District of New Jersey
Press releases recorded for this federal judicial district.
Sussex County Man Convicted for $2.1 Million COVID-19 Fraud SchemeRead the Press Release
TRENTON, N.J. – A New Jersey man was found guilty by a jury for fraudulently obtaining more than $2.1 million in Paycheck Protection Program (PPP) funds and Economic Injury Disaster Loans (EIDL) and laundering the proceeds, U.S. Attorney Robert Frazer announced.
Nikenson Jean Mathurin, aka “Nik Mathurin,” aka “Jean Mathurin,” 46, of Sparta, New Jersey, was convicted of three counts of wire fraud and one count of money laundering on May 21, 2026 following a four-day jury trial before U.S. District Judge Michael A. Shipp in Trenton federal court. Sentencing is scheduled for October 6, 2026.
“Pandemic relief programs were created to help struggling businesses keep workers employed and survive a national emergency—not to serve as a personal payday for fraudsters. The evidence at trial showed that Mathurin submitted fraudulent loan applications packed with fake payroll records, false tax documents, and fabricated business information to obtain more than $2.1 million in federal relief funds. This Office will continue to aggressively investigate and prosecute those who stole taxpayer-funded emergency assistance for personal gain.”
- U.S. Attorney Robert Frazer
“Individuals who exploit pandemic relief programs undermine the integrity of our financial system and divert vital resources intended to support Americans in times of crisis. Through deception and fraud, Mathurin stole more than $2 million from the very businesses these programs were created to help,” stated Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office. “This verdict underscores IRS-CI’s commitment to protecting taxpayer funds and holding those who abuse these programs accountable.”
According to documents in this case and evidence at trial:
In response to the COVID-19 pandemic and its economic impact, Congress authorized emergency funding that small businesses could use to help keep their businesses afloat and employees on payroll.
Beginning in April 2020, Mathurin participated in a scheme to defraud lenders and the Small Business Administration to obtain federal COVID-19 emergency relief money by submitting fifteen fraudulent PPP and EIDL applications on behalf of businesses he claimed to own. Mathurin’s fraudulent applications included false information concerning, among other things, the applicant entities’ average monthly payroll, gross revenue, and number of employees, and fake supporting tax documents and payroll records. As a result of his fraudulent applications, Mathurin unlawfully obtained more than $2.1 million in federal COVID-19 emergency relief money.
Each wire fraud charge carries a maximum penalty of 20 years in prison, and the money laundering charge carries a maximum penalty of 10 years in prison. Each charge also carries a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.
U.S. Attorney Robert Frazer credited special agents the IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation.
The government is represented by Assistant U.S. Attorneys Matthew Stark and Fatime Meka Cano of the U.S. Attorney’s Office Criminal Division in Newark.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Defense Counsel for Mathurin: Mark G. Davis, Esq.
mathurin.indictment.pdfHusband and Wife Admit to Promoting Prostitution in Illicit Massage Parlors in New Jersey and New YorkRead the Press Release
TRENTON, N.J. – A husband and wife admitted to conspiring to promote prostitution in spas in New Jersey and New York, U.S. Attorney Robert Frazer announced.
Zhejun Piao, 38, and Miyeon Choi a/k/a “Maya,” 38, both of Palisades Park, New Jersey, each pleaded guilty on May 26, 2026 before U.S. District Judge Zahid N. Quraishi in Trenton federal court to an Information charging them with one count of conspiracy to commit interstate travel and use of the mail and any facility in aid of a racketeering enterprise.
According to documents filed in the cases and statements made in court:
Choi admitted to being a leader or organizer of the conspiracy in which she, Piao, and other co-conspirators owned or operated the following nine massage parlors, often referred to as spas:
- Coco Spa in Paterson, New Jersey;
- Gold Spa and 785 Spa in Passaic New Jersey;
- 365 Spa in Fairview, New Jersey;
- Queen Spa and Hawaii Spa in Edgewater, New Jersey
- Good Day Spa in East Brunswick, New Jersey;
- Spa Wellness in Toms River, New Jersey; and
- New Soothing Day Spa in New Rochelle, New York.
Each of the spas operated in a similar way in which women workers provided sexual services to paying customers in exchange for a fee of $160 or $175. Many of the spas provided customers with loyalty or rewards cards whereby customers would receive a stamp for each visit and receive a free visit after collecting a certain number of stamps. The spas typically opened for service from approximately 8:00 am to midnight, seven days a week with many of the women living at the spas, and according to ledgers for the spas, some of the women performed sexual services to approximately 20 men a day.
As a leader of the conspiracy, Choi admitted to among other things, recruiting women to work at the spas, communicating with customers by phone to book appointments, controlling the money generated by the spas, and advertising the sexual services offered at the spas online. She also admitted to directing other co-conspirators in furtherance of the conspiracy, such as requesting one co-conspirator to deliver groceries and condoms to spas or delegating responsibilities to communicate with customers and record appointments to another co-conspirator.
For his role, Piao admitted to delivering supplies to the spas, including groceries, mouthwash, cleaning supplies, medications, and condoms, as well as picking up ledgers, receipts, and cash proceeds from the spas. Both Choi and Piao admitted to storing tens of thousands of condoms in their home in addition to approximately $1.2 million in cash. As part of their guilty pleas, Choi and Piao agreed to forfeit the cash, numerous designer handbags, luxury watches, and jewelry.
The charge of conspiracy to commit interstate travel and use of the mail and any facility in aid of a racketeering enterprise carries a maximum penalty of five years in prison and a fine of up to $250,000. Sentencing is scheduled for October 6, 2026.
U.S. Attorney Frazer credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael S. McCarthy; the U.S. State Department, Diplomatic Security Service; and the New Jersey State Police, under the direction of Acting Superintendent Lt. Colonel (Ret.) Jeanne Hengemuhle. He also thanked HSI New York, Hudson Valley Office; Customs and Border Protection; the Passaic County Prosecutors Office; Passaic County Sheriff; Bergen County Prosecutor’s Office; Bergen County Sheriff; Edgewater Police Department; Fairview Police Department; Paterson Police Department; East Brunswick Police Department; New Jersey Division of Criminal Justice; South Toms River Police Department; Edison Police Department; South Toms River Police Department; Morris County Prosecutor’s Office; Ocean County Prosecutor’s Office; New Rochelle Police Department; Westchester District Attorney’s Office; Federal Air Marshals; New York State Police; ICE Enforcement and Removal Operations; the Westwood Police Department; and the Ridgefield Park Police Department; and the Palisades Park Police Department.
The government is represented by Assistant U.S. Attorney Casey S. Smith of the Criminal Division in Newark.
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Defense counsel:
Miyeon Choi: Warren Sutnick, Esq.
Zhejun Piao: Paul Brickfield, Esq.
choi.information.pdf piao.information.pdfFather and Son Contractors Admit Tax Evasion, Payroll Tax Fraud, and Fraudulently Obtaining a Loan Meant to Help Small Businesses During COVID-19 Pandemic and Related OffensesRead the Press Release
CAMDEN, N.J. – An Elmer, New Jersey, businessman yesterday admitted to income tax evasion, failing to pay payroll taxes to the IRS, and fraudulently obtaining a Paycheck Protection Program (PPP) loan, U.S. Attorney Robert Frazer announced.
Zackary Sulpizi, 30, of Sewell, New Jersey, pleaded guilty yesterday before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with income tax evasion, failing to collect, account for, and pay over payroll taxes, and bank fraud resulting from his fraudulent loan.
Previously, on April 1, 2026, Sulpizi’s father, William Brent Stephens, 58, appeared before Judge Williams and pleaded guilty to income tax evasion, failing to collect, account for and pay over payroll taxes, bankruptcy fraud, and providing false statements to the IRS.
According to documents filed in this case and statements made in court:
Sulpizi was part owner of BZS Contracting Incorporated, which was doing business as Stephens Contracting Inc. in Elmer, New Jersey. Stephens Contracting provided landscaping and construction services. At times, Sulpizi helped his father run Stephens Contracting. Sulpizi also formed several other businesses, which were used to operate Stephens Contracting.
Sulpizi admitted that he opened business and personal bank accounts at several financial institutions and used those bank accounts to withdraw cash to pay biweekly cash payroll. Sulpizi deposited customer checks into his personal bank accounts and cashed business checks against those accounts to pay payroll.
Sulpizi admitted that for tax years 2019 through 2022, he paid his employees approximately $446,573 in cash wages and that he willfully failed to file payroll tax returns and failed to pay over $34,162 in employment taxes on behalf of his employees.
Sulpizi further admitted that for the years 2019 through 2022, when he filed his income tax returns with the IRS, he failed to report approximately $389,650 that he had received in income from his business. He also failed to report personal expenses paid by his business, as well as other income that he had received. As a result, Sulpizi failed to pay approximately $74,920 in taxes during this time period.
In addition to Sulpizi defrauding the IRS, Sulpizi also submitted a fraudulent application to a lender to obtain a PPP loan, resulting in bank fraud.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program. The CARES Act also authorized the Small Business Administration to provide Economic Injury Disaster Loans of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.
To obtain a PPP loan, a qualifying small business was required to submit an application and provide information about its operations, including the number of employees and expenses. In addition, businesses generally had to provide supporting documentation for their application.
In May 2021, Sulpizi submitted an application to obtain a PPP loan. In the application, he falsely represented to the lender that he had employees and payroll expenses. In further support of his application, Sulpizi submitted various IRS Forms to establish that he was paying compensation to his employees and various schedules showing gross receipts and profits. Those forms contained false information, and they were never actually submitted to the IRS, as Sulpizi had claimed; instead, the forms were only created and used for the purpose of securing the loan.
Based on Sulpizi’s misrepresentations, the lender approved the PPP loan and disbursed approximately $16,935 in federal COVID-19 emergency relief funds meant for distressed small businesses to Sulpizi.
The charges of income tax evasion and failing to collect, account for and pay over payroll taxes each carry a maximum penalty of 5 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. The charge of bank fraud carries a maximum penalty of 30 years in prison and a fine of $1 million. As part of his guilty plea, Sulpizi agreed to make restitution to the IRS in the full amount of the taxes that he owes, and he also agreed to make restitution to the lender in the full amount of the PPP loan. Sulpizi’s sentencing is scheduled for October 19, 2026.
Sulpizi’s guilty plea came less than two months after his father, Stephens, admitted to committing tax and fraud crimes in connection with Stephens Contracting.
During his April 1, 2026 plea hearing, Stephens admitted that during 2019 through 2023, he owned Stephens Contracting LLC. At times his son, Sulpizi helped him run Stephens Contracting. Stephens also admitted to having an ownership interest in two massage parlors in New Jersey.
Stephens admitted that for years 2019 through 2022, he failed to report approximately $1,165,268 of income that he earned from his various businesses on his Income Tax Returns. Based on that income, Stephens admitted that he owes $288,297 in taxes to the IRS.
Stephens also admitted to running a cash payroll for his employees and failing to pay payroll taxes to the IRS. Between January 1, 2019 and December 31, 2022, Stephens’ companies hired and paid employees to work on various landscaping and construction projects. Stephens paid his employees approximately $718,237 in wages. During this time, Stephens failed to collect and pay over to the IRS approximately $54,946 in employment taxes.
Stephens further admitted that, as part of his bankruptcy proceedings filed in the District of New Jersey, he deliberately concealed his assets, including the amount of income that he received from operating his contracting businesses, his income from the massage parlors, his unemployment insurance payments, and the sale of Stephens Contracting vehicles. He further admitted to lying to the IRS Special Agents when they interviewed him in January 2023 during their investigation into his business’s failure to pay over payroll taxes and his failure to pay income taxes.
The charges of income tax evasion and failing to collect, account for and pay over payroll taxes, bankruptcy fraud, and false statements, each carry a maximum penalty of 5 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. As part of his guilty plea, Stephens agreed to make restitution to the IRS in the full amount of the taxes that he owes. Stephens’ sentencing is scheduled for August 4, 2026.
U.S. Attorney Frazer credited special agents of the Internal Revenue Service–Criminal Investigation, under the direction of Jenifer L. Piovesan, Special Agent-in-Charge, New Jersey Field Office, with the investigation leading to yesterday’s guilty plea.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Christopher St. John, Esq., Marlton, N.J. for Zachary Sulpizi
Martin Isenberg, Esq., Gibbsboro, for William Brent Stephens
sulpizi.information.pdfBank Insider Pleads Guilty to Facilitating Fraud Schemes at Two Financial InstitutionsRead the Press Release
NEWARK, N.J. – A New York-based former employee of TD Bank N.A., Cheungkin Lam, also known as “Kelvin Lam,” pleaded guilty yesterday to defrauding TD Bank customers and bribing an employee at another financial institution to falsify bank records, which, in total, facilitated more than $3.4 million of fraud, U.S. Attorney Robert Frazer announced.
Lam, 28, pleaded guilty yesterday before the Honorable Esther Salas in Newark to a two-count Information charging him with conspiracy to commit wire fraud affecting a financial institution and making false bank entries or reports. He is scheduled to be sentenced on October 15, 2026.
“Lam leveraged his and a co-conspirator’s insider positions at two different financial institutions to facilitate millions of dollars of fraud in exchange for bribes. We expect bank employees to help root out fraud, not enable it. The U.S. Attorney’s Office will continue to hold financial institutions and their employees accountable when they break the law and undermine the integrity of the financial system.”
- U.S. Attorney Robert Frazer
“Lam abused his position as a bank employee to help fraudsters steal money from unwitting customers and bribed another bank employee to do the same,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Bank employees are the first line of defense against money laundering, fraud, and other financial crimes. When bank employees violate the public trust by using their positions to enrich themselves through financial crime, the Criminal Division will investigate and prosecute them.”
“Cheungkin Lam’s conduct represents a grave breach of the trust placed in financial professionals. By exploiting his access to sensitive customer information, Lam facilitated a significant fraud and compromised the integrity of the financial system and the security of innocent victims,” stated Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office. “IRS-CI remains firmly committed to working with our law enforcement partners to identify and hold accountable those who abuse positions of trust for personal gain.”
According to documents filed in this case and statements made in Court:
From January 2021 through May 2021, Lam accepted bribes and leveraged his position at TD Bank to identify bank accounts with large balances and steal confidential customer information. Lam shared that information with outside co-conspirators, who used it to defraud customer accounts. Separately, from May 2022 through August 2022, Lam engaged in a scheme to bribe a co-conspirator employed at another financial institution to falsify bank records in opening a bank account for use in various fraud schemes by Lam’s co-conspirators. In total, Lam received at least $155,000 in bribes and facilitated $3,433,989.07 in fraud losses.
The charge of conspiring to commit wire fraud affecting a financial institution carries a maximum penalty of 30 years in prison and a fine of $1,000,000 or twice the amount involved in the offense or lost by a victim of the offense, whichever is greater. The charge of making false bank entries carries a maximum penalty of 30 years in prison and a fine of $1,000,000 or twice the amount involved in the offense or lost by a victim of the offense, whichever is greater.
U.S. Attorney Frazer credited special agents and task force officers of the Internal Revenue Service-Criminal Investigation (IRS-CI), Newark Field Office, under the direction of Special Agent in Charge Jenifer L. Piovesan, and the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), New York Region, under the direction of Special Agent in Charge Patricia Tarasca, with the investigation. U.S. Attorney Frazer also thanked the Morristown Police Department for its assistance with the investigation.
Assistant U.S. Attorney Marko Pesce, Deputy Chief of the Criminal Division for the District of New Jersey and Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Bank Integrity Unit of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section are prosecuting the case.
MNF’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.
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Defense counsel: Eric Jaso, Esq.
lam.information.pdfBank Insider Pleads Guilty to Facilitating Fraud Schemes at Two Financial InstitutionsRead the Press Release
A New York-based former employee of TD Bank N.A., Cheungkin Lam, also known as Kelvin Lam, pleaded guilty yesterday to defrauding TD Bank customers and bribing an employee at another financial institution to falsify bank records, which, in total, facilitated more than $3.4 million of fraud.
According to court documents, from January 2021 through May 2021, Lam, 28, of Queens, New York, accepted bribes and leveraged his position at TD Bank to identify bank accounts with large balances and steal confidential customer information. Lam shared that information with outside co-conspirators, who used it to defraud customer accounts. Separately, from May 2022 through August 2022, Lam engaged in a scheme to bribe a co-conspirator employed at another financial institution to falsify bank records in opening a bank account for use in various fraud schemes by Lam’s co-conspirators. In total, Lam received at least $155,000 in bribes and facilitated $3,433,989.07 in fraud losses.
“Lam abused his position as a bank employee to help fraudsters steal money from unwitting customers and bribed another bank employee to do the same,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Bank employees are the first line of defense against money laundering, fraud, and other financial crimes. When bank employees violate the public trust by using their positions to enrich themselves through financial crime, the Criminal Division will investigate and prosecute them.”
“Lam leveraged his and a co-conspirator’s insider positions at two different financial institutions to facilitate millions of dollars of fraud in exchange for bribes,” said U.S. Attorney Robert Frazer for the District of New Jersey. “We expect bank employees to help root out fraud, not enable it. The U.S. Attorney’s Office will continue to hold financial institutions and their employees accountable when they break the law and undermine the integrity of the financial system.”
“Cheungkin Lam’s conduct represents a grave breach of the trust placed in financial professionals,” said Special Agent in Charge Jenifer L. Piovesan of the IRS Criminal Investigation (IRS-CI) Newark Field Office. “By exploiting his access to sensitive customer information, Lam facilitated a significant fraud and compromised the integrity of the financial system and the security of innocent victims. IRS-CI remains firmly committed to working with our law enforcement partners to identify and hold accountable those who abuse positions of trust for personal gain.”
“Lam abused his trusted position as an employee of TD Bank to engage in bribery and perpetrate fraud that resulted in financial losses to unknowing bank customers,” said Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) New York Region. “The FDIC OIG stands firm in its commitment to working with our law enforcement partners to hold accountable bank insiders who exploit their positions for their own gain and threaten the safety and soundness of our Nation’s financial institutions.”
Lam pleaded guilty to conspiring to commit wire fraud affecting a financial institution and making false bank entries or reports. He is scheduled to be sentenced on Oct. 15 and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS-CI and FDIC-OIG are investigating the case. The Department also thanks the Morristown Police Department for its assistance with the investigation.
Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Marko Pesce, Deputy Chief of the Criminal Division for the District of New Jersey, are prosecuting the case.
The Money Laundering, Narcotics and Forfeiture Section’s (MNF) mission is to take the profit out of crime, eliminate drug cartels, and protect the U.S. financial system. MNF pursues criminal prosecutions and criminal and civil asset recovery actions involving: financial facilitators who launder profits for criminals; financial institutions and their officers and employees whose actions threaten the U.S. financial system and financial institutions; international money launderers who support transnational organized crime; and the top command and control of international drug trafficking organizations.
MNF’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.
Maryland Man Sentenced to 36 Months for Conspiracy to Commit Wire FraudRead the Press Release
CAMDEN, N.J. – A Maryland man was sentenced to 36 months in prison after pleading guilty for his role in a conspiracy to traffic personal identifying information (PII), U.S. Attorney Robert Frazer announced. Chief United States District Judge Renée M. Bumb imposed the sentence on April 23, in Camden federal court.
Chouby Charleron, 27, of Severn, Maryland, pleaded guilty before Chief Judge Bumb on November 19, 2025, to a single count Information that charged him with Conspiracy to Commit Wire Fraud.
According to documents filed in this case and statements made in court:
From at least February 2020 through his arrest on January 22, 2024, Charleron accessed and obtained the PII of thousands of unwitting individuals and then sold that PII to a network of co-conspirators through interstate wires using a web-based encrypted messaging application that users could access on their cellphones. Charleron was the administrator of a chat group that advertised the sale of PII to prospective co-conspirators. Charleron sold the PII, including Social Security numbers, of more than 5,000 victims to multiple co-conspirators. Charleron sold the PII with the knowledge that his co-conspirators would use the PII to, among other things, defraud or attempt to default the victims whose PII had been stolen.
In addition to the prison term, Chief Judge Bumb also ordered $102,288.18 in restitution and a term of supervised release of 2 years.
U.S. Attorney Frazer credited special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Michael S. McCarthy with the investigation.
The government is represented by Assistant U.S. Attorneys Dak Cohen and Alison Thompson of the Criminal Division in Camden and Newark respectively.
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Defense counsel: Gary Mizzone, Esq.
Honduran National Sentenced to 175 Months’ Imprisonment for Drug Distribution Offense in Atlantic CityRead the Press Release
CAMDEN, N.J. – A Honduran national was sentenced for possessing methamphetamine with intent to distribute it, United States Attorney Robert Frazer announced.
Diogenes Galvez, 21, of Atlantic City, New Jersey, previously pled guilty to possession with intent to distribute methamphetamine on May 19, before U.S. District Chief Judge Renée Marie Bumb in Camden federal court. Chief Judge Bumb sentenced Galvez to serve 175 months in prison followed by three years of supervised release.
According to the evidence and statements made in court:
On September 27, 2023, Atlantic City Police Department officers and agents with the FBI Safe Streets Task Force executed a search warrant at Galvez’s home. Officers found methamphetamine, crack cocaine, fentanyl, marijuana, and other controlled substances. Officers also found a loaded semiautomatic handgun that had a defaced serial number, as well as nearly $5,000 in cash. Prior to possessing the controlled substances and defaced firearm, Galvez had been convicted of multiple firearms offenses.
U.S. Attorney Frazer credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy of Newark, with the investigation. U.S. Attorney Frazer also thanked the Atlantic County Prosecutor’s Office, under the direction of Prosecutor William Reynolds, for its assistance in the investigation. The investigation was part of the U.S. Attorney and Atlantic County Violent Crimes Initiative (VCI), which is a collaboration of multiple local, state and federal law enforcement agencies operating within Atlantic County, including, but not limited to, the Atlantic City Police Department and the Atlantic County Sheriff’s Department, designed to identify the most violent offenders and coordinate law enforcement efforts.
The government is represented by Assistant U.S. Attorney Joseph McFarlane in Camden.
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Repeat Offender Charged with Child Exploitation OffensesRead the Press Release
TRENTON, N.J. – A Somerset County man was arraigned yesterday for attempted production and possession of child sexual abuse material (CSAM), U.S. Attorney Robert Frazer announced.
David Chapinski, 45, of Somerset, New Jersey, was charged in a three-count Indictment with attempted production of child pornography and possession of child pornography. Chapinski was arraigned yesterday before U.S. District Judge Zahid N. Quraishi in Trenton federal court.
According to documents filed in this case and statements made in court:
On August 31, 2025, David Chapinski was released from custody after completing multiple state sentences for child-exploitation, including creating “upskirting” photographs or videos of minors and possession of CSAM. Within days of his release, on September 2, 2025, Chapinski attempted to film or photograph up the skirt of a 13-year-old minor. Less than two weeks later, on September 13, 2025, Chapinski surreptitiously recorded up the skirt of a 17-year-old minor, when a nearby good Samaritan detained him. Law enforcement executed a search warrant of Chapinski’s phone and found hundreds of images of CSAM. Investigators also identified additional CSAM in Chapinski’s online accounts.
If convicted, and because Chapinski has been previously convicted of certain qualifying offenses, Chapinski faces mandatory minimum prison sentences of 35 years’ imprisonment and maximum sentences of life imprisonment on the attempted production counts of the Indictment. If convicted of the possession count, Chapinski faces a mandatory minimum prison sentence of ten years’ imprisonment and a maximum sentence of 20 years’ imprisonment. Each of the offenses carry a maximum fine of $250,000, in addition to restitution and other assessments.
U.S. Attorney Frazer credited law enforcement members with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation leading to the charges. He also thanked the New Brunswick Police Department, under the direction of Chief Vicent Sabo, the Edison Police Department, under the direction of Chief Thomas Bryan, and the Middlesex County Prosecutors Office, under the direction of Prosecutor Linda Estremera, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Matt Belgiovine of the Criminal Division in Trenton.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.
The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Richard Potter, Esq.
chapinski.indictment.pdfReal Estate Investor Pleads Guilty to $230 Million Fraud ConspiracyRead the Press Release
TRENTON, N.J. – A New York man pleaded guilty today to participating in a scheme to fraudulently obtain more than $229.6 million in loans and to acquire multifamily and commercial properties through deception, U.S. Attorney Robert Frazerannounced.
Mordichai Weiss, 29, of Monsey, New York, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court to an information charging him with one count of wire fraud conspiracy.
“Commercial mortgage fraud schemes of this scale undermine the integrity of the lending system and inflict significant losses on financial institutions and taxpayers alike. Weiss and his co-conspirators orchestrated an elaborate scheme built on falsified records designed to trick lenders into funding loans that never should have been approved, resulting in tens of millions of dollars in losses to lenders and the public fisc. This case demonstrates our Office’s commitment to holding accountable those who exploit the financial system through deception and fraud.”
- U.S. Attorney Robert Frazer
“Multifamily properties serve an essential role in our housing system,” said Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) Special Agent in Charge Robert Manchak. “When fraudsters like Weiss and his co-conspirators provide false financial information to obtain loans on these properties, they not only defraud the lenders, but they also harm innocent tenants in New Jersey and across the U.S. who live in these buildings. In partnership with the U.S. Attorney’s Office, FHFA-OIG will continue to vigorously identify, investigate, and prosecute the fraudsters who undermine the integrity of our mortgage finance system.”
According to documents filed in this case and statements made in court:
Between April 2022 and June 2023, Weiss conspired with others to deceive lenders into issuing multifamily and commercial mortgage loans in amounts they otherwise would not have approved. To carry out the scheme, Weiss and his co-conspirators submitted falsified documents to lenders, including altered bank records and fraudulent settlement statements, to misrepresent the true purchase prices of the properties.
For example, in May 2023, Weiss agreed to purchase an apartment complex in Houston, Texas for approximately $66.9 million. Weiss and his co-conspirators provided the lender with a fraudulent purchase agreement reflecting a price of $97.8 million. That inflated figure was repeated across multiple falsified documents submitted in support of the loan. Relying on these misrepresentations, the lender approved and funded a loan of approximately $68.5 million, on which Weiss later defaulted.
In total, Weiss obtained approximately $229.6 million in loans from multiple financial institutions through this scheme. Ultimately, he defaulted on the loans, or the loan balances substantially exceeded the value of the underlying collateral, resulting in approximately $94.4 million in losses to lenders, including the Federal National Mortgage Association, commonly known as Fannie Mae, and the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac.
The sole count in the Information carries a maximum penalty of twenty years’ imprisonment and a fine of up to $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest. The sentencing date is not yet scheduled.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
U.S. Attorney Frazer credited special agents of the FHFA-OIG with the investigation. The government is represented by Assistant U.S. Attorney Matt Belgiovine of the Criminal Division in Trenton.
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Defense counsel: Gedalia Stern, Esq.
weiss.information.pdfNew Jersey Physical Therapist Sentenced to 12 Months in Prison for Health Care Fraud Scheme Targeting AmtrakRead the Press Release
NEWARK, N.J. – A New Jersey physical therapist was sentenced today for her role in a health care fraud scheme targeting Amtrak’s health care plan, U.S. Attorney Robert Frazer announced.
Taejin Kim, 44, of Fort Lee, New Jersey, pleaded guilty on June 11, 2025, before U.S. District Judge Madeline Cox Arleo in Newark federal court to conspiracy to commit health care fraud. Kim was sentenced today to 12 months plus one day of imprisonment, two years’ supervised release, and ordered to pay over $2.2 million in restitution.
According to documents filed in this case and statements made in court:
From October 2019 through June 2022, Kim and her co-conspirators agreed to engage in a scheme to bill the Amtrak health care plan for fraudulent claims for services that never were provided and were medically unnecessary. Kim, a licensed physical therapist, allowed her license and business bank accounts to be used in the fraudulent billing scheme, in return for a portion of the proceeds. Other members of the conspiracy recruited Amtrak employees to participate in the scheme by paying them cash, in return for allowing the conspirators to use their personal and insurance information to submit false and fraudulent claims.
The conspiracy involved dozens of Amtrak employees and multiple health care providers, who paid hundreds of thousands of dollars in cash kickbacks to Amtrak employees over the course of the scheme. In total, the Amtrak health care plan paid over $11 million in fraudulent claims associated with providers connected to the scheme. The Amtrak health care plan paid out approximately $2,253,453 for claims associated with Kim. The investigation has resulted in the prosecution of nineteen individuals, including Kim. All have pleaded guilty to conspiracy to commit health care fraud.
U.S. Attorney Frazer credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge James Harper, the Amtrak Police Department, under the direction of Acting Chief of Police James Cook, and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York, with the investigation.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
The government is represented by Assistant U.S. Attorney Katherine M. Romano, Co-Chief of the General Crimes Unit, and Assistant U.S. Attorney Kathleen O’Leary of the Health Care Fraud and Opioids Enforcement Unit.
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Defense counsel: Alyssa Cimino, Esq.
New Jersey Manufacturer Pleads Guilty to Distributing Contaminated Food Associated with Listeria OutbreakRead the Press Release
NEWARK, N.J. – A New Jersey cheese manufacturer today admitted to introducing adulterated queso fresco into interstate commerce, U.S. Attorney Robert Frazer announced.
Abuelito Cheese Inc. a/k/a “El Abuelito Cheese,” a distributor of food products located in Paterson, New Jersey, pleaded guilty today before U.S. Magistrate Judge Cari Fais in Newark federal court to an Information charging the company with introducing adulterated food into interstate commerce.
According to documents filed in this case and statements made in court:
Abuelito manufactured food products, including soft, fresh cheese known as queso fresco, at its facility in New Jersey. It distributed products, including queso fresco, within New Jersey and to neighboring states. In February 2020, the U.S. Food and Drug Administration (FDA) conducted an inspection of Abuelito’s facility and alerted the company to the presence of non-pathogenic Listeria innocua and Listeria grayi in its facility. In June 2020, the FDA issued a Warning Letter to Abuelito, expressing serious concerns regarding alleged Food, Drug, and Cosmetic Act (FDCA) violations, and warning that conditions in the company’s facility were conducive for pathogenic Listeria monocytogenes. Abuelito’s products were ultimately linked to a February 2021 outbreak of listeriosis that resulted in at least 13 hospitalizations and one death across four states.
The offense carries a maximum potential penalty of 5 years of probation, and a fine of $500,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for October 15, 2026.
Individuals who believe they may have been impacted by the 2021 listeriosis outbreak associated with products sold as El Abuelito Cheese brand, distributed in Connecticut, New Jersey, Pennsylvania, and New York; Rio Grande Food Products brand, distributed in Virginia, North Carolina, and Maryland; and Rio Lindo brand, distributed in North Carolina and Maryland, may contact the Department of Justice’s Victim Witness Unit via the following toll free number: (888) 549-3945 or email: [email protected].
U.S. Attorney Frazer 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 McMillan, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Katherine M. Romano, Co-Chief of the General Crimes Unit, and Trial Attorney Lauren M. Elfner of the Department of Justice, Criminal Division, Fraud Section.
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Defense counsel: Matthew Oliver, Esq.
abuelito.information.pdfNew Jersey Man Admits His Role in a Scheme Involving the Theft of More Than $250,000Read the Press Release
Newark, N.J. – A New Jersey man admitted to engaging in wire fraud and aggravated identity theft that caused losses of more than $250,000, U.S. Attorney Robert Frazer announced.
Terrance Hart, 47, of Garfield, New Jersey, pleaded guilty before U.S. District Court Judge Stanley R. Chesler in Newark federal court yesterday to an Information charging him with wire fraud and aggravated identity theft. The sentencing date is scheduled for October 14. 2026.
According to documents filed in this case and statements made in court:
Hart opened or caused others to fraudulently open various bank accounts in the names of other individuals or entities, but that were actually under his control. Hart then deposited or caused others to deposit fraudulently obtained funds, including stolen United States Treasury checks, into the bank accounts. Then, Hart withdrew money from the bank accounts and converted the resulting funds to his personal use.
The wire fraud charge carries a maximum sentence of 20 years in prison and a fine of up to $250,000, or twice the value of the gain or loss, whichever is greater. The aggravated identity theft charge carries a mandatory consecutive sentence of two years in prison and a fine of up to $250,000, or twice the value of the gain or loss, whichever is greater.
U.S. Attorney Frazer credited special agents of the Federal Bureau of Investigation, Franklin Township Resident Agency, under the direction of Special Agent in Charge Stefanie Roddy, and special agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark with the investigation leading to this plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the Cybercrime Unit in Newark.
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Defense counsel: Claressa Lowe, Esq.
hart.information.pdfMexican National Sentenced for Cocaine Distribution and Illegal Firearm PossessionRead the Press Release
TRENTON, N.J. – A Mexican man was sentenced to 120 months’ imprisonment for possession with intent to distribute controlled substances and illegal firearm possession, United States Attorney Robert Frazer announced.
Hector Riano-Corcuera, 34, a citizen and national of Mexico, living in East Brunswick, New Jersey, pleaded guilty on May 19 before U.S. District Judge Zahid N. Quraishi on January 8, 2026 to a two-count Information charging him with distribution of controlled substances and unlawful possession of a firearm by a convicted felon. Judge Quraishi imposed the 120-month sentence on May 19, 2026 in Trenton federal court.
According to documents filed in this case and statements made in court:
In June 2025, law enforcement officers with the Drug Enforcement Administration arrested Riano-Corcuera after he sold approximately 10 kilograms of cocaine to another person. Before the arrest, Riano-Corcuera ran away from the officers. When they caught him, they found a loaded Sig Sauer 9mm firearm in his bag. When they executed a search warrant at Riano-Corcuera’s home, law enforcement found more cocaine, two semiautomatic rifles, three handguns, and ammunition.
In addition to the prison term, Judge Quraishi sentenced Riano-Corcuera to five years of supervised release following Riano-Corcuera’s term of imprisonment and ordered forfeiture of firearm and ammunition that Riano-Corcuera used to commit the offense.
United States Attorney Frazer credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Towanda R. Thorne-James, with the investigation leading to the sentence. U.S. Attorney Frazer also thanked the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy, the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Michael S. McCarthy, IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan, the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Linda Estremera, the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, the Ocean County Prosecutor’s Office, under the direction of Bradley D. Billhimer, the Asbury Park Police Department, under the direction of Police Director John B. Hayes, the East Brunswick Police Department, under the direction of Chief of Police Frank LoSacco, the Lakewood Police Department, under the direction of Chief of Police Gregory H. Meyer, the Manchester Township Police Department, under the direction of Chief of Police Antonio Ellis, the Middletown Police Department, under the direction of Chief of Police R. Craig Weber, the Neptune Police Department, under the direction of Chief of Police Anthony Gualario, the Ocean Gate Police Department, under the direction of Chief Michael Kuchta, and the Spotswood Police Department, under the direction of Chief of Police Philip Corbisiero, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Andrea Aldana, Esq., Federal Public Defenders.
Florida Man Charged for Using a Fraudulent Department of Justice Seal While Falsely Representing That He was a Federal ProsecutorRead the Press Release
NEWARK, N.J. – A Florida resident made his initial appearance in Newark Federal Court yesterday after he was arrested last week in Miami, Florida on charges that he used and affixed a fraudulently made Department of Justice seal on correspondence that he mailed to a luxury car company with corporate offices in New Jersey, while falsely representing that he was a federal prosecutor, U.S. Attorney Robert Frazer announced.
Paul Richard Johnson, 55, of Miami, Florida, is charged by complaint with fraudulent use of a government seal on a letter dated October 15, 2024, to an automotive manufacturer with corporate offices in New Jersey, in violation of Title 18, United States Code, Section 506(a)(2). The defendant appeared yesterday before U.S. Magistrate Judge José R. Almonte in Newark federal court.
According to documents filed in this case and statements made in court:
Johnson, who had never been employed by the DOJ, began corresponding with an automobile manufacturer around July 2024 to resolve a dispute related to Johnson’s unpaid automobile lease. Due to the length of the delinquency, the automobile company had referred the matter to collections and wrote off Johnson’s debt, which ultimately resulted in Johnson receiving negative credit report entries. In his attempt to get the automobile manufacturer to take steps to repair his credit history, Johnson affixed the DOJ seal to letters he transmitted to the company.
For example, on or about July 11, 2024, Johnson sent a letter to the company’s corporate offices in central Ohio that featured the DOJ seal on the letterhead along with a heading of “US Department of Justice” and a subheading of “National Security Division.” Johnson wrote this letter to complain that the company had “reported me to all three credit bureaus for a loan write-off.” Further, Johnson wrote that “DOJ’s internal security team which monitors my, and other, personal information” had purportedly confirmed that the automobile manufacturer had reported a delinquency that led to the notification of the three credit bureaus. Johnson signed the letter, described his position as “Supervising Attorney, Criminal Division,” and listed a fraudulent DOJ e-mail address, despite never having been employed there.
Johnson sent at least two additional letters to the automobile manufacture’s Ohio headquarters in which he affixed the fraudulent DOJ seal and represented himself to be an “Assistant United States Attorney.”
Then, around October 15, 2024, Johnson wrote a fourth letter, this one directed to the automobile manufacturer’s corporate offices in Bergen County, New Jersey. As with the three earlier letters, Johnson used letterhead featuring the DOJ seal and referred to the “US Department of Justice” under which appeared the subheading “National Security Division.” Johnson rehashed many of the statements and requests from his earlier letters, but added, in the concluding paragraph, that “[i]f there is anything you can do to facilitate an alternative outcome, I can categorically state that your actions will be looked upon both favorably by me, including but not limited to, the 94 other US Attorneys’ offices.” Beneath his signature, Johnson listed his occupation as “Assistant United States Attorney,” and listed the same fake e-mail account purportedly with the DOJ.
The charge of fraudulently using a government seal is punishable by a maximum potential penalty of five years in prison and a maximum $250,000 fine. The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Frazer credited special agents with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, and special agents of the United States Attorney’s Office, under the direction of Acting Special Agent in Charge Matthew Maltese in Newark, with the investigation leading to Johnson’s arrest.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions Division in Newark.
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Defense counsel:
John Yauch, AFPD, Newark
johnson.complaint.pdfSussex County Woman Sentenced to 20 Years in Prison for Exploiting a Then-Four-Year- Old Child and Producing Child PornographyRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey woman was sentenced in United States District Court to 20 years in prison in connection with the exploitation of a child and production of child pornography, U.S. Attorney Robert Frazer announced.
“There are few crimes more disturbing than the sexual exploitation of a young child. As the defendant admitted in court, she preyed on an exceptionally vulnerable four-year-old child, produced images of that abuse, and then distributed those materials online for others to view and share. This sentence reflects the extraordinary harm the defendant caused and demonstrates this Office’s unwavering commitment to protecting children and pursuing justice for victims who cannot protect themselves.”
- U.S. Attorney Robert Frazer
“The victim here is the epitome of innocent; a defenseless four-year old. The egregious crime cannot be erased, but this sentence should show others who think they can exploit children, the FBI Newark Child Exploitation and Human Trafficking Task Force will track you down and you will be brought to justice,” said Special Agent in Charge Stefanie Roddy.
Dominique Saczawa, 34, of Sparta, New Jersey, previously pleaded guilty before U.S. District Judge Edward S. Kiel in Camden federal court to production of child pornography, distribution of child pornography, advertisement of child pornography, and possession of child pornography. Judge Kiel imposed the sentence on May 18.
According to documents filed in these cases and statements made in Court:
In August 2021, law enforcement determined that Saczawa had sexually exploited a then-four-year-old child by engaging in sexual contact with the child and then producing images and videos of that sexual contact. Saczawa also shared these videos and images with others online.
Saczawa later admitted to running a group chat within an online messaging application in which participants discussed and shared content and images of child pornography. As an administrator of this group, Saczawa solicited participants to share such content and participants would be expelled from the group if they did not share. The images Saczawa shared included images of toddlers potentially as young as one year old being sexually assaulted.
In addition to the prison term, Judge Kiel also sentenced Saczawa to 15 years supervised release.
U.S. Attorney Frazer credited FBI Newark’s Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.
The government is represented by Assistant United States Attorney Rachelle M. Navarro of the Bank Integrity, Money Laundering, and Recovery Unit in Newark.
Defense counsel: Stephen Natoli, Esq.
Superseding Indictment Returned for New Jersey Pastor and Self-Proclaimed Prophet Who Compelled Labor and Sex from CongregantsRead the Press Release
NEWARK, N.J. — A grand jury in the District of New Jersey returned a superseding indictment today charging Treva Edwards, 61, of Orange, New Jersey with two counts of sex trafficking by force, fraud, or coercion, three counts of forced labor, and conspiracy to commit forced labor. The superseding indictment also charged his wife, Christine Edwards, 64, of Orange, New Jersey with conspiracy to commit forced labor.
According to the superseding indictment, Treva and Christine Edwards were the founders and pastors of a church they named “Jesus is Lord by the Holy Ghost,” which they operated out of a multi-unit apartment building in Orange, New Jersey, and where they conspired with each other and others to obtain the compelled labor of church members.
“Treva Edwards allegedly exploited faith, fear, and coercion to control vulnerable victims for his own benefit. As alleged in the superseding indictment, Edwards manipulated members of his church into providing uncompensated labor and subjected victims to physical, emotional, spiritual, and sexual abuse under the guise of religious authority. This Office will continue to work with our law enforcement partners to identify, investigate, and prosecute individuals who, as alleged here, use positions of trust and influence to traffic, exploit, and abuse vulnerable people.”
- U.S. Attorney Robert Frazer
As charged in the superseding indictment, between 2010 and 2025, the defendants identified and recruited victims who were facing struggles in their personal lives, including financial and familial struggles, to join the church and live and worship at the church building. Treva Edwards told the victims that he was a prophet who could communicate directly with God and that disobeying him would result in spiritual retribution, as well as physical, emotional, and financial harm.
The Edwardses secured labor contracts to provide manual labor in and around Orange, New Jersey, including cleaning and gutting commercial and residential properties, shoveling snow, removing bulk trash, moving furniture, cleaning raw sewage, and exterminating rodent infestations. The Edwardses dispatched the victims to perform the contracted labor. They did not pay wages to the victims for their work and kept the money earned from their labor.
Treva Edwards preached to the victims that he communicated God’s will, that it was God’s will for them to work, and that members had to perform labor to serve God. The Edwardses convinced the victims that they would lose favor with God and “the Prophet” if they did not perform labor. Treva Edwards spread fear among the victims through verbal and emotional abuse and threats of reputational harm, homelessness, hunger, spiritual retribution, punishments, and more hard labor to gain their obedience and compel them to perform unpaid labor. The Edwardses instituted and enforced strict rules about when and whether the victims could eat or sleep, when and for how long they were to pray and work, and whether they could speak to non-members or leave the church building. They isolated the victims, monitored their communications and whereabouts, and convinced them that non-members were evil or possessed by the devil. They also deprived the victims of sleep and typically fed them only once a day after they completed their work.
According to the allegations in the superseding indictment, Treva Edwards controlled and subjected two victims to repeated physical and sexual assaults, impregnating one victim and instructing her to get an abortion, and telling the other victim that having sex with him was God’s will and would prevent her from becoming mentally ill.
The charge of sex trafficking by force, fraud, or coercion against Treva Edwards carries a mandatory minimum penalty of 15 years in prison and a maximum penalty of life in prison. The forced labor charge against Treva Edwards carries a maximum penalty of twenty years or life in prison if the violation included aggravated sexual abuse. The conspiracy to commit forced labor charge carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
U.S. Attorney Robert Frazer and Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Michael S. McCarthy, and special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to this indictment.
Assistant U.S. Attorneys Trevor Chenoweth and Susan Millenky for the District of New Jersey and Trial Attorney Francisco Zornosa of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
The charges and allegations contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
HSI Newark is asking anyone with information about Treva Edwards, Christine Edwards, or their organization known as Jesus is Lord by the Holy Ghost (JLHG), to contact its tip line at (866) 347-2423 or email [email protected]. The tip line is monitored 10 a.m. to 6 p.m. Additionally, there is an online tip form.
If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at 1 (888) 373-7888.
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Defense counsel:
Treva Edwards: Laura Sayler, Esq., Newark, New Jersey
Christine Edwards: Wanda Akin, Esq., Newark, New Jersey
edwardsetal.supersedingindictment.pdfSuperseding Indictment Returned for New Jersey Pastor and Self-Proclaimed Prophet Who Compelled Labor and Sex from CongregantsRead the Press Release
A grand jury in the District of New Jersey returned a superseding indictment yesterday charging Treva Edwards, 61, Orange, New Jersey, with two counts of sex trafficking by force, fraud, or coercion, three counts of forced labor, and conspiracy to commit forced labor. The superseding indictment also charged his wife, Christine Edwards, 64, also of Orange, with conspiracy to commit forced labor.
According to the superseding indictment, Treva and Christine Edwards were the founders and pastors of a church they named “Jesus is Lord by the Holy Ghost,” which they operated out of a multi-unit apartment building in Orange, where they conspired with each other and others to obtain the compelled labor of church members.
As charged in the superseding indictment, between 2010 and 2025, the defendants identified and recruited victims who were facing struggles in their personal lives, including financial and familial, to join the church and live and worship at the church building. Treva Edwards told the victims that he was a prophet who could communicate directly with God and that disobeying him would result in spiritual retribution, as well as physical, emotional, and financial harm.
The Edwardses secured labor contracts to provide manual labor in and around Orange, including cleaning and gutting commercial and residential properties, shoveling snow, removing bulk trash, moving furniture, cleaning raw sewage, and exterminating rodent infestations. The Edwards couple dispatched the victims to perform the contracted labor. They did not pay wages to the victims for their work and kept the money earned from their labor.
Treva Edwards preached to the victims that he communicated God’s will, that it was God’s will for them to work, and that members had to perform labor to serve God. The defendants convinced the victims that they would lose favor with God and “the Prophet” if they did not perform the prescribed labor. Treva Edwards spread fear among the victims through verbal and emotional abuse and threats of reputational harm, homelessness, hunger, spiritual retribution, punishments, and additional hard labor to gain their obedience and compel them to perform unpaid labor. The Edwardses instituted and enforced strict rules about when and whether the victims could eat or sleep, when and for how long they were to pray and work, and whether they could speak to non-members or leave the church building. They isolated the victims, monitored their communications and whereabouts, and convinced them that non-members were evil or possessed by the devil. They also deprived the victims of sleep and typically fed them only once a day after they completed their work.
According to the allegations in the superseding indictment, Treva Edwards controlled and subjected two victims to repeated physical and sexual assaults, impregnating one victim and instructing her to get an abortion, and telling the other victim that having sex with him was God’s will and would prevent her from becoming mentally ill.
The charge of sex trafficking by force, fraud, or coercion against Treva Edwards carries a mandatory minimum penalty of 15 years in prison and a maximum penalty of life in prison. The forced labor charge against Treva Edwards carries a maximum penalty of 20 years or life in prison if the violation included aggravated sexual abuse. The conspiracy to commit forced labor charge carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division, U.S. Attorney Robert Frazer for the District of New Jersey, Special Agent in Charge Michael S. McCarthy of the Homeland Security Investigations (HSI) Newark Field Office, and Inspector General Anthony D’Esposito for the U.S. Department of Labor Office of Inspector General made the announcement.
HSI Newark Field Office and the U.S. Department of Labor Office of Inspector General Newark Field Office are investigating the case.
Trial Attorney Francisco Zornosa of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Trevor Chenoweth and Susan Millenky for the District of New Jersey are prosecuting the case.
HSI Newark is asking anyone with information about Treva Edwards, Christine Edwards, or their organization known as Jesus is Lord by the Holy Ghost (JLHG), to contact its tip line at (866) 347-2423 or email [email protected]. The tip line is monitored 10 a.m. to 6 p.m. Additionally, there is an online tip form.
If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at 1 (888) 373-7888.
New Jersey Man Indicted for Making Interstate ThreatsRead the Press Release
The Justice Department announced today that a New Jersey man was charged with making interstate threats to a Jewish organization located in New York, NY.
Cameron Patterson, 34, of Newark, New Jersey, was indicted on May 18 for transmitting interstate threats to injure the person of another. According to court records, Patterson sent three emails threatening physical harm to a New York-based Jewish non-profit organization on Oct. 6, 2024. The individuals who received these emails feared for their safety and reported the communications to law enforcement officers. A subsequent search of Patterson’s iCloud account revealed multiple images depicting or referencing violence, threats of violence, and mass shootings. Patterson, who was previously charged by complaint and released, will be arraigned on a date to be determined.
The charge of transmitting a threat in interstate or foreign commerce carries a maximum penalty of five years in prison and a maximum fine of $250,000.
U.S. Attorney Robert Frazer for the District of New Jersey and Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy of the FBI Newark Field Office with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Susan Millenky for the District of New Jersey and Trial Attorney Taylor Payne of the Justice Department’s Civil Rights Division.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New Jersey Man Indicted for Making Interstate ThreatsRead the Press Release
NEWARK, N.J. – A New Jersey man was charged with making interstate threats to a Jewish organization located in New York, NY, United States Attorney Robert Frazer and Assistant Attorney General Harmeet Dhillon of the Justice Department’s Civil Rights Division announced.
Cameron Patterson, 34, of Newark, New Jersey, was indicted on May 18, 2026 for transmitting interstate threats to injure another person. According to court records, Patterson sent three emails threatening physical harm to a New York-based Jewish non-profit organization on October 6, 2024. The individuals who received these emails feared for their safety and reported the communications to law enforcement. A search of Patterson’s iCloud account revealed multiple images depicting or referencing violence, threats of violence, and mass shootings. Patterson, who was previously charged by complaint and released, will be arraigned on a date to be determined.
The charge of transmitting a threat in interstate or foreign commerce carries a statutory maximum term of imprisonment of five years and a maximum fine of $250,000.
United States Attorney Frazer and Assistant Attorney General Dhillon credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Susan Millenky of the Criminal Division in Newark and Trial Attorney Taylor Payne of the Justice Department’s Civil Rights Division.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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patterson.indictment.pdfFive Members of New Jersey and Philadelphia Drug Trafficking Organization—including Two Jamaican Nationals—Arrested in NJ-Homeland Security Task Force OperationRead the Press Release
CAMDEN, N.J. – Five members and associates of a drug trafficking organization (DTO) operating in southern New Jersey and Philadelphia—including two Jamaican citizens—were arrested this week and charged with conspiracy to distribute methamphetamine, fentanyl, and cocaine, U.S. Attorney Robert Frazer announced.
“As alleged, this drug trafficking organization distributed large quantities of fentanyl, methamphetamine, and cocaine throughout southern New Jersey and Philadelphia while operating across state and national borders. Working through the Homeland Security Task Force and alongside our federal, state, and local partners, this Office is committed to dismantling transnational drug trafficking networks that flood our communities with deadly narcotics and fuel violence and addiction.”
- U.S. Attorney Robert Frazer
“This investigation dismantled a drug trafficking organization responsible for flooding communities across southern New Jersey and Philadelphia with dangerous quantities of fentanyl, methamphetamine, and cocaine,” said DEA New Jersey Field Division Special Agent in Charge Towanda R. Thorne-James. “The seizures in this case represent lives potentially saved from the devastating impact of these deadly narcotics. DEA and our law enforcement partners remain committed to targeting transnational criminal organizations that profit from addiction and violence, and we will continue using every investigative tool available to identify, disrupt, and dismantle these networks operating in our communities.”
This week’s charges are the result of a long-term wiretap investigation conducted by the Drug Enforcement Agency New Jersey Field Division’s Atlantic County HIDTA Task Force and the New Jersey State Police’s Gangs and Organized Crime South Unit.
Andrew Davis, a/k/a “Flip Mogella,” a/k/a “Floss King,” 47, a Jamaican citizen living in East Nottingham Township, Pennsylvania; Clifford Brown, 52, a Jamaican citizen living in Philadelphia, Pennsylvania; Damion Jones, 44, of Millville, New Jersey; James McBride, 53, of Marlton, New Jersey; and Jule Stubbs, 51, of Millville, New Jersey, all had their initial court appearances earlier this week before U.S. Magistrate Judge Ann Marie Donio in Camden federal court and were detained.
According to documents filed in this case and statements made in court:
In order to take down this DTO, law enforcement obtained wire-tap orders for Davis’s phones, conducted controlled drug purchases with a confidential source, performed physical and electronic surveillance, and executed search warrants. The investigation showed that the DTO distributed large quantities of methamphetamine, fentanyl/fentanyl analogue, and cocaine. The DTO obtained the drugs from packages sent to addresses the DTO controlled in southern New Jersey and the Philadelphia area. The complaint describes some of the drugs seized by law enforcement as part of the investigation, including more than 38 pounds of suspected methamphetamine, more than 7.5 kilograms of suspected cocaine, and almost 1 kilogram of fentanyl/fentanyl analogue.
The count charging conspiracy to distribute and possess with intent to distribute carries a maximum potential penalty of life imprisonment, a mandatory minimum penalty of 10 years’ imprisonment, and a maximum fine of $10 million.
U.S. Attorney Frazer credited special agents and task force officers with the Drug Enforcement Administration’s New Jersey Field Division, under the direction of Special Agent in Charge Towanda R. Thorne-James, and personnel with the New Jersey State Police, under the direction of Acting Superintendent Lt. Colonel (Ret.) Jeanne Hengemuhle, with the investigation leading to the charges in this case. U.S. Attorney Frazer also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania, under the direction of U.S. Attorney David Metcalf, the Federal Bureau of Investigation, Atlantic City Resident Agency, under the direction of Special Agent in Charge Stefanie Roddy in Newark, the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Andy Johns, and the Burlington County Prosecutor’s Office, under the direction of Prosecutor LaChia L. Bradshaw, for their assistance in the investigation.
These arrests are part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Atlantic City comprises agents and officers from DEA, FBI, and HSI with the prosecution being led by the United States Attorney’s Office for the District of New Jersey.
The government is represented by Assistant U.S. Attorneys Jeffrey Bender and Dak Cohen of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel:
Davis: Edward F. Borden, Jr., Esq., Cherry Hill, New Jersey
Brown: Ikram Ally, Esq., Assistant Federal Public Defender, Camden, New Jersey
McBride: Jonathan Sobel, Esq., Philadelphia, Pennsylvania
Jones: Jordan Zeitz, Esq., Haddonfield, New Jersey
Stubbs: Gina Amoriello, Philadelphia, Pennsylvania
stubbs.complaint.pdfTwo Pakistani Men and One Indian Man Charged with International Narcotics Trafficking on the Dark WebRead the Press Release
NEWARK, N.J. – A federal grand jury returned an indictment on May 12, 2026 charging two Pakistani men and one Indian man living in Hong Kong in connection with international narcotics trafficking using the dark web, U.S. Attorney Robert Frazer announced.
Waleed Shamim, 33, Sameer Shamim, 41, and Shareef Beig, 52, were indicted for conspiracy to distribute controlled substances and conspiracy to import controlled substances.
“As alleged, these defendants used dark web marketplaces and international shipping networks to move narcotics and counterfeit pills into the United States and target customers in New Jersey. Individuals who believe they can hide behind online aliases while trafficking dangerous drugs across international borders are mistaken—this Office and our law enforcement partners will identify them, disrupt their operations, and hold them accountable.”
- U.S. Attorney Robert Frazer
“The indictments of these foreign nationals highlight the grave dangers posed by transnational organizations who aim to distribute and import controlled substances into the United States,” said HSI Newark Special Agent in Charge Michael S. McCarthy. “Homeland Security Investigations remains steadfast in its commitment to working with our partners at U.S. Postal Inspection Service to identify and dismantle international narcotics trafficking networks that exploit the anonymity of the dark web.”
“Postal Inspectors, federal prosecutors, and our law enforcement partners have diligently worked to identify and disrupt the activities of dark web marketplaces suspected of peddling illegal pills. Postal Inspectors will continue to tirelessly investigate these types of crimes that utilize the U.S. Postal Service to facilitate illegal activity and bring those behind these hidden walls to justice,” said Inspector in Charge Christopher A. Nielsen.
According to the indictment filed in this case:
Between November 2021 and June 2022, Waleed Shamim and Sameer Shamim operated vendor accounts on various illicit dark web marketplaces under the moniker “Horsemen” or “Horsemen1,” and recruited people to assist in reshipping narcotics to customers. Waleed Shamim and Sameer Shamim, along with Shareef Beig, coordinated shipments of thousands of pills containing narcotics from Hong Kong to the United States.
The charges of conspiracy to distribute controlled substances and conspiracy to import controlled substances each carry a maximum penalty of 20 years in prison and a maximum fine of $1 million.
U.S. Attorney Frazer credited officers and special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Michael S. McCarthy in Newark, and inspectors the U.S Postal Inspection Serves, Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen.
The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the Cybercrime Unit in Newark.
The charges and allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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shamimetal.indictment.pdfPennsylvania Man Admits Detonating an Explosive Device Under Former Supervisor’s VehicleRead the Press Release
CAMDEN, N.J. – A Pennsylvania man admitted to denotating an explosive device under a vehicle that was parked at his former supervisor’s residence, announced U.S. Attorney Robert Frazer.
Michael Patrick Takacs, Jr., 44, of Warminster, Pennsylvania, pleaded guilty yesterday before U.S. District Judge Karen M. Williams in Camden federal court to an Information charging him with one count of transporting an explosive with the knowledge and intent that it would be used to intimate an individual and used unlawfully to damage and destroy property.
According to documents filed in this case and statements made in court:
After being terminated from his employment in or around April 2025, Takacs manufactured an improvised explosive device, commonly referred to as an “IED,” using explosive chemicals and a remote pyrotechnic device he purchased and filling the IED with shrapnel, including nails. In the early morning hours of July 26, 2025, Takacs transported the IED from Pennsylvania to his former supervisor’s personal residence in Delran, New Jersey and placed it under a vehicle parked in the driveway. While transporting the IED, Takacs took steps to conceal his identity by removing the license plate from his vehicle, leaving his personal cell phone at his house, and wearing a mask on his face. Ultimately, Takacs remotely detonated the IED in an effort to intimidate his former supervisor and to damage and destroy the vehicle.
The charge of transporting an explosive to intimidate or damage property carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for October 8, 2026.
U.S. Attorney Frazer credited the following with the investigation leading up to this guilty plea: special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark and Special Agent in Charge Wayne A. Jacobs in Philadelphia, the U.S. Attorney’s Office for the Eastern District of Pennsylvania, under the direction of U.S. Attorney David Metcalf, New Jersey Office of Homeland Security and Preparedness, under the direction of Director Thomas G. Hauck, New Jersey State Police, under the direction of Acting Superintendent Lt. Colonel (Ret.) Jeanne Hengemuhle, the Burlington County Prosecutor’s Office, under the direction of LaChia L. Bradshaw, the Delran (NJ) Township Police Department, under the direction of Acting Chief Matthew J. Gasper, the Warminster (PA) Township Police Department under the direction of Chief James Donnelly III, the Bucks County (PA) Sheriff’s Office, under the direction of Sheriff Daniel Ceisler, and the Bucks County District Attorney’s Office, under the direction of District Attorney Joe Khan.
The government is represented by Assistant U.S. Attorneys Casey S. Smith and Vincent D. Romano of the National Security Unit in Newark, with substantial assistance from the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
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Defense counsel: Thomas Young, Esq.
takacs.information.pdfNew York Physical Therapist Admits Participating in Health Care Fraud Scheme Targeting AmtrakRead the Press Release
NEWARK, N.J. – A New York physical therapist today admitted participating in a health care fraud scheme to defraud Amtrak, U.S. Attorney Robert Frazer announced.
Jaekwan Lee, 41, of Flushing, New York, pleaded guilty today before U.S. District Judge Madeline Cox Arleo in Newark federal court to an Indictment charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From January 2022 through June 2022, Lee and his co-conspirators agreed to engage in a scheme to bill the Amtrak health care plan for fraudulent claims for services that never were provided and were medically unnecessary. Lee, a licensed physical therapist, allowed his license and business bank accounts to be used in the fraudulent billing scheme, in return for a portion of the proceeds. Other members of the conspiracy recruited Amtrak employees to participate in the scheme by paying them cash, in return for allowing the conspirators to use their personal and insurance information to submit false and fraudulent claims.
The conspiracy involved dozens of Amtrak employees and multiple health care providers, who paid hundreds of thousands of dollars in cash kickbacks to Amtrak employees over the course of the scheme. In total, the Amtrak health care plan paid over $11 million in fraudulent claims associated with providers connected to the scheme. The Amtrak health care plan paid out over $800,000 for claims associated with Lee. The investigation has resulted in the prosecution of nineteen individuals, including Lee. All have pleaded guilty to conspiracy to commit health care fraud.
The health care fraud conspiracy charge carries a maximum potential penalty of 10 years in prison and fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for October 8, 2026.
U.S. Attorney Frazer credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge James Harper, the Amtrak Police Department, under the direction of Acting Chief of Police James Cook, and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Katherine M. Romano, Co-Chief of the General Crimes Unit, and Assistant U.S. Attorney Kathleen O’Leary of the Health Care Fraud and Opioids Enforcement Unit.
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Defense counsel: Megan Rha, Esq.
Largest Methamphetamine Seizure in New Jersey HistoryRead the Press Release
CAMDEN, N.J. – Two men were charged under the New Jersey Homeland Security Task Force (HSTF) with conspiring to distribute over 260 pounds of methamphetamine into New Jersey, which represents the largest seizure of methamphetamine in the state’s history, U.S. Attorney Robert Frazer announced.
“By preventing hundreds of pounds of methamphetamine from hitting the streets, this historic seizure has made New Jersey a safer place. And it has also sent an unmistakable message to drug traffickers who plan to enter the Garden State: stay out. We will find you and you will answer for any attempt to bring poison into our communities. I want to thank our law enforcement partners for their tireless work in this case and for putting themselves at risk for the benefit of public safety every day.”
- U.S. Attorney Robert Frazer
“Seizing 260 pounds of methamphetamine, the largest seizure in New Jersey, is a critical step in preventing these deadly drugs from reaching our neighborhoods,” stated DEA New Jersey Special Agent in Charge Towanda R. Thorne-James. “This success highlights the power of collaboration between DEA and our law-enforcement partners at every level. By working together, we are making our community safer and holding drug traffickers accountable.”
“This seizure and the resulting charges are a tremendous demonstration of partnerships at work, with members of the Homeland Security Task Force bringing these drug traffickers to justice. Over six million dollars of methamphetamine was seized, but what is priceless is the number of lives potentially saved by the extraordinary efforts of law enforcement in New Jersey,” said FBI Special Agent in Charge Stefanie Roddy.
“This seizure represents a decisive blow against a large‑scale drug trafficking organization that sought to move an extraordinary volume of methamphetamine into our state,” stated Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office. “This case reflects the dedication and cooperation of every agency involved, and together we will continue to safeguard the residents of New Jersey by pursuing those who finance and facilitate the distribution of dangerous narcotics.”
“Our communities are safer today as a result of the unwavering partnership between Homeland Security Investigations, the DEA, and our federal counterparts,” said HSI Newark Special Agent in Charge Michael S. McCarthy. “This operation underscores our collective dedication to disrupting transnational criminal organizations and safeguarding the public from the threats posed by illicit drugs.”
Marcos Cesar Acosta, 47, most recently of Chicago, Illinois, and Carlos H. Cordero-Guiterrez, 53, a citizen and national of Mexico, were charged by criminal complaint with one count of conspiracy to distribute controlled substances. Acosta and Cordero-Guiterrez made their initial appearances before U.S. Magistrate Judge Elizabeth A. Pascal on April 29, 2026 and were detained.
According to documents filed in this case and statements made in court:
On April 28, 2026, Acosta traveled to New Jersey to supervise the delivery of hundreds of pounds of methamphetamine by a truck driven by Cordero-Guiterrez. That evening, after the truck arrived in New Jersey loaded with the methamphetamine, law enforcement officers arrested Acosta and Cordero-Guiterrez. Law enforcement seized three black storage boxes, one duffel bag, and a garbage bag from the truck cab, all of which contained methamphetamine. Collectively, the seized methamphetamine weighed over 260 pounds.
The conspiracy to distribute methamphetamine charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a fine of up to $10 million.
U.S. Attorney Frazer credited special agents with the Drug Enforcement Administration (DEA) MOPOD Enforcement Group 11 and the DEA Camden Resident Office under the direction of Special Agent in Charge Towanda R. Thorne-James, for the investigation leading to the charges. He also thanked the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Michael S. McCarthy, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, and IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, for their assistance in the investigation.
This operation is part of the Homeland Security Task Force (HSTF) initiative. The HSTF is a United States government partnership dedicated to eliminating criminal cartels, transnational gangs, and transnational criminal organizations (TCOs) worldwide. This initiative identifies TCOs engaged in a wide range of criminal schemes that violate federal law, while dismantling cross-border human smuggling and trafficking networks that fuel violence and instability that threatens the safety and security of the United States and its global partners.
The government is represented by Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Marcos Cesar Acosta: Margaret M. Grasso, Esq.
Carlos H. Cordero-Gutierrez: James P. Maguire, Esq., Federal Public Defenders.
Former CEO of Healthcare Company Sentenced to Five Years in Prison for His Role in $212 Million Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – The former chief executive officer of a publicly traded healthcare services company was sentenced on May 5, 2026, for his role in a large-scale conspiracy to defraud investors in connection with the purchase or sale of the company’s securities, U.S. Attorney Robert Frazer announced.
Parmjit Parmar, a/k/a “Paul Parmar,” 55, of Colts Neck, New Jersey, had pleaded guilty on May 7, 2025, before U.S. District Judge Madeline Cox Arleo in Newark federal court to conspiracy to commit securities fraud. Parmar was sentenced to 60 months’ imprisonment, three years’ supervised release, and ordered to pay more than $125 million in victim restitution.
According to documents filed in this case and statements made in court:
From May 2015 through September 2017, Parmar and his conspirators, including Sotirios Zaharis, a/k/a “Sam Zaharis,” and Ravi Chivukula orchestrated an elaborate scheme to defraud a private investment firm and others out of hundreds of millions of dollars in connection with the funding of a transaction to take private a healthcare services company traded publicly on the London Stock Exchange’s Alternative Investment Market. To fund the transaction, the private investment firm put up approximately $82.5 million and a consortium of financial institutions put up another $130 million, for a total of approximately $212.5 million. The coconspirators utilized fraudulent methods to grossly inflate the value of the company and tricked others into believing that it was worth substantially more than its actual value.
Parmar and the conspirators sought to raise tens of millions of dollars in the public markets, purportedly to fund the company’s acquisitions of various operating subsidiaries. In reality, a number of those entities either did not exist or had only a fraction of the operating income attributed to them. The conspirators funneled the proceeds of these secondary offerings through bank accounts they controlled and used the money for a variety of purposes that had nothing to do with acquiring the purported targets. The conspirators went to great lengths to make it appear that these funds were revenue, concocting phony customers and altering bank statements to make it appear as if the funds were coming from customers.
To perpetuate the scheme, Parmar and his conspirators also falsified and fabricated bank records of subsidiary entities in order to generate a phony picture of Comrevenue streams and made material misrepresentations and omissions to the private investment firm and others.
Parmar and his conspirators’ actions caused victims to value the company at more than $300 million for purposes of financing the transaction to take the company private. The scheme was uncovered in September 2017, when Parmar and his conspirators resigned from their positions with the company or were terminated. On March 16, 2018, the company and numerous of its affiliated entities filed for bankruptcy, attributing the company’s financial demise, in large part, to the fraud scheme.
U.S. Attorney Robert Frazer credited special agents of the Federal Bureau of Investigations, under the direction of Special Agent in Charge Stefanie Roddy, with assistance from FBI Headquarters Forensic Accountant Support Team.
The government is represented by Assistant U.S. Attorneys George M. Barchini of the Bank Integrity, Money Laundering, and Recovery Unit and Kelly M. Lyons of the Economic Crimes Unit, with assistance from Assistant U.S. Attorneys Olta Bejleri of the Economic Crimes Unit, Carolyn Silane, Chief of the Economic Crimes Unit, and Peter A. Laserna, Chief of the Bank Integrity, Money Laundering, and Recovery Unit in Newark.
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Defense counsel for Parmar: John H. Hemann, Esq., San Francisco, CA; Andrew D. Goldstein, Victoria R. Pasculli, Esqs., New York, NY; Anuva V. Ganapathi, Esq., Palo Alto, CA
Morristown Man Admits Multi-Million Dollar Scheme to Defraud Small Businesses by Offering Phony Debt Relief ServicesRead the Press Release
NEWARK, N.J. – A Morristown man pled guilty on May 4, 2026 to conspiring to defraud small businesses by making false promises to induce them to enter debt relief contracts, U.S. Attorney Robert Frazer announced.
“This defendant didn’t just break the law—he exploited the financial vulnerability of small business owners who were trying to stay afloat and keep their doors open. By peddling sham debt-relief services and diverting millions for personal use, he turned trust into a weapon and hardship into profit. This case reflects our Office’s sustained commitment to pursuing complex financial fraud schemes and holding accountable those who target everyday business owners for personal gain.”
- U.S. Attorney Robert Frazer
“Small businesses are often the lifeblood of local economies. The cash-strapped victims in this investigation sought Csantaveri's help, hoping to keep their doors open during the COVID pandemic. Instead, he and his co-conspirators stole millions from unsuspecting owners. Fraud schemes are insidious and can take on many different forms and dimensions. If you or anyone you know has been swindled by fraudsters, please contact FBI Newark at 800-CALL-FBI,” said FBI Special Agent in Charge Stefanie Roddy.
Mark Csantaveri, 53, of Morristown, New Jersey, pled guilty before U.S. District Court Judge Karen M. Williams in Camden federal court to a single-count Information charging him with conspiracy to commit wire fraud. The sentencing date is scheduled for September 29, 2026.
According to documents filed in this case and statements made in court:
Csantaveri and his co-conspirators operated businesses that purported to provide small businesses with debt relief services. As part of the scheme, Csantaveri induced victims to make regular payments to one of Csantaveri’s businesses by falsely claiming that he would hold their money while negotiating favorable settlements with the victims’ creditors. Instead of using victim funds as promised, Csantaveri and his co-conspirators misappropriated it for their personal use, including over $1 million in gambling expenses. Over the course of the conspiracy, Csantaveri’s businesses took in approximately $3.7 million from small businesses and transferred approximately $3 million to Csantaveri’s and his co-conspirators’ accounts.
Conspiracy to commit wire fraud is punishable by a maximum of 20 years in prison and a fine of $250,000 or twice the gross gain or loss involved in the offense, whichever is greatest.
U.S. Attorney Frazer credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Aaron L. Webman, Deputy Chief of the Economic Crimes Unit in Newark.
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Defense counsel: Kristen Santillo, New York, NY
csantaveri.information.pdfSomerset Man Pleads Guilty to Fentanyl and Heroin DistributionRead the Press Release
TRENTON, N.J. – A Somerset man admitted to distributing fentanyl and heroin that led to the death of a victim, U.S. Attorney Robert Frazer announced.
Thomas Kane Miller, 41, of Somerset, New Jersey pleaded guilty yesterday before U.S. District Judge Robert Kirsch in Trenton federal court to a superseding information charging him with three counts of distribution and possession with intent to distribute fentanyl and heroin.
According to documents filed in this case and statements made in court:
In October 2022, in Somerset County, Miller distributed a substance containing fentanyl and heroin to a person who died as a result of using the substance. He also distributed fentanyl and heroin in Somerset County and Middlesex County on two other occasions in December 2022 and January 2023.
“Trafficking fentanyl and heroin can have deadly consequences and remains among the most serious crimes we prosecute. This defendant chose to traffic in deadly drugs, and that choice cost a life—today’s guilty plea reflects our commitment to hold accountable those who bring this poison into our communities and to pursue justice for the victims and families left behind.”
- U.S. Attorney Robert Frazer
Each of the three counts of drug distribution carries a maximum punishment of 20 years in prison. The sentences on each count may run consecutively. Each count also carries a potential fine of $1 million, and the defendant must be sentenced to a term of supervised release after any term of imprisonment imposed. Sentencing is scheduled for September 9, 2026.
U.S. Attorney Frazer credited special agents of the DEA Strike Force, New York Task Force Division, under the direction of Special Agent in Charge Christopher Roberts, and members of the Somerset County Prosecutor’s Office, under the direction of Prosecutor John P. McDonald, and members of the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano, Co-Chief of the General Crimes Unit, and Benjamin Levin, Chief of the Cybercrime Unit in Newark.
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Defense counsel: Aidan P. O’Connor, Esq.
miller.information.pdfMultiple Aliens Charged with Illegally Voting in Federal Elections and Making False Statements while Applying for U.S. CitizenshipRead the Press Release
NEWARK, N.J. – Four resident aliens in New Jersey were charged in separate criminal complaints in connection with illegally voting in federal elections and making false statements while applying for United States citizenship, U.S. Attorney Robert Frazer announced today.
According to the separate criminal complaints filed against them, David Neewilly, 73, of Atlantic County; Jacenth Beadle Exum, 70, of Bergen County; Idan Choresh, 43, of Monmouth County; and Abhinandan Vig, 33, of Monmouth County, were non-citizens when they registered to vote in New Jersey. On their respective voter registration forms, however, they falsely certified and attested that they were United States citizens. In order to register, and to vote, in federal elections, a person must be a United States citizen.
“As alleged, the defendants broke federal law by voting in elections they were not eligible to participate in, and then made false statements under oath to conceal that conduct. Today’s charges reflect this Office’s commitment to protecting the integrity of our election system, and ensuring that those who attempt to circumvent both our voting laws and our naturalization process are held accountable.”
- U.S. Attorney Robert Frazer
“This administration will not tolerate aliens who attempt to vote in our elections when they know they are not eligible,” said Acting Attorney General Todd Blanche. “As alleged, these green card holders lied in order to register to vote and then lied again to immigration authorities by falsely claiming never to have voted in a federal election. This Justice Department will use every authority to protect the integrity of U.S. elections, including by prosecuting any noncitizens who lie about their legal status in an attempt to vote.”
“Securing our elections from criminal actors here at home and around the world is one of the top priorities for this FBI,” said FBI Director Kash Patel. “Noncitizens voting is a federal crime - period - and while other administrations may have looked the other way in the past, those days are over. We continue to work around the clock with our interagency partners to ensure those who engage in such conduct will not get away with it.”
“HSI is actively investigating and rooting out election fraud wherever it can be found,” said ICE Director Todd M. Lyons. “This case shows that there is still work to do. Under President Trump and Secretary Mullin, HSI is committed to ensuring integrity in our election systems and ensuring that American citizens — and only American citizens — are electing American leaders.”
“The subjects are alleged to have knowingly circumvented one of our most sacred rights as citizens, the right to vote. The FBI and our partners will continue to pursue justice for those in violation of federal law, and keep the integrity of our elections intact,” said FBI Newark Special Agent in Charge Stefanie Roddy.
“This case highlights HSI’s dedication to safeguarding the integrity of the nation’s democratic and immigration processes,” said HSI Newark Special Agent in Charge Michael S. McCarthy. “HSI remains committed to collaborating with law enforcement partners to identify and address violations that threaten public trust in federal institutions.”
According to the criminal complaints, each of the defendants, still without United States citizenship, cast ballots in at least one federal election. Neewilly voted in the 2020 and 2024 general elections, Beadle Exum and Vig voted in the 2020 general election, and Choresh voted in the 2022 general election. The 2020 and 2024 general elections each included the election for the office of President and Vice President of the United States, and the 2022 general election included the election for Members of the House of Representatives.
The criminal complaints also allege that after illegally voting in federal elections, the defendants each applied to become United States citizens by submitting applications for naturalization (an “N-400”). An N-400 requires the applicant to swear under penalty of perjury that the information provided in the application is complete, true, and correct. Each of the defendants falsely claimed in their respective N-400 to have never registered, or voted, in any federal elections.
Neewilly was charged with Voting by an Alien in a Federal Election, in violation of 18 U.S.C. § 611; and False Statements in Relation to Naturalization, in violation of 18 U.S.C. § 1425(a). He had an initial appearance on April 22, 2026, before U.S. Magistrate Judge Sharon A. King in Camden federal court.
Choresh was charged with Voting by an Alien in a Federal Election, in violation of 18 U.S.C. § 611; Procurement of Citizenship or Naturalization Unlawfully, in violation of 18 U.S.C. § 1425(a); and False Statements in Relation to Naturalization, in violation of 18 U.S.C. § 1015(a). He had his initial appearance on May 1, 2026, before U.S. Magistrate Judge Cari Fais in Newark federal court.
Vig was charged with Procurement of Citizenship or Naturalization Unlawfully, in violation of 18 U.S.C. § 1425(a). He had his initial appearance on May 1, 2026, before U.S. Magistrate Judge Cari Fais in Newark federal court.
Beadle Exum was charged with False Statements in Relation to Naturalization, in violation of 18 U.S.C. § 1015(a); and False Statements in Relation to Naturalization, in violation of 18 U.S.C. § 1425(a). She had her initial appearance on May 1, 2026, before U.S. Magistrate Judge Cari Fais in Newark federal court.
If convicted, the defendants face the following maximum sentences:
CountOffenseMaximum Penalties1Voting by an Alien in a Federal Election, in violation of 18 U.S.C. § 6111 year’s imprisonment2False Statements in Relation to Naturalization, in violation of 18 U.S.C. § 1015(a)5 years’ imprisonment3False Statements in Relation to Naturalization / Procurement of Citizenship or Naturalization Unlawfully, in violation of 18 U.S.C. § 1425(a)10 years’ imprisonmentU.S. Attorney Frazer credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy; Homeland Security Investigations, under the direction of Special Agent in Charge Michael McCarthy; and U.S. Citizenship and Immigration Services, with the investigations.
These cases were brought under the United States Attorney’s Office’s Election Integrity Task Force, a coalition of federal law enforcement partners focused on preserving and protecting the integrity of elections conducted in the District of New Jersey.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Joseph McFarlane of the U.S. Attorney’s Office’s Special Prosecutions Division, and Assistant U.S. Attorney Benjamin D. Bleiberg of the Criminal Division.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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neewilly.complaint.pdf choresh.complaint.pdf beadleexum.complaint.pdf abhinandan.complaint.pdfFormer IRS Revenue Agent Charged with Embezzling more than $12 Million and Money Laundering as the Then-CFO and Controller of New Jersey-Based CompanyRead the Press Release
NEWARK, N.J. – A Bergen County man and former Revenue Agent for the Internal Revenue Service was arrested on April 30, 2026 for embezzling more than $12 million and money laundering as the then-Chief Financial Officer and Controller of a fuel company based in New Jersey, U.S. Attorney Robert Frazer announced.
“As alleged in the complaint, Robert McCloughy — a former IRS Revenue Agent entrusted to enforce the tax laws — used his position as a company’s CFO and Controller to steal more than $12 million and then launder the proceeds for his own benefit. This Office is committed to rooting out sophisticated financial fraud and holding accountable those who illegally exploit their positions to enrich themselves at the expense of others.”
- U.S. Attorney Robert Frazer
Robert M. McCloughy, 43, of Carlstadt, New Jersey was charged in a three-count complaint with one count of wire fraud and two counts of engaging in monetary transactions involving criminally derived property. McCloughy is expected to have his initial appearance on Wednesday before U.S. Magistrate Judge Cari Fais in Newark federal court.
According to documents filed in this case and statements made in court:
McCloughy previously served as a Revenue Agent with the Internal Revenue Service. In or around 2009, McCloughy was hired by a New Jersey-based fuel company (“Company-1”), where he served interchangeably as the CFO and Controller. From around March 2017 through March 2025, McCloughy misappropriated approximately $12 million from Company-1, separate and apart from what he was paid in the normal course. He did so through at least two methods: (1) causing Company-1’s payroll company to pay him unauthorized “expense” reimbursements; and (2) causing unauthorized transfers to be made from Company-1’s bank accounts to his personal bank accounts. To hide the fraud, McCloughy made false entries in Company-1’s books and records. Then, once McCloughy received the misappropriated funds, he engaged in money laundering transactions, including gambling large sums at online sportsbooks and casinos.
The charge of wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross amount of any pecuniary gain that any persons derived from the offense or of any pecuniary loss sustained by any victims of the offense, whichever is greatest. Each charge of money laundering carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the amount of criminally derived property involved in the transaction, whichever is greater.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
U.S. Attorney Robert Frazer credited special agents of IRS — Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Acting Special Agent in Charge Matthew Maltese with the investigation.
The government is represented by Assistant U.S. Attorneys Marko Pesce, Deputy Chief of the Criminal Division in Newark and Carolyn Silane, Chief of the Economic Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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mccloughy.complaint.pdfLeading Dark Web Marketplace Creator and Operator Extradited from Colombia to the United StatesRead the Press Release
A German national living in Colombia was extradited to the United States on charges that he owned and operated “The Versus Project,” an online dark web marketplace that enabled its over 380,000 registered users to buy and sell illegal goods.
The Versus Project, also known as Versus, was a leading dark web marketplace that enabled users to buy and sell illegal goods, including heroin and other illicit drugs, stolen and fraudulent identification documents and access devices, counterfeit currency, malware, and hacking tools. Versus operated from about November 2019 through about May 2022. During that time, Versus had over 380,000 registered users, offered over 32,000 product listings and facilitated over 300,000 completed orders, resulting in millions of dollars’ worth of transactions.
According to court documents, Patrick Schmitz, 37, of Taganga, Colombia, was a cofounder of Versus and handled the day-to-day management, such as responding to user tickets for assistance with issues on the platform, reviewing vendor applications, and resolving disputes between vendors and customers. Over time, Schmitz recruited and supervised staff who worked on Versus and reported to him. Schmitz also promoted Versus on the dark web, recruited vendors, and developed strategies to monetize Versus. Schmitz received a portion of the profits generated and his virtual currency wallets transacted in cryptocurrency worth millions of dollars.
“This extradition demonstrates the strength of the Justice Department’s international partnerships, and our ability to identify dark web criminals running platforms engaging in such widespread and varied illegal conduct,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The Versus Project allowed thousands of criminals to endanger the American people with heroin, illegal drugs, and tools for fraud and hacking. Although Versus hid on the dark web, today’s announcement demonstrates that Versus was not beyond the reach of the Justice Department and its international partners. Illegal online criminal marketplaces, no matter where they are located, will be targeted and brought down.”
“The indictment makes clear that law enforcement will shine a bright light on criminal conduct on the dark web,” said U.S. Attorney Robert Frazer for the District of New Jersey. “We will investigate and prosecute those who seek to use the anonymity of the dark web to profit from the sale of illegal goods. No matter how many monikers a user hides behind or where in the world they are, we will use all legal means to find them and bring them to justice.”
“HSI Newark’s unwavering efforts led to the identification, arrest, and extradition of a key international cybercriminal, significantly disrupting a major illicit online marketplace,” said Special Agent in Charge Michael S. McCarthy of the Homeland Security Investigations (HSI) Newark Field Office. “This action underscores the dedication of HSI and our partners to combating cyber-enabled crime and ensuring individuals who exploit the internet for illegal activities are held accountable.”
Versus was modeled after an e-commerce website. Users could choose a username and password to create a free account to access Versus. Users could then search for products by keyword or scroll through listings by category. The categories of products on Versus included “drugs,” “fraud,” “digital items,” “services,” and “software & malware.”
Versus required its users to transact in digital currencies, including Bitcoin and Monero, and did not allow for transactions in fiat currencies. Versus and its users were therefore able to bypass traditional financial systems, which collect information about their customers and maintain anti-money laundering and fraud programs. Versus generated revenue through multiple methods, including by keeping a percentage of each completed transaction as a commission and vendors were required to pay penalties if they were found to have violated Versus’ rules.
In June 2024, Schmitz was arrested in Colombia pursuant to a U.S. provisional arrest request. On April 29, Schmitz was extradited to the United States and earlier today had an initial appearance, was arraigned, and was ordered detained pending trial.
Schmitz is charged with one count of engaging in a continuing criminal enterprise, which carries a mandatory minimum penalty of 20 years in prison and a maximum penalty of life in prison; one count of narcotics conspiracy, which carries a mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison; one count of conspiracy to import controlled substances, which carries a maximum penalty of 20 years in prison; one count of distribution of controlled substances by means of the internet, which carries a maximum penalty of 20 years in prison; one count of use of a communications facility, which carries a maximum penalty of 4 years in prison; one count of conspiracy to commit access device fraud, which carries a maximum penalty of 10 years in prison; one count of conspiracy to unlawfully transfer an identification document, which carries a maximum penalty of 15 years in prison; and one count of money laundering conspiracy, which carries a maximum potential penalty of 20 years in prison.
The investigation was led by HSI Newark, under the direction of Special Agent in Charge Michael S. McCarthy. Valuable support was provided by the FBI’s Kansas City Field Office, under the direction of Special Agent in Charge Jeff Berkebile, and the IRS- Criminal Investigation Newark Field Office, under the direction of Special Agent in Charge Jenifer L. Piovesan. The Justice Department’s Office of the Judicial Attache in Bogota, Colombia, and the Policía Nacional de Colombia provided valuable assistance concerning Schmitz’s provisional arrest and extradition. The Justice Department’s Office of International Affairs and the United States Marshals Service also provided valuable assistance in securing Schmitz’s arrest and extradition.Trial Attorneys Jorge Gonzalez and Stefanie Schwartz of the Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Andrew Kogan of the Cybercrime Unit of the U.S. Attorney’s Office for the District of New Jersey are prosecuting this case.
This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs) and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
This is also the latest in the Justice Department’s ongoing JCODE efforts (Joint Criminal Opioid Darknet Enforcement) to address the growing number of illicit vendors operating on the darknet providing large quantities of harmful substances to thousands of people across the United States. The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Leading Dark Web Marketplace Creator and Operator Extradited from Colombia to the United StatesRead the Press Release
NEWARK, N.J. – A German national living in Colombia was extradited to the United States on charges that he owned and operated “The Versus Project,” an online dark web marketplace that enabled its over 380,000 registered users to buy and sell illegal goods, U.S. Attorney Robert Frazer announced.
A federal grand jury in the District of New Jersey previously returned an eight-count indictment, unsealed yesterday, charging Patrick Schmitz, 37, of Taganga, Colombia, in connection with his operation of the marketplace. In June 2024, Schmitz was arrested in Colombia pursuant to a U.S. provisional arrest request. On April 29, 2026, Schmitz was extradited to the United States and earlier today had an initial appearance before U.S. Magistrate Judge Cari Fais where Schmitz was detained pending trial.
The Versus Project, also known as Versus, was a leading dark web marketplace that enabled users to buy and sell illegal goods, including heroin and other illicit drugs, stolen and fraudulent identification documents and access devices, counterfeit currency, malware, and hacking tools. Versus operated from about November 2019 through about May 2022. During that time, Versus had over 380,000 registered users, offered over 32,000 product listings and facilitated over 300,000 completed orders, resulting in millions of dollars’ worth of transactions.
According to court documents, Patrick Schmitz, 37, of Taganga, Colombia, was a cofounder of Versus and handled the day-to-day management, such as responding to user tickets for assistance with issues on the platform, reviewing vendor applications, and resolving disputes between vendors and customers. Over time, Schmitz recruited and supervised staff who worked on Versus and reported to him. Schmitz also promoted Versus on the dark web, recruited vendors, and developed strategies to monetize Versus. Schmitz received a portion of the profits generated and his virtual currency wallets transacted in cryptocurrency worth millions of dollars.
“The indictment leading to this extradition makes clear that law enforcement will shine a bright light on criminal conduct on the dark web. We will investigate and prosecute those who seek to use the anonymity of the dark web to profit from the sale of illegal goods. No matter how many monikers a user hides behind or where in the world they are, we will use all legal means to find them and bring them to justice.”
- U.S. Attorney Robert Frazer
“This extradition demonstrates the strength of the Justice Department’s international partnerships, and our ability to identify dark web criminals running platforms engaging in such widespread and varied illegal conduct,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The Versus Project allowed thousands of criminals to endanger the American people with heroin, illegal drugs, and tools for fraud and hacking. Although Versus hid on the dark web, today’s announcement demonstrates that Versus was not beyond the reach of the Justice Department and its international partners. Illegal online criminal marketplaces, no matter where they are located, will be targeted and brought down.”
“HSI Newark’s unwavering efforts led to the identification, arrest, and extradition of a key international cybercriminal, significantly disrupting a major illicit online marketplace,” said HSI Newark Special Agent in Charge Michael S. McCarthy. “This action underscores the dedication of HSI and our partners to combating cyber-enabled crime and ensuring individuals who exploit the internet for illegal activities are held accountable.”
According to documents filed in this case and statements made in court:
Versus was modeled after an e-commerce website. Users could choose a username and password to create a free account to access Versus. Users could then search for products by keyword or scroll through listings by category. The categories of products on Versus included “drugs,” “fraud,” “digital items,” “services,” and “software & malware.”
Versus required its users to transact in digital currencies, including Bitcoin and Monero, and did not allow for transactions in fiat currencies. Versus and its users were therefore able to bypass traditional financial systems, which collect information about their customers and maintain anti-money laundering and fraud programs. Versus generated revenue through multiple methods, including by keeping a percentage of each completed transaction as a commission and vendors were required to pay penalties if they were found to have violated Versus’ rules.
In June 2024, Schmitz was arrested in Colombia pursuant to a U.S. provisional arrest request. On April 29, Schmitz was extradited to the United States and earlier today had an initial appearance where he was detained pending trial.
Schmitz is charged with one count of engaging in a continuing criminal enterprise, which carries a mandatory minimum penalty of 20 years in prison and a maximum penalty of life in prison; one count of narcotics conspiracy, which carries a mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison; one count of conspiracy to import controlled substances, which carries a maximum penalty of 20 years in prison; one count of distribution of controlled substances by means of the internet, which carries a maximum penalty of 20 years in prison; one count of use of a communications facility, which carries a maximum penalty of 4 years in prison; one count of conspiracy to commit access device fraud, which carries a maximum penalty of 10 years in prison; one count of conspiracy to unlawfully transfer an identification document, which carries a maximum penalty of 15 years in prison; and one count of money laundering conspiracy, which carries a maximum potential penalty of 20 years in prison.
U.S. Attorney Frazer credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Michael S. McCarthy, with leading the investigation. He also thanked the Internal Revenue Service - Criminal Investigation Newark Field Office, under the direction of Special Agent in Charge Jenifer L. Piovesan and the Federal Bureau of Investigation’s Kansas City Field Office, under the direction of Special Agent in Charge Jeff Berkebile. The Justice Department’s Judicial Attache in Bogota, Colombia, and the Policía Nacional de Colombia provided valuable assistance concerning Schmitz’s provisional arrest and extradition. The Justice Department’s Office of International Affairs and the United States Marshals Service also provided valuable assistance in securing Schmitz’s arrest and extradition.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the Cybercrime Unit in the District of New Jersey and Trial Attorneys Jorge Gonzalez and Stefanie Schwartz of the Computer Crime and Intellectual Property Section in Washington, D.C.
This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
This investigation is also the latest in the Justice Department’s ongoing JCODE efforts (Joint Criminal Opioid Darknet Enforcement) to address the growing number of illicit vendors operating on the darknet providing large quantities of harmful substances to thousands of people across the United States. The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt, and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains.
The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Alexis Schacht, Esq., New York; Donald Yanella, Esq., Ridgewood, NJ.
schmitz.indictment.pdfOpioid Manufacturer Purdue Pharma Sentenced for Fraud and Kickback ConspiraciesRead the Press Release
NEWARK, NJ — Opioid manufacturer Purdue Pharma LP (Purdue) was sentenced today in federal court in Newark, New Jersey, and ordered to pay criminal penalties of over $5 billion for its role in fueling the opioid epidemic.
“Purdue made billions by unlawfully marketing dangerous opioid products, and deceiving the DEA and the American people. Purdue profited by paying illegal kickbacks to induce providers, including those who diverted opioids to drug abusers, to prescribe even more opioids. Today’s multi-billion-dollar sentence holds Purdue accountable for its criminal conduct.”
- U.S. Attorney Robert Frazer
“Purdue Pharma put profits over patient health and safety,” said Acting Attorney General Todd Blanche. “The company willfully rejected the law and ignored the diversion of their highly addictive prescription drugs. Their actions contributed to the opioid crisis that claimed countless lives and destroyed entire families and communities. Today's sentence is a prime example of the Department’s effort to redress past wrongs by rooting out and punishing unlawful conduct by companies that have contributed to the national crisis.”
“The opioid epidemic in the United States is a plague that has ruined lives and destroyed families,” said FBI Director Kash Patel. “Purdue Pharma complicitly contributed to this national epidemic in the name of their own greed by blatantly ignoring the health and safety of patients putting countless lives at risk. The FBI and our DOJ partners will always work tirelessly to ensure that companies, like Pharma, pay for the harm they have inflicted and warn others that they will not get away with violating the law for personal gain.”
“Purdue Pharma undermined the government’s efforts to ensure compliance and prevent prescription drug diversion,” said Administrator Terrance Cole of the Drug Enforcement Administration (DEA). “Their actions fueled a surge in addiction and cost many Americans lives. The prescription opioid epidemic directly paved the way for today’s fentanyl crisis. DEA remains committed to working with registrants, communities, faith-based organizations, and schools to address the damage and end the opioid epidemic that has gripped our nation for far too long.”
“Purdue Pharma put profit ahead of American lives and, in doing so, helped engineer a public health catastrophe that has left a trail of suffering for families and communities across this nation,” said Inspector General T. March Bell of the U.S. Department of Health and Human Services Office of Inspector General (HHS‑OIG). “No penalty can undo the widespread devastation Purdue has inflicted, but today’s sentence serves long‑overdue accountability for its reckless and unlawful conduct. HHS‑OIG and our law enforcement partners will continue to investigate large corporations and conglomerates when they violate the Anti‑Kickback Statute and other federal laws designed to protect patients and the integrity of federally funded health care programs.”
“This generational case against Purdue Pharmaceuticals is one of the most important corporate enforcement cases ever brought by the Department of Justice,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The opioid epidemic was and continues to be a national tragedy that has destroyed far too many lives, families, and communities. Purdue callously focused on profits when it knew that providers were prescribing these addictive opioids to patients without a legitimate medical purpose. While good progress has been made in combating the national opioid crisis, today’s sentencing is a reminder that there is much additional work to be done. Companies like Purdue that place illicit profits over the obligation to be a good and honest corporate citizen will be investigated and prosecuted. Today’s sentencing reflects Purdue’s role in fueling the opioid crisis and concludes the Department’s efforts to hold Purdue accountable for diversion of its products. The Criminal Division remains steadfast in our mission to seek justice on behalf of the American people.”
According to court documents, from 2007 and 2017, Purdue illegally marketed its opioid products to hundreds of prescribers the company had good reason to believe were prescribing these addictive drugs without a legitimate medical purpose. Purdue defrauded the DEA by misrepresenting the effectiveness of its programs designed to prevent illegal diversion, and used prescriptions written by problematic prescribers to justify its fraudulent requests to the DEA to increase the amount of its products it was permitted to manufacture. In order to induce doctors to prescribe more of its addictive opioid products, Purdue also paid kickbacks to prescribers through its doctor speaker program and to an electronic health record platform.
The court ordered Purdue to pay a criminal fine of $3.544 billion, which will be assessed in connection with the bankruptcy proceedings, and an additional $2 billion in criminal forfeiture. The Department will credit up to $1.775 billion against the $2 billion forfeiture amount based on the value conferred to state, local, and tribal governments through Purdue’s bankruptcy if Purdue ceases to operate in its current form and emerges from bankruptcy as a public benefit company (PBC) or entity with a similar mission designed for the benefit of the American public. The proceeds of the PBC will be directed toward state and local opioid abatement programs. In addition, Purdue is required to host a public document repository containing documents relating to the criminal charges.
On Nov. 24, 2020, Purdue pleaded guilty to a three-count felony information charging it with one count of a dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute.
The FBI’s Washington, D.C. and Newark field offices investigated the case, with assistance from investigators from HHS-OIG and the DEA.
The government is represented in the District of New Jersey by Deputy U.S. Attorney R. David Walk, Jr. and Assistant U.S. Attorneys Jordan M. Anger and Robert Toll. Trial Attorney Maryann McGuire of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eugenia Cowles for the District of Vermont also prosecuted the case.
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Opioid Manufacturer Purdue Pharma Sentenced for Fraud and Kickback ConspiraciesRead the Press Release
Opioid manufacturer Purdue Pharma LP (Purdue) was sentenced today in federal court in Newark, New Jersey, and ordered to pay criminal penalties of over $5 billion for its role in fueling the opioid epidemic.
“Purdue Pharma put profits over patient health and safety,” said Acting Attorney General Todd Blanche. “The company willfully rejected the law and ignored the diversion of their highly addictive prescription drugs. Their actions contributed to the opioid crisis that claimed countless lives and destroyed entire families and communities. Today's sentence is a prime example of the Department’s effort to redress past wrongs by rooting out and punishing unlawful conduct by companies that have contributed to the national crisis.”
“The opioid epidemic in the United States is a plague that has ruined lives and destroyed families,” said FBI Director Kash Patel. “Purdue Pharma complicitly contributed to this national epidemic in the name of their own greed by blatantly ignoring the health and safety of patients putting countless lives at risk. The FBI and our DOJ partners will always work tirelessly to ensure that companies, like Pharma, pay for the harm they have inflicted and warn others that they will not get away with violating the law for personal gain.”
“This generational case against Purdue Pharmaceuticals is one of the most important corporate enforcement cases ever brought by the Department of Justice,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The opioid epidemic was and continues to be a national tragedy that has destroyed far too many lives, families, and communities. Purdue callously focused on profits when it knew that providers were prescribing these addictive opioids to patients without a legitimate medical purpose. While good progress has been made in combating the national opioid crisis, today’s sentencing is a reminder that there is much additional work to be done. Companies like Purdue that place illicit profits over the obligation to be a good and honest corporate citizen will be investigated and prosecuted. Today’s sentencing reflects Purdue’s role in fueling the opioid crisis and concludes the Department’s efforts to hold Purdue accountable for diversion of its products. The Criminal Division remains steadfast in our mission to seek justice on behalf of the American people.”
“Purdue Pharma undermined the government’s efforts to ensure compliance and prevent prescription drug diversion,” said Administrator Terrance Cole of the Drug Enforcement Administration (DEA). “Their actions fueled a surge in addiction and cost many Americans lives. The prescription opioid epidemic directly paved the way for today’s fentanyl crisis. DEA remains committed to working with registrants, communities, faith-based organizations, and schools to address the damage and end the opioid epidemic that has gripped our nation for far too long.”
“Purdue Pharma put profit ahead of American lives and, in doing so, helped engineer a public health catastrophe that has left a trail of suffering for families and communities across this nation,” said Inspector General T. March Bell of the U.S. Department of Health and Human Services Office of Inspector General (HHS‑OIG). “No penalty can undo the widespread devastation Purdue has inflicted, but today’s sentence serves long‑overdue accountability for its reckless and unlawful conduct. HHS‑OIG and our law enforcement partners will continue to investigate large corporations and conglomerates when they violate the Anti‑Kickback Statute and other federal laws designed to protect patients and the integrity of federally funded health care programs.”
“Purdue made billions by unlawfully marketing dangerous opioid products, and deceiving the DEA and the American people,” said U.S. Attorney Robert Frazer for the District of New Jersey. “Purdue profited by paying illegal kickbacks to induce providers, including those who diverted opioids to drug abusers, to prescribe even more opioids. Today’s multi-billion-dollar sentence holds Purdue accountable for its criminal conduct.”
“By prioritizing profits over people, Purdue prolonged the suffering of patients, leaving them trapped in opioid addiction long after their initial pain subsided,” said First Assistant U.S. Attorney Jonathan A. Ophardt for the District of Vermont. “While no resolution adequately could reflect the struggles of people across New England who lost their lives and their loved ones to addiction, today’s sentence takes a substantial step toward recognizing and redressing the harm Purdue caused.”
According to court documents, from 2007 and 2017, Purdue illegally marketed its opioid products to hundreds of prescribers the company had good reason to believe were prescribing these addictive drugs without a legitimate medical purpose. Purdue defrauded the DEA by misrepresenting the effectiveness of its programs designed to prevent illegal diversion, and used prescriptions written by problematic prescribers to justify its fraudulent requests to the DEA to increase the amount of its products it was permitted to manufacture. In order to induce doctors to prescribe more of its addictive opioid products, Purdue also paid kickbacks to prescribers through its doctor speaker program and to an electronic health record platform.
The court ordered Purdue to pay a criminal fine of $3.544 billion, which will be assessed in connection with the bankruptcy proceedings, and an additional $2 billion in criminal forfeiture. The Department will credit up to $1.775 billion against the $2 billion forfeiture amount based on the value conferred to state, local, and tribal governments through Purdue’s bankruptcy if Purdue ceases to operate in its current form and emerges from bankruptcy as a public benefit company (PBC) or entity with a similar mission designed for the benefit of the American public. The proceeds of the PBC will be directed toward state and local opioid abatement programs. In addition, Purdue is required to host a public document repository containing documents relating to the criminal charges.
On Nov. 24, 2020, Purdue pleaded guilty to a three-count felony information charging it with one count of a dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute.
The FBI Washington D.C. Field Office investigated the case, with assistance from investigators from HHS-OIG and the DEA.
Trial Attorney Maryann McGuire of the Criminal Division’s Fraud Section, Assistant U.S. Attorneys David Walk, Jordan Anger, and Robert Toll for the District of New Jersey and Assistant U.S. Attorney Eugenia Cowles for the District of Vermont prosecuted the case.
New Jersey Company Sentenced for Failing to Report Dangerously Defective Air Conditioners to the Consumer Product Safety CommissionRead the Press Release
Royal Sovereign International Inc., a New Jersey corporation that sold office and home appliances, was sentenced today to pay $395,786 in restitution to victims and a criminal fine of $8 million for failing to report to the U.S. Consumer Product Safety Commission (CPSC) dangerously defective air conditioners allegedly linked to more than 40 fires and one death.
According to court documents, Royal Sovereign, which also did business as Royal Centurian Inc., imported and sold more than 33,000 defective air conditioners manufactured in China between 2008 and 2014. The air conditioners used a faulty drain motor that could short circuit, causing them to catch fire and burn uncontrollably. Royal Sovereign recalled the defective air conditioner models in 2021.
Royal Sovereign pleaded guilty in August 2025 to a criminal information charging the company under the Consumer Product Safety Act (CPSA). In pleading guilty, the company admitted that it willfully failed to report information about the air conditioners immediately to the CPSC. According to the information, the company misled the CPSC in November 2010 by telling the agency that it was aware of only two fire incidents related to the air conditioners, and that it was no longer selling them. In reality, as alleged, the company knew of at least 16 fires and continued to sell the air conditioners. According to the CPSC recall notice, a woman died in August 2016 from smoke inhalation and her two children were injured after their Royal Sovereign air conditioner caught fire.
In addition to pleading guilty in the criminal case, Royal Sovereign previously agreed to a civil settlement with the United States that included a $16,025,000 civil penalty, the maximum authorized by the CPSA. The company has permanently ceased all operations involving the marketing, sale or distribution of consumer products.
Assistant Attorney General A. Tysen Duva of the Justice Department's Criminal Division, U.S. Attorney Peter Robert Frazer for the District of New Jersey, and Acting Chairman Peter A. Feldman of the U.S. Consumer Product Safety Commission made the announcement.
Trial Attorney Ethan Carroll of the Criminal Division’s Fraud Section prosecuted the case. Renee McCune of CPSC’s Office of the General Counsel and Assistant U.S. Attorney Fatime Meka Cano for the District of New Jersey provided valuable assistance.
Actions involving violative products imported into the United States are coordinated through the Department of Justice Trade Fraud Task Force, a cross-agency law enforcement effort involving the Criminal Division’s Fraud Section, the Civil Division, the Department of Homeland Security and U.S. Attorney’s Offices nationwide. The Task Force is designed to pursue enforcement actions against parties who seek to evade tariffs and other duties, as well as smugglers who seek to import prohibited goods into the American economy. The Criminal Division, in coordination with the Task Force, leverages all the department’s tools and authorities to fight fraud on the federal government and recover funds for the public fisc.
Paterson Firearms Trafficker Sentenced to 76 Months in Prison for Firearms and Drug OffensesRead the Press Release
CAMDEN, N.J. – A Paterson, New Jersey man was sentenced on April 20, 2026 to 76 months of imprisonment for his role in trafficking firearms and drugs, U.S. Attorney Robert Frazer announced.
Tony “Red” Crowe, 33, of Paterson, New Jersey, previously pleaded guilty before U.S. District Judge Edward S. Kiel to an Information charging him with one count of dealing firearms without a license, two counts of being a felon in possession, and one count of distributing and possessing with intent to distribute fentanyl.
According to documents filed in this case and statements made in court:
Over the course of a several-month investigation into the illegal trafficking of firearms and narcotics in Paterson, New Jersey, an undercover law enforcement agent purchased multiple firearms, including an AR- and AK-style rifles, as well multiple kilograms of fentanyl from Crowe. He made thousands of dollars from this illegal activity.
In addition to the prison term, Judge Kiel sentenced Crowe to 3 years of supervised release.
U.S. Attorney Robert Frazer credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Beau Kolodka, and officers with the Passaic County Sheriff’s Office, under the direction of Sheriff Thomas Adamo, with the investigation leading to these charges.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also part of the Paterson Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Bergen County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
The government is represented by Assistant United States Attorney Rachelle M. Navarro of the Bank Integrity, Money Laundering, and Recovery Unit.
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Defense counsel: Pasquale F. Giannetta, Esq.
Indian National Sentenced to 41 Months’ Imprisonment for Defrauding Telephone Providers and Insurance Companies of Millions of Dollars’ Worth of MerchandiseRead the Press Release
NEWARK, N.J. – An Indian national was sentenced on April 21, 2026 to 41 months of imprisonment for his role as the leader of a conspiracy to defraud various telephone providers and insurance companies out of millions of dollars by using stolen or fake identities to submit fraudulent claims for replacement cellular devices and then reselling those devices outside the United States, U.S. Attorney Robert Frazer announced.
Dhananjay Singh, 35, an Indian national, previously pled guilty before U.S. District Judge Madeline Cox Arleo to an Information charging him with one count of conspiracy to commit mail fraud and one count of conspiracy to commit interstate transfer of stolen property.
According to documents filed in this case and statements made in court:
From June 2013 through June 2019, Singh was involved in a widespread scheme to defraud cellular telephone providers and insurance companies using the U.S. mail system, as well as other third-party mail carriers. Singh and his co-conspirators used stolen and fake identities to submit false claims for lost, stolen or damaged cellular telephones, as well as other devices, in order to obtain replacement devices. Singh and his co-conspirators maintained a network of mailboxes and storage units across the United States, including in New Jersey, where the replacement devices would be shipped and then held before being sold to third parties outside the United States. The scheme resulted in millions of dollars of losses to the cellular telephone providers and insurance companies.
In addition to the prison term, Judge Arleo sentenced Singh to 3 years of supervised release and ordered restitution of over $10 million dollars.
U.S. Attorney Frazer credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stephanie Roddy in Newark and Assistant Director in Charge James C. Barnacle, Jr. in New York, postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Michael McCarthy; officers of U.S. Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Frank Russo; and the U.S. Department of State’s Diplomatic Security Service, New York Field Office, under the direction of Special Agent in Charge Brian Wood with the investigation leading to the charges.
The government is represented by Assistant United States Attorney Rachelle M. Navarro of the Bank Integrity, Money Laundering, and Recovery Unit.
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Defense counsel: Jeffrey Lichtman, Esq. and Jeffrey Einhorn, Esq.
Gloucester County Man Sentenced to 360 Months in Prison for Distributing Methamphetamine and FentanylRead the Press Release
CAMDEN, N.J. – A Gloucester County man was sentenced for distributing methamphetamine and fentanyl, U.S. Attorney Robert Frazer announced.
Ian Dudley, 39, of Williamstown, New Jersey, was previously convicted by a jury of conspiracy to distribute and possess with intent to distribute methamphetamine; and with six counts of possession with intent to distribute methamphetamine and/or fentanyl; before U.S. District Judge Christine P. O’Hearn in Camden federal court. On April 16, 2026, Judge O’Hearn sentenced Dudley to serve 360 months in prison followed by five years of supervised release.
According to the evidence presented at trial:
From June 2023 through October 2023, Dudley conspired with Joseph Watson and others to distribute crystal methamphetamine and fentanyl in Camden County and Gloucester County. During the conspiracy, Dudley sold approximately 17.5 pounds of crystal methamphetamine and approximately one ounce of fentanyl to an undercover federal agent.
U.S. Attorney Frazer credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent-in-Charge Beau Kolodka, with the investigation.
This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
The government is represented by Assistant U.S. Attorneys Joseph McFarlane and Josephine Park in Camden.
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Foreign National Charged with Illegally Obtaining U.S. Citizenship and U.S. PassportRead the Press Release
NEWARK, N.J. – A federal grand jury returned an Indictment on April 20, 2026, charging a New Jersey man with illegally obtaining United States citizenship and for fraudulently obtaining a United States passport, U.S. Attorney Robert Frazer announced.
Miguel Dario Bautista Jimenez, 41, of New Jersey was charged in a two-count Indictment with unlawful procurement of naturalization, in violation of Title 18, United States Code, Sections 1425(b) and 2, and passport fraud, in violation of Title 18, United States Code, Sections 1542 and 2.
According to documents filed in this case and statements made in court:
Miguel Dario Bautista Jimenez, a citizen of the Dominican Republic, was removed from the United States in or around 2013, following a conviction in New York for criminal sale of a controlled substance in the second degree. At some point after his 2013 removal, Bautista re-entered the United States using a false identity after his fingerprints had been partially mutilated. Bautista then used this false identity to fraudulently obtain U.S. citizenship documents through naturalization, including a U.S. passport.
The charges of unlawful procurement of naturalization and passport fraud each carry a maximum penalty of ten years’ imprisonment. Each offense carries a maximum fine of $250,000, or twice the gross loss or gain from the offense, whichever is greatest.
U.S. Attorney Frazer credited special agents of Homeland Security Investigations, New Jersey, under the direction of Special Agent in Charge Michael McCarthy, the Social Security Administration, Office of the Inspector General, New York Field Division, under the direction of Special Agent-in-Charge Amy Connelly, and the U.S. Department of State's Diplomatic Security Service, New York Field Office, under the direction of Special Agent in Charge Brian Wood, with the investigation.
The government is represented by Assistant U.S. Attorney Trevor Chenoweth of the Cybercrime Unit and Special Assistant U.S. Attorney Priscilla Gabela 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.
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jimenez.indictment.pdfBergen County Business Owner Admits Evading TaxesRead the Press Release
NEWARK, N.J. – A Bergen County business owner admitted evading over $230,000 in income taxes and payroll taxes, U.S. Attorney Robert Frazer announced.
Kfir Baroan, 50, of Fair Lawn, New Jersey, pleaded guilty on April 23, 2026, before U.S. District Judge Michael E. Farbiarz to an information charging him with tax evasion and willful failure to pay over payroll taxes associated with his business.
According to documents filed in this case and statements made in court:
Baroan operated an auto body shop in Bergen County, New Jersey, through which he earned significant income and had employees. From 2018 to 2021, Baroan failed to file income tax returns and failed to pay any taxes on his income. Baroan cashed over $1.5 million in business receipt checks at check-cashing facilities and used bank accounts associated with other businesses to deposit cash and to withdraw funds for personal and business expenses. Baroan also paid his employees in cash, failed to report the employees’ wages to the IRS, and failed to withhold, truthfully account for, and pay over a variety of taxes from employee wages. In total, Baroan evaded over $233,000 in taxes between 2018 and 2021.
The charge of income tax evasion carries a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greater. The charge of willful failure to pay over payroll taxes also carries a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greater. Sentencing is scheduled for September 2, 2026.
U.S. Attorney Frazer credited special agents of the IRS – Criminal Investigation under the direction of Special Agent in Charge Jennifer L. Piovesan, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Katherine M. Romano, Co-Chief of the General Crimes Unit in Newark.
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Defense counsel: Michael Weinstein, Esq.
baroan.information.pdfTwenty-Nine Members and Associates of Jersey City Drug Trafficking Organization Arrested with Narcotics and Firearm OffensesRead the Press Release
NEWARK, N.J. – Twenty-nine members and associates of a Jersey City-based drug trafficking organization (DTO) were arrested this week with fentanyl and cocaine trafficking and firearms offenses, U.S. Attorney Robert Frazer announced.
This week’s charges are the result of a long-term wiretap investigation conducted by Homeland Security Investigations (HSI); the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Hudson County Prosecutor’s Office (HCPO); Internal Revenue Service – Criminal Investigations (IRS-CI); U.S. Customs and Border Protection (CBP); the New Jersey State Police; and the Jersey City Police Department. The charges—against 31 individuals—include conspiracy to distribute and possess with the intent to distribute controlled substances, including fentanyl and cocaine; possession with intent to distribute controlled substances; and possession of firearms and ammunition by a convicted felon. (See chart below).
Twenty-nine defendants have been arrested in this operation so far. Twenty-six of the arrested defendants had their initial court appearances yesterday before U.S. Magistrate Judges Jessica S. Allen and Michael A. Hammer in Newark federal court. Three additional defendants had their initial court appearances today before U.S. Magistrate Judge Jessica S. Allen.
“These defendants operated a large-scale drug trafficking enterprise that distributed massive quantities of dangerous drugs, like fentanyl and cocaine. That ended this week. Through the incredible, collaborative work of our federal, state, and local partners, we arrested 29 of these purveyors of poison, seized kilogram quantities of fentanyl and cocaine, and took numerous firearms off the street. We will continue to work tirelessly to accomplish our mission – protect the people of New Jersey, drive down violent crime, and shut the flow of dangerous drugs into this District.”
- U.S. Attorney Robert Frazer
“Homeland Security Investigations Newark remains steadfast in its commitment to protect New Jersey communities from the threat of criminal organizations trafficking deadly drugs such as cocaine, heroin, and fentanyl,” said HSI Newark Special Agent in Charge Michael S. McCarthy. “Through the Homeland Security Task Force framework, and in close partnership with our federal, state, and local counterparts, we are sharing intelligence and resources, identifying regional distributors and suppliers, and dismantling violent gangs linked to transnational criminal networks. Today’s operation marks a decisive step forward in our ongoing efforts to stem the flow of illicit opioids, secure our borders, and confront the fentanyl crisis that endangers lives across our state. New Jersey is safer as a result of these actions, and HSI Newark will continue to pursue those who threaten our communities with relentless determination.”
“These arrests send a clear message that ATF, alongside our federal, state and local law enforcement partners will not tolerate the dangerous combination of drug trafficking and firearms. This case exemplifies our dedication to dismantling criminal enterprises that threaten the safety of our communities and the lives of our citizens,” said ATF Special Agent in Charge Beau Kolodka.
“U.S. Customs and Border Protection’s New York Field Office is proud to have contributed to this operation alongside our federal, state, and local partners,” said New York Director of Field Operations Frank Russo. “More than 70 CBP officers, including SRT warrant entry teams, brought critical expertise to this effort, while CBP’s Air and Marine Operations provided essential aerial support. The arrest of dozens of suspected gang members and associates, along with the seizure of firearms, narcotics, and illicit proceeds reflects the professionalism and dedication of the task force teams. We remain committed to protecting our communities and disrupting violent criminal organizations.”
“This outcome is the direct result of law enforcement at all levels, including the U.S. Attorney’s Office, HSI, and ATF, working together to make neighborhoods safer. I commend the members of the Hudson County Prosecutor’s Office Narcotics and Gang Task Force for their professionalism throughout this investigation, and thank all of our law enforcement partners who made this operation a success,” said Prosecutor Wayne Mello of the Hudson County Prosecutor’s Office.
“This takedown sends a clear and unmistakable message: drug trafficking will not be tolerated in our communities. This operation is the result of seamless coordination among federal, state, county, and local law enforcement—standing united against those who profit from poisoning our streets,” said Jeanne Hengemuhle, Acting Superintendent of the New Jersey State Police. “These dangerous drugs destroy lives, fuel violence, and erode the safety of our neighborhoods. This operation strikes at the heart of that threat, but our work is far from over. We will relentlessly pursue, dismantle, and hold accountable those who endanger our communities, with unwavering resolve and an unyielding commitment to public safety.”
According to documents filed in this case and statements made in court:
The defendants are members and associates of a Jersey City-based drug trafficking organization that operated and distributed narcotics in the areas of Mrytle Avenue and Mallory Avenue in Jersey City and elsewhere. During the investigation, law enforcement obtained multiple court orders authorizing the interception of wire and electronic communications occurring over multiple cell phones used for the drug trafficking organization’s activities. Law enforcement also used other investigative techniques including controlled drug purchases using confidential sources, mobile and fixed surveillance, and phone record analysis.
The investigation revealed that the DTO distributes large quantities of suspected fentanyl and cocaine. During the investigation, law enforcement conducted more than a dozen controlled drug buys, including substances that tested positive for fentanyl, from various members of the organization. On April 22, 2026, law enforcement executed dozens of search warrants for premises, vehicles, and other locations and seized more than approximately 15 kilograms of suspected fentanyl, three kilograms of suspected cocaine, a kilogram press, nineteen firearms, high-capacity magazines, a bulletproof vest, and more than $160,000 in cash. Two additional firearms were seized earlier in the investigation.
The count charging conspiracy to distribute and possess with intent to distribute carries a maximum potential penalty of 40 years’ imprisonment, a mandatory minimum penalty of 5 years’ imprisonment, and a maximum fine of $5 million. The counts charging possession with intent to distribute each carry a maximum potential penalty of 20 years’ imprisonment and a maximum fine of $1,000,000. The counts charging possession of firearms and ammunition by a convicted felon carry a maximum penalty of 15 years imprisonment and a maximum fine of $250,000.
U.S. Attorney Frazer credited special agents and task force officers with HSI, Newark Field Office, under the direction of Special Agent in Charge Michael S. McCarthy; special agents with ATF, Newark Field Division, under the direction of Special Agent in Charge Beau Kolodka; the HCPO, under the direction of Prosecutor Wayne Mello; special agents of the IRS-CI, under the direction of Special Agent in Charge Jenifer L. Piovesan; the Jersey City Police Department, led by Chief of Police Robert J. Kearns; the New Jersey State Police, under the direction of Acting Superintendent Lt. Colonel (Ret.) Jeanne Hengemuhle; and U.S. Customs and Border Protection, under the direction of Port Director TenaVel Thomas, with the investigation leading to the charges in this case.
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 Federal Bureau of Investigation (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.
This investigation is part of the Homeland Security Task Force (HSTF), which is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad.
This investigation is also part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The government is represented by Assistant U.S. Attorney John Maloy with the Organized Crime/Gangs Unit in Newark, with invaluable assistance from Hudson County Prosecutor’s Office Assistant Prosecutor Erica Bertuzzi.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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DEFENDANTS
Defendant NameChargesPotential PenaltiesDefense CounselJAMAAR MCGEACHY, a/k/a “Mooky”21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsAidan O’Connor, Esq.JOHNEL DUNLAP, a/k/a, “Supreme”21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsMichael T. Simon, Esq.ALBERT CLAWSON, a/k/a, “Pop”21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsLaurie M. Fierro, Esq.ROBERT SAWH21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsJohn Azzarello, Esq.NAKIA WIGGINS21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsStacy Biancamano, Esq.KION AMAKER, a/k/a, “Scooby”21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsMaximillian A. Novel, Esq.KENNETH HAYWARD, a/k/a, “Cutty” 21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsTBDJIMMY LEE COOPER, a/k/a “Flip”21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsPasquale Giannetta, Esq.CHRISTOPHER DANGELO, JR.21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsJoseph Amsel, Esq.SHANE IRBY21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsAdrien Moncur, Esq.RAHEAN BROWN, a/k/a, “Rah Rah”21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsTBDSHAON GRIFFIN21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsCharles Alvarez, Esq.DURAN WILLIAMS, a/k/a, “D Nice”21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsDavid E. Schafer, Esq.OMAR SISAY21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsMichael Pappa, Esq.HENRY BEATO21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsRoberto Espinosa, Esq.KEVIN HAMPTON, a/k/a, “CB”21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsJacqueline E. Cistaro, Esq.DWIGHT MCGEACHY21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsJulian Wilsey, Esq.BRUCE TAYLOR21 U.S.C. § 846, 18 U.S.C. § 922(g)5 year mandatory minimum, up to 40 years; up to 15 yearsLinda Foster, Esq.JAMAHL DANIELS21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsCharles McKenna, Esq.THOMAS NESMITH21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsErnesto Cerimele, Esq.YUSEF GREENE21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsAlyssa A. Cimino, Esq.IKECHI ANAELE, a/k/a “Ike”21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsBruce A. Levy, Esq.RASHONDA RIVERS21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsLaura K. Gasiorowski, Esq.SEQUANNA RIVERS21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsJoel Silberman, Esq.RAMERE PARKER, a/k/a “Parks”21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsMichael Rubas, Esq.ABDUL RAMSEY21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsKathleen Theurer, Esq.JEREMY POWELL, a/k/a “O Dog"21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsWilliam Strazza, Esq.KASIB JOHNSON, a/k/a “Peso”21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsKevin A. Buchan, Esq.BASHIR ALLEN, a/k/a “Barshir Allen”21 U.S.C. § 8465 year mandatory minimum, up to 40 yearsPerry Primavera, Esq.SHAYNE LOVE21 U.S.C. § 841Up to 20 yearsTBDMANEL SMITH21 U.S.C. § 841, 18 U.S.C. § 922(g)Up to 20 years; up to 15 yearsTBDRASHID SALEEM21 U.S.C. § 841, 18 U.S.C. § 922(g)Up to 20 years; up to 15 yearsTBDPassaic County Man Charged in One of the Largest Known Fentanyl and Methamphetamine Seizures in New Jersey HistoryRead the Press Release
NEWARK, N.J. – A Passaic County man was charged on Monday with trafficking fentanyl, methamphetamine, and cocaine base (“crack”) and firearms offenses in one of the largest known drug seizures in New Jersey history, U.S. Attorney Robert Frazer announced.
“Narcotics, especially fentanyl, and illegal firearms are a deadly combination that poisons our communities and fuels violence. These charges send a clear message to those who seek to profit by flooding our communities with dangerous drugs: our Office will find you, no matter where you hide or how sophisticated you believe your operation to be. This investigation reflects our commitment to shutting down drug trafficking operations and keeping the people of New Jersey safe from the violence and destruction they cause.”
- U.S. Attorney Robert Frazer
Nankel Stuardo Solorzano, 46, Clifton, New Jersey was charged in a four-count superseding complaint with possessing fentanyl, methamphetamine, and cocaine base with intent to distribute it, possessing firearms in furtherance of his drug trafficking crimes, and unlawfully possessing firearms as a previously convicted felon.
According to documents filed in this case and statements made in court:
Solorzano trafficked large quantities of narcotics out of a residential apartment complex in Clifton, New Jersey. Following an investigation, on April 17, 2026, Solorzano was arrested while attempting to access his stash following two drug deals. After his arrest, and pursuant to court-authorized search warrants, law enforcement conducted a search of Solorzano’s garages and vehicle and discovered millions of dollars’ worth of drugs. Law enforcement seized over 40 kilograms of fentanyl, approximately 52 kilograms of methamphetamine, and more than 2 kilograms of cocaine base. They also recovered four firearms, including a stolen handgun, an AK-47-style rifle equipped with a large capacity magazine, and a 12-gauge shotgun, as well as a variety of ammunition and magazines. Following the charges in the superseding complaint, a court-authorized search warrant revealed an additional significant stash of narcotics in Solorzano’s apartment. Evidence from the investigation is depicted below.
The two counts charging Solorzano with possession with intent to distribute controlled substances each carry a maximum potential penalty of life imprisonment, a mandatory minimum penalty of 10 years’ imprisonment, and a maximum fine of $10 million. The count charging Solorzano with possession of firearms in furtherance of a drug trafficking crime carries a maximum potential penalty of life imprisonment, a mandatory minimum penalty of 5 years’ imprisonment, and a maximum fine of $250,000. The count charging Solorzano with possession of firearms and ammunition by a convicted felon carries a maximum penalty of 15 years imprisonment and a maximum fine of $250,000.
U.S. Attorney Robert Frazer credited with the investigation special agents of the Drug Enforcement Administration (DEA) New York Task Force Division Group T-24 under the direction of Special Agent in Charge Christopher Roberts in New York; DEA Charlotte Enforcement Group 2, the New York Police Department, the New York State Police, and the Clifton Police Department.
The government is represented by Assistant U.S. Attorney Katherine Ferrara of the General Crimes Unit in conjunction with the Narcotics and International Trafficking 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.
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Defense counsel: Eric W. Feinberg, Esq.
solorzano.complaint.pdfMaple Shade Man Sentenced to More Than 17 Years in Prison for Drug and Firearm Crimes, After Admitting One-Year-Old Victim Suffered Apparent Cocaine OverdoseRead the Press Release
CAMDEN, N.J. – A Burlington County man was sentenced to 211 months in prison after pleading guilty to possessing 50 grams or more of methamphetamine and possessing three firearms in furtherance of a drug trafficking crime, United States Attorney Robert Frazer announced. Chief United States District Judge Renée M. Bumb imposed the sentence in Camden federal court today.
“Drug trafficking fueled by firearms poisons our communities, and in this case nearly resulted in the death of a one-year-old child. The District of New Jersey will aggressively pursue traffickers who flood our neighborhoods with drugs, arm themselves to protect their profits, and put our most vulnerable lives at risk. We will hold them accountable under federal law.”
- U.S. Attorney Robert Frazer
Daniel Garcia Jr., 29, of Maple Shade, previously pled guilty on November 20, 2025, before Chief Judge Renée M. Bumb to a two-count information charging possession with intent to distribute more than 50 grams of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(A), and possession of firearms in furtherance of a drug trafficking offense, in violation of 18 U.S.C. § 924(c).
According to documents filed in this case and statements made in court:
On June 23, 2024, Garcia and another individual rushed the minor victim to the hospital because the minor was not breathing, having seizures, drooling, and unresponsive. The minor received life-saving care at the hospital and was later flown to a children’s hospital. As part of the medical treatment, the victim’s urine was screened for controlled substances. The tests returned positive results for benzodiazepine, fentanyl, and cocaine. Medical personnel at the children’s hospital informed law enforcement officers that the minor had been administered benzodiazepine and fentanyl during treatment, but that cocaine had not been administered. A doctor at the children’s hospital told law enforcement that the minor’s symptoms—including seizure, cardiac arrest, and cardiac arrythmia—were all symptoms of a cocaine overdose. The one-year-old victim’s heart stopped twice during the course of the medical care, but the minor thankfully was revived and survived.
While the victim was receiving life-saving treatment at the hospital, Garcia left the hospital and drove home. Surveillance video showed Garcia taking a laundry bag out of his home, putting it into the trunk of a different car than he had driven home, parking the second car across the parking lot in a location far from Garcia’s residence, and then driving the first car back to the hospital.
The next day, law enforcement executed a search warrant at Garcia’s home and found approximately $4,252 in cash, rubber bands consistent with those typically used in illegal drug packaging, an empty fold of paper consistent with illegal drug packaging, and an envelope containing both 9mm and .357 magnum ammunition. The day after that, June 25, 2024, law enforcement searched the car Garcia had parked across the parking lot, finding the laundry bag, $150,000 cash, approximately 329.1g of 100% pure methamphetamine, 767g of cocaine, 41 amphetamine tablets, 102 alprazolam tablets, 272 oxycodone tablets, 2.6g of MDMA powder, 1,341g of marijuana, 9.9g of psilocin and psilocybin mushrooms, 192g of crystalline cutting agents commonly used for illegal drug preparation, three digital scales, drug packaging material, two 9mm handguns, and a .357 magnum revolver. All three firearms were loaded.
In addition to the term of imprisonment, Chief Judge Bumb sentenced Garcia to two concurrent terms of five years of supervised release, to begin after the term of incarceration. Garcia also agreed to forfeit three firearms, more than 200 rounds of ammunition, and more than $155,000 that law enforcement seized in June 2024.
U.S. Attorney Frazer credited special agents of the Drug Enforcement Agency, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation. U.S. Attorney Frazer also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor LaChia L. Bradshaw, and the Maple Shade Police Department, under the direction of Chief Christopher Fletcher, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Camden.
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Defense counsel: Robin Kay Lord, Esq., Trenton, NJ.
Former Pharmacy President Sentenced to 24 Months in Prison for Health Care Fraud and Kickback Scheme Involving Compounded MedicationsRead the Press Release
NEWARK, N.J. – On April 1, 2026 Adam Brosius, 61, of Delray Beach, Florida, was sentenced to 24 months in prison for his role in a $33 million health care fraud and kickback scheme, U.S. Attorney Robert Frazer announced.
According to documents filed in this case and statements made in court:
From 2014 through 2016, Brosius and others used Main Avenue Pharmacy, a mail-order pharmacy with a storefront in Clifton, New Jersey, to run an illegal kickback scheme involving medically unnecessary compounded drugs including scar creams, pain creams, migraine mediation, and vitamins. Brosius worked as Main Avenue’s director of business development, and later as its president.
As part of the scheme, Main Avenue identified compounded drugs that would yield exorbitant reimbursements from health insurers, including both federal and commercial payers. Once Main Avenue identified lucrative formulas, it would create large prescription pads with those formulas on it and distribute the pads to marketers across the country. The marketing companies would in turn distribute the prescription pad to telemedicine companies and doctors with whom they had a financial arrangement.
After filling prescriptions, Main Avenue submitted claims to health care benefit programs for reimbursement, including Medicare, Tricare, and commercial payers in New Jersey and elsewhere. After Main Avenue obtained reimbursement, it paid kickbacks to marketers who had generated the prescriptions. Main Avenue signed contracts with many of the marketers, which detailed the illicit kickback arrangement, which called for Main Avenue to pay each marketer money based on the volume of referrals of compounded prescriptions and the reimbursement amount that Main Avenue received. Main Avenue received approximately $33 million in reimbursements for compounded medications alone from health care benefit programs. Over $5.8 million of that amount was paid by TRICARE, a federal payer.
In addition to the prison term, Judge Madeline Cox Arleo also ordered $33 million in restitution, $27 million in forfeiture, and a term of supervised release.
U.S. Attorney Frazer credited the following law enforcement organizations with the investigation leading to the sentencing: the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy; the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Christopher M. Silvestro.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano and Matthew Specht.
The Department of Justice has established the National Fraud Enforcement Division. The core mission of the National Fraud Enforcement Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. The National Fraud Enforcement Division will fulfill that mission by coordinating with agencies responsible for administering benefit programs; partnering with federal, tribal, state, territorial, and local law enforcement on fraud-fighting efforts; developing systems and processes that ensure efficient identification of fraud against taxpayer dollars; and equipping prosecutors and law enforcement with state-of-the-art tools and resources needed to bring criminal actors to justice. The attorneys in the National Fraud Enforcement Division will work every day to protect the financial integrity of our government and the tax system that supports it.
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Defense counsel:
David A. Eskew, Esq., New York, New York.
Mark A. Berman, Esq., Hackensack, New Jersey.
Florida Woman Sentenced to 18 Months’ Imprisonment for COVID-19 Relief Program FraudRead the Press Release
NEWARK, N.J. – A Florida woman who orchestrated a scheme to fraudulently obtain approximately $465,489 in COVID-19 relief funding was sentenced to 18 months’ incarceration in Newark federal court on Friday, U.S. Attorney Robert Frazer announced.
Jane Batista, 44, of Lake Worth, Florida, pleaded guilty before U.S. District Judge Evelyn Padin on October 1, 2024 to a two-count Information that charged her with one count of wire fraud and one count of money laundering.
According to documents filed in this case and statements made in court:
From April 2020 to August 2021, Batista submitted fraudulent Paycheck Protection Program (PPP) loan applications for herself, her husband, and two businesses they owned and operated. In support of those applications, Batista lied about the number of employees the businesses employed, the income the employees earned, and the revenue Batista and her husband generated as sole proprietors. Batista also submitted forged documents, including fake tax return documents. After the victim lenders funded the loans, Batista used that money for personal expenses and made several large transfers, including one for approximately $15,000.
In addition to the prison term, Judge Padin ordered forfeiture in the amount of $465,489 and imposed a two-year term of supervised release.
U.S. Attorney Frazer credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly; special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Acting Special Agent in Charge Matthew Maltese with the investigation.
The Department of Justice has established the National Fraud Enforcement Division. The core mission of the National Fraud Enforcement Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. The National Fraud Enforcement Division will fulfill that mission by coordinating with agencies responsible for administering benefit programs; partnering with federal, tribal, state, territorial, and local law enforcement on fraud-fighting efforts; developing systems and processes that ensure efficient identification of fraud against taxpayer dollars; and equipping prosecutors and law enforcement with state-of-the-art tools and resources needed to bring criminal actors to justice. The attorneys in the National Fraud Enforcement Division will work every day to protect the financial integrity of our government and the tax system that supports it.
The government is represented by Assistant U.S. Attorneys Aaron L. Webman, Deputy Chief of the Economic Crimes Unit, and Robert Taj Moore of the Cybercrime Unit in Newark.
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Defense counsel: Murray Richman, Esq.
Renée C. Hill, Esq.
Oregon Man Convicted of Possessing and Transporting Child PornographyRead the Press Release
NEWARK, N.J. – A Newberg, Oregon man was convicted of possessing and transporting child pornography after a multi-day trial, U.S. Attorney Robert Frazer announced.
Jayson Setera, 51, of Newberg, Oregon, was convicted by a federal jury of one count of possession of prepubescent child pornography and one count of transportation of child pornography following a multi-day trial before U.S. District Judge Jamel K. Semper in Newark federal court. Sentencing is scheduled for August 17.
“The sexual exploitation of children is a grave crime that fuels ongoing abuse, and it will not be tolerated in this District. This defendant possessed and transported material that victimized some of the most vulnerable among us, and this conviction reflects our unwavering commitment to find, prosecute, and hold accountable those who traffic in child sexual abuse material and to protect victims of these heinous crimes.”
- U.S. Attorney Robert Frazer
According to documents filed in this case and statements made in court:
On January 22, 2024, Setera returned from an international trip aboard a flight that landed at Newark Liberty International Airport. Law enforcement searched Setera’s cellular phone and found approximately 170 photographs and 8 videos depicting child sexual abuse material, including material involving pre-pubescent minors. Law enforcement also found messages from Setera soliciting child pornography and referring to the sexual abuse of young children. In addition, law enforcement found payments from Setera to the individuals sending him child pornography.
The charge of transportation of child pornography carries a statutory mandatory minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison. The charge of possession of prepubescent child pornography carries a maximum potential penalty of 20 years in prison. Each count also carries a fine of up to $250,000 or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Frazer credited special agents of the Homeland Security Investigations (“HSI”), under the direction of Special Agent in Charge Michael S. McCarthy and officers from Customs and Border Protection (“CBP”), under the direction of New York Director of Field Operation Frank Russo, with the investigation leading to the conviction.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc
The government is represented by Assistant U.S. Attorneys Robert L. Toll and Matthew Specht of the U.S. Attorney’s Office in Newark.
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Defense counsel: Tyler Newman, Esq.
New Jersey Pharmacy Owner Sentenced to 24 Months in Prison for Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – A former New Jersey pharmacy owner was sentenced to 24 months in prison for his role in a health care fraud scheme to defraud Medicare, U.S. Attorney Robert Frazer announced.
Nestor E. Jaime, 37, of Pine Brook, New Jersey, previously pleaded guilty on November 19, 2025, before U.S. District Judge Katharine S. Hayden in Newark federal court to an Indictment charging Jaime with health care fraud. Judge Hayden imposed the sentence on April 15, 2026.
According to documents filed in this case and statements made in court:
From December 2019 to December 2021, Jaime, through a pharmacy he owned located in Paterson, New Jersey, submitted hundreds of false claims to Medicare for a high reimbursement (i.e., more than $4,000 per prescription) medication called Dificid, which the pharmacy never actually purchased or dispensed. Jaime submitted false claims on behalf of dozens of Medicare beneficiaries who never were prescribed any Dificid. To make it appear as though the Medicare beneficiaries’ health care providers had prescribed the medication, Jaime falsely included the providers’ unique provider numbers on the fraudulent claims. As a result of the scheme, Medicare paid Jaime reimbursements for false claims for Dificid totaling at least approximately $2.5 million, which Jaime spent on luxury vehicles and other personal expenditures.
In addition to a prison term, Judge Hayden sentenced Jaime to two years of supervised release and ordered Jaime to pay $2,505,754 in restitution.
The charge of health care fraud carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
U.S. Attorney Frazer credited special agents of the Health and Human Services Agency Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation.
The government is represented by Assistant U.S. Attorney Kruti D. Dharia of the Health Care Fraud and Opioids Enforcement Unit in Newark.
The Department of Justice has established the National Fraud Enforcement Division. The core mission of the National Fraud Enforcement Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. The National Fraud Enforcement Division will fulfill that mission by coordinating with agencies responsible for administering benefit programs; partnering with federal, tribal, state, territorial, and local law enforcement on fraud-fighting efforts; developing systems and processes that ensure efficient identification of fraud against taxpayer dollars; and equipping prosecutors and law enforcement with state-of-the-art tools and resources needed to bring criminal actors to justice. The attorneys in the National Fraud Enforcement Division will work every day to protect the financial integrity of our government and the tax system that supports it.
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Defense counsel: Anthony Iacullo, Esq.
Middlesex County Woman Sentenced to 20 Months for Defrauding Multiple COVID-19 Relief ProgramsRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, woman was sentenced to 20 months in prison for fraudulently obtaining Economic Injury Disaster Loan (“EIDL”), Paycheck Protection Program (“PPP”), and pandemic unemployment insurance benefits, U.S. Attorney Robert Frazer announced.
Damaris Valerio, a/k/a Damaris Tineo Abreu, 42, of Perth Amboy, New Jersey, previously pleaded guilty before U.S. District Judge Robert Kirsch to an information charging her with one count of wire fraud and one count of money laundering. Judge Kirsch, on April 14, imposed the sentence in Trenton federal court.
According to documents filed in this case and statements made in court:
From April 2020 through December 2021, Valerio fraudulently obtained $194,212 in COVID-19 emergency relief funds, which included loans and cash advances meant for distressed small businesses under the EIDL program and PPP, and pandemic unemployment insurance benefits meant for unemployed workers, by submitting false and fraudulent applications inflating her business’s revenues, payroll expenses, and number of employees. After receiving the fraudulent funds, she diverted proceeds from the relief programs for her personal gain.
In addition to the prison term, Judge Kirsch sentenced Valerio to 3 years of supervised release and ordered to pay $194,212 in restitution.
U.S. Attorney Frazer credited special agents of U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Michael McCarthy in Newark; Special Agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Inspector General Anthony P. D’Esposito, and special agents of the Social Security Administration, Office of the Inspector General’s Boston-New York Field Division, under the direction of Special Agent in Charge Amy Connelly, with the investigation.
The government is represented by Assistant U.S. Attorneys Benjamin D. Bleiberg and Fatime Meka Cano of the Economic Crimes Unit in Newark.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
The Department of Justice has established the National Fraud Enforcement Division. The core mission of the National Fraud Enforcement Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. The National Fraud Enforcement Division will fulfill that mission by coordinating with agencies responsible for administering benefit programs; partnering with federal, tribal, state, territorial, and local law enforcement on fraud-fighting efforts; developing systems and processes that ensure efficient identification of fraud against taxpayer dollars; and equipping prosecutors and law enforcement with state-of-the-art tools and resources needed to bring criminal actors to justice. The attorneys in the National Fraud Enforcement Division will work every day to protect the financial integrity of our government and the tax system that supports it.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Defense Counsel: John Russo, Esq, of New York.
Mercer County Man Sentenced to 260 Months for Fentanyl and Cocaine Trafficking and Firearms OffensesRead the Press Release
TRENTON, N.J. – A Mercer County man was sentenced yesterday to 260 months’ imprisonment for possessing quantities of fentanyl and cocaine with intent to distribute it, for possessing a firearm in furtherance of his drug trafficking, and for his unlawful possession of firearms as a previously convicted felon, U.S. Attorney Robert Frazer announced.
“Fentanyl, cocaine, and illegal firearms are a deadly combination that poisons our communities and fuels violence. This defendant trafficked in dangerous drugs, and law enforcement recovered guns from his home during the investigation—yesterday’s sentence reflects our commitment to dismantle drug trafficking operations and protect the people of New Jersey from the violence and harm they cause.”
- U.S. Attorney Robert Frazer
“The FBI and our partners take the responsibility of keeping guns, drugs and violent criminals off of the streets very seriously. The Trenton Safe Streets Task Force identified, investigated and presented evidence for Mr. Wilson and his associates. This sentence of over 20 years shows others who wish to perpetuate illegal operations in Trenton and New Jersey, that justice will prevail,” said FBI Special Agent in Charge Stefanie Roddy.
Jamal Wilson, a/k/a “Vill,” 49, of Trenton, N.J., previously pleaded guilty before the Honorable Georgette Castner, United States District Judge in Trenton federal court, to a five-count Superseding Information, charging Wilson with possession of fentanyl and cocaine with intent to distribute it, possession of a firearm in furtherance of a drug trafficking crime, and possession of two firearms as a previously convicted felon.
In August 2022, Wilson, and 12 other individuals (Theodore Meekins, Louis Williams, Clinton Rodriguez, Kai Bowman Jr., Glenn Moore, Rashied McKines, Michael Williams, Derrick Jiles, Dion Morris, Jerry Farmer, James Edwards, and Alterrick Livingston) were charged by criminal complaint with drug trafficking and/or firearms offenses.
According to documents filed in this case:
Beginning in or around July 2020, the Federal Bureau of Investigation and other law enforcement agencies conducted a two-year investigation of individuals engaged in unlawful drug-trafficking and firearms activities in and around the area of Garfield, Cleveland, and Logan Avenues (referred to as the “GCL” area”), a Trenton neighborhood known for high levels of narcotics activity and gun violence. During the investigation, law enforcement obtained court authorization to intercept Wilson’s telephonic and electronic communications. These intercepted communications and subsequent investigation revealed that Wilson was a significant drug trafficker of fentanyl and cocaine in the GCL and greater Trenton area, including and specifically in the area of the Grand Court Villas apartment building (the “Grand Court Villas”); the intersection of East State Street and South Olden Avenue; and Garfield Avenue Playground. Those communications also revealed the scope of Wilson’s unlawful drug-trafficking activities, including Wilson’s downstream customers and co-defendants. As part of the investigation, law enforcement recovered from Wilson’s residence and his stash apartment approximately one kilogram of fentanyl, two kilograms of cocaine, four firearms (including two unserialized, privately-made firearms), high-capacity magazines, ammunition, gun parts, and two gun suppressors.
In addition to the prison term, Judge Castner sentenced Wilson to 5 years of supervised release.
Wilson’s conviction and sentence are the result of an investigation by the Greater Trenton Safe Streets Task Force. Led by the Federal Bureau of Investigation, the Task Force is comprised of various federal, state, and local law enforcement agencies, and its mission is to combine the resources and intelligence of the participating agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area.
U.S. Attorney Frazer credited special agents of the FBI Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Stefanie Roddy; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, Trenton Field Office, under the direction of Special Agent in Charge Beau Kolodka; officers of the Trenton Police Department, under the direction of Director Steve Wilson; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Janetta D. Marbrey, with the investigation leading to the conviction and sentencing.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office’s Criminal Division in Trenton.
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Defense counsel: David E. Schafer, Esq.
New Jersey Man Pleads Guilty to Scheme Designed to Obtain Fraudulent Visas to Bring Aliens to the U.S. for Unlawful FundraisingRead the Press Release
A New Jersey man pleaded guilty yesterday to criminal charges arising from a 13-year conspiracy to induce foreign nationals to come to the United States through fraudulently obtained visas as part of an unlawful work scheme, and for his failure to pay taxes on the income he obtained through the unlawful scheme.
According to court documents, Hyung Ki Kim, 60, of New Jersey, served as the Director of the International Leadership Training Program (ILTP), an organization that Kim promoted as a leadership training and character development program. Kim and his co-conspirators used ILTP as a vehicle to bring foreign nationals to the United States to illegally obtain their labor.
“The Criminal Division will investigate and prosecute those who, like the defendant, violate our immigration and tax laws while unlawfully exploiting the labor of young persons who came to the United States and worked tirelessly for meager wages because they mistakenly believed that the money they raised was going to charitable causes,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division.
“Schemes that exploit our immigration system and abuse vulnerable individuals strike at the core of the Administration’s enforcement priorities,” said U.S. Attorney Robert Frazer for the District of New Jersey. “Our Office is committed to working with our federal partners to hold accountable those who manipulate visa programs, evade taxes, and exploit unlawful labor, and to protect the integrity of our immigration system and the people it is meant to serve.”
“Not only did Kim lie to the victims that he illegally employed to raise money about where their fundraising proceeds were going, he compounded his crimes by committing visa and tax fraud,” said Assistant Director Heith Janke of the FBI’s Criminal Division. “The FBI and our federal partners are committed to identifying and disrupting anyone abusing the federal immigration system and other programs for personal gain.”
“This case demonstrates the importance of the strong interagency collaboration between the Diplomatic Security Service (DSS) and our law enforcement partners in protecting the integrity of our nation’s immigration system,” said Special Agent in Charge Brian K. Wood of the DSS New York Field Office. “We are committed to working with our federal partners to identify and dismantle schemes that exploit vulnerable individuals and undermine U.S. law.”
“Mr. Kim not only orchestrated a years-long scheme built on visa fraud and deception, he also diverted more than a million dollars in illicit proceeds to his own bank accounts,” stated Special Agent in Charge Jenifer L. Piovesan of the IRS Criminal Investigation (IRS-CI) Newark Field Office. “This case underscores IRS-CI’s commitment to working with our law enforcement partners to uncover financial crimes that exploit vulnerable individuals and undermine the integrity of our tax system.”
Kim and his co-conspirators recruited young members of the Family Federation for World Peace and Unification (Unification Church), founded by Sun Myung Moon in South Korea in 1954, from different countries to join ILTP. Kim directed the effort to get B-1/B-2 visas for ILTP members through the submission of false and misleading statements throughout the visa application process. Once the visas were approved, Kim coordinated the members’ travel to the United States and purchased their airline tickets.
Members, who entered the country pursuant to nonimmigrant visas, could not lawfully work in the United States. However, Kim required members to travel throughout the country and “fundraise” for ILTP while living in a van with three or four other people. Kim and his co-conspirators set a daily fundraising goal for each member and required members to solicit donations for long hours each day. Members worked until they met their monetary goal during fundraising cycles that lasted several months. In return, members received only $100 per month to cover their expenses and about $25 per day to pay for meals.
Kim controlled all revenue from members’ fundraising work. While the members thought that the money they raised was to support charitable projects in their home countries, Kim actually diverted over a million dollars of the fundraising proceeds to his personal bank accounts and later failed to pay taxes to the Internal Revenue Service on this unreported income.
Kim pleaded guilty to a conspiracy to commit visa fraud, conspiracy to encourage and induce aliens to enter and reside in the United States and tax fraud. As part of the plea, Kim paid $735,000 in restitution to former ILTP Members and $223,536 in restitution to the Internal Revenue Service (IRS) for his tax fraud scheme. In addition, Kim agreed to forfeit to the United States approximately $1,265,036 that he obtained through the visa fraud and alien harboring conspiracies, as well as an automobile he purchased with proceeds of his criminal conduct.
Kim is scheduled to be sentenced on Aug. 19. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Kim faces a maximum penalty of 10 years in prison.
The FBI, DSS, U.S. Citizenship and Immigration Services, and IRS-CI investigated the case.
Trial Attorney Olimpia E. Michel of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Kelly M. Lyons for the District of New Jersey are prosecuting the case.
New Jersey Man Pleads Guilty to Scheme Designed to Obtain Fraudulent Visas to Bring Aliens to the U.S. for Unlawful FundraisingRead the Press Release
NEWARK — A New Jersey man pleaded guilty yesterday to criminal charges arising from a 13-year conspiracy to induce foreign nationals to come to the United States through fraudulently obtained visas as part of an unlawful work scheme, and for his failure to pay taxes on the income he obtained through the unlawful scheme.
According to court documents, Hyung Ki Kim, 60, of New Jersey, served as the Director of the International Leadership Training Program (ILTP), an organization that Kim promoted as a leadership training and character development program. Kim and his co-conspirators used ILTP as a vehicle to bring foreign nationals to the United States to illegally obtain their labor.
“Schemes that exploit our immigration system and abuse vulnerable individuals strike at the core of the Administration’s enforcement priorities. Our Office is committed to working with our federal partners to hold accountable those who manipulate visa programs, evade taxes, and exploit unlawful labor, and to protect the integrity of our immigration system and the people it is meant to serve.”
- U.S. Attorney Robert Frazer
“The Criminal Division will investigate and prosecute those who, like the defendant, violate our immigration and tax laws while unlawfully exploiting the labor of young persons who came to the United States and worked tirelessly for meager wages because they mistakenly believed that the money they raised was going to charitable causes,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division.
“Not only did Kim lie to the victims that he illegally employed to raise money about where their fundraising proceeds were going, he compounded his crimes by committing visa and tax fraud,” said Assistant Director Heith Janke of the FBI’s Criminal Division. “The FBI and our federal partners are committed to identifying and disrupting anyone abusing the federal immigration system and other programs for personal gain.”
“This case demonstrates the importance of the strong interagency collaboration between the Diplomatic Security Service (DSS) and our law enforcement partners in protecting the integrity of our nation’s immigration system,” said Special Agent in Charge Brian K. Wood of the DSS New York Field Office. “We are committed to working with our federal partners to identify and dismantle schemes that exploit vulnerable individuals and undermine U.S. law.”
“Mr. Kim not only orchestrated a years-long scheme built on visa fraud and deception, he also diverted more than a million dollars in illicit proceeds to his own bank accounts,” stated Special Agent in Charge Jenifer L. Piovesan of the IRS Criminal Investigation (IRS-CI) Newark Field Office. “This case underscores IRS-CI’s commitment to working with our law enforcement partners to uncover financial crimes that exploit vulnerable individuals and undermine the integrity of our tax system.”
Kim and his co-conspirators recruited young members of the Family Federation for World Peace and Unification (Unification Church), founded by Sun Myung Moon in South Korea in 1954, from different countries to join ILTP. Kim directed the effort to get B-1/B-2 visas for ILTP members through the submission of false and misleading statements throughout the visa application process. Once the visas were approved, Kim coordinated the members’ travel to the United States and purchased their airline tickets.
Members, who entered the country pursuant to nonimmigrant visas, could not lawfully work in the United States. However, Kim required members to travel throughout the country and “fundraise” for ILTP while living in a van with three or four other people. Kim and his co-conspirators set a daily fundraising goal for each member and required members to solicit donations for long hours each day. Members worked until they met their monetary goal during fundraising cycles that lasted several months. In return, members received only $100 per month to cover their expenses and about $25 per day to pay for meals.
Kim controlled all revenue from members’ fundraising work. While the members thought that the money they raised was to support charitable projects in their home countries, Kim actually diverted over a million dollars of the fundraising proceeds to his personal bank accounts and later failed to pay taxes to the Internal Revenue Service on this unreported income.
Kim pled guilty to a conspiracy to commit visa fraud, conspiracy to encourage and induce aliens to enter and reside in the United States and tax fraud. As part of the plea, Kim paid $735,000 in restitution to former ILTP Members and $223,536 in restitution to the Internal Revenue Service (IRS) for his tax fraud scheme. In addition, Kim agreed to forfeit to the United States approximately $1,265,036 that he obtained through the visa fraud and alien harboring conspiracies, as well as an automobile he purchased with proceeds of his criminal conduct.
Kim is scheduled to be sentenced on Aug. 19. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Kim faces a maximum penalty of 10 years in prison.
The FBI, DSS, and IRS-CI investigated the case.
Assistant U.S. Attorney Kelly M. Lyons for the District of New Jersey and Trial Attorney Olimpia E. Michel of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case.
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