District of New Jersey
Press releases recorded for this federal judicial district.
Hudson County Man Charged with Production of Child PornographyRead the Press Release
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.pdfFormer New Jersey Department of Children and Family Services Caseworker Admits Possession and Transportation of Child PornographyRead the Press Release
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.pdfRussian Citizen Charged with Fraud, Selling Access to Victim Computer NetworksRead the Press Release
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.pdfSixteen Individuals Charged for Their Roles in Drug Trafficking OrganizationRead the Press Release
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.pdfU.S. Attorney Sellinger Speaks at New Jersey State Bar Association’s Annual Meeting and ConventionRead the Press Release
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.
U.S. Attorney Philip R. Sellinger“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.”
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.
U.S. Attorney Sellinger Presents on Cybercrime Trends at New Jersey State Bar Association ConferenceRead the Press Release
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.
U.S. Attorney Philip R. Sellinger“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.”
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.
Egyptian National Sentenced to 18 Months in Prison for Wire Fraud Scheme to Defraud Former Employer in New JerseyRead the Press Release
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.
Colombian National Admits Conspiring to Transport Hundreds of Kilograms of Cocaine into United StatesRead the Press Release
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.pdfCamden County Man Sentenced to 171 Months in Prison for Methamphetamine TraffickingRead the Press Release
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.
Bank Manager Admits Using Position to Steal Hundreds of Thousands of Dollars from CustomerRead the Press Release
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.pdfPhiladelphia Man Sentenced to 10 Years in Prison for Role in Drug Trafficking OrganizationRead the Press Release
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.
Middlesex County Man Admits Structuring over $250,000 in Deposits to Evade Reporting RequirementsRead the Press Release
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.pdfMaryland Man Sentenced to Year and a Day in Prison for Multistate Patient Brokering and Bribery SchemeRead the Press Release
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.
Essex County Woman Sentenced to 12 Years in Prison for Role in Three Robberies and Two Shootings in Jersey CityRead the Press Release
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.
Atlantic County Man Charged with Possessing Unregistered Machineguns and Other ItemsRead the Press Release
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.pdfUnion County Man Sentenced to 33 Months in Prison for Role in Conspiracy to Target Asian Small Business Owners in Residential BurglariesRead the Press Release
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.
Postal Service Supervisor Admits Misappropriation of Postal FundsRead the Press Release
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.pdfMiddlesex County Woman Sentenced to Two Years in Prison for Stealing COVID-19 Unemployment BenefitsRead the Press Release
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.
Mercer County Man Charged with Communicating Threats to Attack White PeopleRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was arrested Friday night for transmitting via the internet a post containing threats to kill white people, U.S. Attorney Philip R. Sellinger announced today.
Joshua Cobb, 23, of Trenton, New Jersey, was arrested and charged by complaint with one count of transmitting a threat in interstate and foreign commerce. He is scheduled to appear this afternoon before U.S. Magistrate Judge Rukhsanah Singh in Trenton federal court.
According to documents filed in this case and statements made in court:
On Dec. 17, 2022, Cobb used a social media application to post a message, stating:
- I want to cause mayhem on the white community. The reason i specifically want to target white people is because as a black male, they will NEVER understand my struggles. Same way I will never understand their struggles, but I don’t care to. I want to erase them. All of them really, but in this case as many as I possibly can. As of today I have officially began planning my attack. It is going to take place in 2023 in the state of New Jersey, I have not chosen a exact date but I am going to be sure it is close to an important holiday to their race. I have a location in mind already which I have frequented for the past year and I am certain nobody there is armed to be able to stop me from spraying them to the ground. I have already acquired 2 of the 4 firearms I plan to use for my attack, and I also know my entry and exit points already after the mayhem.
Following this post, in April and May 2023, Cobb made several additional posts on another social media application, in which he discussed his hopes of progressing into a serial killer, stating:
- Imagine the rush you’d feel while shooting some sh*t up. Probably could get literally high off the adrenaline alone. I’d probably OD on my own adrenaline after the 10th body goes down.
- 100% someday. Just not yet thought. I want to continue training and buying more ammunition.
- Tbh I hope I do progress into a serial killer because I f*cking hate life man... But one day everyone will suffer. I promise I will make everyone feel my f*ucking pain. My deep, sincere, raw, & sharp pain.
- There is no way out for me. The only way out is bloodshed.
- Just wait man. Remember [my username]. [I] will leave clues when im done.
- I’m just leaving evidence for whoever investigates my case.
Cobb joined the U.S. Marine Corps in 2023 and began basic training in June 2023. Cobb was stationed in California until his recent discharge.
In statements to law enforcement, Cobb admitted to writing the above-described posts and provided detailed information on locations he had considered as possible targets for his attack, including a Jersey Strong gym and an Aldi grocery store in Robbinsville, New Jersey. Cobb also discussed his access to guns and idolized other mass shooters.
A lawful search of Cobb’s cell phone revealed additional notes from April and May 2023 expressing Cobb’s homicidal ideations, stating:
- It’s all a f*cking game and you all are going to die. I currently lack the means necessary to kill as many as I intend to but one day I will have the available resources (finance) to purchase the appropriate weaponry for my killing(s).
- All my life I have been doubyed… Ive been taken as the joke… ive been f*cked around with… well now its my turn. I am going to kill one of you mother*ckers I f*cking hate humanity. All of you f*cking duck and I don’t give a single f*ck about any of you though I may appear I do.
- Im ready to grt to the good part of my story where I start taking you mother f*ckers out and killing you all… My rampage will soon happen… I plan to now continue accumulating the necessary equipment needed to execute. Once all equipment is in, time will then tell. You will all die.
- I hate all of this sh*t and I feel like my only way out of the pain and suffering is by exploding. So I await… I await that moment so I can make those moments final. For whomever… myself or a victim.
Cobb’s phone also contained notes on how to bring guns into New Jersey.
The charge of transmitting a threat in interstate and foreign commerce is punishable by a maximum penalty of five years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents and task force officers of the FBI Newark Joint Terrorism Task Force, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the arrest. He also thanked the Naval Criminal Investigative Service; the U.S. Attorney’s Office for the Central District of California, under the direction of U.S. Attorney E. Martin Estrada, agents of the FBI Field Office in Los Angeles, California, under the direction of Acting Assistant Director in Charge Mehtab Syed; the Hamilton Police Division, under the direction of Chief Kenneth R. DeBoskey; the Robbinsville Police Department, under the direction of Chief Michael K. Polaski; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Office’s National Security Unit, with assistance from the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
cobb.complaint.pdfBrooklyn Man Indicted in Scheme to Steal Checks and Defraud BanksRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man was charged for his role in a scheme to steal and alter checks from the mail and fraudulently obtain funds from banks by depositing the stolen and altered checks into bank accounts belonging to individuals other than the intended recipients, U.S. Attorney Philip R. Sellinger announced today.
Noah Aranzamendi, 25, of Brooklyn, New York, is charged by indictment with conspiracy to commit bank fraud and the receipt and possession of stolen mail. Aranzamendi was arraigned on May 9, 2024, before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
From February 2020 to February 2022, Aranzamendi conspired with others to steal checks from the mail in Bergen County and elsewhere, which he then sold to third parties or deposited, sometimes in altered or duplicate form, into the bank accounts of complicit accountholders who had provided access to their bank accounts for the scheme. Aranzamendi obtained stolen official USPS arrow keys, which Aranzamendi used to access mail and steal checks directly from USPS receptacles. Aranzamendi and his conspirators then targeted the accounts associated with the checks he stole and created false identifications in the names of the accountholders, which he and his conspirators used to make fraudulent withdrawals from those accounts. The scheme resulted in losses to victims of at least $240,213.
The count of bank fraud conspiracy is punishable by a maximum penalty of 30 years in prison. The count of receipt and possession of stolen mail is punishable by a maximum penalty of five years in prison. The bank fraud conspiracy count is also punishable by a fine of up to $1 million; all other charges are punishable by a maximum potential fine of up to $250,000 or twice the pecuniary gain or loss, whichever is greatest.
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; and special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office. He also thanked the Teaneck Police Department under Chief Andrew R. McGurr.
The government is represented by Assistant U.S. Attorney Rachelle M. Navarro of the Organized Crime and Gangs Unit in Newark.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
aranzamendi.indictment.pdfFour Bergen County People Charged for Roles in Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – Four Bergen County, New Jersey, residents were arrested for their alleged roles in a drug trafficking organization that distributed heroin in Newark, U.S. Attorney Philip R. Sellinger announced today.
Ernesto Adon Martinez, 38, Luis Arismedy Gomez Torres, 28, and Deury Luis Gomez Torres, 25, all of Fort Lee, New Jersey, are each charged by complaint with one count of conspiracy to distribute fentanyl, methamphetamine, and heroin. Jenny Desiree Rosario-Lorenzo, 28, also of Fort Lee, is charged with one count of possession with intent to distribute fentanyl and cocaine and aiding and abetting the same.
Three defendants appeared before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court on May 8, 2024, and were detained. Deury Gomez Torres remains at large.
According to documents filed in this case and statements made in court:
The defendants are members and associates of a drug trafficking organization that dealt fentanyl, methamphetamine, and heroin in and around Fort Lee and New York. The organization is affiliated with the Trinitarios street gang. The investigation revealed that the drug trafficking organization distributed in excess of 400 grams of fentanyl and more than 50 grams of methamphetamine.
The fentanyl and methamphetamine 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 heroin conspiracy and drug possession counts each carries a maximum potential penalty of 20 years in prison and a $1 million 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; U.S. Customs and Border Protection officers, under the direction of Port Director TenaVel Thomas; Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under the direction of Newark Field Office Director John Tsoukaris; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge Ross A. Marchetti; the Fort Lee Police department, under the direction of Chief Matthew J. Hintze; the New York City Police Department, under the direction of Police Commissioner Edward A. Caban; and the Belleville Police Department, under the direction of Chief Mark Minichini, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jason Goldberg of the U.S. Attorney’s Office’s Organized Crime and Gangs 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.
rosariolorenzo.complaint.pdf martinezetal.complaint.pdfCalifornia Man Sentenced to 87 Months in Prison for Selling Guns and Methamphetamine over InternetRead the Press Release
NEWARK, N.J. – A California man was sentenced today to 87 months in prison for conspiring to unlawfully sell firearms and methamphetamine via the internet, U.S. Attorney Philip R. Sellinger announced.
Angelo Chavez, 24, of Manteca, California, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count each of conspiracy to unlawfully deal in firearms and conspiracy to distribute methamphetamine. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Starting in August 2020, undercover law enforcement agents began communicating with Chavez and several conspirators via a social media platform, where Chavez and his conspirators advertised for sale various narcotics and firearms. From August 2020 and December 2021, undercover law enforcement agents purchased 13 firearms from Chavez and his conspirators, including six AR-15 firearms, two of which were shipped with auto sear switches which enable the firearms to function as fully automatic machine guns. Undercover agents also purchased methamphetamine from Chavez and his conspirators. Chavez and his conspirators were paid mostly in cryptocurrency and mailed the drugs and guns from addresses in California to New Jersey.
In addition to the prison term, Judge Cecchi sentenced Chavez to three years of supervised release.
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; and special agents with 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 the sentencing.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Criminal Division in Newark.
New York Man Admits Possessing Cocaine and Fentanyl with Intent to DistibuteRead the Press Release
CAMDEN, N.J. – – A New Jersey man pleaded guilty today to possession of cocaine and fentanyl with intent to distribute, U.S. Attorney Philip R. Sellinger announced.
Kedwin Ramon Then Gutierrez, 35, of Bronx, New York, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of possession of cocaine and fentanyl with intent to distribute.
According to documents filed in this case and statements made in court:
On May 1, 2023, Gutierrez travelled from his home in New York to a rest station in Burlington County, New Jersey, where he gave a box containing over $200,000 to Mauricio Silva Jr. In return, Silva gave Gutierrez a black duffel bag containing approximately 27 kilograms of cocaine and nine kilograms of fentanyl. Silva is charged by complaint and those charges remain pending.
The count to which Gutierrez pleaded guilty is punishable by a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Sept. 10, 2024.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, New York Field Division, under the direction of Special Agent in Charge Frank A. Tarentino III, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Joseph McFarlane of the U.S. Attorney’s Office in Camden.
The charges and allegations in the complaint against Silva are merely accusations, and he is presumed innocent unless and until proven guilty.
gutierrez.information.pdfHudson County Woman Charged with Six Burglaries of U.S. Post OfficesRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, woman was arrested today for burglarizing two U.S. Post Offices on six occasions, U.S. Attorney Philip R. Sellinger announced.
Zyeama Johnson, 29, Jersey City, New Jersey, is charged by complaint with six counts of burglary of a post office. Johnson appeared today before U.S. Magistrate Judge Cathy Waldor in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
On Jan. 10, Jan. 13, Jan. 21, Jan. 26, and Feb. 3, 2023, Johnson broke into a post office in Hudson County. Johnson had previously been employed at the post office and terminated from her position. On each occasion, Johnson stole mail from the post office and loaded the stolen mail into her vehicle before driving off. On Feb. 7, 2023, Johnson broke into a second post office location and was arrested by law enforcement as she left the building.
Each count of burglary carries a maximum penalty of five years in prison and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the U.S. Postal Service, Officer of the Inspector General under the direction of Special Agent in Charge Matthew Modafferi; and the Jersey City Police Department with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Chana Zuckier of the General Crimes in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
johnson.complaint.pdfU.S. Charges Russian National with Developing and Operating Lockbit RansomwareRead the Press Release
NOTE: A video-recorded statement by U.S. Attorney Sellinger and FBI Special Agent in Charge Dennehy is available here: Lockbit Press Statement - YouTube. A video-recorded statement by Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, can be obtained here.
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the U.S. Justice Department unsealed charges today against a Russian national for his alleged role as the creator, developer, and administrator of the LockBit ransomware group from its inception in September 2019 through the present. At times, LockBit was the most prolific ransomware group in the world.
Dimitry Yuryevich Khoroshev (Дмитрий Юрьевич Хорошев), aka LockBitSupp, LockBit, and putinkrab, 31, of Voronezh, Russia, is charged by a 26-count indictment returned by a grand jury in the District of New Jersey.
“Earlier this year, the Justice Department and our U.K. law enforcement partners disrupted LockBit, a ransomware group responsible for attacks on victims across the United States and around the world,” said Attorney General Merrick B. Garland. “Today we are going a step further, charging the individual who we allege developed and administered this malicious cyber scheme, which has targeted over 2,000 victims and stolen more than $100 million in ransomware payments. We will continue to work closely alongside our partners, across the U.S. government and around the world to disrupt cybercrime operations like LockBit and to find and hold accountable those responsible for them.”
U.S. Attorney Philip R. Sellinger“Dmitry Khoroshev conceived, developed, and administered Lockbit, the most prolific ransomware variant and group in the world, enabling himself and his affiliates to wreak havoc and cause billions of dollars in damage to thousands of victims around the globe. He thought he could do so hidden by his notorious moniker ‘LockBitSupp,’ anonymous and free of any consequence, while he personally pocketed $100 million extorted from Lockbit’s victims. Through relentless investigation and coordination with our partners at CCIPS, the FBI and abroad, we have proven him and his coconspirators wrong. Today’s indictment marks a significant milestone in the investigation and prosecution of LockBit, which has already led to charges against five other LockBit affiliates – two of whom are in custody awaiting trial – and a major disruption of the now discredited LockBit operation.”
“As part of our unrelenting efforts to dismantle ransomware groups and protect victims, the Justice Department has brought over two dozen criminal charges against the administrator of LockBit, one of the world’s most dangerous ransomware organizations,” Deputy Attorney General Lisa Monaco said. “Working with U.S. and international partners, we are using all our tools to hold ransomware actors accountable—and we continue to encourage victims to report cyberattacks to the FBI when they happen. Reporting an attack could make all the difference in preventing the next one.”
“Today’s indictment of LockBit developer and operator Dimitry Yuryevich Khoroshev continues the FBI’s ongoing disruption of the LockBit criminal ecosystem,” FBI Director Christopher Wray said. “The LockBit ransomware group represented one of the most prolific ransomware variants across the globe, causing billions of dollars in losses and wreaking havoc on critical infrastructure, including schools and hospitals. The charges announced today reflect the FBI’s unyielding commitment to disrupting ransomware organizations and holding the perpetrators accountable.”
“Most people would not consider being accused of creating and administering the most destructive ransomware group in the world as a badge of honor,” FBI – Newark Special Agent in Charge James E. Dennehy said. “However, the alleged ringleader. Dmitry Khoroshev, wears it like an Olympic Gold Medal. Hackers lock down computer systems for ports of entry into countries, post offices, hospitals, children’s schools, banks, and the list goes on. Even more sinister and dangerous, these cybercriminals simply don’t care. It’s a game to them, sport to prove how smart they are. I can guarantee if their child couldn’t get medical care because another hacker had locked down a local hospital, they’d understand how unbelievably frustrating and debilitating their actions are. This isn’t a game of cat and mouse to us. We are charged as the FBI with stopping bad actors from breaking the law. Our action today, every day up until now and every day going forward, proves we won’t quit. We will see that these thieves are brought to justice.”
The indictment against Khoroshev unsealed today follows a recent disruption of LockBit ransomware in February by the U.K. National Crime Agency’s (NCA) Cyber Division, which worked in cooperation with the Justice Department, FBI, and other international law enforcement partners. As previously announced by the Department, authorities disrupted LockBit by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and by seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threatening to publish stolen data. That disruption succeeded in greatly diminishing LockBit’s reputation and its ability to attack further victims, as alleged by the indictment unsealed today.
In addition, as previously announced, law enforcement developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Victims targeted by this malware are encouraged to contact the FBI at https://lockbitvictims.ic3.gov/ to enable law enforcement to determine whether affected systems can be successfully decrypted.
According to the indictment and other documents previously unsealed in the District of New Jersey:
Khoroshev and the LockBit Ransomware Group
Khoroshev allegedly acted as the LockBit ransomware group’s developer and administrator from its inception in or around September 2019 through May 2024. Khoroshev and his affiliate coconspirators, grew LockBit into what was, at times, the most active and destructive ransomware variant in the world. The LockBit ransomware group 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 co-conspirators 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.
As with other major ransomware variants, Khoroshev allegedly designed LockBit to operate in the “ransomware-as-a-service” (RaaS) model. Under this model, Khoroshev himself acted as the LockBit developer and administrator. He allegedly arranged for the design of the LockBit ransomware, recruited other LockBit members – called affiliates – to deploy it against victims, and maintained the LockBit infrastructure, including an online software dashboard called a “control panel” to provide the affiliates with the tools necessary to deploy LockBit.
Khoroshev allegedly designed LockBit to operate in the “ransomware-as-a-service” (RaaS) model. In his role as the LockBit developer and administrator, Khoroshev arranged for the design of the LockBit ransomware code itself, recruited other LockBit members—called affiliates—to deploy it against victims, and maintained the LockBit infrastructure, including an online software dashboard called a “control panel” to provide the affiliates with the tools necessary to deploy LockBit. Khoroshev also maintained LockBit’s public-facing website—called a “data leak site”—for the publication of data stolen from victims who refused to pay a ransom.
As alleged in the indictment, Khoroshev—as the LockBit developer—typically received a 20% share of each ransom payment extorted from LockBit victims. The affiliate responsible for that attack would receive the remaining 80%. During the scheme, Khoroshev alone allegedly received at least $100 million in disbursements of digital currency through his developer shares of LockBit ransom payments.
LockBit infrastructure seized by law enforcement through the February 2024 disruption allegedly showed that Khoroshev retained copies of data stolen from LockBit victims who had paid the demanded ransom.
Khoroshev and his affiliate co-conspirators had falsely promised those victims that their stolen data would be deleted after payment. Moreover, after the February 2024 disruption, Khoroshev allegedly communicated with law enforcement and urged them to disclose the identities of his RaaS competitors—whom Khoroshev called his “enemies”—in exchange for his services.
Khoroshev is charged with one count of conspiracy to commit fraud, extortion, and related activity in connection with computers; one count of conspiracy to commit wire fraud; eight counts of intentional damage to a protected computer; eight counts of extortion in relation to confidential information from a protected computer; and eight counts of extortion in relation to damage to a protected computer. In total, those charges carry a maximum penalty of 185 years in prison. Each of the 26 counts charged by the indictment also carries a maximum fine of the greatest of $250,000, pecuniary gain to the offender, or pecuniary harm to the victim.
The LockBit Investigation
With the indictment unsealed today, a total of six LockBit members have now been charged for their participation in the LockBit conspiracy:
- In February 2024, an indictment was unsealed in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses nationwide in the manufacturing and other industries.
- In June 2023, a criminal complaint was filed in the District of New Jersey charging Ruslan Magomedovich Astamirov, a Russian national, in connection with his participation in the LockBit group. Astamirov is currently in custody awaiting trial.
- In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Mikhail Matveev, also known as “Wazawaka,” “m1x,” “Boriselcin,” and “Uhodiransomwar,” with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, with information accepted through the FBI tip website at www.tips.fbi.gov/.
- Finally, in November 2022, a criminal complaint was filed in the District of New Jersey charging Mikhail Vasiliev in connection with his participation in the LockBit ransomware group. Vasiliev, a dual Russian-Canadian national, is currently in custody in Canada awaiting extradition to the United States.
The FBI Newark Field Office is investigating the LockBit ransomware variant.
The government is represented by Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey and Trial Attorneys Jessica C. Peck, Debra Ireland, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust, Office of International Affairs, and National Security Division also provided significant assistance.
Additionally, the Department of the Treasury’s Office of Foreign Assets Control announced today that it is designating Khoroshev for his role in launching cyberattacks. For more information, visit https://home.treasury.gov/news/press-releases/jy2326. Authorities in the United Kingdom and Australia also announced sanctions today against Khoroshev.
The Department of State also announced today a reward of up to $10 million for information that leads to the apprehension of Khoroshev. Information that may be eligible for this award can be submitted by email at [email protected], Telegram at @LockbitRewards, Signal at @FBISupp.01, and tox B0B98577F0541160C745B464E42C9AB782B036682FAD59D5F228EA75BF71691BE68A8E08BD55. The reward announced today supplements a previous reward of up to $10 million for information leading to the identification of any individual who holds a leadership position in the criminal group behind LockBit ransomware. For more information on this reward, visit Reward for Information: LockBit Ransomware-as-a-Service.
Victims of LockBit should contact the FBI at https://lockbitvictims.ic3.gov for further information. Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
khoroshev.indictment.pdf sellinger_remarks.pdfU.S. Charges Russian National with Developing and Operating LockBit RansomwareRead the Press Release
Remote video URLU.S. Attorney Philip R. Sellinger for the District of New Jersey's recorded remarks
The U.S. Justice Department unsealed charges today against a Russian national for his alleged role as the creator, developer, and administrator of the LockBit ransomware group from its inception in September 2019 through the present. At times, LockBit was the most prolific ransomware group in the world.
“Earlier this year, the Justice Department and our U.K. law enforcement partners disrupted LockBit, a ransomware group responsible for attacks on victims across the United States and around the world,” said Attorney General Merrick B. Garland. “Today we are going a step further, charging the individual who we allege developed and administered this malicious cyber scheme, which has targeted over 2,000 victims and stolen more than $100 million in ransomware payments. We will continue to work closely alongside our partners, across the U.S. government and around the world to disrupt cybercrime operations like LockBit and to find and hold accountable those responsible for them.”
“As part of our unrelenting efforts to dismantle ransomware groups and protect victims, the Justice Department has brought over two dozen criminal charges against the administrator of LockBit, one of the world’s most dangerous ransomware organizations,” said Deputy Attorney General Lisa Monaco. “Working with U.S. and international partners, we are using all our tools to hold ransomware actors accountable—and we continue to encourage victims to report cyberattacks to the FBI when they happen. Reporting an attack could make all the difference in preventing the next one.”
Dimitry Yuryevich Khoroshev (Дмитрий Юрьевич Хорошев), also known as LockBitSupp, LockBit, and putinkrab, 31, of Voronezh, Russia, is charged by a 26-count indictment returned by a grand jury in the District of New Jersey.
“Today’s indictment of LockBit developer and operator Dimitry Yuryevich Khoroshev continues the FBI’s ongoing disruption of the LockBit criminal ecosystem,” said FBI Director Christopher Wray. “The LockBit ransomware group represented one of the most prolific ransomware variants across the globe, causing billions of dollars in losses and wreaking havoc on critical infrastructure, including schools and hospitals. The charges announced today reflect the FBI’s unyielding commitment to disrupting ransomware organizations and holding the perpetrators accountable.”
The indictment against Khoroshev unsealed today follows a recent disruption of LockBit ransomware in February by the U.K. National Crime Agency’s (NCA) Cyber Division, which worked in cooperation with the Justice Department, FBI, and other international law enforcement partners. As previously announced by the Department, authorities disrupted LockBit by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and by seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threatening to publish stolen data. That disruption succeeded in greatly diminishing LockBit’s reputation and its ability to attack further victims, as alleged by the indictment unsealed today.
“Dmitry Khoroshev conceived, developed, and administered Lockbit, the most prolific ransomware variant and group in the world, enabling himself and his affiliates to wreak havoc and cause billions of dollars in damage to thousands of victims around the globe,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “He thought he could do so hidden by his notorious moniker ‘LockBitSupp,’ anonymous and free of any consequence, while he personally pocketed $100 million extorted from Lockbit’s victims. Through relentless investigation and coordination with our partners at the Criminal Division’s Computer Crime and Intellectual Property Section, the FBI and abroad, we have proven him and his coconspirators wrong. Today’s indictment marks a significant milestone in the investigation and prosecution of LockBit, which has already led to charges against five other LockBit affiliates—two of whom are in custody awaiting trial—and a major disruption of the now discredited LockBit operation.”
In addition, as previously announced, law enforcement developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Victims targeted by this malware are encouraged to contact the FBI at https://lockbitvictims.ic3.gov/ to enable law enforcement to determine whether affected systems can be successfully decrypted.
According to the indictment and other documents previously unsealed in the District of New Jersey:
Khoroshev and the LockBit Ransomware Group
Khoroshev allegedly acted as the LockBit ransomware group’s developer and administrator from its inception in or around September 2019 through May 2024. Khoroshev and his affiliate coconspirators, grew LockBit into what was, at times, the most active and destructive ransomware variant in the world. The LockBit ransomware group 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 co-conspirators 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.
Khoroshev allegedly designed LockBit to operate in the “ransomware-as-a-service” (RaaS) model. In his role as the LockBit developer and administrator, Khoroshev arranged for the design of the LockBit ransomware code itself, recruited other LockBit members—called affiliates—to deploy it against victims, and maintained the LockBit infrastructure, including an online software dashboard called a “control panel” to provide the affiliates with the tools necessary to deploy LockBit. Khoroshev also maintained LockBit’s public-facing website—called a “data leak site”—for the publication of data stolen from victims who refused to pay a ransom.
As alleged in the indictment, Khoroshev—as the LockBit developer—typically received a 20% share of each ransom payment extorted from LockBit victims. The affiliate responsible for an attack would receive the remaining 80%. During the scheme, Khoroshev alone allegedly received at least $100 million in disbursements of digital currency through his developer shares of LockBit ransom payments.
LockBit infrastructure seized by law enforcement through the February 2024 disruption allegedly showed that Khoroshev retained copies of data stolen from LockBit victims who had paid the demanded ransom.
Khoroshev and his affiliate co-conspirators had falsely promised those victims that their stolen data would be deleted after payment. Moreover, after the February 2024 disruption, Khoroshev allegedly communicated with law enforcement and urged them to disclose the identities of his RaaS competitors—whom Khoroshev called his “enemies”—in exchange for his services.
Khoroshev is charged with one count of conspiracy to commit fraud, extortion, and related activity in connection with computers; one count of conspiracy to commit wire fraud; eight counts of intentional damage to a protected computer; eight counts of extortion in relation to confidential information from a protected computer; and eight counts of extortion in relation to damage to a protected computer. In total, those charges carry a maximum penalty of 185 years in prison. Each of the 26 counts charged by the indictment also carries a maximum fine of the greatest of $250,000, pecuniary gain to the offender, or pecuniary harm to the victim.
The LockBit Investigation
With the indictment unsealed today, a total of six LockBit members have now been charged for their participation in the LockBit conspiracy:
- In February 2024, an indictment was unsealed in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses nationwide in the manufacturing and other industries.
- In June 2023, a criminal complaint was filed in the District of New Jersey charging Ruslan Magomedovich Astamirov, a Russian national, in connection with his participation in the LockBit group. Astamirov is currently in custody awaiting trial.
- In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Mikhail Matveev, also known as “Wazawaka,” “m1x,” “Boriselcin,” and “Uhodiransomwar,” with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, with information accepted through the FBI tip website at tips.fbi.gov/.
- Finally, in November 2022, a criminal complaint was filed in the District of New Jersey charging Mikhail Vasiliev in connection with his participation in the LockBit ransomware group. Vasiliev, a dual Russian-Canadian national, is currently in custody in Canada awaiting extradition to the United States.
The FBI Newark Field Office is investigating the LockBit ransomware variant.
Trial Attorneys Jessica C. Peck, Debra Ireland, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey are prosecuting the charges against Khoroshev.
The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust, Office of International Affairs, and National Security Division also provided significant assistance.
Additionally, the Department of the Treasury’s Office of Foreign Assets Control announced today that it is designating Khoroshev for his role in launching cyberattacks. For more information, visit https://home.treasury.gov/news/press-releases/jy2326. Authorities in the United Kingdom and Australia also announced sanctions today against Khoroshev.
The Department of State also announced today a reward of up to $10 million for information that leads to the apprehension of Khoroshev. Information that may be eligible for this award can be submitted by email at [email protected], Telegram at @LockbitRewards, Signal at @FBISupp.01, and tox B0B98577F0541160C745B464E42C9AB782B036682FAD59D5F228EA75BF71691BE68A8E08BD55. The reward announced today supplements a previous reward of up to $10 million for information leading to the identification of any individual who holds a leadership position in the criminal group behind LockBit ransomware. For more information on this reward, visit Reward for Information: LockBit Ransomware-as-a-Service.
Victims of LockBit should contact the FBI at https://lockbitvictims.ic3.gov for further information. Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A.
An indictment is merely an allegation. Under U.S. law, all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IndictmentNew Jersey Doctor Sentenced to 26 Months in Prison for Health Care Fraud Targeting AmtrakRead the Press Release
NEWARK, N.J. – A New Jersey doctor was sentenced today to 26 months in prison for participating in a health care fraud scheme to defraud Amtrak, U.S. Attorney Philip R. Sellinger announced.
Muhammad Mirza, 51, of Cedar Grove, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to commit health care fraud. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From April 2017 through June 2022, Mirza and his conspirators agreed to engage in a scheme to bill the Amtrak health care plan for fraudulent claims for services that either were never provided or were medically unnecessary. They would recruit Amtrak employees to participate in the scheme by paying them to allow the conspirators to use their patient and insurance information to submit false and fraudulent claims. Mirza and his conspirators submitted false and fraudulent claims that caused Amtrak losses of more than $1.3 million.
In addition to the prison term, Judge Arleo sentenced Mirza to two years of supervised release and ordered restitution of $1.37 million.
U.S. Attorney Sellinger credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York; and the Amtrak Police Department, under the direction of Chief of Police Sam Dotson, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark.
Chief Engineer of Oil Tanker Admits Discharge of Oily Waste off Coast of New Jersey and Concealment of Pollution from VesselRead the Press Release
NEWARK, N.J. – A chief engineer employed by a Greek shipping company today admitted charges related to the discharge of oily waste into the sea from a commercial vessel near a petroleum terminal in Sewaren, New Jersey; he and a second engineer also admitted concealment of pollution from that vessel through the falsification of records, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Todd Kim announced.
Konstantinos Atsalis, 57, the chief engineer of an oil tanker, the M/T Kriti Ruby, pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court to an information charging him with two counts of violating the Act to Prevent Pollution from Ships, including falsifying the vessel’s oil record book. Sonny Bosito, 54, the second engineer of the M/T Kriti Ruby, pleaded guilty to an information charging him with violating the Act to Prevent Pollution from Ships.
According to documents filed in this case and statements made in court:
Atsalis admitted that the vessel’s crew had knowingly bypassed required pollution prevention equipment by discharging oily waste from the vessel’s engine room through its sewage system into the sea, including near a petroleum offloading facility in Sewaren. Atsalis also admitted that he falsified the vessel’s oil record book, a required log regularly inspected by the U.S. Coast Guard, by failing to record this illegal activity. Atsalis admitted that he directed crew members to hide equipment used to conduct transfers of oily waste from the engine room bilge wells to the sewage tank before the Coast Guard boarded the vessel.
Bosito admitted concealing the discharge of oily waste into the sea through the vessel’s sewage system by causing a false oil record book to be presented to the U.S. Coast Guard during its inspection of the vessel. Bosito admitted directing crew members to hide equipment used to conduct transfers from the bilge wells to the sewage tank before the Coast Guard’s inspection.
The charges to which Atsalis and Bosito pleaded guilty each carry a maximum penalty of six years in prison and a fine of $250,000, or twice the gross gain or loss resulting from the offense, whichever is greatest. Sentencing for both defendants is scheduled for Oct. 22, 2024.
U.S. Attorney Sellinger and Assistant Attorney General Kim credited special agents of the U.S. Coast Guard Investigative Service, under the direction of Acting Special Agent in Charge Steven M. Frith, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit, Special Assistant U.S. Attorney Katherine E. Ward of the U.S. Attorney’s Office in Newark, and Trial Attorney Lauren D. Steele and Senior Trial Attorney Kenneth E. Nelson of the Environmental Crimes Section of the U.S. Department of Justice Environment and Natural Resources Division.
bosito.information.pdf atsalis.information.pdfNine Defendants Charged for Roles in Drug Trafficking Organization Associated with Sex, Money, Murder Street GangRead the Press Release
NEWARK, N.J. – Nine people have been charged for their respective roles in a drug trafficking organization that distributed large quantities of fentanyl, heroin, and cocaine in Union County and elsewhere, U.S. Attorney Philip Sellinger announced.
Jerry Ross, 46, of Somerset, New Jersey; Joseph Ross, 42, of Rahway, New Jersey; Luis Delvalle, 41, Pernell White, 36, and Jaquay Bell, 35, all of Piscataway, New Jersey; Andre Gaddy, 31, of North Plainfield, New Jersey; Jacob Douglas, 42, Tarrell Strond, 42, and Tayeire Thomas, 26, all of Plainfield, New Jersey; are each charged by complaint with one count of conspiracy to distribute fentanyl, heroin, and cocaine. Six of the defendants are scheduled to appear today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Douglas, White and Thomas remain at large.
According to the documents filed in this case and statements made in court:
The defendants are all members and associates of a drug trafficking organization that operated an open-air narcotics market in and around the area of West 3rd Street in Plainfield, New Jersey. The organization is affiliated with, and the defendants are members and associates of, the Sex, Money, Murder criminal street gang, which is a set of the Bloods street gang. For several months, law enforcement conducted extensive surveillance of the area, conducted numerous controlled purchases of narcotics, and analyzed telephone records, all of which demonstrated extensive interactions related to drug trafficking between and among the members or the conspiracy.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; the Union County Prosecutor’s Office, under the direction of Prosecutor William Daniel and Chief Harvey A. Barnwell; and officers of the Plainfield Police Department, under Director James Abney and Captain Brian Newman, with the investigation leading to the charges. He also thanked U.S. Customs and Border Protection officers, under the direction of Port Director TenaVel Thomas, Port of New York/Newark; officers of Perth Amboy Police Department under the direction of Chief Lawrence Catano, and prosecutors with the New Jersey Division of Criminal Justice under the direction of New Jersey Attorney General Matthew Platkin. He also thanked the New Jersey State Police.
The government is represented by Assistant U.S. Attorneys Jason Goldberg and Rachelle M. Navarro of the Organized Crime and Gangs Unit in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
rossetal.complaint.pdfNew Jersey Woman Charged with Stealing over $1 Million in Federal Retirement Benefits Intended for Deceased AuntRead the Press Release
NEWARK, N.J. – A New Jersey woman was indicted today for stealing over $1 million of federal benefits meant for her deceased aunt over a 25-year period, U.S. Attorney Philip R. Sellinger announced.
Janis Miller, 77, of South Orange, New Jersey, is charged by indictment with one count of wire fraud.
According to documents filed in this case and statements made in court:
In 1998, Miller’s aunt died. Unaware of her death, the Social Security Administration (SSA) and the U.S. Office of Personnel Management (OPM) paid approximately $1.01 million in retirement and survivor benefits to the bank account of Miller’s deceased aunt. By debit card, cash withdrawals, and forged checks made out to a company Miller controlled, Miller unlawfully disbursed virtually all of those embezzled funds. In 2022, to continue her unlawful receipt of the benefits, Miller, in a telephone conversation with an SSA employee, impersonated her deceased aunt and provided her aunt’s approximate birthdate. OPM and SSA discovered the fraud and discontinued the benefits in 2023, around 25 years after Miller began stealing those benefits.
The count of wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum fine of the greatest of either $250,000 or twice the pecuniary gain or loss caused by the offense, whichever is greatest.
U.S. Attorney Sellinger credited 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 the U.S. Office of Personnel Management, Office of the Inspector General, under the direction of Special Agent in Charge Paul Kimball, with the investigation.
The government is represented by Assistant U.S. Attorney Sam Thypin-Bermeo of the General Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
miller.indictment.pdfLeader of Massive Scheme to Traffic in Fraudulent and Counterfeit Cisco Networking Equipment Sentenced to PrisonRead the Press Release
A Florida resident and dual citizen of the United States and Turkey was sentenced yesterday to six years and six months in prison for running an enormous operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment.
Under the terms of the plea agreement, Onur Aksoy, 40, of Miami, agreed to pay restitution of $100 million to Cisco and amounts to other victims that will be determined by the court at a later date, and to permit destruction of millions of dollars of counterfeit goods seized from his businesses.
“Aksoy sold hundreds of millions of dollars’ worth of counterfeit computer networking equipment that ended up in U.S. hospitals, schools, and highly sensitive military and other governmental systems, including platforms supporting sophisticated U.S. fighter jets and military aircraft,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Criminals who flood the supply chain with low-quality networking equipment from China and Hong Kong harm U.S. businesses, pose serious health and safety risks, and compromise national security. This case—one of the largest counterfeit trademark cases ever prosecuted in the United States—demonstrates the Criminal Division’s commitment and capacity to prosecute the most complex counterfeiting schemes and bring the perpetrators to justice.”
“Through an elaborate, years-long scheme, Aksoy created and ran one of the largest counterfeit-trafficking operations ever,” said Attorney for the United States Vikas Khanna for the District of New Jersey. “His operation introduced tens of thousands of counterfeit and low-quality devices trafficked from China into the U.S. supply chain, jeopardizing both private-sector and public-sector users, including highly sensitive U.S. military applications like the support platforms of U.S. fighter jets and other military aircraft. Yesterday’s sentence, made possible by the investigation and prosecution of this office and our department and agency partners, now brings Aksoy to justice and holds him accountable for the breathtaking scale of his operation.”
According to court documents and statements made in court, Aksoy ran at least 19 companies formed in New Jersey and Florida, as well as approximately 15 Amazon storefronts and at least 10 eBay storefronts (collectively, the Pro Network Entities). The Pro Network Entities imported from suppliers in China and Hong Kong tens of thousands of low-quality, modified computer networking devices with counterfeit Cisco labels, stickers, boxes, documentation, and packaging, all bearing counterfeit trademarks registered and owned by Cisco that made the goods falsely appear to be new, genuine, and high-quality devices manufactured and authorized by Cisco. The devices had an estimated total retail value of hundreds of millions of dollars. The Pro Network Entities generated over $100 million in revenue from the scheme, and Aksoy personally received millions of dollars.
“Protecting the integrity of the supply chain for everyday consumers, government agencies, and our warfighters remains a top priority for Homeland Security Investigations,” said Special Agent in Charge Eddy Wang of Homeland Security Investigations (HSI) Los Angeles. “My office and our partners will continue to work diligently to remove counterfeit products that adversely affect public health and safety from the stream of commerce and hold the offenders accountable.”
“Mr. Aksoy’s sentencing brings closure to his years-long, greed-driven scheme that wasted U.S. taxpayer dollars and degraded our nation’s military readiness when he and his companies knowingly defrauded the Department of Defense by introducing counterfeit products into its supply chain that routinely failed or did not work at all,” said Special Agent in Charge Bryan D. Denny of the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS) Western Field Office. “In doing so, he sold counterfeit Cisco products to the DoD that were found on numerous military bases and in various systems, including but not limited to U.S. Air Force F-15 and U.S. Navy P-8 aircraft flight simulators.”
The devices the Pro Network Entities imported from China and Hong Kong were typically older, lower-model products—some of which had been sold or discarded—which Chinese counterfeiters then modified to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. The Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components—including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. Finally, to make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials.
Fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. The products often failed to operate or otherwise malfunctioned, causing significant damage to their users’ networks and operations. Customers of Aksoy’s devices included hospitals, schools, and government agencies. In addition, numerous counterfeit devices originating from the Pro Network Entities were discovered in highly sensitive governmental applications, such as classified information systems. The devices were also identified in combat and non-combat operations of the U.S. Navy, U.S. Air Force, and U.S. Army, such as platforms supporting the F-15, F-18, and F-22 fighter jets, AH-64 Apache attack helicopter, P-8 maritime patrol aircraft, and B-52 Stratofortress bomber aircraft.
“This case should serve as a warning to those who attempt to sell counterfeit goods to the U.S. government,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS is committed to safeguarding the Department of Navy acquisition programs that enhance fleet readiness.”
“Companies should be honest in their dealings with the government,” said Deputy Inspector General Robert C. Erickson of the General Services Administration Office of Inspector General (GSA-OIG). “GSA-OIG special agents are committed to working with investigative partners to hold accountable fraudsters who sell counterfeit equipment to the United States.”
Between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco devices that were sent to the Pro Network Entities from China and Hong Kong. Aksoy responded to some of these seizures by falsely submitting official paperwork to CBP under the alias “Dave Durden,” an identity that he used to communicate with Chinese co-conspirators. To try to avoid CBP scrutiny, Chinese co-conspirators broke the shipments up into smaller parcels sent on different days, and Aksoy used fake delivery addresses in Ohio.
Between 2014 and 2019, Cisco sent seven letters to Aksoy asking him to cease and desist his trafficking of counterfeit goods. Aksoy responded to at least two of these letters by causing his attorney to provide Cisco with forged documents. In July 2021, agents executed a search warrant at Aksoy’s warehouse that led to the seizure of approximately 1,156 counterfeit Cisco devices with a retail value of over $7 million.
Aksoy pleaded guilty in June 2023 to conspiring with others to traffic in counterfeit goods and to commit mail fraud, wire fraud, and mail fraud.
HSI, DCIS, NCIS, GSA-OIG, and CBP investigated the case. The CBP’s Electronics Center of Excellence, Los Angeles National Targeting and Analysis Center, and Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office provided valuable assistance.
Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Andrew M. Trombly and Senior Trial Counsel Barbara Ward for the District of New Jersey are prosecuting the case.
CEO of Dozens of Companies Sentenced to 78 Months in Prison for Massive Scheme to Traffic in Fraudulent and Counterfeit Cisco Networking EquipmentRead the Press Release
TRENTON, N.J. – A Florida resident and dual citizen of the United States and Turkey was sentenced to 78 months in prison for running an extensive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment, Attorney for the United States Vikas Khanna, District of New Jersey, and Principal Deputy Assistant Attorney General Nicole M. Argentieri announced today.
Onur Aksoy, aka “Ron Aksoy” and “Dave Durden,” 40, of Miami, Florida, pleaded guilty before U.S. District Judge Peter G. Sheridan on June 5, 2023, to two counts of an indictment charging him with conspiring with others to traffic in counterfeit goods, to commit mail fraud, and to commit wire fraud (Count 1); and mail fraud (Count 4). Judge Sheridan imposed the sentence on May 1, 2024, in Trenton federal court.
“Through an elaborate, years-long scheme, Aksoy created and ran one of the largest counterfeit-trafficking operations ever,” Attorney for the United States Khanna said. “His operation introduced tens of thousands of counterfeit and low-quality devices trafficked from China into the U.S. supply chain, jeopardizing both private-sector and public-sector users, including highly sensitive U.S. military applications like the support platforms of U.S. fighter jets and other military aircraft. Yesterday’s sentence, made possible by the investigation and prosecution of this Office and our Department and agency partners, now brings Aksoy to justice and holds him accountable for the breathtaking scale of his operation.”
“Aksoy sold hundreds of millions of dollars’ worth of counterfeit computer networking equipment that ended up in U.S. hospitals, schools, and highly sensitive military and other governmental systems, including platforms supporting sophisticated U.S. fighter jets and military aircraft,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Criminals who flood the supply chain with low-quality networking equipment from China and Hong Kong harm U.S. businesses, pose serious health and safety risks, and compromise national security. This case—one of the largest counterfeit trademark cases ever prosecuted in the United States—demonstrates the Criminal Division’s commitment and capacity to prosecute the most complex counterfeiting schemes and bring the perpetrators to justice.”
“Protecting the integrity of the supply chain for everyday consumers, government agencies, and our warfighters remains a top priority for Homeland Security Investigations,” HSI Los Angeles Special Agent in Charge Eddy Wang said. “My office and our partners will continue to work diligently to remove counterfeit products that adversely affect public health and safety from the stream of commerce and hold the offenders accountable.”
“Mr. Aksoy’s sentencing brings closure to his yearslong greed-driven scheme that wasted U.S. taxpayer dollars and degraded our nation’s military readiness when he and his companies knowingly defrauded the Department of Defense by introducing counterfeit products into its supply chain that routinely failed or did not work at all,” Bryan D. Denny, Special Agent in Charge of the DoD Office of Inspector General, Defense Criminal Investigative Service, Western Field Office, said. “In doing so, he sold counterfeit Cisco products to the DoD that were found on numerous military bases and in various systems, including but not limited to U.S. Air Force F-15 and U.S. Navy P-8 aircraft flight simulators.”
“This case should serve as a warning to those who attempt to sell counterfeit goods to the U.S. government,” Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service Economic Crimes Field Office said. “NCIS is committed to safeguarding the Department of Navy acquisition programs that enhance fleet readiness.”
“Companies should be honest in their dealings with the government,” GSA Deputy Inspector General Robert C. Erickson said. “GSA OIG special agents are committed to working with investigative partners to hold accountable fraudsters who sell counterfeit equipment to the United States.”
According to documents filed in this case and statements made in court:
Onur Aksoy, 40, of Miami, ran at least 19 companies formed in New Jersey and Florida, as well as approximately 15 Amazon storefronts and at least 10 eBay storefronts (collectively, the “Pro Network Entities”), that imported from suppliers in China and Hong Kong tens of thousands of low-quality, modified computer networking devices with counterfeit Cisco labels, stickers, boxes, documentation, and packaging, all bearing counterfeit trademarks registered and owned by Cisco, that made the goods falsely appear to be new, genuine, and high-quality devices manufactured and authorized by Cisco. The devices had an estimated total retail value of hundreds of millions of dollars. The Pro Network Entities generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.
The devices the Pro Network Entities imported from China and Hong Kong were typically older, lower-model products – some of which had been sold or discarded – which Chinese counterfeiters then modified to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. The Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components – including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. To make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials.
Fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. Often, they would simply fail or otherwise malfunction, causing significant damage to their users’ networks and operations – in some cases, costing users tens of thousands of dollars. Customers of Aksoy’s fraudulent and counterfeit devices included hospitals, schools, and government agencies. Furthermore, a review by the government and its private-sector partners discovered numerous counterfeit devices originating from the Pro Network Entities being used in highly sensitive military and governmental applications – including classified information systems – some involving combat and non-combat operations of the U.S. Navy, U.S. Air Force, and U.S. Army, including platforms supporting the F-15, F-18, and F-22 fighter jets, AH-64 Apache attack helicopter, P-8 maritime patrol aircraft, and B-52 Stratofortress bomber aircraft.
Between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco devices being shipped to the Pro Network Entities from China and Hong Kong. In response to some of these seizures, Aksoy falsely submitted official paperwork to CBP under the alias “Dave Durden,” an identity that he used to communicate with Chinese conspirators. To avoid CBP scrutiny, Chinese conspirators broke the shipments up into smaller parcels and shipped them on different days, and Aksoy used fake delivery addresses in Ohio. After CBP seized a shipment of counterfeit Cisco products to Aksoy and the Pro Network Entities and sent a seizure notice, Aksoy often continued to order counterfeit Cisco products from the same supplier.
Between 2014 and 2019, Cisco sent seven letters to Aksoy asking him to cease and desist his trafficking of counterfeit goods. Aksoy responded to at least two of these letters by causing his attorney to provide Cisco with forged documents. In July 2021, agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices with a retail value of over $7 million.
In addition to the prison term, Judge Sheridan sentenced Aksoy to three years of supervised release and fined him $40,000. Under terms of the plea agreement, the defendant has agreed to pay restitution of $100 million to Cisco and amounts to other victims that will be determined by the court at a later date..
Attorney for the United States Vikas Khanna and Acting Assistant Attorney General Argentieri credited special agents of HSI – Los Angeles, under the direction of Special Agent in Charge Wang; special agents of the U.S. Department of Defense, Defense Criminal Investigative Service (DCIS) Western Field Office, under the direction of Special Agent in Charge Denny; the General Services Administration Office of Inspector General (GSA-OIG), under the direction of Deputy Inspector General Erickson; the Naval Criminal Investigative Service (NCIS), Economic Crimes Field Office, under the direction of Special Agent in Charge Gross; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Anthony Salisbury of the HSI Miami Field Office; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, with the investigation leading to the sentencing. The CBP Electronics Center of Excellence; the CBP Los Angeles National Targeting and Analysis Center; and the CBP Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office provided valuable assistance.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly and Senior Trial Counsel Barbara Ward for the District of New Jersey and Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark, Senior Counsel Matthew A. Lamberti of the Department of Justice Computer Crime and Intellectual Property Section in Washington, D.C., and Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.
Sixteen People Charged with Conspiracy to Defraud Hundreds of Elderly Americans of Millions of DollarsRead the Press Release
NEWARK, N.J. – Sixteen individuals were charged in connection with a sprawling “grandparent scam” to defraud hundreds of elderly Americans out of millions of dollars, U.S. Attorney Philip R. Sellinger announced today.
Eleven men from the Dominican Republic are charged in a 19-count indictment with mail and wire fraud conspiracy; wire fraud; mail fraud; conspiracy to commit money laundering; and money laundering:
- *Juan Rafael Parra Arias, aka “Yofre,” 40
- Nefy Vladimir Parra Arias, aka “Keko,” 39
- Nelson Rafael Gonzalez Acevedo, aka “Nelson Tech,” 35
- *Rafael Ambiorix Rodriguez Guzman, aka “Max Morgan,” 59
- Miguel Angel Fortuna Solano, aka “Botija,” aka “Boti,” 41
- *Felix Samuel Reynoso Ventura, aka “Fili,” aka “Filly The Kid,” 36
- Carlos Javier Estevez, 45
- Louis Junior Serrano Rodriguez, aka “Junior,” 27
- Miguel Angel Vasquez, aka “Miguel Disla,” 24
- Jovanni Antonio Rosario Garcia, aka “Porky,” aka “Chop,” 45
- *Jose Ismael Dilone Rodriguez, 34
-
*denotes in custody
An additional five defendants were charged by complaint with wire fraud conspiracy as part of the same scheme: Endy Jose Torres Moran, 21, of Brooklyn, New York; Ivan Alexander Inoa Suero, 32, of the Bronx, New York; Jhonny Cepeda, 27, and Ramon Hurtado, 43, both of New York; and Yuleisy Roque, 21, of the Bronx.
U.S. Attorney Philip R. Sellinger“As alleged, these 16 defendants preyed upon grandparents’ familial love and devotion, cheating them out of millions of dollars. In this ‘grandparents’ scam,’ the defendants allegedly impersonated grandchildren in distress, claiming, for example, they had been arrested after a car accident involving a pregnant woman who later miscarried, and they needed immediate cash for bail or a lawyer. The panic-stricken grandparents quickly paid—sometimes tens of thousands of dollars. My office is committed to protecting the rights of all victims, and we will relentlessly prosecute those who allegedly target vulnerable seniors to steal their hard-earned savings.”
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes,” Deputy Assistant Attorney General Arun Rao of the Justice Department's Civil Division, Consumer Protection Branch said. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable consumers, whether located in the United States or abroad.”
“Today’s announcement stems from the defendants’ alleged heartless targeting of elderly victims who were collectively tricked into handing over millions of dollars,” Department of Homeland Security, Homeland Security Investigations, New York, Acting Special Agent in Charge Darren B. McCormack, said. “For their own selfish gain, these accused individuals threatened innocent Americans’ livelihoods, and robbed them of their precious time and any nest eggs they had secured for themselves. I commend HSI New York’s El Dorado Task Force Cyber Intrusion Group, the U.S. Attorney’s Office for the District of New Jersey, the NYPD, the FBI, the Social Security Office of Inspector General, and HSI Santo Domingo for their outstanding collaboration and coordination. This can truly happen to anybody, and while we will always be there to assist victims, we hope that raising awareness will give these criminal opportunists fewer chances to target the public.”
“We allege these scammers created an elaborate scheme revolving around a grandchild reaching out to say they were in trouble, had been arrested, and needed help,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Then to reinforce an immediate need for cash, these fraudsters allegedly posed as attorneys, law enforcement officers and court employees explaining how grandparents can get them money. Even the most jaded and savvy of us out there may pause a moment, thinking that this could actually be real. That’s the insidious nature of this particular fraud, criminals are preying on our instinct to protect our families. We ask anyone who believes they could also be a victim to report it at www.ic3.gov.”
“Fraud targeting the elderly has a uniquely harmful effect on a segment of the population that is often amongst society's most vulnerable,” Bradley Parker, Acting Special Agent in Charge, Social Security Administration (SSA) Office of the Inspector General (OIG), Boston - New York Field Division, said. “SSA OIG is proud to join HSI, the FBI, the Justice Department, and the NYPD in investigating these complex, international scams aimed at defrauding SSA beneficiaries.”
“These charges underscore law enforcement’s commitment to protecting our older population from fraudsters and financial exploitation,” New York Police Department Commissioner Edward A. Caban said. “The crimes outlined here are truly depraved in their nature: targeting our parents and grandparents, aunts and uncles, and others in an elaborate venture to bilk them of their hard-earned savings. I applaud our NYPD investigators and all of our federal partners involved in this important case for their tireless dedication to our shared public safety mission.”
According to documents filed in this case and statements made in court:
Juan Rafael Parra Arias, Nefy Vladimir Parra Arrias, and Gonzalez Acevedo operated a sophisticated network of call centers in the Dominican Republic. Their alleged victims included elderly residents of several states, including New Jersey, New York, Pennsylvania, and Massachusetts. The call centers victimized hundreds of Americans through fraud, stealing millions of dollars.
Members of the conspiracy referred to as “openers” called elderly victims in the United States and impersonated the victims’ children, grandchildren, or other close relatives. The call centers used technology to make it appear that the calls were coming from inside the United States. Typically, the victim was told that their grandchild had been in a car accident, was arrested as a result of the accident, and needed help.
Once openers duped victims into believing their loved ones were in dire trouble, others working at the call centers, known as “closers,” impersonated defense attorneys, police officers, or court personnel and convinced victims to provide thousands of dollars in cash to help their loved ones.
Closers, including defendants Rodriguez Guzman, Fortuna Solano, Reynoso Ventura, and Estevez, typically told victims to give the cash to couriers who they sent to victims’ homes to collect their money. Other times, closers instructed victims to send the cash by mail.
Once victims were convinced to give cash, call center “dispatchers,” including Serrano Rodriguez, Vasquez, Rosario Rodriguez, and Dilone Rodriguez recruited and managed a network of U.S.-based couriers to steal cash from the elderly victims across the Northeast.
Those U.S.-based couriers, including the five charged by complaint, typically went to the elderly victims’ home to retrieve the cash, often using false names and providing victims with fake receipts in exchange. The couriers then brought the cash to other members of the conspiracy, who sent the victims’ money back to the Dominican Republic.
Each of the charges in the indictment and complaint carries a maximum potential penalty of up to 20 years in prison. Each of the mail and wire fraud charges also carry a potential fine of up to $250,000; each of the money laundering charges also carry a potential fine of up to $500,000.
U.S. Attorney Sellinger credited special agents and investigators of the Department of Homeland Security, under the direction of Acting Special Agent in Charge McCormack; special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark; the Social Security Administration, Office of the Inspector General, New York / Boston Field Division, under the direction of Acting Special Agent-in-Charge Bradley Parker; and the New York Police Department, under the direction of Commissioner Caban, with the investigation leading to the charges. He also thanked the Justice Department’s Office of International Affairs.
The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark, and Jason Feldman, Joshua Ferrentino, and Emily Powers of the Department of Justice, Consumer Protection Branch in Washington, D.C.
The charges and allegations contained in the indictment and complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Video press statement: Grandparents Scam press statement - YouTube
usattorney_remarks.pdf grandparents.indictment.pdfSixteen Defendants Charged in Connection with Transnational “Grandparent Scam” Operated from Dominican RepublicRead the Press Release
WASHINGTON – Sixteen individuals were charged in connection with a sprawling “grandparent scam” to defraud elderly Americans out of millions of dollars, the Justice Department announced today during a virtual announcement.
Eleven men from the Dominican Republic are charged in a 19-count indictment with mail and wire fraud conspiracy, wire fraud, mail fraud, conspiracy to commit money laundering and money laundering:
- Juan Rafael Parra Arias, also known as Yofre, 41;
- Nefy Vladimir Parra Arias, also known as Keko, 39;
- Nelson Rafael Gonzalez Acevedo, also known as Nelson Tech, 35;
- Rafael Ambiorix Rodriguez Guzman, also known as Max Morgan, 59;
- Miguel Angel Fortuna Solano, also known as Botija, and Boti, 41;
- Felix Samuel Reynoso Ventura, also known as Fili, and Filly The Kid, 37;
- Carlos Javier Estevez, 45;
- Louis Junior Rodriguez Serrano, also known as Junior, 27;
- Miguel Angel Vasquez, also known as Miguel Disla, 24;
- Jovanni Antonio Rosario Garcia, also known as Porky, and Chop, 45; and
- Jose Ismael Dilone Rodriguez, 34
According to the indictment, unsealed yesterday, in Newark, New Jersey, the defendants engaged in a long-running “grandparent” or “family in need of bail” scam against seniors in the United States. The scam was operated from call centers in the Dominican Republic.
An additional five defendants were charged by complaint with wire fraud conspiracy as part of the same scheme: Endy Jose Torres Moran, 21, of Brooklyn, New York; Ivan Alexander Inoa Suero, 32, of New York City; Jhonny Cepeda, 27, of New York City; Ramon Hurtado, 43, of New York City, and Yuleisy Roque, 21, of the Bronx, New York. All five of the defendants charged by complaint are alleged to have acted as couriers who picked up cash from defrauded victims in New Jersey, New York and elsewhere.
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes,” said Deputy Assistant Attorney General Arun G. Rao of the Civil Division. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable consumers, whether located in the United States or abroad.”
“As alleged, these 16 defendants preyed upon grandparents’ familial love and devotion, cheating them out of millions of dollars,” said U.S. Attorney Sellinger for the District of New Jersey. “In this ‘grandparents’ scam,’ the defendants allegedly impersonated grandchildren in distress, claiming, for example, they had been arrested after a car accident involving a pregnant woman who later miscarried, and they needed immediate cash for bail or a lawyer. The panic-stricken grandparents quickly paid — sometimes tens of thousands of dollars. My office is committed to protecting the rights of all victims, and we will relentlessly prosecute those who allegedly target vulnerable seniors to steal their hard-earned savings.”
“Today’s announcement stems from the defendants’s alleged heartless targeting of elderly victims who were collectively tricked into handing over millions of dollars," said Acting Special Agent in Charge Darren B. McCormack of Homeland Security Investigations (HSI) New York. “For their own selfish gain, these accused individuals threatened innocent Americans’ livelihoods and robbed them of their precious time and any nest eggs they had secured for themselves. I commend HSI New York’s El Dorado Task Force Cyber Intrusion Group, the U.S. Attorney’s Office for the District of New Jersey, the NYPD, the FBI, the Social Security Office of Inspector General and HSI Santo Domingo for their outstanding collaboration and coordination. This can truly happen to anybody, and while we will always be there to assist victims, we hope that raising awareness will give these criminal opportunists fewer chances to target the public.”
“Fraud targeting the elderly has a uniquely harmful effect on a segment of the population that is often amongst society's most vulnerable,” said Acting Special Agent in Charge Bradley Parker of the Social Security Administration Office of the Inspector General (SSA-OIG), Boston New York Field Division. “SSA OIG is proud to join HSI, the FBI, the Justice Department and the NYPD in investigating these complex, international scams aimed at defrauding SSA beneficiaries.”
“These charges underscore law enforcement’s commitment to protecting our older population from fraudsters and financial exploitation,” said Commissioner Edward A. Caban of the New York Police Department (NYPD). “The crimes outlined here are truly depraved in their nature: targeting our parents and grandparents, aunts and uncles, and others in an elaborate venture to bilk them of their hard-earned savings. I applaud our NYPD investigators and all of our federal partners involved in this important case for their tireless dedication to our shared public safety mission.”
“The FBI and its partners are deeply committed to keeping our elderly population out of harm’s way,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response and Services Branch. “Even when components of these grandparent scams are being perpetuated from beyond our borders, those who engage in illicit activity seeking to defraud the American people can be assured that their actions have consequences. If you or someone you know is a victim of elder fraud, please come forward and report it.”
According to documents filed in this case and statements made in court, Juan Rafael Parra Arias, Nefy Vladimir Parra Arrias and Gonzalez Acevedo operated a sophisticated network of call centers in the Dominican Republic. Their alleged victims included elderly residents of several states, including New Jersey, New York, Pennsylvania and Massachusetts. The call centers victimized hundreds of Americans through fraud, stealing millions of dollars.
Members of the conspiracy referred to as “openers” called elderly victims in the United States and impersonated the victims’ children, grandchildren, or other close relatives. The call centers used technology to make it appear that the calls were coming from inside the United States. Typically, the victim was told that their grandchild had been in a car accident, was arrested in connection with an accident, and needed help.
Once openers tricked victims into believing their loved ones were in dire trouble, others working at the call centers, known as “closers,” allegedly impersonated defense attorneys, police officers or court personnel and convinced victims to provide thousands of dollars in cash to help their loved ones.
According to charging documents, closers, including defendants Rodriguez Guzman, Fortuna Solano, Reynoso Ventura and Estevez typically told victims to give the cash to couriers who they sent to victims’ homes to collect their money. Other times, closers instructed victims to send the cash by mail.
Once victims were convinced to give cash, call center “dispatchers,” including Rodriguez Serrano, Vasquez, Rosario Garcia, and Dilone Rodriguez, recruited and managed a network of U.S.-based couriers to obtain cash from the elderly victims across the northeastern United States.
Those U.S.-based couriers, including the five charged by complaint, typically went to the elderly victims’ home to pick up the cash, often using false names and providing victims with fake receipts. The couriers then brought the cash to other members of the conspiracy, who sent the victims’ money to the Dominican Republic.
If convicted, the defendants face a maximum penalty 20 years in prison for each count, a maximum fine of $250,000 for each count of the mail and wire fraud charges and a maximum fine of $500,000 for each count of money laundering.
Deputy Assistant Attorney Rao joined U.S. Attorney Sellinger, Special Agent in Charge James E. Dennehy of the FBI’s Newark Division and Deputy Special Agent in Charge McCormack of Homeland Security Investigations New York made the announcement.
HIS, SSA-OIG, NYPD, and the FBI are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance.
Trial Attorneys Jason Feldman, Joshua Ferrentino and Emily Powers of the Civil Division's Consumer Protection Branch and Assistant U.S. Attorney Carolyn Silane for the District of Jersey are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Middlesex County Man Sentenced to 30 Months in Prison for Stealing COVID-19 Unemployment BenefitsRead the Press Release
NEWARK N.J. – A Middlesex County, New Jersey, man was sentenced today to 30 months in prison for conspiring to illegally obtain over $400,000 in COVID-19 unemployment benefits, U.S. Attorney Philip R. Sellinger announced.
Christopher Valerio, 33, of Perth Amboy, New Jersey, previously pleaded guilty before U.S. District Judge Robert Kirsch to an information charging him with one count of conspiracy to commit wire fraud. Judge Kirsch imposed the sentence today in Newark federal court.
Valerio’s conspirator, Yanira Abreu of Keasby, New Jersey, pleaded guilty on Sept. 12, 2023, on charges stemming from the same scheme and is scheduled to be sentenced on May 9, 2024. 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, Valerio, Abreu 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, Valerio and his conspirators obtained debit cards with illegally obtained funds totaling $444,738, which they used for personal gain.
In addition to the prison term, Judge Kirsch sentenced Valerio 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 today’s 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.
Former Atlantic City Housing Authority Coordinator Charged with Fraud in Connection with COVID-19 Relief FundsRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was arrested today for fraudulent acts he committed in connection with COVID-19 relief funds, U.S. Attorney Philip R. Sellinger announced.
Luquay Zahir, 49, of Atlantic City, New Jersey, is charged by complaint with one count of making false statements to influence the U.S. Small Business Administration (SBA) and one count of wire fraud. He is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Elizabeth A. Pascal in Camden federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In 2020 and 2021, Zahir, then the Coordinator for the Resident Opportunity and Self Sufficiency (ROSS) grant program for the Atlantic City Housing Authority and Urban Redevelopment Agency, fraudulently obtained more than $30,000 through a Paycheck Protection Program loan and Economic Injury Disaster Loan advance issued under the Coronavirus Aid, Relief, and Economic Security Act.
The count of making false statements to influence the SBA carries a maximum potential penalty of two years in prison and a maximum fine of $250,000. The count of wire fraud carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI Newark Atlantic City Resident Agency under the direction of Special Agent in Charge James E. Dennehy; and special agents of SBA Office of Inspector General’s Eastern Region, under the direction of Special Agent in Charge Amaleka McCall-Braithwaite, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Branch Office.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
zahir.complaint.pdfCalifornia Man Admits Methamphetamine Trafficking ChargeRead the Press Release
CAMDEN, N.J. – A California man today admitted his role in a narcotics conspiracy involving approximately 1.9 kilograms of a substance containing methamphetamine, U.S. Attorney Philip R. Sellinger announced.
Aaron Joseph, 41, of Los Angeles, California, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging conspiracy to possess with intent to distribute methamphetamine.
According to documents filed in this case and statements made in court:
From October 2020 through July 2022, Joseph participated in a conspiracy to distribute methamphetamine. Joseph shipped packages from California to conspirators in Camden County, New Jersey. Joseph’s conspirators then distributed the methamphetamine in southern New Jersey. Joseph received payment via Cash App from a conspirator for the shipments. On Feb. 14, 2022, Joseph shipped a package containing 5,100 pills from California to New Jersey. The pills contained methamphetamine and weighed approximately 1.9 kilograms.
The count of conspiracy to possess with intent to distribute methamphetamine carries a maximum penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Sept. 3, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joseph McFarlane of the U.S. Attorney’s Office in Camden.
joseph.information.pdfBergen County Man Admits Nearly Half Million Dollars in Overtime Fraud Involving Hudson Bergen Light Rail ProjectsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted more than $487,000 in overtime fraud involving projects on which he worked relating to the Hudson Bergen Light Rail (HBLR), U.S. Attorney Philip R. Sellinger announced.
Joseph Ferrara, 56, of North Arlington, New Jersey, pleaded guilty before U.S. District Judge Julien X. Neals in Newark federal court to one count of embezzling, stealing, and obtaining by fraud more than $487,000 of funds belonging to and under the care, custody and control of the HBLR.
According to the documents filed in this case:
From January 2018 through April 2020, Ferrara submitted fraudulent claims for compensation related to work performed on HBLR projects on which he had worked as an employee of a subcontractor specializing in electrical work. The HBLR maintains approximately two dozen stations throughout Hudson County and serves more than 50,000 passengers each weekday. Ferrara, who supervised numerous workers on HBLR projects, was compensated at a regular rate for normal workday hours, at an elevated overtime rate for work performed during non-regular weekday hours and Saturdays, and at a double time rate for work performed on Sundays. During a more than two-year period, Ferrara submitted claims for compensation covering hundreds of hours relating to work allegedly performed during regular, overtime and double time hours knowing that he had not actually performed that work for his employer or on HBLR projects. For example, Ferrara admitted that he spent approximately 10 days vacationing in Florida in both late December 2018 and late December 2019 during which he performed no work for his employer or upon HBLR projects. Nevertheless, Ferrara submitted fraudulent claims representing that he had worked more than 200 hours at regular, overtime and double time rates during those periods. In total, Ferrara admitted to receiving $487,899 in compensation for hours during which he performed no work. As part of his plea agreement, Ferrara agreed to forfeit this amount.
The theft charge is punishable by a maximum potential penalty of 10 years in prison and a maximum $250,000 fine. Sentencing is scheduled for Sept. 5, 2024.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions Division in Newark.
ferrara.information.pdfAtlantic County Resident Sentenced to 30 Months in Prison for Laundering Proceeds of COVID-19 Small Business Relief Program FraudRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced to 30 months in prison for laundering the proceeds of fraudulently obtained Paycheck Protection Program loans, U.S. Attorney Philip R. Sellinger announced today.
Jeremy Earley, 42, of Egg Harbor Township, New Jersey, and Lilburn, Georgia, pleaded guilty on June 1, 2023, before U.S. District Judge Karen M. Williams to an information charging him with one count of engaging in a monetary transaction in criminally derived property. Judge Williams imposed the sentence on April 29, 2024, in Camden federal court.
According to documents filed in this case and statements made in court:
In 2020 and 2021, two companies owned by Earley received loans totaling more than $1.3 million from the Paycheck Protection Program (PPP), a federal program that provided forgivable loans to small businesses for job retention and certain other expenses. The loans were approved based on fraudulent applications submitted by another individual stating that the companies had dozens of employees and monthly payrolls of $145,000 and $382,400, respectively. The applications also contained forged tax forms. In fact, Earley’s businesses had no employees other than himself and paid minimal to no wages. After receiving the PPP loan proceeds, Earley wrote checks totaling nearly $400,000 to the individual who submitted the loan applications to compensate her for her role in submitting the fraudulent loan applications. Earley also wired $85,000 of the proceeds out of a bank account he controlled after being advised by federal agents not to spend the money because it constituted proceeds of bank fraud.
In addition to the prison term, Judge Williams sentenced Earley to three years of supervised release.
Rhonda Thomas previously pleaded guilty to bank fraud conspiracy and money laundering and was sentenced to five years in prison.
U.S. Attorney Sellinger credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office; 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; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs in Philadelphia; 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 sentencing.
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.
District of New Jersey Collects $214 Million in Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced today that the District of New Jersey collected a total of $214 million in Fiscal Year 2023. Of this amount, $33.4 million was collected in criminal actions and $13.4 million was collected in civil actions. The district also collected $91 million in cases the office handled jointly with other U.S. Attorney’s Offices and components of the Department of Justice, including $90.9 million in civil actions and $60,851 in criminal actions. In addition, the district recovered $71.5 million in civil bankruptcy proceedings where individuals and businesses owed debts to federal agencies. And the district, working with partner agencies and divisions, collected $4.7 million in asset forfeiture actions.
U.S. Attorney Philip R. Sellinger“Part of the mission of our office is to ensure that defendants are held financially accountable for their criminal and civil wrongdoing. Our recoveries in fiscal year 2023 demonstrate this commitment. We pursue restitution for victims, ensure that defendants are made to forfeit assets they have accumulated through criminal activity, and recover federal funds obtained through fraud. We also recover debts owed to the United States in bankruptcy.”
Significant recoveries included a $14.7 million False Claims Act settlement the District of New Jersey entered into with Biotelemetry Inc. and Lifewatch Services Inc. Both companies were alleged to have knowingly submitted inflated claims for remote cardiac monitoring that were not supported by medical necessity. The district also recovered $4.25 million in an FCA settlement with Watermark Retirement Communities LLC, a senior living facility alleged to have received kickbacks in return for referrals to a nationwide home health agency which previously settled its liability with the government for $17 million. The district’s significant bankruptcy recoveries included over $18 million of delinquent tax debts for the IRS and over $16 million of outstanding commercial loans for the U.S. Small Business Administration.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. Recoveries in bankruptcy are returned to the federal agencies that are creditors in the case.
Virginia Man Convicted of Possession with Intent to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Virginia man was convicted for possession with intent to distribute fentanyl, U.S. Attorney Philip Sellinger announced today.
Djavon Holland, 37, of Virginia, was convicted on April 15, 2024, by a federal jury of two counts of possession with intent to distribute fentanyl following trial before U.S. District Judge Peter G. Sheridan in Trenton federal court.
According to court documents and evidence presented at trial:
In August 2021, law enforcement officials received information that Holland was engaged in narcotics trafficking in or around the Virginia area and New Jersey. On Aug. 12, 2021, a confidential source working with the Ocean County Prosecutor’s Office contacted Holland to arrange a meeting with a confidential source working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). On several occasions, Holland drove to New Jersey and sold fentanyl to ATF’s confidential source.
The narcotics offenses each carry a minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a fine of $5 million. Sentencing will be scheduled at a later date.
U.S. Attorney Sellinger credited special agents of the ATF, under the direction of Acting Special Agent in Charge Rossin Marchetti, and the Ocean County Prosecutor’s Office, under the direction of Ocean County Prosecutor Bradley D. Billhimer, with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorneys Megan N. Linares and Jenny Chung of the Office’s Criminal Division in Newark.
South Carolina Construction Company and Its Owner Settle Matter Alleging Receipt of Improper CARES Act LoansRead the Press Release
NEWARK, N.J. – A construction company based in South Carolina and its owner entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by taking two Paycheck Protection Program (PPP) loans and an Economic Injury Disaster Loan (EIDL) to which the company was not entitled, U.S. Attorney Philip Sellinger announced today.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. The act also authorized EIDL non-forgivable loans to small businesses impacted by the COVID-19.
According to the allegations in the complaint and the contentions of the United States in the settlement agreement:
From June 20, 2020, to Nov. 21, 2021, Dennis Corp., a construction company owned by Daniel R. Dennis III, applied for and received two PPP loans, each for approximately $512,900, and a loan pursuant to the EIDL program, for $500,000. In applying for the loans, Dennis denied having a been convicted of a felony involving fraud within five years of the submitting the loan applications. In fact, in February 2017, Dennis pleaded guilty in U.S. District Court for the Northern District of West Virginia to the felony charge of conspiring to impede the IRS. As a result of Dennis’s false certification on the PPP and EIDL applications, Dennis Corp. received more than $1.5 million in loans to which it was not entitled.
Dennis Corp. and Dennis fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement agreement, Dennis Corp. and Dennis will pay a total of $2.5 million plus interest. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $250,180 as his share.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The qui tam case is captioned United States ex rel. Forsyth v. Dennis Corp. et al., 23-20792 (D.N.J.).
denniscorp.settlement.pdfFormer General Counsel of Large Public Company admits Tax OffensesRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man, and former general counsel for a large public corporation admitted willfully failing to file federal income tax returns, U.S. Attorney Philip R. Sellinger announced today.
John Goggins, 63, of Chatham, New Jersey, pleaded guilty before U.S. Magistrate Judge André M. Espinosa in Newark federal court on April 25, 2024, to a four-count information charging him with willfully failing to file federal income tax returns for tax years 2018 through 2021.
According to documents filed in this case and statements made in court:
Goggins was a former senior vice-president and general counsel of a large publicly traded corporation. For the years 2018 through 2021, Goggins earned total gross income of $54 million from wages, restricted stock awards, the exercise of annual nonqualified stock options, interest, dividends, and gains from stock sales. Goggins failed to file federal income tax returns for those years.
The willful failure to file tax returns charges each carry a maximum potential penalty of one year in prison and a $100,000 fine, or twice the gross gain or loss from the offense. Any prison sentence imposed on Counts One through Four may run consecutively to each other. Sentencing is scheduled for Sept. 6, 2024.
U.S. Attorney Sellinger credited IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan with the investigation leading to the guitly plea.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark, and Trial Attorney Kenneth Vert of the Justice Department’s Tax Division.
goggins.information.pdfDoctor Convicted for $5.4M Medicare Fraud SchemeRead the Press Release
A federal jury convicted a New Jersey doctor today for causing the submission of over $5.4 million in fraudulent claims to Medicare for orthotic braces ordered through a telemarketing scheme.
According to court documents and evidence presented at trial, Adarsh Gupta, M.D., 51, of Sewell, signed thousands of prescriptions for orthotic braces for over 2,900 Medicare beneficiaries whom he was connected with by telemarketers who convinced the beneficiaries to accept unnecessary braces. After briefly speaking to the beneficiaries over the telephone, Gupta prescribed orthotic braces for them. For instance, Gupta prescribed a back brace, shoulder brace, wrist brace, and knee brace for an undercover agent after speaking with the agent for just over a minute on the telephone. In another instance, Gupta prescribed a knee brace for a Medicare beneficiary whose legs had previously been amputated. The evidence presented at trial showed that Gupta could not possibly have diagnosed the beneficiaries or determined that the braces were medically necessary during his brief telephonic encounters with them. Nonetheless, Gupta signed prescriptions for braces that falsely represented that the braces were medically necessary and that he diagnosed the beneficiaries, had a care plan for them, and recommended that they receive certain additional treatment. Gupta’s false prescriptions were used by brace supply companies to bill Medicare more than $5.4 million.
The jury convicted Gupta of three counts of health care fraud and two counts of false statements relating to health care matters. He is scheduled to be sentenced on October 8, 2024 and faces a maximum penalty of 10 years in prison on each of the health care fraud counts and five years in prison on each of the false statements relating to health care matters counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division; and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorneys Darren C. Halverson and Sarah E. Edwards of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from Assistant U.S. Attorney Kelly M. Lyons for the District of New Jersey. Trial Attorney Steven Michaels of the Special Matters Unit of the Criminal Division’s Fraud Section assisted with filter matters.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Two Former Employees of New Jersey Mortgage Lending Business Charged for Roles in Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – Two men have been charged in connection with their roles in a large-scale mortgage fraud scheme, U.S. Attorney Philip R. Sellinger announced today.
Christopher J. Gallo, 44, of Old Tappan, New Jersey, and Mehmet A. Elmas, 32, a U.S. citizen who resides in Turkey, are charged by complaint with one count of conspiracy to commit bank fraud. They appeared today before U.S. Magistrate Judge André M. Espinosa in Newark federal court and were each released $200,000 unsecured bond.
According to documents filed in this case and statements made in court:
Gallo and Elmas were previously employed by a New Jersey-based, privately owned licensed residential mortgage lending business. Gallo was employed as a senior loan officer and Elmas was a mortgage loan officer and Gallo’s assistant. From 2018 through October 2023, Gallo and Elmas used their positions to conspire and engage in a fraudulent scheme to falsify loan origination documents sent to mortgage lenders in New Jersey and elsewhere, including their former employer, to fraudulently obtain mortgage loans. Gallo and Elmas routinely mislead mortgage lenders about the intended use of properties to fraudulently secure lower mortgage interest rates. Gallo and Elmas often submitted loan applications falsely stating that the listed borrowers were the primary residents of certain proprieties when, in fact, those properties were intended to be used as rental or investment properties.
By fraudulently misleading lenders about the true intended use of the properties, Gallo and Elmas secured and profited from mortgage loans that were approved at lower interest rates. The conspiracy also included falsifying property records, including building safety and financial information of prospective borrowers to facilitate mortgage loan approval. Between 2018 through October 2023, Gallo originated more than $1.4 billion in loans.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic 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.
galloelmas.complaint.pdfNewark Resident Admits Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man admitted his role in a scheme to steal checks sent through the mail and commit bank fraud, U.S. Attorney Philip R. Sellinger announced today.
Malachi Jefferson, 25, of Newark, pleaded guilty on April 22, 2024, before U.S. District Judge Julien X. Neals in Newark federal court to an information charging him with bank fraud.
According to documents filed in this case and statements made in court:
From April 2022 through November 2022, Jefferson’s conspirator, a U.S. Postal Service employee, stole checks from a Keansburg, New Jersey, post office. Jefferson and his conspirators then worked to deposit the stolen checks in order to fraudulently obtain more than $150,000 from the victim financial institutions.
The defendant faces a maximum sentence of 30 years in prison and a fine of up to $1 million. Sentencing is scheduled for Sept 9, 2024.
U.S. Attorney Sellinger credited special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector Christopher A. Nielsen, Philadelphia Division, officers with the Keansburg Police Department, under the direction of Chief Andrew Gogan, the Hazlet Police Department, under the direction of Chief of Police Robert Mulligan, and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division.
jefferson.information.pdfNew Jersey Couple Convicted of Forced Labor and Other Federal CrimesRead the Press Release
After a two-week trial, a federal jury in Camden, New Jersey, found Bolaji Bolarinwa, 50, and Isiaka Bolarinwa, 67, both of Burlington County, New Jersey, guilty of forced labor and other crimes related to their coercive scheme to compel two victims to perform domestic labor and childcare in their home.
Bolaji Bolarinwa was found guilty of two counts of forced labor, one count of alien harboring for financial gain and two counts of document servitude. The jury also convicted Isiaka Bolarinwa of two counts of forced labor and one count of alien harboring for financial gain. The defendants were each acquitted of a second count of alien harboring for financial gain.
“The defendants deceitfully lured the victims to the United States with promises of benefits, but then betrayed them,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendants confiscated the victims’ passports, threatened them, degraded them, physically abused them and kept them under constant surveillance, all to coerce the victims’ labor and ruthlessly exploit them for the defendants’ own profit. Human trafficking is a heinous crime, and this verdict should send the very clear message that the Justice Department will investigate and vigorously prosecute these cases to hold human traffickers accountable and bring justice to their victims.”
“These defendants engaged in an egregious bait-and-switch, luring the victims with false promises of a life and an education in the United States, and instead subjected them to grueling hours, physical abuse and psychological abuse,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Forced labor and human trafficking are abhorrent crimes that have no place in our society, and I am grateful to our team of prosecutors, agents and support staff for ensuring that justice was done in this case.”
“Imagine showing up in a foreign land, hoping for a better life and ending up trapped with no place to go and no one to turn to for help,” said Special Agent in Charge James E. Dennehy of the FBI Newark Field Office. “The victims in this investigation suffered in unimaginable ways at the hands of their captors, enduring years of physical and mental abuse. Human trafficking often takes on many different forms and can hide in plain sight. I want to commend the agents and victim specialists who worked on this case, alongside our partners at the U.S. Attorney’s Office. We want everyone to know if you or anyone you know is a victim – you can come to us for help. We will bring your tormentors to justice.”
The evidence presented at trial, including the testimony of two victims, established that, between December 2015 and October 2016, Bolaji and Isiaka Bolarinwa – originally from Nigeria, but living in New Jersey as U.S. citizens – recruited two victims to come to the United States and then coerced them to perform domestic labor and childcare services for their children through physical harm, threats of physical harm, isolation, constant surveillance and psychological abuse. The defendants engaged in this venture knowing that both victims were out of lawful status while working in their home.
Once Victim 1 arrived in the United States in December 2015, Bolaji Bolarinwa confiscated her passport and coerced her through threats of physical harm to her and her daughter, verbal abuse, isolation and constant surveillance to compel her to work every day, around the clock for nearly a year. Isiaka was aware of his wife’s threats and abusive behavior toward Victim 1 and directly benefited from Victim 1’s cooking, cleaning and childcare. The defendants then recruited Victim 2 to come to the United States on a student visa. When Victim 2 arrived in the United States in April 2016, Bolaji Bolarinwa similarly confiscated her passport and coerced her to perform household work and childcare but relied more heavily on physical abuse. On at least one occasion, Isiaka Bolarinwa also physically abused Vitim 2, and he was aware of his wife’s coercive, abusive behavior toward Victim 2 and directly benefited from her cleaning and childcare. Victim 1 and Victim 2 lived and worked in the Bolarinwa home until October 2016, when Victim 2 summoned the courage to outcry to a professor at her college, who in turn, reported the targets to the FBI.
A sentencing hearing will be scheduled at a later date. Both defendants face a maximum penalty of 20 years in prison for each forced labor count, and a maximum penalty of 10 years in prison for the alien harboring count. Bolaji Bolarinwa faces a maximum penalty of five years in prison for each unlawful document conduct count. They will also be required to pay mandatory restitution to the two victims and each face a fine on each count of up to $250,000 or twice the gross gain or gross loss from the offense, whichever is greatest.
The FBI Newark Field Office investigated the case.
Assistant U.S. Attorney Jeffrey Bender for the District of New Jersey and Trial Attorney Elizabeth Hutson of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
California Man Sentenced to 15 Months in Prison for Role in Multistate Recovery Home Patient Brokering SchemeRead the Press Release
TRENTON, N.J. – A California man was sentenced to 15 months in prison for his role in a conspiracy to broker patients as part of a multistate patient scheme in which he directed recruiters to bribe drug-addicted individuals to enroll in drug rehabilitation and received referral fees from the rehabilitation centers, U.S. Attorney Philip R. Sellinger announced today.
Kevin M. Dickau, 35, of Tustin, California, 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 April 23, 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:
Dickau, Welsh, Devlin, and their conspirators owned and operated a marketing company in California. Dickau, Welsh, and Devlin 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 Dickau, Welsh, Devlin, 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 Dickau, Welsh, and Devlin 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 Dickau, Welsh, and Devlin. Once the patients agreed to enroll in drug rehabilitation in exchange for the offered bribe, Dickau, Welsh, Devlin, 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 Dickau, Welsh, and Devlin about the patients’ status at the facilities. Dickau, Welsh, and Devlin 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. Dickau, Welsh, Devlin, and their conspirators shared that money among themselves. Costas and other recruiters received approximately half that amount for each patient they brokered. Dickau, Welsh, Devlin, 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 Dickau 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 Jason S. Gould, Chief of the Health Care Fraud Unit and Assistant U.S. Attorney Angelica Sinopole of the Health Care Fraud Unit in Newark.
Burlington County Couple Convicted of Forced Labor and Other Federal CrimesRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, couple was convicted today of forced labor and other crimes related to their coercive scheme to compel two victims to perform domestic labor and childcare in their home, harbor the victims knowing that they were unlawfully present in the United States and unlawfully confiscate the victims’ passports, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced.
Bolaji Bolarinwa, 50, was found guilty of two counts of forced labor, one count of alien harboring for financial gain and two counts of document servitude following a two-week trial before U.S. District Judge Karen M. Williams in Camden federal court. The jury also convicted Isiaka Bolarinwa, 67, of two counts of forced labor and one count of alien harboring for financial gain. The defendants were each acquitted of a second count of alien harboring for financial gain.
U.S..Attorney Philip R. Sellinger“These defendants engaged in an egregious bait-and-switch, luring the victims with false promises of a life and an education in the United States, and instead subjected them to grueling hours, physical abuse and psychological abuse. Forced labor and human trafficking are abhorrent crimes that have no place in our society, and I am grateful to our team of prosecutors, agents and support staff for ensuring that justice was done in this case.”
“The defendants exploited the victims’ trust and then inflicted physical and mental abuse against them, all so they could keep the victims working for their profit,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “Human trafficking is a heinous crime, and this verdict should send the very clear message that the Justice Department will investigate and vigorously prosecute these cases to hold human traffickers accountable and bring justice to their victims.”
“Imagine showing up in a foreign land, hoping for a better life, and ending up trapped with no place to go and no one to turn to for help,” FBI Newark Special Agent in Charge James E. Dennehy said. “The victims in this investigation suffered in unimaginable ways at the hands of their captors, enduring years of physical and mental abuse. Human trafficking often takes on many different forms and can hide in plain sight. I want to commend the agents and victim specialists who worked on this case, alongside our partners at the US Attorney's Office. We want everyone to know if you or anyone you know is a victim – you can come to us for help. We will bring your tormentors to justice.”
According to documents filed in this case and the evidence at trial:
From December 2015 to October 2016, Bolaji and Isiaka Bolarinwa – originally from Nigeria, but living in New Jersey as U.S. citizens – recruited two victims to come to the United States and then coerced them to perform domestic labor and childcare services for their children through physical harm, threats of physical harm, isolation, constant surveillance and psychological abuse. The defendants engaged in this venture knowing that both victims were out of lawful status while working in their home.
Once the first victim arrived in the United States in December 2015, Bolaji Bolarinwa confiscated her passport and coerced her through threats of physical harm to her and her daughter, verbal abuse, isolation and constant surveillance to compel her to work every day, around-the-clock for nearly a year. Isiaka was aware of his wife’s threats and abusive behavior toward the victim and directly benefited from the victim’s cooking, cleaning and childcare. The defendants then recruited a second victim to come to the United States on a student visa. When the second victim arrived in the United States in April 2016, Bolaji Bolarinwa similarly confiscated her passport and coerced her to perform household work and childcare but relied more heavily on physical abuse. On at least one occasion, Isiaka Bolarinwa also physically abused the second victim, and he was aware of his wife’s coercive, abusive behavior toward the second victim and directly benefited from her cleaning and childcare. The two victims lived and worked in the Bolarinwa home until October 2016, when the second victim notified a professor at her college, who reported the information to the FBI.
The defendants face a maximum penalty of 20 years in prison for each forced labor count. The defendants face a maximum penalty of 10 years in prison for the alien harboring count and Bolaji faces a maximum penalty of five years in prison for each unlawful document conduct count. They will also be required to pay mandatory restitution to the two victims and each face a fine on each count of up to $250,000 or twice the gross gain or gross loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark, with the investigation leading to the guilty verdict.
The government is represented by Assistant U.S. Attorney Jeffrey Bender for the District of New Jersey and Trial Attorney Elizabeth Hutson of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Somerset County Man Charged with Federal Hate Crime for Breaking into Center for Islamic Life at Rutgers University and Destroying PropertyRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man has been charged with a federal hate crime for breaking into the Center for Islamic Life at Rutgers University (CILRU) in New Brunswick, New Jersey, and destroying property, U.S. Attorney Philip R. Sellinger for the District of New Jersey, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, and New Jersey State Attorney General Matthew J. Platkin announced.
Jacob Beacher, 24, was arrested this morning and is charged by complaint with one count of intentional or attempted obstruction of religious practice and one count of making false statements to federal authorities. Beacher is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge André M. Espinosa in Newark federal court.
According to the criminal complaint, on April 10, during the Eid-al-Fitr holiday, Beacher broke into the CILRU around 2:41 a.m., where he damaged the CILRU’s property, including several religious artifacts, such as Turbah prayer stones, which are clay stones on which Muslims prostrate during prayer, and numerous other items that contained holy language from the Qur’an, Islam’s sacred scripture. The complaint also alleges that Beacher also stole a Palestinian flag and a charity box belonging to the CILRU.
U.S. Attorney Sellinger and Attorney General Platkin credited the many agencies that collaborated on this joint investigation: special agents of the FBI, Branchburg Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; prosecutors and detectives from the New Jersey Division of Criminal Justice, under the direction of Director J. Stephen Ferketic; detectives from the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; the Rutgers University Police Department-New Brunswick Division, under the leadership of Chief of University Police Kenneth Cop; the New Brunswick Police Department, under the leadership of Chief Vincent Sabo; the New Jersey State Police, under the leadership of Colonel Patrick J. Callahan and the New Jersey Regional Computer Forensics Laboratory.
The government is represented by Assistant U.S. Attorney Benjamin Levin and Deputy Chief R. Joseph Gribko for the District of New Jersey and Trial Attorney Daniel Grunert of the Justice Department’s Civil Rights Division.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
beacher.complaint.pdf