District of New Jersey
Press releases recorded for this federal judicial district.
Burlington County Man Admits Possessing Destructive DevicesRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man today admitted possessing five destructive devices, U.S. Attorney Philip R. Sellinger announced.
Jeremy Giliberti, 52, of Mount Laurel, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to an information charging him with possessing destructive devices.
According to documents filed in this case and statements made in court:
On July 26, 2023, Hamilton Township Police Division officers conducted a motor vehicle stop of Giliberti. During a subsequent search of Giliberti’s vehicle, one of the officers found a duffle bag on the front passenger-side floor which contained four pipe bombs. Two of the devices were encased in 5-inch steel pipes and two of the devices were encased in cardboard tubing wrapped in duct tape. Following a search of Giliberti’s residence, law enforcement recovered a fifth destructive device. All five of the devices contained numerous metal pellets, an explosive mixture, and a pyrotechnic fuse.
The charge of possession of a destructive device is punishable by a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Dec. 3, 2024.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti; members of the Hamilton Township Police Division, under the direction of Chief Kenneth R. DeBoskey; members of the New Jersey State Police Bomb Unit, under the direction of Col. Patrick J. Callahan; and members of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office in Trenton.
giliberti.information.pdfNew York Man Convicted of Traveling to have Sex with Minor, Production of Child Pornography, and Other ChargesRead the Press Release
CAMDEN, N.J. – A New York man was found guilty today on charges stemming from his travel to have sex with a 13-year old New Jersey resident and his production and possession of child pornography, U.S. Attorney Philip R. Sellinger announced.
Zachary Williams, 37, of New York, was convicted of two counts of interstate travel to engage in illicit sexual conduct with a minor, production of and possession of child pornography, and coercion and enticement of a minor, following a 13-day trial before U.S. District Judge Christine P. O’Hearn in Camden federal court.
According to documents filed in this case and the evidence at trial:
In September 2020, Williams met the minor via Snapchat. He lied about his age, telling the victim that he was 17 years old, when he was in fact 33 years old. Williams asked the victim for nude photographs of the victim, after receiving them, began to “sextort” the minor by threatening to send the nude photographs to the minor’s friends and family. He ultimately convinced the minor to meet him at a hotel in Atlantic County, New Jersey, and agreed to allow the victim to delete the nude photographs from his phone. On Oct. 2, 2020, Williams traveled to a hotel in Atlantic County and, two days later, engaged in sexual intercourse with the minor in his hotel room. Afterward, despite his earlier promises, Williams continued to send messages to the minor threatening to expose the minor’s nude photographs.
Law enforcement officers arrested Williams in March 2021 in a sting operation through which they lured him to the same Atlantic County hotel by posing as the minor victim. Williams’ phone contained numerous images of child pornography, which have led to the identification of additional child victims in both the Eastern District of New York and the District of Connecticut, where additional charges remain pending against Williams.
Williams faces a maximum of 30 years in prison on each of the two counts of interstate travel to engage in illicit sexual conduct with a minor, a mandatory minimum of 15 years and a maximum of 30 years on the production of child pornography, a maximum of 20 years on the possession of child pornography, and a maximum of 10 years on the coercion and enticement of a minor. In addition, Williams faces a $250,000 fine, mandatory restitution to the victims, and lifetime supervised release. Sentencing is scheduled for Dec. 4, 2024.
U.S. Attorney Sellinger credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; and officers from the Galloway Township Police Department, under the direction of Chief Richard D. Barber, and also recognizes the efforts of the Atlantic City Police Department under the direction of Chief James Sarkos and the Atlantic County Prosecutor’s Office under the direction of Prosecutor William Reynolds, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Patrick C. Askin of the Criminal Division, Camden.
New York Man Admits Role in KidnappingRead the Press Release
NEWARK, N.J. – A Queens, New York, man today admitted his role in a Paterson, New Jersey, kidnapping, U.S. Attorney Philip R. Sellinger announced today.
Reginald Law, 38, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an indictment charging him with kidnapping and Hobbs Act robbery.
According to documents filed in this case and statements made in court:
On Oct. 8, 2020, Law and his conspirator, Maurice Cottman, entered a retail store in Paterson, where they accosted the victim, who was working in the store. Law and Cottman dragged the victim from the store, threw him into the back of a U-Haul truck, and drove him from Paterson to New York. The victim suffered serious bodily injury from the kidnapping. Law admitted that during the kidnapping, he and Cottman called the victim’s family, told them that he had the victim, and demanded ransom for his return.
That afternoon, law enforcement officers saw the U-Haul parked in Harlem, New York. When the officers approached, Law and Cottman fled in the U-Haul and a motor-vehicle pursuit ensued. Law and Cottman crashed the U-Haul and tried to flee on foot. Officers apprehended Cottman, but Law got away. Officers retrieved the victim from the back of the U-Haul. Law was a fugitive until his arrest on May 26, 2021.
The kidnapping charged in Count One is punishable by a maximum penalty of life in prison. The Hobbs Act robbery charged in Count Two is punishable by a maximum penalty of 20 years in prison. Both are also punishable by a fine of $250,000, or twice the gross loss or gain, whichever is greatest. Sentencing is scheduled for Jan. 7, 2025.
Cottman previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an Information charging him with one count of kidnapping. On March 29, 2022, Judge Chesler sentenced Cottman to 15 years in prison with five years of supervised release.
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 guilty plea. He also thanked the FBI New York Field Office and the Paterson Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit.
law.indictment.pdfWoman Admits Multimillion-Dollar COVID-19 Relief Program Fraud SchemeRead the Press Release
CAMDEN, N.J. – A North Carolina woman admitted conspiring to submit fraudulent applications leading to the issuance of 29 Paycheck Protection Program (PPP) loans totaling more than $3.5 million, U.S. Attorney Philip R. Sellinger announced today.
Lisa Smith, 61, of Cornelius, North Carolina, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court on July 17, 2024, to an information charging her with one count of bank fraud conspiracy.
According to documents filed in these cases and statements made in court:
In early 2021, Smith submitted PPP loan applications for two companies that she controlled. The applications included fake bank statements and fake IRS tax forms, and significantly overstated the companies’ number of employees and payroll expenses. Smith obtained $125,000 in PPP loans based on these fraudulent applications. Smith and her conspirators recruited individuals who owned companies with little or no operations to apply for PPP loans. Smith helped the recruited individuals submit PPP loan applications that contained fake bank statements and fake IRS tax forms, and that contained materially false representations about the companies’ number of employees and payroll expenses. Based on these fraudulent PPP loan applications, more than 25 PPP loans totaling more than $3.5 million were approved and funded. Smith received a percentage of the loan proceeds as compensation for her role.
The count of conspiracy to commit bank fraud is punishable by a maximum of 30 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 21, 2024.
U.S. Attorney Sellinger credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, New York Region, under the direction of Special Agent in Charge Patricia Tarasca; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs in Philadelphia; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Bradley Parker; and special agents of the U.S. Department of Labor, Office of the Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman and Jason M. Richardson, Attorney in Charge of the U.S. Attorney’s Office’s Camden Office.
smith.information.pdfU.S. Attorney Philip R. Sellinger and HUD Inspector General Rae Oliver Davis Host Safe Housing SummitRead the Press Release
NEWARK, N.J. – U.S. Attorney for the District of New Jersey Philip R. Sellinger and U.S. Department of Housing and Urban Development Inspector General Rae Oliver Davis hosted a summit today focused on promoting the health, safety, and civil rights of tenants living in HUD-assisted housing. The program focused on combatting sexual misconduct and eliminating environmental hazards in HUD-assisted housing.
The summit, which took place at the U.S. Attorney’s Office in Newark, was part of the U.S. Department of Justice’s and Inspector General’s complementary initiatives to promote safe housing strategies related to environmental justice, and how to recognize and report sexual harassment and misconduct in housing.
“Everyone deserves to feel safe in their home, free from exposure to environmental hazards, and without being subjected to sexual harassment and assault by those with control over their housing. We convened this summit today to raise awareness that all New Jerseyans have protections under federal law and that the U.S. Attorney’s Office, together with our partners at HUD OIG, will continue to work every day to eradicate sexual harassment and environmental injustices in housing throughout the state.”
U.S. Attorney Philip R. Sellinger
“Through summits like the one we cohosted today with U.S. Attorney Sellinger, HUD OIG remains focused on raising awareness that HUD tenants and applicants seeking housing have a right to housing that is environmentally safe and and free from sexual misconduct,” Inspector General Oliver Davis said. “We remain committed to working closely with our partners at the U.S. Attorney’s Office to aggressively investigate violations of federal law in these areas and pursue bad actors who victimize vulnerable people receiving HUD assistance.”
Attendees included representatives from organizations who routinely work with vulnerable populations most likely to be impacted by environmental injustices, such as lead-based paint in their homes, or subjected to sexual harassment in housing by their landlords, property managers, or others with control over housing. The organizations represented included legal services offices, fair housing organizations, civil rights groups, shelters, and social service organizations.
If you or someone you know has information about environmental hazards and unsafe conditions in HUD-assisted housing or has been a victim of sexual harassment, sexual assault, or sexual exploitation – even if the events occurred years ago – report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline. You may also file a complaint with HUD’s Office of Fair Housing and Equal Opportunity at www.hud.gov/fairhousing/fileacomplaint.
Individuals who believe they have been victims of environmental injustices, sexual harassment in housing, or discrimination may also contact the U.S. Attorney’s Office at 1-855-281-3339 or visit the website at www.justice.gov/usao-nj/civil-rights-enforcement.
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Two Paterson Residents Admit Conspiring with Physician to Distribute OpioidsRead the Press Release
NEWARK, N.J. – Two Paterson, New Jersey, residents today admitted conspiring with a doctor to distribute opioids without a legitimate medical reason, U.S. Attorney Philip R. Sellinger announced.
Jasmine McGregor, 32, and Jhenelle Lewis, 35, both of Paterson, each pleaded guilty this week before U.S. District Judge Susan D. Wigenton in Newark federal court to one count of knowingly and intentionally conspiring and agreeing with others, including Dr. Lisa Ferraro, of Hillsdale, New Jersey, to distribute oxycodone, a Schedule II controlled substance, outside the usual course of professional practice and not for a legitimate medical purpose.
According to documents filed in this case and statements made in court:
McGregor and Lewis each participated in a conspiracy with Ferraro to prescribe oxycodone, an opioid pain medication, to individuals who were not actually Ferraro’s patients and whom Ferraro never physically examined or questioned about symptoms to determine whether there was a legitimate medical need for oxycodone. McGregor conspired with Ferraro from July 2022 to Oct. 3, 2023, and Lewis conspired with Ferraro from January 2019 to September 2023.
Over the course of the conspiracy with McGregor, Ferraro wrote prescriptions for approximately 630 20mg oxycodone pills and approximately 11,410 30mg oxycodone pills. Over the course of the conspiracy with Lewis, Ferraro wrote prescriptions for approximately 9,450 30mg oxycodone pills.
Ferraro has also been charged with the same offense. The charges and allegations with regard to Ferraro are merely accusations, and she is presumed innocent unless and until proven guilty.
The charge of conspiracy to distribute controlled substances to which McGregor and Lewis pleaded guilty carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing hearings are scheduled for McGregor on Nov. 20, 2024, and Lewis on Dec. 9, 2024.
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.
The government is represented by Assistant U.S. Attorneys Ray A. Mateo and Aaron L. Webman of the Opioid Abuse Prevention and Enforcement Unit in Newark.
mcgregor.information.pdf lewis.information.pdfTwo Foreign Nationals Plead Guilty to Participation in LockBit Ransomware GroupRead the Press Release
NEWARK, N.J. –Two foreign nationals pleaded guilty today in Newark federal court to participating in the LockBit ransomware group – at various times the most prolific ransomware variant in the world – and to deploying LockBit attacks against victims in the United States and worldwide.
According to court documents:
Ruslan Magomedovich Astamirov (АСТАМИРОВ, Руслан Магомедовичь), 21, a Russian national of Chechen Republic, Russia, and Mikhail Vasiliev, 34, a dual Canadian and Russian national of Bradford, Ontario, were members of LockBit. The LockBit ransomware variant first appeared in January 2020. Between that time and February 2024, LockBit grew into what was at times the most active and destructive ransomware group in the world. The LockBit group attacked more than 2,500 victims in at least 120 countries around the world, including 1,800 in the United States. Those victims ranged from individuals and small businesses to multinational corporations, and they included hospitals, schools, nonprofit organizations, critical infrastructure, and government and law-enforcement agencies. LockBit’s members extracted at least approximately $500 million in ransom payments from their victims and caused billions of dollars in broader losses, including costs like lost revenue and incident response and recovery.
LockBit’s “affiliate” members, including Vasiliev and Astamirov, would first identity and unlawfully access vulnerable computer systems. They would then deploy LockBit ransomware on victim computer systems and both steal and encrypt stored data. After a successful LockBit attack, LockBit’s affiliate members would then demand a ransom from their victims in exchange for decrypting the victims’ data and deleting stolen data. When victims did not pay the demanded ransoms, LockBit’s affiliates would then leave the victim’s data permanently encrypted and publish the stolen data, including highly sensitive information, on a publicly accessible Internet site under LockBit’s control.
U.S. Attorney Philip R. Sellinger“Astamirov and Vasiliev thought that they could deploy LockBit from the shadows, wreaking havoc and pocketing massive ransom payments from their victims, without consequence. They were wrong. We, in New Jersey, along with our domestic and international law enforcement partners will do everything in our power to hold LockBit’s members and other cybercriminals accountable, disrupt and dismantle their operations, and put a spotlight on them as wanted criminals – no matter where they hide.
“Today’s convictions reflect the latest returns on the Department’s investment in disrupting ransomware threats, prioritizing victims, and holding cybercriminals accountable,” said Deputy Attorney General Lisa Monaco. “In executing our all-tools cyber enforcement strategy, we’ve dealt significant blows to destructive ransomware groups like LockBit, as we did earlier this year, seizing control of LockBit infrastructure and distributing decryption keys to their victims. Today’s actions serve as a warning to ransomware actors who would attack Americans: we will find you and hold you accountable.”
“The defendants committed ransomware attacks against victims in the United States and around the world through LockBit, which was one of the most destructive ransomware groups in the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “But thanks to the work of the Computer Crime and Intellectual Property Section, along with its domestic and international partners, LockBit no longer claims that title. Today’s convictions represent another important milestone in the Criminal Division’s ongoing effort to disrupt and dismantle ransomware groups, protect victims, and bring cybercriminals to justice.”
“It's a common misconception that cyber hackers won't get caught by law enforcement because they're smarter and savvier than we are,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Two members of the LockBit affiliate pleading guilty to their crimes in U.S. federal court illustrate we can stop them and bring them to justice. These malicious actors believe they can operate with impunity – and don’t fear getting caught because they sit in a country where they feel safe and protected. FBI Newark and our law enforcement partners around the globe have the technology and intelligence to go after these criminals – regardless of where they hide.”
Between 2020 and 2023, Astamirov deployed LockBit against at least 12 victims, including businesses in Virginia, Japan, France, Scotland, and Kenya. Operating under the online aliases “BETTERPAY,” “offtitan,” and “Eastfarmer,” he derived at least $1.9 million in ransom payments from those victims. As part of his plea agreement, Astamirov agreed to forfeit, among other assets, $350,000 in seized cryptocurrency that he extorted from one of his LockBit victims. Astamirov was first charged and arrested in this matter in June 2023.
Between 2021 and 2023, Vasiliev, operating under the online aliases “Ghostrider,” “Free,” “Digitalocean90,” “Digitalocean99,” “Digitalwaters99,” and “Newwave110,” deployed LockBit against at least 12 victims, including businesses in New Jersey, Michigan, the United Kingdom, and Switzerland. He also deployed LockBit against an educational facility in England and a school in Switzerland. Through these attacks, Vasiliev caused at least $500,000 in damage and losses to his victims. Vasiliev was first charged in this matter and arrested in Canada by Canadian authorities in November 2022, and extradited to the United States in June.
Astamirov pleaded guilty to a two-count information charging him with conspiracy to commit computer fraud and abuse and conspiracy to commit wire fraud. He faces a maximum penalty of 25 years in prison. Vasiliev pleaded guilty to a four-count information charging him with conspiracy to commit computer fraud and abuse, intentional damage to a protected computer, transmission of a threat in relation to damaging a protected computer, and conspiracy to commit wire fraud. He faces a maximum penalty of 45 years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The LockBit Investigation
Today’s guilty pleas follow a recent a disruption of LockBit ransomware in February by the U.K. National Crime Agency’s (NCA) Cyber Division, which worked in cooperation with the Justice Department, FBI, and other international law enforcement partners. As previously announced by the Department, authorities disrupted LockBit by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and by seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threatening to publish stolen data. This disruption succeeded in greatly diminishing LockBit’s reputation and its ability to attack further victims, as alleged by documents filed in this case.
Today’s guilty pleas also follow charges brought in the District of New Jersey against other LockBit members, including its alleged creator, developer, and administrator, Dmitry Yuryevich Khoroshev. An indictment against Khoroshev unsealed in May alleges that Khoroshev began developing LockBit as early as September 2019, continued acting as the group’s administrator through 2024, a role in which Khoroshev recruited new affiliate members, spoke for the group publicly under the alias “LockBitSupp,” and developed and maintained the infrastructure used by affiliates to deploy LockBit attacks. Khoroshev also took 20 percent of each ransom paid by LockBit victims, allowing him to personally derive at least $100 million over that period. Khoroshev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, with information accepted through the FBI tip website at www.tips.fbi.gov.
Both defendants are scheduled to be sentenced on Jan. 8, 2025.
A total of six LockBit members, including Khoroshev, the alleged developer, and Astamirov and Vasiliev, both affiliates, have now been charged in the District of New Jersey. Other LockBit charges include:
- In February, in parallel with the disruption operation, an indictment was unsealed in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses nationwide in the manufacturing and other industries, as well as victims around the world in the semiconductor and other industries.
- In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Mikhail Matveev, also known as Wazawaka, m1x, Boriselcin, and Uhodiransomwar, with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s TOC Rewards Program, with information accepted through the FBI tip website at www.tips.fbi.gov/.
The U.S. Department of State’s TOC Rewards Program is offering rewards of:
- Up to $10 million for information leading to the arrest and/or conviction in any country of Khoroshev;
- Up to $10 million for information leading to the arrest and/or conviction of Matveev;
- Up to $10 million for information leading to the identification and location of any individuals who hold a key leadership position in LockBit; and
- Up to $5 million for information leading to the arrest and/or conviction in any country of any individual participating or attempting to participate in LockBit.
Information is accepted through the FBI tip website at www.tips.fbi.gov/.
Khoroshev, Matveev, Sungatov, and Kondratyev have also been designated for sanctions by the Department of the Treasury’s Office of Foreign Assets Control for their roles in launching cyberattacks.
Victim Assistance
LockBit victims are encouraged to contact the FBI and submit information at https://lockbitvictims.ic3.gov/. As announced by the Department in February, law enforcement, through its disruption efforts, has developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Submitting information at the ICE site will enable law enforcement to determine whether affected systems can be successfully decrypted.
LockBit victims are also encouraged to visit https://www.justice.gov/usao-nj/lockbit for case updates and information regarding their rights under U.S. law, including the right to submit victim impact statements and request restitution, in the litigation against Astamirov and Vasiliev.
The FBI Newark Field Office, under the supervision of Special Agent in Charge James E. Dennehy, is investigating the LockBit ransomware variant. The FBI Atlanta Field Office, under the supervision of Special Agent in Charge Keri Farley; U.S. Attorney’s Office for the Northern District of Georgia; Ontario Provincial Police in Ontario, Canada; and Crown Attorney’s Office in Toronto, Canada, provided significant assistance in the Vasiliev matter. The United Kingdom’s NCA; France’s Gendarmerie Nationale Cyberspace Command; Germany’s Landeskriminalamt Schleswig-Holstein and the Bundeskriminalamt; Switzerland’s Federal Office of Police, Public Prosecutor’s Office of the Canton of Zurich, and Zurich Cantonal Police; Japan’s National Policy Agency; Australian Federal Police; Sweden’s Polismyndighetens; Royal Canadian Mounted Police; Politie Dienst Regionale Recherche Oost-Brabant of the Netherlands; Finland’s Poliisi; Europol; and Eurojust have provided significant assistance and coordination in both matters and in the LockBit investigation generally.
Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey and Trial Attorneys Jessica C. Peck, Debra Ireland, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and are prosecuting the charges against Astamirov and Vasiliev.
The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust, Office of International Affairs, and National Security Division also provided significant assistance.
Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A.
vasiliev.information.pdf
astamirov.information.pdfGuatemalan Man Indicted for Traveling to New Jersey to Kidnap MinorRead the Press Release
CAMDEN, N.J. – A Guatemalan man was indicted by a federal grand jury for traveling to Cape May County, New Jersey, to kidnap a minor, U.S. Attorney Philip R. Sellinger announced today.
Sergio Gomez, aka “Abner Abigail Chub-Choc,” 22, of Guatemala, made his initial appearance today before U.S. Magistrate Judge Matthew J. Skahill in Camden federal court and was detained. Gomez was indicted on July 17, 2024, on one count each of enticement of a minor to engage in sexual activity, transportation of a minor to engage in sexual activity, and kidnapping.
According to the indictment:
Gomez used the internet and cellphone to entice a minor to engage in sexual activity. On July 30, 2023, Gomez arrived in Cape May County, New Jersey, and took the minor to Georgia with the intent to engage in sexual activity with the minor. The FBI recovered the minor in Georgia on Aug. 3, 2023.
The count of enticement of a minor to engage in sexual activity carries a mandatory minimum sentence of 10 years and a maximum sentence of 20 years in prison; the count of transportation of a minor to engage in sexual activity carries a mandatory minimum sentence of 10 years and a maximum sentence of life in prison; and the count of kidnapping carries a maximum sentence of life in prison. All of the counts also carry a maximum fine of $250,000 per count.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, in Newark. He also thanked the Cape May County Prosecutor’s Office, Middle Township Police Department, FBI Atlanta office, and the Cherokee County, Georgia, Sheriff’s Office..
The government is represented by Special Assistant U.S. Attorney Katelyn R. Waegener of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
gomez_indictment.pdfGang Member Admits Racketeering ChargeRead the Press Release
NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang admitted his role in a racketeering conspiracy, U.S. Attorney Philip R. Sellinger announced today.
Nygee Johnson, aka “Gito,” 25, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court on July 17, 2024, to a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations conspiracy.
According to documents filed in this case and statements made in court:
From 2015 through Sept. 22, 2022, Johnson was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere. While a member of the enterprise, Johnson conspired with others, including members and associates of the enterprise, to commit bank fraud and distribute controlled substances.
The defendant faces a maximum sentence of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Dec. 3, 2024.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; IRS - Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Ross A. Marchetti, as well as investigators of the U.S. Marshals Service, under the direction of Marshal Juan Mattos; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Newark Police Department, under the direction of Public Safety Director Fritz Fragé; the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the East Orange Police Department, under the direction of Chief Phyllis L. Bindi; the Elizabeth Police Department, under the direction of Police Director Earl J. Graves; the Edison Police Department, under the direction of Chief of Police Tom Bryan; the New Jersey State Police, under the direction of Colonel Patrick J. Callahan; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; the Spotswood Police Department, under the direction of Chief Philip Corbisiero; and the North Carolina State Bureau of Investigation Fugitive and Missing Person Task Force, which includes members of the FBI, for the investigations leading to the charges in the Rollin 60’s Neighborhood Crips investigation.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multiagency 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 Francesca Liquori of the Special Prosecutions Division and Assistant U.S. Attorney Jake Nasar of the Organized Crime/Gangs Unit of the Criminal Division.
johnson.sindictment.pdfFormer Partner at Broker-Dealer Firm Indicted for Role in $3.4 Million Insider Trading SchemeRead the Press Release
NEWARK, NJ. – A former partner at a New Jersey broker-dealer firm was arraigned on charges of engaging in an insider trading scheme that netted millions of dollars in illegal trading profits, U.S. Attorney Philip R. Sellinger announced today.
Christopher Matthaei, 44, of Brielle, New Jersey, was arraigned before U.S. District Judge Georgette Castner in Trenton federal court on July 17, 2024. Matthaei was indicted by a federal grand jury on June 21, 2024, with two counts of securities fraud conspiracy (Counts One and Nine) and seven counts of securities fraud (Counts Two through Eight).
According to documents filed in this case and statements made in court:
Matthaei was a partner and senior salesperson at a Charlotte, North Carolina-based broker-dealer with offices in Red Bank, New Jersey. From May 2020 through February 2021, Matthaei illegally traded on material, non-public information (MNPI) that he received from Sean Wygovsky, a conspirator and friend who worked at a large Canadian asset management firm. The MNPI pertained to Special Purpose Acquisition Companies (SPACs) that were engaged in confidential merger negotiations and shared information with the asset management firm as a potential investor in the SPAC deals. Wygovsky received this MNPI every time a SPAC was placed on his firm’s confidential restricted list, meaning that the firm’s employees were prohibited from buying or selling the SPACs’ securities, either personally or via another person or third party. Despite knowing about these trading restrictions, Wygovsky shared the MNPI with Matthaei, who then purchased securities in the SPACs using his personal brokerage accounts. In June 2020, Matthaei paid for a private plane and extended trip with Wygovsky and their families to a luxury resort on the island of St. Barts, where they continued to engage in the insider trading scheme.
In total, Matthaei made approximately $3.4 million in illegal trading profits from the insider trading scheme.
Wygovsky pleaded guilty on May 25, 2023, before Judge Castner to an information charging him with securities fraud in connection with the insider trading scheme.
The securities fraud conspiracy charged in Count One carries a maximum potential penalty of five years in prison and a $250,000 fine; the securities fraud counts charged in Counts Two through Seven each carry a maximum potential penalty of 20 years in prison and a $5 million fine; the securities fraud count charged in Count Eight and the securities fraud conspiracy charged in Count Nine each carry a maximum potential penalty of 25 years in prison and a $250,000 fine.
The U.S. Securities and Exchange Commission previously filed a civil complaint against Matthaei based on the same 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 the indictment.
The government is represented by Assistant U.S. Attorneys Jennifer Kozar and Shontae D. Gray of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
matthaei.indictment.pdfFederal Air Marshal Admits Making False Statement to Federal Officer and Unauthorized Selling of I.D. Cards with Homeland Security InsigniaRead the Press Release
TRENTON, N.J. – A U.S. Air Marshal admitted selling “Law Enforcement Family Member” cards that were embossed with the insignia of the U.S. Department of Homeland Security (DHS) and making a false statement to a federal officer who was investigating an individual who possessed one of the cards, U.S. Attorney Philip R. Sellinger announced today.
Jonathan J. Ledesma, 38, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court on July 17, 2024, to a two-count information that charged him with making false statements and selling official insignia without authorization.
According to documents filed in this case and statements made in court:
From October 2021 through January 2023, Ledesma purchased cards that identified their bearers as being a “family member” of “Jonathan J. Ledesma,” a “Federal Officer.” These cards were each embossed with the apparent insignia of DHS as well as a QR code that was linked to Ledesma’s cellular phone. Though Ledesma was not authorized to sell the insignia of DHS, or any colorable imitation of the insignia, Ledesma then sold the cards to others.
In July 2022, Ledesma sold a card to a person who was arrested on Jan. 30, 2023, while in possession of the card. A federal officer scanned the QR code and spoke with Ledesma, who indicated that he had provided the card to person because he was a friend and business associate of the person’s father. This statement was false because, as Ledesma well knew, he had never met or done business with person’s father. On Jan. 18, 2023, Ledesma sold a second card to another individual.
Making a false statement is punishable by a maximum penalty of five years imprisonment and a maximum fine of $250,000. The unauthorized sale of official insignia is punishable by a maximum penalty of six months in prison and a maximum fine of $5,000. Sentencing is scheduled for Nov. 20, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the New York Field Office of the Department of Homeland Security – Office of Inspector General, under Acting Special Agent in Charge Luke Devlin; the Detroit Field Office of the Department of Homeland Security – Office of Inspector General, under the direction of Special Agent in Charge John Pias; and the Detroit Field Office of the Transportation Security Administration, under the direction of Special Agent in Charge Phil Spampinato, with the investigation leading to the charges. U.S. Attorney Sellinger also thanked the U.S. Attorney’s Office for the Eastern District of Kentucky for its assistance with this investigation.
The government is represented by Assistant U.S. Attorneys Francesca Liquori and Thomas S. Kearney of the Special Prosecutions Division.
ledesma.information.pdfEssex County Correctional Officer Admits Accepting Bribes to Smuggle Contraband into Prisoners at Essex County Correctional FacilityRead the Press Release
NEWARK, N.J. – A former Essex County correctional officer admitted accepting $14,000 in bribe payments to smuggle in contraband tobacco and a cell phone to inmates being detained at the Essex County Correctional Facility in Newark, U.S. Attorney Philip R. Sellinger announced today.
Efrin Wade, 36, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court on July 17, 2024, to an information charging him with one count of extortion under color of official right.
According to the documents filed in this case and statements made in court today:
In January 2023, Wade, who had served as a correctional officer at Essex County Correctional Facility (ECCF) from approximately February 2020 through March 2023, began communicating with an individual whom he believed was seeking to smuggle in contraband to inmates at ECCF for sale to other inmates. Unbeknownst to Wade, this individual was in reality an undercover FBI agent. Wade agreed to smuggle in tobacco and cell phones, both of which inmates at ECCF are forbidden to possess. On Feb. 1, 2023, Wade sent his associate, Yairisa Lizardo, to meet with the undercover agent in a parking lot in Bayonne, New Jersey. At the meeting, Lizardo accepted $10,000 in cash and a substantial quantity of tobacco for Wade to smuggle into ECCF. Over the subsequent weeks, Wade left this tobacco in concealed locations within ECCF believing it would be retrieved by inmates. However, law enforcement recovered these items after Wade relayed the concealed locations to the undercover agent.
On Feb. 8, 2023, Wade met the undercover agent in a parking lot in Jersey City where Wade took possession of a cell phone concealed within tobacco. After smuggling this contraband into ECCF, law enforcement recovered it in a concealed location where Wade had left it for inmates to retrieve. On Feb.15, 2023, Wade met with the undercover agent in the same parking lot in Jersey City where Wade accepted an additional $4,000 for his smuggling activities. Wade also explained his plans to smuggle in an additional 15 contraband cell phones, which were to be supplied to him by the undercover agent. Wade expected to be paid at least $30,000 for smuggling these cell phones into ECCF in late March. Wade expected that the cell phones would then be resold to inmates for approximately $5,000 per phone. In addition, when approached by agents during his shift at ECCF during the early morning hours of March 14, 2003, Wade was found to be in possession of multiple packs of contraband cigarettes as well as tobacco packs and cigars.
The extortion charge is punishable by a maximum potential penalty of 20 years in prison and a maximum $250,000 fine. Sentencing is scheduled for Nov. 19, 2024.
The charges and allegations contained in the criminal complaint in this matter, which was filed in March of 2023, remain pending as to codefendant Lizardo. Lizardo was charged along with Wade and the allegations in the criminal complaint are merely accusations as to her, and she is presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and investigators of the Internal Affairs Unit of the Essex County Department of Corrections, under the direction of Ronald Charles, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Office’s Special Prosecutions Division in Newark.
wade.information.pdfEssex County Convicted Felon Charged with Multiple Narcotics Distribution and Firearms OffensesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man has been charged in connection with distributing cocaine, possessing distribution quantities of fentanyl and heroin, trafficking multiple firearms, and possessing a firearm in furtherance of drug trafficking, U.S. Attorney Philip R. Sellinger announced today.
Kyrell Domnie, aka “Fly Ky,” 39, of Irvington, is charged by complaint with six counts of distributing, and possessing with intent to distribute, cocaine, one count of possessing with intent to distribute heroin and fentanyl, two counts of firearms trafficking, three counts of possessing a firearm and ammunition by a convicted felon, and one count of possessing a firearm in furtherance of a drug trafficking crime. He appeared before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court on July 17, 2024, and was detained.
According to documents filed in this case and statements made in court:
In December 2023, law enforcement began investigating Domnie for his involvement in distributing narcotics and firearms trafficking. Law enforcement conducted several controlled purchases of large quantities of cocaine from Domnie between January 2024 and April 2024, as well as controlled purchases of handguns on Jan. 30, 2024, and Feb. 19, 2024.
During searches of two apartments and a vehicle belonging to Domnie, law enforcement recovered distribution quantities of fentanyl, heroin, and cocaine along with materials used to package, store, and transport the narcotics for distribution. Law enforcement also recovered an additional handgun in a hidden compartment in Domnie’s vehicle along with narcotics.
Domnie faces a maximum penalty of 20 years in prison on the counts of distribution of, and possession with intent to distribute, controlled substances, and a fine of $1 million. On the counts of possession of a firearm and ammunition by a convicted felon and firearms trafficking, Domnie faces a maximum penalty of 15 years in prison. On the count of possession of a firearm in furtherance of a drug trafficking crime, Domnie faces a mandatory minimum prison sentence of five years, which must run consecutively to any other sentence Domnie receives, and a maximum potential penalty of life in prison. Each firearm count carries a maximum fine of $250,000.
U.S. Attorney Sellinger credited the special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti; detectives of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Newark Department of Public Safety, under the direction of Director Fritz G. Fragé; and the New Jersey Division of Criminal Justice, under the direction of New Jersey Attorney General Matthew J. Platkin, with the investigation leading to the charges.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The government is represented by Assistant U.S. Attorney Trevor A. Chenoweth 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.
domnie.complaint.pdfCamden County Man Admits PPP and Unemployment Fraud SchemesRead the Press Release
CAMDEN, N.J. – A Camden County man today admitted to schemes to submit fraudulent Payroll Protection Program (PPP) and unemployment insurance applications, U.S. Attorney Philip R. Sellinger announced.
Ralston Boswell, 34, of Collingswood, New Jersey, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging him with two counts of wire fraud.
According to documents filed in this case and statements made in court:
From March 2021 through April 2021, Boswell submitted three fraudulent PPP loan applications that falsely stated his employment and income. Based on the three fraudulent applications, Boswell received a total of $56,250 in PPP loan funds. From May 2020 through March 2021, Boswell submitted multiple fraudulent unemployment insurance applications, including applications to the New York Department of Labor, the Rhode Island Department of Labor, and the Michigan Department of Labor. The applications falsely stated the name and employment status of the application and Boswell received $152,961 in unemployment insurance.
The counts of wire fraud each carry a maximum penalty of 20 years in prison and a $250,00 fine. Sentencing is scheduled for Nov. 20, 2024.
U.S. Attorney Sellinger credited special agents of the Department of Labor, Office of the Inspector General, under the direction of Jonathan Mellone, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Joseph McFarlane of the Camden office.
boswell.information.pdfJersey City Man Sentenced to 94 Months in Prison for Unlawful Possession of Firearm and Ammunition Used to Commit ShootingRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 94 months in prison for illegally possessing a firearm and ammunition in connection with an incident in which he shot another individual in the middle of a crowded street in Jersey City, U.S. Attorney Philip R. Sellinger announced.
Christian Freire, 29, of Jersey City, previously pleaded guilty before U.S. District Judge William J. Martini to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon. Judge Martini imposed the sentence today in federal court in Newark.
According to documents filed in this case and statements made in court:
A little after midnight on Aug. 29, 2020, Freire was walking with a group of individuals toward Martin Luther King Drive in Jersey City when he observed two men approaching and – as caught on a surveillance camera from a nearby residence – fired multiple rounds at the men in the middle of the street. This sent a large group of bystanders running from the area.
When Jersey City Police Department officers arrived on the scene, Freire attempted to hide, but then fled as officers approached him. Officers observed Freire tossing a handgun towards a church lawn as he was fleeing. After apprehending Freire, a previously convicted felon, the officers ultimately recovered the black Taurus PT111 G2 9mm handgun with an obliterated serial number that Freire threw.
A victim of the shooting was transported to Jersey City Medical Center with a gunshot wound to the leg.
In addition to the prison term, Judge Martini sentenced Freire to three years of supervised release.
U.S. Attorney Sellinger credited the Jersey City Police Department, under the direction of Director James Shea, for the investigation. He also thanked the FBI, under the direction of Special Agent in Charge James E. Dennehy.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration’s New Jersey Division, the U.S. Marshals, the Department of Homeland Security – Homeland Security Investigations, the Jersey City Police Department, the Hudson County Prosecutor’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Joseph Stern of the General Crimes Unit in Newark.
Essex County Man Admits Defrauding Victims in Car Theft and Fraudulent Resale SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted defrauding victims by orchestrating a multistate car theft and fraud ring, U.S. Attorney Philip R. Sellinger announced.
Warren Guerrier, 47, of Newark, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an indictment charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
From November 2016 to June 2020, Guerrier and several conspirators acting at his direction orchestrated a scheme to steal and then fraudulently sell vehicles to unsuspecting buyers. Guerrier and his conspirators identified vehicles to steal, then photographed, tracked, and advertised them for sale on the internet. The buyer victims were provided with electronically programmed keys and falsified certificates of title for the stolen vehicles in exchange for a negotiated purchase price in cash. Buyer victims also were provided with fraudulent identity documents utilized by conspirators to obscure their true identities.
The scheme involved the theft of at least 40 stolen vehicles, approximately 30 of which were sold by Guerrier and his conspirators to buyer victims. As a result of the scheme, Guerrier and his conspirators collected approximately $285,000.
The conspiracy to commit wire fraud count is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine. Sentencing is scheduled for Nov. 19, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Special Agent in Charge Douglas Williams in New Orleans, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Jessica R. Ecker and Kendall Randolph of the Criminal Division in Newark.
guerrier.indictment.pdfNew Jersey Man Charged with Soliciting Destruction of Energy FacilitiesRead the Press Release
Note: View the criminal complaint here.
Andrew Takhistov, 18, of East Brunswick, New Jersey, was arrested yesterday and made his initial appearance in court today for allegedly soliciting another individual to destroy energy facilities.
“Andrew Takhistov was allegedly on his way to Ukraine to join the Russian Volunteer Corps when we arrested him on charges of recruiting an individual to destroy an electrical substation here in the United States in order to advance his white supremacist ideology,” said Attorney General Merrick B. Garland. “I am grateful to the FBI and the Joint Terrorism Task Force for their exceptional work disrupting this dangerous plot.”
“This complaint alleges that the defendant’s posts referenced Adolf Hitler, encouraged violence against Black and Jewish communities, praised mass shooters, and discussed causing death and destruction on a large scale,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “The defendant was allegedly enroute to join the Russian Volunteer Corps, which he described as specializing in assassinations, attacks on power grids, and other infrastructure sabotage, so that he could act on his violent plans. We will not tolerate these kinds of alleged terroristic threats, and working with our partners, we will always be ready to root out and bring to justice anyone who attempts to carry out these acts.”
According to court documents, in January, Takhistov began communicating on a social messaging platform with an individual who, unbeknownst to Takhistov, was an undercover law enforcement employee. Takhistov had previously posted on the messaging platform (often posting in racially/ethnically motivated extremist [RMVE]-aligned channels), requesting advice about weapons, disseminating manuals on how to construct homemade weapons, and expressing interest in traveling overseas to engage in paramilitary-style training. Throughout these posts, Takhistov referenced Adolf Hitler, encouraged violence against various ethnic and religious communities (including Black and Jewish individuals), and praised mass shooters.
Throughout Takhistov’s communications with the undercover employee, Takhistov repeatedly referred to his RMVE ideology and his desire to advance that ideology through violent means. In May, Takhistov informed the undercover employee that he was planning to travel to Ukraine in July to join the Russian Volunteer Corps, explaining that he chose this organization because it was openly National Socialist and, more importantly, specialized in assassinations, attacks on power grids and other infrastructure sabotage.
Takhistov discussed infrastructure sabotage, specifically how to damage an electrical substation using Mylar balloons or Molotov cocktails, which Takhistov explained how to make. Takhistov told the undercover employee that, while Takhistov was in the Ukraine, the undercover employee needed to carry out at least one event of serious activism.
On two occasions in June and July, at Takhistov’s direction, Takhistov and the undercover employee drove to two different electrical substations in North Brunswick and New Brunswick, New Jersey. During these visits, Takhistov instructed the undercover employee on numerous aspects of how to conduct an attack on an electrical substation.
On July 5, during one of these meetings, Takhistov directed the undercover employee to take several photographs of the electrical substations so that Takhistov could send them to his Russian friend for additional advice on how to best sabotage the stations.
Takhistov was arrested Wednesday afternoon at Newark Liberty International Airport where he was planning to travel to Paris on his way to Ukraine.
Takhistov is charged with one count of soliciting another individual to engage in criminal conduct that involved destroying a public service enterprise group circuit breaker and substation. If convicted, he faces a maximum penalty of 10 years in prison and a $125,000 fine.
The FBI is investigating the case.
Assistant U.S. Attorney Vera Varshavsky for the District of New Jersey and Trial Attorney James Donnelly of the National Security Division’s Counterterrorism Section are prosecuting the case.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Middlesex County Man Charged with Soliciting Destruction of Energy FacilitiesRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was arrested for allegedly soliciting another individual to destroy energy facilities, Attorney General Merrick B. Garland and U.S. Attorney Philip R. Sellinger of the District of New Jersey announced today.
Andrew Takhistov, 18, of East Brunswick, New Jersey, is charged by complaint with one count of soliciting another individual to engage in criminal conduct that involved destroying a Public Service Enterprise Group (PSE&G) circuit breaker and substation. Takhistov was arrested on July 10, 2024, appeared today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court, and was detained.
“Andrew Takhistov was allegedly on his way to Ukraine to join the Russian Volunteer Corps when we arrested him on charges of recruiting an individual to destroy an electrical substation here in the United States in order to advance his white supremacist ideology,” Attorney General Merrick B. Garland said. “I am grateful to the FBI and the Joint Terrorism Task Force for their exceptional work disrupting this dangerous plot.”
U.S. Attorney Philip R. Sellinger“This complaint alleges that the defendant’s posts referenced Adolf Hitler, encouraged violence against Black and Jewish communities, praised mass shooters and discussed causing death and destruction on a large scale. The defendant was allegedly enroute to join the Russian Volunteer Corps, which he described as specializing in assassinations, attacks on power grids, and other infrastructure sabotage, so that he could act on his violent plans. We will not tolerate these kinds of alleged terroristic threats, and working with our partners, we will always be ready to root out and bring to justice anyone who attempts to carry out these acts.”
“Imagine the chaos and number of life-threatening emergencies if a large population of people in New Jersey lost power in the middle of the current heat wave,” FBI – Newark Special Agent in Charge James E. Dennehy said. “We allege Takhistov, who is only 18 years old, planned to travel overseas so he could learn lessons from Russians fighting in Ukraine on how to destroy power grids and other critical infrastructure. His alleged conversations and planned actions are chilling and were inspired by racially motivated violent extremism. Disrupting all of our lives was the goal. I want to commend the agents and detectives of the Newark Joint Terrorism Task Force, other local and state law enforcement partners, and prosecutors who moved with exceptional speed in this investigation. Their work is saving lives.”
“This defendant exemplifies the threat posed by racially and ethnically motivated violent extremism,” NYPD Commissioner Edward A. Caban said. “Whether in his efforts to instruct our undercover officer on how to sabotage critical infrastructure, or in his attempted travel overseas to join a National Socialist paramilitary force, he sought to advance his ideological goals through destruction and violence. The NYPD and our law enforcement partners will remain relentless in our mission to identify, investigate, and inhibit anyone who has designs on plotting acts of terror.”
According to documents filed in this case and statements made in court:
In January 2024, Takhistov began communicating on a social messaging platform with an individual who, unbeknownst to Takhistov, was an undercover law enforcement employee. Takhistov had previously posted on the messaging platform (often posting in racially/ethnically motivated extremist [RMVE]-aligned channels), requesting advice about weapons, disseminating manuals on how to construct homemade weapons, and expressing interest in traveling overseas to engage in paramilitary-style training. Throughout these posts, Takhistov referenced Adolf Hitler, encouraged violence against various ethnic and religious communities (including Black and Jewish individuals), and praised mass shooters.
Throughout Takhistov’s communications with the undercover employee, Takhistov repeatedly referred to his RMVE ideology and his desire to advance that ideology through violent means. In May 2024, Takhistov informed the undercover employee that he was planning to travel to Ukraine in July 2024 to join the Russian Volunteer Corps (RVC), explaining that he chose this organization because it was openly National Socialist and, more importantly, specialized in assassinations, attacks on power grids, and other infrastructure sabotage.
Takhistov discussed infrastructure sabotage, specifically how to damage an electrical substation using Mylar balloons, or Molotov cocktails, which Takhistov explained how to make. Takhistov told the undercover employee that, while Takhistov was in the Ukraine, the undercover employee needed to carry out at least one event of serious activism.
On two occasions in June and July 2024, at Takhistov’s direction, Takhistov and the undercover employee drove to two different electrical substations in North Brunswick and New Brunswick. During these visits, Takhistov instructed the undercover employee on numerous aspects of how to conduct an attack on an electrical substation.
On July 5, 2024, during one of these meetings, Takhistov directed the undercover employee to take several photographs of the electrical substations so that Takhistov could send them to his Russian friend for additional advice on how to best sabotage the stations.
Takhistov was arrested Wednesday afternoon at Newark Liberty International Airport where he was planning to travel to Paris, France on his way to Ukraine.
The charge of solicitation to destruct an energy facility is punishable by a maximum penalty of 10 years in prison and a $125,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge Dennehy in Newark, and the New York City Police Department Intelligence Division, under the direction of Commissioner Caban, with the investigation leading to the arrest. He also thanked the East Brunswick Police Department, under the direction of Chief Frank LoSacco, the Milltown Police Department, under the direction of Chief Chris Johnson, the New Brunswick Police Department, under the direction of Chief Vincent Sabo, and the Port Authority Police Department, under the direction of Superintendent Edward T. Cetnar.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Office’s National Security Unit and Trial Attorney James Donnelly of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
takhistov.complaint.pdfEssex County Woman Sentenced to 10 Years in Prison for Possession with Intent to Distribute Cocaine and MethamphetamineRead the Press Release
CAMDEN, N.J. – An Essex County, New Jersey, woman was sentenced today to 120 months in prison for possessing with intent to distribute cocaine and methamphetamine, U.S. Attorney Philip R. Selling announced.
Mahogany Hawkins, 32, of Newark, was previously convicted of one count of possession with intent to distribute cocaine and methamphetamine following a two-day trial before U.S. Circuit Judge Stephanos Bibas, who imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In March 2021, two FedEx parcels addressed to “John Brown” in Newark, were lawfully intercepted by law enforcement and found to contain cocaine. On March 15, 2021, an undercover officer dressed as a FedEx driver delivered the package to the addressee, and a woman – later identified as Mahogany J. Hawkins – answered the door and accepted the packages. Officers again knocked on Hawkins’s door, this time identifying themselves as law enforcement. Hawkins said she was “getting dressed” but didn’t open the door. The officers forced entry and found Hawkins in the bedroom.
After obtaining a search warrant, the officers searched Hawkins’ apartment and entered a backroom – locked by a keypad – that was a workstation for packaging narcotics. The two FedEx packages from the controlled delivery were found inside a garbage can in the backroom, and the room also contained methamphetamine pills, two plastic bags containing additional cocaine, numerous empty vials used for packaging narcotics, and a heat sealer. Laboratory analysis confirmed substances were cocaine and methamphetamine. Officers also found a loaded handgun and an extended magazine.
In addition to the prison term, Judge Bibas sentenced Hawkins to five years of supervised release.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; Customs and Border Protection, under the direction of Port Director TenaVel Thomas, and members of the Newark Department of Public Safety, under the direction of Director Fritz Fragé, with the investigation leading to today’s sentencing. He also thanked the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz, and the FBI - Newark, under the direction of Special Agent in Charge James E. Dennehy in Newark.
The government is represented by Assistant U.S. Attorneys Rebecca A. Sussman and Jake A. Nasar of the U.S. Attorney’s Office’s Criminal Division in Newark.
Brooklyn Man Sentenced to 57 Months in Prison for Fentanyl DistributionRead the Press Release
NEWARK, NJ. –A Brooklyn man was sentenced today to 57 months in prison for his role in a drug trafficking conspiracy to distribute 4 kilograms of fentanyl in Clifton, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Juan De La Cruz Infante Torres, 52, of Brooklyn, New York, pleaded guilty on June 14, 2023, before U.S. District Judge Michael A. Shipp to a two-count information charging him with conspiracy to distribute and possess with intent to distribute fentanyl, and with possessing with intent to distribute fentanyl. Judge Shipp imposed the sentence today in Trenton federal court. Infante’s conspirator, Billy Castro, pleaded guilty before Judge Shipp and is awaiting sentencing.
According to documents filed in this case and statements made in court:
In May and June 2021, Infante Torres conspired with Castro and others to distribute substantial quantities of fentanyl. On June 15, 2021, Infante and Castro took approximately 2 kilograms of fentanyl from Castro’s Queens, New York apartment to Clifton, New Jersey, where they were arrested trying to sell it. Law enforcement agents then searched Castro’s apartment and found approximately two additional kilograms of fentanyl.
In addition to the prison term, Judge Shipp sentenced Infante Torres to two years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, 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; 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 postal inspectors with 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 sentencing. He also thanked the U.S. Department of Labor, Pennsylvania Department of Labor and Industry, and New York Department of Labor.
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 Mark J. Pesce and Aja Espinosa of the Economic Crimes Unit in Newark.
Monmouth County Man Sentenced to 10 Years in Prison for Drug Distribution and Firearms ChargesRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 120 months in prison for illegally possessing methamphetamine for distribution and possessing a firearm as a convicted felon, U.S. Attorney Philip R. Sellinger announced.
Dywann Pugh, 44, of Asbury Park, New Jersey, previously pleaded guilty before former-U.S. District Judge Peter G. Sheridan to one count of possession with the intent to distribute 500 grams or more of a mixture and substance containing methamphetamine and one count of unlawful possession of a firearm and ammunition by a convicted felon. U.S. District Judge Zahid N. Quraishi imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Nov. 21, 2022, law enforcement executed search warrants at Pugh’s residence and discovered over three kilograms of methamphetamine; over three kilograms of cocaine; approximately 150 grams of fentanyl; approximately $19,000 in cash; and various drug distribution paraphernalia, including a pill press and approximately seven kilograms of cutting agents used in connection with the processing of drugs. Law enforcement also recovered a Hi-Point .380 caliber pistol loaded with six rounds of ammunition.
In addition to the prison term, Judge Quraishi sentenced Pugh to five years of supervised release. Judge Sheridan previously ordered Pugh to forfeit the firearm and ammunition that law enforcement seized.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, and the Neptune Township Police Department, under the direction of Chief Anthony Gualario, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Matt Belgiovine of the Criminal Division in Trenton.
Former CEO of Publicly Traded Company Convicted of Securities Fraud for Misleading Investors About COVID-19 Rapid TestRead the Press Release
NEWARK, N.J. – A federal jury today convicted the former chief executive officer of SCWorx Corp. (SCWorx), a publicly traded health care company, on two counts of securities fraud for his participation in a scheme to mislead investors about SCWorx’s procurement of COVID-19 rapid test kits in the early days of the COVID-19 pandemic.
According to court documents and evidence presented at trial:
Marc Schessel, 64, of New Paltz, New York, caused SCWorx to make four false and misleading public statements, claiming that the company had a binding contract to acquire millions of needed COVID test kits during the very beginning of the pandemic from an Australian supplier. In reality, Schessel knew that the Australian supplier did not have FDA approval for the COVID test kits and that his company did not have nearly enough money to pay for them. Nevertheless, Schessel made four false and misleading statements during a five-day period: an April 13, 2020, press release, an April 15, 2020, investor conference call, an April 16, 2020, 8-K filing with the U.S. Securities and Exchange Commission, and an April 17, 2020, press release. Schessel made these false statements even though investors had started to raise questions about the accuracy of the statements and the legitimacy of SCWorx’s supposed contract to acquire the COVID test kits. Ultimately, Schessel and SCWorx did not obtain a single COVID test kit as part of the supposed transaction he had announced during the week.
In the wake of these public announcements, SCWorx’s share price surged, rising by over 400 percent, from approximately $2.25 to an intraday high of $14.88. After SCWorx announced that it was terminating these COVID-19 rapid test kit agreements without having acquired any tests, SCWorx’s share price quickly dropped below its pre-April 13, 2020, announcement price.
U.S. Attorney Philip R. Sellinger“This defendant took advantage of the global COVID pandemic by illegally pumping up the value of SCWorx’s stock by over 400 percent with multiple fraudulent public statements that he had binding contracts to obtain and resell COVID-19 test kits, when in reality the test kits did not have FDA authorization. When the truth came out, the value of the SCWorx stock crashed, causing investors to suffer substantial losses. Duping investors out of millions of dollars in the middle of a serious health emergency to salvage a failing business is especially egregious. Working with our partners, we will continue to investigate and bring to justice anyone who tried to profit from this crisis.”
“If we think back to those very early days of the pandemic, the confusion and frustration about testing, the spread of the virus and social distancing had everyone frantically searching for answers,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Schessel witnessed that chaos and chose to capitalize on it - promising a vital resource with rapid COVID tests that never existed. The passage of time dulls memories of traumatic events, but FBI Newark and our partners are methodically investigating and bringing to justice the fraudsters who mistakenly believe they'll escape unscathed.”
The jury convicted Schessel of two counts of securities fraud. He is scheduled to be sentenced on Dec. 17, 2024, and faces a maximum penalty of 20 years in prison on count one and a maximum penalty of 25 years on count two.
U.S. Attorney Sellinger; Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; and Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division made the announcement.
The FBI’s Newark Division investigated the case. The Justice Department appreciates the assistance of FINRA’s Criminal Prosecution Assistance Group.
Assistant U.S. Attorneys George Brandley and Angelica Sinopole of the District of New Jersey Health Care Fraud Unit and Principal Assistant Deputy Chief Lucy Jennings and Trial Attorneys Kate McCarthy and Spencer Ryan of the Justice Department’s Fraud Section and are prosecuting the case.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
Former CEO of Publicly Traded Company Convicted of Securities Fraud SchemeRead the Press Release
A federal jury in New Jersey convicted the former CEO of SCWorx Corp. (SCWorx), a publicly traded health care company, today for his role in a scheme to mislead investors about SCWorx’s procurement of COVID-19 rapid test kits in the early days of the COVID-19 pandemic.
According to court documents and evidence presented at trial, Marc Schessel, 64, of New Paltz, New York, caused SCWorx to issue multiple public statements claiming that SCWorx was buying and reselling at least 48 million COVID-19 test kits, despite knowing that such statements were false and misleading. Specifically, Schessel made, or caused to be issued, four false and misleading statements during a five-day period in April 2020: an April 13 press release; an April 15 investor conference call; an April 16 8-K filing with the U.S. Securities and Exchange Commission; and an April 17 press release. All four announcements claimed that SCWorx would be receiving millions of COVID-19 rapid test kits within two weeks, but Schessel and SCWorx never acquired a single COVID-19 test kit as part of the announced transaction.
In the wake of these public announcements, SCWorx’s share price surged, rising by over 400%, from approximately $2.25 to an intraday high of $14.88. After SCWorx announced that it was terminating these COVID-19 rapid test kit agreements without having acquired any tests, SCWorx’s share price quickly dropped below its pre-April 13, 2020, announcement price.
The jury convicted Schessel of two counts of securities fraud. He is scheduled to be sentenced on Dec. 17 and faces a maximum penalty of 20 years in prison on count one and a maximum penalty of 25 years on count two. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Philip R. Sellinger for the District of New Jersey; and Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division made the announcement.
The FBI Newark Field Office investigated the case. The Justice Department appreciates the assistance of FINRA’s Criminal Prosecution Assistance Group.
Principal Assistant Deputy Chief Lucy Jennings and Trial Attorneys Kate McCarthy and Spencer Ryan of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys George Brandley and Angelica Sinopole for the District of New Jersey are prosecuting the case.
The Fraud Section uses the Victim Notification System to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
Egyptian Fugitive Extradited from Spain Admits Role in Defrauding Rideshare CompanyRead the Press Release
NEWARK, N.J. – An Egyptian citizen extradited to the United States on wire fraud and aggravated identity theft charges today admitted defrauding a peer-to-peer rideshare company out of hundreds of thousands of dollars in fraudulent referral fees, U.S. Attorney Philip R. Sellinger announced today.
Hatem Ghouneim, 35, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an indictment charging him with three counts of wire fraud.
According to documents filed in this case and statements made in court:
From January through December 2019, Ghouneim engaged in a scheme to defraud a technology company that operates a rideshare service. By creating fraudulent accounts and using stolen identities, Ghouneim induced the victim company to pay him referral fees for each new fraudulently created account. Through the scheme, Ghouneim defrauded the company of hundreds of thousands of dollars in referral fees.
The wire fraud charges each carry a maximum potential penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Nov. 13, 2024.
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 guilty plea. He also thanked the U.S. Department of Justice’s Office of International Affairs and the FBI Attaché’s Office in Spain for their assistance, as well as the government of Spain for their substantial assistance arresting and extraditing Ghouneim to the United States.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
ghouneim.indictment.pdfCosta Rican National Sentenced to 97 Months in Prison for $2 Million Money Laundering SchemeRead the Press Release
TRENTON, N.J. – A Costa Rican man, illegally in the United States, was sentenced today to 97 months in prison for his role in laundering over $2 million in proceeds of a number of wire fraud schemes, U.S. Attorney Philip R. Sellinger announced.
Esteban De Jesus Campos Chanto, 43, of Trenton, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of conspiracy to commit money laundering. Judge Quraishi imposed sentence today in Trenton federal court.
According to documents filed in the case:
Between August 2019 and October 2021, Chanto participated in a multimillion-dollar money laundering conspiracy operating out of Costa Rica that targeted elderly victims in the United States. Conspirators in Costa Rica called senior citizens in the United States over the phone and induced them to mail or wire money to Chanto by claiming that the victims needed to pay off taxes and fees on lottery winnings or taxes and penalties to the United States government. In total, Chanto received more than $2 million from elderly victims who had been defrauded by Chanto’s co-conspirators. Chanto then wired the majority of the funds to his co-conspirators in Costa Rica and retained approximately $400,000 for himself as payment for his money laundering services.
In addition to the prison term, Judge Quraishi sentenced Chanto to three years of supervised release and ordered him to pay restitution of $2.07 million.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of the FBI, Cleveland Division, Youngstown Resident Agency, under the direction of Special Agent in Charge Gregory D. Nelsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Ashley Super Pitts of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Atlantic County Man Admits Possessing Destructive DevicesRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted possessing four destructive devices, U.S. Attorney Philip R. Sellinger announced.
Robert J. Moser, 32, of Mays Landing, New Jersey, pleaded guilty before U.S. District Judge Edward S. Kiel to an information charging him with possessing destructive devices.
According to documents filed in this case and statements made in court:
On March 17, 2023, law enforcement officers responded to Moser’s residence to assist him after he overdosed on drugs. Officers recovered at least four destructive devices in Moser’s bedroom. All four destructive devices contained explosive powder with a fuse sticking out of each device. One of the destructive devices contained metal pieces, the second destructive device contained a metal nail and a protruding metal screw hook, the third destructive device contained a protruding metal screw hook, and the fourth destructive device contained five metal dart tips. Moser admitted that the four destructive devices were operable weapons.
The charge to which Moser pleaded guilty is punishable by a maximum of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for November 13, 2024.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti; officers of the Township of Hamilton Police Department, under the direction of Chief Gregory K. Ciambrone; members of the Atlantic City Police Department Bomb Squad, under the direction of Chief James A. Sarkos; and personnel from the Atlantic City Prosecutor’s Office, under the direction of Prosecutor William Reynolds, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
moser.information.pdfTwo Individuals Charged with Scheme to Export and Smuggle Aviation Device to United Arab EmiratesRead the Press Release
NEWARK, N.J. – Two people were arrested Tuesday morning for shipping an Air Data Inertial Reference Unit (ADIRU) from New Jersey to the United Arab Emirates (UAE) without having obtained the required license and authorization, U.S. Attorney Philip R. Sellinger announced today.
Fadi Nammas, 43, of Fairfax, Virginia, and Tara Jamhour, 24, of Rockaway, New Jersey, are charged by complaint with one count of conspiracy to export and smuggle goods from the United States, one count of unlawfully exporting goods from the United States without having first obtained the required license or authorization, and one count of smuggling goods from the United States. Nammas made his initial appearance on July 2, 2024, before U.S. Magistrate Judge William E. Fitzpatrick in federal court in the Eastern District of Virginia, and is scheduled to have a preliminary hearing, detention hearing, and identity hearing on July 3, 2024, before Judge Fitzpatrick. Jamhour made her initial appearance today before U.S. Magistrate Judge Jessica S. Allen 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 November 2023 through March 2024, Nammas and Jamhour were working under the auspices of Star Aero, an aircraft service and part provider with a purported address in Garfield, New Jersey. The defendants obtained an ADIRU, a component that supplies air data and inertial reference information to pilots’ electronic flight instrument system displays, from a Vermont-based aviation company. Nammas and Jamhour arranged to have the ADIRU shipped to Star Aero’s purported Garfield address. In procuring the ADIRU, Nammas and Jamhour represented that the ADIRU was being purchased for Star Aero’s stock purposes and that Star Aero understood and would comply with United States export laws. The defendants did not disclose that they intended to ship the ADIRU to another company in the UAE. Once the defendants received the ADIRU, they repackaged it with false documentation that undervalued and falsely described the item and attempted to ship it to the UAE. Neither Nammas nor Jamhour obtained the required license or authorization to ship the ADIRU, which was controlled for missile technology and anti-terrorism reasons, to the UAE.
The charge of conspiracy is punishable by a maximum penalty of five years in prison and a maximum fine of $250,000 fine. The charge of unlawfully exporting controlled goods is punishable by a maximum penalty of 20 years in prison and a $1 million fine. The charge of smuggling is punishable by a maximum penalty of 10 years and a $250,000 fine.
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 charges. He also thanked the U.S. Attorney’s Office for the Eastern District of Virginia, under the direction of U.S. Attorney Jessica D. Aber, and agents of the HSI Field Office in Fairfax, Virginia.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Office’s National Security Unit and Trial Attorney Monica Svetoslavov of the U.S. Department of Justice’s Counterintelligence and Export Control Section of the National Security Division.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
nammasjamhour.complaint.pdfSussex County Man Charged with Multimillion-Dollar COVID-19 Fraud SchemeRead the Press Release
NEWARK N.J. – A Sussex County, New Jersey, man was indicted today for fraudulently obtaining millions of dollars in Paycheck Protection Program (PPP) funds and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced.
Nikenson Jean Mathurin, aka “Nik Mathurin,” aka “Jean Mathurin”, 44, of Sparta, New Jersey, is charged with three counts of wire fraud and one count of money laundering. Mathurin was previously charged by complaint in relation to the same scheme.
According to documents filed in this case and statements made in court:
From April 2020 through November 2022, Mathurin participated in a scheme to defraud a lender and the Small Business Administration to obtain federal COVID-19 emergency relief money by submitting several fraudulent PPP and EIDL applications on behalf of several purported businesses. Mathurin’s fraudulent applications included false information concerning, among other things, the applicant entities’ average monthly payroll, gross revenue, and number of employees, and fake supporting tax documents. As a result of his fraudulent applications, Mathurin unlawfully obtained millions of dollars in federal COVID-19 emergency relief money.
Each wire fraud charge carries a maximum penalty of 20 years in prison, and the 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 the of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorneys Matthew Stark and Fatime Meka Cano of the Economic Crimes Unit in Newark and Trial Attorney David D. Hamstra of the U.S Department of Justice’s Fraud Section.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
mathurin.indictment.pdfEssex County Man Admits Stealing Federal Benefits Meant for Missing Girlfriend’s Disabled SonRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man admitted his role in embezzling federal benefits meant for the disabled child of his former girlfriend shortly after she went missing, U.S. Attorney Philip R. Sellinger announced.
Asmar Earp, 37, of Newark, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court on June 26, 2024, to three counts of an indictment charging him with two counts of wire fraud and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
Earp was in a romantic relationship and shared a house in Newark with V.W. Through a program administered by Social Security Administration, V.W. received monthly payments on behalf of her disabled minor son, who was not capable of managing these benefits on his own. On Dec. 24, 2017, V.W. went missing and her whereabouts remain unknown. Six days after V.W.’s disappearance, Earp fraudulently gained control of V.W.’s son’s benefits by changing the PIN code on the debit card used to access those funds. In March and April 2018, Earp also fraudulently used V.W.’s name, date of birth, and Social Security number to receive a replacement debit card to continue accessing and using V.W.’s son’s benefits. From December 2017 through February 2020, Earp and others acting at his direction repeatedly and fraudulently took the money intended to help V.W.’s son and used it on themselves.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross loss to the victim or gain of the defendant, whichever is greatest. The count of aggravated identity theft carries a statutory mandatory penalty of two years in prison, which run consecutively to any other term of imprisonment, and a fine of $250,000, or twice the gross loss to the victim or gain of the defendant, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the Social Security Administration, Office of the Inspector General, under the direction of Acting Special Agent-in-Charge Bradley Parker of the New York Boston Field Division, and the Essex County Prosecutor’s Office, under the leadership of Prosecutor Theodore N. Stephens II, with the investigation.
The government is represented by Assistant U.S. Attorney Daniel H. Rosenblum of the General Crimes Unit in Newark.
earp.indictment.pdfAtlantic County Man Admits Committing Spree of Armed Robberies, Armed Carjacking, Firearms OffensesRead the Press Release
NEWARK, N.J. – A Essex County, New Jersey, man admitted committing a spree of robberies and a carjacking, U.S. Attorney Philip R. Sellinger announced today.
Deion Nance, 28, pleaded guilty before U.S. District Judge Susan D. Wigenton on June 27, 2024, to a five-count information charging him with two counts of Hobbs Act robbery, one count of carjacking, and two counts of using and carrying a firearm during and in relation to a crime of violence.
According to documents filed in this case and statements made in court:
Nance admitted that on Dec. 30, 2020, he used a firearm to steal a 2016 Toyota Corolla from the occupant of the vehicle. He pointed a handgun at the victim, pulled the victim out of their vehicle and pushed the firearm into her face. He got into the driver's seat and drove away in the victim’s car.
Nance admitted that on Jan. 4, 2021, he robbed two restaurants. At the first restaurant, he pointed a loaded firearm at a restaurant employee and demanded money. The employee gave Nance $176. That same day, he attempted to rob a restaurant by threatening an employee and pointing a firearm at the employee.
The count of carjacking is punishable by a maximum of 15 years in prison; Hobbs Act Robbery is punishable by a maximum of 20 years in prison, and use of a firearm during a crime of violence is punishable by a maximum of life in prison. Each firearms offense carries a statutory minimum prison sentence of five years in prison, which must run consecutively to any other prison term imposed. All counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Oct. 29, 2024.
U.S. Attorney Sellinger credited law enforcement from the Newark and Harrison police departments, and special agents and task force officers with the FBI Newark Field Division, under the direction of James E. Dennehy, with the investigations leading to the plea hearing.
The government is represented by Assistant U.S. Attorney Megan Linares of the Organized Crime and Gangs unit in Newark.
nance.information.pdfGeorgia Chiropractor Admits $14.9 Million Health Care Fraud and Kickback Scheme Related to Durable Medical Equipment and Cancer Genetic TestingRead the Press Release
NEWARK, N.J. – A Georgia chiropractor who owned or operated multiple durable medical equipment (DME) companies and a cancer genetic testing (CGx) company admitted her role in a health care fraud and illegal kickback conspiracy, Attorney for the United States Vikas Khanna announced today.
Tefylon Cameron, 57, of Powder Springs, Georgia, pleaded guilty on June 20, 2024, before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging her with conspiracy to commit health care fraud and conspiracy to violate the Federal Anti-Kickback statute.
According to documents filed in the case and statements made in court:
Cameron and her conspirators owned, operated, and had a financial interest in DME companies through which they obtained doctors’ orders for durable medical equipment, namely orthotic braces, for Medicare beneficiaries without regard to medical necessity. Cameron and her conspirators obtained DME orders using marketing call centers and telemedicine companies (including multiple Florida-based companies), caused the submission of false and fraudulent claims to Medicare, and paid illegal kickbacks.
Cameron and her conspirators also owned, operated, and had a financial interest in a CGx company through which she agreed to provide a clinical laboratory with leads of beneficiaries who were qualified to receive federal health care benefits for cancer genetic tests. Cameron submitted invoices to the clinical laboratory seeking payment on a per-lead basis, but entered into a sham agreement to disguise kickback and bribe payments.
In total, Cameron and her conspirators caused a loss to Medicare of more than $14.9 million.
Conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and conspiracy to violate the Federal Anti-Kickback Statute is punishable by a maximum of five years in prison. Both counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Oct. 29, 2024.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy 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 charge.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division.
cameron.information.pdfFlorida Resident Convicted of Tax EvasionRead the Press Release
NEWARK, N.J. – A resident of Florida was convicted of four counts of tax evasion, Attorney Philip R. Sellinger announced today.
Jason Kronick, 50, of Boca Raton, Florida, was convicted by a federal jury on June 26, 2024, of four counts of tax evasion following a trial before U.S. District Judge Susan D. Wigenton in Newark federal court.
According to documents filed in this case and the evidence at trial:
From 2010 through 2017, Kronick evaded payment of more than $8.6 million in income and employment taxes, including penalties and interest, despite having earned more than $20 million in taxable income. Kronick also collected approximately $200,000 in payroll taxes from employees of his company, but failed to remit those withholdings to the IRS and evaded his obligation to do so. Kronick evaded these taxes by, among other things, using approximately $1.8 million from accounts controlled by him to buy more than 40 luxury watches; spending more than $4.7 million to pay for home renovations and interior decorating; transferring more than $1.8 million, including funds originating from business accounts, to various casinos, where he converted the money to chips, gambled, and then redeemed chips for approximately $1.8 million in cash; and cashed approximately $159,000 in checks at check-cashing businesses to conceal his income and assets from the IRS.
Each of the four counts of tax evasion carries a maximum penalty of five years in prison and a fine of up to $250,000. Kronick’s sentencing is scheduled for Nov. 14, 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 conviction.
The government is represented by Assistant U.S. Attorneys Rachelle M. Navarro and Christopher Fell of the Criminal Division in Newark.
National Health Care Fraud Enforcement Action Results in 193 Defendants Charged and over $2.75 Billion in False ClaimsRead the Press Release
NEWARK, N.J. – Today, U.S. Attorney Philip R. Selliniger, District of New Jersey, announced criminal charges against 13 defendants in connection with alleged schemes to defraud Medicare, Medicaid, TRICARE, and private health insurers. The charges filed in federal court are part of the Department of Justice’s 2024 National Health Care Fraud Enforcement Action.
“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”
U.S. Attorney Philip R. Sellinger“Patients rely on Medicare and other health insurers to cover the costs of necessary care, and the system is built on trust. Health care providers and others who take advantage of that system through fraud or illegal kickbacks reap unwarranted profits and undermine the system. The cases announced today – part of a nationwide action against 193 defendants allegedly resulting in over $2.75 billion in alleged false billings, and the seizure of over $231 million in cash, luxury vehicles, gold and other assets – allege a variety of misconduct, but they all seek to hold accountable those who put profits over patients. Along with our law enforcement partners, this office is committed to safeguarding Medicare and the health care system from fraud and illegal kickback schemes.”
The charges announced today by U.S. Attorney Sellinger are part of a strategically coordinated, two-week nationwide law enforcement action.
The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the District of New Jersey, the Southern District of Alabama, District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Connecticut, Middle District of Florida, Southern District of Florida, Northern District of Illinois, Eastern District of Kentucky, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, Eastern District of New York, Southern District of New York, Eastern District of North Carolina, Western District of Oklahoma, District of Rhode Island, Middle District of Tennessee, Northern District of Texas, Southern District of Texas, Eastern District of Tennessee, Eastern District of Virginia, and Southern District of West Virginia; and the State Attorney Generals’ Offices for California, New York, Pennsylvania, Puerto Rico, Rhode Island, and South Dakota are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the Department's website here.
The District of New Jersey worked with the Department’s Criminal Division and other law enforcement organizations to investigate and prosecute the cases filed during the enforcement period.
“We will not tolerate fraud that preys on patients who need and deserve high quality health care,” said the Honorable Christi A. Grimm, the Department of Health and Human Services Inspector General (HHS-OIG). “The hard work of the HHS-OIG team and our outstanding law enforcement partners makes today’s action possible. We must protect taxpayer dollars and keep Americans safe from harms to their health, privacy, and financial well-being.”
“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General, is fully committed to working with our law enforcement partners and the Justice Department to hold those who engage in fraudulent activity at the expense of the U.S. military accountable for their actions,” Acting Special Agent-in-Charge Brian J. Solecki of the DCIS Northeast Field Office, said. “Protecting the integrity of the healthcare system utilized by our military members and their families is of the utmost importance and continues to be a top priority for DCIS.”
“We remain fully committed to bringing justice to those who steal from Amtrak’s resources, including these current and former Amtrak employees accused of defrauding Amtrak’s health care plans,” Amtrak’s Inspector General, Kevin H. Winters, said. “The alleged actions by these employees and health care providers drained millions in Amtrak’s funds – resources ultimately provided by American taxpayers – and we hope these charges will serve as a deterrent for those considering engaging in such schemes. Anyone who suspects or observes such fraud should report it to our investigators via our fraud, waste, and abuse hotline.”
The following individuals have been charged in District of New Jersey:
- Kimberlee Otero, 47, of Camden, New Jersey, was charged by information with conspiracy to unlawfully distribute and possess with intent to distribute a controlled substance. The case is being prosecuted by Trial Attorney Nicholas K. Peone of the Northeast Strike Force and Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office for the District of New Jersey.
- Hyunji Choi, aka “Regina Choi,” aka “Regina Beatrice,” 39, of Woodside, New York, was charged by information with conspiracy to commit health care fraud in connection with a scheme to defraud the Amtrak health care plan. As alleged in the information, Choi, a medical biller, submitted false and fraudulent claims to the Amtrak health care plan for services that were not provided, resulting in loss to the Amtrak health care plan of at least approximately $959,902.79. Choi paid cash bribes and kickbacks to co-conspirator Amtrak employees, in return for the employees’ agreement to allow their insurance to be used for false billing. The case is being prosecuted by Assistant U.S. Attorneys Katherine M. Romano and Jessica R. Ecker of the U.S. Attorney’s Office for the District of New Jersey.
- Timothy Bogen, 59, of Hamden, Connecticut, Kevin Frink, 52, of Willingboro, New Jersey, Dion Jacob, 50, of Brooklyn, New York, Quinton Johnson, 52, of Irvington, New Jersey, David Lonergan, 64, of Rockaway Park, New York, David McBrien, 36, of Levittown, Pennsylvania, Gregory Richardson, 34, of Roosevelt, New York, Rodolfo Rivera, 41, of Clayton, Delaware, Michael Toal, 34, of Hazlet, New Jersey, and Damany Walker, 41, of Irvington, New Jersey, were charged by indictment with conspiracy to commit health care fraud in connection with a scheme to defraud the Amtrak health care plan, which resulted in a loss of approximately $11,054,831 to Amtrak. The defendants were Amtrak employees and participants in the Amtrak health care plan who allowed their personal and insurance information, and in some cases that of their dependents, to be used for false and medically unnecessary billing in return for cash kickbacks and bribes paid by co-conspirator health care providers. The case is being prosecuted by Assistant U.S. Attorneys Katherine M. Romano and Jessica R. Ecker of the U.S. Attorney’s Office for the District of New Jersey.
- Elise Nocella, 54, of Naples, Florida, was charged by information with conspiring to violate the Anti-Kickback Statute by paying kickbacks for DME orders. As alleged in the information, Nocella, who owned and operated a marketing company that marketed DME, offered and paid physicians at a pain management practice kickbacks in exchange for DME orders. Nocella supplied the physicians with a variety of expensive items, including cash, full-season access to a suite for professional football games, expensive lunches and dinners at networking events and practice group meetings, and other expensive gifts, and subsequently billed Medicare and other health care benefit programs for the orders. The case is being prosecuted by Assistant U.S. Attorney DeNae Thomas of the U.S. Attorney’s Office for the District of New Jersey.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Middlesex County Man Sentenced to 108 Months in Prison for Role in Gunpoint RobberyRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man was sentenced today to 108 months in prison for his role in an attempted robbery in New Brunswick, New Jersey, where the victim was shot 14 times, U.S. Attorney Philip R. Sellinger announced.
Jonathan Rosales, 23, of New Brunswick, previously pleaded guilty before U.S. District Judge Robert Kirsch to an indictment charging him with conspiracy to commit Hobbs Act robbery and attempted Hobbs Act robbery. Judge Kirsch imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Dec. 28, 2020, Rosales, along with his accomplices, Saul Peralta and Giovanni Hoyos-Jaimes, attempted to rob the victim in New Brunswick. During the struggle, the victim was shot 14 times causing him to sustain serious injuries. Peralta and Hoyos-Jaimes previously pleaded guilty before Judge Kirsch for their involvement in this incident.
In addition to the prison term, Judge Kirsch sentenced Rosales to three years of supervised release.
Peralta was sentenced by Judge Kirsch on May 22, 2024, to 78 months in prison and Hoyos-Jaimes is scheduled to be sentenced on July 24, 2024.
U.S. Attorney Sellinger credited special agents of the FBI in Newark, under the direction of Special Agent in Charge James E. Dennehy; members of the New Brunswick Police Department, under the direction of Chief of Police Vincent Sabo; and members of the Middlesex County Prosecutor’s Office, under the leadership of Prosecutor Yolanda Ciccone, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Benjamin Levin, Co-Chief of the General Crimes Unit in Newark.
Essex County Man Admits Defrauding U.S. Department of Defense and Agreeing to Rig Bids for U.S. Department of Defense ContractsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted engaging in multiyear schemes to defraud the U.S. Department of Defense (DoD) by providing military equipment parts that were not authorized under the governing contracts and agreeing with another individual to rig bids for DoD contracts, U.S. Attorney Philip R. Sellinger announced.
Alan Aranowitz, 75, of Roseland, New Jersey, pleaded guilty before U.S. District Judge Julien X. Neals in Newark federal court to an information charging him with two counts of wire fraud conspiracy.
According to documents filed in this case and statements made in court:
Count One
From 2015 through August 2018, Aranowitz conspired with others to defraud the DoD and one of its combat logistic support arms, the Defense Logistics Agency (DLA), by engaging in a pattern of unlawful product substitution. Aranowitz owned and operated Arlo Corporation (Arlo), which entered into contracts with the DoD to supply replacement parts for the military, such as screws, nuts, and bolts. Aranowitz conspired with two owner/operators of two companies to provide cheaper counterfeit and/or non-conforming parts to the DoD.
For instance, Aranowitz sometimes falsely represented that the parts would be MIL-SPEC, that is, suitable for military use because the parts had met certain specific requirements—when in fact, he submitted such bids intending to provide parts that were not MIL-SPEC. Aranowitz sometimes falsely represented that the parts would be “Exact Product,” that is, that they derived from a particular manufacturer, when, in fact, he submitted such bids intending to provide parts that were not Exact Product. He also sometimes falsely represented that Arlo or one of the companies he conspired with would be the manufacturer of the parts, when in fact he knew that Arlo or that company would not be the manufacturer. Aranowitz sometimes submitted bids to the DoD in the name of one of the companies with the owner/operator’s knowledge and approval. By committing these acts, Aranowitz and his conspirators increased their own profits. DLA received numerous Product Quality Deficiency Reports (PQDRs) from U.S. military end users reporting that a particular part supplied by Arlo did not physically conform to the contract specifications.
As part of the plea, Aranowitz agreed to forfeit $684,168 in proceeds of the fraudulent scheme charged in Count One and to pay restitution in the amount of $878,644 to the DoD.
Count Two
From 2017 through August 2018, Aranowitz conspired with the owner operator of a company to defraud the DoD and DLA by coordinating bid prices, engaging in bid rigging, with another DoD contractor. Arlo, like all DoD contractors, was required to certify that it had arrived at its bids independently and without consulting or colluding with any other offeror or competitor. On the contrary, Aranowitz regularly consulted with another DoD contractor regarding the bids that each was submitting.
The charges of wire fraud conspiracy each carry a statutory maximum of 20 years in prison, and a $250,000 fine, which could run consecutively. Sentencing is scheduled for Oct. 29, 2024.
U.S. Attorney Sellinger credited special agents of U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Brian J. Solecki, and 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 guilty plea.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Camden.
aranowitz.information.pdfPassaic County Man Indicted for Seven Gunpoint Robberies of PharmaciesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was indicted by a federal grand jury today for his role in seven gunpoint robberies of pharmacies in Passaic County, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Onijee Burgess, 26, of Paterson, New Jersey, is charged in a nine-count indictment with one count of conspiracy to commit Hobbs Act robbery, one count of conspiracy to use and carry a firearm during and in relation to a crime of violence, three counts of Hobbs Act robbery, one count of attempted Hobbs Act robbery, one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence, and two counts of using, carrying, and discharging a firearm during and in relation to a crime of violence. Burgess, who was previously charged by complaint and was detained, will be arraigned on a date to be determined.
According to documents filed in this case and statements made in court:
From November 2022 through April 5, 2023, Burgess conspired with Antonio Rivera and others to commit seven separate armed robberies of five different pharmacies in Paterson and Passaic, New Jersey. Law enforcement collected an extensive amount of video surveillance footage and cell phone data that ultimately linked Burgess and Rivera to the robberies. Rivera, Burgess’ conspirator, was previously charged by complaint and is detained.
The Hobbs Act robbery, attempted Hobbs Act robbery, and conspiracy to commit Hobbs Act Robbery counts each carry a maximum potential penalty of 20 years in prison. The conspiracy to use and carry a firearm during and in relation to a crime of violence count also carries a maximum potential penalty of 20 years in prison. The using, carrying, and brandishing a firearm during and in relation to a crime of violence counts each carry a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other term of imprisonment imposed. The using, carrying, and discharging a firearm during and in relation to a crime of violence counts each carry a maximum potential penalty of life in prison and a mandatory minimum sentence of 10 years in prison, which also must run consecutively to any other term of imprisonment imposed. Each count also carries a fine of up to $250,000, or twice the gain or loss from the offenses, whichever is greatest.
U.S. Attorney Sellinger credited members of the FBI’s New Jersey field office, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. U.S. Attorney Sellinger also thanks members of the Paterson Police Department, under the leadership of Officer in Charge Isa M. Abbassi; members of the Passaic Police Department, under the leadership of Police Chief Luis Guzman; members of the Passaic County Sheriff's Office, under the leadership of Acting Sheriff Gary F. Giardina; members of the Clifton Police Department, under the leadership of Police Chief Thomas Rinaldi; members of the Bergen County Prosecutor's Office, under the leadership of Chief Jason Love; and members of the Cedar Grove Police Department, under the leadership of Police Chief John J. Kennedy.
The government is represented by Assistant U.S. Attorney Ariel Douek of the General Crimes Unit in Newark.
The charges and allegations contained in the indictment and complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
burgess.indictment.pdfNine Defendants Charged for Roles in Drug Trafficking Organization Controlled by Sex, Money, Murder Street GangRead the Press Release
NEWARK, N.J. – Nine people have been charged for their respective roles in a drug trafficking organization that distributed large quantities of fentanyl, heroin, and cocaine in Essex County, U.S. Attorney Philip Sellinger announced.
Calvin Swinton, aka “40,” 32; Lance Yarbough, aka “L-Boog,” 42; Jahad Gorsuch, aka “Hadi Mu,” 47; Coyette Elliott, aka “Q,” 56; Derrick Davidson, aka “Lefty,” 55; Rashem Batts, aka “Dae Dae,” 48; Kiion Scovil, aka “Skrapp,” 35; Tishawn Scovil, aka “Ty,” 33; and Amanda Brown, aka “Manda,” 32, all of Essex County, New Jersey, were charged with one count of conspiracy to distribute fentanyl, heroin, and cocaine. All defendants are in custody. Seven defendants are scheduled to make initial court appearances before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court; Elliott and Scovil are in state custody and will make their initial appearances at a later date.
According to documents filed in this case and statements made in court:
The defendants are members of a drug trafficking organization that operated an open-air narcotics market in the areas of West End and 18th avenues and Alexander Street in Newark. The West End and Alexander drug trafficking organization is affiliated with, and the defendants are members and associates of, the Sex, Money, Murder set of the Bloods street gang. For several months, law enforcement conducted extensive surveillance of the area, conducted numerous controlled purchases of narcotics, seized narcotics through enforcement action, and analyzed telephone records, all of which demonstrated extensive interactions between and among the charged defendants. The investigation has revealed that the organization distributed in excess of 400 grams of fentanyl.
The defendants face a mandatory minimum penalty of 10 years in prison, maximum potential penalty of life in prison, and a $10 million fine.
U.S. Attorney Sellinger credited special agents of the FBI under the supervision of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked detectives of the Essex County Prosecutor’s Office, under the direction of Theodore N. Stephens II; special agents of Homeland Security Investigations in Newark under the direction of Acting Special Agent in Charge William S. Walker; officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; police officers and detectives of the Irvington Police Department, under the direction of Director Tracy Bowers; police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; police officers and detectives of the East Orange Police Department, under the direction of Chief William C. Robinson; officers of the New Jersey State Department of Corrections; and detectives of the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, for their assistance with the investigation.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, Homeland Security Investigations, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Organized Crime and Drug Enforcement Task Force Unit Chief Samantha C. Fasanello and Assistant U.S. Attorney Jason Goldberg of the Criminal Division in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
swintonetal.complaint.pdfMiddlesex County Man Sentenced to 311 Months in Prison for Persuading, Inducing and Enticing Victims for ProstitutionRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 311 months in prison for persuading, inducing, and enticing women to travel in interstate commerce to engage in prostitution, U.S. Attorney Philip R. Sellinger announced.
Jose Torres, 46, was previously convicted of all four counts of a second superseding indictment following a six-day trial before U.S. District Judge Brian R. Martinotti, who imposed the sentence today in Newark federal court.
According to the documents filed in this case and the evidence at trial:
From May 2015 to October 2019, Torres persuaded, induced and enticed female victims, often commercial sex workers, to travel from out of state locations, including Canada and New York, to engage in prostitution with him. In each instance, Torres trolled prostitution websites and targeted out-of-state sex workers. He lured them to New Jersey with promises of large sums of payment. Once the women were in New Jersey, Torres refused to pay them. When the victims asked for payment, Torres became aggressive, often assaulting and raping them.
In addition to the prison term, Judge Martinotti sentenced Torres to 15 years of supervised release and imposed a $5,000 special assessment for trafficking.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and 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.
The government is represented by Bruce P. Keller, Special Counsel to the U.S. Attorney, in Newark.
Mercer County Man Admits to Multiple Narcotics Distribution and Firearms ChargesRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man today admitted possession of fentanyl and cocaine with intent to distribute and possession of a firearm in furtherance of drug trafficking offenses, U.S. Attorney Philip R. Sellinger announced today.
Jamal Wilson, aka “Vill,” 49, of Trenton, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to a superseding information charging him with one count of possession of fentanyl with intent to distribute, one count of possession of cocaine with intent to distribute, one count of possession of a firearm in furtherance of a drug trafficking crime, and two counts of unlawful possession of a firearm by a convicted felon.
In August 2022, Wilson and 12 other individuals were charged by criminal complaint with drug trafficking and firearms offenses.
According to documents filed in this case and statements made in court:
In July 2020, the FBI and other law enforcement agencies began an investigation of individuals engaged in unlawful drug-trafficking and firearms activities in the area of Garfield, Cleveland, and Logan avenues, a Trenton neighborhood known for high levels of narcotics activity and gun violence. The investigation revealed that Wilson was a significant drug trafficker of fentanyl and cocaine, including the area of the Grand Court Villas apartment building, East State Street and South Olden Avenue and the Garfield Avenue Playground. The investigation also revealed the scope of Wilson’s unlawful drug-trafficking activities, including Wilson’s customers and co-defendants. Law enforcement recovered from Wilson’s residence and his stash house 2,106 grams of cocaine, approximately 450 grams of cocaine base, 1,085 grams of fentanyl, four firearms, and two suppressors.
The charge of possession with intent to distribute fentanyl carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of life imprisonment, and a maximum fine of $10 million. The charge of possession with intent to distribute cocaine carries a statutory mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a maximum fine of $5 million. The charge of possession of a firearm in furtherance of a drug trafficking crime carries a mandatory minimum penalty of five years in prison, a maximum of life in prison, which must run consecutively to any term of imprisonment imposed on any other count, and a $250,000 fine. The charges of unlawful possession of a firearm by a convicted felon each carry a maximum of 15 years in prison, and a $250,000 fine. Sentencing is scheduled for Nov. 6, 2024.
The status of the charges filed against Wilson’s co-defendants is as follows:
Defendant
Theodore Meekins, aka “Meech”
- Pleaded guilty on Nov. 16, 2023, to a three-count information, which charged him with two counts of distributing and possessing with intent to distribute fentanyl and one count of unlawfully possessing a firearm as a convicted felon.
- Sentenced on March 20, 2024, to 165 months in prison, three years of supervised release.
Louis Williams, aka “Bake”
- Pleaded guilty on Nov. 8, 2023, to an information, which charged him with three counts of possessing with intent to distribute fentanyl.
- Sentenced on May 22, 2024, to 18 months in prison, three years of supervised release.
Clinton Rodriguez, aka “C-Rod”
- Pleaded guilty on June 13, 2023, to a one-count Information, which charged him with possessing with intent to distribute cocaine.
- Sentenced on April 24, 2024, to 15 months’ imprisonment and three years’ supervised release.
Rashied McKines
- Pleaded guilty on May 24, 2023, to one-count Information, which charged him with distributing and possessing with intent to distribute cocaine.
- Sentenced on March 19, 2024, to time served and three years’ supervised release.
Michael Williams, aka “Ice”
- Pleaded guilty on September 7, 2023, to a one-count Information, which charged him with possessing with intent to distribute cocaine.
- Sentenced on March 20, 2024, to three years’ probation.
Derrick Jiles
- Pleaded guilty on June 7, 2023, to a three-count Information, which charged him with three counts of possessing with intent to distribute fentanyl.
- Sentenced on April 17, 2024, to 21 months’ imprisonment and three years’ supervised release.
Dion Morris
- Pleaded guilty on November 30, 2023, to an Information, which charged him with four counts of distributing and possessing with intent to distribute cocaine.
- Sentenced on April 30, 2024, to 8 months’ imprisonment and three years’ supervised release.
Jerry Farmer
- Pleaded guilty on June 6, 2023, to a one-count Information, which charged him with possessing with intent to distribute fentanyl.
- Sentencing scheduled for September 17, 2024, at 11:00 a.m.
James Edwards
- Pleaded guilty on June 27, 2023, to a one-count Information, which charged him with possessing with intent to distribute fentanyl.
- Sentencing scheduled for June 20, 2024, at 1:00 p.m.
Alterrick Livingston
- Pleaded guilty on June 7, 2023, to a one-count Information, which charged him with unlawful possession of ammunition as a convicted felon.
- Sentenced on December 13, 2023, to time served and three years’ supervised release.
Kai Bowman, Jr.
- One count of possessing with intent to distribute heroin, remains pending on criminal complaint.
Glenn Moore
- One count of possessing with intent to distribute heroin, remains pending on criminal complaint.
These convictions and sentences are the result of an investigation by the Greater Trenton Safe Streets Task Force. Led by the FBI, the Task Force is comprised of various federal, state, and local law enforcement agencies, and its mission is to combine the resources and intelligence of the participating agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, Trenton Satellite Office, under the direction of Acting Special Agent in Charge Ross A. Marchetti; officers of the Trenton Police Department, under the direction of Director Steve Wilson; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to the conviction and sentencing.
The government is represented by Assistant U.S. Attorneys Ashley Super Pitts and Tracey Agnew of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The defendants for whom charges remain pending are presumed innocent, unless and until proven guilty.
wilson.sinformation.pdfFormer Newark Deputy Mayor and Director of Newark Department of Economic and Housing Development Admits Scheming with Two Newark Businessmen to Obtain BribesRead the Press Release
NEWARK, N.J. – A former city of Newark official who served as deputy mayor and director of the Newark Department Economic and Housing Development (DEHD) and served as executive vice president and chief real estate officer of the Newark Community Economic Development Corporation (NCEDC) today admitted conspiring with two Newark business owners to obtain corrupt payments intended to influence and reward him for assisting the business owners with the acquisition and redevelopment of various Newark-owned properties, U.S. Attorney Philip R. Sellinger announced.
Carmelo G. Garcia, 49, of Hoboken, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo to three counts of an information charging him with 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.
U.S. Attorney Philip R. Sellinger“As he admitted in court, Carmelo Garcia set up a scheme to receive cash and jewelry in exchange for using his influence in favor of private business interests, defrauding the people of Newark of their right to his honest services. In doing so, he violated the public trust in order to line his own pockets. 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 independent judgment is corrupted by greed.”
“We entrust public officials to act in the best interest of the people they serve, not to abuse their position for their own personal gain,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Today, Carmelo Garcia admitted he violated the citizens of Newark’s trust when as deputy mayor he accepted bribes to advance and influence private real estate interests. FBI Newark will continue to see that corrupt public officials face the punishment they deserve in the criminal justice system.”
“Carmelo Garcia abused his position of trust to oversee HUD grant money that was intended to provide housing assistance and improve the community in which he served,” Special Agent in Charge Vicky Vazquez, U.S. Department of Housing and Urban Development, Office of Inspector General, said. “He willfully devised an egregious kickback scheme resulting in the theft of critical taxpayer dollars, placing the integrity of HUD’s programs at risk, and violating the trust of the communities who rely on them. HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to profit by abusing HUD-funded programs.”
According to documents filed in the case and statements made in court:
From 2017 through April 2019, while serving as a high-level Newark official, and prior to that, as an executive officer of the NCEDC (now known as Invest Newark), Garcia sought and received significant monetary payments and other benefits from Frank Valvano Jr., Irwin Sablosky, and others 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 Valvano and Sablosky. These matters included obtaining preliminary designation letters for Valvano and Sablosky 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, Garcia also received jewelry, including multiple high-end watches and chains, from Valvano and Sablosky’s 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 Valvano and Sablosky. In one instance, in June 2018, Garcia, then the city’s acting deputy mayor and director of the city’s DEHD, received an envelope containing $25,000 in cash, supplied by Valvano through an intermediary, in the restroom of a New Jersey restaurant.
E-mails obtained by law enforcement further show the official actions, assistance, and influence Garcia provided in violation of his duties in exchange for the cash and other non-cash benefits he received from Valvano and Sablosky and the actions that Valvano and Sablosky were seeking from Garcia in his capacity as a Newark official and NCEDC executive for those benefits.
The honest services fraud conspiracy and honest services fraud charges in Counts One and Two each carry a maximum potential penalty of 20 years in prison. The bribery charge in Count Three 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. As part of Garcia’s guilty plea, he agreed to criminal forfeiture of the $25,000 corrupt cash payment and administrative/civil forfeiture of the jewelry that he obtained from the scheme. Sentencing is scheduled for Dec. 12, 2024.
Garcia originally was charged by indictment in October 2021 with Valvano, 56, of Florham Park, New Jersey, and Sablosky, 64, of Springfield, New Jersey. Valvano and Sablosky’s case is pending before Judge Arleo, and they are 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 Special Agent in Charge James E. Dennehy; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. 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 Vazquez, with the investigation leading to today’s plea.
The government is represented by Elaine K. Lou, Deputy Chief of the Criminal Division, and Katherine J. Calle and Edeli Rivera of the U.S. Attorney’s Office’s Special Prosecutions Division.
garcia.information.pdfFlorida Man Sentenced to 121 Months in Prison for Receipt of Child Pornography and Enticement of MinorRead the Press Release
CAMDEN, N.J. – A Florida man was sentenced today to 121 months in prison for receiving child pornography and enticement to travel for illicit sexual conduct, announced U.S. Attorney Philip R. Sellinger.
Andrew Drechsel, 35, of Saint Cloud, Florida, pleaded guilty on June 1, 2023, before Chief U.S. District Judge Renée M. Bumb to an information charging him with one count of receiving child pornography and one count of knowingly persuading, inducing, enticing and coercing a minor to travel interstate to engage in sexual activity for which the defendant can be charged with a crime. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From 2014 to Nov. 8, 2019, Drechsel lived in Hamden, Connecticut. His victim lived in New Jersey. On Nov. 8, 2019, law enforcement agents searched one of Drechsel’s phones and found images of child sexual abuse, including photos and videos of the victim when the victim was 14 and 15 years old. Drechsel admitted that he originally met the victim in 2014 through his activities in the parkour community as an “American Ninja Warrior.” Drechsel admitted texting the victim and discussing his plans to engage in sexual activity with the victim. At Drechsel's urging, the victim traveled across state lines in July 2015 so that Drechsel could have sexual relations with the victim.
In addition to the prison term, Judge Bumb sentenced Drechsel to 15 years of supervised release and ordered him to pay $100,000 in restitution to the victim.
U.S. Attorney Sellinger credited special agents of the FBI South Jersey Resident Agency, under the direction of Special Agent in Charge of FBI Philadelphia Special Agent in Charge Wayne A. Jacobs, with the investigation leading to the sentencing. He also thanked the Camden County Prosecutor’s Office, the Burlington County Prosecutor’s Office; the Cherry Hill Police Department; the U.S. Attorney’s Office for the District of Connecticut; special agents of the FBI New Haven Resident Agency; the Connecticut State’s Attorney’s Office, Hartford Judicial District; the Connecticut State’s Attorney’s Office, New Haven Judicial District; the Windsor Police Department; the Hamden Police Department; and special agents of the FBI Tampa Resident Agency.
The government is represented by Sara A. Aliabadi, Deputy Attorney in Charge of the Camden branch office, and Assistant U.S. Attorney Alisa Shver of the Camden branch office.
New York Man Charged in Connection with Transnational “Grandparent Scam” Operated from Dominican RepublicRead the Press Release
NEWARK, N.J. – A New York man is alleged to have acted as a courier for a Dominican Republic-based “grandparent scam” that targeted elderly Americans.
Victor Anthony Valdez, 39, of the Bronx, New York, was charged by a federal grand jury with one count of wire fraud conspiracy for his role in the scam. According to the indictment, unsealed today in Newark, the scam operated from call centers in the Dominican Republic, making phone calls to elderly American victims purporting to be the victim’s grandchild, an attorney representing the grandchild in criminal proceedings, court personnel or other persons associated with the legal system. Conspirators told the victims that their grandchildren had been arrested and needed cash for bail or other expenses. Once victims were convinced through lies and falsehoods, coconspirators instructed the victims to provide cash to couriers, including Valdez, who went to victims’ homes to pick up the money.
While acting as a courier for the scam between August 2020 and August 2021, Valdez is alleged to have retrieved, or attempted to retrieve, tens of thousands of dollars from defrauded victims at their homes in New York and New Jersey.
U.S. Attorney Philip R. Sellinger“The alleged perpetrators in these scams – including this defendant – target our vulnerable senior population. They count on the grandparents’ love and devotion to their families in order to convince them to put up money. As alleged in this indictment, the defendant today worked as a courier, traveling to the homes of the scam victims to pick up the money. My office will protect the rights of all victims, and we will relentlessly prosecute those who allegedly target the vulnerable to cheat them out of their savings.”
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable consumers, whether located in the United States or abroad.”
“Mr. Valdez knowingly preyed upon the elderly for his own gain,” Inspector General Gail S. Ennis for the Social Security Administration (SSA) said. “We appreciate our law enforcement partners joining us in investigating and prosecuting these complex, international scams aimed at defrauding elderly Americans, many of whom rely on SSA benefits to make ends meet.”
If convicted of the offense in the indictment, Valdez faces a maximum of 20 years in prison and a maximum fine of $250,000.
Social Security Administration’s Office of the Inspector General and the Department of Homeland Security’s Homeland Security Investigations investigated the case.
Assistant U.S. Attorney Carolyn Silane for the District of Jersey and Trial Attorney Joshua Ferrentino of the Civil Division's Consumer Protection Branch and are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime (OVC), can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through OVC, which can be reached at www.ovc.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New York Man Charged in Connection with Transnational “Grandparent Scam” Operated from Dominican RepublicRead the Press Release
A federal grand jury charged a New York man for having acted as a courier for a Dominican Republic-based “grandparent scam” that targeted elderly Americans.
Victor Anthony Valdez, 39, of the Bronx, was charged with one count of wire fraud conspiracy for his role in the scam. According to the indictment, unsealed today in Newark, New Jersey, the scam operated from call centers in the Dominican Republic, making phone calls to elderly American victims purporting to be the victim’s grandchild, an attorney representing the grandchild in criminal proceedings, court personnel or other persons associated with the legal system. Coconspirators told the victims that their grandchildren had been arrested and needed cash for bail or other expenses. Once victims were convinced through lies and falsehoods, coconspirators instructed the victims to provide cash to couriers, including Valdez, who went to victims’ homes to pick up the money.
While acting as a courier for the scam between August 2020 and August 2021, Valdez is alleged to have retrieved, or attempted to retrieve, tens of thousands of dollars from defrauded victims at their homes in New York and New Jersey.
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable consumers, whether located in the United States or abroad.”
“The alleged perpetrators in these scams — including this defendant — target our vulnerable senior population,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “They count on the grandparents’ love and devotion to their families in order to convince them to put up money. As alleged in this indictment, the defendant today worked as a courier, traveling to the homes of the scam victims to pick up the money. My office will protect the rights of all victims, and we will relentlessly prosecute those who allegedly target the vulnerable to cheat them out of their savings.”
“Mr. Valdez knowingly preyed upon the elderly for his own gain,” said Inspector General Gail S. Ennis for the Social Security Administration (SSA). “We appreciate our law enforcement partners joining us in investigating and prosecuting these complex, international scams aimed at defrauding elderly Americans, many of whom rely on SSA benefits to make ends meet.”
If convicted, Valdez faces a maximum penalty of 20 years in prison and a maximum fine of $250,000.
SSA’s Office of the Inspector General and Homeland Security Investigations investigated the case.
Trial Attorney Joshua Ferrentino of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Carolyn Silane for the District of Jersey are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime (OVC), can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through OVC, which can be reached at www.ovc.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Gang Member Sentenced to Seven Years in Prison for Racketeering and Firearms ChargesRead the Press Release
NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang was sentenced today to 84 months in prison for his role in a racketeering conspiracy and for possessing firearms and ammunition as a convicted felon, U.S. Attorney Philip R. Sellinger announced.
Amir Warden, aka “Stamps,” aka “Killa,” 31, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to a superseding information that charged him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and possession of firearms and ammunition by a convicted felon. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2015 through Sept. 22, 2022, Warden was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere. Warden held a leadership role within the enterprise and conspired with other members and associates to distribute controlled substances. On Aug. 19, 2019, he distributed heroin. On Sept. 29, 2022, Warden, a convicted felon, knowingly possessed three loaded firearms, three high-capacity drum magazines, and approximately 1,300 rounds of assorted ammunition.
In addition to the prison term, Judge Wigenton sentenced Warden to three 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; special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Ross A. Marchetti; investigators of the U.S. Marshals Service, under the direction of Marshal Juan Mattos; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Newark Police Department, under the direction of Public Safety Director Fritz Fragé; the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the East Orange Police Department, under the direction of Chief Phyllis L. Bindi; the Elizabeth Police Department, under the direction of Police Director Earl J. Graves; the Edison Police Department, under the direction of Chief of Police Tom Bryan; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; the Spotswood Police Department, under the direction of Chief Philip Corbisiero; and the North Carolina State Bureau of Investigation Fugitive and Missing Person Task Force, which includes members of the FBI, with the investigations leading to the charges in the Rollin 60’s Neighborhood Crips investigation.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division and Assistant U.S. Attorney Jake Nasar of the Organized Crime/Gangs Unit.
New York Man Sentenced to 59 Months in Prison on Fentanyl ChargesRead the Press Release
CAMDEN, N.J. – A New York man was sentenced today to 59 months in prison for conspiracy to distribute and possess with the intent to distribute fentanyl, U.S. Attorney Philip R. Sellinger announced.
Edgar Jesus Avila Alvarado, 46, of the Bronx, New York, previously pleaded guilty before Chief U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute a mixture and substance containing a detectable amount of fentanyl. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case as well as statements made in court:
In July 2022, law enforcement observed Avila Alvarado exit a residence in New York City carrying a duffle bag and enter a vehicle. After conducting a lawful vehicle stop, law enforcement recovered approximately three kilograms of fentanyl within the bag and learned that Avilia Alvarado was on route to New Jersey to distribute the controlled substance to another individual. Shortly thereafter, law enforcement recovered an additional four kilograms of fentanyl inside of Avila Alvarado’s residence also located in New York City. In total, law enforcement recovered nearly 7.4 kilograms of fentanyl from Avila Alvarado.
In addition to the prison term, Judge Bumb sentenced Avila Alvarado to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration’s New York Division, under the direction of Special Agent in Charge SAC Frank A. Tarentino III, with the investigation leading to the sentencing.
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 New York OCDETF Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; IRS - Criminal Investigation; U.S. Customs and Border Protection; the U.S. Marshals Service; New York National Guard; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorney Vincent D. Romano of the OCDETF/Narcotics Unit in Newark.
Four Paterson Gang Members Charged with Drug Trafficking Conspiracy and One Charged for Attempted Robbery of Postal EmployeeRead the Press Release
NEWARK, N.J. – Four Passaic County, New Jersey, men have been charged in connection with their respective roles in a Paterson neighborhood street gang known as “100k” that distributed fentanyl, heroin, and cocaine, U.S. Attorney Philip R. Sellinger announced today.
Jazmeir Reyes, aka “Baby Joe,” aka “Joe,” 19, Kyzeik Robinson, aka “Doo Doo,” aka “King Sparks,” aka “Sparks,” 18, Michael Davis, aka “Baby Three,” 27, and Jacim Pitts, 24, all of Paterson, New Jersey, are charged by complaint with conspiracy to distribute fentanyl, heroin, and cocaine. Reyes is charged in a separate complaint with attempted Hobbs Act robbery, assaulting or impeding certain United States officers or employees, and brandishing a firearm during and in relation to a crime of violence, in connection with his holding a U.S. Postal Service employee at gun point.
Davis and Pitts appeared before U.S. Magistrate Judge James B. Clark III in Newark federal court and were detained. Reyes is scheduled to make his initial appearance on June 21, 2024. Robinson remains at large.
According to documents filed in this case and statements made in court:
From January 2022, law enforcement has been investigating the members and associates of a neighborhood street gang known as “100k” or “Down the Hill,” which operates primarily in the area of North Main and Jefferson streets in the First Ward of Paterson. Reyes, Robinson, and Davis are all known members of 100k and Pitts is a member of “So Icey,” a neighborhood street gang closely aligned with the 100k gang.
From August 2023 to April 2024, law enforcement used undercover officers to conduct controlled purchases of narcotics from Reyes and the other members and associates of 100k and seized in excess of 100 grams of fentanyl as well as quantities of heroin and cocaine.
On July 28, 2023, in Paterson, Reyes held a mail carrier at gun point in an attempt to steal the mail carrier’s arrow key, which is a key used to gain access to mailboxes within a certain geographic area or postal route.
The count of conspiracy charged in the complaint carries a mandatory minimum term of five years, a maximum of 40 years in prison, and a fine of at least $5 million.
On each of the counts of attempted Hobbs Act robbery and assaulting or impeding certain United States officers or employees, Reyes faces a maximum penalty of 20 years in prison and up to a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. On the count of brandishing a firearm in connection with a crime of violence, Reyes faces a mandatory minimum term of seven years and a maximum term of life imprisonment, which must run consecutively to any other prison sentence imposed, and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen; the Passaic County Sheriff’s Office, under the direction of Acting Sheriff Gary Giardina; the Jersey City Police Department, under the direction of Director of Public Safety James Shea; and the Paterson Police Department, under the direction of Officer In Charge Isa Abbassi with the investigation leading to today’s charges.
This case is part of the Paterson Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Bergen County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
The government is represented by Assistant U.S. Attorney Jake A. Nasar of the Organized Crime/Gang Unit in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
reyesetal.complaint.pdf reyes.complaint.pdfFour Members of Notorious Cybercrime Group ‘FIN9’ Charged for Roles in Attacking U.S. CompaniesRead the Press Release
NEWARK, N.J. – An indictment was unsealed today charging four Vietnamese nationals for their involvement in a series of computer intrusions that caused victim companies to collectively suffer more than $71 million in losses, U.S. Attorney Philip R. Sellinger announced.
According to the indictment, Ta Van Tai, aka “Quynh Hoa,” aka “Bich Thuy;” Nguyen Viet Quoc, aka “Tien Nguyen;” Nguyen Trang Xuyen; and Nguyen Van Truong, aka “Chung Nguyen,” were members of a sophisticated international cybercrime group known as “FIN9.” From at least May 2018 through October 2021, the defendants hacked the computer networks of victim companies throughout the United States and used their access to steal or attempt to steal non-public information, employee benefits, and funds. The defendants caused their victims to suffer more than $71 million in losses.
U.S. Attorney Philip R. Sellinger“The FIN9 defendants were prolific international hackers who, for years, allegedly used phishing campaigns, supply chain attacks and other hacking methods to steal millions from their victims. They did all of this while hiding behind keyboards, VPNs, and fake identities, and even then, the Department of Justice found them. My office remains committed to its pursuit of justice for victims, and cybercriminals everywhere should take notice.”
“Cyber actors cloak themselves in the virtual world, hiding in a space most people can't see and don't understand,” FBI – Newark Special Agent in Charge James E. Dennehy said. “However smart these hackers believe they are at disguising themselves, these members of the FIN9 group couldn’t conceal their exfiltration of data from their victims’ companies. FBI Newark’s Cyber Task Force and our law enforcement partners use precision and innovative techniques to expose these people for what they are – simple thieves. We ask any business or company facing a similar attack to reach out to us immediately to protect your systems and to stop these criminals from moving on to the next victim.”
According to documents filed in this case and statements made in court:
Members of FIN9, including the defendants, obtained unauthorized access to the computer networks of victim companies through phishing campaigns or other methods, such as supply chain attacks – a type of cyberattack that seeks to damage an organization by targeting the computer networks of trusted third-party vendors who offer services or software vital to the supply chain. After gaining access to their victims’ networks, FIN9 members, including the defendants, used that access to exfiltrate or attempt to exfiltrate non-public information, employee benefits, and/or funds. For example, the defendants accessed employee benefit rewards programs maintained by their victims and re-directed digital employee benefits, such as gift cards, to accounts controlled by defendants. The defendants also stole gift card information stored on the computer networks of certain victims.
The defendants additionally stole personally identifiable information and credit card information associated with employees and customers of their victim companies. In an effort to hide their own identities, the defendants would, at times, use that information in furtherance of the conspiracy by, for example, registering online accounts at cryptocurrency exchanges or server hosting companies in the names of individuals whose identities were stolen. Tai, Xuyen, and Truong sold stolen gift cards to third parties, including through an account registered with a fake name on a peer-to-peer cryptocurrency marketplace, in order to conceal and disguise the source of the stolen money.
Tai, Quoc, Xuyen, and Truong are charged with one count of conspiracy to commit fraud, extortion, and related activity in connection with computers; one count of conspiracy to commit wire fraud; and two counts of intentional damage to a protected computer. If convicted, they face up to five years in prison for the conspiracy to commit fraud, extortion, and related activity in connection with computers; up to 20 years in prison for the conspiracy to commit wire fraud; and up to 10 years in prison on each count of intentional damage to a protected computer. Tai, Xuyen, and Truong were charged with one count of conspiracy to commit money laundering, which carries a mandatory maximum penalty of 20 years in prison. Tai and Quoc were also charged with one count of aggravated identity theft, which carries a mandatory consecutive term of two years in prison, and one count of conspiracy to commit identity fraud, which carries a maximum penalty of 15 years in prison.
U.S. Attorney Sellinger credited the FBI Newark’s Cyber squad, under the direction of Special Agent in Charge James E. Dennehy in Newark. He also thanked the FBI Little Rock Cyber squad, under the direction of Special Agent in Charge Alicia D. Corder.
The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Vinay S. Limbachia of the U.S. Attorney’s Cybercrime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
fin9.indictment.pdfBurlington County Man Admits Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Burlington County, New Jersey, man today admitted possessing multiple images and videos of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Dennis Nerolich, 68, of Burlington, New Jersey, and formerly of New Egypt, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with possession of child pornography.
According to documents filed in this case and statements made in court:
From March 2016 to May 1, 2018, Nerolich possessed multiple images and videos of child sexual abuse. Nerolich received the images and videos from his roommate or landlord at the time, Frank Maile.
On Sept. 6, 2023, Maile pleaded guilty before Judge Martinotti to Count Four of a five-count indictment, charging him with travelling in foreign commerce and engaging in illicit sexual conduct, that is, a sexual act with a person under 18 years of age, a commercial sex act, and production of child pornography. Maile is scheduled to be sentenced on June 27, 2024.
The charge of possession of child pornography carries a statutory maximum of 10 years in prison, and a $250,000 fine. Sentencing is scheduled for Nov. 6, 2024.
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 guilty plea.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Camden.
nerolich.information.pdfReal Estate Investor Pleads Guilty to $54.7M Mortgage Fraud ConspiracyRead the Press Release
TRENTON, N.J. – A New Jersey man pleaded guilty today to engaging in an extensive, multi-year conspiracy to fraudulently obtain over $54.7 million in loans and to fraudulently acquire multifamily and commercial properties.
According to court documents, between 2016 and 2022, Aron Puretz, 53, conspired with others to deceive lenders into issuing multifamily and commercial mortgage loans. Puretz and his conspirators provided the lenders with fictitious documents, including purchase contracts with inflated purchase prices, fake financial statements, and other fraudulent documents. Puretz was an employee of Apex Equity Group, a real estate investment and advisory firm, and one of the owners of Maple Lawn in Eureka, Illinois, and Big Country Chateau in Little Rock, Arkansas, both multifamily properties, and Troy Technology Park in Troy, Michigan, a commercial property.
In February 2017, Maple Lawn was acquired for $4.1 million. However, Puretz and his conspirators from Apex Equity Group utilized the identity of a conspirator to present a lender and Freddie Mac with a purchase and sale contract for $5.8 million and other fraudulent documents. On Feb. 17, 2017, a title and settlement company based in Lakewood, New Jersey, performed two closings, one for the true $4.1 million sales price and another for the fraudulent $5.8 million sales price presented to the lender. Part of the conspiracy was to create a nonprofit entity, JPC Charities, for the purpose of receiving tax-exempt status for the properties owned by Puretz and co-conspirators. Puretz and his conspirators provided false statements to the city of Eureka, Illinois, to receive a property tax exception.
In July 2019, Puretz and his conspirators acquired Big Country Chateau. However, Puretz knew the lender and Freddie Mac would not approve him as an owner, and used the identity of an associate instead of his own. Puretz hid his ownership and involvement with the property management company from the Department of Housing and Urban Development and other federal and state agencies.
In September 2020, Troy Technology Park was acquired for $42.7 million. However, Puretz and his co-conspirators presented the lender with a fraudulent purchase and sale contract for $70 million. To support the inflated purchase price, Puretz and his conspirators submitted to the lender and appraiser a fraudulent letter of intent to purchase the property from another party for $68 million and other fraudulent documents. To conceal the fraudulent nature of the transaction, Puretz and his conspirators arranged for a short-term $30 million loan, which was used to make it appear that they had the funds needed to close on the loan. On Sept. 25, 2020, a title and settlement company based in Lakewood, New Jersey, performed two closings, one for the true $42.7 million sales price and another for the fraudulent $70 million sales price presented to the lender.
Puretz pleaded guilty to one count of conspiracy to commit wire fraud affecting a financial institution. He is scheduled to be sentenced on Oct. 30, 2024, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Philip R. Sellinger for the District of New Jersey; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Inspector General Brian M. Tomney of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); and Postal Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.
FHFA-OIG and USPIS are investigating the case.
Assistant U.S. Attorney Martha Nye for the District of New Jersey and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section are prosecuting the case.
Real Estate Investor Pleads Guilty to $54.7M Mortgage Fraud ConspiracyRead the Press Release
A New Jersey man pleaded guilty today to engaging in an extensive, multi-year conspiracy to fraudulently obtain over $54.7 million in loans and to fraudulently acquire multifamily and commercial properties.
According to court documents, between 2016 and 2022, Aron Puretz, 53, conspired with others to deceive lenders into issuing multifamily and commercial mortgage loans. Puretz and his co-conspirators provided the lenders with fictitious documents, including purchase contracts with inflated purchase prices, fake financial statements, and other fraudulent documents. Puretz was an employee of Apex Equity Group, a real estate investment and advisory firm, and one of the owners of Maple Lawn in Eureka, Illinois, and Big Country Chateau in Little Rock, Arkansas, both multifamily properties, and Troy Technology Park in Troy, Michigan, a commercial property.
In February 2017, Maple Lawn was acquired for $4.1 million. However, Puretz and his co-conspirators from Apex Equity Group utilized the identity of a co-conspirator to present a lender and Freddie Mac with a purchase and sale contract for $5.8 million and other fraudulent documents. On Feb. 17, 2017, a title and settlement company based in Lakewood, New Jersey, performed two closings, one for the true $4.1 million sales price and another for the fraudulent $5.8 million sales price presented to the lender. Furthermore, part of the conspiracy was to create a nonprofit entity, JPC Charities, for the purpose of receiving tax-exempt status for the properties owned by Puretz and co-conspirators. Puretz and co-conspirators provided false statements to the city of Eureka, Illinois, to receive a property tax exception.
In July 2019, Puretz and his co-conspirators acquired Big Country Chateau. However, Puretz knew the lender and Freddie Mac would not approve him as an owner, and used the identity of an associate instead of his own. Furthermore, Puretz hid his ownership and involvement with the property management company from the Department of Housing and Urban Development and other federal and state agencies.
In September 2020, Troy Technology Park was acquired for $42.7 million. However, Puretz and his co-conspirators presented the lender with a fraudulent purchase and sale contract for $70 million. Additionally, to support the inflated purchase price, Puretz and his co-conspirators submitted to the lender and appraiser a fraudulent letter of intent to purchase the property from another party for $68 million and other fraudulent documents. To conceal the fraudulent nature of the transaction, Puretz and his co-conspirators arranged for a short-term $30 million loan, which was used to make it appear that they had the funds needed to close on the loan. On Sept. 25, 2020, a title and settlement company based in Lakewood, New Jersey, performed two closings, one for the true $42.7 million sales price and another for the fraudulent $70 million sales price presented to the lender.
Puretz pleaded guilty to one count of conspiracy to commit wire fraud affecting a financial institution. He is scheduled to be sentenced on Oct. 30 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Philip R. Sellinger for the District of New Jersey; Inspector General Brian M. Tomney of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); and Postal Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.
FHFA-OIG and USPIS are investigating the case.
Trial Attorney Siji Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Martha Nye for the District of New Jersey are prosecuting the case.