District of New Jersey
Press releases recorded for this federal judicial district.
Middlesex County Man Admits Role in Gunpoint RobberyRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted his role in an attempted robbery in New Brunswick, New Jersey, where the victim was shot 14 times, U.S. Attorney Philip R. Sellinger announced.
Jonathan Rosales, 23, of New Brunswick, pleaded guilty today before U.S. District Judge Robert Kirsch in Trenton federal court to an indictment charging him with conspiracy to commit Hobbs Act robbery and attempted Hobbs Act robbery.
According to documents filed in this case and statements made in court:
On Dec. 28, 2020, Rosales, along with his accomplices, Saul Peralta and Giovanni Hoyos-Jaimes, attempted to rob the victim in New Brunswick. During the struggle, the victim was shot 14 times causing him to sustain serious injuries. Peralta and Hoyos-Jaimes previously pleaded guilty before Judge Kirsch for their involvement in this incident.
The conspiracy to commit Hobbs Act robbery and attempted Hobbs Act robbery counts each carry a maximum potential penalty of 20 years in prison. Each count also carries a fine of up to $250,000 fine, or twice the gain or loss from the offenses, whichever is greatest. Sentencing is scheduled for June 10, 2024.
U.S. Attorney Sellinger credited special agents of the FBI in Newark, under the direction of Special Agent in Charge James E. Dennehy; members of the New Brunswick Police Department, under the direction of Chief of Police Vincent Sabo; and members of the Middlesex County Prosecutor’s Office, under the leadership of Prosecutor Yolanda Ciccone, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the National Security Unit in Newark.
rosales.indictment.pdfMember of Drug Trafficking Organization Admits Fentanyl Analogue Distribution and Money LaunderingRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted his role as a member of a drug trafficking organization responsible for the importation and distribution of hundreds of kilograms of fentanyl analogues, U.S. Attorney Philip R. Sellinger announced.
Sean Tighe, 48, of Kearny, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to a second superseding indictment charging him with drug trafficking conspiracy and international promotional money laundering conspiracy.
According to documents filed in this case and statements made in court:
Tighe admitted that from March 2014 through September 2020, he and others agreed to import and distribute various controlled substances and controlled substance analogues, including fentanyl, fentanyl analogues, synthetic cathinones, also known as “bath salts,” such as ethylone, and ketamine. Members of the conspiracy placed orders with a source in China and agreed to distribute, and did distribute, the controlled substances and analogues in New Jersey. Tighe admitted that other members of the conspiracy provided him with controlled substances and analogues pressed into small pills for distribution.
The defendants allegedly paid for the drugs they imported by sending, or recruiting others to send, international wire payments to the Chinese sources of supply. Tighe admitted to having been responsible for transferring at least $14,000 to China from April 2014 to June 2014.
The count of drug trafficking conspiracy carries a mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison and a $10 million fine. The count of international promotional money laundering conspiracy carries a maximum potential penalty of 20 years in prison and a $500,000 fine. Sentencing is scheduled for Nov. 19, 2024.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to today’s guilty plea. He also thanked HSI in Philadelphia, the FBI – Newark Division, U.S. Postal Inspection Service in Newark, IRS-Criminal Investigation, the Newark Police Department, and the Essex County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek of the Criminal Division in Newark and Trial Attorneys Stephen Sola and Alexander Hasapidis-Sferra of the Justice Department’s Money Laundering and Asset Recovery Section. The case is being prosecuted jointly by the United States Attorney’s Office, District of New Jersey and the Money Laundering and Asset Recovery Section (MLARS) of the United States Department of Justice.
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.
tighe.ssindictment.pdfMan Pleads Guilty to Opioid Distribution and Money Laundering ConspiracyRead the Press Release
A New Jersey man pleaded guilty today to drug trafficking and money laundering conspiracy charges.
According to court documents, from March 2014 to September 2020, Sean Tighe, 48, of Kearny, conspired to distribute and to possess with intent to distribute over nine kilograms of furanyl fentanyl and nine kilograms of 4-fluoroisobutyryl fentanylsynthetic cathinones (also known as bath salts), including ethylone; and ketamine. In addition, from March 2014 to May 2019, Tighe conspired to launder funds. In furtherance of the conspiracy, from April 2014 to June 2014, Tighe sent five wire payments from the United States to China to purchase controlled substances and/or controlled substance analogues.
Tighe pleaded guilty to conspiracy to distribute controlled substances and controlled substance analogues, including 100 grams or more of fentanyl analogues, synthetic cathinones, and ketamine, and conspiracy to launder monetary instruments. He is scheduled to be sentenced on Nov. 19. If the court accepts the guilty plea, the government and Tighe will agree to a sentence of approximately 12 to 15 years in prison, at least five years of supervised release for the drug conspiracy count, and a maximum of three years of supervised release for the money laundering conspiracy count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Philip R. Sellinger for the District of New Jersey, and Special Agent in Charge Michael Alfonso of Homeland Security Investigations (HSI) Newark made the announcement.
HSI Newark is investigating the case.
Trial Attorney Alexander Hasapidis-Sferra and Money Laundering and Forfeiture Unit Chief Stephen Sola of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Sammi Malek for the District of New Jersey are prosecuting the case. Special Financial Investigations Unit Financial Investigator Kathryn Montemorra provided significant assistance.
Gang Member Sentenced to 12 Years in Prison for Racketeering ChargeRead the Press Release
NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang was sentenced today to 144 months in prison for his role in a racketeering conspiracy, U.S. Attorney Philip R. Sellinger announced.
Tre Byrd, aka “Bands,” aka “G Bandz,” 22, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2015 through Sept. 22, 2022, Byrd was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere. In March 2019, Byrd worked with other members and associates of the gang to murder a gang rival, who was fatally shot on March 20, 2019, in Irvington, New Jersey. On June 20, 2020, Byrd and at least one other member and associate of the gang robbed a victim at gunpoint in Newark.
In addition to the prison term, Judge Wigenton sentenced Byrd to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the DEA, under the direction of Special Agent in Charge Cheryl Ortiz; special agents of IRS- Criminal Investigation (IRS-CI), under the direction of Special Agent in Charge Tammy Tomlins; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge Bryan Miller, as well as investigators of the U.S. Marshals Service, under Marshal Juan Mattos’ direction; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers, the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, the Newark Police Department, under the direction of Public Safety Director Fragé, the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio, the Essex County Sheriff’s Office, under Sheriff Armando B. Fontoura’s direction, the East Orange Police Department, under the direction of Chief Phyllis L. Bindi, the Elizabeth Police Department, under the direction of Police Director Earl J. Graves, the Edison Police Department, under the direction of Chief of Police Tom Bryan, the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel, the Spotswood Police Department, under the direction of Chief Philip Corbisiero, and the North Carolina State Bureau of Investigation Fugitive and Missing Person Task Force, which includes members of the FBI, for the investigations leading to the charges in the Rollin 60’s Neighborhood Crips investigation.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division.
Ocean County Man Sentenced to 30 Years in Prison for Sexually Exploiting MinorRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 360 months in prison for coercing a minor into producing images of child sexual abuse, U.S Attorney Philip R. Sellinger announced.
Samuel Schwinger, 38, Lakewood, New Jersey, previously pleaded guilty before U.S. District Court Judge Georgette Castner to an information charging him with one count of sexual exploitation of a minor. Judge Castner imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
In March 2019, Schwinger used an internet-based application to communicate with the victim, who was under the age of 12. Schwinger asked the victim to make sexually explicit videos of the victim and send them to him. Schwinger admitted that from October 2018 through April 5, 2019, he communicated with more than 25 minor victims for the purpose of producing and distributing sexually explicit material.
In addition to the prison term, Judge Castner sentenced Schwinger to 10 years of supervised release and ordered that he register as a sexual offender upon release.
U.S. Sellinger credited special agents Homeland Security Investigations, Cherry Hill, under the direction of Acting Special Agent in Charge Michael Alfonso in Newark; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; and the Lakewood New Jersey Police Department under the direction of Chief Gregory Meyer.
The government is represented by Assistant U.S. Attorney Michelle Gasparian, Chief of the Organized Crime and Gangs Unit.
Newark Man Sentenced to Eight Years in Prison for Possessing Five Firearms in Furtherance of Drug Trafficking and Conspiring to Distribute Fentanyl and CocaineRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 96 months in prison for participating in a conspiracy to distribute fentanyl and cocaine in the area of Lincoln Park in Newark, and for possessing five firearms in furtherance of drug trafficking, U.S. Attorney Philip R. Sellinger announced.
Khalid Holland, 44, of Newark, pleaded guilty on May 15, 2023, before U.S. District Judge Julien Xavier Neals to an information charging him with one count of possession of firearms and ammunition by a convicted felon; one count of possession of firearms in furtherance of a drug trafficking crime; and conspiracy to distribute fentanyl and cocaine. Judge Neals imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Holland admitted conspiring to distribute fentanyl and cocaine between June 2022 and September 2022 in Newark, New Jersey. As a result of this investigation, law enforcement recovered 13 firearms at various residences, including five in Holland’s residence, hundreds of rounds of ammunition, and thousands of individual doses of fentanyl and cocaine. Holland admitted to possessing the five firearms recovered in his residence in furtherance of drug trafficking.
In addition to the prison term, Judge Neals sentenced Holland to three years of supervised release.
U.S. Attorney Sellinger credited members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Office, under the supervision of Special Agent in Charge Bryan Miller; members of the Drug Enforcement Administration, New Jersey Division Office in Newark, under the supervision of Special Agent in Charge Cheryl Ortiz; members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; members of the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; and members of the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel, with the investigation leading to today’s sentencing.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office’s National Security Unit in Newark.
Somerset County Resident Sentenced to Five Years in Prison for Distributing Child PornographyRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, resident was sentenced today to 60 months in prison for distributing videos and images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Marcevan Manasse, 29, Somerville, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging one count of distribution of child pornography. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From Sept. 20, 2020, through Nov. 22, 2020, Manasse distributed material containing images and video files of child sexual abuse, via a publicly available online peer-to-peer (P2P) file-sharing network of linked computers. Law enforcement conducted an undercover online session to access the P2P program and to download five video files and eleven images containing child pornography from an IP address assigned to an internet service provider account associated with Manasse’s residence. These files included multiple visual depictions of pre-pubescent children engaged in sexual acts with adults.
In addition to the prison term, Judge Shipp sentenced Manasse to five years of supervised release.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to today’s sentencing. He also thanked the Somerset County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the U.S. Attorney’s Office’s Criminal Division in Newark.
Gloucester County Man Admits Violating the Travel Act by Way of Money LaunderingRead the Press Release
NEWARK, N.J. – A New Jersey man admitted violating the Travel Act using the internet to engage in money laundering, U.S. Attorney Philip R. Sellinger announced today.
Juan Perez-Aguila, 69, of Paulsboro, New Jersey, pleaded guilty on Feb. 1, 2024, before U.S. District Judge Brian Martinotti in Newark federal court to an information charging him with one count of interstate and foreign travel or transportation in aid of racketeering enterprises.
According to documents filed in this case and statements made in court:
Perez-Aguila unlawfully accessed and controlled customer accounts of a company offering point-of-sale services and issued chargeback refunds from those accounts to other accounts that he controlled. Once he obtained the stolen funds from the customer accounts, Perez-Aguila laundered more than $20,000 of the criminally derived proceeds into another bank account that he controlled. Perez-Aguila misappropriated over $1 million from the victims of his fraudulent scheme.
The violation of the Travel Act carries a maximum penalty of five years in prison and a fine of up to $250,000. Sentencing is scheduled for June 13, 2024.
U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspection Service in Newark, under the direction of Christopher A. Nielsen, Philadelphia Division, and Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation.
The government is represented by Assistant U.S. Attorney Eric Suggs of the U.S. Attorney’s Office in Trenton.
perezaguila.information.pdfUnion County Man Sentenced to Five Years in Prison for Operating Multimillion-Dollar Unlicensed Check Cashing SchemeRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man with businesses in Newark was sentenced today to 60 months in prison for operating an unlicensed check cashing business, U.S. Attorney Philip R. Sellinger announced.
Fernando Q. Martins, 44, of Union Township, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to one count of operating an unlicensed money transmitting business. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Martins previously admitted that from 2015 through June 19, 2019, he operated a business known as Community Check Cashing in Newark, despite holding no license, registration or permission from the U.S. Department of Treasury. He cashed checks for customers in New Jersey and New York, allowing them to cash checks written to shell companies to hide the identity of the customers receiving the cash. In his plea agreement, Martins stipulated that the loss amount was between $250 million and $550 million.
In addition to the prison term, Judge Wigenton sentenced Martins to three years of supervised release, fined him $50,000 fine, and ordered forfeiture of $765,185.
U.S. Attorney Sellinger credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney David E. Malagold of the Cybercrime Unit in Newark.
Political Organizer and Former President of City Council of Atlantic City Charged with Submitting Fraudulent Mail-In BallotsRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was arrested today for his role in procuring, casting, and tabulating fraudulent mail-in ballots submitted in the Nov. 8, 2022, general election, U.S. Attorney Philip R. Sellinger announced.
Craig Callaway, 64, a former member and president of the City Council of Atlantic City and a political organizer who assisted campaigns for elected offices in New Jersey, is charged in a criminal complaint unsealed today with one count of depriving, defrauding, and attempting to deprive and defraud the residents of the state of New Jersey of a fair and impartially conducted election process by the fraudulent procurement, casting, and tabulation of ballots. Callaway is scheduled to make his initial appearance today before U.S. Magistrate Judge Matthew J. Skahill in Camden federal court.
U.S. Attorney Philip R. Sellinger“Holding free and fair elections is a bedrock principle of our democracy. As alleged in the complaint, the defendant attempted to deprive New Jersey residents of a fair election by fraudulently procuring and casting ballots. Today’s charges reflect our office’s commitment to hold to account those who try to undermine the electoral process.”
“Voter fraud at any level chips away at the faith people have in our system,” FBI – Newark Special Agent in Charge James E. Dennehy said. “We’re unable as American citizens to hold our government accountable if our votes are compromised. The FBI and our law enforcement partners understand the gravity of protecting the process and will bring those criminals who break the law to justice.”
According to the documents filed in this case:
Approximately one month before the Nov. 8, 2022, general election, Callaway and others working at Callaway’s direction approached numerous individuals in Atlantic City promising to pay them $30 to $50 to act as purported authorized messengers for voters who supposedly wished to vote by mail.
After receiving Vote-By-Mail Applications from Callaway or his subordinates, these purported messengers entered the Atlantic County clerk’s office carrying anywhere from one to four completed Vote-By-Mail Applications. As instructed by Callaway or his subordinates, these individuals provided county clerk’s office personnel proof of identification and signed the Vote-By-Mail Applications in the authorized messenger portion before handing those signed applications to office personnel. The purported messengers waited while office personnel processed the applications and, if the applications were approved, provided to the purported messengers mail-in ballots for the voters listed on the applications.
Under New Jersey law, a messenger is required to deliver any mail-in ballot they received directly to the voter who requested the ballots, and certify that they would do so. However, after receiving mail-in ballots, these purported messengers left the county clerk’s office and instead handed the ballots to Callaway or his subordinates.
Many of the mail-in ballots collected by Callaway or his subordinates were ultimately cast in the names of people who have confirmed that they did not vote in the 2022 General Election – either in person or by submitting a mail-in ballot – and that they did not authorize Callaway, his subordinates, or anyone else, to cast ballots for them. Many of these mail-in ballots were counted towards in the election.
The charge of the procuring, casting, and tabulating fraudulent ballots carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy; the FBI’s Atlantic City Resident Agency's Public Corruption Task Force, including the Atlantic County Prosecutor's Office, under the direction of Prosecutor William Reynolds; the Atlantic City Police Department, under the direction of Officer in Charge Chief James A. Sarkos; and the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; as well as 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; the Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins; and postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney in Charge of the Trenton Branch Office, and Assistant U.S. Attorney James H. Graham of the Organized Crime and Gangs Unit, under the supervision of the Special Prosecutions Division.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
callaway.complaint.pdfOcean County Man Admits Federal Hate Crimes for Series of Violent Assaults on Members of Orthodox Jewish CommunityRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted committing a series of violent assaults on members of the Orthodox Jewish community in and around Lakewood, New Jersey, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced.
Dion Marsh, 29, of Manchester, New Jersey, pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court to an information charging him with five counts of violating the federal Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act and one count of carjacking. Marsh is charged with willfully causing bodily injury to five victims, and attempting to kill and cause injuries with dangerous weapons to four of them, because they were Jewish.
U.S. Attorney Philip R. Sellinger“This defendant violently attacked five men, driving a car into four of them, stabbing one of them in the chest, and attempting to kill them, simply because they were visibly identifiable as Orthodox Jews. Today, he pleaded guilty to these hate crimes and a carjacking, and my office will ask the judge to impose a sentence that holds Marsh accountable for his brutal and hate filled rampage. The threat from hate-fueled violence is a sad reality across our state and our nation. That hate is not who we are. We are stronger as a people because no matter what you look like, how you worship, where you come from, or who you love, your civil rights must be respected and protected. My office has no higher priority than protecting the civil rights of our New Jersey residents.”
“This defendant is being held accountable for his series of depraved, antisemitic assaults against members of the Orthodox Jewish community,” Assistant Attorney General Clarke said. “Hate-filled acts of violence, intended to harm, intimidate and isolate communities, have no place in our society. The Justice Department will continue to aggressively prosecute perpetrators of antisemitic violence across our country.”
“We have said time and again as we investigate a significant rise in hate crimes, hating someone isn’t a crime, but hating someone and then attacking them based on that hate is a violation of federal law,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Marsh admits he targeted five innocent people in 2022 because they were Orthodox Jews. Personal beliefs don’t give someone the right to attack and attempt to kill another human being because they may not ascribe to a similar religion or way of life. We have a clear message for the communities we serve in New Jersey, if you are a victim of a hate crime or have information the FBI and our law enforcement partners should know, please report it. Silence won’t solve it, and we can’t help if we don’t know about it. You can go to tips.fbi.gov or call 1-800-CALL-FBI.”
According to documents filed in this case and statements made in court:
On April 8, 2022, Marsh carried out a series of violent assaults on members of the Orthodox Jewish Community in and around Lakewood. Each of Marsh’s victims were attired in traditional garments worn by members of the Orthodox Jewish community and were assaulted because they were visibly identifiable Orthodox Jews.
At 1:18 p.m. on April 8, 2022, Marsh forced a visibly identifiable Orthodox Jewish man out of his car in Lakewood, assaulting and injuring him. Marsh took control of the man’s car and drove away.
At 5:20 p.m., Marsh was in Lakewood driving a different car when he deliberately struck another visibly identifiable Orthodox Jewish man with the vehicle, attempting to kill the victim.
At 6:06 p.m., Marsh used that second vehicle to deliberately strike another visibly identifiable Orthodox Jewish man, attempting to kill the victim and causing him to suffer several broken bones.
At 6:55 p.m., Marsh, once again driving the vehicle that he had stolen from the first victim, attempted to kill another visibly identifiable Orthodox Jewish man who was walking in Lakewood by deliberately striking him with the vehicle. Marsh got out of the vehicle and stabbed the man in the chest with a knife, causing the victim to suffer a stab wound and other injuries.
At 8:23 p.m., Marsh, still driving the vehicle that he had stolen from the first victim, used it to deliberately strike another visibly identifiable Orthodox Jewish man who was walking in nearby Jackson Township, New Jersey, attempting to kill the man and causing him to suffer several broken bones and internal injuries.
The four hate crimes violations charging Marsh with attempting to kill those victims each carry a statutory maximum term of life in prison and a $250,000 fine. The hate crime violation charging Marsh with assaulting the other victim carries a statutory maximum term of 10 years in prison and a $250,000 fine. The carjacking charge carries a statutory maximum term of 15 years in prison and a $250,000 fine. Marsh is scheduled to be sentenced on June 11, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge Dennehy in Newark; officers of the Lakewood Police Department, under the direction of Chief of Police Gregory H. Meyer; officers of the Jackson Township Police Department, under the direction of Chief of Police Matthew Kunz; officers of the Ocean County Sheriff’s Office, under the direction of Sheriff Michael G. Mastronardy; prosecutors and detectives of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko, Deputy Chief of the U.S. Attorney’s Office’s Civil Rights Division.
marsh.information.pdfNew Jersey Man Pleads Guilty to Series of Violent Assaults on Members of the Orthodox Jewish CommunityRead the Press Release
A New Jersey man pleaded guilty today to committing a series of bias-motivated violent assaults on members of the Orthodox Jewish community in and around Lakewood, New Jersey.
On Feb. 1, Dion Marsh, 29, of Manchester, pleaded guilty before U.S. District Judge Zahid N. Quraishi in federal court to an information charging him with five counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act and one count of carjacking. Marsh is charged with willfully causing bodily injury to five victims and attempting to kill and cause injuries with dangerous weapons to four of the victims, because they are Jewish.
“This defendant is being held accountable for his series of depraved, antisemitic assaults against members of the Orthodox Jewish community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Hate-filled acts of violence, intended to harm, intimidate and isolate communities, have no place in our society. The Justice Department will continue to aggressively prosecute perpetrators of antisemitic violence across our country.”
“This defendant violently attacked five men, driving a car into four of them, stabbing one of them in the chest, and attempting to kill them, simply because they were visibly identifiable as Orthodox Jews,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Today, he pleaded guilty to these hate crimes and a carjacking, and my office will ask the judge to impose a sentence that holds Marsh accountable for his brutal and hate filled rampage. The threat from hate-fueled violence is a sad reality across our state and our nation. That hate is not who we are. We are stronger as a people because no matter what you look like, how you worship, where you come from, or who you love, your civil rights must be respected and protected. My office has no higher priority than protecting the civil rights of our New Jersey residents.”
“We have said time and again as we investigate a significant rise in hate crimes, hating someone isn’t a crime, but hating someone and then attacking them based on that hate is a violation of federal law,” said Special Agent in Charge James E. Dennehy of the FBI Newark Field Office. “Marsh admits he targeted five innocent people in 2022 because they were Orthodox Jews. Personal beliefs don’t give someone the right to attack and attempt to kill another human being because they may not ascribe to a similar religion or way of life. We have a clear message for the communities we serve in New Jersey, if you are a victim of a hate crime or have information the FBI and our law enforcement partners should know, please report it. Silence won’t solve it, and we can’t help if we don’t know about it. You can go to tips.fbi.gov or call 1-800-CALL-FBI.”
According to court documents and statements made in court, on April 8, 2022, Marsh carried out a series of violent assaults on members of the Orthodox Jewish Community in and around Lakewood. Each of Marsh’s victims was attired in traditional garments worn by members of the Orthodox Jewish community and was assaulted because they were visibly identifiable as Orthodox Jews.
Specifically, at 1:18 p.m. on April 8, 2022, in Lakewood, Marsh forced a man readily identifiable by his appearance as an Orthodox Jew out of his car, assaulting and injuring him. Marsh took control of the man’s car and drove away.
At 5:20 p.m., Marsh was in Lakewood driving a different car when he deliberately struck another visibly identifiable Orthodox Jewish man with the vehicle, attempting to kill the victim.
At 6:06 p.m., Marsh used that second vehicle to deliberately strike another man identifiable by his appearance as an Orthodox Jew, attempting to kill the victim and causing him to suffer several broken bones.
At 6:55 p.m., Marsh, once again using the vehicle that he had stolen from the first victim, struck and attempted to kill another man readily identifiable as an Orthodox Jew while he was walking in Lakewood. Marsh got out of the vehicle and stabbed the man in the chest with a knife, causing the victim to suffer serious injuries.
At 8:23 p.m., Marsh, still using the vehicle that he had stolen from the first victim, deliberately struck another visibly identifiable Orthodox Jewish man who was walking in nearby Jackson Township, New Jersey, attempting to kill the man and causing him to suffer several broken bones and internal injuries.
A sentencing hearing is scheduled for June 11. Marsh faces a maximum penalty of life in prison and a $250,000 fine for each of the four hate crimes violations charging him with attempting to kill victims, a maximum sentence of 10 years in prison and a $250,000 fine for the hate crime violation charging him with assaulting the other victim and a maximum penalty of 15 years in prison and a $250,000 fine for the carjacking charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Newark Field Office’s Red Bank Resident Agency, Lakewood Police Department, Jackson Township Police Department, Ocean County Sheriff’s Office, Ocean County Prosecutor’s Office and New Jersey State Police investigated the case.
Assistant U.S. Attorney and Deputy Chief of the Civil Rights Division R. Joseph Gribko for the District of New Jersey prosecuted the case with assistance from the Justice Department’s Civil Rights Division.
U.S. Attorney’s Office Settles Disability Discrimination Lawsuit Against Roosevelt Care CentersRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office filed a proposed consent decree today to resolve its lawsuit against Roosevelt Care Centers (RCC) for violating Title I of the Americans with Disabilities Act (ADA), U.S. Attorney Philip R. Sellinger announced.
According to the complaint, which was filed in federal court on March 20, 2023, Roosevelt Care Centers unlawfully terminated a dietary worker whose disability inhibited her ability to lift objects heavier than 20 pounds. Prior to her termination, the employee had been successfully working at RCC for approximately 18 years and remained able to perform the essential functions of her position. Nonetheless, Roosevelt Care Centers terminated the dietary worker’s employment due to her disability without engaging in an interactive process to provide her with a reasonable accommodation.
U.S. Attorney Philip R. Sellinger“Qualified individuals with disabilities must be given an equal opportunity to be part of the workforce. This settlement reflects the U.S. Attorney’s Office’s commitment to ending discriminatory employment practices and protecting the civil rights of all employees under the Americans with Disabilities Act.”
Under the terms of the consent decree, which must be approved by the court, RCC has agreed to pay $50,000 in compensation to the complainant. The settlement also requires RCC to train its staff on the ADA and to periodically submit reports about its compliance with the consent decree.
Title I of the ADA prohibits employers from discriminating against a qualified individual on the basis of disability. An employer may not demote, terminate, or deny employment opportunities to an employee who is otherwise qualified if the demotion or termination is based on the need to make reasonable accommodations for the employee.
U.S. Attorney Sellinger created a Civil Rights Division with the sole focus on enforcing federal civil rights laws, including the ADA, with the goal of protecting and upholding the civil rights of those in our community. This matter was handled by the U.S. Attorney’s newly formed Civil Rights Division based on a referral from the Newark Area Office of the Equal Employment Opportunity Commission.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).
The government is represented by Assistant U.S. Attorney Thandiwe Boylan of the Civil Rights Division in Newark.
roosevelt.complaint.pdf roosevelt.decree.pdfMorris County Woman Admits Compensation FraudRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, woman employed by the U.S. Postal Service today admitted making false statements in several claim forms seeking disability compensation, U.S. Attorney Philip R. Sellinger announced.
Pamela VanSyckle, 60, of Oak Ridge, New Jersey, pleaded guilty before U.S. District Court Judge Katharine S. Hayden in Newark federal court to an information charging her with one count of federal employee compensation fraud.
According to documents filed in this case and statements made in court:
VanSyckle worked for the U.S. Postal Service as a rural carrier. In September 2020, VanSyckle signed and filed a claim form alleging that she sustained an injury at work. Thereafter, she signed and filed multiple federal claim forms alleging that she had not worked or had outside employment for extended periods of time. Based on the submission of those claims, VanSyckle received $156,872 in disability payments from the federal government.
During the time in which she received disability benefits, VanSyckle was in fact working as the owner and operator of a travel agency. While alleging in her claim forms that she was neither self-employed nor involved in any business enterprise, VanSyckle performed a variety of services for the travel agency including sales, marketing, and financial operations.
The fraud charge carries a maximum potential sentence of five years in prison and a maximum fine equal to the greatest of $250,000 or twice the gross amount of any pecuniary gain that any persons derived from the offense. Sentencing is scheduled for June 12, 2024.
U.S. Attorney Sellinger credited special agents of the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modaferri in Newark; special agents of the U.S. Department of Labor – Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone; and members of the Jefferson Township Police Department, under the direction of Chief Paul Castimore, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Special Prosecutions Unit in Newark.
vansyckle.information.pdfGloucester County Man Sentenced to Four Years in Prison for Filing False Tax ReturnsRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 48 months in prison for filing false claims against the IRS, U.S. Attorney Philip R. Sellinger announced.
Christian L. Whittaker, 43, of Williamstown, New Jersey, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to one count of an indictment charging him with making false claims against the IRS. Judge O’Hearn imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Whittaker knowingly and willfully prepared, electronically signed, and filed with the IRS false U.S. Individual Income Tax Returns (Forms 1040) for the tax years 2016 to 2019. Whittaker claimed that a business paid him significant wages and incurred substantial losses, when in fact the business was fictitious. Based on the false claims, the IRS paid more than $300,000 in refunds to Whittaker. More than $80,000 was paid by the IRS and garnished to pay debts that Whittaker had previously incurred.
In addition to the prison term, Judge O’Hearn sentenced Whittaker to three years of supervised release and ordered restitution of $390,682.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Andrew D’Aversa of the U.S. Attorney’s Office’s Criminal Division in Camden.
Brooklyn Man Sentenced to 121 Months in Prison for Strongarm Extortion SchemeRead the Press Release
TRENTON, N.J. – A Brooklyn man was sentenced today to 121 months in prison for conspiring with others in a week-long strongarm extortion scheme in 2019, U.S. Attorney Philip Sellinger announced.
Francis A. Garzon, 35, of Brooklyn, New York, previously pleaded guilty before U.S. District Judge Michael A. Shipp to one count of conspiracy to commit Hobbs Act extortion and one count of attempt to commit Hobbs Act extortion. U.S. District Judge Zahid N. Quraishi sentenced Garzon today in Trenton federal court. Garzon’s codefendant, Endrit Kllogjeri, was found guilty following a jury trial in June 2023 and is scheduled to be sentenced on March 21, 2024.
According to documents filed in this case and statements made in court:
From Dec. 1, 2019 through Dec. 9, 2019, Garzon and Kllogjeri conspired and attempted to extort a resident of Monmouth County, New Jersey, and the resident’s son, who resided in Brooklyn, New York. The victim was allegedly threatened with physical harm if the victim did not recover a bag containing property allegedly valued at $100,000 from the victim’s son. Garzon and Kllogjeri further demanded an additional payment of $100,000 as “interest” for the son’s possession of the bag. Garzon admitted that he brandished a revolver at the victim in an effort to intimidate the victim. Over the ensuing week, Garzon and Kllogjeri communicated regularly with the victim’s telephone, continuing to threaten the victim and the victim’s family. Garzon and Kllogjeri were arrested together in a vehicle on Dec. 9, 2019 in Brooklyn. Moments before the arrest, Garzon had attempted to send the victim a text message confirming the victim’s plan to pay the demand.
In addition to the prison term, Judge Quraishi sentenced Garzon to three years of supervised release following Garzon’s release from prison.
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 today’s sentencing. He also thanked the Marlboro Township Police Department, under the direction of Chief Peter Pezzullo; and the New York City Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Office, and Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Egyptian Citizen Extradited to United States on Wire Fraud and Aggravated Identity Theft ChargesRead the Press Release
NEWARK, N.J. – A citizen of Egypt who was extradited to the United States on wire fraud and aggravated identity theft charges had his initial appearance in New Jersey federal court today, U.S. Attorney Philip R. Sellinger announced.
Hatem Ghouneim, 35, is charged by indictment with three counts of wire fraud and one count of aggravated identity theft. Ghouneim was arrested in Spain on July 16, 2023, and extradited on Jan. 25, 2024, at the request of the United States. He had his initial appearance today, before U.S. Magistrate Judge James B. Clark III in Newark federal court, pleaded not guilty, and was detained.
According to documents filed in this case and statements made in court:
From January through December 2019, Ghouneim engaged in a scheme to defraud a technology company that operates a rideshare service. By creating fraudulent accounts and using stolen identities, Ghouneim induced the company to pay him referral fees for each new fraudulently created account. Ghouneim defrauded the company of hundreds of thousands of dollars in referral fees.
The wire fraud charges each carry a maximum potential penalty of 20 years in prison, and the aggravated identity theft charge carries a mandatory minimum penalty of two years in prison. Any term of imprisonment on the aggravated identity theft charge must run consecutively to any other sentence imposed on the other counts. Each count also carries a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the indictment. He also thanked the U.S. Department of Justice’s Office of International Affairs and the FBI Attaché’s Office in Spain for their assistance, as well as the government of Spain for their substantial assistance arresting and extraditing Ghouneim to the United States.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
ghouneim.indictment.pdfTwo Paterson Residents Charged in Conspiracies to Distribute OpioidsRead the Press Release
NEWARK, N.J. – Two Paterson, New Jersey, residents were charged separately for conspiring with a doctor to distribute opioids without a legitimate medical reason, U.S. Attorney Philip R. Sellinger announced.
Jasmine McGregor, 32, and Jhanelle Lewis, 35, both of Paterson, were each charged by separate complaint with one count of knowingly and intentionally conspiring and agreeing with others, including Dr. Lisa Ferraro, of Hillsdale, New Jersey, to distribute oxycodone, a Schedule II controlled substance, outside the usual course of professional practice and not for a legitimate medical purpose. McGregor and Lewis made their initial appearances today before U.S. Magistrate Judge James B. Clark, III in Newark federal court and were each released on $100,000 unsecured bond. Ferraro was charged with the same offense and arrested on Oct. 3, 2023.
According to documents filed in this case and statements made in court:
From July 11, 2021, to Oct. 3, 2023, in the case of McGregor, and from May 11, 2021, to Oct. 3, 2023, in the case of Lewis, McGregor and Lewis each participated with Ferraro in a conspiracy to prescribe oxycodone, an opioid pain medication, to individuals who were not actually Ferraro’s patients and whom Ferraro never physically examined or questioned about symptoms to determine whether there was a legitimate medical need for oxycodone. Among the patients were social acquaintances of McGregor, whose personal information was shared with Ferraro without their knowledge. Lewis also provided personal identifier information to Ferraro, including the information of her romantic partner, who was incarcerated while Ferraro was prescribing oxycodone in their name.
Over the course of the conspiracy with McGregor, Ferraro wrote prescriptions for 630 20mg oxycodone pills and 12,040 30mg oxycodone pills. Over the course of the conspiracy with Lewis, Ferraro wrote prescriptions for 19,088 30mg oxycodone pills.
The charge of conspiracy to distribute controlled substances carries a maximum penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Ray A. Mateo and Aaron L. Webman of the Opioid Abuse Prevention and Enforcement Unit in Newark.
The charges and allegations against the defendants and Ferraro are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
mcgregor.complaint.pdf
lewis.complaint.pdfBrooklyn Man Charged with Sex Trafficking of ChildRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man was charged with child sex trafficking and related offenses, U.S. Attorney Philip R. Sellinger announced today.
Soauib Butcher, 30, of Brooklyn, is charged by indictment with conspiracy to commit sex trafficking of a minor, sex trafficking of a minor, and transporting a minor to engage in commercial sexual activity. He appeared today before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
In August 2019, Butcher induced a minor victim, whom he met on social media, to run away from a group home and meet him at a train station in Somerville, New Jersey. Butcher brought the victim by train to New York City, where he instructed the victim to perform oral sex for money on a rooftop in Brooklyn. Several days later, Butcher brought the victim to Elizabeth, New Jersey, where, from August 2019 to January 2020, the victim stayed with Butcher and a conspirator in a series of motel rooms. The conspirator posted advertisements depicting the victim on escort websites and, together with Butcher, arranged for customers to come to the motels to have sex with the victim in exchange for money.
Each of the crimes charged in the indictment carries a mandatory minimum penalty of 10 years in prison, a maximum term of life imprisonment and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of James E. Dennehy in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Aaron L. Webman of the Opioid Abuse Prevention and Enforcement Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
butcher.indictment.pdfMan Sentenced in District of New Hampshire to 20 Years in Prison for Child Exploitation Offenses Occurring in New JerseyRead the Press Release
NEWARK, N.J. – A Concord, New Hampshire, man was sentenced today in federal court to 240 months in prison for the exploitation of a minor in New Jersey and possession of child sexual abuse material, U.S. Attorney Philip Sellinger and U.S. Attorney Jane E. Young announced.
Scott Wilkinson, 39, previously pleaded guilty to one count each of production of child pornography and one count of possession of child sexual abuse material before U.S. District Court Judge Joseph Laplante, who imposed the sentence today in federal court in New Hampshire.
According to documents filed in this case and statements made in court:
Wilkinson traveled from New Hampshire to New Jersey in April 2022, where he engaged in sexual acts with a 12-year-old child. Wilkinson had been corresponding with the child online for approximately one year prior to traveling to New Jersey to meet the child. A video that Wilkinson created of himself engaged in sexual acts with the child was found on his cell phone, as were other images and videos of child sexual abuse material.
In addition to the prison term, Judge Laplante sentenced Wilkinson to 10 years of supervised release.
U.S. Attorney Sellinger and U.S. Attorney Young credited special agents of the FBI the Newark Child Exploitation and Human Trafficking Task force, under the direction of Special Agent in Charge James E. Dennehy; and the Egg Harbor Township Police Department with the investigation leading to today’s sentencing. Valuable assistance was provided by the Concord Police Department.
The government is represented by Assistant U.S. Attorney Lindsey Harteis of the District of New Jersey and Assistant U.S. Attorney Kasey Weiland of the District of New Hampshire.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Two Essex County Men Charged with Seven Gas Station Gunpoint RobberiesRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey, men are charged with seven gunpoint robberies of gas stations located in different parts of New Jersey in September 2023, U.S. Attorney Philip R. Sellinger announced today.
Ahmad Singletary, 24, and Joseph Young, 26, both of Newark, are charged by complaint with one count of conspiracy to commit Hobbs Act robbery; one count of conspiracy to use and carry a firearm during and in relation to a crime of violence; seven counts of Hobbs Act robbery, and two counts count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Singletary is also charged with one count of possession of a firearm and ammunition by a convicted felon. Singletary and Young each made their initial appearance on Jan. 16, 2024, before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and were detained.
According to documents filed in this case and statements made in court:
On three occasions on Sept. 5, 2023, and four occasions on Sept. 12, 2023, Singletary and Young robbed gas stations in Middlesex, Union, and Essex counties. The defendants targeted gas stations on or near highways, used a firearm, committed the robberies in the early morning, and performed the robberies in approximately four minutes or less. During the course of four of the robberies, Singletary threatened, assaulted, and struck victims in the head with a firearm, causing physical injuries.
The Hobbs Act robbery and conspiracy to commit Hobbs Act robbery counts each carry a maximum potential penalty of 20 years in prison. The conspiracy to use and carry a firearm during and in relation to a crime of violence count carries a maximum potential penalty of 10 years in prison. The using, carrying, and brandishing a firearm during and in relation to a crime of violence counts each carry a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other term of imprisonment imposed. Each count also carries a fine of up to $250,000 fine, or twice the gain or loss from the offenses, whichever is greatest. Singletary is subject to a maximum potential penalty of 15 years in prison for the charge of possession of a firearm and ammunition by a convicted felon.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Union County Prosecutors Office, under the direction of Prosecutor William A. Daniel; the Newark Police Department, under the direction of Director Fritz G. Fragé; the Township of Union Police Department, under the direction of Director Chris Donnelly; the Woodbridge Police Department, under the direction of Director Robert Hubner; and the West Orange Police Department, under the direction of Chief James Abbott, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Ariel Douek of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
singletaryyoung.complaint.pdfEssex County Tax Preparer Admits $4.4 Million Conspiracy to Defraud IRSRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, tax preparer admitted that he conspired to obtain over $4.4 million by defrauding the IRS, U.S. Attorney Philip R. Sellinger announced today.
Omar Khater, 33, of Fairfield, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court on Jan. 23, 2024, to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. Khater’s conspirator, Walid Khater, 38, of Arizona, is charged by complaint and his case remains pending.
U.S. Attorney Philip R. Sellinger“This defendant has admitted his role in an elaborate scheme that used stolen personal identifying information and fabricated tax returns to bilk the IRS of millions of dollars. Working with our law enforcement partners, we will root out these illegal and dangerous schemes, and those who perpetrate them can expect the same result as Omar Khater.”
“With this year’s filing just around the corner, today’s plea is a stark reminder as to how valuable your personally identifiable information is to criminals and how important it is to safeguard the information,” Tammy Tomlins, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “Along with our law enforcement partners, we will vigorously pursue individuals who steal other people’s identities to enrich themselves through the filing of fraudulent tax returns.”
“Khater is now admitting he worked with others to falsely file returns based on stolen identities and pocketed the refunds,” FBI – Newark Special Agent in Charge James E. Dennehy said. “We trust tax preparers with a tremendous amount of vital information about our lives, and when they use it to break the law it's unsettling to say the least. Khater fleeced the IRS out of millions of dollars, but he's the one now paying for his fraud.”
According to documents filed in this case and statements made in court:
Omar and Walid Khater were relatives who worked together and with others to steal victims’ identities, which they used to file false tax returns and fraudulently receive tax refunds from the IRS. They electronically submitted tax documents to the IRS falsely claiming that the individual taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings. The false filings also claimed tax withholdings on the purported income or gambling winnings that entitled the tax filer to refund payments from the IRS. The Khaters and others typically submitted these fraudulent tax filings using the names and personal identifying information of victims without the victims’ knowledge or permission. The fraudulent filings caused the IRS to pay lucrative tax refunds, which the Khaters and others directed to various bank accounts that they controlled. This scheme caused the U.S. Treasury to issue tax refunds $4.49 million, which the Khaters and others diverted to bank accounts they controlled in New Jersey and elsewhere.
The count of conspiracy to commit wire fraud is punishable by a maximum of 20 years in prison and the count of conspiracy to defraud the IRS is punishable by a maximum of five years in prison is punishable by a maximum of five years in prison. Both counts are also punishable by a fine of $250,000, or twice the gross loss or gain caused by the offense, whichever is greatest. Sentencing is scheduled for June 12, 2024.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and special agents of FBI-Newark, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Fatime Meka Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark.
The charges and allegations against Walid Khater are merely accusations, and he is presumed innocent unless and until proven guilty.
khater.information.pdfBurlington County Man Charged with Possessing Explosive DevicesRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man was charged with possessing four destructive devices, U.S. Attorney Philip R. Sellinger announced today.
Jeremy Giliberti, 52, of Mount Laurel, New Jersey, is charged by complaint with one count of possessing destructive devices. He is scheduled to appear this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.
According to documents filed in this case and statements made in court:
On July 26, 2023, Hamilton Township Police Division officers conducted a motor vehicle stop of Giliberti. During a subsequent search of Giliberti’s vehicle, one of the officers found a duffle bag on the front passenger-side floorboard which contained four pipe bombs. Two of the devices were encased in 5-inch steel pipes and two of the devices were encased in cardboard tubing wrapped in duct tape. All four of the devices contained numerous metal pellets, an explosive mixture, and a pyrotechnic fuse.
The possession of a destructive device 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 Special Agent in Charge Bryan Miller; members of the Hamilton Township Police Division, under the direction of Chief Kenneth R. DeBoskey; members of the New Jersey State Police Bomb Unit, under the direction of Col. Patrick J. Callahan; and members of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to this arrest.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office in Trenton.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
giliberti.complaint.pdfBergen County Man Admits Possession with Intent to Distribute HeroinRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted possession of heroin with intent to distribute, U.S. Attorney Philip R. Sellinger announced.
Dawan A. Brown, aka “DB,” 37, of Cliffside Park, New Jersey, pleaded guilty before Judge Brian R. Martinotti in Newark federal court to an information charging him with one count of possession with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin.
According to documents filed in this case and statements made in court:
Brown admitted that on June 14, 2021, he possessed with intent to distribute a controlled substance containing heroin in Harrison, New Jersey. At the time of his arrest, law enforcement officers seized suspected drug proceeds and pieces of jewelry from Brown’s residence. As part of the plea agreement, Brown agreed to forfeit $436,616 – the proceeds from the narcotics trafficking.
The narcotics offense carries a minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a fine of $5 million. Sentencing is scheduled for June 12, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; Harrison Police Department, under the direction of Chief Ronald Cuney; and Cliffside Park Police Department, under the direction of Chief Marc Marano, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Robert L. Frazer of the Organized Crime/Gangs Unit and Assistant U.S. Attorney Dong Joo Lee of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit, in Newark.
brown.information.pdfMembers and Associates of Grape Street Crips Gang Admit Roles in Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – A Newark man admitted his role in a conspiracy to distribute and possess with intent to distribute narcotics, including fentanyl, heroin, and cocaine; and possessing with intent to distribute various narcotics, U.S. Attorney Philip R. Sellinger announced today.
Ali Carney, 45, of Newark, pleaded guilty on Jan. 17, 2024, before U.S. District Judge Susan D. Wigenton in Newark federal court to a superseding information charging him with conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and cocaine; and possession with intent to distribute fentanyl.
According to documents filed in this and other cases and statements made in court:
From April 2021 through October 2022, Carney and others – members and associates of the Grape Street Crips gang – participated in a drug trafficking organization that controlled the drug trade in and around the Oscar Miles Village housing complex in Newark. Carney admitted his role in the conspiracy and that he sold controlled substances on a near daily basis during the conspiracy.
The narcotics conspiracy and distribution counts to which Carney pleaded guilty each carry a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing for Carney is scheduled for May 22, 2024.
All 11 of Carney’s co-defendants – Thomas Barney, Najuwan Blake-Williams, Altray Brown, Najee Carney, Tyrone Cradle, Jaquan McAllister, Ikaim McSwain, Latif Terry, Shaquan Ward, Taji Williams, and Zaid Williams – previously pleaded guilty in connection with their respective roles in the conspiracy.
A year-long investigation revealed that the drug trafficking organization distributed over a kilogram of fentanyl-laced heroin and over 280 grams of crack cocaine. Law enforcement also seized multiple firearms, which were used in furtherance of the narcotics trade, from the members of the conspiracy.
U.S. Attorney Sellinger credited special agents of the U.S. Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Cheryl Ortiz; investigators of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; investigators from the U.S. Marshal Service, under the direction of Marshal Juan Mattos Jr.; investigators of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; and the Newark Police Department, under the direction of Director of Public Safety Fritz G. Fragé, with the investigation leading to the guilty pleas.
The investigation was conducted as part of the Newark Violent Crime Initiative (“VCI”). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Samantha C. Fasanello and Olta Bejleri of the Criminal Division in Newark.
carney.sinformation.pdfIowa Man Sentenced to 94 Months in Prison for Armed Robbery of New Jersey BankRead the Press Release
NEWARK, N.J. – An Iowa man was sentenced today to 94 months in prison for robbing a bank in Secaucus, New Jersey, in January 2017, U.S. Attorney Philip R. Sellinger announced.
Jose Luis Martinez, 33, previously pleaded guilty before U.S. District Judge John M. Vazquez to a two-count indictment charging him with armed bank robbery and brandishing a firearm during a bank robbery. U.S. District Judge William J. Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Jan. 5, 2017, Martinez walked into a bank in Secaucus and pointed a handgun at a bank employee while demanding cash. Martinez told the bank employee that he would shoot her and other customers if the employee did not comply. Martinez took cash from the bank and fled.
In addition to the prison term, Judge Martini sentenced Martinez to three years of supervised release and ordered restitution of $31,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, Newark, with the investigation leading to the sentencing. He also thanked the FBI’s White Plains, New York Office; the New York City Police Department; the Greenwich, Connecticut, Police Department; and the Port Chester, New York, Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Garrett Schuman of the Criminal Division in Newark.
Former Pharmacy President Sentenced to Three Years in Prison for $32 Million Health Care Kickback SchemeRead the Press Release
NEWARK, N.J. – A former president of a pharmacy business was sentenced today to 36 months in prison for his role in a health care kickback conspiracy involving prescriptions for Medicare and TRICARE beneficiaries, Attorney for the United States Vikas Khanna announced today.
Elan Yaish, 54, of Israel, previously pleaded guilty on Aug. 16, 2023, before U.S. District Judge Esther Salas to an information charging him with conspiracy to violate the Federal Anti-Kickback statute. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From September 2017 to around December 2020, Yaish participated in operating pharmacies, including Apogee Bio-Pharm LLC, in Edison, New Jersey. Yaish and others agreed to engage in a scheme to pay marketing companies to direct prescriptions for expensive medications to the pharmacies.
The marketing companies identified Medicare and TRICARE beneficiaries to target for expensive drugs and contacted the beneficiaries by telephone to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, and migraine medication. The marketing companies then transmitted recordings of telephone calls with the beneficiaries, together with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. The marketers paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions. The marketing companies then directed the prescriptions to pharmacies, including Apogee, with which they had kickback arrangements. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare and TRICARE. The pharmacies, including Apogee, then paid a portion of each reimbursement to the marketing companies as a kickback. As a result of the scheme, Yaish and his conspirators caused a loss to Medicare and other federal health care benefit programs of over $32 million.
In addition to the prison term, Judge Salas sentenced Yaish to three years of supervised release and ordered restitution of $32 million.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Brian J. Solecki, 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 and Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit, in Newark.
Willingboro Township Deputy Mayor and Associate Charged with Mortgage Fraud Scheme in Connection with Fraudulent Short SaleRead the Press Release
TRENTON, N.J. – The deputy mayor of Willingboro Township, New Jersey, and one of his business associates were charged with conducting a scheme to discharge the deputy mayor’s mortgage obligation on his property through a fraudulent short sale, U.S. Attorney Philip R. Sellinger announced.
Nathaniel Anderson, 56, a town councilman and the deputy mayor of Willingboro in Burlington County, New Jersey, and his business associate Chrisone D. Anderson, 56, of Sicklerville, New Jersey, are charged by complaint with one count of conspiracy to commit wire fraud affecting a financial institution, one count of bank fraud, and two counts of making false statements on a loan application. Additionally, Chrisone D. Anderson is charged with two counts of making false statements to a federal agent. Nathaniel Anderson and Chrisone D. Anderson made their initial appearances today before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and were released on $50,000 each unsecured bond.
According to documents filed in the case and statements made in court:
From March 2015 through June 2017, Nathaniel Anderson and Chrisone D. Anderson conspired and agreed with one another to orchestrate a fraudulent short sale of a property in Willingboro from Nathaniel Anderson to Chrisone D. Anderson.
As part of the conspiracy to defraud a government sponsored enterprise to discharge a mortgage obligation on Nathaniel Anderson’s property in Willingboro and to induce a mortgage lending business to issue a new mortgage on the property, Chrisone D. Anderson executed – and Nathaniel D. Anderson aided and abetted the execution of – mortgage documents containing materially false representations. These included that the short sale was an arm’s length transaction, that Chrisone D. Anderson did not have a prior business relationship with Nathaniel Anderson, that Nathaniel Anderson would not continue to occupy the property as his residence following the short sale, and that Chrisone D. Anderson would occupy the property as her primary residence.
As a result of the fraudulent short sale, the government sponsored enterprise discharged Nathaniel Anderson’s mortgage obligation and suffered a loss of over $120,000, and the victim lender issued a new mortgage on the property. During a May 2022 interview, Chrisone D. Anderson made false statements to an agent of the FBI concerning the short sale.
The charges of conspiracy to commit wire fraud affecting a financial institution, bank fraud, and making false statements on a loan application are each punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million. The charges of making false statements to a federal agent are each punishable by a maximum potential penalty of five years in prison and a maximum fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; and special agents of the Northeast Region of the Federal Housing Finance Agency, Office of the Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office Criminal Division in Trenton, working in conjunction with the Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
anderson.complaint.pdfTwo Russian Nationals Charged in Separate Indictments with Fraud and Other Offenses Related to Hacking CampaignsRead the Press Release
NEWARK, N.J. – Two indictments were unsealed in the District of New Jersey today charging two Russian nationals – Aleksey Timofeyevich Stroganov and Tim Stigal – with fraud and related offenses in connection with a series of computer intrusions, U.S. Attorney Philip R. Sellinger announced.
According to the indictments:
Stroganov
From at least May 2007 through July 2017, Stroganov – aka “Aleksei Stroganov,” “flint,” “flint24,” “Gursky Oleg,” “Oleg Gurskiy,” and “Строганов Алексей Тимофеевич” – was part of a criminal conspiracy to hack into the computer networks of individuals and companies and steal, among other things, debit and credit card numbers and personal identifying information associated with the cardholders.
Stroganov and his conspirators harvested data associated with hundreds of millions credit card and banking accounts. To profit from the scheme, Stroganov oversaw a network of resellers and vendors, who Stroganov provided with access to databases containing personal identifying information and payment card data for hundreds of thousands of accounts. The vendors then sold that data over the dark net through cybercrime forums and dark net websites. The scheme resulted in losses to financial institutions exceeding $35 million.
Stroganov is charged with one count of conspiracy to commit wire fraud affecting a financial institution, three counts of wire fraud, three counts of bank fraud, and three counts of aggravated identity theft. The substantive and conspiracy charges of wire fraud are punishable by a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greatest. The charges of bank fraud are punishable by a maximum sentence of 30 years in prison and a maximum fine of $1 million. The aggravated identity theft charges carry a mandatory sentence of two years in prison, which must run consecutively to any other term of imprisonment imposed by the court.
Stigal
From April 2014 to March 2016, Stigal, aka “Key” and “Тим Стигал,” was part of four separate conspiracies to traffic in stolen payment card information belonging to the customers of at least three different corporate victims located throughout the United States. In relation to one of the conspiracies, and in an attempt to extort one of the corporate victims, Stigal additionally transmitted a threat to impair the confidentiality of stolen personal data belonging to customers of the corporate victim if a ransom was not paid to Stigal.
Stigal is charged with four counts of wire fraud conspiracy, 12 counts of wire fraud, one count of computer fraud extortion, three counts of access device fraud, and three counts of aggravated identity theft. The substantive and conspiracy charges of wire fraud are punishable by a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greatest. The charge of computer fraud (extortion) is punishable by a maximum of 5 years in prison and a maximum fine of $250,000. The access device fraud charges are punishable by a maximum sentence of 10 years in prison and a maximum fine of $250,000. The aggravated identity theft charges carry a mandatory sentence of two years in prison, which must run consecutively to any other term of imprisonment imposed by the court.
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U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Aaron Hatley, with the investigation leading to the charges against Stroganov and Stigal. He also thanked special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to the charges against Stigal.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore, Chief of the U.S. Attorney’s Cybercrime Unit in Newark, and Assistant Deputy Chiefs William A. Hall Jr. and Adrienne Rose of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
The charges and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
stroganov.indictment.pdf stigal.indictment.pdfRepeat Offender Admits Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Christopher Carvajal, 30, of North Bergen, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
In April 2023, Carvajal’s iPhone was seized at Newark International Airport. A search revealed that Carvajal’s iPhone contained more than 900 video files and more than 400 image files depicting sexual abuse of minors, including infants or toddlers. Carvajal’s iPhone also contained communications in which Carvajal discussed his desire for sexual encounters with young children. Carvajal was previously convicted in the Superior Court of New Jersey, Bergen County, of a child pornography offense.
Possession of child pornography carries a mandatory minimum penalty of 10 years in prison for a defendant with a prior conviction of a child pornography offense, a maximum penalty of 20 years in prison, and a fine of $250,000. Sentencing is scheduled for XX.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Opioid Abuse Prevention and Enforcement Unit in Newark.
carvajal_information.pdfOne Correctional Officer and Two Sergeants Charged with Civil Rights Violation and Conspiracy to Obstruct Justice in Connection with Assault of Pretrial DetaineeRead the Press Release
NEWARK, N.J. – A Passaic County correctional officer and two sergeants were arrested today for allegedly violating a pretrial detainee’s civil rights and conspiracy to obstruct justice, U.S. Attorney Philip R. Sellinger announced.
Sergeants Jose Gonzalez, 45, and Donald Vinales, 38, and Officer Lorenzo Bowden, 39, are charged by complaint with one count of deprivation of rights under color of law and one count of conspiracy to obstruct justice. Bowden is also charged with one count of making false statements. Gonzalez, Vinales and Bowden are scheduled to have their initial appearances this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the criminal complaint:
On Jan. 22, 2021, a pretrial detainee at the Passaic County Jail splashed a mixture containing urine onto a correctional officer. The following day Gonzalez, Vinales and Bowden transported the detainee through an area of the jail that does not have a video surveillance camera, which correctional officers and inmates at the jail have referred to as a “blind spot.” While in that “blind spot,” Gonzalez and Vinales assaulted the detainee, while he was handcuffed. They knocked him to the ground and struck him multiple times. Bowden did not intervene to stop the assault. One day after the assault, the detainee was taken to a local hospital, which documented injuries from the assault.
The defendants all were required to submit documentation regarding their use of force. None of them submitted any such reports.
In April 2022, after receiving federal grand jury subpoenas in connection with this investigation, Gonzalez, Vinales and Bowden, among others, met to discuss the federal investigation. During that meeting, the group agreed not to cooperate with the federal investigation and also agreed to say that nothing had happened to the detainee (referring to the assault). During an interview with federal investigators in October 2022, Bowden falsely stated that the detainee had not been assaulted and that there had not been any meeting or communication among those who participated in or witnessed the assault.
The count of deprivation of rights under color of law is punishable by a maximum of 10 years in prison. The count of count of conspiracy to obstruct justice is punishable by a maximum of 20 years in prison. The count of making false statements is punishable by a maximum of five years in prison.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and the Passaic County Sheriff’s Office Division of Internal Affairs, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the Criminal Division and the Civil Rights Division’s Criminal Civil Rights Task Force in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
gonzalezetal.complaint.pdfNewark Man Admits Carjacking and Firearms OffensesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted carjacking in Montclair, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Andy Cook, 24, of Newark, pleaded guilty before Judge Julien X. Neals to an indictment charging him with one count of carjacking and one count of conspiracy to use a firearm during a crime of violence.
According to the documents filed in this case and statements made in court:
On Dec. 6, 2021, Cook’s accomplice approached the victim, who was inside her car that was parked on her driveway. The accomplice pointed a firearm at the victim and ordered the victim to leave her belongings and exit the car. Cook then entered the car and drove it away. After the victim called the police, law enforcement officers spotted the vehicle. Cook abandoned the vehicle in Newark and fled on foot before being apprehended.
The count of carjacking carries a maximum potential penalty of 15 years in prison and a $250,000 fine. The count of conspiracy to use a firearm during a crime of violence carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 30, 2024.
U.S. Attorney Sellinger credited special agents of the FBI Newark Violent Crimes Task Force, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit.
cook.indictment.pdfInsurance Producer Admits Tax Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country, U.S. Attorney Philip R. Sellinger announced.
Joseph Schwartz, 64, of Suffern, New York, pleaded guilty before U.S. district Judge Susan D. Wigenton in Newark federal court to two counts of an indictment charging him with willfully failing to pay over employment taxes withheld from employees of his company, and willfully failing to file an annual financial report with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored.
U.S. Attorney Philip R. Sellinger“Joseph Schwartz admitted to defrauding the United States by failing to pay over to the IRS more than $38 million in payroll taxes. As an employer, Schwartz was required to withhold trust fund taxes from his employees’ paychecks and then dutifully report and turn those monies over to the IRS. Schwartz broke the law when he willfully withheld trust fund taxes from his employees but pocketed the money he had withheld rather than turning it over to the government; he will now be held accountable for his criminal tax violations.”
“Today’s plea is just one more example of our commitment to investigate and prosecute those who fail to comply with their federal tax obligations,” Tammy Tomlins, IRS – Criminal Investigation Special Agent in Charge of the Newark Field Office, said. “The defendant cheated taxpayers out of more than $38 million by failing to comply with the taxes he was beholden to pay on behalf of his employees. IRS Criminal Investigation will hold accountable individuals who willfully participate in tax fraud schemes.”
“Schwartz admits he willfully failed to pay over employment taxes, basically stealing money from his employees and the IRS,” FBI – Newark Special Agent in Charge James E. Dennehy said. “These taxes are an incredibly important facet of how our government functions, making up a significant portion of revenues brought in by the Treasury Department. Other fraudsters currently committing the same fraud should pay attention to the lesson Schwartz learned the hard way – don't cheat the taxman.”
According to documents filed in this case and statements made in court:
From Oct. 31, 2017, through May 30, 2018, Schwartz was the owner of Skyline Management Group LLC and related entities with headquarters in New Jersey. Schwartz admitted that he was required to collect, truthfully account for and pay over to the IRS on behalf of employees of Skyline Management Group the trust fund taxes imposed on their employees by the Internal Revenue Service but failed to do so. The total amount of taxes was $38.9 million.
Schwartz admitted he was also an administrator of the Skyline 401K plan and had an obligation to file an annual Form 5500 financial report with the secretary of Labor for calendar year 2018, but knowingly and willfully failed to file the report.
The employment tax fraud count is punishable by a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The failure to file a Form 5500 related to the retirement plan count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for May 22, 2024.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; investigators with the Department of Labor-Employee Benefits Security Administration, under the direction of Regional Director Thomas Licetti in the New York Regional Office; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kendall Randolph of the Criminal Division in Newark and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.
schwartz.indictment.pdfBronx, New York Man, Admits Role in Distributing Heroin and Fentanyl from Two Drug Mills in the Bronx, Causing the Death of 15-Month-Old ChildRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted distributing heroin and fentanyl into New Jersey from two drug mills in the Bronx, which resulted in the death of a 15-month-old child, U.S. Attorney Philip R. Sellinger announced.
Jhan Carlos Capellan Maldonado, 35, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a superseding information charging him with one count of distributing heroin and fentanyl from a drug mill in the Bronx in December 2018. Capellan Maldonado admitted that his distribution of fentanyl caused the death of a 15-month-old child.
Capellan Maldonado also pleaded guilty to one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl from a separate drug mill in the Bronx in February 2019. Six other individuals – Reimon Genao Rosario, 27; Dilson Vazquez Genao, 27; Eddie Urena Rodriguez, 39; Francisco Mercedes Gil, 35; Daury Contreras Ulerio, aka “Majimbou,” 38; and Jose Antonio Vazquez Pena, aka “Tono,” 51 – also of the Bronx, all have previously pleaded guilty to the same charge before Judge Salas.
U.S. Attorney Philip R. Sellinger“The defendant admitted organizing and running a drug distribution operation that prepared and packaged deadly fentanyl and heroin for sale in New Jersey. The defendant’s drug mill directly led to the death of a toddler who was present inside the apartment where this poison was being prepared for distribution. This defendant will now face justice for his role in leading this drug trafficking organization and for causing the death of this 15-month-old child. The fentanyl epidemic has caused enormous pain and suffering to our communities, including the death of the child in this case. This office is committed to combatting this scourge and holding accountable those who traffic in this poison.”
“The unimaginable tragedy caused by the actions of Jhan Carlos Capellan Maldonado is hard for anyone to fathom,” Homeland Security Investigations - Newark Acting Special Agent in Charge Michael Alfonso said. “The death of a toddler from fentanyl poisoning is heart-breaking and serves as a horrific reminder about the dangers illegal narcotics pose to our communities. HSI and our law enforcement partners remain dedicated to disrupting and dismantling drug trafficking organizations that seek profit at the cost of American lives.”
According to documents filed in this case and statements made in court:
On Dec. 27, 2018, Capellan Maldonado was operating a drug mill at an apartment in the Bronx where he employed four individuals to store, mix, and package heroin and fentanyl in quantities for distribution into New Jersey. Capellan Maldonado admitted that while the group was preparing the heroin and fentanyl, a 15-month-old child present in the apartment ingested some of the fentanyl and died as a result. The four other individuals have been charged with homicide by the District Attorney’s Office in the Bronx.
In early February 2019, law enforcement officers learned that Capellan Maldonado was again using an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, and all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
Capellan Maldonado faces a maximum penalty of 20 years in prison and a $1 million fine on Count One of the superseding information. He faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine on Count Two of the superseding information. Sentencing is scheduled for June 24, 2024.
U.S. Attorney Sellinger credited special agents of HSI Newark, under the direction of Acting Special Agent in Charge Alfonso, and special agents of the Drug Enforcement Administration, New York Division, under the direction of Special Agent in Charge Frank Tarentino, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason S. Gould, Chief of the Health Care Fraud Unit in Newark.
maldonado.sinformation.pdfNew York Man Admits Illegally Possessing Cocaine and FentanylRead the Press Release
NEWARK, N.J. – A New York man today admitted illegally possessing cocaine and fentanyl for distribution, U.S. Attorney Philip R. Sellinger announced.
Isidro Fernandez, 35, New York, pleaded guilty to before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of possession with intent to distribute controlled substances.
According to documents filed in this case and statements made in court:
On Feb. 26, 2021, law enforcement officers recovered a total of over 5 kilograms of cocaine and over 3 kilograms of fentanyl from a Passaic County residence occupied by Fernandez and from a vehicle that was seen leaving the residence. Fernandez admitted possessing the controlled substances with the intent to distribute.
The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. Sentencing is scheduled for May 2, 2024.
U.S. Attorney Sellinger credited the New York Drug Enforcement Task Force, which comprises special agents and task force officers of the Drug Enforcement Administration, New York City Police Department, and New York State Police, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the Opioid Abuse Prevention and Enforcement Unit in Newark.
fernandez.information.pdfNew Jersey Hospital and Investors to Pay the United States $30.6 Million for Alleged False Claims Related to Excessive Cost Outlier PaymentsRead the Press Release
Columbus LTACH, doing business as Silver Lake Hospital (Silver Lake), a long-term care hospital based in Newark, New Jersey, has agreed to pay over $18.6 million, plus interest, to resolve alleged False Claims Act violations for claiming excessive cost outlier payments from the Medicare program. In addition, certain Silver Lake investors have agreed to pay $12 million, plus interest, to resolve alleged Federal Debt Collection Procedures Act (FDCPA) violations for the fraudulent transfer of money by the hospital to its investors. The settlement amounts will be paid over a five year period, and the Silver Lake payment was negotiated based on the hospital’s lack of ability to pay.
In addition to its standard payment system, Medicare provides supplemental reimbursement to hospitals called “cost outlier” payments in cases where the cost of care is unusually high. Congress enacted the supplemental outlier payment system to ensure that hospitals possess the incentive to treat inpatients whose care may be unusually expensive. These cost outlier payments are made based on a formula set forth in the relevant regulations that attempt to adjust a hospital’s charges to the hospital’s costs by multiplying the hospital’s current charges by the hospital’s cost-to-charge ratios derived from the hospital’s previously submitted cost reports. Because the previously submitted cost reports may not reflect the hospital’s current cost to charge ratios, the Medicare program also provides for a retrospective reconciliation process, whereby after the hospital’s cost-to-charge ratio for the applicable time period is finalized, the hospital may be required to pay back excessive outlier payments that it received. This settlement resolves allegations that Silver Lake improperly distorted the cost outlier payment system by rapidly increasing its charges well in excess of any increase in its costs and far beyond what the hospital had the financial ability to repay once its Medicare cost reports were reconciled to account for these charge increases.
The settlement also resolves allegations that Silver Lake transferred millions of dollars in the hospital’s money to its investors without receiving equivalent value in return, at a time when the hospital had reason to believe that it would not be able to repay its debts to the Medicare program. The United States alleged that such conduct violated the FDCPA.
According to the settlement agreement with the United States, the payments made to resolve the United States’ FDCPA allegations will be made by Dr. Richard Lipsky, Silver Lake’s principal investor, and Columbus Management South LLC, an entity through which other Silver Lake investors received cash distributions from the hospital.
“Cost-outlier payments were intended to ensure that hospitals would provide care to all patients requiring their services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “These payments were not intended to serve as a private source of enrichment for hospitals unrelated to the actual costs incurred in providing such care.”
“Medicare serves to ensure that patients get necessary care, including when that care is very expensive,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Medicare is not there for hospitals and their investors to gain unwarranted financial windfalls. As alleged, this hospital falsely reported its costs to Medicare for years and reaped millions in unjustified payments. Along with our partners, this office is committed to protecting the Medicare system from all forms of fraud schemes.”
“This settlement underscores the FBI's commitment to investigating fraudulent activity in the health care industry,” said Assistant Director Michael Nordwall of the FBI's Criminal Investigative Division. “The FBI and our law enforcement partners will continue to investigate hospitals who deceptively bill federal health care programs and prioritize investor enrichment at the expense of taxpayers.”
“When a hospital submits false information to seek higher reimbursements, it can affect the availability of funds and services for others and drive up the cost of taxpayer-funded health care,” stated Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to ensure that health care providers are held accountable if they attempt to exploit federal health care programs.”
This settlement was the result of a coordinated effort by the Justice Department's Civil Division, U.S. Attorney’s Office for the District of New Jersey, HHS-OIG's Office of General Counsel and the FBI.
The matter was handled by Trial Attorney Daniel Spiro of the Civil Division's Fraud Section and Assistant U.S. Attorney Paul Kaufman for the District of New Jersey.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
SettlementNew Jersey Hospital and Investors to Pay United States $30.6 Million for Alleged False ClaimsRead the Press Release
NEWARK, N.J. – A New Jersey hospital and certain of its investors have agreed to pay $30.6 million to resolve alleged False Claims Act and Federal Debt Collection Procedures Act violations, U.S. Attorney Philip R. Sellinger announced today.
Columbus LTACH d/b/a Silver Lake Hospital (Silver Lake), a long-term care hospital based in Newark, has agreed to pay over $18.6 million, plus interest, to resolve alleged False Claims Act violations for claiming excessive cost outlier payments from the Medicare program. Certain Silver Lake investors have agreed to pay $12 million, plus interest, to resolve alleged Federal Debt Collection Procedures Act (FDCPA) violations for the fraudulent transfer of money by the hospital to its investors. The settlement amounts will be paid over a five-year period; the Silver Lake payment was negotiated based on the hospital’s lack of ability to pay.
U.S. Attorney Philip R. Sellinger“Medicare serves to ensure that patients get necessary care, including when that care is very expensive. Medicare is not there for hospitals and their investors to gain unwarranted financial windfalls. As alleged, this hospital falsely reported its costs to Medicare for years and reaped millions in unjustified payments. Along with our partners, this Office is committed to protecting the Medicare system from all forms of fraud schemes.”
“Cost-outlier payments were intended to ensure that hospitals would provide care to all patients requiring their services,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “These payments were not intended to serve as a private source of enrichment for hospitals unrelated to the actual costs incurred in providing such care.”
“The Medicare outlier payment program is designed to provide hospitals with reimbursement for situations where extraordinarily costly patient care is needed,” FBI-Newark Special Agent in Charge James E. Dennehy said. “Instead of using the outlier payment program as intended, Silver Lake was caught fraudulently obtaining enhanced reimbursements from Medicare they were not entitled. Whatever magic trick or sleight of hand hospitals attempt to use to perpetrate fraud, the FBI and our law enforcement partners will diligently investigate and recover any ill-gotten gains.”
“When a hospital submits false information to seek higher reimbursements, it can affect the availability of funds and services for others and drive up the cost of taxpayer-funded health care,” Special Agent in Charge Naomi Gruchacz for the Department of Health and Human Services Office of Inspector General (HHS-OIG) said. “HHS-OIG will continue to work with our law enforcement partners to ensure that health care providers are held accountable if they attempt to exploit federal health care programs.”
In addition to its standard payment system, Medicare provides supplemental reimbursement to hospitals – called “cost outlier” payments – in cases where the cost of care is unusually high. Congress enacted the supplemental outlier payment system to ensure that hospitals possess the incentive to treat inpatients whose care may be unusually expensive. These cost outlier payments are made based on a formula set forth in the relevant regulations that attempt to adjust a hospital’s charges to the hospital’s costs by multiplying the hospital’s current charges by the hospital’s cost-to-charge ratios derived from the hospital’s previously submitted cost reports. Because the previously submitted cost reports may not reflect the hospital’s current cost-to-charge ratios, the Medicare program also provides for a retrospective reconciliation process, whereby after the hospital’s cost-to-charge ratio for the applicable time period is finalized, the hospital may be required to pay back excessive outlier payments that it received.
This settlement resolves allegations that Silver Lake improperly distorted the cost outlier payment system by rapidly increasing its charges well in excess of any increase in its costs and far beyond what the hospital had the financial ability to repay once its Medicare cost reports were reconciled to account for these charge increases.
The settlement also resolves allegations that Silver Lake transferred millions of dollars in the hospital’s money to its investors without receiving equivalent value in return, at a time when the hospital had reason to believe that it would not be able to repay its debts to the Medicare program. The United States alleged that such conduct violated the FDCPA.
According to the settlement agreement, the payments made to resolve the United States’ FDCPA allegations will be made by Dr. Richard Lipsky, Silver Lake’s principal investor, and Columbus Management South LLC, an entity through which other Silver Lake investors received cash distributions from the hospital.
This settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the District of New Jersey; the Civil Division of the U.S. Department of Justice; the Department of Health and Human Services, Office of Counsel to the Inspector General, Office of Investigations, and Office of General Counsel; and the FBI.
The government is represented by Assistant U.S. Attorney Paul Kaufman for the District of New Jersey and Civil Fraud Section attorney Daniel Spiro.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
silverlake.settlementagreement.pdfHudson County Man Charged with Possession and Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was charged with possessing and distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Brandon Tyler Mooney, 26, of Bayonne, New Jersey, is charged by complaint with one count of possession and one count of distribution of child pornography. Mooney was arrested on Jan. 11, 2024, made his initial appearance today 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:
From as early as June 2023, Mooney exchanged child pornography with another individual by way of a cloud-based instant messaging platform. On Dec. 19, 2023, Mooney sent multiple images and videos, including content that appears to involve sexual images of children under the age of 12, to an undercover law enforcement official. Law enforcement officials found in Mooney’s possession over 600 images that appear to depict child sexual abuse.
The charge of possession of child pornography carries a maximum penalty of 20 years in prison and a $250,000 fine. The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Sellinger credited the Newark Child Exploitation and Human Trafficking Task force, under the direction of FBI Special Agent in Charge James E. Dennehy in Newark, the Bayonne Police Department, under the direction of Chief of Police Robert Geisler, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Robert Taj Moore of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
mooney.complaint.pdfPassaic County Man Charged with Embezzling $2.9 Million from Elderly CoupleRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was arrested today in connection with his role in embezzling approximately $2.9 million from an elderly couple, U.S. Attorney Philip R. Sellinger announced today.
Charles Gallo, 34, of Hawthorne, New Jersey is charged by complaint with one count of wire fraud. He appeared today before U.S. Magistrate Judge José R. Almonte and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In 2018 an elderly New Jersey couple hired Gallo to work as a part-time personal assistant at their residence. Gallo’s duties included managing the victims’ monthly bills and banking and assisting them with email and other computer/technology-related issues. From March 2022 through March 2023, Gallo, used his position to engage in a fraudulent scheme to misappropriate approximately $2.9 million from the victims’ accounts. Gallo accomplished this fraud by routinely using the victims’ ATM card to withdraw large amounts of money, opening a line of credit, cashing checks made payable to himself drawn on the victims’ bank accounts, and using the victims’ credit cards to purchase computer equipment, gaming systems, collectible items from online retailers, and other unauthorized transactions.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Christopher A. Nielsen, Philadelphia Division; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; and the Hawthorne Police Department, under the direction of Chief James Knepper, with the investigation leading to the charge. He also thanked the Ridgewood Police Department under the direction of Chief Forest R. Lyons for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
gallo.complaint.pdfNew York Man Indicted for Stealing COVID-19 Unemployment BenefitsRead the Press Release
NEWARK N.J. – A New York man was indicted today for conspiring to illegally obtain over $444,000 in COVID-19 unemployment benefits, U.S. Attorney Philip R. Sellinger announced.
Jose Tavares, 35, of Bronx New York, is charged by indictment with one count of conspiracy to commit wire fraud. Tavares’ alleged conspirators, Yanira Abreu, 42, of Keasby, New Jersey, and Christopher Valerio, 33, of Perth Amboy, New Jersey, have each previously pleaded guilty in the same scheme.
According to documents filed in this case and statements made in court:
From July 2020 through February 2021, Tavares, 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, Tavares and his conspirators obtained debit cards with illegally obtained funds totaling $444,738, which they used for personal gain.
The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso; 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, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The charge and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
tavares.indictment.pdfEleven Members and Associates of Marion Gardens Jersey City Gang Indicted for Racketeering for Roles in Three Murders, Drug Trafficking Activities, and Other CrimesRead the Press Release
NEWARK, N.J. – Eleven members of the Jersey City gang associated with the Marion Gardens Housing Complex were indicted today for their roles in a violent racketeering conspiracy and a drug trafficking conspiracy, U.S. Attorney Philip R. Sellinger announced.
The indictment charges Myron Williams, aka “Money,” aka “Tunchi,” 30, of Newark; Khalil Kelley, aka “Billski,” 24, of Jersey City; Herbert Thomas, 48, of Jersey City; Roger Pickett, aka “Zy Gz,” 23, of Jersey City; Andre Alomar, aka “Dre8,” 22, of Newark; Anthony Rogers, aka “MG,” 23, of Jersey City; Naim Richardson, aka “Ninicks,” 30, of Jersey City; Quaseame Wilson, aka “Qua Gz,” 27, of Jersey City; Javon Williams, aka “J45,” 26, of Jersey City; Jawaad Davis, 21, of Jersey City; and Keith Anderson, aka “Beef3,” 21, of Jersey City.
U.S. Attorney Philip R. Sellinger“These charges are the most recent example of this office’s commitment to stopping violent crime in Jersey City and elsewhere in New Jersey. As we continue to demonstrate, we are tirelessly committed to working with our federal, state and local partners to bring to justice those who wreak havoc in our communities by allegedly committing senseless acts of violence. We commend the work of the Hudson County Prosecutor’s Office’s Gang Intelligence Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives.”
“The Hudson County Prosecutor’s Office is committed to utilizing all resources necessary to curb violent crime within our jurisdiction,” Hudson County Prosecutor Esther Suarez said. “These indictments underscore the importance of working collaboratively with law enforcement at all levels to ensure our communities are safe for everyone. We appreciate our local, state, and federal partners for their efforts in seeing that justice is served in these matters.”
“Acts of gang violence are a grim reminder of why investigating and combatting violent crime is a top priority for ATF and our law enforcement partners,” Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Bryan Miller said. “These charges demonstrate our continued commitment to protecting the public, and that alleged actions like this will not be tolerated. We are dedicated to working with our local and state partners to hold violent offenders accountable and secure the safety of our communities.”
According to documents filed in this case and statements made in court:
Myron Williams, Kelley, Pickett, Alomar, Rogers, Richardson, Wilson, Javon Williams, Davis, and Anderson are all members and associates of the neighborhood street gang associated with the Marion Gardens Housing Complex. Since 2020, they have committed numerous acts of violence, including three separate murders, on March 29, 2021, Nov. 20, 2021, and Nov. 1, 2022.
On March 29, 2021, Kelley, Alomar, and other gang members lured a rival gang member outside by sending him Instagram messages pretending to be the victim’s fellow gang member. When the victim opened the door to his residence, Kelley and Alomar brandished firearms and Kelley shot the victim multiple times in the chest, killing him. Pickett and another gang member then picked up Kelley, Alomar, and the driver of the murder vehicle after they abandoned the murder vehicle in Newark.
On Nov. 20, 2021, Myron Williams, Pickett, and other gang members lured a rival gang member outside by sending him Instagram messages pretending to be the second victim’s fellow gang member. Myron Williams and another gang member shot the victim when he opened the door to his residence.
On Nov. 21, 2022, Davis facilitated the murder of the third victim by coordinating a narcotics transaction with the victim and an associate of the victim. When the victim and his associate arrived at the Marion Gardens Housing Complex to complete the narcotics transaction, Davis robbed the victim’s narcotics supply while Pickett and Wilson held the victim and his associate at gunpoint. After a struggle ensued, Pickett shot and killed the victim while his associate fled. Pickett and Wilson then fled the Marion Gardens Housing Complex in Pickett’s vehicle.
Investigators observed and documented hundreds of narcotics transactions in and around the Marion Gardens Housing Complex during the months-long investigation.
The investigation revealed that Thomas was the primary supplier of narcotics to the Marion Gardens drug trafficking organization. When Thomas, Myron Williams, Richardson, and Rogers, were arrested on March 17, 2023, they all possessed controlled substances packaged for distribution; Thomas also possessed a loaded firearm and both Myron Williams and Richardson possessed ammunition.
In June 2021, eight other members and associates of the Marion Gardens neighborhood street gang were indicted on racketeering charges, violent crimes in aid of racketeering, drug trafficking, and firearms offenses.
U.S. Attorney Sellinger credited investigators of the Gang Intelligence Unit of the Major Case Division of Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez and Chief of Detectives James A. Parker, and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller, with the investigation leading to the charges. He also thanked investigators of the Jersey City Police Department, under the direction of Director James Shea, for their assistance.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Desiree Grace, Deputy Chief of the Criminal Division in Newark.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Count
Defendant
Offense
Maximum Penalties
1
Myron Williams
Roger Pickett
Khalil Kelley
Quaseame Wilson
Javon Williams
Naim Richardson
Andre Alomar
Jawaad Davis
Anthony Rogers
Keith Anderson
RICO Conspiracy
Life imprisonment;
$250,000 fine
2
Roger Pickett
Quaseame Wilson
Jawaad Davis
Hobbs Act Robbery
20 years’ imprisonment;
$250,000 fine
3
Roger Pickett
Quaseame Wilson
Jawaad Davis
Discharging a Firearm During and in Relation to a Crime of Violence
Life imprisonment;
10-year mandatory minimum;
$250,000 fine
4
Roger Pickett
Quaseame Wilson
Jawaad Davis
Causing Death with Use of a Firearm
Life imprisonment;
$250,000 fine
5
Myron Williams
Roger Pickett
Khalil Kelley
Quaseame Wilson
Javon Williams
Naim Richardson
Andre Alomar
Jawaad Davis
Anthony Rogers
Keith Anderson
Herbert Thomas
Drug Conspiracy
Life imprisonment;
10-year mandatory minimum;
$10 million fine
6
Myron Williams
Unlawful Possession of Ammunition
15 years’ imprisonment;
$250,000 fine
7
Myron Williams
Possession with Intent to Distribute Controlled Substances
20 years’ imprisonment;
$1 million fine
8
Herbert Thomas
Unlawful Possession of a Firearm and Ammunition
15 years’ imprisonment;
$250,000 fine
9
Herbert Thomas
Possession with Intent to Distribute Controlled Substances
20 years’ imprisonment;
$1 million fine
10
Herbert Thomas
Possession of a Firearm in Furtherance of Drug Trafficking
Life imprisonment;
5-year mandatory minimum;
$250,000 fine
11
Naim Richardson
Unlawful Possession of Ammunition
15 years’ imprisonment;
$250,000 fine
12
Naim Richardson
Possession with Intent to Distribute Controlled Substances
20 years’ imprisonment;
$1,000,000 fine
24-014
mariongardens.sincidtment.pdfRepeat Offender Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man was sentenced today to 120 months in prison for possessing multiple images and videos of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
John Schulenburg, 68, of Basking Ridge, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to a superseding information charging him with possession of child pornography. U.S. District Judge Brian R. Martinotti imposed the sentence today in Newark federal court. Schulenburg was previously convicted of endangering the welfare of a child/possession of child pornography in Somerset County in 2013. For a repeat offender, the charge of possession of child pornography carries a mandatory minimum term of 10 years in prison.
According to documents filed in this case and statements made in court:
In July 2019, an undercover law enforcement officer conducted an online session using a publicly available peer-to-peer program, which allows internet users to trade digital files. During this session, a user shared multiple files featuring images of child sexual abuse from an internet address traced to Schulenburg’s residence. On Nov. 6, 2019, law enforcement lawfully obtained a computer from Schulenburg’s residence that contained hundreds of images and videos of child sexual abuse, including images of prepubescent children.
In addition to the prison term, Judge Martinotti sentenced Schulenburg to five years of supervised release and ordered to pay $58,000 in restitution.
U.S. Attorney Sellinger credited special agents with the Newark Child Exploitation and Human Trafficking Task Force, under the direction of FBI Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the Somerset County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Passaic County Man Admits Embezzling Funds from Bookkeeping ClientsRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted his role in embezzling funds from clients of his bookkeeping business, U.S. Attorney Philip R. Sellinger announced today.
Richard Winter, 53, of Pompton Lakes, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of wire fraud and one count tax evasion.
According to documents filed in this case and statements made in court:
From January 2016 through December 2019, Winter, while serving as a bookkeeper for various companies, devised a scheme to fraudulently misappropriate hundreds of thousands of dollars from his clients. Winter accomplished this fraud by authorizing bank wire transfers from the victim companies, diverting vendor payments to his own bank accounts through an online payment portal, and issuing checks payable to “cash” from the victim companies and depositing those checks into his bank accounts. Winter failed to file tax returns reporting the income he received from his fraud for tax years 2016 through 2019.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The tax evasion charge carries a maximum potential penalty of five years in prison and a $100,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 9, 2024.
U.S. Attorney Sellinger credited U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to the today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
winter.information.pdfNew Jersey Laboratory and Owner/CEO Agree to Pay $13 Million to Settle Allegations of Kickbacks and Unnecessary TestingRead the Press Release
NEWARK, N.J. – A clinical laboratory and its owner and chief executive officer have agreed to pay $13.25 million to resolve False Claims Act allegations involving illegal kickbacks and medically unnecessary laboratory testing, U.S. Attorney Philip R. Sellinger announced today.
RDx Bioscience Inc. (RDx), of Kenilworth, New Jersey, and its owner and chief executive officer, Eric Leykin, of Brooklyn, New York, agreed to pay the United States $10.32 million and will pay an additional $2.93 million to the state of New Jersey. RDx and Leykin have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.
U.S. Attorney Philip R. Sellinger“Kickbacks have no place in our healthcare system. Patients need to trust that health care referrals are made in their best interests, not in the interests of lining someone else’s pockets. We have pursued and will continue to pursue laboratories that enter into unlawful financial arrangements that waste taxpayer dollars and improperly influence healthcare providers.”
“Regardless of how they are disguised, kickbacks for laboratory referrals are illegal and can corrupt medical providers’ decision making and subject patients to expensive and unnecessary testing,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable individuals and entities who participate in kickback schemes that harm taxpayers and threaten the integrity of federal healthcare programs.”
“This settlement demonstrates our commitment to ensuring that health care providers are not permitted to induce referrals, thereby causing unnecessary medically testing,” Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG), said. “The defendants in this case disguised payments, which is a violation of the Anti-Kickback Statute.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. Claims that are knowingly submitted in violation of the Anti-Kickback Statute are ineligible for payment and can violate the False Claims Act.
The settlement announced today resolves allegations concerning five types of kickbacks paid to induce referrals to RDx for laboratory testing:
- From 2018 to 2022, RDx and Leykin allegedly paid commissions based on the volume and value of Medicare and Medicaid referrals to independent contractor marketers to arrange for and recommend that healthcare providers order RDx laboratory tests.
- From 2018 to 2022, RDx marketer Corum Group LLC allegedly paid healthcare providers thousands of dollars in purported management services organization (MSO) payments, which were disguised as investment returns but actually were offered to induce the providers to order RDx laboratory tests.
- From 2017 to 2023, RDx marketers BeauMed Consultants LLC and Ralston Health Group Inc. allegedly paid thousands of dollars to healthcare providers that were disguised as consulting or medical director fees but were actually offered to induce orders, among other things, for RDx laboratory tests.
- From 2019 to 2020, RDx marketer Seaworthy Recovery Services Inc. allegedly paid thousands of dollars in kickbacks to one or more principals of certain substance abuse recovery centers to induce their referrals to RDx for laboratory testing.
- RDx and Leykin allegedly paid specimen collection fees to the staff members of referring healthcare providers to induce those providers to order RDx laboratory testing.
The settlement resolves allegations that RDx and Leykin billed or caused Medicare and Medicaid to be billed for the tests despite paying or knowing of these kickbacks.
In addition, from 2017 to 2023, RDx and Leykin allegedly submitted or caused false claims to be submitted to Medicare and Medicaid for laboratory tests that were not reasonable and necessary; not covered because they were identical orders of urine drug testing panels for all patients within a clinician’s practice without individualized decision-making; or not covered because they were improperly duplicative of other claims for urine drug testing for the same date of service, the same patient, and the same drugs.
The settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG.
The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
rdx.settlement.pdfNew Jersey Laboratory and Its Owner and CEO Agree to Pay over $13 Million to Settle Allegations of Kickbacks and Unnecessary TestingRead the Press Release
Clinical laboratory RDx Bioscience Inc. (RDx), of Kenilworth, New Jersey, and its owner and Chief Executive Officer Eric Leykin, of Brooklyn, New York, have agreed to pay to the United States $10,315,023 to resolve False Claims Act allegations involving illegal kickbacks and medically unnecessary laboratory testing. RDx and Leykin will pay an additional $2,934,977 to the State of New Jersey, which jointly funded claims paid by the New Jersey Medicaid program. RDx and Leykin have agreed to cooperate with the Justice Department’s investigations of, and litigation against, other participants in the alleged schemes.
“Regardless of how they are disguised, kickbacks for laboratory referrals are illegal and can corrupt medical providers’ decision making and subject patients to expensive and unnecessary testing,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable individuals and entities who participate in kickback schemes that harm taxpayers and threaten the integrity of federal healthcare programs.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. Claims that are knowingly submitted in violation of the Anti-Kickback Statute are ineligible for payment and can violate the False Claims Act.
The settlement announced today resolves allegations concerning five types of kickbacks paid to induce referrals to RDx for laboratory testing. First, from 2018 to 2022, RDx and Leykin allegedly paid commissions based on the volume and value of Medicare and Medicaid referrals to independent contractor marketers to arrange for and recommend that healthcare providers order RDx laboratory tests. Second, from 2018 to 2022, RDx marketer Corum Group LLC allegedly paid healthcare providers thousands of dollars in purported management services organization (MSO) payments, which were disguised as investment returns but actually were offered to induce the providers to order RDx laboratory tests. Third, from 2017 to 2023, RDx marketers BeauMed Consultants LLC and Ralston Health Group Inc. allegedly paid thousands of dollars to healthcare providers that were disguised as consulting or medical director fees but were actually offered to induce orders, among other things, for RDx laboratory tests. Fourth, from 2019 to 2020, RDx marketer Seaworthy Recovery Services Inc. allegedly paid thousands of dollars in kickbacks to one or more principals of certain substance abuse recovery centers to induce their referrals to RDx for laboratory testing. Fifth, RDx and Leykin allegedly paid specimen collection fees to the staff members of referring healthcare providers to induce those providers to order RDx laboratory testing. The settlement resolves allegations that RDx and Leykin billed or caused Medicare and Medicaid to be billed for the tests despite paying or knowing of these kickbacks.
In addition, from 2017 to 2023, RDx and Leykin allegedly submitted or caused false claims to be submitted to Medicare and Medicaid for laboratory tests that were not reasonable and necessary; not covered because they were identical orders of urine drug testing panels for all patients within a clinician’s practice without individualized decision-making; or not covered because they were improperly duplicative of other claims for urine drug testing for the same date of service, the same patient, and the same drugs.
“Kickbacks have no place in our healthcare system,” said U.S. Attorney Phillip R. Sellinger for the District of New Jersey. “Patients need to trust that health care referrals are made in their best interests, not in the interests of lining someone else’s pockets. We have pursued and will continue to pursue laboratories that enter into unlawful financial arrangements that waste taxpayer dollars and improperly influence healthcare providers.”
“This settlement demonstrates our commitment to ensuring that health care providers are not permitted to induce referrals, thereby causing unnecessary medically testing,” said Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “The defendants in this case disguised payments, which is a violation of the Anti-Kickback Statute.”
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG.
Senior Trial Counsel Christopher Terranova of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Kruti Dharia for the District of New Jersey handled the settlement.
The United States has recovered over $46 million relating to conduct involving MSO kickbacks to healthcare providers, including False Claims Act settlements with 43 physicians, three laboratories, five medical practices, three healthcare executives and one office manager.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
SettlementHudson County Man Admits Possessing Child Pornography and Committing Naturalization FraudRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted possessing images of child sexual abuse and committing naturalization fraud, U.S. Attorney Philip R. Sellinger announced.
Ramy Mercado, 29, of Jersey City, New Jersey, pleaded guilty before Judge Claire C. Cecchi to an information charging him with one count of possession of child pornography and one count of naturalization fraud.
According to documents filed in this case and statements made in court:
From June 2022 to October 2022, Mercado used his cell phone to transmit more than 20 video files depicting the sexual abuse of minors, including infants or toddlers. Mercado also used his cell phone to communicate his desire for sexual encounters with young children.
During this time, Mercado applied for and obtained U.S. citizenship and stated under penalty of perjury that since his citizenship interview, he had not committed any crime or offense for which he had not been arrested. In fact, Mercado had illegally possessed child pornography. Mercado became a naturalized U.S. citizen on June 22, 2023.
The count of possession of child pornography carries a maximum penalty of 20 years in prison, and a fine of $250,000. The count of naturalization fraud carries a maximum penalty of 10 years in prison, and a fine of $250,000. Sentencing is scheduled for May 22, 2024.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Opioid Abuse Prevention and Enforcement Unit in Newark.
mercado.information_0.pdfEssex County Man Sentenced to 20 Months in Prison for Conspiring to Commit Mortgage FraudRead the Press Release
NEWARK, N.J. – An Essex County man was sentenced today to time already served – 20 months – for conspiring to commit mortgage fraud, U.S. Attorney Philip R. Sellinger announced.
Cabral Simpson, 47, of Orange, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to Count One of an indictment charging him with conspiring to commit wire fraud. U.S. District Judge Julien X. Neals imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Simpson, a real estate investor, and his conspirators engaged in mortgage fraud by creating fake bank statements and fake employee verification records for buyers of properties and transferring money into the buyers’ bank accounts for payment of the deposit for a property. Simpson and his conspirators submitted fraudulent mortgage loan applications, supporting documents, and closing documents on behalf of the buyers. They also induced lenders to issue more than $1 million in loans, resulting in defaults and exposing the lenders and the U.S. Department of Housing and Urban Development to more than $1 million in losses.
In addition to the prison term, Judge Neals sentenced Simpson to two years of supervised release and ordered restitution of $1.29 million.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Housing and Urban Development – Office of the Inspector General, under the direction of Special Agent in Charge Janine Rocheleau in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Canadian National Charged with Distribution and Importation of FentanylRead the Press Release
NEWARK, N.J. – A Canadian national was charged today with distribution and importation of fentanyl to the United States, U.S. Attorney Philip R. Sellinger announced.
Michael C. Wozney, 38, of Etobicoke, Ontario, Canada is charged by a 14-count indictment with seven counts of distribution of and possession with intent to distribute a controlled substance and seven counts of importation of a controlled substance into the United States.
According to documents filed in this case and statements made in court:
From June 2019 through September 2020, Wozney was a vendor of fentanyl on the dark net – a part of the internet not accessible by most internet browsers and designed to allow users to conduct transactions anonymously. Wozney sold fentanyl on multiple dark net marketplaces, including Empire Market, where Wozney completed hundreds of transactions. Wozney shipped fentanyl to individuals in the United States, including individuals in New Jersey.
Wozney advertised the sale of numerous fentanyl products, including substances that he described as “close to pure” and “DANGEROUS LEVEL.” Wozney shipped his customers’ fentanyl orders in a manner that was designed to evade detection and seizure by border officials and other law enforcement authorities. In instances where law enforcement officials seized shipments, Wozney reshipped those orders and alerted customers that he was modifying his mailing practices to evade detection.
Each count of the indictment carries a maximum penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the charges. He also thanked the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielson, Philadelphia Division, and FBI- Pittsburgh Division, under Acting Special Agent in Charge Michael Shanahan for their assistance.
The government is represented by Assistant U.S. Attorney Vinay S. Limbachia of the U.S. Attorney’s Cybercrime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
wozney.indictment.pdfTwo New Jersey Men Sentenced to Prison for Roles in Multimillion-Dollar Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – Two New Jersey brothers have been sentenced to prison for their roles in a scheme to defraud public and private health benefits programs, U.S. Attorney Philip R. Sellinger announced today.
John Cuffari, 61, of Cedar Grove, New Jersey, was sentenced to 17 months in prison for his role in defrauding benefits programs of at least $5.3 million for the billing of medically unnecessary compounded prescriptions. He previously pleaded guilty to an information charging him with conspiracy to commit health care fraud. U.S. District Judge Renee Bumb imposed the sentence on Jan. 4, 2023, in Camden federal court.
Christopher Cuffari, 57, of Little Falls, New Jersey, was sentenced to 27 months in prison for his role in defrauding benefits programs of $7.89 million for the billing of medically unnecessary compounded prescriptions. He previously pleaded guilty to an information charging him with conspiracy to commit health care fraud. U.S. District Judge Peter Sheridan imposed the sentence on Jan. 3, 2024, in Trenton federal court.
U.S. Attorney Philip R. Sellinger“By their own admission, these defendants bilked publicly and privately funded insurance plans of millions of dollars in fraudulent reimbursements for compounded medications. Working with our partners, we will prosecute those who take advantage of our health care system to generate illicit income.”
“This investigation is only one example of how the belief that these cases have no victims is not true,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Fraud creates tougher regulations and policies from government agencies and insurance companies to prevent it from taking place. That trickles down to patients who have a much harder time getting the healthcare they may desperately need. The Cuffari brothers are just a small cog in a tremendously frustrating wheel of criminals, but we won't be deterred from bringing every one of them to justice.”
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription.
Between November 2014 and July 2016, John Cuffari participated in a conspiracy that involved the submission of fraudulent prescriptions for compounded medications to public and private insurance plans. Christopher Cuffari participated in the conspiracy between November 2014 and September 2017. The scheme centered on the discovery that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates.
John and Christopher Cuffari worked as sales representatives for several marketing companies and compounding pharmacies and targeted individuals who had insurance plans that covered compounded medications. They then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. In order to obtain prescriptions for compounded medications for some of the recruited individuals, the defendants caused payments to be made to a New Jersey-based physician.
In addition to the prison terms, both defendants were sentenced 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 to the sentencings.
The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.
Essex County Man Admits Illegally Possessing Firearm and Cocaine, Heroin, and FentanylRead the Press Release
CAMDEN, N.J. – An Essex County, New Jersey, man today admitted illegally possessing fentanyl, heroin, and cocaine for distribution and possessing a firearm as a convicted felon and in furtherance of drug trafficking, U.S. Attorney Philip R. Sellinger announced.
Taurean Gordon, 40, of Irvington, New Jersey, pleaded guilty before U.S. Circuit Judge Stephanos Bibas in Camden federal court to a superseding information charging him with one count of being a previously convicted felon in possession of a firearm and ammunition, one count of possession with intent to distribute controlled substances, and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
Gordon admitted that on Feb. 11, 2021, he possessed heroin, fentanyl and cocaine packaged for distribution with the intent to distribute. Gordon, a previously convicted felon, possessed a North American Arms Inc. revolver loaded with five rounds of ammunition.
The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. The count of being a felon in possession of a firearm and ammunition carries a maximum potential penalty of 10 years in prison. The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed, and a maximum potential penalty of life in prison. Each firearm count carries a maximum fine of $250,000. Sentencing is scheduled for May 8, 2024.
U.S. Attorney Sellinger credited officers of the Newark Police Division under the direction of Director Fritz Fragé and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys DeNae Thomas of the Health Care Fraud Unit and George Barchini of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit.
gordon.sinformation.pdf