District of New Jersey
Press releases recorded for this federal judicial district.
Hoboken Woman Admits $1.5 Million Fraud Scheme that Targeted over 100 Non-Profit Victims, Including Schools and Religious InstitutionsRead the Press Release
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.
castillo.information.pdfForeign National Sentenced to 33 Months in Prison for Participating in an International Scheme to Defraud Elderly VictimsRead the Press Release
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.
Passaic County Man Sentenced to 150 Months in Prison for Distributing Fentanyl that Led to Overdose DeathRead the Press Release
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.
Morris County Man Admits Posing as Woman to Induce Dozens of Minors to Send Sexually Explicit Pictures and VideosRead the Press Release
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.
brooks.information.pdfThree South Jersey Men Charged with Conspiracy to Commit Bank FraudRead the Press Release
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.
yirenkyi.complaint.pdf
sarfoadu.complaint.pdf
koranteng.complaint.pdfThree People Plead Guilty, Four More Charged with Conspiracy to Commit Wire Fraud in Connection with Telemarketing Scheme Targeting Timeshare Owners over the Age of 55Read the Press Release
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.
ohanlonetal.indictment.pdfCumberland County Man Admits Possessing Destructive Device and Explosive MaterialsRead the Press Release
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.
petronglo.indictment.pdfThird Circuit Vacates Child Abuse Sentences, Orders Resentencing and ReassignmentRead the Press Release
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.
jackson.appeals.pdf23-090
Morris County Company Settles Matter Alleging it Received Improper Paycheck Protection Program LoanRead the Press Release
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.).
coyne.settlement.pdfEssex County Postal Employee Admits Mail TheftRead the Press Release
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.
brookins.information.pdfSussex County Man Charged with Distribution of Child PornographyRead the Press Release
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.
lapegna.complaint.pdfU.S. Attorney’s Office Files Lawsuit Against Local 1456 to Compel Fair Election of Union OfficersRead the Press Release
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.
ppgu1456.complaint.pdfFormer Partner at Broker-Dealer Firm Charged with $3.4 Million Insider Trading SchemeRead the Press Release
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.
matthaei.complaint.pdfMaryland Man Admits Fraudulently Obtaining more than $2 Million in COVID-19 Relief FundsRead the Press Release
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.
kamara.indictment.pdfFormer Financial Advisor and Tax Preparer Sentenced to 21 Months in Prison for Mulitiple Counts of Preparing False Tax ReturnRead the Press Release
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.
Essex County Woman Admits Role in $25 Million Securities Fraud Scheme Involving Blockchain Technology CompanyRead the Press Release
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.
pardo.indictment.pdfConnecticut Man Sentenced to 16 Years in Prison for Role in Murder for HireRead the Press Release
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.
Utah Lab Owner Admits $89 Million Health Care Fraud Kickback Scheme Involving Cancer Genetic Screening TestsRead the Press Release
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.
bunnell.information.pdfThree Brooklyn Residents Charged in Kidnapping New Jersey Teenager for RansomRead the Press Release
NEWARK, N.J. – Three individuals from Brooklyn, New York, were charged today in connection with a kidnapping for ransom that left a teenager with stab wounds after a dispute over a drug transaction, U.S. Attorney Philip R. Sellinger announced.
Dennis Reyes Mora, 37, Alexander Cruz, 26, and Cindy Aleman Fernandez, 27, all of Brownsville, Brooklyn, are each charged by complaint with one count of conspiracy to commit kidnapping. They appeared before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and were detained.
According to documents filed in this case and statements made in court:
On March 17, 2023, after a failed drug deal in Delaware, Cruz, Reyes, Aleman, and another individual kidnapped the 18-year-old victim, who they drove through New Jersey and held for ransom in the basement of a house in Queens, New York. During the drive, the kidnappers bound the victim with tape and stabbed the victim multiple times. Once they reached the house in Queens, the kidnappers covered the victim’s eyes and bound the victim’s wrists and ankles with tape. While holding the victim captive, the kidnappers tortured the victim, including by running a knife on the victim’s neck, holding a gasoline-soaked rag against the victim’s eyes, burning the victim with cigarettes, and beating the victim. One of the kidnappers also threatened the victim with a gun and rounds of ammunition. Aleman looked on and laughed while the victim was tortured.
The kidnappers ultimately released the victim after the victim’s family, aided by law enforcement, paid a ransom. Before their arrest, the kidnappers tried to cover up their crimes by, among other things, removing and cleaning the seats of the car used in the kidnapping.
The charge of conspiracy to commit kidnapping carries a maximum potential penalty of life in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Hackensack Police Department, under the direction of Police Director Raymond Guidetti; the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella; the Paterson Police Department, under the direction of the New Jersey Department of Law and Public Safety; the Clifton Police Department, under the direction of Chief Thomas Rinaldi; the Passaic County Sheriff’s Office, under the direction of Sheriff Richard Berdnik; and the New York Police Department, under the direction of Commissioner Keechant L. Sewell, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
reyes.complaint.pdfNorth Carolina Man Charged with $7 Million Ponzi SchemeRead the Press Release
NEWARK, N.J. – A North Carolina man was indicted today on wire fraud, securities fraud, and money laundering charges related to a $7 million investment fraud Ponzi scheme, U.S. Attorney Philip R. Sellinger announced.
David Schamens, 65, of Greensboro, North Carolina, is charged by indictment with seven counts of wire fraud, one count of securities fraud, and seven counts of money laundering.
According to documents filed in this case and statements made in court:
Starting in 2014, Schamens fraudulently solicited investments in various entities he controlled, including TD Trading LLC, TFG Trading Fund LLC, Tradestream Analytics LTD, Tradedesk Financial Group Inc., and others, under the promise of annual rates of return of 12 to 30 percent. In 2019, Schamens began to solicit investment in Tradestream Algo Fund, an algorithm-based trading pool that he claimed to have developed. In each instance, Schamens directed investors to wire funds directly or to transfer portions of their Individual Retirement Accounts (IRAs) to bank accounts he controlled.
Schamens often moved victim funds through several different bank accounts before he ultimately used the funds for some non-investment related purpose. Schamens took several steps to keep his customers’ trust, including sending false account statements; posting false monthly account statements to his companies’ websites showing balances for trading accounts that did not exist; and sending false tax documents reporting earnings that did not exist.
Schamens allegedly misappropriated $7 million from at least 25 different individuals, using some of that money to repay earlier investors in the manner of a Ponzi scheme, and to pay personal expenses.
The count of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000. The count of securities fraud carries a maximum potential penalty of 20 years in prison and a fine of $5 million. The count of money laundering carries a maximum potential penalty of 20 years in prison and a fine of $500,000.
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.
The government is represented by Assistant U.S. Attorneys Anthony Torntore, chief of the Cybercrime Unit, and Sophie E. Reiter of the Cybercrime Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
schamens.indictment.pdfDoctor Sentenced to 15 Months in Prison for Health Care FraudRead the Press Release
CAMDEN, N.J. – A doctor was sentenced today to 15 months in prison and three years of supervised release and ordered to pay restitution of $1.9 million and forfeiture of $54,000 for his role in two separate conspiracies for defrauding New Jersey state health benefits programs and accepting kickbacks in exchange for referring laboratory work. Dr. Daniel Oswari, 51, of Bordentown, New Jersey, pleaded on Dec. 16, 2019, in Camden federal court to two counts of an indictment charging him with conspiracy to commit health care fraud and wire fraud and conspiracy to violate the Anti-Kickback Statute and the Travel Act.
Atlantic County Doctor Admits Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, doctor today admitted his role in defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Brian Sokalsky, 44, of Margate, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiring to commit health care fraud.
Sokalsky, pharmaceutical sales representative Vincent Tornari, 49, of Linwood, New Jersey, and former advanced nurse practitioner Ashley Lyons-Valenti, 66, of Swedesboro, New Jersey, were charged in a 33-count indictment in June 2020. Tornari pleaded guilty on March 14, 2023, and Lyons-Valenti pleaded guilty on Feb. 28, 2023, to their respective roles in the conspiracy.
According to court documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
The conspirators learned that certain medications made by compounding pharmacies reimbursed for up to thousands of dollars for an individual’s one-month supply. They learned that certain insurance plans – including insurance plans for state and local government employees and certain other insurance plans – covered these medications.
Sokalsky agreed to authorize prescriptions for former pharmaceutical sales representative Matthew Tedesco, 47, of Linwood, New Jersey, who pleaded guilty to health care fraud conspiracy in June 2017, and others working with Tedesco. In exchange for authorizing those prescriptions, Tedesco referred approximately 30 patients to Sokalsky’s new medical practice. Sokalsky, in turn, billed insurance for patient visits for those people steered to his practice by Tedesco. Sokalsky also authorized prescriptions for the medications for existing patients of his practice, which he did to financially benefit Tedesco and encourage him to refer more patients to his new practice. Sokalsky authorized medically unnecessary medications, including libido creams for young females and excessive quantities of the medications with the maximum number of refills selected. When insurance stopped covering certain formulations of the medications, Tedesco informed Sokalsky that he needed to authorize new prescriptions. Sokalsky did so, often without seeing the individual for a follow-up visit or informing the person of the change in medication. In total, insurance paid more than $5 million for fraudulent prescriptions authorized by Sokalsky.
Sokalsky faces a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 22, 2023.
Attorney for the United States Khanna credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s guilty plea.
The government is represented by Christina O. Hud, Senior Trial Counsel in the Health Care Fraud Unit; R. David Walk, Jr., Deputy Chief of the Criminal Division; and Assistant U.S. Attorney Daniel A. Friedman.
sokalsky.sinformation.pdfRecruiter and Director of Money Mule Sentenced to Two Years in Prison for Participation in Business Email Compromise SchemeRead the Press Release
TRENTON, N.J. – An Essex County, New Jersey, woman was sentenced to 24 months in prison for her role in a business email compromise (BEC) scheme that affected numerous corporate and individual victims throughout the nation, U.S. Attorney Philip R. Sellinger announced today.
Lucy Beswick, 31, of Newark, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging her with one count of conspiracy to commit wire fraud. Judge Sheridan imposed the sentence on March 23, 2023, in Trenton federal court.
According to documents filed in this case and statements made in court:
From July 2017 to March 2018, Beswick and others participated in a BEC scheme designed to enrich its conspirators financially by stealing more than $400,000 in proceeds from individual and corporate victims. Conspirators recruited money mules to provide their personal identifying information in connection with the incorporation of sham businesses with the New Jersey Department of the Treasury under the money mules’ names. Under the instruction of conspirators, including Beswick, the money mules then opened bank accounts under the names of the sham corporations.
A related cyber-attack arm of the scheme involved the creation of email addresses mimicking, but differing slightly from, legitimate email addresses of supervisory employees of various victim companies, of vendors that did business with those victim companies, of mortgage lenders and brokers that dealt with individual victims in connection with real estate purchases, and of advisors and accountants who performed financial services for their clients. Conspirators sent emails from these addresses to several victims, which appeared to request the payment of legitimate invoices or debts owed by the victims, but in actuality deceived the victims into transferring funds by wire into the bogus bank accounts. After the victims complied with the fraudulent wiring instructions, Beswick and others, under the direction of other conspirators, quickly debited from the bank accounts they had opened and which they controlled, thousands of dollars in cash through in-person and ATM withdrawals and debit card purchases, while also transferring by wire from the bogus bank accounts to foreign bank accounts controlled by conspirators hundreds of thousands of dollars in stolen funds. Beswick ordinarily kept a fraction of the ill-gotten proceeds as compensation.
In addition to the prison term, Judge Sheridan sentenced Beswick to three years of supervised release and ordered her to pay $328,467 in restitution and $15,000 in forfeiture.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James D. Dennehy in Newark, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Jose Riera, with the investigation leading to the sentencing.
The government is represented by Eric A. Boden, Attorney in Charge of the Trenton Office of the U.S. Attorney’s Office.
Morris County Woman Charged in $10 Million Scheme to Commit Health Care FraudRead the Press Release
NEWARK, N.J. – A Morris County woman has been charged for her role in a conspiracy to commit health care fraud, U.S. Attorney Philip Sellinger announced today.
Aysha Khan, 33, of Kinnelon, New Jersey, is charged by indictment with one count of conspiracy to commit health care fraud and four counts of health care fraud. She was arrested today and will have her initial appearance this afternoon before U.S. Magistrate Judge Edward S. Kiel in Newark federal court.
According to documents filed in this case:
Khan controlled and operated a network of “specialty pharmacies” with locations in New Jersey, New York, Texas, and Florida. These pharmacies processed expensive medications used to treat various conditions, including Hepatitis C, Crohn’s disease, and rheumatoid arthritis.
At Khan’s direction, the pharmacies billed health insurance providers for medications that the pharmacies did not actually provide to patients. While the pharmacies generally provided medications for initial prescriptions it received, it systematically and intentionally billed for refills for those same medications without ever dispensing them. On certain occasions, the pharmacies also billed for initial prescriptions without ever shipping or dispensing them.
From 2015 through 2022, the Khan Pharmacies received over $10 million in reimbursement payments from Medicare for medications the pharmacy not only failed to give patients, but never ordered or had in stock.
The conspiracy to commit healthcare fraud count and the substantive healthcare fraud counts charged are each punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents and an analyst of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Daniel B. Brubaker, New York Division; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and the Kinnelon Police Department, under the direction of Chief Joseph Napoletano, with the investigation leading to the charges and arrest.
The government is represented by Assistant U.S. Attorney George L. Brandley of the Health Care Fraud 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.
khan.indictment_redacted.pdfMayor of Wildwood Admits Assisting in Preparation of Fraudulent Tax ReturnsRead the Press Release
CAMDEN, N.J. – The mayor of Wildwood, New Jersey, today admitted that he aided and assisted in the preparation and presentation of false and fraudulent tax returns, U.S. Attorney Philip R. Sellinger announced.
Peter J. Byron of Wildwood, 67, pleaded guilty before U.S. District Court Judge Karen M. Williams in Camden federal court to an information charging him with two counts of willfully aiding and assisting in the preparation and presentation of fraudulent tax returns to the IRS for calendar years 2017 and 2018.
According to documents filed in this case and statements made in court:
From January 2017 through December 2018, Byron served as a commissioner for the city of Wildwood, in charge of the Revenue and Finance departments. From June through August of 2017, Byron sent multiple emails to the managing partner of a law firm located in Gloucester County, seeking assistance in obtaining a job. Byron received a letter in October 2017 on the letterhead of the managing partner’s law firm which purported to set forth an employment offer to Byron from a company. According to the terms of the October 2017 letter, Byron was to receive an annual salary from the company for working as a salesman.
From October 2017 through September 2018, Byron received $40,425 in payments from the company. He did not report this income on his tax returns for calendar years 2017 and 2018, resulting in a tax loss to the I.R.S.
The tax charges each carry a maximum potential sentence of three years in prison and a maximum fine of $250,000 or twice the gross amount of any pecuniary gain that any persons derived from the offense, whichever is greater. Sentencing is scheduled for Aug. 2, 2023.
U.S. Attorney Sellinger credited the FBI Atlantic City Public Corruption Task Force which includes the agencies the Cape May County Prosecutor’s Office, and New Jersey State Police, under the direction of FBI Special Agent in Charge James E. Dennehy in Newark; and special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
byron.information.pdfGerman Man Charged with Travel with Intent to Engage in Illicit Sexual ConductRead the Press Release
NEWARK, N.J. – A German man will make his initial court appearance today on charges that he traveled to New Jersey for the purpose of engaging in sexual conduct with a minor, U.S. Attorney Philip R. Sellinger announced.
Christian Stefan Walther, 38, of Erfurt, Germany, is charged by complaint with one count of travel with intent to engage in illicit sexual conduct. Walther is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Edward S. Kiel in Newark federal court.
According to documents filed in this case and statements made in court:
Law enforcement authorities have been investigating Walther since January 2023 for child exploitation offenses. Two undercover officers communicated with Walther via email, phone, and an encrypted messaging app concerning Walther’s desire for sexual encounters with young children. During the investigation Walther sent an undercover officer two videos, each of which depicted an adult male sexually assaulting a prepubescent female child. Walther also expressed his desire to engage in sexual conduct with children aged 8 to 12, and explained that he had lied to his friends in Germany about the purpose of his trip to the United States. On March 23, 2023, Walther traveled from Germany to New Jersey to meet the undercover officers in advance of what he believed would be a sexual encounter with one or more children at a hotel.
The charge of interstate travel with intent to engage in illicit sexual conduct carries a maximum statutory penalty of 30 years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigation, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to the charge. He also thanked officers of the New Jersey State Police, under the leadership of Col. Patrick J. Callahan, for its assistance.
The government is represented by Assistant U.S. Attorney Matthew Specht 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.
walther.complaint.pdfFormer Florida Resident Charged in $101 Million Health Care Kickback SchemeRead the Press Release
NEWARK, N.J. – A former Florida resident living in Puerto Rico has been charged for his role in a $101 million durable medical equipment kickback scheme, Attorney for the United States Vikas Khanna announced today.
Raheel Naviwala, 34, of San Juan, Puerto Rico, is charged by complaint with conspiracy to violate the federal Anti-Kickback Statute. Naviwala had his initial appearance today before U.S. Magistrate Judge Patrick Hunt in Ft. Lauderdale, Florida, federal court and was released on $150,000 bond.
According to documents filed in the case and statements made in court:
Naviwala and his conspirators owned and operated multiple call centers through which they obtained doctors’ orders for durable medical equipment (DME), namely orthotic braces, for Medicare beneficiaries, without regard to medical necessity. Naviwala and his conspirators obtained the DME orders through the use of marketing call centers and telemedicine companies. Naviwala and his conspirators provided these orders in exchange for bribes from certain companies that provided the braces to Medicare beneficiaries. Naviwala and his conspirators caused losses to Medicare of $101 million.
The charge of conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest.
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 Acting Special Agent in Charge is Maged Behnam in Miami, Florida; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; 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 the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorneys Sean M. Sherman and Ray Mateo of the Opioid Abuse Prevention & Enforcement 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.
naviwala.complaint.pdfOcean County Man Admits Online Enticement of Minor, Distribution and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted possessing and distributing images of child sexual abuse and inducing a minor to send him sexually explicit images and engage in sexually explicit conduct over an online messaging service, U.S. Attorney Philip R. Sellinger announced.
Kevin Van Pelt, 33, of Lakehurst, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner to an information charging him with one count each of online enticement of a minor to engage in criminal sexual conduct, distribution of child pornography, and possession of prepubescent child pornography.
According to documents filed in this case and statements made in court:
From August 2018 to October 2018, Van Pelt used multiple online messaging services to communicate with a minor victim, including repeatedly requesting that the minor send him sexually explicit images. Van Pelt also distributed images and videos of child sexual abuse over several online social media applications between December 2017 and March 2019. Van Pelt possessed images and videos of prepubescent child sexual abuse on his cellular phone when he was arrested by local authorities on May 1, 2019.
The charge of online enticement carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of life in prison, and a $250,000 fine. The charge of distribution of child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. The charge of possession of prepubescent child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for July 20, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and members of the Gloucester County Prosecutor’s Office, under the direction of Acting Prosecutor Christine Hoffman, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office Criminal Division in Trenton.
vanpelt.information.pdfNigerian National Indicted for Wire and Copyright Fraud SchemeRead the Press Release
NEWARK, N.J. – A Nigerian man was charged today for his role in a fraud scheme that targeted a New Jersey-based audiobook and podcast service, U.S. Attorney Philip R. Sellinger announced.
Anyanwu Benjamin Chizitere, 30, of Enugu, Nigeria, is charged by indictment with one count of conspiracy to commit wire fraud, six counts of wire fraud, and three counts of copyright fraud.
According to the indictment:
Between February 2018 and April 2022, Chizitere conspired with others to defraud a New Jersey company and others. He posed as the rights holder for more than 800 books and contracted with more than 600 voice actors to produce audiobooks of the written works. Chizitere misrepresented that he was legally entitled to make the audiobooks available for production and distribution because he was either the author of the books or a person to whom the author of the books transferred production and distribution rights. Chizitere created hundreds of accounts through a service provided by the victim company and, using the accounts, published the infringing audiobooks on the company’s platforms, including its website and mobile application.
Chizitere and others were paid more than $250,000 in royalties based on downloads of the infringing audiobooks. The voice actors who produced the audiobooks at Chizitere’s direction were never compensated and suffered hundreds of thousands of dollars in aggregate losses.
Chizitere also directed others to purchase the infringing audiobooks using promotional codes provided to Chizitere upon opening accounts with the victim company. Chizitere directed others to leave positive reviews of the infringing audiobooks on the company’s platform to increase the likelihood that others would download the content, resulting in greater royalty payments to Chizitere.
The counts of conspiracy to commit wire fraud and wire fraud each carry a maximum potential punishment of 20 years in prison and a fine of $250,000, or twice the gross loss or gain caused by the offense, whichever is greatest. The counts of copyright fraud each carry a maximum penalty of up to one year in prison and a fine of $100,000.
U.S. Attorney Sellinger credited special agents of the FBI under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore, Chief of the U.S. Attorney’s Office’s Cybercrime Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
achizitere.indictment.pdfFormer Warren County Businessman Sentenced to Three Years in Prison for Fraudulently Obtaining $1.8 Million in COVID-19 Loans Meant for Small BusinessesRead the Press Release
NEWARK, N.J. – A Warren County, New Jersey, businessman was sentenced today to 36 months in prison for fraudulently obtaining nearly $1.8 million in federal Paycheck Protection Program (PPP) loans, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Kenneth A. Polite, Jr., of the Justice Department’s Criminal Division announced.
Rocco A. Malanga, 39, formerly of Hackettstown, New Jersey, pleaded guilty by videoconference on June 28, 2022, before U.S. District Judge Julien X. Neals to an information charging him with one count of bank fraud and one count of money laundering. Judge Neals imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
From April 2020 through August 2020, Malanga submitted false documentation to three lenders to fraudulently obtain approximately $1.8 million in federal COVID-19 emergency relief funds meant for distressed small businesses. He submitted at least three PPP loan applications on behalf of three different business entities in which he fabricated the number of employees employed by each business entity, as well as their average monthly payroll. Malanga then diverted some of the proceeds from the loans to fund a business that did not receive PPP loan funds.
In addition to the prison term, Judge Neals sentenced Malanga to three years of supervised release and ordered $1.8 million in restitution and $1.8 million in forfeiture.
U.S. Attorney Sellinger and Assistant Attorney General Polite credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, under the Direction of Acting Special Agent in Charge Stephen Donnelly; special agents of the Federal Deposit Insurance Corporation, Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca, New York Region; and special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott, with the investigation leading to the today’s sentencing.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the District of New Jersey and Trial Attorney Della Sentilles of the Fraud Section of the Department of Justice.
Union County Man Admits Illegally Possessing Firearm and Drug TraffickingRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man today admitted illegally possessing fentanyl, heroin, cocaine, and oxycodone for distribution and possessing a firearm in furtherance of drug trafficking, U.S. Attorney Philip R. Sellinger announced.
William Murphy, 45, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of being a previously convicted felon in possession of a firearm and ammunition, one count of possession with intent to distribute controlled substances, and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
On July 30, 2020, law enforcement officers executed search warrants at Murphy’s residence and found oxycodone pills; knotted bags containing mixtures of cocaine, heroin, and fentanyl; a digital scale; a money counter; numerous empty vacuum sealed bags; and approximately $13,000 in cash. The officers also recovered a 9mm Taurus handgun, loaded with 12 rounds of 9mm ammunition, a magazine loaded with 12 rounds of 9mm ammunition, and a box containing 50 rounds of 9mm ammunition.
The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. The count of being a felon in possession of a firearm and ammunition carries a maximum potential penalty of 10 years in prison. The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed, and a maximum potential penalty of life in prison. Each firearm count carries a maximum fine of $250,000. Sentencing is scheduled for July 20, 2023.
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; and Elizabeth Police Department, under the direction of Chief Giacommo Sacca, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit.
murphy.information.pdfEight Men Charged with Fentanyl TraffickingRead the Press Release
NEWARK, N.J. – Eight men were charged today for their roles in a drug trafficking organization operating in and around Union County, New Jersey, U.S. Attorney Philip R. Sellinger announced today.
Lance Baker, 54, of Perth Amboy, New Jersey; Rooks Crawford, 57, of Linden, New Jersey; Derrick Gilliam, 48, of Alburtis, Pennsylvania; Abinader Liriano-Balbuena, 37, of Bronx, New York; Michael Williams, 54, of Roselle, New Jersey; and Tyrone Gilliam, 60, Lewis Martinez-Berroa, 38, and Earl Riley, 58, all of Elizabeth, New Jersey, are each charged by superseding complaint with one count of conspiracy to distributed controlled substances.
According to documents filed in this case and statements made in court:
Baker, Crawford, Derrick Gilliam, Tyrone Gilliam, Martinez-Berroa, Riley, and Williams were part of a drug trafficking organization operating in and around Union County. Law enforcement officers observed and documented dozens of narcotics transactions during the investigation. From July 2022 to March 2023, law enforcement officers seized more than 9,000 individual doses of fentanyl sold by the organization. Martinez-Berroa, Tyrone Gilliam, and Derrick Gilliam were the primary suppliers of fentanyl to the drug trafficking organization.
On March 21, 2023, law enforcement executed a series of judicially authorized searches at several locations used by the members of the conspiracy. At a location in the Bronx, New York, law enforcement officials located a “mill” used to manufacture and package narcotics and recovered approximately 10 kilograms of a substance believed to be fentanyl.
The count of conspiracy to distribute controlled substances with which each of the defendants is charged carries a maximum potential penalty of 20 years in prison and a fine of up to $1 million.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller in Newark; special agents of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Daniel J. Kafafian in Newark; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Patrick J. Freaney; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel and Chief Harvey Barnwell; the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; the Summit Police Department, under the direction of Chief Steven Zagorski; the Elizabeth Police Department, under the direction of Police Director Earl Graves and Chief Giacommo Sacca; the Perth Amboy Police Department, under the direction of Chief Lawrence Cattano; the Union County Police Department, under the direction of Capt. Martin Mogensen; the Union County Sheriff’s Office, under the direction of Sheriff Peter Corvelli; the Scotch Plains Police Department, under the direction of Chief Jeffrey Briel; and the Linden Police Department, under the direction of Chief David Hart, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys John Mezzanotte and Robert Frazer of the Organized Crime and Gangs Unit in Newark and Christopher Fell of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
bakeretalscomplaint.pdfU.S. Attorney’s Office Files Lawsuit Against Roosevelt Care Centers to Enforce Employment Rights Under the ADARead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office today filed a lawsuit in U.S. District Court for the District of New Jersey charging Roosevelt Care Centers for violating Title I of the Americans with Disabilities Act (ADA), U.S. Attorney Philip R. Sellinger announced.
The lawsuit alleges that Roosevelt Care Centers, a long-term care facility operated by the Middlesex County Improvement Authority, unlawfully terminated a dietary worker whose disability inhibited her ability to lift objects heavier than 20 pounds.
“No one should be denied their right to work because of a disability,” U.S. Attorney Philip R. Sellinger said. “The Americans with Disabilities Act was enacted to prohibit employers from denying employment to people with disabilities without making a reasonable accommodation. The U.S. Attorney’s Office is committed to protecting the civil rights and ensuring equal employment opportunities for all individuals with disabilities.”
Before sustaining an injury that caused the permanent lifting impairment, the employee had been successfully working at Roosevelt Care Centers for approximately 18 years and remained able to perform the essential functions of her position. Nonetheless, Roosevelt Care Centers terminated the dietary worker’s employment due to her disability without engaging in an interactive process to provide her with a reasonable accommodation.
Title I of the ADA prohibits employers from discriminating against a qualified individual on the basis of disability in regard to the hiring, advancement or discharge of employees; employee compensation; and other terms, conditions, or privileges of employment. An employer may not demote, terminate, or deny employment opportunities to an employee who is otherwise qualified if the demotion or termination is based on the need to make reasonable accommodations for the employee.
This matter was handled by the U.S. Attorney’s Civil Rights Division based on a referral from the Newark Area Office of the Equal Employment Opportunity Commission. U.S. Attorney Sellinger created a Civil Rights Division last year with the goal of protecting and upholding the civil rights of those in our community.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).
The government is represented by Assistant U.S. Attorney Thandiwe Boylan of the Civil Rights Division in Newark.
The complaint is an allegation of unlawful conduct. The allegation must still be proven in federal court.
roosevelt.complaint.pdfEssex County Man Convicted for Gunpoint Robbery of East Orange Cell Phone StoreRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was convicted today for his role in a January 2021 gunpoint robbery of a cell phone store in East Orange, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Kenneth Graham, 50, of Newark, was convicted of one count of Hobbs Act robbery and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Graham was convicted following a one-week trial before Senior U.S. District Court Judge William J. Martini in Newark federal court.
According to court documents and the evidence presented at trial:
On Jan. 18, 2021, Graham was in the cell phone store when he pulled out a gun and pointed it at a store employee. He ordered the employee to place several cell phones from the display case and cash from the register into a bag. Video surveillance footage near the store showed Graham enter a black Nissan Altima after the robbery and drive away. A witness confirmed that Graham was the person entering the Nissan Altima after robbing the store.
Historical cell phone records indicate that Graham’s cellular telephone was in East Orange near the store around the time of the robbery, and photographs on Graham’s cell phone showed Graham wearing a sweatshirt with a distinct logo. In the video surveillance footage from the robbery, Graham wore that same sweatshirt.
The Hobbs Act robbery charge carries a statutory maximum of 20 years in prison. The count of using, carrying, and brandishing a firearm during a crime of violence carries a maximum potential penalty of life in prison and in this case, a mandatory minimum sentence of 25 years in prison because Graham was previously convicted in 2007 in connection with three gunpoint bank robberies in New Jersey. The sentence on this charge must be consecutive to any other sentence imposed. Each count carries a potential $250,000 fine.
U.S. Attorney Sellinger credited special agents and task force officers of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and members of the East Orange Police Department, under the direction of Chief Phyllis Bindi, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Benjamin Levin and Jennifer S. Kozar of the Criminal Division in Newark.
Ten Members and Associates of Marion Gardens Jersey City Gang Charged for Drug Trafficking ActivitiesRead the Press Release
NEWARK, N.J. – Ten members of the Jersey City gang associated with the Marion Gardens Housing Complex were charged today for their roles in a drug trafficking conspiracy, U.S. Attorney Philip R. Sellinger announced today.
Myron Williams, aka “Money,” aka “Tunchi,” 29, and Andre Alomar, aka “Dre8,” 21, both of Newark; and Herbert Thomas, 48; Roger Pickett, aka “Zy Gz,” 22; Anthony Rogers, aka “MG,” 22; Naim Richardson, aka “Ninicks,” 29; Quaseame Wilson, aka “Qua Gz,” 26; Javon Williams, aka “J45,” 21; Jawaad Davis, 20; and Keith Anderson, 21, all of Jersey City, New Jersey, are each charged by complaint with one count of conspiracy to distribute controlled substances.
The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in this case and statements made in court:
Myron Williams, Pickett, Alomar, Rogers, Richardson, Wilson, Javon Williams, Davis, and Anderson are all members and associates of the neighborhood street gang associated with the Marion Gardens Housing Complex. Since March 2021, members and associates of the Marion Gardens street gang have committed numerous acts of violence, including a murder on March 29, 2021; a murder on Nov. 20, 2021 and a murder on Nov. 1, 2022.
The murder on Nov. 1, 2022, was committed in furtherance of the gang’s drug trafficking activities, during an attempted robbery of controlled substances. Davis facilitated that murder by communicating with the victim to coordinate a narcotics transaction. When the victim and another associate arrived at the Marion Gardens Housing Complex to complete the narcotics transaction, Davis robbed the victim’s narcotics supply while Pickett and Wilson held the victim and his associate at gunpoint. Pickett shot and killed the victim while the victim’s associate fled. Pickett and Wilson then fled the Marion Gardens Housing Complex in Pickett’s vehicle.
The gang’s drug trafficking activities included hundreds of narcotics transactions that occurred within and around the Marion Gardens Housing Complex during the investigation. Thomas was the primary supplier of narcotics to the Marion Gardens drug trafficking organization.
All defendants are facing a mandatory minimum of five years in prison, a maximum penalty of 40 years in prison, and a fine of up to $5 million.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge Bryan Miller; and investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez for the investigation leading to the charges. He also thanked the investigators of the Jersey City Police Department, under the direction of Director James Shea; investigators of the Newark Police Department, under the direction of Director Fritz Fragé for their assistance.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Desiree Grace, Deputy Chief of the Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
williamsetal.complaint.pdfAtlantic City Councilman Charged with Submitting False Voter Registrations, Making False Statements, and Fraudulently Obtaining Unemployment BenefitsRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man has been charged with falsifying voter registrations, making false statements to the FBI about interactions with prospective voters, and submitting false unemployment benefits claims with the New Jersey Department of Labor and Workforce Development (NJDOL), U.S. Attorney Philip R. Sellinger announced today.
MD Hossain Morshed, 49, a councilman elected to Atlantic City’s Fourth Ward, is charged in a criminal complaint unsealed today with one count of fraudulent procurement and submission of voter registration applications, one count of making false statements, and one count of wire fraud. Morshed made his initial appearance before U.S. District Judge Ann Marie Donio in Camden federal court and was released on $100,000 unsecured bond.
According to the documents filed in this case and statements made in court:
Falsification of Voter Forms
In April 2019, in advance of the June 2019 primary election, Morshed gave a prospective voter a New Jersey voter registration application that had already been filled out and which falsely asserted that the prospective voter had a residential address in the Fourth Ward in Atlantic City. Even though the address written on the form was not where the voter actually lived, Morshed urged the prospective voter to sign the application. Subsequently, Morshed visited the prospective voter at the voter’s actual residence (which was not in the Fourth Ward) and presented the prospective voter with a vote-by-mail application to sign which included the same false Fourth Ward Atlantic City address that was on the voter registration application and listed yet another false Atlantic City address for where the mail-in ballot should be sent to the voter.
The Atlantic County Superintendent of Elections subsequently received the falsified voter registration application that Morshed had the prospective voter sign and thereafter, the Atlantic County Board of Elections received the prospective voter’s completed mail-in ballot, and that ballot was counted towards the June 2019 primary election. The prospective voter later admitted not receiving, completing or returning the mail-in ballot. During lawfully recorded conversations between this voter and Morshed concerning possible questioning by law enforcement, Morshed directed the voter, if questioned by law enforcement, to make false representations about where the voter lived and who filled out the voter forms that Morshed had given to the voter.
When Morshed was subsequently approached and questioned by FBI agents about his provision of voter registration and vote-by-mail applications to New Jersey residents, he made materially false statements, including that he had never provided any voter documents to any prospective voter, never assisted any prospective voter in filling out such documents, and never collected any such documents from any prospective voter. Morshed also falsely stated that he had never asked residents of municipalities outside of Atlantic City to register to vote in Atlantic City’s Fourth Ward.
Fraudulently Obtaining Unemployment Benefits
From April 2020 through September 2021, Morshed also defrauded the NJDOL of $39,208 in unemployment benefits to which he was not entitled. Morshed applied for and was approved to receive various unemployment benefits related to New Jersey’s Pandemic Unemployment Assistance program even though he was earning compensation for his employment as an Atlantic City Councilperson, and additional income as a driver.
The false voter registration submission and false statements counts each carry a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy; the FBI’s Newark, Atlantic City Resident Agency’s Public Corruption Task Force, including the Atlantic County Prosecutor's Office, under the direction of Prosecutor William Reynolds; the Atlantic City Police Department, under the direction of Officer-in-Charge Chief James A. Sarkos; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the Cape May County Prosecutor's Office, under the direction of Prosecutor Jeffrey H. Sutherland; as well as special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone; and the postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Office, and Assistant U.S. Attorney James H. Graham of the General Crimes Unit, under the supervision of the Special Prosecutions Division.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
morshed.complaint.pdfUnion County Man Admits Role in Scheme to Steal Mail, Commit Credit Card Fraud, and Defraud United StatesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man admitted his role in a scheme to receive stolen credit cards and pandemic relief debit cards sent through the mail, commit bank fraud, and defraud the U.S. Postal Service and the U.S. Department of the Treasury, U.S. Attorney Philip R. Sellinger announced today.
Justin Brooks, 23, of Vauxhall, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi on March 15, 2023, to three counts of an indictment charging him with: one count of conspiracy to commit mail theft and bank fraud, and to defraud the U.S. Postal Service and U.S. Department of the Treasury; one count of receiving stolen mail; and one count of bank fraud.
According to documents filed in this case and statements made in court:
From July 2019 to Oct. 6, 2020, Books and his conspirators obtained credit cards stolen from the U.S. mail from a U.S. Postal Service letter carrier, fraudulently activated those credit cards, and then used those credit cards to make and attempt to make purchases without the cardholders’ authorization. The victims have incurred approximately $70,000 in losses from fraudulent purchases made using their stolen credit cards. Brooks also schemed to fraudulently use over $13,000 of funds pre-loaded onto Economic Impact Payment (EIP) cards issued by the U.S. Department of Treasury and sent in the U.S. mail pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), that were also stolen from the mail. The CARES Act authorized EIP payments structured as one-time refundable tax credits to certain eligible taxpayers of $1,200 for individuals, $2,400 for married couples filing jointly, and up to $500 for each qualifying child. The goal of this part of their fraud was for the conspirators to unlawfully obtain the government funds pre-loaded onto these cards.
The conspiracy and possession of mail theft charges are each punishable by a maximum potential penalty of five years in prison and a maximum fine of up to $250,000. The bank fraud charge is punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million. Sentencing is scheduled for July 20, 2023.
Brooks originally was charged with Jarid Brooks, 29, Kyle Williams, 37, and Kyjuan Hutchins, 23, also of Vauxhall, in October 2020. Jarid Brooks’ case is pending before Judge Cecchi, and he is presumed innocent unless and until proven guilty. Williams has pleaded guilty to conspiring to commit access device fraud and was sentenced. Hutchins has pleaded guilty to conspiring to commit access device fraud and is awaiting sentencing.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. He also thanked the Union County Prosecutor’s Office, the Caldwell Police Department, the Fairfield Police Department, the Boonton Police Department, and the Millburn Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou, Chief of the Opioid Abuse Prevention and Enforcement Unit of the Criminal Division in Newark.
brooks.indictment.pdfSecurities Fraud Fugitive Arrested and Returned to the United StatesRead the Press Release
NEWARK, N.J. – A former North Carolina resident appeared in court after he was arrested and returned to the United States from Phuket, Thailand, for his role in a large-scale market manipulation scheme related to two publicly traded companies, U.S. Attorney Philip R. Sellinger announced today.
Peter Coker Jr., 53, of Phuket, was charged in a 12-count indictment with conspiracy to commit securities fraud, securities fraud, and conspiracy to manipulate securities prices. Coker Jr., who was previously arrested in Phuket, Thailand, was returned to the United States today and made his initial appearance before U.S. Magistrate Judge Michael A. Hammer in Newark federal court on March 15, 2023. He was detained without bail. Peter Coker Sr. and James Patten were previously arrested on the indictment and those charges remain pending.
According to documents filed in this case and statements made in court:
From 2014 through September 2022, Patten, Coker Sr., and Coker Jr. conspired to enrich themselves through a scheme to manipulate securities prices via a pattern of coordinated trading, which injected inaccurate information into the marketplace, creating false impressions of supply and demand for these securities.
The defendants targeted two publicly traded companies – Hometown International Inc. and E-Waste Corp. – which were both traded on the OTC Link Alternative Trading System, also known as the OTC Marketplace. The OTC Marketplace is an alternative trading system that contains three tiers of markets, which are largely based on the quality and quantity of the listed companies’ information and disclosures.
Patten, Coker Sr., and Coker Jr. took steps to gain control of both entities’ management and stock with the ultimate intention of entering reverse mergers, a transaction through which an existing public company merges with a private operating company. A successful reverse merger would allow the defendants to sell shares of each entity at a significant profit.
In 2014, two New Jersey residents began the process of opening a local deli in Paulsboro, New Jersey. One of the individuals discussed his interest in opening the deli with Patten, a long-time friend, who suggested the creation of Hometown International, an umbrella corporation, under which the deli would operate as a wholly owned subsidiary. Unbeknownst to the deli owners, almost immediately after Hometown International was formed, Patten and his associates began positioning Hometown International as a vehicle for a reverse merger that would yield substantial profit to them.
In October 2019, Hometown International began selling shares on the OTC Marketplace. Shortly thereafter, Patten, Coker Sr., and Coker Jr. undertook a scheme to gain control of Hometown International’s management and its shares from the deli owners. Patten, Coker Sr., and Coker Jr. took similar actions to gain control of E-Waste Corporation’s stock and management.
Once the defendants gained control of Hometown International and E-Waste’s shares, they arranged for the transfer of millions of shares of stock to a number of nominee entities, including entities controlled by Coker Jr., in an effort to mask their control of the shares.
The defendants transferred shares to family members, friends, and associates and gained control over their trading accounts by obtaining their log-in information in order to conceal the defendants’ involvement. The defendants then used those accounts to commit a number of coordinated trading events, often referred to as match and wash trades, to trade in Hometown International and E-Waste Corp.’s stock on both sides of the transaction.
These tactics artificially inflated the price of Hometown International and E-Waste’s stock by giving the false impression that there was a genuine market interest in the stock. Their scheme had the ultimate impact of artificially inflating Hometown International’s stock by approximately 939 percent and E-Waste’s stock by approximately 19,900 percent.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. The counts of conspiracy to commit securities fraud and conspiracy to manipulate securities prices both carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense whichever is greatest.
In a separate civil action, the Securities and Exchange Commission previously filed a complaint in the District of New Jersey charging Patten, Coker Sr., and Coker Jr. based on the allegations underlying the market manipulation scheme.
U.S. Attorney Sellinger credited special agents of the FBI’s Philadelphia Division, under the direction of Special Agent in Charge Jacqueline Maguire, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Shawn Barnes, Chief of the OCDETF/Narcotics Unit, and Lauren Repole, Chief of the General Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
coker.indictment.pdfPennsylvania Man Admits Robbing Two Camden County BanksRead the Press Release
CAMDEN, N.J. – A Pennsylvania man today admitted robbing two banks in Camden County, U.S. Attorney Philip R. Sellinger announced.
Leon I. Stanford, 54, of Wilkes Barre, Pennsylvania, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with two counts of bank robbery.
According to documents filed in this case and statements made in court:
On Feb. 22, 2020, Stanford entered the TD Bank in Oaklyn, New Jersey and handed the bank teller a note which announced a robbery and demanded cash. The bank teller complied, and witnesses saw him depart in a white SUV. On Feb. 24, 2020, Stanford entered the Republic Bank in Cherry Hill, and handed the bank teller a note which announced a robbery and demanded cash. The bank teller complied, and witnesses saw Stanford depart in a white SUV.
Law enforcement officers were able to obtain a partial license plate number for the white SUV from surveillance videos in the area of both bank robberies, which generated a lead to a vehicle driven by Stanford, who was subsequently identified as the person in the bank surveillance videos.
At the time of these bank robberies, Stanford was on federal supervised release as a result of prior bank robbery convictions, for which he served a 10-year term of imprisonment. Sentencing is scheduled for July 18, 2023.
Each bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the New York/New Jersey U.S. Marshals Regional Task Force Camden Division, under the direction of U.S. Marshal Juan Mattos Jr.; the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay; the Oaklyn Police Department, under the direction of Chief Jayne Jones; and the Cherry Hill Police Department, under the direction of Chief Robert Kempf, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg in Camden.
stanford.information.pdfFormer Pharmaceutical Sales Representative Admits Role in Health Care and Wire Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A former pharmaceutical sales representative today admitted defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Vincent Tornari, 49, of Linwood, New Jersey, pled guilty today via videoconference before Judge Robert B. Kugler to one count of an indictment charging him with conspiring to commit health care fraud and wire fraud. Tornari was previously charged with Dr. Brian Sokalsky, 44, of Margate, New Jersey, and former advanced nurse practitioner Ashley Lyons-Valenti, 66, of Swedesboro, New Jersey, in June 2020. Lyons pleaded guilty on Feb. 28, 2023, to health care fraud conspiracy. The conspiracy to which Tornari pleaded guilty also involved former pharmaceutical sales representative Mark Bruno, 48, of Northfield, New Jersey, who pleaded guilty on Dec.16, 2019, to health care fraud conspiracy and obstruction of justice. The charges against Sokalsky remain pending and he is scheduled to proceed to trial on April 24, 2023. The charges and allegations against Sokalsky are merely accusations, and he is presumed innocent unless and until proven guilty.
According to court documents and statements made in Court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
The conspirators learned that certain medications made by compounding pharmacies reimbursed for up to thousands of dollars for an individual’s one-month supply. They learned that certain insurance plans – including insurance plans for state and local government employees and certain other insurance plans – covered these medications.
Tornari’s company had an agreement with a compounding pharmacy in Pennsylvania to receive 50 percent of the insurance reimbursement for prescriptions that were arranged by him and those working with him, such as Bruno. Tornari then paid Bruno 20 percent of that amount.
Tornari and Bruno approached Sokalsky to secure his authorization for prescription medications made by the compounding pharmacy. Sokalsky agreed to prescribe the medications in exchange for cash and other remuneration. Sokalsky prescribed the medications to people Bruno paid cash to agree to receive the medications, even though those individuals did not need those medications and did not have a pre-existing doctor-patient relationship with Sokalsky. Sokalsky then billed insurance plans for patient visits for the people Bruno directed to his medical practice.
Sokalsky also prescribed the medications to existing patients of his medical practice – as opposed to other medications or no medications at all – to financially benefit Tornari, Bruno, and himself. When insurance stopped covering certain formulations of the medications, Tornari and Bruno informed Sokalsky that he needed to authorize new prescriptions. Sokalsky did so, often without seeing the individual for a follow-up visit or informing the person of the change in medication. The fraudulent prescriptions cost insurers over $541,000 and Tornari personally received more than $359,000 as part of the scheme.
Tornari faces a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for July 25, 2023.
Attorney for the United States Khanna credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark; and special agents of the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s guilty plea.
The government is represented by Christina O. Hud, Senior Trial Counsel in the Health Care Fraud Unit; R. David Walk Jr., Deputy Chief of the Criminal Division; and Assistant U.S. Attorney Daniel A. Friedman.
tornari.etal_.indictment.pdfEssex County Felon Convicted of Drug Trafficking, Firearm Possession, and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was convicted on drug and weapon charges, U.S. Attorney Philip R. Sellinger announced today.
Ricky Hubbard, 45, of Newark, was convicted on March 13, 2023, following a four-day trial before U.S. District Judge Kevin McNulty on one count each of possession of a firearm by a convicted felon; possession with intent to distribute cocaine, heroin, and fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.
According to documents in this case and evidence at trial:
On Nov. 6, 2019, law enforcement officers pulled over Hubbard’s car in Union, New Jersey. Inside a secret compartment, Hubbard possessed 369 doses of cocaine, heroin, and fentanyl packaged for distribution; drug-packaging materials; and a 9mm Taurus handgun loaded with seven rounds of ammunition, including one in the chamber.
The firearm possession charge carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000. The drug trafficking charge carries a maximum potential penalty of 20 years in prison and a maximum fine of $1 million. The possession of a firearm in furtherance of a drug trafficking crime charge carries a minimum sentence of five years in prison, a maximum potential penalty of life in prison, and a maximum fine of $250,000. Sentencing will be scheduled at a later date.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Union Township Police Department, under the direction of Police Director Chris Donnelly; the Union County Prosecutor’s Office under the direction of Prosecutor William A. Daniel, and the Union County Sheriff’s Office, under the direction of Union County Sheriff Peter D. Corvelli Jr., with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorneys Olta Bejleri and Emma Spiro of the Criminal Division in Newark.
Essex County Corrections Officer and Girlfriend Arrested for Conspiring to Smuggle Contraband into Essex County Correctional FacilityRead the Press Release
NEWARK, N.J. – An Essex County corrections officer and his girlfriend were arrested today for conspiring to smuggle contraband into the prison facility at which he was employed to be resold to prisoners, U.S. Attorney Philip Sellinger announced.
Efrin Wade, 34, and Yairisa Lizardo, 29, both of Jersey City, are charged by complaint with extortion under color of official right. The defendants appeared today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and were released on $100,000 each unsecured bond.
According to documents filed in this case and statements made in court:
In January 2023, Wade, who had served as a corrections officer at Essex County Correctional Facility (ECCF) since February 2020, began communicating with an individual whom he believed was seeking to smuggle contraband to inmates at ECCF for sale to other inmates. Unbeknownst to Wade, this individual was in reality an undercover FBI agent. Wade agreed to smuggle tobacco and cell phones, both of which inmates at ECCF are forbidden to possess. On Feb. 1, 2023, Wade sent Lizardo to meet with the undercover agent in a parking lot in Bayonne, New Jersey, where she accepted $10,000 in cash and a substantial quantity of tobacco for Wade to smuggle into ECCF. Over the subsequent weeks, Wade left this tobacco in concealed locations within ECCF believing it would be retrieved by inmates. However, law enforcement recovered these items after Wade relayed the concealed locations to the undercover agent.
On Feb. 8, 2023, Wade met the undercover agent in a parking lot in Jersey City, where Wade took possession of a cell phone concealed within tobacco. After smuggling this contraband into ECCF, law enforcement recovered it in a concealed location where Wade had left it for inmates to retrieve. On Feb. 15, 2023, Wade met with the undercover agent in the same parking lot in Jersey City and accepted an additional $4,000 for his smuggling activities. Wade also explained his plans to smuggle in an additional 15 contraband cell phones, which were to be supplied to him by the undercover agent. Wade expected to be paid at least $30,000 for smuggling these cell phones into ECCF in late March. Wade expected that the cell phones would then be resold to inmates for approximately $5,000 per phone. When approached by agents during his shift at ECCF during the early morning hours of March 14, 2023, Wade was found to be in possession of multiple packs of contraband cigarettes as well as tobacco packs and cigars.
The extortion charge is punishable by a maximum potential penalty of 20 years in prison and a maximum $250,000 fine.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and investigators of the Internal Affairs Unit of the Essex County Department of Corrections, under the direction of Ronald Charles, with the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
wadelizardo.complaint.pdfCalifornia Men Admit Conspiring to Distribute Fentanyl and MethamphetamineRead the Press Release
NEWARK, N.J. – Two California men admitted conspiring to distribute and possess with intent to distribute fentanyl and methamphetamine in New Jersey and elsewhere, U.S. Attorney Philip R. Sellinger announced today.
Erik Eduardo Velazquez Bautista, 25, of San Diego, California, pleaded guilty by videoconference today before U.S. District Judge Brian R. Martinotti to an information charging him with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine. Jesus Alejandro Rodriguez Velasquez, 27, also of San Diego, California, pleaded guilty on March 2, 2023, to the same offense before Judge Martinotti by videoconference.
According to documents filed in this case and statements made in court:
On Dec. 2, 2021, Velazquez Bautista and Rodriguez Velasquez were driving across the country to deliver narcotics to a purchaser in New York when they were stopped by law enforcement. Law enforcement seized approximately 20 kilograms of methamphetamine and approximately five kilograms of fentanyl.
Velazquez Bautista and Rodriguez Velasquez each face a maximum punishment of 20 years in prison and a maximum fine of up to $1 million. Sentencing for Rodriguez Velasquez is scheduled for July 11, 2023; sentencing for Velazquez Bautista is scheduled for July 18, 2923.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, New Jersey Division, under the direction of Acting Special Agent in Charge Daniel J. Kafafian, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark.
rodriguez.information.pdf bautista.information.pdfHudson County Man Admits Producing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey man, admitted producing images of child pornography, U.S. Attorney Philip R. Sellinger announced today.
Ramon Zelaya, 36, of Union City, pleaded guilty by videoconference on March 9, 2023, before U.S. District Judge Claire C. Cecchi to a second superseding indictment charging him with two counts of sexual exploitation of a child.
According to documents filed in this case and statements made in court:
Between Aug. 20, 2018 and Sept. 20, 2018, Zelaya used an alias Instagram account to message a minor victim and entice, threaten, and coerce the minor into creating and sending him sexually explicit images and videos. From April 2018 through May 2018, Zelaya used an alias Facebook account to conspire with an individual in the Dominican Republic to sexually abuse the individual’s minor child, create images of that abuse, and send the images to Zelaya. In May 2017, Zelaya used another messaging application to engage an additional underage victim in sexually explicit conversations during which Zelaya requested that the victim take sexually explicit photographs and videos of the victim and send them to him.
The charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years in prison, and a $250,000 fine. Sentencing is scheduled for July 20, 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, and officers of the Union City Police Department, under the direction of Chief Anthony Facchini, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Jamie H. Solano and Sophie E. Reiter of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Union County Man Convicted of Multiple Armed Robberies and Firearms OffensesRead the Press Release
NEWARK, N.J. – A Union County man was convicted today for participating in a multi-state armed robbery spree that spanned several months, U.S. Attorney Philip R. Sellinger announced.
Vincent Chan-Guillen, 32, was convicted of conspiracy to commit Hobbs Act robbery, conspiracy to use and carry a firearm during a Hobbs Act robbery, three counts of Hobbs Act robbery, one count of attempted Hobbs Act robbery, three counts of brandishing a firearm during a Hobbs Act robbery, and unlawful possession of a firearm by a convicted felon. Chan-Guillen was convicted following a one-week trial before U.S. District Judge Stanley R. Chesler in Newark federal court.
According to court documents and evidence presented at trial:
Chan-Guillen committed nine armed robberies between August 2018 and November 2018, five of which occurred in New York, and four of which occurred in New Jersey. During each robbery, Chan-Guillen brandished a firearm, which he pointed at store employees and customers. The New Jersey robberies victimized liquor stores in Elizabeth, Woodbridge Township, Bloomfield, and Linden.
Chan-Guillen faces a maximum potential penalty of 20 years on each count of Hobbs Act robbery and attempted Hobbs Act robbery; a maximum potential penalty of life in prison and a mandatory minimum penalty of seven years in prison on each count of brandishing a firearm during a Hobbs Act robbery, each of which must run consecutively to any other prison term. Each count also carries a potential $250,000 fine.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s conviction. He also credited the Elizabeth, Rahway, Woodbridge, Bloomfield, Linden, Kenilworth, Union, and Lyndhurst police departments; the New Jersey State Police; the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division; and the New York Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Desiree Grace, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney John F. Mezzanotte of the Office’s Organized Crime/Gangs Unit in Newark.
U.S. Attorney Sellinger to Hold Second Town HallRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger and members of his staff will meet with residents in Jersey City later this month at the second in a series of planned town hall meetings.
The town hall will be held on March 21, 2023, from 6:00 p.m. to 7:30 p.m. at Temple Beth-El, 2419 John F. Kennedy Blvd., Jersey City, NJ, 07304. U.S. Attorney Sellinger will discuss the work of his office in a variety of areas, including hate crimes, civil rights, protecting the community from violence and the opioid crisis, and protecting the environment.
This is a community event and is open to the public.
Manager in Camden Drug-Trafficking Organization Sentenced to 158 Months in PrisonRead the Press Release
A manager of a Camden drug-trafficking organization was sentenced on March 1, 2023, to 158 months in prison and five years of supervised release for conspiring to distribute more than one kilogram of heroin, more than 280 grams of crack cocaine, and unspecified quantities of cocaine and fentanyl. Juan Figueroa, 25, of Camden, pleaded guilty on June 8, 2022, before U.S. District Judge Renée Marie Bumb in Camden federal court.
Essex County Man Charged with Stealing Federal Benefits Meant for Missing Girlfriend’s Disabled SonRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was charged with embezzling federal benefits meant for the disabled child of his former girlfriend shortly after she went missing, U.S. Attorney Philip R. Sellinger announced.
Asmar Earp, 37, of Newark, is charged by indictment with two counts of wire fraud and two counts of aggravated identity theft. He appeared today before U.S. Magistrate Judge James B. Clark III and was detained.
According to documents filed in this case and statements made in court:
Earp was in a romantic relationship and shared a house with a woman in Newark. Through a program administered by the Social Security Administration, the woman received monthly payments on behalf of her disabled minor son, who was not capable of managing these benefits on his own. On Dec. 24, 2017, the woman went missing and her whereabouts remain unknown. Six days after her disappearance, Earp fraudulently gained control of the victim’s benefits by changing the PIN code on the debit card used to access those funds. In March and April 2018, Earp also fraudulently used the woman’s name, date of birth, and Social Security number to receive a replacement debit card to continue accessing and using the victim’s benefits. From December 2017 through February 2020, Earp and others acting at his direction repeatedly and fraudulently took the money intended to help the victim.
Each count of wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine. Each count of aggravated identity theft is punishable by a sentence of two years in prison, at least one of which must be served consecutive to any other term imposed, and a maximum of $250,000.
U.S. Attorney Sellinger credited special agents of the Social Security Administration, Office of the Inspector General, Boston New York Field Division, under the direction of Special Agent-in-Charge Sharon MacDermott, and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jessica R. Ecker of the General Crimes 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.
earp.indictment.pdfFormer Advanced Practice Nurse Admits Role in Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A former Pennsville, New Jersey, advanced practice nurse today admitted defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Ashley Lyons-Valenti, 66, of Swedesboro, New Jersey, pleaded guilty today by videoconference before U.S. District Judge Robert B. Kugler to an information charging her with one count of conspiring to commit health care fraud.
Lyons-Valenti was previously charged with Vincent Tornari, 49, of Linwood, New Jersey, and Brian Sokalsky, 44, of Margate, New Jersey, in a 33-count indictment in June 2020. The charges against Tornari and Sokalsky remain pending, and they are set to proceed to trial later this year. The charges and allegations against Tornari and Sokalsky are merely accusations, and they are presumed innocent unless and until proven guilty.
According to court documents and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Lyons-Valenti was previously an advanced practice nurse at a medical office in Pennsville, New Jersey. At the same time, Tornari hired Lyons-Valenti’s live-in boyfriend to be a sales representative for his company which promoted compound medications, even though Lyons-Valenti’s boyfriend had no background or experience in medicine and pharmaceutical sales. Tornari and Lyons-Valenti’s boyfriend had an agreement that the boyfriend would receive a commission on all prescriptions authorized by Lyons-Valenti. Lyons-Valenti then authorized numerous medically unnecessary prescription medications associated with Tornari and her boyfriend – including for her patients, staff members and co-workers at the medical office where she worked, and her children – for the sole purpose of financially benefitting herself, her boyfriend, and Tornari. In exchange for authorizing the prescriptions, Lyons-Valenti’s boyfriend paid her half of his commissions that he received from Tornari. As a result of the scheme, health insurance paid over $1.2 million for medically unnecessary medications and Lyons-Valenti received over $90,000 in kickbacks for signing the prescriptions.
As part of her plea agreement, Lyons-Valenti also admitted to attempting to obstruct or impede the administration of justice with respect to the investigation of the health care fraud conspiracy by trying to influence the testimony of a grand jury witness.
Lyons-Valenti faces a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 11, 2023.
Attorney for the United States Khanna credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s guilty plea.
The government is represented by Christina O. Hud, Senior Trial Counsel in the Health Care Fraud Unit; R. David Walk, Jr., Chief of the Opioid Abuse Prevention and Enforcement Unit; and Assistant U.S. Attorney Daniel A. Friedman of the Criminal Division in Camden.
lyonsvalenti.sinformation.pdfRepeat Offender Charged with Possession of Child PornographyRead the Press Release
CAMDEN, N.J. – A Camden County man was arrested for possessing multiple images and videos of child sex abuse, U.S. Attorney Philip R. Sellinger announced today.
Matthew Knapp, 38, of Lindenwold, New Jersey, is charged by complaint with one count of possession of child pornography. He made his initial appearance on Feb. 23, 2023, before U.S. Magistrate Judge Sharon A. King in Camden federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In February 2022, an undercover law enforcement officer conducted an online session using a publicly available peer-to-peer program, which allows internet users to trade digital files. A user shared multiple files featuring images or videos of child sexual abuse from an internet address traced to Knapp’s residence. On May 10, 2022, law enforcement officers executed a search warrant at Knapp’s residence and seized, among other things, a computer, three hard drives, and a flash drive that contained depictions of child sex abuse, including images of prepubescent children.
Knapp was convicted of aggravated indecent assault of a person less than 16 years of age in Bucks County, Pennsylvania, in 2007. For a repeat offender, the charge of possession of child pornography carries a mandatory minimum term of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine.
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 with the investigation leading to the arrest. U.S. Attorney Sellinger also thanked the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay; and the Lindenwold Police Department, under the direction of Chief of Police Michael McCarty Jr., for their assistance with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Camden.
The charge and allegations against the defendant are merely accusations, and he is presumed innocent unless and until proven guilty.