District of New Jersey

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.

“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.”

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,” 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. 

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.

“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.”

U.S. Attorney Philip R. Sellinger

“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.pdf

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.

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.pdf

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.pdf

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.pdf

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.

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.

“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.”

U.S. Attorney Philip R. Sellinger

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.pdf

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.pdf

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.pdf

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.pdf

 

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.pdf

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.pdf

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.

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.

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.

“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.”

U.S. Attorney Philip R. Sellinger

“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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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.

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.

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.pdf

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.pdf

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.pdf

 

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.pdf

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.

“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.” 

U.S. Attorney Philip R. Sellinger

“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.pdf

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.pdf

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.pdf

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.

“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.”

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,” 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.pdf

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.

“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.”

U.S. Attorney Philip R. Sellinger

“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.pdf

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.

“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.”

U.S. Attorney Philip R. Sellinger

“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.pdf

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.pdf

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.pdf

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.pdf

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.

NEWARK, N.J. – A former New Jersey corrections officer was arrested today for orchestrating two different fraud schemes, including a cryptocurrency scheme that resulted in losses of more than $600,000, U.S. Attorney Philip R. Sellinger announced.

John DeSalvo, 47, of Marmora, New Jersey, is charged by criminal complaint with two counts of wire fraud, two counts of securities fraud, and two counts of money laundering related to the two fraud schemes. He is scheduled to appear this afternoon before U.S. Magistrate Judge André M. Espinosa in Newark federal court.

“This defendant, a former New Jersey corrections officer, is alleged to have committed two brazen investment fraud schemes in which he falsely promised huge returns to obtain hundreds of thousands of dollars from unsuspecting investors. In one scheme, DeSalvo is alleged to have targeted law enforcement and first responders to invest in a digital token that he falsely claimed was SEC-approved and listed on cryptocurrency exchanges. In the other, he is alleged to have obtained investments by promising extraordinary rates of return that we allege were too good to be true. Once DeSalvo got his investors’ money, he is alleged to have spent it on himself, paying personal expenses and funding his own investments. This Office is committed to rooting out investment and securities fraud and protecting investors. By today’s charges, we intend to hold this defendant accountable for these alleged fraud schemes and prevent him from potentially victimizing anyone else.”

U.S. Attorney Philip R. Sellinger

“We allege DeSalvo created and marketed a cryptocurrency to first responders as a ‘crypto pension’ that could supplement their existing pensions,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Our investigation shows instead of actually making the rate of return he boasted about, he allegedly used hard-earned money from firefighters, police officers, EMTs and other public servants as his personal bank account. We are asking anyone who may believe they are a victim of DeSalvo to please reach out to the FBI at 1-800-CALL-FBI.”

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

The Blazar Token Fraud

DeSalvo was the creator and promoter of a digital token known as “Blazar Token,” (Blazar) which DeSalvo marketed to police, fire personnel, EMTs, and other first responders as a “crypto pension” that could be used to supplement investors’ existing pension plans. DeSalvo promised investors that Blazar would offer “more stability than any other token” and that the value of Blazar would “continue to rise over time similar to any investment fund, only at a much higher rate of success.”

Beginning in late 2021, DeSalvo used social media platforms to fraudulently solicit investments in Blazar through a series of misrepresentations including that: Blazar was in the process of becoming, or was already, a securitized token approved by the Securities and Exchange Commission; and Blazar could be purchased through payroll deductions and ACH transactions. DeSalvo additionally falsely told investors that Blazar had been approved for inclusion on several well-known cryptocurrency exchanges and guaranteed investors rates of return of more than 20 percent with “ZERO risk.”

In total, DeSalvo raised more than $620,000 from more than 200 investors in Blazar.  After receiving investor funds, DeSalvo frequently used the funds for various illicit purposes unrelated to Blazar including personal expenses, day-trading in various volatile cryptocurrencies, and payments to prior investors in the manner of a Ponzi scheme.

In May 2022, DeSalvo sold off more than 41 billion of his own Blazar tokens, which caused the price of the token to drop precipitously. The value of Blazar never recovered, causing most investors to lose their entire investments.

The Brokerage-1 Fraud

Between January 2021 and May 2021, DeSalvo managed and solicited investment in an investment group through Brokerage-1, an online trading platform. DeSalvo marketed the investment group largely through social media posts in which DeSalvo falsely touted his success as an investor. DeSalvo claimed to potential investors, “I have been averaging close to 1200 % over the last 2 years. I am in the top 1,000th percent in the world. That’s the truth, the return rates I have been averaging are so high that I have people throwing money at me to invest.”

In total, DeSalvo solicited approximately $100,000 in investments from approximately 20 individuals for the investment group. After receiving the funds, DeSalvo engaged in trading activities for a brief period of time before transferring all the funds out of the investment group’s account at Brokerage-1 and into personal accounts held by DeSalvo at Brokerage-1 and Coinbase. DeSalvo then used the funds for various non-investment purposes such as credit card payments, personal trading in volatile cryptocurrencies, and payments to a contractor who performed work on DeSalvo’s personal residence.

After draining the investment group’s account, DeSalvo advised the investment group investors that their funds had been lost due to poor market conditions and provided the investors with false trading records purporting to show the trading activity that DeSalvo engaged in on behalf of the investment group.

The counts of wire fraud carry a maximum potential penalty of 20 years in prison and a fine of $250,000. The counts of securities fraud carry a maximum potential penalty of 20 years in prison and a fine of $5 million. The counts of money laundering carry a maximum potential penalty of 20 years in prison and a fine of $500,000.

The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against DeSalvo today based on the same conduct.

U.S. Attorney Sellinger credited special agents of the FBI - Newark Atlantic City Resident Agency, under the direction of Special Agent in Charge Dennehy, and detectives from the New Jersey Division of Criminal Justice, Cyber Crimes Bureau, under the direction of Acting Director Derek Nececkas, with the investigation leading to the charges. 

The government is represented by Assistant U.S. Attorney Anthony Torntore, Chief of the U.S. Attorney’s Cybercrime Unit in Newark.

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

 

desalvo.complaint.pdf

NEWARK, N.J. – A former investment advisor who stole over $600,000 from his clients to fund his gambling and personal expenses was sentenced today to 42 months in prison, U.S. Attorney Philip R. Sellinger announced today.

Mario E. Rivero Jr., 39, of Elizabeth, New Jersey, pleaded guilty on Feb. 2, 2023, before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count each of wire fraud and securities fraud. Judge Arleo imposed the sentence today in Newark federal court.

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

From April 2018 through November 2020, Rivero, while serving in his capacity as an investment advisor employed by a large brokerage firm, misappropriated $626,478 from five clients. Rivero, who had been entrusted to manage client funds responsibly, instead perpetrated a scheme to defraud multiple clients. He obtained his clients’ money under the fraudulent pretense that he would invest the funds, but instead, Rivero unlawfully diverted the funds to enrich himself and others.

In addition to the prison term, Judge Arleo sentenced Rivero to three years of supervised release.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Shawn Barnes, Chief of the OCDETF/Narcotics Unit in Newark.

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

Patrick Fitchner, 51, of Orlando, Florida, pleaded guilty today before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit health care fraud.

“The defendant admitted that he and his conspirators submitted millions of dollars’ worth of claims to Medicare and other health benefits programs that they knew were procured through the payment of kickbacks and bribes. Their scheme caused Medicare to pay out $3.6 million in fraudulently obtained reimbursements. Protecting our healthcare system from schemers like this is a full-time job, and we will use all the tools at our disposal to do so.”

U.S. Attorney Philip R. Sellinger

“The defendant admitted that he and his conspirators submitted millions of dollars’ worth of claims to Medicare and other health benefits programs that they knew were procured through the payment of kickbacks and bribes,” U.S. Attorney Sellinger said. “Their scheme caused Medicare to pay out $3.6 million in fraudulently obtained reimbursements. Protecting our healthcare system from schemers like this is a full-time job, and we will use all the tools at our disposal to do so.”

“Many scammers who commit healthcare fraud may believe the system is so complex that no one will miss a few thousand dollars here or a few million dollars there,” FBI – Newark Special Agent in Charge James E. Dennehy said. “The problem with that premise is we are paying attention, and our job as the FBI is to protect the general public from criminals who think they can game the system. Fitchner and his conspirators are now paying for their crimes, and others looking to follow suit should take note.”

“Violations of the Anti-Kickback Statute that involve durable medical equipment can jeopardize the supply of equipment and federal health care benefits for others,” Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General said. “Individuals who participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”

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

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

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

The charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest. Sentencing is scheduled for Jan. 9, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys DeNae M. Thomas of the Health Care Fraud Unit in Newark and Sean M. Sherman of the U.S. Attorney’s Office in the Eastern District of New York.

 

fitchner.information.pdf

TRENTON, N.J. – The former operations manager of a Union City, New Jersey, pharmacy today admitted his role in multimillion-dollar conspiracies to defraud health care insurers, including Medicare and Medicaid, and to pay kickbacks and bribes to health care professionals, U.S. Attorney Philip R. Sellinger announced.

Ruben Sevumyants, 40, of Marlboro, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to two counts of a superseding indictment charging him with conspiring to commit health care fraud and conspiring to violate the federal anti-kickback statute.

“This defendant admitted taking part in a scheme to steal millions of dollars from the health care system. From bribing doctors to billing for medication refills that were never provided, this conspiracy gamed the system, and Sevumyants profited along the way. He will now face the appropriate punishment for his crimes. Our office will always be on the lookout for those who try to turn our health insurance system into an ATM.”

U.S. Attorney Philip R. Sellinger

"It can be hard to see why investigations like this matter to the general public going about their lives. However, healthcare professionals and pharmacies are meant to keep us healthy, not inflict harm. As healthcare recipients, we all end up footing the bills for fraudsters because our premiums increase to cover the cost of their crimes. We can't do it alone. We're asking anyone who is a victim of this type of fraud or sees it happening, to call us at 1-800-CALL-FBI and report it."

“New Jersey residents need to be able to trust their doctors and pharmacists are acting in the best interest of their overall health,” Tammy Tomlins, Special Agent in Charge, IRS - Criminal Investigation, Newark Field Office, said. “By paying bribes to doctors to induce them to steer prescriptions to Prime Aid, Sevumyants helped to illegally enrich himself and others at Prime and this type of illegal activity erodes away at the trust we place in our medical professionals.”

“Pharmacy employees who submit fraudulent claims to Medicare and Medicaid and bribe medical providers to induce prescriptions put health care benefits for older people and vulnerable populations at risk,” 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 will continue to hold accountable individuals who exploit federal health care programs for their own greed.”

Charges against two conspirators – Samuel “Sam” Khaimov and Yana Shtindler, both of Glen Head, New York – remain pending. Sevumyants’s other conspirators in the kickback scheme are Igor Fleyshmakher, of Holmdel, New Jersey and Alex Fleyshmakher of Morganville, New Jersey. Alex Fleyshmakher previously pleaded guilty to his role in the conspiracy and is awaiting sentencing; Igor Fleyshmakher previously pleaded guilty and was sentenced in November 2021 to 41 months in prison.

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

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

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

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

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

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

The conspiracy to commit healthcare fraud count is punishable by a maximum of 10 years in prison and the conspiracy to pay illegal kickbacks is punishable by a maximum of five years in prison. Both counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Dec. 20, 2023.

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

The government is represented by Assistant U.S. Attorneys Joshua L. Haber, Chief of the Economic Crimes Unit and Aaron L. Webman of the Opioid Abuse Prevention and Enforcement Unit of the U.S. Attorney’s Office in Newark.

The charges against and allegations in the information pertaining to Khaimov and Shtindler are merely accusations, and those two defendants are presumed innocent unless and until proven guilty.

 

sevumyants.sindictment.pdf

NEWARK, N.J. – A Morris County, New Jersey, sonography company has entered into a deferred prosecution agreement (DPA) to resolve criminal charges relating to kickback allegations and will pay $95,000 to resolve the civil claims, U.S. Attorney Philip R. Sellinger announced today.

 As part of the resolution, a criminal information was filed on Aug. 17, 2023, charging H&D Sonography LLC of Parsippany, New Jersey, with this conduct. H&D entered into a three-year DPA that requires it to abide by certain measures to avoid conviction. H&D also entered into a civil settlement agreement under which it has agreed to pay $95,000 to the United States to resolve civil claims under the federal False Claims Act.

The criminal matter has been assigned to the U.S. Magistrate Judge Jessica S. Allen in Newark federal court.

Criminal Resolution

According to H&D’s admissions in the DPA:

From January 2015 through December 2018 in the District of New Jersey, H&D and others agreed to pay rent in excess of reasonable value to physicians to induce the physicians to refer patients for diagnostic testing to H&D. These agreements called for inflated rent payments from H&D to the physicians, purportedly to use space in the physicians’ offices for a set number of hours each week in order to perform diagnostic tests. H&D agreed to pay for significantly more hours than the technicians actually used, as a method to funnel payments to physicians. H&D structured the payments as sublease payments for the physicians’ shared offices. The sublease payments that H&D paid the physicians were more than the value of the total rent that the physicians actually paid for the shared offices. After H&D began making payments, the physicians in receipt of those payments began to refer patients to H&D for diagnostic tests, which were then billed to Medicare.

Civil Resolution

According to the contentions of the United States set forth in the civil settlement agreement:

From Jan. 1, 2015, through Dec. 31, 2018, H&D knowingly and willingly paid renumeration to referring physicians in the form of space rental payments that were above fair market value and commercially unreasonable for the purpose of inducing diagnostic testing, in violation of the federal Anti-Kickback Statute.

The civil allegations were originally made in a lawsuit filed under the whistleblower provisions of the False Claims Act brought by Dr. Richard Chesbrough. The Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. Chesbrough will receive approximately 17 percent of the proceeds of the civil settlement. 

U.S. Attorney Sellinger credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz, with the investigation leading to the resolution.

The criminal case was prosecuted by Assistant U.S. Attorney Ray Mateo of the Opioid Abuse Prevention and Enforcement Unit; the civil case was handled by Assistant U.S. Attorney Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit.

hd.complaint.pdf hd.settlement.pdf hd.dpa_.pdf

NEWARK, N.J. – A former president of a pharmacy business admitted his role in a health care kickback conspiracy involving prescriptions for Medicare and TRICARE beneficiaries, Attorney for the United States Vikas Khanna announced today.

Elan Yaish, 53, of Israel, pleaded guilty on Aug. 16, 2023, before U.S. District Judge Esther Salas in Newark federal court to an information charging him with conspiracy to violate the Federal Anti-Kickback statute.

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

From September 2017 to around December 2020, Yaish participated in operating pharmacies, including Apogee Bio-Pharm LLC, in Edison, New Jersey. Yaish and others agreed to engage in a scheme to pay marketing companies to direct prescriptions for expensive medications to the pharmacies. 

The marketing companies identified Medicare and TRICARE beneficiaries to target for expensive drugs and contacted the beneficiaries by telephone to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, and migraine medication. The marketing companies then transmitted recordings of telephone calls with the beneficiaries, together with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. The marketers paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions. The marketing companies then directed the prescriptions to pharmacies, including Apogee, with which they had kickback arrangements. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare and TRICARE. The pharmacies, including Apogee, then paid a portion of each reimbursement to the marketing companies as a kickback. As a result of the scheme, Yaish and his conspirators caused a loss to Medicare and other federal health care benefit programs of over $32 million.

The charge of conspiracy to violate the Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison, and a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Dec. 20, 2023.

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 guilty plea.

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.

 

yaish.information.pdf

TRENTON, N.J. – An Essex County, New Jersey, man was arraigned today on charges of sex trafficking and prostitution-related offenses, U.S. Attorney Philip R. Sellinger announced.

Amin Sharif, 48, of Newark, is charged in a five-count indictment with one count of attempted transportation of a victim with intent to engage in prostitution, one count of sex trafficking of a minor, one count of use of an interstate facility to promote unlawful activity, one count of transporting a victim with intent to engage in prostitution, and one count of persuading a victim to travel to engage in prostitution. Sharif was previously charged by criminal complaint in January 2022 on charges of sex trafficking and is detained. He was arraigned today before U.S. Magistrate Judge Michael A. Shipp in Trenton federal court and entered a plea of not guilty.

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

Since January 2021, law enforcement has been investigating Sharif for transporting and attempting to transport women and minors from various states to New Jersey and elsewhere for the purpose of engaging in commercial sex acts and other illicit conduct. Sharif used several social media platforms and profiles to recruit women and minors to engage in sex acts for money. He advertised women and at least one underage girl online for commercial sex acts. The indictment charges Sharif with conduct related to four different victims.

The sex trafficking of a minor charge carries a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison. The transporting victim with intent to engage in prostitution charges each carry a maximum penalty of 30 years in prison, and the persuading a victim to travel to engage in prostitution charge carries a maximum penalty of 60 years in prison.  The use of an interstate facility to promote unlawful activity charge carries a maximum penalty of five years in prison. Each count also carries a potential fine of up to $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 charges.

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

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

 

sharif.indictment.pdf

NEWARK, N.J. – A Saudi Arabian man was indicted for transporting a stolen school bus across state lines. Bader Alzahrani, 22, of Saudi Arabia, is charged by indictment with one count of receipt of a stolen vehicle and one count of transportation of a stolen vehicle. He was charged by complaint with the same offenses earlier this year. The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 

alzahrani.indictment.pdf

CAMDEN, N.J. – A Florida man who was out on bail on wire fraud and other charges stemming from his operation of a telemarketing business was ordered to shut down his new telemarketing businesses for allegedly committing new fraud through them, U.S. Attorney Philip R. Sellinger announced today.

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

William O’Hanlon, aka “Patrick Burns,” aka “William Burns,” 59, of Loxahatchee, Florida, was arrested on April 4, 2023, pursuant to an indictment charging wire fraud and wire fraud conspiracy arising out of his operation of Williams Andrews Burns LLC (WAB). WAB was a telemarketing business which offered services to timeshare owners in return for upfront fees.

O’Hanlon was released on bail subject to the following conditions, among others: (1) that he not have access to the personal identifying information (PII) of others; and (2) that he not commit another federal, state or local crime. At the time of his release, O’Hanlon operated Ryan James & Daniels Corp. (RJD) and related entities, which were also telemarketing businesses which offered services to timeshare owners in return for upfront fees.

While on bail, O’Hanlon allegedly continued to defraud timeshare owners through his operation of RJD. O’Hanlon allegedly caused the mass mailing of letters to timeshare owners telling them that they had been identified as potential victims of timeshare fraud and offering to collect restitution monies for them. The letters cited to a lawsuit filed by the Federal Trade Commission (FTC) and allegedly claimed that the FTC had collected $500 million to be refunded to victims of timeshare fraud. In actuality, however, the lawsuit referenced in the letters was more than 20 years old, and the FTC had not collected any funds for timeshare victims.as a result of that suit.

At the conclusion of a bail review hearing on Aug. 7, 2023, U.S. Magistrate Judge Elizabeth A. Pascal found probable cause to believe that O’Hanlon had committed mail and wire fraud through RJD while he was on pretrial release on the previously filed indictment. Judge Pascal stated that based upon the allegedly false claims in the letters, “[t]here can be no other inference drawn, at this point, than [that] the letter[s were] intended to defraud people of money.” Judge Pascal ordered O’Hanlon to cause the following entities to cease operations as of Aug. 7, 2023: Ryan James & Daniels Corp.; RJD Collect Inc.; RJD Investments Inc.; RJD Recovery Group Inc.; RJD Corp. Fraud Collectors Timeshare Exit; Williams & Burns Inc.; Harold O’Hanlon Inc.; Resort BNB Inc.; and Next Step Sober House Inc. (collectively RJD). Judge Pascal also found that O’Hanlon had access to the personal identifying information (PII) of others, in violation of his bail conditions.

If you believe you or a family member may be a victim of the alleged fraud by RJD, or have additional information about this matter, please contact your local FBI Office or 1-800-Call-FBI (1-800-225-5324).  

U.S. Attorney Sellinger credited agents of the FBI’s Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire, with the investigation.

The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Elisa T. Wiygul of the U.S. Attorney’s Office in Camden.

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

 

ohanlon.order_.pdf

CAMDEN, N.J. – A Burlington County, New Jersey, man admitted today that he illegally laundered the proceeds of a mail fraud scheme, U.S. Attorney Philip R. Sellinger announced.

Pablo Estrada, 26, of Florence, New Jersey, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of money laundering.

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

From August 2020 through January 2023, Estrada received money from victims of various scams, including a lottery scam – an advance fee fraud which begins with victims receiving an unexpected notification that they have won large sums of money in a lottery, but are required to pay various fees and expenses before their winnings can be released to them. Estrada deposited the money into various bank accounts that he maintained for purposes of receiving criminal proceeds. He transferred the funds to other bank accounts, keeping a percentage for himself. Estrada laundered more than $4 million in this manner.

The money laundering charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or twice the gross profits or gross loss, whichever is greatest. Sentencing is scheduled for Dec. 19, 2023.

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 of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to today’s guilty plea. He also thanked the Burlington County Prosecutors Office under the direction of LaChia L. Bradshaw and the Florence Township Police Department under the direction of Brian Boldizar for their assistance.

The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.

 

estrada.information_.pdf

NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 50 months in prison for his role in a conspiracy that targeted Asian and Asian-American homeowners for residential burglaries, U.S. Attorney Philip R. Sellinger announced.

Randi Barr, 42, of Vauxhall, New Jersey, previously pleaded guilty before U.S. District Judge Evelyn Padin to an information charging him with one count of conspiracy to commit interstate transportation of stolen property. Judge Padin imposed the sentence today in Newark federal court.

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

From Dec. 2, 2016, to March 20, 2019, Barr 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 Barr’s residences in New Jersey and Pennsylvania.

In addition to the prison term, Judge Padin ordered restitution and forfeiture of $127,661.

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 sentencing. He also thanked the Middlesex County Prosecutor’s Office, South Plainfield, Hazlet Police Department, and Edison police departments, 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, Delran, East Brunswick, East Hanover, Eatontown, Elizabeth, Evesham Township, Exeter Township, Fair Lawn, Forks Township, Fort Lee, Franklin Township, Glassboro, Gloucester Township, Hackensack, Haverstraw, 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, 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 Barry O’Connell of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.

 

 

NEWARK, N.J. – A California man today admitted conspiring to unlawfully sell firearms and methamphetamine via the internet, U.S. Attorney Philip R. Sellinger announced.

Angelo Chavez, 23, of Manteca, California, pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count each of conspiracy to unlawfully deal in firearms and conspiracy to distribute methamphetamine.

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

Starting in August 2020, undercover law enforcement agents began communicating with Chavez and several conspirators via a social media platform, where Chavez and his conspirators advertised for sale various narcotics and firearms. From August 2020 and December 2021, undercover law enforcement agents purchased 13 firearms from Chavez and his conspirators, including six AR-15 firearms, two of which were shipped with auto sear switches which enable the firearms to function as fully automatic machine guns. Undercover agents also purchased methamphetamine from Chavez and his conspirators. Chavez and his conspirators were paid mostly in cryptocurrency and mailed the drugs and guns from addresses in California to New Jersey.

The conspiracy to unlawfully deal in firearms charge carries a statutory maximum of five years in prison and a fine of $250,000. The conspiracy to distribute methamphetamine charge carries a maximum of 20 years in prison and a fine of $1 million. Sentencing is scheduled for Dec. 21, 2023.

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Christopher A. Nielsen, Philadelphia Division; and special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller, with the investigation leading to today’s guilty plea. 

The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Criminal Division in Newark.

 

 

chavez.information.pdf

NEWARK, N.J. – A Union County contractor was arrested today for tax evasion, U.S. Attorney Philip R. Sellinger announced.

Joel Konopka, 45, of Elizabeth, New Jersey, is charged by indictment with four counts of corporate tax evasion, two counts of filing false corporate tax returns, and two counts of failing to file corporate tax returns. He appeared this afternoon before U.S. Magistrate Judge Jessica Stein Allen in Newark federal court and was detained.

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

From 2014 through 2017, Konopka was the owner and sole shareholder of Konopka Construction Inc., a business which provided construction, contracting and snow plowing services in northern New Jersey. Under the tax laws of the United States, Konopka was responsible for filing truthful and accurate corporate tax returns, Form 1120s, on behalf of Konopka Construction reporting all of the company’s income.  From 2014 through 2017, Konopka Construction realized business income of at least $3.3 million, including more than $1 million in 2016. Konopka did not truthfully and accurately report that income. For tax years 2014 and 2015, Konopka filed corporate returns which reported no income for Konopka Construction for both years. For tax years 2016 and 2017, Konopka failed to file any corporate returns as required. From 2014 through 2017, Konopka caused no payments to be made to the IRS for any corporate tax.

Konopka disguised the income realized by Konopka Construction by operating almost exclusively in cash. Konopka received hundreds of checks annually made payable to Konopka Construction for services rendered totaling hundreds of thousands of dollars and cashed all but one check at check cashing businesses in Essex and Ocean counties. 

The tax evasion charges are punishable by a maximum potential penalty of five years in prison and a maximum $500,000 fine per count. The filing of false tax returns charges are punishable by a maximum penalty of three years in prison and a $500,000 maximum fine per count. The failure to file tax return charges are punishable by a maximum of one year in prison and a $100,000 fine per count.

U.S. Attorney Sellinger credited special agents with IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s arrest. 

The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Francesca Liquori of the Special Prosecutions Division in Newark.

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

 

konopka.indictment.pdf

NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 186 months in prison for producing one or more images of child sexual abuse and enticing a minor to engage in sexually explicit conduct, U.S. Attorney Philip R. Sellinger announced today.

Jose Minaya, 27, of Paterson, New Jersey, previously pleaded guilty before U.S. District Judge Julien X. Neals to an information charging him with one count of production of child pornography and one count of online enticement. Judge Neals imposed the sentence today in Newark federal court.

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

In July 2019, Minaya used a web-based application to engage a child in a sexually explicit conversation online. Minaya persuaded the child to take sexually explicit photographs of the child and send them to him. Minaya was arrested at his home in May 2020, at which time agents seized multiple electronic devices. Further investigation revealed that Minaya had used another application to entice an additional minor to engage in sexually explicit conduct.  

In addition to the prison term, Judge Neals sentenced Minaya to lifetime supervised release and ordered him to register as a sex offender.

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 sentencing. He also thanked the Passaic County Sheriff’s Office for its assistance.

The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – An Essex County, New Jersey, woman and her son admitted conspiring to commit marriage fraud, U.S. Attorney Philip R. Sellinger announced today.

Andrea Torres, 56, of Newark, pleaded guilty on Aug. 10, 2023, before U.S. District Judge Esther Salas in Newark federal court to a two-count superseding indictment charging her and others with conspiracy to harbor non-U.S. citizens by orchestrating fraudulent marriages between the non-citizens and U.S. citizens. Her son, Philip Torres, 27, also of Newark, pleaded guilty to Count Two of the superseding indictment.

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

From September 2016 through March 2021, Andrea Torres and her sister, Regina Johnson, arranged and facilitated sham marriages for non-U.S. citizens who wished to remain in the United States despite the lack of legal status or proper documentation. Andrea Torres and Johnson recruited U.S. citizen potential spouses and paid them a fee in exchange for those U.S. citizens entering into sham marriages with Andrea Torres’ and Johnson’s non-citizen clients.

From March 2021 through June 2021, Andrea Torres’ son, Philip, also participated in the scheme by, among other things, officiating some of the sham marriages. Andrea Torres and Johnson arranged for the “couples” to obtain fraudulent marriage licenses and even arranged and charged their clients for wedding ceremonies and after parties that were staged to make the sham marriages appear legitimate. Andrea Torres and Johnson further advised their clients to open joint bank accounts and to meet frequently with their U.S. spouses. Clients were also advised to take photographs in a variety of locations and in different clothing to memorialize the relationship and to give the appearance of cohabitation, even though none of the clients ever resided or intended to reside with their U.S. spouses. Andrea Torres and Johnson then helped their clients complete immigration forms to obtain permanent residency on the basis of the materially false misrepresentations. Johnson previously pleaded guilty to the charge in Count One of the superseding indictment.

Each count of conspiracy to which Andrea Torres and Philip Torres pleaded guilty carries a maximum penalty of 10 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss resulting from the offense, whichever is greatest. Sentencing for both is scheduled for Dec. 14, 2023.

U.S. Attorney Sellinger credited special agents and members of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to the guilty pleas. He also thanked U.S. Citizenship and Immigrations Services for its assistance. 

The government is represented by Assistant U.S. Attorney Sammi Malek of the National Security Unit and Assistant U.S. Attorney Blake A. Coppotelli of the Economic Crimes Unit in Newark.

 

torres.sindictment.pdf

NEWARK, N.J. – Two New Jersey men were charged, and another previously pleaded guilty, for participating in a kickback scheme to defraud the owner of a condominium complex in Jersey City of $470,000, U.S. Attorney Philip R. Sellinger announced today.

Ranaldo Bennett, 40, of Jersey City, and Jonathan Smith, 56, of Montclair, New Jersey, were each charged in a three-count complaint with conspiracy to commit wire fraud and money laundering. Smith was arrested earlier today and will have his initial appearance this afternoon before U.S. Magistrate Judge Edward S. Kiel in Newark federal court. Bennett was arrested earlier in the week and had his initial appearance before Judge Kiel on Aug. 7, 2023.

Nathaniel Obedos, 56, of Jersey City, pleaded guilty on July 6, 2023, before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with conspiracy to commit wire fraud.

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

From November 2018 through October 2020, Obedos conspired with Bennett and Smith to engage in a kickback scheme to defraud the owner of the condominium complex. Bennett was the complex’s lead property manager and Smith was its superintendent. Bennett and Smith steered repair and maintenance work to Obedos and his company in exchange for kickbacks from Obedos. Bennett and Smith falsified invoices that grossly inflated the value of Obedos’s work. Relying on those fake invoices, the complex paid Obedos the inflated prices, and Obedos then used the excess money to pay Bennett and Smith kickbacks. In total, the complex paid Obedos and his company over $1 million for work that was actually valued at $500,000. Obedos used the overpayments to pay $460,000 in kickbacks to Bennett and over $10,700 in kickbacks to Smith.

The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years, and the money laundering charges each carry a maximum penalty of 10 years in prison. Each charge also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Obedos’ sentencing is scheduled for Nov. 9, 2023.

U.S. Attorney Philip R. 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 plea and arrests.

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

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

obedos.information.pdf

 

bennetsmith.complaint.pdf

NEWARK, N.J. B A New York man was arrested this morning on charges he fraudulently obtained more than $1 million in a COVID-19 scheme, U.S. Attorney Philip R. Sellinger announced.

Terrell Fuller, 33, of Brooklyn, New York, is charged by complaint with one count of wire fraud. Fuller is scheduled to appear this afternoon before U.S. Magistrate Judge Edward S. Kiel in Newark federal court.

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

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was a federal law enacted in or around March 2020 that was designed to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic. The CARES Act enabled the Small Business Association (SBA) to offer funding through the Economic Injury Disaster Loan (EIDL) program to business owners negatively affected by the COVID-19 pandemic.

In September 2021, a fraudulent EIDL application was made to the SBA on behalf of a business. The SBA provided $1.2 million in response to the application. According to a representative of the business, the business did not make the application. Approximately $400,000 of the funds paid out by the SBA in response to the application were eventually deposited into bank accounts to which Fuller was the sole signatory.

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.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s arrest. He also thanked the U.S. Postal Inspection Service in Newark, the New York Police Department and FBI – New York for their assistance.

The government is represented by Senior Trial Counsel Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.

The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.

 

fuller.complaint.pdf

 

NEWARK, NJ. – Two New York men today admitted their roles in a fentanyl distribution conspiracy, and one of the men also admitted conspiring with seven separately charged individuals to defraud multiple states to obtain COVID-19 unemployment benefits, U.S. Attorney Philip R. Sellinger announced.

Billy Castro, 33, of Queens, New York, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to a three-count information charging him with conspiracy to distribute and possess with intent to distribute fentanyl, possessing with intent to distribute fentanyl, and conspiracy to commit wire fraud.

Juan De La Cruz Infante Torres, 52, of Brooklyn, New York, pleaded guilty before Judge Shipp on June 14, 2023, to an information charging him with one count of conspiracy to distribute and possess with intent to distribute fentanyl and one count of possessing with intent to distribute fentanyl.

According to documents filed in this and other cases and statements made in court:

In May and June 2021, Castro and Infante conspired with others to distribute fentanyl. On June 15, 2021, Castro and Infante took approximately two kilograms of fentanyl from Castro’s apartment to Clifton, New Jersey, where they were arrested trying to sell it. Law enforcement agents then searched Castro’s apartment and found approximately two additional kilograms of fentanyl. The agents also found driver’s licenses, Social Security cards, debit cards, tax forms, bills, and other documents – including COVID-19 unemployment benefits applications and debit cards – in the names of approximately 100 individual victims.

On April 24, 2023, the following individuals were separately charged by complaint with conspiracy to commit wire fraud:

Rafael Josmin Nunez Duarte, 33; Natanael Valdez Brito, aka “El Pocho,” 34; Josmin Rafael Nunez Duarte, aka “Mello,” 33; and Alexander Arismendy Alix Hernandez, 22, all of Bronx, New York; Leonel Frias Espaillat, 32, of Allentown, Pennsylvania; and Abrahan Rivas Rojas, aka “Milandro,” 36, and Yarisa Espaillat, aka“Yari,” 34, both of the Dominican Republic.

A subsequent investigation revealed that Castro conspired with Nunez, Valdez, Duarte, Alix, Frias, Rivas, Espaillat, and others to use the personal identifying information of thousands of individual victims to create fictitious online profiles claiming to be real people seeking unemployment benefits as a result of the COVID-19 pandemic. Using these fake profiles, the conspirators submitted fraudulent applications to the departments of labor of Puerto Rico and numerous states, including Pennsylvania, New York, and New Jersey. Once the fraudulent unemployment benefit applications were approved, the conspirators received unemployment benefit funds through debit cards, which they either cashed out at ATMs or used to make purchases. To date, law enforcement has identified that the victims’ information was used to fraudulently obtain approximately $25 million in unemployment benefits from 29 different states.

The charges of conspiracy to distribute and possess with intent to distribute fentanyl each carry a statutory maximum prison sentence of 20 years and a statutory maximum fine of $1 million. The charge of conspiracy to commit wire fraud carries a statutory maximum prison sentence of 20 years and a fine of the greatest of $250,000, twice the gross amount of any pecuniary gain or loss, whichever is greatest.

Sentencing for Castro is scheduled for Dec. 14, 2023. Sentencing for Infante is scheduled for Oct. 25, 2023.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark with the investigation leading to the guilty pleas and charges. He also thanked the U.S. Department of Labor, Pennsylvania Department of Labor and Industry, and New York Department of Labor 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. Attorney Mark J. Pesce of the Economic Crimes Unit in Newark.

The charges and allegations against Nunez, Valdez, Duarte, Alix, Frias, Rivas, and Espaillat are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

castro.information.pdf

 

infante.information.pdf