District of New Jersey
Press releases recorded for this federal judicial district.
Two Paterson Police Officers Sentenced to Prison Terms for Roles in Violating Individuals’ Civil RightsRead the Press Release
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.
Three Paterson Police Officers Sentenced for Roles in Violating Individuals’ Civil RightsRead the Press Release
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.
Atlantic County Firefighter Convicted on Four Counts in Multimillion-Dollar Health Care Fraud ConspiracyRead the Press Release
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.
Three Members of Newark Drug Enterprise Admit Racketeering and Murder ChargesRead the Press Release
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.
Owner of Car Dealership Sentenced to Two Years in Prison for Engaging in Large-Scale FraudRead the Press Release
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 Man Admits String of Armed Robberies and CarjackingsRead the Press Release
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.
Pennsylvania Man Admits Bank Fraud Conspiracy that Operated in South Jersey and Southeastern PennsylvaniaRead the Press Release
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.
Passaic County Woman Admits Embezzling over $3.7 Million from Employer as Company’s Chief Financial OfficerRead the Press Release
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.
Essex County Man Admits Using Credit Cards and Checks Stolen from U.S. Mail to Attempt to Defraud Banks of over $250,000Read the Press Release
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.
Essex County Man Admits Distributing Crack and Heroin in Stephen Crane VillageRead the Press Release
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.
Former Employee of Telecommunications Company Charged for Large-Scale Mobile Phone Unlocking SchemeRead the Press Release
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.
Bayer Corp. to Pay $40 Million to Resolve Alleged use of Kickbacks and False Statements Relating to Three DrugsRead the Press Release
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.
Global Healthcare Company to Pay $6.3 Million to Resolve False Claims Act AllegationsRead the Press Release
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.
Four Jersey City Gang Members and Associates Admit Gang-Related StabbingRead the Press Release
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.
Florida Lab Owner Charged in $53 Million Health Care Fraud and Kickback Scheme Related to Genetic Cancer Screening TestsRead the Press Release
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.
Florida Man Charged with Fraudulently Obtaining $1 Million in Unemployment Benefits and COVID-19 LoanRead the Press Release
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.
Middlesex County Man Admits Leading Heroin and Fentanyl Drug Trafficking OrganizationRead the Press Release
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.
Former Investment Bank Employee Arrested for CyberstalkingRead the Press Release
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.
Essex County Man Sentenced to 135 Months in Prison for Distributing Child PornographyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 135 months in prison for distributing multiple images and videos of child pornography, U.S. Attorney Philip R. Sellinger announced.
Mauricio Calderon, 51, of Belleville, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of distribution of child pornography. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From March 2020 to April 10, 2020, Calderon used an encrypted, internet-based application to distribute multiple graphic videos depicting the sexual assault of minors. During the course of the investigation, Calderon publicly posted multiple videos depicting the sexual abuse of children, some of which featured infants and toddlers, in a chatroom, and also sent links that redirected to web pages containing child pornography. Law enforcement also discovered numerous videos and images of child sexual abuse on Calderon’s electronic devices when he was arrested at his home in September 2020.
In addition to the prison sentence, Judge Cecchi sentenced Calderon to 10 years of supervised release.
U.S. Attorney Sellinger credited special agents with 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 today’s sentencing.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Atlantic City Man Admits Possession of Child PornographyRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man today admitted possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Cory Newman, 44, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court 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:
On May 20, 2021, agents with Department of Homeland Security, Homeland Security Investigations, (HSI) served a search warrant at Newman’s residence in Atlantic City and discovered electronic devices containing numerous videos and images of children being sexually abused.
Because Newman has been previously convicted of possession of child pornography, the charge of possession of child pornography carries an enhanced mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. Sentencing is scheduled for Jan. 4, 2023.
U.S. Attorney Sellinger credited special agents of HSI, under the direction of Acting Special Agent in Charge Richard W. Reinhold. He also thanked the Atlantic County Prosecutor’s Office, under the direction of Acting Atlantic County Prosecutor William E. Reynolds, and the Atlantic City Police Department, under the direction of Interim Officer in Charge Deputy Chief James A. Sarkos, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Johns of the Criminal Division in Camden.
Former New Jersey Department of Children and Family Services Caseworker Charged with Possession and Transportation of Child Pornography, and Attempted Sex Trafficking of MinorRead the Press Release
NEWARK, N.J. – A former caseworker for the New Jersey Department of Children and Family Services, Division of Child Protection and Permanency, was indicted today on charges of possession and transportation of child pornography and attempted sex trafficking of a minor, U.S. Attorney Philip R. Sellinger announced.
Trent Collier, 56, of Kearny, New Jersey, is charged in a three-count indictment with one count of possession of child pornography, one count of transportation of child pornography, and one count of attempted sex trafficking of a minor.
According to documents filed in this case and statements made in court:
On Sept. 28, 2021, Collier arrived at Newark Liberty International Airport aboard a flight from the Dominican Republic. Law enforcement officials searched Collier’s cellular phone and identified at least two images of child pornography. The investigation also revealed that from June 19, 2021, through Sept. 29, 2021, Collier attempted to solicit a minor for a commercial sex act.
The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison. The charge of transportation of child pornography carries a statutory mandatory minimum penalty of five years in prison and a maximum penalty of 20 years in prison. The charge of attempted sex trafficking of a minor carries a statutory mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison. Each count also carries a fine of up to $250,000 or twice the gain or loss from the offense, whichever is greatest.
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 in Newark; and the New Jersey Office of the Attorney General, under the direction of Acting Attorney General Matthew J. Platkin, with the investigation.
The government is represented by Assistant U.S. Attorney Camila A. Garces of the General Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Essex County Man Sentenced to One Year in Prison for Obstructing Justice while on Pre-Trial ReleaseRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 12 months in prison for obstructing justice while on pre-trial release, U.S. Attorney Philip R. Sellinger announced.
Robert Alexander, 45, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to a superseding indictment charging him with obstructing justice while on pre-trial release.
According to documents filed in this case and statements made in court:
On Jan.14, 2019, Alexander pleaded guilty to an information charging him with one count of making a false statement on a loan application in a criminal case that was pending before Chief U.S. District Judge Freda L. Wolfson. On Sept. 4, 2019, Judge Wolfson sentenced Alexander to 46 months in prison; the sentence imposed by Judge Martinotti today will run consecutively to that sentence.
On Oct. 8, 2019 – the day before Alexander was scheduled to voluntarily surrender to the Bureau of Prisons to begin serving his sentence – he caused a forged medical note to be submitted to Judge Wolfson in support of a request to delay the date of his voluntary surrender. The forged medical note contained falsified information and was submitted with the specific intent to influence and impede Judge Wolfson in the discharge of her duties as the judge presiding over his case. At the time of the offense, Alexander was on pre-trial release.
In addition to the prison term, Judge Martinotti sentenced Alexander to three years of supervised release.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s sentencing.
The government is represented by U.S. Attorney DeNae Thomas of the Criminal Division in Newark.
Barred Broker Dealer Charged with $1 Million Investment Scheme and Fraudulently Obtaining $96,000 Cares Act LoanRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man was charged today with defrauding victims in an investment fraud scheme out of at least $1 million, and with fraudulently obtaining a loan of approximately $96,000 meant to help small businesses during the COVID-19 pandemic, U.S. Attorney Philip R. Sellinger announced.
Anthony Mastroianni Jr., 48, of Manalapan, New Jersey, charged in a five-count complaint with wire and mail fraud. He is scheduled to make his initial court appearance this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in this case and statements made in court:
In 2016, Mastroianni consented to being permanently barred by the Financial Industry Regulatory Authority (FINRA), which prohibited him from acting as a broker or intermediary in securities transactions. Despite that debarment, from January 2017 to August 2022, Mastroianni defrauded victim investors, many of whom were senior citizens, by falsely and fraudulently claiming that he would generate large investment profits for them through his company, Global Business Development & Consulting Corp. Instead of investing the money as promised, Mastroianni used victim funds on personal expenses, including household rent, automobile payments, credit card bills, and cash withdrawals. Mastroianni defrauded 10 victims out of $1 million.
Mastroianni also exploited the ongoing global pandemic by submitting a false and fraudulent application to obtain $96,300 from a federal COVID-19 emergency relief loan meant for distressed small businesses. As with his investment fraud scheme, Mastroianni misused the loan proceeds to make personal purchases and cash withdrawals.
Each count of mail and wire fraud carries a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense.
U.S. Attorney Sellinger credited special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Thirteen Individuals Charged with Narcotics Trafficking and Firearms OffensesRead the Press Release
TRENTON, N.J. – Thirteen individuals were charged today with various drug trafficking and firearms offenses arising from an investigation targeting unlawful activities in a northeast neighborhood in the city of Trenton, U.S. Attorney Philip R. Sellinger announced.
Jamal Wilson, aka “Vill,” and Theodore Meekins, aka “Meech,” both of Trenton, were among 12 defendants charged in a 16-count criminal complaint unsealed today. Ten of the defendants were arrested this morning as part of a takedown coordinated by federal and local law enforcement authorities. One defendant is currently detained on related charges. One defendant remains at large. A 13th defendant, Alterrick Livingston, 42, of Trenton, was arrested and charged today in a separate one-count complaint following law enforcement’s court-authorized search of his Trenton apartment and the recovery of five privately made firearms (PMFs), two fully drilled frames, and hundreds of rounds of ammunition, and numerous tools and accessories used for manufacturing and assembling firearms.
Wilson was charged with three counts of distribution and possession with intent to distribute controlled substances, including 100 grams or more of heroin, 28 grams or more of cocaine base, and additional quantities of cocaine. Meekins was charged in three counts with distribution and possession with intent to distribute controlled substances, as well as possession of a firearm by a convicted felon. Livingston was charged with possession of ammunition by a convicted felon. The remaining defendants were charged with varying counts of distribution or possession with intent to distribute controlled substances, including heroin, cocaine base, and cocaine. Those arrested today are scheduled to make their initial court appearances this afternoon before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.
According to the two federal criminal complaints:
Beginning in July 2020, law enforcement agencies investigating drug trafficking in the area of Garfield, Cleveland, and Logan avenues in Trenton executed numerous controlled purchases of narcotics from multiple defendants, including Wilson and Meekins. On multiple occasions, law enforcement officers made multiple seizures of unlawfully trafficked narcotics, including, suspected heroin, cocaine base and a firearm from a vehicle driven by Meekins, a previously convicted felon. Communications that law enforcement intercepted revealed that Wilson was a significant drug trafficker of heroin, cocaine base, and cocaine in the area, specifically in the area of the Grand Court Villas apartment building, East State Street and South Olden Avenue; Garfield Avenue Playground; and other locations. In connection with today’s coordinated operation, law enforcement conducted a court-authorized search of Livingston’s Trenton apartment, and recovered multiple firearms, hundreds of rounds of ammunition, and numerous tools and accessories used for manufacturing and assembling firearms.
The charges of distribution and possession with intent to distribute 100 grams of heroin and/or 28 grams of cocaine base carry a statutory mandatory minimum term of imprisonment of five years, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. The remaining narcotics charges carry a maximum potential penalty of 20 years in prison, and a maximum fine of $1 million. The firearm and ammunition counts with which Meekins and Livingston are charged each carry a maximum potential penalty of 10 years in prison and a $250,000 fine.
The charges filed today are the result of an investigation by the Greater Trenton Safe Streets Task Force. Led by the FBI, the Task Force is comprised of various federal, state, and local law enforcement agencies, and its mission is to combine the resources and intelligence of the participating agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy; 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; officers of the Trenton Police Department, under the direction of Director Steve Wilson; officers of the Burlington City Police Department, under the direction of Chief of Police John Fine; officers of the Burlington Township Police Department, under the direction of Public Safety Director Bruce Painter; officers of the Willingboro Township Police Department, under the direction of Acting Public Safety Director Ian Bucs; and detectives with the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Ashley Super Pitts and Special Assistant U.S. Attorney Christopher Matthews of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
*denotes at-large
Defendant
Age
Residence
Jamal Wilson, aka “Vill”
46
Trenton
Theodore Meekins, aka “Meech”
40
Trenton
Louis Williams, aka “Bake”
38
Trenton
Clinton Rodriguez, aka “C-Rod”
46
Morrisville, Pennsylvania
Kai Bowman Jr.
45
Trenton
Glenn Moore
29
Levittown, Pennsylvania
*Rashied McKines
48
Trenton
Michael Williams, aka “Ice”
45
Trenton
Derrick Jiles
59
Trenton
Dion Morris
36
Cherry Hill, New Jersey
Jerry Farmer
46
Trenton
James Edwards
27
Ewing, New Jersey
Alterrick Livingston
42
Trenton
New Jersey Man Charged with Murder-for-Hire Scheme Targeting Minor GirlRead the Press Release
NEWARK, N.J. – A Newark man was indicted for his role in a murder-for-hire scheme to kill a minor girl, U.S. Attorney Philip R. Sellinger announced today.
Armando Conceicao, 57, is charged in a two-count indictment with conspiracy to commit murder for hire and causing another to travel interstate or using interstate facilities with intent that a murder for hire be committed.
According to the indictment:
In May 2021, Conceicao communicated with another individual for the purposes of killing or locating another person to kill the victim. Conceicao met with this individual around that time and provided victim’s address in Texas, a photograph of the victim, and a quantity of cash so that individual could conduct reconnaissance at the victim’s residence. The individual drove from New Jersey to Texas and photographed the victim’s residence, a car belonging to the victim’s father, and surrounding area. Conceicao instructed individual to proceed with the scheme to murder the victim.
The murder-for-hire charge is punishable by a maximum of 10 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Olta Bejleri of the Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New Jersey Correctional Officer Admits Accepting BribeRead the Press Release
CAMDEN, N.J. – A correctional officer at the Salem County Correctional Facility today admitted accepting a bribe in exchange for agreeing to smuggle a telephone into the jail for a prisoner, U.S. Attorney Philip R. Sellinger announced.
Marcus Kidd, 36, of Elmer, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of attempted extortion under color of official right.
According to documents filed in this and other cases and statements made in court:
In May 2022, Kidd agreed with a federal pretrial detainee housed at the Salem County Correctional Facility to smuggle a phone into the jail and provide the phone to the detainee in exchange for a $5,000 bribe. Kidd met with an associate of the detainee at a parking lot in Elmer, New Jersey, and accepted $5,000 in cash and a cell phone.
The count of attempted extortion under color of official right to which Kidd pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 20, 2022.
U.S. Attorney Sellinger credited special agents with FBI, Philadelphia Field Office, under the direction of Special Agent in Charge Jacqueline Maguire, and Newark Field Office, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
Four Union County Men Charged with Armed Robbery of Gas StationRead the Press Release
NEWARK, N.J. – Four Union County men were arraigned today for their roles in the armed robbery of a gas station in Union County, U.S. Attorney Philip R. Sellinger announced.
Wiggins Cadet, 24, and Khalil Brown, 23, both of Roselle, New Jersey; and Zyquan McCray, 23, and Tyrone Crutchfield-Davis, 27, both of Linden, New Jersey, are each charged in a five-count superseding indictment returned Aug. 2, 2022, with one count of Hobbs Act robbery and one count of conspiracy to commit a Hobbs Act robbery. Cadet, McCray, and Crutchfield-Davis are also charged with one count of brandishing a firearm during a crime of violence and one count of conspiracy to brandish a firearm during a crime of violence. Cadet is charged with one count of possession of a firearm as a previously convicted felon. The four defendants were arraigned today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and all entered pleas of not guilty.
According to documents filed in this case and statements made in court:
On Dec. 15, 2019, a gas station in Cranford, New Jersey, was robbed by two masked individuals, later identified as Cadet and McCray. Cadet brandished a firearm as he and McCray stole cash from two gas station attendants. After fleeing the gas station, Cadet and McCray got into a getaway car driven by Brown. The investigation revealed that Crutchfield-Davis, one of the gas station attendants, was involved in the robbery scheme.
The Hobbs Act robbery, conspiracy to commit Hobbs Act robbery, and conspiracy to brandish a firearm during a crime of violence counts each carry a maximum potential penalty of 20 years in prison. The brandishing of a firearm during a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. The possession of a firearm by a convicted felon carries a maximum potential penalty of 10 years in prison. Each count also carries a fine of up to $250,000 or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews, the Cranford Police Department, under the direction of Police Chief Ryan Greco, and the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Camila A. Garces of the General Crimes Unit in Newark.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
French Executive Admits Making False Statements to FDA to Fraudulently Obtain Control of Pharmaceutical ProductRead the Press Release
NEWARK, N.J. – A French national and executive of a pharmaceutical company admitted making false statements to gain control of the rights to sell a weight-loss drug in the United States, U.S. Attorney Philip R. Sellinger announced today.
Alain Bouaziz, 69, a French citizen and resident of the United Arab Emirates, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of making false statements to the U.S. Food and Drug Administration.
According to documents filed in this case and statements made in court:
Bouaziz represented himself to be the chief operating officer of Hexim Pharmaceuticals (Hexim), a company headquartered in Secaucus, New Jersey. Hexim was previously known as Alkopharma USA Inc.
Beginning in February 2018, Bouaziz submitted forged documents and made false statements to the FDA to try to fraudulently gain control of Sanorex, a weight-loss pharmaceutical owned by a major international pharmaceutical company. Bouaziz sent letters and documents by email and in hard copy to the FDA falsely stating that Hexim had purchased the New Drug Application for Sanorex and requesting a meeting about marketing Sanorex in the United States. These representations were false because neither Hexim nor Alkopharma owned the rights to distribute Sanorex.
The count of making false statements is punishable by a maximum term of five years in prison and a maximum fine of up to $250,000, or twice the gross gain or loss caused by the offense, whichever is greatest. Sentencing is scheduled for Dec. 14, 2022.
U.S. Attorney Sellinger credited special agents of the Food and Drug Administration, Office of Criminal Investigation, under the direction of Special Agent in Charge Fernando P. McMillan, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Hayden M. Brockett of the Health Care Fraud Unit in Newark.
Canadian Man Admits Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Bronx, New York, man admitted possessing and distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Perth De, aka “Parthasarthie Kapoor,” 48, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of distribution of child pornography and one count of possession of child pornography.
According to documents filed in this case and statements made in court:
On Jan. 21, 2020, De was arrested at Newark Liberty International Airport pursuant to a fugitive warrant issued by on behalf of the government of Canada, which previously charged De with sexually assaulting minors. During a search incident to De’s arrest, law enforcement found several cellular phones in De’s luggage. A subsequent forensic examination of one of the cellular phones revealed numerous videos of children being sexually abused. The forensic examination further revealed that some of the videos had been distributed from the cellular phone.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison and a fine of $250,000. The charge of possession of child pornography carries a maximum penalty of 10 years in prison and a fine of $250,000. Sentencing is scheduled for Dec. 19, 2022.U.S. Attorney Sellinger credited special agents with the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, and with the U.S. Department of State, Diplomatic Security Service, with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
Camden Man Sentenced to 10 Years in Prison for Illegally Possessing a WeaponRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 120 months in prison for illegally possessing a weapon, U.S. Attorney Philip R. Sellinger announced.
Anthony D. Parker, aka “Papa Smurf,” 38, of Camden, was convicted at trial in March 2022 before U.S. District Judge Noel L. Hillman of one count of being a felon in possession of a weapon. Parker has three previous convictions for illegally possessing a weapon, as well as prior drug convictions.
In addition to the prison term, Judge Hillman sentenced Parker to three years of supervised release and fined him $5,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Camden County Prosecutor’s Office, under the direction of Acting Camden County Prosecutor Grace C. MacAulay; and officers of the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the Criminal Division in Camden.
Atlantic City Woman Sentenced to 18 Years in Prison for Drug Distribution OffensesRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, woman was sentenced to 216 months in prison after being convicted at trial of two drug distribution offenses, U.S. Attorney Philip R. Sellinger announced today.
Rajeri Curry, 33, was previously convicted of one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and one count of possession with intent to distribute heroin, following a nine-day trial before U.S. District Judge Noel L. Hillman in Camden federal court. Judge Hillman imposed the sentence on Aug. 11, 2022, in Camden federal court.
According to documents filed in this case and the evidence at trial:
On Jan. 17, 2018, law enforcement executed a search at Curry’s residence. Inside Curry’s home, law enforcement recovered heroin, stamped with the words “DOA” and “BODY COUNT,” which Curry intended to distribute to her customers in Atlantic City. Also, between March and June of 2018, Curry conspired with drug suppliers in Newark to distribute and possess with intent to distribute heroin and fentanyl.
In addition to the prison term, Judge Hillman sentenced Curry to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the DEA’s Newark Office, under the direction of Special Agent in Charge Susan A. Gibson, officers from the Atlantic City Police Department, under the direction of Acting Chief James A. Sarkos, and the Atlantic County Prosecutor’s Office, under the direction of Prosecutor William E. Reynolds, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Lauren E. Repole, Chief of the General Crimes Unit in Newark, and Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office in Trenton.
Virginia Man Charged with Conspiring to Launder Money Obtained from Internet-Enabled Romance ScamsRead the Press Release
NEWARK, N.J. – A Virginia man was charged with conspiring to launder money taken from victims across the United States, many of whom were elderly, as a part of a series of romance scams, U.S. Attorney Philip R. Sellinger announced today.
Richard Agyeman Dua, 44, of Fredericksburg, Virginia, is charged by complaint with one count of money laundering conspiracy.
According to documents filed in this case and statements made in court:
Agyeman laundered money obtained through romance scams through business accounts he opened in the name of Mineral Logistics. After receiving the romance scam victims’ money, Agyeman wired thousands of dollars to overseas bank accounts, including accounts in Canada, Hong Kong, and China. Many of the victims were told of a scheme involving gold or an inheritance held up overseas; at least one victim lost her house as a result of the fraud. Law enforcement estimates that Agyeman received at least $734,000 in fraudulent proceeds.
The money laundering conspiracy charge has a maximum term of 20 years, and a maximum fine of $500,000 or twice the value of the funds involved in the transfer, whichever is greater.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Special Agent in Charge Gregory D. Nelsen in Cleveland, with the investigation leading to the charges. He also thanked the FBI in Richmond, Virginia, for its assistance.
The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the Cybercrime 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.
Nevada Woman Charged with Obstructing Justice by Falsifying Records while Released on BailRead the Press Release
NEWARK, N.J. – A Nevada woman will make her initial court appearance today for allegedly falsifying records in connection with criminal charges she is currently facing in the District of New Jersey, U.S. Attorney Philip R. Sellinger announced.
Anna Kline, aka “Jordana Weber,” is charged by complaint with one count of falsifying records in a federal investigation. She was arrested Aug. 10, 2022, and is scheduled to appear today before U.S. Magistrate Judge Craig Denney in the District of Nevada.
According to the complaint:
On July 31, 2019, Kline and a conspirator, Jason Torres, were charged by criminal complaint in the District of New Jersey for their roles in a $7 million fraudulent advance fee scheme orchestrated by Kline between April 2017 and July 2019.
While out on bail on this charge, Kline, through her then-attorney, provided the government with a .pdf document that purported to be a portion of a Cellebrite report showing iMessages between Kline and Torres showing Torres making threats toward Kline and insinuating that Torres was primarily responsible for the fraudulent advance fee scheme.
A forensic review of the .pdf document revealed that it had been falsified. Kline also presented the fake Cellebrite report to a family court in California as part of a custody dispute between Kline and Torres. During that hearing, Kline represented that the report had been generated by a forensic examiner named “Drew Andrews.” The investigation revealed that “Andrews” did not exist, but was actually an alter-ego of Kline’s that she used to deceive the California family court, her attorney, and a forensic expert.
In addition to the fraudulent Cellebrite report, Kline also provided the government a computer that she claimed contained an iTunes backup that included the alleged text messages from Torres. A forensic review of the computer revealed that data on the computer, including the iTunes backup, had been manipulated. Kline changed, or caused to be changed, certain time stamps on the computer to make it appear as if the iTunes backup and other files stored on the computer were created in April 2020, when the fictional “Andrews” purportedly ran the fraudulent Cellebrite report.
The obstruction charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s 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.
Middlesex County Company Admits Undervaluing Merchandise to Avoid Paying U.S. Customs DutiesRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, company has entered into a settlement agreement with the United States to resolve allegations that it made false statements to avoid paying customs duties, U.S. Attorney Philip R. Sellinger announced today.
According to the admissions and contentions of the United States in the settlement agreement:
Eos Energy Storage LLC (Eos) is a publicly traded company headquartered in Edison, New Jersey, that designs and sells industrial batteries to power companies and other commercial enterprises. From July 8, 2018, to June 7, 2019, Eos purchased components for its batteries from third parties in the United States and elsewhere, and then provided those components to a foreign manufacturer to be included in the assembly of batteries that Eos imported into the United States. Once the batteries were assembled, Eos imported them into the United States.
When Eos imported the assembled batteries into the United States, the company should have declared to U.S. Customs the value of the components that it provided to the foreign manufacturer. Eos failed to declare the value of those components to U.S. Customs. Eos also failed to declare transportation and packing costs that should have been declared. In the settlement agreement, Eos admitted that as the importer of record, it was obligated to declare the value of the components, as well as the transportation and packing costs, but failed to do so on more than 60 occasions. Under the settlement agreement, Eos will pay $1.02 million to the United States pursuant to the False Claims Act.
The settlement with Eos resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The relator, Vincent Icolari, will receive 20 percent of the settlement amount recovered by the United States pursuant to the False Claims Act.
U.S. Attorney Sellinger credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, and U.S. Customs and Border Protection, Office of Field Operations under the direction of Director Francis Russo in New York, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.
The qui tam case is captioned United States ex rel. Icolari v. Eos Energy Storage, LLC, Civil Case No. 19-22129 (MCA) (LDW).
Four New Jersey Men Charged with Fentanyl Analogue Distribution and Money Laundering ChargesRead the Press Release
NEWARK, N.J. – Four New Jersey men were charged for their alleged roles in drug trafficking and money laundering conspiracies, U.S. Attorney Philip R. Sellinger announced today.
William Panzera, 49, of North Haledon, New Jersey; Thomas Padovano, 48, and Bartholomew Padovano, 71, both of Newark; and Sean Tighe, 46, of Kearny, New Jersey, are each charged in a second superseding indictment with one count of drug trafficking conspiracy and one count of international promotional money laundering conspiracy. Thomas and Bartholomew Padovano are also charged with domestic concealment money laundering conspiracy.
According to documents filed in this case and statements made in court:
Since at least 2014, the defendants and others imported and distributed various controlled substances and controlled substance analogues, including ketamine, ethylone, multiple fentanyl analogues, and synthetic cathinones, also known as “bath salts.” The drug trafficking organization members ordered the drugs from sources in China. They stored and distributed the controlled substances from a trailer on Delancey Street in Newark. They also procured one or more pill presses and pressed the fentanyl analogues into small blue pills that were designed to resemble a commercial opioid pill and were marketed as such. These pills contained various amounts of fentanyl analogues and resulted in at least three overdoses between 2016 and 2020.
The defendants allegedly paid for the drugs they imported by sending, or recruiting others to send, international wire payments to the Chinese sources of supply.
To conceal and disguise the nature and source of the illicit narcotics proceeds, Thomas and Bartholomew Padovano made numerous cash deposits into various personal and business accounts. Both the international wire payments, as well as the cash deposits, were structured in a manner to avoid suspicion.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security – Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Jason J. Molina; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to the charges. He also thanked the HSI in Philadelphia, the FBI – Newark Division, IRS-Criminal Investigation, the Newark Police Department, and the Essex County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek of the Criminal Division in Newark and Trial Attorneys Stephen Sola and Michael Khoo of the Justice Department’s Money Laundering and Asset Recovery Section.
This case was investigated under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The charges and allegations contained in the second superseding indictment are merely allegations, and the defendants are presumed innocent until proven guilty.
Camden County Man Sentenced to Five Years in Prison for Deploying Homemade Explosive at Local Fitness CenterRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced to 60 months in prison for setting off a homemade bomb at a fitness center, U.S. Attorney Philip Sellinger announced today.
Dwayne Vandergrift, 40, of Gloucester City, New Jersey, previously pleaded guilty before U.S. District Judge Karen Williams in Camden federal court to an information charging him with one count of malicious use of explosive materials. Judge Williams imposed the sentence on Aug. 10, 2022, in Camden federal court.
According to documents filed in this case and statements made in court:
In the early morning hours of Aug. 28, 2020, Vandergrift deployed a homemade explosive device at a Gloucester City fitness center. The bomb damaged the gym’s door and entryway. The gym had not yet opened for the day, and no one was inside. Law enforcement officers later searched Vandergrift’s home and located additional materials for building explosive devices and firearms.
In addition to the prison term, Judge Williams sentenced Vandergrift to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, South Jersey Resident Agency, Philadelphia Division, under the direction of Special Agent in Charge Jacqueline Maguire, with the investigation leading to the sentencing. He also thanked the New Jersey Office of Homeland Security and Preparedness, the Gloucester City Police Department, the New Jersey State Police, the Camden County Sheriff’s Office, Camden County Prosecutor’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Department of Homeland Security, Homeland Security Investigations, for their assistance.
The government is represented by Assistant U.S. Attorney Lindsey R. Harteis of the U.S. Attorney’s Office in Camden, New Jersey.
Brooklyn Man Charged for Fraudulently Entering Competitor Laboratory and Destroying and Stealing EquipmentRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man was arrested today for allegedly entering a laboratory business on false pretenses and destroying and stealing that business’ equipment, U.S. Attorney Philip R. Sellinger announced.
Eric Leykin, 31, of Brooklyn, New York, is charged by complaint with one count of wire fraud and one count of accessing a protected computer without authorization and recklessly causing damage. He appeared by videoconference today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was released on $1 million unsecured bond.
According to documents filed in this case and statements made in court:
Leykin was the CEO of a clinical reference laboratory based in New Jersey. Leykin’s laboratory competed against the victim business, another clinical reference laboratory also based in New Jersey. On June 30, 2022, Leykin bought a prepaid mobile phone and called an employee of the victim business, claiming to be a technician with a vendor that the victim business used to service its laboratory equipment. On that false pretense, Leykin scheduled an appointment with the victim business’ employee to supposedly service some of the victim business’ laboratory equipment. On July 1, 2022, the date of the supposed service appointment, Leykin went to the victim business and proceeded to destroy a significant amount of the victim business’ laboratory and computer equipment, in at least one instance doing so with a USB kill stick device. Leykin also stole multiple hard drives housed within the victim business’ equipment.
The wire fraud count carries a maximum potential penalty of 20 years in prison, and the computer intrusion count carries a maximum potential penalty of five years in prison. Both counts also carry a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Millburn Police Department, under the direction of Chief Brian Gilfedder; and the FBI in New York, under the direction of Assistant Director Michael Driscoll, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime 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.
Bergen County Man Charged with Distributing HeroinRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was charged with conspiring to possess with intent to distribute heroin, U.S. Attorney Philip R. Sellinger announced today.
Esmelby Estevez-Castillo, 35, of Ridgefield Park, New Jersey, was arraigned on Aug. 10, 2022, before U.S. Magistrate Judge Michael A. Hammer and pleaded not guilty. Estevez-Castillo was indicted on Aug. 2, 2022, on one count of conspiracy to distribute heroin and one count of possessing with intent to distribute at least 100 grams of heroin.
According to documents filed in this case and statements made in court:
From March 2019 through Dec. 3, 2020, Estevez-Castillo conspired with others to distribute, and did distribute, at least 100 grams of heroin.
The count of conspiracy to distribute 100 grams or more of heroin carries a minimum sentence of five years in prison, a maximum of 40 years in prison, and a maximum fine of $5 million. The charge of distributing and possessing with intent to distribute at least 100 grams of heroin carries a statutory mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a maximum fine of $5 million.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon E. Wood, Philadelphia Division, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sophie E. Reiter of the U.S. Attorney’s Cybercrime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Brooklyn Company Sentenced for Price Gouging KN95 Masks During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – A New York company was sentenced today to one year of probation and fined $314,165 for its role in price gouging a chain of New Jersey grocery stores in connection with the sale of KN95 masks during the COVID-19 pandemic, U.S. Attorney Philip R. Sellinger announced.
Milk & Honey Ventures LLC (MHV), based in Brooklyn, New York, previously pleaded guilty by videoconference before U.S. Magistrate Judge Jessica S. Allen to an information charging it with price gouging in violation of the Defense Production Act.
According to documents filed in this case and statements made in court:
In March 2020, MHV and two partners purchased 250,000 KN95 filtering facepiece respirators from a foreign manufacturer. MHV and one of those partners then sold 100,000 masks to a chain of New Jersey grocery stores at prices in excess of prevailing market prices. MHV sold the masks at a price of $5.25 per mask, which amounted to a markup of more than 400 percent from its acquisition cost. Prior to the spread of COVID-19, MHV had no history of selling personal protective equipment.
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 Ricky J. Patel in New York, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the Government Fraud Unit in Newark and Nicholas P. Grippo, Chief of the Criminal Division in Newark.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit: https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two Florida Men Charged with Conspiring to Launder Money Obtained from Internet-Enabled ScamsRead the Press Release
NEWARK, N.J. – Two Florida men were charged with conspiring to launder money taken from victims across the United States, many of whom were elderly, as a part of a series of romance scams and other internet fraud, U.S. Attorney Philip R. Sellinger announced today.
Marlin Perra, 63, of Lake Panasoffkee, Florida, and Leslie Lallande, 65, of Pompano Beach, Florida, were both arrested in Florida and are charged by complaint with one count of money laundering conspiracy. Both defendants are expected to have their initial appearances in the District of New Jersey at a date to be determined.
According to documents filed in this case and statements made in court:
Perra and Lallande laundered the proceeds of romance scams and other fraud scams through trade-based money laundering. Perra and Lallande tried to conceal the fraudulent proceeds stolen from romance scam victims by claiming that entities they controlled were in the business of buying and shipping used cars. Lallande and his conspirators prepared and executed fraudulent agreements that purported to be signed by victims agreeing to invest in Lallande’s alleged automobile business. In fact, these agreements were phony cover stories designed to paper over their receipt and movement of the romance scam proceeds.
The money laundering conspiracy charge has a maximum penalty of 20 years in prison and a fine of $500,000, or twice the value of the funds involved in the transfer, whichever is greater.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, Special Agent in Charge Gregory D. Nelsen in Cleveland, Ohio, and Special Agent in Charge Joseph E. Carrico in Knoxville, Tennessee, with the investigation leading to the arrests. He also thanked special agents of the FBI in Miami, Florida, for their assistance.
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 defendants are presumed innocent unless and until proven guilty.
Co-Owner of Multiple Companies Admits Failing to Pay over $1 Million in Payroll TaxesRead the Press Release
NEWARK, N.J. – A co-owner of multiple businesses today admitted to his role failing to pay over $1 million in payroll taxes for his companies, U.S. Attorney Philip R. Sellinger announced.
Omar Mostafa, 57, of New Jersey, pleaded guilty before U.S. District Judge Georgette Castner to an information charging him with willful failure to collect or pay taxes.
According to documents filed in this case and statements made in court:
From 2016 through 2018, Mostafa co-owned three companies that operated in New Jersey and New York and was responsible for signing and causing to be filed the companies’ tax returns with the IRS. During those tax years, Mostafa substantially underreported each company’s payroll, causing a total tax loss to the IRS of approximately $1.4 million.
The count of failing to collect, account for, and pay employment taxes is punishable by a maximum penalty of five years in prison and a maximum $10,000 fine. Sentencing is scheduled for Dec. 12, 2022.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Foreign National Admits to Participating in an International Scheme to Defraud Elderly VictimsRead the Press Release
NEWARK, N.J. – An Indian national today admitted his role in an international conspiracy that preyed on elderly victims in New Jersey and throughout the United States, U.S. Attorney Philip R. Sellinger announced.
Ashish Bajaj, 29, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to commit wire fraud.
According to documents filed in the case and statements made in court:
From April 2020 to August 2021, Bajaj and his conspirators preyed on elderly victims across the United States by impersonating fraud prevention specialists from various banks, online retailers, and online payment companies. They contacted victims and falsely claimed that they were fraud prevention specialists employed by reputable companies and that the victims’ accounts with banks, online retailers, or online payments companies were being targeted for fraud. Bajaj and his conspirators then falsely told the victims that their fraud prevention efforts required the victims’ assistance in a sting operation to catch the perpetrators.
Bajaj and the conspirators asked the elderly victims to send money from their bank accounts to accounts controlled by Bajaj and the conspirators and falsely promised to return their money within a few days of the purported sting operation. The victims were also falsely promised that once they sent the money, the sting operation would result in the arrest of the purported perpetrators. The victims sent international wire transfers to various banks located in India, China, Singapore, and the United Arab Emirates. The victims also sent money through an online application to bank accounts held by Bajaj in the United States. The victims further sent cash and cashier checks to Bajaj at an address in California. The scheme resulted in losses of over $250,000.
The conspiracy to commit wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 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 guilty plea.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.
New Jersey Pharmacy Admits Illegal Distribution of Prescription Opioids and Kickback Scheme and Agrees to Criminal and Civil PenaltiesRead the Press Release
NEWARK, N.J. – A Bergen County pharmacy today admitted its role in a conspiracy to illegally distribute prescription opioids and to give kickbacks to healthcare providers, U.S. Attorney Philip R. Sellinger announced.
Dunn Meadow LLC (doing business as Dunn Meadow Pharmacy) of Fort Lee, New Jersey, pleaded guilty before U.S. District Judge Julien Neals to an information charging it with conspiring to illegally distribute prescription fentanyl and giving kickbacks to healthcare providers. Dunn Meadow also signed a civil settlement with the United States for violations of the False Claims Act and the Controlled Substances Act.
According to documents filed in this case, statements made in court, and the terms of the civil settlement:
Dunn Meadow was a licensed retail pharmacy that sent controlled substances and other prescription medications to patients via mail throughout the United States, including highly addictive and dangerous transmucosal immediate release fentanyl (TIRF) medications. Dunn Meadow had contracts with and received payments from pharmaceutical companies that marketed and sold TIRF medications, including INSYS Pharma Inc.
From 2015 through 2019, Dunn Meadow dispensed prescription TIRF medications and other controlled substances knowing that the prescriptions were not written for a legitimate medical purpose. Dunn Meadow knowingly filled prescriptions for controlled substances, including TIRF medications, for patients exhibiting suspicious and drug-seeking behavior, including patients that repeatedly requested early refills, paid thousands of dollars in cash for their prescriptions, or requested that prescriptions be sent to suspicious or inappropriate locations including hotels, casinos, and elementary schools.
Despite warnings from third parties, including some of its suppliers, Dunn Meadow continued to fill prescriptions for TIRF medications and other opioids written by doctors with suspicious and problematic prescribing habits, sometimes without receiving an original prescription. After two different pharmaceutical suppliers terminated supply agreements with Dunn Meadow, Dunn Meadow submitted applications to other suppliers stating that no supplier had ever suspended, ceased, or restricted controlled substance sales to Dunn Meadow.
Dunn Meadow also admitted that it conspired to offer kickbacks to health care providers and pharmaceutical company sales representatives in violation of the federal Anti-Kickback Statute, in the form of lunches, dinners, and happy hours to induce them to send TIRF prescriptions to Dunn Meadow. Dunn Meadow admitted that its violations of the statute caused a loss to federally funded healthcare programs of over $4.5 million.
In addition, Dunn Meadow and its parent company, Allegheny Pharma LLC entered a civil settlement with the United States to resolve Dunn Meadow’s civil liability for violations of the False Claims Act and the Controlled Substances Act. Dunn Meadow’s criminal restitution payment will be applied to the civil resolution. Dunn Meadow has also agreed to pay up to $50 million dollars over the next five years to resolve its civil liability if it generates future revenue.
U.S. Attorney Sellinger credited diversion investigators of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; special agents of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations-New Jersey Field Office, under the Direction of Special Agent in Charge Scott J. Lampert; special agents the U.S. Department of Defense, Defense Criminal Investigative Service, New Jersey Resident Agency, under the direction of Patrick J. Hegarty; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark.
The government is represented by Assistant U.S. Attorneys Jonathan Peck and Emma Spiro of the Criminal Division, Susan Pappy of the Civil Division, and Trial Attorney Douglas Rosenthal of the Department of Justice’s Civil Division.
Camden Man Sentenced to Three Years in Prison for Trafficking in High-Dose Oxycodone PillsRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 36 months in prison for conspiring to distribute and selling oxycodone pills, including high 60 and 80 mg. dose pills, U.S. Attorney Philip R. Sellinger announced.
Erick Bell, 49, of Camden, previously pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute and possess with intent to distribute oxycodone and distributing and possessing with intent to distribute quantities of oxycodone. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Bell admitted that on multiple occasions from January 2020 to March 2020, he worked as a middleman, connecting sellers who were diverting their own prescriptions and others with pill dealers, including Rocco DePoder of Gloucester City, New Jersey and others, to put oxycodone on the streets in and around Camden and Gloucester City. Bell admitted that on Feb. 3, 2020, he obtained 160 80 mg. oxycodone pills from a conspirator and sold DePoder 60 of the pills for $25 each and 100 of the pills to another conspirator for $24 each. Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
DePoder was sentenced by Judge Bumb on Oct. 8, 2021, to 70 months in prison for his role in the scheme.
In addition to the prison term, Judge Bumb sentenced Bell to three years of supervised release.
U.S. Attorney Sellinger credited special agents of FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; the New Jersey Office of Homeland Security and Preparedness, under the direction of Director Laurie R. Doran; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s sentencing.
He also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration (DEA) for their assistance.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark.
New York Man Sentenced to 47 Months in Prison for Role in Conspiracy to Distribute Heroin and Fentanyl from Drug Mill in the BronxRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced today to 47 months in prison for participating in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, U.S. Attorney Philip R. Sellinger announced.
Reimon Genao Rosario, 25, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Judge Salas imposed the sentence today in Newark federal court.
Dilson Vazquez Genao, 25, Eddie Urena Rodriguez, 37, Francisco Mercedes Gil, 33, Daury Contreras Ulerio, aka “Majimbou,” 37, and Jose Antonio Vazquez Pena, aka “Tono,” 49, all of the Bronx, all have previously pleaded guilty before Judge Salas to the same charges.
One other individual – Jhan Carlos Capellan Maldonado, 33 – was indicted on the same charge as Rosario in August 2019. His case is pending.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned that Maldonado used an apartment in the Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genao came out of the building and met with Maldonado, who got out of his vehicle and gave Genao the plastic shopping bags. Law enforcement officers later learned that the plastic shopping bags contained materials to package heroin and fentanyl.
Genao went back inside the building and was followed by law enforcement officers, who watched as Genao entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement officers searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, and all but one –Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement officers recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
U.S. Attorney Sellinger credited the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason S. Gould, Chief of the Health Care Fraud Unit in Newark.
The charge and allegations against Maldonado are merely accusations, and he is presumed innocent unless and until proven guilty.
Monmouth County Company Agrees to $7.6 Million Judgment for Violating False Claims Act; Owners and Related Company to Pay $375,000Read the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, company will pay $7.6 million under a consent judgement for its role in making false statements to obtain government contracts that were set aside for businesses owned and controlled by service-disabled veterans, U.S. Attorney Philip R. Sellinger announced today.
As alleged in the government’s complaint:
VE Source LLC, based in Shrewsbury, New Jersey; the company’s owners, Sherman Barton and Christopher Neary; and a related entity, Vertical Source LLC, defrauded the federal government by falsely claiming that VE Source was eligible for government contracts that were set aside for companies owned and controlled by service-disabled veterans. VE Source obtained contracts from the U.S. Department of Agriculture (USDA) and the Defense Logistics Agency (DLA), a component of the U.S. Department of Defense, totaling more than $16.5 million. By obtaining contracts for which they were ineligible, the government alleged that VE Source, Neary, and Barton undercut the express Congressional purpose in enacting laws intended to encourage the awards of federal contracts to businesses owned and controlled by service-disabled veterans.
In the resolution announced today, VE Source agreed to a consent judgment for $7.6 million in conjunction with its role in the scheme. The United States entered a separate settlement agreement with Neary, Barton, and Vertical Source, under which Neary will pay $120,000, Barton will pay $75,000, and Vertical Source will pay $180,000 to resolve claims made in a civil lawsuit filed by the United States under the False Claims Act.
U.S. Attorney Sellinger credited special agents of the General Services Administration, Office of Inspector General, New York Field Investigations Office, under the direction of Special Agent in Charge Joseph Dattoria; the U.S. Department of Agriculture, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Bethanne M. Dinkins; and the Defense Criminal Investigative Service, Northeast Field Office, under the direction Special Agent in Charge Patrick J. Hegarty, with the investigation leading to this resolution.
The government is represented by Assistant U.S. Attorneys David V. Simunovich and Mark C. Orlowski of the Health Care Fraud Unit in Newark.
The lawsuit resolved through this agreement is captioned United States v. Neary et al., Civil Action No. 20-14167 (D.N.J.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Two New Jersey Men Admit Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – Two New Jersey men pleaded guilty today to defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
John Sher, 40, of Margate, New Jersey, and Christopher Broccoli, 50, of West Deptford, New Jersey, both pleaded guilty before U.S. District Judge Robert B. Kugler to superseding informations charging them each with one count each of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Sher and Broccoli were part of a criminal conspiracy in which state and local government employees were recruited and compensated to receive medically unnecessary compound prescription medications. Sher and Broccoli caused the pharmacy benefits administrator to pay out millions of dollars for medically unnecessary compound prescription medications for individuals they recruited into the scheme. Sher directly received $327,897 and Broccoli directly received $150,315 from the scheme.
Sher and Broccoli were previously charged in March of 2019 alongside others in an indictment with conspiracy to commit health care fraud and wire fraud and other offenses. Conspiracy leader William Hickman pleaded guilty in June of 2020 to defrauding New Jersey health benefits programs and other insurers out of more than $50 million. Conspirator Michael Sher pled guilty in March of 2018 to defrauding New Jersey health benefits programs and other insurers out of more than $7 million. Conspirators Brian Pugh and Thomas Schallus both pleaded guilty on July 14, 2022, to conspiring to commit health care fraud as part of the same scheme. Charges remain pending against co-defendant Thomas Sher, who is set to proceed to trial before Judge Kugler in Camden federal court on August 15, 2022. The charges and allegations against him are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
John Sher and Broccoli each face a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for Sher is scheduled for Dec. 5, 2022, and for Broccoli, Dec. 6, 2022.
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 in 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 guilty pleas.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the Criminal Division, Deputy Chief of the Criminal Division Desiree L. Grace, and Chief of the Opioid Abuse Prevention & Enforcement Unit R. David Walk Jr.
Pennsylvania Man Admits Traveling to New Jersey to Engage in Sexual Activity with MinorRead the Press Release
TRENTON, N.J. – A Pennsylvania man today admitted traveling from Pennsylvania to New Jersey in order to engage in illicit sex acts with a minor, U.S. Attorney Philip R. Sellinger announced.
Quentin Anthony Blount, 29, of Easton, Pennsylvania, pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of travel with intent to engage in illicit sexual conduct.
According to documents filed in this case and statements made in court:
In October 2020, Blount began communicating with an undercover officer on an internet-based application. After an extensive conversation with the undercover officer, Blount agreed to pay the undercover officer in order to have sex with the minor, who he believed was 14 years old. Blount then traveled from Easton to Somerset County, New Jersey, in order to meet with the minor. Blount was arrested upon arriving at the predetermined meeting location.
The charge of traveling to engage in illicit sexual activity carries a maximum penalty of 30 years in prison, and a fine of $250,000. Sentencing is scheduled for Dec. 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, and members of the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Annmarie Taggart, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Convicted Felon Admits Drug Offenses, and Possessing Three Firearms with Extended MagazinesRead the Press Release
NEWARK, N.J. –An Essex County, New Jersey, man today admitted possessing quantities of heroin and cocaine he intended to distribute, and possessing several firearms, including an AM-15 rifle, U.S. Attorney Philip R. Sellinger announced.
Cedric Lewis, 31, of Bloomfield, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a superseding information charging him with two counts of possession of a firearm and ammunition by a convicted felon and two counts of possession with intent to distribute controlled substances.
According to documents filed in this case and statements made in court:
On Sept. 20, 2020 investigators learned that Lewis was in a car in the Newark/Elizabeth area while he possessed a quantity of heroin and cocaine he intended to sell, as well as an AM-15 rifle with a high-capacity magazine that contained 30 rounds of .300 caliber ammunition. Law enforcement officers subsequently lawfully searched Lewis’s apartment recovered a 9 millimeter pistol with an extended magazine; a .40 caliber pistol with an extended magazine; drug paraphernalia and a scale; $800 in cash, and heroin and cocaine that Lewis intended to sell.
The narcotics offenses each carry a maximum potential penalty of 20 years in prison, and a fine of $1 million. The counts of being a felon in possession of a firearm and ammunition each carry a maximum potential penalty of 10 years in prison, and a maximum fine of $250,000. Sentencing is scheduled for Dec. 6, 2022.
U.S. Attorney Sellinger credited members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; deputy marshals with the U.S. Marshals Service in the District of New Jersey, under the supervision of U.S. Marshal Juan Mattos Jr.; and deputy marshals with the U.S. Marshals Service in the Northern District of Georgia, under the supervision of U.S. Marshal Michael S. Yeager, with the investigation leading to today’s guilty plea. He also thanked the Bloomfield Police Department for its assistance.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.
Camden County Man Sentenced to Three Years in Prison for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 36 months in prison for his role in a scheme to obtain money through fraudulently obtained refund checks issued by the U.S. Treasury, U.S. Attorney Philip R. Sellinger announced.
Jorge Gutierrez, 43, of Merchantville, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with conspiracy to defraud the United States. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On March 28, 2018, Gutierrez, Alberto Sanchez, Awilda Henriquez and Roque Bisono were indicted by a federal grand jury. According to the indictment, Gutierrez, Henriquez, Bisono, Sanchez, and their conspirators obtained stolen identities of residents of Puerto Rico to file fraudulent income tax returns seeking federal tax refunds to which the conspirators were not entitled. The objective in doing so was to falsely and fraudulently generate income tax refund checks issued by the U.S. Treasury. The conspirators recruited mail carriers from the U.S. Postal Service as part of the scheme to steal the tax refund checks from the mail. The mail carriers were paid for every U.S Treasury check that was stolen. The conspirators paid “check couriers” to cash the tax refund checks in a variety of ways, including at check cashing businesses in and around Camden. The check couriers presented false and fraudulent identifications at the check cashing businesses matching the names on the tax refund checks in order to cash the checks. In total, the scheme caused $565,091 in losses to the U.S. Treasury.
Gutierrez admitted that between April 2014 and August 2014, he was a member of the conspiracy that took 93 U.S. Treasury Refund checks that had been placed in the mail stream to be delivered to addresses on a postal mail route in Pennsauken. He admitted that he helped a man nicknamed “Chepe” steal money from the United States government.
In addition to the prison term, Judge Kugler sentenced Gutierrez to three years of supervised release and ordered restitution of $565,091.
Henriquez was previously convicted at trial and is scheduled to be sentenced on Aug. 29, 2022. Sanchez previously pleaded guilty and was sentenced to 45 months in prison. Bisono previously pleaded guilty and was sentenced to time served.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark and Special Agent in Charge Yury Kruty in Philadelphia; and special agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s sentencing. He also thanked the U.S. Postal Inspection Service for its assistance.
The government is represented by Assistant U.S. Attorney Jason M. Richardson and Assistant U.S. Attorney Christina O. Hud of the Criminal Division in Camden.