District of New Jersey
Press releases recorded for this federal judicial district.
Passaic County Man Sentenced to 82 Months in Prison for Fentanyl, Cocaine, and Ammunition ChargesRead the Press Release
CAMDEN, N.J. – A Passaic County, New Jersey, man was sentenced to 82 months in prison for possessing with intent to distribute fentanyl and cocaine and possessing ammunition by a convicted felon, U.S. Attorney Philip R. Sellinger announced today.
Kadeem Coleman, 31, of Paterson, New Jersey, previously pleaded guilty before Chief U.S. District Judge Renée M. Bumb to possession with intent to distribute fentanyl and cocaine and possession of ammunition by a convicted felon, and was sentenced to 70 months in prison on those counts. At the time Coleman committed these offenses, he was on federal supervised release; for violating the terms of his supervised release, Judge Bumb sentenced Coleman to an additional 12 months in prison to run consecutively. Judge Bumb imposed the sentence on Nov. 7, 2024, in Camden federal court.
According to documents filed in this case and statements made in court:
On October 15, 2021, law enforcement arrested Coleman and searched his residence pursuant a search warrant. Law enforcement recovered fentanyl and cocaine, which was subsequently confirmed through laboratory testing, and over 120 rounds of ammunition. Coleman had previously been federally convicted in the District of New Jersey for unlawful possession of a firearm.
In addition to the prison term, Judge Bumb sentenced Coleman to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, Newark Field Division; the Passaic County Sheriff’s Office, under the direction of Acting Sheriff Gary Giardina; and the Paterson Police Department, under the direction of Officer in Charge Isa Abbassi with the investigation leading to the sentencing.
This case is part of the Paterson Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Bergen County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi‑agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the OCDETF/Narcotics Unit in Newark.
Eight Men Charged in Connection with Interstate High-End Car Theft RingRead the Press Release
NEWARK, N.J. – Eight men have been charged for their alleged roles in a conspiracy to steal luxury cars in New Jersey, New York, and elsewhere, and transport them across state lines, U.S. Attorney Philip R. Sellinger announced today.
Ahmad Franks, aka “Mahdi,” 24; Shaquan White, aka “QBandz,” aka “Q Bands,” 23; Nathan Braswell, aka “Troub,” 20; Ibn Bellamy, aka “YC,” 24; Zamir Wright, aka “GBz,” 20, all of Newark; Ryan Bowen, aka “Prob,” 26; Khyree Lawrence, aka “6,” 20, both of East Orange, New Jersey; and Mohammed Buhari, aka “Sakina,” 45, of Woodbridge, Virginia; are all charged by complaint with conspiring to receive, possess, or sell stolen vehicles in interstate commerce.
Franks is also charged with five counts of possession of a stolen vehicle and one count of interstate transportation of a stolen vehicle. Bellamy is also charged with one count of possession of a stolen vehicle, and Buhari is charged with one count of sale, receipt, or possession of a stolen vehicle. Bellamy and Lawrence were arrested on Nov. 6, 2024, and made their initial appearance before U.S. Magistrate Judge Jessica S. Allen in Newark federal court. Buhari remains at large. The remaining defendants are already in custody on prior charges and will appear at a later date.
“The defendants are charged with orchestrating a brazen conspiracy to steal high-end, luxury vehicles, targeting our community and profiting from their illegal activities,” U.S. Attorney Sellinger said. “These charges underscore our commitment to work with all of our law enforcement partners to protect the community from the variety of crimes committed by those who seek to enrich themselves unjustly by victimizing our residents.”
According to documents filed in this case and statements made in court:
In November 2021, law enforcement began investigating a series of high-end car thefts and learned that the eight defendants, and others conspired to possess, receive, conceal, sell, dispose, and/or transport high-value stolen cars in New York, New Jersey, Pennsylvania, Maryland, Virginia, and elsewhere. Some of the stolen cars were used during the commission of other crimes, including the theft of additional cars, shootings, and a homicide. From November 2021 to July 2022, Franks exchanged photographs of at least 400 known or suspected stolen cars with at least a dozen conspirators.
The 14 cars stolen by the defendants as alleged in the complaint have an estimated total value of at least $550,000.
The conspiracy count carries a maximum term of five years in prison and a fine of up to $250,000 or twice the pecuniary gain to the defendant or loss to the victims, whichever is greatest. The charges of sale, receipt, or possession of a stolen vehicle and interstate transportation of a stolen vehicle each carries a maximum potential penalty of ten years in prison and a fine of up to $250,000 or twice the pecuniary gain to the defendant or loss to the victims, whichever is greatest.
U.S. Attorney Sellinger credited the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II; Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas; the Newark Police Division, under the direction of Director Fritz G. Fragé; the New Jersey State Police, under the direction of Colonel Patrick J. Callahan; the Millburn Township Police Department, under the direction of Chief Brian Gilfedder; and the Fairfield Police Department, under the direction of Chief Anthony G. Manna, with the investigation leading to the charges. He also thanked the U.S. Customs and Border Protection at the Port of New York/Newark, the Federal Bureau of Investigation, the New York Police Department, the Port Authority Police Department, the Jersey City Police Department, the Tenafly Police Department, the East Brunswick Police Department, the Ridgewood Police Department, the Ramapo Police Department, the Spring Lake Police Department, the Paramus Police Department, the Woodbridge Police Department, the Edison Police Department, the Essex Fells Police Department, the East Orange Police Department, the West Caldwell Police Department, and the Nassau County Police Department for their assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Olta Bejleri and Megan Linares of the Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
franksetal.complaint.pdfBurlington County Man Indicted for Firearms and Drug Trafficking OffensesRead the Press Release
MOUNT HOLLY, N.J. – A Burlington County, New Jersey, man has been indicted for firearms and narcotics offenses, U.S. Attorney Philip R. Sellinger announced today.
Cody Starr, 35, of Mount Holly, New Jersey, is charged with one count of possession of a firearm by a convicted felon, one count of possession of a machine gun, four counts of distribution of methamphetamine, four counts of possession of a firearm in furtherance of a drug trafficking crime, and four counts of engaging in the business of firearms trafficking without a license. Starr will be arraigned at a later date.
According to documents filed in the case:
From Oct. 13, 2022, through Nov. 8, 2022, undercover agents conducted multiple controlled purchases of firearms and methamphetamine with Starr at his residence. Agents purchased approximately 12 firearms from Starr, all qualifying as privately made firearms (PMFs). During four of the controlled purchases, Starr was armed with a firearm, including a PMF machine gun. As a result of the investigation, a search warrant was conducted at Starr’s residence where over 50 PMFs, firearms magazines, ammunition, firearms parts, a 3D printer, and other firearms manufacturing accessories were recovered.
On the criminal charges for drug distribution, Starr faces a potential maximum term of 20 years in prison, and up to a $1 million fine. The felon in possession of a firearm count carries a potential maximum penalty of 15 years in prison and a fine of up to $250,000. The possession of a machine gun count carries a potential maximum penalty of 10 years in prison and a fine of up to $250,000. Each possession of a firearm in furtherance of a drug trafficking crime charge carries a mandatory minimum term of incarceration of five years in prison, a potential maximum penalty of life in prison, and a fine of up to $250,000. Each charge of engaging in the business of firearms trafficking without a license carries a potential maximum penalty of five years in prison and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, Camden Field Office, under the leadership of Special Agent in Charge L.C. Cheeks Jr., with the investigation leading to the charges. He also thanked the U.S. Postal Inspection Service, Drug Enforcement Administration, Customs and Border Protection, New Jersey State Police, Burlington County Prosecutor’s Office, Mount Holly Police Department, Evesham Police Department, and Pine Hill Police Department.
The government is represented by Special Assistant U.S. Attorney Katelyn Waegener of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
starr.indictment.pdfBergen County Man Admits Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man admitted distributing and possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Michael Kimmerle, 35, of New Milford, New Jersey pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court on Nov. 6, 2024, to an information charging him with one count of distribution of child pornography and one count of possession of child pornography.
According to documents filed in this case and statements made in court:
From Aug. 24, 2021, through Aug. 7, 2022, Kimmerle distributed material containing video files of child sexual abuse, via a publicly available online peer-to-peer (P2P) file-sharing program. Law enforcement used undercover online sessions to access the P2P program. During these sessions a user shared multiple video files of child sexual abuse from an Internet Protocol address traced to Kimmerle’s residence. During a Sept. 14, 2022 search of Kimmerle’s residence, law enforcement found over 600 thumbnail images containing child pornography on Kimmerle’s laptop, including images derived from video files Kimmerle previously distributed through the P2P file-sharing program.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries a maximum penalty of 20 years in prison, and a fine of $250,000. Sentencing is scheduled for March 11, 2024.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the Opioid Abuse Prevention and Enforcement Unit in Newark.
kimmerle.information.pdfBank Manager Sentenced to Prison for Misusing Position to Steal Hundreds of Thousands of Dollars from Bank CustomerRead the Press Release
A former New York-based branch manager was sentenced yesterday to 13 months in prison, three years of supervised release, and ordered to pay $208,938.68 in both restitution and forfeiture of criminal proceeds for misusing his position to steal approximately $208,938.68 from a customer’s accounts.
According to court documents and statements made in court, from January 2020 to April 2020, James Gomes, 43, of New York, used his position as a branch manager of an international financial institution to improperly access a customer’s accounts and to steal a total of approximately $208,938.68. Without authorization, Gomes linked his personal phone number to the customer’s accounts and enrolled the customer’s accounts in the bank’s online banking services. In March and April 2020, Gomes fraudulently transferred the customer’s funds to Gomes’ personal bank and investment accounts at other financial institutions. To cover up his scheme, Gomes created a fraudulent email address containing the customer’s name, which he used to engage in fictitious conversations with his own official bank email address to make it appear that the customer was communicating with him. Gomes continued the scheme even after the customer’s death on April 5, 2020.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement.
IRS Criminal Investigation and the Federal Deposit Insurance Corporation Office of Inspector General investigated the case, with assistance from the Morristown Police Department.
Trial Attorneys D. Zachary Adams and Chelsea R. Rooney of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney Mark J. Pesce for the District of New Jersey prosecuted the case.
MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. Since its creation in 2010, the Bank Integrity Unit has prosecuted financial institutions for violations of the BSA, money laundering, sanctions, and other laws, imposing total penalties of over $25 billion.
Bank Manager Sentenced to 13 Months in Prison for Misusing Position to Defraud Bank Customer of Hundreds of Thousands of DollarsRead the Press Release
NEWARK, N.J. – A former New York-based branch manager of an international financial institution was sentenced to 13 months in prison for misusing his position to steal more than $208,000 from a customer’s accounts, U.S. Attorney Philip R. Sellinger and Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, announced today.
James Gomes, 43, of New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of wire fraud affecting a financial institution. Judge Salas imposed the sentence on Nov. 5, 2024, in Newark federal court.
According to documents filed in these cases and statements made in court:
From January 2020 to April 2020, Gomes used his position as a branch manager of an international financial institution to improperly access a customer’s accounts and to steal $208,939. Without authorization, Gomes linked his personal phone number to the customer’s accounts and enrolled the customer’s accounts in the bank’s online banking services. In March and April 2020, Gomes fraudulently transferred the customer’s funds to Gomes’ personal bank and investment accounts at other financial institutions. To cover up his scheme, Gomes created a fraudulent email address containing the customer’s name, which he used to engage in fictitious conversations with his own official bank email address to make it appear that the customer was communicating with him. Gomes continued the scheme even after the customer’s death on April 5, 2020.
In addition to the prison term, Judge Salas sentenced Gomes to three years of supervised release and ordered restitution of $208,939 and forfeiture of $208,939 in criminal proceeds.
U.S. Attorney Sellinger credited special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, New York Division, under the direction of Special Agent in Charge Patricia Tarasca, with the investigation leading to the sentencing. He also thanked the Morristown Police Department for its assistance.
The government is represented by Assistant U.S. Attorney Marko Pesce of the Economic Crimes Unit in Newark and Trial Attorneys D. Zachary Adams and Chelsea R. Rooney of the Justice Department’s Money Laundering and Asset Recovery Section (MLARS).
MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. Since its creation in 2010, the Bank Integrity Unit has prosecuted financial institutions for violations of the BSA, money laundering, sanctions, and other laws, imposing total penalties of over $25 billion.
Passaic County Man Admits to Failure to Pay Payroll TaxesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted his role in a $3.5 million payroll tax evasion scheme, U.S. Attorney Philip R. Sellinger announced.
Walter Hass, 62, of Hewitt, New Jersey, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of failure to collect, account for, and pay over payroll taxes.
According to documents filed in this case and statements made in court:
Hass was the owner and operator a shipping/logistics company located in Oakland, New Jersey. Since 2014, he has operated the company under three different names. He failed to collect, truthfully account for, and pay over payroll taxes to the IRS on behalf of each of these companies from 2014 to 2022. In total, he failed to pay over to the IRS at least $3.5 million in payroll taxes. Instead of paying over payroll taxes to the IRS, Hass used company money to fund his personal lifestyle, including the purchase of luxury vehicles, including Aston Martins and McClarens, high-end watches and jewelry, designer clothing items and accessories, tickets to sporting events, home renovations, vacations, water sports vehicles, and extravagant meals.
The charge to which Hass has pleaded guilty is punishable by a maximum of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for April, 22, 2025.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation.
The government is represented by Assistant U.S. Attorneys Katherine Calle and Edeli Rivera of the Special Prosecutions Division in Newark.
hass.information.pdfEssex County Man Sentenced to 58 Months in Prison for Fentanyl, Cocaine, and Firearms ChargesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 58 months in prison for his role in a narcotics conspiracy involving approximately one kilogram of cocaine and 100 grams of fentanyl, possessing with intent to distribute approximately 482 grams of cocaine, and possessing three firearms and ammunition as a convicted felon, U.S. Attorney Philip R. Sellinger announced.
Carlos Ovidio Gonzalez, 37, of Newark, previously pleaded guilty before U.S. District Judge Clair C. Cecchi to one count of conspiracy to distribute and possess with intent to distribute cocaine and fentanyl, one count of possession with intent to distribute cocaine, and one count of possession of firearms and ammunition by a convicted felon. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Dec. 19, 2022, Gonzalez and another individual conspired to distribute approximately one kilogram of cocaine and 100 grams of fentanyl and were arrested shortly after arriving at an agreed-upon location in Kearny to complete the sale. After their arrests, a search of Gonzalez’s home and an apartment uncovered two loaded firearms, an unloaded firearm, ammunition, drug packaging materials, and drugs, including approximately 482 grams of heroin. Gonzalez had previously been convicted, in New Jersey Superior Court, Morris County, of first-degree drug distribution, second degree weapons possession during a controlled substance offense, and second degree possession of a firearm for an unlawful purpose, and was sentenced in 2009 to 30 years in prison.
In addition to the prison term, Judge Cecchi sentenced Gonzalez to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, and officers with the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, with the investigation leading to the sentencing. He also thanked Newark Police Department for its assistance.
The government is represented by Assistant U.S. Attorney Eli Jacobs of the General Crimes Unit in Newark.
Bayside State Prison Corrections Officer Sentenced to 20 Months in Prison for Violating Inmates’ Civil RightsRead the Press Release
NEWARK, N.J. – A former corrections officer at Bayside State Prison in Leesburg, New Jersey, was sentenced today to 20 months in prison for depriving two inmates of their civil rights by failing to intervene when the inmates were assaulted and suffered bodily injury, U.S. Attorney Philip R. Sellinger announced.
Joshua Hand, 35, of Millville, New Jersey, plead guilty on Feb. 26, 2024, before U.S. District Judge Karen M. Williams to an information charging him with depriving two inmates of their right not to be subjected to cruel and unusual punishment. Judge Williams imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In December 2019, while working as a corrections officer, Hand was inside the officers’ quarters within the kitchen area of Bayside State Prison when the first victim was summoned to that room. Shortly after the victim entered the officers’ quarters, the exit door was blocked and in the presence of Hand, the victim was assaulted simultaneously by several inmates and taken down to the floor. Hand watched and did not attempt to intervene when multiple inmates pinned and restrained the victim on the floor while other inmates delivered multiple punches and other blows to the victim’s torso, arms, and legs. Hand did not report this assault to his supervisors or medical personnel despite knowing that he was required to do so.
Later that same day, the second victim was in the officers’ quarters at the prison with Hand and another corrections officer. Without provocation, the other corrections officer struck the second victim in the legs multiple times with a broomstick. During the assault of the second victim, Hand remained within arm’s reach of the assault and had a reasonable opportunity to intervene but did not attempt to do so. Once again, Hand did not report this assault to his supervisors or medical personnel.
In addition to the prison term, Judge Williams sentenced Hand to three years of supervised release and fined him $10,000.
U.S. Attorney Sellinger credited special agents of the FBI Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation. He also thanked the New Jersey Department of Corrections, under the direction of Commissioner Victoria Kuhn, for its assistance.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the Special Prosecutions Division in Newark.
Essex County Man Indicted for Gunpoint Pharmacy RobberyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was arraigned today on charges related to his role in a December 2023 gunpoint robbery of a pharmacy in Livingston, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Nariq Petes, 26, of Newark, was charged on Oct. 11, 2024, in a three-count indictment with conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and brandishing a firearm during and in relation to a crime of violence. He was arraigned today before U.S. District Judge William J. Martini in Newark federal court, entered a plea of not guilty and was detained,
According to documents filed in this case and statements made in court:
On Dec. 30, 2023, Petes and a conspirator drove together to a pharmacy and entered the pharmacy wearing black masks. Once inside the pharmacy, Petes brandished a handgun and demanded prescription drugs. Petes and his conspirator took at least six bottles of prescription medication.
The conspiracy to commit Hobbs Act robbery and Hobbs Act robbery counts each carry a statutory maximum penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The count of using, carrying, and brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison and a maximum potential penalty of life in prison. The sentence on this charge must be consecutive to any other sentence imposed.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, and members of the Livingston Police Department, under the direction of Police Chief Gary Marshuetz, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sam Thypin-Bermeo of the OCDETF/Narcotics 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.
U.S. Attorney’s Office and U.S. Justice Department to Monitor Compliance with Federal Voting Rights Laws in New JerseyRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey announced today that staff from the U.S. Attorney’s Office and the Justice Department’s Civil Rights Division will monitor compliance with federal voting rights laws in Union, Bergen, and Middlesex counties for the Nov. 2024, general election.
The U.S. Attorney’s Office and the Justice Department’s Civil Rights Division regularly deploys its staff to monitor for compliance with federal civil rights laws, including the Voting Rights Act and the Americans with Disabilities Act, in elections in communities across New Jersey and the country. As part of this monitoring efforts, in addition to monitoring in Bergen and Middlesex counties, staff from both offices will be working with federal observers in Union County who will be monitoring election day activities in the county’s polling places under a federal court approved consent decree.
Complaints about voting rights concerns can be directed to the U.S. Attorney’s Office’s Election Day Hotline at 888-636-6596 or to the Justice Department’s Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.
More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Information about the ADA is available on the Justice Department’s ADA website at www.ada.gov. Information about civil rights enforcement at the U.S. Attorney’s Office for the District of New Jersey is available at https://www.justice.gov/usao-nj/civil-rights-enforcement.
Ocean County Man Sentenced to Two Years in Prison for Money LaunderingRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, man was sentenced today to 24 months in prison for illegally laundering the proceeds of a wire fraud scheme, U.S. Attorney Philip R. Sellinger announced.
Eli Schamovic, 43, of Lakewood, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with money laundering. U.S. District Judge Susan D. Wigenton imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Schamovic made or caused others to make numerous fraudulent financial transactions through at least two entities that Schamovic formed and established as merchants that used multiple credit card processing companies. These transactions resulted in more than $1 million in losses to a multinational financial services corporation that specialized in payment cards. Schamovic laundered portions of the proceeds of this scheme, including through an approximately $500,000 wire transfer from a bank account under his control.
In addition to the prison term, Judge Wigenton sentenced Schamovic to three years of supervised release and ordered restitution of $1.68 million.
U.S. Attorney Sellinger credited postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan Newark, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Former Accountant for New Jersey Manufacturing Company Sentenced to One Year and One Day in Prison for Criminal Tax OffensesRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man was sentenced today to 12 months and one day in prison for filing false tax returns, U.S. Attorney Philip R. Sellinger announced.
Thomas Kohutich, 34, of Woodbridge, New Jersey, previously pleaded guilty before U.S. District Judge Georgette Castner to a two-count information that charged him with subscribing to false tax returns for calendar years 2018 and 2019. Judge Castner imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Kohutich, a former accountant for a New Jersey-based manufacturing company, filed with the IRS U.S. Individual Income Tax Returns, Forms 1040, for calendar years 2018 and 2019 on his and his wife’s behalf. Kohutich failed to report funds that he embezzled from his former employer and which he knew constituted reportable income. Kohutich signed the tax returns under penalties of perjury, despite knowing that they contained materially false information. As part of his plea agreement, Kohutich agreed to pay full restitution to the IRS for tax losses resulting from filing the false tax returns, as well as restitution to his former employer.
In addition to the prison term, Judge Caster sentenced Kohutich to one year of supervised release and ordered Kohutich to pay restitution of $234,821 to the IRS and $829,457 to his former employer.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the sentence.
The government is represented by Assistant U.S. Attorney Edeli Rivera of the Special Prosecutions Division.
New Jersey Man Convicted for Stealing COVID-19 Unemployment BenefitsRead the Press Release
TRENTON N.J. – A New Jersey man was convicted for conspiring to illegally obtain over $570,000 in COVID-19 unemployment benefits, U.S. Attorney Philip R. Sellinger announced today.
Jose Tavares, 37, of Englewood, New Jersey, was convicted on Oct. 28, 2024, on one count of conspiracy to commit wire fraud. Tavares was convicted after a five-day jury trial before U.S. District Judge Robert Kirsch in Trenton federal court.
Tavares’ conspirators, Yanira Abreu, 43, of Keasby, New Jersey, and Christopher Valerio, 34, of Perth Amboy, New Jersey, have each previously pleaded guilty and were sentenced by Judge Kirsch in the same scheme.
According to documents filed in this case:
From July 2020 through February 2021, Tavares, Valerio, Abreu and others submitted fraudulent applications for unemployment insurance benefits to the New York Department of Labor (NYDOL) through fictitious online profiles that they created using personally identifiable information, including names, dates of birth, and Social Security numbers, of other individuals without their consent. Once the NYDOL processed and approved the fraudulent applications, Tavares and his conspirators obtained debit cards with illegally obtained funds totaling over $570,000, which they used for personal gain, including vacations, luxury retail purchases, and cosmetic surgery.
The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. Sentencing is scheduled for March 4, 2025.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas; special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, and postal inspectors of the U.S. Postal Inspection Service, Christopher A. Nielsen, Philadelphia Division, with the investigation leading to the verdict.
The government is represented by Assistant U.S. Attorneys Matthew Stark and Benjamin D. Bleiberg of the Economic Crimes Unit in Newark.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Morris County Man Charged with Transmitting Death Threat against Political CommentatorRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man has been charged with posting online a death threat aimed at a political commentator, U.S. Attorney Philip R. Sellinger announced today.
Haim Braverman, 45, of Morris Plains, New Jersey, is charged by complaint with one count of transmitting a threat in interstate and foreign commerce. He made his initial appearance on Oct. 29, 2024, before U.S. Magistrate Judge James B. Clark III in Newark federal court and was remanded.
According to documents filed in this case and statements made in court:
On Sept. 10, 2024, Braverman posted a video of himself on a social media platform in which he made various threats to a political commentator who had publicly commented on a prominent, now-deceased rabbi. In the video, Braverman threatened to use a bat against the commentator, stating: “You’ll get what’s coming to you . . . , I’ve never met someone . . . if I could f**king kill you right now, I would not even . . . , f**k it I’ll give you the steel bat. I wouldn’t even stop. I’d kill you. Dead. . . . I’m threatening a death sentence against [the commentator].” Braverman’s post also included a written comment from him, stating: “[the commentator] needs to be killed.” Braverman also transmitted an audio message to a group chat on a messaging application, referencing the commentator and stating, “After I heard what . . . [the commentator] said, I will go to prison, gladly find her and kill her . . . I will find a f**king weapon and f**king kill her. I am outraged.”
The charge of transmitting a threat in interstate or foreign commerce carries a statutory maximum term of imprisonment of five years and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, and the Morris County Sheriff's Office, under the direction of Sheriff James Gannon, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Sammi Malek of the National Security Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
braverman.complaint.pdfGloucester County Man Sentenced to Six Years in Prison for Drug Conspiracy and Firearms OffensesRead the Press Release
NEWARK, N.J. – A Gloucester County, New Jersey, man was sentenced to 72 months in prison for narcotics trafficking and firearms offenses, U.S. Attorney Philip R. Sellinger announced.
Javier Osorio, 44, of Deptford, New Jersey, was convicted on July 19, 2023, of conspiracy to distribute and possess with the intent to distribute heroin and cocaine, possession with the intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and unlawful possession of a firearm by a convicted felon following a trial before U.S. District Judge Brian R. Martinotti, who imposed the sentence on Oct. 29, 2024, in Newark federal court.
According to documents filed in this case and statements made in court:
Osorio conspired with others to distribute cocaine and over one kilogram of heroin, which was recovered from his apartment. Osorio was arrested while driving with his conspirators from New Jersey to Brooklyn to sell an additional quantity of heroin, which was recovered from the vehicle. In addition to the drugs recovered from his apartment, law enforcement also recovered a loaded stolen firearm from under Osorio’s mattress.
In addition to the prison term, Judge Martinotti sentenced Osorio to three years of supervised release.
U.S. Attorney Philip R. Sellinger credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation leading to the conviction. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez.
The government is represented by Assistant U.S. Attorney George L. Brandley of the Office’s Health Care Fraud Unit in Newark, and Assistant U.S. Attorney Kendall Randolph of the Office’s Organized Crime/Gangs Unit in Newark.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
Atlantic County Doctor Sentenced to 15 Months in Prison for Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, doctor was sentenced to 15 months in prison for his role in defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Brian Sokalsky, 46, of Margate, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiring to commit health care fraud. U.S. District Judge Edward S. Kiel imposed the sentence on Oct. 29, 2024, in Camden federal court.
Sokalsky, pharmaceutical sales representative Vincent Tornari, 50, of Linwood, New Jersey, and former advanced nurse practitioner Ashley Lyons-Valenti, 67, of Swedesboro, New Jersey, were charged in a 33-count indictment in June 2020. Tornari pleaded guilty on March 14, 2023, and Lyons-Valenti pleaded guilty on Feb. 28, 2023, to their respective roles in the conspiracy. Tornari and Lyons-Valenti are both awaiting sentencing.
According to court documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
The conspirators learned that certain medications made by compounding pharmacies reimbursed for up to thousands of dollars for an individual’s one-month supply. They learned that certain insurance plans – including insurance plans for state and local government employees and certain other insurance plans – covered these medications.
Sokalsky agreed to authorize prescriptions for former pharmaceutical sales representative Matthew Tedesco, 49, of Linwood, New Jersey, who pleaded guilty to health care fraud conspiracy in June 2017, and others working with Tedesco. In exchange for authorizing those prescriptions, Tedesco referred approximately 30 patients to Sokalsky’s new medical practice. Sokalsky, in turn, billed insurance for patient visits for those people steered to his practice by Tedesco. Sokalsky also authorized prescriptions for the medications for existing patients of his practice, which he did to financially benefit Tedesco and encourage him to refer more patients to his new practice. Sokalsky authorized medically unnecessary medications, including libido creams for young females and excessive quantities of the medications with the maximum number of refills selected. When insurance stopped covering certain formulations of the medications, Tedesco informed Sokalsky that he needed to authorize new prescriptions. Sokalsky did so, often without seeing the individual for a follow-up visit or informing the person of the change in medication. In total, insurance paid more than $5 million for fraudulent prescriptions authorized by Sokalsky.
In addition to the prison term, Judge Kiel sentenced Sokalsky to three years of supervised release and ordered restitution of $5.13 million.
Attorney for the United States Khanna credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the sentencing.
The government is represented by R. David Walk Jr., Deputy Chief of the Criminal Division; and Assistant U.S. Attorney Daniel A. Friedman of the Camden office.
Monmouth County Doctor Sentenced to 27 Months in Prison for Harboring Undocumented Workers from IndiaRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, doctor was sentenced today to 27 months in prison for harboring two undocumented women from India and failing to pay taxes on their wages, U.S. Attorney Philip R. Sellinger announced.
Harsha Sahni, 68, of Tinton Falls, New Jersey, previously pleaded guilty before U.S. District Judge Georgette Castner to an information charging her with one count of conspiracy to conceal and harbor aliens and one count of filing a false tax return. Judge Castner imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From 2013 through August 2021, Sahni conspired with others to conceal and harbor two foreign nationals from India, who Sahni recruited to work for Sahni and her family in their homes in New Jersey. Sahni harbored the victims for her and her conspirators’ financial gain and paid the victims’ families in India in exchange for their labor.
Sahni caused the victims to believe that they would be arrested and deported if they interacted with law enforcement. Sahni instructed the victims to tell other people that they were related to Sahni, and Sahni used fake names and addresses in furtherance of the conspiracy. From 2013 to 2019, Sahni also failed to pay certain taxes notwithstanding that the victims were Sahni’s household employees.
In addition to the prison term, Judge Castner sentenced Sahni to two years of supervised release and ordered restitution of $728,327. The defendant must also pay up to $200,000 for specific medical bills.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas; special agents of IRS - Criminal Investigation, New York Field Office, under the direction of Special Agent in Charge Thomas Fattorusso; and special agents of the U.S. Department of State, Diplomatic Security Service, New York Field Office, under the direction of Special Agent in Charge Keith J. Byrne, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Former Nurse from Atlantic County Sentenced to 33 Months in Prison for Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced today to 33 months in prison for possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Anthony Barbarino, 38, of Egg Harbor City, New Jersey, previously pleaded guilty before Chief U.S. District Judge Renée Marie Bumb to an information charging him with one count of possession of child pornography. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From April 12, 2022, to Aug. 3, 2022, Barbarino knowingly possessed 93 still photographs and 108 videos of child sexual abuse across three electronic devices, including at least one image of a prepubescent minor or a minor under 12 years of age, and at least one image that portrayed sadistic or masochistic conduct or other depictions of violence. Barbarino was arrested and charged by federal criminal complaint on Aug. 3, 2022, with the same offense. Prior to that arrest, Barbarino was employed as a nurse.
In addition to the prison term, Judge Bumb sentenced Barbarino to 10 years of supervised release, and ordered him to pay $13,000 in restitution to his victims, $5,000 under the Justice for Victims of Trafficking Act, and $5,000 under the Amy, Vicky, and Andy Child Pornography Victim Assistance Act.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation leading to the sentencing. He also thanked the Atlantic County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Camden.
Former General Counsel for Major Public Company Sentenced to Eight Months in Prison for Criminal Tax OffensesRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey man, and former general counsel for a large public corporation, was sentenced today to eight months in prison for willfully failing to file federal income tax returns, U.S. Attorney Philip R. Sellinger announced.
John Goggins, 63, of Chatham, New Jersey, previously pleaded guilty before U.S. Magistrate Judge André M. Espinosa to a four-count information charging him with willfully failing to file federal income tax returns for tax years 2018 through 2021. Judge Espinosa imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Goggins was a former senior vice-president and general counsel of a large publicly traded corporation. For the years 2018 through 2021, Goggins earned total gross income of $54 million from wages, restricted stock awards, the exercise of annual nonqualified stock options, interest, dividends, and gains from stock sales. Nevertheless, Goggins failed to file federal income tax returns for those years.
In addition to the prison term, Judge Espinosa sentenced Goggins to one year of supervised release, ordered restitution to the IRS of $3.11 million, which has already been paid, and fined him $40,000.
U.S. Attorney Sellinger credited IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan with the investigation leading to the sentence.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark, and Trial Attorney Kenneth Vert of the Justice Department’s Tax Division.
Businessman Charged with Conspiring to Own Unlicensed Money Transmitting BusinessRead the Press Release
NEWARK, N.J. – A businessman and former resident of Utah has been charged with illegally operating an unlicensed money transmitting business, U.S. Attorney Philip R. Sellinger announced today.
Christopher James Scanlon, 43, originally from Utah and now living in Florida, is indicted on one count of conspiring to control and own an unlicensed money transmitting business. Scanlon was arrested at Miami International Airport on Oct. 10, 2024, and made his initial appearance in U.S. District Court for the Southern District of Florida on Oct. 11, 2024. He was arraigned today before U.S. Magistrate Judge Lede Dunn Wettre in Newark federal court and pleaded not guilty.
According to documents filed in this case and statements made in court:
Scanlon is the founder and chief executive officer of businesses Aurae Lifestyle and Club Swan. From as early as 2015 through 2019, Scanlon controlled a series of legal entities – PMA Media Group Inc.; AU Card LLC; AU Card Ltd., and Nvayo Ltd., (collectively, the “AU Entities”) – that he operated as a money transmitting business to provide fiat and cryptocurrency financial services to customers of Aurae Lifestyle. Scanlon served as a customer service representative for several high-net-worth Aurae Lifestyle customers. Scanlon operated Aurae Lifestyle during this time period without appropriately registering as a money transmitting business with FinCEN.
At times, Scanlon agreed to conduct transactions on behalf of customers through other customers’ accounts and performed at least one “off the books” transaction for a customer who was later indicted for operating a large-scale cryptocurrency mining scheme. Scanlon exchanged messages with the customer, who requested that the transaction be kept off of the customer’s account ledger as a “Ghost” transaction. Scanlon agreed, and upon completing the transaction, the customer asked Scanlon to confirm that the transaction was not posted on the ledger of his Aurae Lifestyle account, asking Scanlon: “Ghost, right?,” to which Scanlon confirmed: “Boo.”
The conspiracy count carries a maximum term of five years in prison and a fine of up to $250,000 or twice the pecuniary gain to the defendant or loss to the victims, whatever is greatest.
U.S. Attorney Sellinger credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jennifer L. Piovesan, with the investigation.
The government is represented by Assistant U.S. Attorneys Megan Linares of the Cybercrime Unit, and Aaron Webman of the Economic 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.
scanlon.indictment.pdfJersey City Man Sentenced to 225 Months in Prison for Possession with Intent to Distribute CocaineRead the Press Release
NEWARK, N.J. – A Jersey City man was sentenced today to 225 months in prison for possession with intent to distribute cocaine, U.S. Attorney Philip R. Sellinger announced.
Jamil King, 32, of Jersey City, was previously convicted after a two-day trial before U.S. District Court Judge Esther Salas. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
King is a high-ranking member of the Jersey City neighborhood street gang known as Parkside. Law enforcement officials obtained a search warrant for King’s residence, and during the evening of July 8, 2022, officers executed that warrant. When the police arrived, King fled, but law enforcement recovered approximately 50 grams of cocaine from a pair of sweatpants inside the apartment. Those sweatpants contained the defendant’s DNA and matched the sweatshirt that the defendant was wearing that night.
In addition to the prison term, Judge Salas sentenced King to three years of supervised release.
U.S. Attorney Sellinger credited the Jersey City Police Department, under the direction of Director James Shea, for the investigation leading to the sentencing. He also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks Jr.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration’s New Jersey Division, the U.S. Marshals, the Department of Homeland Security – Homeland Security Investigations, the Jersey City Police Department, the Hudson County Prosecutor’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Desiree Grace, Chief of the Criminal Division, and Assistant U.S. Attorney Joseph Stern of the Office’s General Crimes Unit in Newark.
Morris County Man Charged with Sexually Exploiting MinorRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man has been charged with producing and possessing images of child sexual abuse and enticement of a minor, U.S. Attorney Philip R. Sellinger announced today.
Carlos Xavier Urbina-Gutierrez, aka Luis Urbina-Gutierrez, 23, of Wharton, New Jersey, is charged by complaint with possessing and producing child pornography and enticing a minor to produce child pornography. Urbina-Gutierrez appeared today before U.S. Magistrate Judge Leda Dunn Wettre.
According to documents filed in this case and statements made in court:
In 2023, Urbina-Gutierrez, posing as a student at a high school in Morris County, New Jersey. Urbina-Gutierrez used a fake online female persona on social media to communicate online with minor male victims who were students at the high school. On Dec. 25, 2023, Urbina-Gutierrez used these social media accounts to solicit one of the minor victims to engage in sexually explicit behavior while participating in a video call. Urbina-Gutierrez then surreptitiously recorded the video call and saved it to his phone. A forensic search of Urbina-Gutierrez’s cell phone revealed an approximately one-minute video of the video call with the victim.
The charge of production of child pornography carries a mandatory minimum penalty of 15 years in prison and a maximum penalty of 30 years in prison. The charge of enticement of a minor carries a mandatory minimum penalty of 10 years and a maximum penalty of life in prison. The charge of possession of child pornography carries a maximum penalty of 10 years in prison. Each charge also includes a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents and members of the Child Exploitation Group of the Newark Field Office of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Spiros Karabinas; the Borough of Wharton Police Department, under the direction of Chief Dave Young; and the Morris County Prosecutor’s Office, under the direction of Prosecutor Robert J. Carroll, with the investigation leading to the charges and arrest.
The government is represented by Assistant U.S. Attorney Michael A. Hardin of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
urbinagutierrez.complaint.pdfBrooklyn Man Admits Conspiracy to Commit Child Sex TraffickingRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man today admitted his role in a conspiracy to commit child sex trafficking, U.S. Attorney Philip R. Sellinger announced.
Soauib Butcher, 30, of Brooklyn, pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark federal court to one count of conspiracy to commit sex trafficking of a minor.
According to documents filed in this case and statements made in court:
In August 2019, Butcher brought the victim by train to New York City, where he instructed the victim to perform oral sex for money on a rooftop in Brooklyn. Several days later, Butcher brought the victim to Elizabeth, New Jersey, where, from August 2019 to January 2020, the victim stayed with Butcher and a conspirator in a series of motel rooms. The conspirator posted advertisements depicting the victim on escort websites and, together with Butcher, arranged for customers to come to the motels to have sex with the victim in exchange for money.
Conspiracy to commit sex trafficking of a minor carries a maximum term of life in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 19, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano of the Health Care Fraud Unit and Aaron L. Webman of the Economic Crimes Unit in Newark.
butcher.indictment.pdfU.S. Attorney’s Office Announces Election Day Program to Protect Election Workers and Voting RightsRead the Press Release
NEWARK, N.J. – Federal law protects elections against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.
U.S. Attorney Philip R. Sellinger announced today that the public can call the office’s Election Day Hotline at 888-636-6596 to report voting rights concerns, threats against election officials, or any other activity that would interfere with the right to vote in the District of New Jersey. This number will be active Oct. 26, 2024, through Nov. 8, 2024, and will be staffed live on Election Day, Nov. 5, 2024.
“We are committed to ensuring that every citizen in New Jersey is able to vote without interference or discrimination, and to have that vote counted. In coordination with the Department’s Election Day Program, our office will do everything in its power to protect voters and election workers throughout New Jersey.”
U.S. Attorney Philip R. Sellinger
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (when voters need assistance because of disability or inability to read or write in English).
In addition to the Election Day Hotline, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The FBI can be reached by the public at 973-792-3000.
Complaints about possible violations of the federal voting rights laws, or any civil rights violation, can be made at any time to the U.S. Attorney’s Office’s Civil Rights Hotline, 855-281-3339, or by submitting an online complaint here, or to the Civil Rights Division in Washington, D.C., by phone at 800-253-3931 or by complaint form here.
In the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places and almost always have faster reaction capacity in an emergency.
Assistant U.S. Attorneys Susan Millenky, Mark McCarren, and Joseph McFarlane will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming general election.
California Man Admits Fentanyl DistributionRead the Press Release
NEWARK, N.J. – A California man today admitted possessing with intent to distribute more than five kilograms of fentanyl in Bergen County, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Timothy Alan Blank, 55, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of possession with intent to distribute fentanyl.
According to documents filed in this case and statements made in court:
On March 8, 2024, law enforcement pulled Blank over while he was driving in Bergen County and discovered the fentanyl concealed in the vehicle.
The charge of possession with intent to distribute fentanyl comes with a maximum penalty of 20 years in prison, and a maximum fine of $1 million. Sentencing for Blank is scheduled for March 11, 2024.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation leading to today’s guilty plea. He also thanked Customs and Border Protection Air and Marine Operations, the Bergen County Sheriff’s Office, the Fort Lee Police Department, and the FBI Los Angeles Field Office.
The government is represented by Assistant U.S. Attorney Vincent D. Romano of the Criminal Division in Newark.
blank.information.pdfBelgian National Charged with Attempting to Breach Cockpit and Assaulting Flight Crew Members on March 2024 FlightRead the Press Release
NEWARK, N.J. – A Belgian national was arrested today for attempting to breach the cockpit and assaulting flight attendants aboard flight from Newark Liberty International Airport to Zurich, Switzerland, in March 2024, U.S. Attorney Philip Sellinger announced.
Jan Daeninck, 43, of Belgium, is charged by complaint with one count of interference with flight crew members and attendants by assault and intimidation, one count of assault, and one count of abusive sexual contact on an airplane. He appeared before U.S. Magistrate Judge U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
On March 31, 2024, Daeninck was a passenger aboard a Swiss International Airlines flight from Newark to Zurich. Shortly after takeoff, Daeninck walked up to a female flight attendant, grabbed both of her breasts with his hands, shook her, and began yelling at her. After the flight attendant was able to wrest herself away from Daeninck, he then approached and attempted to enter the cockpit, repeatedly striking, kicking and beating the cockpit door. While Daeninck was attempting to gain entrance to the cockpit, a male flight attendant approached Daeninck. After repeatedly striking, punching, and kicking the cockpit door and failing to gain entry to the cockpit, Daeninck assaulted the male flight attendant by repeatedly punching and kicking the flight attendant, striking him in head and upper body with a closed fist. Flight crew members were able to intervene and assist with restraining Daeninck on the floor in the vicinity of the cockpit door for the remainder of the flight. As a result of Daeninck’s actions, the flight turned around and landed back at Newark Liberty International Airport.
The charge of interfering with flight crew members and attendants carries a maximum sentence of 20 years in prison and a maximum fine of $250,000. The charge of assault by beating or striking carries a maximum punishment of one year in prison and a maximum fine of $100,000. The charge of abusive sexual contact carries a maximum sentence of two years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the charge. He also thanked the Port Authority Police Department, under the direction of Edward T. Cetnar, for its assistance.
The government is represented by Assistant U.S. Attorney Michelle L. Goldman of the Office’s General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
daeninck.complaint.pdfBank Manager Sentenced to 65 Months in Prison for Coordinating Multistate COVID-19 Relief Program Fraud SchemeRead the Press Release
CAMDEN, N.J. – A former branch manager of a national financial institution was sentenced to 65 months in prison for using his position to organize a conspiracy to help individuals obtain at least 38 fraudulent Paycheck Protection Program (PPP) loans totaling approximately $5 million, U.S. Attorney Philip R. Sellinger announced today.
Tommy Hawkins, 61, of Philadelphia, previously pleaded guilty before U.S. District Judge Karen M. Williams to one count of bank fraud conspiracy. Judge Williams imposed the sentence on Oct. 18, 2024, in Camden federal court. A codefendant, Sieff Robert Sargeant, 44, of Island Park, New York, previously pleaded guilty before Judge Williams to one count of money laundering and was sentenced on Oct. 2, 2024, to six months in prison and six months of home confinement.
According to documents filed in these cases and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (PPP). To obtain a PPP loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and expenses. In addition, businesses generally had to provide supporting documentation.
In 2020 and early 2021, Hawkins worked as the branch manager of the Conshohocken, Pennsylvania, branch of a national bank that was accepting Paycheck Protection Program (PPP) loan applications. Hawkins worked with Eric Rivera, Lisa Smith, and others to recruit individuals who owned companies with little or no operations to open bank accounts at Hawkins’ branch and apply for PPP loans. Hawkins helped the recruited individuals submit PPP loan applications that contained materially false representations about the companies’ number of employees and payroll expenses. The applications also included false documentation, including tax forms. Based on these applications, Hawkins’ bank approved at least 38 PPP loans and disbursed approximately $5 million. Hawkins received incentive compensation through the bank for opening business bank accounts for the companies that received fraudulent PPP loans and also had an agreement with Rivera and Smith for them to pay Hawkins $5,000 of the loan proceeds for each PPP loan that Hawkins helped to obtain.
In April 2021, Sargeant’s business received a PPP loan based on a fraudulent application that was submitted through Hawkins’ branch. Sargeant then paid another individual, James Wessels, to create fake payroll checks. Sargeant distributed fake payroll checks to a friend, who cashed the checks and returned the majority of the cash to Sargeant. This was done to conceal that the proceeds actually were being spent on non-payroll expenses.
In addition the prison term, Judge Williams sentenced Hawkins to three years of supervised release and ordered restitution of $5.3 million.
Lisa Smith has pleaded guilty to her role in the scheme. Charges remain pending against Rivera and Wessels, and they are presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, New York Region, under the direction of Special Agent-in-Charge Patricia Tarasca; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs in Philadelphia; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Corwin Rattler; and special agents of the U.S. Department of Labor, Office of the Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman and Attorney-in-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden.
Former Monmouth County Resident Admits Fraudulently Obtaining over $3.7 Million in Cares Act LoansRead the Press Release
NEWARK, N.J. – A former resident of Monmouth County admitted his role in a scheme to fraudulently obtain Payroll Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds, U.S. Attorney Philip R. Sellinger announced today.
Kevin Aguilar, 54, previously of Farmingdale, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court on Oct. 15, 2024, to a superseding indictment charging him with one count of conspiracy to commit bank fraud; seven counts of bank fraud; one count of conspiracy to commit wire fraud; three counts of wire fraud; one count of conspiracy to commit money laundering; one count of money laundering; and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
From April 2020 to April 2021, Aguilar conspired with others to submit seven fraudulent PPP loan applications and three fraudulent EIDL applications on behalf of four businesses. Based on the fraudulent applications, Aguilar received approximately $3.3 million in PPP loan funds and approximately $450,000 in EIDL funds. After receiving the PPP and EIDL funds, Aguilar caused those funds to be transferred to other businesses that he created to give the false appearance that the PPP and EIDL funds were being used for legitimate purposes. Aguilar then used the PPP and EIDL funds to purchase residential properties in Sherman, Texas, a new truck for approximately $100,000, and to pay for other personal expenses.
The bank fraud conspiracy count and each count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. The wire fraud conspiracy count and each count of wire fraud carries a maximum penalty of 20 years in prison and $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. The money laundering conspiracy count and money laundering count each carry a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. The aggravated identity theft counts carry an additional consecutive mandatory minimum term of two years in prison and a maximum fine of up to $250,000, or twice the gross gain or loss from the offense. Aguilar’s sentencing is scheduled for March 25, 2025.
Charges remain pending against Aguilar’s co-defendant, Jean E. Rabbitt, formerly of Farmingdale, New Jersey. The charges and allegations against Rabbitt are merely accusations and she is presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Acting Special Agent in Charge Corwin Rattler; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge is Christopher A. Nielsen; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the U.S. Attorney’s Office’s Health Care Fraud Unit, and Assistant U.S. Attorney Jennifer S. Kozar, of the U.S. Attorney’s Office’s Economic Crimes United in Newark.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of the five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
aguilar.sindictment.pdfNew Jersey Owner of Check Casher and Money Serivce Business Admits Filing More Than $325 Million in False Currency Transaction Reports, Operating and Aiding and Abetting an Unlicensed Money Transmitting BusinessRead the Press Release
CAMDEN, N.J. – The New Jersey owner of Galaxia International Inc., a check casher and money service business, admitted filing more than $325 million in false currency transaction reports and operating and aiding and abetting an unlicensed money transmitting business, U.S. Attorney Philip R. Sellinger announced today.
Ali Hassanein, 68, of Kearny, New Jersey, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb in Camden federal court on Oct. 15, 2024, to an information charging him with conspiracy to cause a financial institution to file false currency transaction reports and operating and aiding and abetting the operation of an unlicensed money transmitting business.
“The Bank Secrecy Act imposes important requirements on financial institutions, including by requiring them and their executives to file accurate reports with the government concerning certain currency transactions. These requirements play a vital role in helping law enforcement prevent, detect, and stop illicit activity. Ali Hassanein admitted that he and Galaxia flouted these requirements, which undermined the financial system and made Galaxia an easy target for bad actors. My office will continue to work to ensure that financial institutions who shirk their obligations and facilitate illicit activity are held accountable.”
U.S. Attorney Philip R. Sellinger
According to documents filed in this case and statements made in court:
From 2019 through February 2023, Hassanein owned and operated Galaxia International Services Inc. (Galaxia), a check casher and money service business that operated in New Jersey and other states. Under the Bank Secrecy Act and related regulations, Galaxia was required to file currency transaction reports (CTRs) for transactions involving more than $10,000 in currency. CTRs are required to list, among other things, the location of the transactions and the names of the people and entities physically conducting the transactions. Hassanein conducted more than $325 million in reportable check cashing transactions for a conspirator in exchange for a fee. But Hassanein caused Galaxia to file thousands of CTRs for those transactions that contained material misstatements and omissions. For example, the CTRs falsely stated that all of the transactions had occurred at Galaxia’s East Orange, New Jersey, location – where Galaxia had a license to conduct check cashing transactions – when in fact they had occurred in Jersey City, New Jersey, or Kearny, New Jersey, where Galaxia was not licensed to conduct check cashing transactions. All of the CTRs failed to list the conspirator as the conductor of the transactions. Hassanein also aided and abetted the conspirator’s operation of an unlicensed money transmitting business
The charges of conspiring to cause a financial institution to file false currency transaction reports and operating and aiding and abetting the operation of an unlicensed money transmitting business each carry a statutory maximum prison sentence of five years and a statutory maximum fine of the greatest of $250,000, twice the gross amount of any pecuniary gain that any persons derived from the offense, or twice the gross amount of any pecuniary loss sustained by any victims of the offense, whichever is greatest. Sentencing is scheduled for April 2, 2025.
U.S. Attorney Sellinger credited special agents and task force officers of the Internal Revenue Service – Criminal Investigation, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan in Newark; special agents and task force officers with the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York; and special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, New York Division, under the direction of Special Agent in Charge Patricia Tarasca, with the investigation leading to today’s guilty plea. He also thanked the Justice Department’s Money Laundering and Asset Recovery Section (MLARS) and Morristown Police Department for their assistance in the investigation.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Marko Pesce and Fatime Cano of the Economic Crimes Unit and Peter A. Laserna of the Asset Recovery and Money Laundering Unit in Newark.
hassanein.information.pdfIndiana Man Admits $500,000 Wire Fraud SchemeRead the Press Release
TRENTON, N.J. – An Indiana man admitted defrauding dozens of victims by fraudulently negotiating the sales of valuable and rare items that he did not own or possess, U.S. Attorney Philip R. Sellinger announced today.
Brian Combs, 49, Fishers, Indiana, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court on Oct. 15, 2024, to an information charging him with three counts of wire fraud.
According to documents filed in this case and statements made in court:
From April 2018 through December 2023, Combs fraudulently obtained $581,605 from dozens of victims by fraudulently negotiating sales of valuable and rare items – which he did not own or possess – with unsuspecting victims, who believed Combs would deliver these items once they paid Combs. The items included rare bottles of whiskey, precious metals, silver coins, and a rare, collectable Mickey Mantle baseball trading card. Combs frequently requested that the victims wire payment for these valuable and rare goods to him directly, rather than through the e‑commerce website where he advertised the sale of these goods, to make it more difficult for the victims to recover payment for the items Combs fraudulently failed to deliver to them.
The wire fraud charges each carry a maximum of 20 years in prison. Sentencing is scheduled for Feb. 20, 2025.
U.S. Attorney Sellinger credited special agents of the FBI Newark Division, Trenton Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Ashley Super Pitts of the Criminal Division in Trenton.
combs.information.pdfCalifornia Man Sentenced to 114 Months in Prison for Methamphetamine TraffickingRead the Press Release
CAMDEN, N.J. – A California man was sentenced today to 114 months in prison for his role in a narcotics conspiracy involving approximately 1.9 kilograms of a substance containing methamphetamine, U.S. Attorney Philip R. Sellinger announced.
Aaron Joseph, 41, of Los Angeles, California, previously pleaded guilty before Chief U.S. District Judge Renée Marie Bumb to an information charging conspiracy to possess with intent to distribute methamphetamine. Chief Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From October 2020 through July 2022, Joseph participated in a conspiracy to distribute methamphetamine. Joseph shipped packages from California to conspirators located in Camden County, New Jersey, who then distributed the methamphetamine in southern New Jersey. Joseph received payment via Cash App from a conspirator for the shipments. On Feb. 14, 2022, Joseph shipped a package containing 5,100 pills from California to New Jersey. The pills contained methamphetamine and weighed approximately 1.9 kilograms.
In addition to the prison term, Chief Judge Bumb sentenced Joseph to six years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Joseph McFarlane of the U.S. Attorney’s Office in Camden.
Bronx, New York Man, Sentenced to 13 Years in Prison for Distributing Heroin and Fentanyl from Two Drug Mills in the Bronx, Causing Death of 15-Month-Old ChildRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced today to 156 months in prison for distributing heroin and fentanyl into New Jersey from two drug mills in the Bronx, which resulted in the death of a 15-month-old child, U.S. Attorney Philip R. Sellinger announced.
Jhan Carlos Capellan Maldonado, 35, previously pleaded guilty before U.S. District Judge Esther Salas to a superseding information charging him with one count of distributing heroin and fentanyl from a drug mill in the Bronx in December 2018. Capellan Maldonado admitted that his distribution of fentanyl caused the death of a 15-month-old child. Judge Salas imposed the sentence today in Newark federal court.
Capellan Maldonado also pleaded guilty to one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl from a separate drug mill in the Bronx in February 2019. Six other individuals – Reimon Genao Rosario, 28; Dilson Vazquez Genao, 28; Eddie Urena Rodriguez, 39; Francisco Mercedes Gil, 36; Daury Contreras Ulerio, aka “Majimbou,” 39; and Jose Antonio Vazquez Pena, aka “Tono,” 51 – also of the Bronx, all have previously pleaded guilty to the same charge before Judge Salas and have been sentenced. Judge Salas imposed Capellan Maldonado’s sentence today in Newark federal court.
“In December 2018, a 15-month-old child ingested fentanyl and died. The toddler was in a Bronx apartment being used by Capellan Maldonado to run his drug distribution operation, preparing and packaging heroin and fentanyl. His drug mill led directly to the death of this child. The punishment he received today will not bring the child back, but the defendant is being brought to justice for the terrible effects of his role in trafficking this poison. The fentanyl epidemic has caused enormous pain and suffering to our communities, including the death of the child in this case.”
U.S. Attorney Philip R. Sellinger
According to documents filed in this case and statements made in court:
On Dec. 27, 2018, Capellan Maldonado was operating a drug mill at an apartment in the Bronx where he employed four individuals to store, mix, and package heroin and fentanyl in quantities for distribution into New Jersey. Capellan Maldonado admitted that while the group was preparing the heroin and fentanyl, a 15-month-old child present in the apartment ingested some of the fentanyl and died as a result. The four other individuals have been charged with homicide by the District Attorney’s Office in the Bronx.
In early February 2019, law enforcement officers learned that Capellan Maldonado was again using an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, and all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
In addition to the prison term, Judge Salas sentenced Maldonado to five years of supervised release.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, and special agents of the Drug Enforcement Administration, New York Division, under the direction of Special Agent in Charge Frank Tarentino, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney DeNae Thomas of the Health Care Fraud Unit in Newark.
Union County Tax Preparer Admits Assisting in Preparation of Fraudulent Tax ReturnsRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, tax preparer admitted assisting in the preparation of fraudulent tax returns on behalf of his clients, resulting in improperly large refunds for the tax preparer’s clients, U.S. Attorney Philip R. Sellinger announced today.
Emmanuel Amenyo, 59, of Union, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court on Oct. 10, 2024, to an information charging him with aiding and assisting in the preparation of a false and fraudulent tax return.
According to documents filed in this case and statements made in court:
From tax years 2018 through 2021, Amenyo ran a tax preparation business in which he prepared and submitted individual tax returns to the IRS on behalf of clients. Amenyo filed numerous false tax returns on behalf of his clients and subscribed to false tax returns with respect to his own taxes. These tax returns falsely claimed charitable contributions, itemized deductions, child and dependent care expenses, and other qualified expenses to which Amenyo and his clients were not entitled, resulting in improperly large tax refunds, as Amenyo knew and intended. Amenyo’s conduct caused a tax loss of $250,466.
The charge that Amenyo pleaded guilty to carries a maximum penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for April 1, 2025.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Joseph Stern of the Opioid Abuse Prevention and Enforcement Unit in Newark.
amenyo.information.pdfTwo Hudson County Men Sentenced to Prison for Gas Station Robberies and Attempted CarjackingRead the Press Release
NEWARK, N.J. – Two Hudson County, New Jersey, men were sentenced to prison terms for their involvement a string of armed robberies of gas stations, U.S. Attorney Philip R. Sellinger announced today.
Wendell Bradley Jr., 27, of Bayonne, New Jersey was sentenced by U.S. District Judge Madeline Cox Arleo in Newark federal court on Oct. 10, 2024, to 160 months in prison. Joseph Brown, 26, of Jersey City, New Jersey, was sentenced by Judge Arleo on Oct. 3, 2024, to 92 months in prison. Bradley previously pleaded guilty before Judge Arleo to one count of conspiracy to commit Hobbs Act robbery, one count of Hobbs Act robbery, one count of attempted carjacking, and one count of brandishing a firearm in furtherance of a crime of violence. Brown previously pleaded guilty to one count of attempted Hobbs Act robbery and one count of Hobbs Act robbery.
According to documents filed in this case and statements made in court:
From Jan. 3, 2022, to Feb. 4, 2022, Bradley – either alone or with Brown – would drive to a gas station, pull up to a gas pump, ask the gas station attendant to put gas in the car’s tank, and, while the tank was being filled, would pull a gun on the attendant and demand money. On Jan. 20, 2022, in Union, Brown pointed a gun at a gas station attendant, demanded money, and threated to kill him. Bradley then grabbed the attendant from behind, but the attendant was able to break free and escape into the gas station before Brown or Bradley could take any money from him.
The spree ended after Bradley and Brown robbed a gas station attendant at gunpoint in Secaucus, New Jersey. Bradley and Brown fled, and officers chased them from Secaucus to Newark, where Bradley crashed his car. While both men were running away from police, Bradley pulled his gun, approached an off-duty Essex County Sheriff’s officer, and demanded that the officer give Bradley his car. The officer disarmed Bradley and detained him.
In addition to the prison term, Judge Arleo sentenced Bradley and Brown to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the ATF, under the direction of special Agent in Charge L.C. Cheeks, Newark Field Division; the Clifton Police Department, under the direction of Chief Thomas Rinaldi, the Hillside Police Department, under the direction of Chief Vincent P. Ricciardi, Jr, the Jersey City Department of Public Safety, under the direction of Director James Shea, the Newark Police Department, under the direction of Emanuel Miranda, the North Bergan Police Department, under the direction of Chief Peter Fasilis, the Secaucus Police Department, under the direction of Chief Dennis Miller, and the Union Police Department, under the direction of Police Director Chris Donnelly, with the investigation.
The government is represented by Assistant U.S. Attorney Aaron Webman of the Economic Crimes Unit and Megan Linares of the Cybercrime Unit in Newark.
New Jersey Construction Company Owner Admits Tax EvasionRead the Press Release
NEWARK, N.J. – The owner of several New Jersey masonry construction companies pleaded guilty to willfully evading taxes, U.S. Attorney Philip R. Sellinger announced today.
Joseph Caravella, 58, of Randolph, New Jersey pleaded guilty before U.S. District Court Judge Madeline Cox Arleo in Newark federal court on Oct. 10, 2024, to a superseding information charging him with tax evasion for tax years 2008 to 2019.
According to documents filed in this case and statements made in court:
From 2008 to 2016, the IRS assessed approximately $650,000 in Trust Fund Recovery Penalties against Caravella for causing three masonry businesses that he owned to fail to pay their employment taxes. From March 2008 through April 2019, Caravella attempted to evade these taxes by placing companies that he controlled in the names of nominee owners; providing the IRS with false and misleading information as part of an Offer in Compromise; filing a false individual income tax return; using bank accounts in the names of nominees for his own purposes; causing his personal expenses to be paid with corporate funds; and causing his compensation to be inaccurately reported or not reported to the IRS on Forms W-2.
The tax evasion charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for March 18, 2025.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark, and Trial Attorneys Kenneth Vert and Evan Mulbry of the Justice Department’s Tax Division.
caravella.sinformation.pdfEx-Husband of ‘Real Housewives of New Jersey’ Star Sentenced to Seven Years in Prison for Violent Crime in Aid of Racketeering and Obstruction of JusticeRead the Press Release
NEWARK, N.J. – The ex-husband of a former star of the Bravo reality television show “The Real Housewives of New Jersey,” was sentenced today to 84 months in prison for hiring, then assisting, a soldier in the Lucchese Crime Family to assault his ex-wife’s current husband, U.S. Attorney Philip R. Sellinger announced.
Thomas Manzo, 59, of Franklin Lakes, New Jersey, was convicted on June 4, 2024, after a two-and-a-half week trial before Judge Susan D. Wigenton in Newark federal court. The jury convicted Manzo of one count of committing a violent crime in aid of racketeering, one count of conspiracy to commit a violent crime in aid of racketeering, and one count of falsifying and concealing documents related to a federal investigation.
“Whether you’re actually in the Mafia or not, hiring the mob to assault someone because of your marital problems is abhorrent. Covering up the role you played only makes it worse. The jury’s verdict, and today’s sentence, make clear that this office will spare no resources to hold accountable anyone who commits such crimes.”
U.S. Attorney Philip R. Sellinger
According to documents filed in this case and the evidence at trial:
In the spring of 2015, Manzo, a co-owner of The Brownstone, a Paterson, New Jersey, catering hall, hired Lucchese Crime Family soldier John Perna to assault his ex-wife’s then-boyfriend, paying for the assault with a free wedding reception. Perna, a “made man” with his own crew, worked with them to carry out the assault on July 18, 2015. The Perna wedding, held in August 2015 at the Brownstone, was attended by approximately 330 people, many of whom also were members of the Lucchese Crime Family. Four years later, Manzo concealed and falsified documents related to the Perna wedding in response to a grand jury subpoena.
In addition to the prison term, Judge Wigenton sentenced Manzo to three years of supervised release and ordered him immediately remanded.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the conviction. U.S. Attorney Sellinger also thanked special agents of the U.S. Department of Labor, Office of the Inspector General, Officers with the Lyndhurst Police Department, Officers with the Totowa Police Department, Investigators with the Monmouth County Prosecutors Office, Investigators of the New Jersey State Police, and the Passaic County Prosecutor’s Office for their substantial assistance.
The government is represented by Assistant U.S. Attorney Kendall R. Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit, Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office’s Special Prosecutions Division and Bruce P. Keller, Special Counsel to the U.S. Attorney.
Camden Men Sentenced to Prison for String of Armed Robberies and CarjackingsRead the Press Release
CAMDEN, N.J. – Two Camden men have been sentenced to prison for their respective roles in conspiracies that involved committing armed carjackings and robbing multiple gas stations in southern New Jersey, U.S. Attorney Philip R. Sellinger announced.
Kamau Bradshaw, 22, was sentenced today to 108 months in prison; Paul Rogers, 30, was sentenced on Aug. 7, 2024, to 188 months in prison. Both defendants previously pleaded guilty before Chief U.S. District Judge Renée Marie Bumb to informations charging them with one count of conspiring to commit armed robberies, one count of committing an armed robbery, and one count of conspiring to commit armed carjackings. Judge Bumb imposed the sentences in Camden federal court.
According to documents filed in this case and statements made in court:
On Sept. 14, 2021, two masked individuals carrying an AR-style rifle robbed a gas station in Pennsauken, New Jersey. One of the robbers wore a gray Nike hooded sweatshirt and scuffed tan work boots. The second robber wore a tan hooded sweatshirt with “REACTIVE” printed on the sleeves and striped boxer shorts. They obtained cash and cigarettes while brandishing the firearm. Shortly after the robbery, two individuals were seen returning to a residence in Camden with a large duffle bag. On Sept. 17, 2021, law enforcement officers executed a federal search warrant at the Camden residence and recovered, among other items, a duffle bag, an AR-style rifle, a gray Nike sweatshirt, scuffed tan work boots, and a tan hooded sweatshirt with “REACTIVE” printed on the sleeves. Bradshaw and Rogers were present when law enforcement agents executed the search warrant, at which time Bradshaw was wearing striped boxer shorts consistent with those worn by one of the robbers during the robbery.
Rogers and Bradshaw each admitted their role in eight gas station robberies or attempted robberies in addition to the Sept. 14, 2021, robbery in Pennsauken, including robberies in Haddon Township on Aug. 30, 2021; Pennsauken on Aug. 30, 2021; Bridgeton on Aug. 31, 2021; Brooklawn on Aug. 31, 2021; Vineland on Aug. 31, 2021; Pennsauken on Sept. 1, 2021; Haddon Township on Sept. 1, 2021; and Haddon Township on Sept. 16, 2021. Two of the gas stations were victimized more than once. At each gas station, at least one member of the conspiracy brandished what appeared to be an assault weapon in order to threaten the gas station attendant.
For several of the robberies, Bradshaw and Rogers used a car they obtained by committing an armed carjacking in Philadelphia. Members of the carjacking conspiracy traveled from Camden to Philadelphia and brandished what appeared to be an assault weapon in order to force a driver and passenger from an automobile. They returned to Camden with the victims’ car, which they proceeded to use to drive to and from some of their gas stations robberies.
In addition to the prison term, Chief Judge Bumb sentenced Rogers and Bradshaw each to three years of supervised release.
U.S. Attorney Sellinger credited special agents with Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks, with the investigation leading to the sentencings. He also thanked the Camden County Prosecutor’s Office, Bridgeton City Police Department, Brooklawn Borough Police Department, Camden County Police Department, Haddon Township Police Department, New Jersey State Police, Oaklyn Police Department, Pennsauken Township Police Department, Vineland Police Department, and the Philadelphia Police Department.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
TD Bank Pleads Guilty to Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B ResolutionRead the Press Release
NEWARK, N.J. – TD Bank, N.A. (TDBNA), the 10th largest bank in the United States, and its parent company TD Bank US Holding Company (TDBUSH) (together with TDBNA, “TD Bank”) pleaded guilty today and agreed to pay over $1.8 billion in penalties to resolve the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s investigation into violations of the Bank Secrecy Act (BSA) and money laundering.
TDBNA pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to conspiring to fail to maintain an anti-money laundering (AML) program that complies with the BSA, fail to file accurate Currency Transaction Reports (CTRs), and launder money. TDBUSH pleaded guilty to causing TDBNA to fail to maintain an AML program that complies with the BSA and to fail to file accurate CTRs.
TD Bank’s guilty pleas are part of a coordinated resolution with the Board of Governors of the Federal Reserve System (FRB), as well as the Treasury Department’s Office of the Comptroller of the Currency (OCC) and Financial Crimes Enforcement Network (FinCEN).
“By making its services convenient for criminals, TD Bank became one,” said Attorney General Merrick B. Garland. “Today, TD Bank also became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures, and the first US bank in history to plead guilty to conspiracy to commit money laundering. TD Bank chose profits over compliance with the law — a decision that is now costing the bank billions of dollars in penalties. Let me be clear: our investigation continues, and no individual involved in TD Bank’s illegal conduct is off limits.”
“TD Bank prioritized growth and convenience over following its legal obligations. As a result of staggering and pervasive failures in oversight, it willfully failed to monitor trillions of dollars of transactions – including those involving ACH transactions, checks, high-risk countries, and peer-to-peer transactions – which allowed hundreds of millions of dollars from money laundering networks to flow through the bank, including for international drug traffickers. The bank was aware of these risks and failed to take steps to protect against them, including for two networks prosecuted in New Jersey and elsewhere – one that dumped piles of cash on the bank’s counters and another that allegedly withdrew amounts from ATMs 40 to 50 times higher than the daily limit for personal accounts.”
U.S. Attorney Philip R. Sellinger
“For years, TD Bank starved its compliance program of the resources needed to obey the law. Today’s historic guilty plea, including the largest penalty ever imposed under the Bank Secrecy Act, offers an unmistakable lesson: crime doesn’t pay — and neither does flouting compliance,” said Deputy Attorney General Lisa Monaco. “Every bank compliance official in America should be reviewing today’s charges as a case study of what not to do. And every bank CEO and board member should be doing the same. Because if the business case for compliance wasn’t clear before — it should be now.”
“For nearly a decade, TD Bank failed to update its anti-money laundering compliance program to address known risks. As bank employees acknowledged in internal communications, these failures made the bank an ‘easy target’ for the ‘bad guys.’ These failures also allowed corrupt bank employees to facilitate a criminal network’s laundering of tens of millions of dollars,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “U.S. financial institutions are the first line of defense against money laundering and illicit finance. When they participate in crime rather than prevent it, we will not hesitate to hold them accountable to the fullest extent of the law.”
According to court documents, between January 2014 and October 2023, TD Bank had long-term, pervasive, and systemic deficiencies in its U.S. AML policies, procedures, and controls but failed to take appropriate remedial action. Instead, senior executives at TD Bank enforced a budget mandate, referred to internally as a “flat cost paradigm,” requiring that TD Bank’s budget not increase year-over-year, despite its profits and risk profile increasing significantly over the same period. Although TD Bank maintained elements of an AML program that appeared adequate on paper, fundamental, widespread flaws in its AML program made TD Bank an “easy target” for perpetrators of financial crime.
Over the last decade, TD Bank’s federal regulators and TD Bank’s own internal audit group repeatedly identified concerns about its transaction monitoring program, a key element of an appropriate AML program necessary to properly detect and report suspicious activities. Nonetheless, from 2014 through 2022, TD Bank’s transaction monitoring program remained effectively static, and did not adapt to address known, glaring deficiencies; emerging money laundering risks; or TD Bank’s new products and services. For years, TD Bank failed to appropriately fund and staff its AML program, opting to postpone and cancel necessary AML projects prioritizing a “flat cost paradigm” and the “customer experience.”
Throughout this time, TD Bank intentionally did not automatically monitor all domestic automated clearinghouse (ACH) transactions, most check activity, and numerous other transaction types, resulting in 92% of total transaction volume going unmonitored from Jan. 1, 2018, to April 12, 2024. This amounted to approximately $18.3 trillion of transaction activity. TD Bank also added no new transaction monitoring scenarios and made no material changes to existing transaction monitoring scenarios from at least 2014 through late 2022; implemented new products and services, like Zelle, without ensuring appropriate transaction monitoring coverage; failed to meaningfully monitor transactions involving high-risk countries; instructed stores to stop filing internal unusual transaction reports on certain suspicious customers; and permitted more than $5 billion in transactional activity to occur in accounts even after the bank decided to close them.
TD Bank’s AML failures made it “convenient” for criminals, in the words of its employees. These failures enabled three money laundering networks to collectively transfer more than $670 million through TD Bank accounts between 2019 and 2023. Between January 2018 and February 2021, one money laundering network processed more than $470 million through the bank through large cash deposits into nominee accounts. The operators of this scheme provided employees gift cards worth more than $57,000 to ensure employees would continue to process their transactions. And even though the operators of this scheme were clearly depositing cash well over $10,000 in suspicious transactions, TD Bank employees did not identify the conductor of the transaction in required reports. In a second scheme between March 2021 and March 2023, a high-risk jewelry business moved nearly $120 million through shell accounts before TD Bank reported the activity. In a third scheme, money laundering networks deposited funds in the United States and quickly withdrew those funds using ATMs in Colombia. Five TD Bank employees conspired with this network and issued dozens of ATM cards for the money launderers, ultimately conspiring in the laundering of approximately $39 million. The Justice Department has charged over two dozen individuals across these schemes, including two bank insiders. TD Bank’s plea agreement requires continued cooperation in ongoing investigations of individuals.
As part of the plea agreement, TD Bank has agreed to forfeit $452,432,302.00 and pay a criminal fine of $1,434,513,478.40, for a total financial penalty of $1,886,945,780.40. TD Bank has also agreed to retain an independent compliance monitor for three years and to remediate and enhance its AML compliance program. TD Bank has separately reached agreements with the FRB, OCC, and FinCEN, and the Justice Department will credit $123.5 million of the forfeiture toward the FRB’s resolution.
The Justice Department reached its resolution with TD Bank based on a number of factors, including the nature, seriousness, and pervasiveness of the offenses, as a result of which TD Bank became the bank of choice for multiple money laundering organizations and criminal actors and processed hundreds of millions of dollars in money laundering transactions. Although TD Bank did not voluntarily disclose its wrongdoing, it received partial credit for its strong cooperation with the Department’s investigation and the ongoing remediation of its AML program. TD Bank did not receive full credit for its cooperation because it failed to timely escalate relevant AML concerns to the Department during the investigation. Accordingly, the total criminal penalty reflects a 20% reduction based on the bank’s partial cooperation and remediation.
IRS Criminal Investigation, Federal Deposit Insurance Corporation Office of Inspector General, and Drug Enforcement Administration investigated the case. The Morristown Police Department, the U.S. Attorney’s Office for the District of Puerto Rico, Homeland Security Investigations, U.S. Customs and Border Protection, and the New York City Police Department provided substantial assistance.
Assistant U.S. Attorneys Mark J. Pesce of the Economic Crimes Unit and Angelica Sinopole for the District of New Jersey’s Health Care Fraud Unit and Trial Attorneys D. Zachary Adams and Chelsea R. Rooney of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) prosecuted the case.
MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. Since its creation in 2010, the Bank Integrity Unit has prosecuted financial institutions for violations of the BSA, money laundering, sanctions, and other laws, imposing total penalties of over $25 billion.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
tdbush.information.pdf tdbna.information.pdfTD Bank Pleads Guilty to Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B ResolutionRead the Press Release
WASHINGTON — TD Bank N.A. (TDBNA), the 10th largest bank in the United States, and its parent company TD Bank US Holding Company (TDBUSH) (together with TDBNA, TD Bank) pleaded guilty today and agreed to pay over $1.8 billion in penalties to resolve the Justice Department’s investigation into violations of the Bank Secrecy Act (BSA) and money laundering.
TDBNA pleaded guilty to conspiring to fail to maintain an anti-money laundering (AML) program that complies with the BSA, fail to file accurate Currency Transaction Reports (CTRs), and launder money. TDBUSH pleaded guilty to causing TDBNA to fail to maintain an AML program that complies with the BSA and to fail to file accurate CTRs.
TD Bank’s guilty pleas are part of a coordinated resolution with the Board of Governors of the Federal Reserve Board (FRB), as well as the Treasury Department’s Office of the Comptroller of the Currency (OCC) and Financial Crimes Enforcement Network (FinCEN).
“By making its services convenient for criminals, TD Bank became one,” said Attorney General Merrick B. Garland. “Today, TD Bank also became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures, and the first US bank in history to plead guilty to conspiracy to commit money laundering. TD Bank chose profits over compliance with the law — a decision that is now costing the bank billions of dollars in penalties. Let me be clear: our investigation continues, and no individual involved in TD Bank’s illegal conduct is off limits.”
“For years, TD Bank starved its compliance program of the resources needed to obey the law. Today’s historic guilty plea, including the largest penalty ever imposed under the Bank Secrecy Act, offers an unmistakable lesson: crime doesn’t pay — and neither does flouting compliance,” said Deputy Attorney General Lisa Monaco. “Every bank compliance official in America should be reviewing today’s charges as a case study of what not to do. And every bank CEO and board member should be doing the same. Because if the business case for compliance wasn’t clear before — it should be now.”
“For nearly a decade, TD Bank failed to update its anti-money laundering compliance program to address known risks. As bank employees acknowledged in internal communications, these failures made the bank an ‘easy target’ for the ‘bad guys.’ These failures also allowed corrupt bank employees to facilitate a criminal network’s laundering of tens of millions of dollars,” said Principal Assistant Attorney General Nicole M. Argentieri, head of the Justice Department's Criminal Division. “U.S. financial institutions are the first line of defense against money laundering and illicit finance. When they participate in crime rather than prevent it, we will not hesitate to hold them accountable to the fullest extent of the law.”
“TD Bank prioritized growth and convenience over following its legal obligations,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “As a result of staggering and pervasive failures in oversight, it willfully failed to monitor trillions of dollars of transactions – including those involving ACH transactions, checks, high-risk countries, and peer-to-peer transactions – which allowed hundreds of millions of dollars from money laundering networks to flow through the bank, including for international drug traffickers. The bank was aware of these risks and failed to take steps to protect against them, including for two networks prosecuted in New Jersey and elsewhere – one that dumped piles of cash on the bank’s counters and another that allegedly withdrew amounts from ATMs 40 to 50 times higher than the daily limit for personal accounts.”
According to court documents, between January 2014 and October 2023, TD Bank had long-term, pervasive, and systemic deficiencies in its U.S. AML policies, procedures, and controls but failed to take appropriate remedial action. Instead, senior executives at TD Bank enforced a budget mandate, referred to internally as a “flat cost paradigm,” requiring that TD Bank’s budget not increase year-over-year, despite its profits and risk profile increasing significantly over the same period. Although TD Bank maintained elements of an AML program that appeared adequate on paper, fundamental, widespread flaws in its AML program made TD Bank an “easy target” for perpetrators of financial crime.
Over the last decade, TD Bank’s federal regulators and TD Bank’s own internal audit group repeatedly identified concerns about its transaction monitoring program, a key element of an appropriate AML program necessary to properly detect and report suspicious activities. Nonetheless, from 2014 through 2022, TD Bank’s transaction monitoring program remained effectively static, and did not adapt to address known, glaring deficiencies; emerging money laundering risks; or TD Bank’s new products and services. For years, TD Bank failed to appropriately fund and staff its AML program, opting to postpone and cancel necessary AML projects prioritizing a “flat cost paradigm” and the “customer experience.”
Throughout this time, TD Bank intentionally did not automatically monitor all domestic automated clearinghouse (ACH) transactions, most check activity, and numerous other transaction types, resulting in 92% of total transaction volume going unmonitored from Jan. 1, 2018, to April 12, 2024. This amounted to approximately $18.3 trillion of transaction activity. TD Bank also added no new transaction monitoring scenarios and made no material changes to existing transaction monitoring scenarios from at least 2014 through late 2022; implemented new products and services, like Zelle, without ensuring appropriate transaction monitoring coverage; failed to meaningfully monitor transactions involving high-risk countries; instructed stores to stop filing internal unusual transaction reports on certain suspicious customers; and permitted more than $5 billion in transactional activity to occur in accounts even after the bank decided to close them.
TD Bank’s AML failures made it “convenient” for criminals, in the words of its employees. These failures enabled three money laundering networks to collectively transfer more than $670 million through TD Bank accounts between 2019 and 2023. Between January 2018 and February 2021, one money laundering network processed more than $470 million through the bank through large cash deposits into nominee accounts. The operators of this scheme provided employees gift cards worth more than $57,000 to ensure employees would continue to process their transactions. And even though the operators of this scheme were clearly depositing cash well over $10,000 in suspicious transactions, TD Bank employees did not identify the conductor of the transaction in required reports. In a second scheme between March 2021 and March 2023, a high-risk jewelry business moved nearly $120 million through shell accounts before TD Bank reported the activity. In a third scheme, money laundering networks deposited funds in the United States and quickly withdrew those funds using ATMs in Colombia. Five TD Bank employees conspired with this network and issued dozens of ATM cards for the money launderers, ultimately conspiring in the laundering of approximately $39 million. The Justice Department has charged over two dozen individuals across these schemes, including two bank insiders. TD Bank’s plea agreement requires continued cooperation in ongoing investigations of individuals.
As part of the plea agreement, TD Bank has agreed to forfeit $452,432,302.00 and pay a criminal fine of $1,434,513,478.40, for a total financial penalty of $1,886,945,780.40. TD Bank has also agreed to retain an independent compliance monitor for three years and to remediate and enhance its AML compliance program. TD Bank has separately reached agreements with the FRB, OCC, and FinCEN, and the Justice Department will credit $123.5 million of the forfeiture toward the FRB’s resolution.
The Justice Department reached its resolution with TD Bank based on a number of factors, including the nature, seriousness, and pervasiveness of the offenses, as a result of which TD Bank became the bank of choice for multiple money laundering organizations and criminal actors and processed hundreds of millions of dollars in money laundering transactions. Although TD Bank did not voluntarily disclose its wrongdoing, it received partial credit for its strong cooperation with the Department’s investigation and the ongoing remediation of its AML program. TD Bank did not receive full credit for its cooperation because it failed to timely escalate relevant AML concerns to the Department during the investigation. Accordingly, the total criminal penalty reflects a 20% reduction based on the bank’s partial cooperation and remediation.
IRS Criminal Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and Drug Enforcement Administration investigated the case. The Morristown Police Department, U.S. Attorney’s Office for the District of Puerto Rico, Homeland Security Investigations, U.S. Customs and Border Protection, and New York City Police Department provided substantial assistance.
Trial Attorneys D. Zachary Adams and Chelsea R. Rooney of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Mark J. Pesce and Angelica Sinopole for the District of New Jersey prosecuted the case.
MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. Since its creation in 2010, the Bank Integrity Unit has prosecuted financial institutions for violations of the BSA, money laundering, sanctions, and other laws, imposing total penalties of over $25 billion.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
TD Bank US Holding Company Information
TD Bank N.A. Information
TD Bank US Holding Company Plea Agreement and Attachments
TD Bank N.A. Plea Agreement and Attachments
Somerset County Man Admits Federal Hate Crime in Connection with Breaking into Center for Islamic Life at Rutgers University and Destroying PropertyRead the Press Release
Video Statement:
https://youtu.be/eBEn8v-pD10
NEWARK, N.J. – A Somerset County, New Jersey, man admitted committing a federal hate crime for breaking into the Center for Islamic Life (CILRU) at Rutgers University in New Brunswick and destroying property, U.S. Attorney Philip R. Sellinger for the District of New Jersey, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, and New Jersey State Attorney General Matthew J. Platkin announced today.
Jacob Beacher, 24, of North Plainfield, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court on Oct. 9, 2024, to an information charging him with damage to religious property.
“The free exercise of religion is a fundamental right of all Americans. Jacob Beacher admitted he intentionally broke into the Center for Islamic Life during the holy Eid-al-Fitr holiday and damaged and destroyed religious artifacts because of the Islamic faith of those associated with the facility. This office will not tolerate the use of force or threats to intimidate people and put them in fear of worshipping as they see fit.”
U.S. Attorney Philip R. Sellinger
“This defendant is being held accountable for Islamophobic-fueled acts of hate, interfering with the religious freedom of university students and staff during a sacred holiday for those of the Islamic faith,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department stands ready, along with our state and local partners, to hold accountable people who use force, or threats of violence, in order to intimidate people from exercising their religious beliefs. Islamophobic hate crimes have no place in our society today. We will continue to enforce the laws that make it safe for people of all faiths to engage in religious observance, including at educational institutions.”
“When we learned of this vandalism back in April, we immediately engaged with our law enforcement partners and Rutgers University,” FBI Newark Acting Special Agent in Charge Nelson I. Delgado said. “Within days, we tracked down and arrested Beacher. We want our actions and the speed with which we responded to illustrate our commitment and resolve to protect houses of worship in New Jersey. We all have the right to practice whatever religion we choose, without fear of hate marring the physical and spiritual place where we do it.”
According to documents filed in this case and statements made in court:
On April 10, 2024, during the Eid-al-Fitr holiday, Beacher broke into the CILRU around 2:41 a.m., where he damaged the CILRU’s property, including several religious artifacts, such as Turbah prayer stones, which are clay stones on which Muslims prostrate during prayer, and numerous other items that contained holy language from the Qur’an, Islam’s sacred scripture. Beacher also stole a Palestinian flag and a charity box belonging to the CILRU. He caused damage and destruction of property in excess of $5,000.
The charge of damage to religious property carries a maximum potential penalty of three years in prison and a fine of up to $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Feb. 11, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, Branchburg Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; prosecutors and detectives from the New Jersey Attorney General’s Office, under the direction of Attorney General Matthew J. Platkin; detectives from the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; the Rutgers University Police Department-New Brunswick Division, under the leadership of Chief of University Police Kenneth Cop; and the New Jersey Regional Computer Forensics Laboratory.
The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the General Crimes Unit, and R. Joseph Gribko, Deputy Chief of the Civil Rights Division, with assistance from the National Security Unit for the District of New Jersey, as well by Trial Attorney Daniel Grunert of the Justice Department’s Civil Rights Division.
beacher.information.pdfNew Jersey Man Pleads Guilty to Federal Hate Crime for Breaking into Center for Islamic Life at Rutgers University and Destroying PropertyRead the Press Release
A New Jersey man pleaded guilty yesterday to a federal hate crime for breaking into the Center for Islamic Life at Rutgers University (CILRU) in New Brunswick, New Jersey, and destroying property.
“This defendant is being held accountable for Islamophobic-fueled acts of hate, interfering with the religious freedom of university students and staff during a sacred holiday for those of the Islamic faith,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department stands ready, along with our state and local partners, to hold accountable people who use force, or threats of violence, in order to intimidate people from exercising their religious beliefs. Islamophobic hate crimes have no place in our society today. We will continue to enforce the laws that make it safe for people of all faiths to engage in religious observance, including at educational institutions.”
“The free exercise of religion is a fundamental right of all Americans,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Jacob Beacher admitted he intentionally broke into the Center for Islamic Life during the holy Eid-al-Fitr holiday and damaged and destroyed religious artifacts because of the Islamic faith of those associated with the facility. This office will not tolerate the use of force or threats to intimidate people and put them in fear of worshipping as they see fit.”
“When we learned of this vandalism back in April, we immediately engaged with our law enforcement partners and Rutgers University,” said Acting Special Agent in Charge Nelson I. Delgado of the FBI Newark Field Office. “Within days, we tracked down and arrested Beacher. We want our actions and the speed with which we responded to illustrate our commitment and resolve to protect houses of worship in New Jersey. We all have the right to practice whatever religion we choose, without fear of hate marring the physical and spiritual place where we do it.”
According to court documents, on or about April 10, at approximately 2:39 a.m., during the Eid- al-Fitr holiday, video surveillance footage showed Jacob Beacher, 24, walking toward the rear door of the CILRU. Soon after, at approximately 2:41 a.m., an intruder, later determined to be Beacher, forcibly entered the CILRU through its back door. Specifically, Beacher broke a glass pane on the door, pushed through a piece of plexiglass that was affixed to the interior side of the door and then manually opened the door from the inside by reaching through the broken glass to unlatch a deadbolt lock.
Once inside the CILRU, Beacher damaged the CILRU’s property, including several religious artifacts, such as Turbah prayer stones and numerous items that contained holy language from the Qur’an, Islam’s sacred scripture. Beacher also stole a Palestinian flag and at least one charity box belonging to the CILRU.
A sentencing hearing will be scheduled for a later date. Beacher faces a maximum penalty of three years in prison. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.
The FBI Newark Field Office, Branchburg Resident Agency, New Jersey Attorney General’s Office, Middlesex County Prosecutor’s Office, Rutgers University Police Department-New Brunswick Division and New Jersey Regional Computer Forensics Laboratory investigated the case.
Assistant U.S. Attorneys Benjamin Levin and R. Joseph Gribko for the District of New Jersey and Trial Attorney Daniel Grunert of the Justice Department’s Civil Rights Division are prosecuting the case.
Repeat Offender Sentenced to 135 Months in Prison for Possession of Child PornographyRead the Press Release
NEWARK, N.J. –A Hudson County, New Jersey, man was sentenced today to 135 months in prison for possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Christopher Carvajal, 31, of North Bergen, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of possession of child pornography. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In April 2023, Carvajal’s iPhone was seized at Newark International Airport. A search revealed that Carvajal’s iPhone contained more than 900 video files and more than 400 image files depicting sexual abuse of minors, including infants or toddlers. Carvajal’s iPhone also contained communications in which Carvajal discussed his desire for sexual encounters with young children. Carvajal was previously convicted in the Superior Court of New Jersey, Bergen County, of a child pornography offense.
In addition to the prison term, Judge Cecchi sentenced Carvajal to 15 years of supervised release.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division in Newark.
Owner of Garfield Counseling Center Sentenced to 15 Months in Prison for Orchestrating Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – The owner of a New Jersey counseling center was sentenced today to 15 months in prison for her role in a health care fraud scheme involving hundreds of false claims, U.S. Attorney Philip R. Sellinger announced.
Maria P. Cosentino, 61, of Garfield, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging her with participating in a health care fraud scheme. Judge Hayden imposed the sentence today in Newark federal court,
According to documents filed in the case and statements made in court:
Cosentino owned Bergen Alliance Counseling Services, which provided counseling services and mental health treatment to children, families, couples, and adults. She admitted that for years she submitted false claims to private health insurance plans for counseling sessions that she never provided. Cosentino falsely claimed that various individuals had received counseling at the center when in fact they had been out of the country, had ceased attending the practice, or had never visited the counseling center at all. The false claims caused insurance plans to issue reimbursement checks to the center even though the individuals had never received any treatment. Cosentino kept the illicit profits, which totaled more than $700,000.
In addition to the prison term, Judge Hayden sentenced Cosentino to three years of supervised release and ordered her to pay restitution of $708,038.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney DeNae Thomas of the Health Care Fraud Unit in Newark.
Member of Marion Gardens Jersey City Gang Sentenced to 234 Months in Prison for Racketeering, Violent CrimesRead the Press Release
NEWARK, N.J. – A member of a Jersey City gang associated with the Marion Gardens Housing Complex was sentenced today to 234 months in prison for racketeering, violent crimes in aid of racketeering, drug trafficking, and firearms offenses, U.S. Attorney Philip R. Sellinger announced.
Jervon Morris, aka “Sticky,” 35, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to racketeering conspiracy and related crimes.
According to documents filed in this case and statements made in court:
Morris and his co-defendants are all members and associates of the neighborhood street gang associated with the Marion Gardens Housing Complex, which routinely distributes cocaine and heroin, among other controlled substances, in and around the Marion Gardens Housing Complex. Members and associates of the gang also engaged in acts of violence, including numerous assaults, shootings, and murders, which targeted rival gang members and others. On July 28, 2011, Morris, Kevin Williams, aka “KK,” aka “Kay Kay,” 31, and other members of the Marion Gardens street gang, murdered a victim in the area of Gifford Avenue and Bergen Avenue in Jersey City.
In addition to the prison term, Judge Cecchi sentenced Morris to three years of supervised release.
On Feb. 7, 2018, Williams and another member of the Marion Gardens street gang assaulted a victim in the area of Summit Avenue and Magnolia Avenue in Jersey City. Williams was sentenced on Oct. 3, 2024, to 198 months in prison.
On June 30, 2018, Terick Rogers, aka “Moot,” 32, and two other members of the enterprise shot five people while celebrating “Meech Day” in honor of a deceased fellow gang member. On Aug. 21, 2024, Rogers, was sentenced to 192 months in prison.
On Jan. 9, 2019, Jakeem Gibson-Madison, aka “Beanz,” 30, and another member of the enterprise, traveled to the area of Grant Avenue and Ocean Avenue to target a rival gang member, at which time three victims were shot at, two of whom were hit. On Aug. 20, 2024, Gibson-Madison was sentenced to 180 months in prison.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Jersey City Police Department, under the direction of Director James Shea, for the investigation leading to the charges.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Desiree Grace, Chief of the Criminal Division for the District of New Jersey in Newark.
Disbarred Attorney Admits Defrauding Victims in Ponzi-Like Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, disbarred attorney today admitted a wire fraud scheme that caused losses of more than $1 million, U.S. Attorney Philip R. Sellinger announced.
Lawrence Coven, 61, of Hillsborough, New Jersey, pleaded guilty before U.S. District Court Judge Robert Kirsch in Trenton federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
Coven operated and controlled Sunrise Enterprises LLC, which purported to provide financial services to investors. In reality, Coven induced victim investors into sending him funds by falsely representing that he would invest their money through Sunrise in exchange for large profits by providing short-term loans to borrowers who could not obtain standard loans. He falsely guaranteed investors returns of between 10 to 15 percent on their investments and told investors that their investments were risk-free. But instead of investing the money as he promised, Coven diverted investor funds for personal expenses, including utilities, entertainment, real estate, credit card bills, and cash withdrawals. And when investors began asking questions, Coven provided them with false assurances that their money was safe and used money from existing investors to make payments to other investors in a Ponzi-like fashion.
The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the victim, whichever is greatest. Sentencing is scheduled for Feb. 13, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Olta Bejleri and Fatime Meka Cano of the Economic Crimes Unit in Newark.
coven.information.pdfArizona Man Sentenced to 49 Months in Prison for $4.4 Million Conspiracy to Defraud IRSRead the Press Release
NEWARK, N.J. – An Arizona man was sentenced today to 49 months in prison for conspiring to obtain over $4.4 million by defrauding the IRS, U.S. Attorney Philip R. Sellinger announced.
Walid Khater, 38, of Mesa, Arizona, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. Walid Khater’s conspirator, Omar Khater, 33, of Fairfield, New Jersey, previously pleaded guilty to the same charges and was sentenced on June 12, 2024, to 57 months in prison.
According to documents filed in this case and statements made in court:
Walid and Omar Khater were relatives who worked together and with others to steal victims’ identities, which they used to file false tax returns and fraudulently receive tax refunds from the IRS. They electronically submitted tax documents to the IRS falsely claiming that the individual taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings. The false filings also claimed tax withholdings on the purported income or gambling winnings that entitled the tax filer to refund payments from the IRS.
The Khaters and others typically submitted these fraudulent tax filings using the names and personal identifying information of individual taxpayers without their knowledge or permission. The fraudulent filings caused the IRS to pay lucrative tax refunds, totaling $4.49 million, which the Khaters and others directed to various bank accounts that they controlled.
In addition to the prison term, Judge Martinotti sentenced Walid Khater to three years of supervised release and ordered restitution of $4.49 million.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan, and special agents of FBI-Newark, under the direction of Acting Special Agent in Charge Nelson I. Delgado with the investigation leading to the sentencing. He also thanked the NJ Transit Police.
The government is represented by Assistant U.S. Attorneys Fatime Meka Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark.
Essex County Man Sentenced to 10 Years in Prison for Unlawful Possession of Ammunition by a Convicted FelonRead the Press Release
NEWARK, N.J. – An Essex County man was sentenced today to 120 months in prison for being a felon in possession of ammunition, Attorney Philip R. Sellinger announced today.
Lamar McCullough, 30, of Essex County, was convicted by a federal jury on June 7, 2024, of unlawful possession of ammunition by a convicted felon following a trial before U.S. District Judge Katherine Hayden, who imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On March 5, 2021, members of the Newark Police Department responded to a report of a shooting victim at University Hospital. Surveillance video recorded at 7:22 p.m. showed McCullough shoot a victim four times at close range in the middle of Isabella Avenue in Newark. Four 9-millimeter shell casings were recovered from the area where McCullough discharged the firearm.
In addition to the prison term, Judge Hayden sentenced McCullough to three years of supervised release.
U.S. Attorney Philip R. Sellinger credited Newark Police Department, under the direction of Public Safety Director Fritz Fragé, the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, and special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Department of Homeland Security – Homeland Security Investigations, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Jessica Ecker of the Healthcare Fraud Unit and Katherine Calle of the Special Prosecutions Division.
Former Salem County Man Admits Role in Stolen Check SchemeRead the Press Release
CAMDEN, N.J. – A former Salem County, New Jersey, man admitted his role in a scheme involving checks stolen from the mail and other sources, U.S. Attorney Philip R. Sellinger announced today.
Dezhon McCrae, 25, formerly of Penns Grove, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court to a six-count information charging him with two counts of conspiracy to commit bank fraud, possession of a stolen postal key, possession of stolen mail, aggravated identity theft, and conspiracy to commit Hobbs Act robbery.
According to documents filed in this case and statements made in court:
Count One
From May 2018 through February 2020, McCrae was part of a “card cracking” conspiracy in which the conspirators obtained stolen checks from the mail and other sources. They then used the stolen checks to create counterfeit checks with the same routing and account numbers for deposit into area banks. Next, the conspirators posted advertisements on social media, seeking individuals who had bank accounts and were willing to give the conspirators access to their accounts. The conspirators then deposited the counterfeit checks into the compromised banks accounts. The conspirators transferred as much money as possible out of the accounts before the banks discovered that the deposits were fraudulent. The conspirators were able to defraud the victim banks of over $274,000. McCrae’s role in this scheme resulted in over $10,000 loss to the victim banks. Three other codefendants have already been sentenced in connection with this scheme and three additional codefendants have pleaded guilty and are awaiting sentencing.
Count Two
After being charged via federal complaint for the conduct alleged in Count One of the information, McCrae engaged in a second scheme to commit bank fraud. From May 11, 2022, to July 27, 2022, McCrae participated in a nearly identical scheme to defraud another bank. This time, the victim bank suffered over $14,000 of loss due to McCrae’s offense.
Counts Three and Four
On Aug. 18, 2023, while the complaint for the allegations in Count One were still pending, McCrae was residing in Paulk County, Georgia. Local police were dispatched to McCrae’s residence in response to eye-witness reports of a shooting. The investigation of the shooting led to the discovery of a stolen postal mailbox key and stolen mail in McCrae’s residence.
Count Five
During the investigation of the Aug. 18, 2023 shooting at McCrae’s residence, local police obtained a warrant to search McCrae’s cellphone. The cellphone was found to contain evidence that McCrae had manufactured a fraudulent New Jersey driver’s license in the name of a real person, but using the photograph of a conspirator. The cellphone evidence also showed that McCrae mailed the false ID to his conspirators in Camden in late June 2023. On July 3, 2023, the false ID was used in an attempt to cash a stolen check at a bank in New Jersey. The bank’s employees were suspicious of the fraudulent ID and the conspirator fled the bank before the stolen check was cashed.
Count Six
The search of McCrae’s cellphone also uncovered evidence of his role in a conspiracy to commit two robberies of letter carriers in Cumberland County, New Jersey. The target of the robberies was the letter carriers’ postal mailbox keys. The first robbery occurred in Fairfield Township on June 13, 2023, when a masked assailant assaulted the letter carrier and successfully stole the postal mailbox key. The second robbery occurred on July 3, 2023, in Vineland. On this occasion, a masked assailant attacked the letter carrier from behind, striking him and spraying him with a cannister of bear repellant. The second robbery was unsuccessful in stealing the letter carrier’s postal mailbox key.
Conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a fine of up to $1 million. Unlawful possession of a postal key carries a maximum penalty of 10 years in prison and up to a $250,000 fine. Possession of stolen mail carries a maximum penalty of five years in prison and up to a $250,000 fine. Aggravated identity theft carries a mandatory consecutive term of two years in prison and up to a $250,000 fine. Conspiracy to commit Hobbs Act robbery carries a maximum penalty of 20 years in prison and up to a $250,000 fine. Sentencing is scheduled for Feb. 6, 2025.
U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspector’s Service, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; andspecial agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation. U.S. Attorney Sellinger also thanked the Paulk County (Georgia) Sheriff’s Department, the New Jersey State Police, the Cumberland County Prosecutor’s Office, the Glassboro Police Department, and the Cherry Hill Police Department.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
mccrae.information.pdfNew York Man Sentenced to 27 Months in Prison for Illegally Possessing Cocaine and FentanylRead the Press Release
NEWARK, N.J. – A New York man was sentenced to 27 months in prison for illegally possessing cocaine and fentanyl for distribution, U.S. Attorney Philip R. Sellinger announced today.
Isidro Fernandez, 36, New York, previously pleaded guilty to before U.S. District Judge Katharine S. Hayden to an information charging him with one count of possession with intent to distribute controlled substances. Judge Hayden imposed the sentence on Oct. 2, 2024, in Newark federal court.
According to documents filed in this case and statements made in court:
On Feb. 26, 2021, law enforcement officers recovered a total of over 5 kilograms of cocaine and over 3 kilograms of fentanyl from a Passaic County residence occupied by Fernandez and from a vehicle that was seen leaving the residence. Fernandez admitted possessing the controlled substances with the intent to distribute.
In addition to the prison term, Judge Hayden sentenced Hayden to three years of supervised release.
U.S. Attorney Sellinger credited the New York Drug Enforcement Task Force, which comprises special agents and task force officers of the Drug Enforcement Administration, New York City Police Department, and New York State Police, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the Opioid Abuse Prevention and Enforcement Unit in Newark.