prison and a $10,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 26, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
welsh.indictment.pdfIllinois Man Charged with Producing False U.S. Passports and Mailing Them to New JerseyRead the Press Release
NEWARK, N.J. – An Illinois man is charged with furnishing others with false U.S. passport cards through the mail, U.S. Attorney Philip R. Sellinger announced today.
Juma Wajid, aka “Jay Khan,” and “Jamal Anthony,” 36, most recently of Chicago, Illinois, is charged with one count of furnishing a false, forged, and counterfeited U.S. passport to another for use. Wajid appeared today before U.S. Magistrate Judge John K. Larkins III in Atlanta federal court and was released on $15,000 unsecured bond.
According to documents filed in this case and statements made in court:
In April 2024, law enforcement identified a package containing a fake U.S. passport card that was sent through the mail. Law enforcement found that Wajid used an online account to send hundreds of mailings between June 2022 and April 2024 and that he used an encrypted messaging application to advertise the sale of fake identification documents.
In August 2024, law enforcement purchased five false U.S. passport cards, as well as additional documents, from Wajid, who created the documents and mailed them to an address in New Jersey in exchange for payment in cryptocurrency.
The charge of furnishing a false passport to another person carries a maximum penalty of 10 years in prison and a fine of $250,000, or twice the amount of money involved in the offense, whichever is greater.
U.S. Attorney Sellinger credited special agents of the U.S. Department of State, Diplomatic Security Service, New York Field Office, under the direction of Special Agent in Charge Brian K. Wood; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher A. Nielsen; and officers of the New Jersey Office of Homeland Security and Preparedness, under the direction of Director Laurie Doran, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Trevor A. Chenoweth of the 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.
wajid.complaint.pdfWest New York Financial Advisor Sentenced to 41 Months in Prison for Role in Multimillion-Dollar Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A West New York financial advisor was sentenced today to 41 months in prison for 11 counts of defrauding public health insurance plans out of more than $4 million and transacting in the criminal proceeds, U.S. Attorney Philip R. Sellinger announced.
Kaival Patel, 55, of West New York, New Jersey, was convicted on Dec. 7, 2023, of one count of conspiracy to commit wire fraud and health care fraud, four counts of health care fraud, one count of conspiracy to commit money laundering by transacting in criminal proceeds, and five counts of money laundering by transacting in criminal proceeds following an 11-day trial before U.S. District Judge Robert B. Kugler. U.S. District Judge Edward S. Kiel imposed the sentence today in Camden federal court.
“This defendant lined his own pockets by taking advantage of health insurance plans for New Jersey state and local government employees, defrauding them of millions of dollars by conspiring to obtain reimbursements for medically unnecessary compound prescription medications. Together with our law enforcement partners, we will continue to investigate and prosecute those who abuse and defraud the health care system.”
U.S. Attorney Philip R. Sellinger
According to documents filed in this case and the evidence at trial:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Compounded medications require a prescription from a physician.
Patel created and operated a company called ABC Healthy Living LLC to market compound prescription medications. Patel and his conspirators learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compound medications such as vitamins, scar creams, pain creams, libido creams, and acid reflux medications. Patel and a conspirator approached Patel’s family member, a medical doctor who owns and operates a clinic in Newark, New Jersey, and convinced him to authorize prescriptions for the compound medications for patients who had no medical need for the prescriptions. Patel received commissions for the compound medication prescriptions.
Patel and his conspirators paid a group of corrections officers to go to Patel’s family member’s medical practice for the purpose of receiving fraudulent prescriptions. Patel conspired with a compounding pharmacist to add unnecessary ingredients to the compound medications to further increase their cost and augment his illicit profits. Patel engaged in a series of financial transactions to receive proceeds from the health care fraud and wire fraud conspiracy.
To date, approximately 48 people have been convicted or pleaded guilty in the overarching conspiracy.
In addition to the prison term, Judge Kiel sentenced Patel to three years of supervised release and ordered him to pay restitution of $4.72 million.
U.S. Attorney Sellinger credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman of the Criminal Division and R. David Walk Jr., Deputy Chief of the Criminal Division.
New Jersey Postmaster Indicted on Civil Rights Charge for Sexual Assault of Postal Service EmployeeRead the Press Release
A two-count indictment was unsealed today charging a U.S. Postal Service Postmaster with a federal civil rights violation for sexually assaulting a victim while acting under color of law and assaulting the victim, a federal employee, during the course of her official duties.
According to the indictment, on Nov. 26, 2022, in Teaneck, New Jersey, Gabriel Ekram Pagabe Ali, 47, sexually assaulted the victim, an employee of the U.S. Postal Service while on duty as a Postmaster at the U.S. Post Office in Teaneck.
Count One of the indictment charges Ali with depriving the victim of her right to bodily integrity when he sexually assaulted the victim. Count Two of the indictment charges Ali with forcibly assaulting the victim while she was engaged in official duties.
If convicted, Ali faces a maximum penalty of three years in prison for the civil rights count and eight years in prison for the assault count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Special Agent in Charge Matthew Modafferi of the U.S. Postal Service Office of Inspector General made the announcement.
The U.S. Postal Service Office of Inspector General is investigating the case.
Trial Attorneys Laura Gilson and Chloe Neely of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorneys Joseph Gribko and Javon Henry for the District of New Jersey are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New Jersey Postmaster Indicted for Sexual AssaultRead the Press Release
NEWARK, N.J. – U.S. Postal Service postmaster was arrested today on a federal civil rights violation for sexually assaulting a victim while acting under color of law and assaulting the victim, a federal employee, during the course of her official duties, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced.
Gabriel Ekram Pagabe Ali, 47, is charged by indictment with sexually assaulting the victim, an employee of the U.S. Postal Service while on duty as a postmaster at the U.S. Post Office in Teaneck.
According to the indictment:
On Nov. 26, 2022, in Teaneck, New Jersey, Ali deprived the victim of her right to bodily integrity when he sexually assaulted her. Count Two of the indictment charges Ali with forcibly assaulting the victim while she was engaged in official duties.
If convicted, Ali faces a maximum penalty of three years in prison for the civil rights count and eight years in prison for the assault count.
The U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, is investigating the case.
Assistant U.S. Attorneys Joseph Gribko and Javon Henry for the District of New Jersey and Trial Attorneys Laura Gilson and Chloe Neely of the Civil Rights Division’s Criminal Section are prosecuting the case.
The charges and allegations contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
ali.indictment.pdf
Former Owner of Collapsed Nursing Home Empire Admits $38 Million Tax Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country, U.S. Attorney Philip R. Sellinger announced.
Joseph Schwartz, 64, of Suffern, New York, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to two counts of an indictment charging him with willfully failing to pay over employment taxes withheld from employees of his company, and willfully failing to file an annual financial report (Form 5500) with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored.
“Schwartz ran a vast, multistate nursing home empire, but cheated taxpayers out of more than $38 million so he could line his own pockets. Having admitted his crime, he will now be held accountable. My office will continue to work with our law enforcement partners to prosecute those who willfully participate in tax fraud schemes."
U.S. Attorney Philip R. Sellinger
According to documents filed in this case and statements made in court:
Schwartz, an insurance broker and operator of Skyline Management Group LLC (Skyline), with headquarters in New Jersey, willfully failed to pay employment taxes relating to numerous health care and rehabilitation facilities that Skyline operated in 11 states.
According to the indictment, Schwartz was required to collect, truthfully account for, and pay over to the IRS trust fund taxes withheld from the pay of employees of Skyline and related companies. From October 2017 through May 2018, Schwartz caused taxes to be withheld from employees’ pay but failed to then pay over more than $38 million in employment taxes to the IRS. As an administrator of the Skyline 401K plan, Schwartz further had an obligation to file an annual Form 5500 financial report with the Secretary of Labor for calendar year 2018, but knowingly and willfully failed to file the report.
The employment tax fraud count is punishable by a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The failure to file a Form 5500 related to the retirement plan count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for April 10, 2025.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and investigators with the Department of Labor-Employee Benefits Security Administration, under the direction of Regional Director Thomas Licetti in the New York Regional Office; and special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Kendall Randolph and Daniel H. Rosenblum of the Criminal Division in Newark and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.
schwartz.indictment.pdfFormer CEO of 500.Com (now Bit Mining Ltd.) Indicted for Role in Bribing Japanese Officials and Bit Mining Ltd. Resolves Foreign Bribery InvestigationRead the Press Release
NEWARK, N.J. – An indictment was unsealed today charging the former CEO of 500.com (now BIT Mining Ltd.), Zhengming Pan, a Chinese national, with violations of the Foreign Corrupt Practices Act (FCPA). BIT Mining Ltd. has agreed to resolve investigations by the Justice Department and the Securities and Exchange Commission (SEC) into related FCPA violations arising from the company’s participation in a corrupt scheme to pay bribes to Japanese government officials.
BIT Mining entered into a three-year deferred prosecution agreement (DPA) in connection with a criminal information filed in the District of New Jersey charging BIT Mining with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA and one count of violating the books and records provisions of the FCPA.
A federal grand jury in the District of New Jersey returned an indictment against Pan on June 18. Pan is charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA, one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA.
“Paying bribes to foreign government officials is a serious crime. The top leadership of BIT Mining, then known as 500.com, directed consultants to pay bribes to Japanese government officials to win a bid to open a large resort in Japan. The illegal scheme started at the top, with the company’s CEO allegedly fully involved in directing the illicit payments and the subsequent efforts to conceal them. The company has admitted its crimes and agreed to pay a $10 million penalty, and its then-CEO has been charged for his role in the scheme. This agreement and indictment hold both the corporation as an entity and its top leadership accountable.”
U.S. Attorney Philip R. Sellinger
“BIT Mining, under the alleged direction of then-CEO Zhengming Pan, agreed to pay nearly $2 million in bribes to Japanese government officials to win a contract to open a lucrative resort and casino in Japan,” Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, said. “Pan has been indicted for his alleged role in directing company consultants to pay the bribes and to conceal the illicit payments through sham consulting contracts. Today’s resolution and the charges against Pan demonstrate the department’s continued commitment to holding both corporate and individual wrongdoers accountable for their crimes.”
“Today’s indictment against the former CEO of BIT Mining for bribing Japanese officials highlights the FBI’s commitment to holding individuals accountable for illegal conduct,” Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division said. “This type of criminal activity undermines the integrity of business practices. The FBI will relentlessly pursue those involved in illegal schemes creating unfair advantages and ensure they face the full consequences of the law.”
According to court documents, between 2017 and 2019, BIT Mining, then known as 500.com, admitted that its -CEO Pan, employees, and agents, agreed to pay approximately $1.9 million in bribes and payments to intermediaries, knowing the money would be used to make bribe payments to Japanese government officials. The purpose of the bribes was to try to help 500.com win a bid to open an integrated resort (a large resort that includes hotels, casinos, retail, dining, convention facilities, and entertainment venues) in Japan. On behalf of 500.com, Pan allegedly engaged third-party consultants to assist 500.com in paying and concealing these bribes. 500.com, through these consultants, paid bribes in the form of cash, travel, entertainment, and gifts. Pan and others allegedly covered up the payment of these bribes by, among other things, entering into sham contracts with the consultants and falsely recording the payments as legitimate expenses, including as management advisory fees. Ultimately, despite carrying out this bribery scheme, 500.com did not win an integrated resort bid in Japan.
Pursuant to the DPA, BIT Mining agreed, based on the application of the U.S. Sentencing Guidelines, that the appropriate criminal penalty is $54 million. However, due to BIT Mining’s financial condition and demonstrated inability to pay the penalty calculated under the U.S. Sentencing Guidelines, BIT Mining and the Justice Department agreed, consistent with the department’s inability to pay guidance, that BIT Mining will pay a total criminal penalty of $10 million. The Justice Department has agreed to credit up to $4 million against the civil penalty BIT Mining has agreed to pay to the SEC to resolve a parallel investigation.
BIT Mining has also agreed to continue to cooperate with the Fraud Section and the U.S. Attorney’s Office for the District of New Jersey in any ongoing or future criminal investigations. In addition, BIT Mining has agreed to continue to enhance its compliance programs and provide reports to the Justice Department regarding remediation and the implementation of compliance measures for the three-year term of the DPA.
The Justice Department reached this resolution with BIT Mining based on a number of factors, including, among others, the nature and seriousness of the offense. BIT Mining received credit for its cooperation with the department’s investigation, which included (i) voluntarily producing relevant documents, financial data, and other information, including from foreign countries, while navigating some foreign data privacy and related criminal laws, accompanied by translations of a limited number of documents; and (ii) providing the government with facts learned during its internal investigation. The cooperation was, however, reactive and limited in degree and impact.
BIT Mining engaged in certain timely remedial measures, which included, among other things, (i) increasing governance and oversight of compliance risks and audit findings by the Board of Directors, (ii) promoting compliance and ethics through company-wide communications, (iii) incorporating compliance criteria in performance evaluations for senior management, (iv) conducting annual risk assessments, (v) creating an anti-corruption policy and engaging in company-wide training and communications to promote it, and (vi) transitioning its business model to an industry that presents a lower corruption risk and reducing its presence in high risk regions. In light of these considerations, BIT Mining’s criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 10% reduction off the bottom of the applicable guidelines fine range.
The FBI’s International Corruption Unit is investigating the case.
Assistant U.S. Attorney Jennifer Kozar for the District of New Jersey and Trial Attorneys Jil Simon and Ligia Markman of the Criminal Division’s Fraud Section are prosecuting the cases.
The Justice Department’s Office of International Affairs and authorities in Japan provided assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former CEO Indicted for Role in Bribing Japanese Officials and BIT Mining Ltd. Resolves Foreign Bribery InvestigationRead the Press Release
An indictment was unsealed today charging the former CEO of 500.com (now BIT Mining Ltd.), Zhengming Pan, a Chinese national, with violations of the Foreign Corrupt Practices Act (FCPA). BIT Mining Ltd. has agreed to resolve investigations by the Justice Department and the Securities and Exchange Commission (SEC) into related FCPA violations arising from the company’s participation in a corrupt scheme to pay bribes to Japanese government officials.
BIT Mining entered into a three-year deferred prosecution agreement (DPA) in connection with a criminal information filed in the District of New Jersey charging BIT Mining with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA and one count of violating the books and records provisions of the FCPA.
A federal grand jury in the District of New Jersey returned an indictment against Pan on June 18. Pan is charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA, one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA.
“BIT Mining, under the alleged direction of then-CEO Zhengming Pan, agreed to pay nearly $2 million in bribes to Japanese government officials to win a contract to open a lucrative resort and casino in Japan,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Pan has been indicted for his alleged role in directing company consultants to pay the bribes and to conceal the illicit payments through sham consulting contracts. Today’s resolution and the charges against Pan demonstrate the department’s continued commitment to holding both corporate and individual wrongdoers accountable for their crimes.”
“Paying bribes to foreign government officials is a serious crime. The top leadership of BIT Mining, then known as 500.com, directed consultants to pay bribes to Japanese government officials to win a bid to open a large resort in Japan,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “The illegal scheme started at the top, with the company’s CEO allegedly fully involved in directing the illicit payments and the subsequent efforts to conceal them. The company has admitted its crimes and agreed to pay a $10 million penalty, and its then-CEO has been charged for his role in the scheme. This agreement and indictment hold both the corporation as an entity and its top leadership accountable.”
“Today’s indictment against the former CEO of BIT Mining for bribing Japanese officials highlights the FBI’s commitment to holding individuals accountable for illegal conduct,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “This type of criminal activity undermines the integrity of business practices. The FBI will relentlessly pursue those involved in illegal schemes creating unfair advantages and ensure they face the full consequences of the law.”
According to court documents, between 2017 and 2019, BIT Mining, then known as 500.com, admitted that its then-CEO Pan, employees, and agents, agreed to pay approximately $1.9 million in bribes and payments to intermediaries, knowing the money would be used to make bribe payments to Japanese government officials. The purpose of the bribes was to try to help 500.com win a bid to open an integrated resort (a large resort that includes hotels, casinos, retail, dining, convention facilities, and entertainment venues) in Japan. On behalf of 500.com, Pan allegedly engaged third-party consultants to assist 500.com in paying and concealing these bribes. 500.com, through these consultants, paid bribes in the form of cash, travel, entertainment, and gifts. Pan and others allegedly covered up the payment of these bribes by, among other things, entering into sham contracts with the consultants and falsely recording the payments as legitimate expenses, including as management advisory fees. Ultimately, despite carrying out this bribery scheme, 500.com did not win an integrated resort bid in Japan.
Pursuant to the DPA, BIT Mining agreed, based on the application of the U.S. Sentencing Guidelines, that the appropriate criminal penalty is $54 million. However, due to BIT Mining’s financial condition and demonstrated inability to pay the penalty calculated under the U.S. Sentencing Guidelines, BIT Mining and the Justice Department agreed, consistent with the department’s inability to pay guidance, that BIT Mining will pay a total criminal penalty of $10 million. The Justice Department has agreed to credit up to $4 million against the civil penalty BIT Mining has agreed to pay to the SEC to resolve a parallel investigation.
BIT Mining has also agreed to continue to cooperate with the Fraud Section and the U.S. Attorney’s Office for the District of New Jersey in any ongoing or future criminal investigations. In addition, BIT Mining has agreed to continue to enhance its compliance programs and provide reports to the Justice Department regarding remediation and the implementation of compliance measures for the three-year term of the DPA.
The Justice Department reached this resolution with BIT Mining based on a number of factors, including, among others, the nature and seriousness of the offense. BIT Mining received credit for its cooperation with the department’s investigation, which included (i) voluntarily producing relevant documents, financial data, and other information, including from foreign countries, while navigating some foreign data privacy and related criminal laws, accompanied by translations of a limited number of documents; and (ii) providing the government with facts learned during its internal investigation. The cooperation was, however, reactive and limited in degree and impact.
BIT Mining engaged in certain timely remedial measures, which included, among other things, (i) increasing governance and oversight of compliance risks and audit findings by the Board of Directors, (ii) promoting compliance and ethics through company-wide communications, (iii) incorporating compliance criteria in performance evaluations for senior management, (iv) conducting annual risk assessments, (v) creating an anti-corruption policy and engaging in company-wide training and communications to promote it, and (vi) transitioning its business model to an industry that presents a lower corruption risk and reducing its presence in high risk regions. In light of these considerations, BIT Mining’s criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 10% reduction off the bottom of the applicable guidelines fine range.
The FBI’s International Corruption Unit is investigating the case.
Trial Attorneys Jil Simon and Ligia Markman of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jennifer Kozar for the District of New Jersey are prosecuting the cases.
The Justice Department’s Office of International Affairs and authorities in Japan provided assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
View the deferred prosecution agreement here.
View the indictment here.
View the information here.
Somerset County Man Sentenced to 87 Months in Prison for Defrauding New Jersey Traumatic Brain Injury Fund of Millions of Dollars and Committing Tax EvasionRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 87 months in prison for conspiracy to commit healthcare fraud, five acts of healthcare fraud, and four counts of tax evasion, U.S. Attorney Philip R. Sellinger announced.
C.R. Kraus, 58, of Manville, New Jersey was convicted in April 2024 of all 10 counts of an indictment following a trial before U.S. District Judge Zahid N. Quraishi in Trenton federal court. In January 2023, Kraus’s conspirators, Harry Pizutelli and Maritza Flores, pleaded guilty to conspiracy to commit healthcare fraud and tax evasion relating to defrauding the New Jersey Traumatic Brain Injury Fund (TBI Fund) of millions of dollars for their own personal benefit. Both are awaiting sentencing.
“This defendant stole millions of dollars earmarked for victims of traumatic brain injuries. Stealing resources intended to help New Jersey residents who are already coping with serious challenges is especially egregious. This office will never relent in holding such criminals accountable. Today, this defendant learned the price of his criminal acts.”
U.S. Attorney Philip R. Sellinger
“C.R. Kraus was intent on defrauding the Traumatic Brain Injury Fund by making false claims that he treated patients who suffer from such maladies,” FBI – Newark Acting Special Agent in Charge Nelson I. Delgado said. “This not only took away valuable resources from other deserving patients but enabled Kraus and his co-conspirators to benefit substantial monetary gain, to the tune of more than $4 million. The FBI investigative team worked to put a stop to their fraudulent behavior, and bring to justice criminals who use the healthcare system as a personal piggy bank.”
“Motivated entirely by greed, C.R. Kraus and his co-conspirators stole millions of dollars from a government program meant to aid individuals with life-altering injuries,” Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office, said. “Today’s sentence reinforces IRS-CI’s dedication to investigating financial crimes and ensuring bad actors are held accountable for their misconduct.”
According to documents filed in this case and the evidence at trial:
The TBI Fund is a publicly funded program run by the New Jersey Division of Disability Services, a component of the New Jersey Department of Human Services. The TBI Fund’s purpose is to provide New Jersey residents who have suffered a traumatic brain injury with services and support in order to maximize their quality of life when funding from insurance, personal resources, or other programs is unavailable to meet their needs. Services funded by the TBI Fund include physical, occupational, and speech therapy; service coordination; assistive technology; cognitive therapy; neuropsychological services; pharmaceuticals; wheelchair ramp installation and other home modifications; and general home management and maintenance.
After a prospective patient applies for services, TBI Fund personnel review the application and, if approved, the patient is authorized to secure designated services from a third-party vendor. Once a patient receives services approved by the TBI Fund, the vendor or service provider submits an invoice to the TBI Fund for payment. When an invoice is received, TBI Fund personnel review the invoice to ensure that the patient had been approved to receive the services. If the invoice is approved, an internal payment voucher is generated, authorized by TBI Fund personnel, and then submitted to the New Jersey Department of the Treasury for payment, which issues a check directly to the vendor.
Pizutelli was the manager of the TBI Fund and was responsible for its day-to-day operation. He supervised, managed, and oversaw the process by which third-party vendors were paid for services rendered to eligible TBI Fund beneficiaries. From 2009 through June 2019, Pizutelli, Kraus, and Flores conspired to defraud the TBI Fund by misappropriating more than $4 million in fraudulent vendor payments for purported services that were never actually provided. Pizutelli orchestrated the distribution of fraudulent vendor payments to Flores and Kraus by generating and processing false invoices and internal payment vouchers. Pizutelli generated these invoices and vouchers to give the appearance that Flores and Kraus had provided approved services to eligible patients when, in fact, they had not provided any services. Pizutelli then approved and transmitted the internal payment vouchers so that his conspirators received vendor payments.
Pizutelli orchestrated these fraudulent payments to maintain and further romantic and/or sexual relationships with Flores, including more than $940,000 in fraudulent distributions to Flores and more than $3.245 million in fraudulent distributions to Kraus. To obscure their fraudulent conduct, Flores and Kraus also evaded the payment of substantial amount of income taxes by making material misstatements and omissions on their federal income tax returns and significantly underreporting the income they had derived from the fraudulent scheme.
In addition to the prison term, Judge Quraishi sentenced Kraus to three years of supervised release and ordered restitution of $4.19 million.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Acting Special Agent in Charge Delgado, and special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the guilty verdict. He also thanked the New Jersey Attorney General’s Office, Division of Law, and the New Jersey Department of Human Services, for its assistance.
The government is represented by Eric A. Boden, Attorney-in-Charge in Trenton, and Assistant U.S. Attorney Eric Suggs of the U.S. Attorney’s Office Trenton Branch Office.
Gang Member Sentenced to 28 Years in Prison for RacketeeringRead the Press Release
NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang was sentenced today to 336 months in prison for his role in a racketeering conspiracy, U.S. Attorney Philip R. Sellinger announced.
Elijah Williams, aka “Lil Smith,” 24, previously pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy.
“Elijah Williams brazenly shot multiple rival gang members, murdering one, paralyzing another, and leaving a trail of blood. Gang shootings jeopardize the safety of innocent residents in our communities and make the public less safe. The sentence handed down today ensures that Williams will spend decades behind bars, away from the streets he terrorized. This result was achieved through the hard work of many law enforcement partners in our Organized Crime Drug Enforcement Task Force, and we will continue our laser focus on battling the scourge of drugs and violence on our streets.”
U.S. Attorney Philip R. Sellinger
“Drug trafficking can be a dangerous and violent game, often entangled with the deadly consequences,” Special Agent in Charge Cheryl Ortiz of the DEA New Jersey Field Division said. “Today’s sentencing of Elijah Williams, who repeatedly used violence when operating his criminal enterprise, shows the commitment the DEA and our law enforcement partners have when making sure those responsible for these types of violent crimes face the consequences for their actions.”
“The investigation and prosecution of this individual as well as the sentence imposed illustrates the seriousness of this crime,” Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge L.C. Cheeks Jr. said. “ATF is dedicated to working with our federal, state, and local partners to hold violent offenders accountable, make a collaborative impact, and secure the safety of our communities.”
According to documents filed in this case and statements made in court:
From 2015 through Sept. 22, 2022, Williams was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere. On Sept. 25, 2018, in Newark, Williams attempted to murder rival gang members and associates by shooting at four individuals, one of whom was paralyzed. On March 20, 2019, in Irvington, New Jersey, Williams fatally shot another person, in retaliation for the murder of a member and associate of the Rollin’ 60s.
In addition to the prison term, Judge Wigenton sentenced Williams to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ortiz; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of ATF, under the direction of Special Agent in Charge Cheeks; investigators of the U.S. Marshals Service, under the direction of Marshal Juan Mattos; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers; the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II; the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda; the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the East Orange Police Department, under the direction of Chief Phyllis L. Bindi; the Elizabeth Police Department, under the direction of Police Director Earl J. Graves; the Edison Police Department, under the direction of Chief of Police Tom Bryan; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; the Spotswood Police Department, under the direction of Chief Philip Corbisiero; and the North Carolina State Bureau of Investigation Fugitive and Missing Person Task Force, which includes members of the FBI, with the investigations leading to the charges in the Rollin 60’s Neighborhood Crips investigation.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Francesca Liquori of the Special Prosecutions Division and Jake Nasar of the Organized Crime/Gangs Unit of the U.S. Attorney’s Office in Newark.
Florida Resident Sentenced to 78 Months in Prison for Tax EvasionRead the Press Release
NEWARK, N.J. – A resident of Florida was sentenced today to 78 months in prison for tax evasion, U.S. Attorney Philip R. Sellinger announced.
Jason Kronick, 51, of Boca Raton, Florida, formerly of Woodcliff Lake, New Jersey, was convicted on June 26, 2024, by a federal jury of four counts of tax evasion following a trial before U.S. District Judge Susan D. Wigenton, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
From 2010 through 2017, Kronick evaded payment of more than $8.6 million in income and employment taxes, including penalties and interest, despite having earned more than $20 million in taxable income. Kronick also collected approximately $200,000 in payroll taxes from employees of his company, but failed to remit those withholdings to the IRS and evaded his obligation to do so. Kronick evaded these taxes by, among other things, using approximately $1.8 million from accounts controlled by him to buy more than 40 luxury watches; spending more than $4.7 million to pay for home renovations and interior decorating; transferring more than $1.8 million, including funds originating from business accounts, to various casinos, where he converted the money to chips, gambled, and then redeemed chips for approximately $1.8 million in cash; and cashed approximately $159,000 in checks at check-cashing businesses to conceal his income and assets from the IRS.
In addition to the prison term, Judge Wigenton sentenced Kronick to three years of supervised release and ordered him to pay $10.27 million in restitution.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorneys Rachelle M. Navarro and Christopher Fell of the Criminal Division in Newark.
Two Former Employees of New Jersey Mortgage Lending Business Indicted for Roles in Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – Two men were arraigned today on charges related to their roles in a large-scale mortgage fraud scheme, U.S. Attorney Philip R. Sellinger announced today.
Christopher J. Gallo, 44, of Old Tappan, New Jersey, and Mehmet Ali Elmas, 32, a U.S. citizen who resided in Turkey until the time of his arrest, were indicted by a federal grand jury on Oct. 24, 2024, on one count of conspiracy to commit bank fraud, eight counts of bank fraud, eight counts of false statements to a financial institution; and one count of aggravated identity theft. They appeared today before U.S. District Judge Brian R. Martinotti in Newark federal court and each pleaded not guilty.
According to documents filed in this case and statements made in court:
Gallo and Elmas were previously employed by a New Jersey-based, privately owned licensed residential mortgage lending business. Gallo was a senior loan officer and Elmas was a mortgage loan officer and Gallo’s assistant. From 2018 through October 2023, Gallo and Elmas used their positions to conspire and engage in a fraudulent scheme to falsify loan origination documents sent to mortgage lenders in New Jersey and elsewhere, including their former employer, to fraudulently obtain mortgage loans. Gallo and Elmas routinely mislead mortgage lenders about the intended use of properties to fraudulently secure lower mortgage interest rates. Gallo and Elmas often submitted loan applications falsely stating that the listed borrowers were the primary residents of certain proprieties when, in fact, those properties were intended to be used as rental or investment properties. By fraudulently misleading lenders about the true intended use of the properties, Gallo and Elmas secured and profited from mortgage loans that were approved at lower interest rates.
The conspiracy also included falsifying property records, including building safety and financial information of prospective borrowers to facilitate mortgage loan approval. Between 2018 through October 2023, Gallo originated more than approximately $3 billion in loans.
The charges of conspiracy to commit bank fraud, bank fraud, and false statements to a financial institution each carry a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest. The aggravated identity theft charge carries an additional consecutive mandatory minimum term of two years in prison and a maximum fine of up to $250,000, or twice the gross gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
galloelmas.indictment.pdfFormer Vice President of Product Development Admits Theft of Trade Secrets from New Jersey-Based Producer of Oil Products and Proprietary FlavorsRead the Press Release
NEWARK, N.J. – A former vice president of product development at a New Jersey-based producer of oil products and proprietary flavors admitted possessing and conspiring to possess stolen trade secrets, U.S. Attorney Philip R. Sellinger announced today.
Andrew Blum, 63, of North Brunswick, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court on Nov. 12, 2024, to an information charging him conspiracy to possess stolen trade secrets and possession of stolen trade secrets.
“A company’s intellectual property – its proprietary materials and trade secrets – have enormous value to the companies that develop them, sometimes constituting their most valuable assets. Stealing them is a crime. This defendant admitted stealing trade secrets, including a secret formula used in one of the most recognizable names in the global soft drink industry. Our office will prosecute cases like this with the same vigor as any other theft.”
U.S. Attorney Philip R. Sellinger
“Blum admits he stole his employer's trade secrets and hoped to use the information so he could get a job across the street,” FBI – Newark Acting Special Agent in Charge Nelson I. Delgado said. “Protecting the proverbial keys to the castle is essential for companies to remain in business and stay competitive. It’s even common for corporations to house formulas and recipes in literal vaults to keep them from being stolen. One of the FBI’s priorities is protecting companies from these types of crimes and holding accountable anyone who tries to sneak out the back door.”
According to documents filed in this case and statements made in court:
From 2013 to Dec. 12, 2018, Blum was the vice president of product development for a company that is a subsidiary of a New Jersey-based corporation that maintained its principal place of business in Northern New Jersey. The company’s parent corporation was one of the world’s largest producers of oils, juices, peel and byproducts, as well as a leading manufacturer of proprietary flavors sold to, among others, the world’s largest beverage companies. The company’s entire business was predicated on the development of formulas used in the production of flavors and as such, the intellectual property represented in formulas is one of the company’s most important assets.
In December 2018, the company’s information technology team discovered that another employee from company used a personal email account to forward 82 files, each of which contained proprietary and trade secret information, to Blum on his personal email account. The list of 82 files included virtually all of the formulas used in the department where Blum worked. The company later learned that Blum and the other employee accessed other sensitive formulas belonging to the company that Blum and the employee were not working on and should not have accessed, including a secret formula used in one of the most recognizable names in the global soft drink industry. Other email communication between non-company accounts showed that Blum and the other employee were planning to leave the company to work for competitor companies. Law enforcement later recovered other trade secret information from Blum’s residence and from one of Blum’s cloud-based storage accounts, including handwritten notes for a product that the company produces that is sold by one of the world’s largest soda companies in a country in Asia.
The counts of conspiracy to possess stolen trade secrets and possession of stolen trade secrets each carry a maximum potential penalty of 10 years in prison and a fine of up to $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 20, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the U.S. Attorney’s Office General Crimes Unit in Newark, with assistance from the National Security Unit.
blum.information.pdfExecutive of Louisiana Compounding Pharmacy Admits Defrauding State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – The former vice president of sales of a Louisiana compounding pharmacy today admitted conspiring to use the Louisiana pharmacy to defraud New Jersey and military health benefits programs, Attorney for the United States Vikas Khanna announced.
Christopher Casseri, 56, of Baton Rouge, Louisiana, pleaded guilty before U.S. District Judge Edward S. Kiel to one count of conspiring to commit health care fraud. Casseri was previously charged with Christopher Kyle Johnston, 45, of Mandeville, Louisiana, Trent Brockmeier, 62, of Pigeon Forge, Tennessee, in a 24-count indictment with conspiracy to commit health care fraud and wire fraud and a second conspiracy to commit identity theft by using individuals’ personal identifying information without their consent. Johnston and Brockmeier were charged with additional charges of conspiring to commit money laundering and substantive counts of money laundering for transactions involving the over $43 million in illicit profits they realized from the scheme. The charges against Johnston and Brockmeier remain pending and they are scheduled to proceed to trial in January 2025.
According to court documents and statements made in Court:
Central Rexall was a retail pharmacy in Louisiana that prepared compounded medications, which are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. In 2013, Johnston and Brockmeier entered into an agreement with Central Rexall Chief Executive Officer Hayley Taff, who pleaded guilty on Aug. 12, 2020, to conspiracy to commit health care fraud, to take over the management of the pharmacy and expand the compounding business in exchange for 90 percent of the profits. Brockmeier became chief operating officer of Central Rexall and Johnston became general counsel. They hired Casseri as vice president of sales to manage Central Rexall’s outside sales force.
Johnston, Brockmeier, and Casseri learned that certain insurance plans administered by an entity referred to in the indictment as the “Pharmacy Benefits Administrator” would reimburse thousands of dollars for a one-month supply of certain compounded medications – including pain, scar, and antifungal creams, as well as vitamin combinations. The health plans for New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had this insurance coverage, as did TRICARE, which insures current and former members of the armed forces and their families.
The three conspirators designed compounded medications and manipulated the ingredients in the medications in order to obtain high insurance reimbursements rather than serve the medical needs of patients. To determine which ingredients and combinations resulted in the highest insurance reimbursements, Johnston, Brockmeier, and Casseri had Central Rexall employees send the Pharmacy Benefits Administrator false prescription claims to test out different combinations of ingredients, but the prescriptions did not exist. By trial and error, Johnston, Brockmeier, and Casseri designed compounded medications with combinations of ingredients that were chosen solely based on the amount of money that insurance would pay rather than on the medications’ ability to serve the medical needs of patients. At their direction, Central Rexall sent compounded medications to patients based solely on financial gain, without any research or testing showing that the combination of ingredients was effective.
When the Pharmacy Benefits Administrator would stop covering one combination, the conspirators would develop a compounded medication with a different combination of ingredients based solely on the insurance reimbursement and without considering the medical necessity or effectiveness of the new combination. Central Rexall then would send that new compounded medication to patients, even though the new combination of ingredients was not medically equivalent to the combination originally prescribed for the patients and without telling the patients or their doctor about the differences.
The outside sales force retained and directed by Johnston, Brockmeier, and Casseri used various methods to get doctors to prescribe these medications and patients to accept them, including having prescriptions signed without the patient seeing a doctor or knowing about the medications, having medications or refills ordered with the patients’ knowledge, and paying patients to accept the medications and paying doctors to prescribe them.
Casseri and his conspirators caused over $46 million in fraudulent insurance claims for compounded medications that were not medically necessary.
Casseri faces a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for March 18, 2025.
Attorney for the United States Khanna credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and the U.S. Department of Labor Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the guilty plea.
The charges and allegations against Johnston and Brockmeier are merely accusations, and they are presumed innocent unless and until proven guilty.
The government is represented by R. David Walk Jr., Deputy Chief of the Criminal Division and Assistant U.S. Attorney Daniel A. Friedman of the Criminal Division in Camden.
casseri.sinformation.pdfMatawan Cardiologist Sentenced to 35 Months in Prison for Defrauding Health Insurance Companies of More Than $1.9 Million through Health Care Fraud SchemeRead the Press Release
TRENTON, N.J. – The owner and sole medical provider of a New Jersey medical practice was sentenced today to 35 months in prison for orchestrating a health care fraud scheme causing over $1.9 million in insurance reimbursements for false claims, U.S. Attorney Philip R. Sellinger announced.
Dr. Fazal Panezai, 76, of Morganville, New Jersey, previously pleaded guilty before U.S. District Judge Georgette Castner to an information charging him with participating in a health care fraud scheme. Judge Castner imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
Panezai, who owned and operated Matawan-Aberdeen Heart & Medical Center, for years submitted false claims to at least six health insurance benefit programs for office visits that either never occurred or did not take place for the length of time that he claimed.
For example, Panezai submitted claims for office visits lasting approximately 1,675 minutes – approximately 27.9 hours – for one day’s worth of office visits on May 27, 2022. Panezai also billed health insurance providers over $80,000 for office visits when he was out of the country and not conducting any office visits. Panezai also submitted claims for office visits when patients only picked up a prescription for a controlled substance from the front desk and never met with him. The false claims caused insurance plans to issue reimbursement checks to the center. Panezai kept the illicit profits, which totaled more than $1.9 million.
In addition to the prison term, Judge Castner sentenced Panezai to three years of supervised release and ordered him to pay restitution of $1.95 million.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the sentencing. He also thanked the Matawan Police Department.
The government is represented by Assistant U.S. Attorneys DeNae Thomas of the Health Care Fraud Unit and Jessica R. Ecker of the Criminal Division in Newark.
Leader of Real Estate Investment Firm Sentenced to 12 Years in Prison for Role in $658 Million Ponzi Scheme and Multimillion-Dollar Tax Evasion ConspiracyRead the Press Release
NEWARK, N.J. – The shadow chief executive officer of National Realty Investment Advisors LLC (NRIA) was sentenced today to 144 months in prison for orchestrating a scheme to defraud more than 2,000 investors in a $658 million Ponzi scheme and conspiring to evade millions of dollars in tax liabilities, U.S. Attorney Philip R. Sellinger announced.
Thomas Nicholas Salzano, aka “Nicholas Salzano,” 66, of Secaucus, New Jersey, previously pleaded guilty before U.S. District Judge Evelyn Padin to securities fraud, conspiracy to commit wire fraud, and conspiracy to defraud the United States. Salzano admitted he made numerous misrepresentations to investors while he secretly ran NRIA behind the scenes. He admitted to misappropriating millions of dollars from investors to enrich himself and his family and friends. Salzano also admitted to misappropriating millions of dollars from investors to enrich himself and his family and friends and failing to report and pay taxes on those misappropriated funds. Judge Padin imposed the sentence today in Newark federal court.
“For years, Salzano, operating from the shadows to conceal his prior history of fraud, told lie after lie to investors, continuously deceived them, and operated his business as a Ponzi scheme, through which he stole money from thousands of investors in order to support his lavish lifestyle. His greed and flagrant disregard for the law caused staggering losses in excess of $650 million. This office will continue to prioritize prosecuting individuals, like Salzano, who engage in rampant fraud to ensure they are held accountable with long jail sentences and are ordered to make their victims whole.”
U.S. Attorney Philip R. Sellinger
“Salzano trampled on the trust that his clients placed in him to invest their money prudently but instead he stole their investments for his own self-enrichment through his atrocious scheme which resulted in the theft of over $650 million,” said Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “Today’s sentencing of Salzano should send a message to others who choose to prey on innocent victims through similar investment fraud schemes that IRS – Criminal Investigation and our law enforcement partners are committed to pursuing justice for all Americans that are victimized by these schemes. Salzano’s clients were not the only victim of this scheme, every American taxpayer was also victimized by Salzano when he failed to pay tens of millions of dollars in taxes which would have funded local schools, infrastructure projects, and social programs for those in need.”
According to documents filed in this case and statements made in court:
From February 2018 through January 2022, Salzano and others defrauded investors and potential investors of NRIA Partners Portfolio Fund I LLC (the “Fund”), a real estate fund operated by NRIA, of $650 million through lies, deception, misleading statements, and material omissions. These included the financial position of NRIA, the manner in which the defendants and their conspirators used Fund investor money, and Salzano’s managerial role at NRIA and his history of fraud.
Salzano and his conspirators executed their scheme through an aggressive multiyear, nationwide marketing campaign that involved thousands of emails to investors; advertisements on billboards, television, and radio; and meetings and presentations to investors. Salzano led and directed the marketing campaign, which employed deception, material misrepresentations and omissions, and falsified documents to manipulate investors, which were intended to mislead Fund investors into believing that NRIA was a solvent business that generated significant profits. In reality, NRIA generated little to no profits and operated as a Ponzi scheme, which was kept afloat by new investors. Despite investing almost none of his own capital into the business, Salzano misappropriated millions of dollars of investor money to support his lavish lifestyle, including expensive dinners, extravagant birthday parties, and payments to family and associates who did not work at NRIA.
Salzano concealed his true managerial role at NRIA in an effort to avoid scrutiny from investors of his history of fraud at a large telecommunications company. In addition to defrauding investors, Salzano orchestrated a separate, but related, conspiracy to avoid paying taxes on his misappropriated funds.
In addition to the prison term, Judge Padin sentenced Salzano to three years of supervised release. As part of his plea agreement, Salzano has agreed to a forfeiture money judgment of $8.52 million, full restitution of $507.4 million to the victims of his offenses, and has agreed to pay $6.46 million to the IRS.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Chavis in Boston; and special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation, with assistance from FBI Headquarters Criminal Investigative Division.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer, Lauren E. Repole, and John Mezzanotte, of the U.S. Attorney’s Office’s Criminal Division, and Trial Attorney Samuel Bean of the U.S. Justice Department’s Tax Division.
Father and Son Owners of Florida Marketing and Medical Device Companies Charged with $28 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – Two Florida men were arraigned today on charges relating to their roles in a multimillion-dollar durable medical equipment (DME) and prescription drug health care fraud and kickback scheme, Attorney for the United States Vikas Khanna announced.
Nicholas A. Alberino, 61, of Boca Raton, Florida, and his son, Nicholas P. Alberino, 34, of Parkland, Florida, are each charged in a seven-count indictment with conspiracy to commit health care fraud and wire fraud, wire fraud, conspiracy to violate the federal Anti-Kickback Statute, and four counts of violating the Anti-Kickback Statute. The defendants were each arraigned today before U.S. District Judge Esther Salas in Newark federal court, and each pleaded not guilty.
According to documents filed in this case and statements made in court:
From February 2018 to April 2019, the Alberinos operated five Florida companies, each of which generated medically unnecessary prescriptions for certain expensive medications as well as DME such as orthotic braces through a telemarketing and telemedicine scheme. The Alberinos specifically sought to identify and target Medicare beneficiaries. Call centers contacted the beneficiaries by telephone and pressured them to accept the expensive medications and DME. The Alberinos then transmitted the beneficiaries’ personal information, as well as pre-written doctor’s orders and prescriptions, to RediDoc LLC, a purported telemedicine company. The Alberinos pre-selected prescription medications and DME for beneficiaries based on the potential for high reimbursement payments from insurance payers such as Medicare, and not based on the beneficiaries’ medical needs.
RediDoc, in turn, sent the information and documents the Alberinos provided to doctors. The doctors then typically signed the prescriptions despite not having any contact with the patients or conducting a bona fide assessment of the patients’ medical needs from which the doctors could have deemed that it was medically necessary to order the DME or medications. Once the doctors signed the prescriptions, the Alberinos directed RediDoc to steer them to third parties with which the Alberinos had illicit kickback and bribe arrangements. DME suppliers and pharmacies ultimately fulfilled these fraudulent orders and submitted claims for reimbursement to health care benefit programs, including Medicare. The Alberinos also fulfilled fraudulent orders using DME supply companies that they owned and controlled.
The Alberinos paid over $6 million in kickbacks and bribes to RediDoc in exchange for the fraudulent orders and received over $27 million in kickbacks and bribes from third parties in return for fraudulent orders. The Alberinos also received over $1.7 million from Medicare for fraudulent claims that they submitted directly to Medicare through DME supply companies they owned and controlled. Medicare ultimately paid at least $27 million to DME suppliers and pharmacies based on the fraudulent orders that originated with the Alberinos.
The health care fraud and wire fraud conspiracy count and wire fraud count each carry a maximum potential penalty of 20 years in prison. The charge of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years in prison. The four counts of violating the Anti-Kickback Statute are each punishable by 10 years in prison. Each of the seven counts in the indictment is also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.
Attorney for the United States Khanna credited special agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, and the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano and Garrett J. Schuman of the Health Care Fraud Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
alberino.indictment.pdfBergen County Woman Charged with Destroying Cell Phone to Obstruct Federal Investigations into Her Husband and HerselfRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman was charged with destruction of records in a federal investigation, U.S. Attorney Philip R. Sellinger announced today.
Jennifer Iturralde Pina, 43, of Franklin Lakes, New Jersey, is charged by complaint with one count of destruction of records. Iturralde appeared today before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was released on $200,000 bond.
According to documents filed in this case and statements made in court:
On Oct. 16, 2023, Iturralde’s husband, Cesar Humberto Pina, aka “Flipping NJ,” also of Franklin Lakes, was charged in the District of New Jersey with wire fraud in connection with a real estate investment fraud scheme. After Pina’s release on bond, Iturralde learned that the government received evidence from a witness related to Pina’s case. Shortly thereafter, Iturralde asked a friend to tell the witness to stop assisting the Government.
In early March 2024, the government obtained search warrants for two of Iturralde’s phones – which the government believed Iturralde used in connection with the real estate fraud scheme and the attempt to discourage the witness from assisting the government – and one phone belonging to the friend. On March 3, 2024, Iturralde tried, unsuccessfully, to hide one of her phones at the friend’s home. On March 5, 2024, the friend’s family member called to tell Iturralde that law enforcement had just seized the friend’s phone. Shortly thereafter, as law enforcement knocked on Iturralde’s door to execute the warrant to seize her phones, Iturralde destroyed one of the phones.
The destruction of records charge carries a maximum sentence of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of the IRS–Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge in Christopher A. Nielsen; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation.
The government is represented by Assistant U.S. Attorney Mark Pesce, Carolyn Silane, and Aaron Webman of the Economic Crimes Unit in Newark.
The charge and accusations against both Iturralde and Pina are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
iturraldepina.complaint.pdf