District of New Jersey

NEWARK, N.J. – An Essex County man was convicted of being a felon in possession of ammunition, Attorney Philip R. Sellinger announced today.

Lamar McCullough, 30, of Essex County, was convicted by a federal jury on June 7, 2024, of unlawful possession of ammunition by a convicted felon following a trial before U.S. District Judge Katherine Hayden in Newark federal court.

According to documents filed in this case and statements made in court:

On March 5, 2021, members of the Newark Police Department responded to a report of a shooting victim at University Hospital. Surveillance video recorded at 7:22 p.m. showed McCullough shoot a victim four times at close range in the middle of Isabella Avenue in Newark. Four 9-millimeter shell casings were recovered from the area where McCullough discharged the firearm. 

The felon in possession of ammunition charge carries a maximum sentence of 10 years in prison and a maximum fine of $250,000. Sentencing has been scheduled for October 8, 2024.

U.S. Attorney Philip R. Sellinger credited Newark Police Department, under the direction of Public Safety Director Fritz Fragé, the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation.

The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Department of Homeland Security – Homeland Security Investigations, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

The government is represented by Assistant U.S. Attorneys Jessica Ecker of the Healthcare Fraud Unit and Katherine Calle of the Special Prosecutions Division.

NEWARK, N.J. – W City Medical of the Upper East Side PLLC, Summit Medical Group P.A., Summit Health Management LLC and Village Practice Management Company LLC, which collectively do business as “CityMD,” and manage and operate approximately 177 urgent care practices in New Jersey and New York, have agreed to pay $12.04 million to resolve allegations that they violated the False Claims Act by submitting or causing the submission of false claims for payment for COVID-19 testing to a Health Resources & Services Administration (HRSA) program for uninsured patients.

HRSA’s COVID-19 Claims Reimbursement to Health Care Providers and Facilities for Testing, Treatment, and Vaccine Administration for the Uninsured Program (the “Uninsured Program) provided claims reimbursement to health care providers, generally at Medicare rates, for testing uninsured individuals for COVID-19, treating uninsured individuals with a COVID-19 diagnoses, and administering COVID-19 vaccines to uninsured individuals.

The Justice Department alleges that, from Feb. 4, 2020, through April 5, 2022, CityMD knowingly submitted or caused to be submitted false claims for payment for COVID-19 testing to the Uninsured Program for individuals who had health insurance coverage when CityMD administered those tests. The United States contends that CityMD did not adequately confirm whether those individuals had health insurance coverage before submitting their claims to the Uninsured Program, including but not limited to certain individuals for whom CityMD had health insurance cards on file. The Justice Department further contends that CityMD caused outside laboratories to submit false claims for COVID-19 testing to the Uninsured Program in connection with individuals who had health insurance coverage by issuing requisition forms erroneously indicating that patients were uninsured. 

CityMD received credit in the settlement under the department’s guidelines for taking voluntary disclosure, cooperation, and remediation into account in False Claims Act cases. CityMD cooperated with the United States’ investigation by, among other things, voluntarily contracting with a third party to assist the United States in determining the amount of the losses the United States contends were caused by claims submitted by CityMD to the Uninsured Program for patients who had health insurance as described above.

“Uninsured Americans who were at risk from COVID-19 were covered by emergency funding programs that made available to them the testing, vaccines and treatments that they needed. The alleged misuse of these funds is something we cannot and will not tolerate. Today’s settlement ensures that the money that was obtained inappropriately will be returned to the government.”

U.S. Attorney Philip R. Sellinger

“The Uninsured Program provided critical financial support for COVID-19 related testing and treatment for uninsured Americans during the height of the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division.  “Today’s settlement reflects the Department’s commitment to ensuring that the pandemic relief programs created by Congress were used as intended.”

This civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Steven Kitzinger, a patient of CityMD. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.  The qui tam case is captioned United States ex rel. Kitzinger v. City Practice Group of New York LLC d/b/a CityMD, Civ. No. 2:20-cv-20111-SRC-CLW (D.N.J.).  Mr. Kitzinger will receive $2,046,308 as his share of the recovery. 

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of New Jersey, with assistance from the U.S. Department of Health and Human Services Office of Inspector General. 

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the federal government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit www.justice.gov/coronavirus.

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 (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Tips and complaints about other types of potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

Trial Attorney Daniel Meyler of the Civil Division’s Fraud Section and Assistant U.S. Attorney Mark Orlowski for the District of New Jersey handled this matter.

The claims resolved by the settlement are allegations only. There has been no determination of liability.

citymd.settlement.pdf

NEWARK, N.J. – A Brooklyn woman has been charged with possession of stolen mail in connection with stealing over $167,000 in funds from her one-time employer, U.S. Attorney Philip R. Sellinger announced today.

Kathryn Mountain, 36, of Brooklyn, New York, is charged by complaint with one count of possession of stolen mail. She made her initial appearance before U.S. Magistrate Judge Michael A. Hammer on June 6, 2024, and was released on an unsecured bond of $100,000.

According to documents filed in this case and statements made in court:

From December 2022 through July 2023, Mountain stole and fraudulently obtained mail that contained checks from her former employer and fraudulently deposited those checks into her own bank account. Mountain executed this scheme by first placing a mail hold on her former employer’s mail, which caused the mail to be held at a Newark post office until retrieved by a representative from the company instead of the mail being sent directly to the company. Mountain went to the Newark post office, represented herself as an active member of the company although she had previously been fired, and collected the company’s mail. Mountain then deposited the checks she found in the stolen mail – which had been mailed by the company’s clients to the company as payment for services – into her business bank account.

Mountain attempted to deposit $272,940 in stolen funds; the alleged actual loss caused by Mountain was $167,119.

The count of possession of stolen mail is punishable by a maximum sentence of five years in prison and a fine of up to $250,000.

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Javon Henry 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.

mountain.complaint.pdf

CAMDEN, N.J. – A Texas man has been charged with a federal hate crime and for making interstate threats against the employees of a Sikh nonprofit organization.

Bhushan Athale, 48, of Dallas, was charged by complaint with one count of interfering with federally protected activities through the threatened use of a dangerous weapon and one count of transmitting an interstate threat to injure another person.

According to the criminal complaint:

On Sept. 17, 2022, Athale called the main number of an organization that advocates for the civil rights of Sikh individuals within the United States. Over the next hour, Athale left seven voicemails expressing extreme hatred toward Sikh individuals working at this same organization and threatening to injure or kill these individuals with a razor. Athale’s voicemails, which were filled with violent imagery and obscenity, contained references to places, people and tenets that are particularly significant within the Sikh religion. Among other things, Athale stated his intention to “catch” the Sikhs at Organization 1, forcibly “shave” the “top and bottom hair” of these individuals, use a “razor” to forcibly “cut” these individuals’ hair and “make” them bald, forcibly “make” them smoke and eat tobacco and “show [them] the heaven.”

In March, Athale again called the same Sikh organization and left two more voicemails. In these voicemails, Athale again used violent imagery to express his hatred toward Sikhs as well as Muslims, suggesting, among other things, that the Indian Government and Mumbai Police should “catch them and beat their ass” and “f*ck these rascals’ mothers.” 

The investigation reflects that Athale has a long history of making religious-based comments and threats, such as when he previously used a professional networking site to express to a former co-worker that he “hate[d] Pakistan” and “hate[d] Muslims,” and he told the co-worker “I hate you, I just don’t know how to kill your whole family including you?  Tell me???  I will figure it out […] Probably I will hire a Jew, they will be most happy.”

Athale faces a maximum penalty of 10 years in prison for the interfering with federally protected activities charge and a maximum penalty of five years in prison for the transmitting an interstate threat charge. Both charges also carry a penalty of up to a $250,000 fine. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Special Agent in Charge Wayne A. Jacobs of the FBI Philadelphia Field Office made the announcement.

The FBI Philadelphia Field Office investigated the case.  

Assistant U.S. Attorneys Sara A. Aliabadi and Jason M. Richardson for the District of New Jersey and Trial Attorney Eric Peffley of the Justice Department’s Civil Rights Division 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.

athale.complaint.pdf

A Texas man has been charged with a federal hate crime and for making interstate threats against the employees of a Sikh nonprofit organization.

Bhushan Athale, 48, of Dallas, was charged by complaint with one count of interfering with federally protected activities through the threatened use of a dangerous weapon and one count of transmitting an interstate threat to injure another person.

According to the criminal complaint, on or about Sept. 17, 2022, Athale called the main number of an organization that advocates for the civil rights of Sikh individuals within the United States. Over the next hour, Athale left seven voicemails expressing extreme hatred toward Sikh individuals working at this same organization and threatening to injure or kill these individuals with a razor. Athale’s voicemails, which were filled with violent imagery and obscenity, contained references to places, people and tenets that are particularly significant within the Sikh religion. Among other things, Athale stated his intention to “catch” the Sikhs at the organization, forcibly “shave” the “top and bottom hair” of these individuals, use a “razor” to forcibly “cut” these individuals’ hair and “make” them bald, forcibly “make” them smoke and eat tobacco and “show [them] the heaven.”

In March, Athale again called the same Sikh organization and left two more voicemails. In these voicemails, Athale again used violent imagery to express his hatred toward Sikhs as well as Muslims, suggesting, among other things, that the Indian Government and Mumbai Police should “catch them and beat their ass” and “f*ck these rascals’ mothers.” 

The investigation reflects that Athale has a long history of making religious-based comments and threats, such as when he previously used a professional networking site to express to a former co-worker that he “hate[d] Pakistan” and “hate[d] Muslims,” and he told the co-worker “I hate you, I just don’t know how to kill your whole family including you?  Tell me???  I will figure it out […] Probably I will hire a Jew, they will be most happy.”

If convicted, Athale faces a maximum penalty of 10 years in prison for interfering with federally protected activities and a maximum penalty of five years in prison for transmitting an interstate threat. Both charges also carry a penalty of up to a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Special Agent in Charge Wayne A. Jacobs of the FBI Philadelphia Field Office made the announcement.

The FBI Philadelphia Field Office investigated the case.   

Assistant U.S. Attorneys Sara A. Aliabadi and Jason M. Richardson for the District of New Jersey and Trial Attorney Eric Peffley of the Justice Department’s Civil Rights Division 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.

NEWARK, N.J. – An Indian national admitted his role in a conspiracy to defraud various telephone providers and insurance companies of millions of dollars by using stolen or fake identities to submit fraudulent claims for replacement cellular devices and then reselling those devices outside the United States, U.S. Attorney Philip R. Sellinger announced today.

Sandeep Bengera, 36, of Newark, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to a two-count indictment charging him with one count of conspiracy to commit mail fraud and one count of conspiracy to commit interstate transfer of stolen property.

According to documents filed in this case and statements made in court:

From June 2013 through June 2019, Bengera was involved in a widespread scheme to defraud cellular telephone provider and insurance companies using the U.S. mail system, as well as other third-party mail carriers. Bengera and his conspirators used stolen and fake identities to submit false claims of lost, stolen or damaged cellular telephones, as well as other devices, in order to obtain replacement devices. Bengera and his conspirators maintained a network of mailboxes and storage units across the United States, including in New Jersey, where the replacement devices would be shipped and then held before being sold to third parties outside the United States. Bengera admitted the total value of the replacement devices was more than $9 million.

The charge of conspiracy to commit mail fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The charge of conspiracy to commit interstate transfer of stolen goods carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Oct. 10, 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 Assistant Director in Charge James Smith in New York; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; officers with Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Francis J. Russo; and the U.S. Department of State’s Diplomatic Security Service, New York Field Office, under the direction of Acting Special Agent in Charge Kelly Bishop, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Rachelle M. Navarro of the U.S. Attorney’s Office’s Criminal Division in Newark.

bengera.indictment.pdf

NEWARK, N.J.  The ex-husband of one of the stars of the Bravo television show “The Real Housewives of New Jersey,” was convicted today on charges of planning an assault of his ex-wife’s current husband in exchange for a lavish wedding reception, U.S. Attorney Philip R. Sellinger announced.

Thomas Manzo, 59, of Franklin Lakes, New Jersey, was convicted after a two and a half week trial before U.S. District Judge Susan D. Wigenton in Newark federal court on one count of committing a violent crime in aid of racketeering activity, one count of conspiracy to commit a violent crime in aid of racketeering resulting in serious bodily injury, and one count of falsifying and concealing documents related to a federal investigation.

“Thomas Manzo hired a soldier in the Lucchese Crime Family to carry out a vicious assault on his ex-wife’s then-boyfriend, causing the victim to suffer significant injuries,” U.S. Attorney Philip R. Sellinger said. “As a unanimous jury found, Manzo committed multiple offenses by providing a free wedding in exchange for the assault and then concealing documents relating to that wedding. He will now face just punishment for his crimes.”

“Manzo now faces a lengthy federal prison sentence because he chose to hire a ‘made man’ to carry out an assault on his ex-wife’s boyfriend,” FBI – Newark Special Agent in Charge James E. Dennehy said. “He then gave away a free wedding and hid the documents to cover it up. The facts and circumstances in this case read like something from a bad TV crime drama, but the evidence and testimony presented in court prove it was reality. We truly hope the victims in this investigation are able to move on with their lives and forget about Manzo and his criminal mafia bedfellows.”

According to documents filed in this case and the evidence at trial:

In the spring of 2015, Manzo hired Lucchese Crime Family soldier John Perna to assault his ex-wife’s then-boyfriend in exchange for a free wedding reception for Perna held at an upscale venue Manzo owned. Perna, who is a “made man” in the Lucchese Crime Family with his own crew, worked with his associates to plan and carry out the violent assault, which took place on July 18, 2015. In exchange for committing the assault, Perna held a lavish wedding reception at Manzo’s venue for free. During the investigation of the assault, Manzo concealed and falsified documents related to the Perna wedding in response to a grand jury subpoena.

The violent crime in aid of racketeering activity count carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The conspiracy to commit violent crime in aid of racketeering carries a maximum potential penalty of three years in prison, and the falsifying and concealing records related to a federal investigation charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for October 15, 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 charges and arrest. He also thanked special agents of the U.S. Department of Labor, Office of the Inspector General, officers of the Lyndhurst Police Department, officers of the Totowa Police Department, investigators of the Monmouth County Prosecutors Office, investigators of the New Jersey State Police, and the Passaic County Prosecutor’s Office for their assistance.

The government is represented by Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark and Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.

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NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the U.S. Justice Department announced today that they will monitor compliance with federal voting rights laws in Union County, New Jersey, for the June 4 primary election.

The Justice Department will assign federal observers to monitor the election in Union County to observe the county’s compliance with the Voting Rights Act. In 2023, a federal court approved a consent decree to resolve the department’s claims under Sections 203 and 208 of the Voting Rights Act regarding the availability of election assistance and materials in Spanish for Spanish-speaking voters with limited English proficiency in Union County. Section 203 requires that certain jurisdictions, including Union County, provide election materials and assistance in other languages, in addition to English. Section 208 provides a right for voters who need assistance with voting – due to inability to read or write, blindness or disability – to receive that assistance from the person of their choice, with certain limited exceptions. The consent decree authorizes federal observers to monitor election day activities in the county’s polling places.

The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities across the country. In addition, the department also deploys federal observers from the Office of Personnel Management, when authorized by federal court order. 

The Civil Rights Division’s Voting Section, working with U.S. Attorneys’ Offices, enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Acts and the Uniformed and Overseas Citizens Absentee Voting Act.

More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931. 

Individuals may also contact the U.S. Attorney’s Office for the District of New Jersey at https://www.justice.gov/usao-nj/civil-rights-enforcement or by telephone at 1-855-281-3339.

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The Justice Department announced today that they will monitor compliance with federal voting rights laws in Union County, New Jersey, for the June 4 primary election.

The Justice Department will assign federal observers to monitor the election in Union County to observe the county’s compliance with the Voting Rights Act. In 2023, a federal court approved a consent decree to resolve the department’s claims under Sections 203 and 208 of the Voting Rights Act regarding the availability of election assistance and materials in Spanish for Spanish-speaking voters with limited English proficiency in Union County. Section 203 requires that certain jurisdictions, including Union County, provide election materials and assistance in other languages, in addition to English. Section 208 provides a right for voters who need assistance with voting – due to inability to read or write, blindness or disability – to receive that assistance from the person of their choice, with certain limited exceptions. The consent decree authorizes federal observers to monitor election day activities in the county’s polling places.

The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities across the country. In addition, the department also deploys federal observers from the Office of Personnel Management, when authorized by federal court order. 

The Civil Rights Division’s Voting Section, working with U.S. Attorneys’ Offices, enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Acts and the Uniformed and Overseas Citizens Absentee Voting Act.

More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931. 

Individuals may also contact the U.S. Attorney’s Office for the District of New Jersey at www.justice.gov/usao-nj/civil-rights-enforcement or by telephone at 1-855-281-3339.

El Departamento de Justicia anunció hoy que el cumplimiento con las leyes federales de del derecho al voto será monitoreado en Union County, New Jersey, en las elecciones primarias del 4 de junio.

El Departamento de Justicia asignará observadores federales a monitorear las elecciones en Union County, New Jersey, para observar cómo el condado cumple con la Ley de Derechos Electorales.  En el 2023 una corte federal aprobó un decreto por consentimiento para resolver las alegaciones del Departamento bajo las secciones 203 y 208 de la ley de Derechos Electorales sobre la disponibilidad de asistencia electoral y materiales en español para votantes hispanoparlantes con conocimientos limitados del idioma inglés en Union County.  La sección 203 exige que ciertas jurisdicciones, incluyendo a Union County, provean materiales electorales y asistencia en otros idiomas, además del inglés.  La sección 208 provee el derecho a los votantes que necesiten asistencia para votar – debido a inhabilidad de leer o escribir, ceguera o discapacidad – a conseguir ayuda de una persona que ellos mismos elijan, con ciertas limitadas excepciones.  El decreto por consentimiento autoriza a observadores federales a monitorear las actividades el Día de Elecciones en los lugares de votación del condado.

El Departamento envía su personal periódicamente a monitorear el cumplimiento de las leyes federales electorales en comunidades a través de todo el país.  Además, la División envía observadores federales de la Oficina de Administración de Personal de EE. UU. según autorizado por una orden judicial federal.

La Sección de Votación de la División de Derechos Civiles, en colaboración con las Oficinas de los Fiscales Federales, velan por el cumplimiento de las leyes federales que protegen el derecho al voto, incluyendo la Ley de Derechos Electorales, la Ley Nacional de Inscripción de Votantes, la Ley Ayudemos a Estados Unidos a Votar, las leyes de derechos civiles y la Ley de Votación para los Uniformados y los Ciudadanos en el Extranjero.

Información adicional sobre la votación y las elecciones está disponible en el portal del Departamento de Justicia en https://www.justice.gov/es/espanol.  Aprenda más sobre la Ley de Derechos Electorales y otras leyes federales electorales en https://www.justice.gov/es/crt/seccion-de-votacion.  Denuncias relacionadas a posibles vulneraciones de las leyes federales de derechos electorales pueden ser presentadas en el sitio web de la División de Derechos Civiles en https://civilrights.justice.gov/?lang=es o por teléfono al (800) 253-3931.

Las personas también pueden ponerse en contacto con la Oficina del Fiscal Federal para el Distrito de New Jersey en www.justice.gov/usao-nj/page/file/1507671/dl?inline o por teléfono al (855) 281-3339.

NEWARK, N.J. – A Jersey City man was convicted today on a charge of possession with intent to distribute cocaine, U.S. Attorney Philip R. Sellinger announced.

Jamil King, 32, of Jersey City, was convicted after a two-day trial before U.S. District Court Judge Esther Salas in Newark federal court. The jury deliberated two hours before returning the guilty verdict.

According to documents filed in this case and the evidence at trial:

King is a high-ranking member of the Jersey City neighborhood street gang known as Parkside. Law enforcement officials obtained a search warrant for King’s residence, and during the evening of July 8, 2022, officers executed that warrant. When the police arrived, King fled, but law enforcement recovered approximately 50 grams of cocaine from a pair of sweatpants inside the apartment. Those sweatpants contained the defendant’s DNA and matched the sweatshirt that the defendant was wearing that night.

The count on which King was convicted is punishable by a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 23, 2024. 

U.S. Attorney Philip Sellinger credited the Jersey City Police Department, under the direction of Director James Shea, for the investigation leading to the conviction. He also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti.

This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City.  As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration’s New Jersey Division, the U.S. Marshals, the Department of Homeland Security – Homeland Security Investigations, the Jersey City Police Department, the Hudson County Prosecutor’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.

The government is represented by Assistant U.S. Attorney Desiree Grace, Chief of the Criminal Division, and Assistant U.S. Attorney Joseph Stern of the Office’s General Crimes Unit in Newark.

NEWARK, N.J. – A Newark man was sentenced today to 65 months in prison for his role in a conspiracy to distribute and possess with intent to distribute narcotics, including fentanyl, heroin, and cocaine; and possessing with intent to distribute various narcotics, U.S. Attorney Philip R. Sellinger announced.

Ali Carney, 46, of Newark, pleaded guilty on Jan. 17, 2024, before U.S. District Judge Susan D. Wigenton to a superseding information charging him with conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and cocaine; and possession with intent to distribute fentanyl. Judge Wigenton imposed the sentence today in Newark federal court.

According to documents filed in this and other cases and statements made in court:

From April 2021 through October 2022, Carney and others – members and associates of the Grape Street Crips gang – participated in a drug trafficking organization that controlled the drug trade in and around the Oscar Miles Village housing complex in Newark. Carney admitted his role in the conspiracy and that he sold controlled substances on a near daily basis during the conspiracy.

In addition to the prison term, Judge Wigenton sentenced Carney to three years of supervised release.

All 11 of Carney’s co-defendants – Thomas Barney, Najuwan Blake-Williams, Altray Brown, Najee Carney, Tyrone Cradle, Jaquan McAllister, Ikaim McSwain, Latif Terry, Shaquan Ward, Taji Williams, and Zaid Williams – previously pleaded guilty in connection with their respective roles in the conspiracy.

A year-long investigation revealed that the drug trafficking organization distributed over a kilogram of fentanyl-laced heroin and over 280 grams of crack cocaine. Law enforcement also seized multiple firearms, which were used in furtherance of the narcotics trade, from the members of the conspiracy.

U.S. Attorney Sellinger credited special agents of the U.S. Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Cheryl Ortiz; investigators of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; investigators from the U.S. Marshal Service, under the direction of Marshal Juan Mattos Jr.; investigators of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; and the Newark Police Department, under the direction of Director of Public Safety Fritz G. Fragé, with the investigation leading to the guilty pleas.

The investigation was conducted as part of the Newark Violent Crime Initiative (“VCI”). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

The government is represented by Assistant U.S. Attorneys Samantha C. Fasanello and Olta Bejleri of the Criminal Division in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 144 months in prison for his involvement in two shootings, as well as illegally possessing a handgun and possessing heroin he intended to distribute, U.S. Attorney Philip R. Sellinger announced today.

Antoine Hawkins, 31, of Newark, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an indictment charging him with two counts of possession of ammunition by a convicted felon, one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime. Judge Hayden imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

On Aug. 18, 2020, video surveillance footage depicted Hawkins as he fired a gun on a Newark street, striking a victim, who survived the shooting. Hawkins was also identified as the perpetrator of another shooting in Newark on Aug. 13, 2020, and cartridge casings from the locations of both shootings were a ballistics match.

On Sept. 16, 2020, law enforcement encountered Hawkins and observed what appeared to be a firearm in Hawkins’s jacket. A subsequent search of Hawkins revealed a 9-millimeter pistol, which was loaded in an extended magazine containing 19 rounds of ammunition.

A search warrant executed at Hawkins’s residence revealed, among other items, 626 glassine envelopes containing heroin and three 9-millimeter magazines.

In addition to the prison term, Judge Hayden sentenced Hawkins to three years of supervised release.

U.S. Attorney Sellinger credited the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; members of the Newark Department of Public Safety, under the direction of Director Fritz G. Fragé; members of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; 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 charges.

This investigation is part of the Violent Crime Initiative (VCI) in Newark. 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 the 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 includes the U.S. Attorney’s Office, the DEA, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, 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 Board, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, and New Jersey Department of Corrections.

The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.

JERSEY CITY, N.J. – Twenty-four people have been charged for their respective roles in gang-related offenses, including conspiracy to commit bank fraud; conspiracy to distribute heroin, fentanyl, and cocaine; Hobbs Act robbery; and use of a firearm in furtherance of a crime of violence, U.S. Attorney Philip R. Sellinger announced.

The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court; four defendants remain at large. (See chart below.)

“Street gangs that are allegedly engaged in violence and narcotics distribution drastically diminish quality of life for those who live in affected communities. As alleged, members and associates of the Booker T street gang committed serious crimes, including using a firearm to commit a robbery, conspiring to distribute fentanyl, and conspiring to commit bank fraud. The charges in this case against 24 defendants demonstrate that, along with our law enforcement partners, we will work tirelessly to root out alleged gang-related criminality in order to make our communities safer.” 

U.S. Attorney Philip R. Sellinger

“ATF remains unwavering in our pursuit of trigger pullers and firearms traffickers,” Ross A. Marchetti, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, said. “Utilizing crime gun intelligence allows law enforcement to disrupt the shooting cycle by focusing on those individuals and criminal organizations responsible for the gun violence that plagues our neighborhoods. The arrests today demonstrate ATF’s commitment to working with our local, state, and federal partners to address the violent gang and drug-related activity that endangers the safety of our communities. Our collaborative efforts are essential in bringing accountability to violent offenders, combatting threats to the public, and reducing violent crime.”

“These arrests underscore the importance of collaborative work in law enforcement,” Hudson County Prosecutor Esther Suarez said. “No one should feel unsafe in their own neighborhood, and the Hudson County Prosecutor’s Office remains committed to addressing the public safety concerns of our residents. By working closely with our local, state, and federal partners, we are expanding and sharing resources that will ensure that those who commit a crime are held accountable to the fullest extent of the law.”

“As law enforcement officers, our most important job is to protect the citizens of the communities we serve,” Jenifer L. Piovesan, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “Today’s arrests are a great example of how we, along with our law enforcement partners, can make a positive impact in our communities by going after and arresting bad actors who plague the communities law abiding citizens call home.”

“Today’s large-scale operation serves as a great example of the strong partnerships between federal, state, and local law enforcement agencies in New Jersey,” Christopher Nielsen, Inspector in Charge of the Philadelphia Division for the US. Postal Inspection Service, said. “The ability to share resources and intelligence has resulted in dismantling a criminal network involved in violent crimes, narcotics trafficking, and bank fraud schemes – which impacts all citizens in our state.  Postal Inspectors are proud to be part of the task force working to combat and prevent these crimes.”

“The successful takedown of this criminal network and removal of violent actors from our community is a testament to the dedication and hard work of our law enforcement officers as well as the critical partnerships between the Jersey City Police Department and leading state and federal agencies in protecting public safety,” Jersey City Public Safety Director James Shea said.

According to the documents filed in this case and statements made in court:

Several defendants are members and associates of a neighborhood-based street gang that operates in the area of the Booker T. Washington Housing Complex in Jersey City.  The Booker T street gang is responsible for multiple acts of gang-motivated violence in Jersey City, including homicides and shootings. The investigation revealed that the gang runs a drug trafficking operation in and around the housing complex and distributes large quantities of controlled substances, including heroin, fentanyl, and cocaine. Eleven members and associates of the organization are charged with conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, more than 40 grams of fentanyl, and a quantity of cocaine.

In addition, from December 2022 through May 2024, members, associates, and individuals affiliated with the Booker T street gang engaged in a fraudulent check scheme. The defendants charged in the bank fraud conspiracy obtained fraudulent checks, including checks they had printed; stolen checks they had altered; or checks that had been purchased from, or traded with, other conspirators or third parties in exchange for a fee or percentage of profits. The defendants then deposited the fraudulent checks into bank accounts that they controlled in order to gain access to the funds. The bank fraud scheme resulted in losses exceeding $100,000.  Fifteen defendants are charged with conspiracy to commit bank fraud.

Two individuals associated with the Booker T street gang – Juan Hemingway, aka “Hort,” and Stephon Murphy, aka “Turk,” are charged with Hobbs Act robbery and unlawful use of a firearm arising from an armed robbery that occurred on May 6, 2024, during which Hemingway and Murphy robbed the victim of items including controlled substances.

U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the supervision of Acting Special Agent in Charge Ross A. Marchetti in Newark; investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Christopher A. Nielsen, Philadelphia Division; and detectives of the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to the charges. He also thanked special agents of the DEA’s New Jersey Division, under the direction of Special Agent in Charge Cheryl Ortiz; deputy United States marshals of the United States Marshals Service, under the direction of U.S. Marshal Juan Mattos; Officers with Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Francis J. Russo; officers of the Belleville Police Department, under the direction of Chief Matthew Eiskant; officers of the Bergen County Sheriff’s Office, under the direction of Sheriff Anthony Cureton; officers of the Newark Department of Public Safety, under the direction of Director Fritz Fragé; officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; officers of the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; officers of the Port Authority Police Department, under the direction of Superintendent Edward T. Cetnar; and members of the Bayonne Police Department, under the direction of Chief Robert Geisler.

The investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The Jersey City 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 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, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, 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. Attorneys George Barchini and Christopher Fell of the Office’s OCDETF/Narcotics Unit.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

bookert.complaint.pdf

*denotes at-large

 

Defendant

Age

Charges

Potential Penalties

Joseph Dupont,

aka “Tips”

30

Conspiracy to commit bank fraud

Conspiracy to distribute controlled substances

Up to 30 years

5 year mandatory minimum; up to 40 years

Darion Hemingway, aka “A-boog”

33

Conspiracy to distribute controlled substances

5 year mandatory minimum; up to 40 years

Juan Hemingway, aka “Hortz,”

aka “Glizzy”

27

Conspiracy to commit bank fraud

Conspiracy to distribute controlled substances

Hobbs Act robbery

Brandishing a firearm during and in relation to a crime of violence

Up to 30 years

5 year mandatory minimum; up to 40 years

Up to 20 years

7 year mandatory minimum; up to life

Abdin Reed,

aka “Dean”

50

Conspiracy to commit bank fraud

Conspiracy to distribute controlled substances

Up to 30 years

5 year mandatory minimum; up to 40 years

*Darius Hemingway, aka “Debo”

29

Conspiracy to distribute controlled substances

5 year mandatory minimum; up to 40 years

*Aswad Williams, aka “Ock”

33

Conspiracy to distribute controlled substances

5 year mandatory minimum; up to 40 years

Daquan Franklin,

aka “Big Trigga”

22

Conspiracy to commit bank fraud

Conspiracy to distribute controlled substances

Up to 30 years

5 year mandatory minimum; up to 40 years

Darius McGeachy, aka “Black”

27

Conspiracy to distribute controlled substances

5 year mandatory minimum; up to 40 years

*Khalis Dutton,

aka “Kha”

39

Conspiracy to distribute controlled substances

5 year mandatory minimum; up to 40 years

Aziz Rourk,

aka “Ock”

29

Conspiracy to distribute controlled substances

5 year mandatory minimum; up to 40 years

David Bryant,

aka “Hood”

35

Conspiracy to distribute controlled substances

5 year mandatory minimum; up to 40 years

Kai Robinson,

aka “Kai Glizz”

26

Conspiracy to commit bank fraud

Up to 30 years

Tony Page,

aka “Tony Cz”

28

Conspiracy to commit bank fraud

Up to 30 years

Chajuan Hemingway,

aka “Juan”

36

Conspiracy to commit bank fraud

Up to 30 years

Stephon Murphy, aka “Turk”

23

Hobbs Act robbery

Brandishing a firearm in furtherance of a crime of violence

Up to 20 years

7 year mandatory minimum; up to life

Muhammado Diokhane,

aka “Mo”

23

Conspiracy to commit bank fraud

Up to 30 years

Logan Jamison, aka “Lo”

24

Conspiracy to commit bank fraud

Up to 30 years

Danique Simpson, aka “Biz”

31

Conspiracy to commit bank fraud

Up to 30 years

Alvin Burroughs

34

Conspiracy to commit bank fraud

Up to 30 years

*Robert Fletcher, aka “Chevy”

27

Conspiracy to commit bank fraud

Up to 30 years

Jermain Young

39

Conspiracy to commit bank fraud

Up to 30 years

Messiah Green, aka “Half”

22

Conspiracy to commit bank fraud

Up to 30 years

Jasuan Posey,

aka “Jah”

23

Conspiracy to commit bank fraud

Up to 30 years

Linda Graham

34

Conspiracy to commit bank fraud

Up to 30 years

TRENTON, N.J. – A Trenton man was sentenced today to 192 months in prison for committing a series of carjackings, armed robberies, and firearms offenses, U.S. Philip R. Sellinger announced.

Joshua M. Perez, 25, previously pleaded guilty before U.S. District Judge Georgette Castner to a five-count Superseding Information, charging him with two counts of carjacking, one count of Hobbs Act robbery, one count of using and carrying a firearm during and in relation to a crime of violence, and one count of unlawfully possessing a firearm as a previously convicted felon. Judge Castner imposed sentence today in Trenton federal court.

According to documents filed in this case:

On Oct. 10, 2020, Perez and his unidentified conspirators carjacked two individuals in Trenton. As the victims were exiting their car, Perez and his conspirators got out of a white sedan, pointed handguns at the victims and robbed them of their money, cell phones, and vehicle.

On Dec. 5, 2020, Perez and an unidentified conspirator carjacked another individual in Trenton. As the victim was sitting in his parked car, Perez and his conspirator ran up to the victim’s window, pointed handguns at the victim, and ordered the victim out of the car. They stole the victim’s money and cell phone and fled the scene in the victim’s car.

Approximately one hour later, Perez and multiple unidentified conspirators used the victim’s carjacked vehicle as the getaway car in the armed robbery of a nearby gas station. Perez and his conspirators arrived at the gas station in the victim’s vehicle. As Perez entered the gas station, one of his conspirators ordered two victims outside the station to the ground at gunpoint and pistol-whipped them. Upon entering the gas station, Perez robbed the attendant at gunpoint, emptying the cash register.

On Dec. 7, 2020, law enforcement officers responded to Perez’s residence to execute a search warrant. During the court-authorized search of Perez’s residence, Perez pointed a firearm at the officers and was placed under arrest.

In addition to the prison term, Judge Castner sentenced Perez to three years of supervised release and ordered restitution to the victims of his offense.

U.S. Attorney Sellinger credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti, and officers of the Trenton Police Department under Police Director Steve Wilson, with the investigations 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.

NEWARK, N.J. – A New York man was sentenced today to 33 months in prison for his role in a conspiracy that targeted Asian and Asian-American small business owners for burglaries, U.S. Attorney Philip R. Sellinger announced today.

James Hurt, 48, of New York, previously pleaded guilty before U.S. District Judge Evelyn Padin to an information charging him with one count of conspiracy to commit interstate transportation of stolen property. Judge Padin imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

From Dec. 2, 2016, to March 20, 2019, Hurt and others participated in a conspiracy to burglarize the residences of certain Asian small business owners living in New Jersey, New York, Pennsylvania, and Delaware of large sums of money, valuable jewelry, and other items, and then transport the stolen goods in interstate commerce, including to residences in New Jersey and Pennsylvania.

In addition to the prison term, Judge Padin sentenced Hurt to three years of supervised release.

U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy, in Newark, with the investigation leading to the sentencing. He also thanked the South Plainfield Police Department, the Middlesex County Prosecutor’s Office, the New Jersey State Police, the Port Authority of New York and New Jersey, the U.S. Department of Labor, the U.S. Department of State, the Drug Enforcement Administration, the U.S. Customs and Border Protection, the U.S. Department of Transportation, the U.S. Postal Inspection Service, the Union County Prosecutor’s Office, and the Bernards Township, Bethlehem Township, Cherry Hill, Cinnaminson, Clark, Colonial Regional, Cranford, Delaware State Police-Troop 2, Delran, Edison, East Brunswick, East Hanover, Eatontown, Elizabeth, Essex County Sheriff’s Office-Bureau of Narcotics, Evesham Township, Exeter Township, Fair Lawn, Forks Township, Fort Lee, Franklin Township, Glassboro, Gloucester Township, Hackensack, Haverstraw, Hazlet, Highland Park, Hillside, Hillsborough Township, Howell Township, Jackson, Kenilworth, Lawrence Township, Linden, Lyndhurst, Mahwah, Marlboro Township, Maywood, Middletown, Montgomery County, Montville, Morris Township, Mount Laurel, Mountainside, New Castle County, New Providence, New York Police Department’s 105th Detective Squad, North Brunswick, North Plainfield, Old Bridge, Paramus, Parsippany, Phillipsburg, Piscataway, Pocono Mountain Regional, Pocono Township, Raritan, Roselle Park, Sayreville, Somerville, South Brunswick, South River, South Whitehall Township, Spotswood, Town of Tuxedo, Tinton Falls, Toms River, Township of Ocean, Union, Upper Macungie Township, Wall Township, Warren, Washington Township, Watchung, Westfield, Whitehall Township, and Woodbridge Township police departments.

The government is represented by Assistant U.S. Attorneys Dong Joo Lee of the U.S. Attorney’s Office Cybercrime Unit in Newark.

NEWARK, N.J. – A Jersey City attorney was sentenced today to 66 months in prison for defrauding his clients of more than $2 million dollars and other crimes, U.S. Attorney Philip R. Sellinger announced.

James R. Lisa, 68, previously pleaded guilty before U.S. District Judge Kevin McNulty to a superseding information charging him with one count of wire fraud, one count of aggravated identity theft, one count of obstructing the IRS, one count of failing to file an individual income tax return, and one count of wire fraud while on pretrial release. U.S. District Judge Julien X. Neals imposed the sentence today in Newark federal court.

“James Lisa used his law license to execute a multimillion-dollar fraud scheme and rip off clients who placed their trust in him. Then, after being charged for that fraud, Lisa committed another when, posing as his own lawyer, he sent a bogus letter to a lender that falsely described the status of his criminal case. Lisa’s multiple criminal acts were serious violations of his oath as an officer of the court and a betrayal of his clients’ trust. The sentence imposed today is his just punishment for these crimes.”

U.S. Attorney Philip R. Sellinger

According to documents filed in this case and statements made in court:

In 2014, Lisa was retained by a family to help repatriate millions of dollars that had been transferred by other family members to offshore bank accounts decades earlier. Lisa was also retained to help resolve the tax issues related to the repatriation of the funds. In 2015, Lisa successfully repatriated more than $6 million of the family’s funds, but proceeded to falsely advise the family that the funds remained offshore. In 2017, Lisa provided $4 million of the repatriated funds to the family but continued to falsely represent that the remaining $2 million remained beyond his control.

Lisa falsely told the family that he successfully resolved the tax implications of repatriating the funds. In 2016, Lisa sent the family a fraudulent IRS “closing agreement” reflecting an agreement with the IRS for the family to pay $3 million in taxes and penalties for the repatriated funds. In 2018, Lisa sent the family another fraudulent closing agreement reflecting an agreement with the IRS for the family to pay $2 million in taxes and penalties because only $4 million was purportedly repatriated. In fact, the IRS never entered into these agreements and the IRS employees who purportedly signed the documents never did so. When one member of the family was audited by the IRS, the IRS issued Lisa a summons for records related to the family’s assets. In response to the summons, Lisa produced false and fraudulent documents suggesting that the IRS had agreed to closing agreements with the family.

In January 2023, Lisa was arrested after being charged with this fraud scheme and placed on pretrial release.  One condition of his pretrial release was that he not commit another crime.  In April 2023, Lisa committed wire fraud when he applied for a $22,000 loan. In order to obtain the loan, Lisa caused the creation and submission to the lender of a fraudulent document that purported to be a letter from the attorney then representing him in his criminal prosecution. Lisa caused the letter to be sent in order to defraud the lender about the status of the criminal prosecution so that the lender would approve the loan. 

Lisa also admitted that he failed to file individual income tax returns for tax years 2015 through 2022, and as a result, caused a tax loss to the IRS of at least $550,000. 

In addition to the prison term, Judge Neals sentenced Lisa to three years of supervised release and ordered him to pay $2.05 million in restitution to his fraud victims and $550,000 to the IRS.

U.S. Attorney Sellinger credited special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), Mid Atlantic Field Division, under the direction of Special Agent in Charge Andrew McKay; and IRS - Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.

TRENTON, N.J. – A Morris County, New Jersey, man today admitted possessing and distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

William Mickel, 70, of Lake Hopatcong, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to an indictment charging him with one count of distribution of child pornography and one count of possession of child pornography.

According to the documents filed in this case and statements made in court:

From February 2022 through April 2022, Mickel, who was employed by Boy Scout camps in New Jersey, distributed and possessed images and videos of child sexual abuse. Mickel used email accounts to distribute these materials, and stored hundreds of images and videos on electronic devices in his home. Some of the videos in Mickel’s possession depicted children who were surreptitiously recorded using bathrooms in the Boy Scout camps where Mickel worked.

The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries a maximum penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Oct. 3, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy; the Morris County Prosecutor’s Office, under the direction of Prosecutor Robert J. Carroll; and the Chester Police Department, under the direction of Chief Ryan T. McNamee, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.

mickel.indictment.pdf

CAMDEN, N.J. – An Essex County, New Jersey, man was sentenced today to 108 months in prison for illegally possessing fentanyl, heroin, and cocaine for distribution and possessing a firearm as a convicted felon and in furtherance of drug trafficking, U.S. Attorney Philip R. Sellinger announced.

Taurean Gordon, 40, of Irvington, New Jersey, previously pleaded guilty before U.S. Circuit Judge Stephanos Bibas to a superseding information charging him with one count of being a previously convicted felon in possession of a firearm and ammunition, one count of possession with intent to distribute controlled substances, and one count of possession of a firearm in furtherance of a drug trafficking crime. Judge Bibas imposed the sentence today in Camden federal court.

According to documents filed in this case and statements made in court:

Gordon admitted that on February 11, 2021, he possessed heroin, fentanyl, and cocaine packaged for distribution with the intent to distribute. Gordon, a previously convicted felon, also admitted that he possessed a North American Arms Inc. revolver loaded with five rounds of ammunition.

In addition to the prison term, Judge Bibas sentenced Gordon to 3 years of supervised release and ordered him to forfeit the weapon and ammunition he used during the commission of the offense, as well as the $526 seized from him at the time of the offense.

U.S. Attorney Sellinger credited officers of the Newark Police Division under the direction of Director Fritz Fragé and 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, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys DeNae Thomas of the Health Care Fraud Unit and George Barchini of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit.

CAMDEN, N.J. – A former branch manager of a national financial institution today admitted using his position to organize a conspiracy to help individuals obtain at least 38 fraudulent Paycheck Protection Program (PPP) loans totaling approximately $5 million, U.S. Attorney Philip R. Sellinger announced today. U.S. Attorney Sellinger also announced that a New York man admitted laundering the proceeds of one of the fraudulent PPP loans.

Tommy Hawkins, 61, of Philadelphia, pleaded guilty before U.S. District Judge Karen M. Williams to one count of bank fraud conspiracy. Sieff Robert Sargeant, 44, of Island Park, New York, pleaded guilty before Judge Williams to one count of money laundering.

According to documents filed in these cases and statements made in court:

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (PPP).  To obtain a PPP loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and expenses.  In addition, businesses generally had to provide supporting documentation.

In 2020 and early 2021, Hawkins worked as the branch manager of the Conshohocken, Pennsylvania, branch of a national bank that was accepting Paycheck Protection Program (PPP)  loan applications. Hawkins worked with Eric Rivera, Lisa Smith, and others to recruit individuals who owned companies with little or no operations to open bank accounts at Hawkins’ branch and apply for PPP loans. Hawkins helped the recruited individuals submit PPP loan applications that contained materially false representations about the companies’ number of employees and payroll expenses. The applications also included false documentation, including tax forms. Based on these applications, Hawkins’ bank approved at least 38 PPP loans and disbursed approximately $5 million. Hawkins received incentive compensation through the bank for opening business bank accounts for the companies that received fraudulent PPP loans and also had an agreement with Rivera and Smith for them to pay Hawkins $5,000 of the loan proceeds for each PPP loan that Hawkins helped to obtain.

In April 2021, Sargeant’s business received a PPP loan based on a fraudulent application that was submitted through Hawkins’ branch. Sargeant then paid another individual, James Wessels, to create fake payroll checks. Sargeant distributed fake payroll checks to a friend, who cashed the checks and returned the majority of the cash to Sargeant. This was done to conceal that the proceeds actually were being spent on non-payroll expenses.

The count of conspiracy to commit bank fraud is punishable by a maximum of 30 years in prison and a $1 million fine. The count of money laundering is punishable by a maximum of 20 years in prison and a $500,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Hawkins’ sentencing is scheduled for Oct. 3, 2024;  Sargeant’s sentencing is scheduled for Oct. 2, 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 pleas.

The government is represented by Assistant U.S. Attorney Daniel A. Friedman and Attorney-in-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden.

The charges and allegations against Rivera, Smith, and Wessels are merely accusations, and they are presumed innocent unless and until proven guilty.

hawkins.information.pdf sargeant.information.pdf

NEWARK, N.J. –A Bronx, New York, man was sentenced today to 70 months in prison for possessing fentanyl with intent to distribute and resisting his arrest with a deadly or dangerous weapon, U.S. Attorney Philip R. Sellinger announced.

Miguel Nuñez, 50, of Bronx, New York, previously pleaded guilty before U.S. District Judge Kevin McNulty to a superseding information charging him with one count of possessing 40 grams of fentanyl with intent to distribute and one count of resisting and impeding officers with a deadly or dangerous weapon. U.S. District Judge Julien X. Neals imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

On March 24, 2021, Nuñez and Jesus Higuera-Parra, 28, of Ontario, California, drove from New York City to Elizabeth, New Jersey, for the purposes of distributing fentanyl. When they arrived to meet the drug purchaser, they were approached by members of the Drug Enforcement Administration (DEA). Nunez, the driver of the vehicle, put his car in reverse and attempted to elude the law enforcement personnel, which resulted in a collision with a DEA car.

In addition to the prison term, Judge Neals sentenced Nunez to four years of supervised release.

Higuera-Parra previously pleaded guilty to an information charging him with possessing with intent to distribute fentanyl and is awaiting sentencing.

U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Ray Mateo of the Opioid Abuse Prevention and Enforcement Unit and Benjamin Levin of the National Security Unit.

CAMDEN, N.J. – Four New York men were sentenced today to prison terms for conspiring to kidnap and hold for ransom a Fort Lee, New Jersey, resident, U.S. Attorney Philip R. Sellinger announced.  

Fa Deng, 44, of Staten Island, New York, was sentenced to 144 months in prison, three years of supervised release and a $200,000 fine; Chiahao Lee, 32, of Queens, New York, was sentenced to 180 months in prison and three years of supervised release; Albert Ferrelli, 52, of Queens, New York, was sentenced to 250 months in prison and five years of supervised release; and Gabriel Anthony, of Queens, New York, was sentenced to 168 in prison and three years of supervised release. All four previously pleaded guilty to conspiring to commit interstate kidnapping.   

According to documents filed in the cases, and statements made in court:

On April 5, 2022, the four conspirators drove to the victim’s home in Fort Lee. Anthony and Ferrelli entered the victim’s home wearing masks. They bound the victim’s hands, placed duct tape over his eyes and mouth, and forced him into a vehicle where Deng and Lee were waiting. 

Law enforcement received information that kidnappers had sent the victim’s wife a photograph of the victim bound and duct-taped, demanding a ransom of approximately $680,000. When law enforcement responded to the victim’s home, they located what appeared to be duct tape with pieces of latex gloves stuck to it. After reviewing local surveillance footage, law enforcement identified a gray minivan used in the abduction. Other surveillance footage showed the minivan crossing the George Washington Bridge shortly after the kidnapping, and subsequently crossing into the Bronx and then into Queens. 

The following day, New York Police Department personnel responded to Prince Street in Queens, where they encountered Ferrelli guarding the door to a building. When officers approached Ferrelli, they heard a man screaming for help inside the building. Officers entered the building and found the victim with his hands bound, and duct tape over his eyes and mouth.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy; the Bergen County Prosecutor’s Office under the direction of Prosecutor Mark Musella; officers of the Fort Lee Police Department, under the direction of Chief Matthew J. Hintze; and the New York Police Department, under the direction of Commissioner Edward A. Caban, with the investigation leading to the sentencings.

The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.

TRENTON, N.J. – An Israeli man today admitted conspiring with Eliyahu "Eli" Weinstein, whose 24-year federal prison sentence was commuted after being twice convicted of defrauding investors of a total of $230 million, and others to defraud investors of more than $35 million in a new fraud scheme, and to conspiring to engage in money laundering and obstruct justice, U.S. Attorney Philip R. Sellinger announced.

Shlomo Erez, 56, of Israel, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit securities fraud, one count of conspiracy to commit money laundering, and one count of conspiracy to obstruct justice.

“Shlomo Erez admitted to helping Eliyahu ‘Eli’ Weinstein, a twice convicted fraudster whose sentence was commuted by the then President of the United States, hide his identity from investors, ripping them off  to the tune of millions of dollars and evading hundreds of millions of dollars in restitution to victims of Weinstein’s prior fraud schemes. This scheme used phony identities and false promises of access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine to defraud victims. Erez will now face justice for his crimes, and we will continue to prosecute the other alleged conspirators.”

U.S. Attorney Philip R. Sellinger

“Financial crimes like the charges Shlomo Erez pled guilty to today cause great emotional harm to the numerous victims who trusted this defendant with their hard earned money,” Jenifer L. Piovesan, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “We will continue to aggressively investigate cases of people who victimize others for their own financial gain.”

Four of Erez’s conspirators – Christopher Anderson, 47, Richard Curry, 36, Alaa Hattab, 35, and Joel Wittels, 57 – previously pleaded guilty to conspiracy to commit securities fraud. Wittels also pleaded guilty to conspiracy to obstruct justice and to conspiracy to engage in the unlicensed wholesale distribution of prescription drugs. All are awaiting sentencing. Charges are still pending against conspirators Weinstein and Aryeh “Ari” Bromberg. 

According to documents filed in this case and statements made in court:

Weinstein was convicted two times in New Jersey federal court for defrauding investors. His first case involved a real estate Ponzi scheme, and his second case stemmed from additional fraud Weinstein committed while on pretrial release. For these crimes, which resulted in combined losses to investors of approximately $230 million, Weinstein was sentenced to serve 24 years in prison, followed by three years of supervised release. On Jan. 19, 2021, after Weinstein had served less than eight years, the president of the United States at that time commuted Weinstein’s term to time served, leaving intact the rest of his sentence.

Soon after being released from prison, Weinstein began orchestrating a new scheme to solicit money from investors through a company called Optimus Investments Inc. (Optimus). Using the fake name “Mike Konig,” Weinstein ran Optimus with Bromberg and Wittels.

Weinstein, Bromberg, and Wittels received the bulk of investor money through a second company, Tryon Management Group LLC, which was owned and controlled by Anderson and Curry. Tryon promised these individual investors – consisting mostly of friends and family – lucrative opportunities to invest in deals involving COVID-19 masks, scarce baby formula, and first-aid kits supposedly bound for wartime Ukraine. Posing as Mike Konig, Weinstein provided the information for these supposed deals. Based on that information, investors gave money to Tryon, believing the deals were legitimate and not knowing about Weinstein’s involvement. In turn, Tryon transferred those funds to Weinstein, through Optimus. Erez served as a purported custodian of Optimus funds for Optimus’ investors. After receiving investor money, Erez conducted numerous financial transactions at Weinstein’s direction for purposes other than what investors were promised, including investing in a penthouse apartment in Miami, Florida, and a purported land deal in Morocco.

In February 2022, almost immediately after Tryon and Optimus started receiving investor money, Tryon was unable to pay its investors. Rather than reveal this information to investors, the conspirators agreed to pool money from existing investors of both Optimus and Tryon and use it to make monthly payments to other investors in a Ponzi-like fashion. The conspirators concealed this arrangement from investors by falsely telling investors that the payments derived from legitimate investment returns, not other investors’ money.

In late August 2022, the conspirators had a series of meetings in which Weinstein revealed his true identity to Anderson and Curry. In these meetings, at least two of which included Erez, Weinstein also admitted to making various false statements about purported Optimus deals and to misappropriating Tryon investor money. Both during and after these August 2022 meetings, the conspirators agreed to continue concealing Weinstein’s identity from investors and to raise additional money to pay off existing Tryon investors, all in an effort to stop the Ponzi scheme from falling apart and to cover up the conspirators’ fraud.

In addition to defrauding investors, Erez also conspired with Weinstein and others to launder the proceeds of their crimes. Erez opened bank accounts to hold money for Weinstein that Erez knew was the proceeds of unlawful activity, including the fraud scheme, and transferred it for the benefit of Weinstein and his conspirators. Erez also created entities to invest ill-gotten funds in real estate companies for the benefit of Weinstein and his associates.

Erez also conspired with Weinstein, Bromberg, and others to obstruct justice. They helped hide Weinstein’s assets that should have been used to pay over $200 million in restitution that he still owes his previous victims. They also concealed Weinstein’s myriad business activities, which he was required to disclose to the court and which were expressly prohibited by the terms of his supervised release.

Conspiracy to commit securities fraud and conspiracy to obstruct justice are each punishable by a maximum of five years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Conspiracy to commit money laundering is punishable by a maximum of twenty years and a statutory maximum fine equal to the greatest of $500,000 or twice the value of the property involved in the transaction, whichever is greatest. Sentencing for Erez is scheduled for Nov. 5, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy, and the IRS-Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the charges in this case. He also thanked the Securities and Exchange Commission, under the direction of Antonia Apps, Director of the SEC’s New York Regional Office.

The government is represented by Assistant U.S. Attorneys Jonathan Fayer, Carolyn Silane, Mark Pesce of the Economic Crimes Unit in Newark.

 The charges against Weinstein and Bromberg are merely accusations, and they are presumed innocent unless and until proven guilty.

erez.information.pdf

NEWARK, N.J. – A South Carolina man was sentenced today to 92 months in prison for conspiring to traffic and unlawfully sell firearms and for possession of firearms and ammunition by a convicted felon, U.S. Attorney Philip R. Sellinger announced today.

Torell Brown, 49, of Orangeburg, South Carolina, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Counts Three, Four, and Five of a superseding indictment that charged him with conspiracy to unlawfully sell firearms, possession of firearms and ammunition by a convicted felon, and conspiracy to traffic firearms. Judge Wigenton imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

From April 2021 through May 18, 2021, Brown, a convicted felon, conspired to unlawfully sell firearms to at least one New Jersey resident. He trafficked six firearms and a large quantity of ammunition from South Carolina to New Jersey. From March 2021 through May 18, 2021, Brown also conspired to traffic firearms and ammunition into New Jersey, for use in connection with at least one other felony offense.

In addition to the prison term, Judge Wigenton sentenced Brown to three years of supervised release. 

The investigation that led to these arrests is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and is part of the Violent Crime Initiative (VCI) in Newark. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.  The 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 to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

U.S. Attorney Sellinger credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark and special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti, with the investigations leading to the charges. He also thanked the Newark Police Department, under the direction of Director Fritz G. Fragé, the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, for their significant assistance with these cases.

The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division, Assistant U.S. Attorney Samantha Fasanello of the Cybercrime Unit, and Assistant U.S. Attorney Olta Bejleri of the Economic Crimes Unit.

CAMDEN, N.J. – A Philadelphia man was sentenced to 120 months in prison for transporting victims in interstate commerce to engage in prostitution, U.S. Philip R. Sellinger announced today.

Mallie M. Evans, 37, previously pleaded guilty before U.S. District Judge Karen M. Williams to a count of the indictment against him charging him with transporting any individual in interstate commerce with the intent that such individual engage in prostitution. Judge Williams imposed sentence on May 23, 2024, in Camden federal court.

According to documents filed in this case and statements made in court:

From 2015 through 2017, Evans recruited and coerced multiple victims to engage in prostitution for Evans’s financial benefit and transported victims across state lines between Philadelphia and central and southern New Jersey to engage in prostitution. Evans used fraud, emotional manipulation, physical violence, and threats of death and bodily injury to coerce the victims into engaging in commercial sex acts for his benefit.

In addition to the prison term, Judge Williams sentenced Evans to 10 years of supervised release.

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, with the investigation leading to the sentencing.

The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.

NEWARK, N.J. – Daniel Hurt, who owned and/or operated Fountain Health Services LLC, Verify Health, Landmark Diagnostics LLC, First Choice Laboratory LLC and Sonoran Desert Pathology Associates LLC, has agreed to pay over $27 million to resolve allegations that he and his companies conspired with others to violate the False Claims Act (FCA) by submitting false claims to, and receiving payments from, Medicare for cancer genomic (CGx) tests that were not medically necessary and were procured through illegal kickbacks. Hurt, Fountain Health, Verify Health, Landmark Diagnostics, First Choice and Sonoran Desert Pathology also agreed to be excluded by the Department of the Health and Human Services Office of Inspector General (HHS-OIG) from Medicare, Medicaid and all other Federal health care programs. Hurt previously pled guilty to criminal healthcare fraud for these offenses. The civil settlement is based on Hurt’s ability to pay.

The United States alleged that Hurt, his companies and others conspired to knowingly submit false claims for CGx tests that were not medically necessary to treat or diagnose a condition, and that Hurt received and paid kickbacks in exchange for Medicare referrals, in violation of the Anti-Kickback Statute (AKS). In particular, the United States alleged that, from January 2019 to November 2021, Hurt conspired with telemarketing agents to solicit Medicare beneficiaries for “free” CGx tests; with telemedicine providers to “prescribe” CGx tests that were not medically necessary; with reference laboratories to conduct the CGx tests and with billing laboratories and a hospital to submit claims for payment to CMS.

“Medicare and Medicaid are two vitally important health care programs that provide critical services to millions of Americans. Schemes that seek to siphon money from these programs with unnecessary medical tests are especially egregious. We will do everything we can to protect the public and the services they need, and to hold accountable those who try to bilk the system.”

U.S. Attorney Philip R. Sellinger

“We will not tolerate those who prey on older Americans to defraud Medicare,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As this settlement reflects, we will use our available resources to protect federal health care programs and the beneficiaries they serve.”  

“Submitting false claims for medically unnecessary services to Medicare and Medicaid jeopardizes the integrity of vital health care programs, and we, along with our law enforcement partners, will continue to make sure those who attempt to do so are held accountable,” stated Deputy Inspector General of Investigations Christian J. Schrank for HHS-OIG. “This substantial settlement underscores our steadfast dedication to safeguarding federal health care programs.”

This settlement includes the resolution of allegations brought in three cases filed under the qui tam or whistleblower provisions of the FCA, including an action filed by Robert Gerstein, a minority owner of Sonoran Desert Pathology, where he worked for Hurt, running the billing operations for CGx tests. Under the FCA, private parties can file an action on behalf of the United States and receive a portion of any recovery. Under today’s resolution, Relator Gerstein will receive up to $4.7 million or 17% of the government’s recovery.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the Corporate/Financial Litigation Section, the U.S. Attorney’s Office for the Middle District of Florida, the U.S. Attorney’s Office for the Southern District of Florida, and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG. 

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The matter was handled by Assistant U.S. Attorney David Dauenheimer (D.N.J.), Trial Attorney Samson Asiyanbi of the Fraud Section, Trial Attorneys Augustus Curtis and Andrew Warner of the Corporate/Financial Litigation Section, Assistant U.S. Attorneys Jeremy Bloor (M.D. Fla.) and Rosaline Chan (S.D. Fla.), and the Miami Regional Office of HHS-OIG.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

settlement.pdf

NEWARK, N.J. – Six Chilean nationals have been charged for conspiring to target homeowners across multiple states in residential burglaries, U.S. Attorney Philip R. Sellinger announced.

Flavio Bladimir Astete Castillo, Dareyen Mauricio Cortes-Canete, Luis Esteban Castillo Vivar, Max Vidal Navarrete, Jordán Estefano Contreras Vilches, and Juan Jose Ramirez Nilo, all of Chile, are each charged by complaint with one count of conspiracy to sell and receive stolen property that had crossed state lines and one count of receiving stolen property that had crossed state lines.

“Six Chilean nationals have been charged with conspiring to target homeowners in residential burglaries across multiple states from New York to Maryland. The Complaint alleges that  they conspired to receive and sell stolen pearl, gold and diamond jewelry, rare coins and other property that was stolen in those burglaries. Residential burglaries affect people in a very serious and personal way, and our office will continue to pursue criminals who are alleged to have violated the sanctity of our homes.”

U.S. Attorney Philip R. Sellinger

“Thieves are victimizing more and more homeowners in New Jersey and beyond, traveling up from South American nations,” FBI – Newark Special Agent in Charge James E. Dennehy said. “They hit multiple victims in one community, quickly move on to the next and then flee back to their native country. This isn't your traditional crime spree; it is an actual industry of organized criminals who invade and shatter people's private sanctuaries and steal valuable possessions. These theft groups may believe they can circumvent our laws, but the charges today and other similar outstanding investigations prove we are stopping these offenders and bringing them to justice.”

“These arrests of a group of foreign-born individuals that engaged in interstate crime demonstrates how critical the cooperation between various law enforcement agencies continues to be,” Immigration and Customs Enforcement – Enforcement and Removal Operations, Newark Field Office Director John Tsoukaris said. “ERO will continue to leverage our unique authorities in support of community safety.”

“The collaboration among law enforcement agencies was essential in apprehending these individuals who targeted homes across multiple states,” Clinton Township Police Department Chief Thomas A. DeRosa said. “This case exemplifies our commitment to working together and utilizing advanced technology, as well as investing in new technologies, to combat interstate crime and protect our communities. Our collective efforts ensured that these stolen valuables were recovered and those responsible were brought to justice.”

Five of the defendants appeared today before U.S. Magistrate Judge José R. Almonte in Newark federal court and were detained. Ramirez Nilo had his initial appearance on May 22, 2024, before U.S. Magistrate Judge Stephanie Christensen in Los Angeles federal court and was detained.

According to documents filed in this case and statements made in court:

The defendants are part of a burglary ring that committed multiple residential burglaries in March and April 2024 in multiple states, including Maryland and New York. The defendants conspired to possess large amounts of jewelry, collectibles, and other valuable goods, among other items. On April 19, 2024, they moved a heavy security safe stolen from a residence, while attempting to conceal the stolen item from detection by covering security cameras.

Law enforcement officers searched a vehicle the defendants were using to transport the stolen goods and recovered multiple pieces of jewelry, collectible coins and cufflinks, and other valuable items, alongside tools commonly used to burglarize residences, such as gloves, balaclavas, and window punches.

The charge of conspiracy to sell or receive stolen property carries a maximum potential penalty of five years in prison; and the charge of receipt of stolen property carries a maximum potential penalty of 10 years in prison. Both charges also carry a maximum potential penalty of up to a $250,000 fine, or twice the amount of money involved in the offense, whichever is greater.

U.S. Attorney Sellinger credited the FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark; Immigration and Customs Enforcement – Enforcement and Removal Operations, under the direction of Field Office Director John Tsoukaris; the Clinton Township Police Department, under the direction of Chief Thomas A. DeRosa; and the Port Authority of New York and New Jersey Police Department, under the direction of Superintendent of Police Edward T. Cetnar, with the investigation leading to the charges. He also thanked the FBI Los Angeles Major Theft Task Force and Customs and Border Protection, as well as the Amtrak Police Department, Baltimore County Police Burglary Unit, Jersey City Police Department, Los Angeles Police Department, New Jersey State Police, New York State Police, the Westchester County Police and the NJ Transit Police. 

Anyone who believes they may be a victim, or has information about the theft groups or burglaries, is asked to call 1-800-CALL-FBI, submit the information online at tips.fbi.gov, or call a local field office.

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 defendants are presumed innocent unless and until proven guilty.

castilloetal.complaint.pdf

NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang was sentenced today to 178 months in prison for his role in a racketeering conspiracy, U.S. Attorney Philip R. Sellinger announced.

Tyheim Terry, aka “Ty,” aka “Rollin’ Ty,” 25, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, carjacking, and brandishing a firearm in furtherance of the carjacking. 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, Terry was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere. On Feb. 21, 2021, Terry worked with others, including members of the gang, to attempt to carjack a victim. On April 5, 2021, Terry worked with other members of the gang to shoot another victim. On April 11, 2021, Terry brandished a firearm and carjacked a third victim.

In addition to the prison term, Judge Wigenton sentenced Terry 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.

NEWARK, N.J. – An Arizona man admitted today that he conspired to obtain over $4.4 million by defrauding the IRS, U.S. Attorney Philip R. Sellinger announced.

Walid Khater, 38, of Mesa, Arizona, pleaded guilty today before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. Walid Khater’s conspirator, Omar Khater, 33, of Fairfield, New Jersey, previously pleaded guilty to the same charges and is scheduled to be sentenced on June 12, 2024.

“Walid Khater has admitted his role in an elaborate scheme that used stolen personal identifying information and fabricated tax returns to fleece the IRS of millions of dollars. With the help of our law enforcement partners, we will aggressively pursue these illegal and dangerous schemes, and those who perpetrate them will be called to answer for their crimes.”

U.S. Attorney Philip R. Sellinger

“Investigating individuals who use stolen identities to file fraudulent returns for personal gain is a top priority at IRS Criminal Investigation,” Jenifer L. Piovesan, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “We will continue working with our law enforcement partners to investigate and prosecute individuals who attempt to cheat our tax system on the backs of innocent taxpayers.”

“Khater admits he worked with his co-conspirator to steal personal information from his victims to file fake tax returns,” FBI – Newark Special Agent in Charge James E. Dennehy said. “He then used a chunk of the $4.4 million he stole to gamble. Adding to his already flagrant criminal acts, he filed his winnings as income to get tax refunds - stealing even more money from the federal government. His luck seems to have finally run out.”

According to documents filed in this case and statements made in court:

Walid and Omar Khater were relatives who worked together and with others to steal victims’ identities, which they used to file false tax returns and fraudulently receive tax refunds from the IRS. They electronically submitted tax documents to the IRS falsely claiming that the individual taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings. The false filings also claimed tax withholdings on the purported income or gambling winnings that entitled the tax filer to refund payments from the IRS.

The Khaters and others typically submitted these fraudulent tax filings using the names and personal identifying information of individual taxpayers without their knowledge or permission. The fraudulent filings caused the IRS to pay lucrative tax refunds, totaling $4.49 million, which the Khaters and others directed to various bank accounts that they controlled.

The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. The charge of conspiracy to defraud the IRS carries a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Oct. 9, 2024.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan, and special agents of FBI-Newark, under the direction of Special Agent in Charge James E. Dennehy with the investigation leading to today’s guilty plea. He also thanked the NJ Transit Police.

The government is represented by Assistant U.S. Attorneys Fatime Meka Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark.

khater.information.pdf

 

NEWARK, N.J. – A Washington state man pleaded guilty to possession of fentanyl with intent to distribute, U.S. Attorney Philip R. Sellinger announced today.

Jose Luis Pineda Torres, 48, of Monroe, Washington, pleaded guilty before U.S. District William J. Martini in Newark federal court on May 20, 2024, to an information charging him with one count of possession of fentanyl with intent to distribute.

According to documents filed in this case and statements made in court:

On Feb. 15, 2023, Pineda Torres travelled to a warehouse in Secaucus, New Jersey, where individuals loaded boxes into his vehicle. The boxes contained powder and more than 20,000 pills containing fentanyl and weighing more than 6 kilograms.

U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation leading to the guilty plea. 

The count to which Pineda Torres pleaded guilty is punishable by a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Oct. 29, 2024.

The government is represented by Assistant U.S. Attorney Jordann R. Conaboy of the U.S. Attorney’s Opioid Abuse Prevention and Enforcement Unit in Newark.

pinedatorres.information.pdf

NEWARK, N.J. – A Mississippi man who owned, operated, had financial interests in, or was affiliated with pharmacies, durable medical equipment (DME) companies, and a laboratory today admitted his role in a health care fraud scheme that caused losses to Medicare in excess of $51 million, Attorney for the United States Caroline Sadlowski announced.

Keaton Langston, 39, of Booneville, Mississippi, pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging him with conspiracy to commit health care fraud.

According to documents filed in the case and statements made in court:

Langston and others owned, operated, had financial interests in, or were affiliated with pharmacies, DME companies, and a laboratory that Langston and others used to defraud health care benefit programs by offering and paying kickbacks and bribes in exchange for doctors’ orders for DME, genetic cancer screening tests, and compounded medications. The pharmacies, DME companies, and laboratory submitted or caused the submission to Medicare of claims for reimbursement without regard to medical necessity, and sent a portion of the proceeds to others as payment for the doctors’ orders generated through the conspiracy. Langston and others concealed the payment of bribes, in part, by entering into sham contracts designed to make it appear that suppliers were engaged in and being paid for legitimate marketing and referral services based on the hours and expenses incurred or on a flat-rate basis.   

The pharmacies, DME companies, and laboratory billed Medicare and other health care benefit programs at approximately $51 million for tests and orders that were the product of the illicit scheme. Langston received approximately $10 million from these reimbursements.

The charge of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Oct. 1, 2024.

Attorney for the United States Sadlowski 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 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 Acting Special Agent in Charge Brian J. Solecki; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division.

langston.information.pdf

NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 121 months in prison for possessing images of child sexual abuse and committing naturalization fraud, U.S. Attorney Philip R. Sellinger announced.

Ramy Mercado, 29, of Jersey City, New Jersey, previously pleaded guilty before Judge Claire C. Cecchi to an information charging him with one count of possession of child pornography and one count of naturalization fraud. Judge Cecchi imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

From June 2022 to October 2022, Mercado used his cell phone to transmit more than 20 video files depicting the sexual abuse of minors, including infants or toddlers. Mercado also used his cell phone to communicate his desire for sexual encounters with young children. 

During this time, Mercado applied for and obtained U.S. citizenship and stated under penalty of perjury that since his citizenship interview, he had not committed any crime or offense for which he had not been arrested. In fact, Mercado had illegally possessed child pornography.  Mercado became a naturalized U.S. citizen on June 22, 2023.

In addition to the prison term, Judge Cecchi sentenced Mercado to 15 years of supervised release.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division in Newark.

NEWARK, N.J. – A Hudson County, New Jersey, man was charged with producing and possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.

Julio Albery Nunez, 27, West New York, New Jersey, is charged by complaint with one count of sexual exploitation of a minor and one count of possession of child pornography. He was arrested on May 20, 2024, made his initial appearance on May 21, 2024, before U.S. Magistrate Judge José R. Almonte in Newark federal court and was detained.

According to documents filed in this case and statements made in court:

Beginning in December 2022 law enforcement began investigating Nunez for involvement with child pornography on various online and dark-web platforms.More recently, Nunez contacted a minor victim online and represented to that victim that he was a teenage girl. Nunez requested and received videos constituting child sexual abuse that depicted the minor. Law enforcement searched Nunez’s home on the morning of May 20, 2024.

The charge of production of child pornography carries a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison and a $250,000 fine. The charge of possession of child exploitation material carries a maximum potential penalty of 10 years in prison, and a $250,000 fine.

U.S. Attorney Sellinger credited FBI Newark’s Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked the West New York Police Department and the Hudson County Prosecutor’s Office.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The government is represented by Assistant U.S. Attorneys Robert Taj Moore and Rebecca Sussman of the OCDETF/Narcotics 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.

nunez.complaint.pdf

NEWARK, N.J. – A former caseworker for the New Jersey Department of Children and Family Services, Division of Child Protection and Permanency, admitted possessing and transporting child pornography, U.S. Attorney Philip R. Sellinger announced today.

Trent Collier, 57, of Kearny, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court on May 21, 2024, to an indictment charging him with one count of possession of child pornography and one count of transportation of child pornography.

According to documents filed in this case and statements made in court:

On Sept. 28, 2021, Collier arrived at Newark Liberty International Airport aboard a flight from the Dominican Republic. Law enforcement officers searched Collier’s cellular phone and identified at least two images of child sexual abuse. In a statement to law enforcement, Collier admitted that he had previously sent child pornography to at least one other individual using his cellular phone and that that individual also sent child pornography to Collier’s cellular phone. A further search of Collier’s cellular phone uncovered multiple additional images of child sexual abuse, including images depicting the sexual exploitation of toddlers.

The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison. The charge of transportation of child pornography carries a statutory mandatory minimum penalty of five years in prison and a maximum penalty of 20 years in prison. Each count also carries a fine of up to $250,000 or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Oct. 10, 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; and the New Jersey Office of the Attorney General, under the direction of Attorney General Matthew J. Platkin, with the investigation. He also thanked the New Jersey State Police.

The government is represented by Assistant U.S. Attorney Lauren D. Kober of the General Crimes Unit in Newark.

collier.indictment.pdf

NEWARK, N.J. – A Russian citizen has been indicted for working as an “access broker” and selling unauthorized access to computer networks, including a victim company in New Jersey, U.S. Attorney Philip R. Sellinger, District of New Jersey.

Evgeniy Doroshenko, 31, aka “Eugene Doroshenko”, aka “FlankerWWH,” aka “Flanker,” of Astrkhan, Russia, is charged by indictment with one count of wire fraud and one count of fraud and related activity in connection with computers.

According to documents filed in this case and statements made in court:

From February 2019 to May 2024, Doroshenko devised a scheme whereby he gained unlawful access to victim computer systems and sold this access to others for a profit through a Russian language cybercrime forum located on the dark web. In January 2024, Doroshenko gained unauthorized access to the computer network of a victim company located in Bergen County, New Jersey. Doroshenko then offered to sell access to the victim company’s network to other cybercriminals via the cybercrime forum.

Cybercrime forums, like the one used by Doroshenko to sell access to victim computer networks, are online forums where cybercriminals promote and facilitate a wide variety of criminal activities including, among other activities, computer hacking and trafficking in stolen data.

The count of wire fraud carries a maximum punishment of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss resulting from the offense, whichever is greatest. The count of computer fraud carries a maximum punishment of five years in prison and a fine of $250,000, or twice the gross amount of gain or loss resulting from the offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge, Aaron Hatley, Newark Field Office, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney David E. Malagold of the Cybercrime Unit in Newark.

The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

doroshenko.indictment.pdf

NEWARK, N.J. – Nine people have been arrested for their alleged roles in a drug trafficking organization that distributed fentanyl, heroin, cocaine, and methamphetamine in Newark, U.S. Attorney Philip R. Sellinger announced today.

Jaquan Beard, 25, Joseph Feliciano, 40, Carlos Lopez, 50, George Lopez, 49, Tyree Malone, 36, and David Quinones, 29, all of Newark; Wilberto Cotto, 41, Reinaldo Cruz, 44, Steven Garcia, 48, Adolphus Hunter, 48, Jermaine Jones, 37, and Nelson Valentin, 37, all of Elizabeth, New Jersey; Joel Hernandez, 28, of Parlin, New Jersey; Jonathan Arce, 36, of Belleville, New Jersey; and Jose Correa, 53, of Yardley, Pennsylvania, are each charged by complaint with one count of conspiracy to distribute methamphetamine, cocaine, fentanyl, and heroin. George Lopez is also charged with one count of possession with intent to distribute methamphetamine and cocaine, one count of possession of firearms in furtherance of a drug trafficking crime, and one count of illegal possession of firearms and ammunition.

Reynaldo Cruz, 27, of Elizabeth, is charged by complaint with one count of possession with intent to distribute controlled substances and one count of conspiracy to use and carry a firearm during and in relation to a drug trafficking crime. 

Reynaldo Cruz and Quinones are scheduled to appear today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court. Arce, Cotto, Reinaldo Cruz, Feliciano, Hernandez, Hunter, and Carlos Lopez appeared before U.S. Magistrate Judge Michael A. Hammer in Newark federal court on May 16, 2024, and were detained. Jones, George Lopez, and Valentin are detained on state charges. Beard, Correa, Garcia, and Malone are at large.

According to documents filed in this case and statements made in court:

Reinaldo Cruz, Feliciano, Hernandez, and Quinones distributed controlled substances on behalf of the drug trafficking organization (DTO) in and around Essex and Union counties, New Jersey, from several specific distribution locations. Beard, Correa, Cotto, Garcia, Hunter, Jones, Carlos Lopez, Malone, and Valentin, in turn, received controlled substances, often from one of these locations, and distributed them on behalf of the DTO. Arce served as a source of supply of controlled substances for the DTO. The investigation has also revealed that George Lopez provided advice and connections regarding sources of supply of controlled substances from jail while he received cash from the DTO. Many of the defendants are members and associates of the Latin Kings street gang, and some members are known to possess firearms in connection with the DTO’s activities. The investigation has revealed that the DTO distributed in excess of 50 grams of methamphetamine, 5 kilograms of cocaine, 40 grams of fentanyl, and 100 grams of heroin.

The methamphetamine and cocaine conspiracy count carries a mandatory minimum penalty of 10 years in prison, maximum potential penalty of life in prison, and a $10 million fine.  The fentanyl and heroin conspiracy and methamphetamine and cocaine possession counts each carries a mandatory minimum penalty five years in prison, maximum potential penalty of 40 years in prison, and a $5 million fine. The possession with intent to distribute controlled substances count carries a maximum potential penalty of 20 years in prison and a $1 million fine. The possession of firearms in furtherance of a drug trafficking crime count carries a mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed. The conspiracy to use and carry a firearm during and in relation to a drug trafficking crime count carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The illegal possession of firearms and ammunition count carries a maximum potential penalty of 15 years in prison and a $250,000 fine. 

U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel and Chief Harvey A. Barnwell; and the Elizabeth Police Department, under the direction of Police Director Earl Graves and Chief Giacomo Sacca, with the investigation leading to the charges. He also thanked the Union County Police Department, under the direction of Chief Martin Mogensen; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti; Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; the Essex County Sherriff’s Department, under the direction of Sheriff Armando B. Fontoura; the Hudson County Department of Corrections, under the direction of Director Becky Scott; the Cranford Police Department, under the direction of Chief Ryan Greco; the Bloomfield Police Department, under the direction of Chief George Ricci; the New Jersey State Police SWAT Team, under the direction of Col. Patrick J. Callahan: the Newark Police Department, under the direction of Public Safety Director Fritz Fragé and Chief Emmanuel Miranda; the Hudson County Regional SWAT Team, under the direction of Prosecutor Esther Suarez; and the U.S. Marshals Services, under the direction of Special Agent in Charge Juan Mattos Jr.

The government is represented by Assistant U.S. Attorneys John Mezzanotte of the Organized Crime and Gangs Unit and Eli Jacobs of the General Crimes Unit of the U.S. Attorney’s Office.

The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

 

reynaldocruz.complaint.pdf arceetal.complaint.pdf

ATLANTIC CITY, N.J. – U.S. Attorney Philip R. Sellinger spoke on the False Claims Act Panel at the New Jersey State Bar Association’s Annual Meeting and Convention in Atlantic City, New Jersey.

U.S. Attorney Sellinger described the District of New Jersey’s leading role in rooting out fraud, kickbacks, and false claims in health care and other government enforcement across the country. He highlighted his office’s aggressive approach toward these cases and the substantial resources it devotes to them.

“The False Claims Act was originally enacted in 1863 in response to defense contractor fraud during the American Civil War, and it remains the federal government’s primary civil tool to address fraud that impacts federal spending. For example, in 2016, Olympus, a medical device company, entered into $646 million global resolution that included a $310 million False Claims Act settlement to resolve allegations of pervasive and systemic kickbacks related to the sale of their endoscopic devices and other equipment. The matter was initiated based upon a qui tam filed in our district, and the relator received a share of the FCA recovery amounting to more than $50 million.”

U.S. Attorney Philip R. Sellinger

The District of New Jersey employs a unique structure to help it combat healthcare and government fraud. It has two units tasked with enforcement in those areas, and those units have both criminal and civil Assistant U.S. Attorneys and support staff. These units often work in parallel on matters when appropriate, including False Claims Act cases.

U.S. Attorney Sellinger said that the District of New Jersey has increased its prosecutions of fraud matters, particularly in the wake of the government’s COVID relief programs. He noted that the office has created a criminal COVID Fraud Strike Force, which includes three additional Assistant U.S. Attorneys dedicated to COVID fraud enforcement. U.S. Attorney Sellinger said protecting taxpayers and punishing and deterring fraud on the government has been and will remain an important priority for the office.            

The False Claims Act allows private citizens to file suit under seal on behalf of the United States to seek restitution and penalties for fraud involving federal funds. Once such a suit is filed, the government will investigate the claims and pursue a recovery in appropriate instances.

The Act provides that these “whistleblowers,” or relators, as they are called, may receive a share of any recovery up to 30 percent in some cases. Settlements and judgments under the False Claims Act nationwide exceeded $2.68 billion in the fiscal year ending Sept. 30, 2023. Recoveries since 1986, when Congress substantially strengthened the civil False Claims Act, now total more than $75 billion.

In Fiscal Year 2023, the District of New Jersey collected $120.7 million in affirmative civil enforcement actions.

ATLANTIC CITY, N.J. – U.S. Attorney Philip Sellinger delivered remarks on domestic and international cybercrime trends at the 2024 New Jersey State Bar Association conference.

He participated on a panel which included members of U.S. Attorney Sellinger’s staff and the FBI. On May 15, 2024, the panel discussed several aspects of the investigation and prosecution of cybercrime, including the recent 11 nation disruption of LockBit, at times the most active and destructive ransomware variant in the world, led by the FBI and the United Kingdom’s National Crime Agency, and the District of New Jersey’s indictment of LockBit’s developer and leader, Russian national Dimitry Khoroshev. 

“The indictment alleges that Khoroshev acted as LockBit’s leader from its inception and that Lockbit allegedly attacked more than 2,500 victims in at least 120 countries, including 1,800 victims in the United States. LockBit victims included individuals, small businesses, multinational corporations, hospitals, schools, nonprofit organizations, critical infrastructure, and government and law enforcement agencies. Khoroshev and his conspirators allegedly extracted at least $500 million in ransom payments from their victims and caused billions of dollars in broader losses, such as lost revenue, incident response, and recovery.”

U.S. Attorney Philip R. Sellinger

To date, six individuals, including Khoroshev, have been charged by the U.S. Attorney’s Office in the District of New Jersey for their participation in the LockBit conspiracy.

Other topics discussed by the panel included the recent spike in cryptocurrency confidence scams, tech support schemes, and how Artificial Intelligence is affecting cybercrime investigations.

The U.S. Attorney’s Office remains devoted to combatting all forms of cybercrime and obtaining justice for its victims.

The charges and allegations against the defendants in the LockBit case are merely accusations, and they are presumed innocent unless and until proven guilty.

CAMDEN, N.J. – An Egyptian national living in New Jersey was sentenced to 18 months in prison for engaging in a fraudulent scheme to misappropriate more than approximately $430,000 belonging to his former New Jersey employer, U.S. Attorney Philip R. Sellinger announced today.

Abdelrahman Ahmed-Elkilani, 28, a citizen of Egypt who formerly resided in Florida, and now resides in Woodland Park, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of wire fraud. Judge Kugler imposed the sentence on May 15, 2024, in Camden federal court.

According to documents filed in this case and statements made in court:

From January 2017 through July 2019, Ahmed-Elkilani misappropriated more than $430,000 in funds belonging to his former employer by taking advantage of his role as a marketing manager for the company and his access to other employees’ operator codes, as well as the company’s membership accounts to create and execute multiple false transactions. These transactions enabled Ahmed-Elkilani to misappropriate funds for his own personal use and benefit.

Ahmed-Elkilani misappropriated $417,075 held in the company’s deposit account and caused approximately $275,000 of those funds to be transferred to his personal credit or debit cards. He also misappropriated $13,674 in additional company funds through other fraudulent methods.

In addition to the prison term, Judge Kugler sentenced Ahmed-Elkilani to three years of supervised release and ordered restitution and forfeiture in the amount of $430,749.

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 sentencing.

The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the Economic Crimes Unit in Newark.

NEWARK, N.J. – A Colombian citizen today admitted conspiring to import hundreds of kilograms of cocaine into the United States from Colombia, Venezuela, and the Dominican Republic, U.S. Attorney Philip R. Sellinger announced.

Edgar Ruiz-Gomez, aka “Gono,” 57, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to count one of an indictment charging him with conspiracy to import five kilograms or more of cocaine.

According to documents filed in this case and statements made in court:

From 2016 through January 2020, Ruiz-Gomez and others conspired to import hundreds of kilograms of cocaine. Ruiz-Gomez acknowledged holding a managerial role in this conspiracy, which involved more than five individuals.

The count to which Ruiz-Gomez pleaded guilty carries a statutory mandatory minimum sentence of 10 years in prison, a maximum penalty of life in prison, and a fine of up to $10 million. Sentencing is scheduled for Nov. 5, 2024.

U.S. Attorney Sellinger credited special agents and task force officers with the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Cheryl Ortiz in Newark, and special agents and task force officers with the DEA operating in Colombia, the Dominican Republic, and Puerto Rico, with the investigation leading to today’s guilty plea. He also thanked the Justice Department’s Office of International Affairs; the Narcotic and Dangerous Drug Section’s Judicial Attaché’s Office at the U.S. Embassy in Bogota; Colombian law enforcement authorities; and the U.S. Marshals Service for their assistance.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The government is represented by Assistant U.S. Attorney Farhana C. Melo of the OCDETF/Narcotics Unit in Newark.

ruizgomez.indictment.pdf

CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 171 months in prison for his role in a conspiracy to distribute methamphetamine, U.S. Attorney Philip R. Sellinger announced.

Michael Venditti, 39, of Camden, previously pleaded guilty before Senior U.S. District Judge Robert B. Kugler to an information charging him with conspiring to distribute 50 grams or more of methamphetamine. Judge Kugler imposed the sentence today in Camden federal court.

According to documents filed in this case and statements made in court:

From March 2021 through September 2021, Venditti coordinated an operation by which he received U.S. Postal Service Parcels collectively containing more than 100 pounds of methamphetamine. Venditti distributed the methamphetamine he received to others. On Sept. 20, 2021, Venditti and his conspirators were encountered at a residence in Camden. When law enforcement searched the residence, they seized approximately eight pounds of methamphetamine, approximately $29,000 in U.S. currency, scales, and other drug paraphernalia.

In addition to the prison term, Judge Kugler sentenced Venditti to five years of supervised release and ordered him to forfeit $29,433.

U.S. Attorney Sellinger credited troopers assigned to the New Jersey State Police Strategic Investigations Unit South, under the direction of Col. Patrick J. Callahan; postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Christopher A. Nielsen; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the leadership of Special Agent in Charge Matthew Modafferi; 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.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.

NEWARK, N.J. – A former New York-based branch manager of an international financial institution today admitted using his position to steal more than $208,000 from a customer, U.S. Attorney Philip R. Sellinger announced.

James Gomes, 43, of New York, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of wire fraud affecting a financial institution.

According to documents filed in this case and statements made in court:

In early 2020, Gomes worked as the branch manager of a New York-based branch of an international bank. Starting in January 2020, Gomes used his position to improperly access bank accounts in the name of a bank customer. Without approval, Gomes enrolled the customer’s accounts in the bank’s online banking services. Gomes linked his personal phone number to the customer’s accounts and created a fraudulent email address containing the customer’s name, which he similarly linked to the customer’s accounts. Gomes also used the fraudulent email address to “correspond” with his official bank email address to make it appear that the customer was sending instructions to the bank. In March and April 2020, Gomes fraudulently transferred a total of $208,939 from the customer’s accounts to Gomes’ personal bank accounts at other financial institutions, to his personal investment account, and to pay his personal cell phone bill.  Gomes continued the scheme even after the customer died on April 5, 2020. 

The charge of wire fraud affecting a financial institution carries a maximum penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 6, 2024.

U.S. Attorney Sellinger credited special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, New York Region, under the direction of Special Agent in Charge Patricia Tarasca, with the investigation leading to the guilty plea. He also thanked the Morristown Police Department.

The government is represented by Assistant U.S. Attorney Marko Pesce of the Economic Crimes Unit in Newark and Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Justice Department’s Money Laundering and Asset Recovery Section.

gomes.information.pdf

CAMDEN, N.J. – A manager for a drug trafficking organization that purchased over 100 kilograms of cocaine in Puerto Rico and shipped the kilograms to residences in Philadelphia, Pennsylvania, and southern New Jersey was sentenced to 120 months in prison for his role in the conspiracy, U.S. Attorney Philip R. Sellinger announced today.

Jose Gonzalez, 51, Philadelphia, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with one count of conspiring to distribute five kilograms or more of cocaine. Judge O’Hearn imposed the sentence on May 14, 2024, in Camden federal court.

According to documents filed in this case and statements made in court:

From March 2019 to August 2020, Gonzalez and other conspirators traveled on commercial flights from Philadelphia International Airport to San Juan, Puerto Rico, on numerous occasions. They purchased multi-kilogram quantities of cocaine from wholesale drug suppliers based in the San Juan area in exchange for cash payments. Gonzalez and the other conspirators then shipped the kilograms of cocaine by overnight delivery from U.S. Post Offices in San Juan to addresses in Philadelphia and southern New Jersey. Gonzalez resold the kilograms to other drug dealers in the Philadelphia area for a profit. Gonzalez admitted that he had a management role in the conspiracy, and that he and the other conspirators purchased and shipped over 100 kilograms of cocaine.

When Gonzalez was arrested in August 2020, agents seized over $120,000 in cash during a search of his residence in Philadelphia and a 9mm handgun from an auto garage that Gonzalez operated in Philadelphia. As part of his plea agreement, Gonzalez agreed to the forfeiture of the U.S. currency and the 9mm handgun, as well as the forfeiture of a Dodge Ram pickup truck that was used in connection with the drug trafficking conspiracy.

In addition to the prison term, Judge O’Hearn sentenced Gonzalez to five years of supervised release and ordered forfeiture of $120,900, a 9 mm handgun, and a Dodge Ram 3500 pickup truck.

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Christopher A. Nielsen; agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the leadership of Special Agent in Charge Matthew Modafferi; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the FBI, under the direction of Special Agent in Charge Wayne A. Jacobs in Philadelphia; troopers assigned to the New Jersey State Police Strategic Investigations Unit South, under the direction of Col. Patrick J. Callahan; and officers and detectives of the Philadelphia Police Department, under the direction of Police Commissioner Kevin Bethel, with the investigation leading to the sentencing.

The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.

NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted structuring over $250,000 in bank deposits, U.S. Attorney Philip R. Sellinger announced.

Abdel Elgendy, 67, of Piscataway, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with structuring.

According to documents filed in this case and statements made in court:

From March 2021 to November 2021, Elgendy purposefully engaged in a pattern of structuring activity to deposit over $250,000 in cash at financial institutions in ways to avoid reporting requirements for transactions in excess of $10,000. For example, during one of the deposits in September 2021, Elgendy accidentally provided a teller with more than $10,000 to be deposited. When the teller informed him that the cash totaled more than $10,000, Elgendy took some of the money back from the teller to ensure that the total deposited amount was less than $10,000.

The count of structuring to which Elgendy pleaded guilty carries a maximum penalty of 10 years in prison and a fine of $500,000. Sentencing is scheduled for Oct. 29, 2024.

U.S. Attorney Sellinger credited special agents of the Port Authority of New York and New Jersey, under the direction of Inspector General John Gay; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; and special agents with the Department of Defense Inspector General, Defense Criminal Investigative Service, Cyber Field Office, under the direction of Special Agent in Charge Kenneth A. DeChellis, with the investigation leading to the guilty plea. He also thanked the Springfield, New Jersey, and Teaneck, New Jersey, police departments.

The government is represented by Assistant U.S. Attorneys Carolyn Silane and Benjamin Levin of the Criminal Division in Newark.

elgendy.information.pdf

TRENTON, N.J. – A Maryland man was sentenced to 12 months and one day in prison for participating in a conspiracy to defraud health insurance companies through a multistate patient brokering scheme in which he directed recruiters to bribe drug-addicted individuals to enroll in drug rehabilitation in exchange for referral fees from the rehabilitation centers, U.S. Attorney Philip R. Sellinger announced today.

John Devlin, 37, of Baltimore, Maryland, pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to an information charging him with one count of conspiracy to commit health care fraud. Judge Sheridan imposed the sentence on May 14, 2024.

Six other individuals have previously pleaded guilty for their roles in the scheme: Peter Costas; Seth Logan Welsh; John C. Devlin; Akikur Mohammad; Lauren Philhower; and Anastasia Passas.

According to documents filed in the case and statements made in court:

Devlin, Dickau, and Welsh, and their conspirators owned and operated a marketing company in California. Devlin, Dickau, and Welsh used the marketing company to help orchestrate a scheme in New Jersey, Maryland, California, and other states that involved bribing individuals addicted to heroin and other drugs to enter into drug rehabilitation centers so Devlin, Dickau, and Welsh, and their conspirators could generate referral fees from those facilities. Two facilities in California that paid such referral fees were owned or operated by Mohammad, Philhower, and Passas.

The marketing company run by Devlin, Dickau, and Welsh maintained contractual relationships with drug treatment facilities around the country, including the ones run by Mohammad, Philhower, and Passas. The marketing company also engaged a nationwide network of recruiters – including Costas in New Jersey – to identify and recruit potential patients, from New Jersey and other states, who were addicted to heroin or other drugs and who had robust private health insurance.

To convince drug-addicted individuals to travel to and enroll in rehabilitation when they otherwise would not have, Costas and other recruiters offered to bribe them – often as much as several thousand dollars – with the approval of Devlin, Dickau, and Welsh. Once the patients agreed to enroll in drug rehabilitation in exchange for the offered bribe, Devlin, Dickau, Welsh, and Costas would arrange and pay for cross-country travel to the drug treatment centers in California and other states, in concert with the owners of the facilities themselves, including Mohammad, Philhower, and Passas. Costas would stay in touch with the New Jersey patients at the facilities and specifically instruct them to stay at the facilities long enough to generate referral payments, and he would pass along information to Devlin, Dickau, and Welsh about the patients’ status at the facilities. Devlin, Dickau, and Welsh would monitor the other patients they brokered by speaking to other recruiters or to the owners and employees of the drug treatment facilities themselves.

The drug treatment facilities run by Mohammad, Philhower, and Passas had contracts with the marketing company. Those facilities typically paid the marketing company a fee of $5,000 to $10,000 per patient referral. Devlin, Dickau, and Welsh, and their conspirators shared that money among themselves. Costas and other recruiters received approximately half that amount for each patient they brokered. Devlin, Dickau, and Welsh, and their conspirators brokered scores of patients to drug treatment facilities around the country, including the ones run by Mohammad, Philhower, and Passas, and the conspiracy caused millions of dollars of losses for health insurers.

In addition to the prison term, Judge Sheridan sentenced Devlin to three 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 the sentencing. He also thanked the FBI, under the direction of Acting Assistant Director in Charge Amir Ehsaei in Los Angeles and the District Attorney’s Office in Orange County, California.

The government is represented by Assistant U.S. Attorneys Jason S. Gould, Chief of the Health Care Fraud Unit in Newark, Angelica Sinopole of the Health Care Fraud Unit in Newark, and Aaron Webman of the Opioid Abuse Prevention and Enforcement Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey, woman was sentenced to 144 months in prison for her role in a one-night crime spree involving robberies and shootings in Jersey City, New Jersey, U.S. Attorney Philip R. Sellinger announced today.

Siobhan Chandler, 21, of Newark, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an indictment charging her with conspiracy to commit Hobbs Act robbery, conspiracy to use and carry a firearm in relation to crime of violence, attempted Hobbs Act Robbery, Hobbs Act robbery, and using and carrying a firearm in relation to crime of violence. Judge Martinotti imposed the sentence on May 14, 2024, in Newark federal court. The charges against her conspirator, Rodney Williams, are merely accusations, and he is presumed innocent unless and until proven guilty.

According to documents filed in this case and statements made in court:

On the evening of Nov. 14, 2023, Chandler and Williams robbed a gas station, where Williams pointed his gun at an attendant and demanded money. Chandler and Williams threatened force, violence, or fear of injury to two employees by demanding money while pointing a firearm at the employees. Chandler and Williams then fled.

Chandler and Williams later entered another store, and Williams again pointed his firearm at a clerk and demanded money. The clerk handed money to Williams and he and Chandler then fled.

Chandler and Williams entered a nearby restaurant and threatened force, violence or the fear of injury to a cashier. Williams pointed his gun at the cashier and demanded money. Williams discharged the firearm, shooting the cashier in the chest. The cashier handed money to Williams, after which Williams and Chandler fled.

In addition to the prison term, Judge Martinotti sentenced Chandler to five years of supervised release.

U.S. Attorney Sellinger credited officers of the Jersey City Police Department, under the direction of Public Safety Director James Shea; and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to the sentencing. He also thanks the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.

CAMDEN, N.J. – An Atlantic County, New Jersey, man was charged today with possessing unregistered machineguns and other items, U.S. Attorney Philip R. Sellinger announced.

Michael John James, 30, of Somers Point, New Jersey, is charged by complaint with one count of possessing unregistered machineguns and other firearms, as defined under the National Firearms Act. He appeared today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court and was detained.

According to documents filed in this case and statements made in court:

In February 2024, U.S. Customs and Border Protection personnel intercepted two packages that contained suspected controlled substances and were addressed to James’ residence. On Feb. 27, 2024, investigators conducted a controlled delivery of the packages, observed James bring the packages into his residence, and executed a search warrant at the residence, where they recovered dozens of firearms and ballistics items. Among the recovered items were three operable machine guns, an operable weapon modified to be shorter than a standard rifle, an operable weapon modified to be shorter than a standard shotgun, and three silencers.

The possession of an unregistered machinegun or other firearm, as defined under the National Firearms Act, charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000.

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; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; personnel from the Atlantic County Prosecutor’s Office, under the direction of Prosecutor William Reynolds; and officers of the Somers Point Police Department, under the direction of Chief Robert C. Somers, with the investigation leading to today’s arrest.

The government is represented by Special Assistant U.S. Attorney Katelyn Waegener and Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.

The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

james.complaint.pdf

NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 33 months in prison for his role in a conspiracy that targeted residences belonging to Asian small business owners, U.S. Attorney Philip R. Sellinger announced.

Kevin Jackson, 57, of Rahway, New Jersey, previously pleaded guilty before U.S. District Judge Evelyn Padin to an information charging him with one count of conspiracy to commit interstate transportation of stolen property. Judge Padin imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

From Dec. 2, 2016, to March 20, 2019, Jackson participated in a conspiracy to burglarize the residences of certain Asian small business owners living in New Jersey, New York, Pennsylvania, and Delaware, stealing large sums of money, valuable jewelry, and other items and transporting the stolen goods in interstate commerce, including to residences in New Jersey and Pennsylvania.

In addition to the prison term, Judge Padin sentenced Jackson to three years of supervised release and ordered restitution of $294,586.

U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing. He also thanked the South Plainfield Police Department, the Middlesex County Prosecutor’s Office, the New Jersey State Police, the Port Authority of New York and New Jersey, the U.S. Department of Labor, the U.S. Department of State, the Drug Enforcement Administration, the U.S. Customs and Border Protection, the U.S. Department of Transportation, the U.S. Postal Inspection Service, the Union County Prosecutor’s Office, and the Bernards Township, Bethlehem Township, Cherry Hill, Cinnaminson, Clark, Colonial Regional, Cranford, Delaware State Police-Troop 2, Delran, Edison, East Brunswick, East Hanover, Eatontown, Elizabeth, Essex County Sheriff’s Office-Bureau of Narcotics, Evesham Township, Exeter Township, Fair Lawn, Forks Township, Fort Lee, Franklin Township, Glassboro, Gloucester Township, Hackensack, Haverstraw, Hazlet, Highland Park, Hillside, Hillsborough Township, Howell Township, Jackson, Kenilworth, Lawrence Township, Linden, Lyndhurst, Mahwah, Marlboro Township, Maywood, Middletown, Montgomery County, Montville, Morris Township, Mount Laurel, Mountainside, New Castle County, New Providence, New York Police Department’s 105th Detective Squad, North Brunswick, North Plainfield, Old Bridge, Paramus, Parsippany, Phillipsburg, Piscataway, Pocono Mountain Regional, Pocono Township, Raritan, Roselle Park, Sayreville, Somerville, South Brunswick, South River, South Whitehall Township, Spotswood, Town of Tuxedo, Tinton Falls, Toms River, Township of Ocean, Union, Upper Macungie Township, Wall Township, Warren, Washington Township, Watchung, Westfield, Whitehall Township, and Woodbridge Township police departments.

The government is represented by Assistant U.S. Attorney Dong Joo Lee of the U.S. Attorney’s Office Cybercrime Unit in Newark.

CAMDEN, N.J. – A Cape May County, New Jersey, man today admitted misappropriating postal funds, U.S. Attorney Philip R. Sellinger announced.

Austin T. Mahan, 44, of Cape May Court House, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him  with misappropriating over $1,000 in postal funds.

According to documents filed in this case and statements made in court:

For approximately six months in 2022 and 2023, Mahan, who worked as a United States Postal Service (USPS) supervisor at the Sea Isle and Somers Point Post Offices at various times, misused USPS credit cards to make personal purchases at various retail stores operating in and around New Jersey. These purchases included thousands of dollars’ worth of gift cards as well as various home décor items, home renovation materials, power and handheld tools, tool storage equipment, and other personal items. The unauthorized expenses totaled $54,356.

The charge to which Mahan pleaded guilty is punishable by a maximum of 10 years in prison and a maximum potential fine of $250,000, or a sum equal to the amount of value of the money or property misappropriated from the offense. Sentencing is scheduled for Sept. 25, 2024.

U.S. Attorney Sellinger credited agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to the complaint.

The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the Special Prosecutions Division in Camden.

mahan.information.pdf

TRENTON, N.J. – A Middlesex County, New Jersey, woman was sentenced to 24 months in prison for conspiring to illegally obtain over $400,000 in COVID-19 unemployment benefits, U.S. Attorney Philip R. Sellinger announced today.

Yanira Abreu, 42, of Keasbey, New Jersey, previously pleaded guilty before U.S. District Judge Robert Kirsch to an information charging her with one count of conspiracy to commit wire fraud. Judge Kirsch imposed the sentence on May 9, 2024, in Trenton federal court.

Abreu’s conspirator, Christopher Valerio, 33, of Perth Amboy, New Jersey, previously pleaded guilty and was sentenced on April 30, 2024, to 30 months in prison. A third conspirator, Jose Tavares of New York, is charged by indictment and his case remains pending.  

According to documents filed in this case and statements made in court:

From July 2020 through February 2021, Abreu, Valerio, and others submitted false and fraudulent applications for unemployment insurance benefits to the New York Department of Labor (NYDOL) through fictitious online profiles that they created using personally identifiable information, including names, dates of birth, and Social Security numbers, of other individuals without their consent. Once the NYDOL processed and approved the fraudulent applications, Abreu and her conspirators obtained debit cards with illegally obtained funds totaling $444,728, which they used for personal gain. 

In addition to the prison term, Judge Kirsch sentenced Abreu to two years of supervised release and ordered restitution and forfeiture, each in the amount of $444,728.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to the sentencing.  

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 government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.

The charges and allegations against Tavares are merely accusations, and Taveras is presumed innocent unless and until proven guilty.