District of New Jersey
Press releases recorded for this federal judicial district.
Bulgarian National Arrested for Assaulting ICE Deportation OfficerRead the Press Release
NEWARK, N.J. – A Bulgarian national was arrested for assaulting a U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) deportation officer, U.S. Attorney Philip R. Sellinger announced.
Vasil Petrov, 40, of Bulgaria, is charged by complaint with one count of assaulting a federal officer. Petrov appeared today before U.S. Magistrate Judge Edward S. Kiel in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On Dec. 27, 2023, Petrov was in the lawful custody of ICE officers at an ICE facility in Elizabeth, New Jersey, pending removal from the United States. While being processed for removal, Petrov, without provocation, struck the victim deportation officer in the chin with a closed fist. As a result of Petrov’s assault, the victim deportation officer sustained bodily injury, including a laceration on his chin.
The charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney 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.
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Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
petrov.complaint.pdfPhiladelphia Man Sentenced to 18 Years in Prison for Drug TraffickingRead the Press Release
CAMDEN, N.J. – A Philadelphia man was sentenced today to 216 months in prison for trafficking methamphetamine and fentanyl in southern New Jersey and Philadelphia, U.S. Attorney Philip R. Sellinger announced.
Glenn Long, 29, of Philadelphia, previously pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to one count of a superseding indictment charging him with conspiring to distribute fentanyl and methamphetamine.
According to documents filed in this case and statements made in court:
Long conspired with other individuals who acted as “runners” or “couriers” for a drug-trafficking organization that distributed methamphetamine and fentanyl. Drug customers would call Long to place orders for drugs, and the runners would deliver the drugs. Long admitted that on a date on which law enforcement agents executed search and arrest warrants in connection with the investigation into his conduct, Long’s conspirators possessed more than 2,700 grams of methamphetamine and 400 grams of fentanyl for the conspiracy. Long participated in this conspiracy while he was a fugitive on a federal drug trafficking indictment in the Eastern District of Pennsylvania, to which he has since pleaded guilty.
In addition to the prison term, Judge Hillman sentenced Long to five years of supervised release.
U.S. Attorney Sellinger credited special agents with the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation leading to today’s sentencing. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania; Drug Enforcement Administration, Philadelphia Division; U.S. Department of Homeland Security – Homeland Security Investigations; U.S. Marshals Service; FBI; Bensalem Police Department; Berlin Borough Police Department; Berlin Township Police Department; Bucks County District Attorney’s Office; Camden County Prosecutor’s Office; Clayton Police Department; Delaware County District Attorney’s Office Narcotics Task Force; Deptford Township Police Department; Gloucester County Prosecutor’s Office; Gloucester Township Police Department; New Jersey State Police; New Jersey National Guard Counter Drug Task Force; Pennsylvania State Police; Pennsville Police Department; and Winslow Township Police Department for their assistance.
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 Jeffrey Bender of the U.S. Attorney’s Office in Camden.
Mexican Citizen Extradited to United States on Narcotics Conspiracy ChargesRead the Press Release
NEWARK, NJ. – A citizen of Mexico who was extradited to the United States on narcotics trafficking charges had her initial appearance in New Jersey federal court, U.S. Attorney Philip R. Sellinger announced today.
Norma Flores-Fernandez, aka “Norma Camarillo,” 55, is charged by indictment with one count of conspiracy to distribute cocaine and one count of conspiracy to distribute heroin. Flores-Fernandez was arrested in Mexico at the request of the United States on Sept. 24, 2023, and extradited to the United States. She had her initial appearance on Jan. 2, 2024, before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court, pleaded not guilty, and was detained.
According to documents filed in this case and statements made in court:
Flores-Fernandez was part of a Guadalajara, Mexico-based drug trafficking organization that distributed narcotics, including cocaine and heroin, throughout the United States from March 2018 through December 2019. Flores-Fernandez coordinated the distribution of approximately 15 kilograms of cocaine in Chicago and approximately 5.6 kilograms of heroin in New Jersey, both of which were seized by law enforcement.
Four of Flores-Fernandez’s conspirators – Oscar Alberto Flores-Fernandez, 53, Dario Camarillo, 60, Laura Vanessa Diosa-Giraldo, 30, and Emilio Gutierrez-Martinez, aka “Jose Silvetre-Soto,” 39 – previously pleaded guilty to narcotics offenses. Oscar Alberto Flores-Fernandez, who is also a Mexican citizen, was previously extradited to the United States from Peru.
The charges of conspiracy to distribute cocaine and conspiracy to distribute heroin each carry a statutory maximum sentence of life in prison and a statutory maximum fine of $10 million.
U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark and Special Agent in Charge Sheila G. Lyons in Chicago, Illinois; and special agents of the U.S. Customs and Border Protection, under the direction of Director of Field Operations Lafonda Sutton-Burke in Chicago, with the investigation leading to the charges. He also thanked the U.S. Drug Enforcement Administration in Lima, Peru; U.S. Drug Enforcement Administration in Guadalajara, Mexico; and Homeland Security Investigations in Chicago; DEA - Los Angeles; and the U.S. Marshals Service; for their assistance in the investigation. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest of Flores-Fernandez and her extradition to the United States. U.S. Attorney Sellinger thanked officials in Mexico for their assistance in the investigation.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys George M. Barchini of the OCDETF Unit and Mark J. Pesce 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.
floresfernandez.indictment.pdfRemarks of U.S. Attorney Philip R. Sellinger at the 2023 Newark Year-End Crime Stats Press ConferenceRead the Press Release
Thank you Mayor Baraka and Public Safety Director Fragé for including us in today’s event and for your partnership and commitment to combatting and eradicating gun violence in Newark.
Keeping our communities safe is the most fundamental mission of law enforcement. We at the U.S. Attorney’s Office are truly honored to collaborate with the Newark Police Department and all of our other law enforcement partners up here today in support of this critical cause. We believe that this partnership, created through our Newark Violent Crime Initiative, which just entered its sixth year, has helped drive the historically low rates of homicides and shootings in Newark that the Mayor and Police Director mentioned. While every homicide and senseless shooting is tragic and is one too many, we believe this hard-earned, steady decline is a direct result of our VCI’s collaborative efforts.
Together, the Newark Police Department, my office, and our other federal, state, and local law enforcement partners in our VCI have spent years identifying and gathering intelligence about those who drive the violence in and around Newark. For our part, we’ve dedicated prosecutors to target those street gangs whose members and associates are responsible for the shootings that continue to harm this community, and we have prosecuted violent offenders associated with each and every one of them.
In the course of our partnership, we’ve charged hundreds of Newark offenders for shootings, gun trafficking and possession, and gang-related activities. We currently have two alleged Newark gang members facing mandatory life sentences for murder. We have at least two more facing potential life sentences for non-fatal violent crimes in furtherance of gang activity.
In October, we charged two alleged members of the Sex Money Murder (“SMM”) subset of the Bloods Street gang operating in the Bradley Court Housing Complex with the November 2022 murder of a rival. In November, we charged five additional alleged SMM members and associates for trafficking fentanyl, heroin, and cocaine in Newark, two of whom we also charged with firearms possession.
Following a series of retaliatory shootings between rival neighborhoods in Newark, we charged a member of a street gang operating in the area of Clinton Place and Weequahic Avenue for possessing a machinegun that was used in April to fire 28 rounds, hitting three victims at the Oscar Miles Housing Complex. He pleaded guilty in October.
Over the course of the year, 12 members and associates of the Grape Street Crips street gang operating in and around Oscar Miles pleaded guilty to running a drug trafficking organization distributing large amounts of fentanyl and crack cocaine.
These are but a few examples of the results of our VCI partnership with all of our law enforcement partners up here today. Thank you.
Two Men Charged in Connection with Kidnapping of New Jersey ResidentRead the Press Release
NEWARK, N.J. – Two men have been charged in connection with their respective roles in an armed kidnapping for ransom of a Paterson, New Jersey, resident, U.S. Attorney Philip R. Sellinger announced.
Julio Cesar Paniagua, 27, is charged by complaint with one count of kidnapping. Paniagua appeared today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was detained.
Joel Ramon Garcia, 33, was previously charged by complaint with one count of kidnapping. Following his arrest on Nov. 20, 2023, Garcia made his initial appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On Nov. 15, 2023, Paniagua and Garcia kidnapped the victim in Paterson and then drove the victim to Massachusetts, where they held the victim for ransom. During the kidnapping, Paniagua and Garcia both brandished firearms. Shortly after the kidnapping, the kidnappers contacted the victim’s father and threatened that the victim’s fingers would be cut off if the ransom was not paid. The kidnappers ultimately released the victim on Nov. 17, 2023.
The charge of kidnapping carries a maximum penalty of life in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited members of the FBI’s New Jersey field office, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the charges. He also thanked members of the FBI’s Boston field office under the direction of Special Agent in Charge Jodi Cohen; the Paterson Police Department, under the direction of Officer in Charge Isa M. Abbassi; members of the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik; members of the Clifton Police Department, under the direction of Police Chief Thomas Rinaldi; members of the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella; and members of the Cedar Grove Police Department, under the direction of Police Chief John J. Kennedy, for their assistance.
The government is represented by Assistant U.S. Attorney John Maloy of the General Crimes Unit in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
garcia.complaint.pdf
paniagua.complaint.pdfOwner of Marketing Companies Admits Role in $24 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – An Ohio man and owner of several marketing companies today admitted his role in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, Attorney for the United States Vikas Khanna announced.
James D. Feeley, 46, of Grafton, Ohio, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From June 2017 through September 2020, Feeley participated in a scheme with pharmacies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes. Feeley controlled several marketing companies though which he and his conspirators identified Medicare and TRICARE beneficiaries to target for expensive drugs. The marketing companies spoke to beneficiaries by telephone to pressure them to agree to try expensive medications, regardless of medical necessity. Company employees would deliberately conceal the name of the prescribing doctor – whom the beneficiary had never met before – to increase the likelihood that the beneficiary would agree to accept the medications. Portions of the telephone calls were recorded.
Feeley and his companies then paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors, to obtain prescriptions for the medications. Feeley transmitted to the telemedicine companies the beneficiaries’ medical information, the telephone call recording, and pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements. Feeley, the marketing companies, and the pharmacies with which they had relationships chose particular drugs for the prescriptions largely based on reimbursement amount and not medical need. The doctors paid by the telemedicine companies signed the prescriptions regardless of medical necessity, often without ever speaking to the patient.
Feeley and his conspirators then directed the prescriptions to pharmacies with which Feeley and his business partner, Mark Belter, had additional kickback arrangements. The pharmacies submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Feeley and his companies as payment for the prescriptions generated through the conspiracy. In total, Feeley and his conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $24 million of prescription drugs. Belter previously pleaded guilty to an information charging conspiracy to violate the federal anti-kickback statute and conspiracy to commit health care fraud.
Feeley and his companies received kickbacks and bribes totaling more than $6 million in exchange for prescription referrals to Apogee Bio Pharm LLC, a pharmacy located in Edison, New Jersey. The principals of Apogee – William Welwart, Ethan Welwart, and Gary Kaczka – are charged with health care fraud and related offenses in a separate indictment. The charges and allegations contained in the indictment are merely accusations, and William Welwart, Ethan Welwart and Gary Kaczka are presumed innocent unless and until proven guilty.
Elan Yaish, former president of Apogee, previously pleaded guilty to an information charging conspiracy to violate the federal anti-kickback statute.
The conspiracy charges are each punishable by a maximum of five years in prison, along with fines, restitution, and penalties as to both counts. Both charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 9, 2024.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Brian J. Solecki, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark.
feeley.information.pdfEssex County Woman Charged with Stealing over $1 Million in Federal Retirement Benefits Intended for Deceased AuntRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman was arrested today for allegedly stealing over $1 million of federal benefits meant for her deceased aunt over a 25-year period, U.S. Attorney Philip R. Sellinger announced.
Janis Miller, 77, of South Orange, New Jersey, is charged by complaint with one count of wire fraud. She appeared today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In 1998, Miller’s aunt died. Unaware of her death, the Social Security Administration (SSA) and the U.S. Office of Personnel Management (OPM) paid approximately $1.01 million in retirement and survivor benefits to the bank account of Miller’s deceased aunt. By debit card, cash withdrawals, and forged checks made out to a company Miller controlled, Miller unlawfully disbursed virtually all of those embezzled funds. In 2022, to continue her unlawful receipt of the benefits, Miller, in a telephone conversation with an SSA employee, impersonated her deceased aunt and provided her aunt’s approximate birthdate. OPM and SSA discovered the fraud and discontinued the benefits in 2023, around 25 years after Miller began stealing those benefits.
The count of wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum fine of the greatest of either $250,000 or twice the pecuniary gain or loss caused by the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott, and U.S. Office of Personnel Management, Office of the Inspector General, under the direction of Special Agent in Charge Paul Kimball, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Sam Thypin-Bermeo 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.
miller.complaint.pdfNorth Carolina Man Admits Role in International Market Manipulation Scheme Related to New Jersey DeliRead the Press Release
CAMDEN, N.J. – A North Carolina man today admitted orchestrating a large-scale market manipulation scheme related to two publicly traded companies, U.S. Attorney Philip R. Sellinger announced.
James Patten, 64, of Winston-Salem, North Carolina, pleaded guilty before U.S. District Judge Christine P. O’Hearn to securities fraud and conspiracy to commit securities fraud.
According to documents filed in this case and statements made in court:
From 2014 through September 2022, Patten, along with co-defendants Peter Coker Sr., and Peter Coker Jr., conspired to enrich themselves through a scheme to manipulate securities prices via a pattern of coordinated trading, which injected inaccurate information into the marketplace, creating false impressions of supply and demand for these securities.
As part of the securities fraud scheme, the defendants targeted two publicly traded companies – Hometown International Inc. and E-Waste Corp. – which were both traded on the OTC Link Alternative Trading System, also known as the OTC Marketplace. The OTC Marketplace is an alternative trading system that contains three tiers of markets, which are largely based on the quality and quantity of the listed companies’ information and disclosures.
Patten, Coker Sr., and Coker Jr. took steps to gain control of both entities’ management and stock with the ultimate intention of entering reverse mergers, a transaction through which an existing public company merges with a private operating company. A successful reverse merger would allow the defendants to sell shares of each entity at a significant profit.
In or around 2014, two New Jersey residents began the process of opening a local deli in Paulsboro, New Jersey. One of the individuals discussed his interest in opening the deli with Patten, a long-time friend, who suggested the creation of Hometown International, an umbrella corporation, under which the deli would operate as a wholly owned subsidiary. Unbeknownst to the deli owners, after Hometown International was formed, Patten and his associates began positioning Hometown International as a vehicle for a reverse merger that would yield substantial profit to them.
Around October 2019, Hometown International began selling shares on the OTC Marketplace. Shortly thereafter, Patten, Coker Sr., and Coker Jr. undertook a calculated scheme to gain control of Hometown International’s management and its shares from the deli owners. Patten, Coker Sr., and Coker Jr. took similar actions to gain control of E-Waste Corporation’s stock and management.
Once the defendants gained control of Hometown International and E-Waste’s shares, they arranged for the transfer of millions of shares of stock to a number of nominee entities, including entities controlled by Coker Jr., in an effort to mask their control of the shares.
The defendants transferred shares to family members, friends, and associates and gained control over their trading accounts by obtaining their log-in information in order to conceal the defendants’ involvement. The defendants then used those accounts to commit a number of coordinated trading events, often referred to as match and wash trades, to trade in Hometown International and E-Waste Corp.’s stock on both sides of the transaction.
These tactics artificially inflated the price of Hometown International and E-Waste’s stock by giving the false impression that there was a genuine market interest in the stock. Their scheme had the ultimate impact of artificially inflating Hometown International’s stock by 939 percent and E-Waste’s stock by 19,900 percent.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. The conspiracy to commit securities fraud carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense whichever is greatest. Sentencing is scheduled for April 23, 2024.
U.S. Attorney Sellinger credited special agents of the FBI’s Philadelphia Division, under the direction of Special Agent in Charge Wayne A. Jacobs; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation. He also thanked special agents from FBI Charlotte, FBI Los Angeles, FBI San Francisco, FBI Denver, and FBI Knoxville, for their assistance.
The government is represented by Assistant U.S. Attorneys Lauren E. Repole, Deputy Chief of the Economic Crimes Unit, and Shawn P. Barnes, Chief of the OCDETF/Narcotics Unit.
The charges and allegations contained in the indictment against Coker Sr. and Coker Jr. are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
patten.indictment.pdfHudson County Man Sentenced to 70 Months in Prison for Soliciting and Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 70 months in prison for soliciting victims online to send images and videos of child sexual abuse and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
Erick Solis, 25, previously pleaded guilty before retired U.S. District Judge Kevin McNulty to an information charging him with one count of solicitation of child pornography and one count of possession of child pornography. U.S. District Judge Julien X. Neals imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From July 2020 to February 2021, Solis used a social media application to engage victims in sexually explicit conversations. Solis requested that both minor victims take sexually explicit photographs and videos of themselves and send them to him.
In addition to the prison term, Judge Neals sentenced Solis to five years of supervised release.
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.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Criminal Division of the United States Attorney’s Office in Newark.
Essex County Woman Admits Role in Three Robberies and Two Shootings in Jersey CityRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman admitted her role in a one-night crime spree involving robberies and shootings in Jersey City, New Jersey, U.S. Attorney Philip R. Sellinger announced today.
Siobhan Chandler, 21, of Newark, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an indictment charging her with conspiracy to commit Hobbs Act robbery, conspiracy to use and carry a firearm in relation to crime of violence, attempted Hobbs Act Robbery, Hobbs Act robbery, and using and carrying a firearm in relation to crime of violence. The charges against her conspirator, Rodney Williams, are merely accusations, and he is presumed innocent unless and until proven guilty.
According to documents filed in this case and statements made in court:
On the evening of Nov. 14, 2023, Chandler and Williams robbed a gas station, where Williams pointed his gun at an attendant and demanded money. Chandler and Williams threatened force, violence, or fear of injury to two employees by demanding money while pointing a firearm at the employees. Chandler and Williams then fled.
Chandler and Williams later entered another store, and Williams again pointed his firearm at a clerk and demanded money. The clerk handed money to Williams and he and Chandler then fled.
Chandler and Williams entered a nearby restaurant and threatened force, violence or the fear of injury to a cashier. Williams pointed his gun at the cashier and demanded money. Williams discharged the firearm, shooting the cashier in the chest. The cashier handed money to Williams, after which Williams and Chandler fled.
The Hobbs Act robbery charges to which Chandler pleaded guilty each carry a maximum potential penalty of 20 years in prison; the conspiracy to use and carry a firearm in relation to crime of violence charge carries a maximum potential penalty of 20 years in prison; the using and carrying a firearm in relation to crime of violence charge carries a statutory minimum of 10 years in prison and a maximum potential penalty of life in prison. Any term of imprisonment on the charge for using and carrying a firearm in relation to crime of violence must run consecutively to any other prison term imposed on the other counts. Each count also carries a maximum fine of $250,000. Sentencing is scheduled for April 17, 2024.
U.S. Attorney Sellinger credited officers of the Jersey City Police Department, under the direction of Acting Chief Robert J. Kearns, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s guilty plea. He also thanks the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
chandler.indictment.pdfSussex County Man Charged in $2 Million COVID-19 Fraud SchemeRead the Press Release
NEWARK N.J. – A Sussex County, New Jersey, man was arrested today on charges related to fraudulently obtaining Paycheck Protection Program (PPP) funds and Economic Injury Disaster Loans (EIDL) totaling over $2 million, U.S. Attorney Philip R. Sellinger announced today.
Nikenson Jean Mathurin, aka “Nik Mathurin,” aka “Jean Mathurin,” 44, of Sparta, New Jersey, is charged by complaint with one count of wire fraud and one count of money laundering. He is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Jessica S. Allen in Newark federal court.
According to documents filed in this case and statements made in court:
From April 2020 through November 2021, Mathurin participated in a scheme to fraudulently receive over $2 million in COVID-19 emergency relief loans meant for distressed small businesses under the PPP and EIDL programs. He submitted several fraudulent PPP and EIDL applications on behalf of five purported business — Innovation Partners Plus, Inc., Opulence Motor Group LLC, OMG Collision Corp. (doing business as Corsa Volante), Tricon Systems LTC, and America Home Care LLC — to four lenders. In support of these applications, Mathurin allegedly provided false and fraudulent documents and information to the lenders, including fabricated tax documents, payroll documents, and number of employees.
Mathurin also used the allegedly fraudulent proceeds to, among other things, send money between his various bank accounts, buy restaurant equipment unrelated to any of his purported businesses, pay for travel expenses, and transfer money to an account at an online vehicle auction company, which was used to buy luxury cars, motorcycles, and motorcycle parts.
The wire fraud charge carries a maximum penalty of 20 years in prison, and the money laundering charge carries a maximum penalty of 10 years in prison. Each charge also carries a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark and Trial Attorney David D. Hamstra of the U.S Department of Justice’s Fraud Section.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
mathurin.complaint.pdfMan Charged for $2M COVID-19 Relief Fraud SchemeRead the Press Release
A criminal complaint was unsealed today charging a New Jersey man for his alleged participation in a scheme to obtain, through multiple fraudulent loan applications, more than $2 million in COVID-19 relief money guaranteed by the U.S. Small Business Administration through the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) Program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and to launder the money through a series of financial transactions.
According to court documents, Nikenson Jean Mathurin, also known as Nik Mathurin and Jean Mathurin, 44, of Sparta, allegedly submitted false and fraudulent loan PPP and EIDL Program applications on behalf of five purported business — Innovation Partners Plus Inc., Opulence Motor Group LLC, OMG Collision Corp. (doing business as Corsa Volante), Tricon Systems LTC, and America Home Care LLC — to four lenders. In support of these applications, Mathurin allegedly provided false and fraudulent documents and information to the lenders, including fabricated tax documents, payroll documents, and number of employees.
Mathurin also used the allegedly fraudulent proceeds to, among other things, send money between his various bank accounts, buy restaurant equipment unrelated to any of his purported businesses, pay for travel expenses, and transfer money to an account at an online vehicle auction company, which was used to buy luxury cars, motorcycles, and motorcycle parts.
Mathurin is charged with one count of wire fraud and one count of money laundering. If convicted, he faces a maximum penalty of 20 years in prison on the wire fraud count and 10 years in prison on the money laundering count.
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, Special Agent in Charge Robert Manchak of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) Northeast Region, and Special Agent in Charge Tammy Tomlins of the IRS Criminal Investigation’s (IRS:CI) Newark Office made the announcement.
FHFA-OIG and IRS:CI are investigating the case.
Trial Attorney David D. Hamstra of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Fatime M. Cano for the District of New Jersey are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Georgia Man Admits Role in $127 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – A Georgia man and operator of a marketing company today admitted his role in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, Attorney for the United States Vikas Khanna announced.
Nicco Romanowski, 31, of Roswell, Georgia, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From June 2017 through May 2019, Romanowski participated in a scheme with durable medical equipment (DME) companies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes. Romanowski operated a marketing company though which he and his conspirators identified Medicare and TRICARE beneficiaries to target for DME. Employees of the company called the beneficiaries to pressure them to agree to accept DME, frequently consisting of back, shoulder, and knee braces. Romanowski and his conspirators paid the company’s employees commissions, bonuses, and incentives to encourage them to convince as many beneficiaries as possible to accept DME, regardless of medical necessity.
Romanowski and his company paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors, to obtain doctor’s orders for the DME. The doctors paid by the telemedicine companies signed the orders regardless of medical necessity, often without ever speaking to the patient. Romanowski and his business partner, Eric Karlewicz, then steered the doctor’s orders to DME suppliers around the country, with which Romanowski and his company had additional kickback arrangements. The DME companies submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Romanowski and his company as payment for the doctor’s orders generated through the conspiracy. The company received more than $63 million from DME suppliers in exchange for the referrals.
In total, Romanowski and his conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $127 million for DME. Karlewicz previously pleaded guilty to an information charging conspiracy to violate the anti-kickback statute and conspiracy to commit health care fraud.
The kickback conspiracy charge is punishable by a maximum of five years in prison, and the health care fraud conspiracy charge is punishable by a maximum of 10 years in prison, along with fines, restitution, and penalties as to both counts. Both charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for May 21, 2024.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; 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; and special agents of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Brian J. Solecki, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.
romanowski.information.pdfFormer Co-Owners of New Jersey Marketing Company Sentenced to Prison in $8.8 Million Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – The former co-owners of a New Jersey marketing company were each sentenced today to 12 months and one day in prison for their roles in a scheme to defraud public and private health benefits programs of at least $8.8 million for the billing of medically unnecessary compounded prescriptions, U.S. Attorney Philip R. Sellinger announced.
Lisa Curty, 46, of Staten Island, New York, and Christine Myers, 38, of Phillipsburg, New Jersey, each previously pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to separate informations charging them with conspiracy to commit health care fraud. U.S. District Judge Katharine S. Hayden imposed the sentencing today in Newark federal court.
U.S. Attorney Philip R. Sellinger“These two defendants are just the latest in a long line of schemers who took advantage of publicly and privately funded insurance plans, raiding them for millions of dollars in fraudulent reimbursements for compounded medications. We will continue to prosecute those who take advantage of our health care system to generate illicit income.”
“The volume of cases involving compound medication fraud has moved beyond frustrating for law enforcement, with an arrest, conviction or sentencing happening almost every other day in New Jersey,” FBI – Newark Special Agent in Charge James E. Dennehy said. “The fraudsters committing these crimes aren't paying attention to the fact that everyone doing the same thing is going to federal prison. This is the FBI and our law enforcement partners screaming in the town square, you will be next if you continue to break the law.”
“Protecting the integrity of TRICARE, the healthcare system for our military members and their families, is a top priority of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” Acting Special Agent-in-Charge Brian J. Solecki, DCIS Northeast Field Office, said. “Schemes to bill TRICARE for medically unnecessary services place a great burden on the TRICARE program. We will continue to work with the U.S. Attorney’s Office and our law enforcement partners to ensure that individuals who engage in fraudulent activity, at the expense of the U.S. military, are investigated and prosecuted.”
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription.
Between February 2015 and February 2017, Curty and Myers participated in a conspiracy that involved the submission of fraudulent prescriptions for compounded medications to public and private insurance plans. The scheme centered on the discovery that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates.
Curty and Myers exploited this opportunity by creating a New Jersey marketing company and hiring sales representatives to target individuals who had insurance plans that covered compounded medications. The sales representatives then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. The individuals were then directed to certain telemedicine companies, which the marketing company or its affiliates paid, to receive the prescriptions.
Once the prescriptions were written, they were filled by certain compounding pharmacies with which the marketing company conspired. The compounding pharmacies would then receive reimbursement from the insurance plans, and would pay the marketing company a percentage of the reimbursement amount. As owners of marketing company, Curty and Myers retained a portion of the payment and provided a “commission” payment to the relevant sales representative.
In addition to the prison term, Judge Hayden sentenced the two defendants to two years of supervised release and ordered them to pay $8.2 million in restitution.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark, and the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Solecki, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jordann Conaboy of the Opioid Abuse and Prevention Unit in Newark.
Biotelemetry and Lifewatch to Pay More Than $14.7 Million to Resolve False Claims Act Allegations Relating to Remote Cardiac Monitoring ServicesRead the Press Release
NEWARK, N.J. – BioTelemetry Inc. and its subsidiary, LifeWatch Services Inc., headquartered in Malvern, Pennsylvania, and Rosemont, Illinois, respectively (collectively LifeWatch), have agreed to pay more than $14.7 million to resolve allegations that they violated the False Claims Act by knowingly submitting claims to federal health care programs for a higher level of remote cardiac monitoring than physicians had intended to order or that was medically necessary, thus inflating the level of reimbursement paid to LifeWatch.
The United States alleged that, from July 1, 2014, through Dec. 31, 2020, LifeWatch marketed its ACT-3L device (also known as the LifeStar ACT-3L and the MCT-3L) to doctors as being capable of performing three different types of heart monitoring services: Holter monitoring, event monitoring, and telemetry. Of these, telemetry provided the highest rate of reimbursement. The United States contended that LifeWatch knew the design of their online enrollment portal for the ACT-3L device caused unwitting clinical staff to select options that would enroll the patient in the most expensive service, telemetry, even when the doctor intended to order a less expensive service. The United States also contended that LifeWatch’s sales personnel instructed clinical staff to select the options that resulted in patients being enrolled for telemetry services, even when the sales personnel knew the clinic’s physicians intended to order less costly services. LifeWatch also allegedly disregarded written notes that clinic personnel included in patient enrollments that specifically reflected the treating physicians’ intent to order a service other than telemetry.
U.S. Attorney Philip R. Sellinger“Our health care system is based on doctors choosing the level of care appropriate for their patients. It undermines this system and costs taxpayers if companies design systems that make it harder for physicians to order only necessary services and also use their sales force to mislead health care practitioners, as we allege happened here. Our office is committed to holding accountable companies who try to take advantage of the system in these ways.”
“Diagnostic companies, like other providers, are expected to bill federal healthcare programs only for medically necessary services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who misuse taxpayer-funded programs for their own enrichment.”
“Companies that bill Medicare and other federal healthcare programs must ensure that they are billing for the services actually ordered by medical providers, rather than the most expensive service,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “This office will continue to pursue cases that will reduce costs for the government while ensuring that patients receive consistent and quality care, as prescribed by their physicians.”
“Proper billing of federal insurers is essential and underpins the reliability of our health care system,” said Deputy Inspector General for Investigations Christian J. Schrank with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG, along with our law enforcement partners, will continue to steadfastly pursue entities which fraudulently charge federal health care programs for financial gain and ensure they are held accountable.”
“Today's announcement demonstrates our ongoing commitment to work with the U.S. Department of Justice and our law enforcement partners to investigate allegations of fraud against TRICARE, the healthcare system for military members and their dependents,” stated Special Agent in Charge Patrick J. Hegarty for the Northeast Field Office of the Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General. “When healthcare providers submit claims to TRICARE for services that are excessive and medically unnecessary, they place financial pressure on the TRICARE system and undermine its integrity.”
“The VA Office of Inspector General is committed to safeguarding the integrity of VA’s healthcare programs and preserving taxpayer funds,” said Special Agent in Charge Christopher Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “We thank the DOJ Civil Fraud Section, the United States Attorney’s Offices, and our law enforcement partners for their efforts leading to today’s meaningful settlement.”
“The OPM OIG takes fraud against the Federal health care programs very seriously,” said Deputy Assistant Inspector General for Investigations Conrad J. Quarles, OPM OIG. “Our office stands ready to work with our law enforcement partners on holding unscrupulous health care providers accountable.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Michael Pelletier, an individual employed by one of LifeWatch’s customers, and SFP I LLC, whose members are Paul Davis, Charles Richardson MD MBA, and Chris Riedel. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned U.S. ex rel. Pelletier et al. v. LifeWatch Services, Inc., et al., No. 2:18-cv-11391 (D.N.J.), and United States ex rel. SFP I, LLC v. LifeWatch Corp., et al., No. 2:19-cv-2169 (E.D. Pa.). As part of today’s resolution, Pelletier will receive approximately $2.3 million, and SFP I LLC will receive approximately $270,000.
The resolution obtained in this matter was the result of a coordinated effort among the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorneys’ Offices for the District of New Jersey and the Eastern District of Pennsylvania, with assistance from HHS-OIG, the Department of Defense’s Defense Criminal Investigative Service, the Department of Veterans Affairs Office of Inspector General and the Office of Personnel Management’s Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Assistant U.S. Attorney Paul Kaufman of the District of New Jersey, Assistant U.S. Attorney Erin Lindgren of the Eastern District of Pennsylvania, and Fraud Section attorneys Amy Kossak and Jessica Sievert,
The claims resolved by the settlement are allegations only and there has been no determination of liability.
lifewatch.settlement.pdfBioTelemetry and LifeWatch to Pay More than $14.7 Million to Resolve False Claims Act Allegations Relating to Remote Cardiac Monitoring ServicesRead the Press Release
BioTelemetry Inc. and its subsidiary, LifeWatch Services Inc., headquartered in Malvern, Pennsylvania, and Rosemont, Illinois, respectively, (collectively LifeWatch), have agreed to pay more than $14.7 million to resolve allegations that they violated the False Claims Act by knowingly submitting claims to federal health care programs for a higher level of remote cardiac monitoring than physicians had intended to order or that was medically necessary, thus inflating the level of reimbursement paid to LifeWatch.
The United States alleged that, during the period July 1, 2014, through Dec. 31, 2020, LifeWatch marketed its ACT-3L device (also known as the LifeStar ACT-3L and the MCT-3L) to doctors as being capable of performing three different types of heart monitoring services: holter monitoring, event monitoring and telemetry. Of these, telemetry provided the highest rate of reimbursement. The United States contended that LifeWatch knew the design of their online enrollment portal for the ACT-3L device caused unwitting clinical staff to select options that would enroll the patient in the most expensive service, telemetry, even when the doctor intended to order a less expensive service. The United States also contended that LifeWatch’s sales personnel instructed clinical staff to select the options that resulted in patients being enrolled for telemetry services, even when the sales personnel knew the clinic’s physicians intended to order less costly services. LifeWatch also allegedly disregarded written notes that clinic personnel included in patient enrollments that specifically reflected the treating physicians’ intent to order a service other than telemetry.
“Diagnostic companies, like other providers, are expected to bill federal healthcare programs only for medically necessary services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who misuse taxpayer-funded programs for their own enrichment.”
“Our health care system is based on doctors choosing the level of care appropriate for their patients,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “It undermines this system and costs taxpayers if companies design systems that make it harder for physicians to order only necessary services and also use their sales force to mislead health care practitioners, as we allege happened here. Our office is committed to holding accountable companies who try to take advantage of the system in these ways.”
“Companies that bill Medicare and other federal healthcare programs must ensure that they are billing for the services actually ordered by medical providers, rather than the most expensive service,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “This office will continue to pursue cases that will reduce costs for the government while ensuring that patients receive consistent and quality care, as prescribed by their physicians.”
“Proper billing of federal insurers is essential and underpins the reliability of our health care system,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG, along with our law enforcement partners, will continue to steadfastly pursue entities which fraudulently charge federal health care programs for financial gain and ensure they are held accountable.”
“Today's announcement demonstrates our ongoing commitment to work with the U.S. Department of Justice and our law enforcement partners to investigate allegations of fraud against TRICARE, the healthcare system for military members and their dependents,” stated Special Agent in Charge Patrick J. Hegarty for the Northeast Field Office of the Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General. “When healthcare providers submit claims to TRICARE for services that are excessive and medically unnecessary, they place financial pressure on the TRICARE system and undermine its integrity.”
“The VA Office of Inspector General is committed to safeguarding the integrity of VA’s healthcare programs and preserving taxpayer funds,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs (VA) Office of Inspector General’s Northeast Field Office. “We thank the DOJ Civil Fraud Section, the United States Attorneys’ Offices and our law enforcement partners for their efforts leading to today’s meaningful settlement.”
“The OPM OIG takes fraud against the Federal health care programs very seriously,” said Deputy Assistant Inspector General for Investigations Conrad J. Quarles of the Office of Personnel’s Office of Inspector General (OPM OIG). “Our office stands ready to work with our law enforcement partners on holding unscrupulous health care providers accountable.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Michael Pelletier, an individual employed by one of LifeWatch’s customers, and SFP I LLC, whose members are Paul Davis, Charles Richardson, MD, MBA and Chris Riedel. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned U.S. ex rel. Pelletier et al. v. LifeWatch Services, Inc., et al., No. 2:18-cv-11391 (D.N.J.), and United States ex rel. SFP I, LLC v. LifeWatch Corp., et al., No. 2:19-cv-2169 (E.D. Pa.). As part of today’s resolution, Pelletier will receive approximately $2.3 million, and SFP I, LLC will receive approximately $270,000.
The resolution obtained in this matter was the result of a coordinated effort among the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the District of New Jersey and the Eastern District of Pennsylvania, with assistance from HHS-OIG, the Department of Defense’s Defense Criminal Investigative Service, the Department of VA Office of Inspector General and the OPM-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The matter was handled by Fraud Section attorneys Amy Kossak and Jessica Sievert, Assistant U.S. Attorney Paul Kaufman for the District of New Jersey and Assistant U.S. Attorney Erin Lindgren for the Eastern District of Pennsylvania.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Settlement AgreementMonmouth County Man Indicted for Possession of Firearm and Fraudulent Drug Enforcement Administration Credentials while Falsely Impersonating Federal Law Enforcement AgentRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was charged with being a felon in possession of a firearm and possessing fraudulent Drug Enforcement Administration credentials while impersonating a federal law enforcement agent, U.S. Attorney Philip R. Sellinger announced today.
Wesley Rucker, 36, of Tinton Falls, New Jersey, is charged by indictment with one count each of possession of a firearm by a convicted felon, false impersonation of an officer of the United States, and possession of imitation federal law enforcement credentials.
According to documents filed in this case and statements made in court:
On Oct. 22, 2021, Rucker, a previously convicted felon, sought medical treatment in the emergency room of a hospital in Red Bank, New Jersey. While administering medical assistance, hospital staff observed a handgun in Rucker’s waistband. Rucker told hospital staff, and later local police, that he was a federal law enforcement officer and displayed fraudulent credentials falsely identifying Rucker as an employee of the Drug Enforcement Administration. As a previously convicted felon, Rucker is not permitted to possess a firearm under federal law.
The count of possession of a firearm by a convicted felon carries a maximum penalty of ten years in prison and a $250,000 fine. The count of false impersonation of an officer of the United States carries a maximum penalty of three years in prison and a $250,000 fine. The count of possession of imitation federal law enforcement credentials carries a maximum penalty of six months in prison and a $5,000 fine.
U.S. Attorney Sellinger credited special agents of the ATF, Newark Division, under the direction of Special Agent in Charge Bryan Miller, with the investigation leading to the charges and arrest. He also thanked the Red Bank, New Jersey, Police Department for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s 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.
rucker.indictment.pdfReal Estate Investor Pleads Guilty to $165M Mortgage Fraud ConspiracyRead the Press Release
A New York man pleaded guilty yesterday to engaging in an extensive multi-year conspiracy to fraudulently obtain over $165 million in loans and fraudulently acquire multifamily and commercial properties.
According to court documents, between 2018 and 2020, Boruch “Barry” Drillman, 36, of New York, conspired with at least four others to deceive lenders into issuing multifamily and commercial mortgage loans. Drillman and his co-conspirators provided the lenders with fictitious documents, including purchase and sale contracts with inflated purchase prices. Drillman managed BRC Williamsburg Holdings LLC, which purchased multifamily property Williamsburg of Cincinnati in Cincinnati, Ohio, and Troy Technology Holdings LLC, which purchased commercial property Troy Technology Park in Troy, Michigan.
In March 2019, Williamsburg of Cincinnati was acquired for $70 million. However, Drillman and his co-conspirators from Rhodium Capital Advisors utilized a stolen identity to present a lender and Fannie Mae with a purchase and sale contract for $95.85 million and other fraudulent documents. On March 8, 2019, Madison Title Agency performed two closings, one for the true $70 million sales price and another for the fraudulent $95.85 million sales price presented to the lender.
In September 2020, Troy Technology Park was acquired for $42.7 million. However, Drillman and his co-conspirators presented the lender with a fraudulent purchase and sale contract for $70 million. Additionally, to support the inflated purchase price, Drillman and his co-conspirators submitted to the lender and appraiser a fraudulent letter of intent to purchase the property from another party for $68.8 million and other fraudulent documents. To conceal the fraudulent nature of the transaction, Drillman and his co-conspirators arranged for a short-term $30 million loan, which was used to make it appear that they had the funds needed to close on the loan. On Sept. 25, 2020, Riverside Abstract performed two closings, one for the true $42.7 million sales price and another for the fraudulent $70 million sales price presented to the lender.
Drillman pleaded guilty to one count of conspiracy to commit wire fraud affecting a financial institution. He is scheduled to be sentenced on April 16, 2024, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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, Inspector General Brian M. Tomney of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), and Postal Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.
The FHFA-OIG and USPIS are investigating the case.
Trial Attorneys Siji Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Martha Nye for the District of New Jersey are prosecuting the case.
Monmouth County Man Sentenced to Five Years in Prison for Laundering Money for Black Axe in South AfricaRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced to 60 months in prison for laundering money on behalf of the Cape Town Zone of Black Axe, U.S. Attorney Philip R. Sellinger announced today.
Andrew Suarez, 30, of Middletown, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an indictment charging him with money laundering conspiracy. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From August 2017 through December 2017, Suarez worked with conspirators to launder money to entities in the Cape Town, South Africa, area, including to an account in the name of Abravoo Trading Company, an entity controlled by a founding member of the Cape Town Zone of Black Axe. Black Axe members were responsible for widespread internet-based fraud schemes.
Suarez opened up bank accounts in the United States, which were then used to conceal money obtained through business email compromises and other fraud schemes. Suarez transferred the proceeds of the fraud schemes to other U.S. bank accounts and wired proceeds to bank accounts in Cape Town, South Africa. To avoid detection, Suarez changed the information on some of his bank accounts, so the accounts listed the name and address of a victim. The total loss amount attributed to Suarez’s conduct is approximately $525,000.
In addition to the prison term, Judge Shipp sentenced Suarez to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, Red Bank Office, under the direction of Special Agent in Charge James E. Dennehy in Newark, and the U.S. Secret Service’s Newark Division, under the direction of Special Agent in Charge Aaron Hatley. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, for its assistance in the case.
The government is represented by Assistant U.S. Attorney Richard G. Shephard of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Maryland Man Sentenced to 41 Months in Prison for Fraudulently Obtaining More Than $2 Million in COVID-19 Relief FundsRead the Press Release
NEWARK, N.J. – A Maryland man was sentenced today to 41 months in prison for illegally obtaining more than $2 million in COVID-19 relief funds, U.S. Attorney Philip R. Sellinger announced today.
Mohamed Kamara, 43, of Greenbelt, Maryland, previously pleaded guilty by videoconference before U.S. District Judge Esther Salas to two counts of an indictment charging him with wire fraud and conspiracy to commit wire fraud. Judge Salas imposed the sentence today in Newark federal court.
U.S. Attorney Philip R. Sellinger“The defendant was sentenced today for submitting falsified applications to the government to obtain business loans to which he was not entitled. These relief programs were set up to provide financial help to Americans who were struggling to cope with the COVID-19 pandemic. Trying to turn them into a cash machine for personal benefit will only earn you what this defendant got today – a prison sentence.”
“Criminals have shown over and over again they will find ways to steal money that isn't theirs in times of crisis, like a hurricane, war, and in this case COVID,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Kamara admitted he lied when applying for federal loans meant for struggling business owners who were forced to close their doors during the height of the pandemic. Fraudsters should stop assuming with so much red tape, and so much money being offered that they won't get caught. We found Kamara, and we'll continue to find others who thought the same thing.”
According to documents filed in the case and statements made in court:
From March 2020 to October 2020, Kamara and others made fraudulent applications to the Small Business Administration (SBA) for Economic Injury Disaster Loans (EIDL) using information belonging to other individuals and entities without their knowledge and consent. They also opened bank accounts using fraudulent documents. Kamara and his conspirators caused the SBA to grant fraudulent applications and send the proceeds of those loans to the fraudulent bank accounts by wire communication. Kamara then deposited or attempted to deposit checks from fraudulent bank accounts into a bank account in his name. Kamara and his conspirators fraudulent EIDL applications caused the SBA to provide more than $750,000 in EIDLs.
From January 2020 to September 2020, Kamara also submitted fraudulent applications to the state of New Jersey and six other states for unemployment insurance benefits using the names, dates of birth, and/or Social Security numbers of other individuals. The states provided more than $1 million, including funds to an account Kamara controlled, in response to these fraudulent applications.
In addition to the prison term, Judge Salas sentenced Mohamed 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, and special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Jonathan Mellone in New York, with the investigation leading to the sentencing. He also thanked the FBI Baltimore Field Office; the Small Business Administration, and the New Jersey Department of Labor & Workforce Development for their assistance.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Florida Man Charged with Health Care Fraud, Wire Fraud, and Kickback ConspiracyRead the Press Release
NEWARK, N.J. – A Florida man was arraigned today on charges relating to his role in a scheme to defraud Medicare by billing for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Eric Van Vleet, 28, of Delray Beach, Florida, is charged in an eight-count indictment with conspiracy to commit health care fraud and wire fraud, health care fraud, conspiracy to violate the federal anti-kickback statute, and payment of illegal kickbacks. Van Vleet appeared today before U.S. District Judge Esther Salas in Newark federal court and was released on $100,000 unsecured bond.
According to the indictment:
From February 2018 to September 2019, Van Vleet operated Hype Med LLC, which generated medically unnecessary prescriptions through a telemarketing and telemedicine scheme. As part of the health care, wire fraud, and kickback conspiracy, Van Vleet and Hype Med identified Medicare beneficiaries to target for expensive drugs. Call center employees contacted the beneficiaries by telephone to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, migraine medication, as well as a combination of prescription medications intended to be used as a “foot soak.” Van Vleet and Hype Med then transmitted recordings of telephone calls with the beneficiaries, together with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. Hype Med paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions.
Van Vleet then directed the prescriptions to pharmacies, including Apogee Bio-Pharm LLC, located in Edison, New Jersey, with which Hype Med had a kickback arrangement. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare. The pharmacies, including Apogee, then paid a portion of each reimbursement to Hype Med as a kickback. Van Vleet and Hype Med received at least $343,684 in kickback payments from the owners of Apogee. The principals of Apogee – William Welwart, Ethan Welwart, and Gary Kaczka – are charged with health care fraud and related offenses in a separate indictment. Elan Yaish, former president of Apogee, previously pleaded guilty to an information charging conspiracy to violate the federal anti-kickback statute.
The health care fraud and wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison; the health care fraud charges carry a maximum potential penalty of 10 years in prison; the charge of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years in prison; and the charges of payment of illegal kickbacks are punishable by 10 years in prison. All of the counts are 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 U.S. 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 Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, and the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark.
The charges and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
vanvleet.indictment.pdfBank Employee Charged with Stealing Federal Benefits Intended for Deceased CustomerRead the Press Release
NEWARK, N.J. – An employee of an Essex County, New Jersey, bank was charged with fraudulently withdrawing federal retirement benefits from the account of a former customer who had died, U.S. Attorney Philip R. Sellinger announced today.
Jorge Nova, 35, of Passaic, New Jersey, is charged by indictment with one count of wire fraud. He appeared today before U.S. Magistrate Judge Michael A. Hammer and was on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In 2014, Nova was an employee at a commercial bank in Nutley, New Jersey, where a customer received Social Security Administration (SSA) retirement benefits via direct deposit. The Social Security Administration was not notified of the beneficiary’s death and continued to deposit retirement benefits into the beneficiary’s bank account for more than four years, until October 2018. Nova fraudulently obtained funds from the beneficiary’s account by causing debit cards to be issued to himself in the beneficiary’s name, which he then used to drain the retirement benefits from the beneficiary’s bank account. Nova also registered new accounts with a money service provider in the name of the deceased beneficiary and withdrew money from a second bank account held in the beneficiary’s name. Nova fraudulently obtained more than $105,000 intended for the deceased beneficiary.
The count of wire fraud is punishable by a maximum penalty of 30 years in prison and a maximum $1 million fine.
U.S. Attorney Sellinger credited 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, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Rachelle M. Navarro of the Organized Crimes and Gang 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.
nova.indictment.pdfUnion County Man Sentenced to 407 Months in Prison for Multiple Armed Robberies and Firearms OffensesRead the Press Release
NEWARK, N.J. – A Union County man was sentenced today to 407 months in prison for participating in a multi-state armed robbery spree that spanned several months, U.S. Attorney Philip R. Sellinger announced.
Vincent Chan-Guillen, 33, was convicted on March 8, 2023, of conspiracy to commit Hobbs Act robbery, conspiracy to use and carry a firearm during a Hobbs Act robbery, three counts of Hobbs Act robbery, one count of attempted Hobbs Act robbery, three counts of brandishing a firearm during a Hobbs Act robbery, and unlawful possession of a firearm by a convicted felon. Chan-Guillen was convicted following a one-week trial before U.S. District Judge Stanley R. Chesler, who imposed the sentence today in Newark federal court.
According to court documents and evidence presented at trial:
Chan-Guillen committed nine armed robberies between August 2018 and November 2018 – five in New York and four in New Jersey. During each robbery, Chan-Guillen brandished a firearm, which he pointed at store employees and customers. The New Jersey robberies victimized liquor stores in Elizabeth, Woodbridge Township, Bloomfield, and Linden.
In addition to the prison term, Judge Chesler sentenced Chan-Guillen to five years of supervised release.
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 conviction. He also credited the Elizabeth, Rahway, Woodbridge, Bloomfield, Linden, Kenilworth, Union, and Lyndhurst police departments; the New Jersey State Police; the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division; and the New York Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Desiree Grace, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney John F. Mezzanotte of the Organized Crime/Gangs Unit in Newark.
Two South Jersey Men Charged for Roles in Dog Fighting RingRead the Press Release
NEWARK, N.J. – Two South Jersey men have been charged for their participation in a dog-fighting ring that involved the “DMV Board,” a Telegram-based dog fighting collective, spanning several states, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Todd S. Kim of the Environment and Natural Resources Division of the U.S. Department of Justice announced today.
According to documents filed in this case and statements made in court:
Tommy J. Watson, aka “Snakes,” 43, of Clayton, New Jersey, and Johnnie Lee Nelson, aka “Johnny,” 34, of Bridgeton, New Jersey, conspired with others to violate the Animal Welfare Act, by fighting, training, transporting, and possessing pit bull-type dogs in dog-fighting ventures, from August 2017 through March 2019. Watson and others conducted a dog-fighting operation known as “From Da Bottom Kennels,” which posted bloodline information of fighting dogs owned by the kennel on the dog fighting website “Peds Online.” Watson and others also used the “DMV Board” to transmit videos of live dog fights, of training dogs for fights, and of the killing of underperforming fighting dogs, including by hanging.
In separate Animal Welfare Act counts, Watson is charged with fighting two pit bull-type dogs in dog fights on December 2, 2018. He is also charged with transporting a third dog, Rambo, along with do-it-yourself veterinary equipment, such as a skin stapler, to a location on Center Road in Upper Deerfield Township, New Jersey, for a dog fight on March 23, 2019. Law enforcement officials prevented that dog fight from occurring. At that location, law enforcement discovered, concealed in a car, two other dogs that had already fought. Both Watson and Nelson are charged with possessing and training Rambo for the March 23 fight.
Watson is also charged with one count of possession of ammunition by a convicted felon.
Watson surrendered today and is scheduled to appear before U.S. Magistrate Judge Sharon A. King in Camden federal court. Nelson was arrested Dec. 5, 2023, and appeared before Judge King.
The Animal Welfare Act counts, and the count of conspiracy to violate that statute, each carry a maximum penalty of five years in prison and a fine of $250,000. The count of being a felon in possession of ammunition carries a maximum penalty of 10 years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger and Assistant Attorney General Kim credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso; the U.S. Department of Agriculture, Office of Inspector General, under the supervision of Acting Special Agent in Charge Charmeka Parker; and the FBI, under the direction of Special Agent in Charge Wayne A. Jacobs in Philadelphia, with the investigation leading to the charges. They also thanked detectives with the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, for their assistance with the investigation.
The government is represented by Deputy Chief Desiree Grace and Assistant U.S. Attorney Kathleen P. O’Leary of the Criminal Division of the U.S. Attorney’s Office and Senior Trial Attorney Ethan Eddy of the U.S. Department of Justice, Environmental Crimes Section.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
watsonetal.sindictment.pdfBronx Man Sentenced to 12 Months and One Day in Prison for Nationwide Credit Card Fraud Affecting Thousands of Account HoldersRead the Press Release
NEWARK, N.J. – A manager for a conspiracy that used stolen credit card information to make fraudulent retail purchases around the United States was sentenced today to 12 months and one day in prison, U.S. Attorney Philip R. Sellinger announced.
Trevor Osagie, 32, of the Bronx, New York, previously pleaded guilty before U.S. District Judge William Martini to an information charging him with one count of conspiracy to commit bank fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From at least 2015 through November 2018, Osagie conspired with a network of individuals based in the New Jersey/New York area who made trips around the United States in order to use stolen credit card information to purchase gift cards, flights, hotels, rental cards, and other goods and services. Other participants in the conspiracy obtained stolen credit card information through the “dark web” and other sources. In addition to recruiting at least one individual to create the fraudulent credit cards, Osagie managed the individuals who traveled around the United States conducting the fraudulent transactions. The conspirators made over $1.5 million in fraudulent purchases using over 4,000 stolen credit card accounts.
In addition to the prison term, Judge Martini sentenced Osagie to three years of supervised release and ordered to pay $1.43 million in restitution.
U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Aaron Hatley, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shawn Barnes, Chief of the OCDETF/Narcotics Unit in Newark.
West New York Financial Advisor Convicted on 11 Counts at Trial in Multimillion-Dollar Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A West New York financial advisor was found guilty on 11 counts of defrauding public health insurance plans out of more than $4 million and transacting in the criminal proceeds, U.S. Attorney Philip R. Sellinger announced today.
Kaival Patel, 54, of West New York, New Jersey, was convicted on Dec. 7, 2023, of one count of conspiracy to commit wire fraud and health care fraud, four counts of health care fraud, one count of conspiracy to commit money laundering by transacting in criminal proceeds, and five counts of money laundering by transacting in criminal proceeds following an 11-day trial before U.S. District Judge Robert B. Kugler.
U.S. Attorney Philip R. Sellinger“This defendant lined his own pockets by taking advantage of health insurance plans for New Jersey state and local government employees, defrauding them of millions of dollars by conspiring to obtain reimbursements for medically unnecessary compound prescription medications. Together with our law enforcement partners, we will continue to investigate and prosecute those who abuse and defraud the health care system.”
“Filing false compound medication claims and pocketing the reimbursements isn't a new scheme,” FBI – Newark Special Agent in Charge James E. Dennehy said. “For years now, the FBI Newark and our law enforcement partners have doggedly investigated and brought to justice dozens of others who defrauded healthcare companies, state and federal government agencies, and taxpayers. Yet, these criminals don't seem to learn the lessons of those who tried to steal what isn't theirs and get rich off the backs of the hardworking public. Our hope is anyone thinking of using a similar plan realizes they will get caught, and they will go to federal prison along with Patel.”
“The defendant enriched himself by defrauding the New Jersey public health insurance plans out of more than $4 million,” Tammy L. Tomlins, Special Agent in Charge of IRS – Criminal Investigation, Newark Field Office, said. “Today’s conviction is the result of the great investigative work of IRS-CI Special Agents and our law enforcement partners and their commitment to protect the integrity of our health care systems.”
According to documents filed in this case and the evidence at trial:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Compounded medications require a prescription from a physician.
Patel created and operated a company called ABC Healthy Living LLC to market compound prescription medications. Patel and his conspirators learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compound medications such as vitamins, scar creams, pain creams, libido creams, and acid reflux medications. Patel and a conspirator approached Patel’s family member, a medical doctor who owns and operates a clinic in Newark, New Jersey, and convinced him to authorize prescriptions for the compound medications for patients who had no medical need for the prescriptions. Patel received commissions for the compound medication prescriptions.
Patel and his conspirators paid a group of corrections officers to go to Patel’s family member’s medical practice for the purpose of receiving fraudulent prescriptions. Patel conspired with a compounding pharmacist to add unnecessary ingredients to the compound medications to further increase their cost and augment his illicit profits. Patel engaged in a series of financial transactions to receive proceeds from the health care fraud and wire fraud conspiracy.
To date, approximately 47 people have been convicted or pleaded guilty in the overarching conspiracy.
On the count of conspiracy to commit wire fraud and health care fraud, Patel faces a maximum penalty of 20 years in prison and a fine of $250,000 fine, or twice the gross pecuniary loss from the offense, whichever is greatest. On each of the remaining 10 counts, he faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross pecuniary gain or loss from the offense, whichever is greatest. Sentencing is scheduled for April 10, 2024.
U.S. Attorney Sellinger credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman of the Criminal Division in Camden and DeNae M. Thomas of the Health Care Fraud Unit.
Monmouth County Man Sentenced to 20 Years in Prison for Making Threatening Communications and Calling in False Bomb ThreatsRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 240 months in prison for making threatening telephone and email communications to New Jersey state officials, judges, law enforcement officers, and attorneys, and phoning in false bomb threats to local and state government offices, a police department, two law firms and a commercial establishment, U.S. Attorney Philip R. Sellinger announced.
Eric G. Hafner, 32, formerly of Monmouth County, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp on May 17, 2022, to one count of making threating communications in interstate or foreign commerce with intent to extort, one count of making threatening communications in interstate or foreign commerce, and one count of conveying false information concerning the use of an explosive device. U.S. District Judge Zahid N. Quraishi imposed the sentence today in Trenton federal court.
U.S. Attorney Philip R. Sellinger“This defendant repeatedly targeted public servants—elected representatives, judges, and law enforcement officials—and private citizens with threats and attempts at extortion. He further victimized these public officials, private citizens, and the public generally by calling in numerous false bomb threats to a courthouse, a police department, law firms, businesses, and an elected official’s office. These types of threating communications are unacceptable. They cause serious harm to victims, and will be met with a swift response by this Office. This defendant has now faced justice for these serious crimes.”
According to documents filed in this case and statements made in court:
Between July 2016 and May 2018, while residing outside the United States, Hafner communicated threats to numerous individuals located in and around Monmouth County and elsewhere. The victims were elected officials, judges, police officers, attorneys, and their families. Hafner sought to extort $350,000 from some of his victims. Hafner also made false bomb threats to an elected official’s office, a county courthouse, a police department, two law firms, and a commercial establishment.
In addition to the prison term, Judge Quraishi sentenced Hafner to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s sentencing. He also thanked detectives of the Monmouth County Prosecutor’s Office; officers of the Monmouth County Sheriff’s Office; New Jersey State Police; the Bradley Beach Police Department; Fairhaven Police Department; Aberdeen Police Department; the Hazlet Police Department; Shrewsbury Police Department; the Red Bank Police Department; the Freehold Township Police Department; the Middletown Police Department; the Neptune Township Police Department; the Oceanport Police Department; the Deal Police Department; and the Manasquan Police Department for their assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton and R. Joseph Gribko, Deputy Chief of the Civil Rights Division.
Chief Executive Officer Admits False Statements to Conceal Foreign Origin of Forklifts Provided to U.S. ArmyRead the Press Release
TRENTON, N.J. – The chief executive officer of a Passaic, New Jersey, company today admitted falsifying data plates on forklifts provided to the U.S. Army to make it appear as if the forklifts, which were purchased in China, had been manufactured in the United States, U.S. Attorney Philip R. Sellinger announced.
James Cai, 33, of Hackensack, New Jersey, pleaded guilty before U.S. District Judge Robert A. Kirsch in Trenton federal court to an information charging him with one count of making false statements in connection with the provision of two forklifts to a U.S. Army installation, Fort Cavazos, in Killeen, Texas.
According to documents filed in this case and statements made in court:
From September 2018 to January 2019, Cai, through his company, Toner Connect LLC, submitted bids on, and obtained, contracts to supply various U.S. Army installations with forklifts. The contracts required that the forklifts be compliant with the Buy American Act (BAA), that is, the forklifts had to be manufactured in the United States and at least 50 percent of the cost of the forklift components had to be of U.S. origin.
One of those contracts awarded Toner Connect LLC $247,000 for the provision of two FD150 diesel forklifts to Fort Cavazos. Despite the BAA clause in that contract, and in order to reduce costs, Cai purchased the two forklifts from a company based in Shanghai, China. To conceal the origin of the forklifts and make them appear compliant with the BAA, Cai installed data plates on the forklifts that falsely stated:
Final Assembly in the USA
Millennial Enterprise LLC
Newark, NJ 07102
North American Headquarters
After the forklifts were delivered to Fort Cavazos on Aug. 26, 2019, Fort Cavazos personnel discovered that the forklifts had multiple operational problems and could not be repaired due to the concealment of their true make and model.
The charge to which Cai pleaded guilty carries a maximum penalty of five years in prison and a maximum fine of $250,000. Sentencing is scheduled for April 11, 2024.
U.S. Attorney Sellinger credited special agents of the U.S. Army, Criminal Investigation Division, Major Procurement Fraud Field Office, under the direction of Assistant Special Agent in Charge Michael Curran; and special agents of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the Economic Crimes Unit.
cai.information.pdfBurlington County Man Admits Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Al-Fahim Medina, 24, of Willingboro, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with possession of child pornography.
According to documents filed in this case and statements made in court:
From Jan. 31, 2020, through June 12, 2020, Medina possessed mobile phones and a tablet, which contained multiple images of child sexual abuse, including children under age 12 and sadistic and masochistic conduct or other depictions of violence or sexual abuse or exploitation involving an infant or toddler.
The count of possession of child pornography carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for April 10, 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.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the Camden Office.
medina.information.pdfBergen County Public Relations Company Settles Allegations It Received Improper Paycheck Protection Program LoanRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, public relations firm entered a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by taking a loan from the Paycheck Protection Program (PPP) to which the company was not entitled, Attorney for the United States Vikas Khanna announced today.
Congress created the PPP in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial support to millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses.
According to the allegations in the complaint and the contentions of the United States in the settlement agreement:
MWW Group LLC, which does business as MikeWorldWide (MWW), applied for and received a PPP loan totaling $2 million even though it was ineligible for such a loan because it was a required registrant under the Foreign Agent Registration Act. MWW thereafter sought and received forgiveness of the total amount of the loan.
MWW fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement agreement, MWW has agreed to pay the United States $2.29 million, plus interest. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $229,000 as his share in the recovery.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The qui tam case is captioned United States ex rel. Forsyth v. MWW Group LLC, Civil Action No. 23-299 (D.N.J.).
mww.settlementpdf.pdfFormer Owner of New Jersey Marketing Company Sentenced to 15 Months in Prison for Role in $6 Million Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – The former owner of a New Jersey marketing company was sentenced today to 15 months in prison for his role in a scheme to defraud public and private health benefits programs of over $6 million for the billing of medically unnecessary compounded prescriptions, U.S. Attorney Philip R. Sellinger announced today.
Michael Drobish, 46, of Cedar Grove, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to commit health care fraud. U.S. District Judge Katharine S. Hayden imposed the sentence today in Newark federal court.
U.S. Attorney Philip R. Sellinger“This defendant exploited the health care system by taking advantage of reimbursements for compounded medications that were enormously expensive but medically unnecessary. This defendant has now been held accountable for his role in the criminal conspiracy. These compounding fraud schemes cause millions in losses to the health care system with zero benefit to beneficiaries. We will continue to combat this kind of health care fraud with our law enforcement partners.”
“The sentencing announced today demonstrate our commitment to investigate individuals who defraud TRICARE, the healthcare system for military members and their families,” Special Agent in Charge Patrick J. Hegarty in the Northeast Field Office of the Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General, said. “Schemes to bill TRICARE for medically unnecessary services put our beneficiaries at risk and burden the TRICARE program. We will continue to partner with the U.S. Attorney’s Office and the FBI to protect the integrity of the TRICARE system.”
According to documents filed in this case and statements made in court:
Compounding is a practice in which a pharmacist or physician combines, mixes, or alters ingredients of a drug to create a medication tailored to the needs of an individual patient. The Food and Drug Administration does not approve compounded drugs and thus does not verify the safety, potency, effectiveness, or manufacturing quality of compounded drugs. Generally, a physician may prescribe compounded drugs when an FDA-approved drug does not meet the health needs of a particular patient.
From April 2014 to January 2017, Drobish conspired with others to submit fraudulent prescriptions for compounded medications to public and private insurance plans. The scheme centered on the discovery that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates.
Drobish hired sales representatives through his marketing company to target individuals who had insurance plans that covered compounded medications. The sales representatives then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. The individuals were then directed to certain telemedicine companies, which the marketing company or its affiliates paid to issue the prescriptions. The prescribing physicians at the telemedicine companies would then write the prescriptions without performing any examination or after deliberately conducting cursory examinations that were insufficient to legitimately deem a compounded drug medically necessary.
Once the prescriptions were written, they were filled by certain compounding pharmacies with which Drobish conspired. The compounding pharmacies would then receive reimbursement from the insurance plans, and would pay Drobish’s marketing company a percentage of the reimbursement amount. Drobish would retain a portion of the payment and provide a “commission” payment to the relevant sales representative.
In addition to the prison term, Judge Hayden sentenced Drobish to three years of supervised release. As part of his plea agreement, Drobish must forfeit $532,650 in criminal proceeds and pay restitution of approximately $6.1 million.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Hegarty, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jordann Conaboy of the Opioid Abuse and Prevention Unit in Newark.
U.S. Attorneys Office for District of New Jersey and Justice Department’s Civil Rights Division File Statement of Interest in Religious Land Use Case Involving Orthodox Jewish CongregationRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Rights Division and filed a statement of interest today in the U.S. District Court for the District of New Jersey explaining that an Orthodox Jewish congregation’s claims under the Religious Land Use and Institutionalized Persons Act (RLUIPA) are ready to be decided in federal court.
U.S. Attorney Philip R. Sellinger“The U.S. Attorney’s Office is committed to ensuring that all religious communities in our District have the ability to worship freely and without discrimination. We will continue our work to enforce RLUIPA, and to ensure that local boards apply the law fairly and correctly so that communities of faith may exercise their fundamental rights and that their land use applications are not unlawfully denied on the basis of their religion or in a manner that unlawfully burdens the free exercise of religion.”
“RLUIPA is designed to ensure that religious groups of all faiths do not face unjust barriers when seeking to establish places to worship,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Local land use boards cannot unfairly or discriminatorily deny a religious group’s application to use land for religious purposes. When local officials use the guise of zoning restrictions to block or restrict religious groups, this not only contravenes our nation’s commitment to religious freedom, it also violates federal law.”
The statement of interest was filed in Chai Center for Living Judaism v. Township of Millburn, a lawsuit alleging that the denial of an Orthodox Jewish congregation’s application to build a synagogue imposed a substantial burden on the congregation’s religious exercise, discriminated against the congregation based on its religion, unreasonably limited its religious assembly, and treated it worse than comparable secular uses. The lawsuit also alleges that certain parts of the township’s land-use regulations, including its requirement that houses of worship be located on lots at least three acres in size, violate RLUIPA. The township filed a motion, arguing that the RLUIPA claims should be dismissed based on a state-law standard used by New Jersey state courts to review zoning decisions. The motion also argues that the RLUIPA claims are not ready to be heard in federal court because the zoning denial was based on procedural grounds.
The statement of interest explains that the congregation’s claims must be evaluated based on the statutory elements laid out in RLUIPA, and that state-law standards of review do not apply to RLUIPA claims. The statement of interest also argues that the congregation’s RLUIPA claims are ready to be adjudicated by the federal court because the township reached a final decision on the zoning application, which inflicted an injury on plaintiffs by preventing them from using their land for their religious needs.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
As part of this initiative, the U.S. Attorney’s Office and the Justice Department’s Civil Rights Division have obtained relief under RLUIPA to combat antisemitism, including in Woodcliff Lake and Toms River, New Jersey. The U.S. Attorney’s Office and Civil Rights Division have also enforced RLUIPA to combat other forms of religious discrimination, including securing a consent decree to allow the Islamic Society of Basking Ridge build a mosque in Bernards Township, New Jersey, as well as filing Statements of Interest on behalf of legal positions put forward by a Muslim congregation in Vineland, New Jersey, and a Native American tribe, in Mahwah, New Jersey. Additionally, the Department recently hosted an outreach forum with religious leaders at Seton Hall Law School in Newark, New Jersey, on combating religious discrimination under RLUIPA, and plans to hold additional outreach events in the coming months.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Division at (855) 281-3339 or the Civil Rights Division’s Housing and Civil Enforcement Section at (833) 591-0291 or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, can be found at www.justice.gov/crt/about/hce/rluipaexplain.php.
The government is represented by Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Civil Rights Division and Trial Attorneys from the Justice Department’s Civil Rights Division, Housing and Civil Enforcement Section.
millburn.statementofinterest.pdfTwo Men Sentenced to Prison for Shooting Taxi Driver During RobberyRead the Press Release
CAMDEN, N.J. – Two New Jersey men have been sentenced to prison for their roles in shooting a taxi driver during a late-night robbery, U.S. Attorney Philip R. Sellinger announced today.
Walter Williams-Lang, 22, of Elizabeth, New Jersey, was sentenced today to 87 months in prison and Naeem Jackson, 24, of East Orange, New Jersey, was sentenced on Nov. 29, 2023, to 103 months in prison. Both defendants previously pleaded guilty to informations charging them with one count each of attempted Hobbs Act robbery, conspiracy to use and possess a firearm during and in relation to a crime of violence and possession of a firearm by a convicted felon. Jackson also pleaded guilty to one count each of Hobbs Act robbery and carjacking. Both defendants were sentenced by U.S. District Judge Robert Kugler in Camden federal court.
According to documents filed in this case and statements made in court:
The defendants both admitted that on May 14, 2022, they brandished a loaded firearm to demand a taxi driver’s fares, and then proceeded to shoot the driver. Jackson also admitted that on May 5, 2022, he brandished a loaded firearm, demanded a taxi driver’s fares, cellphone, and wallet, and then stole the the driver’s vehicle.
In addition to the prison terms, Judge Kugler sentenced each of the defendants to three months of supervised release.
U.S. Attorney Sellinger credited the members of the Elizabeth Police Department, under the direction of Director Earl J. Graves and Police Chief Giacommo Sacca; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller, Newark Field Division, with the investigation leading to the sentencings.
The government is represented by Assistant U.S. Attorney Barry O’Connell of the OCDETF Unit in Newark.
New York Woman Sentenced to 12 Months and One Day in Prison for Bribing Mail Carriers to Steal Postal Arrow KeysRead the Press Release
NEWARK, N.J. – A New York woman was sentenced to 12 months and one day in prison for her role in a scheme to bribe mail carriers to steal postal arrow keys in order to unlock mail receptacles and to use stolen items from the mail to obtain funds fraudulently from banks, U.S. Attorney Philip R. Sellinger announced.
Halimatou Ndiaye, 28, of the Bronx, New York, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging her with one count of bribery of U.S. Postal Service mail carriers and one count of conspiracy to commit bank fraud. Judge Wigenton imposed the sentence on Nov. 28, 2023, in Newark federal court.
According to documents filed in this case and statements made in court:
Ndiaye schemed to bribe mail carriers in East Orange and Newark by offering them cash, typically $5,000, in exchange for the mail carriers giving her and another individual a postal arrow key, which could be used to access a variety of postal service mail receptacles. Ndiaye and others sought USPS arrow keys so that they could steal mail. For example, from June to July 2021, Ndiaye and the other individual drove to various locations in East Orange and Newark, where they stopped mail carriers and handed them a note indicating they would give $5,000 to the mail carrier in exchange for an arrow key.
In addition, from January 2021 to July 2021, Ndiaye conspired with others to obtain funds fraudulently from banks by using stolen checks and bank cards to draw funds from bank accounts linked to the stolen items and using the identification of others to fraudulently obtain funds.
In addition to the prison term, Judge Wigenton sentenced Ndiaye to three years of supervised release and ordered her to pay restitution of $6,361.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark under the direction of Postal Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the Special Prosecutions Division in Newark.
Gloucester County Postal Employee Admits Mail TheftRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man who worked as a postal employee admitted today stealing more than $170,000 in cash that had been sent through the mail, U.S. Attorney Philip R. Sellinger announced.
Joseph Fenuto, 51, of Blackwood, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him withone count of mail theft.
According to documents filed in this case and statements made in court:
From November 2021 to August 2022, Fenuto was employed as a U.S. Postal Service letter carrier with delivery routes in Blackwood. Fenuto was assigned to a postal route which included the Gloucester Premium Outlets in Blackwood. Fenuto accepted parcels from numerous retail establishments, which he was required to place in the mail stream for delivery to the addresses listed on the parcels. Many of these parcels contained cash, which the retail stores had received from sales of their products and goods to customers.
Fenuto admitted he had stolen more than 50 such parcels containing cash from numerous retail stores at the Gloucester Premium Outlets. Fenuto said he stole $171,110 from parcels that he was required to ensure remained in the mail stream for their delivery to a bank in Ohio.
The mail theft charge is punishable by a maximum potential penalty of five years in prison and a maximum $250,000 fine. Sentencing is scheduled for April 2, 2024.
U.S. Attorney Sellinger credited special agents with the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and investigators of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the guilty plea. He also thanked the Gloucester Township Police Department under the direction of Chief David J. Harkins for their assistance.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Office’s Special Prosecutions Division in Newark.
fenuto.information.pdfFive People Charged for Their Roles in Drug Trafficking Organization Controlled by Sex, Money, Murder Street GangRead the Press Release
NEWARK, N.J. – Five people have been charged for their respective roles in a drug trafficking organization that distributed fentanyl, heroin, and cocaine in Essex County, U.S. Attorney Philip Sellinger announced today.
The original complaint was filed on Nov. 1, 2023, and on Nov. 9, 2023, a superseding complaint was filed charging certain defendants with gun offenses based on the recovery of multiple firearms during searches that occurred when the defendants were arrested.
Fuquan Williams, 33; Dwight Dixon, 52; Nafee Patterson, 41; Jabriel Mason, 20; and Daqwuan Barkley, 29, all of Essex County, New Jersey, are charged by superseding complaint with one count of conspiracy to distribute fentanyl, heroin, and cocaine. Williams, Patterson, Mason, Barkley and Dixon made their initial court appearances before U.S. Magistrate Judge James B. Clark III in Newark federal court. Mason, Patterson, and Barkley have been ordered released on bail, while Williams, and Dixon remain detained pending trial.
Patterson is also charged with one count of possession of a firearm by a convicted felon and one count of possession with intent to distribute fentanyl and cocaine, and Williams is charged with one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
The defendants are members of a drug trafficking organization that operated an open-air narcotics market in the area of Kent and Brenner streets in Newark. The drug trafficking organization is affiliated with, and the defendants are members and associates of, the Sex, Money, Murder subset of the Bloods street gang. When the defendants were arrested, law enforcement officers recovered multiple loaded firearms and additional quantities of narcotics.
U.S. Attorney Sellinger credited special agents of the FBI under the supervision of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked detectives of the Essex County Prosecutor’s Office, under the direction of Theodore N. Stephens, II; officers of the New Jersey State Department of Corrections; detectives of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; and police officers and detectives of the East Orange Police Department, under the direction of Chief William C. Robinson, for their assistance with the investigation.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Samantha C. Fasanello and Jason Goldberg of the Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
williamsetal.scomplaint.pdfEssex County Convicted Felon Admits Involvement in Two Shootings, Possessing Firearm with Extended Magazine, and Possessing Heroin with Intent to DistributeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man admitted his involvement in two shootings, as well as illegally possessing a handgun and possessing heroin he intended to distribute, U.S. Attorney Philip R. Sellinger announced today.
Antoine Hawkins, 31, of Newark, pleaded guilty on Nov. 28, 2023, before U.S. District Judge Katharine S. Hayden to an indictment charging him with two counts of possession of ammunition by a convicted felon, one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
On Aug. 18, 2020, video surveillance footage depicted Hawkins as he fired a gun on a Newark street, striking a victim, who survived the shooting. Hawkins was also identified as the perpetrator of another shooting in Newark on Aug. 13, 2020, and cartridge casings from the locations of both shootings were a ballistics match.
On Sept. 16, 2020, law enforcement encountered Hawkins and observed what appeared to be a firearm in Hawkins’s jacket. A subsequent search of Hawkins revealed a 9-millimeter pistol, which was loaded in an extended magazine containing 19 rounds of ammunition.
A search warrant executed at Hawkins’s residence revealed, among other items, 626 glassine envelopes containing heroin and three 9-millimeter magazines.
The firearm and ammunition offenses carry maximum potential penalties of 10 years in prison, and fines of $250,000. The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison – which must run consecutively to any other sentence Hawkins receives – and a maximum potential penalty of life in prison. The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. Sentencing is scheduled for April 2, 2024.
U.S. Attorney Sellinger credited the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; members of the Newark Department of Public Safety, under the direction of Director Fritz G. Fragé; members of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the charges.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI includes the U.S. Attorney’s Office, the DEA, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole Board, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, and New Jersey Department of Corrections.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.
hawkins.indictment.pdfGang Member Sentenced to Five Years in Prison for Racketeering and Firearms ChargesRead the Press Release
NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang was sentenced today to 60 months in prison for his role in a racketeering conspiracy and for possessing firearms and ammunition as a convicted felon, U.S. Attorney Philip R. Sellinger announced.
Rahjon Cox, aka “Tsu Surf,” 32, of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to two counts of a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and possession of firearms and ammunition by a convicted felon. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2015 through Sept. 22, 2022, Cox was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in New Jersey and elsewhere. Cox held a leadership role within the enterprise. On March 18, 2017, Cox shot a firearm at a gang rival. On July 24, 2019, in Essex County, New Jersey, Cox, a convicted felon, knowingly possessed two loaded firearms.
In addition to the prison term, Judge Wigenton sentenced Cox to three years of supervised release and fined him $15,000.
U.S. Attorney Sellinger credited special agents of the DEA, under the direction of Special Agent in Charge Cheryl Ortiz; the Internal Revenue Service, Criminal Investigation (IRS-CI), under the direction of Special Agent in Charge Tammy Tomlins, and 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 Unit.
Former Airline Representatives Admit Roles in Bribery ConspiracyRead the Press Release
TRENTON, N.J. – A former airline corporate real estate director and former airline senior manager, as well as a former airline contractor, each admitted accepting bribes from a company in exchange for agreeing to assist the company obtain contracts from the airline, U.S. Attorney Philip R. Sellinger announced today.
Alok Saksena, 45, of Montclair, New Jersey, Anthony Rosalli, 44, of Burlington, New Jersey, and Lovella Rogan, 48, of Springfield, New Jersey each pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court to informations that charged them with conspiracy to commit honest services wire fraud.
U.S. Attorney Philip R. Sellinger“The defendants compromised their positions by accepting bribes in the form of hundreds of thousands of dollars’ worth of home renovations, electronics, and jewelry. Commercial bribery of this kind corrupts the fairness of our economic system. We will hold to account those who unlawfully violate their duties to further their own economic interests.”
“Federal law requires an honest bidding process because if everyone in a position of authority demanded goods and services for their approval, the cost of doing business would be astronomical and untenable,” FBI – Newark Special Agent in Charge James E. Dennehy said. “These individuals admit to taking bribes in the form of home renovations, electronics and jewelry instead of money, thinking no one would notice. Greasing someone's palm for a lucrative contract not only isn't fair, but it's also illegal.”
“The Port Authority thanks our federal partners for the collaborative work to ensure fairness within the myriad industries that operate out of our facilities and to bring these individuals to justice,” Port Authority Inspector General John Gay said.
According to documents filed in this case and statements made in court:
Rosalli, Saksena, and Rogan all held positions with the airline that enabled them to influence which companies the airline would award certain contracts to at Newark Liberty International Airport (Newark Airport). The defendants conspired to receive bribes and kickbacks from a company that provided maintenance and construction services in exchange for helping that company obtain lucrative airline contracts at Newark Airport.
In September 2021, the maintenance and construction company bid on a contract to renovate restrooms at Newark Airport. The defendants sat on the selection committee and each of them voted to award the contract to the company. In exchange for the defendants’ help in obtaining the restroom renovation contract and with the expectation that they would use their positions to help the company obtain future contracts, the company agreed to pay for significant renovations at the defendants’ personal residences, including renovating and building bathrooms, renovating a deck, installing floors and sheetrock, and renovating a kitchen. The company gave the defendants valuable items, including electronics and jewelry. The total value of the bribes paid was approximately $539,000 to Saksena; approximately $276,000 to Rosalli; and approximately $409,000 to Rogan.
The defendants also conspired with an employee of the maintenance and construction company to fraudulently inflate change orders, which amended the contract’s scope of work, to recoup some of the bribe costs. With the defendants’ knowledge and consent, the company submitted change orders, which contained fraudulently high numbers, to obtain money not legitimately earned by the company so that the company could partially fund the bribe payments to the defendants.
The defendants face a maximum sentence of 20 years in prison and a fine of up to $250,000. Sentencing for Saksena is scheduled for April 17, 2024. Sentencing for Rosalli and Rogan is scheduled for April 18, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark, investigators from the Port Authority of New York & New Jersey Office of Inspector General, under the direction of Inspector General Gay, and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorneys Katherine Calle and Francesca Liquori of the Special Prosecutions Division and First Assistant U.S. Attorney Vikas Khanna.
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rogan.information.pdfLead Inspectors for City of Trenton Admit Receiving Illegal Overtime PaymentsRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man and a Bucks County, Pennsylvania, man today admitted participating in a conspiracy to obtain overtime payments from the city of Trenton for work they did not perform by fraudulently inflating the overtime hours they claimed to have worked conducting residential lead inspections, U.S. Attorney Philip R. Sellinger announced today.
Michael Ingram, 71, of Trenton, and William Kreiss, 40, of Yardley, Pennsylvania, each pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to informations charging them with one count of conspiracy to embezzle, steal, and obtain by fraud more than $5,000 in funds from the city of Trenton.
According to the documents filed in this case and statements made in court:
Trenton’s Department of Health and Human Services (Trenton HHS) was required to provide services to identify lead sources in homes in Trenton where children had tested positive for elevated levels of lead in their blood. Beginning in approximately 2018, a New Jersey State grant funded inspections of Trenton properties identified with children with elevated blood lead levels. Trenton’s Bureau of Environmental Health (BEH), a subdivision of Trenton HHS, was responsible for performing these residential lead inspections.
Ingram, a public health investigator for BEH, and Kreiss, a registered environmental specialist for BEH, conducted residential lead inspections with other members of BEH from February 2018 through May 2022. The BEH employee to whom Ingram and Kreiss reported began directing them to bill overtime hours for work they did not perform. Ingram and Kreiss submitted their fraudulent and inflated overtime claims to this BEH employee, who then authorized overtime payments to each of them.
Ingram and Kreiss each admitted submitting claims for overtime work as directed by the BEH employee, including for work they had not performed. The two defendants also admitted they had inflated claims for overtime hours worked in connection with a meal delivery program administered by the city. Through this fraudulent overtime scheme, Ingram admitted he received $22,144 in overtime payments to which he was not entitled, while Kreiss separately admitted he received $32,806 in overtime payments to which he was not entitled.
Ingram and Kreiss each face a maximum penalty of five years in prison and maximum fine of $250,000. Sentencing for both defendants is scheduled for April 24, 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 the Environmental Protection Agency, under the direction of Special Agents in Charge Tyler Amon, Criminal Investigation Division, and Nic Evans, Office of Inspector General; and special agents of the Department of Housing and Urban Development, under the direction of Acting Special Agent in Charge Janine Rocheleau, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Branch Office, under the supervision of the Special Prosecutions Division.
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ingram.information.pdfGerman Man Admits Traveling to New Jersey to Engage in Sexual Activity with MinorRead the Press Release
NEWARK, N.J. – A German man today admitted traveling from Germany to New Jersey in order to engage in illicit sex acts with a minor, U.S. Attorney Philip R. Sellinger announced.
Christian Stefan Walther, 39, of Erfurt, Germany, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of travel with intent to engage in illicit sexual conduct.
According to documents filed in this case and statements made in court:
Law enforcement authorities have been investigating Walther since January 2023 for child exploitation offenses. Two undercover officers communicated with Walther via email, phone, and an encrypted messaging app concerning Walther’s desire for sexual encounters with young children. During the investigation Walther sent an undercover officer two videos, each of which depicted children being sexually abused. Walther also expressed his desire to engage in sexual conduct with children aged 8 to 12. On March 23, 2023, Walther traveled from Germany to New Jersey to meet the undercover officers in advance of what he believed would be a sexual encounter with one or more children at a hotel.
The charge of interstate travel with intent to engage in illicit sexual conduct carries a maximum statutory penalty of 30 years in prison and a maximum fine of $250,000. Sentencing is scheduled for April 10, 2024.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the guilty plea. He also thanked the New Jersey State Police, under the leadership of Col. Patrick J. Callahan, for its assistance.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Opioid Abuse Prevention and Enforcement Unit in Newark.
walther.information.pdfOcean County Felon Sentenced to 20 Years in Prison for Drug Trafficking, Firearm Possession, and Possessing Firearm in Furtherance of Drug TraffickingRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 240 months in prison for his conviction on drug and weapon charges, U.S. Attorney Philip R. Sellinger announced.
Dyshawn Moss, 42, of Manchester, New Jersey, was convicted on Oct. 27, 2022, following a four-day trial before U.S. District Judge Michael A. Shipp on five charges: possession with intent to distribute fentanyl, possession with intent to distribute heroin, possession with intent to distribute cocaine, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents in this case and evidence at trial:
On May 24, 2019, law enforcement agents went to arrest Moss outside of his apartment building in Manchester, New Jersey. Inside his apartment, Moss possessed over 1,000 grams of fentanyl, over 1,300 grams of heroin, and over 2,600 grams of cocaine; drug-packaging materials; over $150,000 in cash; and a 9mm Taurus handgun loaded with 10 rounds of ammunition.
In addition to the prison term, Judge Shipp sentenced Moss to 10 years of supervised release.
U.S. Attorney Sellinger credited members of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorneys Vera Varshavsky and Olta Bejleri of the Criminal Division in Newark.
New York Man Admits Tax Evasion over Several YearsRead the Press Release
TRENTON, N.J. – A New York man today admitted evading personal income taxes for the tax years 2016 through 2018, U.S. Attorney Philip R. Sellinger announced.
Khuram Raja, 37, of Locust Valley, New York, pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court to an information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
During tax years 2016, 2017, and 2018, Raja owned and operated a company that provided construction and building services. Raja earned income from the company, and filed business tax returns for the company for tax years 2016 and 2017 that materially understated the company’s income. Raja failed to report certain taxable income that the company received in cash and checks cashed at check-cashing facilities, and deducted expenses from the company’s reported income that included certain personal expenses that were not, in fact, expenses of the company. Raja failed to file business tax returns for tax year 2018 by the applicable deadline. Raja did not file personal income tax returns for tax years 2016, 2017, and 2018 by the applicable deadlines, and failed to report the income from the company that would have flowed through to his personal income tax returns. As a result of this conduct, Raja evaded $543,815 in personal income taxes for tax years 2016, 2017, and 2018.
The charge of tax evasion carries a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gross pecuniary gain or loss, whichever is greatest. Sentencing is scheduled for April 16, 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 Katherine M. Romano of the U.S. Attorney’s Office Health Care Fraud in Newark.
rajainformation.pdfThree Men Charged with String of Violent Armed Robberies in Passaic CountyRead the Press Release
NEWARK, N.J. – Three New Jersey man were charged in connection with their respective roles in a series of armed robberies in Passaic County, New Jersey, in August 2022, U.S. Attorney Philip R. Sellinger announced today.
Kareem Powell, 30, of Willingboro, New Jersey, is charged by superseding indictment with two counts of Hobbs Act robbery and two counts of brandishing a firearm during and in relation to a crime of violence. Following his arrest on Nov. 21, 2023, Powell made his initial appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was detained.
Powell’s co-defendants, Carlos Diaz, 30, and Edward Porter, 30, both of Paterson, New Jersey, previously were charged by indictment with three counts of Hobbs Act robbery and three counts of brandishing a firearm during and in relation to a crime of violence. The superseding indictment charges Diaz and Porter with an additional count of Hobbs Act robbery as well as an additional count of brandishing a firearm during and in relation to a crime of violence.
According to documents filed in this case and statements made in court:
On the evening of Aug. 22, 2022, Powell, Diaz, and Porter robbed a Passaic bodega of several thousand dollars while pointing their guns at a victim and threatening to kill him. Later that same evening, Powell, Diaz, and Porter also robbed a Paterson business of several thousand dollars. During both robberies, Powell, Diaz, and Porter menaced customers with handguns and ordered them to lie on the ground.
On the evening of Aug. 23, 2022, Diaz and Porter robbed a Passaic liquor store of several thousand dollars at gunpoint. While inside the store, Porter used his gun to pistol-whip a victim on the face. Later that evening, Diaz and Porter committed an additional gunpoint robbery of a business in Paterson. While inside the store, Porter pushed one victim and wrestled with a different victim, dragging the victim to the floor while attempting to take the victim’s handbag.
Each count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be served consecutively to any other sentence imposed. Hobbs Act robbery carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
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 Sheriff Richard Berdnik, the Passaic Police Department, under the direction of Police Chief Luis A. Guzman, and the Paterson Police Department, under the direction of Officer in Charge Isa Abbassi, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Garrett Schuman of the Criminal Division in Newark.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
powell.sindictment.pdfDoctor and Wife Admit Genetic Testing Kickback and Bribery SchemeRead the Press Release
TRENTON, N.J. – A Pennsylvania doctor and his wife have admitted their roles in schemes to solicit and receive kickbacks and bribes in exchange for ordering genetic tests, U.S. Attorney Philip R. Sellinger announced today.
Yitzchok “Barry” Kurtzer, 63, and his wife, Robin Kurtzer, 62, both of Monsey, New York, pleaded guilty this week before U.S. District Judge Zahid N. Quraishi in Trenton to an indictment charging them with conspiracy to violate the Federal Anti-Kickback Statute. Two of Barry Kurtzer’s employees, Amber Harris and Shanelyn Kennedy, have each pleaded guilty for their roles in the kickback scheme, and Dr. Lee Besen and Kimberly Schmidt have also each pleaded guilty for a related cash-for-genetic tests scheme. Sentencings for each of those defendants is pending.
U.S. Attorney Philip R. Sellinger“The defendants admitted that they and others worked together to solicit and accept kickbacks in exchange for referring expensive tests to particular labs. Bribes and kickbacks have no place in a doctor’s office. Patients need to be sure that their doctor is acting in their interest, uncorrupted by the promise of lucrative bribes and kickbacks. This office is always ready to work with our law enforcement partners to ensure that those who violate the Anti-Kickback Statute are held accountable.”
“Patients trust their doctors because those doctors swear to an oath to do no harm,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Ripping off the federal government may not have a direct impact on the patient. It does, however, erode the faith we all have in the healthcare industry, and causes costs to go up for us all. Criminals forget there is a paper trail, and our job in the FBI is to follow it until we catch the culprit.”
“When patients visit their doctor, they expect medical decisions to be made in the best interest of their health,” Tammy Tomlins, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “These defendants allowed greed to become a part of their medical decision making which the IRS and our law enforcement partners will not tolerate.”
“Kickbacks impose hidden costs on the health care system and compromise medical decision-making,” Maureen R. Dixon, Special Agent in Charge with the U.S. Department of Health and Human Services Office of the Inspector General, said. “We take allegations of kickbacks and bribery seriously, and today’s guilty pleas reflect our commitment to working with our law enforcement partners to ensure the integrity of federal health care programs."
According to documents filed in this case and made in Court:
Barry Kurtzer was a primary care physician with offices in the Scranton, Pennsylvania, area. Robin Kurtzer helped manage those offices. Beginning in 2018, Barry Kurtzer and Robin Kurtzer solicited and received monthly cash kickbacks and bribes in exchange for collecting DNA samples from Medicare patients and sending them for genetic tests to clinical laboratories in New Jersey and Pennsylvania. The Kurtzers used their employees in the scheme, including Harris and Kennedy, who each helped collect the DNA swabs in exchange for payments to them. The cash kickbacks ranged up to $5,000, and the Kurtzers typically accepted the cash in one of Barry Kurtzer’s offices, at times behind locked doors. At one point, the Kurtzers complained that they were not getting paid enough and negotiated for higher kickbacks and bribes.
As a result of these schemes, Medicare was billed over $1.3 million for tests generated from Barry Kurtzer’s practice.
The charge of conspiracy to violate the Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison, and a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 28, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Special Agent in Charge James E. Dennehy in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and U.S. Department of Health and Human Services, Office of Inspector General, Philadelphia Regional Office, under the direction of Special Agent in Charge Maureen R. Dixon, with the investigation leading to the charges. He also thanked the FBI Scranton Field Office, FBI Philadelphia Division, and the Pennsylvania Attorney General’s Office for their assistance.
The government is represented by Assistant U.S. Attorneys George L. Brandley and Katherine Romano of the Health Care Fraud Unit.
kurtzer.indictment.pdfMiddlesex County Construction Company Admits Causing Death of Employee Who Fell Off Roof During Residential Roof ProjectRead the Press Release
NEWARK, N.J. – A construction company based in Old Bridge, New Jersey, admitted violating Occupational Safety and Health Administration (OSHA) standards, leading to the death of an employee, U.S. Attorney Philip R. Sellinger announced today.
Zona Roofing LLC (Zona Roofing), via its owner Yilbert Segura, pleaded guilty on Nov. 20, 2023, before U.S. Magistrate Judge José R. Almonte in Newark federal court to an information charging it with one count of willfully violating OSHA standards by failing to provide fall protection and fall protection training to employees engaged in the replacement of a residential roof, which caused the death of an employee.
According to documents filed in this case and statements made in court:
On Aug. 6, 2019, Segura and four employees began a roof replacement project on a residential home located in Haledon, New Jersey. Despite working more than 20 feet from the ground, employees for Zona Roofing were not equipped with any personal fall protection equipment, such as safety harnesses, lanyards, tie-off ropes, guard rails, safety nets, or other feasible means of fall protection. None of the employees had received fall protection training to recognize the hazards of falling or the procedures to be followed to minimize those hazards.
On Aug. 8, 2019, while working on the roof, one of Zona Roofing’s employees lost his balance and fell approximately 22 feet to the ground, sustaining blunt force injuries to his head that resulted in his death. The employee was not equipped with any fall protection gear, and he had not received any fall protection training. Zona Roofing was previously cited by Maryland OSHA in February 2019 for failing to provide fall protection to its employees.
If the court accepts the terms of the plea agreement, Zona Roofing will be sentenced to five years of probation and will pay restitution of $75,000 to the employee’s family members. Zona Roofing must also follow specified conditions, including providing training procedures to all its employees and a requirement to follow enhanced safety provisions for future construction jobs. Sentencing is scheduled for March 25, 2024.
U.S. Attorney Philip R. Sellinger credited special agents of the U.S. Department of Labor, Office of the Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone; Daniel Hennefeld, Counsel for Occupational Safety and Health, Office of the Solicitor of Labor, Region 2, and OSHA Compliance Officers with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Garrett Schuman of the Criminal Division in Newark.
zonaroofing.information.pdfFlorida Man Admits Fraudulently Obtaining $2.4 Million in CARES Act LoansRead the Press Release
TRENTON, N.J. – A Florida man admitted fraudulently obtaining over $2.4 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loan (EIDL) payments, U.S. Attorney Philip R. Sellinger, announced today.
Mohamed A. Awad, 61, of Ocala, Florida, pleaded guilty on Nov. 20, 2023, before Judge Michael A. Shipp in Trenton federal court to an information charging him with wire fraud and money laundering.
U.S. Attorney Philip R. Sellinger“The defendant admitted falsifying documents to obtain millions of dollars from government programs that were intended to provide financial help to Americans who were struggling to cope with the COVID-19 pandemic. My office continues to work with all of our law enforcement partners to find and punish those who take advantage of these vital programs.”
“The defendant’s abuse of a program designed for those in need is appalling,” Tammy Tomlins, Special Agent in Charge of the Newark Field Office, said. “Today’s plea demonstrates the significant consequence for fraudulently accessing government programs to steal from taxpayers. IRS Criminal Investigation and our law enforcement partners are committed to protecting the integrity of relief programs.”
According to documents filed in this case and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Awad engaged in a scheme to illegally obtain over $2.4 million in PPP and EIDL loans through numerous misrepresentations to lenders. He submitted fraudulent loan applications that fabricated numbers of employees and misrepresented company information, to induce PPP and EIDL lenders to approve the loan applications that they otherwise would not have approved. Awad submitted falsified tax documents in support of PPP applications. According to IRS records, none of the purported tax documents that Awad submitted in support of the loan applications were ever in fact filed with the IRS. Awad thereafter transferred the loan proceeds among various bank accounts he controlled, withdrawing significant amounts in cash and transferring loan proceeds out of the country via wire transfers to banks based in Egypt.
The charge of wire fraud carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. The charge of money laundering carries a maximum penalty of 20 years in prison and a maximum fine of $500,000, or twice the value of the monetary instrument or funds involved in the laundering offense, whichever is greater. Sentencing is scheduled for April 9, 2024.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, 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 the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the charges.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
The government is represented by Assistant U.S. Attorney Katherine M. Romano 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.
awad.information.pdfNew York Man Sentenced to Two Years in Prison for Assault on AirplaneRead the Press Release
NEWARK, N.J. – A New York man was sentenced to 24 months in prison for assaulting a female passenger on a flight to Newark Liberty International Airport, U.S. Attorney Philip R. Sellinger announced today.
Ryan Manuella, 30, of Cheektowaga, New York, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to assault with intent to commit another felony, namely, stalking, while on an airplane. Manuella was ordered detained without bond. Judge Wigenton imposed the sentence on Nov. 16, 2023, in Newark federal court.
According to documents filed in this case and statements made in court:
On a flight from Denver, Colorado, to Newark, on April 16, 2021, Manuella moved to a vacant seat next to a female passenger and touched the passenger without her consent. Manuella admitted the victim then yelled at him and left the row of seats. He admitted that touching the victim caused her substantial emotional distress.
In addition to the prison term, Judge Wigenton sentenced Manuella 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, and officers of the Port Authority Police Department with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys DeNae M. Thomas and Katherine M. Romano of the Health Care Fraud Unit in Newark.
Monmouth County Man Convicted of Tax Evasion in Securities Fraud SchemeRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was convicted on five counts of tax evasion for his role in a $39 million investment fraud, U.S. Attorney Philip R. Sellinger for the District of New Jersey announced today.
Joseph Cammarata, 49, of Monmouth Beach, New Jersey, was found guilty on Nov. 15, 2023, on five counts of tax evasion following a two-week trial before U.S. District Judge Peter G. Sheridan in Trenton federal court. Cammarata was previously convicted in the Eastern District of Pennsylvania of conspiracy to commit wire fraud and mail fraud, wire fraud, money laundering conspiracy, and money laundering in connection with this scheme. He was sentenced to 10 years in prison on those charges.
U.S. Attorney Philip R. Sellinger“This defendant has now been convicted by two separate juries of serious crimes. First, he was convicted by a jury in Philadelphia federal court for his role in a scheme to defraud investors out of millions of dollars. Now, a Trenton jury has convicted him of hiding from the IRS the more than $16 million he pocketed as he tried to avoid paying his fair share of taxes. Cammarata will now be held to account for his crimes at sentencing.”
“Last year, a jury in the Eastern District of Pennsylvania found that Cammarata and his partners engaged in a multi-year fraud in order to steal over $40 million,” U.S. Attorney Jacqueline Romero for the Eastern District of Pennsylvania said. “Cammarata then concealed more than $16 million of his proceeds of that fraud from the IRS. The verdict in the New Jersey case makes clear that those who hide income gained by fraud will face the same consequences as those who try to evade their tax obligations from legal sources of income. Thanks to the dedicated efforts of the investigators and prosecutors on this case, this defendant has been brought to justice for the full scale of his criminal conduct.”
“IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed,” Tammy Tomlins, IRS – Criminal Investigation Special Agent in Charge of the Newark Field Office, said. “Mr. Cammarata and his partners stole millions from his victims. IRS Criminal Investigation Special Agents are committed to working with our law enforcement partners to hold account fraudsters like the defendant.”
According to documents filed in this case and the evidence at trial:
Cammarata and two conspirators, David Punturieri and Erik Cohen, were the principals of Alpha Plus Recovery, a claims aggregator firm based in Old Bridge, New Jersey. Punturieri and Cohen previously pleaded guilty to tax evasion, fraud, and money laundering charges.
Cammarata, Punturieri, and Cohen used Alpha Plus Recovery to make false and fraudulent claims on the proceeds of securities fraud class action settlements and SEC enforcement actions. They falsely claimed that corporate clients of Alpha Plus Recovery had purchased shares of securities that were the subject of the lawsuits and enforcement actions. In reality, the supposed clients, which were entities actually controlled by the defendants, had not purchased the subject securities and were not entitled to any recovery from the settlements or enforcement actions. To substantiate their false claims, the defendants created fraudulent brokerage and other financial documents to provide to claims administrators. Cammarata and his partners then transferred the fraudulently obtained funds into accounts that they controlled, stealing more than $39 million from 2015 to 2019.
Cammarata’s share of the illegally obtained fraud proceeds amounted to more than $18 million. Cammarata failed to declare or pay taxes on income of $1.72 million in 2015; $2.56 million in 2016; $4.82 million in 2017; $3.56 million in 2018; and $3.35 million in 2019. Cammarata hid this income, which he received through corporate entities, from his accountant in order to conceal these sums from the IRS.
Each count of tax evasion is punishable by up to five years in prison. Sentencing has not yet been scheduled.
U.S. Attorney Sellinger credited special agents of the IRS, under the direction of Special Agent in Charge Tomlins, Special Agents of the FBI, under the direction of Acting Special Agent in Charge Richard Langham, and U.S. Postal Inspectors, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to today’s guilty plea. He also thanked the SEC, for the assistance provided by its Enforcement Division.
The government is represented by Assistant U.S. Attorneys David Ignall and Paul Shapiro of the Eastern District of Pennsylvania.
Middlesex County Man Admits Stealing COVID-19 Unemployment BenefitsRead the Press Release
NEWARK N.J. – A Middlesex County, New Jersey, man admitted that he conspired to illegally obtain over $400,000 in COVID-19 unemployment benefits, U.S. Attorney Philip R. Sellinger announced today.
Christopher Valerio, 33, of Perth Amboy, New Jersey, pleaded guilty on Nov. 16, 2023, before U.S. District Judge Robert Kirsch to an information charging him with one count of conspiracy to commit wire fraud. Valerio’s conspirator, Yanira Abreu, 42, of Keasby, New Jersey, pleaded guilty on Sept. 12, 2023, on charges stemming from the same scheme. A third conspirator, Jose Tavares, 35, of New York, is charged by complaint and his case remains pending.
According to documents filed in this case and statements made in court:
From July 2020 through February 2021, Valerio, Abreu and others submitted false and fraudulent applications for unemployment insurance benefits to the New York Department of Labor (NYDOL) through fictitious online profiles that they created using personally identifiable information, including names, dates of birth, and Social Security numbers, of other individuals without their consent. Once the NYDOL processed and approved the fraudulent applications, Valerio and his conspirators obtained debit cards with illegally obtained funds totaling $444,738, which they used for personal gain.
The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. Sentencing is scheduled for March 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; special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to today’s guilty plea.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.
The charges and allegations against Tavares are merely accusations, and Taveras is presumed innocent unless and until proven guilty.
cvalerio.information.pdf