District of New Jersey
Press releases recorded for this federal judicial district.
Atlantic City, N.J., Tax Preparer Sentenced to Three Years in Prison for Filing Phony Income Tax Returns and Becoming A U.S. Citizen by FraudRead the Press Release
CAMDEN, N.J. – A tax preparer was sentenced today to 36 months in prison for his role in helping to prepare false income tax returns, illegal use of Social Security numbers and unlawfully obtaining United States’ citizenship, U.S. Attorney Paul J. Fishman announced.
Nicolas Gomez-Rua, 54, of Atlantic City, N.J., and Medellin, Colombia, previously pleaded guilty before U.S. District Judge Noel L. Hillman to three counts of a 45-count indictment. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:On Oct. 16, 2012, Gomez-Rua was charged in an indictment with 29 counts of aiding and assisting the preparation of a false income tax return, 10 counts of illegal use of a Social Security number and two counts of unlawful procurement of citizenship or naturalization. Clara Hernandez-Estrada, Gomez-Rua’s wife, was also charged with unlawful procurement of citizenship or naturalization, false statements in an application for a passport, false claim to U.S. citizenship and aggravated identity theft.
Gomez-Rua was arrested on Nov. 29, 2012, by special agents with U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) at JFK International Airport in New York when he tried to enter the United States from Colombia.
Between 2008 and 2010, Gomez-Rua operated Quick Tax Solution and Rapid Tax Solution in Ventnor City, N.J. He met with clients and obtained information and documents from them, which he used to prepare their U.S. Individual Income Tax Returns (1040 forms). Gomez-Rua admitted that he intentionally included fraudulent items and tax credits, such as false and fraudulent dependents, child tax credits, Earned Income Tax Credit (EITC) claims, fuel tax credits and education credits, in order to obtain larger refunds than those to which his clients were entitled.
Gomez-Rua admitted that he maintained a file of Social Security cards and birth certificates for individuals born in Puerto Rico that was used to add fraudulent dependents on the 1040 forms that were filed with the IRS. Clients paid Gomez-Rua on average $300 to $500 for the use of fraudulent dependents. Gomez-Rua admitted that after preparing the fraudulent returns, he filed the false returns electronically and by U.S. Mail with the IRS.
Gomez-Rua admitted that 729 U.S. individual federal income tax returns containing fraudulent items and credits were prepared by Quick Tax Solution and Rapid Tax Solution on behalf of its clients for tax years 2007 through 2009. Based on the false and fraudulent returns prepared for tax years 2007 through 2009, the United States lost approximately $170,211 in tax revenue.
Gomez-Rua admitted that on March 12, 2009, he filed a 1040 form that he prepared for an individual that contained false deductions, including child and dependent; car expenses; filing status; and exemption amount. According to Gomez-Rua, the dependents were added so that the client would receive a bigger refund; the false return caused a loss of $5,827 to the United States.
Gomez-Rua said he was born in Colombia and in October 1993, he illegally entered the United States. Gomez-Rua said that Clara Hernandez-Estrada, a citizen of Colombia, also illegally entered the United States from Colombia. Sometime after entering the United States, Gomez-Rua settled in Atlantic City.
While in Atlantic City, Gomez-Rua admitted that he purchased the identity of “Wigaberto Santiago,” including his name, date of birth and Social Security number. Santiago was a citizen of the Commonwealth of Puerto Rico. Gomez-Rua then used that identity to work at various locations in Atlantic City.
Gomez-Rua further admitted that he purchased the identity of “Elizabeth Tirado,” including her name, date of birth and Social Security number, for Hernandez-Estrada. Tirado was a citizen of the Commonwealth of Puerto Rico. Gomez-Rua stated that between 1997 and 2008, Hernandez use the Tirado identity to work in Atlantic City.
Gomez-Rua said that on March 30, 1998, he married Hernandez-Estrada under the name of Elizabeth Tirado. He admitted that at various times between 1998 and 2008, he prepared and filed with the IRS income tax returns which included W-2 Forms issued to Hernandez-Estrada under the Tirado identity.
Gomez-Rua admitted that on Feb. 8, 2001, he submitted an application to U.S. Citizenship and Immigration Services for lawful permanent resident status based on his fraudulent marriage to Tirado, a U.S. citizen. On Feb. 13, 2002, U.S. Citizenship and Immigration Services approved his application, granted him permanent resident status in the United States and issued him a green card.
On May 9, 2006, Gomez-Rua submitted an application to U.S. Citizen and Immigration Services seeking to become a citizen of the United States based on his marriage to a U.S. citizen. Gomez-Rua admitted that he signed the application under penalty of perjury and that the application included the following false representations: that he had never used other names; that he had been married to and living with the same U.S. citizen for the last three years, and that his spouse had been a U.S. citizen for the last three years; and that his spouse was Elizabeth Gomez.
On Feb. 23, 2007, Gomez-Rua was interviewed under oath, subject to the penalty of perjury, by an immigration services officer in Mount Laurel, N.J., and repeated the lies in his application. On Feb. 27, 2007, U.S. Citizen and Immigration Services approved Gomez-Rua’s application for citizenship and he was naturalized as a citizen of the United States. Gomez-Rua admitted that had he told the immigration services officer the truth then he would not have been eligible to become a United States citizen.
In addition to the prison term, Judge Hillman sentenced Gomez-Rua to three years of supervised release and ordered him to pay $170,211 in restitution. He also revoked his citizenship.
U.S. Attorney Fishman credited special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; special agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; and special agents of the U.S. Department of State’s Diplomatic Security Service (DSS), under the direction of Michael Fogarty, Acting Special Agent in Charge of the DSS New York Field Office, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
13-370
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Property Manager and Straw Purchaser Admit Roles in Multimillion-Dollar Mortgage FraudRead the Press Release
CAMDEN, N.J. – A property manager and a straw purchaser have admitted their roles in a scheme to defraud financial institutions as part of a multimillion-dollar mortgage fraud that used phony documents and “straw buyers” to make illegal profits on over-developed condominiums in the Wildwood, N.J., area, U.S. Attorney Paul J. Fishman announced today.
Paul Watterson, 53, of Mountainside, N.J., and John Bingaman, 44, of Benton, Ark., pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to separate informations charging each with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Bingaman entered his plea today and Watterson entered his plea on Sept. 11, 2013.
According to documents filed in this case and statements made in court:
Watterson and his conspirators identified homes in Wildwood and Wildwood Crest and recruited straw buyers to purchase those properties at the inflated rates. The straw buyers had good credit scores, but lacked the financial resources to qualify for mortgage loans. Watterson created fraudulent loan applications that contained false information about the straw buyers’ employment, income, assets and intended use of the properties. Watterson also obtained on behalf of his conspirators false documents to support the phony loan applications for certain straw purchasers. Watterson’s actions were designed to make the straw buyers appear more creditworthy than they actually were in order to induce the lenders to make the loans.
Watterson and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Watterson’s conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles. Watterson received $273,600 from five separate real estate transactions.
Bingaman purchased three separate properties in Wildwood and Wildwood Crest. Bingaman and others falsified his loan applications with respect to his employment, income, and assets in order to cause the lenders to make loans to Bingaman for the three properties. Bingaman took a portion of the fraudulent mortgage proceeds by having three separate checks totaling $241,789.98 deposited into an account for Five Stone Development – a company he controlled.
The wire fraud conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine. Watterson’s sentencing is scheduled for March 13, 2014. Bingaman’s sentencing is scheduled for March 14, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
13-368
Defense counsel:
Watterson: Thomas R. Ashley Esq., Newark
Bingaman: William H. Buckman Esq., Moorestown, N.J.Bingaman Information
WattersonInformationNewark Man Charged in Armed Robberies of New Jersey StoresRead the Press Release
NEWARK, N.J. – FBI special agents arrested a Newark, N.J., man in Newark this morning for alleged offenses in connection with armed robberies of a Krauszers Food Store in West Orange, N.J., and a Subway restaurant in Verona, N.J., U.S. Attorney Paul J. Fishman announced.
Antwon Yarbrough, 27, is charged by complaint with two counts of committing a Hobbs Act robbery and one count of using a firearm during a crime of violence. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark and was detained.
According to the criminal complaint unsealed today:
On April 24, 2013, Yarbrough and another individual entered a Krauszers in West Orange wearing dark hoodies, face masks and gloves. Yarbrough used a plastic zip tie to secure the door from the inside while the other individual pointed a gun at the clerk and pushed the clerk to the floor. Yarbrough bound the hands and feet of two other individuals in the store, striking one in the head with his forearm. The other robber tied up the clerk with zip ties and struck the clerk’s head with the gun. Yarbrough and the other robber then emptied the cash register, stole several cartons of cigarettes and fled.
On May 20, 2013, Yarbrough and two other individuals entered a Subway restaurant in Verona, again wearing dark hoodies, face masks, and gloves. The two robbers accompanying Yarbrough brandished firearms. After entering the restaurant, the robbers restrained a Subway employee with zip ties, emptied the cash register, and fled.
The Hobbs Act charges each carry a maximum penalty of 20 years in prison. The charge of brandishing a firearm during a crime of violence carries a maximum penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s arrest. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange Police Departments, along with the New Jersey State Police and the Essex County Prosecutor’s Office, for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are considered innocent unless and until proven guilty.
13-367
Defense counsel: Stacy Biancamano Esq., West Orange, N.J.
Yarbrough, Antwon Complaint
Illegal Firearms and Drug Dealer Admits Selling at Least 100 Guns to Criminals in the Camden, N.J., AreaRead the Press Release
Guns Originated From Straw and Gun Show Purchases in Ohio and Virginia
CAMDEN, N.J. – A Woodlynne, N.J., man today admitted – as part of his guilty plea to federal firearms and drug distribution charges – to selling illegally to drug dealers and other criminals in the Camden area at least 100 guns he purchased with cash from other illicit firearms dealers, U.S. Attorney Paul J. Fishman announced.
Terrance Laboo, aka “Terrance Reeves,” 40, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count each of dealing firearms without a license, conspiracy to deal in firearms without a federal firearms license, possession of firearms by a convicted felon and distribution of PCP.
“Today Terrance Laboo admitted he poisoned the streets of Camden with dangerous drugs and deadly weapons,” said U.S. Attorney Fishman. “Criminals who exploit the laws of other states to bring guns into New Jersey fuel a culture of violence that destroys communities and lives.”
“We will continue to be relentless in the pursuit of anyone who aims to put guns in the hands of criminals,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Thomas J. Cannon.
According to documents filed in this and related cases and statements made in court:
Laboo admitted that between December 2009 and September 2011, he sold or brokered the sale of at least 100 handguns that he purchased with cash from illegal gun distributors with out-of-state connections.
Laboo obtained many of the weapons from Joshua Jackson, aka “Apple,” aka “Trent,” 33, of Willingboro, N.J., and Columbus, Ohio. Jackson obtained most of the firearms through purchases at gun shows from unlicensed gun sellers who were not subject to background checks. Some of the firearms also were purchased at Ohio gun stores by straw purchasers working for Jackson, who then transported the handguns to New Jersey from Ohio and resold them to Laboo and others in the Camden area. Laboo admitted he knew he was buying guns that came illegally from Ohio and Virginia.
At the time of the gun sales, Laboo acknowledged, he was distributing PCP and cocaine from the corner of 4th and Chestnut Streets in Camden. Laboo admitted he sold, directed or brokered the sale of many of the firearms to other drug dealers in southern New Jersey.
The illegal firearms dealing count and the conspiracy count to which Laboo pleaded guilty each carry a maximum potential penalty of five years in prison and a $250,000 fine. The possession of firearms by a convicted felon count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The distribution of a controlled substance (PCP) count carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Jan. 14, 2014.
Jackson is charged with related charges in a separate complaint, which remains pending.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge Cannon, with the investigation leading to today’s guilty plea. He also thanked the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in New Jersey, and the Camden County Prosecutor’s Office, under the direction of Prosecutor Warren W. Faulk. Fishman additionally credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia; the Camden County Police Department, under the direction of Chief J. Scott Thomson; and the New Jersey State Police, under the direction of Colonel Rick Fuentes, Superintendent, for their support.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
As for Jackson, the charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.13-364
Defense counsel: Tangie Boston Esq., Philadelphia
Laboo, Terrance Information
Essex County, N.J., Man Charged with Eight Bank Robberies; Girlfriend Charged with Conspiracy to Commit Two Bank RobberiesRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man made his initial court appearance today in connection with his alleged role in eight bank robberies that took place between Nov. 20, 2012, and Sept. 11, 2013, U.S. Attorney Paul J. Fishman announced.
Andrew Thomas, 32, of Newark, is charged by complaint with eight counts of bank robbery. His girlfriend, Jennifer Pinto, 32, also of Newark, is charged with conspiring to commit two of the eight bank robberies. Both made their initial court appearances today before U.S. Judge Joseph A. Dickson in Newark federal court.
According to documents filed in this case and statements made in court:
Thomas is allegedly responsible for a bank robbery spree that spanned several months and four counties in New Jersey and which included seven bank robberies and one attempt. Pinto is charged in the same complaint with two counts of conspiracy to commit bank robbery in connection with two of the eight bank robberies for which Thomas is charged.
Thomas robbed or attempted to rob eight banks on eight separate dates between November 2012 and September 2013. Thomas robbed the following banks on the following dates:Nov. 20, 2012
Wells Fargo Bank
550 Broad Street
NewarkInvestors Savings Bank
946 Amboy Avenue
Edison, N.J.May 3, 2013
Investors Savings Bank
56 Westfield Avenue
Clark, N.J.May 30, 2013
Garden State Community Bank
1162 Green Street
Iselin, N.J.June 6, 2013
JP Morgan Chase Bank
60 Stirling Road
Watchung, N.J.July 30, 2013
Wells Fargo Bank
550 Broad Street
NewarkAugust 10, 2013
Garden State Community Bank
310 North Avenue
Cranford, N.J.Sept.11, 2013
Lusitania Savings Bank
1135 Liberty Avenue
Hillside, N.J.In several of the bank robberies, Thomas allegedly wore similar clothes and used similar tactics in robbing the bank. In all but two of the bank robberies, Thomas allegedly pointed what appeared to be either a silver or black handgun directly at the victim bank tellers and verbally demanded money. Thomas also wore either a black V-neck shirt or blue button down shirt in several of the robberies. Pinto is charged with conspiring to commit the bank robberies in Watchung and Cranford on June 6, 2013, and August 10, 2013, respectively. In each of those bank robberies, Pinto allegedly assisted Thomas by driving him to and from the bank robberies.
Each count of bank robbery with which Thomas is charged carries a maximum penalty of 20 years in prison and a fine of $250,000. He was detained.Each count of conspiracy with which Pinto is charged carries a maximum penalty of five years in prison and a fine of $250,000. She was released on $100,000 bond.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford. He also thanked the Newark, Edison, Clark, Woodbridge, Watchung, Cranford, and Hillside police departments for their contributions to the case.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
13-369
Defense counsel:
Thomas: Linda Foster Esq., Assistant Federal Public Defender, Newark
Pinto: Roy B. Greenman Esq., Union, N.J.Thomas, Andrew Complaint
Bergen County Resident Pleads Guilty to His Role in in A Large-scale Identity Theft Ring and Tax EvasionRead the Press Release
NEWARK, N.J. – A Bergen County, N.J., man today admitted his role in a large-scale and sophisticated identity theft scheme, U.S. Attorney Paul J. Fishman announced.
Matthew J. Kang, 44, Englewood Cliffs, N.J., pleaded guilty before U.S. District Judge Katharine S. Hayden to an Information charging him with conspiracy to unlawfully produce identification documents and false identification documents (Count One), conspiracy to commit wire fraud affecting financial institutions and bank fraud (Count Two), aggravated identity theft (Count Three), conspiracy to commit bank fraud (Count Four), and tax evasion (Count Five).
According to documents filed in this case and statements made in court:Kang, an independent loan broker, conspired with Sang-Hyun Park, a/k/a “Jimmy,” and others to obtain a Social Security card beginning with the prefix “586.” These 586 Social Security cards were issued by the United States to individuals, usually from China, who were employed in American territories, such as Guam. Park was the leader of a criminal organization, identified in court papers as “the Park criminal enterprise,” headquartered in Bergen County, that obtained, brokered, and sold identity documents to customers for the purpose of committing credit card fraud, bank fraud, tax fraud, and other crimes. Park pleaded guilty on Jan. 9, 2012, related to his role in the enterprise and is pending sentencing.
The Park criminal enterprise engaged in the fraudulent “build up” of credit scores associated with the Chinese identities. They did so by adding the Chinese identity as an authorized user to the credit card accounts of various conspirators who received a fee for this service – members of the enterprise’s credit build-up teams. By attaching the Chinese identities to these existing credit card accounts, the teams increased the credit scores associated with the Chinese identities. The members of the build-up teams knew neither the real person to whom the identity belonged nor virtually any of the customers who had purchased the identities.
After building the credit scores associated with these identities, Park and his conspirators directed, coached, and assisted his customers to open bank accounts and obtain credit cards. Park and his conspirators then used these accounts and credit cards to commit fraud. Park relied on several collusive merchants who possessed credit card processing, or swipe, machines. For a fee, known as a “kkang fee,” these collusive merchants charged the fraudulently obtained credit cards, although no transaction took place. After receiving the money into their merchant accounts from the credit card related to these fraudulent transactions, the collusive merchants gave the money to Park and his conspirators, minus their “kkang fee.”
Kang admitted that he obtained and brokered 586 Social Security card and counterfeit driver’s licenses through Park for others. Kang further admitted that as a member of a “build-up” team, he fraudulently established credit histories and scores for customers using these 586 identities. Kang and his conspirators used these fraudulently obtained identities to obtain credit cards and to obtain bank loans. Kang also admitted that he brokered numerous commercial loans through false statements and documents. Kang and his conspirators caused more than $4 million in financial losses.
Kang admitted that he committed tax evasion by receiving income, including commission and fees from loans he had brokered, funneling this income through his corporate accounts, and then using these funds for personal expenses. Kang admitted that around April 15, 2008, he filed an individual income tax return for tax year 2007 that declared that his taxable income for calendar year 2007 was $73,741. Kang admitted that this return failed to include $74,647 in additional taxable income that he had received in 2007, thus having an additional tax of $28,705 due the United States.
Kang faces the following statutory maximums: five years in prison (Count One); 30 years in prison (Count Two and Four); two years in prison, mandatory minimum (Count Three), and five years’ imprisonment (Count Five). Sentencing is scheduled for Jan. 6, 2014. He was arrested on Sept. 16, 2010, and released on $250,000 bail.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; the Department of Homeland Security’s Immigration and Customs Enforcement Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli and the Office’s Chief of Detectives Steven Cucciniello, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Anthony Moscato of the U.S. Attorney’s Office Organized Crime/Gangs Unit and Jane Yoon of the Healthcare and Government Fraud Unit in Newark.
As for other members of the Park Criminal Enterprise, the charges and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
13-365
Defense Counsel: Edward J. Dauber Esq. and Thomas B. Slocum Esq., NewarkTwo Doctors and A Salesman Admit Roles in Bribes-For-Test Referrals Scheme Involving New Jersey Clinical LaboratoryRead the Press Release
NEWARK, N.J. – Two New Jersey doctors and a company salesman pleaded guilty today to their roles in a long-running bribes-for-test referrals scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
Angelo Calabrese, 56, of Pine Brook, N.J., Paul Ostergaard, 72, of Pompton Plains, N.J., and David McCann, 45, of Lyndhurst, N.J., all pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court.
Calabrese, a doctor with an office in North Arlington, N.J., pleaded guilty to an information charging him with violating the Travel Act and admitted accepting more than $130,000 in bribes to refer at least $600,000 in lab business to BLS. Ostergaard, a doctor with an office in Pompton Plains, N.J., pleaded guilty to an information charging him with violating the Travel Act, and admitted accepting more than $50,000 in bribes to refer at least $150,000 in lab business to BLS. McCann pleaded guilty to an information charging him with conspiring to violate the Anti-Kickback Statute and the Travel Act and admitted paying thousands of dollars in cash to doctors on behalf of BLS.
With today’s guilty pleas, 17 people have now pleaded guilty in connection with the sophisticated BLS bribery scheme, which its organizers have admitted involved the payment of millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.
“We are continuing to pursue those defendants, including doctors, who put personal profits ahead of patient care,” U.S. Attorney Fishman said. “Patients need to be confident that their doctors are recommending providers who are best qualified to perform medically necessary tests. Those doctors who recommended providers in return for payoffs should know we are coming after them.”
“As is evident in the pleas entered today, and the investigation into the illegal activity of Biodiagnostic Laboratory Services, the FBI Newark takes very seriously the allegations of health care fraud, bribes and kickbacks,” FBI Special Agent in Charge Aaron T. Ford said. “This investigation and prosecution remains ongoing and those medical professionals that decided to make medical referrals in exchange for bribes are expected to be brought to justice. These pleas today are a direct result of the joint efforts of Health and Human Services-Office of Inspector General, United States Postal Inspection Service, Internal Revenue Service and Federal Bureau of Investigation.”
According to documents filed in this and other cases and statements made in court:
Calabrese received more than $130,000 from BLS between 2010 and 2013 through a sham consulting agreement and a sham rental agreement, which combined to pay Calabrese more than $4,500 per month in bribes from BLS. Craig Nordman, 34, of Whippany, N.J., a BLS employee and the CEO of Advantech Sales LLC – one of several entities used by BLS to make illegal payments – who pleaded guilty in June to his role in the scheme, made many of the payments to Calabrese on behalf of BLS.
Ostergaard received more than $50,000 from BLS between 2006 and 2009 through a sham lease agreement and a sham service agreement. William Dailey, 42, of Wall, N.J., a BLS salesman who pleaded guilty to his role in the scheme in May, negotiated the sham agreements on behalf of BLS, with the knowledge and approval of BLS’s president, David Nicoll, 39, of Mountain Lakes, N.J. Ostergaard admitted today that while he was being bribed to make referrals to BLS, he noticed that BLS was adding tests that Ostergaard had not ordered for his patients, but stayed silent about the added tests.
McCann paid thousands of dollars in cash on a monthly basis between December 2011 and April 2013 to numerous physicians on behalf of BLS in exchange for the doctors’ referral of blood specimens to BLS.
On April 9, 2013, federal agents arrested David Nicoll, Scott Nicoll, 32, of Wayne, N.J., a senior BLS employee and David Nicoll’s brother, and Nordman. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Frank Santangelo, 43, of Boonton, N.J. In June, David and Scott Nicoll, Nordman, and four other associates of BLS pleaded guilty to charges related to their involvement. Santangelo, a doctor, pleaded guilty last month to charges relating to his role in the scheme. So far, 11 employees or associates of BLS, and six physicians have pleaded guilty to their roles in the bribery scheme.
“Offering slush fund payments for medical referrals, ultimately paid for by taxpayers, can have absolutely no place in our health care system,” Thomas O’Donnell, Special Agent in Charge of the Office of Inspector General at the U.S. Department of Health and Human Services region including New Jersey, said. “Such schemes will continue to be vigorously investigated and prosecuted, and these criminals will be brought to justice.”
The bribery count to which Calabrese and Ostergaard pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. McCann faces a maximum potential penalty of five years in prison and a $250,000 fine on the bribery conspiracy charge. Sentencing for all three defendants is scheduled for March 13, 2014.Calabrese and Ostergaard have also agreed to forfeit $334,000 and $53,900, respectively. The investigation has so far recovered more than $3 million through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge O’Donnell; IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Joseph Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
13-361
Defense counsel:
Calabrese: Julian Wilsey Esq., Livingston, N.J.
Ostergaard: Justin Walder Esq. and Kevin Buchan Esq., Roseland, N.J.
McCann: Benjamin Choi Esq. and Joseph Horn, Esq., Rutherford, N.J.
Calabrese Information
Ostergaard Information
McCann InformationNew York Man Admits to Participating in Seven Armed Robberies of Electronics Stores in New Jersey and New YorkRead the Press Release
TRENTON, N.J. – A Long Island, N.Y., man admitted today to participating in seven armed robberies of electronics stores in New Jersey and New York, U.S. Attorney Paul J. Fishman announced.
Leonard Arrington, 27, of Roslyn Heights, N.Y., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of conspiracy to commit Hobbs Act robberies and one count of using a firearm in furtherance of a crime of violence.
Arrington was arrested on May 22, 2013, originally charged in an indictment in connection with the Oct. 2, 2012, robbery of a Woodbridge, N.J., T-Mobile store. He has been in custody since his arrest.
According to documents filed in this case and statements made in court:
Between May 30, 2012, and Oct. 2, 2012, Arrington conspired with others to commit a series of gunpoint electronics store robberies during which he and accomplices stole merchandise for illegal resale. Typically, store employees were threatened at gunpoint and restrained during the robberies.
In pleading guilty to the gun charge, Arrington admitted that on Oct. 2, 2012, he entered a T-Mobile store in Woodbridge, brandishing a firearm, along with another man. After locking the front door, the men took the employees to the back of the store and tied them up, then stole approximately 40 cell phones. One of the robbers then called the getaway driver, who drove them away in a Land Rover. Accomplices delivered the stolen phones to a cell phone store in Brooklyn.
In all, Arrington admitted to participating in the following robberies:
Date
Bank
LocationRadio Shack
New Rochelle, N.Y.
June 11, 2012
T-Mobile Store
Hempstead, N.Y.
June 18, 2012
Radio Shack
Westbury, N.Y.
June 20, 2012
T-Mobile Store
West Hempstead, N.Y.
June 21, 2012
Radio Shack
Rockville Center, N.Y.
September 20, 2012
T-Mobile Store
Linden, N.J.
October 2, 2012
T-Mobile Store
Woodbridge, N.J.
The conspiracy charge carries a maximum potential penalty of 20 years in prison. The firearm charge carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to one another and to any other prison term. Each count also carries a maximum $250,000 fine. Sentencing is scheduled for Jan. 22, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Linden and Woodbridge Police Departments in New Jersey, as well as the New York City and Nassau County Police Departments and the Kings County District Attorney’s Office in New York for their excellent work in this case.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division.
13-362
Defense counsel: Dennis Cleary Esq., Newark, N.J.Arrington Superseding Information
Former Bergen County, N.J., Democratic Chairman Indicted on Racketeering ChargesRead the Press Release
Kickbacks, Bribery and Extortion Alleged
NEWARK, N.J. – A federal grand jury indicted Joseph A. Ferriero, the former chairman of the Bergen County Democratic Organization (BCDO), today, charging him with a racketeering scheme involving kickbacks paid to a public official, soliciting and accepting bribes as a party official and extortion, U.S. Attorney Paul J. Fishman announced.
The indictment charges Ferriero, 56, with conducting the BCDO’s affairs through a pattern of racketeering activity. He is also charged with conspiring to promote bribery and distribute bribe proceeds and to commit mail and wire fraud; as well as with one count each of violating the Travel Act and the mail and wire fraud statutes.
Ferriero is expected to make his initial court appearance before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court on a date to be determined.
“According to the indictment, Joseph Ferriero ran a political organization as a racketeering enterprise, abusing power for profit,” said U.S. Attorney Fishman. “Today’s charges expose years of peddled influence, from grants to building projects to software contracts. Battling political corruption is a constant priority for this office; we will continue to demand honest public service for the people of New Jersey.”
“The conduct alleged in today’s indictment is another unfortunate example of someone misusing their position in our political system for personal gain,” said FBI Special Agent in Charge Aaron T. Ford. “Such conduct tarnishes our political system. Today’s indictment reaffirms the FBI’s commitment to combat public corruption in New Jersey, and serves as a stark reminder that those who seek to violate public trust will be held accountable.”
According to the indictment returned today:
Ferriero served as the chairman of the BCDO from 1998 until January 2009. From December 2001 until October 2008, he conducted the BCDO’s affairs through a pattern of racketeering activity involving three schemes: the Governmental Grants Consulting (GGC) kickback scheme, the retail and entertainment project bribery and extortion scheme and the SJC Consulting (SJC) bribery scheme.
Ferriero offered Dennis J. Oury, 63, of Naples, Fla., the then-incoming borough attorney in Bergenfield, N.J., a concealed ownership interest in GGC in exchange for Oury’s agreement to exercise official action and discretion in GGC’s favor in Bergenfield. Oury accepted the offer and used his official position to cause GGC to be hired in Bergenfield. A portion of GGC’s proceeds from the borough were ultimately “kicked back” to Oury by Ferriero.
The conduct in this scheme was the subject of an earlier indictment and superseding indictment against Oury and Ferriero. On Sept. 29, 2009, Oury pleaded guilty before U.S. District Judge Stanley R. Chesler to Count One of the superseding indictment, charging him with conspiring with Ferriero to defraud Bergenfield through the use of the mails, and Count 11, charging him with willful failure to file a tax return. Oury was sentenced by Judge Chesler on Nov. 29, 2012, to three years of probation.
On Oct. 29, 2009, a federal jury found Ferriero guilty of one count of conspiracy and two counts of mail fraud related to the same scheme, but Judge Chesler dismissed the superseding indictment prior to Ferriero’s sentencing after the U.S. Supreme Court’s decision in Skilling v. United States.
Ferriero engaged in the retail and entertainment project bribery and extortion scheme by soliciting payments totaling $1.7 million from a Virginia-based real estate investment trust (the “Virginia REIT”) that, between 2002 and 2006, was involved in an attempt to develop land owned by the N.J. Sports & Exposition Authority (NJSEA) in Bergen County.
In 2002, the Virginia REIT agreed to secretly pay a consulting company operated by Ferriero and two of his then-law partners $35,000 a month in exchange for Ferriero’s agreement not to publicly oppose – nor to cause members of the BCDO or other public officials with whom he had influence to publicly oppose – the Virginia REIT’s proposal to the NJSEA. The payments were also in exchange for Ferriero’s assistance in obtaining endorsements, public support and other official action and inaction in favor of the Virginia REIT from members of the BCDO and other public officials with whom he had influence.
The indictment also alleges that Ferriero accepted bribes in his capacity as BCDO chairman in the course of the SJC bribery scheme. Ferriero agreed with a Nutley, N.J.-based attorney and software developer that Ferriero would recommend and provide a favorable opinion of the software developer and his companies to various public officials in Bergen County with whom Ferriero had influence. The software developer agreed to pay Ferriero one-quarter to one-third of the gross receipts from any contract obtained as a result of Ferriero’s efforts. Ferriero’s financial interest in the software developer’s public contracts was completely hidden using two shell companies, one of which was created and incorporated in Nevada for the sole purpose of contracting with and accepting payments from another shell company controlled by the software developer.
The racketeering charge carries a maximum potential penalty of 20 years in prison; the conspiracy charge carries a maximum potential penalty of five years in prison; the Travel Act charge carries a maximum penalty of five years in prison; and the mail and wire fraud charges each carry a maximum potential penalty of 20 years in prison. Each count of the indictment also carries a maximum $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford in Newark, for their work in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig. Criminal investigators from the U.S. Attorney’s Office led the investigation in this case.
The charges and allegations contained in the indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
13-363Defense counsel: Michael Baldassare and Jennifer Mara, Esqs., Newark
Ferriero Indictment
Former Bergen County, N.J., Democratic Chairman Indicted on Racketeering ChargesRead the Press Release
Kickbacks, Bribery and Extortion Alleged
NEWARK, N.J. – A federal grand jury indicted Joseph A. Ferriero, the former chairman of the Bergen County Democratic Organization (BCDO), today, charging him with a racketeering scheme involving kickbacks paid to a public official, soliciting and accepting bribes as a party official and extortion, U.S. Attorney Paul J. Fishman announced.
The indictment charges Ferriero, 56, with conducting the BCDO’s affairs through a pattern of racketeering activity. He is also charged with conspiring to promote bribery and distribute bribe proceeds and to commit mail and wire fraud; as well as with one count each of violating the Travel Act and the mail and wire fraud statutes.
Ferriero is expected to make his initial court appearance before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court on a date to be determined.
“According to the indictment, Joseph Ferriero ran a political organization as a racketeering enterprise, abusing power for profit,” said U.S. Attorney Fishman. “Today’s charges expose years of peddled influence, from grants to building projects to software contracts. Battling political corruption is a constant priority for this office; we will continue to demand honest public service for the people of New Jersey.”
“The conduct alleged in today’s indictment is another unfortunate example of someone misusing their position in our political system for personal gain,” said FBI Special Agent in Charge Aaron T. Ford. “Such conduct tarnishes our political system. Today’s indictment reaffirms the FBI’s commitment to combat public corruption in New Jersey, and serves as a stark reminder that those who seek to violate public trust will be held accountable.”
According to the indictment returned today:
Ferriero served as the chairman of the BCDO from 1998 until January 2009. From December 2001 until October 2008, he conducted the BCDO’s affairs through a pattern of racketeering activity involving three schemes: the Governmental Grants Consulting (GGC) kickback scheme, the retail and entertainment project bribery and extortion scheme and the SJC Consulting (SJC) bribery scheme.
Ferriero offered Dennis J. Oury, 63, of Naples, Fla., the then-incoming borough attorney in Bergenfield, N.J., a concealed ownership interest in GGC in exchange for Oury’s agreement to exercise official action and discretion in GGC’s favor in Bergenfield. Oury accepted the offer and used his official position to cause GGC to be hired in Bergenfield. A portion of GGC’s proceeds from the borough were ultimately “kicked back” to Oury by Ferriero.
The conduct in this scheme was the subject of an earlier indictment and superseding indictment against Oury and Ferriero. On Sept. 29, 2009, Oury pleaded guilty before U.S. District Judge Stanley R. Chesler to Count One of the superseding indictment, charging him with conspiring with Ferriero to defraud Bergenfield through the use of the mails, and Count 11, charging him with willful failure to file a tax return. Oury was sentenced by Judge Chesler on Nov. 29, 2012, to three years of probation.
On Oct. 29, 2009, a federal jury found Ferriero guilty of one count of conspiracy and two counts of mail fraud related to the same scheme, but Judge Chesler dismissed the superseding indictment prior to Ferriero’s sentencing after the U.S. Supreme Court’s decision in Skilling v. United States.
Ferriero engaged in the retail and entertainment project bribery and extortion scheme by soliciting payments totaling $1.7 million from a Virginia-based real estate investment trust (the “Virginia REIT”) that, between 2002 and 2006, was involved in an attempt to develop land owned by the N.J. Sports & Exposition Authority (NJSEA) in Bergen County.
In 2002, the Virginia REIT agreed to secretly pay a consulting company operated by Ferriero and two of his then-law partners $35,000 a month in exchange for Ferriero’s agreement not to publicly oppose – nor to cause members of the BCDO or other public officials with whom he had influence to publicly oppose – the Virginia REIT’s proposal to the NJSEA. The payments were also in exchange for Ferriero’s assistance in obtaining endorsements, public support and other official action and inaction in favor of the Virginia REIT from members of the BCDO and other public officials with whom he had influence.
The indictment also alleges that Ferriero accepted bribes in his capacity as BCDO chairman in the course of the SJC bribery scheme. Ferriero agreed with a Nutley, N.J.-based attorney and software developer that Ferriero would recommend and provide a favorable opinion of the software developer and his companies to various public officials in Bergen County with whom Ferriero had influence. The software developer agreed to pay Ferriero one-quarter to one-third of the gross receipts from any contract obtained as a result of Ferriero’s efforts. Ferriero’s financial interest in the software developer’s public contracts was completely hidden using two shell companies, one of which was created and incorporated in Nevada for the sole purpose of contracting with and accepting payments from another shell company controlled by the software developer.
The racketeering charge carries a maximum potential penalty of 20 years in prison; the conspiracy charge carries a maximum potential penalty of five years in prison; the Travel Act charge carries a maximum penalty of five years in prison; and the mail and wire fraud charges each carry a maximum potential penalty of 20 years in prison. Each count of the indictment also carries a maximum $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford in Newark, for their work in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig. Criminal investigators from the U.S. Attorney’s Office led the investigation in this case.
The charges and allegations contained in the indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
13-363Defense counsel: Michael Baldassare and Jennifer Mara, Esqs., Newark
Ferriero Indictment
New York Man Pleads Guilty to $1 Million ATM Skimming Scheme Targeting Tri-State Bank CustomersRead the Press Release
NEWARK, N.J. – A Romanian national and Queens, N.Y., resident today admitted to a scheme to steal account information from bank customers throughout New Jersey, New York and Connecticut by installing secret card-reading devices on ATMs, U.S. Attorney Paul J. Fishman announced.
Constantin Ginga, 52, pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Ginga has been held without bail since his arrest on Jan. 13, 2013.
To date, nine other individuals have been charged with a related conspiracy, which stole millions of dollars from unsuspecting customers.
According to documents filed in this and related cases, as well as statements made in court:
During his guilty plea, Ginga admitted that he and fellow conspirators installed skimmers and pinhole cameras at bank ATMs. The devices were installed on multiple ATMs in New Jersey and Connecticut. Each skimmer, an electronic device, would read and record identity and account information contained in the magnetic strip of a customer’s ATM card. The pinhole camera secretly recorded bank customers’ keystrokes as they entered their personal identification numbers. Ginga admitted that he and other conspirators went back to collect the devices containing the recorded information.
Ginga acknowledged that after the stolen customer account and identification information had been loaded onto blank ATM cards, he and his conspirators used those cards to take approximately $985,000 from Citibank ATMs in New Jersey, New York and Connecticut.
The charges to which Ginga pleaded guilty arose from a larger investigation into a skimming scheme that targeted customers in the tri-state area in 2012 and early 2013. Together, the schemes cost a number of banks a total of approximately $5 million in cash stolen from their customer accounts.
Of the nine others charged in relation to the wider scheme, all Romanian nationals who lived in Queens, eight are in custody. The leaders of the scheme, Marius Vintila, 31, and Bogdan Radu, 30, were charged by criminal complaint on July 10, 2013. Vintila and Radu designed and created the actual skimming devices and pinhole cameras and recruited individuals, including Ginga, to install them on bank ATMs.
Other charged conspirators, including Ginga, Marius Cotiga, 35, Ioan Leusca, 30, Dezso Gyapias, 28, Constantin Pendus, 29, Emil Revesz, 30, Florin Apetrei, 18 and another individual charged as “FNU LNU” (name unknown)installed the devices designed by Vintila and Radu onto bank ATMs and used fraudulent ATM cards to steal millions of dollars. They used hats, jackets, scarves and sunglasses to disguise themselves while installing the devices and while using the cards to withdraw money.
Ginga, Cotiga, Leusca, Gyapias, Pendus, Revesz, Apetrei, and Radu are in custody and being held without bail. Vintila and the unnamed individual remain at large.
The bank fraud conspiracy charge to which Ginga pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge carries a mandatory, consecutive penalty of two years in prison and a maximum $250,000 fine. Sentencing is currently scheduled for Dec. 18, 2013.
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, along with special agents of Immigration and Customs Enforcement, Homeland Security Investigations in Newark, under the direction of Andrew M. McLees, with the investigation.The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
As for the defendants charged in pending complaints, the charges and allegations are merely accusations, and the defendants are considered innocent unless and until proven guilty.
13-360
Defense counsel:Warren Sutnick Esq., Hackensack, N.J.
Ginga Information
Former Pennsville, N.J., Police Officer Sentenced to Prison for Obstructing Child Pornography InvestigationRead the Press Release
CAMDEN, N.J. – A former Pennsville, N.J., police officer was sentenced today to 15 months in prison for obstructing the FBI’s investigation of his alleged possession of child pornography, U.S. Attorney Paul J. Fishman announced.
Robert Waterman, 32, of Wrightstown, N.J., previously pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with one count of obstruction of a federal investigation in connection with his destruction of a computer hard drive.
According to the indictment and statements made in court:
Waterman was formerly a police officer with the Pennsville Police Department. On March 4, 2010, while he was still a member of that department, FBI special agents told Waterman that he was being investigated for alleged possession of child pornography. During the plea hearing, Waterman admitted that following this interview with the FBI, he located a hard drive in his garage and placed it in his patrol car. Waterman admitted that he then broke apart the hard drive’s circuit board into small pieces while in his patrol car at the police department. Waterman admitted he did this to obstruct the FBI’s investigation.
In addition to the prison term, Judge Kugler sentenced Waterman to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, with the investigation. He also thanked the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan, and officers of the Pennsville Police Department, under the direction of Police Chief Allen J. Cummings, for their cooperation and assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Matthew J. Skahill and Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Assistant Federal Public Defender Maggie Moy Esq., Camden
13-358Father and Son Plead Guilty to Million-Dollar Bulk Mail Fraud Through New Jersey-Based International Mailing CompanyRead the Press Release
NEWARK, N.J. – The father and son operators of Clevett Worldwide Mailers LLC, a Succasunna, N.J., bulk mailing house, today admitted to defrauding clients of more than $1 million through a fraudulent bulk-mailing scheme in which they shredded millions of pieces of mail rather than delivering them, U.S. Attorney Paul J. Fishman announced.
Harold Clevett, 68, of Middlesex, N.J., and Mark Clevett, 37, of Randolph, N.J., pleaded guilty before U.S. District Judge Kevin McNulty to one count of conspiracy to commit wire fraud charged in an indictment against them.
According to documents filed in this case and statements made in court:
Mark Clevett owned, and both Clevetts operated, Clevett Worldwide Mailers, which contracted with international and domestic customers to handle large mailings. Customers sent their mail jobs to Clevett Worldwide Mailers for sorting, addressing and delivery to the post office. The company received fees from their customers for each piece of mail and for the total weight of the mail that it handled.
During their guilty plea proceedings, both father and son admitted that rather than sending their clients’ mail as contracted, they directed their employees to throw away all or part of it, and even called in a shredding company to destroy unsent mail.
Mark and Harold Clevett also acknowledged they charged their customers for the full amount of the mailings, even sending some of their customers fraudulent postal forms to make it appear as though the mailings were delivered. The pair admitted that between 2007 and June 2011, they discarded and shredded nearly 3 million pieces of customer mail and reaped nearly $1 million in illicit profits.
The wire fraud conspiracy charge to which the Clevetts pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense. Sentencing for both defendants is scheduled for Dec. 18, 2013.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s pleas.The government is represented by Assistant U.S. Attorneys Rahul Agarwal and Michael Robertson of the U.S Attorney’s Office in Newark.
13-357
Defense counsel:
Harold Clevett: Brian J. Neary Esq., Hackensack, N.J.
Mark Clevett: Don Larsen Esq., Montville, N.J.
Clevett, Harold and Mark Indictment
Bergen County, N.J., Loan Officer Pleads Guilty to Role in $2 Million Mortgage FraudRead the Press Release
CAMDEN, N.J. – A loan officer admitted today to conspiring to defraud financial institutions as part of an approximately $2 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on town homes and other real estate in three states, U.S. Attorney Paul J. Fishman announced.
Raffi Oghlian, 38, of Westwood, N.J., pleaded guilty today, before U.S. District Judge Jerome B. Simandle in Camden federal court, to an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Oghlian worked for a period in 2008 as a loan officer at MJS Lending Inc., in Hasbrouck Heights, N.J., which was in the business of making mortgage loans.
During his guilty plea proceeding, Oghlian admitted that he conspired with others to profit from the sale of over-priced homes in Newark, N.J., and Atlanta, as well as properties in Naples, Fla., owned by developers seeking to sell off inventory. He acknowledged that as part of the conspiracy, he and his conspirators obtained mortgage loans for unqualified borrowers using fraudulent loan applications and other documents.
Oghlian’s conspirators recruited “straw buyers” to purchase those properties at the inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans. Oghlian created false and fraudulent loan applications that contained false information, concerning, among other things, the straw buyers’ employment, income, assets and intended use of the properties. Oghlian also admitted creating false documents to support the phony loan applications.
Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Oghlian’s co-conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles. For his part on the conspiracy, Oghlian earned fees as the loan officer of the seven transactions in which he participated.
In all, the conspiracy caused approximately $2 million to be released from MJS Lending.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for March 13, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and IRS – Criminal Investigation, Newark field office, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their roles in the ongoing investigation.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
13-359Defense counsel: John Klotz Esq.,Clifton, N.J.
Oghlian Information
Newark Man Federally Charged with Convenience Store Robbery SpreeRead the Press Release
NEWARK, N.J. – A man who allegedly committed six armed robberies of Newark convenience stores – including the same grocery twice within a week – has been federally charged in connection with the spree, U.S. Attorney Paul J. Fishman announced.
Larry McRae, 26, of Newark, is charged by complaint with six Hobbs Act robberies and one count of discharging a firearm in furtherance of a crime of violence. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained.
According to the complaint unsealed today:
From June 30, 2012 through Sept. 15, 2012, McRae entered the convenience stores on six different occasions, robbing the store clerks at gunpoint. During the robbery of the Moroni Deli on Sept. 15, 2013, he discharged one round from a handgun as he exited the store. McRae was apprehended by members of the Newark Police Department later that morning and has been in state custody since that time.
The dates and locations of the robberies were as follows:
Date
Location
Moroni Deli
Sept. 5, 2012
P&T Grocery
Sept. 1, 2012
P&T Grocery
Aug. 29, 2012
New B&C Meat Market
June 30, 2012
Arvelo Mini Market
June 30, 2012
Angel Mini Market
Each of the Hobbs Act robbery charges carries a maximum potential penalty of 20 years in prison. The discharging a firearm in furtherance of a crime of violence charge carries a mandatory minimum penalty of 10 years in prison to run consecutive to any sentence that he receives for the Hobbs Act robbery charge and a maximum potential penalty of life in prison. Each of the seven counts also carries a maximum $250,000 fine.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and the Newark Police Department, under the leadership of Director Samual A. DeMaio and Chief Sheilah A. Coley for their excellent work on the case.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and the allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-355
Defense counsel: Assistant Federal Public Defender John Yauch Esq., Newark
McRae, Larry Complaint
New Jersey U.S. Attorney’s Office Seeks to Forfeit Assets of Unlicensed Money Transmitter TrustcashRead the Press Release
NEWARK, N.J. – The New Jersey U.S. Attorney’s Office today filed a civil asset forfeiture complaint seeking the forfeiture of hundreds of thousands of dollars held in bank accounts previously seized by special agents of the U.S. Secret Service from an Atlanta-based unlicensed money transmitting business, U.S. Attorney Paul J. Fishman announced.
The complaint alleges that the assets are property involved in, or traceable to, deposits made into and through TCash Ads Inc. and its affiliate, Trustcash Holdings Inc. (“TCash”), in operating the illegal virtual currency service.
According to the complaint filed in Newark federal court:
TCash is an online payment processing service that enables individuals to anonymously purchase goods and virtual currency credits from entities who are registered with the service. Users can enter any number of national bank locations and deposit cash into a TCash account. TCash accounts can be used to pay any TCash-registered entity, including virtual currency exchanges and off-shore accounts in Canada, Cyprus, the Philippines, China, Nepal, Australia and elsewhere.
The service’s website offers deposit, charge, and mobile payment as methods to process payments, advertising that it is “a leader in payment processing, and offers a powerful suite of payment services…” The website also indicates that if a customer uses a credit card, it will be billed as “TCash Ads Inc,” and that the service has the ability to accept payments from credit cards, e-checks, online bank accounts and cash and to provide customer anonymity.From as early as 2008 through 2012, TCash facilitated the transmission of millions of dollars, including transactions involving individuals in New Jersey.
Federal law requires every financial institution that operates as a money transmitting or service business (MTB) to be licensed in the state in which it is operating and to be registered with the Treasury Department through the Financial Crimes Enforcement Network (FinCEN). TCash does not possess the appropriate license in any state in which it appears to operate – including New Jersey, Georgia, California, Texas, New York and Delaware – and is not registered with FinCEN.
* * *
Civil forfeiture cases are “in rem” proceedings – meaning they are proceedings against things, not persons or entities who allegedly committed underlying unlawful acts. The law permits persons claiming an interest in the property an opportunity to appear and present their cases that they are innocent owners of the property and the property should not be forfeited.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of James Mottola, Special Agent in Charge of the Newark Office, and support from FinCEN, a bureau within the U.S. Department of the Treasury, with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Evan S. Weitz of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit and Aaron Mendelsohn of the office’s Economic Crimes Unit in Newark.13-353
Defense counsel: Douglas R. Jensen Esq., New York
TCash Complaint
Neptune Township, N.J., Man Indicted for Shooting of Cab Driver and Several Armed Robberies in Monmouth CountyRead the Press Release
TRENTON, N.J. – A federal grand jury in Trenton, N.J., returned an indictment today charging a Neptune Township, N.J., man with shooting a cab driver during a 24-hour run of armed robberies in New Jersey shore-area towns, U.S. Attorney Paul J. Fishman announced.
Quam Wilson, 23, is charged in the 11-count indictment with five counts of committing a Hobbs Act robbery, five counts of using a firearm during a crime of violence and one count of possession of a firearm by a previously convicted felon.
Wilson was initially arrested and charged by federal criminal complaint with the conspiracy and firearms counts on March 13, 2013. He appeared on June 3, 2013, before U.S. Magistrate Judge Lois H. Goodman, who remanded him to federal custody pending trial. Wilson will be arraigned on the indictment on a date to be determined.
According to the indictment unsealed today and other documents filed in this case:
Wilson engaged in a crime spree that began at approximately 5:00 a.m. on Nov. 13, 2012, when he shot and robbed a cab driver in Asbury Park. The victim, who survived, sustained a single gunshot wound to the head and was taken to Jersey Shore University Medical Center. Wilson took the cab driver’s identification and debit card during the robbery.
Wilson then proceeded to a Shell gas station located in Ocean Township at approximately 7:00 a.m. There, he approached a gas station attendant and, while brandishing a handgun, robbed him of cash and fled the area.
Later that morning, Wilson attempted to obtain money from the cab driver’s bank account from several area banks. Suspecting that a theft was taking place, a bank employee confiscated the identification and debit card from Wilson and contacted police.
At approximately 9:00 p.m. that same day, Wilson committed an armed robbery at a taxi stand in Long Branch, again while brandishing a handgun.
During the early morning hours of the next day, Nov. 14, 2012, Wilson robbed an Exxon gas station in Red Bank at gunpoint.
A short time later, Wilson entered a Quick Check convenience store in Neptune Township. Again, he pointed a handgun at a cashier and demanded money.
Wilson was arrested at approximately 10:00 p.m. by several police officers in Asbury Park, where he had been hiding in an attic.
Each count of Hobbs Act robbery (Counts One, Three, Five, Seven and Nine) carries a maximum potential penalty of 20 years in prison. The charge of using a firearm during a crime of violence (Counts Two, Four, Six, Eight and Ten) carries a maximum potential penalty of life in prison and a mandatory minimum sentence of 10 years in prison for a conviction on Count Two (which charges discharging a firearm in connection with robbing the cab driver), and 25 years for each subsequent count of conviction, each of which must run consecutively to one another and to any other prison term. The charge of possession of a firearm by a convicted felon (Count Eleven) carries a maximum potential penalty of 10 years in prison. Each of the counts also carries a maximum $250,000 fine.U.S. Attorney Fishman praised special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, with the investigation. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, Asbury Park Police Department, Ocean Township Police Department, Long Branch Police Department, Neptune Township Police Department and the United States Marshals Service Fugitive Task Force for their excellent work in the investigation and apprehension of Wilson.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-354
Defense counsel: Edward Bertuccio Esq. Eatontown, N.J.
Wilson, Quam Indictment
Husband and Wife, Two Others Convicted at Trial for $3 Million South Jersey Time Share Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A federal jury convicted a husband and wife and two others today for conspiring in a $3 million conspiracy to scam customers by offering phony consulting services to owners of timeshares through the New Jersey-based Vacation Ownership Group LLC, U.S. Attorney Paul J. Fishman announced.
The jury returned the verdict after two days of deliberation following a seven-week trial before U.S. District Judge Noel L. Hillman in Camden federal court.
Four defendants – Adam Lacerda, 28, and Ashley Lacerda, 32, both of Egg Harbor Township, N.J.; Ian Resnick, 37, of Abescon, N.J.; and Genevieve Manzoni, 46, of Lake Worth, Fla. – were convicted of one count of conspiracy to commit mail and wire fraud. Adam Lacerda was also convicted of nine counts of mail fraud and three counts of wire fraud. Ashley Lacerda was convicted of one count of mail fraud and four counts of wire fraud. Resnick was convicted of three counts of mail fraud and three counts of wire fraud. Manzoni was also convicted of one count of mail fraud.
A fifth defendant, Joseph Diventi, 32, of Somers Point, N.J., was acquitted of the two counts with which he was charged.
According to documents filed in this case and the evidence presented at trial:The defendants schemed to defraud hundreds of timeshare owners by offering fraudulent consulting services through their company, the Vacation Ownership Group (now VO Financial). Adam Lacerda, the company founder, president and chief executive officer, devised the company’s fraudulent sales pitches. He directed his sales force to tell numerous lies to VO customers, including that VO worked with the banks holding the customers’ loans, would use money sent by customers to pay off the customers’ loans on their timeshares, and could cancel customers’ timeshares with money back. His wife Ashley Lacerda, the company vice president and chief operating officer, sent fraudulent contracts to customers and managed the office.
Resnick, a convicted bank robber, started as a salesman giving the fraudulent sales pitch but became Adam Lacerda’s enforcer, with the title “director of compliance.”
Genevieve Manzoni was a top VO sales representative who falsely told one victim she worked with a bank, another victim that she worked with a timeshare developer.
The 14 victims who testified at trial – including business executives, veterans, senior citizens, a lawyer and a professor – were defrauded out of a total of tens of thousands of dollars by the defendants’ sophisticated scheme.
Each count of which the defendants were convicted carries a maximum potential penalty of 20 years in prison $250,000 fine, or twice the gain or loss caused by the offense. Sentencing before Judge Hillman is scheduled for Dec. 12, 2013 for Resnick and Manzoni and Dec. 13, 2013, for the Lacerdas.
To date, 13 other members of the VO Group have pleaded guilty to conspiring to commit mail fraud and wire fraud in connection with the scheme.
U.S. Attorney Fishman credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Assistant Special Agent in Charge Michael Mikulka, Newark Field Office, New York Region, for the investigation. He also thanked the N.J. Department of Labor and Workforce Development for its assistance.
The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
13-356
Defense counsel:
Adam Lacerda: Mark E. Cedrone Esq., Philadelphia
Ashley Lacerda: Charles Nugent Esq., Marlton, N.J.
Ian Resnick: Michael E. Reilly Esq., Philadelphia
Genevieve Manzoni: Ralph A. Jacobs Esq., Philadelphia
Joseph Diventi: Brian Stephen O'Malley, Haddon Heights, N.J.South Jersey Mortgage Fraud Fact Sheet Final
Former Traffic Safety Service LLC Vice President Pleads Guilty to Tax EvasionRead the Press Release
NEWARK, N.J. – A former vice president at a South Plainfield, N.J., traffic safety equipment business admitted today to evading income taxes on more than $2 million in withdrawals he made from the business for his own use, U.S. Attorney Paul J. Fishman announced.
Anthony R. Pecoraro, 50, of Colts Neck, N.J., pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
Pecoraro worked in 2008 and 2009 at Traffic Safety Service LLC, which provided traffic safety equipment and other traffic related services to local and state municipalities and private businesses. In connection with his position as a vice president, he had access to the company’s business account.
During his guilty plea proceeding, Pecoraro admitted he wrote checks for unauthorized cash withdrawals for a total of approximately $2,126,200 between June 2008 and December 2009, which he took for personal use. Pecoraro acknowledged he failed to report this money as taxable income for calendar years 2008 and 2009 in the amounts of $563,800 and $1,562,400, respectively, and that if he had reported the additional cash on his income tax returns he would have owed the government approximately $733,970.
The charge to which Pecoraro pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 4, 2013.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark; and IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
13-351
Defense counsel: John McDonald Esq., Somerville, N.J.Pecoraro, Anthony Information
Edison, N.J., Man Pleads Guilty to Production, Distribution of Child Sex Abuse ImagesRead the Press Release
TRENTON, N.J. - An Edison, N.J., man who once worked as a school crossing guard admitted today to taking compromising photographs of a naked child and distributing them and hundreds of other photographs of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
Kenneth Christensen, 44, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of production of child pornography and one count of distribution of child pornography. He has been detained since his arrest in February 2013.
According to documents filed in this case and statements made in court:During his guilty plea proceeding, Christensen – who worked as a school crossing guard in Metuchen, N.J., prior to his arrest – admitted that in 2012, he sent four individuals emails containing several hundred images of child pornography, including sadistic and masochistic conduct. Christensen acknowledged he distributed more than 600 such images.
Christensen also admitted that some of the files he distributed were photographs he took himself, including in his own bedroom, of a naked, prepubescent child who was bound in some of the images.
The production count carries a maximum potential penalty of 30 years in prison and a mandatory minimum sentence of 15 years in prison. The distribution count carries a maximum potential penalty of 20 years in prison and mandatory minimum sentence of five years in prison. Each count also carries a maximum $250,000 fine. Christensen is also required to register as a sex offender. Sentencing is scheduled for Dec. 9, 2013.
U.S. Attorney Fishman praised special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
13-352
Defense counsel: Assistant Federal Public Defender K. Anthony Thomas, Newark
Christensen, Kenneth Information
New York Man Admits Role in Foreign Student Visa Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted his role in a widespread foreign student visa fraud that took place in Iselin and Jersey City, U.S. Attorney Paul J. Fishman announced.
Manamadurai Somalingam, 64, of Pelham, N.Y., pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of conspiring to commit visa fraud and one count of conspiring to conceal and harbor illegal aliens for private financial gain.
According to documents filed in this case and statements made in court:
Somalingam admitted that from March 2011 through May 2012, while he was the owner of a school called PC Tech Learning with campuses in Iselin and Jersey City, he engaged in a conspiracy to obtain student visas for foreign citizens who were not eligible for such visas. Somalingam admitted that he falsely certified that a woman he hired to work for him at the Jersey City campus of PC Tech was eligible for a student visa even though he knew that she would be working full-time and was not eligible.
He also admitted that he never terminated a foreign citizen’s student status as long as that individual paid his tuition fees, even though Somalingam, as the primary designated school official for PC Tech, was required to terminate any student who failed to make proper progress in his studies.
The conspiracy to commit visa fraud charge to which Somalingam pleaded guilty is punishable by a maximum potential penalty of five years in prison, and the conspiracy to harbor illegal aliens charge is punishable by a maximum potential penalty 10 years in prison. Both offenses are also subject to a maximum fine of $250,000. Sentencing before U.S. District Judge Anne E. Thompson is scheduled for Dec. 5, 2013.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shana W. Chen of the Economic Crimes Unit in Newark.
13-350
Defense counsel: Timothy R. Anderson Esq., Red Bank, N.J.Somalingam Information
Four Men Charged with Conspiring to Engage in Sex Trafficking of A MinorRead the Press Release
NEWARK, N.J. – Four men from Haverstraw, N.Y., and Philadelphia, Pa., have been charged in federal court with conspiring to engage in the sex trafficking of a minor, U.S. Attorney Paul J. Fishman announced.
Karl Venord, 30, a/k/a “Dreadhead,” and Samuel Verrier, a/k/a “Dre,” 35, both of Philadelphia, were charged by complaint with conspiring to engage in the sex trafficking of a minor. Both are scheduled to appear in Newark federal court later today before U.S. Magistrate Judge Stephen C. Mannion.
Varian Charles, 28, a/k/a “Bob,” of Philadelphia, was indicted August 27, 2013, by a federal grand jury for conspiring to engage in the sex trafficking of a minor. He was previously charged with the same offense in a criminal complaint and appeared in Camden federal court on July 24, 2013, before U.S. Magistrate Judge Ann Marie Donio, where he was ordered detained.
Wilbur Senat, 23, a/k/a “Wilby,” of Haverstraw, was charged in a criminal complaint with conspiring with Charles to engage in the sex trafficking of a minor. He appeared in Newark federal court on August 6, 2013, before U.S. Magistrate Judge Cathy L. Waldor, where he was ordered detained.
According to the documents filed in this case:
In the summer of 2011, the minor victim met Senat in upstate New York. Shortly after they met, Senat allegedly took the minor victim to a motel in Nyack, N.Y. At the motel, Senat forced the victim to engage in commercial sex acts with various individuals, who paid Senat money in exchange for the sex acts performed by the minor victim.
Shortly after this incident, Senat allegedly threatened the victim that if she did not agree to leave New York with him, her family would be harmed. As a result of these threats, the victim agreed to leave with Senat. Senat then purchased tickets for himself and the victim to travel from New York City to Philadelphia via public transportation.
Upon arriving in Philadelphia, the victim and Senat were picked up by Charles. Charles took them back to his house in Philadelphia, where Senat and Charles told the victim that she would be staying at Charles’ house in order to engage in prostitution. While at Charles’ house, the victim was forced to have sex with various individuals, who paid Senat and Charles in exchange for the sex acts performed by the victim. While the victim was staying at Charles’ house, she was also physically abused by Senat and Charles.
While at Charles’ house, the victim met Verrier. Verrier took the victim from Charles and told her that she could make more money working for him. Verrier then brought the victim to various clubs in Philadelphia, where he instructed her to solicit club patrons for sex acts in exchange for money.
In late August 2011, after the victim began working for Verrier, he introduced her to Venord. Venord and Verrier asked the victim to accompany them on a car ride to New Jersey. The victim agreed, because she thought she would be taken to visit her family member who lived in New Jersey.
During the drive to New Jersey, Venord and Verrier told the victim that they intended to blackmail an individual who was in New Jersey. Venord and Verrier told the victim that she was to have sex with this individual and take photographs of him, and that they would use these photographs to blackmail him.
Venord and Verrier drove the victim to Bordentown, N.J., to locate the individual that they intended to blackmail. After locating the individual outside a bank, Venord and Verrier attempted to have the victim proposition the individual, but they were unsuccessful in this attempt.
The count of conspiracy to engage in the sex trafficking of a minor is punishable by a maximum statutory penalty of life in prison. It also carries a maximum fine of $250,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Sarah Wolfe in Trenton and Courtney M. Oliva in Newark.
The charges and allegations summarized above are merely accusations and the defendant is considered innocent unless and until proven guilty.
13-349Defense counsel:
Venord and Verrier: TBD
Charles: Richard Coughlin Esq., Assistant Federal Public Defender, Camden
Senat: Michele Ann Adubato Esq., Bayonne, N.J.Charles Indictment
Venord, Karl, et al., ComplaintUnion County, N.J., Woman Convicted of Fraud Leading to Theft of $7 Million in Charity HIV and Cancer MedicationRead the Press Release
Medicines had been donated to be used for indigent patients
TRENTON, N.J. – A Union County, N.J., woman was convicted today for her role in defrauding a charity program out of more than $7 million in donated HIV and cancer medication by using her access to a company hired to administer the program, U.S. Attorney Paul J. Fishman announced.
Lateefah McKenzie Body, 35, of Linden, N.J., was convicted of one count of conspiracy to commit mail fraud and nine counts of mail fraud following a two-week trial before U.S. District Judge Mary L. Cooper in Trenton federal court. The jury deliberated for one day before finding McKenzie Body guilty on all counts.
On Nov. 13, 2012, Keisha Jackson, 47, of Perth Amboy, N.J., and Jameshia Bryant, 27, of South River, N.J., pleaded guilty to related charges and admitted their involvement in the fraud conspiracy. They are awaiting sentencing.
According to documents filed in this case and the evidence at trial:
A pharmaceutical company donated millions of dollars’ worth of FDA-approved prescription medicines – including for the treatment of HIV and cancer – at no cost to qualified patients experiencing financial difficulties. Jackson, Bryant, and McKenzie Body were all, at various times, employed as customer service representatives at a corporation hired to provide administrative support in operating the donated medicines program. They were responsible for receiving applications for the program, entering the applications into the computer system, and using the computer system to cause the donated medicines to be delivered to the physicians of patients who met certain eligibility criteria, including financial status.
As part of the scheme, McKenzie Body entered approximately 600 fraudulent orders into the company’s system, causing medicines to be delivered to Jackson’s home and other addresses controlled by those involved in the scheme. After McKenzie Body was terminated from the company for unrelated reasons, McKenzie Body enlisted Bryant to take over entering fraudulent orders. Bryant agreed, and entered approximately 950 fraudulent orders, again causing medicines, which could then be resold at a profit, to be delivered to Jackson’s home and other addresses controlled by those involved in the scheme.
Each of the 10 counts is punishable by a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing for McKenzie Body is scheduled for Dec. 12, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Andrew Leven of the Healthcare and Government Fraud Unit and Danielle Corcione of the General Crimes Unit in Newark.13-348
Defense Counsel: James Patton Esq., Livingston, N.J.Newark Man Charged with Producing Child Pornography for Recording His Sexual Abuse of GirlRead the Press Release
NEWARK, N.J. – A Newark man is expected to make his initial court appearance today on charges of sexual exploitation of a prepubescent girl after allegedly abusing her repeatedly and filming the abuse, U.S. Attorney Paul J. Fishman announced.
Pedro Rios, 57, is charged by complaint with two counts of sexual exploitation of a child. He is currently in state custody on related charges and is scheduled to appear in Newark federal court today before U.S. Magistrate Judge Steven C. Mannion.
According to the complaint:
Law enforcement officers executed a search warrant at Rios’s home in Newark on Feb. 5, 2013. A forensic review of the computer equipment seized revealed several video files of child pornography which appear to be self-produced and allegedly depict Rios on camera engaging in sexually explicit conduct with a prepubescent female in the rear of a cab of a tractor trailer truck.
Law enforcement officers identified and interviewed a female, who allegedly said Rios would periodically drive her to his tractor trailer truck in Union County, N.J., where he would undress her and have sexual contact and sexual relations with her and record the encounters. Rios allegedly threatened to hurt the victim’s family if she told anyone.
Each charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and the N.J. Regional Computer Forensics Laboratory with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes 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.
13-346
Defense counsel: Brian J. Neary Esq., Hackensack, N.J.
Rios Complaint
Bergen County, N.J., Man Arrested for Making False Report of Kidnapping of Online “Teenage Girl” to U.S. EmbassyRead the Press Release
NEWARK, N.J. – A Bergen County, N.J., man who allegedly used the internet and social media to create a fictitious high school girl, used that fake identity to establish an online relationship with another person and then falsely reported the girl’s kidnapping to a U.S. Embassy was arrested today by federal officials, U.S. Attorney Paul J. Fishman announced.
Andriy Mykhaylivskyy, a/k/a/ “Andriy Haddad,” 18, of Rutherford, N.J., was arrested this morning and charged by complaint with making false statements to a United States official. He is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint:
In late August 2012, Mykhaylivskyy, allegedly posing as Kate Brianna Fulton, began an online relationship with a high school classmate identified in court papers as “Individual One.” Law enforcement investigation determined Kate Fulton was a fictitious person created by Mykhaylivskyy on Facebook using photographs of an actual high school student taken from an unsecured Facebook page without her knowledge or permission.
On July 2, 2013, Mykhaylivskyy, using an alias, called the U.S. Embassy in Chisinau, Moldova, and reported that his girlfriend, “Kate Fulton,” a United States citizen, had been kidnapped in Bulgaria on June 28, 2013. The online relationship continued until Kate’s alleged kidnapping, with Mykhaylivskyy maintaining the relationship online and via text messaging.
Mykhaylivskyy independently befriended Individual One, claimed to know Kate Fulton, and confirmed details regarding Kate Fulton.
On July 8, 2013, the U.S. Embassy in Sofia, Bulgaria, received a telephone call from Individual One seeking assistance regarding the kidnapping of Kate Brianna Fulton, whom Individual One reported was kidnapped while she was vacationing in Burgas, Bulgaria. Individual One provided the Embassy with tweets that Individual One received on June 29, 2013, a day after the purported kidnapping, from Kate Brianna Fulton’s Twitter account. One tweet was of a number that Individual One believed to be Kate’s local Bulgarian cell phone and the other read, “Someone help me.”
After receiving the second report of the kidnapping, federal agents from the U.S. Embassy Sofia, Bulgaria, Regional Security Office and the headquarters of the Bureau of Diplomatic Security in Northern Virginia engaged in an extensive investigation to locate Kate Brianna Fulton and also received assistance from Bulgarian law enforcement. Bulgarian police combed hotels, hostels and other lodgings in Burgas seeking information on the missing girl and the Bulgarian border police searched incoming passenger records.
This law enforcement investigation revealed that Kate Brianna Fulton was a fictitious person created by Mykhaylivskyy, and that the high school student whose pictures were used without her permission was safe and in the United States.
The count of making false statements with which Mykhaylivskyy is charged is punishable by a maximum of five years in prison and a fine of $250,000.U.S. Attorney Fishman credited special agents of the U.S. Department of State’s Bureau of Diplomatic Security in Embassy Sofia, the DSS Office of Protective Intelligence Investigations, the DSS New York Field Office and the New York and Newark Joint Terrorism Task Forces, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-347Mykhaylivskyy Complaint
Atlantic County, N.J., Man Charged with ShootingRead the Press Release
NEWARK, N.J. – An Atlantic County, N.J., man was arrested today for allegedly shooting four species of hawks in the residential neighborhood where he lived, U.S. Attorney Paul J. Fishman announced.
Robert Losasso, 68, of Somers Point, N.J., was taken into custody today by special agents of U.S. Fish and Wildlife Service, Office of Law Enforcement, and charged by complaint with six counts of violating the Migratory Bird Treaty Act. Losasso is scheduled to appear this afternoon before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court.
According to the Complaint unsealed today:
Robert Losasso fatally shot, and attempted to fatally shoot, with a .22 caliber rifle and a .17 caliber pellet gun, both equipped with scopes, red-tailed hawks, sharp-shinned hawks, red-shouldered hawks, and Cooper’s hawks. These species are among the tens of thousands of birds of prey that migrate every year from Canada along the Atlantic Flyway through New Jersey. Residents of Somers Point reported to law enforcement that over a period of more than two and a half years they had observed more than 40 dead or injured birds of prey in or around their yards and had sustained what appeared to be bullet holes and pellet marks to their homes.
From December 2012 through April 2013, Losasso allegedly killed, or attempted to kill, three red-tailed hawks, one sharp-shinned hawk, one red-shouldered hawk, and one Cooper’s hawk, all of which are protected under the Migratory Bird Treaty Act. The Migratory Bird Treaty Act, which was enacted in 1918, implements in the United States protections afforded migratory birds under several international conventions to which the United States is a party. Breeding populations of red-shouldered hawks are listed as endangered on the State of New Jersey’s Endangered and Threatened Wildlife list. Sharp-shinned hawks and populations of Cooper’s hawks also have special protections under New Jersey state law.
The counts charged are strict liability crimes that carry a maximum potential penalty of six months’ imprisonment and a fine of $15,000 per count.
U.S. Attorney Fishman credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Resident Agent in Charge Carmine Sabia, with the investigation leading to the charges. He also thanked the N.J. Division of Fish and Wildlife, Bureau of Law Enforcement, and the Somers Point Police Department, for their roles in the case.
The government is represented by Assistant U.S. Attorney Kathleen P. O'Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-345
Losasso Complaint
Second Englishtown, N.J., Pharmacy Burglar Admits Conspiracy to Sell Stolen OxycodoneRead the Press Release
TRENTON, N.J. – A Brooklyn, N.Y., man today admitted his involvement in a plot to burglarize a pharmacy in Englishtown, N.J., and sell stolen narcotics for cash, U.S. Attorney Paul J. Fishman announced.
David Mordukhaev, 22, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of conspiracy to distribute oxycodone and possess oxycodone with intent to distribute.
According to documents filed in this case and statements made in court:
The Union Hill-Supremo Pharmacy in Englishtown was burglarized shortly after 4:00 a.m. on June 17, 2012. Mordukhaev and his fellow conspirators filled 17 garbage bags and two cardboard boxes with merchandise from the pharmacy, including approximately 1,988 dosage units of methylphenidate, 500 dosage units of hydromorphone, 300 dosage units of Opana (a trade name for oxymorphone) and 3,800 dosage units of oxycodone – all Schedule II controlled substances. The stock lost by the pharmacy was valued at $350,000. Mordukhaev admitted he stole the drugs knowing they would be sold for profit.
The conspiracy to distribute oxycodone charge to which Mordukhaev pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Dec. 3, 2013.
Mordukhaev’s co-conspirator, James Zarbailov, previously pleaded guilty before Judge Wolfson on May 9, 2013, to conspiracy to distribute and possess with intent to distribute oxycodone. Zarbailov will be sentenced on Oct. 3, 2013.
U.S. Attorney Fishman credited special agents of the FBI’s Red Bank Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and law enforcement officers from the Marlboro Township Police Department, under the direction of Police Chief Bruce E. Hall, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.13-344
Defense counsel: Lance Lazzaro Esq., Brooklyn, N.Y.
Mordukhaev, David Information
U.S. Attorney Paul J. Fishman Joins in Announcing New Anti-Carjacking Public Awareness CampaignRead the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishman joined Acting Essex County Prosecutor Carolyn A. Murray, Essex County Sheriff Armando Fontoura and Newark Police Director Samuel A. DeMaio today to announce the launch of a joint anti-carjacking public awareness campaign.
Aimed at raising awareness of the serious consequences carjackers face, the campaign will include billboards, bus placards and flyers. The message is that carjacking is a serious crime and those who engage in carjacking face severe consequences.
“Carjacking terrorizes victims and the communities in which they live and work,” U.S. Attorney Fishman said. “The penalty for these crimes is appropriately tough. Carjackers prosecuted federally can face decades in prison, far from home, in a system with no parole.”
“Carjacking is not the same as taking a stolen car for a joyride,” said Prosecutor Murray. “When you pull out a gun and demand someone’s vehicle that is a serious crime and the penalties are severe if you are convicted. We want to send that message to young people who sometimes seem to view carjacking as nothing more than a theft.”All of the billboards will be up by the end of the day. Three are up already in Newark just a short distance from the Leroy Smith Building at 50 West Market Street.
They are located at:- 4th Avenue and Broadway
- 61 Pennsylvania Avenue at the intersection of Parkhurst
- 97 Sussex Avenue
In the 1990s, Essex County led the nation in car theft. With advances in technology, increasingly vehicles are equipped with sophisticated anti-theft devices, making it almost impossible for an amateur to steal an unattended car. As a result, carjackings have been on the rise in Essex County.
For example, in 2009, Essex County had just over 200 carjackings. Every year that number has continued to climb. Recently, there have been more than 400 carjackings each year countywide. These crimes occur in the early morning hours and late at night. Sometimes they involve high-end cars, but very often modestly priced vehicles are targeted.
“Carjacking is the fastest growing and potentially the most dangerous of crimes against persons and property,” Sheriff Armando Fontoura pointed out. “This public education initiative was devised to warn that law enforcement has teamed up our anti-carjacking efforts and makes clear the serious and long-term consequences of committing such a crime.”
Newark Police Director DeMaio said, “The Newark Police Department has implemented several proactive and reactive initiatives to combat this plague including but not limited to joint task forces and specialized proactive units. In addition to educating our motorists on how to better protect themselves from would be carjackers, we are now endeavoring to educate the carjackers themselves. Lawmakers, prosecutors, and judges are taking these crimes very seriously and sending a message to criminals through stiff penalties for carjackings, some of which are prosecuted on the federal level.”
In response to the increase in incidents, a Carjacking Task Force was set up in 2010 by the U.S. Attorney Paul Fishman and then Acting Essex County Prosecutor Robert Laurino.
Since that time the Essex County Prosecutor’s Office has worked cooperatively with the U.S. Attorney’s Office; the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); the Newark Police Department; the U.S. Immigration and Customs Enforcement; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the New Jersey Attorney General’s Office; the New Jersey State Police; and the Essex County Sheriff’s Office.
Starting Aug. 1, East Orange, Belleville and Irvington Police Departments became a part of this initiative. Each department has sent officers to serve on the Carjacking Task Force. In addition, the Essex County Prosecutor’s Office continues to maintain a Special Prosecutions Unit. Three assistant prosecutors are assigned to that unit. It was established to seek swift justice in these cases.
In line with these efforts, the Essex County Prosecutor’s Office indicted eight defendants in recent weeks in carjacking cases. They include the following defendants:
Faquan Martin, 35, of Irvington, was indicted on 11 counts including conspiracy, carjacking, weapons possession, eluding and resisting arrest following an event on Nov. 20, 2012, in Newark. In addition to carjacking, Martin fled from the police causing a crash and creating a risk to the public.
Kalik Hollis, 19, and Andre Spencer, 19, both of East Orange, were both indicted in a seven-count indictment. Spencer is accused of carjacking someone in Belleville on Oct. 1, 2012. He is also accused of robbery. Hollis was indicted on knowingly receiving a 2006 Toyota Corolla. He is also charged with fleeing when the Belleville Police attempted to stop him.Terrell Walker, 19, of Irvington, and Malcolm Smith, 20, of Newark were indicted for a Nov. 26, 2012, carjacking in Newark. In addition to carjacking they are charged with aggravated assault and robbery. Walker is also charged with committing another carjacking in Newark on Dec. 19, 2012.
An 11-count indictment was returned charging Donald Moore, 19, of Newark, Messiah Arrington, 19, of Newark, and Magid Wheeler, 18, of Newark with various crimes related to a Jan. 6, 2013, carjacking. Wheeler and Arrington were involved in the carjacking of a 2013 Honda Accord. Three days later Moore fled in the same Honda, resulting in a police chase.
The U.S. Attorney’s Office has been working with investigators and prosecutors at the federal, state and local levels to select carjacking cases that are appropriate for federal prosecution. Since the formation of the anti-carjacking task force, the U.S. Attorney’s Office has prosecuted 37 defendants. Last month, the U.S. Attorney’s Office announced charges against five Essex County men for carjacking and related crimes.
Significant sentences arising out of federally prosecuted carjackings, and at which federal Bureau of Prisons facility those convicted are serving their time, include:
- Jahlil Thomas (who is featured on one of the billboards), 262 months; serving his sentence in Beaver, W.Va.
- Jerome Conover, 181 months; Ray Brook, N.Y.
- Taj Elliot, 147 months, Coleman, Fla.
- Amonra Jackson, 120 months, Beaumont, Texas.
- Alhakim Young, 130 months, Inez, Ky.
- Jermaine May, 118 months, Bruceton Mills, W. Va.
- Jirrod Parker, 150 months, Inez, Ky.
The federal charge of carjacking or attempted carjacking carries a maximum potential penalty of 15 years in prison; 25 years in prison if serious bodily injury results; and life in prison or the federal death penalty if death results. Using a firearm in furtherance of a crime of violence carries a minimum consecutive term of five years in prison if a firearm is possessed, seven years in prison if a firearm is brandished, 10 years in prison if a firearm is discharged and a maximum of life in prison. Each of these charges also carries a maximum $250,000 fine. There is no parole in the federal system.
“We are encouraged by this partnership of federal, state and local law enforcement to combat carjacking in our communities,” Murray said. “Our goal is to let carjackers know that we take these crimes very seriously and that the penalties they will face are considerable.”
“In addition to putting would-be criminals on notice, we want to alert the public to be cautious,” Prosecutor Murray said. “Don’t leave the keys in your car even to run in and drop the baby off at the babysitter’s. Don’t leave your doors unlocked as you drive around. Be alert. Be smart,” she added.13-343
Carjacking billboard - green cell
Carjacking Billboard - Parking Spot - Hallway
Carjacking Billboard - Seconds YearsFive Members of Massive Counterfeit Goods Conspiracy Plead GuiltyRead the Press Release
NEWARK, N.J. – Five members of a massive, international counterfeit goods conspiracy have pleaded guilty to their roles in the scheme, U.S. Attorney Paul J. Fishman announced.
Yi Jian Chen, 53, and Hui Huang, 33, both of Brooklyn; and Ning Guo, 40, of People’s Republic of China, pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to informations charging them each with one count of conspiracy to traffic in counterfeit goods. Guo also pleaded guilty to one count of money laundering conspiracy.
Jian Zhi Mo, 45, of Flushing, N.Y. and Yuan Feng Lai, 28, of New York City, pleaded guilty on August 12, 2013, before Judge Salas in Newark federal court to informations charging them each with one count of conspiracy to traffic in counterfeit goods.
According to documents filed in this case and statements made in Court:
From August 2008 through February 2012, the defendants ran an international counterfeit goods smuggling and distribution conspiracy. The defendants and others imported more than 35 containers of counterfeit goods – primarily cigarettes, handbags, and sneakers – into the United States from China in furtherance of the conspiracy. These goods, if legitimate, would have had a retail value of more than $300 million.
The conspirators sought help in importing counterfeit goods into the United States and used a corporation to import the goods through Port Newark-Elizabeth Marine Terminal in Elizabeth, N.J. This corporation was actually a front company set up by law enforcement to act as an importer. The conspirators imported the counterfeit goods using fraudulent customs paperwork, which, among other things, falsely declared the goods within the containers.
Certain conspirators controlled the importation of the counterfeit goods into the United States. Some conspirators managed the distribution of counterfeit goods once they arrived in the United States. Others paid individuals they believed controlled an importation company with connections at the port. In fact, these individuals were undercover law enforcement agents.
Some conspirators acted as wholesalers for the counterfeit goods, supplying retailers who sold counterfeit goods to customers in the United States. A number of conspirators, including Guo, also engaged in a money laundering conspiracy to disguise and conceal the source of what they believed to be the profits of certain unlawful activity, moving this money through banks in the United States, China, and elsewhere, to disguise the sources of the laundered funds.
Law enforcement introduced several undercover special agents to the conspirators. These undercover agents purported to have connections at the port, which allowed them to obtain containers that were on hold, get them released and pass them through to the conspirators. The conspirators paid the undercover agents more than $900,000 for these “services.”Undercover agents recorded dozens of phone calls and in-person meetings with various conspirators. The investigation also utilized several court-authorized wiretaps of telephones and electronic communications.
Roles of the Individual Defendants
- Ning Guo’s primary role in both conspiracies was to transport and store imported counterfeit merchandise for the conspirators after it arrived at the port. He was also involved in the actual importation of the goods from China. Guo communicated with the undercover agents in numerous recorded calls and meetings about importing counterfeit goods from China and clearing the goods through customs. Guo was also involved in an international money laundering scheme through which he and others laundered the proceeds of the counterfeit goods smuggling scheme.
- Jian Zhi Mo was introduced by Guo to an undercover agent in March 2011. Mo then began to meet regularly with undercover agents to provide false and fraudulent Customs paperwork to the agents relating to shipments of counterfeit goods. Mo also received counterfeit goods from undercover agents and transported the goods to locations controlled by other conspirators. Mo also paid the undercover agents hundreds of thousands of dollars as their “fees” for clearing the containers of counterfeit goods through customs.
- Yi Jian Chen was introduced to an FBI undercover agent in August 2010 by a conspirator, who said he wanted to import a container of counterfeit sneakers. A conspirator provided fraudulent customs paperwork to the agents and set up the delivery of a container of counterfeit goods to one of his customers. The buyer turned out to be defendant Chen. The agents engaged in several recorded conversations with Chen. At one of these meetings, Chen and Guo met with undercover agents in Linden, N.J., and Guo provided, on behalf of Chen, approximately $32,000 to ensure the counterfeit goods would be released from the port and delivered to a warehouse controlled by conspirators.
- Hui Huang was introduced to an FBI undercover agent in November 2011 by Chen. Huang subsequently had the agents clear two containers of counterfeit goods for Huang and a conspirator.
- Yuan Feng Lai provided undercover agents with cash and fraudulent customs paperwork to smuggle counterfeit goods into the United States. Lai also accepted money from the undercover agents, delivered it to money launderers and acted as a warehouse manager for one of the warehouses run by Guo.
The conspiracy to traffic in counterfeit goods count to which the defendants pleaded guilty is punishable by a maximum potential penalty of 10 years in prison and a fine of $2 million. The money laundering count to which Guo pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of $500,000 or twice the gain or loss caused be the offense. Sentencing for Mo and Lai is scheduled for Nov. 25, 2013. Sentencing for Guo, Chen and Huang is scheduled for Nov. 25, 2013.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees, for the investigation leading to this week’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Andrew Pak and Zach Intrater of the Computer Hacking and Intellectual Property section of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark and Nicholas Grippo of the U.S. Attorney’s Office in Trenton.
13-341
Defense counsel:
Guo: Richard Willstater Esq., White Plains, N.Y.
Chen: Jean Barrett Esq., Montclair, N.J.
Huang: Edgar Fankbonner Esq., New York
Mo: Stephen Dratch Esq., Livingston, N.J.
Lai: Peter Carter Esq., Assistant Federal Public Defender, NewarkGuo Information
Chen Information
Huang Information
Mo Information
Lai InformationElizabeth, N.J. Man Indicted for String of Gunpoint Robberies of New Jersey BanksRead the Press Release
NEWARK, N.J. – A federal grand jury today returned an indictment charging an Elizabeth, N.J., man with a series of gunpoint bank robberies throughout New Jersey, U.S. Attorney Paul J. Fishman announced.
Claude Williams, 61, was charged with six bank robberies and two counts of using a firearm in furtherance of a crime of violence when he was arrested in July 2012. Today’s indictment adds multiple counts, and Williams now faces one count of conspiracy to commit bank robbery, seven counts of bank robbery, one count of attempted bank robbery and eight firearms counts in connection with the alleged robbery spree. Williams will be arraigned on the indictment on a date to be determined.
According to documents filed in this case and statements made in court:
Between Sept. 26, 2011, and July 30, 2012, Williams committed seven armed bank robberies and attempted to rob an eighth bank. He used a similar procedure for each robbery: after entering the bank armed with a handgun and wearing a bandana, hooded sweat shirt or jacket and white gloves, Williams would vault over the counter and demand money from bank tellers at gunpoint.
Williams robbed, or attempted to rob, the following banks:
Date
Bank
Location
Financial Resources Federal Credit Union
Somerset, N.J.
Nov. 21, 2011
Somerset Savings Bank
Somerville, N.J.
Feb. 27, 2012
Provident Bank
Piscataway, N.J.
April 17, 2012
Provident Bank
Clifton, N.J.
May 22, 2012
Provident Bank
Piscataway, N.J.
June 20, 2012
Fulton Bank
Metuchen, N.J.
July 12, 2012
Unity Bank
Middlesex, N.J.
July 30, 2012
Unity Bank
North Plainfield, N.J.
In several of the bank robberies, Williams sent a conspirator into the bank to case it shortly before he entered to commit the robbery.
Prior to the July 12, 2012, robbery, an unarmed, off-duty police officer was parked across from the Unity Bank. The officer observed Williams leave the bank, get into the rear of the getaway car, and crouch down to hide. After noting the license plate number, the officer followed the car.
After an unsuccessful attempt to elude the officer, the getaway car stopped. Williams got out of the car and pointed his gun at the officer, forcing the officer to leave the scene without apprehending Williams and his accomplice.
Later, on Friday, July 27, 2012, and Saturday, July 28, 2012, law enforcement observed Williams driving in the vicinity of a Unity Bank in Somerset, N.J. On July 30, 2012, law enforcement again observed Williams and accomplice Andrea Dorsey – who has since pleaded guilty to her involvement in some of the robberies – in the vicinity of the bank. Law enforcement stopped the car blocks from the bank and arrested Williams and Dorsey, finding a handgun and white gloves inside the car.
Each of the bank robbery charges carries a maximum potential penalty of 25 years in prison. The attempted bank robbery charge carries a maximum potential penalty of 20 years in prison. The first of the eight counts of using a firearm in furtherance of a crime of violence carries a mandatory minimum penalty of seven years and a maximum of life in prison; each additional count carries a mandatory minimum penalty of 25 years and a maximum of life in prison. Each charge also carries a maximum $250,000 fine.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Somerset County Prosecutors Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield and Plainfield Police Departments for their excellent work.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-342
Defense counsel: Assistant Federal Public Defender Peter Carter Esq., NewarkWilliams Indictment
Former Carteret High School Vice Principal Sentenced to 37 Months in Prison for Possession of Child PornographyRead the Press Release
TRENTON, N.J. - A Rahway, N.J., man who was the vice principal at Carteret High School was sentenced today to 37 months in prison for possessing child pornography, U.S. Attorney Paul J. Fishman announced.
Nicholas Sysock, 54, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of possession of child pornography. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:Between May 2008 and March 2011, Sysock purchased from a company in Canada numerous DVDs that contained video recordings of child pornography. During a search of Sysock’s residence in October 2012, federal investigators found these DVDs and also found printed images featuring naked children. Sysock was arrested the same day. At the time of his arrest, Sysock was the vice principal of Carteret High School.
In addition to the prison term, Judge Cooper sentenced Sysock to five years of supervised release, with monitored computer use, mental health treatment and restrictions on contact with children.
U.S. Attorney Fishman praised inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
13-340
Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, Newark
Sussex County, N.J., Man Admits Luring Teen to Pennsylvania for Criminal Sexual Activity, Downloading Child PornographyRead the Press Release
NEWARK, N.J. – A Sussex County, N.J., man today admitted luring a teenage boy to Pennsylvania for sex, as well as downloading and receiving child pornography on his home computer, U.S. Attorney Paul J. Fishman announced.
Robert Mucha, 57, of Newton, N.J., pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to one count of enticing a minor to engage in criminal sexual activity and one count of receiving child pornography.
Mucha was arrested in his home on July 26, 2012. He was charged at the time with a single count of possessing child pornography and has been detained by law enforcement since then.
According to documents filed and statements made in court:In October 2010, Mucha convinced a teenage boy to travel from New Jersey to Pennsylvania to spend the day with him and then sleep over at Mucha’s apartment in Stroudsberg, Pa. After he was arrested in July 2012, Mucha admitted to sexual contact with the teenager.
Prior to his arrest, Mucha worked as a volunteer Emergency Medical Technician in Andover, N.J. He also previously taught band and Bugle Corps to teenagers in Belleville, N.J. and Lakewood, N.J.The count of enticing a minor to engage in criminal sexual activity to which Mucha pleaded guilty is punishable by a minimum potential penalty of 10 years in prison and a maximum of life in prison and a $250,000 fine. Sentencing is currently scheduled for Nov. 19, 2013.
Today’s guilty plea is part of Operation Holitna, an ongoing HSI-led investigation that originated in Boston. U.S. Attorney Fishman credited special agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation leading to today’s guilty plea. He also thanked the U.S. Attorney’s Office for the District of Massachusetts and the HSI Boston office.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or its online tip form at http://www.ice.gov/tips. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children at 1-800-843-5678 or http://www.cybertipline.com
The government is represented by Assistant U.S. Attorney Andrew J. Bruck of the U.S. Attorney’s Office Criminal Division in Newark.
13-337Defense counsel: Assistant Federal Public Defender Carol Gillen Esq., Newark
Mucha Information
Pennsylvania Couple Admits Using Stolen Identities to Scam Student Loan Money from Online UniversitiesRead the Press Release
CAMDEN, N.J. – An East Stroudsburg, Pa., couple admitted today to fraudulently obtaining at least $272,247 in student loan proceeds from Liberty University and American Public University by using stolen identities to have the money directed to addresses where they could intercept it, New Jersey U.S. Attorney Paul J. Fishman announced.
Stephanie Mitchell, 36, and Ronzell Mitchell, 37, pleaded guilty to separate informations charging each with one count of conspiracy to commit mail fraud. They entered their guilty pleas before U.S. District Judge Renée Marie Bumb in Camden federal court.
According to documents filed in this case and statements made in court:
From approximately Aug. 19, 2010, through March 21, 2012, the Mitchells fraudulently obtained U.S. Department of Education (ED) funds and converted them to personal use. Stephanie Mitchell regularly used a box at a UPS Store located in Montvale, N.J., that was opened using the name and driver’s license of another person. The pair then contacted online universities Liberty and American and posed as students for whom student loans had been issued, causing the proceeds of numerous credit balance checks and debit cards to be redirected to the UPS Store and a vacant house located in Stroudsburg, Pa.
During their guilty plea proceedings, Stephanie and Ronzell Mitchell admitted several specific instances in which they redirected student loans intended for others to addresses they controlled. Through this method, the Mitchells obtained approximately $272,247 in ED funds to which they were not entitled.
The count to which the Mitchells pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss caused by their offenses. Sentencing is currently scheduled for Nov. 18, 2013.
U.S. Attorney Fishman credited special agents of the ED Office of the Inspector General, Northeastern Regional Office, under the direction of Special Agent in Charge Brian Hickey; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria Kelokates, and special agents of the U.S. Secret Service, under the direction of James Mottola, Special Agent in Charge of the Newark Field Office, with the investigation.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.13-339
Defense counsel:
Ronzell Michell: Paul Brickfield Esq., River Edge, N.J.
Stephanie Mitchell: Susan Cassell Esq., Ridgewood, N.J.Mitchell, Ronzell Information
Mitchell, Stephanie InformationNewark, N.J., Man Pleads Guilty to CarjackingRead the Press Release
NEWARK, N.J. – A Newark man today admitted his role in a shotgun carjacking in Little Falls, N.J., on Oct. 30, 2011, U.S. Attorney Paul J. Fishman announced.
Hanzah Darby, 24, pleaded guilty to an indictment charging him with one count of theft of a motor vehicle by force, violence, and intimidation and one count of use of a firearm in furtherance of a crime of violence. He entered his guilty plea before U.S. District Judge Susan D. Wigenton in Newark federal court.
According to documents filed in this case and statements made in court:
During his guilty plea proceeding, Darby admitted that on Oct. 30, 2011, he and another individual were in the Little Falls area when they spotted a parked 2008 BMW 335 with passengers inside. Darby and his conspirator – who allegedly brandished a shotgun – approached the car and ordered the occupants out of the vehicle at gunpoint.
Ivan Lee, 25, of Newark, is charged with Darby in the indictment, and the charges against him remain pending.
Darby and Lee then took the car and fled the area. Law enforcement officers recovered the car in Newark on Nov. 7, 2011. Darby was standing next to it at the time.
The carjacking charge to which Darby pleaded guilty carries a maximum potential penalty of 15 years in prison. The firearm charge carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each of the two counts also carries a maximum $250,000 fine. Sentencing is currently scheduled for Nov. 18, 2013.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, officers of the Little Falls Police Department, under the direction of Chief John Dmuchowski; the New Jersey State Police, under the direction of Colonel Rick Fuentes; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s plea.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Criminal Division in Newark.
As for Lee, the charges and allegations contained in the indictment against him are merely allegations, and the defendant is considered innocent unless and until proven guilty.
13-338
Defense counsel: Timothy Donohue Esq., West Orange, N.J.
Darby, Hanzah et al. IndictmentSalesman Admits Role in Bribes-For-Test-Referrals Scheme Involving New Jersey Clinical LaboratoryRead the Press Release
NEWARK, N.J. – A Monmouth County, N.J. man pleaded guilty today to his role in a long-running bribes-for-test-referrals scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
Len Rubinstein, 42, of Holmdel, N.J., pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with conspiring to violate the Anti-Kickback Statute and the Travel Act, and with money laundering, and making cash payments of thousands of dollars to doctors on behalf of BLS.
Rubinstein is the 14th individual to plead guilty in connection with BLS’s sophisticated bribery scheme, which its organizers have admitted involved the payment of millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.
According to documents filed in this and other cases and statements made in court:
On April 9, 2013, federal agents arrested David Nicoll, 39, of Mountain Lakes, N.J.; Scott Nicoll, 32, of Wayne, N.J., a senior BLS employee and David Nicoll’s brother; and Craig Nordman, 34, of Whippany, N.J., a BLS employee and the CEO of Advantech Sales LLC – one of several entities used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Santangelo. In June, David and Scott Nicoll, Nordman, and four other associates of BLS pleaded guilty to charges related to their involvement. Santangelo pleaded guilty last month to charges relating to his role in the scheme. Ten employees or associates of BLS, and four physicians have pleaded guilty to their roles in the bribery scheme.
From May 2012 through April 2013, Rubinstein agreed with the Nicolls and others to pay doctors to refer patients to BLS for testing of blood specimens. He paid cash bribes to doctors as part of the conspiracy. Rubinstein admitted he used Delta Consulting Group LLC – an entity he controlled – to hide the money he received from BLS and used to make bribe payments to doctors.
Rubinstein faces a maximum potential penalty of five years in prison and a $250,000 fine on the bribery conspiracy charge and 20 years in prison and a $500,000 fine on the money laundering charge, or twice the gross gain or loss from the offense. Sentencing is scheduled for Nov. 12, 2013. He has also agreed to forfeit $250,000. The investigation has so far recovered more than $3 million through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell; IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joseph Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
13-335
Defense counsel: Charles Uliano Esq., West Long Branch, N.J.
Rubinstein Information
Monmouth County, N.J., Man Who Owned Trinidad Casino Charged with Evading Payment of More Than $1 Million in TaxesRead the Press Release
NEWARK, N.J. – A Monmouth County, N.J., man is expected to appear in federal court today on charges of tax evasion and failing to file federal personal tax returns on income derived from his ownership of a casino in Trinidad, resulting in a $1 million loss to the United States, U.S. Attorney Paul J. Fishman announced.
David Migliore, 50, of Brielle, N.J., was charged in a six-count indictment returned Aug. 1, 2013, by a federal grand jury in Newark charging him with three counts of tax evasion and three counts of willfully failing to file personal tax returns relating to tax years 2009, 2010, and 2011. Migliore surrendered this morning to special agents of IRS-Criminal Investigation and is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the indictment unsealed today:
Migliore owned several limited liability corporations in New Jersey, including Brielle Investment LLC; Brielle Investments & Management Co. LLC; and La Soufriere Maritime Inc. Migliore also owned Island Club casino in Trinidad and had authority over foreign bank accounts in Trinidad.
From 2009 to 2011, Migliore earned significant income from Island Club Casino, resulting in taxes due totaling more than $1 million. Migliore allegedly took steps to conceal his income and assets from the IRS, including: using unreported bank accounts in Trinidad to deposit personal income; using U.S. bank accounts in the names of his limited liability corporations and business entities to receive personal income from Island Club casino in Trinidad; using limited liability corporations and business entities to pay for personal expenses in New Jersey and elsewhere; placing personal property in the names of limited liability corporations and business entities; directing income from Island Club Casino in Trinidad to be transferred directly to vendors in the United States to pay for his personal expenses; directing employees of Island Club Casino to send his income from the casino to individuals in New Jersey via Western Union for his benefit; and directing individuals to pick up cash, which was income attributed to him, from Western Union offices in New Jersey.
Each count of tax evasion is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Each count of failing to file tax returns is punishable by a maximum potential penalty of one year in prison and a $100,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees in Newark; law enforcement officers from the Monmouth County Prosecutor’s Office, under the direction of Acting Monmouth County Prosecutor Christopher J. Gramiccioni; and police officers from Wall Township Police Department, under the direction of Chief Robert Brice, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Zahid N. Quraishi of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-334
Defense counsel: Robert Weir Esq., Red Bank, N.J.Migliore Indictment
Former Newark Police Officer Sentenced to Three Months in Prison for Conspiracy to Commit Public Housing FraudRead the Press Release
NEWARK, N.J. – A former Newark police officer was sentenced today to three months in prison for conspiring with another person to fraudulently obtain payments under the federal public housing assistance program known as “Section 8,” U.S. Attorney Paul J. Fishman announced.
Suliaman Kamara, 32, of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of agreeing with another individual to obtain Section 8 public housing benefits to which they were not entitled.
According to documents filed in this case and statements made in court:
The Section 8 Program is a federal public housing assistance program administered by the U.S. Department of Housing and Urban Development. It provides rent subsidies to qualified low-income individuals. HUD provided federal grant money to the Newark Housing Authority (NHA) for the Section 8 Program. Under the NHA’s Section 8 Program, a tenant’s rental assistance was based upon the tenant’s anticipated family gross income. Tenants receiving Section 8 assistance from the NHA had to inform the Newark Housing Authority of all the members of the household and the annual household income.
From September 2006 to December 2011, Kamara, then a Newark police officer, lived in Newark with another individual (identified in court papers as “S.L.”) who was receiving Section 8 benefits. For most of that time they lived in a property owned by Kamara. They agreed they would not disclose to the NHA that they were living together so that Kamara’s income would not be taken into account in determining whether S.L. qualified for Section 8 benefits. Kamara and S.L. submitted fraudulent information and documents to the NHA in which they failed to disclose that Kamara lived with S.L. and was earning household income. Kamara and S.L. obtained more than $60,000 in Section 8 benefits to which they were not entitled.
In addition to the prison term, Judge Wigenton sentenced Kamara to two years of supervised release.
U.S. Attorney Fishman credited special agents of the U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Cary Rubenstein, for the investigation of this case.
The government is represented by Assistant U.S. Attorney Barbara R. Llanes of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
13-336
Defense counsel: Anthony Iacullo Esq., Nutley, N.J.Sussex County, N.J., Man Admits Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Sussex County, N.J., man today admitted using a computer in his home to distribute images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Albert Rose, 55, of Hampton, N.J., pleaded guilty today before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of distribution of child pornography.
According to documents filed in this case and statements made in court:
Rose admitted distributing images of child pornography via email using a computer located in his residence in February 2010. He also admitted to possessing more than 600 images of child pornography on his computer, which was seized from his residence in February 2012. Rose acknowledged that among the images of child pornography he possessed and distributed were images which depicted minors posing in a sexually explicit manner. Rose was previously charged by complaint with distribution of child pornography in September 2011and has been free on bail since his arrest.
The count to which Rose pleaded guilty is punishable by a mandatory minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison, followed by a mandatory minimum of five years’ supervised release and a $250,000 fine. Sentencing is scheduled for Dec. 2, 2013.
U.S. Attorney Fishman credited special agents of the Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS), Newark Division, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
13-333
Defense counsel: S. Emile Lisboa Esq., Hackensack, N.J.
Rose Information
Owner of Ocean City, N.J., Car Dealership Admits Targeting Sellers, Buyers and Lenders in Fraud SchemeRead the Press Release
CAMDEN, N.J. – The president, operator and manager of Harry Klause Cars and Trucks Inc., in Ocean City, N.J., admitted today to perpetrating a scheme to defraud automotive loan lenders and customers who traded in and bought vehicles at his dealership, U.S. Attorney Paul J. Fishman announced.
Harry Klause, 64, of Ocean City, N.J., pleaded guilty to an information charging him with wire fraud. He entered his guilty plea before U.S. District Judge Robert B. Kugler in Camden federal court.
According to documents filed in this case and statements in court:
Klause purchased trade-in vehicles from customers of his auto dealership and applied the purchase price against the price of vehicles those customers bought from the dealership. Though Klause agreed to pay off any existing loan the customers had on the trade-in vehicles, he didn’t do so in a timely way, causing damage to the customers’ credit scores. Klause then sold trade-in vehicles to other customers even though he had neither paid off the loans nor gotten the vehicle titles from the lenders.
Klause steered the buyers of the trade-in vehicles to various lenders to finance the purchases, but didn’t immediately – or ever – send the titles to those lenders. If a customer stopped paying a car loan, the lender would be without recourse to repossess the vehicle.
During his guilty plea proceeding, Klause admitted specific acts of fraud concerning individual transactions.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing before Judge Kugler is currently scheduled for Nov. 15, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to the guilty plea. He also thanked the Northfield, N.J., Police Department, under the direction of Chief Robert James; and the New Jersey Motor Vehicle Commission, Business Licensing Investigative Unit, under the direction of Investigator Thomas Bramley, for their assistance.
The government is represented by Attorney in Charge R. Stephen Stigall of the U.S. Attorney’s Office Camden branch.
13-332
Defense counsel: William J. Hughes Jr., Esq., Atlantic City, N.J.Klause Information
Ocean County, N.J., Man Sentenced to 37 Months in Prison for Possessing Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, N.J. man, was sentenced today to 37 months in prison for possessing more than 600 images of child sexual abuse and using his computer to send and store them, U.S. Attorney Paul J. Fishman announced.Christopher Seufert, 32, of Brick, N.J., previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of possession of child pornography. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Seufert admitted he possessed more than 600 images of child pornography on a computer located in his residence in March 2010. He admitted using his America Online email account to send some of the images to himself and store them. Seufert acknowledged that among the images he possessed were images which depicted minors engaging in sexually explicit conduct with other minors and adults, including material portraying sadistic or masochistic conduct or other depictions of violence. The criminal images were brought to the attention of law enforcement by a tip from America Online.
In addition to the prison term, Judge Cooper sentenced Seufert to five years of supervised release with computer monitoring and restricted contact with minors. He must also register as a sex offender.
U.S. Attorney Fishman credited special agents of the Newark FBI’s Child Exploitation Taskforce and credit, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and the N.J. State Police Internet Crimes Against Children Taskforce, under the direction of Col. Rick Fuentes, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys John Clabby and Sarah Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.Defense Counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton
Closing Agent Admits Participating in Large-Scale Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A paralegal today admitted participating in a long-running, large-scale mortgage fraud scheme that defrauded financial institutions of at least $2 million, U.S. Attorney Paul J. Fishman announced.
Linda Cohen, 55, of Orange, N.J., pleaded guilty before U.S. District Judge Esther Salas to an information charging her with one count of conspiring to commit bank fraud and one count of transacting in criminal proceeds.
According to documents filed in this case and statements made in court:
Cohen worked as a paralegal who handled real estate closing for S.B., an attorney licensed in New Jersey. Cohen acted as the settlement agent for fraudulent mortgage loans brokered by conspirator Klary Arcentales, 45, of Lyndhurst, N.J., on behalf of Premier Mortgage Services. As closing agent, Cohen furthered the scheme by convening closings, receiving funds from lenders, and preparing “HUD-1” reports that purported to reflect the sources and destinations of funds for mortgages on subject properties. Those HUD-1s were neither true nor accurate. Cohen routinely certified HUD-1s in which she purported to have received a down payment from the buyer when no down payment had been made. At or following the closings, Cohen disbursed mortgage loan proceeds directly to Premier Mortgage Services, Arcentales, and other conspirators. Cohen created shell bank accounts into which she funneled the proceeds of her fraudulent activity.
The count of conspiracy to commit bank fraud to which Cohen pleaded guilty is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine, and the count of transacting in criminal proceeds is punishable by a maximum penalty of 10 years in prison and a fine of $250,000 or twice the gross amount of any gain or loss. Sentencing is scheduled for Nov. 18, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea. He also thanked the Social Security Administration-Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan, for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Rahul Agarwal of the Newark office.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-331
Defense counsel: Brian Daly Esq., Middletown, N.J.
Cohen, Linda Information
Two North Jersey Men Plead Guilty in Stolen Identity/Tax Fraud SchemeRead the Press Release
NEWARK, N.J. – Two North Jersey men admitted today they used stolen identities to file tax returns and claim refunds to which they were not entitled, U.S. Attorney Paul J. Fishman announced.
Alidu Dramani, 33, of Irvington, N.J., and Evans Boamah, 30, of Elizabeth, N.J., pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to informations charging them with conspiring to make false claims against the United States.
According to documents filed in this case and statements made in court:
Dramani and Boamah were employed at the North Jersey Developmental Center in Totowa, N.J., a mental health institution operated by the State of New Jersey. Using their access to patient information, the defendants stole names and Social Security numbers of patients at the center. They then provided the stolen identity information to another conspirator for use by a tax preparer to file false tax returns under those stolen identities to get federal tax refunds to which they were not entitled. As a result of the defendants’ participation in the conspiracy, tax preparers filed, attempted and intended to file false tax returns for the tax years 2009 through 2011 seeking $396,416 in tax refunds.
The count of conspiracy to defraud the government to which the defendants pleaded guilty is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the pecuniary gain or loss from the offense. Sentencing is scheduled for Nov. 13, 2013.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Lorraine S. Gerson of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-326
Defense counsel:
Dramani: Peter W. Till Esq., Springfield, N.J.
Boamah: Stephen Wellinghorst Esq., Hackensack, N.J.Dramani Information
Boamah InformationMembers of White Supremacist Group Sentenced to Prison for Hate Crime AssaultRead the Press Release
TRENTON, N.J. – Two members of the “Aryan Terror Brigade” white supremacist group were sentenced to prison today for their roles in the New Year’s Eve 2011 hate crime assault of two Middle Eastern men in Sayreville, N.J., U.S. Attorney Paul J. Fishman announced.
U.S. District Judge Joel A. Pisano sentenced Michal Gunar, 29, of East Windsor, N.J., to 33 months in prison. Gunar previously pleaded guilty to an indictment charging him with conspiracy to commit a hate crime assault, as well as the actual commission of a hate crime assault, in violation of the Matthew Shepard and James Byrd Jr., Hate Crimes Prevention Act. Judge Pisano sentenced Kyle Powell, 24, of West Collingswood, N.J., to 15 months in prison. Powell previously pleaded guilty to an information charging him with conspiracy to commit a hate crime assault.
According to documents filed in this case and statements made in Trenton federal court:
Gunar admitted attended a New Year’s Eve “meet and greet” white supremacist event at a residence in East Brunswick, N.J., on Dec. 31, 2011. That night, Gunar, Powell and Christopher Ising, 31, of Waretown, N.J., drove to an apartment complex in Sayreville with the express purpose of assaulting random, non-Caucasian individuals. Gunar brandished a knife and attacked two Middle Eastern men, shouting anti-Arab slurs. At his guilty plea proceeding, Gunar admitted he assaulted at least one man by pulling the individual out of a parked car and punching the man about the face and head, causing physical injury.Ising, a purported member of a white supremacist group known as the “Atlantic City Skins,” previously entered a guilty plea on both counts of the same indictment and charges as Gunar. He is scheduled to be sentenced on Aug. 9, 2013.
In addition to the prison terms, Judge Pisano sentenced Gunar and Powell to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, Criminal Investigations, Newark Field Office; and detectives from the N.J. State Attorney General’s Office, under the direction of Acting Attorney General John Jay Hoffman, with the investigation.The government is represented by Assistant U.S. Attorneys Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit in Newark, and Trial Attorney Fara Gold of the Criminal Section of the Justice Department’s Civil Rights Division in Washington.
13-324
Gloucester County, N.J., Man Indicted on Exploitation, Child Pornography ChargesRead the Press Release
CAMDEN, N.J. – A Gloucester County, N.J., man was indicted today by a federal grand jury in Camden for allegedly exploiting two minor boys and for possessing, receiving and distributing images of child sex abuse, U.S. Attorney Paul J. Fishman announced.
Gerrett Conover, 48, of Woolwich Township, N.J., a former Boy Scout troop leader, was charged by complaint in September 2012 with one count of receiving images of child sex abuse over the Internet and has been held in federal custody since that time. Today’s indictment charges two counts of the sexual exploitation of children, 10 counts of the receipt or distribution of images of child pornography and one count of possession of additional images of child pornography.
According to the indictment returned today and other documents filed in this case:
On Sept. 16, 2012, Conover was intercepted at the United States border coming from Canada into New York and was found in possession of a laptop computer containing images of child pornography. Federal agents obtained a search warrant for Conover’s home in Woolwich Township, and seized various computers and computer related media containing additional images of child sexual abuse, chats and emails.
The count of child exploitation with which Conover is charged is punishable by a maximum potential penalty of 30 years in prison, with a mandatory minimum penalty of 15 years in prison, and a $250,000 fine per count. Conover faces a mandatory minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine for each count of distribution of child pornography. The possession count is punishable by a maximum potential penalty of 10 years in prison, and a $250,000 fine. Conover will be arraigned on the indictment at a later date.
U.S. Attorney Fishman credited special agents of the Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Andrew M. McClees, with the assistance of HSI Offices in Boston, Mass.; Messina, N.Y.; and Los Angeles and San Bernardino, Calif.; and Customs and Border Protection in Ogdensburg, N.Y., with the investigation.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-328
Defense counsel: Jerome M. Brown Esq., PhiladelphiaConover Indictment
Four Plead Guilty in International, $200 Million Credit Card Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A New York man who participated in one of the largest credit card fraud schemes ever charged by the Justice Department today admitted his role in the scheme, the fourth conspirator to do so in a two-week period, New Jersey U.S. Attorney Paul J. Fishman announced.
Muhammad Shafiq, 39, of Bellrose, N.Y., pleaded guilty today before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to commit bank fraud. Vernina Adams, 31, of Philadelphia and Raghbir Singh, 57, of Hicksville, N.Y., pleaded guilty on July 31, 2013, to separate informations charging the same offense. Mohammad Khan, 49, of Staten Island, N.Y., pleaded guilty on July 24, 2013, to an information charging conspiracy to defraud the United States.
According to documents filed in this case and statements made in court:
Shafiq, Adams, Singh and Khan were originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; then run up large loans.
The scope of the criminal fraud enterprise required Shafiq, Adams, Singh, Khan and their conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
During their guilty plea proceedings, Shafiq, Singh and Khan admitted they helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. They also admitted they knew the cards would be used fraudulently at businesses, with Khan admitting to personally using the cards.
Adams and her conspirators also used sophisticated methods – including a network of black-market businesses called “tradelines” providers – to commit fraud.
During her plea proceeding, Adams admitted advertising on Craigslist for individuals willing to add someone onto their credit cards. She also admitted selling other members of the conspiracy fraudulent “tradelines,” including by working with Acapulco Jewelry, a complicit business in California. Adams would extend a fictitious line of credit to a false identity, backdate the line of credit so it appeared to have existed for a longer period of time, then falsely report the line of credit had been paid.
The count to which Shafiq, Adams and Singh pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gain or loss caused by the offense. The count to which Khan pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense.Each defendant is scheduled for sentencing by U.S. District Judge Anne E. Thompson in Trenton, N.J.: Shafiq on Nov. 14, 2013; Adams and Singh on Nov. 7, 2013; and Khan on Oct. 30, 2013.
U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to the guilty pleas, as well as postal inspectors, under the direction of Postal Inspector in Charge Marie L. Kelokates, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola. He also thanked the U.S. Social Security Administration for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture Unit in Newark.This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-327
Defense counsel:
Muhammad Shafiq: Joseph Horn Esq., Rutherford, N.J.
Vernina Adams: Todd E. Henry Esq., Philadelphia
Raghbir Singh: David E. Levine Esq., Brooklyn, N.Y.
Mohammad Khan: Stephan Mahler Esq., Kew Gardens, N.Y.Shafiq Information
Adams Information
Singh Information
Khan InformationFive Charged with Conspiring to Sell Heroin, Prescription Drugs Out of Newark, N.J., Retail StoreRead the Press Release
NEWARK, N.J. – Five Newark residents are charged as players in a conspiracy to sell heroin and prescription pills out of a retail store in the city, U.S. Attorney Paul J. Fishman announced.
Lamont Vaughn, 30; Jarez Barron, 25; Theresa Barron, 24; Latoyia Vaughn, 29; and Felicia Holt, 27, are each charged by complaint with two counts: conspiring to distribute and possess with intent to distribute heroin and oxycodone. Federal agents arrested four of the defendants this morning at their homes. Latoyia Vaughn, Lamont Vaughn’s sister, remains at large.
Agents seized two firearms from Lamont Vaughn’s home, where they found him attempting to flush what appeared to be drugs down the toilet. Holt allegedly threw drugs out the window of her home as she fled from law enforcement, but was apprehended a short time later.
The arrested defendants are expected to make their initial appearances this afternoon before U.S. Magistrate Judge Cathy Waldor in Newark federal court.
For at least a year beginning in August 2012, the defendants allegedy worked together to sell heroin and prescription pills out of a retail store in Newark. According to the complaints, they were observed and recorded by law enforcement discussing business hours and inventory and dealing bricks of heroin as well as Endocet – which they referred to as “bananas” – and other pills.
The conspiracy to distribute heroin count carries a maximum potential penalty of 40 years in prison, a minimum term of five years in prison, and a maximum fine of $5 million. The conspiracy to distribute oxycodone count carries a maximum potential penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Fishman praised special agents and officers of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, as well as the New Jersey State Police Street Gangs North Unit with the investigation leading to the arrests.
The government is represented by Senior Litigation Counsel Margaret Ann Mahoney and Assistant U.S. Attorney Francisco Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-325
Vaughn, Lamont et al. Complaint
Holt ComplaintContractor Admits Colluding on Bids for Grant Funds from City of BayonneRead the Press Release
TRENTON, N.J. – A Hudson County, N.J., man today admitted his role in bid-rigging in order to fraudulently obtain U.S. Department of Housing and Urban Development grant funds from the City of Bayonne, N.J., U.S. Attorney Paul J. Fishman announced.
Leo Viguie, 38, of Bayonne, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of theft of government funds totaling $40,000.According to documents filed in this case and statements made in court:
Viguie was the owner of L.V. Renovations LLC, a general contracting company in Bayonne. The City of Bayonne Department of Community Development (CBDCD) was a government agency that received funds from the U.S. Department Housing and Urban Development under a federal program that provided grants of up to $20,000 to low income families to rehabilitate their homes and to repair conditions that were considered to affect their health and safety, and their homes’ accessibility, energy efficiency or code compliance.
In September 2011, Viguie, as the owner of L.V. Renovations, LLC, caused another contractor to provide Viguie with a bid that was higher than his own for the purpose of obtaining HUD grant funds from the City of Bayonne. Viguie then submitted the other contractor’s bid along with his own to the CBDCD. As a result of Viguie colluding with the other contractor and submitting the two bids, Viguie wrongfully obtained $20,000 in HUD grant funds from the CBDCD on Sept. 29, 2011.
In December 2011, Viguie supplied another contractor with a bid on behalf of L.V. Renovations that was higher than the other contractor’s bid for the purpose of obtaining HUD grant funds from the City of Bayonne. The other contractor then submitted the two bids to the CBDCD. As a result of Viguie colluding with the other contractor who then submitted the two bids, the other contractor wrongfully obtained $20,000 in HUD grant funds from the CBDCD on Dec. 28, 2011.
The theft of government funds charge carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is currently scheduled for Dec. 4, 2013.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent In Charge Aaron T. Ford in Newark, special agents of the U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Cary Rubenstein, and special agents of the IRS, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, with the continuing investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Zahid N. Quraishi of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the Newark office.
13-329
Defense counsel: Genesis A. Peduto Esq., North Bergen, N.J.Viguie Information
Twin Brother Pharmacists Admit to Defrauding Patients and Insurance Companies of $1.5 MillionRead the Press Release
NEWARK, N.J. – Two pharmacists – twin brothers who previously owned the West Orange Pharmacy – today admitted reaping at least $1.5 million in illicit gains by defrauding patients, Medicaid and insurance companies over the past 15 years, U.S. Attorney Paul J. Fishman announced.
Robert Carlucci, 69, and William Carlucci, 69, both of Florham Park, N.J., pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to separate informations charging them with conspiring to commit health care fraud.
According to documents filed in this case and statements made in court:
Robert Carlucci, William Carlucci, and another conspirator (identified as “L.S.” in the charging documents) participated in a variety of schemes designed to cheat customers and bilk insurance companies out of at least $1.5 million.
They used a practice they referred to as “TRADE-QUICK” to under-fill prescriptions. Each letter in “TRADE-QUICK” corresponded to a number, beginning with “T” for “1” through “K” for “0.” The conspirators would enter a two-letter code into the West Orange Pharmacy computer system that indicated how much of the prescription they intended to fill. The code “QK” indicated that a prescription for 90 dosage units would instead be filled with 60 dosage units, because the “Q” stood for the number “6” and the “K” stood for the number “0.” After under-filling the prescription, the co-conspirators billed Medicaid and other insurance companies for the fully filled prescription.
Without informing the patients, the conspirators substituted generic drugs for the brand-name drugs prescribed by the patients’ physicians. Then they billed Medicaid and other insurance companies for the full amount of the brand-name drugs. The co-conspirators entered the prescribing physicians’ phone numbers into the West Orange Pharmacy computer system as a code to indicate that they were utilizing this particular scheme.
The conspirators also filled outstanding refills on a given prescription without the patients’ knowledge and then billed Medicaid and the private insurers for the refills. They entered a dot (“.”) into the West Orange Pharmacy computer system as a code to indicate that they were utilizing this particular scheme.The conspirators would sometimes lose money on a given prescription. On those occasions, they looked through a patient’s profile and found additional costs that they could pass on to Medicaid and other insurance companies. They would submit bills for these additional costs, and they would enter the code “COV” into the West Orange Pharmacy computer system to reflect this scheme.
The conspirators purchased prescription drugs back from their customers and would reuse those drugs to fill other patient prescriptions. They billed Medicaid and other insurance companies for the full amount of the filled prescriptions.
The conspirators purchased prescription drugs from non-licensed wholesalers at a substantial discount to the drugs’ wholesale price, then dispensed these discounted drugs to patients and billed Medicaid and private insurers for the full costs associated with the drugs.
The health care fraud conspiracy charge to which Robert Carlucci and William Carlucci pleaded guilty is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000 or twice the gross gain or loss from the scheme. As part of their guilty pleas, the defendants are agreeing to pay restitution of $1.5 million. Additionally, Robert Carlucci is forfeiting $849,568 and William Carlucci is forfeiting $558,717. Sentencing for both is scheduled for Nov. 12, 2013.U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski; and special agents of the Food & Drug Administration’s Office of Criminal Investigations, under the direction of Mark Dragonetti, with the investigation leading to today’s guilty pleas. He also thanked the Elizabeth, Clinton, Toms River, West Orange, and Marlboro Police Departments, along with the Essex County Sheriff’s Department for their work on this case.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
13-322
Defense counsel:
Robert Carlucci: Ricardo Solano Esq., NewarkWilliam Carlucci: Mark Berman Esq., River Edge, N.J.
Carlucci, William Information
Carlucci, Robert InformationPlainfield, N.J., Woman Admits She Was Lookout, Getaway Driver for Armed Bank RobberiesRead the Press Release
NEWARK, N.J. – A Plainfield, N.J., woman admitted today to playing a role in three armed robberies of banks in Somerset and Middlesex, N.J., U.S. Attorney Paul J. Fishman announced.
Andrea Dorsey, 54, of Plainfield, N.J., pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging her with three counts of bank robbery.
According to documents filed in this case and statements made in court:
Claude Williams, 61, of Elizabeth, N.J., was charged in July 2012 by superseding complaint with six counts of bank robbery and two counts of using a firearm in furtherance of a crime of violence. Those charges remain pending.
Williams would usually send an accomplice into banks shortly before robbing them. Dorsey admitted she went into banks to gather information for Williams about how many employees were working and served as the getaway driver during the armed robberies of the Financial Resources Federal Credit Union located in Somerset, N.J., on Sept. 26, 2011, and the Somerset Savings Bank located in Somerville, N.J., on Nov. 21, 2011.
Williams and Dorsey were arrested on July 30, 2012, blocks from a Unity Bank in Somerset. Williams was wearing a bandana and law enforcement found a handgun and white gloves in the car.
Dorsey faces a maximum potential penalty of 25 years in prison and a $250,000 fine, or twice the gain or loss from the offense, on each of the three counts. Sentencing is currently scheduled for Oct. 30, 2013.
The charges and allegations contained in the superseding complaint against Williams are merely accusations and the defendant is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation. He also thanked the Somerset County Prosecutor’s Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield and Plainfield Police Departments for their excellent work.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office General Crimes Unit in Newark.13-323
Defense counsel: Anthony J. Iacullo Esq., Nutley, N.J.
Dorsey, Andrea Information
Two Men Charged with Defrauding Charter Flight Company, Other Luxury Brands, of Hundreds of Thousands of DollarsRead the Press Release
NEWARK, N.J. – Two men were arrested by federal agents early this morning in Akron, Ohio, for conspiracy to defraud an aviation company out of charter flights and other businesses out of services and luxury goods, U.S. Attorney Paul J. Fishman announced.
Dante G. Dixon, 45, of Miami, Fla., and Christopher L. Henderson, 32, of Akron, Ohio, were charged by Complaint with conspiracy to commit wire fraud. They made their initial court appearances before U.S. Magistrate Judge Kathleen Burke in Akron federal court and were ordered held until they can be transported to New Jersey.
According to the Complaint:From May 2013 through June of 2013, Dixon and Henderson and others allegedly conspired to fraudulently obtain at least four private charter flights from Jet Aviation, an international business aviation service with its United States’ headquarters in Teterboro, N.J. Dixon, Henderson and others also conspired to obtain tens of thousands of dollars in other luxury goods and services, all via sham lines of credit issued to a well-known financial institution for the defendants and others’ use, by misrepresenting that they and others were employees at the financial institution.
On May 5, 2013, an individual using the name “Josh Stevens” called Jet Aviation’s offices in Chicago, Ill., and Van Nuys, Calif., to inquire about its private charter flight services. That individual identified himself as being employed as a senior vice president at a well-known financial institution and provided an email address purporting to be affiliated with the financial institution. It was later determined that this email address was not, in fact, affiliated with the financial institution. A Jet Aviation employee sent an email to the provided email address. The email from Jet Aviation contained a draft Charter Services Agreement, which was signed by “Josh Stevens” and returned to Jet Aviation on May 9, 2013. The Agreement falsely listed “Josh Stevens” as a senior vice president, Dixon as a vice president, and Henderson as a vice president of international affairs at the well-known financial institution.
On May 21, 2013, based on the false information provided by “Josh Stevens,” a Jet Aviation employee created an account and a $350,000 line of credit for the defendants and others. The line of credit was in the name of the financial institution on behalf and for the use of the defendants and others. Dixon and Henderson and others used the sham line of credit to take at least four private charter flights.
On June 7, 2013, a Jet Aviation employee at Teterboro met Dixon and Henderson before they boarded their charter flight to Miami, Florida. During the meeting, the defendants identified themselves as being employees at the financial institution. The Jet Aviation employee then contacted the financial institution and was informed that Dixon and Henderson and others were not, and had never been, employees at the financial institution.
As a result of their misrepresentations to Jet Aviation, Dixon and Henderson and others fraudulently obtained private high-end charter flights and limousine car services, with a total value of $175,790. Jet Aviation never received payment from the defendants and others, or from the financial institution’s line of credit, for any of the services provided to the defendants and others, including the approximately $164,911 in charter flights and the approximately $10,879 in limousine services.
Dixon and Henderson and others made similar misrepresentations about their purported employment at the financial institution to other luxury service providers, including to a Tiffany & Co. store in Bal Harbour, Fla., and to The W South Beach Hotel in Miami, Fla. These misrepresentations resulted in the defendants and others fraudulently obtaining, via sham lines of credit with Tiffany and The W, approximately $19,991 in watches, sunglasses, sterling silver and leather business cardholders, and men’s cologne from Tiffany, and approximately $25,466 in overnight hotel stays at The W.
The investigation has revealed that the financial institution was not aware that Dixon and Henderson and others were using its corporate identity. As a result of their scheme, Dixon and Henderson and others fraudulently obtained more than $220,000 in luxury goods and services.The charge of conspiracy to commit wire fraud with which the defendants are charged is punishable by a maximum potential penalty of 20 years in prison, and a maximum fine of $250,000 or twice the gain or loss resulting from the defendants’ crimes.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s arrests.The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-320Dixon-Henderson Complaint