District of New Jersey
Press releases recorded for this federal judicial district.
Bergen County Man Charged for Possession of Machine Gun, Rifle, Handgun, and Fraudulent United States Marshals Service Credentials in Newark AirportRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was charged following his attempt to bring firearms, ammunition, a bulletproof vest, fraudulent law enforcement credentials, and other items on a domestic flight to Fort Lauderdale, Florida, U.S. Attorney Philip Sellinger announced today.
Seretse Clouden, 42, of Wallington, New Jersey, is charged by complaint with unlawful possession of firearms and ammunition by a convicted felon and fraudulent possession of an identification document and authentication feature of the United States. He made his initial court appearance today before the U.S. Magistrate Judge James B. Clarke III in Newark federal court and was detained.
According to the documents filed in this case and statements made in court:
On Dec. 30, 2022, Clouden entered Newark Liberty International Airport for a scheduled flight to Fort Lauderdale. During routine screening of checked luggage that was destined for Fort Lauderdale, Transportation Security Administration agents discovered two .40 caliber Glock magazines, each containing 15 rounds of .40 caliber ammunition and a ballistic vest carrier that displayed the words “Deputy Marshal.”
Further investigation revealed that the checked luggage belonged to Clouden, which resulted in additional screening of Clouden’s other luggage, which contained an ASP expandable baton, a spring loaded knife, a taser, a .40 caliber Glock 22 handgun, a .308 caliber DPMS Panther Arms rifle, and one 5.56 caliber AR-15 rifle, which meets the definition of a machine gun.
That luggage also contained “United States Marshal” credentials, bearing Clouden’s name and photograph, and a “United States Marshal” badge. An inquiry with the United States Marshals Service confirmed that Clouden is not, and was not, employed with the United States Marshal Service.
The count of unlawful possession of firearms and ammunition by a convicted felon carries a maximum potential penalty of 15 years in prison. The count of fraudulent possession of an identification document and authentication feature of the United States carries a maximum penalty of five years in prison and a $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; special deputies of the U.S. Marshals Service, under the direction of Marshal Juan Mattos; officers of the Port Authority Police Department, under the direction of Superintendent Edward Cetnar; and officers of the Transportation Security Administration.
The government is represented by U.S. Attorney Desiree Grace, Deputy Chief of the Criminal Division, and Jenny Chung, Assistant U.S. Attorney of the Office’s OCDETF/Narcotics Unit, in Newark.
Former New Jersey Resident Sentenced to Two Years in Prison for Conspiring to Distribute Fentanyl AnalogueRead the Press Release
A former New Jersey resident was sentenced on Feb. 23, 2023, to two years in prison for conspiring to distribute a fentanyl analogue. Darryl Hinkson, 47, formerly of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi on July 20, 2021, to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of a fentanyl analogue.
Philadelphia Man Sentenced to 20 Years in Prison for Role in Murder for HireRead the Press Release
NEWARK, N.J. – A Philadelphia man was sentenced today to 240 months in prison for conspiring with Sean Caddle and a longtime accomplice to murder one of Caddle’s associates, U.S. Attorney Philip R. Sellinger announced.
Bomani Africa, 62, of Philadelphia, Pennsylvania, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit murder for hire. Judge Vazquez imposed the sentence today in Newark federal court.
Caddle pleaded guilty on Jan. 25, 2022, before Judge Vazquez, to his role in the murder scheme and is scheduled to be sentenced on March 22, 2023.
According to documents filed in this case and statements made in court:
In April of 2014, Caddle solicited another conspirator, George Bratsenis, 74, of Monroe, Connecticut, to commit a murder on Caddle’s behalf in exchange for thousands of dollars. Bratsenis then recruited Africa, a longtime accomplice, 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, Africa and Bratsenis traveled from out of state to the victim’s apartment in Jersey City. After entering the apartment, Africa and Bratsenis stabbed the victim to death and then Bratsenis 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 Africa to five years of supervised release.
Bratsenis pleaded guilty to his role in the conspiracy on March 24, 2022, and is scheduled to be sentenced on March 29, 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 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 Sean Farrell, Chief of the New York Office of the U.S. Department of Justice, Antitrust Division.
New Jersey Doctor Admits Buying and Selling Oncology Medication for ProfitRead the Press Release
NEWARK, N.J. – A New Jersey doctor today admitted using his medical license – and allowing other to use his medical license – to purchase prescription oncology medications under false pretenses for the purpose of selling them for profit, U.S. Attorney Philip R. Sellinger announced.
Joel Lerner, 62, of Warren, New Jersey, a board-certified podiatrist and operator of a medical supply group purchasing organization, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with unlawfully selling prescription cancer medication, which had been previously purchased using his medical license and under the representation that such medication was to be used to treat his patients.
According to documents filed in this case and statements made in court:
While working in his medical practice’s offices in various locations in New Jersey, Lerner was recruited by an individual who owned a pharmacy and also owned and operated two businesses that were wholesale distributors of prescription drugs. At the request of this individual and others working with him, and in return for commissions and discounts on other medical supplies purchased by Lerner for his group purchasing organization, Lerner used his medical license – and allowed others to use it – to purchase expensive prescription drugs, primarily, cold-chain biologic infusion medications that typically are used to treat cancers, macular degeneration, and autoimmune diseases. By recruiting and using Lerner and his medical license to purchase the drugs, these individuals were able to obtain prescription drugs from the pharmaceutical manufacturers’ authorized distributors that they would not otherwise have been permitted to purchase. They were then able to sell them at a profit through their two businesses.
In purchasing the drugs, Lerner and the two individuals made numerous false and misleading representations to the pharmaceutical manufacturers and authorized distributors, including that Lerner purchased the drugs to use to treat his patients, and that the drugs would not be resold or redistributed. In actuality, none of the drugs were administered to Lerner’s patients, but were ultimately sold to customers of the two businesses for a profit. In an effort to obscure the fact that he was illegally buying and selling prescription drugs purchased under his medical license, Lerner sold and transferred the prescription drugs in the name of his group purchasing organization. The scheme ran from December 2014 through November 2018, during which more than $1.2 million in prescription drugs were purchased in Lerner’s name and using his medical license.
The sale of prescription drugs purchased by a healthcare entity is punishable by a maximum of three years in prison and a $10,000 fine. In his plea agreement, Lerner also agreed to make restitution for the full amount of any loss resulting from his offense. Sentencing is scheduled for July 18, 2023.
U.S. Attorney Sellinger credited special agents of the U.S. Food and Drug Administration’s Office of Criminal Investigations New York Field Office, under the direction of Special Agent in Charge Fernando P. McMillan; and special agents of U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Sara A. Aliabadi of the U.S Attorney’s Office in Camden.
U.S. Attorney Sellinger Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced that the U.S. Attorney’s Office for the District of New Jersey has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today.
The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
“The intent of this new policy is to incentivize corporate responsibility and a culture of compliance,” U.S. Attorney Sellinger said. “We hope that companies will come forward when misconduct occurs, and cooperate with the government so that individual wrongdoers can be held accountable. When they do, they will have a far better and more predictable outcome.”
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s Sept. 15, 2022, memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by – in the absence of any aggravating factor – fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50 percent below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50 percent and up to a 75 percent reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of U.S. Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of U.S. Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, U.S. Attorney Sellinger, and U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, and U.S. Attorney for the Western District of Virginia Christopher Kavanaugh. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
Ocean County Man Admits Sexually Exploiting MinorRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted coercing a minor into producing images of child sexual abuse, U.S Attorney Philip R. Sellinger announced.
Samuel Schwinger, 37, Lakewood, New Jersey, pleaded guilty before U.S. District Court Judge Georgette Castner in Trenton federal court to an information charging him with one count of sexual exploitation of a minor.
According to documents filed in the case and statements made in court:
In March 2019 used an internet-based application to communicate with the victim, who was under the age of 12. Schwinger asked the victim to make sexually explicit videos of the victim and send them to him. Schwinger admitted that from October 2018 through April 5, 2019, he communicated with more than 25 minor victims for the purpose of producing and distributing sexually explicit material.
The charge of sexual exploitation of a minor carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. Sentencing is scheduled for June 27, 2023.
U.S. Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Cherry Hill under the direction of Special Agent in Charge Ricky J. Patel in Newark; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; and the Lakewood New Jersey Police Department under the direction of Chief Gregory Meyer.
The government is represented by Assistant U.S. Attorney Michelle Gasparian, Chief of the General Crimes Unit.
Essex County Man Indicted in Scheme to Steal Checks and Defraud BanksRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was charged for his role in a scheme to steal and alter checks from the mail and fraudulently obtain funds from banks by depositing the stolen and altered checks, U.S. Attorney Philip R. Sellinger announced today.
Baba Diakite, 21, of East Orange, New Jersey, is charged by indictment with bank fraud conspiracy, conspiracy to commit mail theft and possess stolen mail, the theft and possession of a U.S. Postal Service (USPS) key, and aggravated identity theft. Diakite was previously charged by criminal complaint in February 2022.
According to documents filed in this case and statements made in court:
From January 2020 to March 2022, Diakite and others conspired to steal checks from the mail in Essex, Hudson, Middlesex, Passaic, Somerset, and Union counties, which they then sold to third parties or deposited, sometimes in altered or duplicate form, into the bank accounts of complicit accountholders who had provided access to their bank accounts for the scheme. They obtained stolen official USPS arrow keys, which Diakite and others used to access mail and steal checks directly from USPS receptacles. Diakite targeted the accounts associated with the checks he stole and created false identifications in the names of the accountholders, which his conspirators used to make fraudulent withdrawals from those accounts.
The count of bank fraud conspiracy is punishable by a maximum penalty of 30 years in prison. The count of conspiracy to commit mail theft and possess stolen mail is punishable by a maximum penalty of five years in prison. The count of theft and possession of stolen USPS keys is punishable by a maximum penalty of 10 years in prison. The count of aggravated identity theft is punishable by a statutory mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment. The bank fraud conspiracy count is also punishable by a fine of up to $1 million; all other charges are punishable by a maximum potential fine of up to $250,000 or twice the pecuniary gain or loss, whichever is greatest.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Christopher A. Nielsen, Philadelphia Division; 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, under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to the charges. He also thanked the Clifton Police Department, Hillside Police Department, Livingston Police Department, Millburn Police Department, Port Authority NY-NJ Police Department, Roselle Park Police Department, South Plainfield Police Department, Warren Township Police Department, and Watchung Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the Asset Recovery and Money Laundering Unit in Newark.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Three Hudson County Men Charged with Narcotics and Firearms Related Offenses Inside Jersey City Apartment BuildingRead the Press Release
NEWARK, N.J. – Three Hudson County, New Jersey, men were charged by complaint with narcotics and firearms related violations, U.S. Attorney Philip Sellinger announced today.
Shiquwan Johnson, aka “Big Shy,” 37, is charged with unlawful possession of firearms and ammunition by a convicted felon, possession with intent to distribute heroin and cocaine, and possession of firearms in furtherance of a drug trafficking crime. Johnson is associated with a neighborhood street gang that operates around the Bergen Avenue/Lexington Avenue area in Jersey City.
Douglas Sherman, aka “Dougie,” 40, is charged with maintaining a drug-involved premises.
Perry Capers, aka “Diddy,” 36, is charged with possession with intent to distribute heroin and cocaine. Capers is also associated with the neighborhood street gang that operates in and around Bergen Avenue and Lexington Avenue in Jersey City.
All three defendants appeared on Feb. 16, 2023, before U.S. Magistrate Judge Jessica S. Allen. Johnson and Sherman consented to detention and Capers was released and placed on home incarceration.
According to the documents filed in this case and statements made in court:
Law enforcement officers began investigating an apartment building in January 2023 and observed numerous hand-to-hand drug transactions on a near-daily basis. The investigation revealed multiple stash locations for narcotics and firearms in the building, including inside an apartment unit rented by Sherman, a pipe, and a mailbox associated with the apartment unit rented by Sherman. While executing search warrants on Feb. 15, 2023, law enforcement officers recovered hundreds of grams of suspected cocaine and tens of grams of suspected heroin, three firearms, and additional ammunition.
Johnson faces a mandatory minimum penalty of five years in prison and a maximum penalty of life in prison. Sherman and Capers face a maximum penalty of 20 years in prison.
U.S. Attorney Sellinger credited investigators the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to the charges. He also thanked special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Ricky J. Patel in Newark; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Bryan Miller; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, 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 Clara Kim of the Office’s OCDETF/Narcotics Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Monmouth County Doctor Admits Harboring Undocumented Workers from IndiaRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, doctor pleaded guilty today to harboring two undocumented women from India and failing to pay taxes on their wages, U.S. Attorney Philip R. Sellinger announced.
Harsha Sahni, 66, of Tinton Falls, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to an information charging her with one count of conspiracy to conceal and harbor aliens and one count of filing a false tax return.
According to documents filed in this case and statements made in court:
From 2013 through August 2021, Sahni conspired with others to conceal and harbor two foreign nationals from India, who Sahni recruited to work for Sahni and her family in their homes in New Jersey. Sahni harbored the victims for her and her conspirators’ financial gain and paid the victims’ families in India in exchange for their labor.
Sahni caused the victims to believe that they would be arrested and deported if they interacted with law enforcement. Sahni instructed the victims to tell other people that they were related to Sahni, and Sahni used fake names and addresses in furtherance of the conspiracy. From 2013 to 2019, Sahni also failed to pay certain taxes notwithstanding that the victims were Sahni’s household employees.
As a part of the plea agreement, Sahni has agreed to pay the victims a combined $642,212 and has agreed to pay up to $200,000 towards the treatment of one of the victim’s brain aneurysm. Sahni has also agreed to pay restitution to the IRS.
The count of conspiracy to conceal and harbor aliens carries a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross profits or other proceeds to Sahni, whichever is greatest. The count of conspiracy to conceal and harbor aliens carries a maximum penalty of three years in prison and a fine of up to $100,000. Sentencing is scheduled for June 20, 2023.
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; special agents of IRS - Criminal Investigation, New York Field Office, under the direction of Special Agent in Charge Thomas Fattorusso; and special agents of the U.S. Department of State, Diplomatic Security Service, New York Field Office, under the direction of Special Agent in Charge Keith J. Byrne, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jamie H. Solano of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Hudson County Man Admits Participation in Conspiracy to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted that he conspired to possess fentanyl with the intent to distribute, U.S. Attorney Philip R. Sellinger announced.
Miguel Polanco, 31, of Union City, New Jersey, pleaded guilty before U.S. District Court Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of a substance containing a detectable amount of fentanyl.
According to documents filed in this case and statements made in court:
In May 2021, U.S. Customs and Border Protection agents intercepted a package being shipped from Mexico City, Mexico, to Polanco at his apartment. Inspection of the package revealed that it contained a substance that tested positive for the presence of fentanyl.
Prior to receiving the package, Polanco received a video from a conspirator explaining how to properly remove the bags of fentanyl concealed inside the package to minimize the damage to its contents. Polanco also engaged in multiple conversations with conspirators where he learned of the quantity of fentanyl that would be sent to him as well as instruction on where to deliver the package after he received it. In exchange for receiving and transporting the package containing fentanyl, Polanco was to be paid.
The conspiracy charge carries a statutory minimum of five years in prison, a maximum of 40 years in prison and a maximum fine of $5 million, or twice the gross amount of any pecuniary gain, whichever is greater. Sentencing is scheduled for June 28, 2023.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark and Deputy Special Agent in Charge Alejandro Amaro in Laredo, Texas; U.S. Custom and Border Protection – (Laredo) under the direction of Port Director Albert Flores in Laredo and Port Director Tenavel Thomas in Newark; postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; and the Elizabeth Police Department, under the direction of Chief Giacommo Sacca, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Special Prosecutions Unit in Newark.
Defense counsel: Adam Axel Esq., Assistant Federal Public Defender, Newark
Former Office Manager of New Jersey Medical Practice Admits Conspiring with Doctor to Divert Controlled SubstancesRead the Press Release
NEWARK, N.J. – A former office manager of a New Jersey medical practice admitted conspiring with the doctor who owned the practice to distribute prescription amphetamine to patients without a legitimate medical reason, U.S. Attorney Philip R. Sellinger announced.
Noel DeLeon, 55, of North Arlington, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of knowingly and intentionally conspiring to distribute dextroamphetamine-amphetamine (brand name Adderall), a Schedule II controlled substance, outside the usual course of professional practice and not for a legitimate medical purpose.
According to documents filed in this case and statements made in court:
From January 2018 to March 2021, DeLeon worked as an office manager for a New Jersey medical practice owned by a doctor. The doctor performed no meaningful evaluation of patients and the interactions between the doctor and patients generally took less than five minutes. The medical practice kept inadequate patient medical records. For some patients, the patient files only contained contact and prescription information, but did not detail any meaningful evaluation or assessment. For other patients, no patient files were kept.
After prescribing medications to a patient, including high dosage amphetamines, DeLeon or the doctor would typically collect a cash payment from the patient before providing the prescription. For prescription refills, patients would also contact DeLeon directly by sending text messages to his personal cellular phone. DeLeon would order the prescription refill at the patient’s pharmacy and collect payment from the patient, typically through an electronic payment application on DeLeon’s personal cellular phone. At times, certain patients provided cash bribes to DeLeon in order to receive their prescription refills faster.
The charge of conspiracy to distribute amphetamines carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for June 22, 2023.
U.S. Attorney Sellinger credited diversion investigators and special agents of the Drug Enforcement Administration, under the direction of Acting SAC Daniel J. Kafafian, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Adam Baker of the Opioid Abuse Prevention and Enforcement Unit in Newark.
Defense counsel: Tess Cohen Esq., New York
Doctor Admits Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A doctor who owns a medical clinic in Newark 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.
Saurabh Patel, 51, of Woodbridge, New Jersey, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiring to commit health care fraud. Saurabh Patel was previously charged by indictment with conspiring in the health care fraud scheme with a family member, Kaival Patel, 52, of West New York, New Jersey. Kaival Patel was also charged with conspiracy to commit money laundering, substantive counts of money laundering, and making false statements to federal agents. The charges against Kaival Patel are merely accusations, and he is presumed innocent unless and until proven guilty. He is scheduled to proceed to trial later this year.
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.
Patel is a medical doctor who owns and operates a clinic in Newark. Despite having no background in pharmaceuticals or medicine, Kaival Patel and his wife created and operated a company called ABC Healthy Living LLC (ABC) to market medical products and services, including compound prescription medications. A pharmaceutical sales representative, Paul Camarda, also created a company and worked with Kaival Patel to promote compound medications. Camarda pleaded guilty before Judge Kugler in Camden federal court on July 6, 2021, to health care conspiracy and conspiring to commit money laundering and obstruct justice. He awaits sentencing.
The conspirators learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compound medications. Kaival Patel and Camarda approached Saurabh Patel and convinced him to authorize prescriptions for the compound medications for which they received commissions, regardless of whether or not those prescriptions were medically necessary. The conspirators steered individuals who were paid to receive the compound medications to Saurabh Patel’s medical practice for the purpose of receiving his authorization on the fraudulent prescriptions. This enabled Saurabh Patel to receive insurance payments for those patient visits and procedures. In addition to the people steered to Saurabh Patel’s medical practice as part of the scheme, Kaival Patel also instructed Saurabh Patel on which insurance companies covered the compound medications and requested that he prescribe those medications to existing patients of his practice with those insurance plans in order to further benefit Kaival Patel and his wife.
Saurabh Patel faces a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for June 27, 2023.
Attorney for the United States Khanna credited agents of the IRS Office of Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark; FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy 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.
The charges and allegations against Kaival Patel are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel:
Mary E. Toscano Esq. and Joseph B. Shumofsky Esq., Newark
Co-Owner of Multiple Companies Sentenced to 12 Months and A Day in Prison for Failing to Pay over $1 Million in Payroll TaxesRead the Press Release
A co-owner of multiple businesses was sentenced today to 12 months and a day in prison and two years of supervised release for failing to pay over $1 million in payroll taxes for his companies. Omar Mostafa, 57, of New Jersey, pleaded guilty on Aug. 8, 2022, before U.S. District Judge Georgette Castner to an information charging him with willful failure to collect or pay taxes.
U.S. Attorney’s Office Reaches Settlement with Ocean County Nail Salon to End Disability DiscriminationRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office has reached settlement with an Ocean County, New Jersey, nail salon to resolve allegations that the salon discriminates against individuals with mobility impairments in violation of the Americans with Disabilities Act of 1990 (ADA), U.S. Attorney Philip R. Sellinger announced today.
Under the settlement, USA Nails Inc. of Point Pleasant, New Jersey, agrees to adopt and post in a conspicuous place a non-discrimination policy, to train current and future employees on the requirements of Title III of the ADA, and to pay $1,000 in damages to the individual complainant in this matter. Title III prohibits disability discrimination in places of public accommodation, like nail salons. The settlement resolves allegations that USA Nails discriminated against persons with mobility impairments by refusing nail services those using a wheelchair.
“Disability discrimination violates the ADA and cannot be tolerated,” U.S. Attorney Philip R. Sellinger said. “This agreement ensures that customers will not be turned away from receiving nail services simply because they happen to have a disability.”
The Department of Justice’s enforcement efforts under the ADA seek equal opportunity and dignity in all aspects of life, including access to public accommodations such as nail salons. This settlement agreement is the third agreement that the Department of Justice has reached with a nail salon through its U.S. Attorney Program for ADA Enforcement, and the first in the District of New Jersey. In June 2021, the U.S. Attorney’s Office for the Middle District of North Carolina entered a settlement agreement resolving an allegation that a nail salon in Durham, North Carolina, refused to provide services to an individual with HIV. And in June 2022, the U.S. Attorney’s Office for the Eastern District of Louisiana reached a settlement agreement with a nail salon in Harahan, Louisiana, to resolve an allegation that an individual was refused services because of the inability to transfer out of their wheelchair.
In 2022, U.S. Attorney Sellinger created a Civil Rights Division with the sole focus on enforcing federal civil rights laws, including the ADA, with the goal of protecting and upholding the civil rights of those in our community. Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
The government is represented by Senior Civil Rights Counsel Kelly Horan Florio of the U.S. Attorney’s Office Civil Rights Division in Newark.
Russian National Charged with Bank Fraud Related to Hacking CampaignRead the Press Release
NEWARK, N.J. – A Russian national was charged in an indictment unsealed today in connection with a series of computer system intrusions that occurred in 2009 and 2010, U.S. Attorney Philip R. Sellinger announced.
Vitaly Kovalev, aka “Bentley,” “Bergen,” and “Alex Konor,” is charged with conspiracy to commit bank fraud and eight counts of bank fraud.
According to the indictment:
From as early as September 2010, Kovalev participated in a conspiracy to obtain unauthorized access to bank accounts held at United States-based financial institutions and transfer funds from those accounts to accounts controlled by Kovalev and his conspirators. Kovalev and his conspirators gained unauthorized access to accounts and made unauthorized transfers of funds into other bank accounts established by, and at the direction of, Kovalev, solely for the purpose of receiving the stolen funds. At the direction of Kovalev, the funds would then be withdrawn or transferred out of these accounts. Kovalev and his conspirators were able to transfer without authorization nearly $1 million from the victim bank accounts, at least $720,000 of which was transferred overseas.
The substantive and conspiracy charges of bank fraud are punishable by a maximum sentence of 30 years in prison and a maximum fine of $1 million.
U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Jose Riera, with the investigation.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore, Chief of the Cybercrime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Passaic County Lawyer Charged with Fraud in Connection with COVID-19 Relief FundsRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, attorney was arrested today for fraudulent acts he committed in connection with COVID-19 relief funds, U.S. Attorney Philip R. Sellinger announced.
Morton Chirnomas, 60, of Clifton, New Jersey, is charged by complaint with one count of wire fraud. He is scheduled to appear before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the complaint:
From May 2020 to September 2020 Chirnomas fraudulently obtained a $150,000 loan through the COVID-19 Economic Injury Disaster Loans program. He also falsely obtained $200,000 in unemployment insurance benefits using the names of other people.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, twice the gross profits, or twice the gross loss suffered by the victims of the offense, whichever is greatest.
U.S. Attorney Sellinger credited postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Hudson County Man Admits Soliciting and Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted soliciting victims online to send images and videos of sexually explicit conduct, and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
Erick Solis, 25, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of solicitation of child pornography and one count of possession of child pornography.
According to the documents filed in this case and statements made in court:
From July 2020 to February 2021, Solis used a social media application to engage two underage victims in sexually explicit conversations. Solis requested that both victims take sexually explicit photographs and videos of themselves and send them to him.
The count of solicitation of child pornography carries a mandatory minimum penalty of five years in prison, a maximum of 20 years in prison and a $250,000 fine. The count of possession of child pornography carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for June 21, 2023.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Office’s OCDETF/Narcotics Unit.
Union County Investment Advisor Admits Stealing Client MoneyRead the Press Release
NEWARK, N.J. – A former investment advisor who stole over $600,000 from his clients to fund his gambling and personal expenses has pleaded guilty, U.S. Attorney Philip R. Sellinger announced today.
Mario E. Rivero Jr., 39, of Elizabeth, New Jersey, pleaded guilty on Feb. 2, 2023, before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count each of wire fraud and securities fraud.
According to documents filed in this case and statements made in court:
From April 2018 through November 2020, Rivero, while serving in his capacity as an investment advisor employed by a large brokerage firm, misappropriated $626,478 from five clients. Rivero, who had been entrusted to manage client funds responsibly, instead perpetrated a scheme to defraud multiple clients. He obtained his clients’ money under the fraudulent pretense that he would invest the funds, but instead, Rivero unlawfully diverted the funds to enrich himself and others.
The wire fraud and security fraud counts each carry a maximum potential penalty of 20 years in prison and maximum fines of $1 million, and $5 million, respectively. Sentencing is scheduled for June 27, 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 postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes, Chief of the OCDETF/Narcotics Unit in Newark.
Camden County Man Admits Hiring Hitman via InternetRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man today admitted paying $20,000 in bitcoin to have a 14-year old child murdered, U.S. Attorney Philip R. Sellinger announced.
John Michael Musbach, 31, of Haddonfield, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an indictment charging him with one count of knowingly and intentionally using and causing another to use a facility of interstate and foreign commerce, that is the internet, with the intent that a murder be committed.
According to documents filed in this case and statements made in court:
In the summer of 2015, Musbach exchanged via the internet sexually explicit photographs and videos with the victim, a 13-year-old living in New York. The victim’s parents found out about the inappropriate contact and contacted the local police. Upon identifying Musbach, then a resident of Atlantic County, New Jersey, New York law enforcement officers reached out to the Atlantic County Prosecutor’s Office (ACPO). In March 2016, officers from the ACPO arrested Musbach on child pornography charges and executed a search warrant at his residence, then in Galloway, New Jersey.
Musbach decided to have the victim killed so that the victim could not testify against him in the pending criminal case. During the period from May 7, 2016, through May 20, 2016, Musbach repeatedly communicated with the administrator of a murder-for-hire website, which operated on the dark net, and which purported to offer contract killings or other acts of violence in return for payment in cryptocurrency, and arranged for a murder-for-hire. Musbach asked if a 14-year-old was too young to target, and upon hearing that the age was not a problem, paid approximately 40 bitcoin (approximately $20,000 at the time) for the hit. Musbach repeatedly messaged the website’s administrator following up on the hit and asking when it would occur. When pressed for an additional $5,000 to secure the hit, Musbach eventually sought to cancel and asked for a refund of his $20,000. The website’s administrator then revealed that the website was a scam and threatened to reveal Musbach’s information to law enforcement.
The charge of use of interstate commerce facilities in the commission of murder-for-hire is punishable by a maximum potential penalty of 10 years in prison and a fine of the greater of $250,000, twice the gross profits to Musbach or twice the gross losses to the victim of his offense. Sentencing is scheduled for June 13, 2023.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark and Special Agent in Charge Tracy Cormier in St. Paul, Minnesota, with the investigation leading to today’s guilty plea. He also thanks the Atlantic County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig in Camden.
Passaic County Man Arrested for Attempt to Firebomb SynagogueRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was arrested today for attempting to firebomb an Essex County, New Jersey, synagogue, U.S. Attorney Philip R. Sellinger announced.
Nicholas Malindretos, 26, of Clifton, New Jersey, is charged by complaint with one count of attempted use of fire to damage and destroy a building used in interstate commerce. He is scheduled to have his initial appearance in Newark federal court before U.S. Magistrate Judge Edward S. Kiel on Feb. 2, 2023.
“No one should find that their lives are at risk by exercising their faith,” U.S. Attorney Sellinger said. “The defendant is alleged to have gone to a synagogue in the middle of the night and maliciously attempted to damage and destroy it using a firebomb. Protecting communities of faith and houses of worship is core to this office’s mission. In response to this attempted attack, my office – together with our federal, state, and local partners – worked around the clock to investigate this matter swiftly. We will continue to devote whatever resources are necessary to keep our Jewish community and all New Jersey residents safe.”
“I commend and thank the entire New Jersey law enforcement community for their seamless collaboration and tireless efforts to identify and apprehend the suspect in Sunday’s attack on Temple Ner Tamid,” New Jersey Attorney General Matthew J. Platkin said. “In New Jersey, we stand united against hate and bias, and we speak with one voice to show that our state will remain a place where all can live and worship freely and safely.”
“Newark FBI and our law enforcement partners have been working around the clock since Sunday morning, after being notified someone targeted the Temple Ner Tamid in Bloomfield,” FBI Special Agent in Charge James E. Dennehy said. “We allege Mr. Malindretos threw a Molotov cocktail at the doors of the synagogue. The speed and intensity of this investigation demonstrates our determination and dedication to protecting houses of worship and protecting their congregations. We take seriously all threats of hate and bias aimed at all religions and faiths, and we intend to hold accountable all those who target them.”
“An alleged attempted firebombing on a house of worship is an attack against the entire community,” acting Special Agent in Charge Bryan Miller of the Bureau of Alcohol, Tobacco, Firearms, and Explosives said. “We are honored to work side by side with our local, state, and federal partners to bring today’s charge.”
“The Essex County Prosecutor's Office has long understood that our interfaith community is one of the prime targets for hate,” Acting Prosecutor Theodore N. Stephens II said. “Although we are always troubled by events such as this, we are pleased by the extraordinary efforts undertaken by all involved in Essex County law enforcement to bring this charge.”
According to documents filed in this case and statements made in court:
On Jan. 29, 2023, at 03:19 a.m., a surveillance camera at the Temple Ner Tamid Jewish Congregation in Bloomfield, New Jersey, recorded a person later identified as Malindretos as he approached the temple. He was wearing a black ski mask, a black or dark gray hooded sweatshirt with a white emblem of what appeared to be a skull and cross bones, black pants, dark shoes, and white gloves. The video showed Malindretos walking up to the front entrance area of the temple, pausing, and then igniting a wick on the top of a bottle. He then threw the bottle at the front glass doors of the temple and fled on foot.
A license plate reading device located nearby recorded a vehicle passing by shortly before and shortly after the incident. Law enforcement officers located the vehicle in Clifton and saw several items consistent with the video of the incident plainly visible inside. They obtained a search warrant for the vehicle. Video cameras in the area where the vehicle was parked captured the vehicle parking and a male individual with the same physical characteristics as Malindretos exiting the vehicle and entering a nearby building.
The count of attempted use of fire to damage and destroy a building used in interstate commerce is punishable by a minimum of five years in prison, a maximum of 20 years in prison and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting of Special Agent in Charge Miller in Newark; the New Jersey Department of Law and Public Safety, under the direction of Attorney General Platkin; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Stephens, and the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office’s Civil Rights Division.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New York Man Admits Distributing Fentanyl in New JerseyRead the Press Release
NEWARK, N.J. – A New York man today admitted distribution and possession with the intent to distribute fentanyl, U.S. Attorney Philip R. Sellinger announced.
Jose Migel Cleto, 64, of Manhattan, New York, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of distribution and possession with the intent to distribute a mixture and substance containing a detectable amount of fentanyl.
According to documents filed in this case and statements made in court:
In April 2022, Cleto distributed, and possessed with the intent to distribute, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl to a man in a commercial parking lot in Fort Lee, New Jersey.
Cleto faces a maximum punishment of 20 years in prison and a maximum fine of up to $1 million. Sentencing is scheduled for June 21, 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, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Vincent D. Romano of the U.S. Attorney’s Office General Crimes Unit in Newark.
Four New Jersey Men Charged with Roles in ‘Ghost Gun’ Trafficking NetworkRead the Press Release
NEWARK, N.J. – Four members of a gun manufacturing and trafficking network in Passaic and Hudson counties have been charged with weapons offenses related to the fabrication and sale of personally made firearms (PMFs), commonly known as “ghost guns,” U.S. Attorney Philip R. Sellinger announced today.
Savion Clyburn, 20, and Corey Jenkins Jr., 30, both of Paterson, New Jersey; Richard Mullane, 26, of Bayonne, New Jersey; and Julian Santiago, 26, of Jersey City, New Jersey, are charged by complaint with conspiracy to engage in unlicensed firearms dealing and manufacturing and engaging in unlicensed firearms dealing and manufacturing, including by manufacturing and subsequently selling PMFs. Santiago is also charged with transferring a firearm to a felon. The defendants are scheduled to appear today before U.S. Magistrate Edward S. Kiel in Newark federal court.
According to documents filed in this case and statements made in court:
Beginning in December 2022, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), along with state and local law enforcement agencies, began investigating a firearms trafficking network, operating largely in Paterson and Bayonne, that included Clyburn, Jenkins, Mullane, and Santiago. During December 2022 and January 2023, law enforcement conducted at least nine controlled purchases which resulted in the recovery of 12 firearms, including 11 PMFs and one serialized Kel-Tec SUB-2000 Rifle, as set forth below:
Date
Defendant(s)
Firearm(s) Purchased
Week of Dec. 18, 2022
Clyburn
Jenkins
Two PMFs
Dec. 28, 2022
Santiago
One PMF
Jan. 3, 2023
Santiago
Jenkins
One PMF
Jan. 5, 2023
Clyburn
Jenkins
One PMF
Jan. 7, 2023
Santiago
Jenkins
Mullane
One PMF
Jan. 9, 2023
Clyburn
Jenkins
Mullane
Two PMFs
Jan. 17, 2023
Clyburn
Jenkins
Two PMFs
Jan. 17, 2023
Clyburn
One Kel-Tec SUB-2000 Rifle, bearing Serial No. EGN69
Jan. 25, 2023
Jenkins
Mullane
One PMF
Law enforcement officials have recovered PMFs that were customized with different colors and designs, and two of which were threaded for silencers.
All four defendants face a maximum prison sentence of five years and a maximum fine of up to $250,000 on each of Counts One and Two. Defendant Santiago faces a maximum prison sentence of 10 years and a fine of up to $250,000 on Count Three.
U.S. Attorney Sellinger credited special agents of ATF, under the direction of Acting Special Agent in Charge Bryan Miller in Newark; the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik; the Passaic County Prosecutor’s Office; under the direction of Prosecutor Camelia M. Valdes; the Passaic Police Department, under the direction of Chief Luis A. Guzman; the Paterson Police Department, under the direction of Acting Chief Bert Ribeiro; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation leading to the charges. He also thanked the Elizabeth, Plainfield, Hillside, Bayonne and East Orange police departments, Immigration and Customs Enforcement, the New Jersey State Police, the Hudson County Prosecutor’s Office and the U.S. Marshals Service.
The government is represented by Assistant U.S. Attorney Matt Belgiovine of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Saudi Arabian National Charged with Interstate Transportation of Stolen School BusRead the Press Release
NEWARK, N.J. – A Saudi Arabian man was charged for transporting a stolen school bus across state lines, U.S. Attorney Philip R. Sellinger announced today.
Bader Alzahrani, 22, of Saudi Arabia, is charged by complaint with one count of receipt of a stolen vehicle and one count of transportation of a stolen vehicle. He is scheduled to make his initial appearance this afternoon U.S. Magistrate Judge Edward S. Kiel in Newark federal court.
According to documents filed in this case and statements made in court:
On Jan. 15, 2023, a break-in was reported in an unoccupied residential home in Livingston, New Jersey. During a search of a backpack in that home, law enforcement saw a Saudi Arabian passport with the name Bader Alzahrani, along with other items that appeared to belong to Alzahrani. On Jan. 17, 2023, the Livingston Board of Education reported that a school bus was stolen from a parking lot across the street from the unoccupied residential home where the break-in was reported. Law enforcement officers located Alzahrani in Stroudsburg, Pennsylvania, and was later found to be in possession of the keys to the stolen school bus.
Each count charged in the complaint is punishable by a maximum penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked agents of the FBI Field Office in Washington, D.C., under the direction of Assistant Director in Charge Steven D’Antuono; members of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel; members of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; members of the Monroe County, Pennsylvania, Office of the District Attorney, under the direction of District Attorney E. David Christine, Jr.; members of the Livingston Police Department, under the direction of Police Chief Gary Marshuetz; and members of the New Jersey State Police, under the direction of Col. Patrick J. Callahan.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office’s National Security 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.+
Statement of U.S. Attorney Philip R. SellingerRead the Press Release
NEWARK, N.J. – Philip R. Sellinger, United States Attorney for the District of New Jersey, issued the following statement today:
Like so many around the country, we are deeply disturbed by the circumstances surrounding the tragic death of Tyre Nichols. Shortly after his death, the U.S. Attorney’s Office in the Western District of Tennessee and the Justice Department’s Civil Rights Division opened a criminal civil rights investigation. We express support for our colleagues who are working hand in hand with the FBI and other law enforcement partners. We have no doubt that their investigation will be thorough and methodical, and they will make decisions based on the facts and the law. In addition to the federal investigation, several officers are now facing prosecution for state charges.
We appreciate the significant public interest in this matter. We want to make clear that the U.S. Attorney’s Office respects the right of all people to assemble and protest peacefully. As Tyre Nichols’ family has urged, we urge that any protests remain peaceful and nonviolent.
We will also continue to protect civil rights and work to ensure justice for all in New Jersey. Where law enforcement officers abuse their authority by violating the constitutional rights of our citizens, it undermines all other law enforcement officers who lawfully perform their duties with dignity and respect. The U.S. Attorney’s Office has prioritized civil rights investigations and prosecutions of any public employee who violates this public trust.
Last year, I created a Civil Rights Division at the U.S. Attorney’s Office with the sole focus of enforcing and protecting federal civil rights. Individuals who believe they may have been victims of civil rights violations 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.
Two Individuals Admit Participating in Health Care Fraud and Kickback SchemesRead the Press Release
NEWARK, N.J. – An Indiana man and an Arizona man yesterday admitted their roles in a health care fraud conspiracy in which they received payment for doctors’ orders for durable medical equipment (DME), namely orthotic braces, and genetic test referrals, U.S. Attorney Philip R. Sellinger announced.
Scott Wohrman, 50, of Florence, Arizona, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to violate the Federal Anti-Kickback statute and one count of conspiracy to commit health care fraud. On Jan. 24, 2023, David Heneghan, 53, of Indianapolis, Indiana, pleaded guilty to conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:Heneghan and Wohrman operated American Health Screening (AHS), a company that purportedly provided marketing services to laboratories. From July 2020 through January 2021, Heneghan, Wohrman, and others agreed to engage in a scheme to provide DME orders and genetic testing referrals for Medicare beneficiaries in exchange for kickbacks of approximately $1,500 per patient or for each test that resulted in a reimbursement from Medicare. Heneghan and Wohrman entered into a sham contract and utilized fraudulent invoices to make it appear that AHS was being paid for legitimate services and to conceal their fraudulent kickback scheme. Heneghan and Wohrman received kickbacks of at least $547,310 for durable medical equipment and at least $18,319 for genetic testing. Heneghan and Wohrman’s scheme resulted in an actual loss to Medicare of at least $565,629.
Heneghan and Wohrman previously pleaded guilty in the Northern District of Texas to an information charging them with conspiracy to defraud the Federal Anti-Kickback statute.The count of conspiracy to commit health care fraud carries a maximum potential punishment of 10 years in prison. The count of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years in prison. Both offenses are also punishable by a fine of $250,000 or twice the gross gain or loss from the offense. Sentencing for Heneghan and Wohrman is scheduled for September 6, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. 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, Northeast Field Office, under the direction of Special Agent in Charge Patrick Hegarty; the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office under the direction of Special Agent in Charge Christopher Algieri with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.
Defense counsel:
Heneghan: Aaron M. Cohen Esq., Delray Beach, Florida
Wohrman: Michael Hursey Esq., and Paul Molle Esq., Ft. Lauderdale, FloridaFormer Hillsborough Township School District Official Admits to Paying Kickbacks for Illegal Overtime PaymentsRead the Press Release
Trenton, N.J. – A Somerset County, New Jersey man yesterday admitted to paying kickbacks in return for fraudulent overtime payments that he received in connection with his former role as the Director of Buildings and Grounds for the Hillsborough Township School District, U.S. Attorney Philip R. Sellinger announced today.
Anthony DeLuca, 61, of Raritan, New Jersey, pleaded guilty before Senior U.S. District Judge Peter G. Sheridan to one count of embezzling, stealing, and obtaining by fraud more than $137,000 of funds belonging to and under the care, custody and control of the Hillsborough Township School District, in violation of Title 18, United States Code, Section 666(a)(1)(A).
According to the documents filed in this case:
DeLuca, a long-term employee of the Hillsborough Township School District, was promoted to the position of Director of Buildings and Grounds in approximately July 2019, a salaried position that did not entitle him to overtime pay. Nevertheless, shortly after assuming this position, the School District employee to whom DeLuca reported (referred to as “Individual 1” in the Information) began directing DeLuca to claim that DeLuca was entitled receive overtime payments, including for hours which substantially exceeded those that DeLuca actually worked. DeLuca submitted these claims to Individual 1 who then authorized overtime payments for DeLuca in return for cash kickbacks.
DeLuca admitted in court yesterday that upon receiving the overtime payments approved by Individual 1, DeLuca would typically withdraw cash from his bank account to provide kickbacks to Individual 1. DeLuca stated that Individual 1 would designate the location to which DeLuca should deliver envelopes containing the cash kickbacks, including the console of Individual 1’s vehicle and a drawer in Individual 1’s office desk. DeLuca admitted that through this scheme he received in excess of $137,000 in overtime payments to which he was not entitled and that he provided Individual 1 with at least $39,800 in kickbacks between July 2019 and January 2022.
DeLuca faces a maximum penalty of ten years in prison and maximum fine of 250,000. Sentencing is scheduled for June 1, 2023.
U.S. Attorney Sellinger credited agents of the Federal Bureau of Investigation under the direction of Special Agent in Charge James E. Dennehy in Newark; the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark; and the Somerset County Prosecutor’s Office, under the direction of Prosecutor John P. McDonald, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Office’s Special Prosecutions Division in Newark.
The charges and allegations contained in the Information pertain to Anthony DeLuca and any other individuals referenced are presumed innocent unless and until those individuals are proven guilty.
Defense counsel: S. Emile Lisboa IV, Esq., Hackensack, NJ
Sussex County Woman Sentenced to 34 Months in Prison for Concealing Terrorist Financing to Syrian Foreign Terrorist OrganizationsRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, woman was sentenced today to 34 months in prison for concealing her attempts to provide material support to Syrian foreign terrorist organizations, U.S. Attorney Philip R. Sellinger, Assistant Attorney General Matthew G. Olsen of the U.S. Department of Justice’s National Security Division, FBI-Newark Special Agent in Charge James E. Dennehy, and FBI Assistant Director for Counterterrorism Timothy Langan announced.
Maria Bell, aka “Maria Sue Bell,” 55, of Hopatcong, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging her with one count of concealing attempts to provide material support to designated foreign terrorist organizations. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents previously filed in this case:
Bell admitted that from February 2018 to November 2018 she knowingly concealed and disguised the nature, location, source, ownership and control of the attempted provision of material support and resources to fighters based in Syria who were members of Jabhat Fath al-sham, also known as Jabhat Fateh al-Sham (JFS) and Hay’at Tahrir al-Sham (HTS). Bell admitted that she knew JFS and HTS were designated foreign terrorist organizations, that JFS and HTS has engaged or engages in terrorist activities. She admitted the offense to which she pleaded guilty involved the concealment of the attempted provision of funds or other material support or resources with the intent, knowledge, or reason to believe they were to be used to commit or assist in the commission of a violent act.
In addition to the prison term, Judge Vazquez sentenced Bell to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge Dennehy, and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to today’s sentencing.
The government is represented by Joyce M. Malliet, Chief of the U.S. Attorney’s Office’s National Security Unit and Trial Attorneys Brenda Sue Thornton and Kathleen Campbell of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
Cumberland County Man Sentenced Today to 114 Months in Prison on Drug ChargesRead the Press Release
A Cumberland County, New Jersey, man was sentenced today to 114 months in prison and six years of supervised release for conspiring with others to obtain and distribute several kilograms of cocaine and violating the conditions of his supervised release from a prior conviction for conspiring to distribute cocaine. Lavinston Lamar, 40, of Bridgeton, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court on May 5, 2022.
Brooklyn Man Indicted for Interstate Transportation of Stolen GoodsRead the Press Release
NEWARK, N.J. – A federal grand jury indicted a Brooklyn, New York, man for transporting stolen jewelry across state lines, U.S. Attorney Philip R. Sellinger announced today.
Tony Newton, 63, of Brooklyn, New York, is charged by indictment with two counts of interstate transportation of stolen goods. Newton was charged by criminal complaint in July 2022 for transporting stolen jewelry from a store located in a shopping center in Edison, New Jersey, to Brooklyn, and is detained.
According to documents filed in this case and statements made in court:
On June 1, 2022, and July 16, 2022, Newton transported stolen jewelry across state lines from Middlesex County, New Jersey, and Union County, New Jersey, respectively, to New York.
Each count of interstate transportation of stolen goods is punishable by a maximum penalty of 10 years in prison and $250,000 fine.
U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Union County Prosecutor's Office, under the direction of Prosecutor William Daniel, officers of the Edison Police Department, under the direction of Chief of Police Tom Bryan; and officers of the Elizabeth Police Department, under the direction of Director Earl Graves and Chief Giacomo Sacca, with the investigation leading to the charges. He also thanked officers of the Suffolk County, New York, Police Department and the Milford, Connecticut, 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 charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Three Members of Jersey City Gang Charged for Roles in Drug Distribution Conspiracy and Related Firearms OffensesRead the Press Release
NEWARK, N.J. – Three members of a Jersey City street gang were charged today for their roles in a cocaine distribution organization, as well as for firearms violations, U.S. Attorney Philip Sellinger announced.
Rodney Broadway, aka “Banks,” 31; Parish George, aka “P Money,” 31; and Dejahn Ingram, aka “Fresh,” 32, all of Jersey City, New Jersey, are each charged by complaint with one count of conspiracy to distribute 500 grams or more of cocaine. George and Ingram are charged with unlawful possession of firearms as convicted felons, and Broadway is charged with unlawful possession of ammunition as a convicted felon. Broadway and George are also charged with possession with intent to distribute cocaine. All three defendants appeared today before U.S. Magistrate Judge André M. Espinosa in Newark federal court and were detained.
According to the documents filed in this case and statements made in court:
The three defendants are associated with a neighborhood street gang that operates in and around the Salem Lafayette Apartments in Jersey City. At the time of their arrests on Jan.19, 2023, George and Ingram each possessed a loaded firearm. Search warrants executed at multiple residences associated with Broadway, George, and Ingram revealed a significant quantity of cocaine, hundreds of rounds of ammunition, and other paraphernalia.
The defendants each face a mandatory minimum term of five years in prison and a maximum term of 40 years in prison.
U.S. Attorney Sellinger credited special agents of HSI Newark, under the leadership of Special Agent in Charge Ricky J. Patel, and investigators the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to the charges. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Acting Special Agent in Charge Bryan Miller, special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, 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 Dong Joo Lee of the Office’s OCDETF/Narcotics Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three Additional Individuals Sentenced for Participating in $10 Million Multi-State Bank Fraud ConspiracyRead the Press Release
TRENTON, N.J. – Two Michigan men and an Ohio man were sentenced for their roles in a large-scale conspiracy to commit bank fraud in several states, including New Jersey, New York, Pennsylvania, Maryland, Ohio, Virginia, and Michigan, U.S. Attorney Philip R. Sellinger announced today.
Syed Abbas, 33, of Westerville, Ohio, was sentenced by videoconference on Jan. 19, 2023, to 16 months in prison. Rana Sharif, 39, of Dearborn Heights, Michigan, and Awaise Dar, 35, of Woodbridge, Virginia, were sentenced by videoconference on Jan. 16, 2023 and Jan. 17, 2023, respectively, to 20 months each in prison. All three individuals previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to informations that charged them with conspiracy to commit bank fraud. Judge Wolfson imposed the sentences.
According to documents filed in this case and statements made in court:
From 2018 through April 2020, Abbas, Sharif, Dar, and others conspired to defraud several major banks and electronic merchant processors. The defendants established bank accounts associated with sham entities that had no legitimate purpose and then issued checks payable to other shell companies associated with the criminal organization, knowing that the payor accounts had insufficient funds. The conspirators also conducted numerous fraudulent credit card and debit card transactions between shell companies to credit payee accounts and fraudulently overdraw payor accounts. Members of the conspiracy also used these shell companies to execute temporary refund credits, commonly referred to as “charge-backs,” to checking accounts associated with the criminal organization, where no prior legitimate transaction had occurred.
The conspirators withdrew the “existing” funds (through ATMs or bank tellers) that banks and or merchant processors had credited to the payee bank accounts at the time of the fraudulent transaction. Because the conspirators withdrew the credited funds from the payee accounts before the banks could recognize the fraudulent transactions, the banks and merchant processors were left with substantial losses.
Law enforcement officials identified approximately 200 bank accounts and 75 merchant credit card processing accounts used to facilitate the conspiracy’s fraudulent schemes. The conspirators’ unlawful activities attempted to cause a $10 million loss on financial institutions and did in fact cause a loss of approximately $3.5 million.
In addition to the prison term, Chief Judge Wolfson sentenced each defendant to three years of supervised release. Chief Judge Wolfson also ordered each defendant to pay restitution. Abbas was ordered to pay restitution in the amount of $530,523. Sharif was ordered to pay restitution in the amount of $2.38 million. Dar was ordered to pay restitution in the amount of $2.42 million.
Abbas, Sharif, and Dar are among the nine individuals that have been sentenced in the District of New Jersey as part of the criminal scheme
U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark; Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to the sentencings.
The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.
New Jersey Tax Preparer and Arizona Man Charged with Conspiracy to Defraud and Identity TheftRead the Press Release
NEWARK, N.J. – A New Jersey tax preparer and an Arizona man were charged for their roles in conspiracies to commit wire fraud and defraud the IRS, and for aggravated identity theft, U.S. Attorney Philip R. Sellinger announced today.
Omar Khater, 32, of Fairfield, New Jersey, and Walid Khater, 37, of Mesa, Arizona, are each charged by complaint with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS, and one count of aggravated identity theft. Omar Khater is scheduled to make his initial appearance before U.S. Magistrate Judge Andre M. Espinosa in Newark federal court. Walid Khater is expected to appear on Jan. 19, 2023, before a U.S. Magistrate Judge in federal court in Arizona.
According to documents filed in this case and statements made in court:
Omar and Walid Khater were relatives who worked together and with others to steal victims’ identities, which they used to file false tax returns and fraudulently receive tax refunds from the IRS. They electronically submitted tax documents to the IRS falsely claiming that the individual taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings. The false filings also claimed tax withholdings on the purported income or gambling winnings that entitled the tax filer to refund payments from the IRS. The Khaters and others typically submitted these fraudulent tax filings using the names and personal identifying information of victims without the victims’ knowledge or permission. The fraudulent filings caused the IRS to pay $4.49 million in tax refunds, the Khaters and others directed to various bank accounts that they controlled.
The wire fraud conspiracy count is punishable by a maximum of 20 years in prison; the count of conspiracy to defraud the IRS is punishable by a maximum of five years in prison; and each count aggravated identity theft carries a mandatory sentence of two years in prison, to run consecutively to any term of imprisonment on the underlying felony.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Tammy Tomlins, and special agents of FBI-Newark, under the direction of Special Agent in Charge James E. Dennehy with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Fatime M. Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Leader of Trenton Drug Trafficking Conspiracy Sentenced to 19 Years in PrisonRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 228 months in prison for his role as the leader of a significant drug trafficking conspiracy that distributed more than one kilogram of heroin in Trenton and the surrounding area, U.S. Attorney Philip R. Sellinger announced.
Jakir Taylor, aka “Jak,” 32, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to Counts One and Seven of the first superseding indictment charging him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and possessing a firearm in furtherance of a drug trafficking crime. Chief Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From October 2017 to October 2018, Taylor and others engaged in a large narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Taylor and conspirator Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from conspirator David Antonio, whom they referred to as “Papi.” Taylor and Roberts agreed to obtain from Antonio a “motherlode” supply of as many as 1,500 bricks – approximately 1.5 kilograms of heroin – in a single delivery. Taylor said that he intended to “flood the streets” of Trenton with this large supply. Taylor also admitted that he and his conspirators possessed at least one firearm to assist his drug trafficking operations, and on multiple occasions during the conspiracy Taylor actively sought to obtain additional firearms from other sources. During coordinated arrests on Oct. 25, 2018, law enforcement arrested Taylor, Roberts, Antonio, and other defendants, and recovered more than 1.4 kilograms of heroin from Antonio’s residence.
In addition to the prison term, Chief Judge Wolfson sentenced Taylor to five years of supervised release.
In October 2018, Taylor, and 25 other individuals were charged by criminal complaint with conspiracy to distribute heroin. On Apr. 11, 2019, a grand jury returned a nine-count superseding indictment charging Taylor and eight other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearm offenses. Twenty-three of the 26 defendants charged in the complaint have pleaded guilty. The remaining three were convicted after trial in October 2021.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, Trenton Field Office, under the direction of Acting Special Agent in Charge Bryan Miller; officers of the Trenton Police Department, under the direction of Acting Police Director Steve Wilson; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor LaChia L. Bradshaw, with the investigation leading to today’s sentencing.
He also thanked officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the N.J. State Board of Parole for their assistance in the case.
The government is represented by Assistant U.S. Attorneys J. Brendan Day and Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Bronx Man Admits Role in Nationwide Credit Card Fraud Affecting Thousands of Account HoldersRead the Press Release
NEWARK, N.J. – A manager for a conspiracy that used stolen credit card information to make fraudulent retail purchases around the United States pleaded guilty today, U.S. Attorney Philip R. Sellinger announced.
Trevor Osagie, 31, of the Bronx, New York, pleaded guilty before U.S. District Judge William Martini in Newark federal court to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From at least 2015 through November 2018, Osagie conspired with a network of individuals based in the New Jersey/New York area who made trips around the United States in order to use stolen credit card information to purchase gift cards, flights, hotels, rental cards, and other goods and services. Other participants in the conspiracy obtained stolen credit card information through the “dark web” and other sources. In addition to recruiting at least one individual to create the fraudulent credit cards, Osagie managed the individuals who traveled around the United States conducting the fraudulent transactions. The conspirators made over $1.5 million in fraudulent purchases using over 4,000 stolen credit card accounts.
The conspiracy to commit bank fraud charge carries a maximum sentence of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for May 25, 2023.
U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Jose Riera, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes, Chief of the OCDETF/Narcotics Unit in Newark.
Morris County Man Indicted on Child Pornography ChargesRead the Press Release
NEWARK, N.J. – A federal grand jury indicted a Morris County, New Jersey, man for allegedly possessing and distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Anselmo Girimonte, 52, of Wharton, New Jersey, is charged by indictment with one count of possession of child pornography and one count of distribution of child pornography. He will be arraigned at a date to be determined. Girimonte was arrested on a criminal complaint on this conduct on March 4, 2022, and consented to detention.
According to documents filed in this case and statements made in court:
From Dec. 27, 2021, through Jan. 17, 2022, Girimonte distributed material containing images and video files of child sexual abuse, via a publicly available online peer-to-peer (P2P) file-sharing network of linked computers. Law enforcement officers conducted undercover online sessions to access the P2P program and during these sessions a user shared multiple video files of pre-pubescent children being sexually abused by adults from an internet address traced to Girimonte’s residence.
On March 2, 2022, law enforcement officers lawfully obtained a cell phone from Girimonte’s residence that contained hundreds of images and videos of child pornography, including images of prepubescent children being sexually abused.
The count of possession of child pornography carries a maximum penalty of 20 years in prison, and a fine of $250,000. 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 in Newark, with the investigation leading to today’s indictment. He also thanked the Morris County Prosecutor’s Office, the Rockaway Township Police Department, and the United States Postal Inspection Service for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Chelsea D. Coleman 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.
Philadelphia Man Admits Drug Trafficking Conspiracy Involving over 100 Kilograms of CocaineRead the Press Release
CAMDEN, N.J. – An Egg Harbor Township man today admitted his role in a conspiracy to distribute cocaine, U.S. Attorney Philip R. Sellinger announced.
Lester Santana, 52, of Egg Harbor Township, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of conspiracy to distribute five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
Santana admitted that on numerous occasions from March 2019 to August 2020, he and his conspirators flew from to San Juan, Puerto Rico, on commercial flights from Philadelphia International Airport. Santana and his conspirators purchased multi-kilogram quantities of cocaine from wholesale drug suppliers based in the San Juan area in exchange for cash payments. Santana and the other conspirators then shipped the kilograms of cocaine by overnight delivery from U.S. Post Offices in San Juan to various addresses in Philadelphia and southern New Jersey, including to Santana’s residence. After the cocaine shipments were delivered, a conspirator resold the cocaine to other drug dealers in the Philadelphia area for a profit. Santana admitted that he was jointly responsible for the possession with intent to distribute and distribution of 50 to 150 kilograms of cocaine.
The drug-trafficking conspiracy charge carries a mandatory penalty of 10 years in prison, a maximum penalty of life in prison, and a maximum fine of $10 million. Sentencing is scheduled for May 18, 2023.
Two conspirators in this case, Jose Gonzalez and Iran Soler, both previously pleaded guilty before Judge O’Hearn to conspiring to distribute five kilograms or more of cocaine. Gonzalez is scheduled to be sentenced on Jan. 30, 2023, and Soler is scheduled to be sentenced on Feb. 6, 2023.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Raimundo Marrero; agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the leadership of Special Agent in Charge Matthew Modafferi; agents assigned to the FBI’s Atlantic City Resident Agency, Newark Division, under the direction of Special Agent in Charge James E. Dennehy; agents assigned to the FBI’s Philadelphia Field Division, under the direction of Special Agent in Charge Jacqueline Maguire; troopers assigned to the New Jersey State Police Strategic Investigations Unit South, under the direction of Col. Patrick J. Callahan; and officers and detectives of the Philadelphia Police Department, under the direction of Police Commissioner Daniel Outlaw, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
New Jersey Company Agrees to Pay $1.89 Million to Settle Allegations that it Overbilled United StatesRead the Press Release
NEWARK, N.J. – A shipping company has agreed to pay $1.89 million to resolve allegations that it violated the False Claims Act by overbilling the United States for freight services that were never performed and improper markups, U.S. Attorney Philip R. Sellinger announced today.
Blue Water Shipping U.S. Inc. (Blue Water Shipping) had a contract in which it billed for freight forwarding services for foreign military sales, which were reimbursed by the United States. In the settlement announced today, Blue Water Shipping admits that an employee of the company, who has since been terminated, created a fake company to bill for freight services that were never actually performed, and which were ultimately reimbursed by the United States. The settlement also resolves allegations that Blue Water Shipping charged unallowable markups to the United States for inland transportation, and imports and exports of ocean and air freight. Blue Water Shipping has agreed to pay $1.89 million to resolve the investigations for the improper billings.
In conjunction with the investigation, Blue Water Shipping voluntarily disclosed facts to the investigators and cooperated with the investigation and prosecution of the former employee.
U.S. Attorney 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 Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick Hegarty; and special agents of the United States Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Healthcare Fraud Unit in Newark.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Jersey City Attorney Charged with Wire Fraud and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – A Jersey City attorney was charged with defrauding his clients of more than two million dollars, U.S. Attorney Philip R. Sellinger announced today.
James R. Lisa, 67, is charged by indictment with three counts of wire fraud and four counts of aggravated identity theft. He was arraigned today by videoconference before U.S. Magistrate Judge José R. Almonte, pleaded not guilty and was release on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In 2014, Lisa was retained by a family to help repatriate millions of dollars that had been transferred by other family members to offshore bank accounts decades earlier. Lisa was also retained to help resolve the tax issues related to the repatriation of the funds. In 2015, Lisa successfully repatriated more than $6 million of the family’s funds, but proceeded to falsely advise the family that the funds remained offshore. In 2017, Lisa provided $4 million of the repatriated funds to the family but continued to falsely represent that the remaining $2 million remained beyond his control.
Lisa falsely told the family that he successfully resolved the tax implications of repatriating the funds. In 2016, Lisa sent the family a fraudulent IRS “closing agreement” reflecting an agreement with the IRS for the family to pay $3 million in taxes and penalties for the repatriated funds. In 2018, Lisa sent the family another fraudulent closing agreement reflecting an agreement with the IRS for the family to pay $2 million in taxes and penalties because only $4 million was purportedly repatriated. In fact, the IRS never entered into these agreements and the IRS employees who purportedly signed the documents never did so.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a fine not to exceed $250,000. Each count of aggravated identity theft carries a statutory mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment, and a fine not to exceed $250,000.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), Mid Atlantic Field Division, under the direction of Special Agent in Charge Andrew McKay; and IRS - Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
Camden Man Sentenced to 140 Months in Prison for Role as Supervisor in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 140 months in prison for his role as a shift supervisor of a drug trafficking organization and conspiring to distribute heroin, cocaine, and crack in the city of Camden, U.S. Attorney Philip R. Sellinger announced.
Christopher Vasquez, 32, of Camden, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an indictment charging him with conspiracy to distribute more than one kilogram of heroin, more than 280 grams of crack cocaine, and unspecified quantities of cocaine and fentanyl.
According to documents filed in this case and statements made in court
Vazquez admitted that he was a “shift manager” in a drug-trafficking organization operating in the 400-500 block of Pine Street in Camden, supervising and directing the street-level sellers who were involved in distributing controlled substances to customers. From January 2018 to Nov. 28, 2018, he met with conspirators who were involved in the scheme and discussed the operations and management of the drug trafficking organization. He also provided drugs to street-level sellers.
All 19 of the charged defendants have previously entered guilty pleas on drug conspiracy charges before Judge Bumb.
In addition to the prison term, Judge Bumb sentenced Vazquez to seven years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabe Rodriguez; the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Acting Chief Larry Robb; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Forces (OCDETF), which identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Hudson County Man Sentenced to 51 Months in Prison for Drug Conspiracy and Possession with Intent to Distribute CocaineRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced to 51 months in prison for conspiring to distribute and possessing with intent to distribute cocaine, U.S. Attorney Philip R. Sellinger announced today.
Jerome Powell, 43, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Court Judge Susan D. Wigenton to a superseding information charging him with one count of conspiracy to distribute cocaine and one count of possession with intent to distribute cocaine. Judge Wigenton imposed the sentence by videoconference on Jan. 10, 2023.
According to the documents filed in this case and statements made in court:
From August 2019 through Feb. 2, 2020, Powell and others agreed to possess and distribute narcotics in Jersey City. Upon his arrest, Powell had 400 vials of cocaine in his pocket.
In addition to the prison term, Judge Wigenton sentenced Powell to three years of supervised release.
U.S. Attorney Sellinger credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Daniel J. Kafafian, New Jersey Division; and members of the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s sentencing.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’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 Tracey Agnew of the U.S. Attorney’s Office in Trenton.
Morris County Man Admits Defrauding Department of Veterans Affairs and Threatening Federal AgentRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man today admitted defrauding the Department of Veterans Affairs (VA) of more than $118,000 in disability benefits and sending an interstate text message threatening a federal agent with bodily injury, U.S. Attorney Philip R. Sellinger announced.
Kamil Wakulik, 38, of Long Valley, New Jersey, pleaded guilty by videoconference before U.S. Magistrate Judge José R. Almonte to an information charging him with theft of government funds and interstate transmission of a threat of injury.
According to documents filed in this case and statements made in court:
Wakulik was an active service member in the U.S. Marine Corps from 2003 to 2007. In 2018, during an assessment by the VA for disability benefits, Wakulik made false representations that he suffered from post-traumatic stress disorder based on his active-duty service. Wakulik claimed that he was assigned to and participated in active-duty missions that required him to recover human remains following natural disasters that occurred in the Philippines and Thailand – in fact, he was not involved in recovering human remains. Based on these false statements, the VA increased Wakulik’s disability rating and provided additional monthly disability benefit payments to him totaling over $118,000.
On Aug. 23, 2022, Wakulik sent an interstate text message to an agent of the VA, Office of Inspector General, threatening physical violence against the agent and any other agent involved in investigating Wakulik.
The charge of theft of government funds carries a maximum sentence of up to 10 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greatest. The charge of interstate transmission of a threat of injury carries a maximum sentence of up to five years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for June 6, 2023.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, 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 Adam Baker of the Opioid Abuse Prevention and Enforcement Unit in Newark.
Mercer County Man Sentenced to 27 Months in Prison for Interfering with Law Enforcement Officers During Civil DisorderRead the Press Release
NEWARK, N.J. – A Mercer County, New Jersey, man was sentenced today to 27 months in prison for attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a riot in Trenton, U.S. Attorney Philip R. Sellinger announced.
Kadeem A. Dockery, 31, of Trenton, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce. Judge Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On May 31, 2020, large-scale protests were held throughout the United States, including in Trenton, in response to the death of George Floyd. Although the May 31st protest in Trenton was peaceful earlier in the day, violence erupted later. A group of individuals proceeded down East State Street in downtown Trenton and began to riot, smashing store fronts, looting stores, and attacking multiple marked Trenton Police Department vehicles parked on the 100 Block of East State Street.
A city of Trenton street camera and other video footage taken by an individual present on the street recorded Dockery lighting an explosive device and throwing it through the open front driver’s side window of a Trenton Police Department vehicle, attempting to set the police vehicle on fire. The footage captured the sound of an explosion, and smoke emanating from the police vehicle. Law enforcement later identified Dockery through analysis of street camera and other video footage. Dockery was arrested on Aug. 5, 2020.
In addition to the prison term, Judge Martinotti sentenced Dockery to three years of supervised release.
Dockery is the last of four individuals sentenced in connection with the protest in Trenton. Earlja J. Dudley was sentenced in March of 2022 to 30 months in prison; Killian F Melecio was sentenced in June of 2021 to 28 months in prison; and Justin D. Spry was sentenced in September 2021 to 24 months in prison.
U.S. Attorney Philip R. Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force in Newark, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the sentence. He also thanked officers of the Trenton Police Department, under the direction of Police Director Steve E. Wilson; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and officers of the New Jersey Department of Corrections, under the direction of Commissioner Victoria L. Kuhn, for their assistance.
The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division.
Five Florida Men Sentenced for Conspiracy and Interstate Transportation of over $1.3 Million of Stolen PerfumeRead the Press Release
NEWARK, N.J. – Five men were sentenced today for their roles in a conspiracy to transport over $1.3 million worth of stolen perfume products out of New Jersey to Florida, U.S. Attorney Philip R. Sellinger announced.
Carlos Duvergel, 58, of Miami Gardens, Florida, was sentenced to 33 months in prison. Four defendants residing in Hialeah, Florida, were also sentenced: Juan Crespo, 46, was sentenced to 37 months in prison; Felix Castillo, 49, was sentenced to 33 months in prison; Asnay Fernandez, 32, was sentenced to 33 months in prison; and Ismael Manzano-Suarez, 25, was sentenced to 33 months in prison. The defendants were previously convicted at trial before Judge Peter G. Sheridan with conspiring to transport stolen property in interstate commerce and transportation of stolen property in interstate commerce. Judge Sheridan imposed the sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
In November 2017, the defendants broke into a warehouse storing perfume products in Edison, New Jersey, and drove away with two tractor trailers filled with stolen perfume products. The value of the stolen perfume products was over $1.3 million. The defendants were arrested in May 2018 while attempting to break into another perfume warehouse in East Brunswick, New Jersey.
In addition to the prison term, Judge Sheridan sentenced each defendant to three years of supervised release and were ordered to pay total restitution of $1.36 million.
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 sentencings. He also thanked the Edison Police Department, the East Brunswick Police Department, and the Middlesex County Prosecutor’s Office, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Christopher D. Amore of the National Security Unit and Special Assistant U.S. Attorney Timothy P. Shaughnessy of the Organized Crime and Gangs Unit in Newark.
Repeat Offender Admits Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man today admitted possessing multiple images and videos of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
John Schulenburg, 67, of Basking Ridge, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez in Newark federal court to a superseding information charging him with possession of child pornography.
According to documents filed in this case and statements made in court:
In July 2019, 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. During this session, a user shared multiple files featuring images of child sexual abuse from an internet address traced to Schulenburg’s residence. On Nov. 6, 2019, law enforcement lawfully obtained a computer from Schulenburg’s residence that contained hundreds of images and videos of child sexual abuse, including images of prepubescent children.
Schulenburg was previously convicted of endangering the welfare of a child/possession of child pornography in Somerset County in 2013. 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. Sentencing is scheduled for May 22, 2023.
U.S. Attorney Sellinger credited special agents with the Newark Child Exploitation and Human Trafficking Task Force, under the direction of FBI Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea. He also thanked the Somerset County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Passaic County Man Admits Producing Child Pornography and Online EnticementRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man admitted producing one or more images of child sexual abuse and enticing a minor to engage in sexually explicit conduct, U.S. Attorney Philip R. Sellinger announced today.
Jose Minaya, 27, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Julien X. Neals on Jan. 5, 2023, to an information charging him with one count of production of child pornography and one count of online enticement.
According to documents filed in this case and statements made in court:
In July 2019, Minaya used a web-based application to engage a child in a sexually explicit conversation online. Minaya persuaded the child to take sexually explicit photographs of the child and send them to him. Minaya was arrested at his home in May 2020, at which time agents seized multiple electronic devices. Further investigation revealed that Minaya had used another application to entice an additional minor to engage in sexually explicit conduct.
The charge of production of child pornography, carries a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison. The charge of online enticement carries a mandatory minimum of 10 years in prison and a maximum of life in prison. Each of the charges carry a fine of up to $250,000. Sentencing is scheduled for May 9, 2023.
U.S. Attorney Sellinger credited special agents with the Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Monmouth County Man Sentenced to 63 Months in Prison for $2.8 Million Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man was sentenced to 63 months in prison for committing securities fraud to obtain over $2.8 million from victim investors, U.S. Attorney Philip R. Sellinger announced today.
Mark Marchi, 55, of Red Bank, New Jersey, previously pleaded guilty before U.S. District Court Judge Claire C. Cecchi to an information charging him with one count of securities fraud. Judge Cecchi imposed the sentence on Jan. 4, 2023, in Newark federal court.
According to documents filed in this case and statements made in court:
Marchi, who was previously barred from the securities industry, purported to provide investment adviser services to clients. Beginning in December 2015, he managed and controlled Precipio Capital LLC, after previously managing and controlling a different investment company called Global Alliance Capital, LLC. Through Global Alliance, Marchi solicited investments from multiple investors, and when he ceased operating Global Alliance, Marchi represented to those investors that he rolled over their accounts into Precipio. Marchi also solicited investors to invest directly into Precipio.
Instead of using the funds on legitimate investments, Marchi diverted approximately $2.8 million of those funds from victim investors for other purposes, including paying back previous Global Alliance investors and his own use. Marchi made repeated misrepresentations to the victim investors, which included false claims about the status and performance of investments and false assurances to victims that their investments were profitable. Marchi also provided victims with falsified records, including trading records, performance reports, and K-1s.
In addition to the prison term, Judge Cecchi sentenced Marchi to three years of supervised release and ordered him to pay restitution of $2.87 million.
U.S. Attorney Sellinger credited the special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s sentencing. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Division of Consumer Affairs, under the direction of Attorney General Matthew J. Platkin and Acting Bureau Chief Amy Kopleton, as well as the U.S. Securities and Exchange Commission’s Division of Enforcement, under the direction of Director Gurbir S. Grewal, for their assistance.
The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.
Convicted Felon Sentenced to Six Years in Prison for Drug Offenses, and Possessing Three Firearms with Extended MagazinesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced to 72 months in prison for possessing quantities of heroin and cocaine he intended to distribute, and possessing several firearms, including an AM-15 rifle, U.S. Attorney Philip R. Sellinger announced today.
Cedric Lewis, 32, of Bloomfield, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a superseding information charging him with two counts of possession of a firearm and ammunition by a convicted felon and two counts of possession with intent to distribute controlled substances.
According to documents filed in this case and statements made in court:
On Sept. 20, 2020 investigators learned that Lewis was in a car in the Newark/Elizabeth area while he possessed a quantity of heroin and cocaine he intended to sell, as well as an AM-15 rifle with a high-capacity magazine that contained 30 rounds of .300 caliber ammunition. Law enforcement officers subsequently lawfully searched Lewis’s apartment recovered a 9 millimeter pistol with an extended magazine; a .40 caliber pistol with an extended magazine; drug paraphernalia and a scale; $800 in cash, and heroin and cocaine that Lewis intended to sell.
In addition to the prison term, Judge Martinotti sentenced Lewis to three years of supervised release.
U.S. Attorney Sellinger credited members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Bryan Miller; deputy marshals with the U.S. Marshals Service in the District of New Jersey, under the supervision of U.S. Marshal Juan Mattos Jr.; and deputy marshals with the U.S. Marshals Service in the Northern District of Georgia, under the supervision of U.S. Marshal Michael S. Yeager, with the investigation leading to today’s sentencing. He also thanked the Bloomfield Police Department for its assistance.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.
Nine Men Charged with Roles in Gang-Led Drug and Gun Trafficking NetworkRead the Press Release
NEWARK, N.J. – Nine members of a drug and gun trafficking network led by Latin King gang members in Union and Middlesex counties have been charged with drug and weapons offenses, U.S. Attorney Philip R. Sellinger announced today.
The defendants are charged by complaint with conspiracy to distribute and possess with intent to distribute narcotics, including fentanyl and cocaine, possession with intent to distribute narcotics, conspiracy to traffic firearms, including several privately made firearms (PMFs or “ghost guns”), and the unlawful possession of firearms.
“The charges we’re announcing today describe an illegal network that was actively distributing guns and drugs, including fentanyl and cocaine, around New Jersey,” U.S. Attorney Sellinger said. “In addition to bringing illegal weapons into New Jersey from other states, these defendants are charged with manufacturing untraceable gun parts that could be used to convert weapons for automatic firing. Thanks to the excellent work of our federal, state and local law enforcement partners, we’ve dealt a substantial blow to this criminal operation.”
“ATF has a zero-tolerance policy for those engaged in firearms-related violence, violent drug gangs, and those who facilitate the illegal manufacturing and trafficking of firearms,” Acting Special Agent in Charge of ATF Bryan Miller said. “We are committed to doing the necessary work to protect our neighborhoods from criminals who jeopardize the public’s safety and lessen the quality of life in our communities. This investigation demonstrates ATF’s dedication to working with our local, state, and federal partners in identifying and incarcerating violent offenders who threaten the peace that our neighborhoods so deserve.”
“The arrest of these defendants, and the seizure of drugs and guns has made our community safer,” Acting Special Agent in Charge of the DEA’s New Jersey Division Daniel J. Kafafian said. “This network was pushing deadly fentanyl and cocaine, and there is no doubt the weapons being produced and seized would have led to violence and misery. This is another example of law enforcement partners at all levels working towards the common goal of protecting the citizens of New Jersey.”
According to the allegations in the complaint, the defendants below are members and associates of the Latin Kings street gang:
- Justin Aponte, 28, of Elizabeth, New Jersey;
- Victor Barrios, 28, of Bayonne, New Jersey;
- Jose Fontanez, 28, of Carteret, New Jersey;
- Jonathan Lakomy, 32, of Ringwood, New Jersey;
- Christian Rodriguez, 32, of Chesterfield, Virginia;
- Jeziel Romero, 27, of Old Bridge, New Jersey;
- Christopher Soto, 30, of Matawan, New Jersey;
- Angel Valentin, 34, of Carteret, and
- Ian Wooten, 30, of Carteret.
All New Jersey resident defendants appeared before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Rodriguez appeared before U.S. Magistrate Judge Mark R. Colombell, in Richmond, Virginia, federal court. Soto remains at large.
According to documents filed in this case and statements made in court:
Beginning in May 2022, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, along with state and local law enforcement agencies, began investigating a drug and firearms trafficking network that included Aponte, Barrios, Fontanez, Lakomy, Rodriguez, Romero, Valentin and Wooten. Many members of the trafficking network were members or associates of the Almighty Latin Kings & Queens Nation, commonly known as the “Latin Kings.” The trafficking network operated largely in neighborhoods in Elizabeth and Carteret, New Jersey.
Law enforcement officers identified members of the trafficking network who were responsible for the distribution of controlled substances, including substantial quantities of fentanyl and cocaine, from residences in Elizabeth and Carteret and elsewhere. Investigators were able to collect evidence that Lakomy supplied fentanyl to Aponte, who in turn provided the drugs to other members of the trafficking network for redistribution. Fontanez, Romero, Valentin, and Wooten were identified as responsible for street-level distribution of the fentanyl and cocaine.
Aponte, Barrios, Rodriguez and Wooten conspired to illegally traffic firearms, including traditional firearms and PMFs. In November 2022, investigators determined that Aponte and Barrios were working to produce PMFs at Barrios’ residence. A search warrant executed at that time resulted in the seizure of:
- One Glock-26-style PMF 9x19mm semi-auto handgun;
- one .40 caliber S&W handgun with a Polymer-80 frame with a slide from a Glock model 22 handgun;
- 21 rounds of 5.56 caliber ammunition;
- 45 rounds of .40 caliber ammunition;
- 13 partially manufactured firearms;
- two 3D printers; and
- 3D printing materials.
When law enforcement agents entered Barrios’ residence, they observed that the two 3D printers were in the process of manufacturing PMFs.
Investigators also determined that Aponte was conspiring with Rodriguez to traffic firearms from Virginia to New Jersey. In one meeting between Aponte, Rodriguez, and an undercover law enforcement agent at a location in Virginia, Rodriguez agreed to sell several firearms to Aponte. Subsequently, Aponte told the undercover agent that the firearms were ready to be transported from Rodriguez to Aponte and then sold to the agent.
From May 2022 to December 2022, law enforcement officers seized more than 15,000 individual doses of fentanyl, approximately 14 grams of cocaine base, 26 firearms including 24 PMFs, and three machine gun conversion devices, which are parts designed to convert a semiautomatic firearm into a fully automatic machinegun.
In addition, during the course of lawful searches conducted by law enforcement on January 4, 2023, law enforcement recovered:
- four firearms, including one FIE Titan .25 caliber semiautomatic handgun and three PMFs consistent with those seized by law enforcement during the investigation from Soto’s residence;
- 3,500 individual doses of suspected fentanyl, a separate 125 grams of suspected powdered fentanyl, and narcotics packaging materials from Lakomy’s residence; and
- 5,000 individual doses of suspected fentanyl, two firearms, including a Springfield model XD 9mm semiautomatic handgun, and a Smith & Wesson model SD40 VE .40 caliber semiautomatic handgun, and six Glock-brand firearm slides consistent with those used by members of the conspiracy to manufacture PMFs, and 100 bricks of suspected fentanyl from Wooten’s residence.
The maximum penalties per count in the filed complaint are:
Count
Charge
Defendant(s)
Maximum Penalty
One
Conspiracy to Distribute Controlled Substances
Aponte, Fontanez, Lakomy, Romero, Valentin, Wooten
Life in prison
Two
Firearms Trafficking Conspiracy
Aponte, Barrios, Rodriguez, Wooten
15 Years
Three
Firearms Trafficking
Aponte, Barrios
15 Years
Four
Possession of Machine Guns
Aponte
10 Years
Five
Possession of a Firearm by a Convicted Felon
Aponte
15 Years
Six
Possession of a Firearm by a Convicted Felon
Soto
15 Years
Seven
Possession with Intent to Distribute Fentanyl
Lakomy
40 Years
Eight
Possession with Intent to Distribute Fentanyl
Wooten
40 Years
Nine
Possession with Intent to Distribute Cocaine Base
Fontanez
20 Years
U.S. Attorney Sellinger credited special agents of the ATF, under the direction of Acting Special Agent in Charge Miller in Newark and Acting Special Agent in Charge Christopher Amon in Richmond, Virginia; special agents of the DEA, under the direction of Acting Special Agent in Charge Kafafian in Newark; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; the Plainfield Police Department, under the direction of Director James Abney; 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 Woodbridge Police Department, under the direction of Police Director Robert Hubner; the Union County Sheriff’s Department, under the direction of Sheriff Peter Corvelli; and the Scotch Plains Police Department, under the direction of Chief Theodore D. Conley, with the investigation. He also thanked the Hudson County Prosecutor’s Office and the New Jersey Department of Corrections for their assistance.
The government is represented by Assistant U.S. Attorneys John Mezzanotte and Robert Frazer of the Organized Crime and Gangs Unit in Newark, and by Assistant U.S. Attorney Angela Mastandrea-Miller of the U.S. Attorney’s Office, Eastern District of Virginia.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Atlantic City Man Sentenced to 135 Months in Prison for Possession of Child PornographyRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced to 135 months in prison for possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Cory Newman, 44, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with one count of possession of child pornography. Judge O’Hearn imposed the sentence in Camden federal court.
According to documents filed in this case and statements made in court:
On May 20, 2021, agents with Department of Homeland Security, Homeland Security Investigations, (HSI) served a search warrant at Newman’s residence in Atlantic City and discovered electronic devices containing numerous videos and images of children being sexually abused.
In addition to the prison term, Judge O’Hearn sentenced Newman to 15 years of supervised release.
U.S. Attorney Sellinger credited special agents of HSI, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to today’s sentencing. He also thanked the Atlantic County Prosecutor’s Office, under the direction of Acting Atlantic County Prosecutor William E. Reynolds, and the Atlantic City Police Department, under the direction of Interim Officer in Charge Deputy Chief James A. Sarkos, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Johns of the Criminal Division in Camden.
Former New Jersey Official Admits Defrauding New Jersey Health Care Benefit Program of More Than $4.5 MillionRead the Press Release
New Jersey Woman Also Pleads Guilty to Conspiring to Defraud the New Jersey Traumatic Brain Injury Fund of Millions of Dollars
TRENTON, N.J. – The former manager of the New Jersey Traumatic Brain Injury Fund (TBI Fund) and one of his conspirators today admitted their roles in a long-running scheme to defraud the fund, a publicly funded health care benefit program, of more than $4.5 million, U.S. Attorney Philip R. Sellinger announced.
Harry Pizutelli, 64, of Edison, New Jersey, pleaded guilty by videoconference before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of conspiracy to commit healthcare fraud. Maritza Flores, 45, of Toms River, New Jersey, also pleaded guilty before Judge Quraishi in Trenton to an information charging her with conspiracy to commit healthcare fraud and tax evasion.
In January 2021, Pizutelli, Flores, and co-defendant C.R. Kraus were charged in a criminal complaint with conspiracy to commit healthcare fraud in connection with a scheme to defraud the TBI Fund of millions of dollars of public funds for their own personal benefit. The charges against Kraus remain pending.
According to documents filed in this case and statements made in court:
The TBI Fund is a publicly funded program run by the New Jersey Division of Disability Services, a component of the New Jersey Department of Human Services. The TBI Fund’s purpose is to provide New Jersey residents who have suffered a traumatic brain injury with services and support in order to maximize their quality of life when funding from insurance, personal resources, or other programs is unavailable to meet their needs. Services funded by the TBI Fund include physical, occupational, and speech therapy; service coordination; assistive technology; cognitive therapy; neuropsychological services; pharmaceuticals; wheelchair ramp installation and other home modifications; and general home management and maintenance.
After a prospective patient applies for services, TBI Fund personnel review the application and, if approved, the patient is authorized to secure designated services from a third-party vendor. Once a patient receives services approved by the TBI Fund, the vendor or service provider submits an invoice to the TBI Fund for payment. When an invoice is received, TBI Fund personnel review the invoice to ensure that the patient had been approved to receive the services. If the invoice is approved, an internal payment voucher is generated, authorized by TBI Fund personnel, and then submitted to the New Jersey Department of the Treasury for payment, which issues a check directly to the vendor.
Pizutelli was the manager of the TBI Fund and was responsible for its day-to-day operation. He supervised, managed, and oversaw the process by which third-party vendors were paid for services rendered to eligible TBI Fund patients. From 2009 through June 2019, Pizutelli, Kraus, Flores, and others conspired to defraud the TBI Fund by misappropriating more than $4.5 million in fraudulent vendor payments for purported services that were never actually provided. Pizutelli orchestrated the distribution of fraudulent vendor payments to Flores, Kraus, and others by generating and processing false invoices and internal payment vouchers. Pizutelli generated these invoices and vouchers to give the appearance that Flores, Kraus, and other conspirators had provided approved services to eligible patients when, in fact, they had not provided any services. Pizutelli then approved and transmitted the internal payment vouchers.
Pizutelli orchestrated these fraudulent payments to maintain and further romantic and/or sexual relationships with Flores and other conspirators. Pizutelli orchestrated the fraudulent payment of more than $4.5 million from the TBI Fund to members of the conspiracy, including more than $940,000 in fraudulent distributions to Flores and more than $3.245 million in fraudulent distributions to Kraus, which they used for their own personal benefit and enrichment. Flores and Kraus also evaded the payment of substantial amount of income taxes by making material misstatements and omissions on their federal income tax returns and significantly underreporting the income they had derived from the fraudulent scheme.
The healthcare fraud conspiracy charge to which Pizutelli and Flores each pleaded guilty carries a maximum penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross receipts to the defendants or gross loss sustained by any victims, whichever is greater. The tax evasion charge to which Flores pleaded guilty carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing for Pizutelli is scheduled for May 8, 2023, and for Flores, May 9, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge James E. Dennehy; and special agents of the IRS, Criminal Investigation, under the direction of Special Agent in Charge Tammy L. Tomlins, with the investigation leading to the charges. He also thanked the New Jersey Attorney General’s Office, Division of Law, and the New Jersey Department of Human Services, for their assistance.
The government is represented by J. Brendan Day, Deputy Chief of the Criminal Division in Newark, and Assistant U.S. Attorney Eric Suggs of the U.S. Attorney’s Office Trenton Branch Office.
The charges and allegations against Kraus are merely accusations and he is presumed innocent unless and until proven guilty.
Defense counsel:
Pizutelli: Benjamin J. West Esq., Assistant Federal Public Defender
Flores: Aidan P. O’Connor Esq. Hackensack, New Jersey