District of New Jersey
Press releases recorded for this federal judicial district.
Atlantic County Man Sentenced to Five Years in Prison for Drug Trafficking Conspiracy Involving over 100 Kilograms of CocaineRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced today to 60 months in prison for his role in a conspiracy to distribute cocaine, U.S. Attorney Philip R. Sellinger announced.
Lester Santana, 53, of Egg Harbor Township, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with one count of conspiracy to distribute five kilograms or more of cocaine. Judge O’Hearn imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Santana admitted that on numerous occasions from March 2019 to August 2020, he and his conspirators flew to San Juan, Puerto Rico, on commercial flights from Philadelphia International Airport. Santana and his conspirators purchased multi-kilogram quantities of cocaine from wholesale drug suppliers based in the San Juan area in exchange for cash payments. Santana and the other conspirators then shipped the kilograms of cocaine by overnight delivery from U.S. Post Offices in San Juan to various addresses in Philadelphia and southern New Jersey, including to Santana’s residence. After the cocaine shipments were delivered, a conspirator resold the cocaine to other drug dealers in the Philadelphia area for a profit. Santana admitted that he was jointly responsible for the possession with intent to distribute and distribution of 50 to 150 kilograms of cocaine.
In addition to the prison term, Judge O’Hearn sentenced Santana to five years of supervised release.
Two conspirators in this case, Jose Gonzalez and Iran Soler, both previously pleaded guilty before Judge O’Hearn to conspiring to distribute five kilograms or more of cocaine. Gonzalez is scheduled to be sentenced on Jan. 4, 2024, and Soler is scheduled to be sentenced on Nov. 6, 2023.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Christopher A. Nielsen; agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the leadership of Special Agent in Charge Matthew Modafferi; agents assigned to the FBI’s Atlantic City Resident Agency, Newark Division, under the direction of Special Agent in Charge James E. Dennehy; agents assigned to the FBI’s Philadelphia Field Division, under the direction of Special Agent in Charge Jacqueline Maguire; troopers assigned to the New Jersey State Police Strategic Investigations Unit South, under the direction of Col. Patrick J. Callahan; and officers and detectives of the Philadelphia Police Department, under the direction of Interim Police Commissioner John Stanford, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Gang Member Admits to Racketeering ChargeRead the Press Release
NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang admitted to his role in a racketeering conspiracy, U.S. Attorney Philip R. Sellinger announced today.
Tre Byrd, aka “Bands,” aka “G Bandz,” 22, pleaded guilty before U.S. District Judge Susan D. Wigenton on Oct. 3, 2023, to a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy.
According to documents filed in this case and statements made in court:
From 2015 through Sept. 22, 2022, Byrd was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere.
In March 2019, Byrd worked with other members and associates of the gang to murder a gang rival, who was fatally shot on March 20, 2019, in Irvington, New Jersey. On June 20, 2020, Byrd and at least one other member and associate of the gang robbed a victim at gunpoint in Newark.
The defendant faces a maximum sentence of life imprisonment and a fine of up to $250,000. Sentencing is scheduled for Feb. 7, 2024.
U.S. Attorney Sellinger credited special agents of the DEA, under the direction of Special Agent in Charge Cheryl Ortiz; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge Bryan Miller; investigators of the U.S. Marshals Service, under direction of Marshal Juan Mattos; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Newark Police Department, under the direction of Public Safety Director Fritz Fragé; the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the East Orange Police Department, under the direction of Chief Phyllis L. Bindi; the Elizabeth Police Department, under the direction of Police Director Earl J. Graves; the Edison Police Department, under the direction of Chief of Police Tom Bryan; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; the Spotswood Police Department, under the direction of Chief Philip Corbisiero; and the North Carolina State Bureau of Investigation Fugitive and Missing Person Task Force, which includes members of the FBI, with the investigations leading to the charges in the Rollin 60’s Neighborhood Crips investigation.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division.
byrd.sindictment.pdfColombian Citizen Admits Conspiring to Transport Hundreds of Kilograms of Cocaine into United StatesRead the Press Release
NEWARK, N.J. – A Colombian citizen admitted conspiring to import hundreds of kilograms of cocaine into the United States from other countries including Colombia, Venezuela, and the Dominican Republic, U.S. Attorney Philip R. Sellinger announced today.
Raul Orlando Torres Cubides, aka “Jose Jota,” 56, pleaded guilty before U.S. District Judge Esther Salas to count one of an indictment charging him with conspiracy to import five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
From 2016 through Jan. 10, 2020, Cubides conspired to import hundreds of kilograms of cocaine. Cubides admitted playing a managerial role in this conspiracy, which involved more than five individuals.
The count to which Cubides pleaded guilty carries a statutory mandatory minimum sentence of 10 years in prison and a maximum penalty of life in prison, as well as a fine of up to $10 million. Sentencing is scheduled for Feb. 22, 2024.
U.S. Attorney Sellinger credited special agents and task force officers with the Drug Enforcement Administration (DEA) operating in New Jersey, under the direction of Special Agent in Charge Cheryl Ortiz in Newark, as well as special agents and task force officers with the DEA operating in Colombia, the Dominican Republic, and Puerto Rico. He also thanked the Justice Department’s Office of International Affairs; the Criminal Division’s Narcotic and Dangerous Drug Section Judicial Attachés in Bogotá, Colombia; Colombian law enforcement authorities; and the U.S. Marshals Service for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the OCDETF/Narcotics Unit in Newark.
cubides.indictment.pdfRegistered Sex Offender Sentenced to 15 Years in Prison and Lifetime Supervised Release for Distributing Child Pornography While on Supervised ReleaseRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 180 months in prison for distributing multiple images depicting child sexual abuse while on supervised release for possessing and receiving child pornography, U.S. Attorney Philip R. Sellinger announced.
Hugh Cohen, 65, of Elizabeth, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of distributing child pornography. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Cohen was previously convicted in federal court on a two-count indictment charging him with possessing and receiving child pornography in 2010, for which Cohen was sentenced to five years in prison followed by seven years of supervised release. Supervised release commenced on Oct. 29, 2014 and was to expire on Oct. 28, 2021.
While still on supervised release, from March 28, 2021, to April 24, 2021, Cohen engaged an undercover agent in an ongoing sexually graphic conversation on a web-based application. Cohen sent the undercover agent multiple images depicting the sexual abuse of children. Law enforcement also subsequently discovered numerous images of child sexual abuse on Cohen’s cellphone.
In addition to the prison term, Judge Martini sentenced Cohen to a lifetime term of supervised release. Cohen must also register as a sex offender.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy, and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney DeNae M. Thomas of the U.S. Attorney’s Criminal Division in Newark.
Union County Man Admits Role in Conspiracy to Target Asian Small Business Owners in Residential BurglariesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a conspiracy that targeted residences belonging to Asian small business owners, U.S. Attorney Philip R. Sellinger announced.
Kevin Jackson, 57, of Rahway, New Jersey, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of conspiracy to commit interstate transportation of stolen property.
According to documents filed in this case and statements made in court:
From Dec. 2, 2016, to March 20, 2019, Jackson participated in a conspiracy to burglarize the residences of certain Asian small business owners living in New Jersey, New York, Pennsylvania, and Delaware, stealing large sums of money, valuable jewelry, and other items and transporting the stolen goods in interstate commerce, including to residences in New Jersey and Pennsylvania.
The charge of conspiracy to commit interstate transportation of stolen property carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the amount of money involved in the offense, whichever is greatest. Sentencing is scheduled for Feb. 13, 2024.
U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea. He also thanked the South Plainfield Police Department, the Middlesex County Prosecutor’s Office, the New Jersey State Police, the Port Authority of New York and New Jersey, the U.S. Department of Labor, the U.S. Department of State, the Drug Enforcement Administration, the U.S. Customs and Border Protection, the U.S. Department of Transportation, the U.S. Postal Inspection Service, the Union County Prosecutor’s Office, and the Bernards Township, Bethlehem Township, Cherry Hill, Cinnaminson, Clark, Colonial Regional, Cranford, Delaware State Police-Troop 2, Delran, Edison, East Brunswick, East Hanover, Eatontown, Elizabeth, Essex County Sheriff’s Office-Bureau of Narcotics, Evesham Township, Exeter Township, Fair Lawn, Forks Township, Fort Lee, Franklin Township, Glassboro, Gloucester Township, Hackensack, Haverstraw, Hazlet, Highland Park, Hillside, Hillsborough Township, Howell Township, Jackson, Kenilworth, Lawrence Township, Linden, Lyndhurst, Mahwah, Marlboro Township, Maywood, Middletown, Montgomery County, Montville, Morris Township, Mount Laurel, Mountainside, New Castle County, New Providence, New York Police Department’s 105th Detective Squad, North Brunswick, North Plainfield, Old Bridge, Paramus, Parsippany, Phillipsburg, Piscataway, Pocono Mountain Regional, Pocono Township, Raritan, Roselle Park, Sayreville, Somerville, South Brunswick, South River, South Whitehall Township, Spotswood, Town of Tuxedo, Tinton Falls, Toms River, Township of Ocean, Union, Upper Macungie Township, Wall Township, Warren, Washington Township, Watchung, Westfield, Whitehall Township, and Woodbridge Township police departments.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.
jackson.information.pdfTwo Essex County Men Charged with Unlicensed Firearms TraffickingRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey, men were charged today with unlicensed dealing in firearms and trafficking firearms in interstate commerce; one of the defendants was also charged with conspiracy to sell fentanyl, U.S. Attorney Philip R. Sellinger announced.
Carlo M. De Leon De Jesus, 26, and Victor Gonzalez, 36, both of Newark, are each charged by complaint with one count of dealing firearms without a license, one count of transferring firearms to an out-of-state resident, and one count of firearms trafficking. De Jesus is also charged with one count of conspiracy to distribute fentanyl. They appeared before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and were detained.
According to documents filed in these cases and statements made in court:
According to documents filed in this case and statements made in court:
From July 2023 to September 2023, De Jesus sold four firearms, including two rifles and a semi-automatic handgun, as well as a substance that tested positive for fentanyl. Gonzalez sold a firearm with no serial number in September 2023.
The counts of dealing firearms without a license and transferring firearms to an out-of-state resident are punishable by a maximum of five years in prison and a fine of up to $250,000, or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss to victim. The count of count of firearms trafficking is punishable by up to 15 years in prison and a fine of up to a fine of up to $250,000, or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss to victim. The count of conspiracy to distribute fentanyl is punishable by a maximum of 20 years in prison and a fine of up to $1 million.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller; special agents of the Drug Enforcement Administration in Newark, 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 Robert Kurtz, with the investigation leading to charges.
The government is represented by Assistant U.S. Attorney Barry O’Connell of the Criminal Division’s Organized Crime Drug Enforcement Task Force (OCDETF)/Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
gonzalez.complaint.pdf dejesus.complaint.pdfU.S. Attorney’s Office for District of New Jersey and Department of Justice’s Civil Rights Division Secure Compensation for Servicemembers Charged Illegal Lease Termination Fees at New Jersey Apartment ComplexRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the Department of Justice’s Civil Rights Division announced today that a company that manages large apartment properties in several states has agreed to pay $61,581 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA).
The complaint alleges that JAG Management Company LLC (JAG) imposed unlawful charges on at least nine servicemembers who had exercised their right under the SCRA to terminate their leases after receiving qualifying military orders. The servicemembers were residents of the Jefferson Mount Laurel apartment complex in Mount Laurel, New Jersey. The termination fees ran as high as $2,750 per servicemember.
U.S. Attorney Philip R. Sellinger“Our office is committed to protecting the rights of servicemembers who make tremendous sacrifices on behalf of our nation. Landlords and property managers may not unlawfully penalize members of our armed forces who are simply carrying out their duty. Through this consent order, we protect the rights of servicemembers and provide compensation to those who suffered harm when they were allegedly unlawfully charged early lease termination fees upon receiving military orders.”
“Servicemembers should not have to pay any fees – much less exorbitant fees – to landlords when they are simply complying with their military orders and protecting our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution reaffirms the Justice Department’s unwavering commitment to protecting the rights of servicemembers, veterans and their families.”
The complaint filed today in the U.S. District Court for the District of New Jersey alleges that Coast Guard Lieutenant Daniel Pereira sought to terminate his lease with JAG Management after he received permanent change of station orders transferring him from Philadelphia to New London, Connecticut. Lt. Pereira provided JAG with timely written notice of his lease termination and a copy of his transfer orders before vacating his apartment. However, two months after moving, Lt. Pereira was notified – for the first time – that JAG was demanding that he repay a $2,100 rent concession he received when he signed his lease. Despite Lt. Pereira’s efforts to resolve the matter, including providing JAG with the relevant provisions of the SCRA and prior Justice Department cases on this issue, JAG reported the debt to credit reporting agencies, and Lt. Pereira’s credit score was downgraded. The complaint also alleges that JAG charged illegal fees to at least eight other servicemembers, representing the United States Air Force, Army, Coast Guard and Air National Guard, who had exercised their right to terminate their residential leases upon receipt of qualifying military orders.
Under the terms of the proposed consent order, which was filed with the complaint and is subject to court approval, JAG Management must pay a total of $41,581 in damages to the nine servicemembers. JAG must also pay a civil penalty of $20,000 to the federal government. In addition, JAG must implement policies to ensure it complies with the SCRA, trains employees on the protections afforded by the SCRA and reports future SCRA-related complaints to the federal government.
The U.S. Attorney’s Office for the District of New Jersey and the Civil Rights Division’s Housing and Civil Enforcement Section investigated JAG Management’s leasing practices after receiving a referral from the Justice Department’s Servicemembers and Veterans Initiative.
The purpose of the SCRA is to allow servicemembers to devote their entire energy to the national defense. The SCRA provides protections to servicemembers in areas such as evictions, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. The SCRA also allows servicemembers to terminate their residential leases after entering military service or receiving military orders for a permanent change of station, deployment or retirement without paying a penalty or an early termination charge.
Since 2011, the department has obtained over $481 million in monetary relief for over 146,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov. Servicemembers and their dependents who believe their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil.
Individuals who believe their civil rights have been violated in the District of New Jersey may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
The government is represented by Assistant U.S. Attorney Thandiwe Boylan, Civil Rights Division.
ecf_no._2-1_consent_order.pdf
ecf_no._1_complaint.pdfSouth Carolina Doctor and Nephrology Practice Agree to Pay More Than $585,000 to Settle Laboratory Kickback AllegationsRead the Press Release
NEWARK, N.J. – A South Carolina doctor and his medical practice have agreed to pay more than $585,000 to resolve kickback allegations, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, announced today.
Moustafa Moustafa M.D. and his medical practice, South Carolina Nephrology and Hypertension Center Inc., of Orangeburg and Bamberg, South Carolina, have agreed to pay $585,540 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute in return for referring patients for laboratory testing. Moustafa and his practice have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged kickback schemes.
U.S. Attorney Philip R. Sellinger“Kickbacks have no place in our healthcare system. Health care providers and clinical laboratories are on notice that benefits in exchange for referrals are improper, and may violate the Anti-Kickback Statute. We will continue to pursue those who enter into unlawful arrangements that waste taxpayer dollars and improperly influence healthcare providers’ medical judgments.”
“Financial inducements to healthcare providers can influence medical decisions and undermine the integrity of public healthcare programs,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “We will continue to hold accountable those who participate in kickback arrangements, including unlawful arrangements involving clinical laboratory testing.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement announced today resolves allegations that Moustafa and his practice received kickbacks in violation of the Anti-Kickback Statute in return for Moustafa’s laboratory referrals and caused the submission of false or fraudulent claims to Medicare and TRICARE.
- Office Rent and Phlebotomy Kickbacks. From June 2017 to December 2021, Moustafa and his practice allegedly received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments, paid monthly or in a lump sum money order, from a clinical laboratory in Anderson, South Carolina, in return for Moustafa’s laboratory referrals.
- Clinical Staff Kickbacks. From August 2020 to December 2022, Moustafa and his practice allegedly received from a clinical laboratory in Kenilworth, New Jersey, remuneration in the form of free clinical staff to provide services to Moustafa’s practice unrelated to that laboratory, in return for Moustafa’s referrals for laboratory testing.
- Consulting and Medical Director Kickbacks. From September 2019 to March 2023, Moustafa allegedly received from marketing company Ralston Health Group, Inc. (Ralston) thousands of dollars in remuneration disguised as consulting and medical director payments, paid monthly, in return for Moustafa ordering clinical laboratory services from five laboratories. The settlement resolves allegations that Ralston kicked back to Moustafa a portion of the commissions those five laboratories paid to Ralston, in return for Moustafa ordering laboratory testing from those laboratories.
“Rooting out healthcare fraud is a priority in the District of South Carolina,” U.S. Attorney Adair F. Boroughs for the District of South Carolina said. “Kickbacks raise costs for taxpayers and undermine our healthcare programs by leading to unnecessary medical services. We are committed to holding those who give and receive illegal kickbacks accountable.”
“Health care providers who accept kickbacks can allow greed to influence their medical decision-making, putting patients and their healthcare programs at risk of harm,” Naomi Gruchacz, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), said. “HHS-OIG is proud to work alongside our law enforcement partners to protect HHS programs from abuse and ensure that patient needs drive providers’ decisions."
“Kickback schemes have no place in federal healthcare programs and will not be tolerated,” Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office, said. “DCIS and our partner agencies continue to stand firm in our dedication to protect the integrity of these programs.”
The settlements were the result of a coordinated effort between the U.S. Attorney’s Offices for the District of New Jersey and South Carolina and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG, FBI, and DCIS.
The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit, Assistant U.S. Attorney Beth C. Warren in the U.S. Attorney’s Office for the District of South Carolina, and Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
moustafa.settlement.pdfSomerset County Man Charged with Distributing Fentanyl Resulting in Four DeathsRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man was arrested for distributing fentanyl that resulted in four deaths and distributing cocaine, U.S. Attorney Philip R. Sellinger announced today.
Mauricio Gutierrez, 50, of Somerset, New Jersey, is charged by complaint with two counts of distribution of fentanyl that resulted in a death and one count of distribution of cocaine. Gutierrez made his initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On June 24, 2022, Gutierrez distributed controlled substances containing fentanyl in at least two separate transactions.
The first individual to whom Gutierrez distributed fentanyl used it, along with two other individuals. Shortly thereafter the three victims were located in a vehicle that was parked outside an establishment in North Brunswick, New Jersey, and all three were unresponsive. Two victims were pronounced dead and the third victim died two days later. Law enforcement located a white powder, which was determined to contain fentanyl, inside the vehicle.
In a separate transaction, Gutierrez distributed fentanyl to another individual who was located shortly thereafter in a vehicle in Franklin Township, New Jersey. The victim was unresponsive and was pronounced dead at the scene. Law enforcement located a white powder, which was determined to contain fentanyl, inside the vehicle.
Subsequent toxicology reports determined that the victims had lethal amounts of fentanyl in their blood.
On Sept. 27, 2023, law enforcement officials arrested Gutierrez after observing him engage in a hand-to-hand narcotics sale in Piscataway, New Jersey. The controlled substance that Gutierrez distributed tested positive for cocaine.
The charges of drug distribution resulting in death each carry a maximum potential penalty of life imprisonment and a mandatory minimum penalty of 20 years in prison. The charge of distributing controlled substances carries a maximum penalty of 20 years. The three charges each carry a fine of up to $1 million.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to the charges. He also thanked the North Brunswick Department, under the direction of Chief Joe Battaglia, and Franklin Township Police Department, under the direction of Public Safety Director Quovella Maeweather, for their assistance.
The investigations leading to these charges is part of Organized Crime Drug Enforcement Task Force’s (OCDETF) operations. 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 Shawn Barnes, Chief of the Office’s OCDETF/Narcotics Unit, and Assistant U.S. Attorney Christopher Fell of the Office’s OCDETF/Narcotics Unit, in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
gutierrez.complaint.pdfMiddlesex County Company Admits Undervaluing Gold Jewelry to Evade Customs DutiesRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, company and two individuals who own or control the business admitted that they evaded U.S. customs duties on gold jewelry imported into the United States, U.S. Attorney Philip R. Sellinger announced today.
According to the admissions and contentions of the United States in the settlement agreement:
21st Millennium Inc. is a company based in Iselin, New Jersey, that buys and sells gold jewelry and is owned or controlled by Iqbal Virani and Aqib Virani. From Jan. 1, 2017, through March 31, 2020, 21st Millennium was the importer of record on more than 80 customs entries, each of which consisted of jewelry manufactured in foreign countries and imported into the United States. 21st Millennium was responsible for making truthful and accurate disclosures to the U.S. Department of Homeland Security, Customs and Border Protection, concerning the total value of the merchandise that it imported into the United States. The Viranis caused 21st Millennium to provide the company’s customs broker with commercial invoices that failed to set forth the total value of the jewelry. By undervaluing the merchandise, 21st Millennium evaded paying $401,852 in customs duties that should have been paid. Under the settlement agreement, 21M and the Viranis agreed to pay a total of $1 million to the United States.
U.S. Attorney Sellinger credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ivan J. Arvelo in New York, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.
21m.settlement.pdfGuyanese Citizen Sentenced to Five Years in Prison for Scheme to Import Cocaine to United StatesRead the Press Release
NEWARK, N.J. – A Guyanese citizen was sentenced today to 60 months in prison for his role in a conspiracy to import drugs into the United States, U.S. Attorney Philip R. Sellinger announced.
Dennis Edwards, aka “Death,” 38, previously pleaded guilty before U.S. District Judge Noel L. Hillman to a superseding information charging him with one count of conspiring to import over 20 kilograms of cocaine into the United States. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In 2012, Edwards was part of a criminal conspiracy that arranged to import cocaine into the United States via cruise ship. Edwards was arrested on Nov. 14, 2022, when he arrived at Newark Liberty International Airport after having been deported from the Dominican Republic.
In addition to the prison term, Judge Hillman sentenced Edwards to three years of supervised release.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; deputies of the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos, Jr., and officers with Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Francis J. Russo, with the investigation leading to today’s sentencing. U.S. Attorney Sellinger thanked the Justice Department’s Office of International Affairs for its substantial assistance in the investigation. He also thanked officials in the Dominican Republic for their assistance.
The government is represented by Assistant U.S. Attorney Rachelle M. Navarro of the Criminal Division in Newark.
Former Paterson Resident Sentenced to 27 Months in Prison for Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A former Paterson, New Jersey, resident was sentenced today to 27 months in prison for his role in a bank fraud conspiracy, U.S. Attorney Philip R. Sellinger announced.
Brando Mancebo, 24, formerly of Paterson, previously pleaded guilty by videoconference before U.S. district Judge Kevin McNulty to an information charging him with possession of stolen mail and conspiracy to commit bank fraud. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Mancebo and others conspired to break into U.S. Postal Service collection boxes in Bergen, Hudson, and Morris counties and steal mail. They agreed to fraudulently deposit stolen checks into bank accounts associated with members of the conspiracy, even though they were not payees on the checks. Members of the conspiracy then withdrew funds from those accounts.
In addition to the prison term, Judge McNulty sentenced Mancebo to five years of supervised release and ordered him to pay restitution of $106,374 and forfeiture of $2,025.
U.S. Attorney Sellinger credited special agents of 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 today’s sentencing.
The government is represented by Assistant U.S. Attorney Katherine Calle of the Special Prosecutions Division in Newark.
Cumberland County Man Sentenced to Two Years in Prison for Possessing Destructive Device and Explosive MaterialsRead the Press Release
CAMDEN, N.J. – A Cumberland County man was sentenced today to 24 months in prison for possessing a destructive device and explosive materials, U.S. Attorney Philip R. Sellinger announced.
Thomas Petronglo, 64, of Vineland, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with one count of possession of a destructive device and one count of unlawful storage of explosives. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On March 12, 2021, Petronglo was found in possession of one destructive device, a 5 ¾-inch diameter metal can, containing a quantity of an explosive mixture of potassium perchlorate and aluminum, with a fuse sticking out of the device. Petronglo also possessed multiple intact improvised explosive devices and explosive materials at his residence.
In addition to the prison term, Judge Kugler sentenced Petronglo to three years of supervised release.
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, with the investigation leading to today’s sentencing. He also thanked the Vineland Police Department, the Cumberland County Prosecutor’s Office, and the N.J. State Police for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Jeffrey Bender and Joseph McFarlane of the U.S. Attorney’s Office in Camden.
U.S. Attorney’s Office and Justice Department’s Civil Rights Division to Host Forum in Newark to Increase Awareness of Civil Rights Protections for Religious Land UseRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced today that the U.S. Attorney’s Office and the Department of Justice’s Civil Rights Division will hold an outreach event in Newark to commemorate the 23rd anniversary of the signing of the Religious Land Use and Institutionalized Persons Act (RLUIPA), a federal law that protects persons and religious institutions from discriminatory land use regulations.
The RLUIPA outreach event will take place at Seton Hall Law School in Newark on Oct. 30, 2023, and will include remarks from U.S. Attorney Sellinger, Civil Rights Division officials, religious leaders in New Jersey whose organizations have benefited from RLUIPA’s protections, and attorneys who have experience litigating RLUIPA cases. For more information about this event and others the Civil Rights Division plans to hold around the country, please see the department’s RLUIPA’s website. All events will be open to the public.
U.S. Attorney Philip R. Sellinger“RLUIPA provides important protections for religious groups throughout New Jersey. Our office is committed to combatting religious discrimination and ensuring that religious groups are treated fairly and equally under local land use laws. We look forward to increasing awareness of RLUIPA and co-hosting this important event at Seton Hall Law School.”
“RLUIPA provides important protections for religious groups throughout New Jersey,” U.S. Attorney Sellinger said. “Our office is committed to combatting religious discrimination and ensuring that religious groups are treated fairly and equally under local land use laws. We look forward to increasing awareness of RLUIPA and co-hosting this important event at Seton Hall Law School.”
“Over the last 23 years, the Religious Land Use and Institutionalized Persons Act has helped to combat religious discrimination by protecting the civil rights of faith communities across the country,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “In light of continued anti-Semitism, Islamophobia and other forms of religious discrimination, the Justice Department stands ready to use federal civil rights law to ensure that communities can use their property for worship and to freely engage in religious exercise. The anniversary of RLUIPA provides an opportunity to underscore our commitment to protecting religious rights and ensuring that people are able to freely use land to worship and practice their faith.”
RLUIPA was passed unanimously by Congress and signed into law on September 22, 2000, and contains provisions covering religious land use and religious exercise by people who are incarcerated. Since RLUIPA’s passage, the Department has opened over 150 formal investigations and filed 28 lawsuits and 34 friend of the court briefs related to RLUIPA’s land use provisions, including several in the District of New Jersey. Since 2016, the U.S. Attorney’s Office has filed 4 lawsuits and 2 friend of court brief’s related to RLUIPA’s land use provisions. 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.
Individuals who believe they have been subjected to religious discrimination in land use or zoning decisions may file a complaint with the U.S Attorney’s Office at https://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339. Individuals may also contact the Civil Rights Division Housing and Civil Enforcement Section at (833) 591-0291 or submit a complaint through the complaint portal on the Place to Worship Initiative website.
Voorhees Man Sentenced to 80 Months in Prison for Possessing Child Pornography in Camden CountyRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced to 80 months in prison for possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Bruce Makley, 68, of Voorhees, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of possession of child pornography. Judge Kugler imposed the sentence on Sept. 20, 2023, in Camden federal court.
According to documents filed in this case and statements made in court:
On Aug. 14, 2020, law enforcement agents executed a search warrant at the defendant’s residence. Makley admitted possessing more than 600 images of child sexual abuse, including images of sadistic or masochistic conduct or other depictions of violence, or sexual abuse or exploitation of an infant or toddler.
In addition to the prison term, Judge Kugler sentenced Makley to 10 years of supervised release, and ordered him to pay $152,000 in restitution.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; the Camden County Prosecutor’s Office, under the direction of Camden County Prosecutor Grace C. MacAulay; officers of the Voorhees Police Department, under the direction of Chief Louis Bordi; and officers of the Mt. Laurel Police Department, under the direction of Chief Judy Lynn Schiavone, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the United States Attorney’s Office in Camden.
Missouri Physicians and Pain Management Practices Agree to Pay over $650,000 to Settle Kickback Allegations Involving Laboratory TestingRead the Press Release
NEWARK, N.J. – Three doctors and two medical practices in Missouri have agreed to pay more than $650,000 to resolve kickback allegations, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, announced.
Doctors Gregory Stynowick, and his pain management practice, Pain Management Medical Center LLC, of Florissant, Missouri; Chad Shelton and Michael Boedefeld, and their pain management practice, Pro Pain LLC, of St. Louis, Missouri, have agreed to pay a total of $653,796 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute in return for referring patients for laboratory testing. The parties have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.
U.S. Attorney Philip R. Sellinger“Kickbacks can compromise medical practitioners’ judgment by creating financial incentives for certain medical decisions. Doctors and clinical laboratories are on notice that kickback-for-test schemes like those alleged here can violate the Anti-Kickback Statute. We will continue to use all appropriate tools to safeguard the integrity of the federal healthcare systems.”
“Kickbacks can compromise medical practitioners’ judgment by creating financial incentives for certain medical decisions,” U.S. Attorney Philip Sellinger said. “Doctors and clinical laboratories are on notice that kickback-for-test schemes like those alleged here can violate the Anti-Kickback Statute. We will continue to use all appropriate tools to safeguard the integrity of the federal healthcare systems.”
“Kickbacks are designed to improperly influence healthcare providers’ medical decisions,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “Patients should not have to wonder if their doctors’ medical decisions are being driven by unlawful inducements.”
“Individuals and entities that participate in the federal healthcare system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients,” Special Agent in Charge Naomi Gruchacz of the U.S. Department of Health and Human Services Office of Inspector General said. “Certain violations of the Anti-Kickback Statute can induce medically unnecessary testing and inappropriately steer medical tests to providers who may not return timely or quality results.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement announced today resolves allegations that Stynowick, Shelton, and Boedefeld, and their medical practices, received kickbacks in violation of the Anti-Kickback Statute in return for making referrals to laboratories in Texas, California, and Florida.
- Stynowick and Pain Management Medical Center. Stynowick and his pain management practice, Pain Management Medical Center, have agreed to pay $257,436 to resolve two allegations. From May 2017 to July 2018, Pain Management Medical Center allegedly received thousands of dollars in payments from a purported management service organization (MSO) named Beachwood Services LLC (Beachwood) in return for laboratory tests Stynowick ordered from Landmark Diagnostics LLC (Landmark), a clinical laboratory in Houston, Texas, and Sprint Diagnostics LLC (Sprint), a clinical laboratory in Santa Ana, California. From August 2018 to January 2020, Pain Management Medical Center allegedly received thousands of dollars in payments from a purported MSO named Alari Group LLC (Alari) in return for laboratory tests Stynowick ordered from Genesis Reference Laboratories LLC (Genesis), a clinical laboratory in Orlando, Florida, and InHealth Diagnostic LLC (InHealth), a clinical laboratory in Dallas, Texas.
- Shelton, Boedefeld, and Pro Pain. Shelton, Boedefeld, and their pain management practice, Pro Pain, have agreed to pay $396,360 to resolve two allegations. From February 2017 to September 2018, Pro Pain allegedly received thousands of dollars in MSO payments from Beachwood in return for laboratory tests Shelton and Boedefeld ordered from Landmark and Sprint. Second, from July 2018 to October 2020, Pro Pain allegedly received thousands of dollars in MSO payments from Alari in return for laboratory tests Shelton and Boedefeld ordered from Genesis, InHealth, and American Institute of Toxicology Inc. (AIT), a clinical laboratory in Denton, Texas.
The settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG.
The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
propain.settlement.pdf pmmc.settlement.pdfPhiladelphia Man Charged with Enticing MinorRead the Press Release
CAMDEN, N.J. – A Philadelphia, Pennsylvania, man has been charged with using an internet-based chat application to entice a minor to engage in prostitution, U.S. Attorney Philip R. Sellinger announced today.
Louis Goldenberg, 41, of Philadelphia, Pennsylvania, is charged by complaint with one count of attempted online enticement of a minor to engage in prostitution. Goldenberg made his initial appearance on Sept. 19, 2023, before U.S. Magistrate Judge Sharon A. King in Camden federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In August 2023, Goldenberg began interacting on a messaging application with an undercover agent, who was posing as a middle-aged woman with a 12-year-old niece. From August through September 2023, Goldenberg messaged the undercover agent, continuously expressing interest in having sexual contact with the minor. During one of the conversations, Goldenberg indicated a specific hotel in Mt. Laurel, New Jersey, where he wanted to have sex with the minor. On Sept. 18, 2023, Goldenberg traveled from Pennsylvania to the Mt. Laurel hotel, where he had a reservation for that evening. When Goldenberg arrived, he was arrested.
The count of enticement carries a mandatory minimum term of incarceration of 10 years in prison, a potential maximum term of life in prison, and up to a $250,000 fine.
U.S. Attorney Sellinger credited special agents and task force officer of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to the charges. He also thanked the Burlington County Prosecutor’s Office and Mount Laurel Police Department.
The government is represented by Special Assistant U.S. Attorney Katelyn Waegener of the U.S. Attorney’s Office in Camden.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
goldenberg.complaint.pdfUnion County Man Sentenced to 14 Months in Prison for Role in Scheme to Steal Mail, Commit Credit Card Fraud, and Defraud United StatesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to time already served – 14 months in prison – for his role in a scheme to receive stolen credit cards and pandemic relief debit cards sent through the mail, commit bank fraud, and defraud the U.S. Postal Service and the U.S. Department of the Treasury, U.S. Attorney Philip R. Sellinger announced.
Justin Brooks, 24, of Vauxhall, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to three counts of an indictment charging him with: one count of conspiracy to commit mail theft and bank fraud, and to defraud the U.S. Postal Service and U.S. Department of the Treasury; one count of receiving stolen mail; and one count of bank fraud. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From July 2019 to Oct. 6, 2020, Books and his conspirators obtained credit cards stolen from the U.S. mail from a U.S. Postal Service letter carrier, fraudulently activated those credit cards, and then used those credit cards to make and attempt to make purchases without the cardholders’ authorization. The victims have incurred approximately $70,000 in losses from fraudulent purchases made using their stolen credit cards. Brooks also schemed to fraudulently use over $13,000 of funds pre-loaded onto Economic Impact Payment (EIP) cards issued by the U.S. Department of Treasury and sent in the U.S. mail pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), that were also stolen from the mail. The CARES Act authorized EIP payments structured as one-time refundable tax credits to certain eligible taxpayers of $1,200 for individuals, $2,400 for married couples filing jointly, and up to $500 for each qualifying child. The goal of this part of their fraud was for the conspirators to unlawfully obtain the government funds pre-loaded onto these cards.
In addition to the prison term, Judge Cecchi sentenced Brooks to three years of supervised release and ordered him to pay $87, 080 in restitution.
Brooks originally was charged with Jarid Brooks, 29, Kyle Williams, 37, and Kyjuan Hutchins, 23, also of Vauxhall, in October 2020. Jarid Brooks, Williams and Hutchins have all pleaded guilty to their roles in the conspiracy. Jarid Brooks and Hutchins are awaiting sentencing; Williams was previously sentenced.
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; 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 special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. He also thanked the Union County Prosecutor’s Office, the Caldwell Police Department, the Fairfield Police Department, the Boonton Police Department, and the Millburn Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou, Chief of the Opioid Abuse Prevention and Enforcement Unit of the Criminal Division in Newark.
Two Indian Nationals Each Sentenced to 41 Months in Prison for Receiving over $1.2 Million in Global Robocall Scam that Defrauded Elderly VictimsRead the Press Release
NEWARK, N.J. – Two Indian nationals were each sentenced today to 41 months in prison for their roles in a conspiracy to commit wire fraud by accepting illegally obtained $1.2 million in wire transfers from victims across the United States, U.S. Attorney Philip R. Sellinger announced.
Arushobike Mitra, 29, and Garbita Mitra, 25, (no relation) both previously pleaded guilty before U.S. District Judge Esther Salas one count of conspiracy to commit wire fraud. Judge Salas imposed the sentences today in Newark federal court.
U.S. Attorney Philip R. Sellinger“These defendants and their conspirators preyed upon some of our most vulnerable citizens, using trickery and threats to coerce them into sending money. Protecting our elderly population from these kinds of deceitful robocall scams is a priority of our office. Those who engage in this kind of elder fraud scheme can expect to face justice.”
“These defendants and their conspirators preyed upon some of our most vulnerable citizens, using trickery and threats to coerce them into sending money,” U.S. Attorney Sellinger said. “Protecting our elderly population from these kinds of deceitful robocall scams is a priority of our office. Those who engage in this kind of elder fraud scheme can expect to face justice.”
According to documents filed in this case and statements made in court:
As part of an international fraud scheme, criminal India-based call centers utilized automated robocalls to victims across the country with the intent of defrauding U.S. residents, particularly the elderly. After establishing contact with victims through these automated calls, other members of the conspiracy would coerce or trick the victims into sending large sums of cash through physical shipments or wire transfers to other members of the conspiracy, including the Mitras. These conspirators used a variety of schemes to convince victims to send money, including impersonating government officials from agencies such as the Social Security Administration, or impersonating law enforcement officers from the FBI or DEA, and threatened victims with severe legal or financial consequences if they did not comply. Another method utilized by the callers involved convincing the victim they were speaking with someone from a tech support company and coercing the victim into granting the caller remote access to their personal computers. The caller would then access the victim’s bank accounts and make it appear to the victim that the caller had inadvertently added money to the victim’s bank account, when in fact the caller had simply transferred money from another one of the victim’s own accounts. The caller would then instruct the victim to “return” the money by way of mail or wire transfer to other members of the conspiracy, including the Mitras.
In addition to the prison terms, Judge Salas sentenced Arushobike Mitra and Garbita Mitra each to three years of supervised release and ordered them to pay $835,324 in restitution.
U.S. Attorney Sellinger credited special agents of the Social Security Administration, Office of the Inspector General, Office of Investigations, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the Department of Homeland Security, Homeland Security Investigations, Cyber Intrusion Group, and El Dorado Task Force Asset Identification & Removal Group, under the direction of Special Agent in Charge Ivan J. Arvelo in New York; postal inspectors of the U.S. Postal Inspection Service in Newark Division, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to today’s sentencings. He also thanked the Hoboken Police Department, the Hudson County Prosecutor’s Office, the New York City Police Department, and the Brunswick County, North Carolina, Sheriff’s Office for their assistance.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden.
South Carolina Man Admits Securities Fraud, Bank Fraud, and Wire Fraud SchemesRead the Press Release
TRENTON, N.J. – A South Carolina man today admitted engaging in several bank and wire fraud schemes and a securities offering fraud scheme that spanned six years and caused losses of millions of dollars, U.S. Attorney Philip Sellinger announced.
Sandy John Masselli, 62, of Columbia, South Carolina, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to nine counts of a superseding indictment charging him with bank fraud, wire fraud, and securities fraud. Masselli was initially charged by complaint in October 2017.
U.S. Attorney Philip R. Sellinger“Sandy Masselli today admitted defrauding his victims through a web of lies that induced them to invest in his company with the promise of substantial returns from an initial public offering that was never going to happen. He also concealed his ill-gotten gains from banks and credit card companies with more lies. Masselli’s guilty plea means that he will now be held accountable for putting his illegal pursuit of profit before his investors’ interests. This office is fully committed to combatting securities and investment fraud schemes of all kinds, and this case is another example of that commitment.”
“Investment fraud has devastating consequences for victims, and today's guilty plea brings Masselli one step closer to accounting for the havoc he caused,” FBI-Newark Special Agent in Charge James E. Dennehy said. “The FBI and its law enforcement partners stand ready to protect investors, both large and small, from fraudsters like Masselli.”
According to the documents filed in this case and statements made in court:
From September 2011 through October 2017, Masselli solicited millions of dollars in investments from retail investors by fraudulently touting the prospect of his online gaming company, Carlyle Entertainment Ltd., formerly Carlyle Gaming & Entertainment Ltd. (Carlyle), to conduct a lucrative initial public offering (IPO) of its stock on either the NASDAQ or the New York Stock Exchange (NYSE). Masselli induced investors to purchase shares of Carlyle stock by promising them steeply discounted prices in advance of the purported IPO, assuring them that the stock price would increase significantly after the IPO. Masselli further represented that the IPO would occur within weeks or months of the investors’ stock purchases.
However, as Masselli knew, Carlyle was neither poised nor prepared to conduct an IPO on either the NASDAQ or the NYSE, given that, among other deficiencies, neither Masselli nor anyone else on behalf of Carlyle ever filed an application with the NASDAQ or the NYSE to list Carlyle stock on either exchange, or filed with the Securities and Exchange Commission (SEC) a registration statement to list Carlyle shares on a national exchange. Masselli further misrepresented to the investors how he would use their investments, for example telling them that he would allocate investment funds toward improving Carlyle’s online platform and paying legal fees in connection with preparing Carlyle for a looming IPO. Masselli did not invest these funds in Carlyle, as he had promised investors he would, but instead misappropriated these funds to pay for his and his family’s own personal expenses.
Within weeks and often days of receiving investor funds, Masselli quickly deposited them into and throughout a web of bank accounts he controlled, many of which were opened under names of fictitious corporate entities in an effort to conceal the source of the funds. After disguising the provenance of the investor funds, Masselli typically went to work quickly misappropriating the funds.
Masselli also opened multiple credit card accounts, made purchases on those accounts until he had almost reached or exceeded the credit limit, and then purported to send payments from accounts that he knew did not have sufficient funds to cover those payments. Before the fraudulent payments were rejected for insufficient funds, the credit card companies temporarily credited the accounts based on those payments, providing Masselli access to additional credit and allowing him to continue to make purchases. Masselli ultimately failed to pay the balances and the credit card companies sustained a loss. On two occasions, Masselli contacted the victim credit card companies falsely claiming that the accounts had been opened fraudulently by others who had stolen his personal identifiable information.
The bank fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine. The wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud counts each carry a maximum potential penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Feb. 8, 2024.
The SEC previously filed a civil complaint against Masselli based on the securities fraud conduct.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea. He also expressed appreciation for the SEC Division of Enforcement, under the direction of Gurbir S. Grewal.
The government is represented by Assistant U.S. Attorneys Eric A. Boden, Attorney-in-Charge of the Trenton Office, and Alexander E. Ramey of the U.S. Attorney’s Trenton Office.
masselli.sindictment.pdfHudson County Man Sentenced to 90 Months in Prison for Role in Gang AssaultRead the Press Release
NEWARK, N.J. – A member of a neighborhood street gang in Hudson County, New Jersey, was sentenced to 90 months in prison for stabbing a rival gang member during a retaliatory gang-related assault, U.S. Attorney Philip R. Sellinger announced today.
Sheldon Mays, aka “Thottie,” 23, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of assault with a dangerous weapon – a knife – in aid of racketeering. Judge McNulty imposed the sentence on Sept. 18, 2023, in Newark federal court.
According to documents filed in this case and statements made in court:
On Aug. 3, 2020, Mays and seven others, all of whom are associated with a street gang operating in and around the Curries Woods Public Housing Complex in Jersey City – identified as “Curries Woods” or the “Tay Tay Shrimp Gang” or the “Sharks” – assaulted a rival gang member in retaliation for a prior gang-related assault. As the victim was walking down a street in Jersey City, Mays and the others approached in two cars, parked in the middle of the street, and violently assaulted the victim, who was punched, kicked, and stabbed by Mays, and suffered life-threatening injuries.
In addition to the prison term, Judge McNulty sentenced Mays to three years of supervised release.
U.S. Attorney Sellinger credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller; the Jersey City Police Department, under the direction of Public Safety Director James Shea; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and the Hudson County Department of Corrections with the investigation leading to the sentencing.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office Criminal Division in Trenton.
Pharmacy Operators and Pharmacist Charged with $33 Million Health Care Fraud, Wire Fraud, and Kickback ConspiracyRead the Press Release
NEWARK, N.J. – Two pharmacy executives and a pharmacist were arraigned today on charges of defrauding Medicare and TRICARE by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced. The pharmacy executives are also charged with paying and conspiring to pay illegal kickbacks.
William B. Welwart 69, of Staten Island, New York; Ethan B. Welwart, 35, of Bolivar, New York; and Gary Kaczka, 62, of Saddle Brook, New Jersey, are each charged in a 22-count indictment with conspiracy to commit health care fraud and wire fraud, and health care fraud. William and Ethan Welwart are additionally charged with wire fraud, conspiracy to violate the federal anti-kickback statute, and payment of illegal kickbacks. The defendants appeared today before U.S. District Judge Esther Salas and were each released on $250,000 bond.
According to the indictment:
From January 2017 to December 2020, the defendants operated pharmacies, including Apogee Bio-Pharm LLC in Edison, New Jersey. William B. Welwart was the CEO and owner of Apogee. Ethan B. Welwart was director of operations at Apogee and the purported owner of additional pharmacies used to perpetuate the scheme. Kaczka was a pharmacist-in-charge at Apogee. The defendants and others agreed to engage in a scheme to defraud insurance payors, including Medicare and TRICARE, by working with marketing companies to generate medically unnecessary prescriptions through a telemarketing and telemedicine scheme. The Welwarts and others also agreed to pay kickbacks to marketing companies in return for the marketing companies referring prescriptions for expensive medications to the pharmacies.
The marketing companies identified Medicare and TRICARE beneficiaries to target for expensive drugs and contacted the beneficiaries by telephone to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, and migraine medication. The marketing companies then transmitted recordings of telephone calls with the beneficiaries, together with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. The marketers paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions. The marketing companies then directed the prescriptions to pharmacies, including Apogee, with which they had kickback arrangements. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare and TRICARE. The pharmacies, including Apogee, then paid a portion of each reimbursement to the marketing companies as a kickback. The defendants and their conspirators caused a loss to Medicare and other federal health care benefit programs of over $33 million.
The health care fraud and wire fraud conspiracy charges 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 wire fraud charges carry a maximum potential penalty of 20 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 FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit, in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
apogee.indictment.pdfOcean County Man Charged with Sexually Exploiting MinorsRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man made his initial court appearance today on charges of producing and distributing videos and images depicting child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Christopher Budelman, 36, Brick, New Jersey, is charged by complaint with two counts of production of child pornography and one count of distribution of child pornography. He made his initial appearance before U.S. Magistrate Judge Douglas E. Arpert by videoconference and was detained.
According to documents filed in this case and statements made in court:
In June 2022, while communicating via an online video chat site, Budelman enticed at least two minors to engage in sexually explicit conduct while he masturbated. Budelman recorded and saved those video chats on his computer. From September 2021 to June 2022, Budelman used two Kik Messenger accounts to send images and videos containing child sexual abuse, including images and videos depicting prepubescent minors, to others.
The charges of sexual exploitation of children each carry a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charge of distribution of child exploitation material carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; the Ocean County Prosecutor’s Office High Tech Crime Unit, under the direction of Prosecutor Bradley D. Billhimer; the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; and Brick Township Police Department, under the direction of Chief David Forrester, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Ashley Super Pitts of the Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
budelman.complaint.pdfConnecticut Man Admits $2.19 Million Fraud Scheme Involving Kickbacks from Two French DistilleriesRead the Press Release
NEWARK, N.J. – A Connecticut man today admitted orchestrating a $2.19 million scheme to defraud an alcohol company and its owner by causing them to overpay for champagne and cognac and collecting kickbacks based on the inflated prices, U.S. Attorney Philip R. Sellinger announced.
Mitchell E. Green, 44, of Westport, Connecticut, pleaded guilty today before U.S. District Court Judge Michael E. Farbiarz in Newark federal court to an information charging him with one count of wire fraud.
“Though he was supposed to negotiate the best deal possible for his employer, Green set up secret side deals to inflate what his employer paid so that he could reap millions of dollars in kickbacks. Companies must be able to rely on the integrity of their agents to conduct business. When employees violate that trust and engage in fraud -- like the defendant did here -- this Office and our law enforcement partners are prepared to hold them accountable.”
U.S. Attorney Philip R. Sellinger
“As Green has discovered, there’s no such thing as easy money,” FBI-Newark Special Agent in Charge James E. Dennehy said. “The FBI works tirelessly to ensure that the consequences for this type of fraud far outweigh the initial payout.”
According to documents filed in the case and statements made in court:
From June 2017 through February 2020, Green worked for a Hoboken, New Jersey-based liquor company owned by an internationally recognized music artist, producer, and entrepreneur. Green secretly negotiated side agreements with two French distilleries to pay him kickbacks through his company, Q Branch LLC, for each bottle of champagne and cognac that Green’s employer purchased from the distilleries. Green caused his employer to unknowingly pay the cost of his kickbacks by hiding it in the per-bottle price that the distilleries charged for the champagne and cognac. Based on those inflated prices, Green’s employer paid $14.8 million for the champagne and cognac, and Green collected $2.19 million in hidden kickbacks from the French champagne and cognac distilleries.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered to the victims of his offense, whichever is greatest. Sentencing is scheduled for Jan. 23, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit and Ari B. Fontecchio of the Special Prosecutions Division..
green.information.pdfNew Jersey Construction Company Operator Pleads Guilty to Tax Crimes and Bankruptcy FraudRead the Press Release
A New Jersey man pleaded guilty yesterday to tax evasion, employment tax crimes, aiding the filing of false tax returns and making false statements in bankruptcy.
According to court documents and statements made in court, Zeki Donuk, of Landing, operated a construction business first under the name Titan Builders LLC and later as Titan Steel Construction LLC (collectively, “Titan”). From at least 2016 through 2019, Donuk cashed checks payable to Titan instead of depositing them into business bank accounts. Donuk concealed the cashed checks and did not report them either as gross receipts on Titan’s corporate tax returns or as income on his or his wife’s personal returns.
As part of his plea, Donuk admitted that from the third quarter of 2016 through the third quarter of 2017, he also did not collect, account for or pay over to the IRS employment taxes withheld from employees’ wages, despite a legal obligation to do so. For those quarters, Donuk also did not file quarterly employment tax returns on behalf of the businesses.
In 2019, Donuk made false statements on documents he filed in a personal bankruptcy case. Specifically, he concealed from the bankruptcy court that he owned a vacation property in Pennsylvania, had signatory authority over certain bank accounts, owed tax debts to the IRS and operated his construction business as Titan Builders and Titan Steel.
U.S. District Judge Esther Salas for the District of New Jersey set sentencing for Jan. 4, 2024. Donuk faces a maximum penalty of five years in prison for each count of tax evasion, failure to account for and pay employment taxes and bankruptcy fraud, and a maximum penalty of three years in prison for each false return. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement.
IRS-Criminal Investigation, the FBI and the Treasury Inspector General for Tax Administration are investigating the case.
Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Benjamin Levin for the District of New Jersey are prosecuting the case.
Jersey City Attorney Admits Wire Fraud, Aggravated Identity Theft, and Tax CrimesRead the Press Release
NEWARK, N.J. – A Jersey City attorney today admitted defrauding his clients of more than $2 million dollars and other crimes, U.S. Attorney Philip R. Sellinger announced.
James R. Lisa, 68, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with one count of wire fraud, one count of aggravated identity theft, one count of obstructing the IRS, one count of failing to file an individual income tax return, and one count of wire fraud while on pretrial release.
U.S. Attorney Philip R. Sellinger“James Lisa used his law license to execute a multimillion-dollar fraud scheme and rip off clients who placed their trust in him. Then, after being charged for that fraud, Lisa committed another when, posing as his own lawyer, he sent a bogus letter to a lender that falsely described the status of his criminal case. Lisa’s multiple criminal acts were serious violations of his oath as an officer of the court and a betrayal of his clients’ trust. He will now face justice for these crimes. The people of New Jersey must be able to rely on their attorneys without having to worry that they are being defrauded. Lisa’s guilty plea should reassure the public that our office will bring the full weight of the justice system on attorneys who violate federal the law.”
According to documents filed in this case and statements made in court:
In 2014, Lisa was retained by a family to help repatriate millions of dollars that had been transferred by other family members to offshore bank accounts decades earlier. Lisa was also retained to help resolve the tax issues related to the repatriation of the funds. In 2015, Lisa successfully repatriated more than $6 million of the family’s funds, but proceeded to falsely advise the family that the funds remained offshore. In 2017, Lisa provided $4 million of the repatriated funds to the family but continued to falsely represent that the remaining $2 million remained beyond his control.
Lisa falsely told the family that he successfully resolved the tax implications of repatriating the funds. In 2016, Lisa sent the family a fraudulent IRS “closing agreement” reflecting an agreement with the IRS for the family to pay $3 million in taxes and penalties for the repatriated funds. In 2018, Lisa sent the family another fraudulent closing agreement reflecting an agreement with the IRS for the family to pay $2 million in taxes and penalties because only $4 million was purportedly repatriated. In fact, the IRS never entered into these agreements and the IRS employees who purportedly signed the documents never did so. When one member of the family was audited by the IRS, the IRS issued Lisa a summons for records related to the family’s assets. In response to the summons, Lisa produced false and fraudulent documents suggesting that the IRS had agreed to closing agreements with the family.
In January 2023, Lisa was arrested after being charged with this fraud scheme and placed on pretrial release. One condition of his pretrial release was that he not commit another crime. In April 2023, Lisa committed wire fraud when he applied for a $22,000 loan. In order to obtain the loan, Lisa caused the creation and submission to the lender of a fraudulent document that purported to be a letter from the attorney then representing him in his criminal prosecution. Lisa caused the letter to be sent in order to defraud the lender about the status of the criminal prosecution so that the lender would approve the loan.
Lisa also admitted that he failed to file individual income tax returns for tax years 2015 through 2022, and as a result, caused a tax loss to the IRS of at least $550,000.
The count of wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest. The count of aggravated identity theft carries a statutory mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment, and a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest. The count of obstructing the IRS carries a maximum penalty of three years in prison and a fine of up to $250,000. The count of failure to file a tax return carries a maximum penalty of one year in prison and a fine of up to $100,000. The count of wire fraud while on pretrial release carries a maximum penalty of 10 years in prison, which must run consecutively to any other term of imprisonment, and a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest. Sentencing is scheduled for Jan. 25, 2024.
U.S. Attorney Sellinger credited special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), Mid Atlantic Field Division, under the direction of Special Agent in Charge Andrew McKay; and IRS - Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
lisa.sinformation.pdfNew York City Man Admits Role in Burglary Conspiracy Targeting Asian Small Business OwnersRead the Press Release
NEWARK, N.J. – A New York man admitted his role in a conspiracy that targeted Asian and Asian-American small business owners for burglaries, U.S. Attorney Philip R. Sellinger announced today.
James Hurt, 47, of New York, pleaded guilty Sept. 13, 2023, before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of conspiracy to commit interstate transportation of stolen property.
According to documents filed in this case and statements made in court:
From Dec. 2, 2016, to March 20, 2019, Hurt and others participated in a conspiracy to burglarize the residences of certain Asian small business owners living in New Jersey, New York, Pennsylvania, and Delaware of large sums of money, valuable jewelry, and other items, and then transport the stolen goods in interstate commerce, including to residences in New Jersey and Pennsylvania.
The charge of conspiracy to commit interstate transportation of stolen property carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the amount of money involved in the offense, whichever is greater. Sentencing is scheduled for Feb. 20, 2023.
U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy, in Newark, with the investigation leading to today’s guilty plea. He also thanked the South Plainfield Police Department, the Middlesex County Prosecutor’s Office, the New Jersey State Police, the Port Authority of New York and New Jersey, the U.S. Department of Labor, the U.S. Department of State, the Drug Enforcement Administration, the U.S. Customs and Border Protection, the U.S. Department of Transportation, the U.S. Postal Inspection Service, the Union County Prosecutor’s Office, and the Bernards Township, Bethlehem Township, Cherry Hill, Cinnaminson, Clark, Colonial Regional, Cranford, Delaware State Police-Troop 2, Delran, Edison, East Brunswick, East Hanover, Eatontown, Elizabeth, Essex County Sheriff’s Office-Bureau of Narcotics, Evesham Township, Exeter Township, Fair Lawn, Forks Township, Fort Lee, Franklin Township, Glassboro, Gloucester Township, Hackensack, Haverstraw, Hazlet, Highland Park, Hillside, Hillsborough Township, Howell Township, Jackson, Kenilworth, Lawrence Township, Linden, Lyndhurst, Mahwah, Marlboro Township, Maywood, Middletown, Montgomery County, Montville, Morris Township, Mount Laurel, Mountainside, New Castle County, New Providence, New York Police Department’s 105th Detective Squad, North Brunswick, North Plainfield, Old Bridge, Paramus, Parsippany, Phillipsburg, Piscataway, Pocono Mountain Regional, Pocono Township, Raritan, Roselle Park, Sayreville, Somerville, South Brunswick, South River, South Whitehall Township, Spotswood, Town of Tuxedo, Tinton Falls, Toms River, Township of Ocean, Union, Upper Macungie Township, Wall Township, Warren, Washington Township, Watchung, Westfield, Whitehall Township, and Woodbridge Township police departments.
The government is represented by Assistant U.S. Attorneys Dong Joo Lee and Christopher Fell of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.
hurt.information.pdfGang Members Admit Racketeering Charge and Related CrimesRead the Press Release
NEWARK, N.J. – Two members of the Rollin’ 60s Neighborhood Crips gang admitted their roles in a racketeering conspiracy, U.S. Attorney Philip R. Sellinger announced today.
Tyheim Terry, aka “Ty,” aka “Rollin’ Ty,” 25, and Amir Edmonds, aka “G Baby,” 22, each pleaded guilty on Sept. 13, 2023, before U.S. District Judge Susan D. Wigenton in Newark federal court to a superseding indictment that charged them with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy. Terry also pleaded guilty to carjacking and to brandishing a firearm in furtherance of the carjacking. Edmonds also pleaded guilty to possession with intent to distribute fentanyl and cocaine and to possessing a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
From 2015 through Sept. 22, 2022, Terry and Edmonds were members of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere.
On Feb. 21, 2021, Terry worked with others, including members of the gang, to attempt to carjack a victim. On April 5, 2021, Terry worked with other members of the gang to shoot another victim. On April 11, 2021, Terry brandished a firearm and carjacked a third victim. Edmonds admitted to working with at least one other member of the enterprise to distribute controlled substances. On Jan. 7, 2020, Edmonds possessed with intent to distribute cocaine and fentanyl, and possessed a firearm in furtherance of that drug offense.
Each defendant faces a maximum sentence of 20 years in prison and a fine of up to $250,000 on the racketeering conspiracy. Terry faces a maximum sentence of 15 years in prison and a fine of up to $250,000 on the carjacking, and a mandatory minimum prison sentence of seven years, and a maximum sentence of life in prison, which must run consecutively to any sentence imposed for the carjacking, as well as a fine of up to $250,000 on the firearms offense. Edmonds faces a maximum sentence of 20 years in prison and a fine of up to $1 million on the controlled substance offense, and a mandatory minimum prison sentence of five years, and a maximum sentence of life in prison, which must run consecutively to any sentence imposed for the controlled substance offense, as well as a fine of up to $250,000 on the firearms offense. Sentencing for Edmond is scheduled for Jan. 17, 2024, and for Edmonds, Jan.16, 2024.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller; investigators of the U.S. Marshals Service, under the direction of Marshal Juan Mattos; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Newark Police Department, under the direction of Public Safety Director Fritz Fragé; the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the East Orange Police Department, under the direction of Chief Phyllis L. Bindi; the Elizabeth Police Department, under the direction of Police Director Earl J. Graves; the Edison Police Department, under the direction of Chief of Police Tom Bryan; the New Jersey State Police, under the direction of 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, with the investigations leading to the charges in the Rollin 60’s Neighborhood Crips investigation.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division.
terryedmonds.sindictment.pdfFlorida Man Admits to Fraudulently Obtaining More Than $1.5 Million in Unemployment Benefits and EIDL LoansRead the Press Release
NEWARK, N.J. – A Florida man admitted that he illegally obtained more than $1.5 million in government benefits, U.S. Attorney Philip R. Sellinger announced today.
Michael Blanc, 34, of Miami, Florida, pleaded guilty on Sept. 13, 2024, before U.S. District Judge Michael A. Shipp in Trenton federal court on to an information charging him with wire fraud.
“This defendant admitted taking advantage of government programs that were specifically designed to provide needed financial assistance to Americans during the COVID-19 pandemic,” U.S. Attorney Sellinger said. “Combatting pandemic fraud in all of its forms is a top priority for this office and our law enforcement partners. Together, we will continue to root out those who have exploited the suffering of others to line their own pockets, and bring them to justice.”
According to documents filed in the case and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic. It expanded states’ ability to provide assistance to many workers impacted by COVID-19, including for workers who are not ordinarily eligible for unemployment insurance benefits. The CARES Act also enabled the Small Business Association (SBA) to offer funding through the COVID-19 Economic Injury Disaster Loans (EIDL) program to business owners negatively affected by the COVID-19 pandemic.
Blanc and others applied for unemployment insurance benefits in others’ names without their knowledge or consent and provided false information to induce state workforce agencies to approve those applications. He and others applied for EIDLs in others’ names without their knowledge or consent and provided false information in the applications to induce the SBA to approve the loan applications. Blanc and others obtained more than $1.5 million through their fraudulent scheme.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Blanc or twice the gross loss suffered by the victims. Sentencing is scheduled for Jan. 24, 2024.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone, in New York, and the U.S. Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge is Scott Moffit, Cybercrime Investigations Division, with the investigation leading to today’s guilty plea. He also thanked the FBI, Miami Division, and the New Jersey Department of Labor & Workforce Development for their assistance.
The government is represented by Senior Trial Counsel Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
blanc.information.pdfCamden County Man Admits Conspiring to Commit Bank Fraud and Credit Card FraudRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man today admitted participating in schemes to negotiate fraudulent checks with forged signatures and to use credit cards without authorization, U.S. Attorney Philip R. Sellinger announced.
Emmanuel Yirenkyi, 29, of Pine Hill, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of bank fraud conspiracy and one count of access device fraud conspiracy.
According to documents filed in this case and statements made in court:
Yirenkyi conspired with Misty Sarfo-Adu, Eugene Koranteng, and others to commit bank fraud by obtaining blank checks containing the names and account information of unsuspecting customers of a credit card company. They made the checks payable to members of the conspiracy, forged the customers’ signatures on the checks, and negotiated the checks at financial institutions. In a separate scheme, Yirenkyi and Sarfo-Adu also conspired to use credit cards without the account holders’ knowledge or authorization. Yirenkyi admitted that the fraud schemes caused a loss to the credit card company of more than $150,000.
The count of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a fine of up to $1 million. The count of conspiracy to commit access device fraud carries a maximum penalty of five years in prison and a fine of up to $250,000. Sentencing is scheduled for Jan. 16, 2024.
Sarfo-Adu previously pleaded guilty before Judge Kugler to his participation in the same conspiracies and is scheduled to be sentenced Nov. 28, 2023.
Koranteng remains charged by complaint. The charge and allegations contained in the complaint against Koranteng are merely accusations, and Koranteng is presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to today’s guilty plea. U.S. Attorney Sellinger also thanked the Moorestown Police Department for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
yirenkyi.information.pdfNew York Man Admits Possessing Fentanyl with Intent to Distribute, Resisting ArrestRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted possessing fentanyl with intent to distribute and resisting his arrest with a deadly or dangerous weapon, U.S. Attorney Philip R. Sellinger announced.
Miguel Nuñez, 50, of Bronx, New York, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with one count of possessing 40 grams of fentanyl with intent to distribute and one count of resisting and impeding officers with a deadly or dangerous weapon.
According to documents filed in this case and statements made in court:
On March 24, 2021, Nuñez and Jesus Higuera-Parra, 28, of Ontario, California, drove from New York City to Elizabeth, New Jersey, for the purposes of distributing fentanyl. When they arrived to meet the drug purchaser, they were approached by members of the Drug Enforcement Administration (DEA). Nunez, the driver of the vehicle, put his car in reverse and attempted to elude the law enforcement personnel, which resulted in a collision with a DEA car.
The narcotics offense to which Nunez pleaded guilty carries a mandatory minimum term of five years in prison, a maximum penalty of 40 years in prison, and a fine of $5 million. The resisting and impeding offense to which Nunez pleaded guilty carries a maximum penalty of 20 years in prison, and a fine of $250,000. Sentencing is scheduled for Jan. 23, 2023.
Higuera-Parra previously pleaded guilty to an information charging him with possessing with intent to distribute fentanyl and is awaiting sentencing.
U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Ray Mateo of the Opioid Abuse Prevention and Enforcement Unit and Benjamin Levin of the National Security Unit.
nunez.information.pdfU.S. Attorney Sellinger to Hold Fourth Town HallRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger and members of his staff will meet with residents in Trenton next week at the fourth in a series of planned town hall meetings. The town hall series is one initiative of U.S. Attorney Sellinger to engage directly with citizens’ concerns and ultimately to improve public safety in New Jersey.
The town hall will be held on Tuesday, Sept. 12, 2023, doors opening at 6:00 p.m., with the program beginning promptly at 6:30 p.m. and running until 8:30 p.m. at the Greater Mt. Zion AME Church, 42 Pennington Ave., Trenton, New Jersey, 08618. U.S. Attorney Sellinger and members of his staff will discuss the work of his office in a variety of areas, including federal civil rights enforcement, bias and hate crimes, environmental justice, violent crime, opioid-related crime, and post-incarceration programs.
This is a community event and is open to the public.
Hudson County Real Estate Investor Sentenced to Two Years in Prison for Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, real estate investor was sentenced today to 24 months in prison for conspiring to orchestrate a fraudulent home equity line of credit scheme that led to over $400,000 in losses, U.S. Attorney Philip R. Sellinger announced today.
Anthony Garvin, 53, of Jersey City, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to one count of conspiracy to commit bank fraud and four counts of bank fraud. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between 2011 and 2014, Garvin orchestrated a scheme to defraud banks by conspiring with others to fraudulently obtain multiple home equity lines of credit, known as HELOCs, on real estate that Garvin owned. To hide his fraud from lenders, Garvin and his conspirators prepared and submitted loan applications that contained lies and fake supporting documents, including fake pay stubs, W-2 forms, tax returns, bank account statements, and deeds. Garvin split his fraud proceeds with his conspirators and defaulted on all of the loans. Garvin’s scheme ultimately resulted in over $400,000 in loses to the lenders.
In addition to the prison term, Judge Hayden sentenced Garvin to three years of supervised release.
Two conspirators previously pleaded guilty and are awaiting sentencing.
U.S. Attorney Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and special agents of 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. Attorneys Blake Coppotelli and Anthony Torntore of the District of New Jersey.
Justice Department Awards Funding for Legal Services and Improved Court Responses to Domestic and Sexual ViolenceRead the Press Release
NEWARK, N.J. – The Department of Justice Office on Violence Against Women (OVW) awarded more than $1.3 million to two programs in the state to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking, U.S. Attorney Philip R. Sellinger announced today.
The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety. The awards to New Jersey are:
- OVW awarded $750,000 under the Legal Assistance for Victims (LAV) Program to 180 Turning Lives Around Inc. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking.
- OVW awarded $599,512 under the Justice for Families (JFF) Program to the Essex County Family Justice Center Inc. The JFF Program aims to improve the capacity of communities and courts to respond to families impacted by violence.
U.S. Attorney Philip R. Sellinger“There is an urgent need to fund programs for survivors of sexual assault, domestic violence, dating violence, and stalking, so I am pleased to announce that two programs in the District of New Jersey have been awarded funding from the Justice Department’s Office on Violence Against Women. These funds will help survivors who are struggling with the emotional and physical toll of violence to navigate the complex and often overwhelming legal system. The programs this money will help fund will provide needed legal support to ensure justice and safety for survivors.”
“The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system's approach to supporting families affected by violence,” OVW Director Rosemarie Hidalgo said. “These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.”
The U.S. Attorney’s Office has an unyielding commitment to combat sexual misconduct. As part of the Justice Department’s initiative to combat sexual harassment in housing, the U.S. Attorney’s Office routinely conducts community outreach throughout New Jersey to help identify and encourage reporting of sexual misconduct. This outreach ultimately led to a landmark lawsuit and $4.5 million monetary settlement against a landlord who the United States alleged demanded sex acts from dozens of tenants under the threat of eviction or other negative consequences. In addition, the U.S. Attorney’s Office brought an investigation that revealed that the Edna Mahan Correctional Facility for Women failed to protection inmates from sexual abuse by staff. This lawsuit resulted in a consent decree that required the New Jersey Department of Corrections to implement reforms to ensure incarcerated women are protected from sexual abuse.
OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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Union County Man Sentenced to 42 Months in Prison for Disaster Benefits Fraud, Business Impersonation Fraud, COVID-19 Loan Fraud, and Treasury Check FraudRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 42 months in prison for disaster benefits fraud, business impersonation fraud, COVID-19 loan fraud, and Treasury check fraud, U.S. Attorney Philip R. Sellinger announced.
Roy John Depack Jr., 49, of Union, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of disaster fraud, two counts of wire fraud, and one count of forging or fraudulently endorsing Treasury checks. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In September 2021 and October 2021, Depack filed two applications with the Federal Emergency Management Agency (FEMA) fraudulently seeking disaster relief provided in the wake of Tropical Storm Ida. In one application, Depack falsely claimed to be another individual and the owner of a property in Newark, and in the other application, Depack falsely stated that he was the owner of a property in Union that he actually rented. Based on Depack’s misrepresentations, FEMA granted one of Depack’s applications and awarded Depack $24,069 in disaster assistance.
From 2020 through 2022, Depack defrauded victim companies by pretending to be representatives of various other companies and ordering merchandise that Depack then intercepted. He fraudulently obtained tens of thousands of dollars in merchandise from two different companies.
In January 2021, Depack also submitted a fraudulent Economic Injury Disaster Loan (EIDL) application to the U.S. Small Business Administration and falsely claimed to be another individual and to own a cleaning company based in Union, New Jersey.
In September 2021, Depack improperly obtained, endorsed, and deposited at least two checks issued by the U.S. Treasury and made out in the names of two other individuals, which value totaled more than $1,000.
In addition to the prison term, Judge Martini sentenced Depack to three years of supervised release and ordered him to pay $123,489 in restitution.
U.S. Attorney Sellinger credited postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents with the U.S. Department of Homeland Security – Office of Inspector General, New York Field Office, under the direction of Special Agent in Charge Brian C. McCarthy; and special agents with the Treasury Inspector General for Tax Administration, Mid Atlantic Field Division, under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Mark J. Pesce of the Economic Crimes Unit in Newark.
Philadelphia Man Sentenced to 15 Months in Prison for Role in Healthcare Fraud Conspiracy Targeting New Jersey Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A Philadelphia man was sentenced today to 15 months in prison for his role in defrauding New Jersey state health benefits programs and other insurers out of $2.69 million by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Robert Bessey, 49, of Philadelphia, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with conspiracy to commit health care fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From January 2015 through April 2016, Bessey, a recruiter in the conspiracy, and others persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy. The conspirators learned that a pharmacy benefits administrator would reimburse pharmacies thousands of dollars for a one-month supply of certain prescription compounded medications, including pain, scar, antifungal, and libido creams, as well as over $10,000 per month for certain vitamin combinations.
The pharmacy benefits administrator managed the prescription drug benefit plan for some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers. The conspirators recruited public employees and other individuals covered by the pharmacy benefits administrator to fraudulently obtain compounded medications from the compounding pharmacy without any evaluation by a medical professional that they were medically necessary.
In addition to the prison term, Judge Kugler sentenced Bessey to two years of supervised release. Bessey was ordered to forfeit $485,540 and pay restitution of $2.69 million.
Attorney for the United States Khanna 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, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the sentencing.
The government is represented by R. David Walk Jr., Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Daniel Friedman of the Criminal Division in Camden.
Five Men Charged with Using New York Diamond District Companies as Fronts to Illegally Move More Than $600 MillionRead the Press Release
NEWARK, NJ. – Five men who work in New York City’s Diamond District were arrested today and charged with illegally processing more than $600 million through unlicensed money transmitting businesses, U.S. Attorney Philip R. Sellinger announced.
Raj Vaidya, 26; Rakesh Vaidya, 51; Shrey Vaidya, 23; and Neel Patel, 26, all of Edison, New Jersey; and Youssef Janfar, aka “Joe Rodeo,” 57, of Great Neck, New York, are each charged by complaint with one count of operating and aiding and abetting the operation of an unlicensed money transmitting business. The defendants appeared before U.S. Magistrate Judge Edward S. Kiel in Newark federal court and were released on unsecured bond.
According to documents filed in this case and statements made in court:
Since 2019, Raj Vaidya, Rakesh Vaidya, Shrey Vaidya, and Patel have operated numerous purported diamond, gold, and jewelry companies in New York City’s Diamond District, including Arya Diamond Jewellery USA Inc., d/b/a “Karats & Carats,” Diamspark LGD LLC, Royal Diamonds LLC, Raj Gold and Diamond LLC, Royal Arya Jewellery Inc, and Raj Gold and Diamond Inc. Janfar also purportedly operated companies in the Diamond District, including Rodeo of NY, d/b/a “Sarah Jewels.” The defendants used these and other entities as fronts to conduct hundreds of millions of dollars in illegal financial transactions for customers – including converting cash to checks or wire transfers – in exchange for substantial fees. At times, they moved millions of dollars in cash in a single day. None of their companies were registered as money transmitting businesses with New York, New Jersey, or the Financial Crimes Enforcement Network (FinCEN).
The charge of operating and aiding and abetting the operation of an illegal money transmitting business carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross amount of any pecuniary gain that any persons derived from the offense or of any pecuniary loss sustained by any victims of the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; special agents 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 agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel; with the investigation leading to the charges. He also thanked the Justice Department’s Money Laundering and Asset Recovery Section (MLARS), the Parsippany-Troy Hills Police Department, the Morristown Police Department, the Federal Deposit Insurance Corporation – Office of Inspector General, and the New York City Police Department 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 Mark J. Pesce of the Economic Crimes Unit, Olta Bejleri of the Organized Crime/Gangs Unit, and Angelica Sinopole of the Health Care Fraud Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
vaidya.complaint.pdfDepartment of Justice’s Civil Rights Division and U.S. Attorney’s Office for the District of New Jersey Find State of New Jersey Provides Constitutionally Deficient Care at Two State Run Veterans’ HomesRead the Press Release
NEWARK, N.J. – The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey announced today that they have concluded an investigation into whether New Jersey subjected residents of two veterans’ homes to conditions that violate the 14th Amendment of the United States Constitution.
The department found reasonable cause to believe the residents of the New Jersey Veterans Memorial Homes at Menlo Park and Paramus face unreasonable harm and risk due to inadequate infection control practices and inadequate medical care, in violation of the U.S. Constitution. The New Jersey Department of Military and Veterans Affairs operates the homes, which provide long-term nursing care to veterans and their families.
“Those who served to protect this nation and their families are entitled to appropriate care when they reside at a veterans’ home,” U.S. Attorney Philip R. Sellinger for the District of New Jersey said. “The Paramus and Menlo Park veterans’ homes fail to provide the care required by the U.S. Constitution and subject their residents to unacceptable conditions, including inadequate infection control and deficient medical care. These conditions must swiftly be addressed to ensure that our veterans and their families at these facilities receive the care they so richly deserve. We will not stop working until they do.”
“We owe the veterans who served our nation our deepest thanks, and those veterans and their family members who live in these facilities have the right to appropriate care,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “Based on our investigation, we have found that these facilities have provided inadequate protection from infections and deficient medical care, which have caused these veterans and their families great harm. We look forward to working with the New Jersey Department of Military and Veterans Affairs to improve the conditions in these homes they operate and ensure these veterans and their families receive the care they need and deserve.”
The inadequate infection control practices and inadequate medical care at the homes are compounded by a lack of effective management and oversight. Such deficiencies expose residents to uncontrolled, serious and deadly infections and have resulted in the veterans’ homes suffering among the highest number of resident deaths of all similarly sized facilities in the region.
The investigation was conducted under the Civil Rights of Institutionalized Persons Act (CRIPA), which authorizes the Justice Department to act to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run residential institutions.
As required by CRIPA, the department provided the state with written notice setting out the department’s conclusions and the supporting facts. The department also notified the state of the minimum remedial measures necessary to address the alleged violations.
The United States is represented by Assistant U.S. Attorneys Susan Millenky and Thandiwe Boylan of the U.S. Attorney’s Civil Rights Division; Michael Campion, Chief of the Civil Rights Division; Caroline Sadlowski, Counsel to the U.S. Attorney; and attorneys from the Special Litigation Section of the Justice Department’s Civil Rights Civil Rights Division.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of New Jersey is available on its website at www.justice.gov/usao-nj/civil-rights-enforcement.
njveteranshomesfindings.report.pdfEssex County Man Admits Conspiring to Commit Mortgage FraudRead the Press Release
NEWARK, N.J. – An Essex County man today admitted that he conspired with others to commit mortgage fraud, U.S. Attorney Philip R. Sellinger announced.
Cabral Simpson, 46, of Orange, New Jersey, pleaded guilty by before U.S. District Judge Kevin McNulty to Count One of an indictment charging him with conspiring to commit wire fraud.
According to documents filed in the case and statements made in court:
Simpson, a real estate investor, and his conspirators engaged in mortgage fraud by creating fake bank statements and fake employee verification records for buyers of properties and transferring money into the buyers’ bank accounts for payment of the deposit for a property. Simpson and his conspirators submitted fraudulent mortgage loan applications, supporting documents, and closing documents on behalf of the buyers. They also induced lenders to issue more than $1 million in loans, resulting in defaults and exposing the lenders and the U.S. Department of Housing and Urban Development to more than $1 million in losses.
The charge of conspiracy to commit wire fraud to which Simpson pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Simpson or twice the gross loss suffered by the victims. Sentencing is scheduled for Jan. 10, 2024,
U.S. Attorney Sellinger credited special agents of the U.S. Department of Housing and Urban Development – Office of the Inspector General, under the direction of Special Agent in Charge Christina D. Scaringi in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
simpson.indictment.pdfKuwaiti Man Charged with Abusive Sexual Contact on AirplaneRead the Press Release
NEWARK, N.J. – A Kuwaiti man appeared in federal court today for alleged abusive sexual contact with a female passenger on a flight to Newark Liberty International Airport, U.S. Attorney Philip Sellinger announced.
Hasan Naser Hussain Alenezi, 18, of Kuwait, is charged by complaint with one count of abusive sexual contact on an airplane. He had an initial appearance before U.S. Magistrate Judge José R. Almonte in Newark federal court and was released on $100,000 unsecured bond, with home detention and GPS monitoring.
According to documents filed in this case and statements made in court:
While on a Nov. 27, 2022, flight from Los Angeles, California, to Newark, Alenezi sat next to a female passenger, who was seated next to the window, instead of sitting in his assigned seat. Alenezi was unknown to the victim. While seated next to the victim, Alenezi repeatedly touched her groin and leg without her permission.
The abusive sexual contact charge is punishable by a maximum penalty of two years in prison and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Jenny Chung of the Office’s OCDETF/Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
alenezi.complaint.pdfWatermark Retirement Communities to Pay $4.25 Million for Allegedly Receiving Kickback in Violation of the False Claims ActRead the Press Release
NEWARK, N.J. – The Arizona-based operator of a senior living community has agreed to pay $4.25 million to resolve allegations that it violated the False Claims Act by soliciting and receiving a kickback from a nationwide home health agency (HHA) operator in order to facilitate referrals from Watermark retirement homes.
Watermark Retirement Communities LLC is a senior living community operator based in Tucson, Arizona, that manages 79 retirement homes across the country. The United States alleged that the HHA operator purchased two of Watermark’s HHAs in Arizona to induce referrals of Medicare beneficiaries living in Watermark residential communities.
The scheme was designed around eight Watermark retirement homes in five states (Arizona, Connecticut, Delaware, Florida, and Pennsylvania), where the two companies had overlapping operations. The United States alleged that from Jan. 1, 2014, through Oct. 31, 2020, Watermark caused the HHA operator to submit false claims for payments to Medicare for services provided to Medicare beneficiaries referred as a result of the kickback transaction. The Antikickback Statute prohibits parties who participate in federal health care programs from knowingly and willfully soliciting or receiving any remuneration in return for referring an individual to, or arranging for the furnishing of any item or services for which payment is made by, a federal health care program.
U.S. Attorney Philip R. Sellinger“Whether you pay them or receive them, kickbacks undermine the integrity of our health care system. Patients need to know the health care referrals they receive are in their best interest, not in the best interest of someone else’s bottom line. Our office will always be on guard to prevent unscrupulous operators from trying to take financial advantage of our health care system.”
“It is imperative that decisions about the care provided to federal health care beneficiaries are not undermined by the payment of kickbacks,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “Today’s resolution demonstrates that the Department is committed to holding accountable not only those who offer kickbacks but also those who receive them.”
The settlement announced today includes the resolution of claims brought under the qui tam, or whistleblower, provisions of the False Claims Act by David Freedman, who was the former director of strategic growth for the HHA operator between 2009 and 2016. The qui tam provisions permit a private party to file an action on behalf of the United States and receive a portion of any recovery. As part of today’s resolution with Watermark, Freedman will receive approximately $765,000. In September 2021, the HHA operator entered into a $17 million settlement with the United States to resolve the claims against it arising out of the same transaction, meaning that the qui tam has resulted in recoveries exceeding $21.25 million.
The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the District of New Jersey, and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Assistant U.S. Attorney Jordann Conaboy of the U.S. Attorney’s Office for the District of New Jersey, as well as Trial Attorneys Daniel Meyler and Samson Asiyanbi of the Fraud Section.
The case is docketed as United States ex rel. Freedman v. Bayada Home Health Care, Inc., Civ. No. 17-6267 (D.N.J.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
watermark.settlement.pdfSomerset County Resident Admits Distributing Child PornographyRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, resident today admitted distributing videos and images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Marcevan Manasse, 28, Somerville, New Jersey, pleaded guilty today before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging one count of distribution of child pornography.
According to documents filed in this case and statements made in court:
From Sept. 20, 2020, through Nov. 22, 2020, Manasse distributed material containing images and video files of child sexual abuse, via a publicly available online peer-to-peer (P2P) file-sharing network of linked computers. Law enforcement officers conducted an undercover online session to access the P2P program and to download five video files and 11 images containing child pornography from an IP address assigned to an internet service provider account associated with Manasse’s residence. These files included multiple visual depictions of pre-pubescent children being sexually abused by adults.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. Sentencing is scheduled for Jan. 23, 2024.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to today’s guilty plea. He also thanked the Somerset County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the Criminal Division in Newark.
manasse.information.pdfPassaic County Man Charged in $13 Million Technology Support Scam Targeting over Seven Thousand U.S. VictimsRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was arrested today in connection with a technical support scam that targeted more than 7,000 victims in the United States, consisting mainly of small business owners and the elderly, defrauding those victims of more than $13 million, U.S. Attorney Philip R. Sellinger announced.
Manoj Yadav, 40, of Clifton, New Jersey, is charged by complaint with one count of conspiracy to commit wire fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge José R. Almonte in Newark federal court.
“The defendant and his conspirators are alleged to have misled their numerous victims into thinking that they were a legitimate technology support company affiliated with a major software company. After claiming to provide technical support for issues involving the software company’s popular accounting software, they allegedly charged the victims exorbitant fees for purported support services that were not authorized by the software company.”
U.S. Attorney Philip R. Sellinger
“We allege Yadav lied to software users and forced them to pay for services that would usually come free with their initial purchase,” FBI Special Agent in Charge James E. Dennehy said. “The amount he's accused of stealing from his victims and the number of victims seem shocking; however, we are seeing an incredible increase in all types of tech support scams. The fraudsters are pretty savvy in how they con money out of people, even those of us who think we’re smart enough to not fall for it. If you think you’re a victim, please reach out to the FBI.”
According to documents filed in this case and statements made in court:
From 2017 through 2023, Yadav and his conspirators, many of whom were in India, fraudulently held themselves out as a technology support company affiliated with a major U.S. business and accounting software company that developed and sold a widely used accounting software product. They operated under multiple fraudulent business names, including “Phebs Software Services, LLC,” “Phebs Software Services,” “PN Bookkeeping Services,” “Phebbs Consulting,” “Quickbooks Tech Assist,” “Quickbook US,” “Quickbooks Accounting,” and “Quickbooks Support Team.”
The conspirators would contact victims under the guise of fixing victims’ technical issues with the accounting software. After receiving tech support from the conspirators under these fraudulent pretenses, the victims would either be charged exorbitant fees or additional subscription fees. These “services” were all fraudulent: They would not cost any additional money for customers who contacted the actual software company, and the software company never authorized Yadav or his conspirators to act on its behalf or charge any fees.
Yadav personally participated in the scheme by charging the victims for the fraudulent technology support services and funneling millions of dollars from these victims to his conspirators. Yadav fraudulently obtained these funds through the Phebs Software Services, LLC, which Yadav himself formed. That entity did business as both “Phebs Software Services” and “Quickbooks Accounting.” Yadav also used these entity names to falsely hold himself out to banks and victim customers as an accounting company legitimately affiliated with the software company. He did this to prevent charge backs, Better Business Bureau complaints, and the closure of bank accounts. Yadav sent his conspirators over $13 million in funds obtained from victims and would routinely keep approximately 17 percent when he wired funds to the conspirators.
The count of conspiracy to commit wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000 or twice the gross profit or loss caused by the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Jake A. Nasar 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.
yadav.complaint.pdfMercer County Man Admits Soliciting Kickbacks in COVID-19 Testing Kickback ConspiracyRead the Press Release
NEWARK, N.J. – A Mercer County, New Jersey, man admitted his role in a kickback conspiracy involving COVID-19 testing, U.S. Attorney Philip R. Sellinger announced today.
Tauqir Khan, 65, of Pennington, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with one count of conspiracy to violate the Anti-Kickback Statute for his role in a scheme to obtain kickbacks for the referral of COVID-19 test samples.
U.S. Attorney Philip R. Sellinger“Clinical laboratories and health care professionals are on notice: paying kickbacks to steer tests to a lab may break the law. This office is committed to using all the tools at our disposal to keep illegal kickbacks out of our health care system and preserve the integrity of medical decision making.”
“Clinical laboratories and health care professionals are on notice: paying kickbacks to steer tests to a lab may break the law,” U.S. Attorney Sellinger said. “This office is committed to using all the tools at our disposal to keep illegal kickbacks out of our health care system and preserve the integrity of medical decision making.”
“There were many fraudsters who saw the global pandemic as a get rich quick gold mine. Khan and his conspirators were no different, soliciting kickbacks and wrongfully billing health care programs,” FBI – Newark Special Agent in Charge James E. Dennehy said. “It may take time, but FBI Newark and our law enforcement partners are bringing to justice those who stole money that wasn't intended for their bank accounts.”
According to documents filed in the case and statements made in court:
Khan and his conspirators solicited kickbacks in exchange for providing COVID-19 test samples to Metpath Laboratories, a clinical laboratory located in Parsippany, New Jersey, that conducted testing to detect the presence of COVID-19 in samples obtained from individual patients. Metpath paid kickbacks for the referrals of COVID-19 test samples and subsequently billed Medicare and other health care benefit programs for the tests.
The charge of conspiracy to violate the Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest. Sentencing is scheduled for Jan. 11, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney DeNae M. Thomas of the Health Care Fraud Unit in Newark.
khan.information.pdfU.S. Attorney’s Office and HHS Secure Agreement with New Jersey Home Healthcare Provider to Resolve HIV DiscriminationRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the U.S. Department of Health and Human Services Office for Civil Rights (HHS OCR) have secured a settlement agreement to resolve allegations that a home healthcare provider discriminated against a person with HIV.
Comfort Hands Home Healthcare LLC (Comfort Hands) of Marlton, New Jersey, a home healthcare provider, has agreed to resolve allegations that it discriminated against a person with HIV in violation of the Americans with Disabilities Act (ADA), the Rehabilitation Act, and the Patient Protection and Affordable Care Act. This settlement follows the government’s investigation in which it found that Comfort Hands unlawfully denied home healthcare services to a potential client based on her HIV status.
U.S. Attorney Philip R. Sellinger“People with HIV should not face discrimination, especially from healthcare providers. The Americans with Disabilities Act prohibits providers from denying services based on an individual’s HIV status. Today’s agreement will ensure that this home healthcare provider lives up to that obligation going forward. This office remains committed to ensuring that individuals with HIV and other disabilities are protected from unlawful discrimination.”
“People with HIV should not face discrimination, especially from healthcare providers.” U.S. Attorney Philip R. Sellinger said. “The Americans with Disabilities Act prohibits providers from denying services based on an individual’s HIV status. Today’s agreement will ensure that this home healthcare providers lives up to that obligation going forward. This office remains committed to ensuring that individuals with HIV and other disabilities are protected from unlawful discrimination.”
“The HHS Office for Civil Rights has a long history of taking enforcement actions to protect the rights of people with disabilities, including those with HIV,” OCR Director Melanie Fontes Rainer said. “Today’s important settlement tangibly contributes to our efforts to ensure nondiscrimination in HHS-funded services. It also advances our newly reinvigorated Olmstead Initiative by removing discriminatory barriers to ensure individuals with disabilities can be served in their own homes and communities.”
Under the settlement agreement, Comfort Hands will implement a non-discrimination policy to ensure that individuals with disabilities, including those with HIV or who are perceived to have HIV, are afforded full and equal opportunities to its benefits and services. Comfort Hands will also provide mandatory non-discrimination training to its employees and pay damages to the individual who experienced this act of discrimination.
The ADA prohibits places of public accommodation, such as Comfort Hands, from discriminating against people with, or perceived to have, disabilities, including HIV. Section 504 of the Rehabilitation Act prohibits discrimination based on disability in any program or activity receiving federal financial assistance from HHS, while Section 1557 of the Patient Protection and Affordable Care Act does the same with respect to certain health programs and activities.
Last year, U.S. Attorney Sellinger created a Civil Rights Division with the sole focus of enforcing federal civil rights laws, including the ADA, with the goal of protecting and upholding the civil rights of those in our community. Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint.
For more information on the ADA and HIV discrimination, visit www.ada.gov/aids. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD). For more information on Section 504 of the Rehabilitation Act and how it protects individuals with disabilities, visit: https://www.hhs.gov/civil-rights/for-individuals/disability/index.html. For more information on the nondiscrimination provisions in Section 1557 of the Affordable Care Act, visit: https://www.hhs.gov/civil-rights/for-individuals/section-1557/index.html. For more information about OCR’s Olmstead activities, visit: https://www.hhs.gov/civil-rights/for-individuals/special-topics/community-living-and-olmstead/index.html. You may file a complaint with OCR at: https://www.hhs.gov/ocr/complaints/index.html.
The government is represented by Assistant U.S. Attorneys Susan Millenky and Emily B. Goldberg of the U.S. Attorney’s Office’s Civil Rights Division and Jaimenys Taveras, Investigator, Eric Brown, SEOS, Frank Musumici, SEOS, Linda C. Colon, Regional Manager and Fernando Morales, Regional Civil Rights Attorney HHS OCR, Attorney Advisors, Marie Soueid and Chayhann Mars, Office of the General Counsel Civil Rights Division.
comforthands.settlement.pdfTwo Individuals Admit Conspiring with Convicted Ponzi Schemer and Others to Defraud Investors of Tens of Millions of DollarsRead the Press Release
TRENTON, N.J. – Two individuals today admitted conspiring with a twice-convicted fraudster to defraud investors of more than $35 million, U.S. Attorney Philip R. Sellinger announced.
Christopher Anderson, 47, of Flemington, New Jersey, and Richard Curry, 36, of Northumberland, 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 commit securities fraud. Anderson and Curry admitted conspiring with others, including Eliyahu “Eli” Weinstein, whose 24-year federal prison sentence was commuted after being twice convicted of defrauding investors of a total of $230 million.
U.S. Attorney Philip R. Sellinger“These two defendants admitted scheming with Eli Weinstein and others to rip off investors to the tune of millions of dollars. They admitted that this scheme used phony identities and false promises of access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine to defraud their victims. They will now face justice for their crimes, and we will continue to pursue the other alleged conspirators.”
“Anderson and Curry are admitting they took part in a scheme that created millions of dollars in loss for the victims,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Although it's not easily understood, scams like this impact people's lives in a very real way. We're asking anyone who believes they are a victim or know of an investment that doesn't pass the smell test, to reach out to us at the Newark FBI. We will do all we can to hold those fraudsters accountable and protect the next potential victim.”
According to documents filed in this case and statements made in court:
Weinstein, Aryeh “Ari” Bromberg, Joel Wittels, Shlomo Erez, and Alaa Hattab were previously charged by complaint with conspiracy to commit wire fraud and conspiracy to obstruct justice based on allegations arising from the same scheme in which Anderson and Curry pleaded guilty today. That complaint remains pending.
Anderson and Curry admitted, among other things, to conspiring with each other, Weinstein, Bromberg, Wittels, Hattab and Erez to make materially false and misleading statements and omissions to investors and potential investors. These statements included actively concealing Weinstein’s identity, history of fraud and role in purported investments, and falsely claiming that investors funds would be used to invest in lucrative deals.
Weinstein was convicted two times in New Jersey federal court for defrauding investors. His first case involved a real estate Ponzi scheme, and his second case stemmed from additional fraud Weinstein committed while on pretrial release. For these crimes, which resulted in combined losses to investors of approximately $230 million, Weinstein was sentenced to serve 24 years in prison, followed by three years of supervised release. On Jan. 19, 2021, after Weinstein had served less than eight years in prison, the President of the United States at that time commuted Weinstein’s term to time served, leaving intact the rest of his sentence.
Conspiracy to commit securities fraud carries a maximum penalty of 20 years in prison and a $5 million fine. Sentencing for Anderson is scheduled for Jan. 16, 2024, and for Curry, Jan. 18, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy, with the investigation leading to the charges in this case. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Antonia Apps, Director of the SEC’s New York Regional Office.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Emma Spiro of the Economic Crimes Unit in Newark.
The charges and allegations against Weinstein, Bromberg, Wittels, Erez, and Hattab, are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
curry.information.pdf anderson.information.pdfMercer County Couple Indicted for Conspiring to Submit Fraudulent Asylum ApplicationsRead the Press Release
NEWARK, N.J. – A Mercer County couple was indicted for conspiring to prepare and submit fraudulent asylum applications, U.S. Attorney Philip R. Sellinger announced today.
Zuwairul Ameer, aka “Zuwairul Thowfeek,” 61, and Claudette Ameer, aka “Claudette Pieries,” 63, both of Lawrence Township, New Jersey, were both indicted on Aug. 29, 2023, on one count of conspiring to commit immigration fraud and one count of committing immigration fraud.
According to documents filed in this case and statements made in court:
Applicants for asylum in the United States must show that they have suffered persecution in their country of origin on account of race, religion, nationality, political opinion, or membership in a particular social group, or have a well-founded fear of persecution if they were to return to that country. The process requires an application that is reviewed by an asylum officer with the U.S. Citizenship and Immigration Services (USCIS), who makes an initial determination whether to grant asylum. If the application has been prepared by someone other than the applicant, the preparer must disclose his or her name and address and must sign the application.
Since at least 2007, Zuwairul Ameer has been in the business of preparing fraudulent asylum application on behalf of his non-citizen clients. Claudette Ameer has managed that business, acting as the primary point of contact for clients, arranging meetings, and mailing completed applications to USCIS. With Claudette Ameer’s assistance, Zuwairul Ameer met with clients, listened to their stories of mistreatment in their countries of origin, and drafted applications on their behalf that were fraudulent because they exaggerated the stories of mistreatment, falsely omitted Zuwairul Ameer’s name as the preparer, or both.
U.S. Attorney Sellinger credited special agents of the FBI - New York Field Office, under the direction of Assistant Director in Charge James Smith and immigration officers with of the USCIS Fraud Detection and National Security Directorate at the New York Asylum Office, under the direction of Director Patricia Menges, with the investigation.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Aaron L. Webman of the Criminal Division in Newark.
ameer.indictment.pdfIndian National Admits Defrauding Telephone Providers and Insurance Companies of Millions of Dollars’ Worth of MerchandiseRead the Press Release
NEWARK, N.J. – An Indian national admitted today that he conspired with others to devise a scheme to defraud various telephone providers and insurance companies out of millions of dollars by using stolen or fake identities to submit fraudulent claims for replacement cellular devices and then reselling those devices outside the United States, U.S. Attorney Philip R. Sellinger announced.
Parag Bhavsar, 42, of Newark, pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to commit mail fraud and one count of conspiracy to commit interstate transfer of stolen property.
According to documents filed in this case and statements made in court:
From June 2013 through June 2019, Bhavsar was involved in a widespread scheme to defraud cellular telephone provider and insurance companies using the U.S. Postal Service mail system, as well as other third-party mail carriers. He and his conspirators used stolen and fake identities to submit false claims of lost, stolen or damaged cellular telephones, as well as other devices, in order to obtain replacement devices. Bhavsar and his conspirators maintained a network of mailboxes and storage units across the United States, including in New Jersey, where the replacement devices would be shipped and then held before being sold to third parties outside the United States. Bhavsar and his conspirators’ scheme resulted in millions of dollars of losses to the cellular telephone providers and insurance companies.
The charge of conspiracy to commit mail fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. The charge of conspiracy to commit interstate transfer of stolen goods carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. As part of the plea agreement, Bhavsar will consent to the entry of a forfeiture money judgement of $10.67 million. Sentencing is scheduled for Jan. 3, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Assistant Director in Charge James Smith in New York, postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel; officers of U.S. Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Frank Russo; and the U.S. Department of State’s Diplomatic Security Service, New York Field Office, under the direction of Acting Special Agent in Charge Kelly Bishop, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rachelle M. Navarro of the U.S. Attorney’s Office’s Criminal Division in Newark.
bhavsar.information.pdfThree New Jersey Men Admit Participating in Conspiracy to Traffic Counterfeit Computer Networking DevicesRead the Press Release
TRENTON, N.J. – Three New Jersey men have admitted their roles in a conspiracy to traffic counterfeit computer networking devices, U.S. Attorney Philip R. Sellinger announced today.
Musa Karaman, 35, of North Arlington, New Jersey, pleaded guilty today before U.S. District Judge Georgette Castner in Trenton federal court to an information charging him with one count of trafficking in counterfeit goods. Sentencing is scheduled for Jan. 4, 2024.
Sadri Ozturan, 37, of Hawthorne, New Jersey, and Israfil Demir, 38, of Secaucus, New Jersey, each pleaded guilty before Judge Castner on Aug. 9, 2023, to separate informations charging them with one count of trafficking in counterfeit goods. Sentencing for Ozturan is scheduled for Dec. 13, 2023, and sentencing for Demir is scheduled for Dec. 14, 2023.
According to documents filed in this case and statements made in court:
From September 2017 through May 2021, Karaman, Demir, and Ozturan formed and operated numerous entities selling computer networking equipment, including networking devices manufactured by Cisco Systems Inc., a major U.S. technology conglomerate. Although the defendants advertised the Cisco products they offered for sale as new and genuine, the products were counterfeit devices they procured from various overseas suppliers at well below market prices and resold at higher prices.
The offense of trafficking in counterfeit goods carries a maximum potential penalty of 10 years in prison and a maximum fine of $2 million.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel; and 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 the guilty pleas.
The government is represented by Andrew M. Trombly, Chief of the General Crimes Unit and Assistant U.S. Attorney Samantha C. Fasanello of the Cybercrime Unit in Newark.
demir.information.pdf ozturan.information.pdf karaman.information.pdfHudson County Man Sentenced to 23 Months in Prison for Participation in Conspiracy to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 23 months in prison for conspiring to possess fentanyl with the intent to distribute, U.S. Attorney Philip R. Sellinger announced.
Miguel Polanco, 31, of Union City, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of a substance containing a detectable amount of fentanyl. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In May 2021, U.S. Customs and Border Protection agents intercepted a package being shipped from Mexico City, Mexico, to Polanco at his apartment. The package contained fentanyl. Prior to receiving the package, Polanco received a video from a conspirator explaining how to properly remove the bags of fentanyl concealed inside to minimize the damage to its contents. Polanco also engaged in multiple conversations with conspirators how much fentanyl he would receive and where to deliver it. Polanco was to be paid for receiving and transporting the fentanyl.
In addition to the prison term, Judge Arleo sentenced Polanco to four years of supervised release.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark and Deputy Special Agent in Charge Alejandro Amaro in Laredo, Texas; U.S. Custom and Border Protection officers – under the direction of Port Director Albert Flores in Laredo and Port Director TenaVel Thomas, Port of New York/Newark; postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; and the Elizabeth Police Department, under the direction of Chief Giacommo Sacca, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Special Prosecutions Division in Newark.