District of New Jersey
Press releases recorded for this federal judicial district.
New York Man Sentenced to Seven Years in Prison for Transporting Child Pornography into New JerseyRead the Press Release
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.
Department of Justice Files Nationwide Lawsuit Against AmerisourceBergen Corp. and Subsidiaries for Controlled Substances Act ViolationsRead the Press Release
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.
Union County Man Admits Role in Conspiracy to Target Asian Homeowners in Residential BurglariesRead the Press Release
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.
U.S. Attorney’s Office Reaches Settlement with New Jersey Transit to Ensure New Jersey Transit’s Paratransit System Complies with Americans with Disabilities ActRead the Press Release
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.
Morris County Pharmacy Employee Admits Participating in $2.4 Million Kickback and Bribery SchemeRead the Press Release
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
Two New Jersey Men Charged with Conspiring to Distribute Cocaine and FentanylRead the Press Release
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.
New York Man Admits Role in Conspiracy to Distribute Fentanyl, Methamphetamine and Cocaine in New JerseyRead the Press Release
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.
U.S. Attorney’s Office Reaches ADA Settlement with Educational Testing ServiceRead the Press Release
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.
Chinese Manufacturer and U.S. Companies Admit Scheme to Evade U.S. Customs DutiesRead the Press Release
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.
Six Individuals Charged in Multimillion-Dollar Transnational Tech Support Scam Targeting Tens of Thousands of U.S. VictimsRead the Press Release
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.
Parties Agree to Pay $150 Million Toward Clean up of Lower Passaic River in New JerseyRead the Press Release
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.
Physician and Office Manager Agree to Pay More Than $420,000 to Settle Kickback Allegations Involving New Jersey, Texas, and South Carolina LaboratoriesRead the Press Release
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.
Essex County, New Jersey, Man Admits Bribing Mail Carriers to Steal Postal Arrow KeysRead the Press Release
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.
Essex County Man Admits Producing Child Pornography in New Jersey and AbroadRead the Press Release
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.
Cumberland County Man Sentenced to Eight Years in Prison for Child PornographyRead the Press Release
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 County Man Sentenced to 30 Months in Prison for Selling Phony PrescriptionsRead the Press Release
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.
Atlantic County Man Sentenced to 37 Months in Prison for Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
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.
Nigerian National Charged with $8 Million Computer Hacking, Wire Fraud, and Money Laundering ActivitiesRead the Press Release
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.
Florida Man Charged with Conspiring to Pay Kickbacks and Commit Health Care Fraud in $64 Million SchemeRead the Press Release
NEWARK, N.J. – A Florida man was charged for his role in conspiracies to pay illegal kickbacks and to commit health care fraud that caused at least $64 million in losses to federal health care benefit programs, Attorney for the United States Vikas Khanna announced today.
James D. Feeley, 45, of Navarre, Florida, is charged by complaint with one count of conspiracy to violate the federal Anti-Kickback Statute and one count of conspiracy to commit health care fraud. Feeley made his initial appearance before U.S. Magistrate Judge Wettre in Newark federal court and was ordered released on $400,000 unsecured bond.
According to documents filed in this case and statements made in court:
Feeley and his business partner owned and operated medical marketing companies in Ohio that paid for prescriptions from telemedicine companies, which were then sent to pharmacies, including Apogee Bio-Pharm LLC in Edison, New Jersey. From January 2016 to September 2020, Feeley and others worked with pharmacies, telemedicine companies, and doctors to unlawfully profit by paying kickbacks and bribes to telemedicine companies to generate prescriptions for their pharmacy clients to fill. The telemedicine companies, in turn, paid kickbacks and bribes to doctors so that they would sign high volumes of expensive prescriptions. The pharmacies then paid kickbacks and bribes to Feeley and his businesses for each referral. The kickback payments paid to Feeley’s businesses were a percentage of the reimbursements the pharmacies received from health care programs for filling the prescriptions generated by Feeley’s businesses.
Feeley arranged to purchase federal health care beneficiary information (also referred to as “leads”), which usually included beneficiaries’ personal and health insurance information, from various sources, including overseas call centers and data brokers. Feeley and others used this information to identify their targets for cold calling. Feeley and others targeted beneficiaries because they had insurance that would reimburse for expensive medications regardless of whether the beneficiaries had medical need for those products.
Feeley and others employed “sales representatives,” frequently high school students with no medical licenses or training, to call the beneficiaries. Feeley’s company often deceived beneficiaries into accepting medications by providing false and misleading information to the beneficiaries about the nature, cost, and efficacy of the medications they would receive.
Feeley and others knew that the prescriptions were not generated by genuine doctor-patient relationships because they knew the doctors were paid to generate prescriptions and often did not have any contact with beneficiaries. Feeley and his conspirators knew the prescriptions they arranged were false and fraudulent. Among other things, they complained to telemedicine companies when doctors did not approve prescription requests based on lack of medical necessity.
The health care fraud conspiracy count is punishable by a maximum of 10 years in prison and the kickback conspiracy count is punishable by a maximum of five years in prison
Attorney for the United States Khanna credited special agents of the Department of Defense, Office of Inspector General (DOD-OIG), Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) under the direction of Acting Special Agent in Charge Susan Frisco; and the FBI’s Newark Field Office under the direction of Special Agent in Charge James E. Dennehy, with the investigation.
The government is represented by Assistant U.S. Attorneys Nicole F. Mastropieri and Hayden M. Brockett of the Health Care Fraud 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.
Burlington County Businessman Sentenced to Five Years in Prison for Defrauding over 75 Victims of More Than $2.7 Million in Nationwide Scheme to Sell Pesticides Falsely Billed as Registered with EPA and Approved to Kill CoronavirusRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man who sold more than $2.7 million worth of pesticides he falsely claimed were registered with the Environmental Protection Agency as being effective against coronavirus, was sentenced today to 60 months in prison, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division announced.
Paul Andrecola, 63, of Maple Shade, New Jersey, previously pleaded guilty before U.S. District Court Judge Robert B. Kugler in Camden federal court to an information charging him with one count each of knowingly distributing or selling an unregistered pesticide in violation of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), wire fraud, and presenting false claims to the United States. Judge Kugler imposed the sentence today in Camden federal court.
“Paul Andrecola’s scheme profited on the fears of the American people during the height of concerns about transmission of COVID-19,” U.S. Attorney Sellinger said. “Our office is dedicated to protecting public health and prosecuting to the full extent of the law fraudsters who commit such egregious criminal acts.”
“The defendant committed a brazen fraud in the midst of a global pandemic and sought to profit from people’s fears of contracting the coronavirus,” Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) said. “This sentence shows that these crimes are serious and will be vigorously prosecuted by the Department of Justice.”
“Today’s sentence holds the defendant accountable for perpetrating the largest pandemic fraud case related to the sale of unregistered pesticides charged nationwide,” Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division in New Jersey said. “This case underscores EPA’s commitment to hold violators accountable for placing the public at risk by failing to ensure the integrity and safety of their products.”
According to documents filed in this case and statements made in court:
FIFRA regulates the distribution, sale, and use of pesticides to ensure that pesticides sold in the United States are safe, effective, and bear labeling containing true and accurate information. The EPA is responsible for regulating the manufacture, labeling, and distribution of all pesticides shipped or received in interstate commerce.
Under FIFRA, all pesticides must be registered with the EPA before the pesticide can be sold or distributed, and no person may distribute or sell a pesticide that has not been registered with the EPA. Before pesticide products can legally make claims that they can kill a particular pathogen, such as SARS-CoV-2 (coronavirus), the claim must be authorized by EPA based on a review of data. In March 2020, at the beginning of the global pandemic, the EPA created a list of EPA-registered products that it deemed to be effective against coronavirus, titled “List N: Disinfectants for Use Against SARS-CoV-2.” The EPA has continued to update this list since its creation.
Andrecola, who controls two companies and is employed by a third company, all based in in Mount Laurel, New Jersey, manufactured various disinfectant products, including liquids and wipes, under the brand name “GCLEAN.” GCLEAN products were unregistered pesticides under FIFRA and none of the products were on EPA’s List N. Andrecola placed another company’s EPA registration numbers on his company’s products and falsely marketed that his products were EPA-approved to kill coronavirus by creating numerous false documents to support his claims. Andrecola, or others at his behest, would provide this falsified documentation to potential customers representing that various sanitizer and wipe products in the names GCLEAN or GC200 were EPA-registered products List N to persuade them to purchase the unregistered pesticide products.
From March 2020 through May 2021, Andrecola used these fraudulent representations to make more than 150 sales of unregistered pesticides for a profit of more than $2.7 million. The purchasers of these unregistered pesticides included a police department in Delaware, a fire department in Virginia, a medical clinic in Georgia, a janitorial supply company in New York, a school district in Wisconsin, and numerous U.S. Government agencies, including the U.S. Marshal’s Service, Moody Air Force Base, the U.S. Department of Veterans Affairs, and the National Forest Service.
In addition to the prison term, Judge Kugler sentenced Andrecola to three years of supervised release and forfeiture of $2.74 million – the proceeds from the sale of the illegal product. The defendant is also responsible to make full restitution for all losses resulting from his commission of the charged crimes.
U.S. Attorney Sellinger credited special agents of the U.S. EPA Criminal Investigation Division, under the direction of Special Agent in Charge Tyler Amon with the investigation leading to today’s sentencing. He also thanks the U.S. EPA Office of the Inspector General Eastern Region under the direction of Special Agent in Charge Nicolas Evans; Homeland Security Investigations Newark Field Office under the direction of Special Agent in Charge Ricky J. Patel; Defense Criminal Investigative Service Northeast Field Office under the direction of Special Agent in Charge Patrick Hegarty; Naval Criminal Investigative Service Northeast Field Office under the direction of Special Agent in Charge Michael Wiest; and the Mount Laurel Police Department under the direction of Chief Stephen Riedener, for their assistance in this investigation.
The government is represented by Special Assistant U.S. Attorney Jason P. Garelick of the U.S. Attorney’s Economic Crimes Unit in Newark and Trial Attorneys Adam C. Cullman and Matthew D. Evans of the Environmental Crimes Section of the U.S. Department of Justice.
New York Man Charged with Possession with Intent to Distribute 95 Kilograms of Cocaine and FentanylRead the Press Release
NEWARK, N.J. – A New York man was arrested in East Rutherford, New Jersey for possessing with intent to distribute approximately 70 kilograms of cocaine and 25 kilograms of fentanyl, U.S. Attorney Philip R. Sellinger announced today.
Alejandro Nouel Lajud, 39, of Yonkers, New York, is charged by complaint with one count of possession with intent to distribute cocaine and fentanyl. He was arrested and had his initial court appearance on Dec. 5, 2022, before U.S. Magistrate Judge José R. Almonte and was detained.
According to documents filed in this case and statements made in court:
On Dec. 5, 2022, Lajud was stopped on the New Jersey Turnpike in East Rutherford while driving a tractor-trailer erratically. During a lawful search of the tractor-trailer, law enforcement officers discovered approximately 95 brick-shaped packages, each of which weighed approximately one kilogram. Approximately 70 of the packages contained suspected cocaine and approximately 25 contained suspected fentanyl.
The count of possession with intent to distribute cocaine and fentanyl carries a maximum potential penalty of life imprisonment and a mandatory minimum penalty of 10 years in prison and a maximum fine of $10 million.
U.S. Attorney Sellinger credited special agents of the New York Strike Force, under the direction of Drug Enforcement Administration Special Agent in Charge Frank A. Tarentino III, with the investigation leading to the charge.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.
The New York OCDETF Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; U.S. Customs and Border Protection; the U.S. Marshals Service; New York National Guard; U.S. Coast Guard; Port Washington Police Department; New York State Department of Corrections and Community Supervision; and the Suffolk County District Attorney’s Office.
The government is represented by Assistant U.S. Attorney Jenny Chung of the OCDETF/Narcotics 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.
Four People Indicted in $3.5 Million COVID-19 Testing Kickback ConspiracyRead the Press Release
NEWARK, N.J. – Four people have been charged for their roles in a kickback conspiracy involving COVID-19 testing that defrauded federal health insurance programs, U.S. Attorney Philip R. Sellinger announced today.
Abid Syed, 45, of East Hanover, New Jersey; Tariq Din, 55, of Saddle River, New Jersey; David Weathers, 59, of the Bronx, New York; and Muhammed Aurangzeb, 45, of Robbinsville, New Jersey, are each charged by indictment with one count of conspiracy to violate the federal Anti-Kickback Statute for their roles in a scheme to defraud Medicare and the Health Resources and Services Administration COVID-19 Uninsured Program. Weathers and Aurangzeb had their initial appearances via videoconference today before U.S. Magistrate Judge José R. Almonte. Aurangzeb was released on $100,000 unsecured bond and Weathers consented to detention. Syed and Din were charged by criminal complaint on April 11, 2022.
According to documents filed in this case and statements made in court:
From April 2021 to April 2022, Syed and Din operated and controlled Metpath Laboratories, a clinical laboratory located in Parsippany, New Jersey, that conducted testing to detect the presence of COVID-19 in samples obtained from patients. Through Metpath, Syed and Din paid kickbacks to “marketers” – including Weathers and Aurangzeb – for referrals of COVID-19 test samples to Metpath. Weathers and Aurangzeb were each paid $5 to $30 per referral.
The conspirators tried to make the payments appear to be for legitimate business expenses. For example, Syed altered the amount of the kickback payment to make it appear as if the marketer was a “consultant” for Metpath with legitimate business expenses. In another instance, Weathers’ company – MedtechCares Inc. – issued invoices to Metpath to make it appear as though the kickback payments from Metpath were legitimate business expenses, when in fact the payments were entirely for the referrals.
Metpath received more than $3.5 million in insurance reimbursements from federal health insurance programs for COVID-19 test samples referred by Weathers and Aurangzeb.
The charge of conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison. The maximum fine for each count is $250,000, or twice the gross profit or loss 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, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney DeNae M. Thomas of the Health Care Fraud 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.
Atlantic City Man Sentenced to 66 Months in Prison for Escape and Wire FraudRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced today to 66 months in prison for escaping from federal custody and engaging in a scheme to defraud women over telephone dating services, U.S. Attorney Philip R. Sellinger announced.
Patrick Giblin, 58, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of escape from the custody of the Attorney General and one count of wire fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On July 23, 2020, Giblin escaped from the custody of the Attorney General while traveling from a federal prison in Lewisburg, Pennsylvania, to a residential living facility in Newark, where he had been directed to serve the remainder of a federal prison sentence. At the time, Giblin was serving a sentence imposed in 2017 for traveling interstate and using an interstate facility to promote unlawful activity in connection with a scheme to defraud multiple women. Giblin’s 2017 sentence followed an earlier sentence of 115 months in prison for a 2007 wire fraud conviction for a similar fraud scheme. Members of the U.S. Marshals Service located and arrested Giblin in Atlantic City on March 10, 2021.
From April 2019 through March 2021 – including during the time period when he was a fugitive – Giblin posted advertisements and messages on telephone dating services. Giblin cultivated a rapport with the women he spoke to on these services, falsely claimed that he would be relocating to the woman’s geographic area, and falsely represented that he wished to pursue a committed, romantic relationship with each woman. Giblin received money from the women he spoke to on the dating services via interstate wire services such as Western Union and MoneyGram.
In addition to the prison term, Judge Kugler sentenced Giblin to three years of supervised release and ordered him to pay restitution of $23,428.
U.S. Attorney Sellinger credited members of the U.S. Marshals Service, District of New Jersey, under the direction of U.S. Marshal Juan Matos Jr., and special agents of the FBI, 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.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Two Passaic County Men Appear in Court on Armed Robbery ChargesRead the Press Release
NEWARK, N.J. – Two Passaic County, New Jersey, men arrested in connection with three armed robberies committed in August 2022 made their initial appearances in Newark federal court, U.S. Attorney Philip R. Sellinger announced today.
Carlos Diaz, 30, and Edward Porter, 30, both of Paterson, are each charged by criminal complaint with one count of conspiracy to obstruct commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Diaz and Porter appeared on Dec. 5, 2022, before U.S. Magistrate Judge José R. Almonte and were detained.
Diaz and Porter were arrested on Sept. 9, 2022, and have been in custody in Passaic County since that time; they were taken into federal custody today to face these charges.
According to documents filed in this case and statements made in court:
On the evening of Aug. 22, 2022, Diaz, Porter, and a third individual robbed a Passaic bodega of several thousand dollars while menacing customers with handguns and ordering them to lie on the ground. On the evening of Aug. 23, 2022, Diaz and Porter robbed a Passaic liquor store of several thousand dollars at gunpoint. While inside the store, Porter pistol-whipped a victim. Later that evening, Diaz and Porter committed a gunpoint robbery of a business in Paterson. While inside the store, Porter pushed one victim and wrestled with a different victim, dragging the victim to the floor while attempting to take the victim’s handbag.
The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be imposed consecutive to any other sentence imposed. Conspiracy to obstruct commerce by robbery carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited 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; the Passaic County Sheriff’s Office, under the direction of Sheriff Richard Berdnik; the Paterson Police Department, under the direction of Acting Police Chief Engelbert Ribeiro; and the Passaic Police Department, under the direction of Police Chief Luis A. Guzman, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Garrett Schuman of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Monmouth County Man Admits Producing Child PornographyRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted producing multiple videos depicting him sexually assaulting a minor, U.S. Attorney Philip R. Sellinger announced.
Christian Importuna, 27, of Englishtown, New Jersey, pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to one count of an indictment charging him with production of child pornography.
According to documents filed in this case and statements made in court:
In March 2020, Importuna produced at least two videos that showed him sexually assaulting a pre-pubescent female child. The videos came to the attention of law enforcement on March 24, 2020, when Importuna attempted to trade images of child pornography with an undercover law enforcement official on an internet-based application. Law enforcement officials initially linked the videos to Importuna through business records indicating that they were sent from his Englishtown residence. The investigation further linked Importuna to the production of the images through physical identifiers that were visible in the subject videos.
The charge of production of child pornography, carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. Sentencing is scheduled for April 17, 2023.
U.S. Attorney Sellinger credited special agents the FBI Newark Child Exploitation and Human Trafficking Task force, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s guilty plea.
The government is represented by Assistant United States Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Carol Dominguez Esq., Assistant Federal Public Defender, Newark
Camden Registered Sex Offender Charged with Sex Trafficking MinorsRead the Press Release
CAMDEN, N.J. – A Camden man is scheduled to appear in court today on multiple charges of sex trafficking minors, U.S. Attorney Philip R. Sellinger announced.
Semaj A. Gilmore, 32, is charged by superseding indictment with three count of sex trafficking of a minor and three counts of committing a sex offense as a registered sex offender. He is scheduled to appear today in Camden federal court before U.S. Magistrate Judge Matthew J. Skahill. Gilmore has been detained since initially being charged by a criminal complaint in April 2021.
According to documents filed in this case and statements made in court:
In April 2021, investigators learned that a missing juvenile from Pennsylvania was being advertised for sexually illicit activities on a website that is often used to advertise acts of prostitution. On April 13, 2021, an undercover agent contacted a phone number associated with the advertisement. The undercover agent and the user of the phone number, later revealed to be Gilmore, exchanged a series of messages that ultimately led to the undercover agent meeting the victim in a motel room in or around Mount Laurel, New Jersey, purportedly to engage in sexual activities in exchange for cash. Gilmore instructed the undercover agent to “get condoms” and to confirm that he was not “a cop.” When uniformed officers entered the motel room, Gilmore, who had been waiting in a car in the adjacent parking lot, fled. Officers stopped Gilmore’s car and recovered the phone used to arrange the meeting between the victim and the undercover agent.
From September 2020 to April 2021, Gilmore trafficked two other victims to engage in commercial sex acts in addition to the victim he advertised on April 13, 2021. During that time period, Gilmore had been required to register as a sex offender as a result of a prior conviction.
Each count of sex trafficking of a minor is punishable by a mandatory minimum penalty of 10 years in prison, a maximum of life in prison and a fine of up to $250,000. Each count of committing a sex offense as a registered sex offender is punishable by a mandatory penalty of 10 years in prison, which must run consecutively to any other term of imprisonment, and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, with the investigation leading to the charges. He also thanked members of the Mount Laurel Police Department and the Burlington County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the superseding indictment are merely accusations, and Gilmore is presumed innocent unless and until proven guilty.
Defense counsel: Troy Archie Esq., Cinnaminson, New Jersey
Camden County Man Sentenced to 26 Months in Prison for Tax EvasionRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 26 months in prison for evading more than $1 million in federal taxes, U.S. Attorney Philip Sellinger announced.
John Ryan, 63, of Cherry Hill, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of tax evasion.
Judge Rodriguez imposed the sentence today in Camden federal court.According to documents filed in this case and statements made in court:
Ryan was working as an independent financial planner, helping to broker sales between clients and various financial businesses. One of these businesses engaged Ryan as a financial contractor to receive client funds on behalf of the business, and to operate and control one of its financial accounts. Ryan attempted to evade payment of his federal income taxes by converting the business and client funds in that account to his own personal income. By using the business account funds to satisfy expenses without the involvement of his personal bank accounts, Ryan was able to conceal the fact that he was withdrawing client funds and drawing checks on the business account in order to convert those funds to personal income. Ryan then purposely failed to report as income the cash he skimmed from the account, on which he was required to pay federal income taxes.
In addition to the prison term, Judge Rodriguez sentenced Ryan to two years of supervised release and ordered him to pay $1,058,859 in restitution to the government.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, and special agents of the FBI with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Lindsey R. Harteis of the U.S. Attorney’s Office in Camden, New Jersey.
Defense counsel: Joseph Marrone Esq. Cherry Hill, New Jersey
California Man Charged with Laundering Money Obtained from Internet-Related FraudRead the Press Release
NEWARK, N.J. – A California man has been indicted for laundering money obtained from business email compromises, U.S. Attorney Philip R. Sellinger announced today.
Charles Singleton, 63, of Los Angeles, California, is charged by indictment with one count of money laundering conspiracy and three substantive money laundering counts. Singleton was arrested yesterday and was scheduled to appear on Dec. 5, 2022, before U.S. Magistrate Judge Karen L. Stevenson in Los Angeles federal court.
According to documents filed in this case and statements made in court:
From September 2018 to August 2020, Singleton worked with conspirators to launder money obtained through business email compromises. A business email compromise is a method of wire fraud often targeting businesses or individuals working on business transactions involving high-dollar wire transactions. The fraud is carried out by compromising, hacking, or “spoofing” legitimate email accounts through social engineering or computer intrusion techniques to cause employees of a target company, or other individuals involved in legitimate business transactions, to conduct unauthorized transfers of funds, most often to accounts controlled by the fraud perpetrators.
Singleton opened several business bank accounts in the names of companies he controlled and received proceeds of wire fraud in those accounts. Singleton and his conspirators then withdrew and transferred money from various bank accounts and shared among themselves the account information of bank accounts. Singleton also executed at least one fraudulent contract with a conspirator for a wire of $70,000. Law enforcement officials estimate that Singleton received at least $1.1 million in fraudulent proceeds.
Each of the money laundering charges carries a maximum term of 20 years in prison and a fine of up to $500,000, or twice the value of the funds involved in the transfer, whichever is greater.
U.S. Attorney Sellinger credited special agents of the FBI, Woodland Park Office, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney 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.
Opioid Abuse Treatment Facility to Pay $3.15 Million for Kickback Violations, Obstructing Federal Audit, and False Claims Submitted to Government Insurance ProgramsRead the Press Release
CAMDEN, N.J. – An opioid abuse treatment facility in Camden will pay a total of $3.15 million to resolve criminal and civil claims that it caused kickbacks, obstructed a federal audit, and fraudulently billed Medicaid, Attorney for the United States Vikas Khanna announced today.
Camden Treatment Associates LLC (CTA) agreed to pay $1.5 million in criminal penalties to resolve allegations that it violated the federal Anti-Kickback Statute and obstructed a Medicaid audit. As part of the resolution, a criminal information was filed on December 2, 2022 in Camden federal court charging CTA with this conduct. CTA entered into a three-year deferred prosecution agreement (DPA) that requires it to abide by certain measures to avoid conviction. CTA also entered into a civil settlement agreement to pay $1.65 million to the United States to resolve claims that it violated the federal False Claims Act by submitting fraudulent claims to Medicaid.
Criminal Resolution
According to CTA’s admissions in the DPA:
Between 2009 and 2015, CTA and a second company were owned and managed by related parties. CTA had a kickback relationship with the second company in which CTA ordered all of its methadone mixing services from the second company and paid it more than $125,300 for those services. This arrangement resulted in kickbacks being paid because the second company paid the profits it made on CTA’s orders of methadone mixing to the related parties who owned and managed both companies. As a result, CTA was induced to order services from the second company and to have CTA patients receive treatment using methadone mixed only by that company. CTA received more than $2.78 million from Medicaid for methadone administration services.
In a separate criminal scheme, CTA obstructed a Medicaid contractor’s 2016 audit of CTA’s claims for payment. CTA submitted falsified materials to the auditor purporting to justify its claims to Medicaid. Specifically, CTA added patient and counselor signatures to patient files, altered names of counselors listed as providing services, added credentials for staff listed as performing services, added sign-off dates for services and, in some instances, submitted entire patient notes to files to justify services rendered. Metadata from CTA’s electronic patient software program revealed that CTA employed these fraudulent means.
Civil Resolution
The settlement resolves the civil allegations that CTA submitted false claims to Medicaid stemming from the kickback relationship with the methadone mixing company described above. The settlement further resolves allegations that between 2013 and 2016, CTA failed to comply with certain federal and state regulations governing substance abuse treatment facilities. Specifically, CTA allegedly failed to maintain proper supervision and staffing at its facility. Instead, CTA typically used non-credentialed “counselor interns” to perform services at the facility and did not have sufficient licensed staff to properly supervise the interns. Consequently, CTA’s claims submitted to Medicaid for payment, which were contingent on CTA’s certified compliance with these regulations, were false.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Compliance Obligations
As part of the DPA, CTA is required to adopt several compliance measures, including:
- have an effective compliance program, including enhanced compliance policies and annual compliance training regarding federal health care laws;
- retain an independent health care compliance consulting firm specializing in substance abuse disorder facilities to conduct a comprehensive review of its compliance program and to make improvement recommendations;
- create an independent board of advisors to oversee company compliance relating to federal health care laws;
- have a chief compliance officer to oversee compliance-related functions at the company;
- annually certify that its compliance program is effective; and
- provide written reports to the United States every six months over a three-year period detailing its progress in developing and enhancing its compliance program.
Attorney for the United States Khanna credited agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Acting Special Agent in Charge Susan Frisco, with the investigation and prosecution of the case. He also thanked the FBI Health Care Fraud Unit Data Analysis Response Team at FBI Headquarters in Washington, D.C., under the direction of Special Agent Greg Heeb; IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, for their assistance with the case.
The criminal case was prosecuted by Acting Chief of the Health Care Fraud Unit Christina O. Hud, Chief of the Opioid Abuse Prevention and Enforcement Unit R. David Walk, Jr., and Assistant U.S. Attorney Diana V. Carrig of the Criminal Division in Camden. The civil case was prosecuted by Assistant U.S. Attorney Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit and Assistant U.S. Attorney Andrew A. Caffrey III of the District of Massachusetts and formerly of the District of New Jersey.
Hudson County Real Estate Investor Admits Multi-Year Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, real estate investor has admitted conspiring to orchestrate a fraudulent home equity line of credit scheme that led to over $400,000 in losses, U.S. Attorney Philip R. Sellinger announced today.
Anthony Garvin, 52, of Jersey City, New Jersey, pleaded guilty by videoconference on Dec. 2, 2022, before U.S. District Judge Katharine S. Hayden in Newark federal court to one count of conspiracy to commit bank fraud and four counts of bank fraud.
According to documents filed in this case and statements made in court:
Between 2011 and 2014, Garvin orchestrated a scheme to defraud banks by conspiring with others to fraudulently obtain multiple home equity lines of credit, known as HELOCs, on real estate that Garvin owned. To hide his fraud from lenders, Garvin and his conspirators prepared and submitted loan applications that contained lies and fake supporting documents, including fake pay stubs, W-2 forms, tax returns, bank account statements, and deeds. Garvin split his fraud proceeds with his conspirators and defaulted on all of the loans. Garvin’s scheme ultimately resulted in over $400,000 in loses to the lenders.
The count of bank fraud conspiracy and each count of bank fraud carries a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross gain to the defendants or twice the gross loss to others, whichever is greatest. Sentencing is scheduled for April 11, 2023.
Two conspirators previously pleaded guilty and are awaiting sentencing.
U.S. Attorney Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Blake Coppotelli and Anthony Torntore of the District of New Jersey.
Union County Man Admits Committing Multiple Armed Robberies and Weapons Offenses Across Northern New JerseyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man admitted participating in a conspiracy to commit multiple armed robberies from August 2018 to February 2019, U.S. Attorney Philip R. Sellinger announced today.
Jaime Fontanez, 45, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler on Nov. 30, 2022, to eight counts of an indictment charging him with one count of conspiracy to commit Hobbs Act robbery, five substantive counts of Hobbs Act robbery, and two counts of brandishing a firearm during the commission of a crime of violence.
According to documents filed in this case and statements made in court:
From August 2018 through February 2019, Fontanez conspired with a number of other individuals to commit 13 armed robberies in Bronx and New York counties in New York and Union, Middlesex, and Essex counties in New Jersey. The conspirators targeted convenience and liquor stores. After entering the business, one of the conspirators pointed a firearm at the store clerk while another conspirator went behind the counter to steal money from the cash register. On one occasion, one of the conspirators discharged a firearm into the liquor store.
The Hobbs Act charges each carry a maximum potential penalty of 20 years in prison. The brandishing of a firearm during a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a potential $250,000 fine. Sentencing is scheduled for April 26, 2023.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea. He also thanked the Elizabeth Police Department, the Rahway Police Department, the Woodbridge Police Department, the Bloomfield Police Department, the Linden Police Department, the Kenilworth Police Department, the Union Police Department, and the New Jersey States Police for their assistance.
The government is represented by Assistant U.S. Attorneys Tracey Agnew of the U.S. Attorney’s Office in Trenton and Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Pennsylvania Man Charged with Sexual Exploitation of Child and Attempted Enticement of MinorRead the Press Release
NEWARK, N.J. – A Pennsylvania man was arrested for sexually exploiting and attempting to entice a minor victim, U.S. Attorney Philip R. Sellinger announced today.
Diego Ramos, 19, of Blakeslee, Pennsylvania, is charged by complaint with one count of sexual exploitation of a child and one count of attempted enticement of a minor. He appeared on Nov. 30, 2022, before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was detained.
According to documents filed in this case:
From May 29, 2021 through Nov. 29, 2022, Ramos used multiple Instagram accounts and other social media and messaging platforms to successfully coerce a minor to send sexually explicit images and videos to Ramos. He threatened the victim with public exposure if the victim did not send additional sexually explicit images and videos requested by Ramos, and caused the victim to pay Ramos $12,982 to stop him from publicly releasing the images.
The count of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison; the count of attempted enticement of a minor carries a mandatory minimum penalty of 10 years in prison. Both counts are punishable by a maximum of life in prison.
U.S. Attorney Sellinger credited special agents of the FBI the Newark Child Exploitation and Human Trafficking Task force, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s charges. He also thanked the FBI-Philadelphia, the Regional Computer Forensics Laboratory, the Mount Pocono, Pennsylvania, Police Department, and the Perth Amboy, New Jersey, Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Jenny Chung of the OCDETF/Narcotics 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.
New York Man Sentenced to Three Years in Prison for Conspiring to Traffic in Stolen Goods Worth More Than $1 MillionRead the Press Release
NEWARK, N.J. – A Staten Island, New York, man who conspired with others to traffic in stolen goods and merchandise was sentenced today to 36 months in prison, U.S. Attorney Philip R. Sellinger announced.
Razel Romhein, 49, of Staten Island, New York, previously pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to transport stolen goods. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2011 through May 2013, Romhein and others engaged in a conspiracy to traffic in stolen health and beauty aid products and over-the-counter pharmaceuticals. These products were stolen by “boosters” from various places, including retail stores located in New Jersey, and then sold through a series of distributors at a significantly discounted price.
Romhein operated a warehouse facility in Staten Island, New York that functioned as a “cleaning station” for the stolen products. He arranged for the delivery of stolen merchandise and he and others removed security packaging and other labels from the products that identified the retail stores from which the products were stolen. The products, with an aggregate value of at least approximately $1 million, were then sold for a profit.
In addition to the prison term, Judge McNulty sentenced Romhein to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, New York Field Office, under the direction of Special Agent in Charge Ivan J. Arvelo; inspectors of U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; special agents of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the U.S. Department of Agriculture Office of the Inspector General under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore, of the U.S. Attorney’s Office’s Cybercrime Unit.
Somerset County Man Sentenced to 46 Months in Prison for $1.6 Million COVID-19 Loan Fraud SchemeRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 46 months in prison for fraudulently obtaining $1.6 Million in federal Paycheck Protection Program (PPP) and Economic Insurance Disaster Loan (EIDL) funds, U.S. Attorney Philip R. Sellinger announced.
Jordan C. Larkins, 32, of Somerset, New Jersey, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of wire fraud, one count of bank fraud, and one count of money laundering. Judge Quraishi imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From May 2020 through July 2020, Larkins perpetrated a scheme to defraud PPP lenders and the SBA by submitting three fraudulent PPP loan applications to three different lenders and 11 fraudulent EIDL applications to SBA. The fraudulent applications resulted in a total loss of $1.64 million to the lenders and the SBA. Larkins misused the funds by, among other things, transferring funds to a foreign bank and paying various personal expenses.
In addition to the prison term, Judge Quraishi sentence Larkins to three years of supervised release and order restitution in the amount $ 1.64 million.
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; special agents of the IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; and special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Two Owners of New Jersey Pharmaceutical Marketing Company Admit Role in $38 Million Compounding Fraud SchemeRead the Press Release
NEWARK, N.J. – Two owners of a New Jersey pharmaceutical marketing company admitted their roles in a $38 million compounded medication health care fraud scheme, U.S. Attorney Philip R. Sellinger announced.
Samantha Zaretzky, 42, of Wayne, New Jersey, and Lee Nichols, 43, of Fair Haven, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to separate informations charging each with one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Through their company, Synergy Medical LLC, Zaretzky and Nichols exploited the manner in which health insurance plans processed, screened, and paid for customized drugs known as “compounded medications,” causing tens of millions of dollars of losses to several health insurance plans over two years. Zaretzky and Nichols pocketed millions of dollars through this compounding fraud scheme.
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a medical professional determines that an FDA-approved medication does not meet the health needs of a particular patient.
From April 2014 to June 2016, Zaretzky and Nichols used Synergy as a platform through which they could market prescription-based compounded medications without regard to whether a health insurance beneficiary actually needed such a medication or whether an FDA-approved medication would have been appropriate and sufficient.
Zaretzky and Nichols and their conspirators determined which combination of compounded ingredients was most financially lucrative. Through their sales representatives, they recruited health insurance beneficiaries who were willing to obtain these expensive, but medically unnecessary, compounded medications before a medical professional had evaluated the beneficiaries’ unique and individualized need for the medications. After convincing the beneficiaries to obtain a pre-formulated compounded medication, in many cases, Zaretzky, Nichols, and their sales representatives steered beneficiaries to a medical professional with whom the beneficiaries had no prior doctor-patient relationship, such as a telemedicine company. Although the beneficiaries did not have a prior relationship with the telemedicine doctors, Zaretzky and Nichols paid that company for consulting with the beneficiaries. On at least one occasion, Zaretzky and Nichols paid an advanced practice nurse, whose license was inactive, to write prescriptions in exchange for cash. Once those medical professionals issued the prescriptions, Zaretzky and Nichols ensured that the prescriptions were steered to compounding pharmacies that paid them a kickback.
The health care fraud conspiracy charge carries a statutory maximum prison sentence of 10 years and a fine of $250,000 or twice the gross gain or loss from the scheme, whichever is greatest. Sentencing is scheduled for April 23, 2023.
U.S. Attorney Sellinger credited special agents and an analyst of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney George L. Brandley of the Health Care Fraud Unit in Newark.
Essex County Felon Sentenced to 93 Months in Prison for Possessing Two Firearms, Drug Trafficking, and Possession of Firearm in Furtherance of Drug TraffickingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 93 months in prison on weapons and drug charges, U.S. Attorney Philip R. Sellinger announced.
Teriek Edwards, 44, of Newark, was previously convicted on two counts of possession of firearms and ammunition by a convicted felon; one count of possession with intent to distribute heroin, cocaine, and oxycodone; and one count of possession of a firearm in furtherance of his possession with intent to distribute heroin, cocaine, and oxycodone, following a six-day trial before U.S. District Judge John Michael Vazquez, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
On May 25, 2018, members of the East Orange Police Department attempted to stop Edwards as part of an ongoing investigation. Upon being approached by law enforcement officers, Edwards fled, and a struggle ensued. Edwards was arrested and law enforcement officers recovered heroin, cocaine, oxycodone, and other illegal narcotics from his pants pockets, as well as a 9mm firearm loaded with 12 rounds of ammunition. A federal complaint was filed against Edwards and a federal arrest warrant was issued.
On Aug. 22, 2018, the U.S. Marshals Service Fugitive Task Force arrested Edwards on that federal arrest warrant, at which time they recovered a second handgun – a 9mm firearm loaded with eight rounds of ammunition.
In addition to the prison term, Judge Vazquez sentenced Edwards to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Bryan Miller; members of East Orange Police Department, under the direction of Chief Phyllis Bindi; members of the Newark Police Department, under the direction of Director Fritz Fragé; deputy marshals and task force officers with the U.S. Marshals Service in the District of New Jersey, under the direction of U.S. Marshal Juan Mattos Jr.; and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Tracey Agnew and Samantha C. Fasanello of the U.S. Attorney’s Office Criminal Division.
Camden County Woman Sentenced to 159 Months in Prison for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, woman was sentenced today to 159 months in prison for her role in a scheme to obtain money through fraudulently obtained refund checks issued by the U.S. Treasury, U.S. Attorney Philip R. Sellinger announced.
Awilda Henriquez, 36, of Clementon, New Jersey, was convicted on Dec. 9, 2021, of one count of conspiracy to defraud the United States government and steal United States mail, 13 counts of theft of government money, and 13 counts of aggravated identity theft, following a 10-day trial before Senior U.S. District Judge Robert B. Kugler. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. The investigation revealed that for the 2013 tax year more than 3,300 SIRF tax returns were filed using the names and Social Security numbers of residents of Puerto Rico and the refunds were directed to be mailed to a small section of Pennsauken, New Jersey.
Henriquez and her conspirators recruited mail carriers from the U.S. Postal Service as part of the scheme to steal the tax refund checks from the mail. The mail carriers were paid for every U.S Treasury check that was stolen. Henriquez and her conspirators recruited and paid “check couriers” to cash the tax refund checks in a variety of ways, including at check cashing businesses in New Jersey, where Henriquez paid the tellers to also participate in the scheme. The check couriers presented fraudulent identifications at the check cashing businesses matching the names on the tax refund checks in order to cash the checks, which the tellers cashed because they were paid by Henriquez to do so. In total, the scheme caused $565,091 in losses to the U.S. Treasury.
In addition to the prison term, Judge Kugler sentenced Henriquez to three years of supervised release and ordered her to pay restitution of $565,091.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark and Special Agent in Charge Yury Kruty in Philadelphia; and special agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s sentencing. He also thanked the U.S. Postal Inspection Service for its assistance.
The government is represented by Jason M. Richardson, Attorney in Charge of the Camden Office, and Assistant U.S. Attorney Christina O. Hud of the Criminal Division.
Real Estate Developer and Attorney Both Admit to Multimillion-Dollar Mortgage Fraud SchemeRead the Press Release
TRENTON, N.J. – A New Jersey real estate developer and attorney each admitted today to conspiring to orchestrate a mortgage fraud scheme that led to over $3.5 million in losses, U.S. Attorney Philip R. Sellinger announced.
Victor Santos, aka Vitor Santos, 63, of Watchung, New Jersey, and Fausto Simoes, 69, of Millington, New Jersey, each pleaded guilty by videoconference to Count One of an indictment charging them with conspiracy to commit bank fraud before U.S. District Judge Michael A. Shipp in Trenton federal court.
According to documents filed in this case and statements made in court:
From September 2007 through November 2008, Santos, a real estate developer, and Simoes, an attorney, conspired with each other and others to fraudulently obtain mortgage loans with a total value of more than $4 million. Santos orchestrated the scheme to recruit fake, or “straw” buyers to purchase 12 properties in Newark. Using the identity and credit of these straw buyers allowed Santos, Simoes, and their conspirators to conceal their identities from the lender as the actual purchasers of the properties. Santos and others induced people to be straw buyers by agreeing to pay each straw buyer at least $5,000, secure tenants to lease the purchased properties, and cover costs associated with the property, including fees associated with the real estate purchases and the mortgage payments on each of the fraudulently obtained mortgages. Santos, Simoes, and others also caused the submission of fraudulent and false loan applications and documents to the mortgage lender.
Simoes conducted the closings of 10 of the fraudulent transactions and helped perpetuate the fraud by falsely reporting that the straw buyers were providing the cash required at closing when, in fact, Simoes received those funds from a shell company controlled by Santos and another conspirator. For several transactions, Simoes also failed to disclose to the lender that the shell company controlled by Santos and another conspirator would receive a substantial payout from the loan proceeds.
Shortly after the properties were acquired, Santos and his conspirators broke their promises to pay the mortgages. The straw buyers, in whose names the mortgages were obtained and thus were responsible for the payments, did not have enough money to pay the fraudulently obtained mortgages and defaulted, which caused the lender, Fannie Mae, and insurers to lose more than $3.5 million.
Conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross gain to the defendants or twice the gross loss to others whichever is greatest. Sentencing for Santos is scheduled for April 12, 2023, and for Simoes, April 13, 2023.
Two other conspirators previously pleaded guilty and are awaiting sentencing.
U.S. Attorney Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty pleas.
The government is represented by Special Assistant U.S. Attorneys Charlie Divine and Kevin DiGregory of the Federal Housing Finance Agency, Office of Inspector General, assigned to U.S. Attorney’s Office’s Economic Crimes Unit in Newark.
Morris County Man Charged with Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was arrested for distributing videos and images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
William Harbeson, 82, of Boonton, New Jersey, is charged by complaint with one count of distribution of child pornography. He appeared before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court on Nov. 22, 2022, and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
From May 2022 to September 2022, Harbeson distributed videos of child sexual abuse via a publicly available online peer-to-peer (P2P) file-sharing program. An undercover law enforcement officer conducted online sessions using the P2P program, during which a user shared hundreds of videos and images of child sexual abuse from an IP address traced to Harbeson’s address. Subsequent to a lawful search of his residence, law enforcement officers recovered at least 38 videos and 351 images of child sexual abuse on Harbeson’s hard drive.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to the charges.
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 complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Somerset County Man Admits $850,000 Paycheck Protection Program Fraud SchemeRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man admitted fraudulently obtaining over $850,000 in federal Paycheck Protection Program (PPP) loans U.S. Attorney Philip R. Sellinger, announced today.
Butherde Darius, 50, of North Plainfield, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court on Nov. 21, 2022, to an information charging him with one count of conspiracy to commit bank fraud, and one count of money laundering.
According to documents filed in this case and statements made in court:
Darius conspired with at least one individual to submit a fraudulent PPP loan application to a lender on behalf of a purported business that he controlled, obtaining over $850,000. He engaged in various financial transactions with the fraudulently obtained loan proceeds. The application Darius and his conspirator submitted contained fraudulent representations to the lender – a Federal Home Loan Bank member – and the SBA, including bogus federal tax documents purportedly from the IRS. Darius also fabricated the existence of employees and wages paid through the purported businesses. According to IRS records, however, none of the purported tax documents that were submitted in support of the loan applications were ever filed with the IRS. Darius loan application for his purported business was approved for approximately $852,000 in federal COVID-19 emergency relief funds meant for distressed small businesses. Darius then used a portion of the proceeds for various personal expenses.
The count of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. The count of money laundering carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for March 6, 2023.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L Tomlins; special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Acting Special Agent in Charge Stephen Donnelly; special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys David E. Dauenheimer and Katherine M. Romano of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Philadelphia Man Sentenced to 10 Years in Prison for Methamphetamine ConspiracyRead the Press Release
CAMDEN, N.J. – A Philadelphia man was sentenced to 120 months in prison for conspiring to distribute 50 grams or more of methamphetamine, U.S. Attorney Philip R Sellinger announced today.
Nasir White, 30, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of knowingly and intentionally conspiring to distribute and to possess with intent to distribute 50 grams or more of methamphetamine. Judge Kugler imposed the sentence on Nov. 21, 2022, in Camden federal court.
According to documents filed in this case and statements made in court:
On Oct. 9, 2019, White and Shawn McGuriman were arrested with 204 grams of methamphetamine, which they planned to sell to another person. McGuriman previously pleaded guilty to his role in the conspiracy and was sentenced in August 2021 to 10 years in prison.
In addition to the prison term, Judge Kugler sentenced White to five years of supervised release.
U.S. Attorney Philip R. Sellinger credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.
The government is represented by Deputy U.S. Attorney Andrew Carey of the U.S. Attorney’s Office.
New Jersey Man Sentenced to 57 Months in Prison for Threatening Federal Law Enforcement OfficersRead the Press Release
NEWARK, N.J. – A New Jersey man was sentenced to 57 months in prison for threatening to assault and murder federal law enforcement officers, U.S. Attorney Philip R. Sellinger announced today.
Frank Monte, 51, of New Jersey, was previously convicted following a one-week trial before U.S. District Judge John Michael Vazquez of three counts of threatening a federal law enforcement officer, and of two counts of transmitting threats in interstate commerce. Judge Vazquez imposed the sentence on Nov. 21, 2022, in Newark federal court.
According to documents filed in the case and the evidence at trial:
On July 21, 2019, Monte repeatedly called the emergency line of the U.S. Department of Veterans Affairs (VA) Police at the VA Lyons hospital campus. During one of those calls, Monte threatened to “shoot up” a VA Police officer. On Oct. 15, 2019, Monte called the office of a U.S. Congressman and spoke with a staff member. During that call, Monte threatened that if he ever saw a particular special agent of the U.S. Secret Service in New Jersey, Monte would assault him. On Oct. 18, 2019, Monte called a special agent of the U.S. Capitol Police. During that call, Monte once again threatened to assault the same special agent of the U.S. Secret Service.
In addition to the prison term, Judge Vazquez sentenced Monte to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Jose Riera, with the investigation leading to today’s sentencing. He also thanked the U.S. Department of Veterans Affairs Police, VA New Jersey Health Care System, under the direction of Acting Chief Minelli Torres-Sukola; members of the U.S. Capitol Police, Threat Assessment Section, under the direction of Assistant Special Agent in Charge Chad Beckett; members of the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr.; and members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore and Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
Mercer County Man Sentenced to 12 Years in Prison for Participating in Armed Robbery Spree Spanning Multiple Counties in New Jersey and PennsylvaniaRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 144 months in prison for his role in a string of armed robberies of businesses in New Jersey and Pennsylvania in May and June of 2019, U.S. Attorney Philip R. Sellinger announced.
Omar Feliciano-Estremera, 45, of Trenton, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to a five-count information charging him with one count of conspiracy to commit Hobbs Act robbery, three substantive counts of Hobbs Act robbery, and one count of aiding and abetting the possession of a firearm which was discharged during a crime of violence. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Feliciano and his conspirator, who is now deceased, committed a string of armed robberies in May and June of 2019 of businesses located in Mercer County, New Jersey, Union County, New Jersey, and Bucks County, Pennsylvania. The conspirator entered the businesses, brandished a handgun, and demanded money from the store clerks working the register. After stealing the money, the conspirator fled the scene with the assistance of Feliciano, who acted as the getaway driver. While fleeing the scene of one of the robberies, in Union County, New Jersey, the conspirator fired a handgun at passing witnesses, shortly before being picked up by Feliciano. Feliciano admitted to conspiring to commit eight robberies and aiding and abetting three robberies, including the Union County robbery at which a firearm was discharged.
In addition to the prison term, Judge Sheridan sentenced Feliciano to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked officers of the Hamilton Township, Trenton, Rahway, Morrisville, Bristol Township, and Lawrence Township Police Departments for their assistance.
The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office Criminal Division in Trenton.
Camden County Resident Sentenced to 41 Months in Prison for Defrauding COVID-19 Relief Programs and Illegally Possessing FirearmRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, resident was sentenced to 41 months in prison for his role in fraudulently obtaining Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) benefits, fraudulently obtaining unemployment benefits, and illegally possessing a firearm, U.S. Attorney Philip R. Sellinger announced today.
Stephen Bennett, 46, of Berlin, New Jersey, previously pleaded guilty before U.S. District Judge Karen M. Williams to an information charging him with one count of bank fraud conspiracy, one count of wire fraud, and one count of being a felon in possession of a firearm. Judge Williams imposed the sentence on Nov. 21, 2022, in Camden federal court.
According to documents filed in this case and statements made in court:
In 2020, Bennett conspired with Rhonda Thomas, 38, of Sicklerville, New Jersey, to submit one PPP application and one EIDL application for a company controlled by Bennett. The applications stated that the company had 16 employees, gross revenues of $1.73 million, and an average monthly payroll of $144,000, when in fact the company had no employees, revenue, or payroll. Bennett and Thomas also submitted forged tax forms and altered bank statements as part of the PPP loan application. Based on the misrepresentations, the loans were approved in the amount of $510,000. Bennett paid kickbacks of over $150,000 to Thomas and used the rest of the fraudulently obtained PPP and EIDL loan proceeds to pay for personal expenses.
Also in 2020, Bennett defrauded the Pennsylvania Department of Labor by submitting 74 unemployment insurance claims under a temporary federal unemployment insurance program that provided benefits for individuals who were not eligible for other types of unemployment, such those who were self-employed, independent contractors or gig economy workers. Bennett collected personal identification information (PII), including names, residential addresses, and Social Security numbers, of other individuals and used the PII to submit fraudulent applications for unemployment benefits, resulting in the payment of $425,339 in benefits to Bennett.
In May 2021, law enforcement officials executing a search warrant at Bennett’s home found a .9 millimeter semiautomatic pistol with no serial number (commonly referred to as a “ghost gun”) and a magazine loaded with 16 rounds of ammunition. Bennett is a previously convicted felon.
In addition to the prison term, Judge Williams sentenced Bennett to five years of supervised release, fined him $15,000, and ordered him to pay restitution of $942,141.
Thomas pleaded pleaded guilty before Judge Williams on June 28, 2022, to an information charging her with one count of bank fraud conspiracy and one count of money laundering and is scheduled to be sentenced on Dec. 16, 2022.
U.S. Attorney Sellinger credited special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office, special agents of the Social Security Administration, Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman and Jason M. Richardson, Attorney in Charge of the U.S. Attorney’s Office’s Criminal Division in Camden.
Former Political Staffer Admits Role in Scheme to Defraud Campaigns and Political Action CommitteesRead the Press Release
NEWARK, N.J. – A Union County man who previously served as a staff member in the New Jersey Senate today admitted his role in a conspiracy to falsely inflate the invoices that a political consultant submitted to various campaigns, political action committees, and IRS 501(c)(4) organizations, U.S. Attorney Philip R. Sellinger announced.
Antonio Teixeira, 43, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit wire fraud and one count of tax evasion.
According to documents filed in this case and statements made in court:
From 2014 to 2018, Teixeira conspired with Sean Caddle, and Caddle’s political consulting firms, to defraud various campaigns, political action committees, and 501(c)(4) organizations of $107,800. Teixeira then failed to report this illicit income on tax forms that he filed with the IRS during those same years.
Caddle was hired by a former New Jersey state senator to create the PACs and 501(c)(4)s so that they could raise and spend money to advocate on a variety of issues, including supporting particular candidates in local races around New Jersey. Teixeira served as the senator’s chief of staff and wielded influence over the consultants that the campaigns and organizations hired and the budgets that each of these organizations would receive.
Teixeira and Caddle conspired to falsely inflate the invoices that Caddle’s consulting firms submitted to the campaigns, PACs and 501(c)(4)s with phony campaign-related expenditures. Caddle and Teixeira were fraudulently padding the invoices because they agreed to split the difference between Caddle’s actual campaign expenditures and the overage charged to the organizations. Caddle paid a portion of Teixeira’s share to him in cash and funneled the remainder to Teixeira via checks made to out to Teixeira’s relatives in order to conceal that campaign money was being kicked back to Teixeira. In total, Teixeira received more than $100,000. Although Teixeira pocketed these fraudulent proceeds and used the money for personal expenses, he never reported the money on the tax forms that he filed with the IRS during the course of the scheme.
The wire fraud conspiracy charge carries a statutory maximum prison sentence of 20 years, while the tax evasion charge carries a statutory maximum of five years in prison. Both charges are also punishable by a fine of $250,000 or twice the gross gain or loss from the scheme, whichever is greatest. Sentencing is scheduled for March 27, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean Farrell, Chief of the U.S. Attorney’s Office Cybercrime Unit, and Executive Assistant U.S. Attorney Lee M. Cortes Jr.
Two Somerset County Attorneys Indicted for Visa FraudRead the Press Release
TRENTON, N.J. – Two Somerset County, New Jersey, attorneys were indicted today for making false statements under penalty of perjury in visa applications, U.S. Attorney Philip R. Sellinger announced.
Steven G. Thomas, 52, and Maria Thomas, 81, both of Montgomery Township, New Jersey, were indicted for conspiring to prepare and file false visa applications on behalf of clients. Steven Thomas was also charged with one count of filing a false visa application.
According to documents filed in this case and statements made in court:
From 2015 to 2021, the defendants encouraged their clients to apply for asylum under fraudulent pretenses. They advised their clients regarding the manner in which they were most likely to obtain asylum, knowing that these clients did not legitimately qualify for asylum. The defendants then prepared, or caused to be prepared, fraudulent applications and affidavits on behalf of those clients, which were submitted to the United States Citizenship and Immigration Services.
A confidential source also met with Steven Thomas in January of 2020, and Steven Thomas filed a visa application containing numerous false statements in April 2020.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to the indictment.
The government is represented by Senior Civil Rights Counsel Joseph Gribko.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Florida Man Charged with $1 Million ‘Up-Front’ Fee SchemeRead the Press Release
NEWARK, N.J. – A Florida man who previously resided in New Jersey was arrested and charged with defrauding multiple victims out of more than $1 million through an “upfront-fee” scheme, U.S. Attorney Philip R. Sellinger announced today.
John Sabo, 69, of Naples, Florida, is charged by complaint with two counts of wire fraud. He was arrested and made his initial appearance on Nov. 17, 2022, in the U.S. District Court for the Middle District of Florida.
According to documents filed in this case and statements made in court:
From November 2014 through the present, Sabo fraudulently induced his multiple victims to pay him thousands of dollars in “up-front” fees. Sabo falsely represented that, through his company Bankers Capital LLC, he could secure financing and collateral that the victims could use for their businesses. However, neither Sabo nor Bankers Capital possessed or had access to the financing and collateral that Sabo promised. Instead of using the victims’ money as promised, Sabo diverted millions of dollars out of Bankers Capital, primarily for personal expenses, which included payments to Sabo’s creditors and over $250,000 in golf-related expenses. In total, Sabo’s scheme resulted in over $1.77 million in losses to victims.
Each charge of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater.
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 Jennifer Kozar and Carolyn Silane of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bayside State Prison Corrections Officer Admits Violating Inmates’ Civil RightsRead the Press Release
NEWARK, N.J. – A corrections officer at Bayside State Prison in Leesburg, New Jersey, today admitted agreeing with others to physically assault inmates for actual, perceived, and fabricated violations of the prison’s rules and customs in a manner that resulted in injury to the inmates, U.S. Attorney Philip R. Sellinger announced.
John Makos, 42, of Millville, New Jersey, today pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with conspiring with others to deprive inmates of their right not to be subjected to cruel and unusual punishment.
According to documents filed in this case and statements made in court:
From at least April 2019 through December 2019, while working as a corrections officer, Makos conspired with others at Bayside State Prison to assault and punish certain inmates in a cruel and arbitrary manner by using excessive force that caused physical injury and pain to the victims. Makos and others agreed to physically assault victims for actual and perceived violations of the prison’s rules and customs, which on occasion resulted in the inmates suffering bodily injury. These assaults took place while the inmates were under Makos’ supervision and in areas of the Prison’s kitchen that were out of sight of institutional surveillance cameras.
For example, on Dec. 7, 2019, Makos watched and did not attempt to intervene when multiple inmates pinned a victim to the floor and, while the inmates restrained the victim, punched the victim approximately 25 times. Makos did not report this assault to his supervisors or medical personnel, despite knowing he was required to do so.
Conspiring to violate the civil rights of others carries a maximum sentence of 10 years in prison and a maximum potential fine of the greater of $250,000, twice the gross amount of pecuniary gain that any person derived from the offense, or twice the gross amount of pecuniary loss that any person suffered from the offense, whichever is greatest. Sentencing is scheduled for March 23, 2022.
U.S. Attorney Sellinger credited special agents of the FBI Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation. He also thanked the New Jersey Department of Corrections, under the direction of Acting Commissioner Victoria Kuhn, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Sara F. Merin and Ari B. Fontecchio of the Special Prosecutions Division in Newark and Trial Attorney Shan Patel of the U.S. Department of Justice’s Civil Rights Division.
Two Essex County Men Sentenced to Prison for Using Credit Cards and Checks Stolen from U.S. Mail as Part of a Scheme that Attempted to Defraud Banks of over $1 MillionRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey, men were sentenced yesterday and today for their roles in a scheme to steal credit cards, debit cards, and checks from the mail and use the stolen cards and checks to attempt over a million dollars of retail and online purchases and cash withdrawals, Attorney for the United States Vikas Khanna announced today.
Jahad Salter, 26, of Newark, was sentenced to 60 months in prison, and Hakir Brown, 28, Newark, was sentenced to 31 months in prison. Salter had previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with conspiracy to commit bank fraud and unlawfully possessing a firearm as a convicted felon, and Brown previously pleaded guilty before Judge McNulty to an information charging him with conspiracy to commit bank fraud. Judge McNulty imposed the sentences in Newark federal court.
According to documents filed in this case and statements made in court:
Salter, Brown, and others engaged USPS employees to steal from the mail, in exchange for compensation, credit cards and debit cards, and Salter and others engaged the same employees to steal checks, including federal stimulus payments issued in response to the COVID-19 pandemic. Once they obtained the stolen cards, Salter, Brown and their conspirators unlawfully obtained the credit and debit card holders’ personal identifiers and used that information to fraudulently pose as the accountholders of the stolen credit and debit cards when calling the banks that issued the cards and used that personal identifying information belonging to the accountholders to obtain or change information about the stolen credit cards. They, and others, then used the stolen credit cards to make purchases at retail stores in New Jersey and elsewhere, including New York and online. They and others also negotiated stolen checks, obtaining cash. In total, The scheme resulted in attempted losses of over $1 million.
In addition to the prison terms, Judge McNulty sentenced Salter to three years of supervise release and ordered him to pay forfeiture of $124,076. He sentenced Brown to three years of supervised release and ordered him to pay forfeiture of $46,209.
Attorney for the United States Khanna credited 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 U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to the sentencings. He also thanked the U.S. Marshals Service, District of New Jersey, under the direction of Marshal Juan Mattos Jr.; the U.S. Secret Service, New York Field Office, under the direction of Special Agent in Charge Patrick J. Freaney; the Treasury Inspector General for Tax Administration, Mid-Atlantic Field Division, under the direction of Special Agent in Charge Andrew S. McKay; the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Ricky J. Patel; the Livingston, New Jersey Police Department, under the direction of Chief Gary Marshuetz; the Newark Police Department, under the direction of Department of Public Safety Director Fritz Fragé; the Essex County, New Jersey Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the New Providence, New Jersey, Police Department, under the direction of Chief of Police Theresa A. Gazaway; and the Berkeley Heights, New Jersey, Police Department, under the direction of Chief of Police Jason Massimino, for their assistance.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark.
Passaic County Man Admits Possessing Fentanyl and Firearm in Furtherance of Drug TraffickingRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted illegally possessing fentanyl for distribution and possessing a firearm in furtherance of drug trafficking, U.S. Attorney Philip R. Sellinger announced.
Jessie Mayfield, 59, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of being a previously convicted felon in possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute controlled substances, and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
On Aug. 24, 2021, Mayfield possessed a quantity of fentanyl that was packaged for distribution, with the intent to sell it. He also possessed a Ruger .22 caliber pistol, along with a box containing 95 .22 caliber long rifle cartridges.
The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. The count of being a felon in possession of a firearm and ammunition carries a maximum potential penalty of 10 years in prison. The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed, and a maximum potential penalty of life in prison. Each firearm count carries a maximum fine of $250,000. Sentencing is scheduled for March 28, 2023.
U.S. Attorney Sellinger credited the members of the New Jersey State Parole Board, under the direction of Chairman Samuel J. Plumeri Jr.; Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Bryan R. Miller, Newark Field Division, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit and Assistant U.S. Attorney Benjamin Levin of the National Security Unit.