District of New Jersey
Press releases recorded for this federal judicial district.
Passaic County Man Convicted of Conspiracy and Two Armed Bank RobberiesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was convicted today by a federal jury for his role as the gunman in two armed bank robberies, U.S. Attorney Philip R. Sellinger announced.
Jose Soto, 52, of Passaic, New Jersey, was convicted of two bank robberies, conspiracy to commit bank robbery, and brandishing a firearm during those robberies following a six-day jury trial before U.S. District Judge William J. Martini.
According to documents in this case and the evidence at trial:
On Feb. 6, 2020, Soto and his conspirator, while wearing face coverings and holding umbrellas, entered the PNC Bank in Passaic. Soto pointed a silver and black handgun at customers and employees and began ordering everyone down on the floor. His conspirator entered the bank and jumped over the teller counter, demanding that the teller turn over all cash in the drawers. Soto and his conspirator took approximately $35,000 from the PNC Bank.
On Feb. 27, 2020, Soto and the same conspirator entered the Valley Bank in Little Falls, New Jersey. Soto again pointed a silver and black gun at customers and employees and his conspirator jumped over the teller counter and began rifling through various drawers. Soto and his conspirator, at gunpoint, forced the bank employees to open the vault, and began retrieving cash from the bank vault. They then forced all employees and customers into the bank vault and fled through the rear door of the Valley Bank. Soto and his conspirator took approximately $45,000 from the Valley Bank.
For each bank robbery charge, Soto faces a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. For the conspiracy charge, Soto faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. For each count of brandishing a firearm in furtherance of a bank robbery, Soto faces a mandatory minimum of seven years in prison, a maximum potential penalty of life imprisonment, and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Soto’s sentencing is scheduled for Feb. 23, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Passaic Police Department, under the direction of Chief Luis A. Guzman; the Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik; the Little Falls Police Department, under the direction of Chief Robert A. Thomas III; and the Paterson Police Department, under the direction of Director Jerry Speziale, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Emma Spiro and Mark J. Pesce of the Criminal Division in Newark.
Two New Jersey Women Admit Methamphetamine TraffickingRead the Press Release
CAMDEN, N.J. – Two New Jersey women today admitted trafficking methamphetamine, U.S. Attorney Philip R. Sellinger announced.
Sherri Craig, 42, of Clementon, New Jersey, and Shannon Foster, 27, of Egg Harbor City, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an indictment charging each with one count of conspiring to distribute five grams or more of methamphetamine.
According to documents filed in this case and statements made in court:
From March 2021 through September 2021, Craig and Foster regularly purchased methamphetamine from suppliers and conspired with each other, and others, to distribute it throughout southern New Jersey. On Sept. 20, 2021, Craig and Foster went to a residence in Camden to purchase methamphetamine from a supplier and brought $3,000 with them to make the purchase.
The drug-trafficking conspiracy charge carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. Sentencing is scheduled for Feb. 14, 2023.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Raimundo Marrero; agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the leadership of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s guilty pleas. He also thanked troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Two Leaders of Real Estate Investment Firm Indicted for $650 Million Ponzi Scheme ConspiracyRead the Press Release
NEWARK, N.J. – The president and a top officer of a real estate investment company were charged for their roles in a scheme to defraud more than 2,000 investors in a $650 million Ponzi scheme, and with conspiring to evade $26 million in tax liabilities, U.S. Attorney Philip R. Sellinger announced today.
Thomas Nicholas Salzano, aka “Nicholas Salzano,” 64, of Secaucus, New Jersey, and Rey E. Grabato II, 43, of Hoboken, New Jersey, and the Republic of the Philippines, are charged in an 18-count indictment unsealed Oct. 12, 2022, with conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud, and conspiracy to defraud the United States. Salzano is also charged with two counts of aggravated identity theft, two counts of tax evasion, and five counts of subscribing to false tax returns.
Salzano was arrested Oct. 12, 2022, and is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Leda Dunn Wettre. Grabato remains at large.
Also today, Arthur S. Scuttaro, 62, of Nutley, New Jersey, the former head of sales at National Realty Investment Advisors LLC (NRIA), pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of conspiracy to commit securities fraud in the same scheme. His sentencing is scheduled for Feb. 23, 2023.
“As charged in the indictment, these defendants schemed to create a high-pressure, fraudulent marketing campaign to hoodwink investors into believing that their bogus real estate venture generated substantial profits,” U.S. Attorney Sellinger said. “In reality, their criminal tactics were straight out of the Ponzi scheme playbook so that they could cheat their investors and line their own pockets. Our message from today’s charges is that we remain deeply committed to rooting out all types of financial fraud schemes. These schemes undermine our markets and erode the public’s trust in investing. Together with our enforcement partners, we will continue to prioritize investigating and prosecuting financial crime in all of its forms.”
“This case should serve as a cautionary tale to the consumer,” FBI Special Agent in Charge James E. Dennehy said. “Before you entrust your hard-earned savings to someone, do your research on the trustee and the product they are selling; become familiar with the red flags that can alert you to a fraud; don’t let dollar signs cloud your judgement; and remember the old adage that if it sounds too good to be true, it probably is. Slick pamphlets, flashy commercials, and ads that feature celebrities do not add up to the most important element – credibility. The FBI works diligently to protect the American public, arrest lawbreakers, and recoup whatever stolen funds haven’t evaporated. The sad fact is the consumer is rarely made whole. Skepticism and analysis are still the best protection.”
“This was a brazen scheme of staggering proportions,” Tammy Tomlins, IRS Criminal Investigation Acting Special Agent in Charge of the Newark Field Office, said. “These defendants prioritized their own greed, stealing $650 million from investors, while conspiring to evade $26 million in tax liabilities. The indictment sends a clear message that the IRS Criminal Investigation special agents and our law enforcement partners, remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
According to documents filed in this case and statements made in court:
Grabato was president of NRIA and Salzano was the firm’s shadow chief executive officer. From February 2018 through January 2022, Salzano and Grabato defrauded investors and potential investors of NRIA Partners Portfolio Fund I LLC, a real estate fund operated by NRIA, of $650 million through lies, deception, misleading statements, and material omissions. These included false representations about NRIA’s financial position, how the defendants and their conspirators used fund investor money, and Salzano’s managerial role at NRIA and his history of fraud.
The defendants executed their scheme through an aggressive multi-year, nationwide marketing campaign that involved thousands of emails to investors; advertisements on billboards, television, and radio; and meetings and presentations to investors. Salzano led and directed the marketing campaign, which employed deception, material misrepresentations and omissions, and falsified documents to manipulate investors. The marketing campaign was intended to mislead investors into believing that NRIA was a solvent business that generated significant profits. In reality, NRIA generated little to no profits and operated as a Ponzi scheme, which was kept afloat by new investors. Despite investing almost none of their own capital into the business, the defendants misappropriated millions of dollars of investor money.
Salzano concealed his true managerial role at NRIA while using Grabato as a stand-in CEO in an effort to avoid scrutiny by investors of Salzano’s prior guilty plea to defrauding small businesses in Louisiana through a large telecommunications company.
Salzano and Grabato also orchestrated a separate conspiracy to defraud the IRS in its effort to collect $26 million in outstanding taxes Salzano owed to the U.S. Treasury. Salzano and Grabato are alleged to have lied to the IRS, used a web of nominees, opened bank accounts in the names of phony entities, and used false and fraudulent company documents.
The conspiracy to commit securities fraud and conspiracy to defraud the United States counts charged in the indictment both carry a maximum penalty of five years in prison and a $250,000 fine. The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. The wire fraud conspiracy and wire fraud counts are both punishable by a maximum penalty of 20 years in prison and a $250,000 fine. The tax evasion counts both carry a maximum penalty of five years in prison and a $100,000 fine. The subscribing to false tax return counts each carry a maximum penalty of three years in prison and a $100,000 fine. The aggravated identity theft counts carry a mandatory sentence of two years in prison, which must be served consecutively to any other sentence imposed.
In a separate civil action, the Securities and Exchange Commission filed a complaint today in the District of New Jersey against Salzano, Grabato, Scuttaro, and others based on the allegations underlying the Ponzi scheme alleged in the indictment and information.
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 Tomlins in Newark, with the investigation. He also thanked the Securities and Exchange Commission, New York Regional Office, for its cooperation and assistance during the investigation.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer, of the Economic Crimes Unit, and Lauren E. Repole, Chief of the General Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Gloucester City Business Owner Admits Payroll Tax Fraud and Pandemic Loan FraudRead the Press Release
CAMDEN, N.J. – The owner of a business in Gloucester City, New Jersey, today admitted failing to pay over payroll taxes to the IRS, failing to file personal income tax returns, and fraudulently obtaining a Paycheck Protection Program (PPP) loan, U.S. Attorney Philip R. Sellinger announced.
John Degan, 69, of Philadelphia, Pennsylvania, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of failing to collect, account for, and pay over payroll taxes, one count of failure to file income tax returns with the IRS, and one count of bank fraud.
According to documents filed in this case and statements made in court:
Degan was the owner and operator of Companion Services Group Inc., a building maintenance and restoration service company in Gloucester City. Companion provided architectural maintenance and restoration services, which includes restroom maintenance, glass restoration, and graffiti removal.
Degan admitted that for tax years 2016 through 2020, he willfully failed to file payroll tax returns and failed to pay over $600,629 in withheld employment taxes on behalf of his employees. Degan attempted to conceal from the IRS over $4.4 million in wages that he paid to himself and his employees by not filing and submitting Forms W-2 or Form W-3 to the Social Security Administration (SSA).
Degan admitted that he received a yearly salary that ranged from $140,000 to $170,000 from Companion, willfully failed to file his federal income tax returns for tax years 2016 through 2020, and has not filed a tax return since 2003. He also failed to file the corporate tax returns for Companion, a business that generated more than $1.4 million in gross receipts yearly.
Degan also submitted a fraudulent application to a lender to obtain a PPP loan.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance from the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses through the PPP program.
In April 2020, Degan submitted a PPP application for Companion in which he falsely represented to the lender that Companion had employees and payroll expenses. In further support of his application, Degan submitted various IRS Forms to establish that he was paying compensation to his employees. Those forms were never actually submitted to the IRS; instead, they were false forms that were only created and used for the purpose of securing the loan.
Based on Degan’s misrepresentations, the lender approved the PPP loan and disbursed $193,407 in federal COVID-19 emergency relief funds.
The charge of failing to collect, account for and pay over payroll taxes carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. The charge of failing to file income tax returns with the IRS carries a maximum penalty of one year in prison and a fine of $100,000, or twice the gross gain or loss from the offense, whichever is greatest. The bank fraud count carries a maximum penalty of 30 years in prison and a fine of $1 million. As part of his guilty plea, Degan agreed to make restitution to the IRS in the full amount of the taxes that he owes, and he agreed to make restitution to the lender in the full amount of the PPP loan. Sentencing is scheduled for Feb. 14, 2023.
U.S. Attorney Sellinger credited special agents of the IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Jason M. Richardson, Attorney in Charge of the U.S. Attorney’s Office in Camden.
Salem County Man Sentenced to Four Years in Prison for Possession of Child PornographyRead the Press Release
CAMDEN, N.J. – A Salem County, New Jersey, man was sentenced today to 48 months in prison for possession of images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Rickie Wayne Patton, 43, of Pennsville, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of possession of child pornography. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Feb. 10, 2020, a task force officer with the FBI’s Child Exploitation and Human Trafficking Task Force identified an IP Address that was sharing suspected child sexual abuse materials over a peer-to-peer file sharing network. From Feb. 10, 2020, to March 15, 2020, the officer downloaded several video files containing images of child sexual abuse from a computer at the same IP Address, which was then traced to Patton’s residence. Law enforcement officer executed a search warrant on May 19, 2020, and found laptop computers and digital storage media belonging to Patton. Forensic examination later confirmed those devices contained images of child sexual abuse. Patton admitted to possessing those devices and knowing they contained child sexual abuse materials during his guilty plea.
In addition to the prison term, Judge Bumb sentenced Patton to 10 years of supervised release.
U.S. Attorney Sellinger credited special agents and task force officers of the FBI, Philadelphia Division, South Jersey Resident Agency - Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge Jacqueline Maguire, with the investigation leading to today’s sentencing. He also thanked the Pennsville Police Department, under the direction of Chief Patrick Spillman, and the Salem County Prosecutor’s Office, under the direction of Prosecutor Kristin J. Telsey, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
Federal Safety and Health Officer Admits Conspiring with His Brother to Extort ContractorsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted conspiring with his brother to extort multiple general contractors of approximately $14,000 in cash, U.S. Attorney Philip R. Sellinger announced.
Alvaro Idrovo, 46, of Bloomfield, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiring to defraud the United States and to commit an offense against the United States, specifically, an act of extortion under color of his office or employment with the U.S. Department of Labor, Occupational Safety and Health Administration (OSHA).
Idrovo was charged by complaint in September 2020 with his brother, Paul Idrovo, with one count of conspiring to commit an offense against the United States based on the extortion of a single contractor. Paul Idrovo previously pleaded guilty to an information charging the same offense and was sentenced to three years of probation and ordered to pay $15,600 in restitution.
According to documents filed in this case and statements made in court:
Alvaro Idrovo was a compliance safety and health officer for OSHA. He misrepresented to contractors at construction sites in New Jersey that they were facing significant OSHA fines, penalties and possibly jail if they did not get the alleged necessary OSHA safety training. Alvaro Idrovo would provide the contractors with the phone number for the required trainer – allegedly named “Jose Diaz” or “Paul Mejia” – which phone number belonged to Paul Idrovo, posing under these names to conceal the brothers’ relationship. Paul Idrovo was an authorized trainer for certain OSHA Outreach Training Programs, but was not an employee of OSHA.
The two men charged the contractors $4,000 to $6,000 each, in cash, for the alleged safety training. At the time that Paul Idrovo collected the cash, he provided the contractors with fraudulent computer-generated safety and health certificates for their individual employees, which falsely stated that the employees had received various types of OSHA certified safety training from “Jose Diaz” and “Paul Mejia,” when no training had been provided. Paul Idrovo shared with Alvaro Idrovo approximately $5,000 of the cash collected as part of the extortion conspiracy.
When OSHA officials learned of the attempt to extort one of the contractors, they referred the matter to federal law enforcement, who arranged for that contractor to make consensual recordings with both Idrovo brothers. During an April 2020 meeting surveilled by law enforcement, the contractor paid Paul Idrovo $6,000 in cash in exchange for ladder and safety awareness training certificates and a safety and health plan, filled in from a template. Alvaro Idrovo attached copies of the training certificates and the plan to his OSHA reports regarding the contractor’s violation despite knowing that the training certificates falsely claimed that training had been provided to the noted individuals on the specified dates in March 2020, that “Jose Diaz” had provided training, and that the alleged training was OSHA certified.
The conspiracy charge against Alvaro Idrovo carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 16, 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 in New York, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Leslie Faye Schwartz of the Special Prosecutions Division.
Puerto Rican Man Sentenced to 10 Years in Prison for Conspiring to Distribute over 250 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A Puerto Rican man was sentenced today to 120 months in prison for conspiring to distribute over 250 kilograms of cocaine, U.S. Attorney Philip R. Sellinger announced.
Mariano Enrique Arroyo Perez, aka “Humilde,” 29, previously pleaded guilty before U.S. District Judge Esther Salas to a superseding indictment charging him with conspiracy to distribute five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
From 2017 through July 2019, Arroyo Perez and his conspirators conspired to distribute approximately 250 kilograms of cocaine. The conspirators sought to bring cocaine into the United States using private planes. Specifically, Arroyo Perez coordinated the use of a private plane to transport approximately 150 kilograms of cocaine from Puerto Rico to New Jersey on Nov. 18, 2018. Law enforcement officers intercepted that shipment after the pilots became suspicious about four passengers who were not on the flight manifest and had particularly heavy luggage. The luggage contained cocaine, and the passengers were arrested.
In addition to the prison term, Judge Salas sentenced Arroyo Perez to five years of supervised release.
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 Drug Enforcement Administration in New Jersey, under the direction of Special Agent in Charge Susan A. Gibson in Newark, as well as special agents and task force officers with the Drug Enforcement Administration in Colombia, the Dominican Republic, and Puerto Rico. He also thanked the U.S. Office of International Affairs and the U.S. Marshals Service for their assistance with the case.
The government is represented by Assistant U.S. Attorney Lauren Repole, Chief of the General Crimes Unit in Newark and Assistant U.S. Attorney Francesca Liquori, Chief of the OCDETF Unit in Newark.
Middlesex County Man Charged with Laundering $2.1 Million Obtained from Internet-Related FraudsRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man has been charged with laundering money obtained from a variety of internet-based scams, U.S. Attorney Philip R. Sellinger announced.
Kenny Osas Okuonghae, 35, of Edison, New Jersey, is charged by complaint with one count of money laundering conspiracy. He is scheduled to have his initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to documents filed in this case and statements made in court:
From 2019 through the present, Okuonghae laundered money that was obtained from a variety of internet-related scams, including property rental scams, romance scams, and a “pig butchering” scam involving a purported cryptocurrency investment platform called “Alphacoin.” “Pig butchering” refers to an internet scheme where a romance scam victim develops what the victim perceives to be a romantic relationship online with the perpetrator. The perpetrator emotionally “fattens” the victim up before enticing the victim to invest in a fake cryptocurrency scheme and then, metaphorically, “slaughters” the victim by taking the victim’s real money that he or she placed in the fake cryptocurrency investment scheme.
Okuonghae opened several bank accounts across at least seven banks and permitted fraudulent proceeds to be deposited into these accounts. One of the scams from which Okuonghae received illegal proceeds was the Alphacoin scam. Another scam involved a deposit for rental property that was not actually available to rent. Okuonghae told at least one bank that the money was coming from a legitimate customer who wished to buy car parts from Okuonghae. Okuonghae also circulated at least one false invoice made out to a victim for the purported purchase of a Mack truck. Okuonghae laundered at least $2.1 million through his accounts.
The money laundering conspiracy charged in the complaint carries a maximum punishment 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, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s charge. He also thanked the U.S. Postal Inspection Service and Customs and Border Protection for their assistance.
The government is represented by Assistant U.S. Attorney Jamie H. Solano of the Cybercrime Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Monmouth County Man Indicted for Laundering Money for Black Axe in South AfricaRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man has been indicted for laundering money on behalf of the Cape Town Zone of Black Axe, U.S. Attorney Philip R. Sellinger announced today.
Andrew Suarez, 29, of Middletown, New Jersey, is charged by indictment with money laundering conspiracy, substantive money laundering counts, and aggravated identity theft. He is scheduled to appear today before U.S. Magistrate Judge Edward S. Kiel in Newark federal court.
According to documents filed in this case and statements made in court:
From August 2017 through December 2017, Suarez worked with conspirators to launder money to entities in the Cape Town, South Africa, area, including to an account in the name of Abravoo Trading Company, an entity controlled by a founding member of the Cape Town Zone of Black Axe. Black Axe members were responsible for widespread internet-based fraud schemes.
Suarez opened up bank accounts in the United States, which were then used to conceal money obtained through business email compromises and other fraud schemes. Suarez transferred the proceeds of the fraud schemes to other U.S. bank accounts and wired proceeds to bank accounts in Cape Town, South Africa. To avoid detection, Suarez changed the information on some of his bank accounts, so the accounts listed the name and address of a victim.
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. The aggravated identity theft count carries a mandatory two-year prison term, which must run consecutively to any other term of imprisonment, and a fine not to exceed $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, Red Bank Office, under the direction of Special Agent in Charge James E. Dennehy in Newark, and the U.S. Secret Service’s Newark Division, under the direction of Special Agent in Charge Jose Riera, with the investigation leading to today’s charges. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Acting Monmouth County Prosecutor Raymond Santiago, for its assistance in the case.
The government is represented by Assistant U.S. Attorney Jamie H. Solano of the Cybercrime Unit in Newark.
Florida Man Charged with Wire Fraud Scheme to Defraud Former Employer in New JerseyRead the Press Release
NEWARK, N.J. – A former New Jersey resident was charged with engaging in a fraudulent scheme to misappropriate more than approximately $430,000 belonging to his former New Jersey employer, U.S. Attorney Philip R. Sellinger announced today.
Abdelrahman Ahmed-Elkilani, 27, of Miami, Florida, is charged by complaint with two counts of wire fraud. He surrendered to the FBI in Newark yesterday and is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Edward S. Kiel.
According to documents filed in this case and statements made in court:
From January 2017 through July 2019, Ahmed-Elkilani misappropriated more than $430,000 in funds belonging to his former employer by taking advantage of his role as a marketing manager for the company and his access to other employees’ operator codes, as well as the company’s membership accounts to create and execute multiple false transactions. These transactions enabled Ahmed-Elkilani to misappropriate funds for his own personal use and benefit.
Ahmed-Elkilani misappropriated $417,075in special order merchandise deposits held in the company’s deposit account and caused approximately $275,000 of those funds to be transferred to his personal credit or debit cards. He also misappropriated $13,674 in additional company funds through other fraudulent methods.
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 greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the 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.
Doctor Admits Criminal HIPAA Scheme for Wrongful Disclosure of Protected Patient Health Information to Pharmaceutical Sales RepresentativeRead the Press Release
CAMDEN, N.J. – A former physician with medical practices in New Jersey, New York, and Florida admitted wrongfully disclosing patients’ protected personal health information, Attorney for the United States Vikas Khanna announced today.
Frank Alario, 65, of Delray Beach, Florida, pleaded guilty before Judge Robert B. Kugler to conspiring to wrongfully disclose patients’ individually identifiable health information to pharmaceutical sales representative Keith Ritson in violation of the criminal provisions of the Health Insurance Portability and Accountability Act (HIPAA).
According to documents filed in this case and statements made in court:
From 2014-16, Ritson was a pharmaceutical sales representative who promoted compound prescription medications and other medications. Compound medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
As an outside pharmaceutical sales representative not associated with Alario’s medical practices, Ritson was not permitted to access and obtain the individually identifiable health information and protected health information of Alario’s patients. As part of the scheme, Alario permitted Ritson to have significant access to his office, medical files, and patient information. Alario allowed Ritson to be present in the office both during and outside normal business hours and to have access to areas of the office restricted to staff, including areas with patient files and office computers. Alario permitted Ritson to look up patients’ information in files and on office computers to determine if patients had insurance that covered the compound medications. Ritson then would earmark files in advance so that Alario knew to whom to prescribe the medications. Alario also brought Ritson into patient exam rooms during appointments and gave patients the impression that Ritson was employed by or affiliated with the medical practice, which facilitated and caused the disclosure of confidential health information to Ritson. Ritson would use patients’ confidential information to fill out prescription forms that Alario would authorize, and then Ritson received commissions on those prescriptions.
Alario was previously charged in an indictment alongside Ritson with conspiring to violate HIPAA and other offenses. The charges remain pending against Ritson, who is scheduled to go on trial before Judge Kugler in Camden federal court on Nov. 7, 2022. The charges against him are merely accusations, and he is presumed innocent unless and until proven guilty.
Alario faces a maximum penalty of one year in prison and a $50,000 fine. Sentencing is scheduled for Feb. 7, 2023.
Attorney for the United States Khanna credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Denney in Newark; special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the Criminal Division and R. David Walk Jr., Chief of the Opioid Abuse Prevention and Enforcement Unit.
Bergen County Man Charged with Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested for distributing and possessing videos of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Michael Kimmerle, 34, of New Milford, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He appeared Oct. 6, 2022, before U.S. Magistrate Judge Jessica S. Allen and was released on $100,000 unsecured bond.
According to documents filed in this case:
From August 2021 through August 2022, Kimmerle distributed videos of child sexual abuse via a publicly available online peer-to-peer (P2P) file-sharing program. During the course of the investigation, an undercover law enforcement officer conducted online sessions using the P2P program, during which a user shared multiple videos of child sexual abuse from an IP address traced to Kimmerle’s address.
Subsequent to a lawful search of his residence, law enforcement officers recovered thumbnail images containing child pornography on Kimmerle’s laptop, including several images derived from one of the video files Kimmerle previously distributed on the P2P program. They also found the P2P program on Kimmerle’s laptop.
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. The count of possession of child pornography carries a maximum penalty of 10 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 today’s charges.
The government is represented by Assistant U.S. Attorney Jenny Chung 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.
Pediatric Dentist and Affiliated Practices to Pay over $750,000 to Resolve False Claims Act AllegationsRead the Press Release
NOTE: The quote from the U.S. Attorney in the press release below has been updated to clarify that the settlement is based on allegations.
NEWARK, N.J. – Pediatric Dentist Barry L. Jacobson and his company, HQRC Management Services LLC (HQRC), along with 13 affiliated pediatric dentistry practices, agreed to pay $753,457 to resolve allegations that they violated the False Claims Act by allegedly performing and billing for medically unnecessary therapeutic pulpotomies on pediatric patients, U.S. Attorney Philip R. Sellinger announced today.
The settlement, which is the result of a joint investigation between the U.S. Attorney’s Office for the District of New Jersey and the New York Attorney General’s Medicaid Fraud Control Unit (MFCU), also resolves allegations that defendants provided inaccurate servicing provider information on claims submitted to Medicaid managed care organizations. .
“It is unconscionable that medical professionals were allegedly willing to perform unnecessary dental procedures on children simply to make money,” U.S. Attorney Sellinger said. “Recovering their alleged ill-gotten gains only begins to undo this damage. Working with Attorney General James and our partners in the New York Attorney General’s Office, we want to make it clear that this behavior is intolerable.”
“Dr. Jacobson and HQRC allegedly performed unnecessary and invasive dental procedures on children to line their own pockets,” Attorney General Letitia James said. “My office will not tolerate any instance of medically unnecessary procedures performed on vulnerable Medicaid beneficiaries. I am grateful to U.S. Attorney Philip Sellinger and team for their partnership as we investigated this fraudulent scheme.”
According to the contentions of the United States contained in the settlement agreement:
Jacobson is the chief executive officer of HQRC, now doing business as PDS Management Solutions. He is also the founder and owner of the following New York and New Jersey based Pediatric Dentistry Practices party to the agreement: Pediatric Dentistry of Paterson, Pediatric Dentistry of Teaneck, Pediatric Dentistry of Wykoff, Pediatric Dentistry of Flushing, Pediatric Dentistry of the Bronx, Pediatric Dentistry of Valley Stream, Pediatric Dentistry of Brooklyn (Avenue U), Pediatric Dentistry of Brooklyn (Boro Park), Pediatric Dentistry of Monsey, Pediatric Dentistry of Kingston, Pediatric Dentistry of Albany, Pediatric Dentistry of Malone, and North Country Pediatric Dentistry.
The settlement resolves allegations that HQRC dentists performed medically unnecessary therapeutic pulpotomies on pediatric patients. According to the United States, certain dentists performed therapeutic pulpotomies on primary teeth even though there was no dental decay in the inner third of the dentin. The defendants also provided inaccurate servicing provider information on claims for services submitted to New York and New Jersey Medicaid Managed Care Organizations.
Jacobson and the affiliated corporate defendants admit that, in some instances between 2011 and 2018, some dentists affiliated with HQRC performed and billed Medicaid for pulpotomies not supported by the medical records maintained at the respective HQRC affiliated dental practices. The defendants also admit that in some instances, between 2011 and 2014, HQRC made billing errors to New York and New Jersey Medicaid contractors that resulted in inaccurate servicing provider information on claims for services performed at three of its locations.
The allegations were originally made in a lawsuit filed under the whistleblower provisions of the False Claims Act by Lauren Simpson. The Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. Simpson will receive a total of $135,622 from the federal and state shares of the settlement.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz and civil investigator Jeffrey DeFuria of the District of New Jersey’s U.S. Attorney’s Office, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Susan Pappy of the District of New Jersey’s Health Care Fraud Unit.
The lawsuit is captioned United States of America, State of New York, and State of New Jersey, ex rel. Simpson v. HQRC Management Services, LLC, et al. The claims resolved by the settlement are allegations only and there has been no determination of liability.
Philadelphia Man Admits Drug Trafficking Conspiracy Involving over 100 Kilograms of CocaineRead the Press Release
CAMDEN, N.J. – A Philadelphia man today admitted conspiring to distribute five kilograms or more of cocaine as part of a drug-trafficking organization operating in Philadelphia and southern New Jersey, U.S. Attorney Philip R. Sellinger announced.
Iran Soler, 43, Philadelphia, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of conspiring to distribute five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
Soler and his conspirators traveled to San Juan, Puerto Rico, on commercial flights from Philadelphia International Airport on numerous occasions between March 2019 and August 2020. They purchased multi-kilogram quantities of cocaine from wholesale drug suppliers based in the San Juan area in exchange for cash payments. Soler and the conspirators then shipped the kilograms of cocaine by overnight delivery from U.S. Post Offices in San Juan to various addresses in Philadelphia and southern New Jersey, where a conspirator, Jose Gonzalez, resold the cocaine to other drug dealers in the Philadelphia area for a profit. Soler and the other conspirators purchased and shipped over 100 kilograms of cocaine to Philadelphia and southern New Jersey between March 2019 and August 2020.
The drug-trafficking conspiracy charge carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a maximum fine of $10 million. Soler is scheduled to be sentenced on Feb. 6, 2023.
Gonzalez previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced Jan. 30, 2023.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Raimundo Marrero; agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the leadership of Special Agent in Charge Matthew Modafferi; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; troopers assigned to the New Jersey State Police Strategic Investigations Unit South, under the direction of Col. Patrick J. Callahan; and officers and detectives of the Philadelphia Police Department, under the direction of Police Commissioner Daniel Outlaw, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Monmouth County Man Admits Corrupt Interference with Administration of Internal Revenue LawsRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man today admitted his corrupt interference with the administration of the Internal Revenue laws, U.S. Attorney Philip R. Sellinger announced.
Thomas Bertoli, 65, of Matawan, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to one count of an indictment charging him with corrupt interference with the administration of the Internal Revenue laws.
According to documents filed in this case and statements made in court:
Bertoli operated the following businesses: The Doormen Inc.; City Street Associates LLC aka CSA LLC; and Urban Logistics LLC (Urban Logistics). Bertoli, individually and through the Bertoli companies, obtained payments from clients for services provided, including payments from developers and construction firms for expediting services on real estate development and construction projects, primarily in Jersey City, New Jersey, and payments from political campaigns for political consulting services in New Jersey. Expediting in the construction industry typically refers to facilitating the acquisition of building permits and other government agency approvals required for the completion of real estate development and construction projects.
On June 5, 2014, Bertoli was interviewed by an IRS collections officer at Bertoli’s residence. Bertoli had not filed tax returns for calendar years 2009 to 2013, despite earning income during that period and owing a total of $195,889 in taxes for those calendar years. At that time, Bertoli was earning income principally from his operation of Urban Logistics, a company which he owned and for which he was the sole employee. Bertoli falsely claimed, however, that he was employed as a construction worker at a construction company to conceal the existence of Urban Logistics and the income that he earned from his operation of Urban Logistics.
After the June 2014 interview until November 2015, Bertoli was aware of certain actions taken by the IRS to collect taxes that he owed, including applying levies and requiring that he make an estimated tax payment for calendar 2014. In communications with the IRS during this period, Bertoli continued to purposefully conceal the existence of Urban Logistics and that he was earning substantial income from his operation of Urban Logistics. Bertoli admitted that, by his concealment of the existence of Urban Logistics from the IRS, he acted knowingly and corruptly, that is, with the purpose to obtain an unlawful benefit for himself by obstructing and impeding the collections activity of the IRS.
The charge of corrupt interference with the administration of the Internal Revenue laws carries a maximum potential penalty of three years in prison and a maximum $250,000 fine. If accepted by the court at the time of sentencing, the parties’ plea agreement provides that Bertoli will be sentenced to up to 18 months in prison and make full restitution of $1.17 million to the IRS for unpaid taxes for calendar years 2009 to 2016. Sentencing is scheduled for Feb. 7, 2023.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jihee G. Suh, Deputy Chief of the Special Prosecutions Division, and Assistant U.S. Attorney J Fortier Imbert of the Special Prosecutions Division.
Former Medical Assistant Sentenced to Two Years in Prison for Role in Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A former medical assistant was sentenced today to 24 months in prison for defrauding New Jersey state and local health benefits programs and other insurers of more than $1 million by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Aaron Jones, 28, of Willingboro, New Jersey, pleaded guilty before Judge Robert B. Kugler on March 10, 2022, to one count of conspiracy to commit health care fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Jones was previously employed by a medical practice in Stratford, New Jersey, that was owned by Dr. Michael Goldis. Jones was paid by a pharmaceutical sales representative, Richard Zappala, to identify patients at the medical practice who had insurance plans that would cover the compound prescription medications. Jones forged the signature of Goldis on numerous compound medication prescriptions, including on prescriptions for individuals who were not Goldis’ patients. Jones also arranged for Goldis to sign prescriptions for the compound medications, regardless of whether or not the individuals receiving the prescriptions had a medical necessity for them. Jones received approximately $10,000 in cash for his role in the scheme.
Goldis pleaded guilty in June 2020 to four counts of making false statements relating to health care matters; Zappala pleaded guilty in September 2017 to conspiracy to commit health care fraud. Both await sentencing.
In addition to the prison term, Judge Kugler sentenced Jones to three years of supervised release and ordered him to pay $1.04 million in restitution.
Attorney for the United States Khanna credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the Criminal Division and R. David Walk, Jr., Chief of the Opioid Abuse Prevention and Enforcement Unit.
Chief Engineer of Towing Vessel Admits Negligently Discharging Oil into Kill Van KullRead the Press Release
NEWARK, N.J. – The chief engineer of a towing vessel today admitted his role in negligently discharging marine diesel fuel oil into the Kill Van Kull, U.S. Attorney Philip R. Sellinger announced.
Michael Brown, 67, of Kingston, Tennessee, pleaded guilty before U.S. Magistrate Judge Leda D. Wettre to an information charging him with violating the Clean Water Act by negligently discharging marine diesel fuel oil while refueling his towing vessel at the International Matex Tank Terminal’s Mobil Pier in Bayonne, New Jersey.
According to documents filed in this case and statements made in court:
On Sept. 12, 2016, Brown failed to exercise due care in conducting the transfer of fuel oil to the towing vessel, resulting in the discharge of hundreds of gallons of fuel oil into the Kill Van Kull. Brown also admitted that, in response to questions by the U.S. Coast Guard, he failed to disclose that the origin of the spill was the towing vessel.
The Clean Water Act, as amended by the Oil Pollution Act of 1990, makes it a crime for a person to negligently discharge oil into or upon the navigable waters of the United States in such quantities as may be harmful. The Kill Van Kull, a tidal straight that connects Newark Bay with Upper New York Bay, is a navigable water of the United States.
Brown has agreed, as part of his plea agreement, to pay a fine of $4,000 to the Oil Spill Liability Trust Fund.
The charge to which Brown pleaded guilty carries a maximum penalty of one year imprisonment and a maximum fine equal to the greatest of $100,000 or twice the gross gain or loss resulting from the offense. Sentencing is scheduled for Feb. 7, 2023.
U.S. Attorney Sellinger credited special agents of the U.S. Coast Guard Investigative Service under the direction of Assistant Special Agent in Charge Damon Youmans with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kathleen P. O'Leary of the U.S. Attorney’s Office Economic Crimes Unit.
Atlantic County Man Admits Role in Drug Distribution SchemeRead the Press Release
CAMDEN, N.J. – Atlantic County man today admitted his role in a heroin distribution scheme, U.S. Attorney Philip R. Sellinger announced.
Christopher Gonzalez, 38, of Egg Harbor Township, pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute over one kilogram of heroin and possession with intent to distribute over one kilogram of heroin.
According to documents filed in this case and statements made in court:
On July 12, 2021, a search warrant was executed at codefendant Ricardo Clavijo’s residence, where law enforcement authorities encountered Clavijo and Christopher Gonzalez, Clavijo’s brother. Authorities found 4.3 kilograms of heroin, 5.5 kilograms of fentanyl, 10.8 kilograms of cocaine, drug packaging materials and equipment, and a money counting machine. Some of the heroin was already packaged in tens of thousands of individual doses, ready for street-level distribution.
The counts to which Gonzalez pleaded guilty both carry a mandatory minimum term of 10 years in prison, a maximum term of life in prison, and a maximum fine of $10 million, or twice the gross gain or loss caused by the offense. Sentencing is scheduled for Feb. 9, 2023.
Ricardo Clavijo has already pleaded guilty for his role in the conspiracy.
U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, Newark Division, DEA Atlantic County HIDTA Task Force, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s guilty plea. He also thanked the Atlantic County Prosecutor’s Office and the Egg Harbor Township Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
Former Associate Director Sentenced to 27 Months in Prison for Embezzling Hundreds of Thousands of Dollars from Global Maritime Service Group and Tax ChargeRead the Press Release
NEWARK, N.J. – A former associate director of a global maritime service group was sentenced today to 27 months in prison for embezzling hundreds of thousands of dollars from the company and failing to pay over hundreds of thousands in federal payroll taxes, U.S. Attorney Philip R. Sellinger announced.
David Buckingham, 38, of Elizabeth, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to a superseding information charging him with one count of wire fraud and one count of failure to collect, account for, and pay over federal payroll taxes. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Buckingham held the title of associate director and head of the New York office of a global maritime service group headquartered in London, England. From 2016 through 2018, Buckingham used his position and access to the company’s bank accounts to embezzle hundreds of thousands of dollars by writing checks to himself or to “cash.” Buckingham falsified the company’s books and records in an effort to make the payments appear to be legitimate business expenses and to cover up his fraud. From February 2016 to October 2018, Buckingham also willfully failed to account for and pay over to the IRS payroll taxes for the employees of the company in the amount of $277,051.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division, with the investigation leading to today’s sentencing.
In addition to the prison term, Judge Hayden sentenced Buckingham to three years of supervised release and ordered him to pay restitution in the amount of $356,725 and forfeiture in the amount of $356,725.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Emily Sherman Esq., Assistant Federal Public Defender, Newark
District of New Jersey Takes Part in Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
NEWARK, N.J. – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” Attorney General Merrick B. Garland said. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“Preying on our older citizens, who are often vulnerable to these types of fraud scams, is something our office takes especially seriously,” U.S. Attorney Sellinger said. “As scammers continue to concoct new ways to try and trick our parents and grandparents out of their money, we will be there with our law enforcement partners to stop them, and to always try to return stolen funds to the victims.”
From September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
This past year, the District of New Jersey brought charges against multiple defendants for devising and carrying out fraudulent schemes that specifically targeted elderly victims. This included seven leaders of the Cape Town Zone of the Neo Black Movement of Africa, also known as “Black Axe,” and an eighth man who conspired with a Black Axe leader, all of whom were charged with multiple federal crimes relating to internet-based romance scams and advance fee schemes they perpetrated from South Africa. The District also obtained guilty pleas from multiple defendants whose lottery sweepstakes scams and romance scams had targeted elderly victims in New Jersey.
As part of the District of New Jersey’s elder fraud efforts, the Office engages in outreach to raise awareness about scams and exploitation and preventing victimization. This year, these outreach efforts included a presentation to seniors at the Springfield, New Jersey community center on April 28, 2022, entitled “Identity Theft & Fraud Prevention,” in cooperation with representatives from the Union County Prosecutor’s Office and the Springfield, New Jersey, Police Department.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims, and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 160,000 of those victims cashed checks totaling $62 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-866 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Philadelphia Man Sentenced to Three Years of Probation for Role in Scheme to Launder Money, Defraud Internet DonorsRead the Press Release
CAMDEN, N.J. – A Philadelphia man was sentenced today to 36 months of probation for his role in a GoFundMe scam that gained nationwide attention, U.S. Attorney Philip R. Sellinger announced.
Johnny Bobbitt, 39, previously pleaded guilty to an information charging him with one count of conspiracy to commit money laundering. U.S. District Judge Noel L. Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In November 2017, Katelyn McClure, 32, and Mark D’Amico, 43, both of Bordentown, New Jersey, allegedly created a crowd-source funding page on GoFundMe’s website titled “Paying It Forward.” The campaign solicited donations from the public purportedly for the benefit of Bobbitt, a homeless veteran. McClure and D’Amico posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a “good Samaritan” and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited to get Bobbitt off the streets and provide him with living expenses, setting a goal of $10,000.
In reality, McClure never ran out of gas and Bobbitt never spent his last $20 for her. D’Amico and McClure allegedly conspired to create the false story to obtain money from donors. The story was quickly picked up by local and national media outlets, went viral and raised approximately $400,000 from more than 14,000 donors in less than three weeks.
The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money allegedly was quickly spent by D’Amico and McClure on personal expenses over the next three months, including significant amounts on D’Amico’s gambling, vacations, a BMW automobile, clothing, expensive handbags and other personal items and expenses.
In mid-November of 2017, when the donations had reached approximately $1,500, D’Amico and McClure told Bobbitt about the campaign and the false gas story. In December of 2017, after setting up a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.
In addition the probationary term, Judge Hillman ordered Bobbitt to pay $25,000 in restitution. McClure and D’Amico previously pleaded guilty to their roles in the scheme. D’Amico was sentenced in April 2022 to 27 months in prison; McClure was sentenced in July 2022 to one year and one day in prison.
U.S. Attorney Sellinger credited assistant prosecutors and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and officers of the Florence Township Police Department with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney=s Office Criminal Division in Camden.
Medical Sales Representative Sentenced to 14 Years in Prison for Role in Multimillion-Dollar Health Care Fraud, Wire Fraud, Anti-Kickback Statute, and Travel Act ConspiraciesRead the Press Release
CAMDEN, N.J. – A medical sales representative was sentenced today to 168 months in prison for defrauding federal, state, and private health insurance plans out of more than $4.6 million, Attorney for the United States Vikas Khanna announced.
Steven Monaco, 40, of Sewell, New Jersey, was convicted in April 2022 of one count of conspiracy to commit health care fraud and wire fraud, eight counts of health care fraud, eight counts of wire fraud, and one count of conspiracy to violate the Anti-Kickback Statute and the Travel Act, following a nine-day trial before U.S. District Judge Robert B. Kugler, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
Monaco was a leader of two related fraud schemes that resulted in millions of dollars of loss to public health insurance plans. In the first scheme, Monaco, as a sales representative for a medical diagnostic laboratory, orchestrated a kickback scheme with a doctor, Daniel Oswari. Monaco arranged for Oswari’s medical assistant to be placed on the payroll of the laboratory while continuing to work as a medical assistant for Oswari’s practice. In exchange, Oswari referred all his lab work to the laboratory for testing between late 2013 and 2016, and Monaco received $36,000 in commissions from the laboratory.
In the second fraud scheme, Monaco and his conspirator, pharmaceutical sales representative Richard Zappala, discovered that certain insurance plans – including New Jersey state and local government plans – paid for very expensive compounded prescription medications between 2014 and 2016. Monaco and Zappala organized a scheme in which they received a percentage of the insurance reimbursement for compounded medication prescriptions that they arranged. Monaco and Zappala approached medical professionals and paid them to sign medically unnecessary prescriptions for the compounded medications. Monaco paid Oswari and his staff to identify and prescribe the compound medications to patients of Oswari’s practice with the requisite insurance plans, as well as other people that Oswari did not medically evaluate. Monaco also arranged for other medical professionals – including Dr. Michael Goldis and his cousin, physician’s assistant Jason Chacker – to sign medically unnecessary prescriptions for members of Monaco’s family and others whom these medical professionals did not examine. Monaco directly compensated Chacker with money and tickets to sporting events, and Zappala paid Goldis cash to sign the medically unnecessary prescriptions for members of Monaco’s family and others. Monaco also directly paid individuals who had coverage under the public insurance plans and agreed to receive prescriptions for the compounded medications. As a result of this scheme, Monaco received approximately $350,000 and caused a loss of over $4.6 million to the insurance plans.
Oswari, Zappala, Goldis and Chacker all have previously pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
In addition to the prison term, Judge Kugler sentenced Monaco to three years of supervised release and ordered him to pay $4.69 million in restitution.
Attorney for the United States Vikas Khanna credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the Criminal Division and R. David Walk Jr., Chief of the Opioid Abuse Prevention and Enforcement Unit.
Justice Department Secures Agreement to Protect Access to Reproductive Health ServicesRead the Press Release
NEWARK, N.J. – The Justice Department announced an agreement today with a former Bergen County, New Jersey, man to resolve a federal lawsuit for his alleged violations of the Freedom of Access to Clinic Entrances (FACE) Act. The FACE Act protects the right to access and provide reproductive health services, including abortion.
The FACE Act prohibits anyone from using force, threats of force or physical obstruction against any person seeking or providing reproductive health services. The complaint filed against Daniel Courney, 38, formerly of Bergenfield, New Jersey, alleges that he violated the FACE Act on two occasions in October 2021. In both instances, according to the complaint, Courney used physical force against a patient escort at a health clinic in Englewood, New Jersey, to attempt to prevent the volunteer from assisting individuals seeking the clinic’s services.
The proposed consent decree, which still must be approved by the U.S. District Court for the District of New Jersey, orders Courney to stay away from the clinic permanently, prohibits future FACE Act violations and requires Courney to pay a monetary penalty.
“Access to reproductive healthcare is a fundamental right,” U.S. Attorney Philip R. Sellinger for the District of New Jersey said. “Individuals must be able to access facilities like the Englewood clinic to make decisions about their own bodies, health and futures, in consultation with health care providers. Those providers are entitled to offer services free from the threat of violence against them. Our office remains committed to the enforcement of the FACE Act throughout the District of New Jersey to protect these important rights. We encourage anyone with information about potential FACE Act violations to contact our office.”
“Reproductive health care providers must be free to carry out their work free from interference or intimidation,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “The Justice Department is committed to enforcing federal law to protect providers and all people seeking access to reproductive health care across our nation.”
The Justice Department is committed to the protection of reproductive rights and recently announced the formation of its Reproductive Rights Task Force to protect those rights nationwide.
Anyone in imminent danger should call 911 or local police. Contact your local FBI field office by calling 1-800-CALL-FBI (or 1-800-225-5324) or via tips.fbi.gov.
Anyone in the District of New Jersey may report potential FACE Act violations or other threats to reproductive freedom by calling the Civil Rights Hotline, 855-281-3339, or by submitting an online complaint here.
Senior Civil Rights Counsel R. Joseph Gribko and Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Office’s Civil Rights Division are prosecuting the case.
Passaic County Man Charged with Possession of Machinegun and Felon in Possession of AmmunitionRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man made his initial court appearance today on charges of possessing a machinegun and being a felon in possession of a weapon, U.S. Attorney Philip R. Sellinger announced.
Edward Austeri, 37, of Bloomingdale, New Jersey, was arrested by local authorities on April 26, 2022, and charged with state offenses. He is now charged by federal criminal complaint with one count of being a convicted felon in possession of ammunition and one count of possession of a machinegun. Austeri appeared today by videoconference before U.S. Magistrate Judge Leda Dunn Wettre, and was detained without bail.
According to documents filed in this case and statements made in court:
On April 22, 2022, law enforcement officers responded to a 911 call reporting a domestic violence incident at a residence in Bloomingdale. The reporting male party advised that he was threatened with an AK-47 by a female family member, later identified as Austeri’s girlfriend, who was staying in his home with Austeri. Upon their arrival, law enforcement officers were directed by the homeowner to a long black firearm, later determined to be a fully automatic, AK-47 style, privately manufactured firearm with no serial number and an attached large capacity magazine containing 37 rounds of 7.62 x 39mm ammunition. Officers also recovered an additional privately manufactured firearm as well as several firearm magazines and assorted ammunition belonging to Austeri. Austeri shipped the firearms to himself from a previous address in Oregon to the residence in Bloomingdale.
The felon in possession of ammunition and possession of a machinegun charges each carry a maximum penalty of 10 years in prison and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; officers of the Bloomingdale Police Department, under the direction of Chief Joseph Borell; and detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney John Mezzanotte of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Admits Role in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A manager for a drug trafficking organization that purchased over 100 kilograms of cocaine in Puerto Rico and shipped the kilograms to residences in Philadelphia, Pennsylvania, and southern New Jersey today admitted his role in the conspiracy, U.S. Attorney Philip R. Sellinger announced.
Jose Gonzalez, 50, Philadelphia, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of conspiring to distribute five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
From March 2019 to August 2020, Gonzalez and other conspirators traveled on commercial flights from Philadelphia International Airport to San Juan, Puerto Rico, on numerous occasions. They purchased multi-kilogram quantities of cocaine from wholesale drug suppliers based in the San Juan area in exchange for cash payments. Gonzalez and the other conspirators then shipped the kilograms of cocaine by overnight delivery from U.S. Post Offices in San Juan to addresses in Philadelphia and southern New Jersey. Gonzalez resold the kilograms to other drug dealers in the Philadelphia area for a profit. Gonzalez admitted that he had a management role in the conspiracy, and that he and the other conspirators purchased and shipped over 100 kilograms of cocaine.
When Gonzalez was arrested in August 2020, agents seized over $120,000 in cash during a search of his residence in Philadelphia and a 9mm handgun from an auto garage that Gonzalez operated in Philadelphia. As part of his plea agreement, Gonzalez agreed to the forfeiture of the U.S. currency and the 9mm handgun, as well as the forfeiture of a Dodge Ram pickup truck that was used in connection with the drug trafficking conspiracy.
The drug-trafficking conspiracy charge carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a maximum fine of $10 million. Sentencing is scheduled for Jan. 30, 2023.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Raimundo Marrero; agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the leadership of Special Agent in Charge Matthew Modafferi; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; troopers assigned to the New Jersey State Police Strategic Investigations Unit South, under the direction of Col. Patrick J. Callahan; and officers and detectives of the Philadelphia Police Department, under the direction of Police Commissioner Daniel Outlaw, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Justice Department Secures Agreement with Lakeland Bank to Address Discriminatory RedliningRead the Press Release
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NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and Justice Department announced today an agreement to resolve allegations that Lakeland Bank engaged in a pattern or practice of lending discrimination by “redlining” in the Newark metropolitan area, including neighborhoods in Essex, Somerset and Union counties in New Jersey. This resolution is part of the Justice Department’s Combatting Redlining Initiative and represents the third-largest redlining settlement in department history.
“Financial institutions that refuse to provide mortgage lending services to communities of color not only contribute to the persistent racial wealth gap that exists in this country, but also violate federal law,” Attorney General Merrick B. Garland said. “The agreement with Lakeland announced today represents the Justice Department’s continued commitment to addressing modern-day redlining, and to ensuring that all Americans have equal opportunity to obtain credit, no matter their race or national origin.”
“Redlining creates an unequal playing field that unfairly prevents many persons of color from achieving the dream of home ownership, and this type of systemic and intentional discrimination cannot and will not be tolerated,” U.S. Attorney Philip R. Sellinger said. “It is wholly unacceptable that redlining persists into the 21st Century, and this case demonstrates our commitment to combatting redlining and hold banks and others accountable when they engage in unlawful discrimination. Through this agreement, we are taking a major step forward by removing unlawful and discriminatory barriers in residential mortgage lending.”
“Ending redlining is a critical step in our work to close the widening gaps in wealth between communities of color and others,” Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division said. “This settlement demonstrates our firm commitment to combatting modern day redlining and holding banks and other lenders accountable when they deny people of color equal access to lending opportunities. Through this agreement, we are sending a strong message to the financial industry that we will not stand for discriminatory and unlawful barriers in residential mortgage lending.”
“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of the residents in those communities. The complaint filed in federal court today alleges that, from at least 2015 to 2021, Lakeland failed to provide mortgage lending services to Black and Hispanic neighborhoods in the Newark metropolitan area, that all its branches were located in majority-white neighborhoods, and that its loan officers did not serve the credit needs of Black and Hispanic neighborhoods in and around Newark.
Under the proposed consent order, which is subject to court approval and was filed today in the U.S. District Court for the District of New Jersey along with a complaint, Lakeland has agreed to do the following:
- Invest at least $12 million in a loan subsidy fund for residents of Black and Hispanic neighborhoods in the Newark area; $750,000 for advertising, outreach and consumer education; and $400,000 for development of community partnerships to provide services that increase access to residential mortgage credit.
- Open two new branches in neighborhoods of color, including at least one in the city of Newark; ensure at least four mortgage loan officers are dedicated to serving all neighborhoods in and around Newark; and employ a full-time Community Development Officer who will oversee the continued development of lending in neighborhoods of color in the Newark area.
- Maintain an expanded Community Reinvestment Act Assessment Area that includes Essex, Somerset and Union counties.
Lakeland has agreed to settle this matter without contested litigation and worked cooperatively with the department to remedy the redlining concerns that were identified.
In October 2021, Attorney General Merrick B. Garland launched the Justice Department’s Combatting Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners and its partners in state attorneys general offices. Since the initiative was launched, the department has announced four redlining cases and settlements with a combined $38 million in relief for communities that have been the victims of lending discrimination. This includes the $20 million settlement with Trident Mortgage Company—the second largest settlement in Justice Department history.
Additional information about the section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online. Individuals may also report civil rights violations through the https://www.justice.gov/usao-nj/civil-rights-enforcement or may call the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339.
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Civil Rights Division, Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Office’s Civil Rights Division, and Trial Attorney Jennifer Slagle Peck, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.
Former NHA Director of Information Technology Sentenced to Two Years in Prison for Embezzling over $590,000 Worth of Electronic DevicesRead the Press Release
NEWARK, N.J. – Newark Housing Authority (NHA)’s former director of information technology was sentenced today to 24 months in prison for using his position to embezzle NHA funds to purchase cellular telephones and other electronic devices, U.S. Attorney Philip R. Sellinger announced.
Venancio Diaz, 57, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Brian Martinotti in Newark federal court to an information charging him with committing theft from an agency receiving federal funds. Judge Martinotti imposed sentence today by videoconference.
According to documents filed in this case and statements made in court:
From December 2013 to Aug. 10, 2021, Diaz bought, on behalf of NHA and using NHA funds, 1,509 electronic devices, primarily cellular telephones and tablets, from a telecommunications company. Diaz then caused those devices to be activated on NHA’s account on the company’s network for a short period of time – often only days or weeks. After the brief period of activation ended, Diaz posed as the owner of the devices and sold them to two different online electronics resale marketplaces. Diaz directed all the proceeds of the sales – a total of $594,425 – to his own bank accounts and kept the money for his own personal use.
In addition to the prison term, Judge Martinotti sentenced Diaz to three years of supervised release and ordered him to pay $594,425 in restitution to the NHA. Diaz also previously consented to a $594,425 money judgment, forfeiting the monies he obtained as a result of his illegal scheme, and also agreed to forfeit electronic devices belonging to NHA that were seized by law enforcement or otherwise in his possession, including 27 cellular telephones.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Housing and Urban Development – Office of the Inspector General, under the direction of Special Agent in Charge Christina D. Scaringi in Newark; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the IRS-Criminal Investigations for its assistance.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark.
Philadelphia Man Admits Role in Salem County Bank RobberyRead the Press Release
CAMDEN, N.J. – A Philadelphia man today admitted serving as the get-away driver to two Pennsylvania men who robbed a bank in Carneys Point, New Jersey, in July 2018, while brandishing a firearm, U.S. Attorney Philip R. Sellinger announced.
Kenneth S. Thompson, 43, of Philadelphia, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an indictment charging him with bank robbery.
According to documents filed in this case and statements made in court:
Thompson admitted that on July 30, 2018, he and co-defendants Antwaine Thomas and Kareem Moore drove from Philadelphia to Salem County. They agreed that Thomas and Moore would rob the Fulton Bank in Carneys Point and that Thompson would assist them in escaping with the stolen proceeds by serving as the get-away driver. Thomas and Moore walked into the bank and demanded cash from numerous bank employees while pointing a loaded handgun at them. Thomas and Moore took the cash from the bank and fled. In the meantime, Thompson drove past the bank multiple times in an effort to abscond with his confederates, but was thwarted when responding officers arrived at the bank within minutes of the robbery. Thompson fled in the get-away car.
The count of bank robbery to which Thompson pleaded guilty is punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Feb. 1, 2023.
Thomas and Moore previously pleaded guilty to armed bank robbery and brandishing a firearm during a bank robbery, and on May 11, 2021, Judge Rodriguez sentenced them to 272 months’ imprisonment and 168 months’ imprisonment, respectively.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Salem County Prosecutor’s Office, under the direction of Salem County Prosecutor Kristin J. Telsey; officers of the Carneys Point Police Department, under the direction of Chief Dale VanNamee; and officers of the Penns Grove Police Department, under the direction of Police Director Richard Rivera, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the U.S. Attorney’s Office in Camden.
Massachusetts Company Enters Settlement Agreement to Resolve Claims of Medicaid Over-BillingRead the Press Release
NEWARK, N.J. – A Boston, Massachusetts, company entered into a settlement agreement with the United States to resolve allegations that it caused improper claims for payment to be made to the U.S. Department of Health & Human Services, Centers for Medicare and Medicaid Services (CMS), U.S. Attorney Philip R. Sellinger announced today.
The investigation of Public Consulting Group LLC (PCG) was initiated through the filing of a complaint under the whistleblower provision of the False Claims Act. That complaint, which was unsealed on Sept. 26, 2022, alleged that PCG was hired by the state of New Jersey in 2005 to administer New Jersey’s “Special Education Medicaid Initiative,” or SEMI program. Under the SEMI program, the state of New Jersey and local school districts could obtain federal funding for providing eligible medical services to Medicaid-eligible students. The complaint alleged that PCG caused local school districts to submit claims to CMS for evaluation services that PCG knew or should have known were not covered by Medicaid.
The settlement agreement resolves common law claims by the United States against PCG for payment by mistake, arising from evaluation service claims submitted by or for New Jersey school districts under the SEMI program from April 23, 2006, through the date of settlement. PCG will pay $2.5 million to the United States. Once PCG makes the payment, the case will be dismissed. The relator, or whistleblower, who originally filed suit on behalf of the United States, will receive 21 percent of the settlement amount recovered by the United States.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, (HHS-OIG) Office of Investigations-New Jersey Field Office, under the Direction of Special Agent in Charge Scott J. Lampert, and auditors working with HHS-OIG Office of Audit Services, under the direction of Regional Inspector General for Audit Services Brenda M. Tierney, with the investigation leading to the settlement.
The civil settlement agreement, by its terms, is neither an admission of liability by PCG nor a concession by the United States that its claims are not well founded.
The government is represented by Deputy Chief David E. Dauenheimer and Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.
The qui tam case is captioned United States ex rel. Shane Shackford v. Public Consulting Group, Inc., et al., Civil Action No. 12-2437.
Three Men Charged with International Market Manipulation SchemeRead the Press Release
NEWARK, N.J. – An indictment unsealed today charges three men with orchestrating a large-scale market manipulation scheme related to two publicly traded companies, U.S. Attorney Philip R. Sellinger announced.
James Patten, 63, of Winston-Salem, North Carolina; Peter Coker Sr., 80, of Chapel Hill, North Carolina; and Peter Coker Jr., 53, of Hong Kong, China, are each charged in a 12-count indictment with conspiracy to commit securities fraud, securities fraud, and conspiracy to manipulate securities prices. Patten is also charged with four counts of manipulation of securities, four counts of wire fraud, and one count of money laundering.
Patten and Coker Sr. were arrested today and are scheduled to appear before U.S. Magistrate Judge L. Patrick Auld in federal court in the Middle District of North Carolina. They will appear in court in the District of New Jersey at a date to be determined. Coker Jr. remains at large.
According to documents filed in this case and statements made in court:
From 2014 through September 2022, Patten, Coker Sr., and Coker Jr. conspired to enrich themselves through a scheme to manipulate securities prices via a pattern of coordinated trading, which injected inaccurate information into the marketplace, creating false impressions of supply and demand for these securities.
As part of the securities fraud scheme, the defendants targeted two publicly traded companies – Hometown International Inc. and E-Waste Corp. – which were both traded on the OTC Link Alternative Trading System, also known as the OTC Marketplace. The OTC Marketplace is an alternative trading system that contains three tiers of markets, which are largely based on the quality and quantity of the listed companies’ information and disclosures.
Patten, Coker Sr., and Coker Jr. took steps to gain control of both entities’ management and stock with the ultimate intention of entering reverse mergers, a transaction through which an existing public company merges with a private operating company. A successful reverse merger would allow the defendants to sell shares of each entity at a significant profit.
In or around 2014, two New Jersey residents began the process of opening a local deli in Paulsboro, New Jersey. One of the individuals discussed his interest in opening the deli with Patten, a long-time friend, who suggested the creation of Hometown International, an umbrella corporation, under which the deli would operate as a wholly owned subsidiary. Unbeknownst to the deli owners, almost immediately after Hometown International was formed, Patten and his associates began positioning Hometown International as a vehicle for a reverse merger that would yield substantial profit to them.
Around October 2019, Hometown International began selling shares on the OTC Marketplace. Shortly thereafter, Patten, Coker Sr., And Coker Jr. undertook a calculated scheme to gain control of Hometown International’s management and its shares from the deli owners. Patten, Coker Sr., and Coker Jr. took similar actions to gain control of E-Waste Corporation’s stock and management.
Once the defendants gained control of Hometown International and E-Waste’s shares, they arranged for the transfer of millions of shares of stock to a number of nominee entities, including entities controlled by Coker Jr., in an effort to mask their control of the shares.
In addition, the defendants transferred shares to family members, friends, and associates and gained control over their trading accounts by obtaining their log-in information in order to conceal the defendants’ involvement. The defendants then used those accounts to commit a number of coordinated trading events, often referred to as match and wash trades, to trade in Hometown International and E-Waste Corp.’s stock on both sides of the transaction.
These tactics artificially inflated the price of Hometown International and E-Waste’s stock by giving the false impression that there was a genuine market interest in the stock. Their scheme had the ultimate impact of artificially inflating Hometown International’s stock by approximately 939 percent and E-Waste’s stock by approximately 19,900 percent.
The securities fraud and manipulation of securities prices counts each carry a maximum penalty of 20 years in prison and a $5 million fine. The wire fraud and money laundering counts are punishable by a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The counts of conspiracy to commit securities fraud and conspiracy to manipulate securities prices both carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense whichever is greatest.
In a separate civil action, the Securities and Exchange Commission today filed a complaint in the District of New Jersey charging Patten, Coker Sr., and Coker Jr. based on the allegations underlying the market manipulation scheme.
U.S. Attorney Sellinger credited special agents of the FBI’s Philadelphia Division, under the direction of Special Agent in Charge Jacqueline Maguire, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation. He also thanked special agents from FBI Charlotte, FBI Los Angeles, FBI San Francisco, FBI Denver, and FBI Knoxville, for their assistance.
The government is represented by Assistant U.S. Attorneys Lauren E. Repole, Chief of the General Crimes Unit, and Shawn P. Barnes, of the Economic Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Somerset County Woman Admits $1 Million Paycheck Protection Program and Economic Injury Disaster Loan Fraud SchemeRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, woman today admitted fraudulently obtaining over $1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced.
Nivah Garcis, 51, of North Plainfield, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging her with one count of conspiracy to commit bank fraud, three counts of wire fraud, and one count of money laundering.
According to documents filed in this case and statements made in court:
Garcis conspired with at least one individual to submit two fraudulent PPP loan applications to a lender on behalf of two purported businesses that she controlled, and further submitted three fraudulent EIDL loan applications to the U.S. Small Business Administration (SBA) on behalf of these businesses and another business that she owned. She then engaged in financial transactions with the loan proceeds, including for the purchase of property.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The applications Garcis submitted each contained fraudulent representations to the lender, a Federal Home Loan Bank member, and the SBA, including bogus federal tax documents purportedly from the IRS. Garcis 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 Garcis submitted in support of her loan applications were ever in fact filed with the IRS. Based on Garcis’ misrepresentations, her loan applications for her purported businesses were approved for approximately $1.05 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Garcis then used the proceeds to purchase property and 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 counts of wire fraud each carry a maximum penalty of 20 years in prison and a maximum fine of $250,000. 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 Jan. 31, 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 the 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 the 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 Acting Special Agent in Charge Richard. W. Reinhold, in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano and David E. Dauenheimer 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 County Man Sentenced to 130 Months in Prison for Fentanyl Trafficking and Illegally Possessing FirearmRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man with four prior felony convictions was sentenced to 130 months in prison for possessing with intent to distribute fentanyl and to illegally possessing a firearm, U.S. Attorney Philip R. Sellinger announced.
Tyquan Burrell, 30, of Camden, previously pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler in Camden federal court to two counts of an indictment charging him with possession with intent to distribute more than 400 grams of fentanyl and illegal possession of a firearm by a convicted felon. Judge Kugler imposed the sentence on Sept. 22, 2022, in Camden federal court.
According to documents filed in this case and statements made in court:
On Oct. 1, 2020, law enforcement officers executing a search warrant at Burrell’s residence found 2,521 wax folds and three sandwich-sized clear plastic bags containing more than 300 grams of fentanyl, approximately $34,000 in U.S. currency, and a loaded handgun in a bedroom used by Burrell. That same day, Burrell was arrested in Camden County, New Jersey. A search incident to arrest found him to be in possession of 418 wax folds containing fentanyl.
In addition to the prison term, Judge Kugler sentenced Burrell to five years of supervised release.
This prosecution is part of the Violent Crime Initiative (VCI) in Camden. The Camden VCI was formed in January of 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Camden County Prosecutor’s Office, and the Camden County Police Department for purpose of combatting violent crime in and around the Camden area. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to investigate and prosecute violent offenders who endanger the safety of the community. The VCI includes the U.S. Attorney’s Office, the Camden County Prosecutor’s Office, the Camden County Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the U.S. Marshals, The U.S. Probation Office, the Camden County Sheriff’s Office, the New Jersey State Parole Board, the New Jersey State Police, the Rutgers University Police Department, and the Liberty Mid-Atlantic High Intensity Drug Trafficking Area (HIDTA) program.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Richard W. Reinhold; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay; the Gloucester Township Police Department, under the direction of Chief David J. Harkins; the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; and the Winslow Township Police Department under Chief George M. Smith, with the investigation leading to today’s sentencing. He also thanked the Camden County Sherriff’s Office, under the direction of Sherriff Gilbert L. “Whip” Wilson; special agents of the ATF, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; and officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan, for their assistance with the case.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, Camden
Two New York Men Charged with Three Gunpoint Robberies and with Conspiracy to Commit Robberies in New Jersey, New York and PennsylvaniaRead the Press Release
NEWARK, N.J. – Two Brooklyn, New York men are charged with three gunpoint robberies of check cashing locations in different parts of New Jersey in 2021 and 2022 and with conspiracy to commit robberies in New Jersey, New York and Pennsylvania, U.S. Attorney Philip R. Sellinger announced.
Ramel Harris, 40, of Brooklyn, and Neville Brown, 38, of Brooklyn, are charged by complaint with one count of Conspiracy to Commit Hobbs Act Robbery, three counts of Hobbs Act Robbery, and one count of Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence. Harris and Brown each made their initial appearance on September 6, 2022 before U.S. Magistrate Judge James B. Clark, III in Newark federal court and were detained.
According to documents filed in this case and statements made in court:
On several dates between January 2021 and January 2022, two individuals, later identified as Harris and Brown, attempted to rob a check cashing location in Nanuet, New York, and thereafter successfully robbed three check cashing locations in different parts of New Jersey while brandishing a firearm and using zip ties to restrain female employees at each location. During those robberies, Harris and Brown stole over $578,000.
During the subsequent investigation, law enforcement learned that the conspirators surveilled check cashing locations in the following locations: Mount Kisco, New York, Allentown, Pennsylvania and West Chester, Pennsylvania. Law enforcement collected an extensive amount of video surveillance footage that ultimately linked Harris and Brown to the robberies.
The Hobbs Act Robbery and Conspiracy to Commit Hobbs Act Robbery counts each carry a maximum potential penalty of 20 years in prison. The brandishing of a firearm during a crime of violence count carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutive to any other term of imprisonment imposed. Each count also carries a fine of up to $250,000 fine, or twice the gain or loss from the offenses, whichever is greatest.
U.S. Attorney Sellinger credited members of the FBI’s New Jersey field office, under the direction of Special Agent in Charge James E. Dennehy; members of the FBI’s New York field office, under the leadership of Assistant Director In Charge Michael J. Driscoll; members of the FBI’s Philadelphia field office, under the leadership of Special Agent in Charge Jacqueline Maguire; members of the Hackettstown Police Department, under the direction of Police Chief James Macaulay; members of the Old Bridge Police Department, under the leadership of Acting Chief of Police Donald F. Fritz, Jr.; members of the Parsippany-Troy Hills Police Department, under the leadership of Police Chief Richard Pantina; members of the Morris County Prosecutor’s Office, under the leadership of Prosecutor Robert J. Carroll; members of the Clarkstown Police Department, under the leadership of Police Chief Jeffrey Wanamaker; members of the Westchester County (New York) Department of Public Safety; and members of the Borough of West Chester (Pennsylvania) Police Department, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the National Security Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Passaic County Man Sentenced to 84 Months in Prison for Receiving and Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Passaic County man was sentenced to 84 months in prison for receiving and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
Vaughn Tiedeman, 49, of West Milford, New Jersey, previously pleaded guilty to receipt and possession of child pornography before U.S. District Judge Susan D. Wigenton in Newark federal court. Judge Wigenton imposed the sentence on Sept. 21, 2022, in Newark federal court.
According to documents filed in this case and statements made in court:
Between July 2018 and April 2019, Tiedeman downloaded and possessed more than 600 images of child sexual abuse, including images of young children and depictions of violence.
In addition to the prison term, Judge Wigenton sentenced Tiedeman to 10 years of supervised release and order him to pay restitution of $9,000 to the victims.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Richard W. Reinhold, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Sarah A. Sulkowski of the Violent Crime Unit and Francesca Liquori, Chief of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit, in Newark.
Defense counsel: Stephen Turano Esq., Newark
Former Postal Employee Sentenced to 13 Months in Prison for Fraud in Connection with Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A former U.S. Postal Service USPS employee was sentenced to 13 months in prison for conspiring to fraudulently obtain unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced.
Ross Clayton, 31, of Irvington, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Julien X. Neals to an information charging him with conspiring to commit wire fraud. Judge Neals imposed the sentence on Sept. 21, 2022, in Newark federal court.
According to documents filed in the case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment (the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance (FPUC) that provided an additional $600 weekly benefit to those eligible for PUA and regular unemployment insurance benefits.
Clayton was a USPS employee and took unemployment insurance benefits-related mail, including debit cards, from a USPS location in New Jersey. He used that mail to obtain unemployment insurance benefits to which he was not entitled.
In addition to the prison term, Judge Neals sentenced Clayton to two years of supervised release and ordered him to pay restitution in the amount of $53,321.05 and forfeiture in the amount of $28,397.49.
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 in Manhattan; and 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 with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, 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 sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Defense counsel: Robert M. Perry Esq., Mount Holly, New Jersey
Illinois Man Sentenced to 39 Months in Prison for Stealing Unemployment Insurance Benefits While IncarceratedRead the Press Release
NEWARK, N.J. – An Illinois man was sentenced to 39 months in prison for using other individuals’ personal identification information to fraudulently obtain unemployment insurance benefits while he was incarcerated, U.S. Attorney Philip R. Sellinger announced.
Devontae Stokes, 28, of Country Club Hills, Illinois, previously pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with conspiring to commit wire fraud. Judge Arleo imposed the sentence by videoconference on Sept. 19, 2022.
According to documents filed in the case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment (e.g., the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance (FPUC) that provided an additional weekly benefit to those eligible for PUA and regular unemployment insurance benefits.
Between August 2020 and November 2020, Stokes was incarcerated at FCI Fort Dix, a federal correctional institutional with an adjacent satellite camp located in Fort Dix, New Jersey. Stokes and his conspirators obtained personal identification information (PII), including names, dates of birth, and Social Security numbers belonging to other individuals without those individuals’ knowledge and consent. Stokes and his conspirators then used the PII to make fraudulent unemployment insurance benefits applications and obtained more than $140,000 in benefits.
In addition to the prison term, Judge Arleo sentenced Stokes to three years of supervised release and ordered him to pay restitution in the amount of $143,290 and forfeiture in the amount of $143,290.
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, in New York; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents with the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Richard W. Reinhold in Newark; and special agents of the United States Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Dale Forrester, Cybercrime Investigations Division, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Howell Township Man Sentenced to 18 Months in Prison for Subscribing to False Tax ReturnsRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man who ran an illegal gambling business was sentenced to 18 months in prison for filing a false tax return, U.S. Attorney Philip R. Sellinger announced.
Steven Bryce, 52, of Howell Township, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to Count Five of an indictment charging him with subscribing to a false tax return. U.S. District Judge Zahid N. Quraishi imposed the sentence on Sept. 20, 2022, in Trenton federal court.
According to documents filed in this case and statements made in court:
In 2013, Bryce operated an illegal gambling business. On July 14, 2014, Bryce filed with the IRS U.S. Individual Income Tax Return, Form 1040, for the calendar year 2013 on behalf of himself and his spouse, which falsely stated that they had total income of $112,899. The 2013 tax return was not true and correct: Bryce received significant income from his gambling business, and, as a result, had income substantially in excess of the amount he reported. As part of his plea agreement, Bryce agreed to pay full restitution of $338,885 to the IRS for tax losses resulting from false tax returns filed by Bryce for calendar years 2011 to 2016.
In addition to the prison term, Judge Quraishi sentenced Bryce to one year of supervised release, a $50,000 fine, and ordered to pay $338,885 in restitution.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigations, under the direction of Acting Special Agent in Charge Tammy Tomlins, 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 sentencing.
The government is represented by Assistant U.S. Attorneys Sara F. Merin and J Fortier Imbert of the Special Prosecutions Division in Newark.
Defense counsel: Edward C. Bertuccio Hamilton, New Jersey
Former Postal Employee Sentenced to 13 Months in Prison for Fraud in Connection with Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A former U.S. Postal Service (USPS) employee was sentenced to 13 months in prison for fraudulently obtaining unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced.
Khaori Monroe, 29, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Julien X. Neals to an information charging him with one count of wire fraud. Judge Neals imposed the sentence by videoconference on Sept. 20, 2022.
According to documents filed in the case and statements made in court:
Monroe was employed as a mail carrier with the USPS. From July 2020 through October 2020, Monroe and others stole credit/debit cards containing unemployment insurance benefits from a location in New Jersey. Monroe and others then activated the cards and used the cards to obtain more than $40,000.
In addition to the prison term, Judge Neals sentenced Monroe to two years of supervised release and ordered him to pay restitution in the amount of $53,321.05 and forfeiture in the amount of $24,924.16.
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 in Manhattan; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Defense counsel: Khari O. Moore Esq., Newark, New Jersey
Seven Members of Bounty Hunter Bloods Gang Indicted for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – Seven members of a New Jersey gang associated with the Bounty Hunter Bloods were charged by indictment today with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, U.S. Attorney Philip R. Sellinger announced today.
The Indictment charges Walter Boyd, a/k/a “Walt,” a/k/a “Walt Daddy,” 34, Isiah Daniels, a/k/a “Ice,” 33, Joel Lyons, a/k/a “Jayski,” 21, Gede Maccelus, a/k/a “G Baby,” 21, Armando Ortiz, a/k/a “Mando,” 24, Malik Stringer, a/k/a “Rambo,” 24, and Kimani Wanyoike, a/k/a “Ki,” 21, all of Somerset and Middlesex County, New Jersey with a racketeering conspiracy that included multiple murders, fraud schemes, and narcotics distribution. Daniels and Wanyoike are in federal custody on previously filed related federal charges. Lyons and Ortiz are currently serving terms of imprisonment in state prison. Boyd, Maccelus, and Stringer are currently in state custody on pending state charges related to the charges filed today. All defendants’ will have initial appearances to be scheduled.
The charges are the result of a long-running investigation, coordinated between the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Middlesex County Prosecutor’s Office, the Somerset County Prosecutor’s Office, the New Brunswick Police Department, and the Franklin Township Police Department.
According to documents filed in this case and statements made in court:
Boyd, Daniels, Lyons, Maccelus, Ortiz, Stringer, and Wanyoike, each were allegedly members and associates of the Bounty Hunter Bloods, who operated under the umbrella of the neighborhood street gangs known as “Parkside” in Somerset and “The Ville” in New Brunswick. Gang members, including the defendants, are alleged to have also engaged in numerous violent acts on behalf of and for the benefit of the gang, including assaults, shootings, and murders, some of which targeted rival gang members, including the following:
• On or about June 12, 2020, Daniels, along with other gang members drove at least two cars to a gathering to pay homage to a purported rival gang member who had passed away. At the gathering, members of the Bounty Hunter Bloods gang got out of their cars and shot into a vehicle in the area of Churchill Avenue in Franklin Township;
• On or about August 1, 2020, Maccelus, Wanyoike, and other gang members, at Ortiz’s direction, drove to the area of the Hope Manor housing complex in the “Down Bottom” area of New Brunswick in a stolen vehicle. Upon arriving, Wanyoike and another gang member exited the vehicle and shot Victim 1, a purported gang rival, as well as Victims 2 and 3;
• On or about September 13, 2020, Lyons, Daniels, and other gang members used a stolen car to commit a shooting in New Brunswick that caused the deaths of Victim 4, a purported gang rival, and Victim 5, and resulting in injuries to Victims 6, 7, 8, 9, 10, 11, and 12;
• On or about July 19, 2021, Wanyoike possessed a firearm that had been used in a shooting on or about April 30, 2021, in North Brunswick, New Jersey where at least seven rounds of .40 caliber ammunition were discharged from a red Hyundai motor vehicle as it chased at Victim 13, a purported rival of the Bounty Hunter Bloods Enterprise;• On or about June 18, 2021, Boyd and other gang members gathered outside a hospital in New Brunswick to support and pay homage to a high-ranking member of the Bounty Hunter Bloods gang, who had been shot by purported rivals hours prior. Upon seeing a white Jeep they concluded was occupied by rivals, Boyd and two other gang members followed the Jeep to the area of Easton Avenue in New Brunswick. After stopping, one of the gang members shot into the Jeep, killing Victim 14 and causing injury to Victim 15;
• On or about July 24, 2021, Stringer, while gathered with other gang members, possessed a firearm and attempted to fire it at a purported rival gang member in New Brunswick;
• On or about January 9, 2022, Stringer, while with another gang member in New Brunswick, got into a confrontation regarding narcotics distribution with purported rival gang members and shot at them, killing Victim 16 and causing injury to Victim 17; and
• On or about January 20, 2022, Maccelus, while with another gang member in Franklin Township, possessed a loaded firearm that had been used in a shooting in New Brunswick that same day.
In addition to these violent acts, Bounty Hunter Bloods members, including the defendants, are alleged to have routinely distributed narcotics in and around the gang’s turf in both New Brunswick and Somerset. Gang members also engaged in various wire and bank fraud schemes to enrich themselves and fellow members of the gang, including schemes to defraud the federal Paycheck Protection Program.
Boyd, Daniels, Lyons, and Stringer each face a maximum sentence of life imprisonment for the racketeering conspiracy, while Maccelus, Ortiz, and Wanyoike each face a maximum sentence of twenty years’ imprisonment. All defendants face a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James Dennehy, investigators of the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, investigators of the Somerset County Prosecutor’s Office, under the direction of Prosecutor John McDonald, the New Brunswick Police Department, under the direction of Director Anthony Caputo, and the Franklin Township Police Department, under the direction of Director of Public Safety Quovella Mayweather, for the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Kendall Randolph of the District of New Jersey’s Organized Crime and Gangs Unit in Newark and Assistant U.S. Attorney Tracey Agnew of the Trenton Office.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Cumberland County Man Sentenced to 84 Months in Prison on Drug ChargeRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey man was sentenced today to 84 months in prison for possessing with intent to distribute methamphetamine, U.S. Attorney Philip R. Sellinger announced.
Charles Sistrunk Jr., 40, of Millville, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with possession with intent to distribute 500 mg or more of a substance containing methamphetamine.
According to documents filed in this case and statements made in court:
On Oct. 13, 2020, agents of the FBI executed a court-authorized search warrant at Sistrunk’s residence and found over 3.7 kilograms of crystal methamphetamine, or “ice.” Sistrunk admitted to possessing the methamphetamine with intent to distribute it to others.
In addition to the prison term, Judge Kugler sentenced Sistrunk to three years of supervised release and ordered the forfeiture of $2,900 of drug proceeds seized from the defendant’s residence.
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 the Drug Enforcement Administration; the Department of Homeland Security, Homeland Security Investigations; the New Jersey State Police; the Atlantic County Prosecutor’s Office; the Atlantic County Sheriff’s Office; the Atlantic City Police Department; the Pleasantville Police Department; and the Millville Police Department for their assistance in the investigation.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
New York Man Charged with Middlesex County CarjackingRead the Press Release
TRENTON, N.J. – A New York man was charged for an armed carjacking committed in South Brunswick, New Jersey, U.S. Attorney Philip R. Sellinger announced today.
Jashawn Robinson, 21, of Queens, New York, is charged by complaint with one count of carjacking and one count of discharging a firearm during a crime of violence. He will appear for his initial appearance at a later date.
According to the documents filed in this case:
On Aug. 29, 2021, at approximately 11:15 a.m., as two victims approached their vehicle parked in a motel parking lot to leave, Robinson ran up behind one of them, pointed a gun directly at her, and forcefully pulled her away from the vehicle. Robinson fired one round of ammunition from his gun into the air. Robinson then pointed his gun at the second victim, who had his hands in the air and was backing away from the vehicle. Robinson then entered the vehicle and drove away. The carjacking, including Robinson’s discharge of the firearm, was captured on video surveillance.
On Sept. 27, 2021, law enforcement officers located the carjacked vehicle parked on a residential street in Queens, New York, and established surveillance. The officers observed Robinson approach and enter that vehicle. As law enforcement officers converged and surrounded the vehicle, Robinson repeatedly tried to get away, including hitting parked cars and almost hitting law enforcement personnel. Robinson was removed from the vehicle and arrested.
The count of carjacking carries a maximum potential penalty of 15 years in prison. The count of discharging a firearm during a crime of violence is punishable by a mandatory minimum term of 10 years in prison and a maximum sentence of life in prison, which must run consecutively to any term of imprisonment imposed on any other charge. Both charges each carry a potential fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews; and the South Brunswick Police Department, under the direction of Chief Raymond J. Hayducka, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, the New York City Police Department, the Queens County District Attorney’s Office, and the Middlesex County Prosecutor’s Office for their assistance with this case.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office’s Criminal Division in Trenton and Assistant U.S. Attorney Michelle S. Gasparian, Chief 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.
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Massachusetts man sentenced to 40 years in prison on child pornography chargesRead the Press Release
CAMDEN, N.J. – A Massachusetts man was sentenced today to 480 months in prison for trafficking in thousands of images and videos of child sexual abuse while incarcerated at Federal Correctional Institution Fort Dix for a previous offense transporting and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
William H. Noble, 57, of Lowell, Massachusetts, was convicted in November 2021 after a three-day jury trial before Senior U.S. District Judge Joseph H. Rodriguez of conspiring to receive and distribute child pornography, receiving child pornography, distributing child pornography, possessing child pornography, and accessing with intent to view child pornography on federal property. Judge Rodriguez imposed today’s sentence in Camden federal court. In addition to the prison term, Judge Rodriguez sentenced Noble to five years of supervised release. Noble was also ordered to pay $63,415 in restitution to the victims.
According to documents filed in this case and the evidence at trial:
From Nov. 1, 2016, to April 26, 2017, while an inmate at FCI-Fort Dix, Noble participated in a conspiracy with other inmates to receive and distribute images of child sexual abuse. Noble was serving an 81-month sentence following his guilty plea in the District of Massachusetts to transportation and possession of child pornography. He was scheduled to be released on March 8, 2018.
While in prison, Noble and his conspirators accessed images of child sexual abuse on the “dark web” using cell phones that had been smuggled into the prison. They then stored the images on micro SD cards, which they shared amongst the conspirators.
On April 19, 2017, Noble transferred a micro SD card containing over 2,400 images and nearly 100 videos of child sexual abuse to a government informant. Many of the images and videos depicted the sexual abuse of prepubescent children, including infants and toddlers. At the time of the transfer, Noble was recorded describing the child sexual abuse images and videos to the informant. Noble’s conspirators were also recorded describing Noble’s role and conduct in furtherance of the conspiracy. When Noble was arrested on Feb. 5, 2018, he confessed to the FBI.
The charges against Noble stem from a long-term investigation by the FBI, which led to similar charges against seven other FCI-Fort Dix inmates. All of the other defendants have already pleaded guilty for their roles in the scheme.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation. He also thanked officials of the Bureau of Prisons, FCI-Fort Dix, and the New Jersey Regional Computer Forensic Laboratory for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Andrew B. Johns and David E. Malagold of the Criminal Division.
Massachusetts Man Sentenced to 40 Years in Prison on Child Pornography ChargesRead the Press Release
CAMDEN, N.J. – A Massachusetts man was sentenced today to 480 months in prison for trafficking in thousands of images and videos of child sexual abuse while incarcerated at Federal Correctional Institution Fort Dix for a previous offense transporting and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
William H. Noble, 57, of Lowell, Massachusetts, was convicted in November 2021 after a three-day jury trial before Senior U.S. District Judge Joseph H. Rodriguez of conspiring to receive and distribute child pornography, receiving child pornography, distributing child pornography, possessing child pornography, and accessing with intent to view child pornography on federal property. Judge Rodriguez imposed today’s sentence in Camden federal court. In addition to the prison term, Judge Rodriguez sentenced Noble to five years of supervised release. Noble was also ordered to pay $63,415 in restitution to the victims.
According to documents filed in this case and the evidence at trial:
From Nov. 1, 2016, to April 26, 2017, while an inmate at FCI-Fort Dix, Noble participated in a conspiracy with other inmates to receive and distribute images of child sexual abuse. Noble was serving an 81-month sentence following his guilty plea in the District of Massachusetts to transportation and possession of child pornography. He was scheduled to be released on March 8, 2018.
While in prison, Noble and his conspirators accessed images of child sexual abuse on the “dark web” using cell phones that had been smuggled into the prison. They then stored the images on micro SD cards, which they shared amongst the conspirators.
On April 19, 2017, Noble transferred a micro SD card containing over 2,400 images and nearly 100 videos of child sexual abuse to a government informant. Many of the images and videos depicted the sexual abuse of prepubescent children, including infants and toddlers. At the time of the transfer, Noble was recorded describing the child sexual abuse images and videos to the informant. Noble’s conspirators were also recorded describing Noble’s role and conduct in furtherance of the conspiracy. When Noble was arrested on Feb. 5, 2018, he confessed to the FBI.
The charges against Noble stem from a long-term investigation by the FBI, which led to similar charges against seven other FCI-Fort Dix inmates. All of the other defendants have already pleaded guilty for their roles in the scheme.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation. He also thanked officials of the Bureau of Prisons and FCI-Fort Dix for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Andrew B. Johns and David E. Malagold of the Criminal Division.
Convicted Fugitive Drug Trafficker Captured and Returned to United States to Serve SentenceRead the Press Release
CAMDEN, N.J. – A fugitive from justice who was captured in the Dominican Republic on July 12, 2022, by the U.S. Marshals Service and other law enforcement officials in the Dominican Republic has been returned to the United States to serve her prison sentence, U.S. Attorney Philip R. Sellinger announced today.
In 2006, Ramona Cruz pleaded guilty to an indictment charging her with conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine. In 2007, Cruz was sentenced to a term 40 months in prison to be followed by five years of supervised release. She was given the opportunity to voluntarily surrender to the U.S. Bureau of Prisons (BOP) at a later date. Approximately three days prior to her surrender date, Cruz cut off her ankle bracelet and fled to the Dominican Republic to avoid prison, where she remained a fugitive until her recent apprehension.
The narcotics charge to which Cruz pleaded guilty to stems from illegal narcotics activity in 2005, which she took part in with her codefendant (and brother) Ramon Dejesus. In July 2005, an individual was apprehended upon entry into the United States while in possession of approximately three kilograms of cocaine. Later, while under surveillance by law enforcement, Cruz and Dejesus took possession of a piece of luggage which they believed contained the cocaine. The investigation revealed that all three individuals involved had been in touch with the same narcotics contact in the Dominican Republic. Dejesus also pleaded guilty to the narcotics charge and has since served his prison sentence.
U.S. Attorney Philip Sellinger credited special agents of the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr., and special agents of the Department of Homeland Security, Homeland Security Investigations, Cherry Hill Office and Newark Division Office, under the direction of Acting Special Agent in Charge Richard W. Reinhold, with the investigation.
The government is represented by Deputy U.S. Attorney Andrew Carey of the U.S. Attorney’s Office Criminal Division in Camden.
Three Iranian Nationals Charged with Engaging in Computer Intrusions and Ransomware-Style Extortion Against U.S. Critical Infrastructure ProvidersRead the Press Release
An indictment was unsealed today charging three Iranian nationals with allegedly orchestrating a scheme to hack into the computer networks of multiple U.S. victims.
As alleged in the indictment, from October 2020 through the present, Mansour Ahmadi, aka Mansur Ahmadi, 34; Ahmad Khatibi Aghda, aka Ahmad Khatibi, 45; and Amir Hossein Nickaein Ravari, aka Amir Hossein Nikaeen, aka Amir Hossein Nickaein, aka Amir Nikayin, 30, engaged in a scheme to gain unauthorized access to the computer systems of hundreds of victims in the United States, the United Kingdom, Israel, Iran, and elsewhere, causing damage and losses to the victims.
“The Government of Iran has created a safe haven where cyber criminals acting for personal gain flourish and defendants like these are able to hack and extort victims, including critical infrastructure providers,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This indictment makes clear that even other Iranians are less safe because their own government fails to follow international norms and stop Iranian cyber criminals.”
The defendants’ hacking campaign exploited known vulnerabilities in commonly used network devices and software applications to gain access and exfiltrate data and information from victims’ computer systems. Ahmadi, Khatibi, Nickaein and others also conducted encryption attacks against victims’ computer systems, denying victims access to their systems and data unless a ransom payment was made.
The defendants victimized a broad range of organizations, including small businesses, government agencies, nonprofit programs and educational and religious institutions. Their victims also included multiple critical infrastructure sectors, including health care centers, transportation services and utility providers.
“Ransom-related cyberattacks — like what happened here — are a particularly destructive form of cybercrime,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “No form of cyberattack is acceptable, but ransomware attacks that target critical infrastructure services, such as health care facilities and government agencies, are a threat to our national security. Hackers like these defendants go to great lengths to keep their identities secret, but there is always a digital trail. And we will find it.”
“The FBI remains steadfast in our commitment to work with our U.S. government partners for the purpose of imposing cost on our adversaries,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “This indictment, when coupled with other disruptive operational activities, demonstrates what’s possible when we team up with our domestic and international partners and take a whole-of-government approach. We, along with our partners, remain dedicated to protecting the United States of America and the victims affected by these egregious crimes.”
According to court documents, in February 2021, the defendants and their conspirators targeted a township in Union County, New Jersey. They exploited known vulnerabilities to gain control and access to the township’s network and data and used a hacking tool to establish persistent remote access to a particular domain that was registered to Ahmadi.
In or before February 2022, the defendants and their conspirators targeted an accounting firm based in Morris County, New Jersey. They again exploited a known vulnerability to gain unauthorized access and then used a particular hacking tool to establish a connection to a server that was registered to Nickaein and to steal data. In March 2022, the defendants launched an encryption attack against the accounting firm; after denying the firm access to some of its systems, Khatibi demanded payment of $50,000 in cryptocurrency and threatened to sell the data on the black market.
The defendants also compromised, and often encrypted and extorted, hundreds of other victims, including an accounting firm based in Illinois; a regional electric utility company based in Mississippi; a regional electric utility company based in Indiana; a public housing corporation in the State of Washington; a shelter for victims of domestic violence in Pennsylvania; a County government in Wyoming; a construction company located in the State of Washington that was engaged in work on critical infrastructure projects; and a state bar association.
Ahmadi, Khatibi and Nickaein, all residents of Iran, are each charged by indictment with one count of conspiring to commit computer fraud and related activity in connection with computers; one count of intentionally damaging a protected computer; and one count of transmitting a demand in relation to damaging a protected computer. Ahmadi is charged with one additional count of intentionally damaging a protected computer. All defendants remain at large abroad.
The conspiracy charge carries a maximum sentence of five years in prison. The intentional damage to protected computers charge carries a maximum sentence of 10 years in prison. The transmission of a ransom demand charge carries a maximum sentence of five years in prison. The offenses also carry a potential maximum fine of $250,000 or twice the gross amount of gain or loss resulting from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.
Assistant U.S. Attorneys David E. Malagold and Matthew Feldman Nikic for the District of New Newsey, and Trial Attorney Andrew D. Beaty of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Iranian Nationals Charged with Engaging in Computer Intrusions and Ransomware-Style Extortion Against U.S. Critical Infrastructure ProvidersRead the Press Release
NEWARK, N.J. – An indictment was unsealed today charging three Iranian nationals with allegedly orchestrating a scheme to hack into the computer networks of multiple U.S. victims, U.S. Attorney Philip R. Sellinger and National Security Division Assistant Attorney General Matthew Olsen announced today.
As alleged in the indictment, from October 2020 through the present, Mansour Ahmadi, aka “Mansur Ahmadi,” Ahmad Khatibi Aghda, aka “Ahmad Khatibi,” and Amir Hossein Nickaein Ravari, aka “Amir Hossein Nikaeen,” aka “Amir Hossein Nickaein,” aka “Amir Nikayin,” engaged in a scheme to gain unauthorized access to the computer systems of hundreds of victims in the United States, the United Kingdom, Israel, Iran, and elsewhere, causing damage and losses to the victims.
The defendants’ hacking campaign exploited known vulnerabilities in commonly used network devices and software applications to gain access and exfiltrate data and information from victims’ computer systems. Ahmadi, Khatibi, Nickaein, and others, also conducted encryption attacks against victims’ computer systems, denying victims access to their systems and data unless a ransom payment was made.
The defendants victimized a broad range of organizations, including small businesses, government agencies, non-profit programs, and educational and religious institutions. Their victims also included multiple critical infrastructure sectors, including healthcare centers, transportation services, and utility providers.
“Ransom-related cyberattacks — like what happened here — are a particularly destructive form of cybercrime,” U.S. Attorney Sellinger said. “No form of cyber-attack is acceptable, but ransomware attacks that target critical infrastructure services, such as health care facilities and government agencies, are a threat to our national security. Hackers like these defendants go to great lengths to keep their identities secret, but there is always a digital trail. And we will find it.”
“These defendants may have been hacking and extorting victims – including critical infrastructure providers – for their personal gain, but the charges reflect how criminals can flourish in the safe haven that the Government of Iran has created and is responsible for,” Assistant Attorney General Matthew Olsen said. “According to the Indictment, even other Iranians are less safe because their own government fails to follow international norms and stop Iranian cyber criminals.”
“I want the people of New Jersey, and across the country, to know that the FBI is working tirelessly every day to protect you from people and things you may never see,” Special Agent in Charge of the Newark Division James Dennehy said. “This coordinated, global effort amongst law enforcement and the intelligence community should send a clear message to those actors who think they can’t be found in cyberspace: the days of hiding behind a keyboard and perpetrating crimes against the American people without consequence are waning, and we will bring the full force of the American Justice system to disrupt your criminal behavior.”
According to documents filed in this case:
In February 2021, the defendants and their conspirators targeted a township in Union County, New Jersey. They exploited known vulnerabilities to gain control and access to the township’s network and data and used a hacking tool to establish persistent remote access to a particular domain that was registered to Ahmadi.
In or before February 2022, the defendants and their conspirators targeted an accounting firm based in Morris County, New Jersey. They again exploited a known vulnerability to gain unauthorized access and then used a particular hacking tool to establish a connection to a server that was registered to Nickaein and steal data. In March 2022, the defendants launched an encryption attack against the accounting firm; after denying the firm access to some of its systems, Khatibi demanded payment of $50,000 in cryptocurrency and threatened to sell the data on the black market.
The defendants also compromised, and often encrypted and extorted, hundreds of other victims, including an accounting firm based in Illinois; a regional electric utility company based in Mississippi; a regional electric utility company based in Indiana; a public housing corporation in the State of Washington; a shelter for victims of domestic violence in Pennsylvania; a County government in Wyoming; a construction company located in the State of Washington that was engaged in work on critical infrastructure projects; and a state bar association.
Ahmadi, 34, Khatibi, 45, and Nickaein, 30, all residents of Iran, are each charged by indictment with one count of conspiring to commit computer fraud and related activity in connection with computers; one count of intentionally damaging a protected computer; and one count of transmitting a demand in relation to damaging a protected computer. Ahmadi is charged with one additional count of intentionally damaging a protected computer.
The conspiracy charge carries a maximum prison sentence of five years in prison. The intentional damage to protected computers charge carries a maximum sentence of 10 years in prison. The transmission of a ransom demand charge carries a maximum sentence of five years in prison. The offenses also carry a potential maximum fine of $250,000 or twice the gross amount of gain or loss resulting from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys David E. Malagold and Matthew Feldman Nikic of the Cybercrime Unit in Newark, and Trial Attorney Andrew D. Beaty of the National Security Division in Washington, D.C.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Iowa Man Admits Armed Robbery of New Jersey BankRead the Press Release
NEWARK, N.J. – An Iowa man admitted robbing a bank in Secaucus, New Jersey, in January 2017, U.S. Attorney Philip R. Sellinger announced today.
Jose Luis Martinez, 32, pleaded guilty on Sept. 13, 2022, before U.S. District Judge John M. Vazquez in Newark federal court to a two-count indictment charging him with armed bank robbery and brandishing a firearm during a bank robbery.
According to documents filed in this case and statements made in court:
On Jan. 5, 2017, Martinez walked into a bank in Secaucus and pointed a handgun at a bank employee while demanding cash. Martinez told the bank employee that he would shoot her and other customers if the employee did not comply. Martinez took cash from the bank and fled.
The armed bank robbery count carries a maximum potential penalty of 25 years in prison, and a maximum fine of $250,000. The brandishing a firearm count carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years, which must be served consecutively to any other sentence imposed. Sentencing is scheduled for Jan. 31, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, Newark, with the investigation leading to the guilty plea. He also thanked the FBI’s White Plains, New York Office; the New York City Police Department; the Greenwich, Connecticut, Police Department; and the Port Chester, New York, Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Garrett Schuman of the General Crimes Unit in Newark.
Gloucester County Man Admits Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man admitted possessing images and videos of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Joseph Cooper, 76, of Williamstown, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb on Sept. 13, 2023, to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
In October 2020, law enforcement officers executed a search warrant at Cooper’s residence and discovered computers containing more than 50 videos and 200 images of child sexual abuse, including depictions of prepubescent minors engaged in sexually explicit conduct. The computers also contained logs documenting Cooper’s participation in internet chatrooms relating to sexual interest in children.
Because Cooper has been convicted previously of interstate transport of child pornography by computer and cruelty and neglect of a child, the charge of possession of child pornography depicting prepubescent children carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 17, 2023.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Richard W. Reinhold, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Postal Service Employee Admits Stealing Cell Phones from MailRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, woman today admitted stealing numerous cell phones from mail that passed through the United States post office where she was employed, U.S. Attorney Philip R. Sellinger, announced.
Nyasia Hutchinson, 26, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging her with one count of theft of mail by a postal employee.
According to documents filed in this case and statements made in court:
Hutchinson was employed by the U.S. Postal Service as a postal service clerk at the Elizabeth Post Office (EPO). From May 1, 2018, through Dec. 31, 2018, another EPO employee provided Hutchinson with 15 to 20 stolen cellphones that the employee had taken out of packages at the EPO that had been mailed to a Hillside, New Jersey, business. Hutchinson admitted that she taped up empty packages and placed them back in the mail stream after cellphones had been removed. Hutchinson later sold the stolen iPhones which had a total approximate value of $12,000, keeping the sales proceeds for herself.
The theft of mail by a postal employee charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 31, 2023.
U.S. Attorney Sellinger credited 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 guilty plea.
The government is represented by Assistant U.S. Attorney Leslie Faye Schwartz of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
Paterson Police Sergeant Sentenced to 33 Months in Prison for Conspiracy to Violate Civil Rights and Filing False Police ReportRead the Press Release
NEWARK, N.J. – A Paterson Police Department sergeant was sentenced today to 33 months in prison for conspiring to violate civil rights and filing a false police report, U.S. Attorney Philip R. Sellinger announced.
Michael Cheff, 51, of Oakland, New Jersey, was convicted May 26, 2022, following a five-day trial before U.S. District Judge Katharine S. Hayden on one count of conspiracy to deprive persons of civil rights and one count of falsification of a police report. Judge Hayden imposed the sentence today in Newark federal court.
“It’s a sad day when we have to announce the sentencing of a law enforcement official who has violated his oath, as we do today,” U.S. Attorney Sellinger said. “This defendant preyed on the public he had sworn to protect and violated the rights of citizens in the process, all to line his pockets and those of the officers he was supposed to be supervising. We work hand-in-hand with our local law enforcement partners, and those partnerships are critical to our work. We will not tolerate the few bad officers who tarnish the badge.”
“Whether local, state, or federal, those of us who carry a badge have to prove ourselves worthy every single day,” FBI Special Agent in Charge James Dennehy, Newark Division, said. “This defendant not only betrayed his badge and the public who entrusted him with it, he led his subordinates down a path of self-destruction and left his fellow officers to deal with the fallout. We value the strong partnerships we have with our local and state counterparts. Officers who betray their oath are few and far between and we are committed to protecting the integrity of the badge to benefit those who work hard to protect it, as well as protect the general public.”
According to documents filed in this case and evidence at trial:
Eudy Ramos, Daniel Pent, Jonathan Bustios, Matthew Torres, and Frank Toledo were police officers with the Paterson Police Department. Cheff, who was a sergeant, supervised their activities and approved their reports and other paperwork related to arrests and seizures of money, narcotics, and firearms. Ramos, Pent, Bustios, Torres, and Toledo, while on official duty, violated the civil rights of individuals in Paterson. They stopped and searched motor vehicles without any justification and stole cash and other items from the occupants. They also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized cash from them. They concealed their activities by submitting to Cheff false reports that omitted, or falsified, their illegal activities. Cheff signed off on those false police reports and routinely received a portion of these stolen monies from some of these officers.
On Nov. 14, 2017, Cheff joined Bustios, Ramos, and Torres in stealing cash from an apartment in Paterson. Bustios, Ramos, and Torres stopped and arrested an individual in Paterson. The officers went to the individual’s apartment and were joined by Cheff. After the arrested individual was coerced to sign a consent to search form, and while the arrested individual was handcuffed in a police car, Cheff, Bustios, and Ramos went to search the individual’s apartment. After obtaining consent to search the apartment by lying to the individual’s mother, Cheff, Bustios, and Ramos then searched the individual’s room and located a safe inside the room. Cheff took money and narcotics from the safe and put the money in his pocket. Cheff handed a small portion of the money stolen from the safe to Bustios and told Bustios to log it into evidence. Cheff also approved a police report that falsely stated that the officers had recovered $319 from on top of a shelf in the individual’s room.
Later that day, Bustios and Toledo exchanged text messages discussing Cheff’s theft of money. Bustios said, among other things, that Cheff “got us for over a stack today,” that “there was a safe” and that Cheff “grabbed the cash.” According to the individual whose apartment was searched, the safe contained approximately $2,700, and all of it was missing after the search was completed.
In addition to the prison term, Judge Hayden sentenced Cheff to three years of supervised release. Ramos, Pent, Bustios, Torres, and Toledo previously pleaded guilty; Toledo and Pent were sentenced Sept. 9, 2022, and Bustios, Torres and Ramos were sentenced Sept. 8, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, and the Paterson Police Department Office of Internal Affairs, for their assistance.
The government is represented by Assistant U.S. Attorney Jihee G. Suh, Deputy Chief of the Special Prosecutions Division, and Assistant U.S. Attorney Thomas S. Kearney of the Special Prosecutions Division.