District of New Jersey

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.

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, 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.

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.

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.

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.

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.

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.

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. 

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.

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.

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.

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.

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.).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

NEWARK, N.J. – A Hudson County, New Jersey, woman pleaded guilty today to stealing over $1.5 million from over 100 victims made up mainly of non-profits, private schools, and religious institutions throughout New Jersey, U.S. Attorney Philip R. Sellinger announced.

Yezenia Castillo, 46, of Hoboken, New Jersey, pleaded guilty before U.S District Judge Susan D. Wigenton, to an information charging her with one count each of wire fraud and tax evasion.

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

From 2012 through 2021, Castillo falsely claimed to be a CPA who could provide various financial and accounting services to non-profit organizations throughout New Jersey, including private schools and religious institutions. Castillo was not a CPA and never provided any of these promised services. After she was hired, Castillo used various ways to steal from her clients, including collecting fees for services that she never performed and transferring client funds to herself without authorization. Castillo also collected funds from clients by falsely claiming she would use it to pay their taxes, but she instead kept the money. To conceal her fraud, Castillo told victims that she had filed and paid their taxes, and she falsified receipts to make it appear to the victims as if their taxes were paid. Castillo defrauded over 100 victims, resulting in financial losses totaling over $1.5 million. 

The charge of wire fraud carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The charge of tax evasion carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 7, 2023.

U.S. Attorney Philip R. Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins, with the investigation leading to the today’s guilty plea.

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

NEWARK, N.J. – An Indian national was sentenced today to 33 months in prison, two years of supervised release and ordered to pay $2.4 million in restitution for his role in an international conspiracy that preyed on elderly victims in New Jersey and throughout the United States. Ashish Bajaj, 29, pleaded guilty on Aug. 4, 2022, before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to commit wire fraud.

NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 150 months in prison for distributing fentanyl that caused the death of another person, U.S. Attorney Philip R. Sellinger announced.

Wyzier Peterson, 25, of Paterson, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of distribution of fentanyl relating to the overdose death of an individual. Judge Martinotti imposed the sentence today in Newark federal court.

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

On June 30, 2019, Peterson sold heroin and fentanyl, which was later ingested by the victim, resulting in the victim’s death. 

In addition to the prison term, Judge Martinotti sentenced Peterson to three years of supervised release.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

U.S. Attorney Sellinger credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller; special agents of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Daniel J. Kafafian in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of the New Jersey Department of Law and Public Safety; and detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes, with the investigation leading to today’s sentencing. He also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office, the Passaic County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.

The government is represented by Assistant U.S. Attorney Francesca Liquori, Special Prosecutions Division.

NEWARK, N.J. – A Morris County, New Jersey, man who was employed by a New Jersey elementary school and helped run a youth soccer club today admitted producing and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.

Steven Brooks, 36, of Morristown, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of production of child pornography and one count of possession of child pornography.

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

In January 2021, law enforcement officers were notified about possible child pornography on an external hard drive belonging to Brooks. Pursuant to judicially authorized search warrants, law enforcement officers searched Brooks’ external hard drive, electronic devices and social media accounts. Brooks utilized a fake online persona on social media platforms to solicit photos and videos from dozens of minors that depicted the minors engaging in sexual activity. Brooks acknowledged, as relevant conduct, the attempted online enticement, production and possession of child pornography involving at least 70 victims.

The production of child pornography charge carries a statutory minimum sentence of 15 years in prison and a maximum of 30 years in prison; the possession of child pornography charge carries a maximum sentence of 10 years in prison. Each charge also includes a maximum fine of $250,000. Sentencing is scheduled for Sept. 21, 2023. 

U.S. Attorney Sellinger credited special agents and members of the Child Exploitation Human Trafficking Task Force of the Newark field office of the FBI, under the direction of Special Agent in Charge James E. Dennehy, as well as special agents from the FBI’s San Francisco field office, under the direction of Special Agent in Charge Robert K. Tripp, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.

CAMDEN, N.J. – Three men from southern New Jersey were charged with negotiating fraudulent checks with forged signatures, U.S. Attorney Philip R. Sellinger announced today.

Eugene O. Koranteng, 30, and Emmanuel S. Yirenkyi, 28, both of Maple Shade, New Jersey, and Misty Sarfo-Adu, 28, of Deptford, New Jersey, are each charged by complaint with one count of conspiracy to commit bank fraud. They are scheduled to appear by videoconference today before U.S. Magistrate Judge Sharon A. King. 

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

Koranteng, Yirenkyi, and Sarfo-Adu conspired to commit bank fraud by obtaining blank checks containing the names and account information of unsuspecting customers of a credit card company. They made the checks payable to members of the conspiracy, forged the customers’ signatures on the checks, and negotiated the checks at financial institutions. In July 2018, Sarfo-Adu messaged Yirenkyi a photograph of four blank checks with the account information of a customer of the credit card company. One of the checks was then made payable to Koranteng for $8,750 and deposited into Koranteng’s bank account. Another one of the checks was made payable to another conspirator for $8,750 and deposited into that conspirator’s credit union account. Members of the conspiracy also deposited other fraudulent checks using other customers’ credit card account information into the same accounts belonging to Koranteng and the other conspirator. 

The count of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a fine of up to $1 million. 

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to the charges. He also thanked the U.S. Postal Inspection Service, the Burlington County Prosecutor’s Office, the Camden County Prosecutor’s Office, the Moorestown Police Department, the Mount Laurel Police Department, and the Champlin, Minnesota, Police Department for their assistance in the investigation.

The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.

The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

CAMDEN, N.J. – Seven people have been charged for their participation in a telemarketing scheme to defraud timeshare owners over the age of 55, U.S. Attorney Philip R. Sellinger announced today.

William O’Hanlon, 58, and his wife Karen Stefanowski, 60, of Miami, Florida, James Toner, 41, of Lake Mary, Florida, and William Chiusano Jr., 48, of Laguna Niguel, California, are each charged in a 13-count indictment with one count of conspiracy to commit wire fraud, and multiple counts of wire fraud. O’Hanlon is additionally charged with three counts of tax evasion and one count of theft of government monies. O’Hanlon, Stefanowski and Toner were arrested today, made their initial appearances in federal court in Florida, and were released on bail.

Alex Klemash, 30, of Williamstown, New Jersey, Michael Lambe, 43, of Mullica Hill, New Jersey, and La’Tresa Jackson, 57, of Lindenwold, New Jersey, pleaded guilty on March 8, 9, and 13, 2023, respectively, before U.S. District Judge Karen M. Williams in Camden federal court to related informations charging them with conspiracy to commit wire fraud in connection with the telemarketing scheme.

According to documents filed in these cases and statements made in court:

The wire fraud conspiracy and wire fraud charges arise out of the defendants’ alleged participation in a timeshare fraud scheme operated through businesses Williams Andrews Burns LLC, Resort BnB Inc., and Williams & Burns Inc., collectively referred to as “WAB.” 

From October 2016 through October 2020, the defendants and additional conspirators engaged in a scheme to financially enrich themselves by selling fraudulent services offered through WAB to timeshare owners, including offering to rent or buy the owners’ timeshares under false and fraudulent pretenses or representations, and offering to recover monies timeshare owners had previously paid in connection with other scams. The conspirators obtained lists of timeshare owners and their contact information, and cold-called them to pitch their various services in return for upfront fees.

The conspirators made numerous false and misleading statements to the timeshare owners, including falsely stating that the timeshare owners had “bonus” timeshare weeks which WAB would rent for them in return for an upfront fee, and falsely guaranteeing thousands of dollars in rental income for the timeshare owners. Once the timeshare owners had signed up and paid their fees for the phony rental services, the conspirators also generally pitched collections/recovery services, offering to obtain refunds of monies previously paid by the timeshare owners in other fraudulent scams, in return for fees. The conspirators made numerous false and misleading statements in many instances to both timeshare owners and their credit card companies.

One of the fraudulent pitches used by the conspirators was to falsely claim that the timeshare owner had been identified as a victim of timeshare fraud and was entitled to monies that were held by a government entity, often referred to as the attorney general’s office or the Federal Trade Commission (FTC), and that WAB would obtain those monies for the timeshare owner in return for the payment of an upfront fee. The conspirators also offered additional fraudulent services to timeshare owners, including occasionally offering timeshare buyouts/takeovers.

O’Hanlon ran WAB with the assistance of supervisors Toner, Klemash and Lambe in New Jersey, and Chiusano in California. O’Hanlon and the supervisors also engaged in telemarketing sales, as did Jackson, and Stefanowski was the bookkeeper/controller responsible for drafting checks drawn on the victim timeshare owners’ bank accounts.

Each count of conspiracy to commit wire fraud and wire fraud are punishable by a maximum of 30 years in prison, including an enhancement of up to 10 years in prison for committing such fraud via telemarketing that targeted persons over the age of 55 and victimized 10 or more people over the age of 55. O’Hanlon is also charged with three counts of tax evasion, punishable by up to five years in prison, and one count theft of government monies, which is punishable by up to 10 years in prison. The sentences on each count may run consecutively. Each offense also carries a potential fine of the greater of $250,000, or twice the gross gain or loss from the offense.

U.S. Attorney Sellinger credited special agents of the FBI’s Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; special agents of the IRS Criminal Investigations, Newark Field Office, under the direction of Acting Special Agent in Charge Tammy Tomlins; and special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge, Cooperative Disability Investigations – Eastern Region, Conor Washington, with the investigation leading to the indictment, arrests, and guilty pleas.

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

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

CAMDEN, N.J. – A Cumberland County, New Jersey, man today admitted possessing a destructive device and explosive materials, U.S. Attorney Philip R. Sellinger announced.

Thomas Petronglo, 64, of Vineland, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with one count of possession of a destructive device and one count of unlawful storage of explosives.

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

On March 12, 2021, Petronglo was found in possession of one destructive device, a 5 ¾-inch diameter metal can, containing a quantity of an explosive mixture of potassium perchlorate and aluminum, with a fuse sticking out of the device. Petronglo also possessed multiple intact improvised explosive devices and explosive materials at his residence in Vineland.

U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller, with the investigation leading to today’s guilty plea. He also thanked the Vineland Police Department, the Cumberland County Prosecutor’s Office, and the N.J. State Police for their assistance with the investigation.

The count of possession of a destructive device carries a maximum penalty of 10 years in prison and a $250,000 fine. The count of unlawful storage of explosives carries a maximum penalty of one year in prison and a $100,000 fine.

The government is represented by Assistant U.S. Attorneys Jeffrey Bender and Joseph McFarlane of the U.S. Attorney’s Office in Camden.

NEWARK, N.J. – The U.S. Court of Appeals for the Third Circuit today ruled that a former U.S. Army major and his wife, convicted for having endangered the welfare of their young, adopted children through a series of physically abusive and neglectful acts, must be resentenced before a different district court judge, U.S. Attorney Philip R. Sellinger announced.

Convicted by a jury in July 2015 on multiple counts of child endangerment, Carolyn Jackson initially received 24 months in prison while her husband, John E. Jackson, formerly a major in the Army at the Picatinny Arsenal Installation in Morris County, New Jersey, received probation, plus 400 hours of community service. The government had appealed their sentences to the U.S. Court of Appeals for the Third Circuit, which found procedural error and ordered resentencing. See United States v. Jackson, 862 F.3d 365 (3d Cir. 2017).

At the 2018 resentencing, the district court imposed a 40-month sentence on Carolyn Jackson and the same probationary sentence on John Jackson. The government appealed those sentences and the Third Circuit again found procedural error and remanded for resentencing. See United States v. Jackson, 819 F. App’x 97 (3d Cir. 2020). At the third sentencing hearing, in October 2021, the district court reimposed the same 40-month sentence on Carolyn Jackson and imposed a sentence of 18 months’ home confinement on John Jackson. The government appealed those sentences.

Today, the Court of Appeals agreed that, in the process of imposing those sentences, the district court had failed to follow its directions to consider the children’s various injuries “holistically and in the context of the jury’s findings of guilt” in determining causation. In light of the three prior sentencing hearings in this case, the Court of Appeals concluded that the district court would have “substantial difficulty in putting out of her mind her previously expressed views of the evidence.” It ordered resentencing and directed the chief judge of the U.S. District Court for the District of New Jersey to reassign this case to a different district court judge. Resentencing will occur at a later date, which has yet to be determined. A copy of the Court of Appeals’ opinion is attached.

The government was represented by Assistant U.S. Attorney John F. Romano of the U.S. Attorney’s Office Appeals Division in Newark.

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NEWARK, N.J. – A Morris County public relations firm entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by taking a loan from the Paycheck Protection Program (PPP) to which the company was not entitled, U.S. Attorney Philip R. Sellinger announced today.

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses.

According to the allegations in the complaint and the contentions of the United States in the settlement agreement:

Coyne Public Relations LLC (Coyne) knowingly applied for and received a PPP loan totaling $2 million, even though it was ineligible for such a loan because it was a required registrant under the Foreign Agent Registration Act (FARA). Coyne thereafter sought and received forgiveness of the total amount of the loan.  

Coyne fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement Coyne agrees to pay the United States $2.24 million. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $203,183 as his share in the recovery. 

U.S. Attorney Sellinger credited special agents of the Small Business Administration, Office of Inspector General, under the direction of Supervisory Criminal Investigator Angelo Palmeri in New York, with the investigation.

The government is represented by Assistant U.S. Attorney David E. Dauenheimer of the Healthcare Fraud Unit in Newark.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The qui tam case is captioned United States ex rel. GNGH2 Inc. v. Coyne Public Relations, LLC, 21-cv-20442 (D.N.J.).

NEWARK, N.J. – An Essex County man today admitted stealing credit cards and checks from the mail while employed as a U.S. Postal Service letter carrier, Attorney for the United States Vikas Khanna announced.

Parrish Brookins, 30, of East Orange, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of mail theft by a U.S. Postal Service officer or employee. 

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

From January 2021 to September 2021, Brookins was employed as a U.S. Postal Service letter carrier with delivery routes in Montclair and Verona, New Jersey. Certain credit cards addressed to third-party victims and mailed to addresses in Verona and Montclair were stolen on numerous dates from routes worked by Brookins. These credit cards subsequently were activated and used to make and attempt to make fraudulent purchases in New Jersey and elsewhere. Numerous stimulus checks issued by the U.S. Department of Treasury also addressed to third-party victims and mailed to addresses in Verona covered by Brookins were also stolen along these same postal routes.

Brookins admitted in court that he had stolen numerous items of mail containing credit cards addressed to individuals living at residences on his postal delivery routes, activated some of these cards and attempted to make purchases with them. He admitted that he provided some of the stolen cards to other individuals in exchange for a fee. Brookins admitted stealing more than a dozen stimulus checks in March of 2021, which were being mailed to recipients along his postal delivery routes, and to providing these checks to other individuals for a fee, knowing that these checks would be fraudulently negotiated by others.

The mail theft charge is punishable by a maximum potential penalty of five years in prison and a maximum $250,000 fine. Sentencing is scheduled for Aug. 15, 2023.

Attorney for the United States Khanna credited special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector Christopher A. Nielsen, Philadelphia Division, with the investigation leading to today’s guilty plea. He also thanked IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins, for its assistance.

The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Office’s Special Prosecutions Division in Newark.

NEWARK, N.J. – A Sussex County, New Jersey, man was arrested and charged with distributing videos and images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.

Gaetano Lapegna, 64, of Franklin, New Jersey is charged by complaint with one count of distribution of child pornography. He appeared on March 30, 2023, before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $100,000 unsecured bond.

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

From December 2022 to March 2023, Lapegna distributed videos and images of child sexual abuse via a publicly available online peer-to-peer (P2P) file-sharing program. An undercover law enforcement officer conducted online sessions using the P2P program, during which a user shared hundreds of videos and images of child sexual abuse from an IP address traced to Lapegna’s address.

Subsequent to a lawful search of his residence on March 30, 2023, law enforcement officers recovered at least two videos and 100 images depicting child sexual abuse on Lapegna’s thumb drive. Law enforcement also found that Lapegna’s computer was running the same version of the P2P program from which law enforcement downloaded child pornography from Lapegna.

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. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to the charges. He also thanked the U.S. Postal Inspection Service, Sussex County Prosecutor’s Office, and Franklin Borough Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Farhana C. Melo of the General Crimes Unit in Newark.

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

NEWARK, N.J. – The U.S. Attorney’s Office today filed a lawsuit in U.S. District Court for the District of New Jersey to compel Port Police and Security Guards Union, Local 1456, to hold a fair election under the Labor-Management Reporting and Disclosure Act of 1959, U.S. Attorney Philip R. Sellinger announced.

The lawsuit alleges that Local 1456 established bylaws for the election of union officers that rendered 98 percent of the union’s membership ineligible to be elected to leadership positions. The suit alleges that any union member who missed the union’s September 2021 meeting – more than a year before the election – was rendered ineligible by that fact alone. The suit alleges that Local 1456’s officers disqualified at least four individuals who were or sought to be nominated at its nomination meeting on Nov. 1, 2022. A slate of five officers – four of whom had voted to disqualify candidates who might have opposed them – was then elected unopposed.

The government is represented by Assistant U.S. Attorney Paul W. Kaufman of the Camden office.

The complaint is an allegation of unlawful conduct. The allegation must still be proven in federal court.

NEWARK, NJ. – A former partner at a New Jersey broker-dealer firm was arrested today and charged with engaging in an insider trading scheme that netted millions of dollars in illegal trading profits, U.S. Attorney Philip R. Sellinger announced today.

Christopher Matthaei, 44, of Brielle, New Jersey, is charged by complaint with one count of securities fraud conspiracy and one count of securities fraud. He appeared today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $250,000 unsecured bond.

“As alleged, Christopher Matthaei illegally exploited his relationship with a close friend to gain access to confidential information about yet-to-be-announced mergers and acquisitions involving special purpose acquisition companies, or SPACs,” U.S. Attorney Sellinger said. Matthaei is alleged to have made trades on seven SPACs that netted him $3.4 million in illegal profits. SPACs may have been a hot trend on Wall Street, but the District of New Jersey will continue to be relentless in bringing inside traders to justice, no matter the market trends.”

“Federal laws targeting insider trading are designed to protect the general public from those who attempt to cash in on private information,” FBI Newark Special Agent in Charge James E. Dennehy said. “We allege Matthaei used his knowledge to make more than $3 million, disregarding the rules and policies everyone is required to follow. His position doesn't give him, or anyone else, the power to break the law.”

According to the complaint and statements made in court:

Matthaei was a partner and senior salesperson at a Charlotte, North Carolina-based broker-dealer with offices in Red Bank, New Jersey. From May 2020 through February 2021, Matthaei illegally traded on material, non-public information, or MNPI, that he received from a conspirator, a friend who worked at a large Canadian asset management firm. The MNPI pertained to SPACs that were engaged in confidential merger negotiations and shared information with the asset management firm as a potential investor in the SPAC deals. The conspirator received this MNPI every time a SPAC was placed on his firm’s confidential restricted list, meaning that the firm’s employees were prohibited from buying or selling the SPACs’ securities, either personally or via another person or third party. Despite knowing about these trading restrictions, the conspirator shared the MNPI with Matthaei, who then purchased securities in the SPACs using his personal brokerage accounts. In June 2020, Matthaei paid for a private plane and extended trip with the co-coconspirator and their families to a luxury resort on the island of St. Barth, where they continued to engage in the insider trading scheme.

Matthaei made more than $3.4 million in illegal trading profits from the insider trading scheme.    

The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine, and the securities fraud conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest.

The U.S. Securities and Exchange Commission also filed a civil complaint against Matthaei today 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 today’s arrest. 

The government is represented by Assistant U.S. Attorneys Jennifer Kozar and Marko Pesce of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

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

NEWARK, N.J. – A Maryland man admitted that he illegally obtained more than $2 million in COVID-19 relief funds, U.S. Attorney Philip R. Sellinger announced today. 

Mohamed Kamara, 42, of Greenbelt, Maryland, pleaded guilty by videoconference before U.S. District Judge Esther Salas to two counts of an indictment charging him with wire fraud and conspiracy to commit wire fraud.

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

From March 2020 to October 2020, Kamara and others made fraudulent applications to the Small Business Administration (SBA) for Economic Injury Disaster Loans (EIDL). The SBA provided EIDLs collectively worth more than $750,000. Kamara received or attempted to receive funds in connection with the EIDLs.

From January 2020 to September 2020, fraudulent applications were submitted to the state of New Jersey for unemployment insurance benefits using the names, dates of birth, and/or Social Security numbers of other individuals. The state approved and transferred more than $1 million, including funds to an account Kamara controlled. Sentencing is scheduled for Oct. 10, 2023.

The charges of wire fraud and conspiracy to commit wire fraud are each punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross profits or gross loss suffered by the victims of his offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Jonathan Mellone in New York, with the investigation leading to the guilty plea. He also thanked the FBI Baltimore Field Office; the Small Business Administration, and the New Jersey Department of Labor & Workforce Development for their assistance.

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

NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 21 months in prison, one year of supervised release, and fined $12,000, for preparing a false tax return. Terrence LeGall, 69, of Linden, New Jersey, pleaded guilty on Nov. 2, 2022, before U.S. District Court Judge John M. Vazquez in Newark federal court to a superseding indictment charging him with 12 counts of aiding and abetting the preparation of a false tax return.

NEWARK, N.J. – An Essex County, New Jersey, woman today admitted her role in fraudulently inducing victims to invest over $25 million in cash and cryptocurrency, U.S. Attorney Philip R. Sellinger announced.

Edith Pardo, 70, of Bloomfield, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler, to an indictment charging her with one count of conspiring to commit wire fraud, three counts of wire fraud, and one count of securities fraud in connection with a blockchain technology company.

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

Through CG Blockchain Inc. and BCT Inc., Pardo and her co-defendant, Boaz Manor, touted a product called ComplianceGuard, which purportedly provided hedge funds with a blockchain-based auditing tool. Before starting these entities, Manor was convicted and served a prison sentence in Canada for crimes stemming from his previous role as a hedge fund manager. While raising money for these new entities, Pardo helped Manor – who changed his appearance and used aliases – hide his true identity and criminal past from investors.

Pardo acted as the face of the entities and, with Manor, told prospective investors that Pardo was independently wealthy and provided millions of dollars in seed money, when in fact, she was neither wealthy nor an investor. Pardo and Manor also falsely claimed that: Pardo was the sole owner of the entities; “Shaun MacDonald” (one of Manor’s aliases) was merely a consultant; a team of well-credentialed executives ran the entities; and multiple hedge funds were paying millions of dollars in fees to use ComplianceGuard. In reality, the entities had no real executives, collected no fees, and ComplianceGuard was barely distributed or used.

In 2017, Pardo and Manor relied on many of the same misrepresentations to raise over $25 million through an initial coin offering, or ICO, for a new product called Blockchain Terminal that purportedly allowed hedge funds and financial institutions to trade and manage cryptocurrency. But after investors began to learn about Manor’s true identity and criminal past, Manor admitted to hiding this information to avoid destroying his new companies.

Manor is currently a fugitive.

The conspiracy and wire fraud counts in the indictment carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Aug. 1, 2023.

U.S. Attorney Philip R. Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s plea.

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

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

NEWARK, N.J. – A Connecticut man was sentenced today to 192 months in prison for his role in a murder for hire scheme in which a New Jersey-based political consultant paid him and another man to kill a longtime associate, U.S. Attorney Philip R. Sellinger announced.

George Bratsenis, 74, of Monroe, Connecticut, previously pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit murder for hire. Bratsenis’ conspirators, Sean Caddle and Bomani Africa, previously pleaded guilty to their roles in the murder scheme. Africa was sentenced on Feb. 23, 2023, to 20 years in prison. Caddle is scheduled to be sentenced on June 29, 2023.

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

In April of 2014, Caddle solicited Bratsenis to commit a murder on Caddle’s behalf in exchange for thousands of dollars. Bratsenis recruited Africa, a longtime accomplice from Philadelphia, to join the plot. After Bratsenis confirmed his and Africa’s interest in the job, Caddle told Bratsenis that the target was a longtime associate who had worked for Caddle on various political campaigns.

On May 22, 2014, Bratsenis and Africa traveled from out of state to the victim’s apartment in Jersey City. After entering the apartment, Bratsenis and Africa stabbed the victim to death and then set fire to the victim’s apartment. After Caddle learned that the victim had been murdered, the following day, he met Bratsenis in the parking lot of a diner in Elizabeth, New Jersey. Caddle paid Bratsenis thousands of dollars in exchange for the murder, and Bratsenis shared a portion of those proceeds with Africa.

In addition to the prison term, Judge Vazquez sentenced Bratsenis to five 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 today’s sentencing. He also thanked the Hudson County Prosecutor’s Office for its assistance.

The government is represented by Executive Assistant U.S. Attorney Lee M. Cortes Jr. and Assistant U.S. Attorney Sean Farrell, Chief of the U.S. Attorney’s Office Cybercrime Unit.

NEWARK, N.J. – A Utah resident today admitted his role in a $89 million health care fraud and kickback scheme involving genetic cancer screening tests (CGX Tests), Attorney for the United States Vikas Khanna announced.

Jordan Bunnell, 41, of Sandy, Utah, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count each of conspiring to commit wire fraud, conspiracy to commit health care fraud, and conspiring to defraud the United States in connection with a scheme to violate the Anti-Kickback Statute.

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

Bunnell and others owned, operated, and had a financial interest in a marketing call center, a clinical laboratory, and a telemedicine company that conducted or arranged for a variety of medical tests. Bunnell and others paid kickbacks and bribes to various parties in exchange for referrals and orders for CGX Tests for beneficiaries of the Medicare program and other health care benefit programs, without regard for medical necessity. From October 2018 through July 2019, Bunnell and his conspirators caused a loss to Medicare and other federal and private health care benefit programs of approximately $89 million.

The charge of conspiracy to violate the Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison; the charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison; the charge of conspiracy to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison. All three charges are also punishable by a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest.

Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz;  special agents of the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Sean M. Sherman of the Opioid Abuse Prevention & Enforcement Unit in Newark.