District of New Jersey
Press releases recorded for this federal judicial district.
Construction Company CEO and Foreperson Charged with Conspiracy to Commit Wire Fraud in Connection with Newark Lead Service Line Replacement ProgramRead the Press Release
Video Statement
NEWARK, N.J. – The chief executive officer of a construction company and a foreperson for the company were arrested today for their roles in a conspiracy to commit wire fraud in connection with the Newark Lead Service Line Replacement (LSLR) Program, U.S. Attorney Philip R. Sellinger announced.
Michael Sawyer, 57, of Burlington, New Jersey, and Latronia Sanders, aka “Tee,” 55, of Roselle, New Jersey, are each charged by complaint with conspiracy to commit wire fraud. They are scheduled to appear today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
“As our complaint alleges, Michael Sawyer and Latronia Sanders worked for a company hired by the city of Newark to replace lead pipes, but instead, they intentionally left lead pipes in the ground. By causing misleading photographs and verification forms to be submitted, Sawyer and Sanders concealed that they intentionally did not replace lead pipes and defrauded Newark by collecting payment for work they did not properly perform. Today, we begin the process of holding them accountable.”
U.S. Attorney Philip R. Sellinger
“For years, lead pipes that transport drinking water to homes in Newark remained buried in the ground after the city hired a company to replace them,” Newark FBI Acting Special Agent in Charge Nelson I. Delgado said. “The business, along with others, were paid to replace the water service lines because any amount of lead exposure is detrimental to people's health, particularly for children. We allege the subjects in this investigation knew they were not replacing the lead pipes, and then passed off misleading photos to conceal the ones they left in the ground. We are asking anyone who sees something or knows something they want to report to please call FBI Newark at 973-792-3000. We will hold accountable anyone who sees a payday in ripping off governmental agencies entrusted to protect the communities they serve.”
“These defendants allegedly undercut Newark’s lead service line replacement project that sought removal of all lead lines throughout the city,” Special Agent in Charge Tyler Amon with Environmental Protection Agency’s (EPA) Criminal Investigation Division in New Jersey said. “Violators who employ deception to compromise the integrity of important public drinking water related projects will be criminally investigated and held to account.”
“The EPA OIG is committed to doggedly pursuing criminal activity that targets critical water infrastructure funding," said Special Agent in Charge Nicolas Evans of the EPA Office of Inspector General. "Taking government funds but failing to replace lead service lines defrauds the program and hurts Americans’ access to safe drinking water.”
According to documents filed in this case and statements made in court:
Beginning in 2016, high levels of lead were found in the drinking water in some of Newark’s schools. From 2017 to 2019, periodic testing of Newark’s drinking water by the U.S. Environmental Protection Agency (EPA) and the New Jersey Department of Environmental Protection (DEP) showed lead levels that were among the highest of any major city in the United States.
In March 2019, Newark announced plans to replace approximately 18,000 lead service lines within city limits as part of its LSLR Program. Newark hired an engineering firm to oversee the implementation of the program and contractors to complete the replacement work. JAS Group Enterprise Inc. (JAS) was one of the contractors hired by Newark. Prior to being hired as a contractor, JAS also worked on the LSLR Program as a subcontractor for another construction company.
Sawyer was the president and chief executive officer of JAS and responsible for overseeing and managing JAS’s operations. Sanders was employed by JAS as a foreperson of JAS crews assigned to replace lead pipes in Newark during the LSLR Program. Sawyer, Sanders, and others conspired to defraud Newark and others in connection with JAS’s performance as a contractor and as a subcontractor during the LSLR Program.
As alleged in the complaint, Sawyer, Sanders, and others intentionally failed to replace all lead pipes at certain locations as required under the terms of the relevant contracts, yet caused the submission of payment applications to Newark falsely representing that JAS completed the work in accordance with the contracts. Sawyer, Sanders, and others submitted false or misleading documents to support payment applications with respect to certain work sites. These materials included photographs that visually represented that the lead replacement was done or was unnecessary, but in fact were taken in a way to conceal that lead pipes were left in place.
At other sites where the water service lines already consisted entirely of copper pipes, Sawyer, Sanders, and others conspired to falsely represent that JAS had installed those copper pipes after removing lead pipes. Sawyer, Sanders, and others then caused the submission of fraudulent payment applications for work that JAS never completed, and induced Newark to pay JAS for work that JAS did not perform.
The charge of conspiracy to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, twice the gross profits, or twice the gross loss suffered by the victims of the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Delgado in Newark; the EPA, Criminal Investigation Division Northeast Area Branch, under the direction of Special Agent in Charge Amon; the EPA Office of Inspector General, under the direction of Special Agent in Charge Evans, and the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation.
The government is represented by Assistant U.S. Attorneys Edeli Rivera, Clara Kim, and Katherine Calle of the Special Prosecutions Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
sawyersanders.complaint.pdfCamden Businessman and Associate Charged with Conspiracy to Commit Tax FraudRead the Press Release
CAMDEN, N.J. – Two men from Camden, New Jersey, were indicted for their roles in conspiring to defraud the IRS by concealing cash wages paid to a business’s employees, U.S. Attorney Philip R. Sellinger announced today.
Tri Anh Tieu, 53, and Andy Tran, 49, both of Camden, New Jersey, were both charged with one count of conspiring to defraud the United States. They were arraigned before U.S. Magistrate Judge Elizabeth A. Pascal in Camden federal court on Oct. 2, 2024, and were each released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Tieu owed Tri States Staffing LLC, a business based in Pennsauken, New Jersey. Tran was an employee of Tri States Staffing who, at times, served as its representative. Tri States Staffing provided temporary workers to New Jersey businesses located in Gloucester and Burlington Counties. As part of its agreement with its customer businesses, Tri States Staffing was responsible for collecting and paying over to the IRS the payroll taxes due and owing on the wages paid to the temporary workers provided by Tri States Staffing.
Between the third quarter of 2018 and the second quarter of 2022, Tri States received more than $2.5 million in payments from its customer businesses. Tieu and Tran paid Tri States’s employees in cash and failed to pay over the payroll taxes due and owing on those wages. Tieu and Tran also filed false individual income tax returns that falsely omitted the income each received from Tri States Staffing. Tieu spent at least some of the unpaid payroll taxes on personal expenditures, including gambling.
The count of conspiracy to defraud the United States carries a maximum penalty of five years in prison and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Amy MacNeely in Philadelphia and Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
tieutran.indictment.pdfU.S. Attorney’s Office for District of New Jersey and Department of Justice’s Civil Rights Division Reach Proposed Consent Decree with New Jersey to Resolve Claims of Unconstitutional Conditions in New Jersey’s State-Run Veterans HomesRead the Press Release
Link to video statement:
https://youtu.be/pl3o8-n5p6w
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the Department of Justice’s Civil Rights Division today filed a complaint against the state of New Jersey and joined with the state in filing a proposed consent decree to address findings of unconstitutional conditions at the New Jersey Veterans Memorial Homes at Menlo Park and Paramus.
The proposed consent decree, which must still be approved by the court, would resolve the department’s claims that New Jersey violates the Constitution by failing to keep the residents of its Veterans Homes safe from harm and an unreasonable risk of harm. The proposed consent decree requires the state to meet specific standards of clinical care, to overhaul its infection control and emergency operations practices and to implement measures for improved leadership and accountability. The proposed consent decree also asks the court to appoint an independent monitor who will oversee and assess the state’s compliance with the terms of the proposed consent decree.
“Our veterans, who have sacrificed so much, should never have been subject to deficient care. This consent decree provides a detailed roadmap and expert oversight to ensure they are protected, so that they and their families can rely on the veterans homes. We look forward to working with the state and the independent monitor to implement this decree and ensure that every resident of the veterans homes lives with the safety and dignity that they so richly deserve.”
U.S. Attorney Philip R. Sellinger
“Our veterans deserve to receive appropriate care, as required by law, and their families deserve to have confidence that their loved ones’ needs will be met,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement requires the state to deliver that care and have the oversight in place to provide families that confidence. The Justice Department will work diligently with the state to ensure the reforms are properly implemented.”
The U.S. Attorney’s Office for the District of New Jersey and the Civil Rights Division initiated the investigation into the Veterans Homes in October 2020 under the Civil Rights of Institutionalized Persons Act (CRIPA). CRIPA authorizes the department to take action to address a pattern or practice of deprivation of federal rights of individuals in the custody of state or local governments.
In September 2023, the department notified the state that it found reasonable cause to believe the residents of the New Jersey Veterans Memorial Homes at Menlo Park and Paramus face unreasonable harm and risk of harm due to inadequate infection control practices and inadequate medical care. The department also identified the remedial measures necessary to address those unlawful conditions. Specifically, the department concluded that the state failed to provide the residents of its Veterans Homes with conditions of reasonable care and safety, in violation of the 14th Amendment.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of New Jersey is available on its website at www.justice.gov/usao-nj/civil-rights-enforcement.
The government is represented by Assistant U.S. Attorneys Susan Millenky and Thandiwe Boylan of the U.S. Attorney’s Civil Rights Division; Michael Campion, Chief of the Civil Rights Division; Caroline Sadlowski, Executive Assistant U.S. Attorney; and attorneys from the Special Litigation Section of the Justice Department’s Civil Rights Division.
veterans.consentdecree.pdf veterans.complaint.pdfNewark Businessman Admits Bribing Former Newark Deputy Mayor and Director of Newark Department of Economic and Housing DevelopmentRead the Press Release
NEWARK, N.J. – A Newark business owner today admitted bribing a former city official in exchange for that official’s assistance in acquiring and redeveloping Newark-owned properties, U.S. Attorney Philip R. Sellinger announced.
Irwin Sablosky, 64, of Springfield, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to two counts of an indictment charging him with honest services fraud and bribery.
“As he admitted in court, Irwin Sablosky provided cash and jewelry to Carmelo Garcia, a former Newark deputy mayor and director of the Newark Department of Economic and Housing Development in exchange for Garcia’s use of his influence to assist Sablosky’s acquisition of various Newark-owned properties for redevelopment, defrauding the people of Newark of their right to the official’s honest services. He corrupted the public official’s independent judgment and violated the public trust for his own financial gain. Our office will continue to work with our law enforcement partners to make sure that the people of New Jersey are protected from public officials whose greed overrides their sworn duty to serve the people and from the individuals who bribe those officials.”
U.S. Attorney Philip R. Sellinger
“By bribing a government official, Mr. Sablosky undermined the best interests of his community and threatened the confidence its citizens have in those that take an oath to serve the public,” Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office, said. “IRS-CI is committed to fostering trust in the legal system and holding bad actors accountable.”
“Irwin Sablosky’s selfish actions and severe abuse of power violated the public trust and risked jeopardizing the integrity of the federal process for fair and honest acquisitions of government owned properties to further his own self interests,” said Special Agent-in-Charge Vicky Vazquez with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG remains steadfast in its commitment to working with our prosecutorial, law enforcement, and oversight partners to aggressively pursue individuals who engage in activities that threaten the integrity of HUD programs.”
According to documents filed in the case and statements made in court:
Sablosky admitted bribing Garcia – who was also executive vice president and chief real estate officer of the Newark Community Economic Development Corporation (NCEDC) – in exchange for Garcia’s assistance with the acquisition and redevelopment of city-owned property.
According to documents filed in the case and statements made in court:
From 2017 through April 2019, Sablosky, Frank Valvano Jr., and others provided significant monetary payments and other benefits to Garcia while he was serving as a high-level Newark official, and prior to that, as an executive officer of the NCEDC (now known as Invest Newark), in exchange for Garcia’s use of his official positions and influence within the city of Newark and the NCEDC to advance real estate development matters of interest to Sablosky and Valvano. These matters included obtaining preliminary designation letters for Sablosky and Valvano and securing Newark-approved redevelopment agreements (RDAs) that allowed them to purchase and acquire various Newark-owned properties for redevelopment, and to ensure that Garcia did not use his influence and authority to act against their interests.In addition to cash, Sablosky and Valvano also gifted Garcia jewelry, including multiple high-end watches and chains, from their pawnbroker and jewelry business.
Phone records and text messages obtained by law enforcement show extensive communication between Garcia, Valvano, Sablosky, and others throughout this period of time, including text messages in which Garcia arranged to personally collect cash provided by Sablosky and Valvano. In one instance, in June 2018, Sablosky and Valvano, through an intermediary, supplied Garcia, then the city’s acting deputy mayor and director of the city’s DEHD, $25,000 in cash as part of the stream of bribes provided to Garcia.
The honest services fraud charge in Count 18 of the indictment carries a maximum potential penalty of 20 years in prison. The bribery charge in Count 26 carries a maximum penalty of 10 years in prison. All charges are punishable by a fine of $250,000 or twice the amount of the pecuniary gain from the offense. Sentencing is scheduled for Feb. 20, 2025.
Sablosky originally was charged by indictment in October 2021 with Valvano, 56, of Florham Park, New Jersey, and Garcia, 59, of Hoboken, New Jersey. Garcia previously pleaded guilty to conspiracy to defraud the city of Newark and the NCEDC of Garcia’s honest services, honest services wire fraud, and receiving bribes in connection with the business of a federally funded local government and organization and awaiting sentencing. Valvano’s case is pending before Judge Arleo, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents of the FBI’s Newark Field Office, under the direction of Acting Special Agent in Charge Nelson I. Delgado; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Piovesan, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Vicky Vazquez, with the investigation leading to today’s guilty plea.
The government is represented by Elaine K. Lou, Deputy Chief of the Criminal Division, and Katherine J. Calle and Edeli Rivera of the U.S. Attorney’s Office’s Special Prosecutions Division.
sablosky.indictment.pdfJustice Department Secures Agreement with New Jersey to Resolve Claims of Unconstitutional Conditions in State-Run Veterans HomesRead the Press Release
The Justice Department’s Civil Rights Division and U.S. Attorney’s Office for the District of New Jersey today filed a complaint against the State of New Jersey and joined with the State in filing a proposed consent decree to address findings of unconstitutional conditions at the New Jersey Veterans Memorial Homes (Veterans Homes) at Menlo Park and Paramus.
The proposed consent decree, which must still be approved by the court, would resolve the department’s claims that New Jersey violates the Constitution by failing to keep the residents of its Veterans Homes safe from harm and an unreasonable risk of harm. The proposed consent decree requires the state to meet specific standards of clinical care, to overhaul its infection control and emergency operations practices and to implement measures for improved leadership and accountability. The proposed consent decree also asks the court to appoint an independent monitor who will oversee and assess the state’s compliance with the terms of the proposed consent decree.
“Our veterans deserve to receive appropriate care, as required by law, and their families deserve to have confidence that their loved ones’ needs will be met,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement requires the state to deliver that care and have the oversight in place to provide families that confidence. The Justice Department will work diligently with the state to ensure the reforms are properly implemented.”
“Our veterans, who have sacrificed so much, should never have been subject to deficient care,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “This consent decree provides a detailed roadmap and expert oversight to ensure they are protected, so that they and their families can rely on the Veterans Homes. We look forward to working with the state and the independent monitor to implement this decree and ensure that every resident of the Veterans Homes lives with the safety and dignity that they so richly deserve.”
The Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey initiated the investigation into the Veterans Homes in October 2020 under the Civil Rights of Institutionalized Persons Act (CRIPA). CRIPA authorizes the department to take action to address a pattern or practice of deprivation of federal rights of individuals in the custody of state or local governments.
In September 2023, the department notified the state that it found reasonable cause to believe the residents of the Veterans Homes at Menlo Park and Paramus face unreasonable harm and risk of harm due to inadequate infection control practices and inadequate medical care. The department also identified the remedial measures necessary to address those unlawful conditions. Specifically, the department concluded that the state failed to provide the residents of its Veterans Homes with conditions of reasonable care and safety, in violation of the 14th Amendment.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of New Jersey is available at www.justice.gov/usao-nj/civil-rights-enforcement.
New York Man Admits Conspiring to Engage in Multimillion-Dollar Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted conspiring to commit wire fraud that caused losses of more than $2 million, U.S. Attorney Philip R. Sellinger announced.
Terrell Fuller, 34, of Baldwin, New York, pleaded guilty before U.S. District Court Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of wire fraud conspiracy.
According to documents filed in this case and statements made in court:
Fuller and his conspirators submitted a fraudulent application to the Small Business Administration (SBA), which caused the SBA to provide them with approximately $1.2 million. They also opened bank accounts in the names of various entities and individuals, deposited illegally obtained or fraudulent checks into those accounts, and then withdrew and attempted to withdraw money from the accounts. Fuller, using stolen personal identifying information, fraudulently rented locations to live in New York and failed to pay more than $400,000 in rent and fees for those locations. Fuller and his conspirators obtained more than $2 million in money and property through their fraudulent actions.
The wire fraud conspiracy charge is punishable by a maximum penalty of 20 years in prison and maximum fine of $250,000 or twice the value of the funds involved in the transfer, whichever is greater. Sentencing is scheduled for Feb. 5, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, Franklin Township Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the Cybercrime Unit in Newark.
fuller.information.pdf
Florida Woman Admits COVID-19 Relief Program FraudRead the Press Release
NEWARK, N.J. – A Florida woman today admitted fraudulently obtaining $465,489 in COVID-19 relief funding after submitting fraudulent applications to victim lenders, the U.S. Attorney Philip R. Sellinger announced.
Jane Batista, 43, of Lake Worth, Florida, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to one count of wire fraud and one count of money laundering.
According to documents filed in this case and statements made in court:
From April 2020 to August 2021, Batista submitted fraudulent Paycheck Protection Program (PPP) loan applications for herself, her husband, and two businesses they owned and operated. In support of those applications, Batista lied about the number of employees the businesses employed, the income the employees earned, and the revenue Batista and her husband generated as sole proprietors. Batista also submitted forged documents, including fake tax return documents. After the victim lenders funded the loans, Batista used that money for personal expenses and made several large transfers, including one for $15,000.
The wire fraud count carries a maximum of 20 years in prison. The money laundering count carries a maximum of 10 years in prison. Each count also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. 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; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Acting Special Agent in Charge Corwin Rattler; special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney with the investigation.
The government is represented by Assistant U.S. Attorneys Robert Taj Moore of the Organized Crime Drug Enforcement Task Force and Aaron L. Webman of the Economic Crimes Unit 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.
batista.information.pdfEssex County Man Sentenced to 51 Months in Prison for Bank Fraud Conspiracy Related to Checks Stolen from U.S. MailRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 51 months in prison for his role in a bank fraud conspiracy related to the theft of checks from the U.S. mail, U.S. Attorney Philip R. Sellinger announced.
Baba Diakite, 23, of East Orange, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to one count of an indictment charging him with conspiracy to commit bank fraud. His conspirator, Nasir Johnson, was previously sentenced last year by Judge Salas to 49 months in prison after pleading guilty to conspiracy to commit bank fraud, conspiracy to commit mail theft and possess stolen mail, and theft of a U.S. Postal Service key. Judge Salas imposed the sentences in Newark federal court.
According to documents filed in this case and statements made in court:
From at least January 2020 to March 2022, Diakite, Johnson, and others conspired to steal checks from the mail in communities across New Jersey. Diakite and his conspirators used misappropriated keys belonging to the U.S. Postal Service to access mail collection receptacles and steal envelopes that contained checks. After stealing the checks, Diakite and his conspirators sold them to third parties or deposited them, sometimes in altered form for higher amounts, into bank accounts. Diakite and others then defrauded the banks by withdrawing money from the bank accounts. Diakite agreed that he caused a loss of between $550,000 and $1.5 million.
In addition to the prison term, Judge Salas sentenced Diakite to three years of supervised release.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher A. Nielsen; special agents with the U.S. Postal Service - Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and special agents with the Office of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Casey S. Smith of the General Crimes Unit in Newark.
Colombian National Admits Conspiracy to Import 15 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A Colombian citizen admitted conspiring to import 15 kilograms of cocaine into the United States from Columbia, U.S. Attorney Philip R. Sellinger announced today.
Savier Cervantes, 37, of Cartagena, Colombia, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court on Sept. 30, 2024, to an information charging him with one count of conspiracy to import cocaine.
According to documents filed in this case and statements made in court:
In December 2021, Cervantes facilitated the transfer of five kilograms cocaine from a source of supply in Colombia to a U.S. citizen, Antonio Diaz, and helped to arrange for the transportation of that cocaine from Cartagena to New Jersey. Diaz previously pleaded guilty to charges of conspiracy to distribute and possession with the intent to distribute cocaine.
In June and July 2022, Cervantes introduced a U.S. citizen, Bashimi Briscoe, to two individuals in Columbia who, between them, sold Briscoe 10 kilograms of cocaine, and arranged a meeting with a third individual who offered to transport that cocaine to the United States. Briscoe previously pleaded guilty to conspiracy to import cocaine into the United States.
The count to which Cervantes pleaded guilty carries a maximum penalty of 20 years in prison and a fine of up to $1 million dollars. Sentencing is scheduled for March 12, 2025.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Frank A. Tarentino III, in New York, and special agents of the DEA operating in Colombia, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Aaron L. Webman of the Economic Crimes Unit in Newark.
cervantes.information.pdfSomerset County Man Sentenced to 64 Months’ Incarceration for Concealing Material Support to HamasRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to time served – 64 months – for concealing his attempts to provide material support to Hamas, U.S. Attorney Philip R. Sellinger, Assistant Attorney General Matt Olsen of the U.S. Department of Justice’s National Security Division, FBI-Newark Acting Special Agent in Charge Nelson I. Delgado Jr., and FBI Assistant Director for Counterterrorism David J. Scott announced.
Jonathan Xie, 25, of Basking Ridge, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of concealing attempts to provide material support to a designated foreign terrorist organization. Judge Shipp imposed the sentence today in Trenton federal court.
“Jonathan Xie not only admitted sending money that he hoped would be used by the terrorist organization Hamas to fund violent acts against civilians in Israel, he professed his desire to travel to Gaza to join them. Brandishing a gun and holding a Hamas flag, he also posted that he was going to shoot everybody at a pro-Israel march and ruminated how one could go on a rampage by ramming pro-Israel demonstrators with a car. This supporter of Hamas learned the true cost of supporting terrorists.”
U.S. Attorney Philip R. Sellinger
“Xie is an unfortunate example of an emerging and extremely dangerous threat the FBI Newark Joint Terrorism Task Force is seeing with much more frequency,” Newark FBI Acting Special Agent in Charge Nelson I. Delgado said. “The average age of the international and domestic terrorism subjects we investigate is under 21 years old, and they're being radicalized in only a few months. Xie was a teenager when he decided to send money in support of a terrorism organization and then threaten to carry out a plan to kill pro-Israeli people. We need this case to serve as a warning to parents and guardians - pay attention to what your teenagers are doing online.”
According to documents filed in this case and statements made in court:
Xie knowingly concealed and disguised the nature, location, source, ownership and control of his attempt to provide material support and resources to Harakat alMuqawamah al-Islamiyya and the Islamic Resistance Movement, an organization that is commonly referred to as Hamas. Xie admitted that he knew Hamas was a designated foreign terrorist organization and has engaged in terrorist activities. He said he attempted to conceal his attempted support believing it would be used to commit or assist in the commission of a violent act.
In December 2018, Xie sent $100 via Moneygram to an individual in Gaza who Xie believed to be a member of the Al-Qassam Brigades – a faction of Hamas that has conducted attacks, to include suicide bombings against civilian targets inside Israel. At approximately the same time that Xie sent the money, he posted on his Instagram account “Just donated $100 to Hamas. Pretty sure it was illegal but I don’t give a damn.”
In April 2019, Xie appeared in an Instagram Live video wearing a black ski mask and stated that he was against Zionism and the neo-liberal establishment. When asked by another participant in the video if he would go to Gaza and join Hamas, Xie stated “yes, If I could find a way.” Later in the video, Xie displayed a Hamas flag and retrieved a handgun. He then stated “I’m gonna go to the [expletive] pro-Israel march and I’m going to shoot everybody.” In subsequent Instagram posts, Xie stated, “I want to shoot the pro-israel demonstrators . . . you can get a gun and shoot your way through or use a vehicle and ram people . . . all you need is a gun or vehicle to go on a rampage . . . I do not care if security forces come after me, they will have to put a bullet in my head to stop me.”
In April 2019, Xie sent a link to a website for the Al-Qassam Brigades to an FBI employee who was acting online in an undercover capacity. Xie described the website as a “Hamas” website and stated he had previously sent a donation to the group. Xie then sent screenshots of the website to the undercover employee and demonstrated how to use a new feature on the website that allows donations to be sent via Bitcoin. On April 18, 2019, when the undercover employee asked whether Bitcoin was anonymous, Xie responded: “yah… i think thats why hamas is using it now because money transfer is not that anonymous.”
In addition to the prison term, Judge Shipp sentenced Xie to 20 years of supervise release, including six months of home detention with location monitoring for the first six months.
U.S. Attorney Sellinger and Assistant Attorney General Olsen credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Acting Special Agent in Charge Nelson I. Delgado; and the U.S. Department of Defense, Army Counterintelligence, 902d Military Intelligence Group, with the investigation leading to the sentencing. He also thanks the U.S. Secret Service for its assistance.
The government is represented by Joyce M. Malliet, Chief of the U.S. Attorney’s Office’s National Security Unit and Trial Attorney Taryn Meeks of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division (currently detailed to the Human Rights and Special Prosecutions Section).
U.K. National Charged with Multimillion-Dollar Hack-to-Trade Fraud SchemeRead the Press Release
NEWARK, N.J. – A United Kingdom national has been charged for his execution of a hack-to-trade scheme, through which he generated millions of dollars in profits, U.S. Attorney Philip R. Sellinger announced.
Robert Westbrook, 39, of London, United Kingdom, was arrested in the United Kingdom this week with a view towards extradition to the United States so that he can face an indictment charging him with securities fraud, wire fraud, and five counts of computer fraud.
According to documents filed in this case and statements made in court:
From January 2019 through May 2020, Westbrook executed a hack-to-trade scheme through which he generated millions of dollars in profits. On at least five occasions, Westbrook gained unauthorized access to Office365 email accounts belonging to corporate executives employed by certain U.S.-based companies to obtain non-public information, including information about impending earnings announcements. Westbrook then used that information to purchase securities that he sold in short order for substantial profits after the material information became public. On several occasions, Westbrook implemented auto-forwarding rules designed to automatically forward content from the corporate executives’ compromised email accounts to email accounts controlled by Westbrook. Westbrook generated profits exceeding $3 million dollars through this scheme.
The securities fraud count carries a maximum potential penalty of up to 20 years in prison and a fine of $5 million. The wire fraud count carries a maximum penalty of up to 20 years in prison and a fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Each computer fraud count carries a maximum potential penalty of five years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Westbrook today based on the same conduct.
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 charges.
The government is represented by Assistant U.S. Attorney Samantha C. Fasanello, Chief 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.
Member of U.S. Attorney’s Office Receives J. Michael Bradford Memorial Award from National Association of Former United States AttorneysRead the Press Release
NEWARK, N.J. – An Assistant U.S. Attorney in the District of New Jersey was recognized by the National Association of Former U.S. Attorneys (NAFUSA) today during their annual meeting in Oklahoma City, Oklahoma.
NAUFA selected AUSA John Romano to receive the J. Michael Bradford Memorial Award for Most Outstanding Assistant U.S. Attorney, which recognizes an AUSA for outstanding performance in a significant civil or criminal matter, or a series of matters, that have had a significant impact and merit special recognition.
AUSA Romano was selected for his outstanding advocacy from 2015 through 2024 in United States v. Carolyn Jackson and John Jackson, a case involving two defendants’ horrifying treatment of their three very young foster children while living at the Picatinny Arsenal and elsewhere. The three children were all less than 4 years old and developmentally delayed when the defendants committed neglectful and cruel acts, including breaking their bones, denying them medical attention, withholding water, and force-feeding them hot sauce.
“The defendants’ foster children suffered gut-wrenching abuse and neglect. AUSA Romano’s work – specifically, his continuous and dogged efforts to seek justice for these vulnerable victims – exemplifies his devotion to the department’s mission and warrants this award.”
U.S. Attorney Philip R. Sellinger
For more than nine years, AUSA Romano has played a pivotal role in this effort to secure justice for the defendants’ victims. He initially helped advise the trial team. When, despite the defendants’ grievous conduct, the district court sentenced them leniently, AUSA Romano successfully appealed. The district court again imposed a lenient sentence, and so AUSA Romano appealed again. After a third, lenient sentencing, AUSA Romano appealed and sought reassignment to a different judge, which the Third Circuit Court of Appeals granted.
These appeals required reviewing tens of thousands of pages of transcripts and exhibits and conducting exhaustive legal research. AUSA Romano also composed appellate briefs for all three appeals, which totaled in excess of 60,000 pages of briefing, and twice argued the case before the Court of Appeals.
In October 2023, AUSA Romano handled the fourth resentencing hearing before the newly assigned district judge. As a result of his compelling advocacy, both written and oral, he secured sentences of 140 months’ imprisonment for Carolyn Jackson and 108 months’ imprisonment for John Jackson.
Pennsylvania Man Sentenced to 78 Months in Prison for $4.8 Million Cares Act Loan Fraud SchemeRead the Press Release
TRENTON, N.J. – A Pennsylvania man was sentenced today to 78 months in prison for his role in a scheme to fraudulently obtain over $4.8 million in federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) for himself and others, U.S. Attorney Philip R. Sellinger announced.
Darryl Duanne Young, aka “Darryl Duanne Isom Young,” 61, of Kingston, Pennsylvania, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court on Nov. 14, 2023, to an information charging him with one count of conspiracy to commit bank fraud and one count of money laundering. U.S. District Judge Georgette Castner imposed the sentence today in Trenton federal court.
“This defendant admitted taking advantage of government programs that were specifically designed to provide needed financial assistance to Americans during the COVID-19 pandemic,” U.S. Attorney Sellinger said. “Combatting pandemic fraud in all of its forms is a top priority for this office and our law enforcement partners. Together, we will continue to root out those who have exploited the suffering of others to line their own pockets, and bring them to justice.”
“COVID-19 relief funds were meant to assist honest, hardworking Americans during an unprecedented time of hardship in our country, not to aid those trying to enrich their lives through deception,” Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office, said. “Mr. Young’s sentence today reinforces that individuals who defraud our federal programs will be held accountable.”
“This sentencing should serve as a resounding message to anyone who wants to utilize the US Mail to defraud the American taxpayer. Postal Inspectors will continue to aggressively work with our partners in law enforcement and the US Attorney’s Office to hold these types of fraudsters accountable,” stated Christopher A. Nielsen, Inspector in Charge of the Philadelphia Division.
“Mr. Young and his fellow conspirators committed crimes and selfishly profited from the Paycheck Protection Program and the Economic Injury Disaster Loans; Mr. Young exploited Federal assistance programs intended to help those in need during a national crisis. This sentence now holds him accountable for his criminal acts,” said Michelle L. Anderson, Acting Inspector General for the SSA. “I thank our law enforcement partners for working to pursue perpetrators who fraudulently profit from Federal benefit programs. I appreciate the collaboration among the investigating agencies and the work of the U.S. Attorney’s Office for prosecuting this case.”
“Today’s sentencing sends a clear message that those who fraudulently obtained funds from COVID-19 relief programs will be held accountable,” Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) said. “The FDIC OIG remains committed to working with our law enforcement partners to investigate and bring to justice those who participate in fraudulent schemes and threaten to undermine the integrity of our Nation’s banking system.”
“Darryl Duanne Young defrauded the federal government of nearly $5 million in pandemic relief funds for his own personal gain and will now pay the price for his crimes,” said Brian Tucker, Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to hold Mr. Young accountable for his crimes.”
“Young will serve time for selfishly pocketing millions of dollars in emergency funds our government intended to give qualified Americans and small businesses who needed economic assistance in the wake of the COVID-19 pandemic,” said HSI Newark acting Special Agent in Charge Spiros Karabinas. “HSI Newark and our law enforcement partners are committed to ensuring justice is served in cases where individuals perpetrated illicit schemes for personal gain during an unprecedented public health crisis.”
According to documents filed in this case and statements made in court:
Young engaged in a scheme to illegally obtain for himself and his conspirators over $4.8 million in loans authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Young submitted and directed others to submit fraudulent PPP and EIDL loan applications, which fabricated numbers of employees and misrepresented company information, to induce lenders to approve the loan applications that they otherwise would not have approved. Among other things, Young submitted falsified tax documents and bank statements to a victim lender in support of PPP loan applications. Young personally received over $230,000 in PPP loans for businesses he controlled and received a percentage of loan proceeds for assisting in submitting fraudulent applications on behalf of others.
In addition to the prison term, Judge Castner sentenced Young to three years of supervised release and ordered restitution of $5.28 million.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen Philadelphia Division; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Acting Special Agent in Charge Corwin Rattler; 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; special agents of the Board of Governors of the Federal Reserve System - Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Brian Tucker; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and 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.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano and David E. Dauenheimer of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.
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.
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.
Owner of Brick Construction Business Admits Failure to Collect and Pay over TaxesRead the Press Release
TRENTON, N.J. – An Ocean County man today admitted failing to collect and pay over employee taxes, U.S. Attorney Philip R. Sellinger announced.
Gerard Artz, 44, of Brick, New Jersey pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court to an information charging him with one count of failure to collect and pay over taxes.
According to documents filed in this case and statements made in court:
Artz owned and operated a construction company in Brick, New Jersey, and New York City. Beginning around 2016, Artz’s company, under his direction, withheld employment taxes from the company’s employees’ paychecks and did not remit those employment taxes to the IRS. From 2016 to 2020, Artz and his company failed to collect and pay over $937,943 in employment taxes owed by his company.
The count of failure to collect and pay over taxes carries a maximum penalty of five years in prison and a $250,000 fine. As part of his plea agreement, Artz has agreed to pay the government restitution of $937,943. Sentencing is scheduled for Feb. 5, 2024.
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 guilty plea.
The government is represented by Assistant U.S. Attorney Eric Suggs of the Criminal Division in Trenton.
artz.information.pdfNew Jersey Business Owner Admits Wire Fraud Conspiracy, Wire FraudRead the Press Release
NEWARK, N.J. – A New Jersey business owner today admitted his role in a fraud scheme involving COVID funds, fraudulent tax filings and a fraudulent loan application, U.S. Attorney Philip R. Sellinger announced.
Richard Fadraga, aka “Ricardo Fadraga,” 53, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging him with one count of wire fraud conspiracy and two counts of wire fraud.
According to documents filed in this case and statements made in court:
In June 2020, Fadraga and a conspirator who was in the business of preparing tax returns submitted a fraudulent application for an Economic Injury Disaster Loan (EIDL), which resulted the Small Business Administration (SBA) paying $110,000 in COVID-19 related proceeds. In July 2020, Fadraga and the conspirator submitted another fraudulent EIDL application, which resulted in the SBA paying $131,200 in COVID-19 related proceeds. The July 2020 application was submitted under another person’s name to conceal the involvement of Fadraga and his conspirator, but law enforcement was subsequently able to link the July 2020 application back the two conspirators.
At the urging of his conspirator, Fadraga also obtained an Employer Identification Number (EIN) and Electronic Filer Identification Number (EFIN) using Fadraga’s personal identifying information. His conspirator then used the EIN and EFIN to submit federal tax returns on behalf of other people that contained false information. The fraudulent EIN was associated with tax returns that received more than $195,000 in federal refunds for tax year 2023, and the fraudulent EFIN was associated with tax returns that received more than $595,000 in federal refunds for tax year 2023, including tax refunds totaling more than $100,000 in the names (including variations of the names) of the conspirator and the conspirator’s associates.
Fadraga also fraudulently applied for a bank loan in connection with the purchase of property in Florida. When the lender requested additional information, Fadraga sent bank statements to his conspirator, who then altered those bank statements to make it appear as if Fadraga’s bank account contained more money than it really did.
Each count of wire fraud conspiracy and wire fraud carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. Sentencing is scheduled for Feb. 10, 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 Matthew Specht of the Special Prosecutions Division in Newark.
fadraga.information.pdfBurlington County Man Admits Receipt of Child PornographyRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man admitted receiving images of child sexual abuse over an online network, U.S. Attorney Philip R. Sellinger announced today.
Charles Borrelli, 62, of Burlington, New Jersey, pleaded guilty before U.S. District Judge Renée Bumb on Sept. 25, 2024, to an information charging him with receipt of child pornography.
According to documents filed in this case and statements made in court:
On Jan. 3, 2022, Borrelli used an internet network to download sexually explicit images of children. Borrelli also distributed images and videos of child sexual abuse on a peer-to-peer file sharing network on Jan. 3, 2022. Borrelli possessed over 600 images and videos of child sexual abuse, which were found on a vast collection of personal electronic devices when members of law enforcement executed a search warrant at his residence in February 2022. Some of the images were of infants.
The charge of receipt of child pornography carries a mandatory minimum penalty of 5 years I prison, and a maximum potential penalty of 20 years in prison, and a $250,000 fine. However, because Borrelli has a prior conviction for possessing child pornography, he will face an enhanced penalty on the receipt charge of a mandatory minimum term of 15 years imprisonment and a maximum term of 40 years of imprisonment.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, under the direction of Acting Special Agent in Charge Spiros Karabinas in Newark; and members of the New Jersey State Police, Burlington County Prosecutor’s Office and Mount Laurel Police Department with the investigation.
The government is represented by Assistant U.S. Attorney Lindsey R. Harteis of the U.S. Attorney’s Office in Camden.
borrelli.information.pdfThree New Jersey Attorneys and a New Jersey Realtor Indicted for Roles in Short Sale Fraud SchemeRead the Press Release
NEWARK, N.J. – Three New Jersey licensed attorneys and a New Jersey licensed realtor were indicted for their roles in defrauding financial institutions in a short sale fraud scheme, U.S. Attorney Philip R. Sellinger announced.
Lawyers Bruce Egert, 69, of Tenafly, New Jersey, Nelson Kong, 44, of Bethpage, New York, Seung Han Shin, aka Aaron Shin, 42, of Old Tappan, New Jersey, and realtor Francisco Sanchez, 48, of Ridgefield Park, New Jersey, were each indicted by a federal grand jury with one count of conspiracy to commit bank fraud and three counts of bank fraud. Egert and Kong were also charged with three counts of false statements to a financial institution.
Shin and Kong were arraigned on Sept. 19, 2024, before U.S. Magistrate Judge Michael A. Hammer in Newark federal court. Egert and Sanchez were arraigned on Sept. 23, 2024, before U.S. Magistrate Judge Stacey D. Adams in Newark federal court. Each of the defendants was released on $100,000 unsecured bond.
According to documents filed in this case:
From June 2013 through December 2016, Egert, Kong, Shin, Sanchez, and others fraudulently induced mortgage lenders to participate in “short sale” transactions. In a typical short sale transaction, a financial institution agrees to allow a homeowner in financial distress to sell their home for less than they owe on their mortgage. Such transactions are called short sales because the market value of the house is less than the amount owed by the homeowner and the lender agrees to accept a payment “short” of the amount owed. Through fraudulent misrepresentations and false statements, Mehdi Kassai, with the help of his conspirators, purchased homes at significant discounts from the note-holding banks both in his name and using stolen identities. Kassai, Egert, Kong, Shin, and Sanchez failed to reveal to the banks that Kassai and Egert had already arranged to flip the homes to other buyers at much higher prices, and that the homes were flipped in violation of deed restrictions regarding the time before which a resale could occur and the maximum resale price. Some of the properties purchased were resold at a substantial profit, that is, “flipped,” the same day the short sale closed.
Steve Kang and Joshua Son were realtors who represented short sale sellers whose homes were sold to Kassai. In return for their involvement in the scheme, Kassai shared with them portions of the profits of the resales. Egert was Kassai’s attorney who represented him in the short sales, and, among other things, conspired with Kassai to use stolen identities to purchase short sale properties and submitted or caused to be submitted fraudulent HUD-1 Settlement Statements to the victim banks. Kassai recruited Kong to represent certain sellers, and, among other things, Kong drafted agreements. Shin was a bankruptcy attorney Kassai paid to file bankruptcy petitions on behalf of short sale sellers to forestall imminent foreclosures on the properties. Shin failed to disclose that Kassai, the short sale buyer, was involved in these transactions. Sanchez was a realtor Kassai paid to assist in the management and control of the short sale process. If Kassai attempted to buy a short sale property in his own name and was rejected, Sanchez assisted Kassai with finding a straw buyer to acquire the short sale property.
Kassai pleaded guilty On Dec. 18, 2018, to an information charging him with bank fraud (Counts One and Two), wire fraud affecting a financial institution (Count Three), and money laundering (Count Four). He was sentenced by U.S. District Judge William J. Martini to 16 months in prison, three years of supervised release, and ordered to pay $7.94 million in restitution for 32 illicit transactions.
Kang pleaded guilty on May 30, 2019, to an information charging him with bank fraud (Count One) and wire fraud affecting a financial institution (Count Two). He was sentenced by U.S. District Judge Claire C. Cecchi to time served and ordered to pay $2.38 million in restitution.
Son pleaded guilty on May 30, 2019, to an information charging him with bank fraud (Count One) and wire fraud affecting a financial institution (Count Two). He was sentenced by Judge Martini to time served, two years of supervised release, and ordered to pay $2.38 million in restitution.
The conspiracy to commit bank fraud count, bank fraud counts, and false statements to a financial institution counts each carry a maximum potential penalty of 30 years in prison and a fine of $1 million, or twice the gross gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas; and special against of the Social Security Administration, Office of the Inspector General, Boston / New York Field Division under the direction of Special Agent in Charge Amy Connelly, with the investigation.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark, and Special Assistant U.S. Attorney Kevin DiGregory of the Federal Housing Finance Agency, Office of Inspector General.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
egertetal.indictment.pdfHighway Contractor to Pay $950,000 to Settle False Claims Act AllegationsRead the Press Release
NEWARK, N.J. B A Rahway, New Jersey-based highway contractor will pay $950,000 to resolve allegations that it improperly represented itself as a Disadvantaged Business Enterprise (DBE) in order to obtain federally funded contracts, U.S. Attorney Philip Sellinger announced today.
The settlement resolves allegations that from October 2016 through April 2019, MV Contracting Inc. obtained several contracts funded by the Federal Highway Administration (FHA) set aside for DBE companies as part of a program designed to remedy ongoing discrimination in federally assisted highway contracting markets. The United States contended that MV Contracting procured these contracts despite knowing that it did not in fact qualify as a DBE. The company submitted improper claims for payment under the contracts, which were paid using federal funds.
U.S. Attorney Sellinger credited the U.S. Department of Transportation, Office of Inspector General, under the direction of Eric J. Soskin, and the Port Authority of New York and New Jersey, Office of Inspector General , under the direction of Inspector General John Gay, with the investigation of the allegations against MV Contracting.
The United States is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Health Care Fraud Unit in Newark.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
mvcontracting.settlement.pdfFormer Pharmacy Chief Financial Officer and Former Pharmacy President Admit Roles in $33 Million Pharmacy Compounded Medication SchemeRead the Press Release
NEWARK, N.J. – Two individuals have admitted their respective roles in a multimillion dollar compounded medication kickback scheme that they and others ran out of a pharmacy in Clifton, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Jeffrey Andrews, 73, pleaded guilty on Sept. 24, 2024, before U.S. District Judge Madeline Cox Arleo in Newark federal court to one count of an indictment charging him with conspiracy to violate the Anti-Kickback Statute.
Adam Brosius, 59, pleaded guilty before U.S. Magistrate Judge Michael A. Hammer in Newark federal court on Sept. 23, 2024, to two counts of an indictment charging him with conspiracy to commit health care fraud and conspiracy to violate the Anti-Kickback Statute.
According to documents filed in this case and statements made in court:
From 2014 through 2016, Andrews, Brosius and others used Main Avenue Pharmacy, a mail-order pharmacy with a storefront in Clifton, New Jersey, to run an illegal kickback scheme involving compounded drugs including scar creams, pain creams, migraine mediation, and vitamins. Andrews worked as the Chief Financial Officer for Main Avenue. Brosius worked as Main Avenue’s director of business development, and later as its president.
The scheme identified compounded drugs that would yield exorbitant reimbursements from health insurers, including both federal and commercial payers. Once Main Avenue identified lucrative formulas for compounds, it would create large prescription pads with those formulas on it and distribute the pads to marketers across the country with whom it had contractual relationships. The marketing companies would in turn distribute the prescription pad to telemedicine companies and doctors with whom they had a financial arrangement.
After filling prescriptions, Main Avenue submitted claims to health care benefit programs for reimbursement, including Medicare, Tricare, and commercial payers in New Jersey and elsewhere. After Main Avenue obtained reimbursement, it paid kickbacks to marketers who had generated the prescriptions. Main Avenue signed contracts with many of the marketers, which detailed the illicit kickback arrangement, which called for Main Avenue to pay each marketer money based on the volume of referrals of compounded prescriptions and the reimbursement amount that Main Avenue received. Main Avenue received approximately $33 million in reimbursements for compounded medications alone from health care benefit programs. Over $5.8 million of that amount was paid by TRICARE, a federal payer.
The count of conspiracy to commit health care fraud is punishable by a maximum penalty of 10 years in prison. The count of conspiracy to violate the Anti-Kickback Statute is punishable by a maximum penalty of five years in prison. Both counts are also punishable by a fine of $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Brosius is scheduled for Feb. 20, 2025, and for Andrews, Feb. 18, 2025.
Charges remain pending against Chad Beene, 52, of Philadelphia, Pennsylvania. The charges and allegations against Beene are merely accusations and he is presumed innocent unless and until proven guilty. Robert Schneiderman, 81, of Langhorne, Pennsylvania, previously pleaded guilty to two counts of the Indictment.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano of the Health Care Fraud Unit and Matthew Specht of the Special Prosecutions Division.
andrews.indictment.pdfSussex County Man Sentenced to 146 Months in Prison for Distributing MethamphetamineRead the Press Release
CAMDEN, N.J. – A Sussex County, New Jersey, man was sentenced to 146 months in prison for his involvement in a drug trafficking organization distributing methamphetamine, U.S. Attorney Philip Sellinger announced today.
Steven R. Kristiansen, 54, of Byram Township, New Jersey, previously pleaded guilty before U.S. Circuit Judge Stephanos Bibas, to a five-count information charging him with conspiracy to distribute methamphetamine, distribution and possession of methamphetamine, and possession of ammunition by a convicted felon. Judge Bibas imposed the sentence on Sept. 20, 2024, in Camden federal court.
According to the documents filed in this case and statements made in court:
In January 2022, law enforcement determined that Kristiansen was a member of a drug trafficking organization and distributed methamphetamine. From Jan. 14, 2022, to Jan. 18, 2022, Kristiansen sold over 60 grams of methamphetamine to an undercover police office. On Jan. 25, 2022, law enforcement executed search warrants at Kristiansen’s residence and car and recovered over 50 grams of methamphetamine and ammunition.
In addition to the prison term, Judge Bibas sentenced Kristiansen to five years of supervised release.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the diection of Acting Special Agent in Charge Spiros Karabinas, with the investigation leading to the sentence.
The government is represented by Assistant U.S. Attorney Megan Linares of the Cybercrime Unit in Newark.
New York Acupuncturist Sentenced to 34 Months in Prison for Role in $9 Million Health Care Fraud Targeting AmtrakRead the Press Release
NEWARK, N.J. – A New York acupuncturist was sentenced today to 34 months in prison for participating in a $9 million health care fraud scheme to defraud Amtrak, U.S. Attorney Philip R. Sellinger announced.
Punson Figueroa, aka “Susie,” 58, of Long Island City, New York, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging her with conspiracy to commit health care fraud.
“Submitting fraudulent claims to steal money harms the public and the health care system. This defendant admitted fleecing the health care system for millions of dollars in illicit claims, and today she learned the punishment for her offense. My office and our partners are committed to stopping health care scams and ensure that guilty participants are punished.”
U.S. Attorney Philip R. Sellinger
“We remain fully committed to bringing justice to health care providers who target Amtrak’s health care plans as well as Amtrak employees who collude with them,” said Amtrak’s Inspector General, Kevin H. Winters. “We hope this case serves as a deterrent for health care providers and Amtrak employees who may choose to engage in such schemes, and we ask anyone who suspects or observes such fraud to report it to our fraud, waste, and abuse hotline.”
“This investigation unveiled the mastermind behind a $9 million health care fraud scheme,” DEA – New York Special Agent in Charge Frank Tarentino said. “I applaud our law enforcement partners whose diligent work put an end to this conspiracy and brought Punson Figueroa to justice to face the consequences of her illegal actions.”
“This case demonstrates Amtrak’s resolve to work alongside all our law enforcement partners to investigate and hold accountable those who attempt to defraud the system,” Chief Sam Dotson said. “We are grateful for the collaborative law enforcement effort that led to this guilty plea, and we will continue to be vigilant in safeguarding Amtrak’s assets.”
According to documents filed in this case and statements made in court:
From January 2019 through June 2022, Figueroa and her conspirators agreed to engage in a scheme to bill the Amtrak health care plan for fraudulent claims for services that never were provided and were medically unnecessary. Figueroa recruited Amtrak employees to participate in the scheme by paying them cash in return for allowing her to use their personal and insurance information to submit false and fraudulent claims. Figueroa conspired with dozens of Amtrak employees and paid hundreds of thousands of dollars in cash kickbacks to Amtrak employees over the course of the scheme.
On June 16, 2021, an undercover law enforcement agent posing as an Amtrak employee met with Figueroa at Figueroa’s office in New York. Figueroa instructed the undercover agent to sign his name about 30 times for services received and instructed the undercover agent not to date the signatures. Figueroa caused false claims to be submitted to Amtrak’s health care plan indicating that the undercover agent had visited providers at least seven times in May 2021, purportedly receiving acupuncture and physical therapy services.
The undercover agent visited Figueroa’s office on only one other occasion, on July 29, 2021. At this meeting, Figueroa handed the undercover agent an envelope filled with $1,000. Thereafter, Figueroa continued to use the undercover agent’s personal and insurance information to submit dozens of fraudulent claims to the Amtrak health care plan.
In total, Figueroa caused Amtrak to pay out over $9 million in false and fraudulent insurance claims.
In addition to the prison term, Judge Arleo sentenced Figueroa to three years of supervised release and ordered restitution of $9.05 million.
U.S. Attorney Sellinger credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York, and the Amtrak Police Department, under the direction of Chief of Police Sam Dotson, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano and Jessica R. Ecker of the Health Care Fraud Unit in Newark.
Burlington County Man Charged with Drug and Firearm CrimesRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man has been charged with drug and firearm offenses, U.S. Attorney Philip R. Sellinger announced today.
Daniel Garcia Jr., 27, of Maple Shade, is charged by complaint with possession with intent to distribute over 50 grams of methamphetamine and possession of firearms by a convicted felon. His initial court appearance will be scheduled for a later date.
According to documents filed in this case and statements made in court:
On June 23, 2024, at approximately 12:35 p.m., Garcia and another individual rushed a minor to the hospital because the minor was not breathing, was having seizures, drooling, and unresponsive. The minor was treated at the hospital and was later flown to a children’s hospital, where care continued. Drug screening tests for the minor were positive for benzodiazepine, fentanyl, and cocaine. Medical personnel at the children’s hospital informed law enforcement officers that the minor had been administered benzodiazepine and fentanyl during treatment, but that cocaine had not been administered. A doctor at the children’s hospital also informed law enforcement officers that the minor’s symptoms, including seizure, cardiac arrest, and cardiac arrythmia, were all symptoms of a cocaine overdose.
On June 24, 2024, law enforcement officers executed a search warrant at Garcia’s residence and found cash, drug packaging paraphernalia and an envelope containing both 9mm and .357 magnum ammunition. On June 25, 2024, a search of a vehicle that Garcia had been seen operating revealed a laundry bag that contained $150,000 cash, 329.1 grams of methamphetamine, 767 grams of cocaine, 41 amphetamine tablets, 102 alprazolam tablets, 272 oxycodone tablets, 2.6 grams of MDMA powder, 1,341 grams of marijuana, 9.9 grams of psilocin and psilocybin mushrooms, 192 grams of crystalline cutting agents commonly used for illegal drug preparation, three digital scales, drug packaging material, two 9mm handguns and a .357 magnum revolver. The three firearms were loaded. Law enforcement officers also reviewed surveillance video from the apartment complex that showed Garcia returning to the apartment after leaving the hospital and placing the laundry bag inside the trunk of the vehicle.
The charge of possession with intent to distribute over 50g of methamphetamine carries a minimum statutory term of 10 years, a maximum statutory term of life, and a maximum fine of $10 million. The charge of being a felon in possession of firearms carries a maximum statutory term of 15 years and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation. U.S. Attorney Sellinger also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor LaChia L. Bradshaw, and the Maple Shade Police Department, under the direction of Chief Christopher Fletcher.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
garcia.complaint.pdfBulgarian National Admits Assaulting ICE Deportation OfficerRead the Press Release
CAMDEN, N.J. – A Bulgarian national today admitted assaulting a U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) deportation officer, U.S. Attorney Philip R. Sellinger announced.
Vasil Petrov, 40, of Bulgaria, pleaded guilty before U.S. District Judge Karen Williams in Camden federal court to an information charging him with one count of assaulting a federal officer and inflicting bodily injury.
According to documents filed in this case and statements made in court:
On Dec. 27, 2023, Petrov was in the lawful custody of ICE at an ICE facility in Elizabeth, New Jersey, pending removal from the United States. While being processed for removal, Petrov struck the deportation officer in the chin with a closed fist. As a result of Petrov’s assault, the deportation officer sustained bodily injury, including a laceration on his chin that required liquid stitches.
The charge to which Petrov pleaded guilty carries a maximum penalty of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Jan. 27, 2025.
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.
The government is represented by Assistant U.S. Attorney Chana Y. Zuckier of the OCDETF Unit in Newark.
petrov.information.pdfTwo Individuals Charged with Armed Robbery of U.S.P.S Mail CarrierRead the Press Release
NEWARK, N.J. – Two individuals were charged with the armed robbery of a U.S. Postal Service mail carrier, U.S. Attorney Philip R. Sellinger announced today.
Eddie Tyree James White, 26, of Delaware, and James Hammond-Smith, 26, of East Orange, New Jersey, are charged by complaint with one count of robbery of a mail carrier. White was additionally charged with theft of a postal key and theft of mail. Both appeared today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court. Hammond-Smith was released on $100,000 unsecured bond and White was detained.
According to documents filed in this case and statements made in court:
On Nov. 28, 2022, White approached a USPS mail carrier while she was in her USPS vehicle in Newark. White displayed a firearm in his waistband and demanded the mail carrier’s arrow key, a master key used by USPS to access various mail receptacles. The mail carrier gave the key to White, who fled on foot. Hammond-Smith drove White to the robbery. White subsequently used the postal key to access mail receptacles to steal mail, including checks and money orders.
The robbery of a mail carrier charge and postal key theft charge each carry a maximum penalty of 10 years in prison. The theft of mail charge carries a maximum penalty of five years in prison. All three charges carry a maximum fine of $250,000 or twice the gross gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Neilson, Philadelphia Division, with the investigation. He also thanked the Delaware State Police.
The government is represented by Assistant U.S. Attorney Chana Zuckier of the OCDETF unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
hammondsmithwhite.complaint.pdfન્યુ જર્સી ડિસ્ટ્રિક્ટ માટે યુએસ એટર્ની ઓફિસ, ન્યાય વિભાગ અને ડિઆવાસ અને શહેરી વિકાસ વિભાગે ન્યુ જર્સીમાં રેડલાઇનિંગના આક્ષેપો ઉકેલવા માટે ઓશનફર્સ્ટ બેંક પાસેથીથી $15 મિલિયનથી વધુની ચુકવણી પ્રાપ્ત કરીRead the Press Release
ન્યાય વિભાગના નાગરિક અધિકાર વિભાગ, એટલે કે ન્યુ જર્સી ડિસ્ટ્રિક્ટ માટે યુએસ એટર્ની ઑફિસ અને આવાસ અને શહેરી વિકાસ વિભાગ (HUD) એ આજે જાહેરાત કરી કે ઓશનફર્સ્ટ બેંક, N.A એ ન્યૂ જર્સીમાં મિડલસેક્સ, મોનમાઉથ અને ઓશન કાઉન્ટીઝમાં મુખ્યત્વે આફ્રિકન, હિસ્પેનિક અને એશિયન લોકોની લોન નામંજૂર કરીને ધિરાણમાં ભેદભાવની પદ્ધતિ અથવા પ્રથા અપનાવવાના આક્ષેપોનું નિરાકરણ કરવા $15 મિલિયનથી વધુની ચુકવણી કરવા માટે સમંતિ આપી. રેડલાઇનિંગ એ એક ગેરકાયદેસર પ્રથા છે જેમાં ધિરાણકર્તાઓ, જાતિ, રંગ અથવા રાષ્ટ્રીય મૂળના આધારે, યુએસની બહારના નાગરિકોને ધિરાણ સેવાઓ આપવાનું ટાળે છે.
ઑક્ટોબર 2021માં, એટર્ની જનરલ ગારલેન્ડ અને આસિસ્ટન્ટ એટર્ની જનરલ ક્લાર્કે ન્યાય વિભાગની કોમ્બેટિંગ રેડલાઇનિંગ પહેલ શરૂ કરી, જે મિશ્રિત વંશના વિવિધ સમુદાયો સામેના ભેદભાવની આ નિરંતર પ્રથાને દૂર કરવા માટેનો સંકલિત રીતે અમલમાં મુકેલો પ્રયાસ છે. આ પહેલથી દેશભરમાં યુએસ એટર્ની ઑફિસો, નિયમનકારી ભાગીદારો અને રાજ્યની એટર્ની જનરલ ઑફિસમાં તેના ભાગીદારો સાથે ભાગીદારીને મજબૂત જેથી આ વિભાગની પહોંચ પણ વધી છે. 2021 થી, વિભાગે 13 રેડલાઇનિંગના આક્ષેપોના ઉકેલો લાવ્યા અને સમગ્ર દેશમાં ધિરાણના ભેદભાવનો સામનો કરી ચુક્યા વિવિધ નાગરિકો માટે $137 મિલિયનથી વધુની રાહત મેળવી છે.
એટર્ની જનરલ મેરિક બી. ગારલેન્ડે જણાવ્યું હતું કે, "આ રકમ, અને ન્યાય વિભાગ દ્વારા સમગ્ર દેશમાં સમુદાયો માટે $137 મિલિયનથી વધુની મેળવેલી રાહત, તે ખાતરી કરવામાં મદદ કરશે કે અમેરિકનોની ભાવિ પેઢીઓને વારસામાં પોતાનું ઘર મળે કે જેના માટે તેઓએ પણ નામંજૂરીનો સામનો કર્યો હતો". “રેડલાઇનિંગ ગેરકાનૂની છે, તે હાનિકારક છે અને તે ખોટું છે. ન્યાય વિભાગ બેંકો અને મોર્ટગેજ કંપનીઓને રેડલાઇનિંગ માટે જવાબદાર ઠરાવવાનું ચાલુ રાખશે અને આ ભેદભાવપૂર્ણ પ્રથાઓથી સતત પીડાતા સમુદાયોને રાહત પ્રદાન કરશે."
યુએસ એટર્ની ફિલિપ આર સેલિંગરે જણાવ્યું હતું કે, "રેડલાઇનિંગ એક અસમાન વાતાવરણ બનાવે છે જે અયોગ્ય રીતે યુએસની બહારના નાગરિકોને, અમેરિકનનું સપનું, એટલે કે પોતાનું ઘર ખરીદવાથી અટકાવે છે, અને આ પ્રકારનો પ્રણાલીગત અને ઇરાદાપૂર્વકનો ભેદભાવ અસહ્ય છે અને સહન કરવામાં નહીં આવે." “21મી સદીમાં રેડલાઇનિંગ ચાલુ રહે છે તે સંપૂર્ણપણે અસ્વીકાર્ય છે અને અમે એ સુનિશ્ચિત કરવા માટે પ્રતિબદ્ધ છીએ કે અમારા તમામ નાગરિકોને તેમનું પોતાનું ઘર ખરીદવાની તક મળે કારણ કે આ આપણા બધા માટે સમુદાયોને મજબૂત બનાવવામાં મદદ કરે છે. આ કરાર ન્યુ જર્સીમાં રેસિડેન્શિયલ મોર્ટગેજ લેન્ડિંગમાં ગેરકાયદેસર અને ભેદભાવપૂર્ણ અવરોધોને દૂર કરવા માટે એક મોટું પગલું છે.”
ન્યાય વિભાગના નાગરિક અધિકાર વિભાગના આસિસ્ટન્ટ એટર્ની જનરલ ક્રિસ્ટન ક્લાર્કે જણાવ્યું હતું કે, "ઘણી વાર, મિશ્રિત વંશના લોકોને લોનની સમાન ઉપલબ્ધતા અને પેઢીગત સંપત્તિનું નિર્માણ કરવાની તક આપવામાં નથી આવી". “વર્તમાન દિવસના રેડલાઇનિંગને દૂર કરવાના ઐતિહાસિક પ્રયાસો દ્વારા, અમે પીડિત પરિવારો અને સમુદાયો માટે પોતાનું ઘર ખરદીવાની નવી તકો ખોલી છે. આ કરાર તમામ અમેરિકનો માટે વંશીય અને આર્થિક ન્યાય પ્રાપ્ત કરવા સહીત બેંકો અને નાણાકીય સંસ્થાઓને તેમના ભેદભાવપૂર્ણ કાર્ય માટે જવાબદાર ઠરાવવાની ન્યાય વિભાગની પ્રતિબદ્ધતા દર્શાવે છે."
HUDના કાર્યકારી સચિવ એડ્રિયન ટોડમેને જણાવ્યું હતું કે, "રેડલાઇનિંગ ગેરકાયદેસર હોવાની સાથે-સાથે દેશના હજારો રંગીન પરિવારો માટે અયોગ્ય રીતે આર્થિક તકોના દરવાજા બંધ કરે છે". “ન્યાય વિભાગમાં અમારા ભાગીદારો સાથે મળીને, HUD આવાસ ક્ષેત્રમાં તમામ પ્રકારના ભેદભાવને જડમૂળથી દૂર કરીને ફેર હાઉસિંગ એક્ટ લાગુ કરવા માટે પ્રતિબદ્ધ છે. આજની જાહેરાત ન્યાય હાંસલ કરવા અને અમેરિકનો માટે, ખાસ કરીને જેમને ભૂતકાળમાં લોન નામંજૂર કરવામાં આવી છે, તેમના માટે સમાન તકો ઊભી કરવા માટેની અમારી સહિયારી પ્રતિબદ્ધતા દર્શાવે છે."
ન્યાય વિભાગની ફરિયાદ, જે આજે ન્યુ જર્સીના ડિસ્ટ્રિક્ટ માટે યુએસ ડિસ્ટ્રિક્ટ કોર્ટમાં દાખલ કરવામાં આવી હતી, જેમાં આરોપ છે કે, 2018 થી અંદાજે 2022 સુધી, ઓશનફર્સ્ટ બેંકે મિડલસેક્સ, મોનમાઉથ અને ઓશન કાઉન્ટીઝમાં મુખ્યત્વે આફ્રિકન, હિસ્પેનિક અને એશિયન લોકોની લોન નામંજૂર કરી હતી અને તે સમુદાયોમાં લોન મેળવવા માંગતા લોકોની હોમ લોન મેળવવાની આશા પર પાણી ફેરવી દીધું હતું. ફરિયાદમાં એવો વિશિષ્ટ આક્ષેપ કરવામાં આવ્યો છે કે ઓશનફર્સ્ટએ મુખ્યત્વે અમેરિકન સમુદાયો પર અપ્રમાણસર રીતે તેની પહોંચ વિસ્તૃત કરવા અને જાહેરાત પર ધ્યાન કેન્દ્રિત કર્યું, તેની શાખાઓ અમેરિકન ક્ષેત્રોમાં ખોલી, અને તે કાઉન્ટીઓમાં મોટી સંખ્યામાં- અમેરિકન હિસ્પેનિક અને એશિયન ક્ષેત્રમાં તેની થોડી-ઘણી શાખાઓ બંધ કરી દીધી.
ન્યાય વિભાગે તેના આક્ષેપો, કોર્ટની મંજૂરીને આધીન, પ્રસ્તાવિત સંમતિ આદેશ દ્વારા ઉકેલ્યા છે. વધુમાં, ઓશનફર્સ્ટ અને HUD એ સમકક્ષ શરતો સાથે સમાધાન કરાર કર્યા છે. તે ઠરાવોમાં, ઓશનફર્સ્ટ નીચે મુજબ કરવા માટે સંમત છે:
- મિડલસેક્સ, મોનમાઉથ અને ઓશન કાઉન્ટીમાં મોટી સંખ્યામાં-બ્લેક, હિસ્પેનિક અને એશિયન રહેવાસીઓ માટે હોમ મોર્ગેજ, ઘર સુધારણા અને હોમ રિફાઇનાન્સ લોનની ઉપલબ્ધતા વધારવા માટે લોન સબસિડી ફંડમાં ઓછામાં ઓછા $14 મિલિયનનું રોકાણ કરવા;
- તે કાઉન્ટીઓમાં મુખ્યત્વે અમેરિકન, હિસ્પેનિક અને એશિયન રહેવાસીઓ માટે ક્રેડિટ, ગ્રાહકને નાણાકીય શિક્ષણ, મકાનમાલિકી અને ફોરક્લોઝર નિવારણ સંબંધિત સેવાઓ પ્રદાન કરવા માટે સામુદાયિક ભાગીદારી પર $400,000 ખર્ચ કરવા;
- તે કાઉન્ટીઓમાં મુખ્યત્વે આફ્રિકન, હિસ્પેનિક અને એશિયન ક્ષેત્રો પર કેન્દ્રિત જાહેરાત, આઉટરીચ, ગ્રાહકને નાણાકીય શિક્ષણ અને ક્રેડિટ કાઉન્સેલિંગ પર $700,000 ખર્ચ કરવા;
- તે કાઉન્ટીઓમાં મુખ્યત્વે આફ્રિકન, હિસ્પેનિક અને એશિયન ક્ષેત્રમાં લોન પ્રોડક્શન ઑફિસ ખોલવા અને બેંકની તાજેતરમાં ખોલેલી સંપૂર્ણ-સેવા શાખાની જાળવણી કરવા, જેમાં દરેક સ્થાન માટે ઓછોમાં ઓછો એક મોર્ટગેજ લોન અધિકારીને નિયુક્ત કરેલ હોવો જોઈએ;
- સમુદાયમાં ધિરાણની જરૂરિયાતોનું મૂલ્યાંકન કરવા, તેની વાજબી ધિરાણ અનુપાલન વ્યવસ્થાપન પ્રણાલીઓનું મૂલ્યાંકન કરવા અને વાજબી ધિરાણ અંગે સ્ટાફની ટ્રેનિંગ આયોજિત કરવા; અને
- સામુદાયિક ધિરાણના ડિરેક્ટરની નિમણૂક કરવા, જે રંગીન સમુદાયોમાં હોમ મોર્ટગેજ ક્રેડિટના સતત વિકાસની દેખરેખ રાખશે.
યુએસ એટર્ની ઑફિસ અને ન્યાય વિભાગના નાગરિક અધિકાર વિભાગે બેંકના નિયમનકાર, ઑફિસ ઑફ ધ કમ્પ્ટ્રોલર ઑફ ધ કરન્સી (OCC) તરફથી રેફરલ પ્રાપ્ત કર્યા પછી ઓશનફાર્સ્ટની ધિરાણ પદ્ધતિઓની તેમની તપાસ શરૂ કરી. ઓશનફાર્સ્ટએ આ તપાસમાં સહકાર આપ્યો અને રેડલાઇનિંગના આક્ષેપોને ઉકેલવા માટે ન્યાય વિભાગ અને HUD સાથે કામ કર્યું.
ન્યાય વિભાગ દ્વારા ન્યાયી ધિરાણ માટે અમલમાં મુકાયેલા કાર્ય વિશેની માહિતી www.justice.gov/fairhousing પર મળી શકે છે. લોકો યુએસ ન્યાય વિભાગની હાઉસિંગ ડિસ્ક્રિમિનેશન ટીપ લાઇનને 1-833-591-0291 પર કૉલ કરીને અથવા ઑનલાઇન રિપોર્ટ સબમિટ કરીને ધિરાણમાં ભેદભાવની સૂચના આપી શકે છે. યુએસ એટર્ની ઓફિસના નાગરિક અધિકાર અમલીકરણ વિશેની માહિતી www.justice.gov/usao-nj/civil-rights-enforcement પર ઉપલબ્ધ છે. ન્યુ જર્સીના ડિસ્ટ્રિક્ટની વ્યક્તિઓ પણ અહીં નાગરિક અધિકારોના ઉલ્લંઘનની જાણ કરી શકે છે અથવા (855) 281-3339 પર યુએસ એટર્નીની સિવિલ રાઇટ્સ હોટલાઇનને કૉલ કરીને પણ જાણ કરી શકે છે.
સરકારનું પ્રતિનિધિત્વ, યુએસ એટર્ની ઑફિસના નાગરિક અધિકાર વિભાગના સહાયક યુએસ એટર્ની સુસાન મિલેન્કી અને ટ્રાયલ એટર્ની નાથન શુલોક, યુએસ ડિપાર્ટમેન્ટ ઑફ જસ્ટિસ, સિવિલ રાઇટ્સ ડિવિઝન, હાઉસિંગ અને સિવિલ એન્ફોર્સમેન્ટ વિભાગ દ્વારા કરવામાં આવે છે.
U.S. Attorney’s Office for the District of New Jersey, Justice Department and Department of Housing and Urban Development Secure over $15 Million from OceanFirst Bank to Resolve Redlining Claims in New JerseyRead the Press Release
gaujaraatai.pdf espanol.pdfNEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey, the Justice Department’s Civil Rights Division, and Department of Housing and Urban Development (HUD) announced today that OceanFirst Bank, N.A. has agreed to pay over $15 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black, Hispanic and Asian neighborhoods in Middlesex, Monmouth and Ocean Counties in New Jersey. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of residents in those communities.
In October 2021, Attorney General Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners, and its partners in state Attorneys General offices. Since 2021, the department has announced 13 redlining resolutions and secured over $137 million in relief for communities of color that have been the victims of lending discrimination across the country.
“This settlement, and the over $137 million in relief the Justice Department has secured for communities across the country, will help to ensure that future generations of Americans inherit a legacy of home ownership that they have been too often denied,” said Attorney General Merrick B. Garland. “Redlining is unlawful, it is harmful, and it is wrong. The Justice Department will continue to hold banks and mortgage companies accountable for redlining and to secure relief for the communities that continue to be harmed by these discriminatory practices.”
U.S. Attorney Philip R. Sellinger“Redlining creates an unequal playing field that unfairly prevents many persons of color from achieving the American dream of home ownership, and this type of systemic and intentional discrimination cannot and will not be tolerated. It is wholly unacceptable that redlining persists into the 21st Century, and we are committed to ensuring that all of our citizens have the chance to put down roots in their own home as this helps build stronger communities for all of us. This agreement is a major step forward in removing illegal and discriminatory barriers in residential mortgage lending in New Jersey.”
“Far too often, communities of color have been denied equal access to credit and the opportunity to build generational wealth,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “Through our historic efforts to combat modern day redlining, we have opened up new homeownership opportunities for impacted families and communities. This agreement underscores the Justice Department’s commitment to holding banks and financial institutions accountable for their discriminatory actions while ensuring racial and economic justice for all Americans.”
“Redlining is not only illegal, but it unfairly closes doors of economic opportunity for thousands of families of color in this country,” said HUD Acting Secretary Adrianne Todman. “Together with our partners at the Justice Department, HUD remains committed to enforcing the Fair Housing Act by rooting out all forms of discrimination in housing. Today’s announcement underscores our shared commitment to achieving justice and creating equitable opportunities for Americans, particularly those who have historically been denied access.”
The Justice Department’s complaint, which was filed today in the U.S. District Court for the District of New Jersey, alleges that, from 2018 through at least 2022, OceanFirst Bank failed to provide mortgage lending services to predominantly Black, Hispanic, and Asian neighborhoods in Middlesex, Monmouth, and Ocean Counties and discouraged people seeking credit in those communities from obtaining home loans. Specifically, the complaint alleges that OceanFirst disproportionately focused its outreach and advertising on majority-white communities, placed its branches in majority-white neighborhoods, and closed its only branches in the majority-Black, Hispanic, and Asian neighborhoods in those counties.
The Justice Department has resolved its claims via a proposed consent order, which is subject to court approval. Additionally, OceanFirst and HUD have entered into a conciliation agreement with equivalent terms. In those resolutions, OceanFirst has agreed to do the following:
- Invest at least $14 million in a loan subsidy fund to increase access to home mortgage, home improvement, and home refinance loans for residents of majority-Black, Hispanic, and Asian neighborhoods in Middlesex, Monmouth, and Ocean Counties;
- Spend $400,000 on community partnerships to provide services related to credit, consumer financial education, homeownership, and foreclosure prevention for residents of predominantly Black, Hispanic, and Asian neighborhoods in those counties;
- Spend $700,000 on advertising, outreach, consumer financial education, and credit counseling focused on predominantly Black, Hispanic, and Asian neighborhoods in those counties;
- Open a loan production office and maintain the bank’s recently opened full-service branch, both located in predominantly Black, Hispanic, and Asian neighborhoods in those counties, with at least one mortgage loan officer assigned to each location;
- Conduct a community credit needs assessment, evaluate its fair lending compliance management systems, and conduct staff trainings on fair lending; and
- Hire a director of community lending who will oversee the continued development of home mortgage lending in communities of color.
The U.S. Attorney’s Office and the Justice Department’s Civil Rights Division opened their investigation into OceanFirst’s lending practices after receiving a referral from the bank’s regulator, the Office of the Comptroller of the Currency (OCC). OceanFirst cooperated with this investigation and worked with the Department of Justice and HUD to resolve the redlining allegations.
Information about the Justice Department’s fair lending enforcement work can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the U.S. Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online. Information about the U.S. Attorney’s Office’s civil rights enforcement may be found at www.justice.gov/usao-nj/civil-rights-enforcement. Individuals in the District of New Jersey may also report civil rights violations here or by calling the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339.
The government is represented by Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Office’s Civil Rights Division and Trial Attorney Nathan Shulock, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.
oceanfirst.complaint.pdf oceanfirst.consent_order.pdfPhiladelphia Man Admits Enticing MinorRead the Press Release
CAMDEN, N.J. – A Philadelphia man today admitted using an internet-based chat application to entice a minor to engage in prostitution, U.S. Attorney Philip R. Sellinger announced.
Louis Goldenberg, 41, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of attempted online enticement of a minor to engage in prostitution.
According to documents filed in this case and statements made in court:
In August 2023, Goldenberg began interacting on a messaging application with an undercover agent, who was posing as a middle-aged woman with a 12-year-old niece. From August through September 2023, Goldenberg messaged the undercover, continuously expressing interest in having sexual contact with the minor. During one of the conversations, Goldenberg indicated a specific hotel in Mt. Laurel, New Jersey, where he wanted to have sex with the minor. On Sept. 18, 2023, Goldenberg traveled from Pennsylvania to the Mt. Laurel hotel, where he had a reservation for that evening. When Goldenberg arrived, he was arrested by law enforcement.
The charge to which Goldenberg pleaded guilty carries a mandatory minimum term of incarceration of 10 years in prison, a potential maximum term of life in prison, and up to a $250,000 fine. Sentencing is scheduled for Jan. 27, 2025.
U.S. Attorney Sellinger credited special agents and task force officers with Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation leading to the charges. He also thanked the Burlington County Prosecutor’s Office and Mount Laurel Police Department.
The government is represented by Special Assistant U.S. Attorney Katelyn Waegener of the U.S. Attorney’s Office in Camden.
goldenberg.information.pdfJustice Department and Department of Housing and Urban Development Secure over $15M from OceanFirst Bank to Resolve Redlining Claims in New JerseyRead the Press Release
The Justice Department’s Civil Rights Division, U.S. Attorney’s Office for the District of New Jersey and Department of Housing and Urban Development (HUD) announced today that OceanFirst Bank, N.A. has agreed to pay over $15 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black, Hispanic and Asian neighborhoods in Middlesex, Monmouth, and Ocean Counties in New Jersey. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of residents in those communities.
In October 2021, Attorney General Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners, and its partners in state Attorneys General offices. Since 2021, the department has announced 13 redlining resolutions and secured over $137 million in relief for communities of color that have been the victims of lending discrimination across the country.
“This settlement, and the over $137 million in relief the Justice Department has secured for communities across the country, will help to ensure that future generations of Americans inherit a legacy of home ownership that they have been too often denied,” said Attorney General Merrick B. Garland. “Redlining is unlawful, it is harmful, and it is wrong. The Justice Department will continue to hold banks and mortgage companies accountable for redlining and to secure relief for the communities that continue to be harmed by these discriminatory practices.”
“Far too often, communities of color have been denied equal access to credit and the opportunity to build generational wealth,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Through our historic efforts to combat modern day redlining, we have opened up new homeownership opportunities for impacted families and communities. This agreement underscores the Justice Department’s commitment to holding banks and financial institutions accountable for their discriminatory actions while ensuring racial and economic justice for all Americans.”
“We are committed to ensuring that everyone in New Jersey has access to the American dream of homeownership, regardless of race, color, or national origin,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “This agreement is an important step in leveling the playing field and removing illegal and discriminatory barriers in residential mortgage lending.”
“Redlining is not only illegal, but it unfairly closes doors of economic opportunity for thousands of families of color in this country,” said HUD Acting Secretary Adrianne Todman. “Together with our partners at the Justice Department, HUD remains committed to enforcing the Fair Housing Act by rooting out all forms of discrimination in housing. Today’s announcement underscores our shared commitment to achieving justice and creating equitable opportunities for Americans, particularly those who have historically been denied access.”
The Justice Department’s complaint, which was filed today in the U.S. District Court for the District of New Jersey, alleges that, from 2018 through at least 2022, OceanFirst Bank failed to provide mortgage lending services to predominantly Black, Hispanic, and Asian neighborhoods in Middlesex, Monmouth, and Ocean Counties and discouraged people seeking credit in those communities from obtaining home loans. Specifically, the complaint alleges that OceanFirst disproportionately focused its outreach and advertising on majority-white communities, placed its branches in majority-white neighborhoods, and closed its only branches in the majority-Black, Hispanic, and Asian neighborhoods in those counties.
The Justice Department has resolved its claims via a proposed consent order, which is subject to court approval. Additionally, OceanFirst and HUD have entered into a conciliation agreement with equivalent terms. In those resolutions, OceanFirst has agreed to do the following:
- Invest at least $14 million in a loan subsidy fund to increase access to home mortgage, home improvement, and home refinance loans for residents of majority-Black, Hispanic, and Asian neighborhoods in Middlesex, Monmouth, and Ocean Counties;
- Spend $400,000 on community partnerships to provide services related to credit, consumer financial education, homeownership, and foreclosure prevention for residents of predominantly Black, Hispanic, and Asian neighborhoods in those counties;
- Spend $700,000 on advertising, outreach, consumer financial education, and credit counseling focused on predominantly Black, Hispanic, and Asian neighborhoods in those counties;
- Open a loan production office and maintain the bank’s recently opened full-service branch, both located in predominantly Black, Hispanic, and Asian neighborhoods in those counties, with at least one mortgage loan officer assigned to each location;
- Conduct a community credit needs assessment, evaluate its fair lending compliance management systems, and conduct staff trainings on fair lending; and
- Hire a director of community lending who will oversee the continued development of home mortgage lending in communities of color.
The Justice Department’s Civil Rights Division and U.S. Attorney’s Office for the District of New Jersey opened their investigation into OceanFirst’s lending practices after receiving a referral from the bank’s regulator, the Office of the Comptroller of the Currency. OceanFirst cooperated with the investigation and worked with the Justice Department and HUD to resolve the redlining allegations.
Information about the Justice Department’s fair lending enforcement work can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online. Information about the U.S. Attorney’s Office’s civil rights enforcement may be found at www.justice.gov/usao-nj/civil-rights-enforcement. Individuals in the District of New Jersey may also report civil rights violations here or by calling the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339.
El Departamento de Justicia y el Departamento de Vivienda y Desarrollo Urbano aseguran más de $15 millones de OceanFirst Bank para resolver las reclamaciones de exclusión financiera en New JerseyRead the Press Release
La División de Derechos Civiles del Departamento de Justicia, la Fiscalía Federal para el Distrito de New Jersey y el Departamento de Vivienda y Desarrollo Urbano (HUD) anunciaron hoy que OceanFirst Bank, N.A. ha acordado pagar más de $15 millones para resolver alegaciones de que participó en un patrón o una práctica de discriminación crediticia al practicar la exclusión financiera en barrios de mayoría negra, hispana y asiática en los condados de Middlesex, Monmouth y Ocean en New Jersey. La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color o el origen nacional de las personas que viven en esas comunidades.
En octubre de 2021, el Fiscal General Garland y la Fiscal General Adjunta Clarke lanzaron la Iniciativa del Departamento de Justicia para Combatir la Exclusión Financiera, un esfuerzo de cumplimiento coordinado para abordar esta forma persistente de discriminación contra las comunidades de color. La iniciativa está ampliando el alcance del departamento al fortalecer las asociaciones con las Fiscalías de los Estados Unidos en todo el país, los socios reguladores y sus socios en las oficinas de los Fiscales Generales estatales. Desde 2021, el departamento ha anunciado 13 resoluciones de discriminación y ha obtenido más de $137 millones en ayuda para las comunidades de color que han sido víctimas de discriminación crediticia en todo el país.
“Este acuerdo, y los más de $137 millones en ayuda que el Departamento de Justicia ha conseguido para comunidades de todo el país, ayudarán a garantizar que futuras generaciones de estadounidenses hereden un legado de propiedad de vivienda que se les ha negado con demasiada frecuencia”, dijo el Fiscal General Merrick B. Garland. “La exclusión financiera es ilegal, es perjudicial y está mal. El Departamento de Justicia seguirá haciendo que los bancos y las compañías hipotecarias rindan cuentas por la exclusión financiera y garantizará ayuda para las comunidades que siguen viéndose perjudicadas por estas prácticas discriminatorias”.
“Con demasiada frecuencia, a las comunidades de color se les ha negado el acceso igualitario al crédito y la oportunidad de generar riqueza generacional”, dijo la fiscal general adjunta Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “A través de nuestros esfuerzos históricos para combatir la exclusión financiera moderna, hemos abierto nuevas oportunidades de propiedad de vivienda para las familias y comunidades afectadas. Este acuerdo subraya el compromiso del Departamento de Justicia de responsabilizar a los bancos y las instituciones financieras por sus acciones discriminatorias, al tiempo que garantiza la justicia racial y económica para todos los estadounidenses”.
“Nos comprometemos a garantizar que todos en New Jersey tengan acceso al sueño americano de ser propietarios de casa, independientemente de su raza, color de piel u origen nacional”, comentó Philip R. Sellinger, el Fiscal Federal para el Distrito de New Jersey. “Este acuerdo es un paso importante para nivelar el campo de juego y eliminar las barreras ilegales y discriminatorias en los préstamos hipotecarios residenciales”.
“La exclusión financiera no solo es ilegal, sino que cierra injustamente las puertas de oportunidades económicas para miles de familias de color en este país”, dijo la secretaria interina de HUD, Adrianne Todman. “Junto con nuestros socios del Departamento de Justicia, HUD sigue comprometido con hacer valer la Ley de Vivienda Justa erradicando todas las formas de discriminación en la vivienda. El anuncio de hoy subraya nuestro compromiso compartido de lograr justicia y crear oportunidades equitativas para los estadounidenses, en particular para aquellos a quienes históricamente se les ha negado el acceso”.
La queja del Departamento de Justicia, que se presentó hoy en el Tribunal Federal de Distrito para el Distrito de New Jersey alega que, desde el 2018 hasta al menos el 2022, OceanFirst Bank no proporcionó servicios de préstamos hipotecarios a barrios de mayoría negra, hispana y asiática en los condados de Middlesex, Monmouth y Ocean, y desalentó a personas que buscaban crédito en esas comunidades de obtener préstamos hipotecarios. En concreto, la queja alega que OceanFirst centró, de forma desproporcionada, su difusión y publicidad en comunidades de mayoría blanca, ubicó sus sucursales en barrios de mayoría blanca y cerró sus únicas sucursales en los barrios de mayoría negra, hispana y asiática en esos condados.
El Departamento de Justicia ha resuelto sus reclamaciones a través de una orden por consentimiento propuesta, que está sujeta a la aprobación del tribunal. Además, OceanFirst y HUD han celebrado un acuerdo conciliatorio con términos equivalentes. En esas resoluciones, OceanFirst ha acordado hacer lo siguiente:
- Invertir al menos $14 millones en un fondo de subsidios para préstamos para aumentar el acceso a préstamos hipotecarios, a mejoras en la vivienda y al refinanciamiento residencial para residentes de barrios de mayoría negra, hispana y asiática en los condados de Middlesex, Monmouth y Ocean.
- Desembolsar $400,000 en asociaciones comunitarias para proporcionar servicios relacionados con el crédito, la educación financiera del consumidor, la adquisición de viviendas y la prevención de ejecuciones hipotecarias para residentes de barrios de mayoría negra, hispana y asiática en esos condados;
- Desembolsar $700,000 en publicidad, proyección comunitaria, educación financiera al consumidor y asesoramiento de crédito centrado en barrios de mayoría negra, hispana y asiática en esos condados;
- Abrir una oficina de generación de préstamos hipotecarios y mantener abierta la sucursal de servicio completo recientemente abierta, ambas en barrios de mayoría negra, hispana y asiática en esos condados, con al menos un funcionario encargado de préstamos hipotecarios asignado a cada sucursal;
- Llevar a cabo una evaluación de las necesidades crediticias comunitarias, evaluará sus sistemas de gestión de cumplimiento con las leyes de préstamos justos y celebrará capacitaciones del personal sobre el tema de préstamos justos y
- Emplear a un Director de Préstamos Comunitarios que supervisará el desarrollo continuo de préstamos hipotecarios en comunidades de color.
La División de Derechos Civiles del Departamento de Justicia y la Fiscalía Federal para el Distrito de New Jersey iniciaron su investigación de las prácticas crediticias de OceanFirst después de recibir una notificación del regulador del banco, la Oficina del Contralor de la Moneda. OceanFirst cooperó con la investigación y trabajó con el Departamento de Justicia y HUD para resolver las alegaciones de exclusión financiera.
Puede encontrar información sobre la aplicación de las leyes de préstamos justos del Departamento de Justicia en www.justice.gov/fairhousing. Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea. Información sobre la aplicación de las leyes de derechos civiles por parte de la Fiscalía Federal puede encontrarse en www.justice.gov/usao-nj/civil-rights-enforcement. Personas en el Distrito de New Jersey también pueden proporcionar información sobre vulneraciones de derechos civiles aquí o llamando a la línea directa para asuntos de derechos civiles del Fiscal Federal al (855) 281-3339.
Virginia Man Admits Conspiring to Launder Money Obtained from Internet-Enabled Romance ScamsRead the Press Release
NEWARK, N.J. – A Virginia man today admitted to conspiring to launder money taken from victims across the United States as a part of a series of romance scams, U.S. Attorney Philip R. Sellinger announced.
Nana Yaw Marfo, 39, of Alexandria, Virginia, pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court today to an information charging him with one count of money laundering conspiracy.
According to documents filed in this case and statements made in court:
Marfo laundered money obtained through internet-enabled romance scams through numerous bank accounts opened in different business names. After receiving the romance scam victims’ money, Marfo wired thousands of dollars to overseas bank accounts. As part of this scheme, Marfo received and transferred approximately $4.7 million, knowing that the transactions were for the purpose of disguising or hiding the proceeds of criminal activity.
The money laundering conspiracy charge has a maximum prison term of 20 years, and a maximum fine of $500,000 or twice the value of the funds involved in the transfer, whichever is greater. Sentencing is scheduled for Feb. 4, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark and Special Agent in Charge Gregory D. Nelsen in Cleveland, Ohio, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys David E. Malagold and Ingrid Eicher of the Criminal Division in Newark.
marfo.information.pdfMorris County Man Sentenced to Seven Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was sentenced today to 84 months in prison for possessing and distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Anselmo Girimonte, 53, of Wharton, New Jersey, previously pleaded guilty before U.S. District Judge Julien Xavier Neals to an indictment charging him with one count of possession of child pornography and one count of distribution of child pornography. Judge Neals imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From Dec. 27, 2021, through Jan. 17, 2022, Girimonte distributed material containing images and 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 and during these sessions a user shared multiple video files of adults sexually abusing prepubescent children from an internet protocol address traced to Girimonte’s residence. During a March 2, 2022, search of Girimonte’s residence, law enforcement found over 100 images and videos depicting child sexual abuse, including images of prepubescent children being sexually abused, on Girimonte’s cell phone.
In addition to the prison term, Judge Neals sentenced Girimonte to 10 years of supervised release and ordered him to pay $68,000 in restitution to the victims.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, with the investigation leading to the sentencing. He also thanked the Morris County Prosecutor’s Office, the Rockaway Township Police Department, and the U.S. Postal Inspection Service.
The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the Opioid Abuse Prevention and Enforcement Unit in Newark.
U.S. Attorney Philip R. Sellinger Announces Creation of Whistleblower Non-Prosecution Pilot ProgramRead the Press Release
Whistleblower Program
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced today a new Whistleblower Non-Prosecution Pilot Program designed to proactively root out bribery, fraud, healthcare offenses, civil rights violations, corporate misconduct, and matters affecting the integrity of financial markets.
The program encourages individual participants in certain non-violent offenses to disclose their criminal conduct and provide cooperation against others who were involved. In exchange, the U.S. Attorney’s Office will enter into a non-prosecution agreement where certain specified conditions are met, including the condition that the government was not previously aware of the criminal conduct that is the subject of the disclosure. By providing clarity on the requirements and the benefits of such self-disclosure, the office seeks to incentivize individuals and their counsel to provide actionable and timely information. That will, in turn, help bring more misconduct to light and better protect the citizens of New Jersey.
“We are always looking for new and effective ways to identify and aggressively pursue crime,” U.S. Attorney Sellinger said. “This program sends a clear message that if you’ve helped commit a crime, you should come forward early and fully. If you don’t, someone else will. To get on the right side of the law and take advantage of this program, email us using the instructions on our website.”
DNJ’s Whistleblower Non-Prosecution Pilot Program is for individuals who participated in criminal activity and face criminal liability; it is different from the Department of Justice’s Corporate Whistleblower Awards Pilot Program, which is for individuals who did not meaningfully participate in criminal activity that falls within four subject areas, as further detailed at www.justice.gov/CorporateWhistleblower.
As with all internal policies of the U.S. Attorney’s Office, this new program provides guidance to prosecutors. Nothing in these policies creates any substantive or procedural rights, privileges, or benefits enforceable in any administrative, civil, or criminal matter by prospective or actual witnesses or parties. It remains at all times the sole discretion of the U.S. Attorney’s Office to determine whether an individual has satisfied each of the conditions necessary for the office to enter into a non-prosecution agreement in exchange for the individual’s cooperation, and, where the office has determined that any of those conditions are not met, it remains at all times in the sole discretion of the office to determine whether to extend a non-prosecution agreement in exchange for the individual’s cooperation.
dnj.whistleblowerpolicy.pdf dnj.whistleblowerintakeform.pdfU.S. Army Recruiter Charged with Bank Fraud and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – A sergeant first class in the U.S. Army and U.S. Army recruiter has been charged for engaging in a fraudulent scheme to defraud a credit union by using her position to obtain the personally identifying information of U.S. Army recruits and recruit candidates and submit fraudulent bank account applications to the credit union on the recruits’ behalf, U.S. Attorney Philip R. Sellinger announced today.
Jane Crosby, 33, of Jersey City, New Jersey, is charged by complaint with one count of bank fraud and seven counts of aggravated identity theft. Crosby appeared today before 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:
From Sept. 12, 2023, to Dec. 27, 2023, Crosby submitted “Pre-Active Duty Membership” bank account applications to a credit union on behalf of seven U.S. Army recruits or purported recruits, without their knowledge or consent. Such accounts are intended to facilitate the direct deposit of soon-to-be service members’ salaries once they join the military. These applications included the victims’ names and Social Security numbers as well as copies of their passports, driver’s licenses, and/or Social Security cards. Once these credit union accounts were opened, Crosby, posing as the victims, applied for approximately $266,000 in loans and credit card accounts and used some of the accounts to deposit fraudulent checks and then withdraw funds.
The bank fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest. The aggravated identity theft 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.
U.S. Attorney Sellinger credited special agents of the Department of the Army Criminal Investigation Division under the direction of Special Agent in Charge Joel Kirch, with the investigation.
The government is represented by Assistant U.S. Attorney Lauren Kober of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
crosby.complaint.pdfIndia- and New Jersey-Based Jeweler Admits Multimillion-Dollar International Trade Fraud Scheme and Unlicensed Money TransmittingRead the Press Release
NEWARK, NJ. – An India- and New Jersey-based man who operated jewelry companies in New York City’s Diamond District admitted today to spearheading a scheme to illegally evade customs duties for more than $13.5 million of jewelry imports into the United States and with illegally processing more than $10.3 million through an unlicensed money transmitting business, U.S. Attorney Philip R. Sellinger announced.
Monishkumar Kirankumar Doshi Shah, aka “Monish Doshi Shah, 39, of Mumbai, India, and Jersey City, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count each of conspiracy to commit wire fraud and operating and aiding and abetting the operation of an unlicensed money transmitting business.
According to documents filed in this case and statements made in court:
From December 2019 through April 2022, Shah engaged in a scheme to evade duties for shipments of jewelry from Turkey and India to the United States. Shah would ship and/or instruct his conspirators to ship goods from Turkey or India – which would have been subject to an approximately 5.5 percent duty if shipped directly to the United States – to one of Shah’s companies in South Korea. Shah’s conspirators in South Korea would change the labels on the jewelry to state that they were from South Korea instead of Turkey or India, and then ship them to Shah or his customers in the United States, thereby unlawfully evading the duty. Shah would also make and instruct his customers to make fake invoices and packing lists to make it look like Shah’s South Korean companies were actually ordering jewelry from Turkey or India. Shah also instructed a third-party shipping company to provide false information to U.S. Customs and Border Protection (CBP) concerning the origin of the jewelry. During the scheme, Shah shipped approximately $13.5 million of jewelry from South Korea to the United States without paying the appropriate duty.
From July 2020 through November 2021, Shah owned and/or operated numerous jewelry companies in New York City’s Diamond District, including MKore LLC, MKore USA Inc., and Vruman Corp. Shah used these entities to conduct more than $10.3 million in illegal financial transactions for customers, including converting cash to checks or wire transfers. Shah would also collect cash from customers and use other individuals’ jewelry companies to convert the cash into wires or checks. At times, Shah and other members of the money transmitting business moved hundreds of thousands of dollars in a single day. In exchange for their services, Shah or other members of the money transmitting business charged a fee. None of Shah’s or his associates’ companies were registered as money transmitting businesses with New York, New Jersey, or the Financial Crimes Enforcement Network (FinCEN).
As part of his plea agreement, Shah agreed to pay restitution to CBP in the amount of $742,500 for the wire fraud scheme and forfeiture in the amount of $11.13 million for the wire fraud and unlicensed money transmitting schemes.
The wire fraud conspiracy charge is punishable by a maximum of 20 years in prison. The charge of operating and aiding and abetting the operation of an illegal money transmitting business carries a maximum penalty of five years in prison. Each count is also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Jan. 23, 2025.
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; special agents of Homeland Security Investigations New York, under the direction of Acting Special Agent in Charge Darren B. McCormack; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; and special agents with U.S. Customs and Border Protection at the Port of New York/Newark, under the direction of Port Director TenaVel Thomas, with the investigation leading to today’s guilty plea. He also thanked U.S. Customs and Border Protection in New York; Homeland Security Investigations in Seoul, South Korea; the Korea Customs Service in South Korea; the Seoul Customs Special Investigation Office in South Korea; the U.S. Drug Enforcement Administration in Paterson; the Parsippany-Troy Hills Police Department; the Morristown Police Department; the Federal Deposit Insurance Corporation – Office of Inspector General; and the Justice Department’s Money Laundering and Asset Recovery Section (MLARS).
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 Olta Bejleri of the Economic Crimes Unit in Newark.
shah.information.pdfSupervisor and Employee of City of Trenton Bureau of Environmental Health Charged with Receiving Illegal Overtime PaymentsRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man and a Mercer County, New Jersey, man made their initial court appearances today on charges of participating in a conspiracy to obtain overtime payments from the city of Trenton for work they did not perform, by fraudulently inflating the overtime hours they claimed to have worked conducting residential lead inspections and meal deliveries to needy Trenton residents, U.S. Attorney Philip R. Sellinger announced.
Martin Moore, 59, of Florence, New Jersey, and Andre Trott, 51, of Ewing, New Jersey, are each charged by complaint with conspiracy to embezzle, steal, and obtain by fraud more than $5,000 in funds belonging to and under the care, custody and control of the city of Trenton. Moore is also charged with making false statements to investigators. They appeared before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and were each released on $50,000 unsecured bond.
According to the documents filed in this case and statements made in court:
Trenton’s Department of Health and Human Services (Trenton HHS) is required to provide services to identify lead sources in residential homes in Trenton where children had tested positive for elevated levels of lead in their blood. Beginning in 2018, a New Jersey state grant funded inspections of Trenton properties identified with childhood residents with elevated blood lead levels. Trenton’s Bureau of Environmental Health (BEH), a subdivision of Trenton HHS, was responsible for performing these residential lead inspections.
Trenton received federal funding from the U.S. Department of Housing and Urban Development under a Community Development Block Grant (CDBG) to provide public services, including a meal program to prepare and deliver meals throughout Trenton to the city’s most vulnerable and needy populations. Members of BEH delivered meals under the CDBG from 2020 to 2021.
Moore, a principal registered environmental health specialist for BEH and the entity’s supervisor, and Trott, a senior registered environmental health specialist for BEH, conducted residential lead inspections with other members of BEH from February 2018 through May 2022, and delivered meals with other members of BEH from April 2020 through May 2021. Moore directed members of BEH, including conspirators Trott, Michael Ingram, William Kreiss, and Meraj Fatima, to obtain payments from the city of Trenton for work they did not perform, by fraudulently inflating the overtime hours they claimed to have worked relating to residential lead inspections. Moore also directed Trott, Ingram and Kreiss to inflate their overtime hours submitted for meal deliveries. Moore, himself, also falsely reported overtime exceeding the time it actually took him to complete activities related to lead inspections and meal deliveries. As a result of these fraudulent overtime reports, Moore, Trott, and other members of BEH were paid for overtime work that they did not perform.
In May 2022, when the FBI asked Moore about his role in connection with lead inspections, Moore falsely stated that there was no situation where he had purposedly misrepresented his hours and no situation where he had claimed overtime hours for periods of time that he was outside of New Jersey, even though Moore knew at the time he made these statements that they were knowingly and intentionally false.
Moore faces a maximum penalty of 10 years in prison and maximum fine of $500,000. Trott faces a maximum penalty of five years in prison and a $250,000 fine.
Ingram and Kreiss pleaded guilty on Nov. 28, 2023, and Fatima pleaded guilty on Feb. 26, 2024, to separate informations charging each with one count of conspiracy to embezzle, steal, and obtain by fraud more than $5,000 in funds belonging to and under the care, custody and control of the City of Trenton. They are awaiting sentencing.
U.S. Attorney Sellinger credited agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. Environmental Protection Agency Office of Inspector General, under the direction of Acting Assistant Inspector General Nicolas L. Evans; and the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Vicky Vazquez, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Branch Office.
The charges and allegations contained in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
mooretrott.complaint.pdfMarketer of Durable Medical Equipment Admits Multimillion-Dollar Health Care Fraud SchemeRead the Press Release
TRENTON, N.J. – A Miami Beach, Florida, man admitted his role in a durable medical equipment health care fraud scheme, U.S. Attorney Philip R. Sellinger announced today.
Christopher Vehovec, 31, of Miami Beach, Florida, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court on Aug. 28, 2024, to an information charging him with one count of conspiracy to commit health care fraud.
According to documents filed in the case and statements made in court:
Vehovec and his conspirators solicited and received kickbacks and bribes in exchange for providing durable medical equipment (DME) companies with completed doctors’ orders for medically unnecessary DME, such as orthotic braces. Vehovec and his conspirators utilized the service of telemedicine companies to obtain these prescriptions for DME, and the DME orders were subsequently fraudulently billed to Medicare and other health care benefit programs.
Vehovec and his conspirators caused losses to Medicare and other health care benefit programs of at least $4.2 million.
The charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest. Sentencing is scheduled for Feb. 27, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz 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.
vehovec.information.pdfDefense Contractor Agrees to Pay $600,000 to Settle False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip Sellinger announced today that a defense contractor based out of Killeen, Texas, will pay $600,000 to resolve allegations that it improperly billed for services that it did not perform.
The settlement resolves allegations that Solution One Industries Inc. made false claims in conjunction with a contract awarded to Solution One by the U.S. Air Force. Solution One contracted to support the 421st Combat Training Squadron based out of Joint Base McGuire-Dix-Lakehurst in New Jersey by performing different tasks under specific contract line items, on an as-needed basis. The settlement resolves allegations that from December 2017 through June 2019, Solution One billed for tasks that it did not perform, including providing backup power and providing briefings to military personnel.
U.S. Attorney Sellinger credited the U.S. Department of the Air Force Office of Special Investigations, under the direction of Brig. Gen. Amy S. Bumgarner, with the investigation of the allegations.
The United States is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Healthcare Fraud Unit in Newark.
solutionone.settlement.pdfPeruvian Citizen Extradited to United States on Narcotics Importation Conspiracy and Attempt ChargesRead the Press Release
NEWARK, N.J. – A citizen of Peru who was extradited to the United States on narcotics importation conspiracy and attempt charges had his initial appearance today in Newark federal court, U.S. Attorney Philip R. Sellinger announced today.
Roque Rafael Martinez Cubas, aka “Ever Arteaga,” 51, is charged by indictment with one count of conspiracy to distribute five kilograms or more of cocaine for unlawful importation and with one count of attempt to distribute five kilograms or more of cocaine for unlawful importation into the United States.
According to documents filed in this case and statements made in court:
Cubas was part of an international drug trafficking organization that manufactures and transports large quantities of cocaine from Peru to various countries, including the United States. From May 2022 through April 2023, Cubas and others conspired and attempted to import 662 kilograms of cocaine into the United States. Cubas was arrested in Peru in December 2023, and extradited at the request of the United States. He had his initial appearance today, before U.S. Magistrate Judge André M. Espinsoa in Newark federal court, pleaded not guilty, and was detained.
The narcotics charges each carry a maximum potential penalty of life imprisonment and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents and task force officers of the FBI, under the direction of Special Agent in Charge James E. Dennehy; the U.S. Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Cheryl Ortiz; and the U.S. Drug Enforcement Administration in Lima, Peru, with the investigation leading to the charges. He also thanked the Peruvian National Police Special Investigations Unit; the Peruvian National Prosecutor General’s Office; the U.S. Department of State’s Diplomatic Security Service; Homeland Security Investigations Newark; U.S. Customs and Border Protection; Immigration and Customs Enforcement – Enforcement and Removal Operations Newark Field Office; the Mercer County Prosecutor’s Office; the Morris County Prosecutor’s Office; the Town of Dover Police Department; and the New Jersey National Guard Counterdrug Unit. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest of Cubas and his extradition to the United States. U.S. Attorney Sellinger thanked officials in Peru for their assistance.
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. Attorney Jenny Chung of the Opioid Abuse Prevention and Enforcement 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.
cubas.indictment.pdfFormer CEO of Mariner’s Bank and Accomplice Admit Roles in Obtaining Nominee Loans from Mariner’s BankRead the Press Release
NEWARK, N.J. – The former chief executive officer of Mariner’s Bank and an accomplice both admitted their roles in improperly obtaining a nominee loan from the bank, Attorney for the United States Vikas Khanna announced.
Fred Daibes, 67, of Edgewater, New Jersey, the former CEO and chairman of the board of directors at Mariner’s Bank, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count 7 of an indictment charging him with making false entries in connection with a Mariner’s Bank loan memorandum dated June 11, 2008, relating to a $1.8 million loan which falsely stated that a nominee was the borrower. In fact, the line of credit was for the benefit of Daibes. The memorandum falsely stated that the source of repayment would be the personal cash flow of the nominee when, in fact, Daibes would and did fund the payments on the line of credit.
Michael McManus, 67, of Madison, New Jersey, pleaded guilty to an information charging him with misprision of a felony, that is, the misapplication of the proceeds of the $1.8 million loan issued by Mariner’s Bank.
The false entries count to which Daibes pleaded guilty carries a statutory maximum term of imprisonment of 30 years and a maximum fine of $1,000,000. The misprision count to which McManus pleaded guilty carries a statutory maximum term of imprisonment of 3 years and a maximum fine of $250,000. Sentencing for both defendants is scheduled for Jan. 23, 2025.
Attorney for the United States Vikas Khanna credited investigators from the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the FDIC Office of Inspector General, under the direction of Special Agent in Charge Jeffrey D. Pittano, Mid-Atlantic Region; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Elaine K. Lou, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office’s Criminal Division in Newark, under the supervision of the Special Prosecutions Division.
mcmanus.information.pdf daibes.indictment.pdfEssex County Man Sentenced to 143 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 143 months in prison for possessing with intent to distribute over five kilograms of fentanyl and four kilograms of cocaine, and possessing six firearms as a convicted felon, U.S. Attorney Philip R. Sellinger announced.
Carlos Santiago, 50, of East Orange, pleaded guilty before U.S. District Judge Michael Farbiarz to possession with intent to distribute 400 grams or more of fentanyl, possession with intent to distribute 500 grams or more of cocaine, and possession of firearms by a convicted felon. Judge Farbiarz imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Oct. 24, 2022, federal agents encountered Santiago as he was moving controlled substances from a storage unit to his vehicle in Newark. Santiago was arrested after law enforcement located several kilograms of fentanyl and cocaine, as well as one firearm, in Santiago’s storage unit. Law enforcement searched Santiago’s residence in East Orange and located several additional kilograms of fentanyl and cocaine, and five other firearms. Santiago had previously been convicted, in New Jersey Superior Court, Essex County, of a drug offense and resisting arrest.
In addition to the prison term, Judge Farbiarz sentenced Santiago to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark, and special agents of the Bureau of Alcohol, Tobacco and Firearms, under the direction of Acting Special Agent in Charge Thomas Greco, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sam Thypin-Bermeo of the General Crimes Unit in Newark.
Essex County Man Sentenced to 131 Months in Prison for Armed RobberyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 131 months in prison for an armed robbery of a store in Essex County, U.S. Attorney Philip R. Sellinger announced.
Quayon Moore, 25, of Newark, previously pleaded guilty before U.S. District Judge Michael E. Farbiarz to an indictment charging him with Hobbs Act robbery and using and discharging a firearm in relation to crime of violence. Judge Farbiarz imposed the sentenced today in Newark federal court.
According to documents filed in this case and statements made in court:
On Dec. 8, 2021, Moore entered a store and pointed a gun at a store employee and demanded that the employee give Moore everything he had. Moore shot the firearm toward the employee’s direction, and the bullet hit the wall behind the employee. While continuing to point the firearm at the employee, Moore took money from the cash register, and an iPhone.
In addition to the prison term, Judge Farbiarz sentenced Moore to five years of supervised release, and ordered restitution of $1,000.
U.S. Attorney Sellinger credited FBI Newark’s Violent Crimes Task Force, under the direction of Special Agent in Charge James E. Dennehy; the Newark Police Department, under the direction of Public Safety Director Fritz Fragé; and the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Farhana C. Melo and Chelsea D. Coleman of the Criminal Division in Newark.
Three Individuals Indicted in Mortgage, COVID-19 Relief Program Fraud SchemesRead the Press Release
CAMDEN, N.J. – Three New Jersey residents were indicted for their role in a multimillion-dollar mortgage fraud scheme and two of the three were indicted for fraudulently obtaining approximately $3 million of federal Economic Injury Disaster Loans, U.S. Attorney Philip R. Sellinger announced today.
Arthur Spitzer, 37, of Toms River, New Jersey, is charged with eight counts of wire fraud, one count of bank fraud, one count of bank and wire fraud conspiracy, two counts of aggravated identity theft, one count of making a false statement to a financial institution, and 12 counts of money laundering. Mendel Deutsch, 38, of Toms River, is charged with three counts of wire fraud, one count of bank fraud, one count of bank and wire fraud conspiracy, one count of aggravated identity theft, one count of making a false statement to a financial institution, and two counts of money laundering. Joshua Feldberger, 42, of Howell, New Jersey, is charged with one count of wire fraud, one count of bank fraud, one count of bank and wire fraud conspiracy, one count of aggravated identity theft, and one count of making a false statement to a financial institution. The defendants were arraigned today before U.S. District Judge Edward S. Kiel in Camden federal court.
According to the indictment:
In 2019 and 2020, Spitzer orchestrated a scheme to defraud property owners and mortgage lenders by obtaining mortgage loans for real estate properties that he did not own. Spitzer identified properties in New Jersey and Brooklyn, New York, that had either no mortgages or mortgages in amounts significantly lower than the property’s market value. On six occasions, Spitzer obtained mortgage loans by misrepresenting that he had the authority to obtain mortgage loans secured by properties he did not own. Spitzer used fraudulent documents purporting to transfer control to him, which contained forged signatures of the true property owners. The mortgage loan proceeds were disbursed to bank accounts controlled by Spitzer or were used to otherwise benefit Spitzer, such as to pay off his debts. Spitzer then caused the mortgage loans to default by not making the required payments, leaving the true property owners subject to foreclosure and eviction.
In June 2020, Spitzer conspired with Deutsch and Feldberger to make it appear as if Spitzer owned three properties in Brooklyn, and agreed to sell them to Deutsch, who obtained a $4 million mortgage loan in connection with the transaction. Feldberger facilitated the fraudulent transaction as the owner of the settlement company that handled the transaction. The defendants created and sent letters stating that Deutsch had deposited significant funds into escrow toward the transaction, when in reality he had not; they created fake documentation purportedly transferring control of the properties to Spitzer; they failed to disclose a short-term loan obtained shortly before the transaction’s closing; and they lied to the mortgage lender by stating that the settlement company had received more than $2 million from Deutsch at closing, which led the mortgage lender to fund the loan. The defendants then used the mortgage loan proceeds to fund Deutsch’s down payment, which he had supposedly already provided.
In 2020 and 2021, Spitzer and Deutsch each fraudulently obtained millions of dollars of government loans that were intended for small businesses distressed by the COVID-19 pandemic. 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. The CARES Act authorized the U.S. Small Business Administration (SBA) to provide Economic Injury Disaster Loans (EIDLs) of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic. To obtain an EIDL loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and revenues or expenses.
Spitzer and Deutsch obtained EIDL loans for businesses that had little or no operations by submitting loan applications that included false statements about the applicant companies’ number of employees, revenues, cost of goods sold, or lost rents.
The counts of bank fraud conspiracy, bank fraud, and making a false statement to a financial institution, are each punishable by a maximum of 30 years in prison and a $1,000,000 fine. The counts of wire fraud conspiracy and wire fraud are each punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The counts of money laundering are each punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The counts of aggravated identity theft carry a mandatory two-year prison sentence.
U.S. Attorney Sellinger credited special agents of the FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents 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, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations contained in the charging instrument are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
spitzeretal.indictment.pdfSouth Carolina Man Sentenced to Six Years in Prison for Securities Fraud, Bank Fraud, and Wire Fraud SchemesRead the Press Release
TRENTON, N.J. – A South Carolina man was sentenced today to72 months in prison for engaging in several bank and wire fraud schemes and a securities offering fraud scheme that spanned six years and caused losses of millions of dollars, U.S. Attorney Philip Sellinger announced.
Sandy John Masselli, 63, of Columbia, South Carolina, previously pleaded guilty before U.S. District Judge Michael A. Shipp to nine counts of a superseding indictment charging him with bank fraud, wire fraud, and securities fraud. Masselli was initially charged by complaint in October 2017. Judge Shipp imposed the sentence today in Trenton federal court.
U.S. Attorney Philip R. Sellinger“Sandy Masselli used a web of lies to dupe victims into investing millions of dollars in his company, promising them substantial returns from an initial public offering that was never going to happen. Instead of investing the money as promised, Masselli fraudulently spent it on himself and his family. The significant sentence handed down today holds him accountable for greedily profiting at the expense of innocent investors.”
According to the documents filed in this case and statements made in court:
From September 2011 through October 2017, Masselli solicited millions of dollars in investments from retail investors by fraudulently touting the prospect of his online gaming company, Carlyle Entertainment Ltd., formerly Carlyle Gaming & Entertainment Ltd. (Carlyle), to conduct a lucrative initial public offering (IPO) of its stock on either the NASDAQ or the New York Stock Exchange (NYSE). Masselli induced investors to purchase shares of Carlyle stock by promising them steeply discounted prices in advance of the purported IPO, assuring them that the stock price would increase significantly after the IPO. Masselli further represented that the IPO would occur within weeks or months of the investors’ stock purchases.
However, as Masselli knew, Carlyle was neither poised nor prepared to conduct an IPO on either the NASDAQ or the NYSE, given that, among other deficiencies, neither Masselli nor anyone else on behalf of Carlyle ever filed an application with the NASDAQ or the NYSE to list Carlyle stock on either exchange, or filed with the Securities and Exchange Commission (SEC) a registration statement to list Carlyle shares on a national exchange. Masselli further misrepresented to the investors how he would use their investments, for example telling them that he would allocate investment funds toward improving Carlyle’s online platform and paying legal fees in connection with preparing Carlyle for a looming IPO. Masselli did not invest these funds in Carlyle, as he had promised investors he would, but instead misappropriated these funds to pay for his and his family’s own personal expenses.
Within weeks and often days of receiving investor funds, Masselli quickly deposited them into and throughout a web of bank accounts he controlled, many of which were opened under names of fictitious corporate entities in an effort to conceal the source of the funds. After disguising the provenance of the investor funds, Masselli typically went to work quickly misappropriating the funds.
Masselli also opened multiple credit card accounts, made purchases on those accounts until he had almost reached or exceeded the credit limit, and then purported to send payments from accounts that he knew did not have sufficient funds to cover those payments. Before the fraudulent payments were rejected for insufficient funds, the credit card companies temporarily credited the accounts based on those payments, providing Masselli access to additional credit and allowing him to continue to make purchases. Masselli ultimately failed to pay the balances and the credit card companies sustained a loss. On two occasions, Masselli contacted the victim credit card companies falsely claiming that the accounts had been opened fraudulently by others who had stolen his personal identifiable information.
In addition to the prison term, Judge Shipp sentenced Masselli to three years of supervised release and ordered restitution of $3.2 million and $1 million in forfeiture.
The SEC previously filed a civil complaint against Masselli based on the securities fraud conduct.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea. He also expressed appreciation for the SEC Division of Enforcement, under the direction of Gurbir S. Grewal.
The government is represented by Assistant U.S. Attorneys Eric A. Boden, Attorney-in-Charge of the Trenton Office, and Alexander E. Ramey of the U.S. Attorney’s Trenton Office.
San Antonio Woman Arrested for Fraudulently Selling $18 Million Worth of Counterfeit Retail Store CouponsRead the Press Release
NEWARK, N.J. – A San Antonio, Texas, woman was arrested and charged with fraudulently selling over $18 million worth of counterfeit coupons used at various retail stores across the United States for the purchase of household items, U.S. Attorney Philip R. Sellinger announced today.
Janet Bernal, aka “Rocky,” aka “Rocky G,” aka “Rocky Gee,” aka “RockyG-Kruella,” of San Antonio, Texas, is charged by complaint with three counts of wire fraud. She appeared on Aug. 27, 2024, in the Western District of Texas, before U.S. Magistrate Judge Richard Farrer in San Antonio federal court, and was released on $15,000 secured bond.
According to documents filed in this case and statements made in court:
From June 2020 through June 2024, Bernal orchestrated a scheme to produce and sell fraudulent, counterfeit coupons for use by purchasers at retail stores throughout the United States, including large pharmacies and grocery stores. Bernal offered counterfeit coupons through a monthly fee-based subscription group that was available on a commonly used Internet cloud-based messaging application.
Purchasers subscribed to the group, paid a monthly fee, and then had unlimited access to numerous types of counterfeit coupons that Bernal posted for download on the application. Members paid the monthly fee to mobile cash accounts associated directly with Bernal. Members downloaded tens of thousands of counterfeit coupons and redeemed them at retail stores throughout New Jersey and elsewhere. The loss to 156 retail stores and to the manufacturers whose products were covered by the counterfeit coupons was approximately $18 million.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic 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.
Former Employee of National Industrial Company Arrested for Attempted Data ExtortionRead the Press Release
NEWARK, N.J. – A Missouri man was arrested for an attempted data extortion campaign targeting his former employer, a U.S.-based industrial company with its headquarters located in Somerset County, New Jersey, U.S. Attorney Philip R. Sellinger announced today.
Daniel Rhyne, 57, of Kansas City, Missouri, is charged by complaint with one count of extortion in relation to a threat to cause damage to a protected computer, one count of intentional damage to a protected computer, and one count of wire fraud. He was arrested in Missouri on Aug. 27, 2024, had an initial appearance in Kansas City federal court and was released.
According to documents filed in this case and statements made in court:
Rhyne was employed by a U.S.-based industrial company in New Jersey as a core infrastructure engineer. On Nov. 25, 2023, certain employees of the company received an extortionate e-mail. The email warned the employees that all of the company’s IT administrators had been locked out or deleted from the company’s computer network; backups of the company’s servers had been deleted; and additional servers belonging to the company would be shut down each day for a period of 10 days if a ransom of 20 Bitcoin, equivalent at the time to $750,000, was not paid.
The investigation revealed that Rhyne gained unauthorized access to the company’s computer systems by remotely accessing the a company administrator account. Rhyne then, without authorization, scheduled several computer tasks to be carried out on the network, including changing the company administrator passwords and shutting down its servers. Rhyne controlled the email address used to send the November 25 extortion email to the company’s employees.
The charge of extortion in relation to a threat to cause damage to a protected computer carries a maximum penalty of five years in prison and a $250,000 fine. The charge of intentional damage to a protected computer carries a maximum penalty of 10 years in prison and a $250,000 fine. The wire fraud offense carries a maximum penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the arrest. He also thanked the FBI Kansas City, under the direction of Special Agent in Charge Stephen A. Cyrus.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Cybercrime 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.
rhyne.complaint.pdfCumberland County Man Admits Possession of Child PornographyRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man today admitted possessing images of child sexual abuse, U.S. Attorney Philip Sellinger announced.
Raymond Stickelman, 51, of Vineland, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court to an information with one count of possession of child pornography. He was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In November 2021, law enforcement agents executed a search warrant at Stickelman’s residence. Law enforcement located an electronic file storage device that contained over 500 files containing images of child sexual abuse. Stickelman admitted possessing that device and the child pornography files it contained.
The count of possession of child pornography carries a maximum penalty of 10 years in prison, and a fine of $250,000. Sentencing is scheduled for Jan. 7, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Lindsey Harteis and Elisa Wiygul of the Camden office.
stickelman.information.pdfTwo Correctional Officers Indicted for Civil Rights Violation and Conspiracy to Obstruct Justice in Connection with Assault o Pretrial DetaineeRead the Press Release
NEWARK, N.J. – Two Passaic County correctional officers were indicted today by a federal grand jury for their role in violating a pretrial detainee’s civil rights and conspiracy to obstruct justice, U.S. Attorney Philip R. Sellinger announced.
Sergeants Jose Gonzalez, 45, and Donald Vinales, 38, are each charged in a two-count indictment with one count of deprivation of rights under color of law and one count of conspiracy to obstruct justice. Gonzalez and Vinales were previously charged by complaint. They will be arraigned on a date to be determined.
According to the indictment:
On Jan. 22, 2021, a pretrial detainee at the Passaic County Jail (PCJ) squirted a mixture containing urine onto a correctional officer. The following day, Gonzalez, Vinales and other correctional officers transported the detainee through an area of the PCJ that does not have a video surveillance camera, which correctional officers and inmates at the PCJ have referred to as a “blind spot.” While in that blind spot, Gonzalez and Vinales assaulted the detainee, while he was handcuffed, when they knocked him to the ground and struck him multiple times. One day after the assault, the detainee was taken to a local hospital, which documented injuries from the assault.
The defendants were required to submit documentation regarding their use of force. None of them submitted any such reports.
In April 2022, after receiving federal grand jury subpoenas in connection with this investigation, Gonzalez, Vinales, and Correctional Officer Lorenzo Bowden, among others, met to discuss the federal investigation. The group agreed not to cooperate with the federal investigation and also agreed to say that nothing had happened to the detainee (referring to the assault). During an interview with federal investigators in October 2022, Bowden falsely stated that the detainee had not been assaulted and that there had not been any meeting or communication among those who participated in or witnessed the assault.
Bowden pleaded guilty on April 18, 2024, before U.S. District Judge Michael E. Farbiarz to an information charging him with conspiracy to obstruct justice and is awaiting sentencing.
The charge of deprivation of rights under color of law carries a maximum penalty of 10 years in prison and the charge of conspiracy to obstruct justice carries a maximum penalty of 20 years in prison. Both charges carry a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and the Passaic County Sheriff’s Office Division of Internal Affairs, under the direction of Acting Director Gary F. Giardina, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Benjamin Levin, Co-Chief of the General Crimes Unit, and R. Joseph Gribko, Deputy Chief of the U.S. Attorney’s Office’s Civil Rights Division.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
gonzalezvinales.indictment.pdfMercer County Couple Admit Conspiring to Submit Fraudulent Asylum ApplicationsRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, couple today admitted their roles in a conspiracy to prepare and submit fraudulent asylum applications, U.S. Attorney Philip R. Sellinger announced.
Zuwairul Ameer, aka “Zuwairul Thowfeek,” 61, and Claudette Ameer, aka “Claudette Pieries,” 63, both of Lawrence Township, New Jersey, pleaded guilty before U.S. District Judge Michael Shipp in Trenton federal court to count one of an indictment charging them with one count of conspiracy to commit immigration fraud.
According to documents filed in this case and statements made in court:
Applicants for asylum in the United States must show that they have suffered persecution in their country of origin on account of race, religion, nationality, political opinion, or membership in a particular social group, or have a well-founded fear of persecution if they were to return to that country. The process requires an application that is reviewed by an asylum officer with the U.S. Citizenship and Immigration Services (USCIS), who makes an initial determination whether to grant asylum. If the application has been prepared by someone other than the applicant, the preparer must disclose his or her name and address and must sign the application.
Since at least 2007, Zuwairul Ameer has been in the business of preparing fraudulent asylum application on behalf of his non-citizen clients. Claudette Ameer has managed that business, acting as the primary point of contact for clients, arranging meetings, and mailing completed applications to USCIS. With Claudette Ameer’s assistance, Zuwairul Ameer met with clients, listened to their stories of mistreatment in their countries of origin, and drafted applications on their behalf that were fraudulent because they: exaggerated the stories of mistreatment; falsely omitted Zuwairul Ameer’s name as the preparer; or both.
The conspiracy charge to which the Ameers have 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 Feb. 25, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, New York Field Office, under the direction of under the direction of Assistant Director in Charge James Smith, and immigration officers with of the USCIS Fraud Detection and National Security Directorate at the New York Asylum Office, under the direction of Director Mathew Varghese, with the investigation.
The government is represented by Assistant U.S. Attorney Aaron L. Webman of the Economic Crimes Unit in Newark.
ameer.indictment.pdfBergen County Man Charged in COVID-19 Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was indicted on charges that he fraudulently obtained hundreds of thousands of dollars of Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds, U.S. Attorney Philip R. Sellinger announced today.
Malak Faltawws, aka “Mark Andrews,” 47, of Rutherford, New Jersey, is charged with three counts of wire fraud and two counts of money laundering. He made his initial appearance today before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
From March 2020 through November 2021, Faltawws fraudulently obtained hundreds of thousands of dollars in COVID-19 emergency relief funds, which included loans and cash advances meant for distressed small businesses under the EIDL program and PPP, by submitting false and fraudulent applications, inflating his businesses’ revenue, payroll expenses, and number of employees. After receiving the fraudulent funds, he diverted the proceeds for his personal gain.
Each wire fraud charge carries a maximum penalty of 20 years in prison, and each money laundering charge carries a maximum penalty of 10 years in prison. Each charge also carries a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.
U.S. Attorney Sellinger credited special agents of IRS - Criminal Investigations, under the direction of Special Agent in Charge Jenifer L. Piovesan, and investigators of Port Authority of New York and New Jersey, Office of the Inspector General, under the direction of Inspector General John Gay, with the investigation.
The government is represented by Assistant U.S. Attorney Aja Espinosa of the Economic Crimes Unit 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 Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
faltawws.indictment.pdfU.S. Army Financial Counselor Sentenced to 151 Months in Prison for Defrauding Gold Star FamiliesRead the Press Release
Video statement by U.S. Attorney Sellinger
TRENTON, N.J. – A former Monmouth County, New Jersey, financial counselor with the United States Army who is a major in the U.S. Army Reserve was sentenced today to 151 months in prison for admitted defrauding Gold Star families and related crimes, U.S. Attorney Philip R. Sellinger announced.
Caz Craffy, aka “Carz Craffey,” 42, of Colts Neck, New Jersey, pleaded guilty on April 16, 2024, before U.S. District Judge Georgette Castner to the indictment filed against him, which charged six counts of wire fraud and one count each of securities fraud, making false statements in a loan application, committing acts affecting a personal financial interest, and making false statements to a federal agency. Judge Castner imposed the sentence today in Trenton federal court.
U.S.. Attorney Philip R. Sellinger“Caz Craffy was sentenced to prison today for brazenly taking advantage of his role as an Army financial counselor to prey upon families of our fallen service members, at their most vulnerable moment, when they were dealing with a tragedy born out of their loved one’s patriotism. These Gold Star families have laid the dearest sacrifice on the altar of freedom. And they deserve our utmost respect and compassion, as well as some small measure of financial security from a grateful nation. No amount of money can undo their enormous loss. Instead of offering guidance, Caz Craffy chose to defraud these heroic families. The lengthy term of imprisonment imposed today is just punishment for this heinous and shameless crime.”
“Those who prey on the family members of fallen soldiers, will be sought out and held accountable,” Special Agent in Charge Joel Kirch, Department of the Army Criminal Investigation Division, Northeast Field Office, said. “The hard work, long hours, and dedication of our partners within the Task Force, from the United States Attorney’s Office, Defense Criminal Investigative Service, FBI, Homeland Security Investigations, and our own investigative analyst, resulted in this investigation’s swift resolution.”
“Families of service members who have sacrificed their lives for our country should receive care, respect, and dignity from those assigned to help them secure survivor benefits,” Principal Deputy Director James R. Ives of the Defense Criminal Investigative Service (DCIS), the criminal investigative arm of the DoD Office of Inspector General, said. “This outcome underscores DCIS and our law enforcement allies’ unwavering dedication to ensuring that those who exploit their official roles to prey on mourning military families are held accountable.”
“Craffy made a conscious decision to defraud Gold Star families suffering from losing their loved one who paid the ultimate sacrifice serving this country,” FBI – Newark Special Agent in Charge James E. Dennehy said. “The money these survivors are given does nothing to ease their suffering. It does, however, help with the burdens they face, such as paying off a mortgage or putting their children through college. They believed Craffy was acting in their best interest, but instead, he was using their money as a method to make his own. Heartless and despicable don’t even begin to sum up his crimes.”
“The sentencing of Craffy represents the culmination of a thorough, long-term investigation that enabled us to obtain justice for the military families robbed in this case,” Homeland Security Investigations Newark acting Special Agent in Charge William S. Walker said. “Craffy dishonored the Gold Star families he swore to serve and disgraced his position as an advisor to these families by seeking his own gain in illicit financial transactions. I am proud of our multiagency team of detectives, agents and prosecutors who prevailed in holding this fraudster accountable.”
According to documents filed in this case and statements made in court:
When a member of the Armed Services dies during active duty, his or her surviving beneficiary, now a member of a Gold Star family, is entitled to a $100,000 payment and the servicemember’s life insurance of up to $400,000. These payments are disbursed to the beneficiary in a matter of weeks or months following the servicemember’s death. To assist the beneficiaries in this time of need, the military provides a number of services to the servicemember’s family, including the assistance of a financial counselor.
From November 2017 to January 2023, Craffy was a civilian employee of the U.S. Army, working as a financial counselor with the Casualty Assistance Office. He is also a major in the U.S. Army Reserve, where he has been enlisted since 2003. Craffy was responsible for providing general financial education to the surviving beneficiaries. He was prohibited from offering any personal opinions regarding the surviving beneficiary’s benefits decisions. Craffy acknowledged that he was not permitted to participate personally in any government matter in which he had an outside financial interest. However, without telling the Army, Craffy simultaneously maintained outside employment with two separate financial investment firms.
Craffy used his position as an Army financial counselor to identify and target Gold Star families and other military families. He admitted to encouraging the Gold Star families to invest their survivor benefits in investment accounts that he managed in his outside, private employment. Based upon Craffy’s false representations and omissions, the vast majority of the Gold Star families mistakenly believed that Craffy’s management of their money was done on behalf of and with the Army’s authorization.
From May 2018 to November 2022, Craffy obtained more than $9.9 million from Gold Star families to invest in accounts managed by Craffy in his private capacity. Once in control of this money, Craffy repeatedly executed trades, often without the family’s authorization. These unauthorized trades earned Craffy high commissions. During the timeframe of the scheme, the Gold Star family accounts lost more than $3.7 million, while Craffy personally earned more than $1.4 million in commissions, drawn from the family accounts.
In addition to the prison term, Judge Castner sentenced Craffy to three years of supervised release and ordered forfeiture of $1.4 million. Restitution will be determined at a later date.
The U.S. Securities and Exchange Commission (SEC) has a pending civil complaint against Craffy based on the same and additional conduct. Craffy has been permanently prohibited from association with any member of the Financial Industry Regulatory Authority Inc. (FINRA).
U.S. Attorney Sellinger credited special agents of the Department of the Army Criminal Investigation Division, under the direction of Special Agent in Charge Kirch; special agents of DCIS, under the direction of Principal Deputy Director Ives; special agents of the FBI, under the direction of Special Agent in Charge Dennehy; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Walker, with the investigation leading to the indictment. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Gurbir S. Grewal, Director, Division of Enforcement, and FINRA, under the direction of Head of Enforcement Bill St. Louis.
The government is represented by Assistant U.S. Attorneys Carolyn Silane of the Economic Crimes Unit in Newark and Martha K. Nye of the Criminal Division in Trenton.