District of New Jersey

NEWARK, N.J. – A dual U.S. and Greek national was charged for a multimillion-dollar bank fraud conspiracy, U.S. Attorney Philip R. Sellinger announced today.

Dino Koutsogiannis, 57, of Fairview, New Jersey, is charged by complaint with one count of conspiracy to commit bank fraud. Koutsogiannis made his initial appearance on March 4, 2024, before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was detained.

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

From July 2022 to July 2023, Koutsogiannis and others conspired to defraud multiple financial institutions by conducting a “bust-out” debit card conspiracy. As part of the scheme, Koustogiannis and his conspirators would create shell companies and open bank accounts in those companies’ names. Koustogiannis and the conspirators would then fund those accounts with nominal funds. Then, after a few months with no activity, Koutsogiannis and the conspirators would fund the accounts via transfers from external sources, including accounts controlled by Koustogiannis and the conspirators. Several weeks later, Koutsogiannis and the conspirators would make very large debit purchases over the course of several days from those accounts, causing those accounts to accrue significantly negative balances, frequently in the amount of hundreds of thousands of dollars.

After the bust-out was complete and the accounts were left in significant negative balances, the victim financial institutions would then close the accounts. But Koutsogiannis and his conspirators would nevertheless continue executing the scheme with bank accounts at other financial institutions. Koustigannis and the conspirators executed this scheme numerous times at six victim financial institutions between July 2022 and July 2023, causing those institutions approximately $2.8 million in losses.

The charge carries a maximum penalty of 30 years and a fine of up to $1 million.

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 Springfield Police Department, the Teaneck Police Department, and the New Jersey State Police.

The government is represented by Assistant U.S. Attorney Chana Y. Zuckier of the General 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.

 

koutsogiannis.complaint.pdf

NEWARK, N.J. – A federal grand jury returned an indictment charging two brothers with conspiring to distribute and possessing with intent to distribute 49 kilograms of cocaine, U.S. Attorney Philip R. Sellinger announced today.

Nelson Santos Munoz, 30, and his brother, Amauris Santos Munoz, 31, both of Miami, Florida, are charged by indictment with one count of conspiracy to distribute and possess with intent to distribute cocaine and one count of possession with intent to distribute cocaine. The Santos Brothers appeared on March 5, 2024, before U.S. District Judge Zahid N. Quraishi in Trenton federal court. They were charged by criminal complaint in May 2023. 

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

On Jan. 26, 2023, law enforcement stopped a vehicle in Woodbridge, New Jersey, with three individuals, including the Santos brothers. During a search of the vehicle, law enforcement discovered approximately 49 kilograms of suspected cocaine, individually wrapped in packages with cellphone/plastic wrap in several suitcases and a backpack. A review of cell phone communications revealed that the Santos brothers traveled to the Dominican Republic and conspired to purchase cocaine and transport it to the United States for distribution. After importing the cocaine into the United States, the Santos brothers traveled from Florida to New Jersey with the intent to distribute the cocaine.

Each count carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life imprisonment, and a maximum fine of $10 million.

U.S. Attorney Sellinger credited members of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz, New Jersey Division, with the investigation leading to the charges. He also thanked the Woodbridge Police Department for its  assistance.

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

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

 

santosmunoz.indictment.pdf

TRENTON, N.J. – A Florida man admitted his role in a durable medical equipment kickback scheme, U.S. Attorney Philip R. Sellinger announced today.

Steve Chicoye, 55, of Orlando, Florida, pleaded guilty on Feb. 29, 2024, before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit health care fraud.

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

Chicoye and his conspirators solicited and received kickbacks and bribes in exchange for providing durable medical equipment (DME) companies with completed doctors’ orders for medically unnecessary DME, such as orthotic braces. Chicoye and his conspirators utilized the service of telemedicine companies to obtain these prescriptions for DME, and the DME orders were subsequently fraudulently billed to Medicare and other health care benefit programs.

Chicoye and his conspirators were paid approximately $2.1 million in kickbacks for these DME orders and caused losses to Medicare and other health care benefit programs of at least $3.6 million.

The charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest.  Sentencing is scheduled for Aug. 6, 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 Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney DeNae Thomas of the Health Care Fraud Unit in Newark.

 

chicoye.information.pdf

NEWARK, N.J. – Five Passaic County, New Jersey, residents were charged with the armed robbery of a residence in Saddle Brook, New Jersey, U.S. Attorney Philip R. Sellinger announced today.

Jamere Dixon, aka “Rebels,” 23; Jahad Foxworth, aka “Hadie,” 25; Tyra Jones, 24; Jancarlos Rodriguez, aka “M’s,” 23; and Lanasia Smith, aka “Lay,” 24, all of Paterson, New Jersey, are charged by complaint with one count of conspiracy to commit Hobbs Act robbery and one count of conspiracy to use and carry a firearm during and in relation to a crime of violence. The defendants appeared on Feb. 28, 2024, before U.S. Magistrate Judge André M. Espinosa in Newark federal court. Dixon, Foxworth, and Rodriguez were detained. Jones and Smith were each released on $100,000 unsecured bond.

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

In the early morning hours of June 28, 2022, Foxworth, Rodriguez, and Dixon entered a residence in Saddle Brook and held two victims at gunpoint. The three defendants stole money, credit cards, and suspected controlled substances, among other items. Prior to the robbery, Smith was a guest at the residence and provided Foxworth, Rodriguez, and Dixon with access to the home by leaving the front door unlocked. The investigation revealed that hours before the robbery Smith sent to Rodriguez a picture of a safe located in the residence. After the robbery, the suspects fled in a vehicle driven by Jones. Rodriguez, Jones, and Smith were later seen on surveillance footage attempting to use the stolen credit cards at gas stations and a convenience store in Paterson.

The conspiracy to commit Hobbs Act robbery and conspiracy to use and carry a firearm during and in relation to a crime of violence counts each carry a maximum potential penalty of 20 years in prison, a fine of up to $250,000, or twice the gain or loss from the offense, whichever is greatest.

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 Passaic County Sheriff’s Office, under the direction of Acting Sheriff Gary Giardina; the Bergen County Prosecutor’s Office, under the direction of Acting Chief Matthew Finck, the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the Saddle Brook Police Department, under the direction of Officer in Charge Captain John A. Zotollo Jr.; and with the investigation leading to the charges.

This case is part of the Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Passaic County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.

The government is represented by Assistant U.S. Attorneys Jake A. Nasar of the Organized Crime and Gangs Unit and Farhana C. Melo of the OCDETF/Narcotics Unit in Newark.

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

 

rodriguezetal.complaint.pdf

TRENTON, N.J. – A Bucks County, Pennsylvania, man made his initial appearance on charges of producing videos and images depicting child sexual abuse and coercing and enticing a minor to engage in criminal sexual conduct, U.S. Attorney Philip R. Sellinger announced today.

Gregory J. Barger, 38, of Morrisville, Pennsylvania, was indicted on Feb. 15, 2024, on one count of sexual exploitation of a child – production of child pornography – and one count of coercion and enticement – online enticement of a minor. Barger had previously been charged by criminal complaint with the production offense. Barger was arraigned on Feb. 28, 2024, before U.S. District Judge Michael A. Shipp in Trenton federal court and was detained pending trial.

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

From Aug. 5, 2020, through April 7, 2022, Barger – a previously convicted, registered sex offender – used an electronic messaging application to communicate with a minor victim located in the United Kingdom. He induced, enticed, and coerced the minor victim to engage in sexual conduct with Barger. In February 2022, Barger traveled to the United Kingdom and produced images and videos of Barger engaged in sexual conduct with the minor victim. Law enforcement later recovered those images and videos from Barger’s cellular phone, which was seized from Barger at the time of his arrest on April 7, 2022, in Hamilton, New Jersey. 

Because of Barger’s prior conviction, the charge of production of child pornography carries a mandatory minimum penalty of 25 years in prison and a maximum potential penalty of 50 years in prison, as well as a $250,000 fine. The charge of online enticement of a minor carries a mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison, as well as a $250,000 fine.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, and members of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, 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.

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

 

barger.indictment.pdf

United States Attorney Susan Lehr announced that Shawn David Johnson, 40, of Omaha, Nebraska, was sentenced February 28, 2024, in federal court in Omaha for being a felon in possession of a firearm. United States District Court Judge Brian C. Buescher sentenced Johnson to 18 months’ imprisonment. There is no parole in the federal system. After Johnson’s release from prison, he will begin a 2-year term of supervised release.

On February 1, 2022, a cooperating witness working with law enforcement purchased a 9mm handgun with a 6-round capacity magazine from Johnson inside of his Omaha residence. At the time, Johnson was a convicted felon. Law enforcement has since determined that the handgun had been shipped in interstate commerce prior to the transaction.

This case was investigated by the Bureau of Alcohol, Tobacco and Firearms.

 

NEWARK, N.J. – The shadow chief executive officer of National Realty Investment Advisors LLC (NRIA) today admitted orchestrating a scheme to defraud more than 2,000 investors in a $658 million Ponzi scheme and conspiring to evade millions of dollars in tax liabilities, U.S. Attorney Philip R. Sellinger announced.

Thomas Nicholas Salzano, aka “Nicholas Salzano,” 65, of Secaucus, New Jersey, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to securities fraud, conspiracy to commit wire fraud, and conspiracy to defraud the United States. Salzano admitted he made numerous misrepresentations to investors while he secretly ran NRIA behind the scenes. He also admitted to misappropriating millions of dollars from investors to enrich himself and his family and friends. 

“For years, Salzano told lie after lie to investors, continuously deceived them, and operated his business as a Ponzi scheme, through which he stole money from thousands of investors. His greed and flagrant disregard for the law caused staggering losses in excess of $650 million. This office will continue to prioritize prosecuting individuals, like Salzano, to ensure that those who engage in rampant fraud are punished with long jail sentences and are ordered to make their victims whole.”

U.S. Attorney Philip R. Sellinger

“Many people who decide to invest have to put a lot of faith in so-called financial experts, hoping their money grows and doesn’t one day disappear,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Salzano admits he played a role in a scam that cost investors $658 million. History has shown over and over and over again, Ponzi schemes don't ever pay out, yet criminals keep trying to beat the system. FBI Newark and our law enforcement partners are doing all we can to help the victims in this case. We want others who may have faced a similar situation to contact us so we can help you as well.”

“Salzano not only victimized thousands of investors, but he also defrauded honest taxpayers by concealing his income from the IRS and evading his tax liability to the tune of millions of dollars,” IRS – Criminal Investigation Special Agent in Charge Harry T. Chavis Jr., Boston Field Office, said. “Today’s guilty plea by Salzano demonstrates how IRS – Criminal Investigation will continue to use their financial expertise to identify and investigate these types of investor fraud schemes with our law enforcement partners.”

As part of his plea agreement, Salzano has agreed to a prison term of eight to 12 years, a forfeiture money judgment in the amount of $8.52 million, and he has agreed to pay full restitution of $507.4 million to the victims of his offenses.

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

From February 2018 through January 2022, Salzano and others defrauded investors and potential investors of NRIA Partners Portfolio Fund I LLC (the “Fund”), a real estate fund operated by NRIA, of $650 million through lies, deception, misleading statements, and material omissions. These included the financial position of NRIA, the manner in which the defendants and their conspirators used Fund investor money, and Salzano’s managerial role at NRIA and his history of fraud.

The defendants executed their scheme through an aggressive multiyear, nationwide marketing campaign that involved thousands of emails to investors; advertisements on billboards, television, and radio; and meetings and presentations to investors. Salzano led and directed the marketing campaign, which employed deception, material misrepresentations and omissions, and falsified documents to manipulate investors, which were intended to mislead Fund investors into believing that NRIA was a solvent business that generated significant profits. In reality, NRIA generated little to no profits and operated as a Ponzi scheme, which was kept afloat by new investors. Despite investing almost none of their own capital into the business, the defendants misappropriated millions of dollars of investor money to support their lavish lifestyles, including expensive dinners, extravagant birthday parties, and payments to family and associates who did not work at NRIA.

Salzano concealed his true managerial role at NRIA in an effort to avoid scrutiny from investors of Salzano’s history of fraud at a large telecommunications company. In addition to defrauding investors, Salzano orchestrated a separate conspiracy to obstruct, impede, and impair the IRS in its effort to collect millions of dollars in outstanding taxes Salzano owed to the U.S. Treasury by, among other things, lying to the IRS, using a web of nominees, opening bank accounts in the names of phony entities, and using false and fraudulent company documents. 

Conspiring to defraud the United States carries a maximum penalty of five years in prison and a $250,000 fine. The securities fraud count and the wire fraud conspiracy count are both punishable by a maximum penalty of 20 years in prison and a $250,000 fine. Pursuant to the terms of his plea agreement, the maximum prison term that can be imposed on Salzano is 12 years. Sentencing is scheduled for Aug. 6, 2024.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Chavis in Boston; and special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark, with the investigation, with assistance from FBI Headquarters Criminal Investigative Division and the Department of Justice Tax Division.

The government is represented by Assistant U.S. Attorneys Jonathan Fayer, Lauren E. Repole, and John Mezzanotte, all of the U.S. Attorney’s Office’s Criminal Division, with assistance from Trial Attorney Samuel B. Bean of the U.S. Department of Justice, Tax Division.

 

salzano.indictment.pdf

NEWARK, N.J. – An India- and New Jersey-based man who operated jewelry companies in New York City’s Diamond District was charged with spearheading a scheme to illegally evade customs duties for millions of dollars of jewelry imports into the United States and with illegally processing millions of dollars through unlicensed money transmitting businesses, U.S. Attorney Philip R. Sellinger announced today.

Monishkumar Kirankumar Doshi Shah, aka “Monish Doshi Shah,” 39, of Mumbai, India, and Jersey City, New Jersey, was charged by complaint with one count of conspiracy to commit wire fraud and one count of operating and aiding and abetting the operation of an unlicensed money transmitting business. He was arrested over the weekend and appeared appear on Feb. 26, 2024, before U.S. Magistrate Judge André M. Espinosa in Newark federal court. Shah was released on $100,000 bond, with home detention and location monitoring.

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

From January 2015 through September 2023, Shah engaged in a scheme to evade duties for shipments of jewelry from Turkey and India to the United States. Shah would ship or instruct his conspirators to ship goods from Turkey or India – which would have been subject to an approximately 5.5 percent duty if shipped directly to the United States – to one of Shah’s companies in South Korea. Shah’s conspirators in South Korea would change the labels on the jewelry to state that they were from South Korea instead of Turkey or India, and then ship them to Shah or his customers in the United States, thereby unlawfully evading the duty. Shah would also make and instruct his customers to make fake invoices and packing lists to make it look like Shah’s South Korean companies were actually ordering jewelry from Turkey or India. During the scheme, Shah shipped millions of dollars of jewelry from South Korea to the United States.

From July 2020 through November 2021, Shah operated numerous purported jewelry companies in New York City’s Diamond District, including MKore LLC (MKore), MKore USA Inc. (MKore USA), and Vruman Corp. (Vruman). Shah used these entities to conduct millions of dollars in illegal financial transactions for customers – including converting cash to checks or wire transfers. Shah would also collect cash from customers and use conspirators’ jewelry companies, which were also located in the Diamond District, to convert the cash into wires or checks. At times, Shah and his conspirators moved more than a million dollars of cash in a single day. In exchange for their services, Shah and his conspirators charged a fee. None of Shah’s or his conspirators’ companies were registered as money transmitting businesses with New York, New Jersey, or the Financial Crimes Enforcement Network (FinCEN).

The wire fraud conspiracy charge is punishable by a maximum of 20 years in prison. The charge of operating and aiding and abetting the operation of an illegal money transmitting business carries a maximum penalty of five years in prison. Each count is also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; special agents with Homeland Security Investigations New York, under the direction of Acting Special Agent in Charge Erin Keegan; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso; and officers with U.S. Customs and Border Protection at the Port of New York/Newark, under the direction of Port Director TenaVel Thomas, with the investigation leading to the charges. He also thanked U.S. Customs and Border Protection in New York; Homeland Security Investigations in Seoul, South Korea; the Korea Customs Service in South Korea; the Seoul Customs Special Investigation Office in South Korea; the U.S. Drug Enforcement Administration in Paterson; the Parsippany-Troy Hills Police Department; the Morristown Police Department; the Federal Deposit Insurance Corporation – Office of Inspector General; and the Justice Department’s Money Laundering and Asset Recovery Section (MLARS) for their assistance in the investigation.

The government is represented by Assistant U.S. Attorneys Marko Pesce and Olta Bejleri of the Economic Crimes Unit in Newark, with assistance from William Kanellis of the Department of Justice Trade Fraud Task Force.

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

 

shah.complaint.pdf

NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted to tax evasion, to helping her clients file falsified tax returns that generated larger refunds, and to filing false declarations on quarterly tax returns for her tax return preparation business, U.S. Attorney Philip R. Sellinger announced.

Joshlyn Raye, 49, of Elmwood Park, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging her with one count of aiding and assisting in the preparation of a false and fraudulent tax return; one count of tax evasion; and one count of filing a false declaration under penalty of perjury concerning a quarterly tax return on behalf of her tax return business.

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

From March 2010 to September 2023, Raye was the owner of JB Tax Services, a tax return preparation business in Hackensack, New Jersey. She knowingly and willfully evaded her personal income taxes over three of those years; filed 50 false tax returns on behalf of her clients; and filed three false quarterly employment tax returns on behalf of her tax return preparation business. Raye used fabricated and inflated figures, including expenses and itemized deductions.

The counts of aiding or assisting in the preparation of a false income tax return and filing a false declaration under penalty of perjury each carry a maximum penalty of three years in prison and a $250,000 fine. The count of tax evasion carries a maximum penalty of five years in prison and a $250,000 fine. As part of her plea agreement, Raye has agreed to pay the government restitution of $676,168, and to file amended tax returns. Sentencing is scheduled for Aug. 6, 2024. 

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 guilty plea.

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

 

NEWARK, N.J. – A California man was arraigned today on charges relating to his role in a fraud and kickback scheme that caused more than $10 million in losses to Medicare, Attorney for the United States Vikas Khanna announced.

Adam Wayne Owens, 43, of Riverside, California, is charged in a superseding indictment with one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to violate the federal Anti-Kickback Statute. Owens appeared today before U.S. District Judge Michael E. Farbiarz in Newark and was released on a $500,000 unsecured bond. 

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

From November 2018 to January 2020, Owens participated in a kickback and bribery scheme with testing companies and telemedicine providers, resulting in the submission of false and fraudulent claims to Medicare. Owens owned and controlled marketing companies in California through which he and his conspirators identified Medicare beneficiaries to target for at-home cancer genetic tests (CGX). Owens and his conspirators used a variety of methods to obtain personal and medical information from the Medicare beneficiaries, including making unsolicited telephone calls to elderly cancer patients. Owens and his conspirators then caused CGX testing kits to be sent to the beneficiaries regardless of whether they needed or wanted them. Once the CGX tests were completed and returned, Owens’ conspirators submitted claims for reimbursement to Medicare. In exchange for Owens’ role in the conspiracy, his companies received kickback payments ranging from $1,700 to $2,000 for each CGX test resulting in Medicare reimbursement.

To conceal the scheme, the testing companies wired various kickback payments to a shell company in New Zealand, which then wired the payments to bank accounts controlled by Owens in the United States. To further conceal the scheme, Owens entered into a sham contract with the New Zealand shell company which made it appear that one of Owens’ marketing companies was engaged in and being paid for legitimate marketing and referral services. Owens then generated invoices falsely purporting that the marketing company was providing hourly referral services for the New Zealand shell company. Instead, Owens received payments from the New Zealand shell company based solely on the number of CGX tests that Medicare reimbursed.      

Owens and his conspirators caused a loss to Medicare of more than $10 million.

Conspiracy to commit health care fraud and wire fraud is punishable by a maximum potential penalty of 20 years in prison. Conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison. Each count is also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.

Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Brian J. Solecki; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Garrett J. Schuman of the Health Care Fraud Unit and Senior Trial Counsel Barbara A. Ward of the Asset Recovery and Money Laundering Unit.

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

 

owens.sindictment.pdf

NEWARK, N.J. – A Bronx, New York, man admitted his role in a kickback conspiracy involving COVID-19 testing, U.S. Attorney Philip R. Sellinger announced today.

David Weathers, 61, of Bronx, New York, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court on Feb. 26, 2024, to an indictment charging him with conspiring to violate the Anti-Kickback Statute by soliciting kickbacks for the referral of COVID-19 test samples.

“The defendant in this case has admitted to seeking payments for sending COVID-19 tests to a particular lab for processing. There is no place in our health care system for illegal payments made in attempt to influence medical decisions. My office will continue to prosecute those who attempt to corrupt the health care system.”

U.S. Attorney Philip R. Sellinger

“It took fraudsters no time at all to hunt for a get rich quick scheme when the pandemic started,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Weathers and his conspirators set their eyes on the federal government and the funding made available under the CARES Act. He now admits to asking a lab in New Jersey for kickbacks when he provided COVID-19 test samples, which were ultimately paid for by federal funding. Anyone who believes they will get away with their crimes as time passes should take note of this case, you will be brought to justice.”

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

Weathers and his conspirators solicited kickbacks in exchange for providing COVID-19 test samples to Metpath Laboratories, a clinical laboratory located in Parsippany, New Jersey, that, among other things, conducted testing to detect the presence of COVID-19 in samples obtained from individual patients. Metpath paid kickbacks for the referrals of COVID-19 test samples and subsequently billed Medicare and other health care benefit programs for the tests, causing a loss of more than $3.5 million to federal programs.

The charge of conspiracy to violate the Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest.  Sentencing is scheduled for July 10, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney DeNae Thomas of the Health Care Fraud Unit in Newark.

 

weathers.indictment.pdf

NEWARK, N.J. – A Bergen County, New Jersey, man who collected millions of dollars in fees from victims seeking funding for their commercial projects that he misappropriated in part for his personal benefit while failing to secure the promised financing was indicted, U.S. Attorney Philip R. Sellinger announced today.

Jeffrey Kahn, 55, of Ridgewood, New Jersey, is charged with six counts of wire fraud and one count of money laundering. Kahn was previously charged by complaint with two counts of wire fraud for the same scheme in November 2021.  

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

From March 2018 through March 2020, Kahn devised a plan to defraud multiple victims of millions of dollars that were paid at Kahn’s direction to various accounts – including bank accounts in the name of Kahn’s financial advisory firm, Kahn Advisors, LLC – and characterized by Kahn as insurance premium payments, advance fees or taxes, in exchange for a promise of financing, including through an individual and a lender. To induce victims to pay money to Kahn, Kahn misrepresented to certain victims that he had conducted multiple successful financial transactions through the individual and the lender. Kahn continued to vouch for the individual, even after Kahn received information that there was a strong likelihood that the individual, who claimed to have an office in Teaneck, New Jersey, but who is instead believed to reside abroad and to have used an alias in his dealings with Kahn – was not a legitimate lender.  Kahn also caused others to make misrepresentations to certain victims regarding their purported successful financing deals with Kahn and/or the individual. In reality, Kahn never obtained any financing from the individual or the lender for the victims.

Kahn further misrepresented to certain victims that the money they sent to Kahn and  Kahn Advisors would continue to be held upon receipt until the victims provided their consent to the release of the funds. Instead, Kahn caused the victims’ funds to be transferred to other accounts, including bank accounts that Kahn controlled, without the victims’ prior consent, and then used portions of those amounts to pay for Kahn’s personal expenses and to pay back other victims.

As a result of the scheme, Kahn caused the victims to transfer more than $5 million in funds to accounts controlled by Kahn or provided to Kahn by the individual. Kahn misappropriated approximately $800,000 of those funds for his own personal benefit, and used an additional portion of those funds – approximately $447,000 – to pay back other victims of the scheme.

Each wire fraud count is punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. The count of money laundering carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Jennifer S. Kozar 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.

 

kahn.indictment.pdf

NEWARK, N.J. – A former corrections officer at Bayside State Prison in Leesburg, New Jersey, today admitted to depriving two inmates of their civil rights by failing to intervene when the inmates were being assaulted and suffered bodily injury, U.S. Attorney Philip R. Sellinger announced.

Joshua Hand, 34, of Millville, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with depriving two inmates of their right not to be subjected to cruel and unusual punishment.

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

In December 2019, while working as a corrections officer, Hand was inside the officers’ quarters within the kitchen area of Bayside State Prison when the first victim was summoned to that room. Shortly after that victim entered the officer’s quarters, the exit door was blocked and in the presence of Hand, the victim was assaulted simultaneously by several inmates and taken down to the floor. Hand watched and did not attempt to intervene when multiple inmates pinned and restrained the victim on the floor while other inmates delivered multiple punches and other blows to the victim’s torso, arms, and legs. Hand did not report this assault to his supervisors or medical personnel despite knowing that he was required to do so. 

Later that day, a second victim was in the officers’ quarters at the prison with Hand and another corrections officer. Without provocation, the other corrections officer struck the second victim in the legs multiple times with a broomstick. During the assault of second victim, Hand remained within arm’s reach of the assault and had a reasonable opportunity to intervene but did not attempt to do so. Once again, Hand did not report this assault to his supervisors or medical personnel. 

Violating the civil rights of others carries a maximum sentence of 10 years in prison and a maximum potential fine of the greater of $250,000, twice the gross amount of pecuniary gain that any person derived from the offense, or twice the gross amount of pecuniary loss that any person suffered from the offense, whichever is greatest. Sentencing is scheduled for July 2, 2024.

U.S. Attorney Sellinger credited special agents of the FBI Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation. He also thanked the New Jersey Department of Corrections, under the direction of Commissioner Victoria Kuhn, for its assistance in the investigation.

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

 

hand.information.pdf

NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang admitted to his role in a racketeering conspiracy and to possessing firearms and ammunition as a convicted felon, U.S. Attorney Philip R. Sellinger announced today.

Amir Warden, aka “Stamps,” aka “Killa,” 31, pleaded guilty on Feb. 22, 2024, before U.S. District Judge Susan D. Wigenton in Newark federal court to two counts of a superseding information that charged him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and possession of firearms and ammunition by a convicted felon.

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

From 2015 through Sept. 22, 2022, Warden was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere. Warden held a leadership role within the enterprise and conspired with other members and associates to distribute controlled substances. On Aug. 19, 2019, he distributed heroin. On Sept. 29, 2022, Warden, a convicted felon, knowingly possessed three loaded firearms, three high-capacity drum magazines, and approximately 1,300 rounds of assorted ammunition.

Warden faces a maximum sentence of 20 years in prison and a fine of up to $250,000 on the racketeering conspiracy and a maximum sentence of 15 years in prison and a fine of up to $250,000 on the firearms charge. Sentencing is scheduled for June 25, 2024.

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, under the direction of Acting 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, with the investigation leading to the guilty plea. He also thanked investigators of the U.S. Marshals Service, under the direction of Marshal Juan Mattos; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II;, the Newark Police Department, under the direction of Public Safety Director Fritz Fragé; the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the East Orange Police Department, under the direction of Chief Phyllis L. Bindi; the Elizabeth Police Department, under the direction of Police Director Earl J. Graves; the Edison Police Department, under the direction of Chief of Police Tom Bryan; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; the Spotswood Police Department, under the direction of Chief Philip Corbisiero; and the North Carolina State Bureau of Investigation Fugitive and Missing Person Task Force.

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 Unit.

 

warden.sinformation.pdf

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced to 210 months in prison for his role in a conspiracy to distribute and possess with intent to distribute over one kilogram of heroin, U.S. Attorney Philip R. Selling announced today.

Furad Loyal, 42, of Newark, was convicted at trial on May 9, 2023, before U.S. District Judge Susan D. Wigenton on three counts of the indictment against him: conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin, possession with intent to distribute heroin, and being a felon in possession of a firearm. He was acquitted on one count of possession of a firearm in furtherance of a drug trafficking crime. Judge Wigenton imposed the sentence on Feb. 21, 2024, in Newark federal court.

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

Loyal was a heroin supplier and a member of a drug trafficking organization (DTO) that operated in and around Hayes Street and 14th Avenue in the area of the New Community Corporation community development (NCC) in Newark. In addition to selling narcotics in and around NCC, the members shared narcotics supply, narcotics proceeds, and customers. On Nov. 21, 2017, Loyal was found inside the apartment of an NCC resident where he was stashing his heroin, his firearm, and over $11,000 in cash.

From March to August 2018, Loyal and 27 other members of the DTO were charged by criminal complaint with conspiracy to distribute heroin and cocaine base; Loyal also was charged with firearms offenses. The other 27 defendants have all since pleaded guilty to crimes in connection with their roles in the DTO.

In addition to the prison term, Judge Wigenton sentenced Loyal to five years of supervised release.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and members of the Newark Department of Public Safety, under the direction of Director Fritz Fragé, with the investigation leading to the sentencing. He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, New Jersey State Parole, and the U.S. Marshals for their assistance.

This case is part of the original Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is comprised of the U.S. Attorney’s Office, the FBI, the ATF, the DEA’s 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 Elaine K. Lou and Christopher D. Amore of the U.S. Attorney’s Office’s Criminal Division in Newark.

NEWARK, N.J. – A doctor in Ramsey, New Jersey, has agreed to pay nearly $700,000 to resolve allegations that he and his practice violated the False Claims Act, U.S. Attorney Philip R. Sellinger announced today.

Arun Sehgal and his medical practice, Preventive & Diagnostic Medical Center P.A., have agreed to pay $693,490 plus interest to resolve allegations that they violated the False Claims Act by upcoding physician services, billing for more services than they could possibly provide in one day, and billing for services that Sehgal never provided. Sehgal is the former medical director at the New Jersey Veterans Memorial Home in Paramus, New Jersey.

The settlement announced today resolves three sets of allegations from Jan. 1, 2017, to June 1, 2022:

• The defendants regularly upcoded certain Current Procedural Terminology (CPT) codes typically used to report more complex services, or services longer in duration, relating to the evaluation and management of patients. Upcoding is alleged fraudulent medical billing in which a claim is submitted for payment regarding a service that is more expensive than the service that was performed.

• The defendants knowingly submitted claims to Medicare for services that Sehgal did not provide to patients by regularly billing for impossible days. An impossible day occurs when a physician purports to provide such a high volume of services or procedures in one day that there is no way the physician reasonably could have performed them all. For example, on March 2, 2018, the time associated with CPT codes billed by the defendants for services that Sehgal provided exceeded 43 hours.

• Sehgal allegedly purported to provide services to Medicaid beneficiaries in New Jersey on days when Sehgal was not physically in the United States.

The government is represented by Assistant U.S. Attorney Robert L. Toll of the U.S. Attorney’s Office, District of New Jersey’s Opioid Abuse Prevention and Enforcement Unit, and Trial Attorney Daniel Meyler of the Department of Justice’s Civil Division Fraud Section, with assistance from HHS-OIG.

The government’s pursuit of this matter illustrates its efforts to combat healthcare fraud. One of the strongest tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).

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

 

sehgal.settlement.pdf

CAMDEN, N.J. – A Philadelphia man today admitted causing a minor victim to create and send him sexually explicit images and videos and sending the victim obscene images of himself, U.S. Attorney Philip R. Sellinger announced.

Francisco Andres-Medina, 33, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb in Camden federal court to two counts of an indictment charging him with receipt of child pornography and transfer of obscene material to a minor.

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

In March and April 2020, Medina communicated over the internet with a 15-year-old victim located in Camden County, New Jersey. After learning that his victim was 15 years old, Medina sent her obscene photographs of his exposed penis. Medina also caused the victim to produce videos and images of the victim engaged in sexually explicit conduct. Medina then caused the victim to send him the sexually explicit images and videos. Medina also directed the victim to send him a video of the victim having sex with another individual. 

The count of receiving child pornography is punishable by a mandatory minimum penalty of five years in prison and a maximum of 20 years in prison. The count of transferring obscene material to a minor is punishable by a maximum of 10 years in prison. Each count carries a fine of up to $250,000. Sentencing is scheduled for June 26, 2024.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, and the Camden County Prosecutor’s Office High Tech Crimes and Special Victims Units, under the direction of Prosecutor Grace C. MacAulay, with the investigation leading to today’s guilty plea.

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

 

andresmedina.indictment.pdf

NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 33 months in prison for his role in fraudulently obtaining over $2.1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced.

Arlen G. Encarnacion, 38, of Perth Amboy, New Jersey, previously pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to a two-count information charging him with conspiracy to commit wire fraud and money laundering.

On Aug. 8, 2023, Jacquelyn Pena, 38, and Kent Encarnacion, 30, both of Perth Amboy, also separately pleaded guilty before Judge Castner to informations charging each of them with conspiracy to commit wire fraud and money laundering and were each sentenced to probation.

“This defendant fraudulently obtained funds earmarked for struggling Americans who needed financial relief during the COVID 19 pandemic. Today’s sentence demonstrates that those who used the pandemic to illegally enrich themselves will be held accountable. My office will continue to bring to justice individuals who have engaged in COVID-related fraud.” 

U.S. Attorney Philip R. Sellinger

“Brazen schemes have callously defrauded COVID-19 relief programs and caused undue financial harm to both hardworking Americans and businesses alike,” Christopher A. Nielsen, Inspector in Charge, U.S. Postal Inspection Service, Philadelphia Division, said. “Today’s sentencing illustrates that Postal Inspectors will continue its efforts to identify and hold accountable, those individuals who steal pandemic funds to fulfill their own greed.” 

“IRS Criminal Investigation and our law enforcement partners are committed to investigating and prosecuting those who engage in acts of COVID-related fraud,” said Tammy Tomlins, Special Agent in Charge of Newark Field Office. “Today, Mr. Encarnacion was held accountable for fraudulently obtaining over $2.1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL). His conscious decision to participate in this illicit scheme has cost him his freedom.”

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

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. The CARES Act also authorized the Small Business Administration to provide EIDLs of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.

To obtain a PPP or EIDL loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and expenses. In addition, businesses generally had to provide supporting documentation.

Arlen Encarnacion submitted 11 fraudulent PPP loan applications and three fraudulent EIDL applications on behalf of purported businesses. Kent Encarnacion helped submit one of the fraudulent PPP applications, and Pena helped submit three of the other fraudulent PPP applications. Each application contained false representations, including bogus federal tax return documentation and fabricated information about the number of employees and wages paid. Based on these alleged misrepresentations, lenders, Federal Home Loan Bank members, and the Small Business Administration collectively provided the purported businesses with approximately $2.1 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Arlen Encarnacion received the bulk of the fraudulent proceeds, and together with Kent Encarnacion and Pena, they misappropriated all of the funds.  

In addition to the prison term, Judge Castner sentenced Encarnacion to three years of supervised release and ordered restitution of $2.18 million.

U.S. Attorney Philip Sellinger credited postal inspectors of U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Nielsen, Philadelphia Division; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tomlins; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the Social Security Administration – Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the Federal Housing Finance Agency – Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau New York Regional Office, under the direction of Special Agent in Charge Brian Tucker; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso; with the investigation leading to today’s sentencing. He also thanked the Middlesex County Prosecutor’s Office and the Perth Amboy Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

NEWARK, N.J. – A Florida man was charged in an indictment unsealed today for his role in durable medical equipment (DME) kickback scheme that caused $97 million in losses to Medicare, Attorney for the United States Vikas Khanna announced today.

Raheel Naviwala, 35, of Coral Springs, Florida, is charged in a 10-count indictment with one count of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, two counts of wire fraud, one count of conspiracy to violate the federal Anti-Kickback Statute, and three counts of illegal kickbacks.  

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

Naviwala and his conspirators owned and operated multiple call centers through which they obtained doctors’ orders for durable medical equipment – orthotic braces – for Medicare beneficiaries, without regard to medical necessity. Naviwala and his conspirators obtained the DME orders through the use of marketing call centers and telemedicine companies. Naviwala and his conspirators provided these DME orders in exchange for bribes from certain companies of $125 to $450 per brace. Naviwala and his conspirators caused losses to Medicare in excess of $97 million and received kickbacks in excess of $46 million.

Conspiracy to commit health care fraud and wire fraud is punishable by a maximum potential penalty of 20 years in prison. Each count of health care fraud is punishable by a maximum potential penalty of 10 years in prison. Each count of wire fraud is punishable by a maximum potential penalty of 20 years in prison. Conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison. Each count of illegal kickbacks is punishable by a maximum potential penalty of 10 years in prison.  Each count is also punishable by a fine.

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 and Acting Special Agent in Charge is Maged Behnam in Miami, Florida; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Brian J. Solecki; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the charge.

The government is represented by Assistant U.S. Attorneys Matthew Specht and Ray Mateo of the Opioid Abuse Prevention & Enforcement Unit in Newark.

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

 

naviwala.indictment.pdf

NEWARK, N.J. – The Department of Justice joined the United Kingdom and international law enforcement partners in London today to announce the disruption of the LockBit ransomware group, one of the most active ransomware groups in the world that has targeted over 2,000 victims, received more than $120 million in ransom payments, and made ransom demands totaling hundreds of millions of dollars.

The U.K. National Crime Agency’s Cyber Division, working in cooperation with the Justice Department, FBI, and other international law enforcement partners disrupted LockBit’s operations by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threating to publish stolen data.

“For years, LockBit associates have deployed these kinds of attacks again and again across the United States and around the world. Today, U.S. and U.K. law enforcement are taking away the keys to their criminal operation,” said Attorney General Merrick B. Garland. “And we are going a step further — we have also obtained keys from the seized LockBit infrastructure to help victims decrypt their captured systems and regain access to their data. LockBit is not the first ransomware variant the Justice Department and its international partners have dismantled. It will not be the last.”

“Today’s actions are another down payment on our pledge to continue dismantling the ecosystem fueling cybercrime by prioritizing disruptions and placing victims first,” said Deputy Attorney General Lisa Monaco. “Using all our authorities and working alongside partners in the United Kingdom and around the world, we have now destroyed the online backbone of the Lockbit group, one of the world’s most prolific ransomware gangs. But our work does not stop here: together with our partners, we are turning the tables on Lockbit — providing decryption keys, unlocking victim data, and pursuing Lockbit’s criminal affiliates around the globe.”

Additionally, the National Crime Agency, in cooperation with the FBI and international law enforcement partners, has developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Beginning today, victims targeted by this malware are encouraged to contact the FBI at https://lockbitvictims.ic3.gov/ to enable law enforcement to determine whether affected systems can be successfully decrypted. 

The Justice Department also unsealed an indictment obtained in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses nationwide in the manufacturing and other industries, as well as victims around the world in the semiconductor and other industries. Today, additional criminal charges against Kondratyev were unsealed in the Northern District of California related to his deployment in 2020 of ransomware against a victim located in California. 

Finally, the Department also unsealed two search warrants issued in the District of New Jersey that authorized the FBI to disrupt multiple U.S.-based servers used by LockBit members in connection with the LockBit disruption. As disclosed by those search warrants, those servers were used by LockBit administrators to host the so-called “StealBit” platform, a criminal tool used by LockBit members to organize and transfer victim data.

“Today, the FBI and our partners have successfully disrupted the LockBit criminal ecosystem, which represents one of the most prolific ransomware variants across the globe,” said FBI Director Christopher A. Wray. “Through years of innovative investigative work, the FBI and our partners have significantly degraded the capabilities of those hackers responsible for launching crippling ransomware attacks against critical infrastructure and other public and private organizations around the world. This operation demonstrates both our capability and commitment to defend our nation's cybersecurity and national security from any malicious actor who seeks to impact our way of life. We will continue to work with our domestic and international allies to identify, disrupt, and deter cyber threats, and to hold the perpetrators accountable.”

According to the indictment obtained in the District of New Jersey, from at least as early as January 2021, Sungatov allegedly deployed LockBit ransomware against victim corporations and took steps to fund additional LockBit attacks against other victims. Sungatov allegedly deployed LockBit ransomware against manufacturing, logistics, insurance, and other companies located in Minnesota, Indiana, Puerto Rico, Wisconsin, Florida, and New Mexico. Additionally, as early as August 2021, Kondratyev similarly began to allegedly deploy LockBit against multiple victims. Kondratyev, operating under the online alias “Bassterlord,” allegedly deployed LockBit against municipal and private targets in Oregon, Puerto Rico, and New York, as well as additional targets located in Singapore, Taiwan, and Lebanon. Both Sungatov and Kondratyev are alleged to have joined in the global LockBit conspiracy, also alleged to have included Russian nationals Mikhail Pavlovich Matveev and Mikhail Vasiliev, as well as other LockBit members, to develop and deploy LockBit ransomware and to extort payments from victim corporations.

“Today’s indictment, unsealed as part of a global coordinated action against the most active ransomware group in the world, brings to five the total number of LockBit members charged by my office and our FBI and Computer Crime and Intellectual Property Section partners for their crimes. And, even with today’s disruption of LockBit, we will not stop there. Our investigation will continue, and we remain as determined as ever to identify and charge all of LockBit’s membership — from its developers and administrators to its affiliates. We will put a spotlight on them as wanted criminals. They will no longer hide in the shadows.”

U.S. Attorney Philip R. Sellinger

“Sheer terror fills everyone at hospitals, schools, companies, and government offices when they log into their computer systems and see they’ve been hacked,” FBI – Newark Special Agent in Charge James E. Dennehy said. “There's an immediate mad scramble to figure out how to get back their most vital information, and then a heated debate begins about whether or not to pay the demanded ransom. The chaos is the point. Most of the criminals who operate LockBit are just after the cash, but for the most notorious, it’s all about being savvier and smarter than everyone else. This intense investigation shows the FBI Newark, and our international law enforcement partners are disrupting these cyber groups, and more importantly - we are getting victims their information back. It’s incredible to think even starting way behind them, we catch up.”

With the indictment unsealed today, a total of five LockBit members have now been charged for their participation in the LockBit conspiracy. In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Matveev with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime Rewards Program, with information accepted through the FBI tip website at www.tips.fbi.gov/. In November 2022, a criminal complaint was filed in the District of New Jersey charging Vasiliev in connection with his participation in the LockBit global ransomware campaign. Vasiliev, a dual Russian-Canadian national, is currently in custody in Canada awaiting extradition to the United States. In June 2023, Russian national Ruslan Magomedovich Astamirov was charged by criminal complaint in the District of New Jersey for his participation in the LockBit conspiracy, including his deployment of LockBit against victims in Florida, Japan, France, and Kenya. Astamirov is currently in custody in the United States awaiting trial.

Kondratyev, according to the indictment obtained in the Northern District of California and unsealed today, is also charged with three criminal counts arising from his use of the Sodinokibi, also known as REvil, ransomware variant to encrypt data, exfiltrate victim information, and extort a ransom payment from a corporate victim based in Alameda County, California. 

The LockBit ransomware variant first appeared around January 2020 and, leading into today’s operation, had grown into one of the most active and destructive variants in the world. LockBit members have executed attacks against more than 2,000 victims in the United States and around the world, making at least hundreds of millions of U.S. dollars in ransom demands and receiving over $120 million in ransom payments. The LockBit ransomware variant, like other major ransomware variants, operates in the “ransomware-as-a-service” (RaaS) model, in which administrators, also called developers, design the ransomware, recruit other members — called affiliates — to deploy it, and maintain an online software dashboard called a “control panel” to provide the affiliates with the tools necessary to deploy LockBit. Affiliates, in turn, identify and unlawfully access vulnerable computer systems, sometimes through their own hacking or at other times by purchasing stolen access credentials from others. Using the control panel operated by the developers, affiliates then deploy LockBit within the victim computer system, allowing them to encrypt and steal data for which a ransom is demanded to decrypt or avoid publication on a public website maintained by the LockBit developers, often called a data leak site. 

The FBI Newark Field Office is investigating the LockBit ransomware variant.

Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey and Trial Attorneys Jessica C. Peck, Debra Ireland, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the charges against Sungatov and Kondratyev unsealed today in the District of New Jersey. The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust and Office of International Affairs also provided significant assistance.

The disruption announced today was the result of a joint operation between the FBI; National Crime Agency, South West Regional Organised Crime Unit; France’s  Gendarmerie Nationale Cyberspace Command; Germany’s Landeskriminalamt Schleswig-Holstein and the Bundeskriminalamt; Switzerland’s Federal Office of Police, Public Prosecutor’s Office of the Canton of Zurich, and Zurich Cantonal Police; Japan’s National Policy Agency; Australian Federal Police; Sweden’s Polismyndighetens; Royal Canadian Mounted Police; Politie Dienst Regionale Recherche Oost-Brabant of the Netherlands; Finland’s Poliisi; Europol; and Eurojust.

The FBI Phoenix Field Office and Assistant U.S. Attorney Helen L. Gilbert are investigating and prosecuting the case against Kondratyev in the Northern District of California.

Additionally, the Department of the Treasury’s Office of Foreign Assets Control announced today that it is designating Sungatov and Kondratyev for their roles in launching cyberattacks.

As mentioned above, victims of LockBit should contact the FBI at https://lockbitvictims.ic3.gov for further information. Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A.      

Watch the Attorney General’s remarks at www.youtube.com/watch?v=-jKykhKKMZw.

An indictment is merely an allegation. Under U.S. law, all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

 

prs_lockbit_remarks.pdf

 

lockbit.indictment.pdf

NEWARK, N.J. – A New Jersey man whose 24-year federal prison sentence was commuted after being twice convicted of defrauding investors of a total of $230 million was indicted today with one other conspirator in another fraud scheme, U.S. Attorney Philip R. Sellinger announced.

The indictment charges Eliyahu “Eli” Weinstein, aka Mike Konig, 48, and Aryeh “Ari” Bromberg, 49, with conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, four counts of wire fraud, and conspiracy to obstruct justice. Three of Weinstein and Bromberg’s alleged conspirators, Christopher Anderson, 47, Richard Curry, 36, and Alaa Mohamed Hattab, 35, previously pleaded guilty to conspiracy to commit securities fraud and are awaiting sentencing. Charges via criminal complaint are still pending against two of Weinstein and Bromberg’s alleged conspirators, Joel Wittels and Shlomo Erez.

“A federal grand jury in New Jersey has charged Weinstein and Bromberg with defrauding victim investors out of tens of millions of dollars. As alleged, soon after Weinstein got out of jail after receiving a Presidential commutation, he picked his Ponzi schemer’s playbook back up and allegedly started ripping off victims again. Weinstein allegedly used a fake name and worked with Bromberg and others to falsely promise access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine. Weinstein didn’t try to make his prior victims whole – he made more victims, as alleged in the indictment. This office will aggressively investigate and prosecute fraudsters who allegedly prey on innocent investors.”

U.S. Attorney Philip R. Sellinger

“The adage ‘history repeats itself’ proves true in the case we’ve built against Weinstein and his co-conspirators,” FBI – Newark Special Agent in Charge James E. Dennehy said. “We allege he persuaded investors to put money into several ventures, based on taking advantage of the COVID pandemic, the baby formula shortage, and even the war in Ukraine. Our investigation shows those ventures weren’t real, and to use the exact words the subjects used - it was a Ponzi scheme. Weinstein squandered his pardon from the highest office in this country for similar criminal behavior. He now faces justice, a second time.”

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

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

Soon after being released from prison, Weinstein began orchestrating a new scheme to solicit money from investors through a company called Optimus Investments Inc. (Optimus). Using the fake name “Mike Konig,” Weinstein ran Optimus with Bromberg and Wittels. They kept Weinstein’s true name and identity hidden because, as Weinstein acknowledged in a secretly recorded conversation, investors wouldn’t give them “a penny” if they learned of Weinstein’s involvement.

Weinstein, Bromberg, and Wittels received the bulk of investor money through a second company, Tryon Management Group LLC, which was owned and controlled by Anderson and Curry. Tryon promised these individual investors – consisting mostly of friends and family – lucrative opportunities to invest in deals involving COVID-19 masks, scarce baby formula, and first-aid kits supposedly bound for wartime Ukraine. Posing as Mike Konig, Weinstein provided the information for these supposed deals. Based on that information, investors gave money to Tryon, believing the deals were legitimate and not knowing about Weinstein’s involvement. In turn, Tryon transferred those funds to Weinstein, through Optimus.

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

In late August 2022, Weinstein revealed his true identity to Anderson and Curry, admitting in a secretly recorded meeting, “I am Eli Weinstein.” In another recorded August 2022 meeting, Weinstein admitted to misappropriating Tryon investor money and making various false statements and sending fake documents concerning the purported Optimus deals. Weinstein acknowledged that he was conducting a Ponzi scheme, stating, “I finagled, and Ponzied, and lied to people to cover us.”

Once Anderson and Curry learned that Mike Konig was actually Weinstein, they agreed with Weinstein, Bromberg, and other conspirators to continue concealing Weinstein’s identity from investors and to raise additional money to pay off existing Tryon investors, all in an effort to stop the Ponzi scheme from falling apart and to cover up the fraud.

In addition to defrauding investors, Weinstein and Bromberg also conspired to obstruct justice. They helped hide Weinstein’s assets that should have been used to pay over $200 million in restitution that he still owes his previous victims. They also concealed Weinstein’s myriad business activities, which he was required to disclose to the court and which were expressly prohibited by the terms of his supervised release. In multiple secretly recorded conversations, Weinstein discussed his intent to conceal his various assets from the government. In one such conversation, Weinstein referenced hidden assets that he “can’t touch” while on supervised release because he’d otherwise “go to jail.” Weinstein then boasted, “I just told you something that no one in the world knows because I hid money. Get it?”

The conspiracy and substantive securities fraud charges are each punishable by a maximum of 5 years in prison and a $5 million fine. The conspiracy and substantive charges of wire fraud are punishable by a maximum of 20 years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. The obstruction conspiracy charge is punishable by a maximum of five years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the charges in this case. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Antonia Apps, Director of the SEC’s New York Regional Office.

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

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

 

weinsteinbromberg.indictment.pdf

NEWARK, N.J. –  A Chicago man was charged today in a fraud scheme that defrauding victims of over $3.7 million, U.S. Attorney Philip R. Sellinger announced.

Phillip Galles, 57, is charged by indictment with one count each of wire fraud and commodities fraud.

“As alleged, Phillip Galles defrauded multiple victims by falsely posing as a successful hedge fund manager who would invest their money in commodity futures through his Chicago-based investment company Tyche Asset Management,” U.S. Attorney Sellinger said. “In reality, Galles made virtually no real investments, spent time working as a dog walker and not a fund manager, and misappropriated over $3.7 million in victims’ money. We will continue to work relentlessly to pursue those who prey on investors through lies and deception.”

U.S. Attorney Philip R. Sellinger

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

Galles, a former commodities trader, defrauded his victims by falsely claiming that he would invest their money in commodity futures through his purported investment company called Tyche Asset Management, based in Chicago. As part of the scheme, Galles and those working for him falsely told prospective investors that Tyche had a history of success using proprietary trading strategies, with extraordinary annual rates of return exceeding 100 percent. In reality, Tyche made virtually no legitimate investments in commodity futures or otherwise.  Galles instead ran Tyche like a Ponzi scheme and used investor money to pay back other investors and for his own personal expenses.

Galles met with an undercover agent in New Jersey purporting to be an investment manager looking to make a large investment. Galles repeatedly lied during those meetings about Tyche and his own personal history. He falsely claimed that Tyche had annual returns of 336 percent, raised over $2 billion within 60 days of starting the fund, and had prominent investors, including a Kuwaiti sovereign fund and a well-known owner of a professional sports team. Galles also falsely claimed that he graduated from a prominent university in the Midwest. In total, Galles defrauded more than a dozen victims of more than $3.7 million.

The counts with which Galles is charged are each punishable by a maximum of 20 years in prison and a fine of $250,000 or twice the gross gain or loss involved in the offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney in Newark, and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to the charges. He also expressed appreciation to the Commodity Futures Trading Commission and the National Futures Association.

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

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

galles.indictment.pdf

NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 80 months in prison for receiving videos and images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Joshua Cremosnik, 50, of Rahway, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Julien Xavier Neals to an information charging him with one count of receipt of child pornography. Judge Neals imposed the sentence today in Newark federal court.

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

From April to August 2021, Cremosnik received videos of child sexual abuse via a publicly available online peer-to-peer (P2P) file-sharing program. Subsequent to a lawful search of his residence, law enforcement officers recovered numerous videos and images of child sexual abuse on Cremosnik’s laptop and electronic storage media. Cremosnik acknowledged using the P2P network to request and receive child pornography materials and stored those materials on his laptop and electronic storage media.

In addition to the prison term, Judge Neals sentenced Cremosnik to five years of supervised release and ordered restitution of $208,694.

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, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Farhana C. Melo of the Criminal Division in Newark.

NEWARK, N.J. – A California pharmaceutical company has agreed to pay $750,000 to resolve allegations that it violated the False Claims Act by causing the submission of claims for certain opioids in violation of the federal Anti-Kickback Statute, U.S. Attorney Philip R. Sellinger announced today.

From Dec. 1, 2015, through Aug. 31, 2016, Sentynl Therapeutics Inc., of Solana Beach, California, a specialty pharmaceutical company, marketed and sold prescription opioids Abstral and Levorphanol Tartrate (Levorphanol).

The settlement resolves allegations that, during the relevant time period, Sentynl knowingly caused the submission of claims for Abstral and Levorphanol medications to Medicare in violation of the federal Anti-Kickback Statute. These allegedly false claims resulted from Sentynl’s alleged indirect payment of kickbacks to a physician. Specifically, the United States contends that Sentynl hired the girlfriend of a physician who was a top prescriber of Transmucosal Immediate Release Fentanyl (TIRF) medications to act as a sales representative in South Florida – the same region in which the physician practiced. Sentynl hired, employed, and made salary and bonus payments to the physician’s girlfriend to induce the physician to prescribe its Abstral and Levorphanol medications.

“The opioid crisis has had devastating impacts here in New Jersey and for the country at large. This office is committed to combatting this crisis at every level of the healthcare system, from the prescribers to the manufacturers. Here, this pharmaceutical company is alleged to have indirectly paid unlawful kickbacks to a doctor by employing his girlfriend in an effort to improperly induce him to prescribe their opioid products. Today’s settlement holds them accountable for this alleged wrongdoing and reflects law enforcement’s ongoing commitment to protecting the integrity of medical decision-making and combatting the opioid crisis.”   

U.S. Attorney Philip R. Sellinger

"Pharmaceutical companies that sold opioids are being held accountable for improper inducements offered to prescribers,” FBI – Newark Special Agent in Charge James E. Dennehy said. The Newark FBI and our law enforcement partners will continue our pursuit of those who continue to believe the rules don’t apply to them.”

“Pharmaceutical companies are not exempt from their responsibilities to operate within the confines of the law,” Special Agent in Charge Cheryl Ortiz of the Drug Enforcement Administration’s New Jersey Field Division said. “We are glad our diversion investigators were able to assist efforts to bring this matter to a resolution.”

“Some violations of the Anti-Kickback Statute, like those alleged here, can induce physicians’ imprudent prescribing of controlled substances,” stated Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General. “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; investigators of the U.S. Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Cheryl Ortiz; special agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, with the investigation leading to the settlement.

The government is represented by Assistant U.S. Attorney Susan J. Pappy of the U.S. Attorney’s Office, District of New Jersey’s Health Care Fraud Unit and Robert L. Toll of the Office’s Opioid Abuse Prevention and Enforcement Unit, and Trial Attorney Douglas J. Rosenthal of the Department of Justice’s Civil Division, Commercial Litigation Branch (Fraud Section).

The government’s pursuit of this matter illustrates its efforts to combat healthcare fraud. One of the strongest tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).

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

 

sentynl.settlement.pdf

TRENTON, N.J. – A Middlesex County, New Jersey, man was arrested today for allegedly inducing a minor to send him sexually explicit pictures and videos and engaging in sexually explicit conduct over an online chat platform, U.S. Attorney Philip R. Sellinger announced.

Jeremy Greenwald, 45, of South Amboy, New Jersey, is charged by complaint with one count of sexual exploitation of a child, one count of online enticement of a minor to engage in criminal sexual conduct, and one count of receipt of child pornography. Greenwald appeared this afternoon before U.S. Magistrate Judge Rukhsanah L. Singh in Trenton federal court and was detained.

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

From May 2022 through February 2023, Greenwald used an online chat application to communicate with a minor victim located outside of New Jersey. At Greenwald’s request, the minor victim created and sent Greenwald over the online platform images and videos of the victim engaging in sexually explicit conduct. He directed the victim to perform certain sexual activities, even using items Greenwald had purchased and sent the victim to use during the videos, including sex toys and costumes. Greenwald also paid the victim to produce and send to Greenwald the images and videos of the victim engaged in sexually explicit conduct.

The sexual exploitation charge is punishable by a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison and a $250,000 fine. The charge of online enticement carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $250,000 fine. The charge of receipt of child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential 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, with the investigation leading to today’s arrest.

The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office Criminal Division in Trenton.

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

 

greenwald.complaint.pdf

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

Francisco Villafane, 37, of Perth Amboy, New Jersey, was charged by complaint with one count of possession, one count of receiving, and one count of distributing child pornography. Villafane was arrested on Feb. 12, 2024, made his initial appearance on Feb. 13, 2024, before U.S. Magistrate Judge Jessica S. Allen in Newark federal court, and was detained.

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

In 2020, Villafane communicated with a minor victim over text message. They lost contact but they communicated again in late 2023. Villafane exchanged sexually explicit content with the victim and solicited explicit material from victim, including videos of the victim engaging in sexual acts at Villafane’s request.

The charge of possession of child pornography carries a maximum penalty of 10 years in prison and a $250,000 fine. The charges of receipt and distribution of child pornography each carry 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, and the Perth Amboy Police Department under the direction of Chief of Police Larry Cattano, with the investigation.

The government is represented by Assistant U.S. Attorney Daniel H. Rosenblum 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.

 

villafane.complaint.pdf

NEWARK, N.J. – Four individuals were charged for their roles in a conspiracy to receive, retitle, and “re-VIN” stolen vehicles, U.S. Attorney Philip R. Sellinger announced today.

Nathaniel Bell, aka “David Jones,” 26, of Linden, New Jersey; Johnathan Tanksley, 30, of Orange; L’Hubermane Felix, 24, of Miami, Florida; and Dayanna Sarango-Hidalgo, 28, of Newark, are each charged by complaint with one count of conspiracy to receive stolen vehicles. Bell is additionally charged with five counts of altering or removing motor vehicle identification numbers (VIN) and one count of transportation of stolen vehicles. Felix made his initial appearance today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court. Bell, Tanksley and Sarango-Hidalgo made their initial appearances earlier this month before U.S. Magistrate Judge Edward S. Kiel in Newark federal court.

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

The defendants conspired to obtain stolen vehicles from New Jersey, New York, Florida, and other states, obtained fraudulent titles for the stolen vehicles, and altered vehicle identification numbers to conceal the fact that the vehicles were stolen. The stolen cars were then sold to dealerships or individual purchasers so the defendants could make a profit. In at least one instance, the defendants sold a stolen car to an individual purchaser and then stole it back so they could sell it again. They accomplished this by placing Apple AirTags in the stolen vehicles to track the location of the vehicle after its sale. 

Each defendant faces up to five years in prison on the conspiracy charge. The maximum penalty that Bell faces for each count of altering or removing a motor vehicle identification number is five years in prison, and the maximum penalty for transporting a stolen vehicle is 10 years.

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. He also thanked the New Jersey State Police Auto Theft Task Force; the Port Authority of New York and New Jersey; the New Jersey Motor Vehicle Commission; the Union County Prosecutor’s Office; the National Insurance Crime Bureau; the Jersey City Police Department; the Belleville Police Department; the Rahway Police Department; the Linden Police Department; the Roselle Police Department; the Eatontown Police Department; the Freehold Police Department; the Elizabeth Police Department; the Miami Police Department (Florida); the Florida Highway Patrol; Florida Fish and Wildlife Conservation Commission; the Howard County Police Department (Maryland); the New York Police Department; the Nassau County Police Department (New York); the Georgia Department of Revenue; the New Jersey Division of Criminal Justice; the Deputy Attorney General’s Office; the FBI Miami Office; the FBI Cleveland Office; and the FBI Milwaukee Office. 

The government is represented by Assistant U.S. Attorney Alison Thompson 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.

 

belletal.complaint.pdf

CAMDEN, N.J. – An Essex County, New Jersey, man was sentenced today to 138 months in prison for committing three armed robberies of pharmacies in Elizabeth, New Jersey, for oxycodone and other prescription medication, U.S. Attorney Philip R. Sellinger announced.

Charles Johnson, 28, of Irvington, New Jersey, previously pleaded guilty before U.S. District Judge Karen M. Williams to an information charging him with three counts of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. Judge Williams imposed the sentence today in Camden federal court.

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

Throughout June and July 2022, Johnson robbed three different pharmacies in Elizabeth using a similar approach for each of the robberies, including brandishing a firearm, committing the robberies in the morning, demanding that employees of the pharmacies provide Johnson with oxycodone, promethazine, and other prescription medication, and threatening to shoot individuals in the pharmacies with a firearm. Law enforcement officials collected extensive video surveillance footage that linked Johnson to the robberies.

In addition to the prison term, Judge Williams sentenced Johnson 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; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; and the Elizabeth Police Department, under the direction of Chief Giacomo Sacca, for the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Joseph Stern of the General Crimes Unit in Newark.

NEWARK, N.J. – A Paterson Police Department officer today admitted using excessive force during two separate arrests, U.S. Attorney Philip R. Sellinger announced.

Kevin Patino, 32, of Wayne, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a superseding information charging him with two counts of violating an individual’s civil rights.

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

On Nov. 26, 2020, Patino responded to a call for backup from another officer who was attempting to disperse a crowd of people on Main Street in Paterson. Patino observed the other officer engaged in a verbal exchange with the first victim. Patino directed the victim to move away from the officer, but the victim initially declined to do so. Patino then pushed the victim  away from the other officer and the victim walked away from Patino. Patino also began to walk away but then returned to confront the victim, who did not pose a danger to Patino or anyone else, and pushed the victim into the street. Patino then grabbed the victim, threw the victim to the ground, and proceeded to repeatedly strike the victim while the victim was on the ground. Another police officer intervened while Patino was striking the victim and handcuffed the victim.

On Dec. 14, 2020, Patino responded with another officer in an unmarked police vehicle to a call regarding a suspicious person on Madison Avenue in Paterson. Patino, along with other officers, encountered an individual who appeared to be the person described in the call. While the officers were engaged with this individual, the second victim walked towards the officers and observed their interaction with the individual, before walking away. After the officers ended their encounter with the individual, Patino and another officer drove away in their unmarked police vehicle. The officer who was driving the unmarked vehicle then made a sharp turn towards the second victim, who was walking down the street, and parked the vehicle. Patino got out of the vehicle and struck the victim, who did not pose a danger to Patino or anyone else, in the face and body several times. After the other officer grabbed hold of the victim and brought the victim to the ground, Patino continued to repeatedly strike the victim.

Patino agreed that in each instance his repeated use of force against each victim was unreasonable and excessive, in violation of the Fourth Amendment to the United States Constitution.

Each violation of civil rights count carries a maximum penalty of one year in prison and a maximum fine of $100,000. Sentencing is scheduled for July 23, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the New Jersey Attorney General’s Office, under the direction of Attorney General Matthew J. Platkin; the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; and the North Jersey Public Corruption Task Force composed of members of FBI and New Jersey State Police.

The government is represented by Assistant U.S. Attorneys Bernard J. Cooney of the Criminal Division and the Civil Rights Division’s Criminal Civil Rights Task Force, and Joseph Gribko, Deputy Chief of the U.S. Attorney’s Office’s Civil Rights Division.

 

patino.sinformation.pdf

CAMDEN, N.J. – An Essex County, New Jersey, man today admitted conspiring with two others in a kickback scheme to defraud the owner of a condominium complex in Jersey City of $470,000, U.S. Attorney Philip R. Sellinger announced.

Jonathan Smith, 56, of Montclair, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams in Camden to an information charging him with one count of conspiracy to commit wire fraud.

Smith’s conspirator, Nathaniel Obedos, pleaded guilty on July 6, 2023, before Judge Williams and is awaiting sentencing. Ranaldo Bennett, Smith’s other conspirator, was arrested and charged for the same conduct, and his case is still pending.

According to the publicly filed documents and statements made in Court:

From November 2018 through July 2020, Smith conspired with Bennett and Obedos to engage in a kickback scheme to defraud the owner of the condominium complex. Bennett was the complex’s lead property manager and Smith was its superintendent. Bennett and Smith steered repair and maintenance work to Obedos and his company. Bennett and Smith requested and received kickbacks from Obedos. To fund these kickbacks, Bennett and Smith falsified invoices that grossly inflated the value of Obedos’s work. Relying on those fake invoices, the complex paid Obedos the inflated prices, and Obedos then used the excess money to pay Bennett and Smith kickbacks. The complex paid Obedos and his company over $1 million for work that was actually valued at $500,000. Obedos used the overpayments to pay $460,000 in kickbacks to Bennett and approximately $30,000 in kickbacks to Smith.

The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years and a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing for Smith is scheduled for June 10, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the today’s guilty plea.

The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.

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

 

smith.information.pdf

TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 45 months for defrauding 14 victims of more than $1.2 million and fraudulently obtaining a loan of approximately $96,000 meant for small businesses during the COVID-19 pandemic, U.S. Attorney Philip R. Sellinger announced.

Anthony Mastroianni Jr., 49, of Manalapan, New Jersey, pleaded guilty on Sept. 13, 2023, before U.S. District Judge Robert Kirsch to an information charging him with two counts of wire fraud. Judge Kirsch imposed sentence today in Trenton federal court. 

“This defendant admitted defrauding investors by taking the money they entrusted to him and using it for his personal benefit, rather than investing it. He did this after already having agreed never to work as broker. Investors need to know their money is being used for their best interest, and not to line the pockets of criminals. Mastroianni is now realizing the price that must be paid for stealing from innocent victims.”

U.S. Attorney Philip R. Sellinger

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

In 2016, Mastroianni consented to being permanently barred by the Financial Industry Regulatory Authority (FINRA), which prohibited him from acting as a broker or intermediary in securities transactions. Despite that debarment, Mastroianni admitted that from January 2017 to August 2022 he defrauded victim investors, many of whom were senior citizens, by falsely and fraudulently claiming that he would generate large investment profits for them through his company, Global Business Development & Consulting Corporation. Instead of investing the money as promised, Mastroianni used victim funds on personal expenses. In total, Mastroianni defrauded 14 victims of approximately $1.2 million.

Mastroianni also exploited the ongoing global pandemic by submitting a false and fraudulent application to obtain approximately $96,300 from a federal COVID-19 emergency relief loan meant for distressed small businesses. As with his investment fraud scheme, Mastroianni misused the loan proceeds to make personal purchases and cash withdrawals.

In addition to the prison term, Judge Kirsch also sentenced Mastroianni to three years of supervised release and ordered restitution of $1.3 million.

U.S. Attorney Sellinger credited special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney in Newark, with the investigation leading to today’s sentencing.

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

TRENTON, N.J. – The co-owner and the administrator of a Union City, New Jersey,  pharmacy today admitted their roles in conspiracies to defraud pharmacy benefit managers and health care benefit providers, including Medicare and Medicaid, of more than $65 million and to pay kickbacks and bribes to health care professionals and their staffs in exchange for referrals of prescriptions, U.S. Attorney Philip R. Sellinger announced.

Samuel “Sam” Khaimov, 52, and his wife, Yana Shtindler, 48, both of Glen Head, New York, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court. Khaimov pleaded guilty to two counts of a superseding indictment charging him with conspiring to commit health care fraud and conspiring to violate the federal anti-kickback statute. Shtindler pleaded guilty to conspiring to commit health care fraud. Khaimov and Shtindler’s codefendants, Ruben Sevumyants of Marlboro, New Jersey, and Alex Fleyshmakher of Morganville, New Jersey, have already pleaded guilty to counts in the superseding indictment and are awaiting sentencing.

“These defendants admitted taking part in an elaborate and years-long scheme to use their specialty pharmacy to rip off Medicare, Medicaid and private insurers. They paid bribes, kickbacks, set up phony jobs in doctors’ offices. They took reimbursements for medications that never dispensed and falsified records, defrauding insurers­ via pharmacy benefits managers of more than $65 million. Protecting the integrity of our healthcare system at all levels is a top priority for this office. We will continue to work relentlessly with our enforcement partners to ensure those who commit healthcare fraud or undermine the integrity of medical decision-making through bribes and kickbacks face justice, like the defendants in this case.”

U.S. Attorney Philip R. Sellinger

“The impacts of health care fraud are far-reaching,” FBI – Newark Special Agent in Charge James E. Dennehy said. “These schemes not only put a tremendous amount of strain on our resources, but also have significant impacts on insurance costs and chip away at the foundation of trust we have in our health care providers. Bottom line, the conspirators in this case put personal greed above quality patient care. While we are happy to see Khaimov, Shtindler and their crew face justice, we will remain at work for the American public and continue seeking out and shutting down these scams.”

“The defendants’ role in the conspiracies to defraud pharmacy benefit managers, health care benefit providers, and taxpayers via Medicare and Medicaid of more than $65 million is deplorable,” Tammy Tomlins, Special Agent in Charge of the IRS - Criminal Investigation Newark Field Office, said. “IRS - Criminal Investigation and our law enforcement partners will continue to pursue those who knowingly violate the law and undermine the integrity of our federal healthcare system.”

“The additional pleas in this investigation demonstrate that HHS-OIG will continue to hold accountable individuals who exploit federal health care programs for their own greed,” Naomi Gruchacz, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), said. “Pharmacy employees who submit fraudulent claims to Medicare and Medicaid and bribe medical providers to induce prescriptions put health care benefits for vulnerable populations at risk.”

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

The Prime Aid Pharmacies – now closed – operated as “specialty pharmacies” out of locations in Union City and the Bronx, New York. As specialty pharmacies, they processed expensive medications used to treat various conditions, including Hepatitis C, Crohn’s disease, and rheumatoid arthritis. Khaimov was a co-owner of Prime Aid Union City and the lead pharmacist of Prime Aid Bronx. Shtindler was Prime Aid Union City’s administrator. Sevumyants was Prime Aid Union City’s operations manager. Alex Fleyshmakher worked at Prime Aid Union City and was an on-paper owner of Prime Aid Bronx. His father, Igor Fleyshmakher, a co-owner of Prime Aid Union City, pleaded guilty to separate federal charges.

Initially, the Prime Aid Pharmacies obtained retail network agreements with several pharmacy benefits managers (PBM), which allowed them to receive reimbursement payments for prescription medications, including specialty medications. PBMs acted as intermediaries on behalf of Medicare, Medicaid, and other health benefit providers, so when one of the Prime Aid Pharmacies received a prescription, the pharmacy would typically submit a claim for reimbursement to the PBM that represented the beneficiary’s drug plan.

Starting in 2009, to obtain a higher volume of prescriptions, Khaimov, Sevumyants, Alex Fleyshmakher, and other Prime Aid employees paid bribes to doctors and doctors’ employees to induce the doctors and their staffs to steer prescriptions to the Prime Aid Pharmacies. The bribes included payments by cash, check, and wire transfers, as well as expensive meals and other things of value. Another method of bribery involved paying an employee to work inside a doctor’s office.

Prime Aid Union City – at the direction of Sevumyants, Shtindler, and Khaimov – also engaged in the pervasive and fraudulent practice of billing health benefit providers and PBMs for medications that were never provided to patients. While Prime Aid generally provided medications for initial prescriptions it received, it systematically billed for refills for those same medications without ever dispensing them to patients. According to the superseding indictment, from 2013 through 2017, Prime Aid Union City received at least $65 million in reimbursement payments from Medicare, Medicaid, and private health benefit providers for medications that Prime Aid Union City not only failed to give patients, but that Prime Aid Union City also never even ordered or had in stock at the pharmacy.

Over time, PBMs conducted routine audits of Prime Aid Union City and discovered its practice of billing but not dispensing medications. In response to these audits, Shtindler instructed Prime Aid employees to falsify records submitted to the PMBs. In addition, Sevumyants, with Shtindler’s knowledge and approval, forged shipping records of a private commercial shipping company to make it appear as if medications were shipped to the patients when, in fact, they were not.

The conspiracy to commit healthcare fraud count is punishable by a maximum of 10 years in prison. The conspiracy to pay illegal kickbacks is punishable by a maximum of five years in prison. Both counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for June 13, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; the N.J. Office of the Insurance Fraud Prosecutor, Medicaid Fraud Unit, under the direction of Interim Insurance Fraud Prosecutor Al Garcia, and the N.J. Office of the State Comptroller, under the direction of Acting Comptroller Kevin Walsh, with the investigation leading to today’s guilty pleas.

The government is represented by Assistant U.S. Attorneys Martha K. Nye of the U.S. Attorney’s Office in Trenton and Jordann R. Conaboy and Aaron L. Webman of the Opioid Abuse Prevention and Enforcement Unit of the U.S. Attorney’s Office in Newark.

 

kahimov.sindictment.pdf

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.pdf

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.pdf

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.

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.

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, 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.

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.

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.pdf

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.

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.

“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.”

U.S. Attorney Philip R. Sellinger

“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.pdf

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.

“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.”

U.S. Attorney Philip R. Sellinger

“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.pdf

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.

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.

“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.”

U.S. Attorney Philip R. Sellinger

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.pdf

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.pdf

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.

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.

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.pdf

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.pdf