District of New Jersey
Press releases recorded for this federal judicial district.
Bergen County Man Charged with Possession with Intent to Distribute Fentanyl and HeroinRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man made his initial court appearance today on charges of possession of fentanyl and heroin with intent to distribute, U.S. Attorney Philip R. Sellinger announced today.
Dawan A. Brown, aka “DB,” 36, of Cliffside Park, New Jersey, is charged by complaint with one count of possession with intent to distribute one kilogram or more of heroin and at least 400 grams or more of fentanyl. He appeared by videoconference before U.S. Magistrate Judge Edward Kiel and was detained.
According to documents filed in this case and statements made in court:
Law enforcement officers learned that Brown packages and distributes large amounts of heroin from an apartment in a building located in Harrison, New Jersey. On June 14, 2022, law enforcement officers executed search warrants at this apartment and at Brown’s residence. From the apartment in Harrison, officers recovered approximately two kilograms of narcotics, suspected to contain amounts of heroin and fentanyl; drug paraphernalia, including a ledger, a safe, scales, a coffee and spice grinder, ink pads, stamps, Ziplock bags, vacuum bags and a vacuum bag sealer machine, razor blades, glassine envelopes and strainers; and approximately $44,000 that was contained within the safe, along with some of the suspected heroin and fentanyl. From the residence in Cliffside Park, officers recovered approximately $169,000, five cell phones, safety deposit keys, and various jewelry including diamond necklaces, gold watches, and a gold ring.
The narcotics offense carries a minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a fine of $10 million.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jesse Levine in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; Harrison Police Department, under the direction of Chief Ronald Cuney; and Cliffside Park Police Department, under the direction of Chief Marc Marano, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit and Assistant U.S. Attorney Robert L. Frazer of the Organized Crime/Gangs 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.
Paraguayan National Admits Unlicensed Money Transmitting in Connection with International Money Laundering InvestigationRead the Press Release
TRENTON, N.J. – A Paraguayan man today admitted his role in facilitating an international money laundering conspiracy, U.S. Attorney Philip R. Sellinger announced.
Rodrigo Alvarenga Paredes, 35, pleaded guilty before Chief U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of operating an unlicensed money transmitting business. Paredes previously was charged by complaint with co-defendants Cynthia Tarrago-Diaz and Raimundo Va with conspiracy to commit money laundering. Alvarenga made his initial appearance before Chief Judge Wolfson today and pleaded guilty to the information. He was released pending sentencing.
According to documents filed in this and other cases and statements made in court:
From March 2018 to November 2019, Alvarenga was the owner and operator of a money exchange business in the Republic of Paraguay, which was not licensed or registered to operate as a money transmitting business under the laws of the United States or the state of New Jersey. Until January 2019, Tarrago was a member of Paraguay’s Congress, and in late 2019 had publicly announced her intention to run for mayor of the capital district of Asunción. The investigation revealed that Tarrago and her husband, Va, agreed to accept at least $2 million in United States currency from two individuals who represented themselves to be narcotics traffickers, believing the money to be proceeds of unlawful narcotics trafficking. Tarrago and Va agreed to launder the funds through an international network of accounts in order to disguise the unlawful source of the proceeds.
Tarrago and Va traveled to New Jersey and Florida on multiple occasions and accepted approximately $800,000 in United States currency from the purported drug traffickers, and caused those funds to be transmitted through Alvarenga’s money exchange business; using his unlicensed business, Alvarenga then caused those funds to be transmitted through accounts located in multiple countries and ultimately caused the funds to be transferred back to an account maintained by the purported drug traffickers. To disguise the illicit source of the funds, Tarrago, Va, and Alvarenga coordinated to generate fraudulent invoices that stated legitimate business reasons for the transfers of the laundered funds.
Unbeknownst to Tarrago and Va, the currency that they accepted from the purported drug traffickers was not actually illicit drug proceeds, but was provided by two undercover FBI agents as part of an undercover investigation of the money laundering network. Alvarenga, operating through the auspices of his money-exchange company in Paraguay, facilitated Tarrago’s and Va’s money laundering by causing the undercover funds to be transmitted through his money exchange business and back to the FBI undercover account, knowing that the transactions violated United States laws and regulations.
The unlicensed money transmitting count to which Alvarenga pleaded guilty carries a statutory maximum potential penalty of five years in prison, and a maximum fine of the greater of $250,000 or twice the gross amount of any pecuniary gain that any persons derived from the offense; or twice the gross amount of any pecuniary loss sustained by any victims of the offense whichever is greatest. Tarrago and Va each were sentenced to terms of imprisonment of 33 months. Alvarenga’s sentencing is scheduled for Nov. 9, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Jesse Levine, with the investigation leading to today’s guilty plea. He also thanked the Department of Justice’s Office of International Affairs for its assistance in the case.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko of the Criminal Division in Trenton and J. Brendan Day, Attorney in Charge of the Trenton Branch Office of the U.S. Attorney’s Office.
Four People Charged in Multimillion-Dollar Health Care Fraud Scheme to Defraud AmtrakRead the Press Release
NEWARK, N.J. – Three men and one woman were arrested today for participating in a health care fraud scheme to defraud Amtrak by bribing Amtrak employees to allow people to submit fraudulent claims to the Amtrak health insurance plan, U.S. Attorney Philip R. Sellinger announced.
Muhammad Mirza, 50, of Cedar Grove, New Jersey; Devon Burt, 49, of Blue Bell, Pennsylvania; and Hallum Gelzer, 43, of East Orange, New Jersey, were charged by complaint with conspiracy to commit health care fraud in Newark federal court. Punson Figueroa, aka “Susie Figueroa,” 55, of Long Island City, New York, was charged in the same complaint with 15 counts of health care fraud. The defendants appeared by videoconference today before U.S. Magistrate Judge James B. Clark III and were released on $200,000 unsecured bond.
According to documents filed in this case and statements made in court:
From 2019 to the present, Mirza, Figueroa, Gelzer, Burt, and others recruited Amtrak employees – primarily from New Jersey and New York – to participate in the scheme through the offer of cash payments, in exchange for the employees agreeing to allow Mirza, Figueroa, and others to use their patient and insurance information to submit fraudulent claims. Mirza, Figueroa, and others benefitted from this scheme by receiving payments from the Amtrak health care plan for services that were never provided or that were medically unnecessary. Gelzer, Burt, and others benefitted from this scheme by receiving cash payments from providers in return for allowing those providers to use their personal and insurance information to submit fraudulent claims and in return for recruiting others to participate in the scheme.
On June 17, 2021, an undercover law enforcement agent posing as an Amtrak employee met with Figueroa at Figueroa’s office in New York. Figueroa instructed the undercover agent to sign his name about 30 times for services received and instructed the undercover agent not to date the signatures. Figueroa stated to the undercover agent that the undercover agent had good insurance, and that Amtrak has very good benefits. Figueroa submitted or caused to be submitted false claims to Amtrak’s health care plan indicating that the undercover agent had visited providers at least seven times in May 2021, purportedly receiving acupuncture and physical therapy services.
The undercover agent visited Figueroa’s office on only one other occasion, on July 29, 2021. At this meeting, which was recorded on audio and video, Figueroa handed the undercover agent an envelope filled with $1,000. Figueroa continued to use the undercover agent’s personal and insurance information to submit fraudulent claims to the Amtrak health care plan, for a total of 73 claims. As a result of these fraudulent claims, the Amtrak health care plan paid $31,840.
In total, the Amtrak health care plan has paid at least approximately $9 million as a result of claims associated with providers connected to the health care fraud scheme.
The conspiracy and health care fraud charges each carry a maximum potential penalty of 10 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 Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III; special agents of the FBI, under the direction of Assistant Director in Charge Michael J. Driscoll; the U.S. Food and Drug Administration Office of Criminal Investigations, under the direction of Acting Special Agent in Charge Bradley Greenberg; postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division; and the Amtrak Police Department, under the direction of Chief of Police Samuel Dotson, with the investigation, leading to the charges.
The government is represented by Assistant U.S. Attorney Katherine Romano of the Health Care Fraud Unit in Newark and Daniel V. Shapiro, Deputy Chief of the Criminal Division.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Rhode Island Man Convicted of Bank Fraud Conspiracy that Operated in South Jersey, Southeastern Pennsylvania, and Rhode IslandRead the Press Release
CAMDEN, N.J. – A Rhode Island man was convicted for his role in a bank fraud conspiracy that targeted financial institutions in southern New Jersey, southeastern Pennsylvania, and Rhode Island, U.S. Attorney Philip R. Sellinger announced today.
Olayinka Peter Olaseinde, 42, of Providence, Rhode Island, was convicted on June 21, 2022, of one count of bank fraud conspiracy and three counts of bank fraud following a five-day bench trial before U.S. District Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and the evidence at trial:
Olaseinde was part of a Nigerian-based, multi-layered criminal organization that engaged in a bank fraud conspiracy in several states, including New Jersey, Pennsylvania, Maryland, and Rhode Island, from June 2016 to March 2020. Members of the group acquired 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 counterfeit foreign passport documents and counterfeit U.S. visas that matched the names on the altered checks. Members of the group also opened credit card and bank accounts using stolen personal information of real victims, took cash advances on these fraudulent credit card accounts, and deposited fraudulent checks into these identity theft bank accounts. After the banks credited all or a portion of the funds to the accounts, the defendants withdrew the funds from ATMs or purchased money orders, using debit cards associated with the fraudulent accounts.
Olaseinde’s role in the conspiracy included making deposits of stolen and altered, or otherwise fraudulent, checks into several of these accounts and making purchases and withdrawing funds from the accounts.
Each of the four counts on which he was convicted carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for Oct. 27, 2022.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Bellmawr Office, Philadelphia Division Office, and Washington, D.C., Division Office, under the direction of Inspector in Charge Damon E. Wood, Philadelphia Division, and Inspector in Charge Charles B. Wickersham, Washington Division Office; special agents of the Department of Homeland Security – Homeland Security Investigations (HSI), Cherry Hill Office, and Newark Division Office, under the direction of Special Agent in Charge Jason J. Molina; HSI Philadelphia Division Office, under the Direction of Special Agent in Charge William S. Walker; HSI Maryland Division Office, under the direction of Special Agent in Charge James R. Mancuso, Baltimore, Maryland; HSI Rhode Island Office, under the direction of Special Agent in Charge Matthew Millhollin, 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 the conviction.
Five other conspirators have pleaded guilty; one of them has been sentenced by Judge Hillman and the others are awaiting sentencing. Charges against six other defendants remain pending.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Daniel A. Friedman of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the pending complaints and indictments against the conspirators are merely accusations, and the defendants in those cases are presumed innocent unless and until proven guilty.
Former Head of Corporate Communications of $21 Billion Biopharmaceutical Company Admits Insider TradingRead the Press Release
NEWARK, N.J. – The former head of corporate communications for a biopharmaceutical company today admitted her role in an insider trading scheme, U.S. Attorney Philip R. Sellinger announced.
Lauren S. Wood, 33, of Washington, D.C., pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging her with securities fraud. Stemming from the same alleged conduct, Usama Malik, also of Washington, D.C., was previously charged in a three-count indictment with insider trading, securities fraud, and securities fraud conspiracy.
According to documents filed in this case and statements made in court:
From 2018 through October 2020, Malik was the chief financial officer (CFO) of a New Jersey-based biopharmaceutical company listed on the NASDAQ Stock Exchange. On April 6, 2020, the company publicly announced for the first time that its breast cancer drug – an antibody-based drug designed to treat certain breast cancer patients who had very limited treatment options beyond chemotherapy – had proven effective in pre-market clinical trials. In October 2020, another biopharmaceutical company acquired the company for which Malik worked for approximately $21 billion.
Malik was among the first, and one of the few, employees who received the material non-public information about the breast cancer drug before the public announcement. Within minutes of obtaining that information, Malik passed it along to Wood, who lived with Malik at the time and was formerly employed by the same company. Before April 6, 2020, and within hours of receiving the insider information from Malik, Wood placed an order for approximately 7,000 shares of the company’s stock, despite the fact that during the same time period the company’s stock was downgraded by financial experts. After the company announced that its cancer drug had proven effective in pre-market clinical trials, its stock price increased. After selling her shares, Wood more than doubled her investment, realizing gross profits of $213,618.
The securities fraud charge to which Wood pleaded guilty carries a potential penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Nov. 21, 2022.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint on Dec. 1, 2021 based on the same conduct.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jesse Levine in Newark, with the investigation leading to the charges. He also thanked the SEC Enforcement Division, under the leadership of Director Gurbir S. Grewal, and the FBI, in the District of Columbia and the Eastern District of Virginia, for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber, Chief of the Economic Crimes Unit.
The charges and allegations against Malik are merely accusations, and he is presumed innocent unless and until proven guilty.
Essex County Man Sentenced to Five Years in Prison for Role in Fentanyl Conspiracy, and Unlawful Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 60 months in prison for his role in a fentanyl conspiracy, and unlawful possession of a firearm and ammunition, U.S. Attorney Philip R. Sellinger announced.
Jaqua Clayton, aka “Quay,” 23, of Newark, previously pleaded guilty via videoconference before U.S. district Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to distribute fentanyl, one count of possession with intent to distribute fentanyl, and one count of possession of a firearm and ammunition by a convicted felon. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On March 26, 2021, law enforcement executed a search warrant at Clayton’s residence and recovered a loaded .40 caliber Taurus semi-automatic handgun loaded with 10 rounds of .40 caliber ammunition, and approximately $51,000 in cash. Clayton admitted that he had agreed with another individual to keep Clayton’s narcotics supply inside of the other individual’s apartment to avoid detection from law enforcement. Law enforcement officers obtained and executed a search warrant for the individual’s apartment in March 2021. The search revealed 2,116 glassine envelopes of fentanyl, as well as five plastic bags of unpackaged fentanyl, the total aggregate weight of which exceeded 400 grams. During the search, Clayton arrived and approached the entrance of the apartment. When he observed law enforcement, he fled from the area. Clayton has a prior felony conviction.
In addition to the prison term, Judge Arleo sentenced Clayton to three years of supervised release.
U.S. Attorney Sellinger credited special agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, with the investigation leading to today’s sentencing.
This investigation was part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute 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 DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Cassye Cole of the Criminal Division’s Organized Crime and Gangs Unit in Newark.
South Carolina Woman Sentenced to 28 Months in Prison for Stealing over $780,000 in Medicare and Social Security BenefitsRead the Press Release
TRENTON, N.J. – A Hanahan, South Carolina, woman was sentenced to 28 months in prison for defrauding the government of hundreds of thousands of dollars in Social Security and Medicare benefits, U.S. Attorney Philip R. Sellinger announced today.
Martha Aguilar, 60, formerly of Middletown, New Jersey, and Allentown, Pennsylvania, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson in Trenton federal court to Count Three of a superseding indictment charging her with Social Security Fraud. Chief Judge Wolfson imposed the sentence by videoconference on June 15, 2022.
According to documents filed in this case and statements made in court:
From November 2004 to September 2016, Aguilar collected $136,879 in Social Security benefits and $644,605 in Medicare benefits that she was not entitled to receive. Aguilar indicated on forms to the Social Security Administration (SSA) that she was completely disabled and unable to work, but continued working as a paralegal. Aguilar also fraudulently applied for and received temporary disability from the state of New Jersey totaling $13,622, and unemployment benefits from the state of New Jersey totaling $103,738, which she concealed from the SSA. In all, Aguilar fraudulently failed to report to SSA $488,870 in benefits and income.
In addition to the prison term, Judge Wolfson sentenced Aguilar to two years of supervised release and ordered restitution of $781,484.
U.S. Attorney Sellinger credited special agents of the Office of the Inspector General, Social Security Administration, under the direction of Special Agent in Charge Sharon MacDermott; the U.S. Department of Education, Office of Inspector General, Eastern Region, under the direction of Assistant Special Agent in Charge Debbi Mayer; and N.J. Department of Labor & Workforce Development, Division of Fraud Prevention & Risk Management-Special Investigations Unit, with the investigation leading to today’s sentencing.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney’s Office Criminal Division in Camden.
Mercer County Man Admits Role in Drug Trafficking OrganizationRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man today admitted his role as the leader of a Trenton drug-trafficking organization responsible for the distribution of heroin in the Trenton area, U.S. Attorney Philip R. Sellinger announced.
Robert M. Gbanapolor, 35, of Trenton, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to a superseding indictment charging him with one count of conspiracy to distribute 100 grams or more of heroin; one count of possession with intent to distribute 100 grams or more of heroin; and one count of distribution and possession with intent to distribute a detectable amount of heroin.
Ten other members of this drug trafficking conspiracy have previously pleaded guilty in this case.
According to documents filed in the case and statements made in court:
From June 2018 through May 2019, Gbanapolor and others engaged in a heroin trafficking conspiracy in the areas of Stuyvesant, Hoffman, and Highland avenues in Trenton, as well as in the area of Barbary Road in Philadelphia, Pennsylvania. Gbanapolor obtained regular bulk supplies of heroin from Duane Paulino-Escalera, whom Gbanapolor referred to as “Papi.” Gbanapolor, in turn, distributed this heroin for profit to other members of the drug-trafficking organization, who distributed the heroin in and around Trenton. Paulino-Escalera pleaded guilty in January 2020 and was sentenced on May 7, 2021, to five years in prison.
The counts to which Gbanapolor pleaded guilty carry a minimum penalty of five years in prison and a maximum potential penalty of 40 years in prison on each of Counts One and Three, and a maximum potential penalty of 20 years in prison on Count Two. Sentencing is scheduled for Oct. 19, 2022.
U.S. Attorney Sellinger credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, Camden Resident Office, under the direction of Special Agent in Charge Susan A. Gibson; and task force officers of the Trenton Police Department, under the direction of Police Director Steve Wilson, with the investigation leading to today’s guilty plea. He also thanked detectives and officers of the Gloucester County Prosecutor’s Office, under the direction of Acting Prosecutor Christine A. Hoffman; detectives and officers of the Gloucester Township Police Department, under the direction of Chief David Harkins; members of the N.J. State Police, under the direction of Col. Patrick J. Callahan; detectives and officers of the Bordentown Township Police Department, under the direction of Chief Brian Pesce; and special agents of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews.
This case is part of an Organized Crime Drug Enforcement Task Force (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. Attorneys Eric A. Boden and Alexander E. Ramey of the U.S. Attorney’s Office Criminal Division in Trenton.
Justice Department Settles Lawsuit Against Jackson Township for Discriminatory Ordinances Targeting Orthodox Jewish Religious SchoolsRead the Press Release
NEWARK, N.J. – The Justice Department announced an agreement today with Jackson Township, New Jersey, and the Jackson Planning Board to settle allegations that they violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) and the Fair Housing Act (FHA) when they passed and applied a series of discriminatory zoning ordinances that intentionally targeted the Orthodox Jewish community by prohibiting religious schools and associated dormitories.
The proposed consent order, which was filed today in the U.S. District Court for the District of New Jersey and must still be approved by the court, would resolve a lawsuit the United States filed in May 2020 alleging that the Jackson Township and the Jackson Planning Board passed zoning ordinances that broadly prohibited religious schools and banned schools with dormitories, both of which are important to providing religious education within the Orthodox Jewish community. The complaint alleged that the intent of the ordinances was to prevent Orthodox Jewish schools from opening in the township and thereby dissuade members of that community from living in or moving to Jackson.
“RLUIPA and the Fair Housing Act protect the rights of religious communities to worship and obtain housing in communities free from discrimination and unequal treatment,” Philip R. Sellinger, United States Attorney for the District of New Jersey, said. “This office remains steadfast in its commitment to enforce the nation’s civil rights laws, and as the proposed consent order demonstrates, we will continue to take steps to protect the civil rights of the Orthodox Jewish community and all communities throughout this district.”
“Zoning restrictions that intentionally target religious communities have no place in our society,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “Federal civil rights laws provide strong protections to ensure that religious communities are treated equally and not subjected to discrimination because of their beliefs. This resolution reaffirms that members of the Orthodox Jewish community — as with people of all faiths – are welcome in our communities and have the right to practice their religion free of discrimination.”
The complaint alleges that in 2017, Jackson Township enacted two ordinances that banned dormitories and severely restricted where religious schools could locate. These ordinances were enacted in response to the growth of the Orthodox Jewish community in Jackson and surrounding areas and amid public comments arguing that the ordinances should be enacted to prevent the Orthodox Jewish community from living in or moving to Jackson. Township councilmembers voted unanimously to enact the ordinances.
The consent order requires Jackson Township to repeal the remaining active discriminatory ordinance and replace it with an ordinance that will allow religious elementary and secondary schools, religious higher learning institutions, and religious residential schools. The consent order also requires that the new zoning ordinance treat religious schools equally with non-religious institutions that operate in the township. The consent order requires the township to train its officials and employees on the requirements of RLUIPA and the FHA, establish a procedure for receiving and resolving RLUIPA and FHA complaints, pay a civil penalty of $45,000, and pay $150,000 into a settlement fund from which aggrieved persons can seek payment.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions, or discrimination in housing based on disability, race, color, religion, national origin, sex, and familial status, may contact the Civil Rights Division Housing and Civil Enforcement Section at 1-833-591-0291, or the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 Individuals may also submit a complaint through the Civil Rights Division’s complaint portal or through the U.S. Attorney’s Office’s website at https://www.justice.gov/usao-nj/civil-rights-enforcement.
The government is represented by Assistant U.S. Attorney Kelly Horan Florio, Senior Civil Rights Counsel in the U.S. Attorney’s Office’s Civil Rights Division, and Trial Attorneys Ryan G. Lee and David K. Gardner, U.S. Department of Justice, Civil Rights Division.
Essex County Felon Convicted of Possessing Two Firearms, Drug Trafficking, and Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was convicted today on weapons and drug charges, U.S. Attorney Philip R. Sellinger announced.
Teriek Edwards, 44, of Newark, was convicted on two counts of possession of firearms and ammunition by a convicted felon; one count of possession with intent to distribute heroin, cocaine, and oxycodone; and one count of possession of a firearm in furtherance of his possession with intent to distribute heroin, cocaine, and oxycodone, following a six-day trial before U.S. District Judge John Michael Vazquez in Newark federal court.
According to documents filed in this case and the evidence at trial:
On May 25, 2018, members of the East Orange Police Department attempted to stop Edwards as part of an ongoing investigation. Upon being approached by law enforcement officers, Edwards fled, and a struggle ensued. Edwards was arrested and law enforcement officers recovered heroin, cocaine, oxycodone, and other illegal narcotics from his pants pockets, as well as a 9mm firearm loaded with 12 rounds of ammunition. A federal complaint was filed against Edwards and a federal arrest warrant was issued.
On Aug. 22, 2018, the U.S. Marshals Service Fugitive Task Force arrested Edwards on that federal arrest warrant, at which time they recovered a second handgun – a 9mm firearm loaded with eight rounds of ammunition.
The possession of a firearm charges each carry a maximum potential penalty of 10 years in prison and a maximum fine of $250,000. The drug trafficking charge carries a maximum potential penalty of 20 years in prison and a maximum fine of $1 million. The possession of a firearm in furtherance of a drug trafficking crime carries a minimum sentence of five years in prison, a maximum potential penalty of life in prison, and a maximum fine of $250,000. Sentencing is scheduled for Nov. 3, 2022.
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; members of East Orange Police Department, under the direction of Chief Phyllis Bindi; members of the Newark Police Department, under the direction of Director Brian O’Hara; deputy marshals and task force officers with the U.S. Marshals Service in the District of New Jersey, under the direction of U.S. Marshal Juan Mattos Jr.; and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Tracey Agnew and Samantha C. Fasanello of the U.S. Attorney’s Office Criminal Division.
Camden County Woman Admits Stealing $2.67 Million in Rent Checks from Work, Failing to Pay TaxesRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, woman today admitted stealing approximately 700 checks and money orders from her employer and failing to pay taxes on the income, U.S. Attorney Philip R. Sellinger announced.
Lori Andrews, 61, Voorhees, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging her with one count of interstate transportation of stolen property and one count of income tax evasion.
According to documents filed in this case and statements made in court:
Andrews worked in the property management office of an apartment building in Philadelphia, Pennsylvania. Tenants paid their rent and other expenses to the property management office. From January 2011 to October 2018, Andrews stole 697 checks and money orders totaling $2.67 million her employer, drove them from Philadelphia to New Jersey, and deposited those checks and money orders into a nominee bank account that she opened using a fake Social Security number. Andrews admitted that she used the money to pay personal expenses.
Andrews also admitted that for tax years 2011 through 2015, she did not report the stolen income on her income tax returns or pay income taxes on that income. Andrews admitted that she did not file income tax returns for years 2016 through 2018 and failed to pay income taxes on her income and stolen funds.
The interstate transportation of stolen property charge to which Andrews pleaded guilty carries a maximum potential penalty of 10 years in prison; the income tax evasion charge carries a maximum potential penalty of five years. Both counts carry a potential fine of $250,000. Sentencing is scheduled for Oct. 27, 2022.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins and Postal Inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector Damon E. Wood of the Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney's Office Civil Rights Division in Camden.
Atlantic County Tax Preparer Sentenced to One Year and One Day in Prison for Tax FraudRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, tax preparer was sentenced today to one year and one day in prison for using false information to increase her clients’ tax refunds and filing her own false tax returns, U.S. Attorney Philip R. Sellinger announced.
Michele Griffin, 42, of Galloway, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Joseph R. Rodriguez to Count 11 of an indictment charging her with aiding and assisting in the preparation of a false income tax return. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Griffin prepared multiple fraudulent tax returns on behalf of her clients by falsifying their education expenses, dependent care expenses, business income, dependent information, and unemployment income. As a result, her clients’ returns requested higher tax credits and higher refunds than the clients were entitled to receive. Griffin prepared 19 false tax returns on behalf of six clients for tax years 2013 through 2016 and filed three false tax returns for herself for tax years 2013 through 2015. She admitting causing a tax loss of approximately $135,000.
In addition to the prison term, Judge Rodriguez sentenced Griffin to one year of supervised release and ordered to pay restitution of 135,063.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
Morris County Man Sentenced to 78 Months in Prison for Role in Passaic County Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was sentenced today to 78 months in prison for his role in a Passaic County cocaine distribution conspiracy, U.S. Attorney Philip R. Sellinger announced.
Victor Pimentel, 46, of Parsippany, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with conspiracy to distribute cocaine. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Pimentel was part of a conspiracy to distribute cocaine in and around Passaic County. A search of Pimentel’s residence revealed over 20 kilograms of cocaine, drug paraphernalia, and $322,000 in cash.
In addition to the prison term, Judge Cecchi sentenced Pimentel to three years of supervised release.
U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson, and the Passaic County Prosecutor’s Office under the direction of Passaic County Prosecutor Camelia M. Valdes, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Criminal Division in Newark.
Union County Man Sentenced to 12 Years in Prison for Firearm and Drug ChargesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man who was previously convicted of several felonies was sentenced to 144 months in prison for possessing and intending to distribute cocaine and oxycodone and for illegally possessing a handgun in furtherance of his drug distribution, U.S. Attorney Philip R. Sellinger announced today.
Arthur Forman, 39, of Plainfield, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to a superseding information charging him with possession with the intent to distribute cocaine and oxycodone, possession of a firearm in the course of committing that narcotics offense, and being a previously convicted felon in possession of a handgun. Judge Hayden imposed the sentence on June 9, 2022, in Newark federal court.
According to documents filed in this case and statements made in court:
During an encounter with the Plainfield Police Department on Oct. 13, 2017, Forman resisted arrest by choking a Plainfield detective. While trying to evade capture, Forman transferred a bag containing the cocaine and firearm to a family member, who attempted to dispose of the bag and its contents by throwing it out a window. During a subsequent search of Forman’s bedroom, Plainfield police officers found numerous oxycodone pills and paraphernalia used to grind pills and package drugs for sale. Forman was previously convicted of multiple felonies under New Jersey state law, including a 2016 conviction in Union County, New Jersey for resisting arrest and eluding the police.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the leadership of Special Agent in Charge Jeffrey L. Matthews; the Plainfield Police Department, under the leadership of Police Director Lisa Burgess; and the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Joshua L. Haber and Deputy Chief Desiree Grace of the U.S. Attorney’s Office Criminal Division in Newark.
Camden Man Admits Role as Supervisor in Camden Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A Camden man admitted his role as a shift supervisor of a drug trafficking organization and conspiring to distribute over one kilogram of heroin, over 280 grams of crack, and unspecified amounts of cocaine and fentanyl, U.S. Attorney Philip R. Sellinger announced.
Christopher Vasquez, 31, of Camden, pleaded guilty on June 9, 2022, before U.S. District Judge Renée Marie Bumb in Camden federal court to his role as a shift supervisor and manager in a drug trafficking conspiracy that was based on the 400-500 block of Pine Street in Camden.
According to documents filed in this case and statements made in court
Vazquez admitted that he operated as a “shift manager” in the drug-trafficking organization, supervising and directing the street-level sellers who were involved in distributing controlled substances to customers. From January 2018 to Nov. 28, 2018, he met with conspirators who were involved in the scheme and discussed the operations and management of the drug trafficking organization. He also provided drugs to street-level sellers.
Eighteen other members of the drug-trafficking conspiracy previously have pleaded guilty in this case.
The count to which Vasquez pleaded guilty carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing is scheduled for scheduled for Oct. 13, 2022.
U.S. Attorney Sellinger credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabe Rodriguez; the Camden County Prosecutor’s Office, under the direction of Prosecutor Acting Camden County Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Acting Chief Larry Robb; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Forces (OCDETF), which 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. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Burlington County Man under Felony Indictment Charged with Firearms Trafficking and Illegally Transporting FirearmsRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man already under felony indictment was charged with conspiracy to engage in firearms trafficking and unlawful transportation of firearms in interstate commerce following law enforcement’s seizure of 11 firearms, U.S. Attorney Philip R. Sellinger announced today.
Dominic Maloney, 19, of Bordentown, New Jersey, was arrested on June 8, 2022, in Salem County, New Jersey, and charged in a three-count criminal complaint with conspiracy to engage in firearms trafficking; unlawful transportation of firearms in interstate commerce while under felony indictment; and unlawful transportation of firearms obtained in another state into Maloney’s state of residence. Maloney made his initial appearance today by videoconference before U.S. Magistrate Judge Lois H. Goodman and was detained.
According to the criminal complaint and statements made in court:
On Feb. 22, 2022, Maloney was indicted in Mercer County, New Jersey, Superior Court on felony charges of unlawful possession of a handgun; possession of a firearm for an unlawful purpose; aggravated assault; and making terroristic threats. As a result of the pending felony indictment, federal law prohibits Maloney from transporting firearms in interstate commerce. Maloney maintained and used an identified Instagram account. Law enforcement review of that account and an associate’s Instagram account indicated that, as of June 1, 2022, Maloney was in the state of Georgia to obtain firearms and intended to transport those firearms to New Jersey to distribute them to others for profit. On June 8, 2022, law enforcement officers identified a silver 2007 Nissan Armada driving northbound on Interstate 95 in Maryland. Maloney was a passenger, along with three other occupants. Officers stopped the vehicle on Interstate 295 in New Jersey. A search of the vehicle recovered 11 firearms from the trunk, including eight semiautomatic pistols, one semiautomatic rifle, and two shotguns.
The conspiracy count and the two unlawful transportation counts each carry a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, with the investigation leading to today’s charges. He also thanked special agents of ATF, Philadelphia Field Division, under the direction of Special Agent in Charge Matthew P. Varisco; special agents of ATF, Wilmington Field Office, Baltimore Field Division, under the direction of Special Agent in Charge Toni M. Crosby; special agents of the ATF, Washington Field Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the ATF, Savannah Field Office, Atlanta Field Division, under the direction of Special Agent in Charge Ben Gibbons; troopers of the New Jersey State Police Trafficking Central, under the direction of Col. Patrick J. Callahan, and troopers of the Pennsylvania State Police, under the direction of Col. Robert Evanchick, for their assistance with the investigation.
In July 2021, the U.S. Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C. According to gun trace data, a significant number of firearms recovered in the New York/northern New Jersey area originate from outside the area. The strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in the New York/ New Jersey area with their counterparts in those other locations.
The government is represented by J. Brendan Day, Attorney-in-Charge of the Trenton Office.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Two Burlington County Women Charged in $175 Million Check-Cashing SchemeRead the Press Release
CAMDEN, N.J. – Two Burlington County women with businesses in Riverside, New Jersey and Philadelphia, Pennsylvania, were arrested today and charged with operating an illegal unlicensed check cashing operation that cashed over $175 million in checks and failed to file Currency Transaction Reports (CTRs) on their customers, U.S. Attorney Philip R. Sellinger announced.
Luciana Machado, 42, of Riverside, and Juliana Gomes-Souza, 45, of Cinnaminson, Jersey, are charged by complaint with one count of conspiracy to fail to file CTRs and operate an unlicensed money transmitting business. Machado and Gomes-Souza are expected to make their initial appearances before U.S. Magistrate Judge Ann Marie Donio later today.
According to documents filed in this case and statements made in Court:
Since at least 2018, Machado and Gomes-Souza have operated two businesses – Via Brazil I in Riverside and Via Brazil II in Philadelphia – as a criminal enterprise that has allowed their customers to cash over $175 million in checks without generating CTRs or financial records identifying their customers. This facilitates the customers’ ability to pay off-the-books employees and laborers in cash and avoid payroll and income taxes.
The charge carries a maximum potential penalty of five years in prison and a fine $250,000, or twice the gross financial gain derived or twice the loss caused by the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; postal inspectors of the U.S. States Postal Inspection Service, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge William Walker; special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone; agents of the Federal Deposit Insurance Corporation, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Patricia Tarasca; agents of the New Jersey State Commission of Investigation, under the direction of Executive Director Chadd W. Lackey; officers with the Cinnaminson Police Department, under the direction of Chief Richard Calabrese; and officers with the Riverside Police Department under the direction of Chief H. David Jaensch. He also thanked the Burlington County Prosecutor’s Office, under the direction of Acting Prosecutor LaChia L. Bradshaw, for its assistance in the case.
The government is represented by Assistant U.S. Attorney David E. Malagold of the U.S. Attorney’s Office Criminal Division.
The charge and allegations contained in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Essex County Man Convicted of Knifepoint RobberyRead the Press Release
NEWARK, N.J. – A federal jury convicted an Essex County, New Jersey, man for his role in the knifepoint robbery of a Harrison, New Jersey, taxi company, U.S. Attorney Philip R. Sellinger announced today.
Alfuquan Turner, 46, of Newark was convicted on June 7, 2022, of Hobbs Act robbery following a four-day trial before U.S. District Judge William J. Martini in Newark federal court.
According to documents filed in this case and the evidence at trial:
On Sept. 23, 2019, Turner walked into the Harrison Cab Company armed with a knife and covering his face with a plastic bag. He demanded money from the cab company’s dispatcher. After the victim informed Turner that there was no money in her office, Turner continued his threats and demands. Ultimately, after Turner attempted to stab the victim and the victim fought back, Turner took the victim’s cell phone and attempted to leave. When the victim tried to get her phone back, Turner hit her in the face, pushed her to the ground, and asked her if she wanted to die. Turner then choked the victim until she lost consciousness, after which he stole her jewelry, cell phone, and other items.
The count of Hobbs Act robbery is punishable by a maximum of 20 years in prison. Sentencing is scheduled for Oct. 25, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Jesse Levine in Newark; investigators of the Port Authority of New York and New Jersey under the direction of Superintendent Edward Cetnar; officers of the Harrison Police Department, under the direction of Chief David Strumolo; and investigators of the N.J. Transit Police Department, under the direction of Chief Christopher Trucillo, with the investigation leading to the guilty verdict.
The government is represented by Assistant U.S. Attorney Shontae D. Gray and Assistant U.S. Attorney Sophie E. Reiter.
Burlington County Businessman Admits Defrauding over 75 Victims of More Than $2.7 Million in Scheme to Sell Pesticides He Claimed Would Kill CoronavirusRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted selling $2.7 million worth of pesticides he claimed were registered with the Environmental Protection Agency as being effective against coronavirus, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Todd Kim of the Environment and Natural Resources Division of the U.S. Department of Justice, announced.
Paul Andrecola, 63, of Maple Shade, New Jersey, pleaded guilty before U.S. District Court Judge Robert B. Kugler in Camden federal court to an information charging him with one count of knowingly distributing or selling an unregistered pesticide in violation of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), one count of wire fraud, and one count of presenting false claims to the United States.
“Paul Andrecola’s scheme profited on the fears of the American people during the height of concerns about transmission of COVID-19,” U.S. Attorney Sellinger said. “Our office is dedicated to protecting public health and prosecuting to the full extent of the law those who commit such egregious criminal acts.”
“Andrecola not only cheated dozens of people out of millions of dollars, but also endangered the health of those who relied on his fraudulent virucidal products,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice is committed to prosecuting such crimes to the fullest extent possible.”
“This announcement represents the largest pandemic fraud case related to the sale of unregistered pesticides charged nationwide,” Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division in New Jersey said. “This case underscores EPA’s commitment with our law enforcement partners to hold violators accountable when they undercut the level playing field used by law abiding companies to ensure the integrity and safety of their products.”
"The EPA Office of Inspector General is pleased to have contributed to this investigation by focusing on falsified records purporting to have been produced by the EPA," Special Agent in Charge Nic Evans of EPA's Office of Inspector General said.
According to documents filed in this case, and statements made in court:
FIFRA regulates the distribution, sale, and use of pesticides to ensure that pesticides sold in the United States are safe, effective, and bear labeling containing true and accurate information. The EPA is responsible for regulating the manufacture, labeling, and distribution of all pesticides shipped or received in interstate commerce.
Under FIFRA, all pesticides must be registered with the EPA before the pesticide can be sold or distributed, and no person may distribute or sell a pesticide that has not been registered with the EPA. Before pesticide products can legally make claims that they can kill a particular pathogen, such as SARS-CoV-2 (coronavirus), the claim must be authorized by EPA based on a review of data. In March 2020, at the beginning of the global pandemic, the EPA created a list of EPA-registered products that it deemed to be effective against coronavirus, titled “List N: Disinfectants for Use Against SARS-CoV-2.” The EPA has continued to update this list since its creation.
Andrecola, who controls two companies and is employed by a third company, all based in in Mount Laurel, manufactured various disinfectant products, including liquids and wipes, under the brand name “GCLEAN.” GCLEAN products were unregistered pesticides under FIFRA and none of the products were on EPA’s List N. Andrecola placed another company’s EPA registration numbers on his company’s products and falsely marketed that his products were EPA-approved to kill coronavirus by creating numerous false documents to support his claims. Andrecola, or others at his behest, would provide this falsified documentation to potential customers representing that various sanitizer and wipe products in the names GCLEAN or GC200 were EPA-registered products List N to persuade them to purchase the unregistered pesticide products.
From March 2020 through May 2021, Andrecola used these fraudulent representations to make more than 150 sales of unregistered pesticides for a profit of more than $2.7 million. The purchasers of these unregistered pesticides included a police department in Delaware, a fire department in Virginia, a medical clinic in Georgia, a janitorial supply company in New York, a school district in Wisconsin, and numerous U.S. Government agencies, including the U.S. Marshal’s Service, Moody Air Force Base, the U.S. Department of Veterans Affairs, and the National Forest Service.
The count of illegal sale of an unregistered pesticide carries a statutory maximum prison sentence of one year, and a fine of up to $25,000. The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and the count of false claims against the United States is punishable by a maximum potential penalty of five years in prison. Both the charges of wire fraud and false claims against the United States are each also subject to fines of $250,000, twice the gross profits to Andrecola, or twice the gross loss suffered by the victims, whichever is greatest. Sentencing is scheduled for Oct. 11, 2022.
As part of the plea agreement, Andrecola agreed to forfeit $2.74 million – the proceeds from the sale of the illegal product, and to make full restitution for all losses resulting from his commission of the charged crimes.
U.S. Attorney Sellinger credited special agents of the U.S. EPA Criminal Investigation Division, under the direction of Special Agent in Charge Amon with the investigation leading to today’s plea. He also thanks the U.S. EPA Office of the Inspector General Eastern Region under the direction of Special Agent in Charge Nicolas Evans; Homeland Security Investigations Newark Field Office under the direction of Special Agent in Charge Jason J. Molina; Defense Criminal Investigative Service Northeast Field Office under the direction of Special Agent in Charge Patrick Hegarty; Naval Criminal Investigative Service Northeast Field Office under the direction of Special Agent in Charge Michael Wiest; and the Mount Laurel Police Department under the direction of Chief Stephen Riedener, for their assistance in this investigation.
The government is represented by Special Assistant U.S. Attorney Jason P. Garelick of the U.S. Attorney’s Economic Crimes Unit in Newark and Trial Attorneys Adam C. Cullman and Matthew D. Evans of the Environmental Crimes Section of the U.S. Department of Justice.
Manager in Camden Drug-Trafficking Organization Pleads GuiltyRead the Press Release
CAMDEN, N.J. – A manager of a Camden drug-trafficking organization today admitted conspiring to distribute more than one kilogram of heroin, more than 280 grams of crack cocaine, and unspecified quantities of cocaine and fentanyl, U.S. Attorney Philip R. Sellinger announced.
Juan Figueroa, 24, of Camden, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an indictment charging him with conspiring to distribute and to possess with intent to distribute: one kilogram or more of heroin, 280 grams or more of crack cocaine, fentanyl and cocaine.
Seventeen other members of the drug-trafficking conspiracy previously have pleaded guilty in this case. The charges against one other defendant, Christopher Vasquez, remain pending, and he is scheduled to go on trial beginning July 18, 2022.
Figueroa admitted that he acted as a manager of the drug trafficking organization based in the area of the 400-500 block of Pine Street in Camden. He also acted as a “runner,” supervising and directing others involved in distributing controlled substances. He provided drugs to his conspirators and collected drug proceeds from them.
The count to which Figueroa pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of a lifetime in prison, and a $10 million fine. Sentencing is scheduled for Oct. 11, 2022.
U.S. Attorney Philip R. Sellinger credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabe Rodriguez; the Camden County Prosecutor’s Office, under the direction of Prosecutor Acting Camden County Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Acting Chief Larry Robb; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Forces (OCDETF), which 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. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations that remain pending against Vasquez are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel for Juan Figueroa: Michael Riley Esq., Mount Holly, New Jersey
Camden Man Sentenced to 100 Months in Prison for Conspiring to Distribute Large Amounts of Heroin, Cocaine and CrackRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 100 months in prison for conspiring to distribute large amounts of heroin, cocaine, and crack in the city of Camden, U.S. Attorney Philip R. Sellinger announced.
Paul Salcedo, 31, of Camden, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with conspiracy to distribute one hundred grams or more of heroin as well as quantities of cocaine and crack cocaine.
According to documents filed in this case and statements made in court:
A total of 19 defendants were arrested in late 2018 on drug-trafficking charges based on the FBI’s investigation of a drug-trafficking organization that ran the open-air narcotics trade on the 400-500 block of Pine Street in Camden for several months in 2018. The organization included street-level sellers who worked various shifts selling drugs to customers and collecting drug proceeds. These street-level sellers were supervised by shift managers, who in turn were supervised by higher-level “runners” like Salcedo, who supplied the sellers with pre-packaged heroin, some of which was mixed with fentanyl, as well as cocaine and crack cocaine. The runners also collected drug proceeds from the shift managers and provided those proceeds to higher-level members of the conspiracy.
In addition to the prison term, Judge Bumb sentenced Salcedo to four years of supervised release.
U.S. Attorney credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Camden County Prosecutor Grace C. MacAulay; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Acting Chief of Police Larry Robb; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Forces (OCDETF), which 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. Attorneys Sara Aliabadi and Patrick C. Askin of the U. S. Attorney’s Office Criminal Division in Camden.
22-215
Defense counsel: Troy A. Archie Esq., Cinnaminson, New Jersey
New York and Florida Resident Sentenced to 51 Months in Prison for $6.8 Million Paycheck Protection Program Fraud SchemeRead the Press Release
NEWARK, N.J. – A dual New York and Florida resident was sentenced today to 51 months in prison for his role in a scheme to fraudulently obtain federal Paycheck Protection Program (PPP) loans totaling over $6.8 million, U.S. Attorney Philip R. Sellinger announced.
Gregory J. Blotnick, 35, of Florida, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of wire fraud and one count of money laundering. Judge Martinotti imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
From April 2020 through March 2021, Blotnick submitted 21 fraudulent PPP loan applications to 13 lenders on behalf of nine purported businesses that Blotnick controlled.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
On Blotnick’s fraudulent PPP applications, which sought a total of approximately $6.8 million in total loans, Blotnick falsified various information to the lenders including the number of employees, the federal tax returns for his purported businesses, and payroll documentation. Blotnick obtained approximately $4.6 million in PPP funds and then misused the loan proceeds, including by transferring the funds to brokerage accounts from which he placed more than approximately $3 million in losing stock trades.
In addition to the prison term, Judge Martinotti sentenced Blotnick to two years of supervised release and ordered him to pay restitution of $4,577,631.
U.S. Attorney Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; special agents of the Social Security Administration, Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Donnelly, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office Government Fraud Unit in Newark and Trial Attorney Cory E. Jacobs of the Department of Justice, Criminal Division, Market Integrity and Major Frauds Unit.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Defense counsel: Adam Kaufmann Esq and Jason Berland Esq, New York.
Georgia Man Pleads Guilty to Fraud and Kickback Scheme Involving Covid-19 and Cancer Genetic TestingRead the Press Release
NEWARK, N.J. – A Georgia man pleaded guilty today for his role in a conspiracy to commit health care fraud and receive kickbacks in connection with fraudulent testing claims for COVID-19 and cancer genetic screenings, U.S. Attorney Philip R. Sellinger announced.
Erik Santos, 52, of Braselton, Georgia pleaded guilty to a two-count Information charging him with, in count one, conspiracy to violate the Federal Anti-Kickback statute, and, in count two, conspiracy to commit health care fraud, before U.S. District Judge Kevin McNulty in Newark federal court.
According to documents filed in this case and statements made in court:
Santos owned and operated a company that conducted business with medical testing companies. From September 2019 through March 2020, Santos and others agreed to engage in a scheme to provide medical testing companies with qualified patient leads and tests for medically unnecessary cancer genetic screening tests for Medicare beneficiaries in exchange for kickbacks of approximately $1,000 to $1,500 for each test that resulted in a reimbursement from Medicare. Santos entered into a sham contract and utilized sham invoices to make it appear that he was being paid for legitimate services and to conceal his fraudulent kickback scheme. During the course of the scheme, Santos received kickbacks of approximately $33,250 for cancer genetic screening tests. Santos’s scheme aimed to submit more than $1.1 million in fraudulent claims to Medicare.
In March 2020, at a time when many individuals reported difficulty obtaining Covid-19 tests, Santos and others agreed to extend their scheme to also incorporate those tests, along with significantly more expensive and medically unnecessary respiratory pathogen panel tests. Specifically, Santos and his co-conspirators agreed that Santos would be paid kickbacks for each Covid-19 test submitted to a laboratory, provided that those tests were bundled with significantly more expense respiratory pathogen panel tests, which did not treat or identify Covid-19, and regardless of the medical necessity of either test. Santos agreed to use sham contracts and sham invoices to conceal this portion of the scheme as well.
The count of conspiracy to commit health care fraud carries a maximum potential punishment of 10 years in prison. The count of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years in prison. Both offenses are also punishable by a fine of $250,000 or twice the gross gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jesse Levine 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; 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 ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the Criminal Division in Newark.
Defense counsel: James Smith
Camden County Man Sentenced to 120 Months in Prison for Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man with a prior child exploitation conviction was sentenced today to 120 months in prison for possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
James Tierney, 57, of Cherry Hill, New Jersey, previously pleaded guilty before U.S. Senior District Judge Robert B. Kugler to one count of possession of child pornography. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In August 2020, law enforcement agents executed a search warrant at Tierney’s residence after receiving information from the National Center for Missing and Exploited Children that an online cloud account accessed from Tierney’s residence had uploaded images of child sexual abuse. While executing the search warrant, agents recovered Tierney’s cell phone, which contained multiple videos and images of child sexual abuse. Tierney admitted to agents that he used the cell phone and cloud account for possessing images of child sexual abuse.
In addition to the prison term, Judge Kugler sentenced Tierney to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Cherry Hill Office, under the direction of Special Agent in Charge Jason J. Molina in Newark; the Camden County Prosecutor’s Office High Tech Crimes Unit, under the direction of Acting Prosecutor Grace C. MacAulay; and the New Jersey State Police, under the direction of Superintendent Patrick J. Callahan, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jeffrey B. Bender of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Maryland Man Charged with Money Laundering Offenses Related to Computer Intrusions that Targeted New Jersey CompanyRead the Press Release
NEWARK, N.J. – A Maryland man was indicted on money laundering charges related to money obtained through unlawful computer intrusions that targeted a New Jersey-based employee benefit and payroll management company, U.S. Attorney Philip R. Sellinger announced today.
Oladapo Sunday Ogunbiyi, 40, of Greenbelt, Maryland, is charged by indictment with one count of conspiracy to commit money laundering, two counts of money laundering, and two counts of engaging in transactions in property derived from criminal activity. Ogunbiyi appeared before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.
According to documents filed in this case and statements made in court:
Ogunbiyi conspired with others to launder funds obtained through an unlawful computer fraud scheme in which they obtained unauthorized access to a 401k account held for the benefit of a person at the New Jersey company. They then added a bank account belonging to another individual to the victim’s 401k account without the victim’s knowledge or authorization. This account was designated as the account to receive withdrawals from the victim’s 401k account. Thereafter, $246,390 was transferred to the bank account belonging to account that had been added without the victim’s knowledge or consent.
Ogunbiyi and others directed that the fraud proceeds be converted into cashier’s checks, which were provided to Ogunbiyi. He then deposited the cashier’s checks into bank accounts under his control and withdrew the funds in a series of ATM and counter withdrawals designed to conceal the source of the money, which he used for personal expenditures.
The counts of money laundering and money laundering conspiracy carry a maximum penalty of 20 years in prison and a fine of $500,000, or twice the value of the property involved in the transaction, whichever is greater. The counts of engaging in transactions in property derived from criminal activity carry a maximum penalty of 10 years in prison and a fine of $250,000, or twice the value of the property involved in the transaction, whichever is greater.
U.S. Attorney Sellinger credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Acting Special Agent in Charge Michael Messenger in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Office’s Cybercrime Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Carpenters’ Benefit Plan Administrator Admits Embezzling $140,000Read the Press Release
NEWARK, N.J. – The former administrative manager of a carpenters’ union pension fund today admitted embezzling approximately $140,000 and making false statements on a required report to the U.S. Department of Labor (DOL), U.S. Attorney Philip R. Sellinger announced today.
George R. Laufenberg, 72, of Wall Township, New Jersey, pleaded guilty before U.S. District Judge Kevin R. McNulty in Newark federal court to two counts of an indictment charging him with embezzling approximately $140,000 in pension benefits (Count One) and making false statements to the DOL (Count Five).
According to documents filed in this case and statements made in court:
Laufenberg was the administrative manager of the Northeast Carpenters Pension Fund, which was subject to the Employee Retirement Income Security Act (ERISA). Laufenberg was a fiduciary and participant in the pension fund. He admitted stealing $140,000 that was paid to him under a deferred compensation agreement to which he was not entitled. Laufenberg also admitted that he made false statements in a form required under ERISA that he filed to the Department of Labor on behalf of the pension fund.
The maximum penalty for each count is five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 6, 2022.
U.S. Attorney Sellinger credited special agents of the DOL Employee Benefit Security Administration, under the supervision of Thomas Licetti, Regional Director; special agents of the DOL Office of the Inspector General, under the supervision of Special Agent in Charge Jonathan Mellone; and agents of the Port Authority of New York/New Jersey, under the supervision of Inspector General John Gay, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the Organized Crime/Gangs Unit, and Assistant U.S. Attorney Kendall R. Randolph of the Organized Crime and Drug Enforcement Task Force Unit.
Morris County Man Sentenced to 78 Months in Prison for Role in Passaic County Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was sentenced today to 78 months in prison for his role in a Passaic County cocaine distribution conspiracy, U.S. Attorney Philip R. Sellinger announced.
Kiuny Perez, 44, of Rockaway Township, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to a criminal information charging him with conspiracy to distribute cocaine. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
The defendant was part of a conspiracy to distribute large quantities of cocaine in and around Passaic County. In November 2017, law enforcement officers observed Perez and a co-defendant meet at a location in Passaic and exchange a package containing cocaine. Law enforcement officers stopped Perez’s vehicle and found cocaine in a hidden compartment underneath the dashboard. Law enforcement officers also discovered $297,350 in cash in Perez’s residence.
In addition to the prison term, Judge Cecchi sentenced Perez to three years of supervised release.
U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson, and the Passaic County Prosecutor’s Office under the direction of Passaic County Prosecutor Camelia M. Valdes, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Criminal Division in Newark.
Indian National Indicted for Immigration Documents Fraud and Aggravated Identity TheftRead the Press Release
CAMDEN, N.J. – An Indian national was indicted for immigration documents fraud and aggravated identity theft, U.S. Attorney Philip R. Sellinger announced today.
Rohit Kumar, 30, of West Bengal, India, is charged with six counts of submitting false and fraudulent immigration documents and six counts of committing aggravated identity theft.
According to documents filed in this case and statements made in court:
Kumar worked for several years in India for one of the largest information technology companies in the world. This IT company contracted with an electric utility company that was based in New Jersey and owned and operated nuclear power facilities at multiple locations, including in southern New Jersey. Under the contract, the IT company supplied services to the New Jersey company, including through the use of foreign national workers from India who worked in specialized occupations.
Kumar helped to arrange for Indian national workers to enter the United States under the H-1B visa program and then work at the New Jersey company. Some of these Indian national workers were stationed at a nuclear power plant in southern New Jersey, while other foreign workers were stationed at the company’s other locations in and around New Jersey.
On several occasions in 2017 and 2018, Kumar created and presented false and fraudulent documents to the United States Citizenship and Immigration Service in support of the H-1B visa applications of the Indian national workers. The documents purported to contain the authorized signature of a contracting manager at the New Jersey electric utility company, but the contracting manager never signed or authorized a signature on these documents.
Each count of immigration documents fraud is punishable by a sentence of up to 10 years in prison, as well as a maximum fine of $250,000. Each count of aggravated identity theft is punishable by sentence of two years in prison, which must be served consecutively to any other term imposed, as well as a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Sara Aliabadi and Jason M. Richardson in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Bank Employee Admits $8 Million Fraud and Bribery SchemeRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man today admitted conspiring to commit bank fraud and accepting bribes, U.S. Attorney Philip R. Sellinger announced.
Kurt Phelps, 53, of Flanders, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with one count of conspiracy to commit bank fraud and one count of bank bribery. Three of Phelps’ conspirators previously pleaded guilty in connection with the fraud scheme.
According to documents filed in this case and statements made in court:
From 2013 through 2019, Phelps and his conspirators carried out a scheme to defraud Phelps’ employer, a bank. They obtained millions of dollars of credit from the bank for Starnet Business Solutions Inc. a now defunct New Jersey-based printing company where Phelps’ conspirators worked. Phelps’ conspirators paid him large cash bribes in connection with the fraud scheme
In 2013, Starnet received a line of credit from the bank after providing materially false financial information. The bank not only allowed Starnet to maintain the line of credit, at various times it increased the line of credit. By 2018, the line of credit was worth approximately $8 million, and Starnet has not repaid it
Phelps was aware that financial information Starnet provided to the bank for the line of credit was materially false, and coached Starnet on how to defraud the bank. Phelps would review draft financial information for Starnet and provide feedback on how his conspirators should falsify the information before submission. Phelps also worked to ensure that the bank did not detect the fraud scheme by helping Starnet avoid audits and other quality control measures employed by the bank.
Phelps solicited large cash bribes – tens of thousands of dollars at a time – from Starnet in connection with the fraud scheme. Phelps’ conspirators pooled cash to pay Phelps bribe payments. Over the course of the conspiracy, Phelps accepted hundreds of thousands of dollars in cash bribes.
The conspiracy to commit bank fraud and bank bribery charges each carry a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Oct. 3, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit.
Bergen County Woman Sentenced to 21 Months in Prison for Embezzling Money from Guided Tour Company and Subscribing to False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman was sentenced today to 21 months in prison for her participation in a multi-year embezzlement scheme and to subscribing to a false personal income tax return, U.S. Attorney Philip R. Sellinger announced.
Ruby Baroni, 55, of Lyndhurst, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Julien Xavier Neals to an information charging her with one count of wire fraud and one count of subscribing to a false tax return. Judge Neals imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between October 2010 and August 2016, Baroni held an accounting position at a New Jersey guided-tour company. In that capacity, Baroni had authority to cut checks against the company’s bank accounts. During that period, Baroni and Estela Laluf, a manager at the company, devised a scheme to embezzle funds from the company. Laluf would direct Baroni to cut company checks to actual company employees and contractors, which did not reflect any actual work or services done by those individuals. Baroni would then cash these checks, and Laluf and Baroni would then convert the resulting funds to their personal use. In this way, Laluf and Baroni embezzled hundreds of thousands of dollars from the company. Baroni then fraudulently omitted the proceeds from the embezzlement scheme from her tax year 2016 tax return. Laluf pleaded guilty before Judge Neals to a separate information related to the scheme on Sept. 20, 2021, and was sentenced on April 25, 2022, to 27 months in prison.
In addition to the prison term, Judge Neals sentenced Baroni to two years of supervised release and ordered her to pay $295,297 in restitution.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division, and special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
Three Charged with Conspiracy to Defraud Five People of $3.25 Million in Investment Fraud SchemeRead the Press Release
CAMDEN, N.J. – Three men were charged by indictment with conspiring to defraud five victims out of approximately $3.25 million through an investment fraud scheme, U.S. Attorney Philip R. Sellinger announced today.
Malcolm Dean Hampton II, 62, formerly of California and now of Quinlan, Texas, William Joseph Kuzma 60, of Billings, Montana, and Michael Russell Davis 56, formerly of New York and now overseas, are each charged by indictment with one count of conspiracy to commit wire fraud. Hampton and Kuzma appeared today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court and were released on $150,000 bond each. Davis remains at large.
According to documents filed in this case and statements made in court:
During 2017, the conspirators advertised an investment opportunity in Standby Letters of Credit (SBLC), which are essentially a guaranty of payment by a bank or financial institution. The investments were offered through Hampton’s company, 5 Star Investments LLC. Kuzma handled inquiries from potential investors, and forwarded investment contracts via email to potential investors. The contracts were deliberately vague and confusing, and contained false and fraudulent statements, including promising “guaranteed” returns which were unrealistic and which no investor had achieved, and promising to return the investor’s monies if the SBLC’s were not created. Davis was identified as the “asset manager,” and investors were instructed to wire their investment monies to a bank account in the name of Davis’ company, Jet Exclusive Aviation LLC.
From from March through May 2017, five investors entered into contracts with Hampton, Kuzma and Davis, and wired approximately $3.25 million to Davis’ account. The defendants did not invest the monies as promised, but rather converted them for their own use. Within days of the first victim’s “investment” money going into Davis’ account, Davis began transferring money to his other bank accounts, and also to an account held in Hampton’s relative’s name. Hampton thereafter transferred some of the proceeds to Kuzma. In response to complaints by the victims, the defendants continued to falsely assure the victims that the investments were moving forward, and later that the victims would get their monies back. That did not happen. Instead, Hampton, Kuzma and Davis spent the victims’ money on personal expenses, cars, and travel, and also transferred money to other bank accounts controlled by themselves or their family members.
The count of conspiracy to commit wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael J. Messenger in Newark, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Diana V. Carrig of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
New York Attorney Charged with Transportation and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – An Eastchester, New York, man has been charged with the transportation and possession of child pornography, U.S. Attorney Philip R. Sellinger announced today.
Androsky Lugo, 52, is charged by criminal complaint with one count of transportation of child pornography and one count of possession of child pornography. He is scheduled to make his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Leda Dunn Wettre.
According to documents filed in this case and statements made in court:
From August 2019 to September 2021, Lugo stored multiple electronic devices with a coworker at the New Jersey office where he worked. One of the devices was subsequently discovered to contain a voluminous collection of images and videos depicting child sexual abuse. The investigation also revealed that Lugo transported child pornography, on a different electronic device, from New York into New Jersey on multiple dates in July 2020.
The charge of possession of child pornography carries a maximum penalty of 10 years in prison and fine of $250,000. The charge of transportation of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and fine of $250,000.
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, with the investigation leading to the charges. He also thanked the Westchester County, New York, District Attorney's Office for its assistance.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former CEO Indicted for Misleading Investors About COVID-19 Rapid Test KitsRead the Press Release
NEWARK, N.J. – The former chief executive officer of a publicly traded health care company was charged in an indictment filed today with two counts of securities fraud in connection with his alleged participation in a scheme to mislead investors about the company’s procurement of COVID-19 rapid test kits in the early days of the pandemic, U.S. Attorney Philip R. Sellinger, District of New Jersey, and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division announced.
Marc Schessel, 62, of Greenwich, Connecticut, is charged by indictment with two counts of securities fraud. He is scheduled to make his initial court appearance June 7, 2022, in Newark federal court.
“As alleged in the indictment, Marc Schessel exploited the scarcity of COVID-19 tests at the outset of the pandemic to defraud investors and artificially increase his company’s stock price,” U.S. Attorney Sellinger said. “His alleged fraud cost investors millions of dollars in losses.”
“Schessel allegedly took advantage of the COVID-19 crisis as an opportunity to scam investors and manipulate the market,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s indictment reinforces our commitment to rooting out schemes that have exploited the pandemic and holding accountable those who have prioritized greed during an unprecedented public health emergency.”
“It is a different type of profiteer who tries to benefit from a national disaster such as a weather event or a pandemic,” FBI Acting Special Agent in Charge Michael Messenger said. “This defendant allegedly took advantage of the public’s angst and panic over a deadly virus and put forward false information to drive up his bottom line. The FBI is committed to fighting fraud and protecting the public at all times, but especially when our country is in the midst of a crisis.”
According to documents filed in this case and statements made in court:
Schessel caused his company to issue multiple public statements claiming that it was buying and reselling at least 48 million COVID-19 test kits, despite knowing that such statements were false and misleading. In early April 2020, Schessel executed a supply agreement with an Australian company to obtain 2 million COVID-19 test kits per week for six months, beginning on April 24, 2020. The agreement was based on the Australian company’s representations that it had the appropriate permissions from the U.S. Food and Drug Administration (FDA) and was already distributing COVID-19 tests. Contemporaneously, Schessel received a purchase order from a U.S.-based company that planned to purchase the weekly shipments of 2 million COVID-19 test kits from Schessel’s health care company.
Despite learning new information on April 11, 2020, that called into question whether the Australian company had COVID-19 tests to sell to Schessel’s company that could be distributed in the United States, Schessel caused his company to issue a press release on April 13, 2020, in which it announced the purchase order for 48 million COVID-19 rapid test kits. Following this press release, Schessel received additional information that further called into question his company’s arrangements for the COVID-19 test kits. Despite learning facts that cast significant doubt on the status of the COVID-19 test kit deals, Schessel repeatedly confirmed the status and terms of those arrangements on numerous occasions between April 13, 2020, and April 17, 2020. In the wake of the April 13 announcement, the health care company’s share price surged, rising by over 400 percent from approximately $2.25 per share to an intraday high of $14.88. per share. As a result of this scheme, investors lost at least $116 million.
The first count of securities fraud is punishable by a maximum of 20 years in prison and the second count of securities fraud is punishable by a maximum of 25 years in prison.
U.S. Attorney Sellinger and Assistant Attorney General Polite credited special agents of the FBI, under the direction of Acting Special Agent in Charge Messenger, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Sean Sherman and Lauren Repole of the District of New Jersey, and Acting Principal Assistant Chief Justin Weitz and Trial Attorneys Lucy Jennings and Spencer Ryan of the Criminal Division’s Fraud Section.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Paterson Police Sergeant Convicted of Conspiracy to Violate Civil Rights and Filing False Police ReportRead the Press Release
NEWARK, N.J. – A federal jury convicted a Paterson Police Department sergeant today of conspiring to violate civil rights and filing a false police report, U.S. Attorney Philip R. Sellinger announced.
Michael Cheff, 51, of Oakland, New Jersey, was convicted following a five-day trial before U.S. District Judge Katharine S. Hayden on one count of conspiracy to deprive persons of civil rights and one count of falsification of a police report.
According to documents filed in this case and evidence at trial:
Eudy Ramos, Daniel Pent, Jonathan Bustios, Matthew Torres, and Frank Toledo were police officers with the Paterson Police Department. Cheff, who was a sergeant, supervised their activities and approved their reports and other paperwork related to arrests and seizures of money, narcotics, and firearms. Ramos, Pent, Bustios, Torres, and Toledo, while on official duty, violated the civil rights of individuals in Paterson. They stopped and searched motor vehicles without any justification and stole cash and other items from the occupants. They also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized cash from them. They concealed their activities by submitting to Cheff false reports that omitted, or falsified, their illegal activities. Cheff signed off on those false police reports and routinely received a portion of these stolen monies from some of these officers.
On Nov. 14, 2017, Cheff joined Bustios, Ramos, and Torres in stealing cash from an apartment in Paterson. Bustios, Ramos, and Torres stopped and arrested an individual in Paterson. The officers went to the individual’s apartment and were joined by Cheff. After the arrested individual was coerced to sign a consent to search form, and while the arrested individual was handcuffed in a police car, Cheff, Bustios, and Ramos went to search the individual’s apartment. After obtaining consent to search the apartment by lying to the individual’s mother, Cheff, Bustios, and Ramos then searched the individual’s room and located a safe inside the room. Cheff took money and narcotics from the safe and put the money in his pocket. Cheff handed a small portion of the money stolen from the safe to Bustios and told Bustios to log it into evidence. Cheff also approved a police report that falsely stated that the officers had recovered $319 from on top of a shelf in the individual’s room.
Later that day, Bustios and Toledo exchanged text messages discussing Cheff’s theft of money. Bustios said, among other things, that Cheff “got us for over a stack today,” that “there was a safe” and that Cheff “grabbed the cash.” According to the individual whose apartment was searched, the safe contained approximately $2,700, and all of it was missing after the search was completed.
The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison. The false records charge carries a maximum penalty of 20 years in prison. The maximum fine for each count is $250,000. Sentencing will be scheduled at a later date. Ramos, Pent, Bustios, Torres, and Toledo previously pleaded guilty and are awaiting sentencing.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark, with the investigation leading to today’s conviction. He also thanked the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, for its 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.
Owner and Employees of Monmouth County Marine Equipment and Servicing Company Charged with Defrauding U.S. Department of DefenseRead the Press Release
TRENTON, N.J. – Three Monmouth County, New Jersey, individuals were indicted today for their role in a years-long scheme to defraud the U.S. Department of Defense (DoD) by providing military equipment parts that were not authorized under the governing contracts, U.S. Attorney Philip R. Sellinger announced.
Linda Mika, 70, and Paul Mika, 74, both of Jackson, New Jersey, and Kenneth Mika, 50, of Ewing, New Jersey, are charged by indictment with one count of conspiracy to commit wire fraud and five counts of wire fraud in connection with the scheme. Kenneth Mika was additionally charged with two counts of making false statements.
According to documents filed in this case:
From at least March 2016 through April 2020, the Mikas conspired with each other and others to defraud the DoD and one of its combat logistic support arms, the Defense Logistics Agency (DLA), by engaging in a pattern of unlawful product substitution. Paul Mika was the founder and owner of Monmouth Marine Engines Inc. (Monmouth Marine), a maritime equipment and servicing facility, which, as an approved federal contractor, also entered into contracts with DLA to supply DoD contracting entities with replacement hardware for DoD’s military branches. Linda Mika, Paul Mika’s wife, and Kenneth Mika, Paul and Linda Mika’s son, were employees of Monmouth Marine.
The Mikas, on behalf of Monmouth Marine, obtained contracts with the DoD by falsely claiming that the military parts they contracted to provide would be exact products furnished by authorized manufacturers or suppliers. Once awarded the contracts, however, the Mikas sourced non-conforming substitute parts at a significantly reduced cost to fill the contracts. They did this to maximize their profit margin while also suppressing fair competition in the bidding of federal contracts. Upon receipt by Monmouth Marine, the non-conforming parts were then shipped to DLA in packaging disguising the parts’ identities in an effort by the Mikas to deceive DLA and its unwitting downstream purchasers.
During an audit of Monmouth Marine conducted in February 2020, Kenneth Mika falsely stated to DLA auditors that Monmouth Marine had been authorized by certain representatives of the Defense Contract Management Agency to substitute parts under DLA contracts. Kenneth Mika repeated these false representations to FBI and Defense Criminal Investigation Service agents in July 2020.
Each count of conspiracy to commit wire fraud and wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine. Each count of making false statements is punishable by a maximum penalty of five years in prison and a maximum $250,00 fine.
U.S. Attorney Sellinger credited special agents of and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Eric A. Boden of the U.S. Attorney's Office Criminal Division in Trenton.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Employee of Veterans Affairs Medical Center Sentenced to 57 Months in Prison for Stealing HIV MedicationRead the Press Release
NEWARK, N.J. – A former pharmacy procurement technician was sentenced today to 57 months in prison for stealing prescription HIV medications from the pharmacy of the Veterans Affairs Medical Center (VAMC) in East Orange, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Lisa M. Hoffman, 50, of Orange, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count 2 of an indictment charging her with theft of government property. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From October 2015 through November 2019, Hoffman was a procurement officer at the VAMC, who used her authority to order medication for the outpatient pharmacy, including ordering large quantities of HIV medication. Hoffman admitted that she stole HIV prescription medications from the VAMC pharmacy and sold it to her conspirator, Wagner Checonolasco, 35, of Lyndhurst, New Jersey, in exchange for cash. Checonolasco previously admitted to conspiring with Hoffman to steal HIV medication belonging to the U.S. Department of Veterans Affairs. The loss amount was more than $8.2 million.
In addition to the prison term, Judge Salas sentenced Hoffman to three years of supervised release, ordered restitution of $8.29 million and forfeiture of $450,000.
Checonolasco previously pleaded guilty to one count of conspiracy to steal government property and was sentenced in February 2022 to 42 months in prison.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; 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; and the VA Police Service of New Jersey, under the direction of Chief Minelli Torres Sukola, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Nicole F. Mastropieri of the Health Care Fraud Unit in Newark.
Atlantic County Man Sentenced to 30 Years in Prison for Heroin Trafficking, Unlawful Possession of Firearm and Witness TamperingRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced today to 360 months in prison for heroin trafficking, firearms and witness tampering charges, U.S. Attorney Philip R. Sellinger announced.
Sean Figaro, aka “Carlito,” aka “Carlito the don,” 35, was convicted in July 2019 of distribution of heroin, possession of a firearm in furtherance of his heroin distribution, witness tampering, conspiracy to commit witness tampering, and unlawful possession of a firearm by a convicted felon. Figaro was convicted following a one-week trial before U.S. District Judge Renée Marie Bumb, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
On Jan. 10, 2017, law enforcement officers from the Atlantic City Child Exploitation Task Force executed a state search warrant on Figaro’s hotel room at the Econo Lodge on Pacific Avenue in Atlantic City, where Figaro had been staying off and on for at least a year. Officers recovered Figaro’s cell phone and a safe, containing a Jennings .22 caliber pistol loaded with five rounds, including one in the chamber, 119 individually packaged bags of heroin and various items used for packaging drugs for distribution, including additional bags, a digital scale, razor blades and a straw.
Officers obtained a separate search warrant for Figaro’s phone, which contained additional evidence of Figaro’s drug trafficking and firearm possession, including text messages offering heroin for sale, and also describing how he earned his living: “my occupation is drug dealership;” and “I’m a dealer, not a pimp, not law, a street hustler.”
In order to dissuade a witness from testifying against him, Figaro sent and caused to be sent messages to a potential witness, including labeling the witness as a “rat” and a “snitch” on Facebook, and later attempting to persuade the witness not to testify against him by feigning affection and promising to love and care for the witness.
In addition to the prison term, Judge Bumb sentenced Figaro to five years of supervised release.
U.S. Attorney Sellinger credited special agents from the FBI, Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Cary Shill; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; and the New Jersey Human Services Police, under the direction of Commissioner Sarah Adelman, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Kristen M. Harberg.
Union County Man Sentenced to Seven Years in Prison for Gun Trafficking OffensesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 84 months in prison for gun trafficking offenses, U.S. Attorney Philip R. Sellinger announced.
Mark Hernandez, aka “Skrap,” 26, of Rahway, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to a three-count information charging him with conspiracy to unlawfully deal in firearms, unlawfully dealing in firearms, and possession of firearms and ammunition by a convicted felon. Judge Cecchi imposed the sentence in Newark federal court.
According to documents filed in this case and statements made in court:
From December 2019 through June 2020, Hernandez and his conspirators, Clifford Behler, 43, and Francis Zyla, 56, unlawfully distributed more than two dozen firearms – including shotguns, rifles, and firearms capable of accepting large-capacity magazines – in and around Elizabeth, New Jersey. Hernandez unlawfully obtained several of those guns and supplied them to his conspirators for redistribution. Hernandez was previously convicted of unlawful possession of a handgun in New Jersey Superior Court and is prohibited from possessing firearms and ammunition under federal law.
In addition to the prison term, Judge Cecchi sentenced Hernandez to three years of supervised release.
Behler previously pleaded guilty to a three-count information charging him with narcotics and firearms offenses, and was sentenced to a 60-month term of imprisonment in December 2021. The case against Zyla is still pending. The charges against him are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; special agents of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; the Union County Prosecutor’s Office, under the direction of William A. Daniel; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.
In July 2021 the U.S. Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C. According to gun trace data, a significant number of firearms recovered in the New York/northern New Jersey area originate from outside the area. The new strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in the New York/northern New Jersey area with their counterparts in those other locations.
The government is represented by Assistant U.S. Attorneys Samantha C. Fasanello and Robert Frazer U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
Former Bookkeeper Charged with Embezzling over $3 Million from Law Firm Former EmployerRead the Press Release
NEWARK, N.J. – A Florida woman was charged with wire fraud after she stole over $3 million from the law firm where she worked as a bookkeeper, U.S. Attorney Philip R. Sellinger announced today.
Janet Lee Blissitt, 66, of Margate, Florida, is charged by complaint with one count of wire fraud. Blissitt was arrested earlier this morning and made her initial appearance before U.S. Magistrate Judge Patrick M. Hunt in Fort Lauderdale, Florida, federal court. She was released on $150,000 bond.
According to documents filed in this case and statements made in court:
Blissitt worked as a bookkeeper and assistant at a law firm in Boca Raton, Florida. She had access to several of the firm’s business bank accounts, including the firm’s client trust accounts. Starting in October 2021 and continuing through March 2022, Blissitt transferred money from several of the law firm’s business accounts to her personal account and other business bank accounts in New Jersey and Ohio. Blissitt would sometimes falsely note that the purpose of the transfers was to pay fees. Blissitt embezzled an estimated $3 million from the law firm.
The wire fraud charge has a maximum term of 20 years, and a maximum fine of $250,000 or twice the pecuniary gain to the defendant or loss to the victim, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark and Special Agent in Charge Eric B. Smith in Cleveland, Ohio, with the investigation leading to the charges. He also thanked the Boca Raton Police Services Department 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 in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Camden County Man Sentenced to 46 Months in Prison for Trafficking in Oxycodone PillsRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 46 months in prison for distributing and conspiring to distribute oxycodone pills, making him the ninth person sentenced for his role in a drug trafficking ring operating in and around Camden and Gloucester City, U.S. Attorney Philip R. Sellinger announced.
Maurice Williams, 41, of Pennsauken, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to two counts of a five-count indictment that charged 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:
Williams previously admitted that on multiple occasions from January 2020 to March 10, 2020, he obtained oxycodone from Erick Bell in and around Camden and resold that oxycodone. Williams was charged along with 17 others in March 2020 in connection with an investigation by the FBI into the illegal distribution of prescription drugs, including high dosage oxycodone pills, to customers in Gloucester City and Camden. Bell pleaded guilty to his role in the scheme and is scheduled to be sentenced by Judge Bumb on June 28, 2022.
In addition to the prison term, Judge Bumb sentenced Williams to three years of supervised release. Williams also agreed to forfeiture of $16,800.
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 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.
California Man Sentenced to 15 Months in Prison for Role in Multi-State Recovery Home Patient Brokering SchemeRead the Press Release
TRENTON, N.J. – A California man was sentenced today to 15 months in prison for his role in a conspiracy to broker patients as part of a multi-state patient scheme in which recruiters were directed to bribe drug-addicted individuals to enroll in drug rehabilitation, U.S. Philip R. Sellinger announced.
Dr. Akikur Mohammad, 58, of West Hills, California, previously pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan, to an information charging him with one count of conspiracy to violate the Eliminating Kickbacks in Recovery Act (EKRA). Judge Sheridan imposed the sentence today by videoconference.
EKRA, enacted by Congress in October 2018 as part of a broader package of legislation aimed at combatting the opioid crisis, bars the payment of kickbacks in exchange for the referral of patients to drug treatment facilities. Mohammad’s EKRA conviction is among the first such convictions in the country using the new charge.
According to documents filed in the case and statements made in court:
A number of conspirators owned and operated a marketing company in California. They used the marketing company to help orchestrate a scheme in New Jersey, Maryland, California, and other states that involved bribing individuals addicted to heroin and other drugs to enter into drug rehabilitation centers, generating fees from those facilities. One facility in California that paid such referral fees was owned and operated by Mohammad. His facility and other facilities typically paid the marketing company a fee of $5,000 to $10,000 per patient referral.
In addition to the prison term, Judge Sheridan sentenced Mohammad to three years of supervised release and ordered him to pay restitution of $493,104.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark, with the investigation leading to today’s sentencing. He also thanked the FBI, under the direction of Assistant Director in Charge Kristi Koons Johnson in Los Angeles, California, and the District Attorney’s Office in Orange County, California, for their assistance.
The government is represented by Assistant U.S. Attorney Jason S. Gould, Chief of the Health Care Fraud Unit in Newark.
Morris County Man Charged with Distributing Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was arrested today for distributing images and videos depicting child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Igor Michael Terrero, 49, of Succasunna, New Jersey, was charged by complaint with one count of distributing child pornography. Terrero made his initial appearance by videoconference today before U.S. Magistrate Judge Jessica S. Allen and was released on $100,000 unsecured bond, with home detention and electronic monitoring.
According to documents filed in this case and statements made in court:
From Aug. 30, 2021, through April 20, 2022, Terrero shared more than 85 media files, including images and videos depicting the sexual abuse of children.
The charge of distribution of child pornography depicting prepubescent children carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Sellinger credited the special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina; postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division; the Morris County Prosecutor’s Office, under the direction of Prosecutor Robert J. Carroll; and the Roxbury Township Police, under the direction of Chief Dean Adone, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Matthew C. DeSaro of the U.S. Attorney’s Office 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.
Dominican Republic Citizen Extradited to United States on Money Laundering ChargesRead the Press Release
NEWARK, N.J. – A citizen of the Dominican Republic who was extradited to the United States on money laundering charges made his initial appearance in New Jersey federal court, U.S. Attorney Philip R. Sellinger announced.
Jonathan Humeau-Hernandez, 41, is charged by indictment with five counts of money laundering and conspiracy to commit money laundering for his role in laundering millions in illegal cash drug proceeds from the United States to the Dominican Republic. Humeau-Hernandez was arrested in the Dominican Republic at the request of the United States on Feb. 20, 2022, and extradited to the United States. He had his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor and was detained.
According to documents filed in this case and statements made in court:
Humeau-Hernandez was part of a criminal conspiracy that arranged to have large sums of cash drug proceeds in the United States laundered through the U.S. banking system and transferred to the Dominican Republic and elsewhere. From November 2018 through February 2020, Humeau-Hernandez coordinated with conspirators in New Jersey to pick up millions of dollars in cash drug proceeds and convert the cash into cashier’s checks or deposit the cash into accounts specified by Humeau-Hernandez so it could be transferred to other accounts. Humeau-Hernandez took these steps in order to conceal the nature, source, ownership, and control of the illegal drug proceeds and to avoid scrutiny by law enforcement and banking institutions.
The money laundering charges against Humeau-Hernandez carry a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater.
U.S. Attorney Sellinger credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; the DEA Special Operations Division, and the Santo Domingo Country Office, under the supervision of Special Agent in Charge Renita D. Foster; special agents of IRS Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins; and the Morristown, New Jersey, Police Department, under the direction of Chief Darnell Richardson; with the investigation leading to the charges. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest of Humeau-Hernandez and his extradition to the United States. U.S. Attorney Sellinger thanked officials in the Dominican Republic for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Criminal Division in Newark.
This case is part of an Organized Crime Drug Enforcement Task Force (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 charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bergen County Man Charged for Participating in Multimillion-Dollar Counterfeit Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today on charges of participating in a multimillion-dollar conspiracy to traffic counterfeit computer networking devices, U.S. Attorney Philip R. Sellinger announced.
Musa Karaman, 35, of North Arlington, New Jersey, is charged by complaint with one count of conspiracy to commit mail and wire fraud. He appeared by videoconference today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $300,000 unsecured bond.
According to documents filed in this case and statements made in court:
From at least September 2017 through May 2021, Karaman, Israfil “David” Demir and another an uncharged conspirator, formed and operated numerous entities in the business of selling computer networking equipment, particularly, networking devices manufactured by Cisco Systems Inc., a major U.S. technology conglomerate. Although Karaman and his conspirators advertised the Cisco products they offered for sale as new and genuine, the products were in fact counterfeit Cisco devices that the conspirators procured from various illicit suppliers based in China.
In May 2021, federal agents executed a search warrant at a Woodland Park, New Jersey warehouse used by Karaman and his conspirators as their business headquarters and discovered thousands of counterfeit Cisco devices, including 7,260 counterfeit Cisco transceivers with a total manufacturer’s suggested retail price of approximately $13.77 million. Cisco informed law enforcement officials that this is one of the largest volumes of counterfeit Cisco transceivers ever seized in the United States, and that the total value of the seized counterfeit Cisco transceivers was unprecedented. From September 2017 to May 2021, U.S. Customs and Border Protection seized approximately $3.8 million worth of counterfeit Cisco products contained in over 20 shipments sent by illicit China-based suppliers to various locations under the control of Karaman and his conspirators, including their warehouse and home addresses, often under bogus names.
Demir was charged by criminal complaint on May 26, 2021, in this matter.
The conspiracy to commit mail and wire fraud count carries a maximum potential penalty of 20 years in prison and 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 U.S. Department of Homeland Security, Homeland Security Investigations (HSI), Newark Office, under the direction of Special Agent in Charge Jason J. Molina; officers from the Port of New York/Newark, U.S. Customs and Border Protection, Office of Field Operations New York Field Office, under the direction of Acting Port Director TenaVel T. Thomas, and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s arrest.
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.
New York Man Admits Transporting Child Pornography into New JerseyRead the Press Release
TRENTON, N.J. – A New York man today admitted transporting multiple items depicting child sexual abuse into New Jersey, U.S. Attorney Philip R. Sellinger announced.
Jesus Modesto Sanchez, 31, of New York, pleaded guilty by videoconference before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of transporting of child pornography.
According to documents filed in this case and statements made in court:
In October 2020, Modesto Sanchez began communicating on a web-based application with an undercover officer, who he believed was a minor. On Oct. 17, 2020, Modesto Sanchez was arrested after traveling from New York to New Jersey to meet the minor. Law enforcement subsequently discovered a significant collection of child pornography on Modesto Sanchez’s cellular telephone, including approximately 72 videos and one image depicting the sexual abuse of minors.
The charge of transportation of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and fine of $250,000. Sentencing is scheduled for Sept. 20, 2022.U.S. Attorney Sellinger credited Special agents with the FBI, under the direction of Acting Special Agent in Charge Michael Messenger; and members of the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Annmarie Taggart, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
22-190
Defense counsel: Keith G. Oliver Esq., Middletown, New Jersey
Florida Man Sentenced to 120 Months in Prison for Role in $50 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – A Florida man was sentenced today to 120 months in prison for his role in a health care fraud and kickback scheme, U.S. Attorney Philip R. Sellinger announced.
Pat Truglia, 54, of Parkland, Florida, previously pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to conspiracy to commit health care fraud. Judge McNulty imposed the sentence today in Newark federal court. Two co-defendants, Nicholas Defonte, 73, and Christopher Cirri, 64, both of Toms River, New Jersey, previously pleaded guilty to the same conspiracy and are awaiting sentencing.
According to documents filed in these cases and statements made in court:
Each defendant played a role in defrauding health care benefit programs by offering, paying, soliciting, and receiving kickbacks and bribes in exchange for completed doctors’ orders for durable medical equipment, namely orthotic braces (DME orders):
• Truglia and his conspirators had financial interests in multiple DME companies. The DME companies paid kickbacks to suppliers of DME orders, including Cirri, Defonte, and Truglia, in exchange for DME orders, which the DME companies subsequently fraudulently billed to Medicare, TRICARE, CHAMPVA, and other health care benefit programs. Truglia and his conspirators concealed their ownership of the DME companies by using straw owners who were falsely reported to Medicare as the owners of the companies.• Truglia, Cirri, Defonte, and their conspirators owned and operated multiple call centers through which they obtained DME orders for beneficiaries of Medicare and other federal health care programs. The call centers paid illegal kickbacks and bribes to telemedicine companies to obtain DME orders for these beneficiaries. The telemedicine companies then paid physicians to write medically unnecessary DME orders. The DME orders were provided to DME supply companies owned by Truglia and others in exchange for bribes. The DME supply companies in turn provided the braces to beneficiaries and fraudulently billed the health care programs.
• Cirri, Defonte, and their conspirators had business relationships with call centers through which they obtained prescriptions for compounded medications and other medical products reimbursable by federal and private health care benefit programs. Cirri and Defonte provided these prescriptions for compounded medical prescriptions and other medical products in exchange for kickbacks and bribes from companies that fraudulently billed them to health care programs.
The defendants caused losses to Medicare, TRICARE, and CHAMPVA of approximately $50 million.
In addition to the prison term, Judge McNulty sentenced Truglia to three years of supervised release and ordered restitution of $33,777,799.67 and forfeiture of $9,477,925.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; the 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, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the Opioid Abuse Prevention & Enforcement and Health Care Fraud Units in Newark, Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark, and Trial Attorney Darren Halverson of the Criminal Division’s Fraud Section.
Defense counsel:
Truglia: Bernard M. Cassidy Esq., Fort Lauderdale, Florida
Cirri: Timothy Anderson Esq., Red Bank, New Jersey
Defonte: Robert Weir Esq., Little Silver, New JerseyPennsylvania Man Charged with $1.7 Million Paycheck Protection Program Loan Fraud SchemeRead the Press Release
NEWARK, N.J. – A Pennsylvania man was charged for his role in a scheme to fraudulently obtain over $1.7 million in federal Paycheck Protection Program (PPP) loans for himself and others, U.S. Attorney Philip R. Sellinger announced today.
Darryl Duanne Young, aka “Darryl Duanne Isom Young,” 59, of Kingston, Pennsylvania, is charged by complaint with one count of conspiracy to commit bank fraud, four counts of bank fraud, and two counts of money laundering. Young made his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor and was released on $150,000 unsecured bond.
According to documents filed in this case and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The law authorized up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
Young engaged in a scheme to illegally obtain, for himself and his conspirators, over $1.7 million in PPP loans through numerous misrepresentations to banks. Young submitted and directed others to submit fraudulent PPP loan applications. He submitted falsified tax documents and bank statements to a victim lender in support of PPP loan applications. He received over $230,000 in PPP loans for businesses he controlled and received a percentage of loan proceeds for assisting in submitting fraudulent applications on behalf of others.
The counts of conspiracy to commit bank fraud and bank fraud each carry a maximum penalty of 30 years in prison and a $1 million fine. The counts of money laundering each carry a maximum potential penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Donnelly; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Jason J. Molina in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Katherine M. Romano and David E. Dauenheimer of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Monmouth County Man Admits Making Threatening Communications and Calling in False Bomb ThreatsRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted making threatening telephone and email communications to New Jersey state officials, judges, law enforcement officers, and attorneys, and phoning in false bomb threats to local and state government offices, a police department, two law firms and a commercial establishment, U.S. Attorney Philip R. Sellinger announced.
Eric G. Hafner, 31, formerly of Monmouth County, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp to one count of making threating communications in interstate or foreign commerce with intent to extort, one count of making threatening communications in interstate or foreign commerce, and one count of conveying false information concerning the use of an explosive device.
According to documents filed in this case and statements made in court:
Between July 2016 and May 2018, while residing outside the United States, Hafner communicated threats to numerous individuals located in and around Monmouth County and elsewhere. The victims were elected officials, judges, police officers, attorneys, and their families. Hafner sought to extort $350,000 from some of his victims. During this time period, Hafner also made false bomb threats to an elected official’s office, a county courthouse, a police department, two law firms, and a commercial establishment.
The count of making threating communications in interstate or foreign commerce with intent to extort carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of conveying false information concerning the use of an explosive device carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The count of making threatening communications in interstate or foreign commerce carries a maximum penalty of five years in prison and a $250,000 fine. Hafner’s sentencing is scheduled for Sept. 21, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Acting Special Agent in Charge Michael Messenger, with the investigation leading to today’s guilty plea. He also thanked detectives of the Monmouth County Prosecutor’s Office; officers of the Monmouth County Sheriff’s Office; New Jersey State Police; the Bradley Beach Police Department; Fairhaven Police Department; Aberdeen Police Department; the Hazlet Police Department; Shrewsbury Police Department; the Red Bank Police Department; the Freehold Township Police Department; the Middletown Police Department; the Neptune Township Police Department; the Oceanport Police Department; the Deal Police Department; and the Manasquan Police Department for their assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Ian D. Brater and R. Joseph Gribko of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Former Union County Postal Employee Sentenced to Three Years in Prison for Conspiring to Commit Bank Fraud and Fraudulently Attempting to Obtain SBA LoansRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman was sentenced today to 36 months in prison for stealing checkbooks and credit cards from the mail while employed as a U.S. Postal Service (USPS) clerk and filing fraudulent applications for loans intended for small businesses experiencing disruptions due to the COVID-19 pandemic, U.S. Attorney Philip R. Sellinger announced.
Janel Blackman, 42, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging her with one count of conspiracy to commit bank fraud and one count of making false statements to the U.S. Small Business Administration (SBA). Judge Wigenton imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
From February 2019 to May 2020, Blackman conspired to obtain money from victim financial institutions fraudulently, by, among other things, stealing credit cards and blank checkbooks from a post office in Summit, New Jersey, where she was employed as a clerk, and providing them to conspirators in exchange for cash. Blackman’s conspirators then fraudulently forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students, and who had given the conspirators access to their accounts, also in exchange for cash. Blackman’s conspirators deposited the fraudulent checks online and at various bank ATMs throughout New Jersey and later withdrew funds from the bank accounts before the victim financial institutions identified the checks as fraudulent and could block further withdrawals. Blackman and her conspirators obtained and attempted to obtain approximately $366,000 from victim financial institutions.
From July 2020 to February 2021, Blackman also filed fraudulent applications for Economic Injury Disaster Loans (EIDL), which are intended for small businesses experiencing substantial financial disruption due to the COVID-19 pandemic. The applications were for businesses that did not exist and were intended to induce the SBA to provide funding to Blackman under false pretenses. For example, on Oct. 25, 2020, Blackman filed an EIDL application in the name of Hard Times Café, stating that it was a liquor store in Newark with 10 employees. In fact, no such business existed. Blackman further falsely stated that she, as the listed owner of Hard Times Cafe, was not then presently subject to formal criminal charges in any jurisdiction, even though as of Sept. 17, 2020, she had been arrested and charged by criminal complaint in the District of New Jersey with the bank fraud conspiracy described above. The SBA did not approve the application.
Three of Blackman’s conspirators have pleaded guilty and were sentenced: Tashon Ragan, 22, of Hillside, New Jersey, 33 months in prison; Jahaad Flip, 22, of Newark, New Jersey, 28 months in prison; and Jeffrey Bennett, 27, of Irvington, New Jersey, 48 months in prison.
In addition to the prison term, Judge Wigenton sentenced Blackman to three years of supervised release and ordered restitution of $61,438.
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; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi; special agents with IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s sentencing. He also thanked the Summit Police Department, the New Providence Police Department, the Piscataway Police Department, the Newark Police Department, the South Orange Police Department, and the Little Falls Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Elaine K. Lou in Newark.
Camden County Man Admits Fentanyl Trafficking and Illegally Possessing FirearmRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man with four prior felony convictions today admitted to possessing with intent to distribute fentanyl and to illegally possessing a firearm, U.S. Attorney Philip R. Sellinger announced.
Tyquan Burrell, 30, of Camden, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler in Camden federal court to two counts of an indictment charging him with possession with intent to distribute more than 400 grams of fentanyl and illegal possession of a firearm by a convicted felon.
According to documents filed in this case and statements made in court:
On Oct. 1, 2020, law enforcement officers executing a search warrant at Burrell’s residence found 2,521 wax folds and three sandwich-sized clear plastic bags containing more than 300 grams of fentanyl, approximately $34,000 in U.S. currency, and a loaded handgun in a bedroom used by Burrell. That same day, Burrell was arrested in Camden County, New Jersey. A search incident to arrest found him to be in possession of 418 wax folds containing fentanyl.
The possession with intent to distribute fentanyl charge carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of life in prison, and a maximum fine of $10 million. The charge of illegally possessing a firearm carries a maximum of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 21, 2022.
This prosecution is part of the Violent Crime Initiative (VCI) in Camden. The Camden VCI was formed in January of 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Camden County Prosecutor’s Office, and the Camden County Police Department for purpose of combatting violent crime in and around the Camden area. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to investigate and prosecute violent offenders who endanger the safety of the community. The VCI includes the U.S. Attorney’s Office, the Camden County Prosecutor’s Office, the Camden County Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the U.S. Marshals, The U.S. Probation Office, the Camden County Sheriff’s Office, the New Jersey State Parole Board, the New Jersey State Police, the Rutgers University Police Department, and the Liberty Mid-Atlantic High Intensity Drug Trafficking Area (HIDTA) program.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay; the Gloucester Township Police Department, under the direction of Chief David J. Harkins; the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; and the Winslow Township Police Department under Chief George M. Smith, with the investigation leading to today’s guilty plea. He also thanked the Camden County Sherriff’s Office, under the direction of Sherriff Gilbert L. “Whip” Wilson; special agents of the ATF, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; and officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan, for their assistance with the case.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.