District of New Jersey
Press releases recorded for this federal judicial district.
Postal Service Supervisor Charged with Misappropriation of Postal FundsRead the Press Release
CAMDEN, N.J. – A Cape May County, New Jersey, man was arrested for misappropriation of postal funds, U.S. Attorney Philip R. Sellinger announced today.
Austin T. Mahan, 42, of Cape May Court House, New Jersey, is charged by complaint with misappropriating approximately $65,000 in postal funds. Mahan appeared before U.S. Magistrate Judge Ann Marie Danio in Camden federal court on May 16, 2023, and was released on $50,000 unsecured bond.
According to documents filed in this case and statements made in court:
For approximately six months in 2022 and 2023, Mahan, who worked as a U.S. Postal Service (USPS) supervisor at the Sea Isle and Somers Point Post Offices at various times, misused USPS credit cards to make personal purchases at various retail stores in and around New Jersey. These purchases included tens of thousands of dollars’ worth of gift cards as well as various home décor items, home renovation materials, power and handheld tools, tool storage equipment, and personal items such as a Dyson cordless vacuum, LED fog light bulbs for Mahan’s personal vehicle, batteries, shampoo, shaving cream, food products and other items.
The charge of misappropriating postal funds is punishable by a maximum of 10 years in prison and a maximum potential fine of the greater of $250,000 or a sum equal to the amount of value of the money or property misappropriated from the offense.
U.S. Attorney Sellinger credited agents of the USPS, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to the complaint.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the Special Prosecutions Division in Camden.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
mahan.complaint.pdfJustice Department Reaches Settlement with Cumberland County Addressing Conditions at County JailRead the Press Release
NEWARK, N.J. – The Justice Department today filed a complaint and proposed consent decree with Cumberland County, New Jersey, and the Cumberland County Department of Corrections to resolve allegations that conditions at the Cumberland County Jail violate the Constitution.
The proposed consent decree, which must still be approved by the court, resolves the United States’ claims that the jail fails to provide adequate mental health care to incarcerated individuals at risk of self-harm and suicide, and fails to provide medication-assisted treatment, where clinically indicated, to incarcerated individuals experiencing unmedicated opiate withdrawal. The proposed consent decree requires the jail to provide adequate mental health care and medication-assisted treatment in those circumstances.
“The Justice Department is committed to protecting the civil rights of everyone in our country, and under our Constitution, jails and prisons must provide adequate medical care to incarcerated individuals,” Attorney General Merrick B. Garland said. “Today’s proposed consent decree is a significant step toward improving the care of individuals incarcerated in Cumberland County who are struggling with serious mental health disorders, and toward protecting the civil rights that are guaranteed by our Constitution.”
“The opioid epidemic is a public health emergency that plagues too many communities across the country,” U.S. Attorney Philip R. Sellinger said. “Medications are a critically important tool in combatting the opioid crisis, and they save lives. By providing medication-assisted treatment to incarcerated individuals experiencing opiate withdrawal, officials at jails and prisons can take significant steps to both combat the opioid epidemic and protect the constitutional rights of their populations.”
“This consent decree marks a significant milestone in the Justice Department’s efforts to combat discrimination against those with opioid use disorder and to protect the civil rights of people in our jails and prisons,” said Assistant Attorney General for Kristen Clarke of the Justice Department’s Civil Rights Division. “Under this agreement, Cumberland County must provide adequate medical and mental health care, including access to life-saving medications, treatment for opiate withdrawal, and protection for those with a heightened risk of self-harm and suicide. We commend Cumberland County for working collaboratively with us to implement the reforms in this decree to protect the safety and constitutional rights of incarcerated people at Cumberland County Jail.”
The Civil Rights Division and the U.S. Attorney’s Office for District of New Jersey initiated the investigation in June 2018 under the Civil Rights of Institutionalized Persons Act, which authorizes the department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. In January 2021, the Department of Justice provided the county written notice of the alleged unlawful conditions and remedial measures necessary to address them.
Additional information about the Civil Rights Division of the Justice Department is available on its website at https://www.justice.gov/crt/special-litigation-section. Individuals who believe their civil rights may have been violated may file a complaint with the U.S Attorney’s Office at www.civilrights.justice.gov.
The government is represented by Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Division; Assistant U.S. Attorney Junis Baldon of the U.S. Attorney’s Civil Rights Division; Laura Cowall, Deputy Chief of the Special Litigation Section in the Justice Department’s Civil Rights Division; Marlysha Myrthil, Senior Trial Attorney, Special Litigation Section; and Curtis Harris, Trial Attorney, Special Litigation Section.
cumberland.complaint.pdf cumberlandagreement.pdfFormer Chief Financial Officer of $21 Billion Biopharmaceutical Company Admits Insider TradingRead the Press Release
NEWARK, N.J. – The former chief financial officer for a biopharmaceutical company today admitted his role in an insider trading scheme, U.S. Attorney Philip R. Sellinger announced.
Usama Malik, 48, of Washington, D.C., pleaded guilty today before U.S. District Judge John Michael Vazquez in Newark federal court to Count One of an indictment charging him with securities fraud/insider trading.
According to documents filed in this case and statements made in court:
From 2018 through October 2020, Malik was the chief financial officer (CFO) of a New Jersey-based biopharmaceutical company listed on the NASDAQ Stock Exchange. On April 6, 2020, the company publicly announced for the first time that its breast cancer drug – an antibody-based drug designed to treat certain breast cancer patients who had very limited treatment options beyond chemotherapy – had proven effective in pre-market clinical trials. In October 2020, another biopharmaceutical company acquired the company for which Malik worked for approximately $21 billion.
Malik was among the first, and one of the few, employees who received material non-public information about the breast cancer drug before the public announcement. Within minutes of obtaining that information, Malik passed it along to Lauren S. Wood, 34, also of Washington, D.C. Wood lived with Malik at the time and was formerly employed by the same company as him. Before April 6, 2020, and within hours of receiving the insider information from Malik, Wood placed an order for approximately 7,000 shares of the company’s stock, despite the fact that during the same time period the company’s stock was downgraded by financial experts. After the company announced that its cancer drug had proven effective in pre-market clinical trials, its stock price increased. After selling her shares, Wood realized a significant profit.
The count to which Malik pleaded guilty is punishable by a statutory maximum penalty of 20 years in prison and a maximum fine of $5 million. Sentencing is scheduled for Sept. 18, 2023.
Wood pleaded guilty on June 22, 2022, to an information charging her with securities fraud/insider trading. She is scheduled to be sentenced on Dec. 18, 2023.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint on Dec. 1, 2021, based on the same conduct.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea. He also thanked the SEC Enforcement Division, under the leadership of Director Gurbir S. Grewal, and the FBI in the District of Columbia and the Eastern District of Virginia, for their assistance.
The government is represented by Assistant U.S. Attorneys Joshua L. Haber, Chief of the Economic Crimes Unit, and First Assistant U.S. Attorney Vikas Khanna.
malik.indictment.pdfRussian National Charged with Ransomware Attacks Against Critical InfrastructureRead the Press Release
NEWARK, N.J. – The Justice Department today unsealed two indictments charging a Russian national and resident with using three different ransomware variants to attack numerous victims throughout the United States, including law enforcement agencies in New Jersey and Washington, D.C., as well as victims in healthcare and other sectors nationwide.
“From Russia and hiding behind multiple aliases, Matveev is alleged to have used these ransomware strains to encrypt and hold hostage for ransom the data of numerous victims, including hospitals, schools, nonprofits, and law enforcement agencies, like the Metropolitan Police Department in Washington, D.C.,” Philip R. Sellinger, U.S. Attorney for the District of New Jersey, said. “Thanks to the extraordinary investigative work of prosecutors from my office and our FBI partners, Matveev no longer hides in the shadows – we have publicly identified his criminal acts and charged him with multiple federal crimes. Let today’s charges be a reminder to cybercriminals everywhere – my office is devoted to combatting cybercrime and will spare no resources in bringing to justice those who use ransomware attacks to target victims.”
“From his home base in Russia, Matveev allegedly used multiple ransomware variants to attack critical infrastructure around the world, including hospitals, government agencies, and victims in other sectors,” Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division said. “These international crimes demand a coordinated response. We will not relent in imposing consequences on the most egregious actors in the cybercrime ecosystem.”
“We want the indictment, sanctions and reward for Mikhail Matveev to sound an alarm in the ranks of cyber criminals all over the world,” James E. Dennehy, FBI-Newark special agent in charge, said. “The FBI and our law enforcement partners, as well as our international partners, are coming after you. These malicious actors believe they can operate with impunity – and don’t fear getting caught because they sit in a country where they feel safe and protected. That may be the case now, but the safe harbor may not exist forever. When we have an opportunity, we will do everything in our power to bring Matveev and his ilk to justice.”
According to the indictment obtained in the District of New Jersey:
From at least 2020, Mikhail Pavlovich Matveev, aka Wazawaka, aka m1x, aka Boriselcin, aka Uhodiransomwar, allegedly participated in conspiracies to deploy three ransomware variants. These variants are known as LockBit, Babuk, and Hive, and Matveev transmitted ransom demands in connection with each. The perpetrators behind each of these variants, including Matveev, have allegedly used these types of ransomware to attack thousands of victims in the United States and around the world. These victims include law enforcement and other government agencies, hospitals, and schools. Total ransom demands allegedly made by the members of these three global ransomware campaigns to their victims amount to as much as $400 million, while total victim ransom payments amount to as much as $200 million.
On June 25, 2020, Matveev and his LockBit conspirators allegedly deployed LockBit ransomware against a law enforcement agency in Passaic County, New Jersey. On May 27, 2022, Matveev and his Hive coconspirators allegedly deployed Hive against a nonprofit behavioral healthcare organization headquartered in Mercer County, New Jersey. On April 26, 2021, Matveev and his Babuk conspirators allegedly deployed Babuk against the Metropolitan Police Department in Washington, D.C.
“Data theft and extortion attempts by ransomware groups are corrosive, cynical attacks on key institutions and the good people behind them as they go about their business and serve the public,” U.S. Attorney Matthew M. Graves for the District of Columbia said. “Whether these criminals target law enforcement, other government agencies, or private companies like health care providers, we will use every tool at our disposal to prosecute and punish such offenses. Thanks to exceptional work by our partners here, we identified and charged this culprit.”
“The FBI is steadfast in our commitment to disrupting cybercriminals like Matveev,” Assistant Director Bryan Vorndran of the FBI's Cyber Division said. “The FBI will continue to impose costs on cyber adversaries through our joint collaboration with our private sector and international partners, and we will not tolerate these criminal acts against American citizens.”
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 over $75 million in ransom payments.
The Babuk ransomware variant first appeared around December 2020. Babuk actors executed over 65 attacks against victims in the United States and around the world, issuing over $49 million in ransom demands and receiving as much as $13 million in ransom payments.
Since June 2021, the Hive ransomware group has targeted more than 1,400 victims around the world and received as much as $120 million in ransom payments.
The LockBit, Babuk, and Hive ransomware variants operated in the same general manner: first, the ransomware actors would identify and unlawfully access vulnerable computer systems, sometimes through their own hacking, or by purchasing stolen access credentials from others. Second, the actors would deploy the ransomware variant within the victim computer system, allowing the actors to encrypt and steal data thereon. Next, the actors would send a ransom note to the victim demanding a payment in exchange for decrypting the victim’s data or refraining from sharing it publicly. Finally, the ransomware actors would negotiate a ransom amount with each victim willing to pay. If a victim did not pay, ransomware actors would often post that victim’s data on a public website, often called a data leak site.
Matveev is charged with conspiring to transmit ransom demands, conspiring to damage protected computers, and intentionally damaging protected computers. If convicted, he faces over 20 years in prison.
The FBI Newark Field Office’s Cyber Crimes Task Force is investigating the case with valuable assistance from the Jersey City Police Department, New Jersey State Police, Newark IRS Criminal Investigation, and international partners from European Cyber Crime Centre of Europol, National Police Agency of Japan, Gendarmerie Nationale Cyberspace Command of France, National Crime Agency and South West Regional Organized Crime Unit of the United Kingdom, Kantonspolizei Zürich of Switzerland, High-Tech Crime Unit of the Dutch Police Services Agency of the Netherlands, Bundeskriminalamt and Landeskriminalamt of Germany, Mossos d'Esquadra Police Department of Spain, Norwegian Police Service of Norway, and Swedish Police Authority of Sweden.
The government is represented by Assistant U.S. Attorneys Andrew M. Trombly and David E. Malagold for the District of New Jersey’s Cybercrime Unit in Newark; Assistant U.S. Attorney Elizabeth Aloi for the District of Columbia’s Fraud, Public Corruption, and Civil Rights Section; and Trial Attorneys Jessica C. Peck, Benjamin Proctor, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
The FBI Tampa Field Office and Orlando Resident Agency, along with Assistant U.S. Attorney Chauncey Bratt for the Middle District of Florida and CCIPS Trial Attorneys Christen Gallagher and Alison Zitron, made critical contributions to the case. The FBI Washington Field Office and Metropolitan Police Department also provided valuable assistance.
The Justice Department’s Office of International Affairs and National Security Division also provided significant assistance.
Victims of LockBit, Babuk, Conti, or Hive ransomware should contact their local FBI field office for further information. For additional information on ransomware, including the LockBit, Babuk, and Hive variants, please visit www.StopRansomware.gov .
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced that it is designating the defendant for his role in launching cyberattacks against U.S. law enforcement, businesses, and critical infrastructure.
The Department of State has also announced an award of up to $10 million for information that leads to the apprehension of this defendant. Information that may be eligible for this award can be submitted at tips.fbi.gov or RewardsForJustice.net. Congress established the Transnational Organized Crime Rewards Program in 2013 to support law enforcement efforts to dismantle transnational criminal organizations and bring their leaders and members to justice. The Department of State’s Bureau of International Narcotics and Law Enforcement Affairs manages the program in coordination with other U.S. federal agencies.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
matveev.indictment.pdf22-142
Philadelphia Man Sentenced to 77 Months in Prison for Role in Salem County Bank RobberyRead the Press Release
CAMDEN, N.J. – A Philadelphia man was sentenced today to 77 months in prison and three years of supervised release for serving as the get-away driver to two Pennsylvania men who robbed a bank in Carneys Point, New Jersey, in July 2018, while brandishing a firearm. Kenneth S. Thompson, 44, of Philadelphia, pleaded guilty on Sept. 27, 2022, before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an indictment charging him with bank robbery.
Former Commodities Trader Charged with Multimillion-Dollar Investment SchemeRead the Press Release
NEWARK, N.J. – A Chicago man was arrested today and charged in an investment fraud scheme that defrauded victims of over $2 million, a U.S. Attorney Philip R. Sellinger announced.
Phillip Galles, 57, of Chicago, is charged by complaint with one count of wire fraud. Galles made his initial appearance this afternoon before U.S. Magistrate Judge Gabriel A. Fuentes in Chicago, Illinois, federal court and was detained.
According to documents filed in this case and statements made in court:
Galles, a former commodities trader, defrauded his victims by falsely claiming that he would invest their money in commodity futures through his purported investment company called Tyche Asset Management, based in Chicago. Galles and those working for him falsely told prospective investors that Tyche had a history of success using proprietary trading strategies, with extraordinary annual rates of return exceeding 100 percent.
Tyche made virtually no legitimate investments in commodity futures or otherwise. Galles instead ran Tyche like a Ponzi scheme and used investor money to pay back other investors and for his own personal expenses.
Galles met in New Jersey with an undercover agent purporting to be an investment manager looking to make a large investment. Galles falsely claimed that Tyche had annual returns of 336 percent, raised over $2 billion within 60 days of starting the fund, and had prominent investors, including a Kuwaiti sovereign fund and a well-known owner of a professional sports team. Galles also falsely claimed that he graduated from a prominent university in the Midwest.
Galles defrauded more than a dozen victims out of more than $2 million.
The count of wire fraud with which Galles is charged is punishable by a maximum penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss involved in the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney in Newark; and the inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to the charges. He also thanked the Commodity Futures Trading Commission and the National Futures Association for their assistance.
The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
galles.complaint.pdfUnion County Man Charged with Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was arrested and charged with distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Sean Lynch, 21, of Summit, New Jersey, is charged by complaint with one count of distribution of child pornography. He appeared today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was released on $100,000 unsecured bond, with home detention and electronic monitoring.
According to documents filed in this case and statements made in court:
From Nov. 9, 2022, through Nov. 14, 2022, Lynch allegedly used an instant messaging mobile application to distribute to other individuals 72 videos depicting the sexual abuse of children.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Jose J. Riera, with the investigation leading to the charges. He also thanked the Montclair State University Police Department, under the direction of Interim Chief Kieran Barrett, and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, for their assistance.
The government is represented by Assistant U.S. Attorney Christopher Fell 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.
lynch.complaint.pdfNew York Man Admits Credit Card FraudRead the Press Release
CAMDEN, N.J. – A New York man today admitted spending hundreds of thousands of dollars using credit cards he fraudulently opened using the identities of others, U.S. Attorney Philip R. Sellinger announced.
Robert Lourenco, 52, of Queens, New York, pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to one count of an indictment charging him with access device fraud.
According to documents filed in this case and statements made in court:
During 2015, Lourenco opened 23 credit cards using the identities of three victims he had befriended, two of whom were senior citizens. Lourenco’s victims did not know he was using their identities to obtain the credit cards, nor did they authorize Lourenco to obtain the credit cards. Lourenco used the 23 credit cards to make more than $423,000 in unauthorized purchases. He also used the debit card for a joint bank account belonging to two of the victims to make an additional $57,000 in unauthorized charges. Lourenco admitted that he knew at least one of his victims was a vulnerable victim when he used the victim’s identity to commit his crime.
The charge of access device fraud is punishable by a maximum potential penalty of 10 years in prison and a fine of up to the greatest of $250,000, twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss sustained by any victims of the offense, whichever is greatest. Sentencing is scheduled for Sept. 14, 2023.
U.S. Attorney Sellinger credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea. He also thanked the Atlantic County Prosecutor’s Office for its role in the investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
lourenco.indictment.pdfEssex County Man Convicted of Being Member of Newark Drug Trafficking Organization Responsible for the Distribution of over One Kilogram of HeroinRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey man was convicted today for his role in a conspiracy to distribute and possess with intent to distribute over one kilogram of heroin, U.S. Attorney Philip R. Selling announced.
Furad Loyal, 41, of Newark, was convicted at trial before U.S. District Judge Susan D. Wigenton in Newark federal court on three counts of the indictment against him: conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin, possession with intent to distribute heroin, and being a felon in possession of a firearm. He was acquitted on one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and the evidence at trial:
Loyal was a heroin supplier and a member of a drug trafficking organization (DTO) that operated in and around Hayes Street and 14th Avenue in the area of the New Community Corporation community development (NCC) in Newark. In addition to selling narcotics in and around NCC, the members shared narcotics supply, narcotics proceeds, and customers. On Nov. 21, 2017, Loyal was found inside the apartment of an NCC resident where he was stashing his heroin, his firearm, and over $11,000 in cash.
From March to August 2018, Loyal and 27 other members of the DTO were charged by criminal complaint with conspiracy to distribute heroin and cocaine base; Loyal also was charged with firearms offenses. The other 27 defendants have all since pleaded guilty to crimes in connection with their roles in the DTO.
The heroin trafficking conspiracy count on which Loyal was convicted carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The drug distribution and possession with intent to distribute count carries a maximum potential penalty of 20 years in prison, and a $1 million fine. The firearm count carries a maximum penalty of 10 years in prison, and a $250,000 fine. Loyal’s sentencing is scheduled for Sept. 26, 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 members of the Newark Department of Public Safety, under the direction of Director Fritz Fragé, with the investigation leading to today’s guilty verdict. He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, New Jersey State Parole, and the U.S. Marshals for their assistance.
Loyal and the NCC drug trafficking organization were part of the original Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is comprised of the U.S. Attorney’s Office, the FBI, the ATF, the DEA’s New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Christopher D. Amore of the U.S. Attorney’s Office’s Criminal Division in Newark.
Justice Department Secures Agreement with Union County, New Jersey, Under the Voting Rights ActRead the Press Release
The Justice Department announced today that it has entered into a proposed consent decree with Union County, New Jersey, and county elections officials to settle a voting rights lawsuit.
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 Section 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 provide election materials and assistance in other languages, in addition to English. These jurisdictions have been determined by the Census Bureau to have a substantial population of citizens who speak a language other than English and who have limited English proficiency. Under Section 203 of the Voting Rights Act, Union County is required to provide assistance and make materials available in Spanish. Section 208 provides a right for voters who need assistance with voting – due to inability to read or write, blindness or disability – to receive assistance from the person of their choice, so long as that person is not an agent of the voter’s employer or union. The consent decree would resolve the United States’ claims.
“Language barriers should never prevent an eligible voter from being able to freely participate in the democratic process,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Equal access to the ballot in a modern democracy means ensuring the availability of bilingual materials for those who are limited English proficient and guaranteeing the right to receive assistance by a person of your choice. We will continue using our voting rights laws to confront the barriers that stand between voters and the ballot box.”
“The right to vote is a cornerstone of our democracy,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “We will work tirelessly to ensure that every eligible American is able to vote free of unlawful barriers. Through the agreement entered today, we ensure that no one is denied this sacred right simply because they are a Spanish speaker.”
The proposed consent decree, which must be approved by the court, requires the implementation of a comprehensive Spanish-language elections program under Section 203. The Union County Clerk and Board of Elections will provide all election-related information in both English and Spanish, including information in the 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.
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.
Justice Department Reaches Agreement to Protect Rights of Spanish-Speaking Voters in Union CountyRead the Press Release
NEWARK, N.J. – The Justice Department announced today that it has entered into a proposed consent decree with Union County, New Jersey, and county elections officials to settle a voting rights lawsuit.
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 Section 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 provide election materials and assistance in other languages, in addition to English. These jurisdictions have been determined by the Census Bureau to have a substantial population of citizens who speak a language other than English and who have limited English proficiency. Under Section 203 of the Voting Rights Act, Union County is required to provide assistance and make materials available in Spanish. Section 208 provides a right for voters who need assistance with voting – due to inability to read or write, blindness, or disability – to receive assistance from the person of their choice, so long as that person is not an agent of the voter’s employer or union. The consent decree would resolve the United States’ claims.
“The right to vote is a cornerstone of our democracy,” U.S. Attorney Philip R. Sellinger said. “We will work tirelessly to ensure that every eligible American is able to vote free of unlawful barriers. Through the agreement entered today, we ensure that no one is denied this sacred right simply because they are a Spanish speaker.”
“Language barriers should never prevent an eligible voter from being able to freely participate in the democratic process,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “Equal access to the ballot in a modern democracy means ensuring the availability of bilingual materials for those who are limited English proficient and guaranteeing the right to receive assistance by a person of your choice. We will continue using our voting rights laws to confront the barriers that stand between voters and the ballot box.”
The proposed consent decree, which must be approved by the court, requires the implementation of a comprehensive Spanish-language elections program under Section 203. The Union County Clerk and Board of Elections will provide all election-related information in both English and Spanish, including information in the 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.
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/about/vot.
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.
unioncounty.consentdecree.pdf unioncounty.complaint.pdf union_county_spanish.pdfGloucester County Man Admits Filing False Tax ReturnsRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man today admitted filing false claims against the IRS, U.S. Attorney Philip R. Sellinger announced.
Christian L. Whittaker, 42, of Williamstown, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to one count of an indictment charging him with making false claims against the IRS.
According to documents filed in this case and statements made in court:
Whittaker knowingly and willfully prepared, electronically signed, and filed with the IRS false U.S. Individual Income Tax Returns (Forms 1040) for the tax years 2016 to 2019. Whittaker claimed that a business paid him significant wages and incurred substantial losses, when in fact the business was fictitious. Based on the false claims, the IRS paid more than $300,000 in refunds to Whittaker. More than $80,000 was paid by the IRS and garnished to pay debts that Whittaker had previously incurred.
The charge that Whittaker pleaded guilty to is punishable by up to five years in prison and a fine $250,000, or twice the gross profits or gross loss, whichever is greatest. Sentencing is scheduled for Seopt. 13, 2023.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
whittaker.indictment.pdfEl Departamento de Justicia llega a un decreto por consentimiento con Union County, New Jersey, bajo la Ley de Derechos ElectoralesRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un decreto por consentimiento propuesto con Union County, New Jersey, y los oficiales electorales del condado para resolver una demanda de derechos electorales.
El decreto por consentimiento propuesto fue radicado junto con la demanda del departamento en el Tribunal Federal de Distrito. La demanda alega violaciones bajo las secciones 203 y 208 de la Ley de Derechos Electorales sobre la disponibilidad de asistencia electoral y materiales en español para votantes hispanos con conocimientos limitados del idioma inglés. La sección 203 requiere que ciertas jurisdicciones provean materiales electorales y asistencia en otros idiomas, así como en inglés. Estas jurisdicciones son aquellas que el Buró de Censos ha determinado que tienen una población sustancial de ciudadanos quienes hablan un idioma que no es inglés y tienen conocimentos limitados del idioma inglés. Bajo la sección 203, Union County tiene la obligación de proveer asistencia y materiales en español. La sección 208 le brinda el derecho a los votantes que necesiten asistencia al votar – debido a inhabilidad de leer o escribir, ceguera o discapacidad – a conseguir la ayuda de una persona que ellos mismos elijan, siempre y cuando esa persona no sea un agente del empleador del votante ni tampoco un funcionario de su sindicato laboral. El decreto por consentimiento resolvería las alegaciones del departamento.
“Las barreras idiomáticas jamás deben privar a un votante elegible de participar plenamente en el proceso democrático,” dijo Kristen Clarke, Secretaria de Justicia Auxiliar a cargo de la División de Derechos Civiles del Departamento de Justicia. “La igualdad de acceso a las urnas en la democracia moderna significa asegurar la disponibilidad de materiales bilingües para aquellos con conocimientos limitados del idioma inglés y garantizar el derecho de recibir ayuda de una persona que el votante mismo elija. Nosotros seguiremos utilizando las leyes de derechos electorales para enfrentar las barreras que se interponen entre los votantes y las urnas.”
“El derecho al voto es un pilar de nuestra democracia,” dijo el Fiscal Federal Philip S. Sellinger. “Trabajaremos sin cesar para asegurar que cada americano elegible pueda votar libre de barreras ilegales. Mediante el acuerdo al que llegamos hoy, nos aseguramos de que a nadie se le deniegue este sagrado derecho simplemente por hablar español.”
El decreto por consentimiento, que aún requiere la aprobación del Tribunal de Distrito, exige el establecimiento de un programa de asistencia idiomática integral en español bajo la sección 203. El Secretario del Condado y la Junta de Elecciones proveerá toda la información electoral tanto en inglés como en español, incluyendo en los lugares de votación y en línea. La Junta de Elecciones de Union County también asegurará la presencia de oficiales electorales bilingües en los lugares de votación temprana y en los lugares de votación con al menos 100 votantes registrados con apellidos de origen hispano. La asistencia en español seguirá disponible por teléfono para todos los votantes durante las elecciones. Además, el decreto por consentimiento provee que cualquier votante cubierto bajo la sección 208 quien necesite asistencia para votar podrá recibir ayuda de una persona que el votante mismo elija, siempre y cuando no sea un agente de su empleador ni tampoco un funcionario de su sindicato laboral, durante cualquier etapa del proceso electoral. El decreto por consentimiento también dispone que observadores federales pueden monitorear las actividades el Día de Elecciones en los lugares de votación en Union County.
Para denunciar una possible vulneración de las leyes federales de derecho al voto a la División de Derechos Civiles puede hacerlo en línea o llamar al (800) 253-3931. Puede también llamar a la Oficina del Fiscal Federal del Distrito de New Jersey en línea o llamar al (855) 281-3339.
Para obtener más información sobre la Ley de Derechos Electorales y otras leyes federales electorales, visite el portal del Departamento de Justicia en www.justice.gov/crt/voting/.
Essex County Man Charged in Scheme to Fraudulently Obtain More Than $4 Million from Government ProgramsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was arrested this morning for his involvement in a scheme that obtained more than $4 million in government funds, U.S. Attorney Philip R. Sellinger announced.
Gbenga Akinbode, 33, of Newark, New Jersey, is scheduled to appear today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was released on $300,000 bail.
According to documents filed in this case and statements made in court:
Akinbode opened a bank account in December 2020. Within a year, approximately 120 debit cards were used to purchase approximately $500,000 in money orders that were deposited into the account. The investigation revealed that the debit cards had been funded with $4 million in fraudulently obtained unemployment insurance benefits, Paycheck Protection Program loans and payments from the IRS.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered to the victims of his offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone, Northeast Region, Postal Inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, and Special Agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
akinbode.complaint.pdfHudson County Man Sentenced to 20 Years in Prison for Possessing Heroin, Cocaine, and Loaded FirearmRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 240 months in prison for possessing a loaded firearm, and possessing with intent to distribute controlled substances on three different occasions. Clarence Gaffney, 36, of Jersey City, was convicted on Oct. 26, 2022, following a three-day trial before U.S. District Judge Susan D. Wigenton in Newark federal court on three counts of possession with intent to distribute controlled substances, and one count of possession of firearm and ammunition by a convicted felon.
Union County Man Admits Receiving Child PornographyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man today admitted receiving videos and images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Joshua Cremosnik, 49, of Rahway, New Jersey, pleaded guilty by videoconference before U.S. District Judge Julien Xavier Neals to an information charging him with one count of receipt of child pornography.
According to documents filed in this case and statements made in court:
From April to August 2021, Cremosnik received videos of child sexual abuse via a publicly available online peer-to-peer (P2P) file-sharing program. Subsequent to a lawful search of his residence, law enforcement officers recovered numerous videos and images of child sexual abuse on Cremosnik’s laptop and electronic storage media. Cremosnik acknowledged using the P2P network to request and receive child pornography materials and stored those materials on his laptop and electronic storage media.
The count of receipt of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. Sentencing is scheduled for Oct. 5, 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 Farhana C. Melo of the Criminal Division in Newark.
cremosnik.information.pdfMiddlesex County Man Sentenced to 97 Months in Prison for Role in Heroin and Fentanyl Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 97 months in prison and four years of supervised release for leading a drug trafficking organization that operated out of a drug mill located in the Bronx, New York. Luis Cabrera, 38, of Perth Amboy, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court on Aug. 24, 2022, to an information charging him with conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and methamphetamine.
Four People Charged for Roles in Bank Fraud, Identity Theft SchemeRead the Press Release
NEWARK, N.J. – Four people have been charged with conspiring to use and using victims’ personal identifiable information to defraud individuals and financial institutions, U.S. Attorney Philip R. Sellinger announced today.
Marc Lazarre, 37, of Secaucus, New Jersey: Fritzgerald Steide, 28, of Valley Stream, New York; Mohammed Khan, 32, of Elmont, New York; and Andrea Lewis, 29, of Inwood, New York, are each charged by indictment with one count of conspiracy to engage bank fraud. Lazarre is also charged with one count of bank fraud and three counts of aggravated identity theft.
According to documents filed in this case and statements made in court:
From September 2021 through October 2022, Lazarre, Steide, Khan, and Lewis conspired to enrich themselves by fraudulently obtaining victims’ funds. Lazarre utilized unlawfully obtained bank account and personal identifiable information to open accounts in victims’ names without their knowledge, caused the transfer of funds from the victims’ actual financial accounts to the accounts he opened, and then withdrew the funds. Lazarre also unlawfully obtained or fabricated checks made out to victims, used fraudulent identification documents to open accounts in names almost identical to the victims’ names, and then cashed the unlawfully obtained or fabricated checks.
Lazarre also worked with Steide and Khan, both of whom were employees of an Oceanside, New York, branch of a victim financial institution. Lazarre sent victims’ personal identifiable information to Steide and Khan, who in turn used this information to determine whether those individuals had bank accounts with Steide and Khan’s employer. In Khan’s role as a customer service representative, he received documents that he knew reflected stolen personal identifiable information from Lazarre and subsequently opened bank accounts using that information. Steide advised Lazarre regarding how to avoid detection, including by telling him when a conspirator should arrive at the bank to meet with Khan. Lewis impersonated numerous victims using false forms of identification provided by Lazarre. On at least one occasion, Lewis communicated with Lazarre in real time for assistance with responding to a bank representative’s questions regarding her purported identity.
The conspiracy to commit bank fraud and bank fraud counts are punishable by a maximum of 30 years in prison and a maximum fine of up to $1 million or twice the gross gain or loss from the offense. The aggravated identity theft counts carry an additional consecutive mandatory minimum term of two years in prison and a maximum fine of up to $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Andrew McKay with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Shawn Barnes, Chief of the OCDETF/Narcotics Unit, and Matthew Belgiovine of the U.S. Attorney’s Office in Trenton.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
lazarreetal.indictment.pdfFormer Boy Scout Camp Employee Indicted for Possession and Distribution of Child PornographyRead the Press Release
NEWARK N.J. – A federal grand jury indicted a Morris County, New Jersey, man for possessing and distributing child abuse and exploitation material, U.S. Attorney Philip R. Sellinger announced today.
William Mickel, 69, of Lake Hopatcong, New Jersey, is charged by indictment with one count of distribution of child pornography and one count of possession of child pornography. He had his initial appearance today before U.S. district Judge Cathy L. Waldor in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
Mickel was employed by Boy Scout camps in New Jersey, and from February 2022 through April 2022, he distributed and possessed images and videos of child sexual abuse. Mickel used email accounts to distribute these materials, and stored hundreds of images and videos on electronic devices in his home. Some of the videos in Mickel’s possession depicted children who were surreptitiously recorded using bathrooms in the Boy Scout camps where Mickel worked.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries a maximum penalty 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 James E. Dennehy, and substantial assistance from the Morris County Prosecutor’s Office under the direction of Prosecutor Robert J. Carroll; and the Chester Police Department, under the direction of Chief Ryan T. McNamee, 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.
If you think you or your child may have been a victim, please contact the FBI at www.fbi.gov.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
mickel.indictment.pdfCitizen of Dominican Republic Sentenced to 78 Months in Prison for Role as Leader of International Money Laundering OrganizationRead the Press Release
NEWARK, N.J. – The leader of an international money laundering organization in the Dominican Republic was sentenced today to 78 months in prison and ordered to pay $80 million in forfeiture for his role in a conspiracy to commit money laundering. Luis Velazquez-Cordero, aka El Pequeño, 38, a citizen of the Dominican Republic, pleaded guilty before U.S. District Judge Brian R. Martinotti on May 4, 2022, to Count One of an indictment charging him with conspiring to commit money laundering. Velazquez-Cordero was extradited to the United States after his arrest the Dominican Republic on July 28, 2020.
Camden Registered Sex Offender Admits Sex Trafficking MinorsRead the Press Release
CAMDEN, N.J. – A Camden man admitted trafficking three minors to engage in commercial sex acts, U.S. Attorney Philip R. Sellinger announced today.
Semaj A. Gilmore, 33, pleaded guilty before U.S. Chief District Judge Renée Marie Bumb on May 3, 2023, to three counts of a superseding indictment charging him with sex trafficking minors.
According to documents filed in this case and statements made in court:
From September 2020 to April 2021 Gilmore transported, at various times, three minor victims from Philadelphia to New Jersey knowing they would engage in a commercial sex act at Gilmore’s direction. Each of the victims was under age 18 at the time.
Each count of sex trafficking of a minor is punishable by a mandatory minimum penalty of 10 years in prison, a maximum of life in prison and a fine of up to $250,000. Sentencing is scheduled for Sept. 5, 2023.
U.S. Attorney Sellinger credited special agents of FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, with the investigation leading to the guilty plea. He also thanked members of the Mount Laurel Police Department and the Burlington County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Jeffrey Bender and Special Assistant U.S. Attorney Katelyn Waegener of the U.S. Attorney’s Office in Camden.
gilmore.sindictment.pdfMiddlesex County Man Sentenced to 97 Months in Prison for Perpetrating Murder-for-Hire PlotRead the Press Release
NEWARK, N.J. – A Middlesex County man was sentenced to 97 months in prison for plotting to pay a purported hitman to kill his ex-wife and her daughter, U.S. Attorney Philip R. Sellinger announced today.
Michael Stewart, 69, of Monroe Township, New Jersey, previously pleaded guilty before U.S. District Judge Julien Xavier Neals to an information charging him with one count of the use of interstate commerce facilities in the commission of a murder for hire. Judge Neals imposed the sentence on May 2, 2023, in Newark federal court.
According to documents filed in this case and statements made in court:
In the summer of 2021, Stewart and a confidential source discussed the murder of Stewart’s ex-wife and her daughter. Stewart indicated he would pay for the murders and asked the confidential source to find a hitman. In October 2021, Stewart met with an undercover agent – whom he believed to be a hitman – and told him he wanted the ex-wife’s daughter killed first, followed by the ex-wife. He told the undercover agent he would pay for the killings and provided him with names, addresses, layout of the victims’ property and types of cars used by the victims. Stewart also showed the undercover agent a photo of his ex-wife. He provided the undercover agent $500 as a partial payment.
In addition to the prison term, Judge Neals sentenced Stewart to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Olta Bejleri of the Organized Crime/Gangs Unit in Newark.
Member of U.S. Attorney’s Office Receives Director’s AwardRead the Press Release
NEWARK, N.J. – Caroline Sadlowski, Counsel to the U.S. Attorney for the District of New Jersey, was recognized by Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 38th annual Director’s Awards Ceremony today in Washington, D.C.
At the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building, Ms. Sadlowski was honored with the Executive Achievement Award, which recognizes someone who has made significant contributions toward improving the efficiency, effectiveness, and productivity of the office through personal initiative, innovation, leadership, and creativity.
“Caroline Sadlowski is a remarkable leader, advisor, and advocate, who works tirelessly to support the office’s mission and employees,” U.S. Attorney Philip R. Sellinger said. “I am proud to congratulate Caroline on receiving a Director’s Award that recognizes her significant contributions to the office and the people of New Jersey. Every organization has a few cornerstone people who are depended upon by everyone. For the U.S. Attorney’s Office for the District of New Jersey, Caroline Sadlowski is one of those people.”
Ms. Sadlowski has been with the U.S. Attorney’s Office for the District of New Jersey for 19 years, has served in leadership positions in both the Appeals and Civil Divisions, and served in the front office as Counsel since 2018. Ms. Sadlowski advises the U.S. Attorney and other office supervisors on case-related decisions, bringing her tremendous insight and sound judgment to the office’s criminal, civil, and appellate matters based on her near two-decades of experience. She serves as one of the office’s ethics officers, providing ethics training to all supervisors and ethics advice to the U.S. Attorney on a wide array of issues. Ms. Sadlowski also oversees the office’s administrative division, particularly focusing on human resource and budget issues, and leads the office’s participation in the District’s Reentry Court and Pretrial Opportunity Program, two nationally recognized programs that focus on helping those enmeshed in the criminal justice system.
Ohio Man Admits Role in $24 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – An Ohio man and owner of several marketing companies today admitted his role in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, Attorney for the United States Vikas Khanna announced.
Mark Belter, 49, of North Ridgeville, Ohio, pleaded guilty via videoconference before U.S. District Judge Esther Salas to an information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From June 2017 through September 2020, Belter participated in a scheme with pharmacies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes. Belter controlled several marketing companies through which he and his conspirators identified Medicare and TRICARE beneficiaries to target for expensive drugs. The marketing companies called beneficiaries to pressure them to agree to try expensive medications, regardless of medical necessity. Belter and others would deliberately conceal the name of the prescribing doctor – whom the beneficiary had never met before – to increase the likelihood that the beneficiary would agree to accept the medications. Portions of the telephone calls were recorded.
Belter and his companies then paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors, to obtain prescriptions for the medications. Belter transmitted to the telemedicine companies the beneficiaries’ medical information, the telephone call recording, and pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements. Belter, the marketing companies, and the pharmacies with which they had relationships chose particular drugs for the prescriptions largely based on reimbursement amount and not medical need. The doctors paid by the telemedicine companies signed the prescriptions regardless of medical necessity, often without ever speaking to the patient.
Belter and his conspirators then directed the prescriptions to pharmacies with which Belter had additional kickback arrangements. The pharmacies submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Belter and his companies as payment for the prescriptions generated through the conspiracy. In total, Belter and his conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling in excess of $24 million of prescription drugs. Belter and his companies received kickbacks and bribes totaling more than $6 million in exchange for prescription referrals to a pharmacy located in New Jersey.
The conspiracy charges are each punishable by a maximum of five years in prison, along with fines, restitution, and penalties as to both counts. Both charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 27, 2023.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano of the Health Care Fraud Unit and Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit, in Newark.
belter.information.pdfOcean County Man Admits Money LaunderingRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, man today admitted that he illegally laundered the proceeds of a wire fraud scheme, U.S. Attorney Philip R. Sellinger announced.
Eli Schamovic, 41, of Lakewood, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with money laundering.
According to documents filed in the case and statements made in court:
Schamovic made or caused others to make numerous fraudulent financial transactions through at least two entities that Schamovic formed and established as merchants that used multiple credit card processing companies. These transactions resulted in more than $1 million in losses to a multinational financial services corporation that specialized in payment cards. Schamovic laundered portions of the proceeds of this scheme, including through an approximately $500,000 wire transfer from a bank account under his control.
The charge of money laundering is punishable by a maximum potential penalty of 10 years in prison and a fine $250,000, or twice the gross profits or gross loss suffered by the victims, whichever is greatest. Sentencing is scheduled for Sept. 8, 2023.
U.S. Attorney Sellinger credited postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
schamovic.information.pdfGloucester County Man Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 120 months in prison, 10 years of supervised release and ordered to pay $73,000 in restitution for possessing images and videos of child sexual abuse. Joseph Cooper, 76, of Williamstown, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb on Sept. 13, 2022, to an information charging him with one count of possession of child pornography.
Delaware Man Admits Distributing Heroin in New JerseyRead the Press Release
CAMDEN, N.J. – A Delaware man today admitted he distributed and possessed with intent to distribute heroin, U.S. Attorney Philip R. Sellinger announced.
Carl L. Jones, 49, of Newport, Delaware, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of distribution and possession with intent to distribute a mixture and substance containing a detectable amount of heroin.
According to documents filed in this case and statements made in court:
On March 29, 2019, Jones distributed, and possessed with intent to distribute, at least 700 grams, but less than one kilogram, of a mixture and substance containing a detectable amount of heroin to a confidential source who was working with law enforcement in a commercial parking lot in Mt. Laurel, New Jersey.
Jones faces a maximum potential penalty of 20 years in prison and a maximum fine of up to $1 million. Sentencing is scheduled for Sept. 6, 2023.
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, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg in Camden.
jones.information.pdfCamden County Woman Sentenced to Five Years in Prison for Fraudulently Obtaining 30 Loans Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, woman was sentenced on May 1, 2023, to 60 months in prison, five years of supervised release and ordered to pay $3.18 million in restitution and forfeit $1.03 million for conspiring to fraudulently obtain 30 Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) totaling more than $3 million, and to laundering the proceeds. Rhonda Thomas, 38, of Sicklerville, New Jersey, pleaded guilty by videoconference on June 28, 2022, before U.S. District Judge Karen M. Williams to an information charging her with one count of bank fraud conspiracy and one count of money laundering.
Bergen County Man Charged in Car Theft and Fraudulent Resale SchemeRead the Press Release
NEWARK, N.J. – A former Bergen County, New Jersey, man has been charged with running a large, multistate car theft and fraud ring, U.S. Attorney Philip R. Sellinger announced.
Warren Guerrier, 46, formerly of Hackensack, New Jersey, is charged by indictment with one count of conspiracy to commit wire fraud, five counts of wire fraud, and one count of aggravated identity theft. He was arraigned today before U.S. District Judge William J. Martini in Newark federal court and pleaded not guilty.
According to documents filed in this case and statements made in court:
From November 2016 to June 2020, Guerrier and several conspirators acting at his direction orchestrated a scheme to steal and then fraudulently sell vehicles to unsuspecting buyers. They identified vehicles to steal, then photographed, tracked, and advertised them for sale on the Internet. At the sales, the buyer victims were provided with electronically programmed keys and falsified certificates of title for the stolen vehicles in exchange for a negotiated purchase price in cash. Buyer victims also were provided with fraudulent identity documents utilized by conspirators to obscure their true identities.
The scheme involved the theft of at least 40 stolen vehicles, approximately 30 of which were sold by Guerrier and his conspirators to buyer victims, and as a result of which Guerrier and his conspirators collected approximately $285,000.
The conspiracy to commit wire fraud count and each count of wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine. The aggravated identity theft count is punishable by a sentence of two years in prison, which must be served consecutively to any other term imposed, and a maximum $250,000 fine.
U.S. Attorney Sellinger credited the FBI Newark Violent Incident Crimes Task Force, Garrett Mountain Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark and Special Agent in Charge Douglas Williams in New Orleans, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jessica R. Ecker of the General Crimes Unit and Kendall Randolph of the Organized Crime/Gangs 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.
guerrier.indictment.pdfCamden County Man Sentenced to 10 Years in Prison for Distributing Child PornographyRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 120 months in prison and 10 years of supervised release for distributing videos and images of child sexual abuse. Ryan Osinski, 33, of Cherry Hill, New Jersey, pleaded guilty on Nov. 17, 2022, before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of distribution of child pornography.
Passaic County Man Sentenced to 23 Years in Prison for Conspiracy and Two Armed Bank RobberiesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced to 276 months in prison for his role as the gunman in two armed bank robberies, U.S. Attorney Philip R. Sellinger announced today.
Jose Soto, 53, of Passaic, New Jersey, was previously convicted of two bank robberies, conspiracy to commit bank robbery, and brandishing a firearm during those robberies following a six-day jury trial before U.S. District Judge William J. Martini, who imposed the sentence on April 27, 2023, in Newark federal court.
According to documents in this case and the evidence at trial:
On Feb. 6, 2020, Soto and his conspirator, while wearing face coverings and holding umbrellas, entered the PNC Bank in Passaic. Soto pointed a silver and black handgun at customers and employees and began ordering everyone down on the floor. His conspirator entered the bank and jumped over the teller counter, demanding that the teller turn over all cash in the drawers. Soto and his conspirator took approximately $35,000 from the PNC Bank.
On Feb. 27, 2020, Soto and the same conspirator entered the Valley Bank in Little Falls, New Jersey. Soto again pointed a silver and black gun at customers and employees and his conspirator jumped over the teller counter and began rifling through various drawers. Soto and his conspirator, at gunpoint, forced the bank employees to open the vault, and began retrieving cash from the bank vault. They then forced all employees and customers into the bank vault and fled through the rear door of the Valley Bank. Soto and his conspirator took approximately $45,000 from the Valley Bank.
In addition to the prison term, Judge Martini sentenced Soto to three years of supervised release.
U.S. Attorney Sellinger credited the FBI Newark Violent Incident Crimes Task Force, Garrett Mountain Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Passaic Police Department, under the direction of Chief Luis A. Guzman; the Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik; the Little Falls Police Department, under the direction of Chief Robert A. Thomas III; and the Paterson Police Department, under the direction of Interim Officer in Charge, Maj. Frederick P. Fife, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Emma Spiro and Mark J. Pesce of the Criminal Division in Newark.
Medical Practice and its Owners to pay $1 Million to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – Two doctors and their medical practice have agreed to pay $1 million to resolve allegations that they violated the False Claims Act by allegedly performing and billing for medically unnecessary procedures on Medicare and Medicaid patients, U.S. Attorney Philip Sellinger announced today.
According to the contentions of the United States contained in the settlement agreement:
From Jan. 1, 2013, to Aug. 31, 2022, Drs. Fadi El-Atat and Sarah Abdul-Sater and their medical practice, FA CV Consultants P.C., violated the False Claims Act by knowingly seeking reimbursement for medically unnecessary balance tests, pulmonary function tests, allergy tests, autonomic nervous tests, and cardiology ultrasound tests that were performed on Medicare and Medicaid beneficiaries.
The allegations were originally made in a lawsuit filed under the whistleblower provisions of the False Claims Act brought by Jennifer Jean. The act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. Jean will receive approximately $180,000 from the proceeds of the settlement.
The government’s pursuit of this lawsuit illustrates its efforts to combat healthcare fraud. One of the strongest tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
U.S. Attorney Sellinger credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Kruti D. Dharia of the Opioid Abuse Prevention and Enforcement Unit.
The claims settled by this agreement are allegations only, and there has been no admission of liability.
The case is captioned United States and the State of New Jersey ex rel. Jean v. FA CV, et al. Civ. No. 19-10555 (D.N.J.).
facv.settlement.pdfGang Member Admits Racketeering and Firearms ChargesRead the Press Release
NEWARK, N.J. – A member of a New Jersey street gang admitted his role in a racketeering conspiracy and possessing firearms and ammunition as a convicted felon, U.S. Attorney Philip R. Sellinger announced today.
Rahjon Cox, aka “Tsu Surf,” 32, of Newark, pleaded guilty by videoconference on April 27, 2023, before U.S. District Judge Susan D. Wigenton to two counts of a superseding indictment charging him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and possession of firearms and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
From 2015 through Sept. 22, 2022, Cox was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in New Jersey and elsewhere. Cox held a leadership role within the enterprise. On March 18, 2017, Cox shot a firearm at a gang rival. On July 24, 2019, in Essex County, New Jersey, Cox, a convicted felon, knowingly possessed two loaded firearms.
The racketeering conspiracy count is punishable by a maximum sentence of 20 years in prison; the charge of being a felon in possession of a weapon is punishable by a maximum sentence of 10 years in prison. Both counts are also punishable by a fine of up to $250,000. Sentencing is scheduled for Sept. 12, 2023.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Daniel J. Kafafian; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Bryan Miller, with the investigation leading to the guilty plea. He also thanked investigators of the U.S. Marshals Service, under the direction of Marshal Juan Mattos; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Newark Police Department, under the direction of Public Safety Director Fritz Fragé; the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the East Orange Police Department, under the direction of Chief Phyllis L. Bindi; the Elizabeth Police Department, under the direction of Police Director Earl J. Graves; the Edison Police Department, under the direction of Chief of Police Tom Bryan; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; the Spotswood Police Department, under the direction of Chief Philip Corbisiero; and the North Carolina State Bureau of Investigation Fugitive and Missing Person Task Force, which includes members of the FBI, for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Unit.
cox.sindictment.pdfEssex County Man Sentenced to 82 Months in Prison for Using Credit Cards Stolen from U.S. Mail to Defraud Banks and Commit Identity TheftRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 82 months in prison, three years of supervised release and ordered to pay $330,391 in restitution for his role in scheming with at least one U.S. Postal Service (USPS) employee and others to steal credit cards from the mail and then steal victims’ identities in order to use the stolen cards to make hundreds of thousands of dollars of retail and online purchases. Dashaun Brown, 29, of Newark, was convicted on April 22, 2022, on four counts of the superseding indictment against him: conspiracy to commit bank fraud, bank fraud, receipt and possession of stolen mail, and aggravated identity theft in connection with bank fraud.
New Jersey Doctor Admits Health Care Fraud Targeting AmtrakRead the Press Release
NEWARK, N.J. – A New Jersey doctor today admitted participating in a health care fraud scheme to defraud Amtrak, U.S. Attorney Philip R. Sellinger announced.
Muhammad Mirza, 50, of Cedar Grove, New Jersey, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From April 2017 through June 2022, Mirza and his conspirators agreed to engage in a scheme to bill the Amtrak health care plan for fraudulent claims for services that either were never provided or were medically unnecessary. They would recruit Amtrak employees to participate in the scheme by paying them to allow the conspirators to use their patient and insurance information to submit false and fraudulent claims. Mirza and his conspirators submitted false and fraudulent claims that caused Amtrak losses of more than $1.3 million.
The charge of conspiracy to commit health care fraud carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Sept. 13, 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 today’s guilty plea.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark.
mirza.information.pdfPassaic County Man Charged with Shooting Gun During Two Pharmacy RobberiesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was arrested in connection with two armed robberies of pharmacies for prescription medication, U.S. Attorney Philip R. Sellinger announced today.
Antonio Rivera, 46, of Paterson, New Jersey, is charged by complaint with one count of interference with commerce by robbery, one count of attempted interference with commerce by robbery, and one count of using, carrying, and discharging a firearm during and in relation to a crime of violence. Rivera made his initial appearance before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was detained.
According to the complaint and statements made in court:
In February and April 2023, Rivera robbed and attempted to rob two pharmacies in Paterson and Passaic, New Jersey. During these robberies, Rivera fired his gun and pointed it at numerous victims. Ballistics evidence shows that the same firearm was used in both robberies.
On Feb. 8, 2023, Rivera robbed a Paterson pharmacy at gunpoint, shooting one time and demanding Percocet, Morphine, and Oxycodone pills. One pharmacy employee placed mediation bottles inside Rivera’s backpack. Rivera discharged another round, after which another pharmacy employee gave Rivera cash from the cash register.
On April 5, 2023, Rivera attempted to rob a Passaic pharmacy at gunpoint, raising a handgun to a pharmacy employee’s head and demanding that the employee put money from the cash register in a bag. When the employee refused, Rivera demanded pills while pointing the handgun at other pharmacy employees and fired a shot before fleeing the pharmacy through the rear.
The interference with commerce by robbery and attempted interference with commerce by robbery counts each carry a maximum potential penalty of 20 years in prison. The discharging of a firearm during a crime of violence count carries a maximum of life in prison and mandatory minimum sentence of 10 years in prison, which must run consecutive to any other prison term. Each count also carries a potential $250,000 fine.
U.S. Attorney Sellinger credited the FBI Newark Violent Incident Crimes Task Force, Garrett Mountain Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. U.S. Attorney Sellinger also thanked Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik; the Paterson Police Department, under the direction of Interim Officer in Charge, Maj. Frederick P. Fife; members of the Passaic Police Department, under the direction of Chief Luis A. Guzman; the Clifton Police Department, under the direction of Chief Thomas Rinaldi; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella, for their assistance.
The government is represented by Assistant U.S. Attorney Sophie Kaiser 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.
rivera.complaint.pdfMonmouth County Pair Indicted for Fraudulently Obtaining More Than $3.75 Million in Loans Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – Two former residents of Monmouth County, New Jersey, who allegedly obtained approximately $3.75 million in federal pandemic-related loans have been indicted, U.S. Attorney Philip R. Sellinger announced today.
Jean Rabbitt, 52, and Kevin Aguilar, 52, both of Sherman, Texas, and both previously of Farmingdale, New Jersey, are each charged by indictment with: one count of conspiracy to engage bank fraud; seven counts of bank fraud; one count of conspiracy to engage in wire fraud; three counts of wire fraud; conspiracy to engage in monetary transactions in property derived from specified unlawful activity and one count of engaging in monetary transactions in property derived from specified unlawful activity; and one count of aggravated identity theft. Rabbitt is additionally charged with one count of making a false statement in a loan application.
According to documents filed in this case and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, to provide emergency financial assistance to millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program (PPP).
Rabbitt and Aguilar submitted seven fraudulent PPP loan applications on behalf of four businesses that Rabbitt owned or controlled. Rabbitt and Aguilar made multiple false statements in their PPP applications, at least one of which was submitted to a Federal Home Loan Bank member. The lenders approved PPP loans totaling $3.33 million, and transmitted those funds to Rabbitt’s businesses. Rabbitt and Aguilar also submitted fraudulent applications to the U.S. Small Business Administration (SBA) under the federal Economic Injury Disaster Loan (EIDL) program. Based on false statements in those applications, the SBA approved EIDLs to three of Rabbitt’s businesses, totaling approximately $447,000.
After receiving the PPP and EIDL funds, Rabbitt and Aguilar transferred those funds to other businesses that Aguilar created to give the false appearance that the PPP and EIDL funds were being used for legitimate purposes. Aguilar and Rabbitt then used the PPP and EIDL funds for personal expenses.
Rabbitt and Aguilar also engaged in identity theft, by submitting an EIDL application using the name and identifying information of an individual who did not authorize the use of that information.
Rabbitt is also charged with making a false statement on a loan application, including with respect to her gross monthly income, in order to obtain financing to purchase a new truck from a Monmouth County car dealership.
U.S. Attorney Sellinger credited special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; special agents of IRS – Criminal Investigation, under the direction of Acting 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; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge is Christopher A. Nielsen, Philadelphia Division; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the U.S. Attorney’s Office’s Health Care Fraud Unit, in Newark.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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 indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
rabbitt.aguilarindictment.pdfJustice Department Hosts Forum in Newark to Highlight Nationwide Effort to Combat Modern-Day RedliningRead the Press Release
NEWARK, N.J. – The Justice Department hosted a forum in Newark, New Jersey, to discuss efforts to combat modern-day redlining. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in certain communities because of the race, color or national origin of the residents of those communities.
The forum, which commemorated Fair Housing Month and the 55th anniversary of the Fair Housing Act, featured Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Director Rohit Chopra of the Consumer Financial Protection Bureau (CFPB), U.S. Attorney Philip Sellinger for the District of New Jersey and New Jersey Attorney General Matthew Platkin, who each spoke at today’s program about their respective agencies’ response to the pernicious problem of residential redlining. Newark Mayor Ras Baraka also provided opening remarks at the event, which was hosted at Seton Hall Law School.
“Part of the promise of America is equal opportunity,” U.S Attorney Sellinger said. “Achieving that dream should be color blind – whether you get a home loan should not depend on the color of your skin or national origin. Redlining is racist, pure and simple. This type of systemic and intentional discrimination cannot – and will not – be tolerated.”
“We must use every tool available to us to confront modern-day redlining and to hold banks and financial institutions accountable when they fail to provide communities of color equal access to lending opportunities,” said Assistant Attorney General Clarke. “Since the launch of the Justice Department’s Combating Redlining Initiative, we have secured nearly $85 million dollars in relief for communities that have suffered from lending discrimination. Redlining, appraisal discrimination, so-called crime-free ordinances and racial steering stand as continued threats to fair housing and economic opportunity in our country – we are committed to eradicating these unlawful practices that have caused harm to communities of color for far too long.”
“Redlining is not a relic of the past. It exists in new forms, including in the physical and digital worlds,” said CFPB Director Rohit Chopra. “When it comes to modern-day redlining, the CFPB is prioritizing efforts with federal and state prosecutors to uncover illegal digital redlining by algorithms and artificial intelligence, reverse redlining through predatory targeting, and harmful discrimination by nonbanks.”
“Access to quality and safe housing is a right that should be enjoyed by all,” said New Jersey Attorney General Matthew J. Platkin. “As we commemorate the 55th anniversary of the Fair Housing Act, we still have work to do to ensure that no one is denied that right due to the color of their skin or national origin. New Jersey’s strong housing laws and our federal fair lending laws send the message that we will not tolerate discriminatory practices in housing access, and, as a nation, we must ensure that those laws are enforced.”
“Redlining has been historically pervasive and deliberate in this country, and cities like Newark have been at the front end of the abuse. While redlining is illegal, we know that this ugly form of racism is still widely practiced,” said Mayor Baraka. “To deny people, specifically in Black and Latino neighborhoods in Newark, mortgage-lending services, based strictly on their race, robs and makes the American dream of homeownership unattainable. It impedes families from building generational wealth and widens the racial wealth gap. We must hold lenders accountable for their illegal and racist policies and behaviors and take deliberate action to reverse the effects of redlining and stop it.”
The forum also featured Seton Hall Law professors as well as civil rights stakeholders in New Jersey, who provided their invaluable perspectives on the effects of redlining on communities of color in New Jersey, and the vital role that community engagement can play in combatting redlining. In connection with the event, the Justice Department’s Civil Rights Division also released a fact sheet highlighting the successes of the Combatting Redlining Initiative.
In October 2021, Attorney General Merrick B. Garland launched the Justice Department’s Combatting Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative has expanded the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners and its partners in state Attorneys General offices. Since the initiative was launched, the department has announced six redlining cases and settlements and nearly $85 million in relief for communities of color that have been victims of lending discrimination across the country, including a $31 million settlement with City National Bank, the largest redlining settlement in department history. The settlements also include two agreements with Trident Mortgage Company, for $20.4 million, and the Lakeland Bank, for $13.4 million. These two settlements provide tens of millions of dollars to increase credit opportunities for residents of communities of color in and around Camden and Newark, New Jersey.
Additional information about the department’s fair lending enforcement can be found at Fair Lending Program. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online. Individuals may also report civil rights violations through www.justice.gov/usao-nj/civil-rights-enforcement or call the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339.
Philadelphia Man Admits Drug TraffickingRead the Press Release
CAMDEN, N.J. – A Philadelphia man today admitted trafficking methamphetamine and fentanyl in southern New Jersey and Philadelphia, U.S. Attorney Philip R. Sellinger announced.
Glenn Long, 28, of Philadelphia, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to one count of a superseding indictment charging him with conspiring to distribute fentanyl and methamphetamine.
According to documents filed in this case and statements made in court:
Long conspired with other individuals who acted as “runners” or “couriers” for a drug-trafficking organization that distributed methamphetamine and fentanyl. Drug customers would call Long to place orders for drugs, and the runners would deliver the drugs. Long admitted that on a date on which law enforcement agents executed search and arrest warrants in connection with the investigation into his conduct, Long’s conspirators possessed more than 2,700 grams of methamphetamine and 400 grams of fentanyl for the conspiracy. Long participated in this conspiracy while he was a fugitive on a federal drug trafficking indictment in the Eastern District of Pennsylvania, to which he has since pleaded guilty.
Thirteen other defendants have previously pleaded guilty as a result of the investigation.
Long faces a mandatory minimum of 10 years in prison and a maximum of life in prison and a $10 million fine. Sentencing is scheduled for Aug. 22, 2023.
U.S. Attorney Sellinger credited special agents with the Drug Enforcement Administration, Newark Division, under the direction of Acting Special Agent in Charge Daniel J. Kafafian, with the investigation leading to today’s guilty plea. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania; Drug Enforcement Administration, Philadelphia Division; U.S. Department of Homeland Security – Homeland Security Investigations; U.S. Marshals Service; FBI; Bensalem Police Department; Berlin Borough Police Department; Berlin Township Police Department; Bucks County District Attorney’s Office; Camden County Prosecutor’s Office; Clayton Police Department; Delaware County District Attorney’s Office Narcotics Task Force; Deptford Township Police Department; Gloucester County Prosecutor’s Office; Gloucester Township Police Department; New Jersey State Police; New Jersey National Guard Counter Drug Task Force; Pennsylvania State Police; Pennsville Police Department; and Winslow Township Police Department for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
long.sindictment.pdfBronx, New York, Man Sentenced to 43 Years in Prison for Multistate Kidnapping, Assault, and Arson RampageRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced today to 516 months in prison for a multistate crime spree during which he kidnapped and sexually assaulted his former girlfriend, assaulted a federal employee, set fire to a used car dealership, and rammed multiple police vehicles before being apprehended, U.S. Attorney Philip R. Sellinger announced today.
Luis Figueroa, 42, was convicted in May 2022 of kidnapping; criminal sexual abuse; possession of a firearm in furtherance of a crime of violence; and assaulting an employee of the United States following a two-week trial before U.S. District Judge John Michael Vazquez. Figueroa had previously pleaded guilty to possession of a firearm by a previously convicted felon and arson. Judge Vazquez imposed the sentence today in Newark federal court.
“Figueroa is a danger to the public,” U.S. Attorney Sellinger said. “Figueroa deliberately engaged in a premeditated crime spree to extract revenge on the mother of his son. Fueled with anger, he kidnapped, assaulted and raped her. Along the way, he assaulted a federal employee, stole his car, burned down a car dealership office and endangered law enforcement officers and members of the public who were in his way. We are committed to protecting the community from such violent criminals and bringing them to justice.”
“ATF will never waver in our commitment to protecting the communities we serve and public safety,” Special Agent in Charge Bryan Miller of the Bureau of Alcohol, Tobacco, Firearms and Explosives said. “Figueroa was undoubtedly a clear and present danger to the community with his willingness to engage in this lawless behavior and commit these malicious, criminal, and violent acts. I am proud of the collaborative efforts and successful partnership of the U.S. Attorney’s Office, ATF, and our local and state partners involved in this investigation and prosecution. Justice has been served with this sentence and reflects ATF’s commitment to hold violent offenders accountable.”
According to court documents filed in this case and the evidence at trial:
On the morning of June 6, 2014, Figueroa, armed with a shotgun, waited outside the Hazleton, Pennsylvania, apartment of his former girlfriend. When she emerged from the apartment, Figueroa struck the victim in the face with the shotgun and said: “I told you I was going to kill you.” Figueroa then proceeded to physically assault both the former girlfriend and her sister, who, at the time, was eight months pregnant. As Figueroa attacked the women, another family member took Figueroa’s and the ex-girlfriend’s young child into a bedroom to shield the child from the violence.
After struggling with the pregnant woman and causing her to fall down a flight of stairs, Figueroa collected the shotgun from the apartment and led his former girlfriend to a red SUV, where he forced her into the backseat. Figueroa then drove the victim across state lines to New Jersey. Figueroa eventually stopped at the Kittatinny Point Visitor’s Center, which is located on federal property, and sexually assaulted his former girlfriend.
After the assault, the victim convinced Figueroa to dispose of the shotgun. When Figueroa went to do so, the former girlfriend climbed into the driver’s seat of the red SUV and drove away to safety.
After returning and discovering both his former girlfriend and the red SUV were no longer there, Figueroa approached a National Park Service employee, and led the employee to a nearby storage room, where he slammed the victim’s head against a door and threatened to harm the victim if he did not hand over the keys to his car. The employee complied and Figueroa fled the scene in the victim’s car.
Figueroa drove to Paterson, New Jersey, where he entered a used car dealership operated by a person with whom Figueroa had a business relationship. Figueroa asked an employee for a portable gas canister, which he filled shortly thereafter at a nearby gas station, and then returned to the dealership and doused the office with gasoline. After a brief struggle with an employee, Figueroa ignited a match and set the building on fire, engulfing the structure in flames and setting himself on fire in the process. Figueroa then fled the scene in another vehicle.
Law enforcement officers spotted Figueroa’s vehicle driving erratically towards the George Washington Bridge heading into New York. Figueroa ignored officers’ commands to stop, leading to a high-speed chase in which Figueroa rammed his vehicle into multiple police vehicles, injuring a police officer. Figueroa then got out of his vehicle and fled on foot. Officers placed Figueroa under arrest shortly thereafter.
In addition to the prison term, Judge Vazquez sentenced Figueroa to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the ATF, under the direction of Special Agent in Charge Miller in Newark, for the investigation leading to today’s sentencing. He also thanked the Hazelton City, Pennsylvania, Police Department; the Luzerne County, Pennsylvania, District Attorney’s Office; the Pennsylvania State Police; the New Jersey State Police; the Warren County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Bergen County Prosecutor’s Office, the Port Authority of New York and New Jersey Police Department, and the Manhattan District Attorney’s Office for their assistance.
The government is represented by Assistant U.S. Attorneys Vera Varshavsky of the U.S. Attorney’s Office’s Criminal Division and Bruce P. Keller, Special Counsel to the U.S. Attorney.
Atlantic County Man Sentenced to 37 Months in Prison for Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced today to 37 months in prison, two years of supervised release and ordered to pay $2.77 million in restitution and 327,987 in forfeiture for his role in defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions. John Sher, 40, of Margate, New Jersey, pleaded guilty on July 28, 2022, before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiracy to commit health care fraud.
North Carolina Woman Admits Participating in Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – A North Carolina woman today admitted her role in a health care fraud conspiracy in which she paid for doctors’ orders for durable medical equipment (DME), namely orthotic braces, Attorney for the United States Vikas Khanna announced.
Ircania Vargas, 50, of Charlotte, North Carolina, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging her with one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Vargas owned and operated various entities in New Jersey, through which she obtained doctors’ orders for DME. From December 2017 through May 2019, Vargas agreed to pay an individual and others a set amount for each DME order for a back, knee, shoulder or ankle brace provided to her DME supply companies. Vargas then billed Medicare for the DME orders that she obtained in exchange for kickbacks. Vargas observed indicators that these DME orders were not medically necessary, in part because Medicare beneficiaries would frequently call to complain that they had not ordered the DME that they received. To disguise the scheme, Vargas put her companies in the names of nominee owners, including her sisters and a friend. Vargas also received sham invoices which indicated that her companies had performed “marketing services” for an individual, when in reality, the invoices were for kickback payments for the purchase of DME orders. Vargas’s scheme resulted in an actual loss to Medicare of at least $5.5 million.
Conspiracy to commit health care fraud carries a maximum potential punishment of 10 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Sept. 12, 2023.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Emma Spiro of the Economic Crimes Unit in Newark.
vargas.information.pdfEssex County Man Convicted of Conspiracy to Commit Wire Fraud and Wire Fraud in Connection with Romance ScamRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was convicted of conspiring to commit wire fraud and wire fraud in connection with an online romance scam, U.S. Attorney Philip R. Sellinger announced today.
Mahmoud Bowler, 40, of Newark, was convicted on April 13, 2023, of one count of conspiracy to commit wire fraud and four counts of wire fraud following a four-day trial before U.S. Circuit Court Judge Joseph A. Greenaway Jr., sitting by designation to hold a District Court within the Circuit.
According to documents filed in this case and the evidence presented at trial:
From February 2015 through June 2019, Bowler and a conspirator participated in an online romance scheme. Bowler’s conspirator created a fraudulent profile on an online dating site and then pretended to strike up a romantic relationship with a woman living in Florida. In the online profile, Bowler’s conspirator falsely represented that he, and a company he owned, had been awarded multimillion-dollar oil contract. After establishing a virtual romantic relationship with the victim, the conspirator repeatedly solicited alleged loans from the victim, claiming that he could not access his own accounts because a foreign government had frozen his assets.
From April 2018 to September 2018, the victim was directed to wire money to Bowler’s bank account on four separate occasions. After receiving the funds, Bowler withdrew a portion of the funds in cash, sent money to other individuals in Ghana through a money remitter, and wired some of the money to family members in Ghana.
The conspiracy to commit wire fraud and the wire fraud counts each carry a maximum penalty of 20 years in prison. The maximum fine for each count is $250,000. Sentencing is scheduled for Aug. 15, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, under the direction of Special Agent in Charge James E. Dennehy; detectives from the New York City Police Department Intelligence and Counterterrorism Unit, under the direction of Chief Thomas Galati; detectives from the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens; and detectives from the Port Authority Police Department, under the direction of Superintendent of Police, Edward Cetnar, with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the Special Prosecutions Division and Assistant U.S. Attorney Dong Joo Lee of the Criminal Division.
Monmouth County Man Charged with Tax EvasionRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was arrested today for tax evasion, U.S. Attorney Philip R. Sellinger announced.
Raymond J. Salani Jr., 67, of Morganville, New Jersey, is charged by an indictment unsealed today with two counts of tax evasion. He appeared this afternoon for an initial appearance before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and was released on $50,000 unsecured bond.
According to documents filed in this case and statements made in court:
Salani was the president and owner of Medical Nutrition Inc., located in West Long Branch, New Jersey, which purportedly provided management services to Lifestyles Medical LLC, a medical practice also controlled by Salani and located in the same office as Medical Nutrition. Salani, who was not a licensed physician, was prohibited under New Jersey law from owning a medical practice and employing licensed healthcare professionals. To conceal his ownership and control of Lifestyles Medical, Salani employed a licensed physician to work at Lifestyles Medical on a part-time basis and act as nominee owner of Lifestyles Medical. However, at all relevant times, Salani acted as the true owner of Lifestyles Medical, managed the day-to-day operations of Lifestyles Medical, and exercised control over the financial accounts of both Lifestyles Medical and Medical Nutrition.
Between January 2016 and May 2017, Salani attempted to conceal his income from the IRS and evade the assessment of federal income taxes by transferring income earned by Lifestyles Medical into the business bank account for Medical Nutrition, purportedly as payments to Medical Nutrition for management services rendered to Lifestyles Medical. From there, Salani used the funds from Medical Nutrition’s business bank account to pay for personal expenses, including mortgage payments on his personal residence, payments to pay down balances on a personal credit card account in his spouse’s name, and payments for a personal vehicle leased by Salani. Federal law required Salani to report the income he received from Medical Nutrition to the IRS on his personal income tax returns for tax years 2016 and 2017. Salani failed to file a personal income tax return for tax year 2016 and failed to report any of the income he received through Medical Nutrition on his personal income tax return for tax year 2017. Salani failed to report $232,739 of taxable income that he received through Medical Nutrition in tax years 2016 and 2017, resulting in the evasion of $87,635 in tax due and owing.
Each count of tax evasion carries a maximum potential penalty of five years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins in Newark; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked investigators of the State of New Jersey Division of Consumer Affairs, under the direction of Attorney General Matthew J. Platkin, and detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, for their assistance.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
salani.indictment.pdfMiddlessex County Man Sentenced to 15 Years in Prison for Child Pornography, ObstructionRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man was sentenced today to 15 years in prison and 10 years of supervised release. Charles F. Browne, 55, of South River, New Jersey, convicted at trial on June 27, 2023, of receiving child pornography, soliciting child pornography, possessing prepubescent child pornography, and concealing objects to impede the FBI’s investigation.
Member and Associate of Newark Street Gang Charged with Unlawful Possession of Machinegun used in Shooting of Three PeopleRead the Press Release
NEWARK, N.J. – A member of a Newark street gang made his initial court appearance today on firearms charges related to the shooting of multiple victims, U.S. Attorney Philip Sellinger announced.
Munir Muhammad, aka “Mu,” 18, of Newark, is charged by complaint with one count of possession of a machinegun and possession of an unregistered firearm. He appeared today before U.S. Magistrate Judge José R. Almonte and was detained.
According to documents filed in this case and statements made in court:
Since 2021, law enforcement officers have been investigating a series of retaliatory shootings between rival neighborhoods in Newark involving individuals in the area of Clinton Place and Weequahic Avenue, which is known on the street as “Cake Block.” These individuals are aligned with others who operate in the area of Vorhees Street and individuals who operate around the Bradley Court Housing Complex. Muhammad is a member and associate of this neighborhood street gang. He and his fellow gang members have committed numerous shootings that targeted individuals who operate in the area of the Oscar Miles Housing Complex and Goodwin Avenue.
On April 8, 2023, law enforcement officers responded to a shooting in the area of the Oscar Miles Housing Complex and discovered three shooting victims, one of whom remains in critical condition.
On April 12, 2023, after the investigation identified Muhammad as a primary suspect in the shooting, law enforcement arrested Muhammad while he was in possession of a 9mm handgun equipped with a machinegun conversion device and loaded with 30 rounds of ammunition in an extended magazine. A subsequent ballistics analysis of the machinegun confirmed that the machinegun fired 28 rounds during the April 8, 2023, shooting at the Oscar Miles Housing Complex.
The charge of possession of a machinegun carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The charge of possession of an unregistered firearm carries a maximum potential penalty of 10 years in prison and a $10,000 fine.
U.S. Attorney Sellinger credited the Newark Department of Public Safety, under the direction of Fritz Fragé; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller; and special agents of the Secret Service, under the direction of Special Agent in Charge Patrick Freaney, New York Field Office, and Special Agent in Charge Jose Riera, Newark Field Office, with the investigations leading to the charges.
This case is part of the Violent Crime Initiative (VCI) in Newark. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Desiree Grace, Deputy Chief of the Criminal Division, in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
muhammad.complaint.pdfFour People Indicted for Roles in Romance and Internet Frauds, Illegal Money TransmittingRead the Press Release
TRENTON, N.J. – A husband and wife formerly of Burlington County, New Jersey, and a Nigerian national were indicted for their roles in an online romance fraud and other internet frauds, resulting in the loss of $4.5 million to over 100 victims, U.S. Attorney Philip R. Sellinger announced today.
Martins Inalegwu, 34, of Philadelphia, Phildelphia, Steincy Mathieu, 26 of Brooklyn, New York, and Moses Chukwuebuka Alexander of Nigeria, were indicted on April 6, 2023, for various charges of conspiracy to commit mail and wire fraud, wire fraud, mail fraud, conspiracy to commit money laundering, money laundering, transacting in criminal proceeds, and tax evasion.
A fourth defendant, Oluwaseyi Fatolu, of Springfield, New Jersey, was indicted for conducting an unlawful money transmitting business. Fatolu was arraigned on April 12, 2023, before U.S. Magistrate Judge Sharon A. King in Camden federal court. Inalegwu and Mathieu are scheduled to be arraigned before Judge King on April 20, 2023. Alexander remains at large.
According to documents filed in this case and statements made in court:
Between April 2016 and May 2020, Inalegwu, Mathieu, Alexander and their conspirators, several of whom reside in Nigeria, allegedly participated in an online romance scheme, defrauding more than 100 victims throughout the country. The conspirators made initial contact with victims through online dating and social media websites, then corresponded with victims via email and phone, pretended to strike up a romantic relationship with victims, wooed them with words of love, and then requested the victims send money to them, or their associates, for fictitious emergency needs. In all instances, the individuals whom the victims believed they were speaking to did not exist, and instead they were speaking to the conspirators of this scheme. Inalegwu, Mathieu and their conspirators engaged in apartment rental scams wherein they advertised the rental of a property, not owned or controlled by them, for the purpose of collecting money from the victims in the form of application fees and security deposits. After Inalegwu, Mathieu and conspirators collected the money, the victims never heard from them again.
Conspirators used myriad email accounts and phone numbers to communicate with the victims and instruct them on where to wire the money, including recipient names, addresses, financial institutions and account numbers. Victims wired money to bank accounts held by Inalegwu and Mathieu in the United States, and also mailed checks directly to Inalegwu and Mathieu. Some victims transferred money to the conspirators via money transfer services, such as Western Union or MoneyGram, and others wired money to bank accounts held by conspirators overseas.
Federal law enforcement agents have identified more than 100 victims who sent a total of $4.5 million directly to Inalegwu and Mathieu, who spent the money on personal expenses, withdrew money in cash, transferred money to other bank accounts they personally controlled, and transferred money to bank accounts held by Alexander and other conspirators in Nigeria and Turkey. Inalegwu also used the unlicensed money transmitting business run by Fatolu to send money to Nigeria. Fatolu operated a “hawala system,” wherein she directed Inalegwu and other customers to deposit money into her bank accounts and the accounts of her associates in the United States, and thereafter facilitated the movement of corresponding money into the destination bank account overseas, as directed by the customer. Fatolu charged a fee for this service. Inalegwu and Mathieu failed to report the income derived from the victims, and evaded the payment of tax on the entirety of this victim money.
The counts of conspiracy to commit wire and mail fraud, mail fraud, wire fraud, conspiracy to commit money laundering, and money laundering are each punishable by a maximum of 20 years in prison and a $250,000 fine. The count of transacting in criminal proceeds is punishable by a maximum of 10 years in prison and a $250,000 fine. The counts of tax evasion are each punishable by a maximum of five years in prison and a $100,000 fine. The count of unlicensed money transmitting is punishable by a maximum of five years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; 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. Attorney Martha K. Nye of the Criminal Division of the U.S. Attorney’s Office Trenton office.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
inalegwu.indictment.pdfFlorida Man Sentenced to 33 Months in Prison for Assaulting Two Military Police Officers with His CarRead the Press Release
CAMDEN, N.J. – A Florida man was sentenced today to 33 months in prison and three years of supervised release for assaulting two U.S. Air Force military police officers with his car. Hal Wander, 26, of Port Charlotte, Florida, pleaded guilty by teleconference on Feb. 8, 2022, before U.S. District Judge Joseph H. Rodriguez, to an information charging him with assault on two federal officers using a deadly and dangerous weapon, namely, a motor vehicle.
Canadian Fugitive Sentenced to 97 Months in Prison for Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced on April 10, 2023, to 97 months in prison and five years of supervised release for distributing and possessing images of child sexual abuse. Perth De, aka Parthasarthie Kapoor, 53, pleaded guilty on Aug. 12, 2022, before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of distribution of child pornography and one count of possession of child pornography.
Monmouth County Man Sentenced to 10 Years in Prison for Online Sexual Enticement of MinorRead the Press Release
NEWARK, N.J. – A Manalapan, New Jersey, man was sentenced on April 4, 2023, to 120 months in prison for using online chat applications to entice an adolescent to engage in prohibited sexual activity. Angelo N. Curato, 30, pleaded guilty by videoconference on July 18, 2022, before U.S. District Judge Brian Martinotti to a superseding information charging him with one count of online enticement of a minor.