District of New Jersey

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.

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.

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.

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.

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.

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.

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, 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, 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

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.

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.

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.

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.

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.

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.

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.

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.

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, 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.

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.

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.

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.

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.

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.

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, 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.

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.

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.

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.

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.

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.

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.

NEWARK, N.J. – A federal grand jury today indicted the former chief executive officer and owner of a pharmaceutical company with wire fraud for his role in an embezzlement scheme, U.S. Attorney Philip R. Sellinger announced. 

John Klein, 76, of Tampa, Florida, was indicted on one count of wire fraud. He was previously charged by complaint with one count of wire fraud.

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

From May 2016 to January 2017, Klein misappropriated millions of dollars from the pharmaceutical company for his own personal use. In May 2016 a customer of the company paid $3.9 million into a company bank account that Klein controlled. After these transfers, Klein made numerous personal expenditures out of the account. Although he had diverted the customer payment for his own personal use, between December 2016 and January 2017, Klein caused the pharmaceutical company to write off the $3.9 million as uncollectable debt.

The wire fraud charge carries a maximum penalty of 20 years in prison and a fine of $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in 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 Tomlins in Newark, with the investigation leading to today’s indictment.

The government is represented by Assistant U.S. Attorneys Anthony Torntore and Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.

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

CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 48 months in prison for defrauding a victim of almost $2 million in connection with a fraudulent investment scheme, U.S. Attorney Philip R. Sellinger announced.

Frank N. Tobolsky, 60, of Cherry Hill, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to one count of wire fraud. Judge Hillman imposed the sentence today in Camden federal court.

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

Beginning in 2013, Tobolsky raised money from a victim, purportedly as an investment that would loan money to season ticket holders who owned seat licenses for the Philadelphia Eagles. The seat licenses would be used as collateral to secure the loans. The victim sent Tobolsky approximately $2.4 million to invest in the purported business venture. The money was not used for loans to season ticket holders. Instead, Tobolsky used a substantial portion on personal expenses.  

In addition to the prison term, Judge Hillman sentenced Tobolsky to three years of supervised release and ordered to pay $1.98 million in restitution to the victims.

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s sentencing. He also thanked the U.S. Attorney’s Office for the District of Delaware for assisting in the investigation.

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

CAMDEN, N.J. – A Camden County, New Jersey, man today admitted distributing videos and images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Ryan Osinski, 33, of Cherry Hill, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of distribution of child pornography.

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

In December 2020, law enforcement officers interviewed Osinski after receiving information from the National Center for Missing and Exploited Children that images of child sexual abuse were shared from an IP address assigned to Osinski’s residence. During and after the interview, law enforcement officers lawfully reviewed the contents of Osinski’s cell phone, which contained numerous images and videos of child sexual abuse. They found links and folders on a cloud storage website controlled by Osinski that Osinski transmitted to others using a social media application on his cell phone. These links and folders contained numerous images and videos of child sexual abuse, including materials that depicted prepubescent children and sadomasochistic conduct.

Osinski faces a mandatory minimum of five years in prison, a maximum of 20 years in prison, and a fine of $250,000. Sentencing is scheduled for March 27, 2023.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Cherry Hill Office, under the direction of Special Agent in Charge Ricky J. Patel in Newark, and the Camden County Prosecutor’s Office High Tech Crimes Unit, under the direction of Prosecutor Grace C. MacAulay, with the investigation leading to today’s guilty plea. He also thanked the Department of the Air Force, Office of Special Investigations, for its assistance.

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

CAMDEN, N.J. – A Burlington County, New Jersey, man has been charged with firearms and narcotics offenses, U.S. Attorney Philip R. Sellinger announced today.

Cody Starr, 35, of Mount Holly, New Jersey, is charged by complaint with one count of possession of a firearm by a convicted felon, one count of possession of a machinegun, one count of distribution of methamphetamine, and one count of possession of a firearm in furtherance of a drug trafficking crime. Starr made his initial appearance today before U.S. Magistrate Judge Elizabeth A. Pascal in Camden federal court and was detained without bail.

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

On Nov. 8, 2022, undercover agents met with Starr at his residence. While armed with a machinegun, which was a privately made firearm (PMF), Starr sold methamphetamine and three PMFs to the undercover agents. A PMF is a firearm, including a frame or receiver, completed, assembled, or otherwise produced by a person other than a licensed manufacturer, and without a serial number placed by a licensed manufacturer at the time the firearm was produced.

“The charges described in this complaint include possessing a privately-made automatic weapon, U.S. Attorney Sellinger said. “We are committed to protecting the community by prosecuting those who commit firearms offenses.”

“ATF remains steadfast in identifying, investigating, arresting, and prosecuting those offenders responsible for violent crime and preventing them from wreaking havoc in our neighborhoods,” Acting Special Agent in Charge Bryan Miller of the Bureau of Alcohol, Tobacco, Firearms and Explosives said. “We will continue to target not only those who illegally possess or utilize firearms to commit violent crimes, but also those who facilitate illegal manufacturing and trafficking of firearms. ATF will never waver in our commitment to protecting the community and we will continue to work with our law enforcement partners to hold all violators accountable.”

The charge of drug distribution carries a mandatory minimum term of 10 years in prison, a potential maximum term of life in prison, and up to a $10 million fine. The felon in possession of a firearm and possession of a machine gun each carry a potential maximum penalty of 10 years in prison and a fine of up to $250,000. The charge of possession of a firearm in furtherance of a drug trafficking crime charge carries a mandatory minimum term of incarceration of five years in prison, a potential maximum penalty of life in prison, and a fine of up to $250,000.

U.S. Attorney Sellinger credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, Camden Field Office, under the direction of Acting Special Agent in Charge Bryan Miller, with the investigation leading to the charges. He also thanked the U.S. Postal Inspection Service, Drug Enforcement Administration, Customs and Border Protection, New Jersey State Police, Burlington County Prosecutor’s Office, Mount Holly Police Department, Evesham Police Department, and Pine Hill Police Department for their assistance.

The government is represented by Special Assistant U.S. Attorney Katelyn Waegener of the U.S. Attorney’s Office in Camden.

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

NEWARK, N.J. – A Passaic County, New Jersey, man today admitted distributing fentanyl that caused the death of another person, U.S. Attorney Philip R. Sellinger announced.

Wyzier Peterson, 25, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of distribution of fentanyl relating to the overdose death of an individual.

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

On June 30, 2019, Peterson sold heroin and fentanyl, which was later ingested by the victim, resulting in the victim’s death. 

The count of distribution of fentanyl carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for March 29, 2023.

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

U.S. Attorney Sellinger credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Bryan Miller; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Sheriff’s Office, under the direction of Passaic County Sheriff Richard H. Berdnick; and detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes, with the investigation leading to today’s guilty plea. She also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.

The government is represented by Assistant U.S. Attorney Francesca Liquori, Chief of the OCDETF/Narcotics Unit.

CAMDEN, N.J. – A Gloucester County, New Jersey, man with five prior felony convictions was sentenced today to 151 months in prison for unlawfully possessing and conspiring to sell multiple firearms, U.S. Attorney Philip R. Sellinger announced.

Dylan Ianncelli, 29, of Pitman, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiring to make false statements in obtaining firearms and to illegally engage in the business of dealing in firearms, as well as one count of possession of firearms by a convicted felon. Judge Rodriguez imposed the sentence today in Camden federal court.

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

Ianncelli and his conspirator, Jessy Hill, agreed to purchase firearms in Georgia and transport them for resale in New Jersey. On Aug. 12, 2021, Hill purchased 11 firearms from a licensed dealer in Georgia. Hill falsely indicated during the purchase that she was the actual buyer/transferee of the firearms even though she was purchasing the firearms for others.  Ianncelli and Hill drove a car containing the firearms from Georgia to Mantua, New Jersey, where the car was stopped by law enforcement officers the following morning. Officers recovered from the car the 11 firearms purchased by Hill the prior day, as well as ammunition and a 12th firearm with a defaced serial number that Hill purchased a week earlier. 

In addition to the prison term, Judge Rodriguez sentenced Ianncelli to three years of supervised release.

Hill previously pleaded guilty to her role in the scheme and is scheduled to be sentenced on March 1, 2023. 

U.S. Attorney Sellinger credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the leadership of Acting Special Agent in Charge Bryan R. Miller, with the investigation leading to today’s sentencing. He also thanked the New Jersey State Police, the Mantua Township Police Department, and the Gloucester County Prosecutor’s Office for their assistance on this investigation.

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

NEWARK, N.J. – The former administrative manager of a carpenters’ union pension fund was sentenced today to six months of home confinement and three years of probation for embezzling approximately $140,000 and making false statements on a required report to the U.S. Department of Labor (DOL), U.S. Attorney Philip R. Sellinger announced. 

George R. Laufenberg, 72, of Wall Township, New Jersey, previously pleaded guilty before U.S. District Judge Kevin R. McNulty to two counts of an indictment charging him with embezzling approximately $140,000 in pension benefits and making false statements to the DOL. Judge McNulty imposed the sentence today in Newark federal court.

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

Laufenberg was the administrative manager of the Northeast Carpenters Pension Fund, which was subject to the Employee Retirement Income Security Act (ERISA). Laufenberg was a fiduciary and participant in the pension fund. He admitted stealing $140,000 that was paid to him under a deferred compensation agreement to which he was not entitled. Laufenberg also admitted that he made false statements in a form required under ERISA that he filed to the Department of Labor on behalf of the pension fund.

In addition to the prison term, Judge McNulty fined Laufenberg $20,000 and debarred him from any future association with a union or benefit plan.

U.S. Attorney Sellinger credited special agents of the DOL Employee Benefit Security Administration, under the supervision of Thomas Licetti, Regional Director; special agents of the DOL Office of the Inspector General, under the supervision of Special Agent in Charge Jonathan Mellone; and agents of the Port Authority of New York/New Jersey, under the supervision of Inspector General John Gay, with the investigation leading to today’s sentencing.

The government is represented by Senior Litigation Counsel V. Grady O’Malley of the Organized Crime/Gangs Unit, and Assistant U.S. Attorney Kendall R. Randolph of the Organized Crime and Drug Enforcement Task Force Unit.  

NEWARK, N.J. – A Guyanese citizen was arraigned today on drug conspiracy charges, U.S. Attorney Philip R. Sellinger announced.

Dennis Edwards, aka “Death,” 38, is charged in an indictment returned in 2012 with conspiring to import five kilograms or more of cocaine from St. Maarten into the United States. He appeared today before U.S. Magistrate Judge Edward S. Kiel in Newark federal court and was detained without bail

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

Edwards was part of a criminal conspiracy that arranged to import cocaine into the United States. Edwards was arrested on Nov. 14, 2022, when he arrived at Newark Liberty International Airport after having been deported from the Dominican Republic.

The conspiracy charge against Edwards carries a minimum penalty of 10 years in prison and a maximum of life in prison and a maximum fine of $10 million.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel, and deputies of the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos Jr., with the investigation leading to the charges. The Justice Department’s Office of International Affairs provided substantial assistance in securing Edwards’ arrest. U.S. Attorney Sellinger thanked officials in the Dominican Republic for their assistance.

The government is represented by Assistant U.S. Attorney Rachelle M. Navarro of the General Crimes Unit in Newark.

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

CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted his role in drug distribution and possession of a firearm as a felon, U.S. Attorney Philip R. Sellinger announced.

Clay Brown, 29, of Pleasantville, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of distribution of methamphetamine and one count of possession of a firearm as a previously convicted felon. 

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

Brown distributed methamphetamine and fentanyl on multiple occasions to a confidential informant. The day that agents arrested Brown for drug distribution, Brown possessed a backpack containing a firearm and controlled substances that Brown intended to distribute to others. Brown has multiple prior felony convictions that make it unlawful for him to possess a firearm. 

Brown faces a mandatory minimum of 10 years in prison and a maximum of life in prison and a $10 million fine on the drug distribution charge. He faces a maximum sentence of 15 years in prison and $250,000 fine on the firearms charge. Sentencing is scheduled for March 21, 2023.

U.S. Attorney Sellinger credited special agents with the Department of Homeland Security, Homeland Security Investigations, Atlantic City office, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to today’s guilty plea. He also thanked the Drug Enforcement Administration, Newark Division, and the New Jersey State Police, Crime Suppression South Unit, for their assistance.

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

NEWARK, N.J. – A Russian and Canadian national has been charged with participating in the LockBit global ransomware campaign, U.S. Attorney Philip R. Sellinger, Deputy Attorney General Lisa O. Monaco, Assistant Attorney General Kenneth A. Polite, and FBI-Newark Special Agent in Charge James E. Dennehy announced today.

Mikhail Vasiliev, 33, of Bradford, Ontario, Canada, is charged by complaint unsealed today in Newark federal court with conspiring with others to intentionally damage protected computers and to transmit ransom demands in connection with doing so. He was arrested Nov. 9, 2022, is awaiting extradition proceedings to bring him to the District of New Jersey.

“International ransomware threats like LockBit are the most pressing cybercrime challenge facing law enforcement today,” U.S. Attorney Sellinger said. “These attacks cause disruption and damage to their victims that far exceed the dollar figures of ransom demands or payments, which are themselves significant. However, the United States is up for this challenge and will use all legal means to find the perpetrators of these attacks and bring them to justice.”

“This arrest is the result of over two-and-a-half-years of investigation into the LockBit ransomware group, which has harmed victims in the United States and around the world,” Deputy Attorney General Lisa O. Monaco said. “It is also a result of more than a decade of experience that FBI agents, Justice Department prosecutors, and our international partners have built dismantling cyber threats. Let this be yet another warning to ransomware actors: working with partners around the world, the Department of Justice will continue to disrupt cyber threats and hold perpetrators to account. With our partners, we will use every available tool to disrupt, deter, and punish cyber criminals.”

“Cyber criminals who damage protected systems, exploit privileged information, or hold for ransom important files and data are a threat to our way of life,” FBI-Newark Special Agent in Charge James E. Dennehy said. “The FBI will not stand idly by while companies and government entities are bled dry or while their systems are corrupted by these criminal opportunists. We will utilize every tool in our arsenal – including our global partnerships – to shut down these types of schemes.”

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

LockBit is a ransomware variant that first appeared as early as January 2020 and has been deployed against over 1,000 victims in the United States and around the world. LockBit members have made at least $100 million in ransom demands to those victims and have extracted tens of millions of dollars in actual ransom payments from those victims. The FBI has been investigating the LockBit conspiracy since in or around March 2020. Vasiliev participated in the LockBit campaign by conspiring with others to intentionally damage protected computers and to transmit ransom demands.

The charge of conspiring to intentionally damage protected computers and to transmit ransom demands is punishable by a maximum of five years in prison and a maximum fine of $250,000, or twice the gross pecuniary gain or loss from the scheme, whichever is greatest.

U.S. Attorney Sellinger credited the Newark Cyber Crimes Task Force, under the direction of Special Agent in Charge Dennehy, with the investigation leading to the charges.  U.S. Attorney Sellinger also thanked FBI Atlanta, FBI Pittsburgh, FBI Miami, the FBI’s Legal Attaché-Ottawa, the Jersey City Police Department, New Jersey State Police, New Jersey Office of Homeland Security and Preparedness, and members of the U.S. Attorney’s Office for the Northern District of Georgia and of the U.S. Attorney’s Office for the Western District of Pennsylvania for their assistance. The Justice Department’s Office of International Affairs provided valuable assistance in securing Vasiliev’s arrest.

The government is represented by Assistant U.S. Attorneys Andrew M. Trombly and David E. Malagold of the Cybercrime Unit in Newark and by Trial Attorney Jessica C. Peck of the Computer Crime and Intellectual Property Section in Washington, D.C.

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

NEWARK, N.J. – A Middlesex County, New Jersey, man was arrested today for transmitting via the internet a manifesto containing threats to attack a synagogue and Jewish people, U.S. Attorney Philip R. Sellinger announced.

Omar Alkattoul, 18, of Sayreville, New Jersey, was arrested this morning and is charged by complaint with one count of transmitting a threat in interstate and foreign commerce on or about Nov. 1, 2022. He is scheduled to appear this afternoon before U.S. Magistrate Judge Jessica S. Allen in Newark federal court.

“No one should be targeted for violence or with acts of hate because of how they worship,” U.S. Attorney Sellinger said. “According to the complaint, this defendant used social media to send a manifesto containing a threat to attack a synagogue based on his hatred of Jews.  Along with our federal, state and local law enforcement partners, we acted swiftly to respond to the alleged threat. There is nothing the U.S. Attorney’s Office takes more seriously than threats to our communities of faith and places of worship. Protection of these communities is core to this office’s mission, and this office will devote whatever resources are necessary to keep our Jewish community and all New Jersey residents safe.” 

“When we learn of credible threats to our community – whether based in hate toward religion, race, sexual orientation, or gender – we call on law enforcement and community partners to assist in identifying and mitigating that threat,” Special Agent in Charge James E. Dennehy said. “Thanks to the collaborative efforts among our Joint Terrorism Task Force Members, a potentially harmful situation was averted. I would like to commend and show our appreciation for the resources from the District of New Jersey’s U.S. Attorney’s Office,  New Jersey State Police, the New Jersey Office of Homeland Security and Preparedness, the New Jersey Attorney General's Office, the Sayreville Police Department, and the Middlesex County Prosecutor’s Office. Let it be known that when a threat of violence comes to our attention, the FBI and our partners will respond to keep the public safe.”

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

On Nov. 1, 2022, Alkattoul used a social media application to send an individual a link to a document entitled “When Swords Collide” and admitted to this individual that he wrote the document, stating: “It’s in the context of an attack on Jews.” According to a second individual, Alkattoul also sent the document to at least five other people using another social media application. In the document, Alkattoul wrote the following:

I am the attacker and I would like to introduce myself. . . I am a Muslim with so many regrets but I can assure you this attack is not one of them and Insha’Allah many more attacks like these against the enemy of Allah and the pigs and monkeys will come.

I will discuss my motives in a bit but I did target a synagogue for a really good reason according to myself and a lot of Muslims who have a brain. Let’s be aware of the fact that the Jews promote the biggest hatred against Muslimeen even in the west. The Jews are in fact a very powerful group in the west which is why western countries today shill for them on top of the murtadeen in Saudi Arabia and every Arab country.

This attack was just to remind the Jews that as long as 1 Muslim remains in this world they will never live a pleasant life until the Muslims in Palestine, Syria, West Africa, and South Asia are living a pleasant life. The Jews support terror against the muslimeen and they always have . . . .  So the motive of this attack is hatred towards Jews and their heinous acts and I don’t want anyone to tell me for a second that “not all Jews support terror against Muslims” yes they do! They have since day one. Their Torah justifies their acts and let’s keep in mind it was a Jew that tried to kill the nebi SAW.

The charge of transmitting a threat in interstate and foreign commerce is punishable by a maximum penalty of five years in prison and a $250,000 fine.

U.S. Attorney Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge Dennehy in Newark, with the investigation leading to today’s arrest. He also thanked agents of the FBI Field Office in Tampa, Florida, under the direction of Special Agent in Charge David Walker; the FBI Field Office in New York, under the direction of Assistant Director in Charge Michael J. Driscoll; and the FBI Washington Field Office, under the direction of Assistant Director in Charge Steven D’Antuono; as well as the New Jersey Office of the Attorney General, under the direction of Attorney General Matthew J. Platkin; the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; and officers of the Sayreville Police Department, under the direction of Chief Daniel Plumacker.

The government is represented by Assistant U.S. Attorneys Jonathan Peck, Christopher Amore, and Benjamin Levin of the U.S. Attorney’s Office’s National Security Unit, with assistance from the U.S. Department of Justice’s Counterterrorism Section of the National Security Division. 

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

NEWARK, N.J. – A Newburgh, New York, man was sentenced today to 37 months in prison for possessing a stolen and loaded firearm that he tried to get through security at Newark Liberty International Airport, U.S. Attorney Philip R. Sellinger announced.

Desmond Herring, 48, previously pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of possession of a firearm and ammunition by a convicted felon and one count of carrying a weapon on an aircraft. Judge Cecchi imposed the sentence today in Newark federal court.

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

On Nov. 29, 2021, Herring submitted a carry-on bag for inspection at Newark Liberty International Airport. During the screening of Herring’s luggage, a Transportation Security Administration (TSA) agent identified ammunition and a suspected firearm and contacted the Port Authority Police Department. Upon seeing that his bag had attracted additional attention, Herring left the security checkpoint area without his bag and walked to a departure gate for his flight to Atlanta, Georgia.

Further investigation of Herring’s bag revealed that it contained a 9 millimeter pistol, 10 rounds of 9 millimeter ammunition loaded into a magazine, and 150 additional rounds of 9 millimeter ammunition. Herring was prohibited from possessing a firearm due to a 2010 federal conviction for conspiracy to distribute controlled substances.

In addition to the prison term, Judge Cecchi sentenced Herring to two 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; officers of the Port Authority Police Department, under the direction of Superintendent Edward Cetnar; and officers of the TSA with the investigation leading to today’s sentencing.  

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

A federal grand jury in Newark, New Jersey, returned an indictment today charging an Indian national for fraudulently obtaining millions of dollars in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to court documents, Abhishek Krishnan, 40, previously resided in Wake County, North Carolina, before returning to his home country of India. After returning to India, Krishnan allegedly submitted numerous fraudulent PPP loan applications to federally insured banks, including on behalf of purported companies that were not registered business entities. The fraudulent PPP loan applications allegedly included false statements about the companies’ employees and payroll expenses, as well as falsified tax filings. As part of the fraud scheme, Krishnan allegedly used the name of another person without that person’s authority. Krishnan allegedly submitted at least 17 PPP loan applications seeking over $8.2 million and received more than $3.3 million in loan proceeds. Following receipt of the funds, Krishnan allegedly laundered the proceeds of the fraud.  

Krishnan is charged with two counts of wire fraud, two counts of money laundering, and two counts of aggravated identify theft. If convicted, Krishnan faces a maximum penalty of 20 years in prison on each of the top counts and a mandatory minimum of two years in prison on each count of aggravated identify theft. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Philip R. Sellinger for the District of New Jersey; Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA), Southeast Field Division; Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region; U.S. Marshal Michael East for the Eastern District of North Carolina; and Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region made the announcement.

The TIGTA, FDIC-OIG, U.S. Marshals Service, and SBA-OIG are investigating the case.

Assistant Chief Justin Woodard and Trial Attorney Thomas D. Campbell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine M. Romano for the District of New Jersey are prosecuting the case, with assistance from Assistant U.S. Attorney Susan B. Menzer for the Eastern District of North Carolina.

In a separate case, Krishnan was recently charged in the Eastern District of North Carolina with theft of government property and aggravated identity theft regarding his alleged receipt of unemployment insurance benefits funded by the federal government in response to the COVID-19 pandemic.

The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

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 (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

CAMDEN, N.J. – A Pennsylvania man today admitted his role in a bank fraud conspiracy that targeted 12 different financial institutions in southern New Jersey and southeastern Pennsylvania, U.S. Attorney Philip R. Sellinger announced.

Muritala Adeowo, 57, of Lansdowne, Pennsylvania, pleaded guilty before U.S. district Judge Noel L. Hillman in Camden federal court to an indictment charging him with one count of conspiracy to commit bank fraud.

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

Adeowo was part of a multi-defendant, Nigerian-based, multi-layered criminal organization that engaged in a bank fraud conspiracy in several states, including New Jersey, Pennsylvania, Maryland, and Rhode Island, between June 2016 and March 2020. Members of the group acquired numerous business checks that were stolen from the United States mail, altered the payee on the checks to a fraudulent name and deposited the checks into bank accounts that had been opened with forged foreign passport documents and fraudulent U.S. visas that matched the names on the stolen checks. Once the banks credited all or a portion of the funds to the accounts, but before the checks had cleared, the defendants withdrew the funds from ATMs or purchased money orders, using debit cards associated with the fraudulent accounts. Members of the organization have used over 400 fraudulent accounts opened with fake identity documents to defraud the victim banks. To date, the total loss to the victim banks is approximately $7 million.

Adeowo admitted that he obtained fraudulent foreign passports for some of the conspirators that were used to open fraudulent accounts at the victim banks. Adeowo also admitted that he obtained stolen business checks from other conspirators that were then altered to change the payee on the check to match the fraudulent identity documents of the conspirator who would be depositing the check. On Aug. 25, 2020, Adeowo was arrested at his residence. Federal agents executed a federal search warrant and seized several stolen business checks that were found in Adeowo’s bedroom.

The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for March 16, 2023.

U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspection Service, Bellmawr office and Philadelphia Division Office, under the direction of Acting Inspector in Charge Raimundo Marrero; U.S. Postal Inspection Service, Washington, D.C., Division Office, under the direction of Inspector in Charge Damon Wood; Homeland Security Investigations, Cherry Hill Office and Newark Division Office, under the direction of Special Agent in Charge Ricky J. Patel; Homeland Security Investigations,  Philadelphia Division Office, under the Direction of Acting Special Agent in Charge William S. Walker; Homeland Security Investigations, Maryland Division Office, under the direction of James R. Mancuso, Special Agent in Charge, Baltimore, Maryland; Homeland Security Investigations Rhode Island Office, under the direction of Matthew Millhollin, Special Agent in Charge, Boston Division Office; and the U.S. Department of State’s Diplomatic Security Service (DSS), under the direction of R. Mike Escott, Resident Agent in Charge, Philadelphia Resident Office, with the investigation leading to today’s guilty plea.

Six other conspirators have previously pleaded guilty, and one conspirator was convicted in a trial before Judge Hillman in June 2022. Five of these defendants have pending sentencing hearings before Judge Hillman. Charges against four other defendants remain pending – the charges against them are merely accusations, and they are presumed innocent unless and until proven guilty.

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

NEWARK, N.J. – A Gloucester County, New Jersey, man today admitted that he illegally obtained more than $400,000 in unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced. 

Willie Carter, 23, of Paulsboro, New Jersey, pleaded guilty by videoconference before U.S. District Judge Reneé Marie Bumb to an information charging him with wire fraud.

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

From July 2020 to October 2020, Carter submitted fraudulent unemployment insurance benefit applications to various states. These states provided, and Carter falsely obtained, more than $400,000 in unemployment insurance benefits.

The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Carter or twice the gross loss suffered by the victims, whichever is greatest. Sentencing is scheduled for March 14, 2023.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone; postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, and special agents of the Department of Homeland Security, Office of Inspector General, under the direction of Inspector General Joseph V. Cuffari, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark. 

TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 12 months and one day in prison for unlawfully possessing a privately manufactured short barrel rifle, a silencer, and five imitation badges of various federal agencies, U.S. Attorney Philip R. Sellinger announced.

Jeffrey Backlund, 57, of Waretown, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with unlawfully possessing firearms that were not registered in the National Firearms Register and Transfer Record, and unlawful possession of an official badge or identification card. Judge Sheridan imposed the sentence today in Trenton federal court.

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

On Sept. 6, 2020, after investigating a domestic disturbance, law enforcement executed a search warrant at Backlund’s residence and located a number of firearms and imitation federal identification badges. They found one short-barreled, AR-style, .223 caliber rifle bearing no serial number and no branding. Attached to the rifle, they found a tan metal cylindrical device that law enforcement determined to be a silencer. Given the physical characteristics of the rifle and silencer, Backlund was required to, but did not, register these items in the National Firearms Register and Transfer Record pursuant to the National Firearms Act.

Law enforcement officers also located two bi-fold wallets containing FBI Special Agent identification credentials bearing Backlund’s picture and personal information, a United States Marshals Service badge, a Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent badge, and a Drug Enforcement Administration Special Agent badge. All badges and identifications were imitation and Backlund did not have the authority to possess any of them.

In addition to the prison term, Judge Sheridan sentenced Backlund to three years of supervised release and fined him $5,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the ATF Newark Field Division, under the direction of Acting Special Agent in Charge Bryan R. Miller; special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; members of the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr.; detectives with the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and officers of the Ocean Township Police Department, under the direction of Chief Michal J. Rogalski, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Martha K. Nye of the Criminal Division in Trenton.

TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced to 188 months in prison for conspiring to distribute and possess with intent to distribute cocaine and fentanyl analogue, U.S. Attorney Philip R. Sellinger announced today.

Richard Dobin, 30, of Manasquan, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an indictment charging him with one count of conspiracy to distribute and possess with intent to distribute pills containing cyclopropyl fentanyl, an analogue of fentanyl intended for human consumption, and one count of conspiracy to distribute and possess with intent to distribute cocaine. Judge Shipp imposed the sentence on Nov. 3, 2022, in Trenton federal court.

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

From February 2017 through August 2017, Dobin led a drug trafficking organization based in Monmouth County, which sold cocaine and fentanyl analogue pills locally and via the Dark Web, the Internet’s black market. The fentanyl analogue pills contained a powerful synthetic opioid with significant abuse potential. Dobin ordered both cocaine and fentanyl analogue on the Dark Web before reselling the drugs in smaller quantities. At the time of his arrest, Dobin was attempting to expand his operation by manufacturing his own pills using pill press machines and raw powders at his stash house located in Middletown, New Jersey. During searches of the stash house and a vehicle used by Dobin’s organization, law enforcement seized more than nine kilograms of fentanyl pills and nearly five kilograms of cocaine.

In addition to the prison term, Judge Shipp sentenced Dobin to four years of supervised release. The court previously ordered the forfeiture of certain cryptocurrency holdings belonging to Dobin, which Dobin had surrendered to law enforcement.

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

U.S. Attorney Sellinger credited special agents with the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; the U.S. Department of Homeland Security, Homeland Security Investigation (HSI), Newark Division, under the direction of under the direction of Special Agent in Charge Ricky J. Patel; 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, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to the sentencing. He also thanked the Middletown Police Department for its assistance.

The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the U.S. Attorney’s Office’s Asset Recovery and Money Laundering Unit.

NEWARK, N.J. – A Union County, New Jersey, man admitted 12 counts of preparing a false tax return, U.S. Attorney Philip R. Sellinger announced today.

Terrence LeGall, 69, of Linden, New Jersey, pleaded guilty on Nov. 2, 2022, before U.S. District Court Judge John M. Vazquez in Newark federal court to a superseding indictment charging him with 12 counts of aiding and abetting the preparation of a false tax return.

According to the documents filed on the record and statements made in court:

Between 2013 and 2017, LeGall, the sole operator of a financial adviser and tax preparer service in Union County, New Jersey, called LeGall Group Inc. (LGI), prepared numerous false tax returns for his clients in which he included fake charitable contributions, unreimbursed business expenses and business losses that he knew his clients had not actually incurred. This resulted in a reduction in the clients’ tax liability and a fraudulent refund from the IRS. LeGall acted as a “ghost preparer” – although he prepared income tax returns for his clients, he did not identify himself anywhere on the returns as a preparer and filed the returns in a manner that made it look like the returns had been filed by the taxpayers. LeGall’s actions caused losses in excess of $300,000 to the U.S. Treasury.

Each count of false preparation of an income tax return carries a maximum prison sentence of three years and a $250,000 fine. As part of his plea agreement, LeGall has agreed to pay the government restitution in the amount of $314,225, and to file amended returns and pay any outstanding taxes LGI owes from 2012 through the present. Sentencing has been scheduled for March 29, 2023.

U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Sammi Malek of the Criminal Division and Assistant U.S. Attorney Mark McCarren of the Special Prosecution Division in Newark.