District of New Jersey
Press releases recorded for this federal judicial district.
Brooklyn Man Convicted of Strongarm Extortion SchemeRead the Press Release
TRENTON, N.J. – A Brooklyn man was convicted of conspiring with others in a week-long strongarm extortion scheme in 2019, U.S. Attorney Philip R. Sellinger announced.
Endrit Kllogjeri, 29, was convicted on June 27, 2023, of conspiracy to commit Hobbs Act extortion and attempt to commit Hobbs Act extortion following a one-week trial before U.S. District Judge Zahid N. Quraishi in Trenton federal court. On June 13, 2023, co-defendant Francis Garzon pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to his role in the scheme.
According to court documents and evidence presented at trial:
From Dec. 1, 2019, through Dec. 9, 2019, Kllogjeri and Garzon conspired and attempted to extort a resident of Monmouth County, New Jersey, and the resident’s son, who lived in Brooklyn, New York. The victim was threatened with physical harm if the victim did not recover a bag containing property allegedly valued at $100,000 from the victim’s son. Kllogjeri and Garzon further demanded an additional payment of $100,000 as “interest” for the son’s possession of the bag. In connection with issuing threats against the victim, including threats to the victim’s family members, Garzon additionally brandished a revolver, pointing the weapon at the victim and cocking the revolver’s hammer. Over the ensuing week, Kllogjeri and Garzon communicated regularly with the victim telephone, continuing to threaten victim. Kllogjeri and Garzon were arrested together in a vehicle on Dec. 9, 2019 in Brooklyn. Moments before the arrest, Garzon had attempted to send the victim a text message confirming the victim’s plan to pay the demand.
Kllogjeri faces a maximum potential penalty of 20 years on each count of conspiracy to commit Hobbs Act extortion and attempted Hobbs Act extortion. Each count also carries a potential $250,000 fine.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the conviction. He also thanked the Marlboro Township Police Department, under the direction of Chief Peter Pezzullo; and the New York City Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Office, and Assistant U.S. Attorney Ian D. Brater of the Trenton Office.
Ocean County Man Admits $21.7 Million Health Care Fraud Scheme and COVID-19 Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, man admitted his role in a durable medical equipment kickback scheme, U.S. Attorney Philip R. Sellinger announced today.
Alexander Schleider, 57, of Lakewood, New Jersey, pleaded guilty 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 and one count of wire fraud.
According to documents filed in the case and statements made in court:
Schleider owned and operated durable medical equipment (DME) companies in New Jersey that provided orthotic braces to beneficiaries of Medicare and other federal and private health care benefit programs without regard to medical necessity. Schleider and his conspirators obtained prescriptions for the DME braces through the payment of kickbacks and bribes to individuals operating marketing call centers, who in turn utilized the service of telemedicine companies to obtain prescriptions for the DME. Schleider caused losses to Medicare and other health care benefit programs of $21.7 million.
Schleider also committed wire fraud in connection with funds made available in response to the COVID-19 pandemic. After one of his DME companies received $322,237 from the Department of Health and Human Services’ Health Resources and Services Administration Provider Relief Fund, Schleider submitted a fraudulent attestation to HRSA in which he claimed that the DME company provided diagnoses, testing, and care for individuals with possible or actual cases of COVID-19 after Jan. 31, 2020. In reality, the DME company had ceased billing for any services in April 2019. The attestation also falsely claimed that the payment would only be used to prevent, prepare for, and respond to coronavirus, and that the payment shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Schleider did not use the funds for those purposes, but transferred them into other accounts and subsequently used them to purchase real estate and vehicles, among other things.
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. The charge of wire fraud is punishable by a maximum potential 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. Sentencing is scheduled for Nov. 8, 2023.
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 Naomi Gruchacz; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Sean M. Sherman and DeNae Thomas of the Health Care Fraud Unit in Newark.
schleider.information.pdfFormer Sales Representative Sentenced to Five Years in Prison for Compound Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – A former sales representative was sentenced to 60 months in prison for his role in a scheme to defraud public health benefits programs by billing for medically unnecessary compound prescriptions, U.S. Attorney Philip R. Sellinger announced today.
Matthew Puccio, 41, of Randolph, New Jersey, was convicted on July 19, 2022, of conspiracy to commit health care fraud following a seven-day jury trial before U.S. District Judge John Michael Vazquez, who imposed the sentence today in Newark federal court.
According to documents in this case and the evidence at trial:
Compound medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compound drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription.
From November 2014 to March 2016, Puccio participated in a conspiracy that involved submitting fraudulent prescriptions for compound medications to public health benefits programs. Marketing companies recruited and paid sales representatives, such as Puccio, to obtain compound medications for themselves and others regardless of medical necessity, targeting health plans that reimbursed for compound medications at high rates.
Puccio exploited this opportunity through working as a sales representative for several compounding pharmacies. He targeted individuals who had health plans that covered compound medications and then convinced those individuals to obtain prescriptions for compound medications, regardless of medical necessity. Puccio and others induced two New Jersey-based physicians to sign medically unnecessary prescriptions for beneficiaries that Puccio and others had recruited.
Once the prescriptions were written, they were filled by the compounding pharmacies with which Puccio worked. The compounding pharmacies would then receive reimbursement from the health plans and would pay Puccio a percentage of the reimbursement amount. Puccio and his conspirators caused a significant loss to public health benefits programs.
In addition to the prison term, Judge Vazquez sentenced Puccio to three years of supervised release and ordered him to pay $2.65 million in restitution.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Emma Spiro and Shawn Barnes of the Criminal Division in Newark.
Couple Charged with COVID-19 Loan Fraud SchemeRead the Press Release
NEWARK N.J. – A New Jersey and Texas man and woman were arrested in Texas on charges related to fraudulently obtaining Economic Injury Disaster Loans (EIDL) totaling approximately $790,000, U.S. Attorney Philip R. Sellinger announced today.
Diana Valteri, 40, and Edmond Haxhillari, 42, of Sparta, New Jersey, and Cypress, Texas, are charged by complaint with one count of wire fraud and one count of money laundering. Both are scheduled to appear before U.S. Magistrate Judge Jessica S. Allen in Newark federal court on July 7, 2023.
According to documents filed in this case and statements made in court:
Valteri and Haxhillari are a married couple who from June through August 2020, participated in a fraudulent scheme to receive $790,000 in COVID-19 emergency relief loans and cash advances meant for distressed small businesses under the EIDL program. Valteri and Haxhillari submitted fraudulent loan applications on behalf of several businesses that purported to have employees and revenue, but were actually shell companies with no actual business operations. After receiving the EIDL funds based on their fraud, Valteri and Haxhillari diverted the proceeds for their own personal gain.
The wire fraud charge carries a maximum penalty of 20 years in prison, and the money laundering charge carries a maximum penalty of 10 years in prison. Each charge also carries a maximum fine of $250,000, or twice the gross gain to the defendants or gross loss to the victim, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott, and special agents from the Small Business Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amaleka McCall-Brathwaite, Eastern Regional Office, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
valteri.complaint.pdfPolitical Consultant Sentenced to 24 Years in Prison for Role in Murder for Hire SchemeRead the Press Release
NEWARK, N.J. – A New Jersey-based political consultant was sentenced today to 288 months in prison for hiring two men to kill a longtime associate who had worked for him on various political campaigns, U.S. Attorney Philip R. Sellinger announced.
Sean Caddle, 45, of Hamburg, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit murder for hire. Judge Vazquez imposed the sentence today in Newark federal court.
“Sean Caddle unleashed two violent hitmen to stab Michael Galdieri to death and set fire to his apartment,” U.S. Attorney Sellinger said. “Despite being lifelong friends, Caddle paid to have Galdieri murdered because he thought that his own business interests were at risk. Today’s sentence is a just punishment for a heinous crime and provides some measure of justice for the victim and his family. I want to credit the dedicated agents of the Federal Bureau of Investigation and the members of my Office who doggedly pursued this cold case murder investigation for years and have now brought to justice all three individuals responsible for the death of Michael Galdieri.”
“Regardless of any dispute or argument a person has with someone, hiring hitmen to solve it is not only cold-hearted and despicable, but also against the law,” FBI Special Agent in Charge James E. Dennehy said. “Caddle now faces justice for paying to having his former colleague and friend murdered. He will spend years in federal prison contemplating his actions, a small price to pay when another man lost his life.”
According to documents filed in this case and statements made in court:
In April of 2014, Caddle solicited George Bratsenis of Monroe, Connecticut, to commit a murder on Caddle’s behalf in exchange for thousands of dollars. Bratsenis recruited Bomani Africa a longtime accomplice from Philadelphia, to join the plot. After Bratsenis confirmed his and Africa’s interest in the job, Caddle told Bratsenis that the target was a longtime associate who had worked for Caddle on various political campaigns.
On May 22, 2014, Bratsenis and Africa traveled from out of state to the victim’s apartment in Jersey City. After entering the apartment, Bratsenis and Africa stabbed the victim to death and then set fire to the victim’s apartment. After Caddle learned that the victim had been murdered, he met Bratsenis in the parking lot of a diner in Elizabeth, New Jersey. Caddle paid Bratsenis thousands of dollars in exchange for the murder, and Bratsenis shared a portion of those proceeds with Africa.
In addition to the prison term, Judge Vazquez sentenced Caddle to five years of supervised release.
Bratsenis was sentenced on March 29, 2023, to 16 years in prison; Africa was sentenced on Feb. 23, 2023, to 20 years in prison.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy, with the investigation leading to today’s sentencing. He also thanked the Hudson County Prosecutor’s Office and IRS-Criminal Investigation for their assistance.
The government is represented by Executive Assistant U.S. Attorney Lee M. Cortes Jr., Sean Farrell, Chief, New York Office, Department of Justice, Antitrust Division.
Fifteen People Charged in Passaic County Drug Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – Fifteen members and associates of a Paterson-based street gang were charged today in connection with their roles in the distribution of narcotics, including heroin, fentanyl, and cocaine, U.S. Attorney Philip R. Sellinger announced.
The 11 defendants arrested today are scheduled to appear before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Two defendants were already in custody on state charges and two defendants remain at large. All of the defendants are charged with conspiracy to distribute and possess with intent to distribute controlled substances, including heroin, fentanyl, and cocaine. A number of the defendants are also charged with weapons offenses. (See chart below.)
“As alleged in the criminal complaint, these defendants were affiliated with a street gang that trafficked fentanyl, an extremely dangerous synthetic opioid that can kill users with a single dose,” U.S. Attorney Sellinger said. “Not only did they deal these dangerous drugs in Paterson, certain gang members are alleged to have had guns to solidify their control of the drug trade. We have no higher priority than taking apart these gangs and addressing the drivers of violence. Independent of this case, thanks to the efforts of our federal, state, and local partners there have been fewer shooting incidents in New Jersey and fewer shooting victims in Paterson this year than in 2022. We are committed to building upon this progress and keeping our communities safe.”
“ATF is dedicated to identifying, disrupting, and dismantling gangs and criminal organizations,” Bryan Miller, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, said. “We appreciate the commitment and tireless efforts of our federal, state and local partners and our personnel in bringing accountability to criminals. Our collaborative and unified efforts are essential to reducing violent crime and removing those offenders that terrorize our communities and threaten public safety.”
According to the documents filed in this case and statements made in court:
The defendants are all members and associates of the UpTop street gang, based in the Fourth Ward of Paterson, in the area of Governor and Carroll streets, the Incca Village housing complex, and Harrison Street. The gang members and associates are involved in the distribution of controlled substances.
Jamal Ricks, aka “Bop,” and Rahjohn Leary, aka “Rah,” are high-ranking members of UpTop who worked with the other conspirators to control the sale of drugs in and around Paterson. Quadair Williams, aka “Fed Baby,” aka “Mega,” is a close associate of senior members of UpTop, including Ricks and Leary, and one of the gang’s drug suppliers.
Some members of the gang, including Marquis Turner, aka “June Bug,” and Quajamir Price, aka “Porkchop,” used and possessed and conspired to use and possess firearms in furtherance of the gang’s drug trafficking activities. Turner is charged with possession of a firearm and ammunition by a convicted felon and possession of a firearm during and in relation to a drug trafficking crime. Price is charged with conspiracy to possess a firearm during and in relation to a drug trafficking crime.
The count of conspiracy to distribute and possess with intent to distribute controlled substances is punishable by a mandatory minimum of five years in prison, a maximum penalty of 40 years in prison, a fine of up to $5 million. The count of possession of a firearm and ammunition by a convicted felon carries a maximum penalty of 15 years in prison, a fine of up to $250,000. The count of possession of a firearm during and in relation to a drug trafficking crime is punishable by a mandatory minimum of five years in prison and a maximum penalty of life in prison, which must be served consecutively to any other term of imprisonment imposed, and a fine of up to $250,000. The count of conspiracy to possess a firearm during and in relation to a drug trafficking crime carries a maximum penalty of 20 years in prison, a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents and task force officers of the (ATF), under the direction of Special Agent in Charge Miller; officers of the Paterson Police Department, under the direction of Officer in Charge Isa M. Abbasi of the Office of the Attorney General; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; the Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; special agents of U.S. Secret Service, under the direction of Special Agent in Charge Jose Riera in Newark; special agents of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under the direction of Newark Field Office Director John Tsoukaris; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the Elizabeth Police Department, under the direction of Police Director Earle Graves and Chief Giacomo Sacca, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, the Drug Enforcement Administration, Homeland Security Investigations Newark, Newark Police Department, Passaic Police Department, and Hillside Police Department for their assistance with the case.
This case is part of the Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Passaic County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney James Graham of the Organized Crime and Gangs Unit and Assistant U.S. Attorney Clara Kim of the OCDETF/Narcotics Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
DEFENDANTS
NAME
AGE
RESIDENCE
Quadair Williams
aka “Fed Baby”
aka “Mega”41
Hackensack, New Jersey
Jamal Ricks
aka “Bop”35
Paterson
Rahjohn Leary
aka “Rah”29
Newark
Ronald Taylor
aka “Fat Cat”
aka “Cat”29
Passaic, New Jersey
Malachi Fields
aka “Chicago”28
Paterson
Marquis Turner
aka “June Bug”26
Paterson
Prince Carter
aka “Eighty”
aka “Eight”41
Paterson
*Terrance Drakeford
30
Prospect Park, New Jersey
Xavier Classen
aka “Swaggy”25
Paterson
Quajamir Price
aka “Porkchop”20
Paterson
*Jamah Godwin
29
Paterson
Troy Blair
48
Paterson
Elton Baker
45
Paterson
Justin Carlos
aka “Spaz”36
Paterson
Marecius Samuels
aka “Re-Up”35
Paterson
*denotes at large
23-190
uptop.complaint.pdfU.S. Attorney Sellinger Announces Participation in Coordinated National Health Care Fraud Enforcement ActionRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced criminal charges against three defendants in connection with health care fraud prosecuted in the District of New Jersey, part of the Department of Justice’s 2023 National Health Care Fraud Enforcement Action. The charges include the owner of a counseling center who filed false insurance claims and two men who pleaded guilty to their roles in a scheme to defraud Amtrak.
“These enforcement actions, including against one of the largest health care fraud schemes ever prosecuted by the Justice Department, represent our intensified efforts to combat fraud and prosecute the individuals who profit from it,” Attorney General Merrick B. Garland said. “The Justice Department will find and bring to justice criminals who seek to defraud Americans and steal from taxpayer-funded programs.”
“Our health care system exists to provide people with access to the medical services and treatment they need, but it also is a target for criminals who see it as a lucrative source of money to be plundered through elaborate schemes,” U.S. Attorney Sellinger said. “Working with our law enforcement partners, we continue to make sure that the resources that people need will always be there, and those who seek to enrich themselves illegally will be brought to justice.”
“This nationwide enforcement action demonstrates that the Criminal Division is committed to fighting health care fraud and opioid abuse by prosecuting those who allegedly exploit patients and health care benefit programs for personal gain,” Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division said. “Today’s announcement includes some of the largest and most complex cases that the Department has prosecuted, and demonstrates the Department’s commitment to seeking justice for those at all levels of the healthcare industry who put profits above patient care, from professionals in doctors’ offices to executives in corporate boardrooms.”
The charges announced today by U.S. Attorney Sellinger are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 90 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.6 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled, and, in some cases, used the proceeds of the schemes to purchase luxury items, including exotic automobiles and yachts.
Devon Burt and Hallum Gelzer
Devon Burt, 50, of Blue Bell, Pennsylvania, and Hallum Gelzer, 44, of Enola, Pennsylvania, each pleaded guilty before U.S. District Judge Madeline C. Arleo in Newark federal court to separate informations charging them with conspiracy to commit health care fraud and conspiracy to communicate extortionate threats.
According to documents filed in this case and statements made in court:
Burt, a former Amtrak employee, and Gelzer worked with health care providers to recruit Amtrak employees to participate in a health care fraud scheme through the offer of cash payments in exchange for the employees allowing health care providers to use their patient and insurance information to submit false claims. The health care providers benefitted from the scheme by receiving payments from the Amtrak health care plan for services that were never provided or that were medically unnecessary. Burt received cash payments from providers in return for allowing the providers to use his personal and insurance information, and that of his dependents, to submit fraudulent claims. Both Burt and Gelzer received cash payments from providers in return for recruiting others to participate in the scheme.
From April 2022 through June 2022, Burt and Gelzer conspired to communicate extortionate threats to a health care provider who participated in the scheme. Burt and Gelzer threatened the provider by interstate telephone calls and text messages, indicating that the provider would be injured if the provider did not pay Gelzer several thousand dollars.
In total, the Amtrak health care plan paid over $9 million as a result of claims associated with providers connected to the health care fraud scheme.
The charge of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison and a maximum fine of $250,000, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. The charge of conspiracy to communicate extortionate threats in interstate commerce carries a maximum penalty of five years in prison, and a maximum fine of $250,000, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. As part of their guilty pleas, Burt agreed to pay $959,072 in restitution, while Gelzer agreed to pay approximately $1.66 million restitution. Sentencing for Burt is scheduled for Nov. 16, 2023, and for Gelzer, Nov. 15, 2023.
U.S. Attorney Sellinger credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York; and the Amtrak Police Department, under the direction of Chief of Police Sam Dotson, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark.
Maria P. Cosentino
Maria P. Cosentino, 60, of Garfield, New Jersey, is charged by complaint with four counts of health care fraud and one count of obstruction of justice. She made her initial court appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in the case and statements made in court:
Cosentino, the owner of a Paramus, New Jersey counseling center providing counseling services and mental health treatment to children, families, couples, and adults, for years submitted false claims to private health insurance plans for counseling sessions that were never provided. Cosentino falsely claimed that various individuals had received counseling at the center when in fact they had been out of the country, had ceased attending the practice, or had never visited the counseling center at all. The false claims caused insurance plans to issue reimbursement checks to the center even though the individuals had never received any treatment.
When law enforcement sought to interview individuals at Cosentino’s counseling practice about Cosentino’s conduct, Cosentino tried to persuade at least one employee to cover up her billing practices and to lie to law enforcement.
The charge of health care fraud is punishable by a maximum of 10 years in prison. The charge of obstructing justice is punishable by a maximum of 20 years in prison. Both charges are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents 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 DeNae M. Thomas of the Health Care Fraud Unit in Newark.
The Health Care Fraud Unit’s Strike Forces in Brooklyn, Dallas, Detroit, the Gulf Coast, Houston, Los Angeles, Miami, Newark, and Tampa; the Health Care Fraud Unit’s National Rapid Response Strike Force; the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, Southern District of Georgia, District of Idaho, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of New Jersey, Eastern District of New York, Southern District of Ohio, District of South Carolina, Southern District of Texas, Eastern District of Washington, and Eastern District of Wisconsin; and the State Attorney Generals’ Offices for Indiana, New York, and Pennsylvania are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the department’s website at LINK.
The Fraud Section uses the Victim Notification System to provide victims with case information and updates related to cases charged by the Fraud Section in the National Enforcement Action. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. Victims with questions about the cases charged by the U.S. Attorney’s Office may call 1-973-645-2700. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/case/united-states-v-steven-diamantstein.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Louisiana Man Charged with Using Chat Program to Entice MinorRead the Press Release
TRENTON, N.J. – A Louisiana man was charged with using an internet-based chat application to entice an adolescent to engage in prohibited sexual activity, interstate travel with the intent to engage in illicit sexual activity with a minor, and possession of child pornography, U.S. Attorney Philip R. Sellinger announced today.
Spencer W. Caudle, 34, of Prairieville, Louisiana, is charged by complaint with one count each of persuading, inducing, enticing, or coercing a minor through a facility of interstate commerce into prohibited sexual activity; interstate travel with the intent to engage in illicit conduct with a minor; and possession of child pornography. He appeared before U.S. Magistrate Rukhsanah L. Singh in Trenton federal court on June 27, 2023, and was detained.
According to documents filed in this case and statements made in court:
In April 2023, Caudle began interacting on online social media applications with the victim. Caudle’s communications with the victim were sexual in nature despite the victim informing Caudle the victim’s minor status. Caudle even expressed nervousness about being on the television show “To Catch a Predator,” but continued informing the victim of his desire to have sex with the victim. On May 26, 2023, Caudle drove from Louisiana to meet and have sex with the victim in Toms River, New Jersey. On May 27, 2023, Caudle, in fact, committed sexual acts on the victim. Later that night, Caudle left New Jersey to drive back to Louisiana.
Local law enforcement became aware of Caudle’s prohibited sexual activity with the victim and began an investigation. In June 2023, an undercover law enforcement officer assumed the victim’s online and cellular presence and communicated with Caudle. During these conversations, Caudle confirmed his prior sexual acts with the victim and expressed a desire for further sexual activity. While communicating with the undercover officer, Caudle made plans to fly to New Jersey on June 16, 2023, to commit additional sexual acts on the victim.
On June 16, 2023, Caudle flew from New Orleans, Louisiana to Newark Liberty International Airport. Law enforcement arrested Caudle in the airport. A search of a laptop Caudle brought to New Jersey revealed at least 10 images and five videos of child sexual abuse.
The charge of persuading, inducing, enticing, or coercing a minor into prohibited sexual activity through an internet-based chat application carries a minimum penalty of 10 years in prison and a maximum penalty of life in prison. The charge of interstate travel with the intent to engage in illicit conduct with a minor carries a maximum penalty of 30 years in prison. The charge of possession of child pornography carries a maximum penalty of 20 years in prison. Each count also carries a fine of up to $250,000 or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, Atlantic City, under the direction of Special Agent in Charge Ricky J. Patel in Newark; the Ocean County Prosecutors Office, under the direction of Prosecutor Bradley D. Billhimer; and the Toms River Police Department, under the direction of Police Chief Mitchell A. Little, with the investigation leading to the complaint.
The government is represented by Assistant U.S. Attorney Richard G. Shephard of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
caudle.complaint.pdfGloucester City Business Owner Sentenced to 30 Months in Prison for Payroll Tax Fraud and Pandemic Loan FraudRead the Press Release
CAMDEN, N.J. – The owner of a business in Gloucester City, New Jersey, was sentenced today to 30 months in prison for failing to pay over payroll taxes to the IRS, failing to file personal income tax returns, and fraudulently obtaining a Paycheck Protection Program (PPP) loan, U.S. Attorney Philip R. Sellinger announced.
John Degan, 69, of Philadelphia, Pennsylvania, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of failing to collect, account for, and pay over payroll taxes, one count of failure to file income tax returns with the IRS, and one count of bank fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Degan was the owner and operator of Companion Services Group Inc., a building maintenance and restoration service company in Gloucester City. Companion provided architectural maintenance and restoration services, which includes restroom maintenance, glass restoration, and graffiti removal.
Degan admitted that for tax years 2016 through 2020, he willfully failed to file payroll tax returns and failed to pay over $600,629 in withheld employment taxes on behalf of his employees. Degan attempted to conceal from the IRS over $4.4 million in wages that he paid to himself and his employees by not filing and submitting Forms W-2 or Form W-3 to the Social Security Administration (SSA).
Degan admitted that he received a yearly salary that ranged from $140,000 to $170,000 from Companion, willfully failed to file his federal income tax returns for tax years 2016 through 2020, and has not filed a tax return since 2003. He also failed to file the corporate tax returns for Companion, a business that generated more than $1.4 million in gross receipts yearly.
Degan also submitted a fraudulent application to a lender to obtain a PPP loan. In April 2020, Degan submitted a PPP application for Companion in which he falsely represented to the lender that Companion had employees and payroll expenses. In further support of his application, Degan submitted various IRS Forms to establish that he was paying compensation to his employees. Those forms were never actually submitted to the IRS; instead, they were false forms that were only created and used for the purpose of securing the loan.
Based on Degan’s misrepresentations, the lender approved the PPP loan and disbursed $193,407 in federal COVID-19 emergency relief funds.
In addition to the prison term, Judge Kugler sentenced Degan to three years of supervised release. Restitution will be determined at a later date.
U.S. Attorney Sellinger credited special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to today’s sentencing.
The government is represented by Jason M. Richardson, Attorney in Charge of the U.S. Attorney’s Office in Camden.
Camden County Man Sentenced to 78 Months in Prison for Hiring Hitman via InternetRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 78 months in prison for paying $20,000 in bitcoin to have a 14-year old child murdered, U.S. Attorney Philip R. Sellinger announced.
John Michael Musbach, 34, of Haddonfield, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an indictment charging him with one count of knowingly and intentionally using and causing another to use a facility of interstate and foreign commerce, that is the internet, with the intent that a murder be committed. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In the summer of 2015, Musbach exchanged via the internet sexually explicit photographs and videos with the victim, a 13-year-old living in New York. The victim’s parents found out about the inappropriate contact and contacted the local police. Upon identifying Musbach, then a resident of Atlantic County, New Jersey, New York law enforcement officers reached out to the Atlantic County Prosecutor’s Office (ACPO). In March 2016, officers from the ACPO arrested Musbach on child pornography charges and executed a search warrant at his residence, then in Galloway, New Jersey.
Musbach decided to have the victim killed so that the victim could not testify against him in the pending criminal case. During the period from May 7, 2016, through May 20, 2016, Musbach repeatedly communicated with the administrator of a murder-for-hire website, which operated on the dark net, and which purported to offer contract killings or other acts of violence in return for payment in cryptocurrency, and arranged for a murder-for-hire. Musbach asked if a 14-year-old was too young to target, and upon hearing that the age was not a problem, paid approximately 40 bitcoin (approximately $20,000 at the time) for the hit. Musbach repeatedly messaged the website’s administrator following up on the hit and asking when it would occur. When pressed for an additional $5,000 to secure the hit, Musbach eventually sought to cancel and asked for a refund of his $20,000. The website’s administrator then revealed that the website was a scam and threatened to reveal Musbach’s information to law enforcement.
In addition to the prison term, Judge Rodriguez sentenced Musbach to three years of supervised release and fined him $30,000.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark and Special Agent in Charge Jamie Holt in St. Paul, Minnesota, with the investigation leading to today’s sentencing. He also thanked the Atlantic County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig in Camden.
Two Men Sentenced to Prison Terms in $1 Million ‘Upfront-Fee’ SchemeRead the Press Release
NEWARK, N.J. – A Camden County, New Jersey, man and a Nevada man were sentenced to prison terms for their roles in defrauding multiple victims through a $1 million “upfront-fee” scheme, U.S. Attorney Philip R. Sellinger announced today.
Roy Johannes Gillar, 51, of Las Vegas, was sentenced to six years in prison; Harold Mignott, 60, of Voorhees, New Jersey, was sentenced to three years in prison. They were each convicted on Oct. 21, 2022, of wire fraud conspiracy and four counts of wire fraud following a five-week jury trial before U.S. District Judge John Michael Vazquez. Gillar was also convicted of one count of transacting in criminal proceeds. Judge Vazquez imposed the sentences on June 22, 2023, in Newark federal court. A co-defendant, Jerrid Douglas of Freehold, New Jersey, who was also convicted, is scheduled to be sentenced on July 26, 2023.
According to documents in this case and evidence at trial:
From March 2016 through June 2016, Douglas, Gillar, and Mignott, along with a fourth conspirator, agreed to defraud the owners of the victim company of approximately $1 million. The defendants fraudulently induced the two victim company owners to enter a joint venture agreement with the defendants’ New Jersey-based shell company. The defendants falsely represented that their company could acquire and provide a “standby letter of credit” (SBLC) backed by either €1 billion in cash or highly lucrative Mexican gold bonds. An SBLC is a guarantee of payment issued by a bank on behalf of a client that is used should the client fail to fulfill a contractual commitment with a third party.
The victim company wanted access to the standby letter of credit so it could purchase raw gold overseas and sell it to gold refineries. As part of the joint venture agreement, the company agreed to pay the defendants $1 million for the bank fee associated with the standby letter of credit.
In order to cover up the scheme and convince the victims to approve the transfer of the funds, the defendants made numerous verbal and written misrepresentations, including providing the victims with a phony letter from a major international bank saying that it was ready, willing, and able to provide a €1 billion SBLC to the defendants’ shell company.
However, after the victim company owners transmitted $800,000 of the $1 million to the defendants, the defendants failed to provide an SBLC or anything of value. Instead, the defendants misappropriated the money for their personal use.
In addition to the prison terms, Judge Vazquez sentenced Gillar to three years of supervised release and ordered to pay restitution of $1.1 million and forfeiture of $1 million. Mignott was sentenced to three years of supervised release and ordered to pay restitution of $1.1 million and forfeiture of $219,000.
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 sentencing.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
Atlantic County Man Sentenced to 14 Years in Prison for Role in Drug Distribution SchemeRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced to 168 months in prison for his role in drug distribution scheme, U.S. Attorney Philip R. Sellinger announced today.
Ricardo Clavijo, 42, of Egg Harbor Township, New Jersey, previously pleaded guilty before the U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiring to distribute over one kilogram of heroin, one count of possession with intent to distribute over one kilogram of heroin, and one count of maintaining a drug-related premises. Judge Bumb imposed the sentence on June 22, 2023, in Camden federal court.
According to documents filed in this case and statements made in court:
On July 12, 2021, a search warrant was executed at Clavijo’s residence, where law enforcement authorities encountered Clavijo and his brother, Christopher Gonzalez. Authorities found a drug packaging facility in the basement, as well as 4.3 kilograms of heroin, 5.5 kilograms of fentanyl, 10.8 kilograms of cocaine, drug packaging materials and equipment, and a money counting machine. Some of the heroin was already packaged in tens of thousands of individual doses, ready for street-level distribution. Agents also seized a .45 caliber handgun, a loaded magazine for the handgun, a 9mm 50-round drum magazine, and $8,457 in cash, all of which will be forfeited by Clavijo as part of his guilty plea.
In addition to the prison term, Judge Bumb sentenced Clavijo to five years of supervised release.
Gonzalez pleaded guilty in October 2022 to his role in the conspiracy and is awaiting sentencing.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration’s New Jersey Division, DEA Atlantic County HIDTA Task Force, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation leading to the sentencing. He also thanked the Atlantic County Prosecutor’s Office, under the direction of Prosecutor William Reynolds, and the Egg Harbor Township Police Department, under the direction of Chief Frederick Spano, for their assistance.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
Justice Department Secures Agreement with New Jersey County to Resolve Voting Rights Act LawsuitRead the Press Release
NEWARK, N.J. – The Justice Department announced today that it has secured an agreement that provides for a comprehensive Spanish-language election program for voters in Union County, New Jersey. The consent decree was approved by a three-judge court in the U.S. District Court of New Jersey.
The proposed consent decree was filed in federal court in conjunction with a lawsuit brought by the Justice Department. The department’s lawsuit brings claims under Sections 203 and 208 of the Voting Rights Act regarding the availability of election assistance and materials in Spanish for Spanish-speaking voters with limited English proficiency. Section 203 requires that certain jurisdictions, including Union County, provide election materials and assistance in other languages, in addition to English. Section 208 provides a right for voters who need assistance with voting – due to inability to read or write, blindness or disability – to receive that assistance from the person of their choice, with certain limited exceptions.
Under the consent decree, the Union County Clerk and Board of Elections will provide all election-related information in both English and Spanish, including information displayed in polling places and online. The Union County Board of Elections will also ensure that in-person language assistance is available at all early voting sites and at each election district with at least 100 Spanish-surnamed registered voters. Spanish-language assistance will continue to be available to all voters by telephone during elections. In addition, the consent decree provides that any voter covered by Section 208 who needs assistance to vote may be assisted by the person of that voter’s choice, other than an agent of the voter’s employer or union, during any stage of the voting process. The consent decree also provides that federal observers may monitor election day activities in polling places in Union County.
“The right to vote is the bedrock of our democracy,” U.S. Attorney Philip R. Sellinger, District of New Jersey, said. “We remain committed to ensuring that every eligible New Jersey voter can vote without language barriers. Now that a court order is in place, we look forward to working with Union County to accomplish this goal.”
“The Justice Department is committed to protecting the right to vote,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “This agreement will ensure that Spanish-speaking residents of Union County can fully access the ballot box. The Civil Rights Division will continue to use every tool available to protect the rights of all voters seeking to participate in our democracy.”
Individuals may file voting rights complaints with the Civil Rights Division either online here, or may call (800) 253-3931. Individuals may also contact the U.S. Attorney’s Office for the District of New Jersey either online here or may call (855) 281-3339.
More information about the Voting Rights Act and other federal voting rights laws are available on the Justice Department’s website at www.justice.gov/crt/voting-section.
The government is represented by Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Division; Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Civil Rights Division; Bert Russ, Deputy Chief of the Voting Section in the Justice Department’s Civil Rights Division; Bruce Gear, Trial Attorney, Voting Section; and Michelle Rupp, Trial Attorney, Voting Section.
ucconsent.pdfGloucester County Man Charged with Possession of Child PornographyRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was charged today with possession of child pornography, U.S. Attorney Philip R. Sellinger announced.
Kyle Daniel Reese, 29, of Williamstown, New Jersey, is charged by complaint with one count of possession of child pornography. He appeared before U.S. Magistrate Judge Elizabeth A. Pascal in Camden federal court and was detained.
According to documents filed in this case and statements made in court:
In October and November 2020, while Reese was serving a term of home detention due to a prior federal conviction for receipt of child pornography, Reese accessed child pornography using his iPhone. The child pornography was subsequently uncovered after his iPhone was seized by Reese’s probation officer. A search of the phone revealed 86 files containing child pornography.
The count of possession of child pornography carries a mandatory minimum sentence of 10 years in prison, a maximum of 20 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 Jacqueline Maguire in Philadelphia, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Joseph McFarlane of the Camden office.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
reese.complaint.pdfFormer Jersey City Board of Education President and Former Acting Executive Director of Jersey City Employment and Training Program Admits Embezzlement and FraudRead the Press Release
NEWARK, N.J. – The former president of the Jersey City Board of Education (JCBOED) and former acting executive director of the Jersey City Employment and Training Program (JCETP) today admitted embezzling JCETP funds and committing wire fraud in connection with his use of funds from his 2016 JCBOED campaign account, U.S. Attorney Philip R. Sellinger announced.
Sudhan M. Thomas, 47, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge William J. Martini to two counts of an indictment charging him with embezzling funds from JCETP, an organization that received federal funds, and wire fraud for embezzling money from his 2016 JCBOED campaign.
According to documents filed in this case and statements made in court:
Thomas served as JCETP’s acting executive director from January 2019 until his resignation in July 2019. JCETP was a nonprofit organization that operated to assist Jersey City residents to prepare for and enter the workforce. JCETP received substantial amounts of funding from federal grants from the U.S. Department of Labor and the U.S. Department of Housing and Urban Development.
Using his access to JCETP funds and control of JCETP’s bank accounts, from March 2019 through July 2019, Thomas embezzled more than $45,000 from JCETP. Thomas caused checks to be drawn from JCETP accounts that were made payable to others, but ultimately received by Thomas or used to pay his debts and expenses. Thomas embezzled JCETP funds by issuing JCETP checks made out to cash that Thomas either cashed himself or used to obtain bank checks that he made payable to Next Glocal, an entity for which Thomas was a director, which were deposited into a bank account for his personal use.
Thomas ran for and was elected to a seat on the JCBOED in 2016, ultimately serving as vice president and then president of the JCBOED. From September 2016 to November 2016, Thomas collected campaign contributions and caused them to be deposited into a bank account opened for the 2016 campaign that he controlled. Under the guise of collecting repayments for loans to the campaign or reimbursement for other purported campaign-related expenses, Thomas embezzled more than $8,000 from his 2016 campaign for his own personal use.
The embezzlement charge is punishable by a maximum potential penalty of 10 years in prison. The wire fraud charge is punishable by a maximum potential penalty of 20 years in prison. Both charges carry a maximum fine of up to $250,000. Sentencing is scheduled for Nov. 1, 2023.
Thomas originally was charged by indictment in November 2020 with Paul Appel, 81, of Point Pleasant, New Jersey, who is an attorney and who also served as treasurer for Thomas’ 2016 campaign. Appel’s case is pending before Judge Martini, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Elaine K. Lou, Chief of the Opioid Abuse Prevention and Enforcement Unit of the Criminal Division, and Assistant U.S. Attorney Katherine J. Calle of the Special Prosecutions Division in Newark.
thomasappel.indictment.pdfEssex County Man Sentenced to 30 Years in Prison for Producing Child Pornography in New Jersey and AbroadRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 360 months in prison for producing multiple videos depicting the sexual assault of children, U.S. Attorney Philip R. Sellinger announced.
Antonio Del Prado, 62, of Millburn, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count each of production of child pornography and production of child pornography abroad with intent to transport into the United States. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In October 2020, law enforcement officials learned that Del Prado had uploaded multiple items of suspected child pornography to an internet-based cloud storage system. The investigation also revealed that Del Prado had a woman livestream a video of a child being sexually assaulted for Del Prado. Del Prado was arrested at his home in November 2020, at which time agents seized multiple electronic devices that were found to contain child pornography. Further investigation revealed that on multiple occasions, Del Prado sexually assaulted children in the Philippines and transmitted video recordings of those assaults into the United States.
In addition to the prison term, Judge Wigenton sentenced Del Prado to 10 years of supervised release.
U.S. Attorney Sellinger credited special agents with the Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel, in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
New York Man Admits Assault on AirplaneRead the Press Release
NEWARK, N.J. – A New York man today admitted assaulting a female passenger on a flight to Newark Liberty International Airport, U.S. Attorney Philip R. Sellinger announced.
Ryan Manuella, 30, of Cheektowaga, New York, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to assault with intent to commit another felony, namely, stalking, while on an airplane. Manuella was ordered detained without bond.
According to documents filed in this case and statements made in court:
On a flight from Denver, Colorado, to Newark, on April 16, 2021, Manuella moved to a vacant seat next to a female passenger and touched the passenger without her consent. Manuella admitted the victim then yelled at him and left the row of seats. He admitted that touching the victim caused her substantial emotional distress.
The charge carries a maximum term of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Nov. 1, 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 officers of the Port Authority Police Department with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys DeNae M. Thomas and Katherine M. Romano of the Health Care Fraud Unit in Newark.
manuella.sinformation.pdfGloucester County Man Sentenced to Four Years in Prison for Drug TraffickingRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 48 months in prison for trafficking methamphetamine and fentanyl in southern New Jersey and Philadelphia, U.S. Attorney Philip R. Sellinger announced.
John Munson, 48, of Deptford, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to one count of the superseding indictment charging him with possessing with intent to distribute methamphetamine. His codefendant, Kevin Salmon, 26, of Philadelphia, previously pleaded guilty to two counts of a superseding indictment charging him with conspiring to distribute fentanyl and methamphetamine and distributing methamphetamine. Judge Hillman imposed Munson’s sentence today in Camden federal court
According to documents filed in this case and statements made in court:
Munson admitted obtaining methamphetamine from the conspiracy in order to distribute the methamphetamine to others. Salmon acted as a “runner” or “courier” for the drug-trafficking organization that distributed methamphetamine and fentanyl. Salmon was sentenced in March 2023 to 168 months in prison.
In addition to the prison term, Judge Hillman sentenced Munson to three years of supervised release.
U.S. Attorney Sellinger credited special agents with the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation leading to today’s sentencing. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania; Drug Enforcement Administration, Philadelphia Division; U.S. Department of Homeland Security – Homeland Security Investigations; U.S. Marshals Service; FBI; Bensalem Police Department; Berlin Borough Police Department; Berlin Township Police Department; Bucks County District Attorney’s Office; Camden County Prosecutor’s Office; Clayton Police Department; Delaware County District Attorney’s Office Narcotics Task Force; Deptford Township Police Department; Gloucester County Prosecutor’s Office; Gloucester Township Police Department; New Jersey State Police; New Jersey National Guard Counter Drug Task Force; Pennsylvania State Police; Pennsville Police Department; and Winslow Township Police Department for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Jeffrey Bender and Diana Carrig of the U.S. Attorney’s Office in Camden.
Russian National Charged with Conspiring to Commit Lockbit Ransomware Attacks Against U.S. and Foreign BusinessesRead the Press Release
NEWARK, N.J. – The Justice Department today announced charges against a Russian national for his involvement in deploying numerous LockBit ransomware and other cyberattacks against victim computer systems in the United States, Asia, Europe, and Africa.
Ruslan Magomedovich Astamirov, 20, (АСТАМИРОВ, Руслан Магомедовичь), of Chechen Republic, Russia, is charged by complaint unsealed today in Newark federal court with conspiring to commit wire fraud and conspiring to intentionally damage protected computers and to transmit ransom demands. Astamirov was arrested on the complaint in Arizona and is scheduled to make his initial appearance in the District of Arizona.
“Astamirov is the third defendant charged by this office in the LockBit global ransomware campaign, and the second defendant to be apprehended,” U.S. Attorney Sellinger said. “The LockBit conspirators and any other ransomware perpetrators cannot hide behind imagined online anonymity. We will continue to work tirelessly with all our law enforcement partners to identify ransomware perpetrators and bring them to justice.”
“This Lockbit-related arrest, the second in six months, underscores the Justice Department’s unwavering commitment to hold ransomware actors accountable,” Deputy Attorney General Lisa O. Monaco said. “In securing the arrest of a second Russian national affiliated with the LockBit ransomware, the department has once again demonstrated the long arm of the law. We will continue to use every tool at our disposal to disrupt cybercrime, and while cybercriminals may continue to run, they ultimately cannot hide.”
“These cyber criminals hide in a virtual world but cause very real harm when they seize control of computer systems, putting companies and customers in an unimaginable bind,” FBI Newark Special Agent in Charge James E. Dennehy said. “Either pay the ransoms or lose control of your entire information technology infrastructure. It is too high a price for anyone to be forced to pay. Astamirov's arrest, along with the others charged in this case, is a simple but devastating illustration of how we are following through on our promise - we are bringing these hackers to justice."
According to documents filed in this case:
The LockBit ransomware variant first appeared around January 2020. LockBit actors have executed over 1,400 attacks against victims in the United States and around the world, issuing over $100 million in ransom demands and receiving at least as much as tens of millions of dollars in actual ransom payments made in the form of bitcoin.
In furtherance of his LockBit-related activities, Astamirov owned, controlled, and used a variety of email addresses, Internet Protocol (IP) addresses, and other online provider accounts that allowed him and his co-conspirators to deploy LockBit ransomware and to communicate with their victims. Additionally, in at least one circumstance, law enforcement was able to trace a portion of a victim’s ransom payment to a virtual currency address in Astamirov’s control.
This announcement follows LockBit-related charges in two other cases from the District of New Jersey. In November 2022, the department announced criminal charges against Mikhail Vasiliev, and Canadian national, who is currently in custody in Canada awaiting extradition to the United States. In May 2023, the department announced the indictment of Mikhail Pavlovich Matveev, aka Wazawaka, aka m1x, aka Boriselcin, aka Uhodiransomwar, for his alleged participation in separate conspiracies to deploy LockBit, Babuk, and Hive ransomware variants against victims in the United States and abroad.
The charge of conspiring to intentionally damage protected computers and to transmit ransom demands is punishable by a maximum of five years in prison. The charge of conspiring to commit wire fraud is punishable by a maximum of 20 years in prison. Both charges are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
The FBI Newark Field Office’s Cyber Crimes Task Force is investigating the case. The FBI Phoenix Division, the Jersey City Police Department, New Jersey State Police, Newark IRS Criminal Investigation, and the international partners from Europol’s European Cybercrime Centre, Eurojust, National Police Agency of Japan, France’s Gendarmerie Nationale Cyberspace Command (Cyber Crime Investigation Unit / C3N), National Crime Agency and South West Regional Organized Crime Unit of the United Kingdom, Kantonspolizei Zürich of Switzerland, Landeskriminalamt Schleswig-Holstein and the Bundeskriminalamt of Germany, and Swedish Police Authority of Sweden also provided valuable assistance.
The government is represented by Assistant U.S. Attorneys Andrew M. Trombly, Vinay S. Limbachia, and David E. Malagold of the Cybercrime Unit in Newark and DOJ Trial Attorneys Jessica C. Peck and Jorge Gonzalez of the Computer Crime and Intellectual Property Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
astamirov.complaint.pdfEssex County Woman Sentenced to 21 Months in Prison for Health Care Fraud ConspiracyRead the Press Release
NEWARK, N.J. – An Essex County woman was sentenced to 21 months in prison for her role in defrauding insurers by submitting fraudulent claims for chiropractic services that were never rendered, U.S. Attorney Philip R. Sellinger announced today.
Tiffany Marsh, 45, of Orange, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging her with one count of conspiracy to commit health care fraud. Judge Cecchi imposed the sentence on June 14, 2023, in Newark federal court.
According to documents filed in this case and statements made in court:
Marsh was a medical billing professional who submitted false claims to two employer-provided health insurance plans for chiropractic services that were never provided. Marsh, who worked for the chiropractors at issue, falsely claimed that various individuals with employer-provided health insurance had incurred out-of-network medical costs, causing the insurance plans to issue reimbursement checks to the individual employees. The employees received the checks, and then paid Marsh a portion of the reimbursements in cash. As a result of the scheme, the victim health insurance plans incurred losses of approximately $334,000.
In addition to the prison term, Judge Cecchi sentenced Marsh to three years of supervised release and ordered her to pay $334,837 in restitution.
U.S. Attorney Sellinger credited special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, and the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark.
Essex County Man Admits Armed Robberies of Three PharmaciesRead the Press Release
CAMDEN, N.J. – An Essex County, New Jersey, man admitted committing three armed robberies of pharmacies in Elizabeth, New Jersey, for oxycodone and other prescription medication, U.S. Attorney Philip R. Sellinger announced today.
Charles Johnson, 28, of Irvington, New Jersey, pleaded guilty on June 14, 2023, before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with three counts of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence.
According to documents filed in this case and statements made in court:
Throughout June and July 2022, Johnson robbed three different pharmacies in Elizabeth using a similar approach for each of the robberies, including brandishing a firearm, committing the robberies in the morning, demanding that employees of the pharmacies provide Johnson with oxycodone, promethazine, and other prescription medication, and threatening to shoot individuals in the pharmacies with a firearm. Law enforcement officials collected extensive video surveillance footage that linked Johnson to the robberies.
The Hobbs Act Robbery counts each carry a maximum potential penalty of 20 years in prison. The brandishing of a firearm during a crime of violence count carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other term of imprisonment imposed. Each count also carries a fine of up to $250,000, or twice the gain or loss from the offenses, whichever is greatest. Sentencing is scheduled for Oct. 18, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; and the Elizabeth Police Department, under the direction of Chief Giacomo Sacca, for the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Jessica R. Ecker of the General Crimes Unit in Newark.
johnson.information.pdfSouth Korean Clothing Manufacturer Admits Evading U.S. Customs Duties and Enters Civil Settlement AgreementRead the Press Release
NEWARK, N.J. – A South Korean company today admitted that it evaded customs duties on clothing that it imported into the United States, U.S. Attorney Philip R. Sellinger announced.
Anyclo International Inc. (Anyclo) pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging the company with evading customs duties. Anyclo was also sentenced on this charge today to a criminal fine of $250,000 and ordered to pay restitution to the United States in the amount of $2.05 million.
Anyclo also agreed to a civil settlement with the United States, which includes paying $2.05 million, plus interest, over 15 months to resolve its potential liability under the False Claims Act.
Anyclo admitted that from Oct. 5, 2012, to Aug. 5, 2019, it evaded customs duties on clothing and apparel that it manufactured abroad and imported into the United States. Anyclo perpetrated the scheme by preparing two invoices for the same shipments: an accurate invoice provided to U.S. purchasers, and a false invoice undervaluing the goods that Anyclo furnished to U.S. Customs. By falsely undervaluing its merchandise, Anyclo drastically underpaid customs duties that it owed based on the true value of those goods.
The civil settlement with Anyclo resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The relator, Yang Sup Cha, will receive 18 percent of the civil settlement amount recovered by the United States pursuant to the False Claims Act.
U.S. Attorney Sellinger credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, and members of the Office of Trade, Regulatory Audit & Agency Advisory Services, under the supervision of Acting Field Director of the New York Office Teresa Halpin, with the investigation leading the guilty plea and civil settlement.
The government is represented in the criminal case by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark, and in the civil case by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.
anyclo.settlement.pdf anyclo.information.pdfGloucester County Man Admits Healthcare FraudRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man today admitted defrauding his employer’s health insurance plan out of more than $4 million by submitting fraudulent claims for medically unnecessary compounded medications, Attorney for the United States Vikas Khanna announced.
Christopher Gualtieri, 50, of Franklinville, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler to one count of an indictment charging him with conspiracy to commit health care and mail fraud and one count charging him with obtaining oxycodone through fraud.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Compounded drugs can be properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Gualtieri and others learned that certain compound medication prescriptions were reimbursed by their health insurance plan for up to thousands of dollars for a one-month supply. Gualtieri recruited co-workers who were covered by their employer’s self-funded health insurance plan to agree to receive medically unnecessary compounded medications for themselves and their family members. Gualtieri and others caused the submission of fraudulent prescriptions to compounding pharmacies, which filled the prescriptions and billed the health insurance plan’s pharmacy benefits administrator. The pharmacy benefits administrator paid the compounding pharmacies more than $4 million for compounded medications arranged by Gualtieri and two conspirators for themselves, their dependents, and other family members. Gualtieri received a portion of the amount paid by the pharmacy benefits administrator to the compounding pharmacies. Gualtieri admitted to paying cash to his conspirators for their participation in the scheme. When questioned by special agents of the FBI, Gualtieri falsely denied recruiting others to receive compounded medications and falsely denied paying cash to others for their participation in the scheme.
During the same time period as the conspiracy involving compounded medications, Gualtieri also prepared and caused the filling of fraudulent prescriptions for oxycodone for himself and a family member.
The charge of conspiracy to commit health care and mail fraud is punishable by a maximum potential penalty of 20 years in prison; the charge of obtaining drugs by fraud is punishable by a maximum potential penalty of four years in prison. Both counts are also punishable by a fine of up to $250,000, or twice the gross gain or gross loss from the offense, whichever is greatest. Sentencing is scheduled for Oct. 18, 2023.
Attorney for the United States Khanna credited agents of the FBI, Philadelphia Field Office, Health Care Fraud Task Force, under the direction of Special Agent in Charge Jacqueline Maguire; task force members from the Pennsylvania Attorney General’s Office, Department of Health and Human Services – Office of Inspector General; the Philadelphia Police Department; and diversion investigators of the Drug Enforcement Administration, New Jersey Division, Camden Resident Office, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation leading to today’s guilty plea. Attorney for the United States Khanna also thanked U.S. Postal Service – Office of Inspector General, 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.
gualtieri.indictment.pdfNew York Woman Admits Bribing Mail Carriers to Steal Postal Arrow KeysRead the Press Release
NEWARK, N.J. – A New York woman man today admitted her role in a scheme to bribe mail carriers to steal postal arrow keys in order to unlock mail receptacles and to use stolen items from the mail to obtain funds fraudulently from banks, U.S. Attorney Philip R. Sellinger announced.
Halimatou Ndiaye, 27, of the Bronx, New York, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging her with one count of bribery of U.S. Postal Service mail carriers and one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Ndiaye schemed to bribe mail carriers in East Orange and Newark by offering them cash, typically $5,000, in exchange for the mail carriers giving her and another individual a postal arrow key, which could be used to access a variety of postal service mail receptacles. Ndiaye and others sought USPS arrow keys so that they could steal mail. For example, from June to July 2021, Ndiaye and the other individual drove to various locations in East Orange and Newark, where they stopped mail carriers and handed them a note indicating they would give $5,000 to the mail carrier in exchange for an arrow key.
In addition, from January 2021 to July 2021, Ndiaye conspired with others to obtain funds fraudulently from banks by using stolen checks and bank cards to draw funds from bank accounts linked to the stolen items and using the identification of others to fraudulently obtain funds.
The bribery charge to which Ndiaye pleaded guilty carries a maximum potential penalty of 15 years in prison and a $250,000 fine; the bank fraud conspiracy charge carries a maximum penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is currently scheduled for Oct. 25, 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, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the Special Prosecutions Division in Newark.
ndiaye.information.pdfMercer County Man Sentenced to 130 Months in Prison for Role in Drug Trafficking OrganizationRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 130 months in prison for his role as the leader of a Trenton drug-trafficking organization responsible for the distribution of heroin in the Trenton area, U.S. Attorney Philip R. Sellinger announced.
Robert M. Gbanapolor, 36, of Trenton, previously pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to a superseding indictment charging him with one count of conspiracy to distribute 100 grams or more of heroin; one count of possession with intent to distribute 100 grams or more of heroin; and one count of distribution and possession with intent to distribute a detectable amount of heroin.
According to documents filed in the case and statements made in court:
From June 2018 through May 2019, Gbanapolor and others engaged in a heroin trafficking conspiracy in the areas of Stuyvesant, Hoffman, and Highland avenues in Trenton, as well as in the area of Barbary Road in Philadelphia, Pennsylvania. Gbanapolor obtained regular bulk supplies of heroin from Duane Paulino-Escalera, whom Gbanapolor referred to as “Papi.” Gbanapolor, in turn, distributed this heroin for profit to other members of the drug-trafficking organization, who distributed the heroin in and around Trenton. Paulino-Escalera pleaded guilty in January 2020 and was sentenced on May 7, 2021, to five years in prison.
In addition to the prison term, Judge Shipp sentenced Gbanapolor to four years of supervised release.
U.S. Attorney Sellinger credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, Camden Resident Office, under the direction of Special Agent in Charge Cheryl Ortiz; and task force officers of the Trenton Police Department, under the direction of Police Director Steve Wilson, with the investigation leading to today’s sentencing. He also thanked detectives and officers of the Gloucester County Prosecutor’s Office, under the direction of Acting Prosecutor Christine A. Hoffman; detectives and officers of the Gloucester Township Police Department, under the direction of Chief David Harkins; members of the N.J. State Police, under the direction of Col. Patrick J. Callahan; detectives and officers of the Bordentown Township Police Department, under the direction of Chief Brian Pesce; and special agents of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller.
This case is part of an Organized Crime Drug Enforcement Task Force (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 Eric A. Boden, Attorney in Charge of the Trenton Office, and Michelle Gasparian, Chief of the Organized Crime/Gangs Unit in Newark.
Four Colombian Nationals Charged with Interstate Transportation of Stolen Goods ConspiracyRead the Press Release
NEWARK, N.J. – Four Colombian nationals were charged today for their roles in a scheme to burglarize a home in New Jersey and transport the stolen goods to New York, U.S. Attorney Philip R. Sellinger announced.
William Londono Rojas, 28, of Plainfield, New Jersey; Andrew Cifuentes Cadavid, 32, and Nicolas Ochoa Zambrano, 19, both of Elizabeth, New Jersey, and Jose Alejandro Calvo Orozco, 27, of Madison, New Jersey, are each charged by complaint with conspiracy to transport stolen property. Rojas, Cadavid and Zambrano made their initial appearances before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and were detained. Orozco was recently deported.
According to documents filed in this case and statements made in court:
On Nov. 30, 2022 through Dec. 2, 2022, the four defendants burglarized a home and then transported the stolen goods across state lines from Union County, New Jersey, to New York.
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 gross gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited the FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark; Immigration and Customs Enforcement - Enforcement Removal Operations, under the direction of Field Office Director John Tsoukaris; the Union County Prosecutor’s Office under direction of Prosecutor William Daniel and Chief Harvey Barnwell; and the Cranford Police Department, under the direction of Chief Ryan Greco, with the investigation leading to the charges. He also thanked New Jersey State Police, Port Authority of New York and New Jersey, U.S. Customs and Border Protection, and U.S. Postal Inspection Service for their assistance as well as the police departments of Berkeley Heights Township, Branchburg, Cranford, Edison, Elizabeth, Kearny, Livingston, Metuchen, Monroe, Montgomery, Mountainside, Raritan Borough, and Warren.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Organized Crime and Drug Enforcement Task Force/Narcotics Unit and Rebecca Sussman of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
rojasetal.complaint.pdfAtlantic County Man Sentenced to 18 Months in Prison for Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A retail director for a local candy company was sentenced today to 18 months in prison for defrauding New Jersey state health benefits programs out of over $2 million by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Nicholas Tedesco, 49, of Linwood, New Jersey, 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.
Nicholas Tedesco’s brother and a leader in the conspiracy, Matthew Tedesco, pleaded guilty to his role in the scheme on Aug. 17, 2017 and is scheduled to be sentenced on Oct. 26, 2023. Nicholas Tedesco’s co-defendant, Christopher Broccoli, pleaded guilty to his role in the scheme on July 28, 2022, and is scheduled to be sentenced on July 26, 2023. Two doctors involved in the scheme, John Gaffney and Brian Sokalsky, also pleaded guilty for their roles in the conspiracy and are scheduled to be sentenced on Oct. 16, 2023, and Aug. 22, 2023, respectively.
According to documents filed in this case and statements made in court:
From January 2015 through April 2016, Nicholas Tedesco and others, working under conspiracy leader Matthew Tedesco, recruited individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, Central Rexall Drugs Inc. in Louisiana. The conspirators knew that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply. The conspirators also knew that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular medications.
Nicholas Tedesco recruited and paid several individuals to receive the medically unnecessary medications and to recruit others to receive them, including co-defendant Christopher Broccoli. The medically unnecessary prescriptions for individuals recruited by Nicholas Tedesco were authorized by Gaffney and Sokalsky.
In addition to the prison term, Judge Kugler sentenced Nicholas Tedesco to three years of supervised release. As part of the plea agreement, Nicholas Tedesco must forfeit $782,767 in criminal proceeds and pay restitution of $2.04 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 Tammy Tomlins in Newark; and 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, with the investigation leading to the sentencing.
The government is represented by Senior Trial Counsel Christina O. Hud of the Health Care Fraud Unit and Deputy Criminal Chief R. David Walk Jr. of the Criminal Division.
Union County Man Convicted of Tax Evasion and Failing to File Tax ReturnsRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was convicted of tax evasion and failing to file personal income tax returns, U.S. Attorney Philip R. Sellinger and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced today.
Jonathan D. Michael of Springfield, New Jersey was convicted of one count of tax evasion, from 2014 through 2018, and five counts of failing to file tax returns during the same period. According to documents filed in this case and statements made in court:
Michael worked as a mechanic by a port-operating company in New Jersey. From 2014 through 2018, Michael earned over $1.4 million from the port-operating company. In February 2014, he submitted a Form W-4, “Employee’s Withholding Allowance Certificate” to his employer in which he falsely claimed to be completely exempt from federal income tax withholding, which caused the employer to stop withholding federal income taxes from his wages. In November 2016, after the IRS sent Michael a notification that he was not entitled to claim exempt status, Michael wrote the company and claimed that his false W-4 was correct. Despite earning income each year over the threshold that would require him to file individual income tax returns, Michael failed to file such tax returns with the IRS for the years 2014 through 2018.
The maximum penalty for tax evasion is five years of in prison; the maximum penalty for failure to file as charged in Counts Two through Six is one year per count.
U.S. Attorney Sellinger and Acting Deputy Assistant Attorney General Goldberg credited special agents of IRS-Criminal Investigation Division, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to the guilty verdict.
The government is represented by Assistant U.S. Attorney Matthew Feldman Nikic of the Cybercrime Unit in Newark and by Trial Attorney Michael C. Vasiliadis of the Tax Division in Washington, D.C.
Ocean County Man Sentenced to 15 Years in Prison for Receiving Child Pornography and Online Enticement of MinorRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 180 months in prison and five years of supervised release for receiving images of child sexual abuse and inducing a minor to send him sexually explicit images and engage in sexually explicit conduct over an online messaging service. David M. Frew, 42, of Little Egg Harbor, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp on July 18, 2022, to an information charging him with one count of receipt of child pornography and one count of online enticement of a minor to engage in criminal sexual conduct.
Youth Wrestling Coach and Referee from Ocean County Admits Distribution of Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted distributing child pornography, U.S. Attorney Philip R. Sellinger announced.
Alec Donovan, 26, of Brick, New Jersey, a youth wrestling coach and referee, pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court to an information charging him with one count of distribution of child pornography.
According to documents filed in this case and statements made in court:
From January 2021 through March 2021, Donovan used an internet-based application to exchange multiple images and videos of child sexual abuse, including depictions involving pre-pubescent children. Donovan also used the web-based messaging application to solicit and engage in conversations with minors, including requesting nude photographs from the minors and sending nude photographs to them.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Oct. 10, 2023.
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.
The government is represented by Assistant U.S. Attorney Jessica R. Ecker of the General Crimes Unit in Newark.
donovan.information.pdfNew Jersey Man Found Guilty of Tax EvasionRead the Press Release
A federal jury convicted a New Jersey man today of tax evasion and failing to file personal income tax returns.
According to court documents and evidence presented at trial, Jonathan D. Michael of Springfield, New Jersey, worked as a mechanic in the crane shop at the Port Newark Container Terminal. For the years 2014 through 2018, Michael provided his employer with an Employee’s Withholding Certificate (Form W-4) that falsely claimed he was exempt from any federal income tax withholding. During the same five-year period, Michael did not file personal income tax returns even though he earned approximately $1.5 million in wages, resulting in a tax loss to the IRS of over $375,000.
Michael is scheduled to be sentenced on Oct. 23, 2023, and faces a statutory maximum penalty of five years in prison for tax evasion and one year in prison for each count of willful failure to file a tax 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 is investigating the case.
Trial Attorney Michael C. Vasiliadis of the Justice Department’s Tax Division and Assistant U.S. Attorney Matthew Feldman Nikic of the District of New Jersey are prosecuting the case.
CEO of Dozens of Companies and Entities in Florida and New Jersey Admits Role in Massive Scheme to Traffic in Fraudulent and Counterfeit Cisco Networking EquipmentRead the Press Release
TRENTON, N.J. – A Florida resident and dual citizen of the United States and Turkey pleaded guilty to running an extensive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment, Attorney for the United States Vikas Khanna, District of New Jersey, and Assistant Attorney General Kenneth A. Polite Jr. announced today.
Onur Aksoy, aka “Ron Aksoy” and “Dave Durden,” 39, of Miami, Florida, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court on June 5, 2023, to two counts of an indictment charging him with conspiring with others to traffic in counterfeit goods, to commit mail fraud, and to commit wire fraud (Count 1); and mail fraud (Count 4).
According to documents filed in this case and statements made in court:
Aksoy ran at least 19 companies formed in New Jersey and Florida as well as at least 15 Amazon storefronts, at least 10 eBay storefronts, and multiple other entities (collectively, the “Pro Network Entities”) that imported from suppliers in China and Hong Kong tens of thousands of low-quality, modified computer networking devices with counterfeit Cisco labels, stickers, boxes, documentation, and packaging, all bearing counterfeit trademarks registered and owned by Cisco, that made the goods falsely appear to be new, genuine, and high-quality devices manufactured and authorized by Cisco. The devices had an estimated total retail value of hundreds of millions of dollars. Moreover, the Pro Network Entities generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.
The devices the Pro Network Entities imported from China and Hong Kong were typically older, lower-model products – some of which had been sold or discarded – which Chinese counterfeiters then modified to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. The Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components – including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. Finally, to make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters allegedly added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials.
Fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. Often, they would simply fail or otherwise malfunction, causing significant damage to their users’ networks and operations – in some cases, costing users tens of thousands of dollars. Customers of Aksoy’s fraudulent and counterfeit devices included hospitals, schools, government agencies, and the military.
Between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco devices being shipped to the Pro Network Entities from China and Hong Kong. In response to some of these seizures, Aksoy falsely submitted official paperwork to CBP under the alias “Dave Durden,” an identity that he used to communicate with Chinese co-conspirators. To try to avoid CBP scrutiny, Chinese co-conspirators broke the shipments up into smaller parcels and shipped them on different days, and Aksoy used a fake delivery address in Ohio. After CBP seized a shipment of counterfeit Cisco products to Aksoy and the Pro Network Entities and sent a seizure notice, Aksoy often continued to order counterfeit Cisco products from the same supplier.
Between 2014 and 2019, Cisco sent seven letters to Aksoy asking him to cease and desist his trafficking of counterfeit goods. Aksoy responded to at least two of these letters by causing his attorney to provide Cisco with forged documents. In July 2021, agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices with a retail value of over $7 million.
The charge of conspiracy to which Aksoy pleaded guilty carries a maximum penalty of five years in prison. The charge of mail fraud to which Aksoy pleaded guilty carries a maximum penalty of 20 years in prison. Both offenses carry a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. Pursuant to the plea agreement that the court conditionally accepted pending sentencing, Askoy faces a sentence of four to six years and six months in prison and must forfeit $15 million in illicit gains from his scheme and make full restitution to his victims. Sentencing is scheduled for Nov. 6, 2023.
Attorney for the United States Khanna and Assistant Attorney General Polite credited special agents and members of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) Los Angeles, under the direction of Acting Special Agent in Charge Eddy Wang; the U.S. Department of Defense, Defense Criminal Investigative Service, Western Field Office, under the direction of Special Agent in Charge Bryan Denny; the General Services Administration, Office of Inspector General, Southeast and Caribbean Division, under the direction of Special Agent in Charge Floyd Martinez; the U.S. Navy, Naval Criminal Investigative Service, Economic Crimes Field Office, under the direction of Special Agent in Charge Greg Gross; HSI Miami, under the direction of Special Agent in Charge Anthony Salisbury; and HSI Newark, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to today’s guilty plea.
The CBP Electronics Center of Excellence; the CBP Los Angeles National Targeting and Analysis Center; and the CBP Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office, provided valuable assistance.
Anyone who believes they may be a victim of Aksoy or the Pro Network Entities, please visit http://www.justice.gov/largecases or https://www.justice.gov/usao-nj/united-states-v-onur-aksoy-pro-network for more information.
The Pro Network Entities include at least the following:
Pro Network Companies
Approximate Month and Year of Formation
State of Formation
Pro Network LLC
August 2013
New Jersey
Netech Solutions LLC
November 2016
Florida
Target Network Solutions LLC
January 2017
Florida
Easy Network LLC
April 2017
New Jersey
ACE NETUS LLC (a/k/a Ace Network)
April 2017
New Jersey
My Network Dealer LLC
April 2017
New Jersey
1701 Doral LLC
May 2017
New Jersey
Maytech Trading LLC
August 2017
Florida
NFD Trading LLC
September 2017
Florida
Kenet Solutions LLC
September 2017
Florida
Team Tech Global LLC
January 2018
New Jersey
Tenek Trading LLC
January 2018
Florida
The Network Gears LLC
February 2018
Florida
All Networking Solutions LLC (a/k/a All Network)
April 2018
Florida
San Network LLC
October 2018
Florida
Pro Network US Inc.
January 2019
Florida
Jms Tek LLC
August 2019
Florida
Renewed Equipment LLC
August 2021
Florida
Pro Ship US LLC
August 2021
Florida
Pro Network Amazon Storefronts
Approximate Date of Earliest
Known Activity
Albus Trade Hub
January 2014
EasyNetworkUS
March 2014
Get Better Trade
July 2015
Mercadeal
February 2017
Netech Solutions
February 2018
Netkco LLC
September 2014
NFD Trading LLC
January 2018
Palm Network Solutions
June 2017
Renewed Equip
August 2017
Servtaur
August 2019
Smart Network
July 2017
SOS Tech Trade
August 2017
Target-Solutions
September 2020
TeamTech Global
March 2016
TradeOrigin US
August 2015
Pro Network eBay Storefronts
Approximate Date of Earliest
Known Activity
connectwus
March 2014
futuretechneeds
July 2017
getbettertrade
July 2017
getontrade
April 2016
maytechtradingllc
October 2017
netechsolutions
April 2017
netkco
September 2014
nfdtrading
February 2018
smartnetworkusa
January 2014
tenektradingllc
May 2018
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark, Senior Counsel Matthew A. Lamberti of the Department of Justice Computer Crime and Intellectual Property Section in Washington, D.C., and Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.
aksoy.indictment.pdfCEO of Dozens of Companies Pleads Guilty to Massive Scheme to Traffic in Fraudulent and Counterfeit Cisco Networking EquipmentRead the Press Release
A Florida resident and dual citizen of the United States and Turkey pleaded guilty yesterday in the District of New Jersey to running an extensive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment.
According to documents filed in this case and statements made in court, Onur Aksoy, 39, of Miami, ran at least 19 companies formed in New Jersey and Florida, as well as approximately 15 Amazon storefronts and at least 10 eBay storefronts (collectively, the “Pro Network Entities”), that imported from suppliers in China and Hong Kong tens of thousands of low-quality, modified computer networking devices with counterfeit Cisco labels, stickers, boxes, documentation, and packaging, all bearing counterfeit trademarks registered and owned by Cisco, that made the goods falsely appear to be new, genuine, and high-quality devices manufactured and authorized by Cisco. The devices had an estimated total retail value of hundreds of millions of dollars. Moreover, the Pro Network Entities generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.
The devices the Pro Network Entities imported from China and Hong Kong were typically older, lower-model products – some of which had been sold or discarded – which Chinese counterfeiters then modified to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. The Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components – including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. Finally, to make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials.
Fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. Often, they would simply fail or otherwise malfunction, causing significant damage to their users’ networks and operations – in some cases, costing users tens of thousands of dollars. Customers of Aksoy’s fraudulent and counterfeit devices included hospitals, schools, government agencies, and the military.
Between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco devices being shipped to the Pro Network Entities from China and Hong Kong. In response to some of these seizures, Aksoy falsely submitted official paperwork to CBP under the alias “Dave Durden,” an identity that he used to communicate with Chinese co-conspirators. To try to avoid CBP scrutiny, Chinese co-conspirators broke the shipments up into smaller parcels and shipped them on different days, and Aksoy used fake delivery addresses in Ohio. After CBP seized a shipment of counterfeit Cisco products to Aksoy and the Pro Network Entities and sent a seizure notice, Aksoy often continued to order counterfeit Cisco products from the same supplier.
Between 2014 and 2019, Cisco sent seven letters to Aksoy asking him to cease and desist his trafficking of counterfeit goods. Aksoy responded to at least two of these letters by causing his attorney to provide Cisco with forged documents. In July 2021, agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices with a retail value of over $7 million.
Aksoy pleaded guilty to (1) conspiring with others to traffic in counterfeit goods, to commit mail fraud, and to commit wire fraud and (2) mail fraud. He is scheduled to be sentenced on Nov. 6, and under the plea agreement that the court conditionally accepted yesterday pending sentencing, faces a sentence of four to six and a half years in prison. Also pursuant to the plea agreement, Aksoy must forfeit $15 million in illicit gains from his scheme and make full restitution to his victims. The court will determine the final sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Attorney for the United States Vikas Khanna for the District of New Jersey; Acting Special Agent in Charge Eddy Wang of the Homeland Security Investigations (HSI) Los Angeles Field Office; Special Agent in Charge Bryan Denny of the U.S. Department of Defense, Defense Criminal Investigative Service (DCIS) Western Field Office; Special Agent in Charge Floyd Martinez of the General Services Administration Office of Inspector General (GSA-OIG), Southeast and Caribbean Division; Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS), Economic Crimes Field Office; Special Agent in Charge Anthony Salisbury of the HSI Miami Field Office; and Special Agent in Charge Ricky J. Patel of the HSI Newark Field Office made the announcement today.
HSI, DCIS, GSA-OIG, NCIS, and CBP are investigating the case.
Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Andrew M. Trombly and Senior Trial Counsel Barbara Ward for the District of New Jersey are prosecuting the case.
The CBP Electronics Center of Excellence; the CBP Los Angeles National Targeting and Analysis Center; and the CBP Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office provided valuable assistance.
If you believe you are a victim of Aksoy or the Pro Network Entities, please visit www.justice.gov/largecases or www.justice.gov/usao-nj/united-states-v-onur-aksoy-pro-network for more information.
The Pro Network Entities include at least the following:
Pro Network Companies
Approximate Month and Year of Formation
State of Formation
Pro Network LLC
August 2013
New Jersey
Netech Solutions LLC
November 2016
Florida
Target Network Solutions LLC
January 2017
Florida
Easy Network LLC
April 2017
New Jersey
ACE NETUS LLC (aka Ace Network)
April 2017
New Jersey
My Network Dealer LLC
April 2017
New Jersey
1701 Doral LLC
May 2017
New Jersey
Maytech Trading LLC
August 2017
Florida
NFD Trading LLC
September 2017
Florida
Kenet Solutions LLC
September 2017
Florida
Team Tech Global LLC
January 2018
New Jersey
Tenek Trading LLC
January 2018
Florida
The Network Gears LLC
February 2018
Florida
All Networking Solutions LLC (aka All Network)
April 2018
Florida
San Network LLC
October 2018
Florida
Pro Network US Inc.
January 2019
Florida
Jms Tek LLC
August 2019
Florida
Renewed Equipment LLC
August 2021
Florida
Pro Ship US LLC
August 2021
Florida
Pro Network Amazon Storefronts
Approximate Date of Earliest
Known Activity
Albus Trade Hub
January 2014
EasyNetworkUS
March 2014
Get Better Trade
July 2015
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Brooklyn Man Charged with Fraudulently Entering Competitor Laboratory and Destroying and Stealing EquipmentRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man was arraigned on charges he allegedly entered a laboratory business on false pretenses and destroyed and stole that business’ equipment, U.S. Attorney Philip R. Sellinger announced today.
Eric Leykin, 32, of Brooklyn, New York, was indicted on May 24, 2023, for committing wire fraud. He was arraigned June 1, 2023, before U.S. District Judge Esther Salas in Newark federal court.
According to documents filed in this case:
Leykin was the chief executive officer of a clinical reference laboratory based in New Jersey. Leykin’s laboratory competed against the victim business, another clinical reference laboratory also based in New Jersey. On June 30, 2022, Leykin bought and activated a prepaid mobile phone and called an employee of the business, claiming to be a technician with a vendor that the business used to service its laboratory equipment. On that false pretense, Leykin arranged with the victim business’ employee to come to the business on the following day, supposedly to service the business’ laboratory equipment. On July 1, 2022, Leykin went to the business, entered the premises fraudulently posing as a vendor technician, and proceeded to destroy a significant amount of the business’ laboratory and computer equipment. Leykin also stole multiple computer hard drives.
The wire fraud count carries a maximum potential penalty of 20 years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Millburn Police Department, under the direction of Chief Brian Gilfedder; and the FBI in New York, under the direction of Assistant Director Michael Driscoll, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
leykin.indictment.pdfAtlantic County Resident Admits Laundering Proceeds of COVID-19 Small Business Relief Program FraudRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man admitted laundering the proceeds of fraudulently obtained Paycheck Protection Program loans, U.S. Attorney Philip R. Sellinger announced today.
Jeremy Earley, 41, of Egg Harbor Township, New Jersey, and Lilburn, Georgia, pleaded guilty on June 1, 2023, before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with one count of engaging in a monetary transaction in criminally derived property.
According to documents filed in this case and statements made in court:
In 2020 and 2021, two companies owned by Earley received loans totaling more than $1.3 million from the Paycheck Protection Program (PPP), a federal program that provided forgivable loans to small businesses for job retention and certain other expenses. The loans were approved based on fraudulent applications submitted by conspirator Rhonda Thomas stating that the companies had dozens of employees and monthly payrolls of $145,000 and $382,400, respectively. The applications also contained forged tax forms. In fact, Earley’s businesses had no employees other than himself and paid minimal to no wages. After receiving the PPP loan proceeds, Earley wrote checks totaling nearly $400,000 to Thomas to compensate her for her role in submitting the fraudulent loan applications.
The charge of money laundering carries a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 13, 2023.
Rhonda Thomas previously pleaded guilty to bank fraud conspiracy and money laundering and was sentenced to five years in prison.
U.S. Attorney Sellinger credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office; special agents of the Social Security Administration, Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; and special agents of the U.S. Department of Labor, Office of the Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman and Attorney-In-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden.
earley.information.pdfNew York Man Admits Transporting Minors to Engage in Illicit Sexual ConductRead the Press Release
TRENTON, N.J. – A New York man admitted transporting minors across state lines to engage in illicit sexual conduct, U.S. Attorney Philip R. Sellinger announced today.
Berry Norman, 35, of Bronx, New York, pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court on May 30, 2023, to an information charging him with interstate travel to engage in illicit sexual conduct.
“Sexual crimes involving children are among the most serious crimes we prosecute,” U.S. Attorney Sellinger said. “The conduct admitted by this defendant is reprehensible, and he will now face the appropriate punishment for his crime.”
“Berry Norman’s actions were despicable by luring innocent minors down a dark path of horrific abuse and emotional trauma,” Special Agent in Charge of the Department of Homeland Security, Homeland Security Investigations (HSI), Newark, Ricky J. Patel said. “The deceptive ways Norman and other human traffickers conspire to appear trustworthy to their victims has far-reaching consequences. Rescuing these victims is of utmost importance to HSI Newark and we remain committed to protecting and assisting victims while bringing traffickers to justice.”
According to documents filed in this case and statements made in court:
On Feb. 24, 2021, Norman invited two female victims, both minors, to travel with him from Ohio to New Jersey. Norman traveled from Ohio to New Jersey and from New Jersey to New York with victims with the intent to engage in a sexual act with them or for the purpose of producing child pornography. On Feb. 27, 2021, Norman engaged in sexual acts with one victim. On Feb. 28, 2021, Norman and the victims traveled to New York City.
The charge of interstate travel to engage in illicit sexual conduct carries a maximum penalty of 30 years in prison and a fine of $250,000. Sentencing is scheduled for Oct. 3, 2023.
U.S. Attorney Sellinger credited special agents of HSI, under the direction of Special Agent in Charge Ricky J. Patel in Newark; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and the New York Police Department, under direction of Police Commissioner Keechant L. Sewell, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Sophie Kaiser of the General Crimes Unit in Newark.
norman.information.pdfNew Jersey Man Sentenced to 10 Years in Prison for Drug TraffickingRead the Press Release
CAMDEN, N.J. – A New Jersey man was sentenced to 120 months in prison for conspiring with others to obtain and distribute several kilograms of cocaine, U.S. Attorney Philip R. Sellinger announced today.
Carl Lee Holloway, 43, of Penns Grove, New Jersey, previously pleaded guilty before Chief U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiring to distribute cocaine. Judge Bumb imposed the sentence in Camden federal court.
According to documents filed in this case and statements made in court:
Holloway admitted that from June 2020 through July 13, 2021, he conspired with Lavinston Lamar, Marvin Murphy, and others, to distribute and to possess with intent to distribute cocaine. On July 13, 2021, Holloway drove to a hotel in Mount Laurel, New Jersey, with a bag containing $97,600 in cash. Holloway then met undercover agents in a hotel room at the hotel. Lamar and Murphy separately entered the hotel room with bags containing approximately $243,000. They briefly inspected one of the kilograms of cocaine previously brought into the room by undercover agents, after which agents entered the room and arrested Holloway, Lamar, and Murphy.
Chief Judge Bumb previously sentenced Lamar to 114 months in prison after Lamar pleaded guilty to his involvement in the same conspiracy and to violating the conditions of his supervised release from a prior conviction for conspiring to distribute cocaine.
Murphy is charged by indictment with the same conspiracy. The charges and allegations contained in the indictment are merely accusations, and he is presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Holloway to five years of supervised release and ordered him to pay a $50,000 fine.
U.S. Attorney Sellinger credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark and Special Agent in Charge Chad Plantz in San Diego; and the Mount Laurel Police, under the direction of Chief Judy Lynn Schiavone, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
New Jersey Doctor Admits Buying and Selling Oncology Medication for ProfitRead the Press Release
NEWARK, N.J. – A New Jersey doctor today admitted using her medical license – and allowing others to use it – to purchase prescription oncology medications under false pretenses to sell them for profit, U.S. Attorney Philip R. Sellinger announced.
Anise Kachadourian, 55, of Towaco, New Jersey, a board-certified oncologist, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging her with unlawfully selling prescription cancer medication, which had been previously purchased using her medical license and under the representation that such medication was to be used to treat her patients.
According to documents filed in this case and statements made in court:
While working in her medical practice’s offices in various locations in New Jersey, Kachadourian was recruited by an individual who owned a pharmacy and also owned and operated two businesses that were wholesale distributors of prescription drugs. At the request of this individual and others working with him, in return for payment of approximately $5,000 per month, Kachadourian used her medical license – and allowed others to use it – to purchase expensive prescription drugs, primarily, cold-chain biologic infusion medications that typically are used to treat cancers, macular degeneration, and autoimmune diseases. By recruiting and using Kachadourian and her medical license to purchase the drugs, these individuals were able to obtain prescription drugs from the pharmaceutical manufacturers’ authorized distributors that they would not otherwise have been permitted to purchase. They were then able to sell them at a profit through their two businesses.
In purchasing the drugs, Kachadourian and the individuals made numerous false and misleading representations to the pharmaceutical manufacturers and authorized distributors, including that Kachadourian purchased the drugs to use to treat her patients, and that the drugs would not be resold or redistributed. In actuality, none of the drugs were administered to any of Kachadourian’s patients, but were ultimately sold to customers of the two businesses. Kachadourian was paid more than $170,000 for purchasing and allowing others to purchase in her name millions of dollars in prescription drugs during the scheme, which ran from October 2016 through January 2019.
Kachadourian is the third doctor who has pleaded guilty in connection with this fraudulent scheme.
The sale of prescription drugs purchased by a healthcare entity is punishable by a maximum of three years in prison and a $10,000 fine. In her plea agreement, Kachadourian also agreed to make restitution for the full amount of any loss resulting from her offense. Sentencing is scheduled for Feb. 6, 2024.
U.S. Attorney Sellinger credited special agents of the U.S. Food and Drug Administration’s Office of Criminal Investigations New York Field Office, under the direction of Special Agent in Charge Fernando P. McMillan; and special agents of U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Sara A. Aliabadi of the U.S Attorney’s Office in Camden.
kachadourian.information.pdfFive Jersey City Gang Members and Associates Sentenced to Prison for Gang-Related StabbingRead the Press Release
NEWARK, N.J. – Five members and associates of a neighborhood street gang in Hudson County, New Jersey, have been sentenced to prison for their respective roles in a gang-related stabbing, U.S. Attorney Philip R. Sellinger announced today.
Yahsier Brown, 21, was sentenced today to 51 months in prison. Jaylen Boone, 22, was sentenced on May 2, 2023, to 56 months in prison. Jamil Bowens, 22, was sentenced on April 5, 2023, to 53 months in prison. Divine Abraham, 22, was sentenced on March 3, 2023, to 51 months in prison. Jermaine Jennings, 22, was sentenced on Jan. 4, 2023, to 57 months in prison. All of the defendants were also sentenced to three years of supervised release. All of the defendants are Jersey City residents, and all were sentenced by U.S. District Judge Kevin McNulty in Newark federal court
According to documents filed in this case and statements made in court:
On Aug. 3, 2020, Brown, Jennings, Abraham, Bowens, Boone, and three 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, Brown, Jennings, Abraham, Bowens, Boone, 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 and suffered life-threatening injuries.
U.S. Attorney Sellinger credited the 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 sentencings.
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.
Previously Charged Virginia Man Admits Additional $3.4 Million Insider Trading SchemeRead the Press Release
TRENTON, N.J. – A Virginia man who previously pleaded guilty to insider trading admitted engaging in another insider trading scheme that netted millions of dollars in illegal profits, U.S. Attorney Philip R. Sellinger announced today.
Sean Wygovsky, 42, of Centreville, Virginia, pleaded guilty before U.S. District Judge Georgette Castner on May 25, 2023, to an information charging him one count of securities fraud/insider trading. Wygovsky previously pleaded guilty to an insider trading scheme in the Southern District of New York.
“This defendant admitted using nonpublic information from his job at an asset management firm to further a multimillion-dollar insider trading scheme,” U.S. Attorney Sellinger said. “Combatting securities fraud and market manipulation schemes is a top priority for this Office. This prosecution demonstrates our commitment to holding accountable those who seek to undermine our markets through insider trading.”
“Federal insider trading laws protect the integrity of the markets and preserve the public's confidence in them,” FBI Newark Special Agent in Charge James E. Dennehy said. “No one wants to play a game when the rules are unfair. Wygovsky upset this balance of fairness when he misused his position of authority to serve his own greed. The FBI is committed to weeding out the bad actors like Wygovsky to ensure the financial markets maintain equal opportunity for all.”
According to documents filed in this case and statements made in court:
From May 2020 through February 2021, Wygovsky worked as a portfolio manager, securities analyst, and trader at a Canada-based asset management firm that received material, nonpublic information regarding confidential merger negotiations involving special purpose acquisition companies (SPACs). Wygovsky received this information every time a SPAC was placed on his firm’s confidential restricted list, meaning that the firm’s employees were prohibited from buying or selling the SPACs’ securities, either personally or via another person or third party. Despite knowing about these trading restrictions, Wygovsky shared the nonpublic information with his friend, Christopher Matthaei, who was a partner at a New Jersey broker-dealer firm. Matthaei purchased securities in the SPACs using his personal brokerage accounts. In June 2020, Matthaei paid for a private plane and extended trip with Wygovsky and their families to a luxury resort on the island of St. Barth, where they continued to engage in the insider trading scheme. Matthaei made approximately $3.4 million in illegal trading profits from the insider trading scheme.
Matthaei was previously arrested on March 30, 2023, and charged by complaint with one count of securities fraud and one count of conspiracy to commit securities fraud. The charges and allegations against Matthaei contained in the complaint, which are still pending, are merely accusations, and Matthaei is presumed innocent unless and until proven guilty.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Sept. 27, 2023.
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 guilty plea.
The government is represented by Assistant U.S. Attorneys Jennifer Kozar and Marko Pesce of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
wygovsky.information.pdfEssex County Man Sentenced to 10 Years in Prison for Drug Trafficking and Possessing Two Loaded Firearms in Furtherance of Drug TraffickingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced to 120 months in prison for drug trafficking and firearms possession in furtherance of drug trafficking, U.S. Attorney Philip R. Sellinger announced today.
Tyree Thomas, aka “Hellboy,” 29, of Irvington, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to nine counts of an indictment charging him with drug distribution, possessing drugs with the intent to distribute, and possessing two firearms in furtherance of drug trafficking. Judge Wigenton imposed the sentence on May 24, 2023, in Newark federal court.
According to documents in this case and statements made in court:
From May 1, 2019, to Aug. 21, 2019, Thomas sold Phencyclidine (PCP) to an undercover law enforcement agent on multiple occasions. He also maintained an apartment in Orange, New Jersey, as a location where he stored the PCP that he was distributing. Thomas kept two loaded firearms as this location to protect the drugs and drug proceeds he had at the apartment.
In addition to the prison term, Judge Wigenton sentenced Thomas to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller; members of the New Jersey State Police, under the direction of Superintendent Col. Patrick Callahan; and the New Jersey Department of Corrections, under the direction of Commissioner Victoria L. Kuhn, with the investigation leading to the sentence.
The government is represented by Assistant U.S. Attorneys Olta Bejleri and Megan Linares of the Organized Crime/Gangs Unit in Newark.
Businessman Charged with Conspiring to Own Unlicensed Money Transmitting BusinessRead the Press Release
NEWARK, N.J. – A businessman and former resident of Utah has been charged with illegally operating an unlicensed money transmitting business, U.S. Attorney Philip R. Sellinger announced today.
Christopher James Scanlon, 43, originally from Utah and now residing in the United Kingdom, is charged by complaint with one count of conspiring to control and own an unlicensed money transmitting business. Scanlon was arrested at Miami International Airport today and is expected to have his initial appearance in U.S. District Court for the Southern District of Florida on Friday.
According to documents filed in this case and statements made in court:
Scanlon was the president, chief executive officer, and founder of the brands Aurae Lifestyle and Club Swann. From as early as 2015 through 2019, Scanlon controlled a series of legal entities – PMA Media Group Inc.; AU Card LLC; AU Card Ltd., and Nvayo Ltd., (collectively, the “AU Entities”) – that he operated as a money transmitting business to provide fiat and cryptocurrency financial services to customers of Aurae Lifestyle. Scanlon served as a customer service representative for several high-net-worth Aurae Lifestyle customers. He often communicated with customers about financial transactions using encrypted messaging applications and directed the AU Entities to conduct financial transactions for customers through U.S.-based banks and cryptocurrency companies. Scanlon operated Aurae Lifestyle during this time without appropriately registering as a money transmitting business with the Financial Crimes Enforcement Network (FinCen), a bureau of the U.S. Treasury Department.
The conspiracy count carries a maximum term of imprisonment of five years, a fine of up to $250,000 or twice the pecuniary gain to the defendant or loss to the victims, whichever is greatest.
U.S. Attorney Sellinger credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, and special agents of the U.S. Attorney’s office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jamie Hoxie Solano and Sophie E. Reiter of the Cybercrime 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.
scanlon.complaint.pdfEssex County Man Admits Shooting of Former Federal InformantRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man admitted that he attempted to kill a former federal informant by shooting him, U.S. Attorney Philip R. Sellinger announced today.
Kalil Bryant, 40, of East Orange, New Jersey pleaded guilty on May 23, 2023, before U.S. District Judge John Michael Vazquez in Newark federal court to two counts of an indictment charging him with possession of ammunition by a convicted felon and retaliating against a witness, victim or an informant. Bryant was convicted on Feb. 17, 2023, on the other two counts of the indictment – transmitting threats in interstate commerce and retaliating against a witness, victim, or informant following – following an eight-day trial.
According to documents filed in this case, statements made in court, and the evidence at trial:
The victim in this case previously cooperated with the FBI and provided information about federal crimes committed by one of Bryant’s longtime associates. On Aug. 24, 2019, in retaliation for that cooperation, Bryant pointed a loaded firearm at the victim, called him a “rat,” then shot the victim in the abdomen. The victim received medical treatment and survived.
On Sept. 18, 2019, Bryant sent text messages to an individual associated with the victim stating: “Tell [the victim] he gonna Die soon for being a rat.” This message was accompanied by a photograph of a rat and a gun. Bryant sent additional text messages in reference to the victim stating: “Prepare to bury Him soon” and “Get your black dress ready.”
The possession of ammunition by a convicted felon count to which Bryant pleaded guilty carries a maximum potential penalty of 10 years in prison; the retaliating against a witness, victim or an informant count carries a maximum potential penalty of 30 years in prison; the transmitting threats in interstate commerce count carries a maximum potential penalty of five years in prison; the retaliating against a witness, victim or an informant count carries a maximum potential penalty of 20 years in prison. Each count also carries a maximum fine of $250,000. Sentencing is scheduled for Oct. 10, 2023.
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 verdict and today’s guilty plea. He also thanked the East Orange Police Department, under the direction of Police Chief Phyllis Bindi, Jersey City Police Department, under the direction of Director James Shea, Metuchen Police Department, under the direction of Police Chief Arthur Flaherty and the U.S. Marshals for their assistance.
The government is represented by Assistant U.S. Attorneys Jamel Semper and Shontae D. Gray.
bryant.indictment.pdfBayside State Prison Corrections Officer Sentenced to 30 Months in Prison for Violating Inmates’ Civil RightsRead the Press Release
CAMDEN, N.J. – A corrections officer at Bayside State Prison in Leesburg, New Jersey, was sentenced today to 30 months in prison for agreeing with others to physically assault inmates for actual, perceived and fabricated violations of the prison’s rules and customs in a manner that resulted in injury to the inmates.
John Makos, 42, of Millville, New Jersey, previously pleaded guilty before U.S. District Judge Karen M. Williams to conspiring with others to deprive inmates of their right not to be subjected to cruel and unusual punishment. Judge Williams imposed the sentence today in Camden federal court.
“Corrections officers are responsible for protecting the civil rights of the people in their custody,” U.S. Attorney Philip R. Sellinger of the District of New Jersey said. “Incarcerated persons may have broken the law, but equal treatment is one of our country’s founding principles, and civil rights do not cease to exist at a prison’s gates. This defendant allowed incarcerated persons under his care to be brutalized and abused his authority as a law enforcement officer. Today’s sentence is another reminder that civil rights violations by law enforcement officials will not be tolerated.”
“This jail official was complicit in a series of violent assaults on inmates, turning a blind eye as the assaults were carried out as punishment for alleged violations of prison rules,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentencing demonstrates that correctional officers who abuse their authority and violate the civil rights of inmates under their custody and control will be held accountable for their actions. The Justice Department is committed to protecting the civil rights of all people, including those held inside our jails and prisons.”
“Law enforcement officers may enforce the law, but no one is above the law,” FBI Special Agent in Charge James E. Dennehy said. “Makos failed to respect and protect the basic human dignity of the inmates in his care. Let today’s sentencing be a warning to others like Makos: the FBI protects the rights of all citizens, and your badge will not shield you from justice.”
According to documents filed in this case and statements made in court:
From at least April 2019 through December 2019, while working as a corrections officer, Makos and others at Bayside State Prison agreed to physically assault certain victim-inmates for actual and perceived violations of the prison’s rules and customs. The assaults caused physical injury and pain to the victim-inmates. These assaults took place while the victim-inmates were under Makos’ supervision and in areas of the prison’s kitchen that were out of sight of institutional surveillance cameras. For example, on Dec. 7, 2019, Makos watched and did not attempt to intervene when multiple inmates pinned a victim-inmate to the floor and, while the inmates restrained the victim-inmate, punched the victim-inmate approximately 25 times. Makos did not report this assault to his supervisors or medical personnel, despite knowing he was required to do so.
In addition to the prison term, Judge Williams sentenced Makos to three years of supervised release and fined him $10,000.
U.S. Attorney Sellinger credited special agents of the FBI Atlantic City Resident Agency, under the direction of Special Agent in Charge Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the New Jersey Department of Corrections, under the direction of Commissioner Victoria Kuhn, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio and Sara Merin of the Special Prosecutions Division in Newark and Trial Attorney Shan Patel formerly of the U.S. Department of Justice’s Civil Rights Division.
Passaic County Man Charged with Transportation and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was arrested for transporting and possessing videos and images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Edward M. O’Hagan, 49, of Hawthorne, New Jersey, is charged by complaint with one count of transportation of child pornography and one count of possession of child pornography. He appeared this May 22, 2023, before U.S. Magistrate Judge José R. Almonte in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On Jan. 19, 2023, O’Hagan used one of his email accounts to send video files containing images of child sexual abuse to himself. He also used two email addresses to create accounts on an encrypted file storage platform that was used to upload or create files containing images of child sexual abuse. The email accounts he used to access the platform were associated with an IP address that traced to O’Hagan’s address.
The count of transportation 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. The count of possession of child pornography carries a maximum penalty of 10 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 arrest. He also thanked the Hawthorne Police Department, under the direction of Chief James Knepper, and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik.
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 complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
ohagan.complaint.pdfHudson County Man Sentenced to 21 Months in Prison for Conspiracy to Steal CryptocurrencyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 21 months in prison for conspiring to steal more than $500,000 worth of cryptocurrency from users’ accounts with a cryptocurrency exchange platform, U.S. Attorney Philip R. Sellinger announced.
Ebrahem Adeeb, 20, of Bayonne, New Jersey previously pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with conspiring to commit wire fraud.
According to documents filed in the case and statements made in court:
From October 2020 through May 2021 Adeeb and his conspirators “swapped” the subscriber identity module (SIM) associated with a victim’s phone number for another SIM loaded into a mobile device they controlled in order to access and control the victim’s accounts. Adeeb and his conspirators then sent a password reset request to a digital currency exchange platform, which caused the company to send a password reset link to the victim’s email account. Adeeb and his conspirators then accessed the victim’s email account and account at the currency exchange company and transferred cryptocurrency from the victim’s account to a cryptocurrency wallet they controlled. Adeeb and his conspirators stole cryptocurrency valued at more than $500,000 at the time of the thefts.
In additional to the prison term, Judge Cecchi sentenced Adeeb to three years of supervised release and ordered him to pay restitution of $504,418.
U.S. Attorney Sellinger credited the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Former Hudson County Sheriff’s Officer Admits Role in Conspiracy to Make False Statements in Connection with Fraudulent Short SaleRead the Press Release
NEWARK, N.J. – A former Hudson County Sheriff’s Officer admitted conspiring to make false statements to a bank in connection with an application to discharge a mortgage through a fraudulent short sale, U.S. Attorney Philip R. Sellinger announced today.
Osbado Hernandez, 54, of Avenel, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court on May 22, 2023, to an information charging him with one count of conspiracy to make false statements in connection with the release of a loan.
According to documents filed in this case and statements made in court:
From September 2015 to Dec. 30, 2015, in order to induce a bank to discharge the mortgage he owed on his house in Keansburg, New Jersey, Hernandez agreed with others to make false statements in connection with a fraudulent short sale of the property, including that he did not have any money to apply toward his mortgage delinquency and that he did not intend to stay in the house for more than 90 days following the short sale. As a result of the fraudulent short sale, the bank discharged over $98,000 of debt against Hernandez.
The false statements conspiracy charge is punishable by a maximum potential penalty of five years in prison and a maximum fine of up to $250,000. Sentencing is scheduled for Oct. 4, 2023.
U.S. Attorney Sellinger credited special agents with the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, and special agents with IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Elaine K. Lou, Chief of the U.S. Attorney’s Office’s Opioid Abuse Prevention and Enforcement Unit.
hernandez.information.pdfHudson County Man Admits Role in Gang AssaultRead the Press Release
NEWARK, N.J. – A member of a neighborhood street gang in Hudson County, New Jersey, today admitted to stabbing a rival gang member during a retaliatory gang-related assault, U.S. Attorney Philip R. Sellinger announced.
Sheldon Mays, aka “Thottie,” 23, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of assault with a dangerous weapon – a knife – in aid of racketeering.
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.
The count of assault with a dangerous weapon in aid of racketeering activity is punishable by a maximum of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Sept. 18, 2023.
U.S. Attorney Sellinger credited the 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 guilty plea.
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.
mays.information.pdfUnion County Man Admits Role in Scheme to Steal Mail, Commit Credit Card Fraud, and Defraud United StatesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a scheme to receive stolen credit cards and pandemic relief debit cards sent through the mail, commit bank fraud, and defraud the U.S. Postal Service and the U.S. Department of the Treasury, U.S. Attorney Philip R. Sellinger announced.
Jarid Brooks, 29, of Vauxhall, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi to three counts of an indictment charging him with: one count of conspiracy to commit mail theft and bank fraud, and to defraud the U.S. Postal Service and U.S. Department of the Treasury; one count of receiving stolen mail; and one count of bank fraud.
According to documents filed in this case and statements made in court:
From July 2019 to Oct. 6, 2020, Brooks and his conspirators obtained credit cards stolen from the mail from a U.S. Postal Service letter carrier, fraudulently activated those credit cards, and then used them to make and attempt to make purchases without the cardholders’ authorization, including buying gift cards and electronics. The investigation to date has revealed that the victims have incurred approximately $70,000 in losses from fraudulent purchases made using their stolen credit cards. Brooks also schemed to fraudulently use over $13,000 of funds pre-loaded onto Economic Impact Payment (EIP) cards issued by the U.S. Department of Treasury and sent in the mail pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), that were also stolen from the mail. The CARES Act authorized EIP payments structured as one-time refundable tax credits to certain eligible taxpayers of $1,200 for individuals, $2,400 for married couples filing jointly, and up to $500 for each qualifying child. The goal of this part of their fraud was for the co-conspirators to unlawfully obtain the government funds pre-loaded onto these cards.
The conspiracy and possession of mail theft charges are each punishable by a maximum potential penalty of five years in prison and a maximum fine of up to $250,000. The bank fraud charge is punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million. Sentencing is scheduled for Oct. 12, 2023.
Brooks originally was charged with Justin Brooks, 23, Kyle Williams, 38, and Kyjuan Hutchins, 23, also of Vauxhall, in October 2020. Williams has pleaded guilty for his role in the conspiracy and was sentenced. Justin Brooks and Hutchins have pleaded guilty for their roles in the conspiracy and are awaiting sentencing.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Charles A. Nielsen, Philadelphia Division; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. He also thanked the Union County Prosecutor’s Office, the Caldwell Police Department, the Fairfield Police Department, the Boonton Police Department, and the Millburn Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou, Chief of the Opioid Abuse Prevention and Enforcement Unit of the Criminal Division in Newark.
brooks.j.indictment.pdfU.S. Attorney Sellinger to Hold Third Town HallRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger and members of his staff will meet with residents in Camden next week at the third 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 Monday, May 22, 2023, doors opening at 6:00 p.m. with the program beginning promptly at 6:30 p.m. to 8:30 p.m. at Tabernacle of Faith Church of God in Christ, 115 N. 5th Street, Camden, New Jersey, 08102. U.S. Attorney Sellinger will discuss the work of his office in a variety of areas, encompassing federal civil rights enforcement, including 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.