District of New Jersey

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

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.

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.

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.

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.

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.

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.

To view press conference, click here.

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.

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.

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.

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.

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.

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, 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

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.

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

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

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

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

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

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.

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

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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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.

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.

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. 

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.

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.

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.

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.

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.

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.

NEWARK, N.J. – Two Paterson, New Jersey, police officers were sentenced today to prison terms for their respective roles in a conspiracy to violate individuals’ civil rights, U.S. Attorney Philip R. Sellinger announced.

U.S. District Judge Katharine S. Hayden handed down the following sentences in Newark federal court:

• Police Officer Frank Toledo, 33, of Paterson, was sentenced to 24 months in prison.  Toledo previously pleaded guilty to a three-count information charging him with conspiracy to violate individuals’ civil rights, using unreasonable and excessive force in violation of individuals’ civil rights, and filing a false police report.

• Police Officer Daniel Pent, 35, of Paterson, New Jersey, was sentenced to 18 months in prison. Pent previously pleaded guilty  to an information charging him with conspiracy to violate individuals’ civil rights, using unreasonable and excessive force in violation of individuals’ civil rights, and filing a false police report.

In addition to the prison terms, Judge Hayden sentenced both of the defendants to three  years of supervised release.

Three codefendants – Police Officers Jonathan Bustios, Eudy Ramos and Matthew Torres – were sentenced Sept. 8, 2022.

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 sentencings. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County 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.

NEWARK, N.J. – Three Paterson, New Jersey, police officers were sentenced today for their respective roles in a conspiracy to violate individuals’ civil rights, U.S. Attorney Philip R. Sellinger announced.

U.S. District Judge Katharine S. Hayden handed down the following sentences in Newark federal court:

• Police Officer Jonathan Bustios, 33, of Paterson, New Jersey, was sentenced to 24  months in prison. Bustios previously pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of conspiracy to violate individuals’ civil rights and one count of extortion under color of official right.

• Police Officer Eudy Ramos, 35, of Paterson, was sentenced to 24 months in prison. Ramos previously pleaded guilty to Counts One and Seven of an indictment against him, charging him with conspiracy to violate individuals’ civil rights and filing a false police report. Ramos also pleaded guilty to an information charging him with using unreasonable and excessive force in violation of individuals’ civil rights.

• Police Officer Matthew Torres, 33, of Paterson, was sentenced to three years of probation. Torres previously pleaded guilty to an information charging him with conspiracy to violate individuals’ civil rights and filing a false police report.

In addition to the prison terms, Judge Hayden sentenced Bustios and Ramos to three years of supervised release.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencings. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County 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.

CAMDEN, N.J. – A Margate, New Jersey, firefighter was convicted today on four counts of an indictment charging him with defrauding public health insurance plans out of approximately $1 million, Attorney for the United States Vikas Khanna announced.

Thomas Sher, 50, of Northfield, New Jersey, found guilty of one count of conspiracy to commit health care fraud and three counts of health care fraud following a 12-day trial before U.S. District Judge Robert B. Kugler in Camden federal court. 

According to documents filed in this case and the evidence at trial:

Sher was part of a criminal conspiracy in which state and local government employees were recruited and compensated to receive medically unnecessary compound prescription medications. Sher caused the pharmacy benefits administrator to pay out almost $1 million for medically unnecessary compound prescription medications for individuals they recruited into the scheme. Sher directly received approximately $115,000 from the scheme.

Sher and others were indicted in March 2019 on charges that they defrauded New Jersey health benefits programs and other insurers. To date, approximately 40 people have been convicted or pleaded guilty to the conspiracy.

Sher faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Jan.10, 2023.

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 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 verdict.

The government is represented by Assistant U.S. Attorney Christina O. Hud of the Criminal Division and Deputy Chief of the Criminal Division Desiree L. Grace.

NEWARK, N.J. – Three Essex County, New Jersey, men admitted their roles in murders in aid of racketeering on behalf of a drug enterprise, including the murder of a federal informant, U.S. Attorney Philip Sellinger announced today.

Tyquan Daniels, 26, Ali Hill, 29, and Thomas Zimmerman, 26, all of East Orange, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez to racketeering acts in connection with their roles in a narcotics enterprise led by separately charged defendant Michael Healy.

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

In February, 2018, Healy found out that one of his conspirators in the drug enterprise was cooperating with law enforcement by providing information against the drug enterprise. He ordered members of the Brick City Brims Bloods in East Orange to kill the informant. On Feb. 3, 2018, outside the informant’s residence in Bloomfield, New Jersey, Zimmerman and other gang members shot and killed an innocent bystander, believing the bystander was the informant.

Realizing they killed the wrong person, the Healy enterprise members, including Daniels, Zimmerman and Hill, conspired to murder the informant. On March 12, 2018, in Bloomfield, two masked gunmen, members or associates of the drug enterprise approached the informant and fired multiple shots at close range, killing him. Daniels also pleaded guilty to racketeering conspiracy and predicate acts which included the murder of a member of a rival Bloods gang, whom Daniels shot and killed on May 13, 2018.

Hill pleaded guilty on June 29, 2022, before Judge Vazquez to racketeering acts, which included the murder of the federal informant.  

Pursuant to the plea agreements, Hill faces a prison term between 20 and 25 years. Daniels and Zimmerman each face prison terms of between 33 and 38 years.

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

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of special agent in charge James E. Dennehy in Newark; the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; the Essex County Prosecutors Office; the Union County Prosecutor’s Office, East Orange PD; Montclair PD, and the Maryland Department of Public Safety and Correctional Services, Intelligence and Investigative Division, under the direction of Secretary Robert Green.

The government is represented by Senior Trial Counsel Robert L. Frazer of the Organized Crime Gang Unit, and Assistant U.S. Attorney Naazneen Khan, Deputy Chief of the Organized Crime Drug Enforcement Task Force Unit.

NEWARK, N.J. – An Atlantic County, New Jersey, man was sentenced today to 24 months in prison for his role in engaging in a pattern of fraudulent activity through his auto dealership, U.S. Attorney Philip R. Sellinger announced.

Afzal Khan, aka “Bobby Khan,” 40, of Egg Harbor Township, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge William J. Martini to Count One of an indictment charging him with wire fraud.

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

From at least December 2013 through September 2014, Khan, through his car dealership,

Emporio Motor Group of Ramsey, New Jersey, engaged in acts to defraud lenders and customers. Khan obtained loans from the auto finance division of a large bank for cars that he never delivered, but for which the purchaser was still responsible. Khan also obtained loans from the victim bank for cars that were delivered, but for which neither he nor Emporio had title. As a result, the purchasers of these cars were liable for the loans, but could not register the cars. In addition, Khan offered to sell cars for individuals on consignment, but did not return the cars or provide any money to the individuals from the sale of the cars. Khan admitted that as a result of his actions, he exposed the victim bank to a potential loss of at least $550,000.

In addition to the prison term, Judge Martini sentenced Khan to three years of supervised release and ordered forfeiture of $1.1 million. Restitution will be determined at a later date.

U.S. Attorney Sellinger credited special agents of the FBI’s Newark Division, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s sentencing. He also thanked the Bergen County Prosecutor’s Office and the Ramsey Police Department for their assistance.

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

CAMDEN, N.J. – A Camden man admitted his role in conspiracies that involved committing armed carjackings and robbing multiple gas stations in southern New Jersey, U.S. Attorney Philip R. Sellinger announced.

Kamau Bradshaw, 20, of Camden, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of conspiring to commit armed robberies, one count of committing an armed robbery, and one count of conspiring to commit armed carjackings. Bradshaw and another defendant, Paul Rogers, were arrested and charged by criminal complaint on Sept. 17, 2021.

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

On Sept. 14, 2021, two masked individuals carrying an AR-style rifle robbed a gas station in Pennsauken, New Jersey. One of the robbers wore a gray Nike hooded sweatshirt and scuffed tan work boots. The second robber wore a tan hooded sweatshirt with “REACTIVE” printed on the sleeves and striped boxer shorts. They obtained cash and cigarettes while brandishing the firearm. Shortly after the robbery, two individuals were seen returning to a residence in Camden with a large duffle bag. On Sept. 17, 2021, law enforcement officers executed a federal search warrant at the Camden residence and recovered, among other items, a duffle bag, an AR-style rifle, a gray Nike sweatshirt, scuffed tan work boots, and a tan hooded sweatshirt with “REACTIVE” printed on the sleeves. Bradshaw and Rogers were present when law enforcement agents executed the search warrant, at which time Bradshaw was wearing striped boxer shorts consistent with those worn by one of the robbers during the robbery.

Bradshaw admitted his role in eight gas station robberies or attempted robberies in addition to the Sept. 14, 2021, robbery in Pennsauken, including robberies in Haddon Township on Aug. 30, 2021; Pennsauken on Aug. 30, 2021; Bridgeton on Aug. 31, 2021; Brooklawn on Aug. 31, 2021; Vineland on Aug. 31, 2021; Pennsauken on Sept. 1, 2021; Haddon Township on Sept. 1, 2021; and Haddon Township on Sept. 16, 2021. Two of the gas stations were victimized more than once. At each gas station, at least one member of the conspiracy brandished what appeared to be an assault weapon in order to threaten the gas station attendant. 

For several of the robberies, Bradshaw and his conspirators used a car they obtained by committing an armed carjacking in Philadelphia, Pennsylvania. Members of the carjacking conspiracy traveled from Camden to Philadelphia and brandished what appeared to be an assault weapon in order to force a driver and passenger from an automobile. They returned to Camden with the victims’ car, which they proceeded to use to drive to and from some of their gas stations robberies.  

The complaint against Rogers remains pending. The charges and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.

The count of conspiracy to commit robbery and the robbery count to which Bradshaw pleaded guilty each carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of conspiracy to commit armed carjacking to which Bradshaw pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 12, 2023.

U.S. Attorney Sellinger credited special agents with Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s guilty plea. He also thanked the Camden County Prosecutor’s Office, Bridgeton City Police Department, Brooklawn Borough Police Department, Camden County Police Department, Haddon Township Police Department, New Jersey State Police, Oaklyn Police Department, Pennsauken Township Police Department, Vineland Police Department, and the Philadelphia Police Department for their assistance.  

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

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

Sulaiman Dosunmu, 41, of Darby, Pennsylvania, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an indictment charging him with one count of conspiracy to commit bank fraud.

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

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

Dosunmu admitted using several false identities to open fraudulent bank accounts, making numerous deposits of stolen checks to these accounts, and withdrawing funds from the accounts.

The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for Jan. 13, 2023.

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

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

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

NEWARK, N.J.– A Passaic County, New Jersey, woman today admitted her role in a scheme to embezzle over $3.7 million from her employer while she was the company’s chief financial officer and director of operations, U.S. Attorney Philip R. Sellinger announced.

Amy Aldi, 50, of Wayne, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging her with wire fraud.

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

From January 2018 through December 2020, Aldi abused her position as chief financial officer and director of operations for a New Jersey-based company to embezzle millions of dollars by withdrawing cash from the company’s operating account and then using the cash for her own personal benefit. Aldi, without authorization, made over 200 cash withdrawals, in amounts ranging from $5,000 to $25,000 per withdrawal, totaling more than $3.7 million.

Aldi concealed the theft by falsifying company accounting and financial records, including making false journal entries and altering bank statements issued to the company for the company’s operating account.

The wire fraud charge carries a maximum penalty of 20 years in prison and a fine of $250,000 fine or twice the gross gain or loss from offense, whichever is greatest. Sentencing is scheduled for Jan. 10, 2023.

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 guilty plea. 

The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.

NEWARK, N.J. – An Essex County, New Jersey, man today admitted scheming with others to use credit cards and checks that were stolen from the mail by at least two U.S. Postal Service (USPS) employees to make hundreds of thousands of dollars of purchases, Attorney for the United States Vikas Khanna announced.

Adeeb Salih, 30, of East Orange, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to commit bank fraud.

According to documents filed in this and other cases and statements made in court:

Salih obtained checks, including U.S. Treasury checks, and credit cards from Yaseen Salih, 25, and Jahad Salter, 26, who had recruited USPS employees, including Khadijah Banks Oneal, 31, and Ashley Taylor, 28, to steal the credit cards and checks from the mail in exchange for compensation. Once they obtained the stolen credit cards, Adeeb Salih, Yaseen Salih, and Salter fraudulently posed as the accountholders of the stolen cards when calling the banks that issued the cards and used personal identifying information belonging to the accountholders to obtain or change information about the stolen credit cards. They then used the stolen credit cards to make purchases in New Jersey and elsewhere. Adeeb Salih also caused the stolen checks to be deposited into bank accounts that he controlled and withdrew proceeds from those checks from the accounts in the form of cash. This resulted in attempted losses of over $250,000.

Yaseen Salih, Salter, Banks-Oneal, and Taylor previously pleaded guilty for their respective roles in this scheme and are awaiting sentencing.

The charge of conspiracy to commit bank fraud carries a maximum punishment of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for Jan. 10, 2023.

Attorney for the United States Khanna credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division; and special agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, District of New Jersey; the U.S. Secret Service, New York Field Office; the Treasury Inspector General for Tax Administration, Mid-Atlantic Field Division; the Department of Homeland Security, Homeland Security Investigations, Newark Field Office; the Livingston, New Jersey Police Department; the Newark Police Department; the Essex County Sheriff’s Office; the New Providence, New Jersey, Police Department; and the Berkeley Heights, New Jersey, Police Department, for their assistance.

The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man today admitted distributing and possessing with intent to distribute heroin and cocaine base, U.S. Attorney Philip R. Sellinger announced today.

Raquan Rawls, aka “Bandz,” 24, of Newark, pleaded guilty before U.S. District Court Judge John Michael Vazquez by videoconference to two counts in a superseding indictment charging him with distribution and possession with intent to distribute heroin and cocaine base, (Count Eight), and distribution and possession with intent to distribute heroin (Count Nine).  

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

Stephen Crane Village is a public housing complex in Newark, on the border with Belleville. From at least February 2019 through February 2020, law enforcement officers investigated individuals that controlled an open-air drug market that operated within Stephen Crane Village. On Nov. 21, 2019, Rawls and others sold heroin and cocaine base to an individual while under surveillance by law enforcement. On Dec. 13, 2019, Rawls sold heroin to an individual while under surveillance by law enforcement.

The drug charges to which Rawls pleaded guilty both carry a statutory maximum of 20 years in prison, and a maximum fine of $1 million. Sentencing is scheduled for Jan. 23, 2023.

U.S. Attorney Sellinger credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; the Belleville Police Department, under the direction of Chief Mark Minichini; special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II; and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s plea. He also thanked the U.S. Marshals Service, the Nutley Police Department, the Bloomfield Police Department, the West Orange Police Department, the Verona Police Department, the Orange Police Department and the Bergen County Sheriff’s Office for their assistance with this case.

This investigation was part of the Newark Violent Crime Initiative (VCI), where the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate crime in Newark and the surrounding cities. 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 Tracey Agnew of the U.S. Attorney’s Office in Trenton.

NEWARK, N.J. – A former telecommunications company employee was charged for his role in a scheme to fraudulently unlock the Subscriber Identification Module (SIM) cards of thousands of mobile phones, U.S. Attorney Philip R. Sellinger announced today.

Richard Forrest Sherman, 43, of previously of Salem, Oregon, and now Boerne, Texas, is charged by complaint with wire fraud conspiracy in Newark federal court. He was arrested today in Texas, had his initial court appearance before U.S. Magistrate Judge Henry Bemporad in federal court in the Western District of Texas, and was released on $30,000 unsecured bond.

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

Sherman worked at a multinational telecommunications company. While there, he managed an account for a customer that received an exemption to unlock the SIM cards of mobile devices. Sherman exploited this exemption by creating a series of customer accounts within the carrier’s system to make the accounts look like an affiliate company of the customer that actually received the exemption. Sherman and others then submitted bulk unlocking requests through these fake affiliate accounts that Sherman set up before leaving the telecommunications company. 

Sherman, through his entities, received payment from others in exchange for causing the fake affiliate accounts to successfully send International Mobile Equipment Identity (IMEI) numbers in bulk to the carrier. The carrier, believing that the fake affiliate company was entitled to the unlocking exception, unlocked these IMEIs in bulk. Unlocking these IMEIs permitted others involved in the scheme to resell the phones for profit – the phones would have otherwise remained locked or required payment of a fee to be unlocked. Sherman set up the fake affiliate accounts in or around 2013; he and his conspirators exploited the fraud scheme until it was discovered in August 2020. 

The wire fraud conspiracy count is punishable by a maximum of 20 years and a fine of $250,000 or twice the pecuniary gain to the defendant or loss to the victims, whichever is greatest. 

U.S. Attorney Sellinger credited special agents of the U.S. Secret Service’s Seattle Field Office, under the direction of Special Agent in Charge Robert Canestrari, with the investigation leading to the charge.

The government is represented by Assistant U.S. Attorney Jamie L. Hoxie 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. 

NEWARK, N.J. – Bayer Corp., an Indiana corporation and manufacturer of pharmaceutical products, and its related entities, Bayer HealthCare Pharmaceuticals Inc., Bayer HealthCare LLC, and Bayer AG (collectively “Bayer”), have agreed to pay $40 million to resolve alleged violations of the False Claims Act in connection with the drugs Trasylol, Avelox, and Baycol. 

The settlement announced today arose from two “whistleblower” lawsuits filed and pursued by a former employee of Bayer who worked in its marketing department. 

In a lawsuit filed in the District of New Jersey, the employee, Laurie Simpson, alleged that Bayer paid kickbacks to hospitals and physicians to induce them to utilize the drugs Trasylol and Avelox, and also marketed these drugs for off-label uses that were not reasonable and necessary. Simpson further alleged that Bayer downplayed the safety risks of Trasylol. The lawsuit alleged that as a result of this conduct Bayer caused the submission of false claims to the Medicare and Medicaid programs and violated the laws of 20 states and the District of Columbia.  Trasylol is a drug used to control bleeding in certain heart surgeries. Avelox is an antibiotic approved to treat certain strains of bacteria.

Simpson filed a second lawsuit relating to Bayer’s statin drug, Baycol, which was later transferred to the District of Minnesota. That lawsuit alleged that Bayer knew about, but downplayed, Baycol’s risks of causing a serious syndrome that results from the death of muscle fibers and the release of their contents into the bloodstream. The lawsuit further alleged that Bayer misrepresented the efficacy of Baycol when compared to other statins and fraudulently induced the Defense Logistics Agency to renew certain contracts relating to Baycol. Subsequently, Trasylol and Baycol were withdrawn from the market for safety reasons. 

“As alleged in the complaints, Bayer – one of the largest pharmaceutical companies in the world – engaged in a series of unlawful acts, including paying kickbacks to doctors and hospitals, marketing them off-label, and downplaying their safety risks,” U.S. Attorney Philip R. Sellinger, District of New Jersey, said. “This resolution should send a message to the pharmaceutical industry that such conduct undermines the integrity of federal health care programs and jeopardizes patient safety. This settlement reflects the importance of the whistleblower’s role in litigating False Claims Act actions on behalf of the United States, and we thank Ms. Simpson and her counsel for stepping forward and pursuing this case to conclusion.”

“Ms. Simpson diligently pursued this matter for almost two decades,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “Today’s recovery highlights the critical role that whistleblowers play in the effective use of the False Claims Act to combat fraud in federal healthcare programs.”

“We recognize Ms. Simpson for her perseverance with this matter,” said U.S. Attorney Andrew M. Luger, District of Minnesota, said. “We are pleased we were able to work with the parties to facilitate this resolution and help bring this longstanding matter to a close.”

Under the terms of the settlement, Bayer will pay $38.9 million to the United States and $1.14 million to the 20 states and the District of Columbia.

The two actions resolved by the settlement were brought under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring suit on behalf of the government for false claims and share in any recovery. The United States may intervene in the action or, as in this case, the whistleblower may proceed with the matter. Ms. Simpson will receive $11 million from the proceeds of the settlement. 

The resolution obtained in this matter was supported by a coordinated effort between the U.S. Attorney’s Office in the District of New Jersey, the Department of Justice Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office in the District of Minnesota.

The government is represented by Assistant U.S. Attorney Kruti D. Dharia of the District of New Jersey’s Opioid Abuse Prevention and Enforcement Unit, Senior Trial Counsel Sanjay M. Bhambhani of the Civil Division’s Commercial Litigation Branch, Fraud Section, and First Assistant U.S. Attorney Ann M. Bildtsen of the District of Minnesota.

The cases are captioned United States ex rel. Simpson v. Bayer Corp. Civ. No. 05-cv-3895 (D.N.J.), and United States ex rel. Simpson v. Bayer Corp., Civ. No. 08-cv-5758 (D.Minn).

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

NEWARK, N.J. – A global healthcare company has agreed to pay $6.3 million to resolve allegations that it violated the False Claims Act by selling items to the United States that were manufactured in non-designated countries in violation of the Trade Agreements Act of 1979, U.S. Attorney Philip R. Sellinger announced today.

The settlement resolves allegations that Novo Nordisk Inc. violated the Trade Agreements Act, which restricts the procurement of goods under certain government contracts to purchases from specific designated countries, by submitting false claims for payment for medical devices that were manufactured in non-designated countries. The settlement resolves claims that from July 2012 through November 2020, Novo Nordisk sold to United States government agencies its NovoFine 30G 8 mm needles, and that from May 2016 through November 2020, Novo Nordisk sold to United States government agencies its NovoFine 32G 6 mm needles, all of which were manufactured in non-designated countries.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri; special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Scott J. Lampert; the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the U.S. Army Criminal Investigation Division Philadelphia Fraud Resident Agency, under the direction of Special Agent in Charge Larry S. Moreland, with the investigation leading to the settlement.

The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the Health Care Fraud Unit in Newark.

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

NEWARK, N.J. – Four members and associates of a neighborhood street gang in Hudson County, New Jersey, admitted their respective roles in a gang-related stabbing, U.S. Attorney Philip R. Sellinger announced today.

Jermaine Jennings, aka “Maine” and “Drill,” 21, Divine Abraham, aka “Dee,” 22, Jamil Bowens, 21, and Jaylen Boone, 22, all of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court via video conference to separate informations charging each of them with one count of assault resulting in serious bodily injury in aid of racketeering.

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

On Aug. 3, 2020, Jennings, Abraham, Bowens, Boone, and four others, all of whom are associated with a street gang operating in and around the Curries Woods Public Housing Complex in Jersey City – identified as “Curries Woods” or the “Tay Tay Shrimp Gang” or the “Sharks” – assaulted a rival gang member in retaliation for a prior gang-related assault. As the victim was walking down a street in Jersey City, Jennings, Abraham, Bowens, Boone, and the others approached in two cars, parked in the middle of the street, and violently assaulted the victim, who was punched, kicked, and stabbed and suffered life-threatening injuries.

The count of assault resulting in serious bodily injury in aid of racketeering activity is punishable by a maximum of 20 years in prison and a fine of up to $250,000. Sentencing is currently scheduled as follows: Jennings, Jan. 4, 2023; Abraham and Bowens, Jan. 6, 2023; and Boone, Jan. 10, 2023.

U.S. Attorney Sellinger credited the special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; the Jersey City Police Department, under the direction of Public Safety Director James Shea; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and the Hudson County Department of Corrections with the investigation leading to the guilty pleas.

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

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

NEWARK, N.J. – A Florida lab owner has been charged with over $50 million in health care fraud related to fraudulent genetic cancer screening tests, Attorney for the United States Lee M. Cortes Jr. announced today.

Daniel Hurt, 48, Fort Lauderdale, Florida, is charged by information with one count of conspiracy to commit health care fraud. He had his initial appearance and arraignment by videoconference today before U.S. District Judge Kevin McNulty in Newark federal court.

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

Hurt owned several clinical laboratories that conducted or arranged for a variety of medical tests. Hurt paid kickbacks and bribes to various entities who supplied referrals and orders for genetic cancer screening tests (CGX) for Medicare and other health care benefit program beneficiaries, without regard to medical necessity. The laboratories submitted claims for payment to Medicare for these CGX tests. Medicare reimbursed the laboratories without knowing that the services were not medically necessary or were procured through the payment of kickbacks. From January 2019 to October 2021, Hurt, through the laboratories, submitted or caused to be submitted claims to Medicare, including claims for beneficiaries residing in New Jersey.  

Hurt paid kickbacks to entities who supplied referrals for each CGX test that was billed to Medicare and other health care benefit programs. To conceal the payments of bribes, Hurt and the suppliers entered into sham contracts to make it appear that the suppliers were engaged in, and being paid for, legitimate marketing and referral services. The scheme resulted in Medicare paying the laboratories at least $53.3 million for CGX test claims. Hurt received at least $26.9 million from the Medicare reimbursements.

The count of conspiracy to commit health care fraud carries a maximum potential punishment of 10 years in prison, and a maximum fine of $250,000.

Hurt has also been charged in the Western District of Pennsylvania and the Southern District of Florida in relation to other health care offenses. Those charges are also pending.

Attorney for the United States Cortes credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office under the direction of Special Agent in Charge Christopher Algieri with the investigation leading to today’s charge.

The government is represented by Assistant U.S. Attorney Sean M. Sherman of the Opioid Abuse Prevention & Enforcement Unit in Newark.

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

NEWARK, N.J. – A Florida man was arrested for allegedly obtaining more than $1 million in government benefits, U.S. Attorney Philip R. Sellinger announced today.

Michael Blanc, 33, of Miami, Florida, appeared by videoconference in Florida on Aug. 24, 2022, before U.S. Magistrate Judge Chris M. McAliley, who set bond at $250,000.

According to the complaint:

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic, including workers who are not ordinarily eligible for unemployment insurance benefits. The CARES Act also enabled the Small Business Association (SBA) to offer funding to business owners through the COVID-19 Economic Injury Disaster Loans (EIDL).

From March 2020 to in or about December 2020, five states paid out approximately $960,000 in unemployment insurance benefits in response to applications that used an internet provider (IP) address associated with Blanc in furtherance of the claim. Law enforcement officers interviewed four people in whose names the claims were made; each said they did not file a claim, authorize anyone to make a claim, or know Blanc.

In July 2020, the SBA provided an EIDL of approximately $65,000 in response to an application in the name of a victim. The loan was transferred to a bank account in Blanc’s name. The IP address used to file the EIDL application is also connected to 67 additional EIDL applications. The SBA provided approximately $250,000 in response to these applications.  

The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered to the victims of his offense.

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 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 charges. U.S. Attorney Sellinger also thanked the FBI, Miami Division, and the New Jersey Department of Labor & Workforce Development for their assistance in the investigation.

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

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

NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted leading a drug trafficking organization that operated out of a drug mill located in the Bronx, New York, U.S. Attorney Philip R. Sellinger announced.

Luis Cabrera, 37, of Perth Amboy, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and methamphetamine. Five other individuals have previously pleaded guilty to charges arising from this investigation: Pedro Acosta Ramos, 34; Rodolfo Antonio Acosta Liriano, 38; Johan Manuel Lopez Brito, 35; Humberto Antonio Rodriguez, 35; and Julian Brito Sanchez, 50.

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

From 2019 to June 2020, Cabrera was a leader of a drug trafficking organization that distributed heroin, fentanyl, and methamphetamine to customers in New Jersey and elsewhere. He operated a drug mill in an apartment located in the Bronx, New York. On June 30, 2020, law enforcement searched the mill and recovered heroin, fentanyl, and methamphetamine. The quantity of heroin amounted to 8,650 individual doses. Law enforcement seized the drug trafficking organization’s distribution materials, including glassine baggies, tape, scales, cutting agents to mix with narcotics to increase their weight and value, and stamps for the branding of the drugs. Cabrera was at the mill during the search and was arrested. On previous occasions, Cabrera met with conspirators in New Jersey and also purchased supplies for the mill in New Jersey.

Cabrera faces a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a $5 million fine. Sentencing is scheduled for Jan. 24, 2023.

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

The government is represented by Assistant U.S. Attorney Katherine Calle of the Special Prosecutions Division in Newark.

NEWARK, N.J. – A former investment bank employee was arrested today in Hudson County, New Jersey, for cyberstalking former bank colleagues, U.S. Attorney Philip R. Sellinger announced.

Gawargyous, aka “George,” Shind, 31, of Jersey City, New Jersey is charged by complaint with cyberstalking. Shind is scheduled to appear by videoconference today before U.S. Magistrate Judge André M. Espinosa.

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

From April 2020 to November 2021, Shind engaged in a pattern of harassment directed towards at least four female victims by employing means of electronic communications, including text messages and computing services platforms, to threaten grievous bodily injury and death. Shind began a campaign of cyberstalking multiple victims after his termination from a bank where he and the victims were employed. Shind sent messages stating his intention to kill the victims and their families and referred to himself as a “predator.”  

The charge of cyberstalking is punishable by five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. 

U.S. Attorney Sellinger credited Special Agents of the Federal Bureau of Investigation in both the Newark and New York field offices, under the direction of Special Agent in Charge James E. Dennehy of the Newark field office, and Assistant Director in Charge Michael J. Driscoll of the New York field office, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Barry O’Connell of the General Crimes 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.