District of New Jersey

CAMDEN, N.J. – A Camden County, New Jersey, man today admitted paying $20,000 in bitcoin to have a 14-year old child murdered, U.S. Attorney Philip R. Sellinger announced.

John Michael Musbach, 31, of Haddonfield, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an indictment charging him with one count of knowingly and intentionally using and causing another to use a facility of interstate and foreign commerce, that is the internet, with the intent that a murder be committed.

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

In the summer of 2015, Musbach exchanged via the internet sexually explicit photographs and videos with the victim, a 13-year-old living in New York. The victim’s parents found out about the inappropriate contact and contacted the local police. Upon identifying Musbach, then a resident of Atlantic County, New Jersey, New York law enforcement officers reached out to the Atlantic County Prosecutor’s Office (ACPO). In March 2016, officers from the ACPO arrested Musbach on child pornography charges and executed a search warrant at his residence, then in Galloway, New Jersey.

Musbach decided to have the victim killed so that the victim could not testify against him in the pending criminal case. During the period from May 7, 2016, through May 20, 2016, Musbach repeatedly communicated with the administrator of a murder-for-hire website, which operated on the dark net, and which purported to offer contract killings or other acts of violence in return for payment in cryptocurrency, and arranged for a murder-for-hire. Musbach asked if a 14-year-old was too young to target, and upon hearing that the age was not a problem, paid approximately 40 bitcoin (approximately $20,000 at the time) for the hit. Musbach repeatedly messaged the website’s administrator following up on the hit and asking when it would occur. When pressed for an additional $5,000 to secure the hit, Musbach eventually sought to cancel and asked for a refund of his $20,000. The website’s administrator then revealed that the website was a scam and threatened to reveal Musbach’s information to law enforcement.

The charge of use of interstate commerce facilities in the commission of murder-for-hire is punishable by a maximum potential penalty of 10 years in prison and a fine of the greater of $250,000, twice the gross profits to Musbach or twice the gross losses to the victim of his offense. Sentencing is scheduled for June 13, 2023.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark and Special Agent in Charge Tracy Cormier in St. Paul, Minnesota, with the investigation leading to today’s guilty plea. He also thanks the Atlantic County Prosecutor’s Office for its assistance.

The government is represented by Assistant U.S. Attorney Diana Vondra Carrig in Camden.

NEWARK, N.J. – A Passaic County, New Jersey, man was arrested today for attempting to firebomb an Essex County, New Jersey, synagogue, U.S. Attorney Philip R. Sellinger announced.

Nicholas Malindretos, 26, of Clifton, New Jersey, is charged by complaint with one count of attempted use of fire to damage and destroy a building used in interstate commerce. He is scheduled to have his initial appearance in Newark federal court before U.S. Magistrate Judge Edward S. Kiel on Feb. 2, 2023.

“No one should find that their lives are at risk by exercising their faith,” U.S. Attorney Sellinger said. “The defendant is alleged to have gone to a synagogue in the middle of the night and maliciously attempted to damage and destroy it using a firebomb. Protecting communities of faith and houses of worship is core to this office’s mission. In response to this attempted attack, my office – together with our federal, state, and local partners – worked around the clock to investigate this matter swiftly. We will continue to devote whatever resources are necessary to keep our Jewish community and all New Jersey residents safe.”

“I commend and thank the entire New Jersey law enforcement community for their seamless collaboration and tireless efforts to identify and apprehend the suspect in Sunday’s attack on Temple Ner Tamid,”  New Jersey Attorney General Matthew J. Platkin said. “In New Jersey, we stand united against hate and bias, and we speak with one voice to show that our state will remain a place where all can live and worship freely and safely.”

“Newark FBI and our law enforcement partners have been working around the clock since Sunday morning, after being notified someone targeted the Temple Ner Tamid in Bloomfield,” FBI Special Agent in Charge James E. Dennehy said. “We allege Mr. Malindretos threw a Molotov cocktail at the doors of the synagogue. The speed and intensity of this investigation demonstrates our determination and dedication to protecting houses of worship and protecting their congregations. We take seriously all threats of hate and bias aimed at all religions and faiths, and we intend to hold accountable all those who target them.”

“An alleged attempted firebombing on a house of worship is an attack against the entire community,” acting Special Agent in Charge Bryan Miller of the Bureau of Alcohol, Tobacco, Firearms, and Explosives said. “We are honored to work side by side with our local, state, and federal partners to bring today’s charge.”

“The Essex County Prosecutor's Office has long understood that our interfaith community is one of the prime targets for hate,” Acting Prosecutor Theodore N. Stephens II said. “Although we are always troubled by events such as this, we are pleased by the extraordinary efforts undertaken by all involved in Essex County law enforcement to bring this charge.”

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

On Jan. 29, 2023, at 03:19 a.m., a surveillance camera at the Temple Ner Tamid Jewish Congregation in Bloomfield, New Jersey, recorded a person later identified as Malindretos as he approached the temple. He was wearing a black ski mask, a black or dark gray hooded sweatshirt with a white emblem of what appeared to be a skull and cross bones, black pants, dark shoes, and white gloves. The video showed Malindretos walking up to the front entrance area of the temple, pausing, and then igniting a wick on the top of a bottle. He then threw the bottle at the front glass doors of the temple and fled on foot.

A license plate reading device located nearby recorded a vehicle passing by shortly before and shortly after the incident. Law enforcement officers located the vehicle in Clifton and saw several items consistent with the video of the incident plainly visible inside. They obtained a search warrant for the vehicle. Video cameras in the area where the vehicle was parked captured the vehicle parking and a male individual with the same physical characteristics as Malindretos exiting the vehicle and entering a nearby building.

The count of attempted use of fire to damage and destroy a building used in interstate commerce is punishable by a minimum of five years in prison, a maximum of 20 years in prison and a fine of $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting of Special Agent in Charge Miller in Newark; the New Jersey Department of Law and Public Safety, under the direction of Attorney General Platkin; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Stephens, and the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio, with the investigation leading to today’s charge.

The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office’s Civil Rights Division. 

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

NEWARK, N.J. – A New York man today admitted distribution and possession with the intent to distribute fentanyl, U.S. Attorney Philip R. Sellinger announced.

Jose Migel Cleto, 64, of Manhattan, New York, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of distribution and possession with the intent to distribute a mixture and substance containing a detectable amount of fentanyl.

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

In April 2022, Cleto distributed, and possessed with the intent to distribute, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl to a man in a commercial parking lot in Fort Lee, New Jersey.  

Cleto faces a maximum punishment of 20 years in prison and a maximum fine of up to $1 million. Sentencing is scheduled for June 21, 2023.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Vincent D. Romano of the U.S. Attorney’s Office General Crimes Unit in Newark.

NEWARK, N.J. – Four members of a gun manufacturing and trafficking network in Passaic and Hudson counties have been charged with weapons offenses related to the fabrication and sale of personally made firearms (PMFs), commonly known as “ghost guns,”  U.S. Attorney Philip R. Sellinger announced today.

Savion Clyburn, 20, and Corey Jenkins Jr., 30, both of Paterson, New Jersey; Richard Mullane, 26, of Bayonne, New Jersey; and Julian Santiago, 26, of Jersey City, New Jersey, are charged by complaint with conspiracy to engage in unlicensed firearms dealing and manufacturing and engaging in unlicensed firearms dealing and manufacturing, including by manufacturing and subsequently selling PMFs. Santiago is also charged with transferring a firearm to a felon. The defendants are scheduled to appear today before U.S. Magistrate Edward S. Kiel in Newark federal court.

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

Beginning in December 2022, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), along with state and local law enforcement agencies, began investigating a firearms trafficking network, operating largely in Paterson and Bayonne, that included Clyburn, Jenkins, Mullane, and Santiago. During December 2022 and January 2023, law enforcement conducted at least nine controlled purchases which resulted in the recovery of 12 firearms, including 11 PMFs and one serialized Kel-Tec SUB-2000 Rifle, as set forth below:

Date

Defendant(s)

Firearm(s) Purchased

Week of Dec. 18, 2022

Clyburn

Jenkins

Two PMFs

Dec. 28, 2022

Santiago

One PMF

Jan. 3, 2023

Santiago

Jenkins

One PMF

Jan. 5, 2023

Clyburn

Jenkins

One PMF

Jan. 7, 2023

Santiago

Jenkins

Mullane

One PMF

Jan. 9, 2023

Clyburn

Jenkins

Mullane

Two PMFs

Jan. 17, 2023

Clyburn

Jenkins

Two PMFs

Jan. 17, 2023

Clyburn

One Kel-Tec SUB-2000 Rifle, bearing Serial No. EGN69

Jan. 25, 2023

Jenkins

Mullane

One PMF

Law enforcement officials have recovered PMFs that were customized with different colors and designs, and two of which were threaded for silencers.

All four defendants face a maximum prison sentence of five years and a maximum fine of up to $250,000 on each of Counts One and Two. Defendant Santiago faces a maximum prison sentence of 10 years and a fine of up to $250,000 on Count Three. 

U.S. Attorney Sellinger credited special agents of ATF, under the direction of Acting Special Agent in Charge Bryan Miller in Newark; the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik; the Passaic County Prosecutor’s Office; under the direction of Prosecutor Camelia M. Valdes; the Passaic Police Department, under the direction of Chief Luis A. Guzman; the Paterson Police Department, under the direction of Acting Chief Bert Ribeiro; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation leading to the charges. He also thanked the Elizabeth, Plainfield, Hillside, Bayonne and East Orange police departments, Immigration and Customs Enforcement, the New Jersey State Police, the Hudson County Prosecutor’s Office and the U.S. Marshals Service.

The government is represented by Assistant U.S. Attorney Matt Belgiovine of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

NEWARK, N.J. – A Saudi Arabian man was charged for transporting a stolen school bus across state lines, U.S. Attorney Philip R. Sellinger announced today.

Bader Alzahrani, 22, of Saudi Arabia, is charged by complaint with one count of receipt of a stolen vehicle and one count of transportation of a stolen vehicle. He is scheduled to make his initial appearance this afternoon U.S. Magistrate Judge Edward S. Kiel in Newark federal court. 

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

On Jan. 15, 2023, a break-in was reported in an unoccupied residential home in Livingston, New Jersey. During a search of a backpack in that home, law enforcement saw a Saudi Arabian passport with the name Bader Alzahrani, along with other items that appeared to belong to Alzahrani. On Jan. 17, 2023, the Livingston Board of Education reported that a school bus was stolen from a parking lot across the street from the unoccupied residential home where the break-in was reported. Law enforcement officers located Alzahrani in Stroudsburg, Pennsylvania, and was later found to be in possession of the keys to the stolen school bus.

Each count charged in the complaint is punishable by a maximum penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked agents of the FBI Field Office in Washington, D.C., under the direction of Assistant Director in Charge Steven D’Antuono; members of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel; members of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; members of the Monroe County, Pennsylvania, Office of the District Attorney, under the direction of District Attorney E. David Christine, Jr.; members of the Livingston Police Department, under the direction of Police Chief Gary Marshuetz; and members of the New Jersey State Police, under the direction of Col. Patrick J. Callahan.

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

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

NEWARK, N.J. – Philip R. Sellinger, United States Attorney for the District of New Jersey, issued the following statement today:

Like so many around the country, we are deeply disturbed by the circumstances surrounding the tragic death of Tyre Nichols.  Shortly after his death, the U.S. Attorney’s Office in the Western District of Tennessee and the Justice Department’s Civil Rights Division opened a criminal civil rights investigation. We express support for our colleagues who are working hand in hand with the FBI and other law enforcement partners.  We have no doubt that their investigation will be thorough and methodical, and they will make decisions based on the facts and the law. In addition to the federal investigation, several officers are now facing prosecution for state charges.

We appreciate the significant public interest in this matter.  We want to make clear that the U.S. Attorney’s Office respects the right of all people to assemble and protest peacefully.  As Tyre Nichols’ family has urged, we urge that any protests remain peaceful and nonviolent.

We will also continue to protect civil rights and work to ensure justice for all in New Jersey.  Where law enforcement officers abuse their authority by violating the constitutional rights of our citizens, it undermines all other law enforcement officers who lawfully perform their duties with dignity and respect.  The U.S. Attorney’s Office has prioritized civil rights investigations and prosecutions of any public employee who violates this public trust.

Last year, I created a Civil Rights Division at the U.S. Attorney’s Office with the sole focus of enforcing and protecting federal civil rights.  Individuals who believe they may have been victims of civil rights violations may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339. 

NEWARK, N.J. – An Indiana man and an Arizona man yesterday admitted their roles in a health care fraud conspiracy in which they received payment for doctors’ orders for durable medical equipment (DME), namely orthotic braces, and genetic test referrals, U.S. Attorney Philip R. Sellinger announced.

Scott Wohrman, 50, of Florence, Arizona, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to violate the Federal Anti-Kickback statute and one count of conspiracy to commit health care fraud. On Jan. 24, 2023, David Heneghan, 53, of Indianapolis, Indiana, pleaded guilty to conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:

Heneghan and Wohrman operated American Health Screening (AHS), a company that purportedly provided marketing services to laboratories. From July 2020 through January 2021, Heneghan, Wohrman, and others agreed to engage in a scheme to provide DME orders and genetic testing referrals for Medicare beneficiaries in exchange for kickbacks of approximately $1,500 per patient or for each test that resulted in a reimbursement from Medicare. Heneghan and Wohrman entered into a sham contract and utilized fraudulent invoices to make it appear that AHS was being paid for legitimate services and to conceal their fraudulent kickback scheme. Heneghan and Wohrman received kickbacks of at least $547,310 for durable medical equipment and at least $18,319 for genetic testing. Heneghan and Wohrman’s scheme resulted in an actual loss to Medicare of at least $565,629.

Heneghan and Wohrman previously pleaded guilty in the Northern District of Texas to an information charging them with conspiracy to defraud the Federal Anti-Kickback statute.

The count of conspiracy to commit health care fraud carries a maximum potential punishment of 10 years in prison. The count of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years in prison. Both offenses are also punishable by a fine of $250,000 or twice the gross gain or loss from the offense. Sentencing for Heneghan and Wohrman is scheduled for September 6, 2023.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick Hegarty; the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office under the direction of Special Agent in Charge Christopher Algieri with the investigation leading to the guilty pleas.

The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.

Defense counsel: Heneghan: Aaron M. Cohen Esq., Delray Beach, Florida
Wohrman: Michael Hursey Esq., and Paul Molle Esq., Ft. Lauderdale, Florida

Trenton, N.J. – A Somerset County, New Jersey man yesterday admitted to paying kickbacks in return for fraudulent overtime payments that he received in connection with his former role as the Director of Buildings and Grounds for the Hillsborough Township School District, U.S. Attorney Philip R. Sellinger announced today.

Anthony DeLuca, 61, of Raritan, New Jersey, pleaded guilty before Senior U.S. District Judge Peter G. Sheridan to one count of embezzling, stealing, and obtaining by fraud more than $137,000 of funds belonging to and under the care, custody and control of the Hillsborough Township School District, in violation of Title 18, United States Code, Section 666(a)(1)(A). 

According to the documents filed in this case:

DeLuca, a long-term employee of the Hillsborough Township School District, was promoted to the position of Director of Buildings and Grounds in approximately July 2019, a salaried position that did not entitle him to overtime pay.  Nevertheless, shortly after assuming this position, the School District employee to whom DeLuca reported (referred to as “Individual 1” in the Information) began directing DeLuca to claim that DeLuca was entitled receive overtime payments, including for hours which substantially exceeded those that DeLuca actually worked.  DeLuca submitted these claims to Individual 1 who then authorized overtime payments for DeLuca in return for cash kickbacks.

DeLuca admitted in court yesterday that upon receiving the overtime payments approved by Individual 1, DeLuca would typically withdraw cash from his bank account to provide kickbacks to Individual 1.  DeLuca stated that Individual 1 would designate the location to which DeLuca should deliver envelopes containing the cash kickbacks, including the console of Individual 1’s vehicle and a drawer in Individual 1’s office desk.  DeLuca admitted that through this scheme he received in excess of $137,000 in overtime payments to which he was not entitled and that he provided Individual 1 with at least $39,800 in kickbacks between July 2019 and January 2022. 

DeLuca faces a maximum penalty of ten years in prison and maximum fine of 250,000.  Sentencing is scheduled for June 1, 2023. 

U.S. Attorney Sellinger credited agents of the Federal Bureau of Investigation under the direction of Special Agent in Charge James E. Dennehy in Newark; the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark; and the Somerset County Prosecutor’s Office, under the direction of Prosecutor John P. McDonald, with the investigation leading to the charges.

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

The charges and allegations contained in the Information pertain to Anthony DeLuca and any other individuals referenced are presumed innocent unless and until those individuals are proven guilty.

Defense counsel:  S. Emile Lisboa IV, Esq., Hackensack, NJ

NEWARK, N.J. – A Sussex County, New Jersey, woman was sentenced today to 34 months in prison for concealing her attempts to provide material support to Syrian foreign terrorist organizations, U.S. Attorney Philip R. Sellinger, Assistant Attorney General Matthew G. Olsen of the U.S. Department of Justice’s National Security Division, FBI-Newark Special Agent in Charge James E. Dennehy, and FBI Assistant Director for Counterterrorism Timothy Langan announced.

Maria Bell, aka “Maria Sue Bell,” 55, of Hopatcong, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging her with one count of concealing attempts to provide material support to designated foreign terrorist organizations. Judge Vazquez imposed the sentence today in Newark federal court.

According to documents previously filed in this case:

Bell admitted that from February 2018 to November 2018 she knowingly concealed and disguised the nature, location, source, ownership and control of the attempted provision of material support and resources to fighters based in Syria who were members of Jabhat Fath al-sham, also known as Jabhat Fateh al-Sham (JFS) and Hay’at Tahrir al-Sham (HTS). Bell admitted that she knew JFS and HTS were designated foreign terrorist organizations, that JFS and HTS has engaged or engages in terrorist activities. She admitted the offense to which she pleaded guilty involved the concealment of the attempted provision of funds or other material support or resources with the intent, knowledge, or reason to believe they were to be used to commit or assist in the commission of a violent act.

In addition to the prison term, Judge Vazquez sentenced Bell to five years of supervised release.

U.S. Attorney Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge Dennehy, and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to today’s sentencing.

The government is represented by Joyce M. Malliet, Chief of the U.S. Attorney’s Office’s National Security Unit and Trial Attorneys Brenda Sue Thornton and Kathleen Campbell of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.

A Cumberland County, New Jersey, man was sentenced today to 114 months in prison and six years of supervised release for conspiring with others to obtain and distribute several kilograms of cocaine and violating the conditions of his supervised release from a prior conviction for conspiring to distribute cocaine. Lavinston Lamar, 40, of Bridgeton, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court on May 5, 2022.    

NEWARK, N.J. – A federal grand jury indicted a Brooklyn, New York, man for transporting stolen jewelry across state lines, U.S. Attorney Philip R. Sellinger announced today.

Tony Newton, 63, of Brooklyn, New York, is charged by indictment with two counts of interstate transportation of stolen goods. Newton was charged by criminal complaint in July 2022 for transporting stolen jewelry from a store located in a shopping center in Edison, New Jersey, to Brooklyn, and is detained.

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

On June 1, 2022, and July 16, 2022, Newton transported stolen jewelry across state lines from Middlesex County, New Jersey, and Union County, New Jersey, respectively, to New York. 

Each count of interstate transportation of stolen goods is punishable by a maximum penalty of 10 years in prison and $250,000 fine.

U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Union County Prosecutor's Office, under the direction of Prosecutor William Daniel, officers of the Edison Police Department, under the direction of Chief of Police Tom Bryan; and officers of the Elizabeth Police Department, under the direction of Director Earl Graves and Chief Giacomo Sacca, with the investigation leading to the charges. He also thanked officers of the Suffolk County, New York, Police Department and the Milford, Connecticut, Police Department for their assistance.

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

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

NEWARK, N.J. – Three members of a Jersey City street gang were charged today for their roles in a cocaine distribution organization, as well as for firearms violations, U.S. Attorney Philip Sellinger announced.

Rodney Broadway, aka “Banks,” 31; Parish George, aka “P Money,” 31; and Dejahn Ingram, aka “Fresh,” 32, all of Jersey City, New Jersey, are each charged by complaint with one count of conspiracy to distribute 500 grams or more of cocaine. George and Ingram are charged with unlawful possession of firearms as convicted felons, and Broadway is charged with unlawful possession of ammunition as a convicted felon. Broadway and George are also charged with possession with intent to distribute cocaine. All three defendants appeared today before U.S. Magistrate Judge André M. Espinosa in Newark federal court and were detained.

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

The three defendants are associated with a neighborhood street gang that operates in and around the Salem Lafayette Apartments in Jersey City. At the time of their arrests on Jan.19, 2023, George and Ingram each possessed a loaded firearm. Search warrants executed at multiple residences associated with Broadway, George, and Ingram revealed a significant quantity of cocaine, hundreds of rounds of ammunition, and other paraphernalia.

The defendants each face a mandatory minimum term of five years in prison and a maximum term of 40 years in prison.

U.S. Attorney Sellinger credited special agents of HSI Newark, under the leadership of Special Agent in Charge Ricky J. Patel, and investigators the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to the charges. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Acting Special Agent in Charge Bryan Miller, special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, for their assistance.

This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.

The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Office’s OCDETF/Narcotics Unit.

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

TRENTON, N.J. – Two Michigan men and an Ohio man were sentenced for their roles in a large-scale conspiracy to commit bank fraud in several states, including New Jersey, New York, Pennsylvania, Maryland, Ohio, Virginia, and Michigan, U.S. Attorney Philip R. Sellinger announced today.

Syed Abbas, 33, of Westerville, Ohio, was sentenced by videoconference on Jan. 19, 2023, to 16 months in prison. Rana Sharif, 39, of Dearborn Heights, Michigan, and Awaise Dar, 35, of Woodbridge, Virginia, were sentenced by videoconference on Jan. 16, 2023 and Jan. 17, 2023, respectively, to 20 months each in prison. All three individuals previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to informations that charged them with conspiracy to commit bank fraud. Judge Wolfson imposed the sentences.

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

From 2018 through April 2020, Abbas, Sharif, Dar, and others conspired to defraud several major banks and electronic merchant processors. The defendants established bank accounts associated with sham entities that had no legitimate purpose and then issued checks payable to other shell companies associated with the criminal organization, knowing that the payor accounts had insufficient funds. The conspirators also conducted numerous fraudulent credit card and debit card transactions between shell companies to credit payee accounts and fraudulently overdraw payor accounts. Members of the conspiracy also used these shell companies to execute temporary refund credits, commonly referred to as “charge-backs,” to checking accounts associated with the criminal organization, where no prior legitimate transaction had occurred. 

The conspirators withdrew the “existing” funds (through ATMs or bank tellers) that banks and or merchant processors had credited to the payee bank accounts at the time of the fraudulent transaction. Because the conspirators withdrew the credited funds from the payee accounts before the banks could recognize the fraudulent transactions, the banks and merchant processors were left with substantial losses.

Law enforcement officials identified approximately 200 bank accounts and 75 merchant credit card processing accounts used to facilitate the conspiracy’s fraudulent schemes. The conspirators’ unlawful activities attempted to cause a $10 million loss on financial institutions and did in fact cause a loss of approximately $3.5 million.

In addition to the prison term, Chief Judge Wolfson sentenced each defendant to three years of supervised release. Chief Judge Wolfson also ordered each defendant to pay restitution. Abbas was ordered to pay restitution in the amount of $530,523. Sharif was ordered to pay restitution in the amount of $2.38 million. Dar was ordered to pay restitution in the amount of $2.42 million.

Abbas, Sharif, and Dar are among the nine individuals that have been sentenced in the District of New Jersey as part of the criminal scheme

U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark; Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to the sentencings.

The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.

NEWARK, N.J. – A New Jersey tax preparer and an Arizona man were charged for their roles in conspiracies to commit wire fraud and defraud the IRS, and for aggravated identity theft, U.S. Attorney Philip R. Sellinger announced today.

Omar Khater, 32, of Fairfield, New Jersey, and Walid Khater, 37, of Mesa, Arizona, are each charged by complaint with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS, and one count of aggravated identity theft. Omar Khater is scheduled to make his initial appearance before U.S. Magistrate Judge Andre M. Espinosa in Newark federal court. Walid Khater is expected to appear on Jan. 19, 2023, before a U.S. Magistrate Judge in federal court in Arizona.

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

Omar and Walid Khater were relatives who worked together and with others to steal victims’ identities, which they used to file false tax returns and fraudulently receive tax refunds from the IRS. They electronically submitted tax documents to the IRS falsely claiming that the individual taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings. The false filings also claimed tax withholdings on the purported income or gambling winnings that entitled the tax filer to refund payments from the IRS. The Khaters and others typically submitted these fraudulent tax filings using the names and personal identifying information of victims without the victims’ knowledge or permission. The fraudulent filings caused the IRS to pay $4.49 million in tax refunds, the Khaters and others directed to various bank accounts that they controlled. 

The wire fraud conspiracy count is punishable by a maximum of 20 years in prison; the count of conspiracy to defraud the IRS is punishable by a maximum of five years in prison; and each count aggravated identity theft carries a mandatory sentence of two years in prison, to run consecutively to any term of imprisonment on the underlying felony.

U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Tammy Tomlins, and special agents of FBI-Newark, under the direction of Special Agent in Charge James E. Dennehy with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Fatime M. Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark.

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

TRENTON, N.J. – A Trenton man was sentenced today to 228 months in prison for his role as the leader of a significant drug trafficking conspiracy that distributed more than one kilogram of heroin in Trenton and the surrounding area, U.S. Attorney Philip R. Sellinger announced.

Jakir Taylor, aka “Jak,” 32, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to Counts One and Seven of the first superseding indictment charging him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and possessing a firearm in furtherance of a drug trafficking crime. Chief Judge Wolfson imposed the sentence today in Trenton federal court.

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

From October 2017 to October 2018, Taylor and others engaged in a large narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Taylor and conspirator Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from conspirator David Antonio, whom they referred to as “Papi.” Taylor and Roberts agreed to obtain from Antonio a “motherlode” supply of as many as 1,500 bricks – approximately 1.5 kilograms of heroin – in a single delivery. Taylor said that he intended to “flood the streets” of Trenton with this large supply. Taylor also admitted that he and his conspirators possessed at least one firearm to assist his drug trafficking operations, and on multiple occasions during the conspiracy Taylor actively sought to obtain additional firearms from other sources. During coordinated arrests on Oct. 25, 2018, law enforcement arrested Taylor, Roberts, Antonio, and other defendants, and recovered more than 1.4 kilograms of heroin from Antonio’s residence.

In addition to the prison term, Chief Judge Wolfson sentenced Taylor to five years of supervised release.

In October 2018, Taylor, and 25 other individuals were charged by criminal complaint with conspiracy to distribute heroin. On Apr. 11, 2019, a grand jury returned a nine-count superseding indictment charging Taylor and eight other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearm offenses. Twenty-three of the 26 defendants charged in the complaint have pleaded guilty. The remaining three were convicted after trial in October 2021.

U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, Trenton Field Office, under the direction of Acting Special Agent in Charge Bryan Miller; officers of the Trenton Police Department, under the direction of Acting Police Director Steve Wilson; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the  direction of Prosecutor LaChia L. Bradshaw, with the investigation leading to today’s sentencing.

He also thanked officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the N.J. State Board of Parole for their assistance in the case.

The government is represented by Assistant U.S. Attorneys J. Brendan Day and Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – A manager for a conspiracy that used stolen credit card information to make fraudulent retail purchases around the United States pleaded guilty today, U.S. Attorney Philip R. Sellinger announced.

Trevor Osagie, 31, of the Bronx, New York, pleaded guilty before U.S. District Judge William Martini in Newark federal court to an information charging him with one count of conspiracy to commit bank fraud.

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

From at least 2015 through November 2018, Osagie conspired with a network of individuals based in the New Jersey/New York area who made trips around the United States in order to use stolen credit card information to purchase gift cards, flights, hotels, rental cards, and other goods and services. Other participants in the conspiracy obtained stolen credit card information through the “dark web” and other sources. In addition to recruiting at least one individual to create the fraudulent credit cards, Osagie managed the individuals who traveled around the United States conducting the fraudulent transactions. The conspirators made over $1.5 million in fraudulent purchases using over 4,000 stolen credit card accounts.

The conspiracy to commit bank fraud charge carries a maximum sentence of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for May 25, 2023.

U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Jose Riera, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Shawn Barnes, Chief of the OCDETF/Narcotics Unit in Newark.

NEWARK, N.J. – A federal grand jury indicted a Morris County, New Jersey, man for allegedly possessing and distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.

Anselmo Girimonte, 52, of Wharton, New Jersey, is charged by indictment with one count of possession of child pornography and one count of distribution of child pornography. He will be arraigned at a date to be determined. Girimonte was arrested on a criminal complaint on this conduct on March 4, 2022, and consented to detention.

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

From Dec. 27, 2021, through Jan. 17, 2022, Girimonte distributed material containing images and video files of child sexual abuse, via a publicly available online peer-to-peer (P2P) file-sharing network of linked computers. Law enforcement officers conducted undercover online sessions to access the P2P program and during these sessions a user shared multiple video files of pre-pubescent children being sexually abused by adults from an internet address traced to Girimonte’s residence. 

On March 2, 2022, law enforcement officers lawfully obtained a cell phone from Girimonte’s residence that contained hundreds of images and videos of child pornography, including images of prepubescent children being sexually abused.

The count of possession of child pornography carries a maximum penalty of 20 years in prison, and a fine of $250,000. The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. 

U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to today’s indictment.  He also thanked the Morris County Prosecutor’s Office, the Rockaway Township Police Department, and the United States Postal Inspection Service for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the General Crimes Unit in Newark.

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

CAMDEN, N.J. – An Egg Harbor Township man today admitted his role in a conspiracy to distribute cocaine, U.S. Attorney Philip R. Sellinger announced.

Lester Santana, 52, of Egg Harbor Township, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of conspiracy to distribute five kilograms or more of cocaine.

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

Santana admitted that on numerous occasions from March 2019 to August 2020, he and his conspirators flew from to San Juan, Puerto Rico, on commercial flights from Philadelphia International Airport. Santana and his conspirators purchased multi-kilogram quantities of cocaine from wholesale drug suppliers based in the San Juan area in exchange for cash payments. Santana and the other conspirators then shipped the kilograms of cocaine by overnight delivery from U.S. Post Offices in San Juan to various addresses in Philadelphia and southern New Jersey, including to Santana’s residence. After the cocaine shipments were delivered, a conspirator resold the cocaine to other drug dealers in the Philadelphia area for a profit. Santana admitted that he was jointly responsible for the possession with intent to distribute and distribution of 50 to 150 kilograms of cocaine.  

The drug-trafficking conspiracy charge carries a mandatory penalty of 10 years in prison, a maximum penalty of life in prison, and a maximum fine of $10 million. Sentencing is scheduled for May 18, 2023.

Two conspirators in this case, Jose Gonzalez and Iran Soler, both previously pleaded guilty before Judge O’Hearn to conspiring to distribute five kilograms or more of cocaine. Gonzalez is scheduled to be sentenced on Jan. 30, 2023, and Soler is scheduled to be sentenced on Feb. 6, 2023.

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Raimundo Marrero; agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the leadership of Special Agent in Charge Matthew Modafferi; agents assigned to the FBI’s Atlantic City Resident Agency, Newark Division, under the direction of Special Agent in Charge James E. Dennehy; agents assigned to the FBI’s Philadelphia Field Division, under the direction of Special Agent in Charge Jacqueline Maguire; troopers assigned to the New Jersey State Police Strategic Investigations Unit South, under the direction of Col. Patrick J. Callahan; and officers and detectives of the Philadelphia Police Department, under the direction of Police Commissioner Daniel Outlaw, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.

NEWARK, N.J. – A shipping company has agreed to pay $1.89 million to resolve allegations that it violated the False Claims Act by overbilling the United States for freight services that were never performed and improper markups, U.S. Attorney Philip R. Sellinger announced today.

Blue Water Shipping U.S. Inc. (Blue Water Shipping) had a contract in which it billed for freight forwarding services for foreign military sales, which were reimbursed by the United States. In the settlement announced today, Blue Water Shipping admits that an employee of the company, who has since been terminated, created a fake company to bill for freight services that were never actually performed, and which were ultimately reimbursed by the United States. The settlement also resolves allegations that Blue Water Shipping charged unallowable markups to the United States for inland transportation, and imports and exports of ocean and air freight. Blue Water Shipping has agreed to pay $1.89 million to resolve the investigations for the improper billings.

In conjunction with the investigation, Blue Water Shipping voluntarily disclosed facts to the investigators and cooperated with the investigation and prosecution of the former employee.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick Hegarty; and special agents of the United States Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to the settlement. 

The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Healthcare Fraud Unit in Newark.

The claims settled by this agreement are allegations only, and there has been no determination of liability.

NEWARK, N.J. – A Jersey City attorney was charged with defrauding his clients of more than two million dollars, U.S. Attorney Philip R. Sellinger announced today.

James R. Lisa, 67, is charged by indictment with three counts of wire fraud and four counts of aggravated identity theft. He was arraigned today by videoconference before U.S. Magistrate Judge José R. Almonte, pleaded not guilty and was release on $100,000 unsecured bond. 

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

In 2014, Lisa was retained by a family to help repatriate millions of dollars that had been transferred by other family members to offshore bank accounts decades earlier. Lisa was also retained to help resolve the tax issues related to the repatriation of the funds. In 2015, Lisa successfully repatriated more than $6 million of the family’s funds, but proceeded to falsely advise the family that the funds remained offshore. In 2017, Lisa provided $4 million of the repatriated funds to the family but continued to falsely represent that the remaining $2 million remained beyond his control. 

Lisa falsely told the family that he successfully resolved the tax implications of repatriating the funds. In 2016, Lisa sent the family a fraudulent IRS “closing agreement” reflecting an agreement with the IRS for the family to pay $3 million in taxes and penalties for the repatriated funds. In 2018, Lisa sent the family another fraudulent closing agreement reflecting an agreement with the IRS for the family to pay $2 million in taxes and penalties because only $4 million was purportedly repatriated. In fact, the IRS never entered into these agreements and the IRS employees who purportedly signed the documents never did so.

Each count of wire fraud carries a maximum penalty of 20 years in prison and a fine not to exceed $250,000. Each count of aggravated identity theft carries a statutory mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment, and a fine not to exceed $250,000. 

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

U.S. Attorney Sellinger credited special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), Mid Atlantic Field Division, under the direction of Special Agent in Charge Andrew McKay; and IRS - Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to the charges. 

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

CAMDEN, N.J. – A Camden man was sentenced today to 140 months in prison for his role as a shift supervisor of a drug trafficking organization and conspiring to distribute heroin, cocaine, and crack in the city of Camden, U.S. Attorney Philip R. Sellinger announced.

Christopher Vasquez, 32, of Camden, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an indictment charging him with conspiracy to distribute more than one kilogram of heroin, more than 280 grams of crack cocaine, and unspecified quantities of cocaine and fentanyl.

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

Vazquez admitted that he was a “shift manager” in a drug-trafficking organization operating in the 400-500 block of Pine Street in Camden, supervising and directing the street-level sellers who were involved in distributing controlled substances to customers. From January 2018 to Nov. 28, 2018, he met with conspirators who were involved in the scheme and discussed the operations and management of the drug trafficking organization. He also provided drugs to street-level sellers.

All 19 of the charged defendants have previously entered guilty pleas on drug conspiracy charges before Judge Bumb.

In addition to the prison term, Judge Bumb sentenced Vazquez to seven years of supervised release.

U.S. Attorney Sellinger credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabe Rodriguez; the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of  Acting Chief Larry Robb; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.

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

The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.

NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced to 51 months in prison for conspiring to distribute and possessing with intent to distribute cocaine, U.S. Attorney Philip R. Sellinger announced today.

Jerome Powell, 43, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Court Judge Susan D. Wigenton to a superseding information charging him with one count of conspiracy to distribute cocaine and one count of possession with intent to distribute cocaine. Judge Wigenton imposed the sentence by videoconference on Jan. 10, 2023.

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

From August 2019 through Feb. 2, 2020, Powell and others agreed to possess and distribute narcotics in Jersey City. Upon his arrest, Powell had 400 vials of cocaine in his pocket.

In addition to the prison term, Judge Wigenton sentenced Powell to three years of supervised release.

U.S. Attorney Sellinger credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Daniel J. Kafafian, New Jersey Division; and members of the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s sentencing.

This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.

The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office in Trenton.

NEWARK, N.J. – A Morris County, New Jersey, man today admitted defrauding the Department of Veterans Affairs (VA) of more than $118,000 in disability benefits and sending an interstate text message threatening a federal agent with bodily injury, U.S. Attorney Philip R. Sellinger announced.

Kamil Wakulik, 38, of Long Valley, New Jersey, pleaded guilty by videoconference before U.S. Magistrate Judge José R. Almonte to an information charging him with theft of government funds and interstate transmission of a threat of injury.

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

Wakulik was an active service member in the U.S. Marine Corps from 2003 to 2007. In 2018, during an assessment by the VA for disability benefits, Wakulik made false representations that he suffered from post-traumatic stress disorder based on his active-duty service. Wakulik claimed that he was assigned to and participated in active-duty missions that required him to recover human remains following natural disasters that occurred in the Philippines and Thailand – in fact, he was not involved in recovering human remains. Based on these false statements, the VA increased Wakulik’s disability rating and provided additional monthly disability benefit payments to him totaling over $118,000.

On Aug. 23, 2022, Wakulik sent an interstate text message to an agent of the VA, Office of Inspector General, threatening physical violence against the agent and any other agent involved in investigating Wakulik.

The charge of theft of government funds carries a maximum sentence of up to 10 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greatest. The charge of interstate transmission of a threat of injury carries a maximum sentence of up to five years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for June 6, 2023.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Adam Baker of the Opioid Abuse Prevention and Enforcement Unit in Newark.

NEWARK, N.J. – A Mercer County, New Jersey, man was sentenced today to 27 months in prison for attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a riot in Trenton, U.S. Attorney Philip R. Sellinger announced.

Kadeem A. Dockery, 31, of Trenton, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce. Judge Martinotti imposed the sentence today in Newark federal court.

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

On May 31, 2020, large-scale protests were held throughout the United States, including in Trenton, in response to the death of George Floyd. Although the May 31st protest in Trenton was peaceful earlier in the day, violence erupted later. A group of individuals proceeded down East State Street in downtown Trenton and began to riot, smashing store fronts, looting stores, and attacking multiple marked Trenton Police Department vehicles parked on the 100 Block of East State Street.

A city of Trenton street camera and other video footage taken by an individual present on the street recorded Dockery lighting an explosive device and throwing it through the open front driver’s side window of a Trenton Police Department vehicle, attempting to set the police vehicle on fire. The footage captured the sound of an explosion, and smoke emanating from the police vehicle. Law enforcement later identified Dockery through analysis of street camera and other video footage. Dockery was arrested on Aug. 5, 2020.

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

Dockery is the last of four individuals sentenced in connection with the protest in Trenton. Earlja J. Dudley was sentenced in March of 2022 to 30 months in prison; Killian F Melecio was sentenced in June of 2021 to 28 months in prison; and Justin D. Spry was sentenced in September 2021 to 24 months in prison. 

U.S. Attorney Philip R. Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force in Newark, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the sentence. He also thanked officers of the Trenton Police Department, under the direction of Police Director Steve E. Wilson; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and officers of the New Jersey Department of Corrections, under the direction of Commissioner Victoria L. Kuhn, for their assistance.

The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division. 

NEWARK, N.J. – Five men were sentenced today for their roles in a conspiracy to transport over $1.3 million worth of stolen perfume products out of New Jersey to Florida, U.S. Attorney Philip R. Sellinger announced.

Carlos Duvergel, 58, of Miami Gardens, Florida, was sentenced to 33 months in prison. Four defendants residing in Hialeah, Florida, were also sentenced: Juan Crespo, 46, was sentenced to 37 months in prison; Felix Castillo, 49, was sentenced to 33 months in prison; Asnay Fernandez, 32, was sentenced to 33 months in prison; and Ismael Manzano-Suarez, 25, was sentenced to 33 months in prison. The defendants were previously convicted at trial before Judge Peter G. Sheridan with conspiring to transport stolen property in interstate commerce and transportation of stolen property in interstate commerce. Judge Sheridan imposed the sentences today in Trenton federal court.

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

In November 2017, the defendants broke into a warehouse storing perfume products in Edison, New Jersey, and drove away with two tractor trailers filled with stolen perfume products. The value of the stolen perfume products was over $1.3 million. The defendants were arrested in May 2018 while attempting to break into another perfume warehouse in East Brunswick, New Jersey.

In addition to the prison term, Judge Sheridan sentenced each defendant to three years of supervised release and were ordered to pay total restitution of $1.36 million.

U.S. Attorney Philip R. Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencings. He also thanked the Edison Police Department, the East Brunswick Police Department, and the Middlesex County Prosecutor’s Office, for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Christopher D. Amore of the National Security Unit and Special Assistant U.S. Attorney Timothy P. Shaughnessy of the Organized Crime and Gangs Unit in Newark.

NEWARK, N.J. – A Somerset County, New Jersey, man today admitted possessing multiple images and videos of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

John Schulenburg, 67, of Basking Ridge, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez in Newark federal court to a superseding information charging him with possession of child pornography.  

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

In July 2019, an undercover law enforcement officer conducted an online session using a publicly available peer-to-peer program, which allows internet users to trade digital files. During this session, a user shared multiple files featuring images of child sexual abuse from an internet address traced to Schulenburg’s residence. On Nov. 6, 2019, law enforcement lawfully obtained a computer from Schulenburg’s residence that contained hundreds of images and videos of child sexual abuse, including images of prepubescent children.

Schulenburg was previously convicted of endangering the welfare of a child/possession of child pornography in Somerset County in 2013. For a repeat offender, the charge of possession of child pornography carries a mandatory minimum term of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for May 22, 2023.

U.S. Attorney Sellinger credited special agents with the Newark Child Exploitation and Human Trafficking Task Force, under the direction of FBI Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea. He also thanked the Somerset County Prosecutor’s Office for its assistance.

The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – A Passaic County, New Jersey, man admitted producing one or more images of child sexual abuse and enticing a minor to engage in sexually explicit conduct, U.S. Attorney Philip R. Sellinger announced today.

Jose Minaya, 27, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Julien X. Neals on Jan. 5, 2023, to an information charging him with one count of production of child pornography and one count of online enticement.

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

In July 2019, Minaya used a web-based application to engage a child in a sexually explicit conversation online. Minaya persuaded the child to take sexually explicit photographs of the child and send them to him. Minaya was arrested at his home in May 2020, at which time agents seized multiple electronic devices. Further investigation revealed that Minaya had used another application to entice an additional minor to engage in sexually explicit conduct.  

The charge of production of child pornography, carries a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison. The charge of online enticement carries a mandatory minimum of 10 years in prison and a maximum of life in prison. Each of the charges carry a fine of up to $250,000. Sentencing is scheduled for May 9, 2023.  

U.S. Attorney Sellinger credited special agents with the Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – A Monmouth County, New Jersey, man was sentenced to 63 months in prison for committing securities fraud to obtain over $2.8 million from victim investors, U.S. Attorney Philip R. Sellinger announced today.

Mark Marchi, 55, of Red Bank, New Jersey, previously pleaded guilty before U.S. District Court Judge Claire C. Cecchi to an information charging him with one count of securities fraud. Judge Cecchi imposed the sentence on Jan. 4, 2023, in Newark federal court.

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

Marchi, who was previously barred from the securities industry, purported to provide investment adviser services to clients. Beginning in December 2015, he managed and controlled Precipio Capital LLC, after previously managing and controlling a different investment company called Global Alliance Capital, LLC. Through Global Alliance, Marchi solicited investments from multiple investors, and when he ceased operating Global Alliance, Marchi represented to those investors that he rolled over their accounts into Precipio. Marchi also solicited investors to invest directly into Precipio. 

Instead of using the funds on legitimate investments, Marchi diverted approximately $2.8 million of those funds from victim investors for other purposes, including paying back previous Global Alliance investors and his own use. Marchi made repeated misrepresentations to the victim investors, which included false claims about the status and performance of investments and false assurances to victims that their investments were profitable. Marchi also provided victims with falsified records, including trading records, performance reports, and K-1s. 

In addition to the prison term, Judge Cecchi sentenced Marchi to three years of supervised release and ordered him to pay restitution of $2.87 million. 

U.S. Attorney Sellinger credited the special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s sentencing. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Division of Consumer Affairs, under the direction of Attorney General Matthew J. Platkin and Acting Bureau Chief Amy Kopleton, as well as the U.S. Securities and Exchange Commission’s Division of Enforcement, under the direction of Director Gurbir S. Grewal, for their assistance.

The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced to 72 months in prison for possessing quantities of heroin and cocaine he intended to distribute, and possessing several firearms, including an AM-15 rifle, U.S. Attorney Philip R. Sellinger announced today.

Cedric Lewis, 32, of Bloomfield, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a superseding information charging him with two counts of possession of a firearm and ammunition by a convicted felon and two counts of possession with intent to distribute controlled substances.

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

On Sept. 20, 2020 investigators learned that Lewis was in a car in the Newark/Elizabeth area while he possessed a quantity of heroin and cocaine he intended to sell, as well as an AM-15 rifle with a high-capacity magazine that contained 30 rounds of .300 caliber ammunition. Law enforcement officers subsequently lawfully searched Lewis’s apartment recovered a 9 millimeter pistol with an extended magazine; a .40 caliber pistol with an extended magazine; drug paraphernalia and a scale; $800 in cash, and heroin and cocaine that Lewis intended to sell. 

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

U.S. Attorney Sellinger credited members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Bryan Miller; deputy marshals with the U.S. Marshals Service in the District of New Jersey, under the supervision of U.S. Marshal Juan Mattos Jr.; and deputy marshals with the U.S. Marshals Service in the Northern District of Georgia, under the supervision of U.S. Marshal Michael S. Yeager, with the investigation leading to today’s sentencing. He also thanked the Bloomfield Police Department for its assistance.

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

NEWARK, N.J. – Nine members of a drug and gun trafficking network led by Latin King gang members in Union and Middlesex counties have been charged with drug and weapons offenses, U.S. Attorney Philip R. Sellinger announced today.

The defendants are charged by complaint with conspiracy to distribute and possess with intent to distribute narcotics, including fentanyl and cocaine, possession with intent to distribute narcotics, conspiracy to traffic firearms, including several privately made firearms (PMFs or “ghost guns”), and the unlawful possession of firearms.

“The charges we’re announcing today describe an illegal network that was actively distributing guns and drugs, including fentanyl and cocaine, around New Jersey,” U.S. Attorney Sellinger said. “In addition to bringing illegal weapons into New Jersey from other states, these defendants are charged with manufacturing untraceable gun parts that could be used to convert weapons for automatic firing. Thanks to the excellent work of our federal, state and local law enforcement partners, we’ve dealt a substantial blow to this criminal operation.”

“ATF has a zero-tolerance policy for those engaged in firearms-related violence, violent drug gangs, and those who facilitate the illegal manufacturing and trafficking of firearms,” Acting Special Agent in Charge of ATF Bryan Miller said. “We are committed to doing the necessary work to protect our neighborhoods from criminals who jeopardize the public’s safety and lessen the quality of life in our communities. This investigation demonstrates ATF’s dedication to working with our local, state, and federal partners in identifying and incarcerating violent offenders who threaten the peace that our neighborhoods so deserve.”

“The arrest of these defendants, and the seizure of drugs and guns has made our community safer,” Acting Special Agent in Charge of the DEA’s New Jersey Division Daniel J. Kafafian said. “This network was pushing deadly fentanyl and cocaine, and there is no doubt the weapons being produced and seized would have led to violence and misery. This is another example of law enforcement partners at all levels working towards the common goal of protecting the citizens of New Jersey.”

According to the allegations in the complaint, the defendants below are members and associates of the Latin Kings street gang:

• Justin Aponte, 28, of Elizabeth, New Jersey;
• Victor Barrios, 28, of Bayonne, New Jersey;
• Jose Fontanez, 28, of Carteret, New Jersey;
• Jonathan Lakomy, 32, of Ringwood, New Jersey;
• Christian Rodriguez, 32, of Chesterfield, Virginia;
• Jeziel Romero, 27, of Old Bridge, New Jersey;
• Christopher Soto, 30, of Matawan, New Jersey;
• Angel Valentin, 34, of Carteret, and
• Ian Wooten, 30, of Carteret.

All  New Jersey resident defendants appeared before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Rodriguez appeared before U.S. Magistrate Judge Mark R. Colombell, in Richmond, Virginia, federal court. Soto remains at large.

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

Beginning in May 2022, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, along with state and local law enforcement agencies, began investigating a drug and firearms trafficking network that included Aponte, Barrios, Fontanez, Lakomy, Rodriguez, Romero, Valentin and Wooten. Many members of the trafficking network were members or associates of the Almighty Latin Kings & Queens Nation, commonly known as the “Latin Kings.” The trafficking network operated largely in neighborhoods in Elizabeth and Carteret, New Jersey.

Law enforcement officers identified members of the trafficking network who were responsible for the distribution of controlled substances, including substantial quantities of fentanyl and cocaine, from residences in Elizabeth and Carteret and elsewhere. Investigators were able to collect evidence that Lakomy supplied fentanyl to Aponte, who in turn provided the drugs to other members of the trafficking network for redistribution. Fontanez, Romero, Valentin, and Wooten were identified as responsible for street-level distribution of the fentanyl and cocaine.   

Aponte, Barrios, Rodriguez and Wooten conspired to illegally traffic firearms, including traditional firearms and PMFs.  In November 2022, investigators determined that Aponte and Barrios were working to produce PMFs at Barrios’ residence. A search warrant executed at that time resulted in the seizure of:

• One Glock-26-style PMF 9x19mm semi-auto handgun;
• one .40 caliber S&W handgun with a Polymer-80 frame with a slide from a Glock model 22 handgun;
• 21 rounds of 5.56 caliber ammunition;
• 45 rounds of .40 caliber ammunition;
• 13 partially manufactured firearms;
• two 3D printers; and
• 3D printing materials.

When law enforcement agents entered Barrios’ residence, they observed that the two 3D printers were in the process of manufacturing PMFs.

Investigators also determined that Aponte was conspiring with Rodriguez to traffic firearms from Virginia to New Jersey. In one meeting between Aponte, Rodriguez, and an undercover law enforcement agent at a location in Virginia, Rodriguez agreed to sell several firearms to Aponte. Subsequently, Aponte told the undercover agent that the firearms were ready to be transported from Rodriguez to Aponte and then sold to the agent. 

From May 2022 to December 2022, law enforcement officers seized more than 15,000 individual doses of fentanyl, approximately 14 grams of cocaine base, 26 firearms including 24 PMFs, and three machine gun conversion devices, which are parts designed to convert a semiautomatic firearm into a fully automatic machinegun.

In addition, during the course of lawful searches conducted by law enforcement on January 4, 2023, law enforcement recovered:

• four firearms, including one FIE Titan .25 caliber semiautomatic handgun and three PMFs consistent with those seized by law enforcement during the investigation from Soto’s residence;
• 3,500 individual doses of suspected fentanyl, a separate 125 grams of suspected powdered fentanyl, and narcotics packaging materials from Lakomy’s residence; and
• 5,000 individual doses of suspected fentanyl, two firearms, including a Springfield model XD 9mm semiautomatic handgun, and a Smith & Wesson model SD40 VE .40 caliber semiautomatic handgun, and six Glock-brand firearm slides consistent with those used by members of the conspiracy to manufacture PMFs, and 100 bricks of suspected fentanyl from Wooten’s residence.

The maximum penalties per count in the filed complaint are:

Count

Charge

Defendant(s)

Maximum Penalty

One

Conspiracy to Distribute Controlled Substances

Aponte, Fontanez, Lakomy, Romero, Valentin, Wooten

Life in prison

Two

Firearms Trafficking Conspiracy

Aponte, Barrios, Rodriguez, Wooten

15 Years

Three

Firearms Trafficking

Aponte, Barrios

15 Years

Four

Possession of Machine Guns

Aponte

10 Years

Five

Possession of a Firearm by a Convicted Felon

Aponte

15 Years

Six

Possession of a Firearm by a Convicted Felon

Soto

15 Years

Seven

Possession with Intent to Distribute Fentanyl

Lakomy

40 Years

Eight

Possession with Intent to Distribute Fentanyl

Wooten

40 Years

Nine

Possession with Intent to Distribute Cocaine Base

Fontanez

20 Years

U.S. Attorney Sellinger credited special agents of the ATF, under the direction of Acting Special Agent in Charge Miller in Newark and Acting Special Agent in Charge Christopher Amon in Richmond, Virginia; special agents of the DEA, under the direction of Acting Special Agent in Charge Kafafian in Newark; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; the Plainfield Police Department, under the direction of Director James Abney; the Elizabeth Police Department, under the direction of Police Director Earl Graves and Chief Giacommo Sacca; the Perth Amboy Police Department, under the direction of Chief Lawrence Cattano; the Woodbridge Police Department, under the direction of Police Director Robert Hubner; the Union County Sheriff’s Department, under the direction of Sheriff Peter Corvelli; and the Scotch Plains Police Department, under the direction of Chief Theodore D. Conley, with the investigation. He also thanked the Hudson County Prosecutor’s Office and the New Jersey Department of Corrections for their assistance.

The government is represented by Assistant U.S. Attorneys John Mezzanotte and Robert Frazer of the Organized Crime and Gangs Unit in Newark, and by Assistant U.S. Attorney Angela Mastandrea-Miller of the U.S. Attorney’s Office, Eastern District of Virginia.

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

CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced to 135 months in prison for possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.

Cory Newman, 44, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with one count of possession of child pornography. Judge O’Hearn imposed the sentence in Camden federal court.

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

On May 20, 2021, agents with Department of Homeland Security, Homeland Security Investigations, (HSI) served a search warrant at Newman’s residence in Atlantic City and discovered electronic devices containing numerous videos and images of children being sexually abused.  

In addition to the prison term, Judge O’Hearn sentenced Newman to 15 years of supervised release.

U.S. Attorney Sellinger credited special agents of HSI, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to today’s sentencing. He also thanked the Atlantic County Prosecutor’s Office, under the direction of Acting Atlantic County Prosecutor William E. Reynolds, and the Atlantic City Police Department, under the direction of Interim Officer in Charge Deputy Chief James A. Sarkos, for their assistance in the investigation.

The government is represented by Assistant U.S. Attorney Andrew Johns of the Criminal Division in Camden.

New Jersey Woman Also Pleads Guilty to Conspiring to Defraud the New Jersey Traumatic Brain Injury Fund of Millions of Dollars

TRENTON, N.J. – The former manager of the New Jersey Traumatic Brain Injury Fund (TBI Fund) and one of his conspirators today admitted their roles in a long-running scheme to defraud the fund, a publicly funded health care benefit program, of more than $4.5 million, U.S. Attorney Philip R. Sellinger announced.

Harry Pizutelli, 64, of Edison, New Jersey, pleaded guilty by videoconference before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of conspiracy to commit healthcare fraud. Maritza Flores, 45, of Toms River, New Jersey, also pleaded guilty before Judge Quraishi in Trenton to an information charging her with conspiracy to commit healthcare fraud and tax evasion.

In January 2021, Pizutelli, Flores, and co-defendant C.R. Kraus were charged in a criminal complaint with conspiracy to commit healthcare fraud in connection with a scheme to defraud the TBI Fund of millions of dollars of public funds for their own personal benefit. The charges against Kraus remain pending.

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

The TBI Fund is a publicly funded program run by the New Jersey Division of Disability Services, a component of the New Jersey Department of Human Services. The TBI Fund’s purpose is to provide New Jersey residents who have suffered a traumatic brain injury with services and support in order to maximize their quality of life when funding from insurance, personal resources, or other programs is unavailable to meet their needs. Services funded by the TBI Fund include physical, occupational, and speech therapy; service coordination; assistive technology; cognitive therapy; neuropsychological services; pharmaceuticals; wheelchair ramp installation and other home modifications; and general home management and maintenance.

After a prospective patient applies for services, TBI Fund personnel review the application and, if approved, the patient is authorized to secure designated services from a third-party vendor. Once a patient receives services approved by the TBI Fund, the vendor or service provider submits an invoice to the TBI Fund for payment. When an invoice is received, TBI Fund personnel review the invoice to ensure that the patient had been approved to receive the services. If the invoice is approved, an internal payment voucher is generated, authorized by TBI Fund personnel, and then submitted to the New Jersey Department of the Treasury for payment, which issues a check directly to the vendor.

Pizutelli was the manager of the TBI Fund and was responsible for its day-to-day operation. He supervised, managed, and oversaw the process by which third-party vendors were paid for services rendered to eligible TBI Fund patients. From 2009 through June 2019, Pizutelli, Kraus, Flores, and others conspired to defraud the TBI Fund by misappropriating more than $4.5 million in fraudulent vendor payments for purported services that were never actually provided. Pizutelli orchestrated the distribution of fraudulent vendor payments to Flores, Kraus, and others by generating and processing false invoices and internal payment vouchers. Pizutelli generated these invoices and vouchers to give the appearance that Flores, Kraus, and other conspirators had provided approved services to eligible patients when, in fact, they had not provided any services. Pizutelli then approved and transmitted the internal payment vouchers.

Pizutelli orchestrated these fraudulent payments to maintain and further romantic and/or sexual relationships with Flores and other conspirators. Pizutelli orchestrated the fraudulent payment of more than $4.5 million from the TBI Fund to members of the conspiracy, including more than $940,000 in fraudulent distributions to Flores and more than $3.245 million in fraudulent distributions to Kraus, which they used for their own personal benefit and enrichment. Flores and Kraus also evaded the payment of substantial amount of income taxes by making material misstatements and omissions on their federal income tax returns and significantly underreporting the income they had derived from the fraudulent scheme.

The healthcare fraud conspiracy charge to which Pizutelli and Flores each pleaded guilty carries a maximum penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross receipts to the defendants or gross loss sustained by any victims, whichever is greater. The tax evasion charge to which Flores pleaded guilty carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing for Pizutelli is scheduled for May 8, 2023, and for Flores, May 9, 2023.

U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge James E. Dennehy; and special agents of the IRS, Criminal Investigation, under the direction of Special Agent in Charge Tammy L. Tomlins, with the investigation leading to the charges. He also thanked the New Jersey Attorney General’s Office, Division of Law, and the New Jersey Department of Human Services, for their assistance.

The government is represented by J. Brendan Day, Deputy Chief of the Criminal Division in Newark, and Assistant U.S. Attorney Eric Suggs of the U.S. Attorney’s Office Trenton Branch Office.

The charges and allegations against Kraus are merely accusations and he is presumed innocent unless and until proven guilty.

Defense counsel:

Pizutelli: Benjamin J. West Esq., Assistant Federal Public Defender

Flores: Aidan P. O’Connor Esq. Hackensack, New Jersey

TRENTON, N.J. – A New York man was sentenced today to 84 months in prison for transporting multiple items of child sexual abuse into New Jersey, U.S. Attorney Philip R. Sellinger announced.

Jesus Modesto Sanchez, 31, of New York, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of transporting of child pornography. Judge Quraishi imposed the sentence today in Trenton federal court.

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

In October 2020, Modesto Sanchez began communicating with an undercover officer who he believed was a minor on a web-based application. On Oct. 17, 2020, Modesto Sanchez was arrested after traveling from New York to New Jersey to meet the undercover officer. Law enforcement officers subsequently discovered a significant collection of child pornography on Modesto Sanchez’s cellular telephone, including 72 videos and one image depicting the sexual abuse of minors.

In addition to the prison sentence, Judge Quraishi sentenced Modesto Sanchez to five years of supervised release.  

U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James Dennehy in Newark, and members of the Somerset County Prosecutor’s Office, under the direction of Prosecutor John P. McDonald, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – In a civil complaint filed today, the Department of Justice alleges that AmerisourceBergen Corp. and two of its subsidiaries, AmerisourceBergen Drug Corp. and Integrated Commercialization Solutions LLC (AmerisourceBergen), collectively one of the country’s largest wholesale pharmaceutical distributors and one of the largest companies in America by revenue, violated the law in connection with the distribution of controlled substances to pharmacies and other customers across the country, contributing to the prescription opioid epidemic.

The complaint alleges that this unlawful conduct resulted in at least hundreds of thousands of violations of the Controlled Substances Act (CSA). The Justice Department seeks civil penalties and injunctive relief.

“For years, AmerisourceBergen put its profits from opioid sales over the safety of Americans,” U.S. Attorney for the District of New Jersey Philip R. Sellinger said. “According to the complaint, this was part of a brazen, blatant, and systemic failure by one of the largest companies in America to comply with its obligations to report suspicious opioid orders, contributing to the epidemic of opioid abuse throughout this country.”

“The Department of Justice is committed to holding accountable those who fueled the opioid crisis by flouting the law,” Associate Attorney General Vanita Gupta said. “Companies distributing opioids are required to report suspicious orders to federal law enforcement.  Our complaint alleges that AmerisourceBergen—which sold billions of units of prescription opioids over the past decade—repeatedly failed to comply with that requirement.”

“The mission of the DEA is to enforce the Controlled Substances Act, and as this complaint alleges, AmerisourceBergen violated the CSA hundreds of thousands of times,” Susan A. Gibson, Special Agent in Charge of the DEA’s New Jersey Division, said. “AmerisourceBergen was required by law to report suspicious orders to the DEA, and they failed in their obligation to do so. This failure contributed to the opioid epidemic that has plagued this country for years. This multi-year investigation and resulting lawsuit will hold AmerisourceBergen accountable for their actions.”

“AmerisourceBergen, one of the largest wholesale distributors of opioids in the world, had a legal obligation to report suspicious orders to the Drug Enforcement Administration, and our complaint alleges that the company’s repeated and systemic failure to fulfill this simple obligation helped ignite an opioid epidemic that has resulted in hundreds of thousands of deaths over the past decade,” DEA Administrator Anne Milgram said. “The men and women of the DEA will stop at nothing to hold accountable registrants that fail to uphold their responsibility of saving American lives by filing suspicious order reports.”

Pharmaceutical distributors that sell controlled substances, including AmerisourceBergen, have a longstanding legal obligation to monitor the orders that they receive from pharmacies and other customers and must inform the Drug Enforcement Administration (DEA) each and every time they receive a suspicious order.

The complaint filed in the U.S. District Court for the Eastern District of Pennsylvania alleges that over the course of nearly a decade, from 2014 through the present, AmerisourceBergen violated the CSA by failing to report at least hundreds of thousands of suspicious orders of controlled substances to the DEA as required by law. The alleged unlawful conduct includes filling and failing to report numerous orders from pharmacies that AmerisourceBergen knew were likely facilitating diversion of prescription opioids.  Today’s filing is the result of a multi-year investigation by the DEA, the District of New Jersey, the Civil Division’s Consumer Protection Branch, several other U.S. Attorneys’ Offices.

The government’s complaint specifies several pharmacies for which AmerisourceBergen allegedly was aware of significant “red flags” suggesting the existence of diversion of prescription drugs to illicit markets. The complaint asserts that AmerisourceBergen nevertheless continued to distribute drugs to the pharmacies for years and reported few suspicious orders to the DEA. These pharmacies include: a New Jersey pharmacy that has pleaded guilty to unlawfully selling controlled substances; another New Jersey pharmacy whose pharmacist-in-charge has been indicted for drug diversion; two pharmacies, one in Florida and one in West Virginia, for which AmerisourceBergen knew the drugs it distributed were likely being sold in parking lots for cash; and, a Colorado pharmacy that AmerisourceBergen knew was its largest purchaser of oxycodone in that state and specifically identified eleven patients as potential “drug addicts” whose prescriptions likely were illegitimate.

“As alleged in the complaint,” U.S. Attorney Sellinger said, “after learning of drug deals in a pharmacy parking lot – the ‘reddest of red flags’ as one AmerisourceBergen employee described – an AmerisourceBergen subsidiary went on shipping thousands of opioids order to that pharmacy and did not report a single one of them to the DEA. Another example: despite telling the DEA that it had ceased selling controlled substances to a New Jersey pharmacy, an AmerisourceBergen subsidiary used a proxy distributor – a straw – to continue funneling hundreds of opioids orders to that same pharmacy. None of those suspicious orders were reported to DEA either. These were not isolated incidents, but are indicative of AmerisourceBergen’s widespread misconduct.”

The complaint further alleges that AmerisourceBergen not only ignored red flags of diversion, but also relied on internal systems to monitor and identify suspicious orders that were deeply inadequate, both in design and implementation. These systems allegedly flagged only a tiny fraction of suspicious orders, thereby enabling diversion and AmerisourceBergen’s failure to report orders it was legally obligated to identify to the DEA.  In fact, the complaint asserts that in the midst of the opioid epidemic, AmerisourceBergen intentionally altered its internal systems to reduce the number of controlled substances reported as suspicious. Even for the small percentage of orders that AmerisourceBergen did identify as suspicious, the company routinely failed to report them to the DEA.

The government’s complaint alleges that for years AmerisourceBergen flouted its legal obligations and prioritized profits over the well-being of Americans.

If AmerisourceBergen is found liable, it could face escalating civil penalties depending on when each violation occurred and the type of controlled substance at issue. Specifically: up to $10,000 for each reporting violation before November 2015, up to $16,864 for each violation between November 2015 and October 2018 and for each violation relating to a suspicious order for a non-opioid controlled substance not reported after October 2018 , and up to $109,374 for each violation relating to a suspicious opioid order not reported after October 2018, potentially totaling billions of dollars in penalties. The court also may award injunctive relief to prevent AmerisourceBergen from committing future CSA violations.

The claims made in the complaint are allegations that the United States must prove by a preponderance of the evidence if the case proceeds to trial.

The government is represented by Assistant U.S. Attorneys Hayden M. Brockett and Jordann R. Conaboy for the District of New Jersey, Trial Attorneys Michael Wadden, Amy DeLine, and Deborah Sohn of the Department of Justice Civil Division’s Consumer Protection Branch, Assistant U.S. Attorneys Anthony D. Scicchitano and Landon Jones for the Eastern District of Pennsylvania, Assistant U.S. Attorneys Amanda Rocque and David Moskowitz for the District of Colorado, and Assistant U.S. Attorneys Elliot M. Schachner and Diane Leonardo for the Eastern District of New York. The DEA, under the direction of Special Agent in Charge Gibson in New Jersey, collaborated with the Department to investigate the case.

NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a conspiracy that targeted Asian and Asian-American homeowners for residential burglaries, U.S. Attorney Philip R. Sellinger announced today.

Randi Barr, 41, of Vauxhall, New Jersey, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of conspiracy to commit interstate transportation of stolen property. 

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

From Dec. 2, 2016, to March 20, 2019, Barr and others participated in a conspiracy to burglarize the residences of certain Asian small business owners living in New Jersey, New York, Pennsylvania, and Delaware of large sums of money, valuable jewelry, and other items, and then transport the stolen goods in interstate commerce, including to Barr’s residences in New Jersey and Pennsylvania.

The charge of conspiracy to commit interstate transportation of stolen property carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the amount of money involved in the offense, whichever is greater. Sentencing is scheduled for April 25, 2023.

U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy, in Newark, with the investigation leading to today’s guilty plea. He also thanked the South Plainfield Police Department, the Middlesex County Prosecutor’s Office, the New Jersey State Police, the Port Authority of New York and New Jersey, the U.S. Department of Labor, the U.S. Department of State, the Drug Enforcement Administration, the U.S. Customs and Border Protection, the U.S. Department of Transportation, the U.S. Postal Inspection Service, the Union County Prosecutor’s Office, and the Bernards Township, Bethlehem Township, Cherry Hill, Cinnaminson, Clark, Colonial Regional, Cranford, Delran, Edison, East Brunswick, East Hanover, Eatontown, Elizabeth, Evesham Township, Exeter Township, Fair Lawn, Forks Township, Fort Lee, Franklin Township, Glassboro, Gloucester Township, Hackensack, Haverstraw, Hazlet, Highland Park, Hillside, Hillsborough Township, Howell Township, Jackson, Kenilworth, Lawrence Township, Linden, Lyndhurst, Mahwah, Marlboro Township, Maywood, Middletown, Montgomery County, Montville, Morris Township, Mount Laurel, Mountainside, New Castle County, New Providence, North Brunswick, North Plainfield, Old Bridge, Paramus, Parsippany, Phillipsburg, Piscataway, Pocono Mountain Regional, Pocono Township, Raritan, Roselle Park, Sayreville, Somerville, South Brunswick, South River, South Whitehall Township, Spotswood, Town of Tuxedo, Tinton Falls, Toms River, Township of Ocean, Union, Upper Macungie Township, Wall Township, Warren, Washington Township, Watchung, Westfield, Whitehall Township, and Woodbridge Township police departments.

The government is represented by Assistant U.S. Attorney Dong Joo Lee of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.

NEWARK, N.J. – The U.S. Attorney’s Office has reached a comprehensive settlement with New Jersey Transit Corporation (NJ Transit) to resolve allegations that it violated the civil rights of people with disabilities by failing to operate a paratransit service that complied with Americans with Disabilities Act of 1990 (ADA), U.S. Attorney Philip R. Sellinger announced today. 

The ADA requires public entities like NJ Transit to provide accessible public transportation to people with disabilities, including providing a paratransit system that is comparable to the transportation services provided to individuals without disabilities. Under the agreement, NJ Transit must ensure that its paratransit system – Access Link – eliminates capacity constraints that significantly limits the availability of transit services to ADA paratransit eligible persons. NJ Transit’s Access Link subjected a significant number of ADA paratransit eligible riders to excessively long trips, late pickups, late drop-offs, and excessive telephone hold times.

“Without equal access to public transportation, people with disabilities are deprived the opportunity to engage in society on an equal basis,” U.S. Attorney Philip R. Sellinger said.  “This agreement removes discriminatory barriers by ensuring that thousands of Americans with disabilities have equal access to public transportation throughout New Jersey.”

New Jersey Transit has committed to make five intercity rail stations – Newark Penn Station, Princeton Junction Train Station, MetroPark Train Station, Trenton Train Station, and New Brunswick Train Station – accessible to individuals with disabilities. New Jersey Transit must modify multiple portions of the rail stations and their access points, including physical modifications to multiple platforms, waiting areas, parking lots, and restrooms.

Earlier this year, U.S. Attorney Sellinger created a Civil Rights Division with the sole focus on enforcing federal civil rights laws, including the ADA, with the goal of protecting and upholding the civil rights of those in our community. This matter was prosecuted by the U.S. Attorney’s newly formed Civil Rights Division.

Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339.  Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).

The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office Civil Rights Division.

TRENTON, N.J. – A pharmacy employee today admitted conspiring to offer and pay bribes and kickbacks in exchange for having prescriptions steered to the Morris County, New Jersey, pharmacy where he worked, U.S. Attorney Philip R. Sellinger announced.

Srinivasa Raju, 51, of Haskell, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with conspiring to violate the federal anti-kickback statute.

Magdalena Jimenez, 58, of Newark, previously pleaded guilty to a parallel bribery and kickback scheme involving the same pharmacy.

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

Raju had various responsibilities at the Morris County pharmacy, including coordinating prescription deliveries and soliciting business. From January 2019 through February 2021, Raju worked with other pharmacy personnel to pay kickbacks and bribes to medical employees in two different doctors’ offices in Jersey City, New Jersey. In exchange, those employees steered numerous, high-value prescriptions to the pharmacy where Raju worked. Raju and his conspirators paid as much as $150 for each prescription and used various tactics to conceal many of those bribe payments. Overall, the pharmacy received over $2.4 million in Medicare reimbursement payments based on prescriptions derived from the kickback scheme.

The conspiracy charge is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing for Raju is scheduled for May 16, 2023.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the guilty pleas.

The government is represented by Assistant U.S. Attorney Joshua L. Haber, Chief of the Economic Crimes Unit.

Defense counsel:

Raju: Miles Feinstein Esq., Clifton, New Jersey

Jimenez: Peter Guadagnino Esq., New York

NEWARK, N.J. – Two New Jersey men have been charged with possessing with intent to distribute approximately one kilogram of cocaine and approximately 100 grams of fentanyl, U.S. Attorney Philip R. Sellinger announced today.

Carlos Ovidio Gonzalez, 35, of Newark, and Hector Martinez, 31, of North Bergen, New Jersey, are charged by complaint with one count of conspiring to distribute and possess with intent to distribute cocaine and fentanyl. Gonzalez is also charged with one count of being a previously convicted felon in possession of three firearms and ammunition. They had their initial appearances by videoconference on Dec. 20, 2022, before U.S. Magistrate Judge Jessica S. Allen and were both detained.

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

On Dec. 19, 2022, Gonzalez and Martinez conspired to distribute approximately one kilogram of cocaine and 100 grams of fentanyl and were arrested shortly after they arrived at an agreed-upon location in Kearny to complete the sale. After their arrests, a search of Gonzalez’s home and an apartment also uncovered two loaded firearms, an unloaded firearm, ammunition, drug packaging materials, and suspected heroin, cocaine, oxycodone, and Xanax pills. Gonzalez had previously been convicted, in New Jersey Superior Court, Morris County, of first-degree drug distribution, second degree weapons possession during a controlled substance offense, and second degree possession of a firearm for an unlawful purpose, and was sentenced in 2009 to 30 years in prison. 

The count of possession with intent to distribute cocaine and fentanyl carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and fine of up to $5 million. The felon in possession of a firearm charge carries a potential maximum penalty of 15 years in prison and a fine of up to $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and officers with the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, with the investigation leading to the charges. He also thanked Newark Police Department for its assistance.

The government is represented by Assistant U.S. Attorney Camila A. Garces of the OCDETF/Narcotics Unit in Newark.

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

NEWARK, N.J. – A New York man admitted participating in a conspiracy to distribute fentanyl, methamphetamine and cocaine in New Jersey from locations in Manhattan, U.S. Attorney Philip R. Sellinger announced today.

Juan Carlos Merced Moreno, aka “Samuel,” 45, of Manhattan, New York, pleaded guilty  by videoconference on Dec. 20, 2022, before U.S. District Judge Claire C. Cecchi to a superseding information charging him with one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing fentanyl, 50 grams or more of a mixture and substance containing methamphetamine, and 100 grams or more of a mixture and substance containing a detectable amount of heroin.

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

Moreno admitted that from November 2020 through January 2021 he conspired with others to distribute and possess with intent to distribute fentanyl, methamphetamine, and heroin. He admitted participating in the conspiracy from locations in Manhattan and that some of the controlled substances were transported to New Jersey.

The conspiracy charge carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a maximum $5 million fine. Sentencing is scheduled for May 8, 2023.

U.S. Attorney Sellinger credited members of the Department of Homeland Security, Homeland Security Investigations, New York City Airport Border Enforcement Security Taskforce under the direction of Ivan J. Arvelo; special agents from Homeland Security Investigation, Newark, under the direction of Special Agent in Charge Ricky J. Patel; members of the New York Police Department, under the direction of Commissioner Keechant Sewell; and investigators and assistant prosecutors from the Hudson County Prosecutor’s Office, under the direction of Hudson County Prosecutor Esther Suarez, with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey has reached a settlement with a New Jersey non-profit organization to resolve allegations of discrimination in violate of the Americans with Disabilities Act of 1990 (ADA), U.S. Attorney Philip R. Sellinger announce today.

The settlement resolves allegations that Educational Testing Service (ETS), a New Jersey non-profit organization that administers standardized tests, engaged in discrimination in violation of the ADA by creating unlawful hurdles to individuals with disabilities who sought testing accommodations. Among other things, the United States alleged that ETS unlawfully denied requests for testing accommodations or failed to timely consider requests for testing accommodations, effectively denying those requests.

Under the settlement, ETS agrees to comprehensive reforms that will require timely determinations on any requests for testing accommodations and narrow the organization’s inquiries related to requests for accommodations. ETS also agrees to pay damages to several complainants – up to $10,000 – who sought testing accommodations that were denied or delayed.

“This office will not tolerate discrimination in any form and will work tirelessly to ensure equal access to educational opportunities,” U.S. Attorney Philip R. Sellinger said. “This agreement compels ETS to make systemic reforms and ends an unfair process for considering requests for testing accommodations. Through this settlement, thousands of Americans with disabilities will be given a fair shot in seeking admission to higher education.”   

Earlier this year, U.S. Attorney Sellinger created a Civil Rights Division with the sole focus on enforcing federal civil rights laws, including the ADA, with the goal of protecting and upholding the civil rights of those in our community. 

Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339.  Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).

The government is represented by Assistant U.S. Attorney John Stinson of the U.S. Attorney’s Civil Division and Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Civil Rights Division.

NEWARK, N.J. – A company based in the People’s Republic of China, along with three businesses located in New Jersey and New York, entered into settlement agreements with the United States, admitting they took steps to avoid paying customs duties, U.S. Attorney Philip R. Sellinger announced today.

According to the admissions and contentions of the United States in the settlement agreements:

United Silica Products Inc. (USP) is a company based in Franklin, New Jersey. From July 22, 2015, and Oct. 6, 2020, USP purchased certain merchandise that was manufactured by Noble Brand Holdings Ltd. (Noble) in China. In connection with the sale of its products, Noble generated two sets of invoices – one that showed the amount actually paid by USP and another, false invoice, that undervalued the products sold to USP. Noble provided USP with the invoices showing the amount actually paid and sent the false invoices to Argos Express Ltd., a New York-based freight forwarding company. Argos then provided the false invoices to USP’s New York-based customs broker, United Way International Inc. for purposes of making customs declarations on USP’s behalf.

In entering goods into the United States, customs brokers and importers of record are required to provide true and accurate disclosures concerning the value of the goods being imported. In the settlement agreements, the companies admitted that the false statements on the customs forms reduced the customs duties paid to the United States.

In the settlement agreements announced today, Noble agreed to pay $500,000; USP and its owner, Lynnmarie Boccuzzo, agreed to pay $20,000 and $5,000, respectively; Argos and United Way agreed to pay $15,000 each. The payments resolve the parties’ potential liability under, among other statutes, the False Claims Act.

U.S. Attorney Sellinger credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to the settlement.

The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.

NEWARK, N.J. – Five men were charged in an indictment and a New Jersey woman pleaded guilty in connection with a transnational technical support scam that targeted more than 20,000 victims, many of whom were elderly, in the United States and Canada, U.S. Attorney Philip R. Sellinger announced today. 

Gagan Lamba, 41, and Harshad Madaan, 34, both of New Delhi, India; Jayant Bhatia, 33, of Ontario, Canada, and Vikash Gupta, 33, of Faridabad, India, are all charged by indictment with conspiracy to commit wire fraud, conspiracy to commit computer fraud, and substantive violations of wire fraud and computer fraud. Lamba, Madaan, Bhatia, and a fifth defendant, Kulwinder Singh, 34, of Richmond Hill, New York, are also charged with conspiracy to commit money laundering, money laundering, and engaging in monetary transactions in property derived from specified unlawful activity. Bhatia has been charged with offenses related to his participation in a high-tech fraud scheme.

Authorities in India arrested Madaan on Dec. 14, 2022, and Gupta on Dec. 15, 2022, on local charges for their involvement in the tech support scheme. Lamba remains at large. Bhatia was arrested by Canadian authorities pursuant to a provisional arrest request from the United States. Singh was arrested at his home in New York. Singh made his initial appearance on Dec. 14, 2022, before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was released on $100,000 unsecured bond.

A sixth defendant, Meghna Kumar, 50, of Edison, New Jersey, pleaded guilty on Dec. 14, 2022, by videoconference before Judge Hammer to an information charging her with engaging in monetary transactions in property derived from specified unlawful activity, based on her role in the scheme.

“As alleged in the indictment, the defendants are charged with using access to personal computers to run a high-tech extortion scheme on a global scale,” U.S. Attorney Philip R. Sellinger said. “They frequently preyed upon senior citizens and scared them into paying for unnecessary and useless computer repair services. Working with our partners here and abroad, we will remain vigilant in protecting our citizens from these kinds of schemes.”

“Tech-support scams, and other consumer fraud schemes that frequently target elderly or vulnerable citizens are particularly egregious crimes,” Acting Inspector in Charge Raimundo Marrero, Newark Field Office, Philadelphia Division, said. “Fraudsters, who often operate from outside the United States, may think they can anonymously infiltrate their victims’ homes and lives through the mail, telephone, or computer – without any consequences. However, let today’s enforcement actions put scammers on notice. Through the investigative efforts of U.S. federal law enforcement, and our international partners, we will work together to pursue those individuals who scam, harass, and steal from our older and respected members of society.”

“Scammers are changing tactics and finding new methods to steal hard-earned money from unsuspecting victims, but it boils down to the same well-worn crime,” FBI Special Agent in Charge James E. Dennehy said. “This investigation highlights the FBI's and our international partners' work in searching out and bringing these fraudsters to justice. It also shows victims that regardless of where the criminals are sitting, here or in a foreign country, we will hold them accountable using every tool we have.”

According to documents filed in this case and statements made in court:From 2012 through November 2022, the defendants and others were members of a criminal fraud ring that operated a technical support fraud scheme in the United States, India, and Canada. The scheme targeted victims across the United States and Canada, including New Jersey, many of whom were elderly. 

The primary objective was to trick victims into believing that their personal computers were infected with a virus or malware and then convince the victims to pay hundreds or thousands of dollars to the fraud ring for phony computer repair services. Over the course of the conspiracy, the fraud ring generated more than $10 million in proceeds from at least 20,000 victims.

The fraud ring caused fraudulent pop-up windows to appear on victims’ personal computers. The pop-ups were designed, at times, to “freeze” the victims’ computers, which prevented the victims from using or accessing files on their computers. The pop-ups also claimed, falsely, that the victims’ computers were infected with a virus, or otherwise compromised, and directed the victims to call a telephone number to receive technical support.  Sometimes the pop-ups warned victims to not shut down their computers. The pop-ups also included, without authorization, the names of well-known, legitimate technology and antivirus companies. In reality, the pop-ups were a hoax, designed to trick the victims into believing that their computers were infected with viruses that did not actually exist.

Victims who called the technical support phone numbers appearing on the pop-ups were connected to one or more call centers in India associated with the fraud ring. Fraud ring members at the call centers falsely repeated that the victims’ computers were infected with viruses and offered to fix the purported issue for a fee. The fraud ring members would then request permission to remotely access the victims’ computers. Once granted access, fraud ring members would, at times, download and run a freely available adblocker tool, advise the victim that the “issue” had been resolved, and then leave a text file on the desktop of the computer with payment instructions.

Victims were instructed to pay the fraud ring in amounts ranging from hundreds to thousands of dollars by: (a) electronically scanning checks made payable to one of several shell companies set up by the fraud ring and (b) sending, via FedEx, physical checks to addresses maintained by Singh and Kumar in New Jersey. The fraud ring often contacted certain victims again to offer additional services or lengthier service agreements that required victims to pay even more money to the fraud ring.

The wire fraud and computer fraud charges carry a maximum penalty of 20 years and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest The money laundering charges carry a statutory maximum of 20 years in prison and a fine of up to $500,000 or twice the value of the property involved, whichever is greater. The transacting in criminal proceeds charges carry a maximum of 10 years in prison and a fine of $250,000, or twice the value of the property involved in the transaction, whichever is greater. 

U.S. Attorney Sellinger postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division, and special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation. He also thanked the Department of Justice Office of International Affairs, the Indian Central Bureau of Investigation, and the Delhi Police for their assistance.

The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s 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. 

NEWARK, N.J. – The Department of Justice and the Environmental Protection Agency (EPA) announced today a proposed consent decree with 85 potentially responsible parties, requiring them to pay a total of $150 million to support the cleanup work and resolve their liability for discharging hazardous substances into the Lower Passaic River, which is part of the Diamond Alkali Superfund Site.

The Justice Department and EPA alleged that these 85 parties are responsible for releases of hazardous substances into the Lower Passaic River, contaminating the 17-mile tidal stretch, including the lower 8.3 miles. The proposed consent decree seeks to hold the parties accountable for their share of the total cost of cleaning up this stretch of the river.

“Newark, Harrison, and many other vibrant communities have borne the brunt of pollution along the Lower Passaic River for too long,” First Assistant U.S. Attorney Vikas Khanna for the District of New Jersey said. “This agreement is an important step forward. It will support significant cleanup efforts that restore this historic waterway, advance a new chapter of responsible land use, and return the river to the people of New Jersey.

“This agreement holds responsible parties financially accountable for the legacy of pollution in the Lower Passaic River,” Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division said. “The settlement will advance the cleanup of the river for the benefit of those communities living alongside it who have been historically overburdened by pollution.”

“Today's agreement requires those responsible, no matter the extent, to pay their fair share for releasing hazardous substances into the Lower Passaic,” Regional Administrator Lisa F. Garcia for the EPA Region 2 said. “This agreement adds to the work we are already doing and will continue to do to get responsible parties to pay for or conduct this cleanup, and it brings us closer to a cleaner healthier river that can be enjoyed by those who live near its banks, no matter what their economic status.”

On behalf of EPA, the Justice Department lodged the consent decree with the U.S. District Court for the District of New Jersey. If and when the settlement becomes final, EPA expects to use the settlement funds to support ongoing efforts to clean up the site, specifically the lower 8.3 miles and the upper 9 miles which make up the entire 17-mile Lower Passaic River Study Area. In addition to the proposed consent decree, EPA has reached several related agreements, including one whereby many parties investigated the 17-mile Lower Passaic River, another whereby Occidental Chemical Corporation, a potentially responsible party, is designing the cleanup chosen for the lower 8.3 miles, and several cost recovery agreements that resulted in payments to EPA of millions of dollars.

This consent decree is subject to a 30-day public comment period and is available for public review here.

After the close of the comment period, Justice Department and EPA will evaluate any comments received and prepare a response to the comments. If the government still considers the settlement appropriate, it will seek approval of the consent decree by the court.

For additional information and site background, visit Diamond Alkali Superfund Profile Page.

Follow EPA Region 2 on Twitter and Facebook page. For more information about EPA Region 2, visit the website.

NEWARK, N.J. – A Texas doctor and his office manager, who was also his wife, have agreed to pay more than $422,789 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute, U.S. Attorney Philip R. Sellinger announced today.

Vijesh Patel and his wife, Laju Patel, both of Port Neches, Texas, have agreed to pay $422,789 to resolve allegations that they received kickbacks in return for referring patients for laboratory testing. Both have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.

“Patients deserve to know that the decisions their health care providers are making are based solely on their medical needs, not on some profit-making scheme,” U.S Attorney Philip R. Sellinger for the District of New Jersey said. “Our office will continue to pursue anyone responsible for actions that have the potential to corrupt the medical decision-making process.”

“Kickbacks can undermine a physician’s medical judgment, result in unnecessary testing, and increase healthcare costs borne by taxpayers,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “We will continue to pursue physicians, laboratories, and others responsible for schemes that violate rules intended to safeguard the integrity of federal healthcare programs.”

The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

The settlement announced today resolves allegations that the Patels received kickbacks in violation of the Anti-Kickback Statute in return for Vijesh Patel’s referrals to three laboratories:

• Texas Laboratory – From December 2016 to July 2018, Vijesh Patel allegedly received thousands of dollars in payments from a purported management service organization (MSO), Indus MG LLC (Indus), in return for ordering laboratory tests from True Health Diagnostics LLC (True Health), a clinical laboratory in Frisco, Texas. The Indus MSO’s payments to Vijesh Patel allegedly were disguised as investment returns, but in fact were based on, and offered in exchange for, his referrals to True Health. 
• New Jersey Laboratory – From August 2018 to August 2021, Vijesh Patel allegedly received thousands of dollars in kickbacks disguised as investment returns from a purported MSO, Avior Group LLC, in return for ordering laboratory tests from RDx Bioscience Inc. (RDx), a clinical laboratory in Kenilworth, New Jersey. RDx allegedly paid remuneration to Vijesh Patel in the form of volume-based commissions paid to an independent contractor recruiter, Corum Group LLC, which used an associated company, Avior, to pay kickbacks to Vijesh Patel and other physicians in return for their referrals. From from December 2018 to August 2022, Laju Patel allegedly received kickbacks from RDx in the form of commercially unreasonable fees to purportedly collect urine specimens for testing that Vijesh Patel referred to RDx.
• South Carolina Laboratory – From August 2019 to December 2021, Vijesh Patel allegedly received hundreds of dollars per month in inflated space rental payments in return for ordering laboratory tests from Labtech Diagnostics LLC (Labtech), a clinical laboratory in Anderson, South Carolina. Labtech’s rental payments allegedly were for a commercially unreasonable amount of space and excessive days and time.

"This settlement demonstrates the Eastern District of Texas’s firm and continued commitment to pursuing all persons responsible for engaging in kickback schemes that inevitably harm the taxpayers, increase costs to care, and decrease access to health care,” said United States Attorney Brit Featherston for the Eastern District of Texas. “We remain vigilant in our pursuit to put a stop to those who partake in kickback schemes of this kind and to hold them accountable for the collective harm they caused.”

“Patients should be able to trust that their doctor’s medical recommendation is in their best interest and not influenced by the doctor’s financial gain,” said United States Attorney Adair F. Boroughs for the District of South Carolina. “Our office has and will continue to hold accountable those that give and receive illegal kickbacks, both to maintain the public’s trust in the healthcare system and to ensure taxpayer money is properly spent.”

“Health care providers engaging in kickback schemes corrupt the provider-patient relationship and impose hidden costs on the health care system,” said Assistant Special Agent in Charge Susan A. Frisco with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Alongside our law enforcement partners, our agency is committed to safeguarding the integrity of federal health care programs by holding individuals who unlawfully bill the programs accountable for their actions.”

“Today’s outcome demonstrates the steadfast determination of the Department of Defense (DoD) Office of Inspector General’s Defense Criminal Investigative Service (DCIS) and our investigative partners to root out fraud perpetrated against TRICARE,” Acting Special Agent in Charge Gregory P. Shilling, DCIS Southwest Field Office said. “DCIS remains focused on protecting and preserving valuable taxpayer dollars by holding those accountable who attempt to defraud the DoD.”

The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Eastern District of Texas, District of New Jersey, and District of South Carolina, with assistance from HHS-OIG and DCIS. To date, the United States has recovered over $32 million relating to conduct involving True Health or MSO kickbacks to physicians in Texas, including False Claims Act settlements with 34 physicians, two health care executives, one office manager, and one laboratory. In addition, the United States has filed a lawsuit under the False Claims Act against former True Health CEO Christopher Grottenthaler and others, which is captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.).  A defendant who violates the act is liable for three times the amount of the government’s losses plus applicable penalties.

The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit, Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section), Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young in the U.S. Attorney’s Office for the Eastern District of Texas, and Assistant U.S. Attorney Beth C. Warren in the U.S. Attorney’s Office for the District of South Carolina.

The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in the government’s efforts to combat health care fraud is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in a scheme to bribe mail carriers to steal postal arrow keys used to unlock mail receptacles and to use stolen items from the mail to fraudulently obtain funds from banks, U.S. Attorney Philip R. Sellinger announced.

Amin C. Jones, 29, of Orange, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count each of bribery of U.S. Postal Service mail carriers and conspiracy to commit bank fraud.  

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

Jones schemed to bribe mail carriers in East Orange and Newark, New Jersey, by offering them cash, typically $5,000, in exchange for the mail carriers giving Jones a postal arrow key, which could be used to access a variety of postal service mail receptacles. Jones and others sought USPS arrow keys so that they could steal mail. From June to July 2021, Jones and another individual drove to various locations in East Orange and Newark, where they stopped over four different mail carriers, including an undercover postal inspector, who Jones believed was a mail carrier, and handed them a note indicating they would give $5,000 to the mail carrier in exchange for an arrow key.

From January to July 2021, Jones conspired with others to obtain funds fraudulently from banks by stealing mail and using stolen checks and bank cards to draw funds from bank accounts linked to the stolen items and using the identification of others to fraudulently obtain funds.

The bribery charge to which Jones pleaded guilty carries a maximum potential penalty of 15 years in prison and the bank fraud conspiracy charge carries a maximum penalty of 30 years in prison. The maximum potential fine for the bribery charge is $250,000 and the bank fraud conspiracy charge carries a maximum potential fine of $1 million. Sentencing is currently scheduled for April 25, 2023.

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Jihee G. Suh of the Special Prosecutions Division in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man today admitted producing multiple videos depicting the sexual assault of children, U.S. Attorney Philip R. Sellinger announced.

Antonio Del Prado, 61, of Millburn, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count each of production of child pornography and production of child pornography abroad with intent to transport into the United States.

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

In October 2020, law enforcement officials learned that Del Prado had uploaded multiple items of suspected child pornography to an internet-based cloud storage system. The investigation also revealed that Del Prado had a woman live-stream a video of a child being sexually assaulted for Del Prado. Del Prado was arrested at his home in November 2020, at which time agents seized multiple electronic devices that were found to contain child pornography. Further investigation revealed that on multiple occasions, Del Prado sexually assaulted children in the Philippines and transmitted video recordings of those assaults into the United States.

The charges in the information each carry a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. Sentencing is scheduled for April 25, 2022.

U.S. Attorney Sellinger credited special agents with the Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel, in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.

CAMDEN, N.J. – A Cumberland County, New Jersey, man was sentenced today to 96 months in prison for distributing and possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Edwin Torres, aka “Macho Torres,” 39, of Bridgeton, New Jersey, previously pleaded guilty before U.S. District Judge Karen M. Williams to one possession of child pornography. Judge Williams imposed the sentence today in Camden federal court.

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

In May 2020, a user of a social media application uploaded to a public chat group multiple videos of child sexual abuse from an internet provider address linked to Torres’ residence. In September 2021, law enforcement agents executed search warrants at Torres’ residence and on a Google account associated with the social media account used to distribute the videos in May 2020. The Google account, which also had been accessed from Torres’ residence, contained over 100 videos of child sexual abuse, including videos whose content matched the videos distributed in May 2020. During the search of Torres’ residence, agents seized Torres’ cellular telephone, which had been used to access the same Google account. 

In addition to the prison term, Judge Williams sentenced Torres to five years of supervised release and ordered him to pay $15,000 in restitution.

U.S. Attorney Sellinger credited special agents of the FBI Newark Child Exploitation and Human Trafficking Task force, and the Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, for its assistance in the investigation. 

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

CAMDEN, N.J. – A former employee of a Mount Holly, New Jersey, medical practice was sentenced today to 30 months in prison for selling fraudulent prescriptions for controlled substances, U.S. Attorney Philip R. Sellinger announced.

Jose Colon, 37, of Sicklerville, New Jersey, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with distribution of controlled substances. Judge O’Hearn imposed the sentence today in Camden federal court.

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

Colon, who is not a medical provider, used the identities of doctors with whom he worked to make and sell fraudulent prescriptions for controlled substances, including Oxycodone, Adderall, Percocet, and Xanax. Colon sometimes met his customers in person with a prescription pad to sell the fraudulent prescriptions for cash. He also submitted fraudulent prescriptions electronically to pharmacies in exchange for electronic payments from his customers. Colon advised his customers on how to fill the fraudulent prescriptions, including instructing them to wait until the medical practice was closed so that Colon would be able to answer any phone calls from the pharmacies questioning the validity of the fraudulent prescriptions.

In addition to the prison term, Judge O’Hearn sentenced Colon to three years of supervised release.

U.S. Attorney Sellinger credited special agents of the FBI Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the FBI Newark Health Care Fraud Task Force, whose members include the Galloway Township and Middle Township Police Departments, and the Cape May County Prosecutor’s Office, for their assistance.

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

CAMDEN, N.J. – An Atlantic County man was sentenced today to 37 months for his role in defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United State Vikas Khanna announced.

Brian Pugh, 45, of Absecon, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiring to defraud a health care benefits program. Judge Kugler imposed the sentence today in Camden federal court.

According to documents in this matter and statements made in court:

Pugh was part of a criminal conspiracy in which state and local government employees were recruited and compensated to receive medically unnecessary compound prescription medications. Pugh and his conspirators defrauded New Jersey health benefits programs and other insurers of more than $50 million. Pugh directly caused the pharmacy benefits administrator to pay more than $1.4 million for medically unnecessary compound prescription medications for individuals he recruited into the scheme, and he received more than $430,000 in the conspiracy.

In addition to the prison term, Judge Kugler sentenced Pugh to three years of supervised release and ordered restitution of more than $1.4 million and forfeiture of $437,604.

Attorney for the United States Khanna credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Christina O. Hud, Acting Chief of the Health Care Fraud Unit; R. David Walk Jr., Chief of the Opioid Abuse Prevention & Enforcement Unit; and Desiree L. Grace, Deputy Chief of the Criminal Division.

NEWARK, N.J. – A Nigerian man has been indicted for his role in computer hacking, wire fraud, and money laundering acts that defrauded companies of nearly $8 million after compromising companies’ business e-mail accounts, U.S. Attorney Philip R. Sellinger announced today.

Oladeji Nathaniel Adelekan, aka “Djzle,” 28, of Lagos, Nigeria, was indicted by a federal grand jury on one count each of wire fraud conspiracy, wire fraud, conspiracy to access a protected computer in furtherance of fraud, unauthorized access of a computer with intent to defraud, and money laundering conspiracy. 

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

Between February 2019 and April 2020, Adelekan and his conspirators enriched themselves by tricking corporate employees into transferring company funds to bank accounts that the conspirators controlled. Using phishing emails, Adelekan and his conspirators compromised the email accounts of corporate victims, including a pharmaceutical company headquartered in New Jersey and a technology firm headquartered in Oregon.

In April 2019, the conspirators sent a phishing email to an email account controlled by the pharmaceutical company. Once an employee clicked on a link in the email, the company’s email system was compromised, and the hackers diverted emails sent to the company’s compromised email account to an email account they controlled. Pulling information from the emails that they had diverted, Adelekan and his conspirators spoofed other email accounts at the pharmaceutical company and its supplier. In May 2019, using the supplier’s spoofed email account, the conspirators directed the pharmaceutical company to send a $7.5 million wire transfer to a bank in Mexico for the purported benefit of the supplier to satisfy an outstanding invoice, but which wire transfer actually went to a bank account controlled by the conspirators.

In January 2020, the coconspirators used similar tactics to obtain access to an email account of the Oregon technology firm. The hackers then diverted business emails from that email account to an email account they controlled. In April 2020, the conspirators caused an employee of the Oregon technology firm to execute a $130,000 wire transfer to a bank account in Hong Kong, another bank account controlled by Adelekan and his conspirators.

The counts of conspiracy to commit wire fraud and wire fraud each carry a maximum potential punishment of 20 years in prison. The counts of conspiracy to commit unauthorized access of a computer and unauthorized access of a computer each carry a maximum punishment of five years in prison. The count of money laundering conspiracy carries a maximum of 20 years in prison. All of the charges carry a fine of up to $250,000, or twice the gross loss or gain caused by the offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio of the Special Prosecutions Division and Jamie H. Solano of the Cybercrime Unit in Newark.

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