District of New Jersey
Press releases recorded for this federal judicial district.
Essex County Man Sentenced to 108 Months in Prison for Mortgage and Securities Fraud SchemesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 108 months in prison for conspiring to obtain mortgage loans to finance the sale of properties to unqualified buyers, securities fraud by inducing a victim into investing over $1.2 million into real estate companies under false pretenses, and violation of supervised release, Attorney for the United States Vikas Khanna announced.
Maurice Bethea, 54, of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of bank fraud conspiracy and one count of securities fraud. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From May 2009 through June 2012, Bethea and others recruited buyers to purchase multi-unit residential properties owned by Westinghouse Redevelopment Act Inc., a company Bethea controlled. Bethea and his conspirators used false information about the buyers’ assets and income to support fraudulent mortgage loan applications to a mortgage company. They falsified the buyers’ loan application by boosting liquid assets. Bethea and his conspirators transferred cash from Westinghouse’s and others’ accounts to the buyers’ bank accounts and falsified documents to hide the transfers. After the loans were approved, Bethea and his conspirators caused the return of the funds to Westinghouse. When it came time to close the transactions, Bethea and his conspirators defrauded the mortgage company by hiding that Westinghouse and others, not the buyers, provided the cash to close the transactions. Ultimately, the buyers were not able to repay the loans, which resulted in losses to several financial institutions.
From April 2017 through May 2018, Bethea deceived an individual into investing in Bethea’s real estate companies. Bethea told the victim that he would invest his money in companies that Bethea owned and that were in the business of buying foreclosed homes, renovating the homes, and then reselling the properties. Bethea falsely promised the victim that Bethea would pay him a 12 percent return on his investment and $10,000 each time one of Bethea’s companies sold a property. In reality, Bethea took the victim’s $1.27 million investment, spent the money for other purposes, and then lied to the victim about Bethea’s failure to make monthly interest payments and the condition of the properties under Bethea’s control.
The 108-month sentence imposed today includes a 21-month sentence for violation of supervised release; Bethea was on supervised release for an earlier conviction at the time he committed the counts he pleaded guilty to in this case. In addition to the prison term, Judge Wigenton sentenced Bethea to five years of supervised release. Restitution will be determined at a later date.
Attorney for the United States Khanna 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 the U.S. Department of Housing & Urban Development, Office of Inspector General, Mid-Atlantic Region, under the direction of Special Agent in Charge Shawn Rice; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Andrew M. Trombly of the Cybercrime Unit and Ari B. Fontecchio of the Special Prosecutions Division in Newark, and Special Assistant U.S. Attorneys Kevin V. Di Gregory and Charlie L. Divine of the Federal Housing Finance Agency, Office of Inspector General.
Essex County Man Arrested for Distributing Child PornographyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man employed as a food services worker in a high school was arrested today for distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Ezra W. Saphire, 29, of West Orange, New Jersey, is charged by complaint with one count of distribution of child pornography. He had his initial appearance by videoconference before U.S. Magistrate Judge André M. Espinosa and was released on home confinement with electronic monitoring.
According to documents filed in this case and statements made in court:
Saphire was employed as a food services contractor at a high school in East Hanover, New Jersey. From June 9, 2021, through Jan. 22, 2022, law enforcement conducted undercover online sessions using a publicly-available peer-to-peer (P2P) software application program, a method of communication available to Internet users through the use of special software that allows users to trade digital files through a worldwide network that is formed by linking computers together. Law enforcement officers used P2P software to download 1,014 video files and 659 image files containing images of child sexual abuse through the IP address associated with Saphire’s residence. These files included multiple visual depictions of pre-pubescent children being sexually abused by adults.
The count of distributing child pornography carries a mandatory minimum term of five years in prison and a maximum term of 20 years in prison and a fine of $250,000, or twice the gross gain or loss caused by the offense.
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, with the investigation leading to today’s charges. He also thanked the West Orange Police Department and the East Hanover Police Department for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Hayden M. Brockett of the Health Care Fraud 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.
Howell Township Man Admits Subscribing to False Tax ReturnsRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man who ran an illegal gambling business today admitted filing a false tax return, U.S. Attorney Philip R. Sellinger announced.
Steven Bryce, 52, of Howell Township, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to Count Five of an indictment charging him with subscribing to a false tax return.
According to documents filed in this case and statements made in court:
In 2013, Bryce operated an illegal gambling business. On July 14, 2014, Bryce filed with the IRS U.S. Individual Income Tax Return, Form 1040, for the calendar year 2013 on behalf of himself and his spouse, which falsely stated that they had total income of $112,899. The 2013 Tax Return was not true and correct: Bryce received significant income from his gambling business, and, as a result, had income substantially in excess of the amount he reported. As part of his plea agreement, Bryce agreed to pay full restitution of $338,885 to the IRS for tax losses resulting from false tax returns filed by Bryce for calendar years 2011 to 2016.
The charge of subscribing to a false tax return carries a maximum potential penalty of three years in prison and a maximum $250,000 fine. Sentencing is scheduled for July 11, 2022.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigations, under the direction of Special Agent in Charge Michael Montanez, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Sara F. Merin and J Fortier Imbert of the Special Prosecutions Division in Newark.
United States Citizen Residing in Dominican Republic Sentenced to 178 Months in Prison for Conspiring to Import Cocaine into United StatesRead the Press Release
NEWARK, N.J. – A United States citizen who had been residing in the Dominican Republic was sentenced today to 178 months in prison for conspiring to import hundreds of pounds of cocaine into the United States from Venezuela, Colombia, and the Dominican Republic, U.S. Attorney Philip R. Sellinger announced.
Edwin Nieves-Rosado, aka “Tortuga,” 56, previously pleaded guilty before U.S. District Judge Esther Salas to Count One of an indictment charging him with conspiracy to import five kilograms or more of cocaine. Judge Salas imposed a sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2016 through Jan. 10, 2020, Nieves-Rosado and others conspired to import at least 800 kilograms of cocaine. Nieves-Rosado admitted playing a managerial role in this conspiracy, which involved more than five individuals.
In addition to the term of imprisonment, Judge Salas sentenced Nieves-Rosado to five years of supervised release.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney Sellinger credited special agents and task force officers with the Drug Enforcement Administration operating in New Jersey, under the direction of Special Agent in Charge Susan A. Gibson in Newark, as well as special agents and task force officers with the Drug Enforcement Administration operating in Colombia, the Dominican Republic, and Puerto Rico. He also thanked the Justice Department’s Office of International Affairs and the U.S. Marshals Service for their assistance with the case.
The government is represented by Assistant U.S. Attorney Lauren Repole of the Economic Crimes Unit and Assistant U.S. Attorney Francesca Liquori, Chief of the OCDETF/Narcotics Unit.
Gloucester County Man Admits Trafficking and Unlawfully Possessing FirearmsRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man with five prior felony convictions today admitted to unlawfully possessing and conspiring to sell multiple firearms, U.S. Attorney Philip R. Sellinger announced.
Dylan Ianncelli, 28, of Pitman, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of conspiring to make false statements in obtaining firearms and to illegally engage in the business of dealing in firearms, as well as one count of possession of firearms by a convicted felon.
According to documents filed in this case and statements made in court:
Ianncelli and his conspirator, Jessy Hill, agreed to purchase firearms in Georgia and transport them for resale in New Jersey. On Aug. 12, 2021, Hill purchased 11 firearms from a licensed dealer in Georgia. Hill falsely indicated during the purchase that she was the actual buyer/transferee of the firearms even though she was purchasing the firearms for others. Ianncelli and Hill drove a car containing the firearms from Georgia to Mantua, New Jersey, where the car was stopped by law enforcement officers the following morning. Officers recovered from the car the 11 firearms purchased by Hill the prior day, as well as ammunition and a 12th firearm with a defaced serial number that Hill purchased a week earlier.
The count of being a felon in possession of a firearm carries a maximum potential penalty of up to 10 years in prison. The charge of conspiracy carries a maximum potential penalty of up to five years in prison. Each count carries a maximum fine of $250,000. Sentencing is scheduled for July 12, 2022.
Hill is charged by complaint with the same conspiracy. The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the leadership of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s guilty plea. He also thanked the New Jersey State Police, the Mantua Township Police Department, and the Gloucester County Prosecutor’s Office for their assistance on this investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
North Carolina Man Charged with Wire Fraud, Securities Fraud, and Money Laundering in Connection with Ponzi SchemeRead the Press Release
NEWARK, N.J. – A North Carolina man was charged today for defrauding at least 25 people by operating a Ponzi scheme, U.S. Attorney Philip R. Sellinger announced.
David Schamens, 64, of Greensboro, North Carolina, is charged by complaint with one count each of wire fraud, securities fraud and money laundering. He is scheduled to have his initial court appearance in Newark federal court on March 8, 2022.
According to the criminal complaint and statements made in court:
Starting in 2014, Schamens fraudulently solicited investments in various entities he controlled, including TD Trading LLC, TFG Trading LLC, TradeStream Analytics LTD, Tradedesk Financial Group Inc. and others, under the promise of annual rates of return of 12 percent to 30 percent. In 2019, Schamens began to solicit investment in Tradestream Algo Fund, an algorithm-based trading pool that he claimed to have developed. In each instance, Schamens directed investors to wire funds directly or to transfer portions of their Individual Retirement Accounts (IRAs) to bank accounts he controlled.
Once invested, Schamens often moved victim funds through several different bank accounts before he ultimately used the funds for some non-investment related purpose. Schamens took several steps to keep his customers’ trust, including: sending false account statements; posting false monthly account statements to his companies’ websites showing balances for trading accounts that did not exist; and sending false tax documents reporting earnings that did not exist.
Schamens allegedly misappropriated at least $6.8 million from at least 25 different individuals, using some of that money to repay earlier investors in the manner of a Ponzi scheme, and to pay for his personal expenses, including the purchase of a house, payments for a luxury car, and other personal expenses.
The count of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000. The count of securities fraud carries a maximum potential penalty of 25 years in prison and a fine of $1 million. The count of money laundering carries a maximum potential penalty of 20 years in prison and a fine of $500,000.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges. He also thanked the U.S. Securities Exchange Commission’s Division of Enforcement, under the direction of Director Gurbir S. Grewal, for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Sophie E. Reiter and Anthony Torntore of the U.S. Attorney’s Office’s Cyber Crime Unit.
The charges and allegations in the complaint are merely accusations, and he is presumed innocent unless and until proven guilty.
New York Man Sentenced to Four Years in Prison for Role in Bank FraudRead the Press Release
CAMDEN, N.J. – A Bronx, New York, man was sentenced today to 48 months in prison for his role in a scheme to steal bank customer identities and then use the information to steal more than $600,000, U.S. Attorney Philip R. Sellinger announced.
Lamar Melhado, 32, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to Count 1 of an indictment charging him with conspiracy to commit bank fraud. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From August 2016 through August 2017, Melhado conspired with Jamere Hill-Birdsong, of Camden, and others, to defraud a Mount Laurel, New Jersey, bank. Hill-Birdsong worked inside the banks’s call center and recruited other call center employees to participate in the scheme by stealing the identities and account information of customers who called into the bank’s call center.
The conspirator bank employees would then take photographs or screenshots of the bank customers’ account information and signatures and would send that information to Hill-Birdsong and Melhado. The conspirators then had phony identification documents made in the names of the bank customers, and used various runners to go into bank branches and make unauthorized cash withdrawals. The conspirators also used the stolen identity information to conduct unauthorized online transfers of monies from the customer’s accounts. Hill-Birdsong was indicted in March 2021 on conspiracy to commit bank fraud, bank fraud and aggravated identity theft; those charges remain pending. The charges and allegations contained in the indictment against Hill-Birdson are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Melhado to five years of supervised release and ordered restitution of $604,096 and forfeiture of $151,024.
U.S. Attorney Sellinger credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
New Jersey Man Convicted of Threatening Federal Law Enforcement OfficersRead the Press Release
NEWARK, N.J. – A New Jersey man was convicted by a federal jury today of threatening to assault and murder federal law enforcement officers, U.S. Attorney Philip R. Sellinger announced.
Frank Monte, 51, of New Jersey, was convicted following a one-week trial before U.S. District Judge John Michael Vazquez in Newark federal court of three counts of threatening a federal law enforcement officer, and of two counts of transmitting threats in interstate commerce.
According to documents filed in the case and the evidence at trial:
On July 21, 2019, Monte repeatedly called the emergency line of the U.S. Department of Veterans Affairs (VA) Police at the VA Lyons hospital campus. During one of those calls, Monte threatened to “shoot up” a VA Police officer.
On Oct. 15, 2019, Monte called the office of a U.S. Congressman and spoke with a staff member. During that call, Monte threatened that if he ever saw a particular special agent of the U.S. Secret Service in New Jersey, Monte would assault him.
On Oct. 18, 2019, Monte called a special agent of the U.S. Capitol Police. During that call, Monte once again threatened to assault the same special agent of the U.S. Secret Service.
The count of threatening to murder a federal law enforcement officer based on the July 2019 threat carries a maximum penalty of 10 years in prison. The two counts of threatening to assault a federal law enforcement officer based on the October 2019 threats each carry a maximum penalty of six years in prison. The two counts of transmitting a threat in interstate commerce based on the October 2019 threats each carry a maximum penalty of five years in prison. Each count also carries a maximum fine of $250,000. Sentencing is scheduled for July 12, 2022.
U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s conviction. He also thanked the U.S. Department of Veterans Affairs Police, VA New Jersey Health Care System, under the direction of Acting Chief Minelli Torres-Sukola; members of the U.S. Capitol Police, Threat Assessment Section, under the direction of Assistant Special Agent in Charge Chad Beckett; members of the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr.; and members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore and Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
Mercer County Man Sentenced to Nine Years in Prison for Illegal Possession of WeaponRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man with prior felony convictions was sentenced to 108 months in prison for unlawfully possessing a firearm and ammunition, U.S. Attorney Philip R. Sellinger announced today.
Omar Kennedy, 40, of Trenton, previously pleaded guilty by before U.S. District Judge Anne E. Thompson to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon. Judge Thompson imposed the sentence on March 4, 2022.
According to documents filed in this case and statements made in court:
On May 23, 2019, the Trenton Police Department was called to a residence in Trenton, New Jersey on the report of a domestic disturbance. When officers arrived, the female resident reported that Kennedy pointed a firearm at her and threatened to shoot and kill her. While law enforcement officers were at the location, Kennedy phoned the female victim and repeated his threat to shoot her. Officers located Kennedy in the immediate area of the home, and he was found in possession of a firearm loaded with eight rounds of ammunition.
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, Newark Field Division; officers with the Trenton Police Department, under the direction of Director Steve E. Wilson; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Michelle S. Gasparian of the U.S. Attorney’s Office Criminal Division in Trenton.
Essex County Man Charged with Illegally Possessing Firearm in Connection with June 2021 ShootingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man with a previous felony conviction made his initial appearance today on a criminal complaint charging him with two counts of illegally possessing a firearm and ammunition, the first count related to a June 2021 shooting in Newark, U.S. Attorney Philip R. Sellinger announced.
Kevin Hills, 21, of Newark, was charged by complaint on Feb. 24, 2022, appeared today by videoconference before U.S. Magistrate Judge André M. Espinosa, and was detained.
According to documents filed in this case and statements made in court:
On June 19, 2021, a shooting took place in Newark. Responding officers of the Newark Police Department (NPD) found an abandoned Jimenez Model JA-Nine 9-millimeter semiautomatic pistol in a vacant lot near the scene and multiple spent shell casings on the sidewalk. NPD detectives later recovered video from the vicinity of the shooting recorded during the morning of the shooting. One video showed an individual matching Hills’ appearance firing a handgun in the same area where the shell casings and handgun were found.
On July 20, 2021, an NPD detective who had been assigned to investigate the shooting saw and stopped Hills. The detective then recovered a Ruger 9-millimeter caliber handgun loaded with 11 rounds of ammunition from Hill’s waistband.
Hills had previously been convicted in January 2019 in the New Jersey Superior Court of aggravated assault on a corrections officer, for which he was sentenced to three years in prison.
Each count of illegal possession of a firearm and ammunition by a convicted felon carries a maximum sentence of 10 years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, and members of the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Theodore N. Stephens II, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Morris County Man Charged with Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was charged today with distributing videos and images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Anselmo Girimonte, 51, of Wharton, New Jersey, is charged by complaint with one count of distribution of child pornography. He appeared by videoconference today before U.S. Magistrate Judge James B. Clark III and was detained.
According to documents filed in this case and statements made in court:
From Dec. 27, 2021, through Jan. 17, 2022, Girimonte distributed material containing images and video files of child sexual abuse, via a publicly available online peer-to-peer (P2P) file-sharing network of linked computers. Users must download the P2P program, which is widely available for free on the Internet. The program allows the user to place files into a designated “shared” folder on his or her hard drive, from which other P2P program users can then download those files directly to the “shared” folders of their own computers. Users can then browse, search, select, and directly download, those files. The program typically keeps a log of each downloaded event.
Law enforcement conducted an undercover online session to access the P2P program and to download nine video files containing child pornography from an IP address assigned to an internet service provider account associated with Girimonte’s residence. These files included multiple visual depictions of pre-pubescent children being sexually abused by adults.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s charges. He also thanked the Morris County Prosecutor’s Office, the Rockaway Township Police Department, and the United States Postal Inspection Service for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Camila A. Garces of the Violent 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.
Monmouth County Brother and Sister Arrested for Conspiring to Evade Payment of $1.5 Million in Payroll TaxesRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, brother and sister were arrested today on charges of tax evasion, U.S. Attorney Philip R. Sellinger announced.
Enrico Cifelli, 51, of Holmdel, New Jersey, and Michelle Bocchieri, 42, of Matawan, New Jersey, were each charged by indictment on March 3, 2022, with one count of conspiracy to defraud the United States. Cifelli is additionally charged with one count of evasion of payment of payroll taxes, four counts of failure to pay over payroll taxes, and one count of evasion of assessment of income tax. Cifelli and Bocchieri were arrested today and made their initial appearances before U.S. Magistrate Judge Lois H. Goodman via videoconference. Cifelli was released on a $500,000 unsecured appearance bond and Bocchieri on a $250,000 unsecured appearance bond. Arraignment is scheduled for April 4, 2022, by videoconference before U.S. District Judge Peter G. Sheridan.
According to documents filed in this case and statements made in court:
From 2013 through October 2020, Cifelli and Bocchieri, who are siblings, conspired to evade the payment of more than $1.5 million in payroll taxes, penalties, and interest that Cifelli owed the IRS. Cifelli’s tax liability stemmed from the unpaid payroll taxes of two companies that he controlled: Cifelli Disposal Inc., a waste disposal business, and LBAB LLC. Cifelli failed to pay the vast majority of payroll taxes for Cifelli Disposal for the years 2004 through 2008 and for LBAB for the years 2009 through 2015, resulting in more than $1.5 million in taxes, penalties, and interest.
To avoid paying the IRS and give the false impression that Cifelli lacked the ability to pay his back taxes, Cifelli and Bocchieri conspired to have Bocchieri fund Cifelli’s lifestyle through an entity she nominally owned, but Cifelli controlled. For instance, Bocchieri caused her company to pay the down payment, mortgage, and other expenses for Cifelli’s personal residence.
Cifelli submitted a false Offer in Compromise to the IRS in June 2016, making multiple misrepresentations and material omissions of his assets and household income, while offering to settle his tax debt for pennies on the dollar.
Each count carries a maximum penalty of five years in prison and a fine of up to $250,000, or twice the gross pecuniary gain or loss to any person, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division 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 Jersey Man Sentenced to 80 Months in Prison for Stealing more than $450,000 in Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A Union, New Jersey, man was sentenced today to 80 months in prison for illegally obtaining more than $450,000 in unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced.
Maurice Mills, 30, of Union, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to an information charging him with wire fraud. Judge Martinotti imposed the sentence by videoconference today.
According to documents filed in the case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provides unemployment insurance benefits (UIB) for individuals who were not eligible for other types of unemployment (e.g., the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Compensation that provides additional benefits to those eligible for PUA and regular UIB. The New York State Department of Labor administers and manages the regular unemployment and PUA programs in the State of New York.
Between August and September of 2020, Mills submitted fraudulent UIB applications to the State of New York using the names of other individuals. As a result, the State of New York approved and provided, and Mills falsely obtained, more than $450,000 in UIB.
In addition to the prison term, Judge Martinotti sentenced Mills to three years of supervised release and ordered him to pay $486,760 in restitution.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in Manhattan; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, with the investigation leading to today’s arrest. He also thanked the New York State Department of Labor, Office of Special Investigations for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
California Woman Admits Selling over 100,000 Counterfeit Retail Store Coupons Worth over $9.9 MillionRead the Press Release
NEWARK, N.J. – A Modesto, California, woman admitted today that she fraudulently created and sold over $9.9 million worth of counterfeit Catalina coupons used at various retail stores across the United States for the purchase of household items, U.S. Attorney Philip R. Sellinger announced.
Tong Lor, aka “Mandy Carr,” 34, pleaded guilty by video conference before U.S. District Judge Esther Salas to an information charging her with one count of conspiracy to commit mail fraud.
According to documents filed in this case and statements made in court:
From 2017 through May 2021, Lor was involved in a large-scale operation to produce and sell fraudulent Catalina Coupons using the U.S. Postal Service (USPS) mail system. A Catalina Coupon was a full-color, rectangular paper coupon that was part of a program created by numerous manufacturers of household products and honored by hundreds of participating retail stores located throughout the United States. Lor sold the counterfeit coupons via invitation-only internet groups associated with her businesses, which were accessible via the Internet site, Telegram Messenger Inc. (Telegram), a cloud-based, mobile instant communications service.
Lor printed coupons using fake bar codes and then mailed these counterfeit coupons in over 13,000 USPS parcels to purchasers in New Jersey and throughout the United States. Over 100,000 counterfeit coupons – with a value of over $9.9 million – were sold by Lor for use at retail stores across the country for discounts on household items such as diapers, laundry detergent, and toiletries.
The charge of conspiracy to commit mail fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Aug. 16, 2022.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Blake Coppotelli and Heather Suchorsky of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Mercer County Man Sentenced to 30 Months in Prison for Interfering with Law Enforcement Officers During Civil DisorderRead the Press Release
NEWARK, N.J. – A Mercer County, New Jersey, man was sentenced today to 30 months in prison for attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a riot in Trenton, U.S. Attorney Philip R. Sellinger announced.
Earlja J. Dudley, 28, of Trenton, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce. Judge Martinotti imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
On May 31, 2020, large-scale protests were held throughout the United States, including in Trenton, in response to the death of George Floyd. Although the May 31st protest in Trenton was peaceful earlier in the day, violence erupted later. A group of individuals proceeded down East State Street in downtown Trenton and began to riot, smashing store fronts, looting stores, and attacking multiple marked Trenton Police Department vehicles parked on the 100 Block of East State Street.
A City of Trenton street camera and other video footage taken by an individual present on the street captured Dudley and an unidentified male open the hood of a police vehicle. Dudley was then joined by another unidentified male who ignited an object that Dudley was holding. Dudley then placed the flaming object into the engine well of a Trenton Police Department vehicle, attempting to set the police vehicle on fire. Law enforcement later identified Dudley through analysis of street camera and other video footage and he was arrested on June 17, 2020.
In addition to the prison term, Judge Martinotti sentenced Dudley to three years of supervised release.
Dudley is the third of four individuals sentenced in connection with the protest in Trenton. Killian F. Melecio was sentenced in June 2021 to 28 months in prison and three years of supervised release; Justin D. Spry was sentenced in September 2021 to 24 months in prison and three years of supervised release. Kadeem A. Dockery previously pleaded guilty and is awaiting sentencing.
U.S. Attorney Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force in Newark, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s sentencing. He also thanked officers of the Trenton Police Department, under the direction of Police Director Steve E. Wilson; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and officers of the New Jersey Department of Corrections, under the direction of Acting Commissioner Victoria L. Kuhn, for their assistance.
The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Former Monmouth County Residents Charged with $3.3 Million Paycheck Protection Program Fraud SchemeRead the Press Release
NEWARK, N.J. – Two former residents of Monmouth County, New Jersey, now residing in Frisco, Texas, were arrested today for their roles in fraudulently obtaining over $3 million in federal Paycheck Protection Program (PPP) payments, U.S. Attorney Philip R. Sellinger announced.
Jean E. Rabbitt, 51, formerly of Farmingdale, New Jersey, is charged by complaint with bank fraud, conspiracy to engage in monetary transactions in property derived from specified unlawful activity and engaging in monetary transactions in property derived from specified unlawful activity. Kevin Aguilar, 51, formerly of Farmingdale, is charged by complaint with conspiracy to engage in monetary transactions in property derived from specified unlawful activity and engaging in monetary transactions in property derived from specified unlawful activity. Rabbitt and Aguilar are scheduled to make their initial appearances by videoconference on March 3, 2022, before U.S. Magistrate Judge Kimberly C. Priest Johnson in the Eastern District of Texas.
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. 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.
Rabbitt submitted fraudulent PPP loan applications on behalf of four businesses that she controlled. The applications contained fraudulent representations to the lenders, including a Federal Home Loan Bank member, and the Small Business Administration (SBA), including fraudulent payroll records and tax records and false certifications as to the number of employees and gross revenue of Rabbitt’s businesses. According to IRS records, none of the purported tax documents that Rabbitt submitted to the PPP lenders were, in fact, filed with the IRS. Other government records showed that, contrary to the fraudulent payroll records and certifications, Rabbitt’s businesses had not in fact paid wages to any employees. Based on Rabbitt’s alleged misrepresentations in the loan applications, Rabbitt’s businesses received approximately $3.33 million in federal COVID-19 emergency relief funds meant for distressed small businesses.
After Rabbitt’s businesses received the PPP loans through the fraudulent applications, Aguilar created sham payroll companies. Rabbitt then wrote checks from Rabbitt’s businesses to the sham payroll companies, falsely indicating on each check that the payments were for payroll. Rabbitt and Aguilar then transferred funds from the sham payroll companies to other companies that Aguilar created. Aguilar and Rabbitt then used the funds to purchase residential properties in Sherman, Texas, and to pay for personal expenses.
Rabbitt also made false and fraudulent statements and used falsified and fraudulent documents in support of applications for forgiveness of certain of the PPP loans. Based on Rabbitt’s false and fraudulent certifications and documents, the SBA paid more than $2 million dollars to lenders in connection with the fraudulent PPP loans Rabbitt obtained.
Each count of bank fraud carries a maximum penalty of 30 years in prison and a fine of $1 million. Each count of conspiracy to engage in monetary transactions in property derived from specified unlawful activity and engaging in monetary transactions in property derived from specified unlawful activity carries a maximum penalty of 10 years in prison. The conspiracy to engage in monetary transactions in property derived from specified unlawful activity and engaging in monetary transactions in property derived from specified unlawful activity carry a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. The court may impose an alternate fine of not more than twice the amount of the criminally derived property involved in the transaction.
U.S. Attorney Sellinger credited 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; IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney.
The government is represented by Assistant U.S. Attorneys Olajide Araromi and David V. Simunovich of the U.S. Attorney’s Office’s Government Fraud Unit, in Newark.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud 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 defendants are presumed innocent unless and until proven guilty.
Indiana Real Estate Developer and Property Manager Admits Ponzi Scheme to Defraud Investors of Millions of DollarsRead the Press Release
NEWARK, N.J. – A property developer and manager from Indiana today admitted his role in a scheme to defraud real estate investors, U.S. Attorney Philip R. Sellinger announced.
Herbert Whalen, aka “Bert Whalen,” 47, of Indianapolis, Indiana, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to the first count in an indictment, charging him with conspiracy to commit wire fraud
“The defendant preyed upon innocent victims’ desire to improve their own financial position through what they thought were sound investments,” U.S. Attorney Sellinger said. “Working with our partners at the FBI, we were able to discover his illegal activity and ensure that he will now face justice for his crimes. Combatting investment fraud remains one of our highest priorities, and this conviction sends a clear message that such conduct will be punished.”
“Investment fraud schemes take many forms and as long as there are trusting people, looking for what seems like a good way to protect and grow their money, these fraudsters will continue to strike,” Special Agent in Charge George M. Crouch Jr. said. “The FBI is constantly on watch for thieves who paint their schemes as golden opportunities to build on your wealth when, in fact, they are only building theirs using your hard-earned money. The best protection is still prevention: do your homework and check multiple websites like FBI, SEC, and FINRA, to confirm legitimacy; don’t believe the hype – if it sounds too good to be true, it probably is; and view any seemingly great opportunity through the lens of skepticism. Lastly, if you suspect fraud, report it to tips.fbi.gov.”
According to documents filed in this case and statements made in court:
From August 2016 to July 2018, Whalen, who operated Oceanpointe Property Management in Indianapolis, engaged in a scheme to obtain money from real estate investors by misrepresenting and concealing the poor condition of properties managed by Oceanpointe and by creating fake leases for unoccupied Oceanpointe properties. Investors were promised that, after repairs and rehabilitations were completed, and tenants rented the properties, investors would receive copies of the leases and begin to receive rent payments as their return on investment. In reality, many Oceanpointe properties were not repaired and rehabilitated, and were not ready for occupancy. To conceal this fact from victim investors, Whalen and a conspirator directed Oceanpointe employees to draft fake leases, making it appear to investors that Oceanpointe properties were rented, when, in fact, the properties remained vacant. Whalen instructed Oceanpointe employees to place fake tenant names on leases to send to Oceanpointe investors.
When investors attempted to view the properties that they had purchased, Whalen directed Oceanpointe employees to cover the windows to conceal the poor condition of the properties and the fact that the properties remained vacant. Whalen and others commingled tenant rent payments and selected which investors would be paid from the pool of funds in order to silence investors who voiced concerns and evade detection of the fraud. In order to prevent investors from leaving Oceanpointe and exposing the fraudulent conduct, Whalen directed an Oceanpointe employee to create a false identity and falsely claim, on an online real estate message forum, that the Oceanpointe employee was an investor with Oceanpointe and another company, and that Oceanpointe had addressed all of the concerns regarding the investment property. These misrepresentations and others led to millions of dollars in losses to investors, which Whalen used to, among other things, fund his lifestyle.
The charge of conspiracy to commit wire fraud carries a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense. Sentencing is scheduled for July 14, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Carolyn Silane of the Economic Crimes Unit and Ari B. Fontecchio of the Special Prosecutions Division in Newark.
Camden Man Sentenced to 115 Months in Prison for Conspiring to Distribute Heroin and Crack Cocaine in CamdenRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 115 months in prison for conspiring to distribute heroin and crack cocaine in the City of Camden, U.S. Attorney Philip R. Sellinger announced.
Waldemar Garcia, 36, of Camden, New Jersey, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with conspiracy to distribute 100 grams or more of heroin as well as quantities of crack cocaine. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Nineteen 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 like Garcia who worked various shifts selling drugs to customers and collecting drug proceeds.
Seventeen defendants have now pleaded guilty before Judge Bumb to drug conspiracy charges. Two defendants are awaiting trial; the charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Garcia to five years of supervised release.
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 Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of 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 Chief Robert Kempf; and the N.J. State Police, under the direction of Colonel Patrick J. Callahan, with the investigation leading to today’s sentencing. She also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Sara Aliabadi and Patrick C. Askin of the U. S. Attorney’s Office Criminal Division in Camden.
Essex County Man Charged with CarjackingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was charged today with carjacking in Montclair, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Andy Cook, 23, of Newark, is charged by complaint with one count of conspiracy to commit carjacking, one count of carjacking, and one count of conspiracy to use a firearm during a crime of violence. He is scheduled to appear by videoconference today before U.S. Magistrate James B. Clark III.
According to the documents filed in this case and statements made in court:
On Dec. 6, 2021, Cook’s accomplice approached the victim, who was inside her car that was parked on her driveway. The accomplice pointed a firearm at the victim and ordered the victim to leave her belongings and exit the car. Cook then entered the car and drove it away. After the victim called the police, law enforcement officers spotted the vehicle. Cook abandoned the vehicle in Newark and fled on foot before being apprehended.
The count of conspiracy to commit carjacking carries a maximum potential penalty of five years in prison and a $250,000 fine. The count of carjacking carries a maximum potential penalty of 15 years in prison and a $250,000 fine. The count of conspiracy to use a firearm during a crime of violence carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Violent Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Essex County Man Admits Using Credit Cards Stolen from U.S. Mail to Attempt to Defraud Banks of over $300,000Read the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted scheming with at least one U.S. Postal Service (USPS) employee and others to steal credit cards from the mail and use the stolen cards for hundreds of thousands of dollars of retail and online purchases, First Assistant U.S. Attorney Vikas Khanna announced.
Hakir Brown, 27, Newark, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Hakir Brown, Jahad Salter, 25, and Dashaun Brown, 31, engaged USPS employees, including Khadijah Banks Oneal, 31, to steal credit cards from the mail in exchange for compensation. Once they obtained the stolen cards, Hakir Brown and his conspirators fraudulently posed as the accountholders of the stolen credit cards when calling the banks that issued the cards and used personal identifying information belonging to the accountholders to obtain or change information about the stolen credit cards. They then used the stolen credit cards to make purchases at retail stores in New Jersey and elsewhere, including New York and online, resulting in attempted losses of over $300,000.
Several of the USPS employees and individuals who participated in the scheme have been charged by complaint for their roles in the scheme, including, Banks Oneal, who worked at a mail processing plant facility in Kearny, New Jersey; another USPS employee, Ashley Taylor, who worked at a post office in New York; Salter; Adeeb Salih, 29, of East Orange, and Yaseen Salih, 24, of Iselin, New Jersey. Dashaun Brown was indicted by a grand jury on Feb. 9, 2022, and his arraignment is scheduled for March 3, 2022, before Judge McNulty. The charges and allegations against these other individuals are merely accusations, and they are presumed innocent unless and until proven guilty.
The charge of conspiracy to commit bank fraud carries a statutory maximum sentence of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for July 7, 2022.
First Assistant U.S. Attorney Khanna credited postal inspectors of the U.S. Postal Inspection Service under the direction of Acting Inspector of Charge Raimundo Marrero, Newark Division; and special agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, District of New Jersey, under the direction of Marshal Juan Mattos Jr.; the U.S. Secret Service, New York Field Office, under the direction of Special Agent in Charge Patrick J. Freaney; the Treasury Inspector General for Tax Administration, Mid-Atlantic Field Division, under the direction of Special Agent in Charge Andrew S. McKay; the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Jason J. Molina; the Livingston, New Jersey Police Department, under the direction of Chief Gary Marshuetz; the Newark Police Department, under the direction of Department of Public Safety Director Brian O’Hara; the Essex County, New Jersey Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the New Providence, New Jersey, Police Department, under the direction of Chief of Police Theresa A. Gazaway; and the Berkeley Heights, New Jersey, Police Department, under the direction of Chief of Police Jason Massimino, for their assistance.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark.
Camden County Woman Sentenced to Two Years in Prison for Role in Fraudulent Delivery SchemeRead the Press Release
TRENTON, N.J. – A Camden County, New Jersey, woman was sentenced today to 24 months in prison for receiving hundreds of thousands of dollars of consumer electronics before reselling the stolen goods in connection with a delivery fraud scheme, U.S. Attorney Philip R. Sellinger announce.
Yanira Medina-Roman, 37, of West Berlin, New Jersey, previously pleaded guilty by videoconference before U.S. Senior District Judge Anne E. Thompson to an information charging her with one count of conspiracy to commit wire fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From July 2018 through October 2018, Medina-Roman and others carried out a delivery fraud scheme targeting a corporate victim and government agency that resulted in the theft of more than $250,000 of consumer electronics. Medina-Roman and her conspirators used Medina-Roman’s residence – then in Highlands, New Jersey – as the delivery address for the stolen goods. Medina-Roman, under the direction of her conspirators, sold the goods for profit either to a fence of stolen goods, or to third parties through a national classified advertisement website, while retaining for herself a portion of the sale proceeds.
A related cyberattack involved the appropriation without authorization of the identity of an employee of a government agency, which Medina-Roman’s conspirators used by manipulating the employee’s government email address to place orders for consumer electronics and gift cards with a corporate victim located in Maryland. The Maryland corporate victim, believing the emails were authentic and sent by the government employee, with whom the corporate victim had a prior business relationship, was deceived into delivering the consumer electronics to Medina-Roman’s residential address.
In addition to the prison term, Judge Thompson sentenced Medina-Roman to three years of supervised release and ordered restitution of $266,615 and forfeiture of $25,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the U.S. Secret Service, under the direction of Resident Agent In Charge Preston Fairlamb; special agents of the Defense Criminal Investigative Service, under the direction of Special Agent in Charge of the Cyber Field Office Kenneth DeChellis; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; and officers of the Highlands, New Jersey Police Department, under the direction of Chief Robert Burton, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Eric A. Boden of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Pennsylvania Man Arrested on Several Counts of Immigration Document Fraud and Aggravated Identity TheftRead the Press Release
CAMDEN, N.J. – A Pennsylvania man has been arrested for committing immigration documents fraud and aggravated identity theft in New Jersey, U.S. Attorney Philip R. Sellinger announced today.
Luc Fikiri Matthews, 47, of Philadelphia, Pennsylvania was indicted on Feb. 9, 2022, on six counts of submitting false and fraudulent immigration documents and six counts of committing aggravated identity theft. Matthews is scheduled to make his initial appearance later today before U.S. Magistrate Judge Matthew J. Skahill.
According to documents filed in this case and statements made in court:
In 2017 and 2018, Matthews falsely represented himself as an immigration attorney in order to attract business from noncitizens who did not have legal permanent resident status in the United States. Under the Victims of Trafficking and Violence Prevention Act of 2000, the victims of certain qualifying crimes that occur in the United States, including noncitizen victims who might otherwise be subject to immigration removal proceedings, may be eligible to obtain a U Visa and remain in the United States. After agreeing to represent new clients and charging them fees, Matthews prepared and submitted false and fraudulent U Visa application documents to the U.S. Citizenship and Immigration Service.
The documents prepared by Matthews included multiple fraudulent statements, such as falsely representing that his clients had been the victims of certain qualifying crimes, or containing false names, signatures, and other false means of identification, from various visa applicants and government officials located in New Jersey and New York. None of Matthews’ clients ever actually received a U Visa.
Each count of immigration documents fraud is punishable by up to 10 years in prison and a maximum fine of $250,000. Each count of aggravated identity theft is punishable by up to 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. Attorney Sara Aliabadi of the U.S. Attorney’s Office’s Camden office.
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 Sentenced to 42 Months in Prison for Stealing more than $8.2 Million Worth of HIV MedicationRead the Press Release
NEWARK, N.J. – A Bergen County man was sentenced today to 42 months in prison for role in a scheme to steal prescription HIV medication from the Department of Veterans Affairs, U.S. Attorney Philip R. Sellinger announced.
Wagner Checonolasco, aka “Wanny,” 34, of Lyndhurst, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with conspiring to steal 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 August 2017 through Nov. 20, 2019, Checonolasco conspired with Lisa M. Hoffman and others to steal HIV medication belonging to the U.S. Department of Veterans Affairs. Hoffman allegedly stole the medication from the pharmacy of her employer, the Veterans Affairs Medical Center (VAMC) in East Orange, New Jersey, and then sold the stolen medication to Checonolasco for cash. Hoffman used her position as a procurement official at the VAMC to order large quantities of HIV prescription medications so that she could steal the excess medication and then sell it to Checonolasco, who then resold it for a profit. Checonolasco and Hoffman stole approximately $8.2 million worth of HIV medication belonging to the VAMC.
In addition to the prison term, Judge Salas sentenced Checolonasco to three years of supervised release and ordered restitution of $8.2 million.
Hoffman, 48, of Orange, New Jersey, previously pleaded guilty to her role in the scheme and is scheduled to be sentenced on March 9, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and 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, 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.
Somerset County Attorney Arrested for Visa FraudRead the Press Release
TRENTON, N.J. – An attorney operating a law firm in Somerset County, New Jersey, was arrested today for allegedly making false statements in visa applications, U.S. Attorney Philip R. Sellinger announced.
Steven G. Thomas, 52, of New Hope, Pennsylvania, is charged by complaint with preparing and filing false visa applications on behalf of clients. He is scheduled to appear later today before U.S. Magistrate Judge Tonianne J. Bongiovanni.
According to documents filed in this case and statements made in court:
Thomas, who operates a law firm in Montgomery Township, New Jersey, encouraged clients to apply for asylum under fraudulent pretenses. He advised clients regarding the manner in which they were most likely to obtain asylum, knowing that these clients did not legitimately qualify for asylum. Thomas also prepared, or caused to be prepared on behalf of those clients, fraudulent applications and affidavits, which were submitted to the U.S. Citizenship and Immigration Services.
A confidential informant working for law enforcement met with Thomas in January of 2020. Thomas filed on that person’s behalf a visa application containing numerous false statements in April 2020.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Jason J. Molina; and the U.S. Citizenship and Immigration Service Fraud Detection and National Security Unit in the Newark Asylum office, under the direction of Newark Asylum Director Susan Raufer, with the investigation leading to the arrest.
The government is represented by Senior Civil Rights Counsel Joseph Gribko of the 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.
Queens Man Admits Orchestrating $653 Million Money Laundering Conspiracy, Operating Unlicensed Money Transmitting Business, and Bribing Bank EmployeesRead the Press Release
NEWARK, N.J. – A Queens, New York, man today admitted his role in coordinating a $653 million money laundering conspiracy, operating an unlicensed money transmitting business, and bribing bank employees in connection with financial transactions, U.S. Attorney Philip R. Sellinger announced.
Da Ying Sze, 43, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of conspiring to commit money laundering, one count of operating and aiding and abetting the operation of an unlicensed money transmitting business, and one count of corruptly giving anything of value to an employee of a financial institution in connection with financial transactions.
“The defendant in this case laundered a staggering amount of money,” U.S. Attorney Sellinger said. “Neither money laundering, the narcotics distribution that funded it, nor the bribery of a financial institution that facilitated the money laundering will be tolerated. A broad cross section of federal and local enforcement partners dismantled this sophisticated money laundering operation.”
“Today's announcement demonstrates that criminals who launder illegitimate profits can't evade detection from IRS Criminal Investigation and our law enforcement partners,” Michael Montanez, Special Agent in Charge IRS Criminal Investigation Newark Field Office, said. “This guilty plea is a significant step toward holding the defendant accountable for his role in conspiring to hide hundreds of millions of dollars gained from narcotics distribution.”
“The money laundering discovered during this investigation allows drug traffickers to expand their operations throughout the U.S. and around the world,” Susan A. Gibson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “The actions of DA Ying Sze contribute to high number of overdose fatalities across the country. The men and women of DEA, along with our law enforcement partners, work tirelessly to disrupt the flow of illicit narcotics proceeds to those drug organizations looking to flood our streets with deadly poison.”
According to documents filed in this case and statements made in court:
From 2016 through 2021, Sze laundered more than $653.3 million in cash, consisting of narcotics and other illicit proceeds, utilizing a variety of financial institutions and methods. Sze routinely accepted illicit proceeds in cash and deposited the cash into financial institutions in New York, New Jersey, Pennsylvania, and elsewhere, utilizing bank accounts in the names of shell companies and conspirators. Sze then further obfuscated the source of the illegal cash by purchasing official bank checks, writing personal and business checks, and making international and domestic wires to transfer the illegal cash to thousands of individuals and entities in the United States, China, Hong Kong, and elsewhere. For his services, Sze received a fee of approximately 1 to 2 percent of the cash laundered.
From 2020 through 2021, Sze routinely provided gift cards and other things of value to employees of at least one financial institution in connection with financial transactions, seeking to corruptly influence financial institution employees to provide Sze with special benefits and to avoid suspicion and reporting of his unusual financial transactions. In 2020 and 2021, Sze provided at least $57,000 in gifts to financial institution employees in connection with financial transactions, and made millions of dollars of profits in connection with such financial transactions.
The charge of money laundering conspiracy carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. The charge of operating and aiding and abetting the operation of an illegal money transmitting business carries a maximum penalty of five years in prison and a fine of $250,000, or twice the amount involved in the offense, whichever is greatest. The charge of bank bribery carries a maximum penalty of 30 years in prison and a fine of $1 million, or three times the value of the thing given, whichever is greatest. Sentencing is scheduled for June 28, 2022.
U.S. Attorney Sellinger credited special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; 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; the Morristown, New Jersey, Police Department, under the direction of Police Chief Darnell Richardson; the Federal Deposit Insurance Corporation – Office of Inspector General, New York Division, under the direction of Special Agent in Charge Patricia Tarasca; and the New York City Police Department, under the direction of Commissioner Keechant L. Sewell, with the investigation leading to today’s guilty plea.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Mark J. Pesce of the OCDETF/Narcotics Unit in Newark, Assistant U.S. Attorney Jonathan M. Peck of the Asset Recovery and Money Laundering Unit in Newark, and Assistant U.S. Attorney Angelica Sinopole of the Organized Crime & Gangs Unit in Newark.
Bronx Man Admits Identity Fraud and Laundering over $12 Million in Illegal Drug ProceedsRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted his role in a large international money laundering conspiracy and to using a stolen identity in furtherance of the scheme, U.S. Attorney Philip R. Sellinger announced.
Roberto Mendoza-Arias, 51, pleaded guilty before U.S. District Judge Brian R. Martinotti to a criminal information charging him with one count of conspiracy to commit money laundering and one count of identity fraud.
According to documents filed in this case and statements made in court:
From May 2019 through March 2020, Mendoza and others laundered over $12.3 million from illegal activity. Mendoza accepted large amounts of cash drug proceeds from conspirators and laundered it by purchasing over 650 cashier’s checks at local bank branches in New Jersey and New York. The checks were made payable to individuals and companies specified by the leaders of the money laundering organization.
In July 2018, Mendoza obtained a fraudulent Pennsylvania driver’s license in someone else’s name. He used the fake ID to open multiple bank accounts and incorporate a business. Mendoza then used the bank accounts and the business to further the money laundering scheme.
The charge of money laundering conspiracy carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. The charge of identify fraud carries a maximum prison sentence of five years and a $250,000 fine. Sentencing is scheduled for June 24, 2022.
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, the New England Division, under the direction of Special Agent in Charge Brian D. Boyle, and the Santo Domingo Country Office, under the supervision of Special Agent in Charge Renita D. Foster; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; the Morristown, New Jersey, police department, under the direction of Acting Police Chief Darnell Richardson; the New York City Office of the Special Narcotics Prosecutor, under the direction of Special Narcotics Prosecutor Bridget G. Brennan; and the Direccion Nacional de Control de Drogas (the Dominican Republic National Drug Directorate) with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Asset Recovery and Money Laundering Unit in Newark.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
New Jersey Woman Admits Operating Unlicensed Money Transmitting BusinessRead the Press Release
NEWARK, N.J. – A New Jersey woman today admitted transmitting the proceeds of a fraudulent scheme in which elderly victims were falsely told that they had won large sums of money in a lottery sweepstakes, U.S. Attorney Philip R. Sellinger announced.
Shanile Lyle, 28, of Orange, New Jersey pleaded guilty by videoconference before U.S. District Judge Julian X. Neals to an information charging her with operating an unlicensed money transmitting business.
According to documents filed in this case and statements made in court:
In 2018, Lyle received checks from victims of a lottery scheme in which the victims were told that they had won large sums of money in a lottery sweepstakes and had to pre-pay taxes on their winnings. Lyle then deposited that money into a bank account that she controlled. Lyle kept a fee for herself and then wired the remainder of the funds to other individuals, including individuals overseas.
The charge of operating an unlicensed money transmitting business carries a maximum penalty of five years in prison and a maximum fine of $250,000. Lyle’s sentencing is scheduled for June 28, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Cybercrime Unit in Newark.
Former Fort Dix Correctional Officer Sentenced to 26 Months in Prison for Accepting Bribes in Exchange for Delivering Contraband to InmatesRead the Press Release
NEWARK, N.J. – A former federal correctional officer was sentenced today to 26 months in prison for accepting approximately $50,000 in cash bribes in exchange for delivering contraband to federal inmates, U.S. Attorney Philip R. Sellinger announced.
Paul Anton Wright, 36, of Cinnaminson, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count 1 of a five-count indictment, charging him with accepting cash bribes to take official action and commit acts in violation of his duties as a public official, specifically as an employee of the Federal Bureau of Prisons. Judge Salas imposed the sentence today.
According to documents filed in the case and statements made in court:
From 2014 through April 2018, Wright was employed as a correctional officer at Federal Correctional Institution Fort Dix (FCI Fort Dix), a Bureau of Prisons facility located in Burlington County. In 2015, while at FCI Fort Dix, Wright agreed to accept cash bribes in exchange for smuggling contraband, including tobacco, K2 (synthetic marijuana) and suboxone (a narcotic used to treat opioid addiction), to inmates.
Wright received cash bribes from two individuals outside of FCI Fort Dix. From February to September 2015, Wright traveled to Philadelphia on multiple occasions to meet with a relative of an FCI Fort Dix inmate and subsequently delivered contraband, including K2, to the inmate. From October to December of 2015, Wright traveled to New York City on multiple occasions to pick up contraband from a different inmate’s associate from whom he also received bribes in return for smuggling the contraband into FCI Fort Dix.
In addition to the prison term, Judge Salas sentenced Wright to three years of supervised release. Wright previously consented to a $50,000 money judgment against, forfeiting monies he accepted as bribes.
U.S. Attorney Sellinger credited special agents with the U.S. Department of Justice, Office of Inspector General, Washington, D.C., Field Office, under the direction of Special Agent in Charge Russell W. Cunningham, with the investigation leading to today’s sentencing. He also thanked special agents of the FBI for their assistance in the prosecution.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Tazneen Shahabuddin of the U.S. Attorney’s Special Prosecutions Division in Newark.
Burlington County Couple Charged with Forced Labor and Other CrimesRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, couple was charged today with forced labor and other crimes involving two undocumented individuals, U.S. Attorney Philip R. Sellinger and Civil Rights Division Assistant Attorney General Kristen Clarke announced.
Bolaji Bolarinwa, 47, and Isiaka Bolarinwa, 65, both of Moorestown, New Jersey, are both charged in an eight-count indictment with two counts of forced labor. Bolaji Bolarinwa is also charged with two counts of bringing in and harboring certain undocumented individuals and two counts of unlawful conduct with respect to documents in furtherance of forced labor. Both defendants are scheduled to appear today by videoconference before U.S. Magistrate Judge Ann Marie Donio.
According to the indictment:
From 2015 to 2016, Bolaji Bolarinwa unlawfully obtained labor and services from one victim by means of serious harm or threats of serious harm, and from another victim by means of force or threats of force. She abused and threatened abuse of legal process against both victims. Bolarinwa’s spouse, Isiaka Bolarinwa, participated in the scheme and financially benefitted from the victims’ forced labor.
Bolaji Bolarinwa knew that both victims had entered the United States illegally and harbored them from detection for her own financial gain. She confiscated and possessed the passports and visas of both victims.
Both defendants face a maximum penalty on each forced labor count of 20 years in prison. Bolaji Bolarinwa faces a maximum penalty on each undocumented individual harboring count of 10 years in prison and a maximum penalty on each unlawful document conduct count of five years in prison. They also each face a fine on each count of up to $250,000 or twice the gross gain or gross loss from the offense, whichever is greatest.
U.S. Attorney Sellinger and Assistant Attorney General Clarke credited special agents of the FBI, Newark Field Office, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden and Trial Attorneys Elizabeth Hutson and Vasantha Rao of the Department of Justice’s Civil Rights Division.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Hunterdon County Man Sentenced to Six Years in Prison for Receiving and Possessing Child PornographyRead the Press Release
TRENTON, N.J. – A Hunterdon County, New Jersey, man was sentenced today to 72 months in prison for receiving and possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Daniel Murphy, 48, of Lebanon, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of receipt of child pornography and one count of possession of child pornography. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From Jan. 1, 2017, to Nov. 20, 2019, Murphy downloaded and possessed more than 600 images depicting the sexual abuse of children from a peer-to-peer network on the internet.
In addition to the prison term, Judge Sheridan sentenced Murphy to five years of supervised release and ordered him to pay $19,000 in restitution.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Violent Crimes Unit in Newark.
California Man Sentenced to 30 Years in Prison for Large-Scale Fentanyl Analogue Pill Mill OperationRead the Press Release
TRENTON, N.J. – A California man was sentenced today to 360 months in prison for conspiracy and manufacturing, distributing, and possessing with intent to manufacture and distribute a fentanyl analogue, U.S. Attorney Philip R. Sellinger announced.
Andrew Tablack, 30, of Beverly Hills, California, was convicted in July 2021 of one count of manufacturing, distributing, and possessing with intent to manufacture and distribute pills containing cyclopropyl fentanyl, an analogue of fentanyl intended for human consumption, and one count of conspiracy to do the same, following a jury trial before U.S. District Judge Michael A. Shipp in Trenton federal court. Judge Shipp imposed the sentence today.
According to documents filed in this case and the evidence at trial:
From at least March 2017 through December 2017, Tablack ran a pill-making operation that distributed millions of fentanyl analogue pills throughout the United States, including New Jersey. These pills contained a powerful synthetic opioid with significant abuse potential. Tablack manufactured these illegal pills in clandestine labs in and near Los Angeles and sold them anonymously on the dark web, the Internet’s black market, using the moniker “XanaxKing2.” Tablack shipped approximately 400,000 of his illegal pills per month and made millions of dollars from his illegal operation in digital currency that is commonly used in the black market due to its relative anonymity.
In addition to the prison term, Judge Shipp sentenced Tablack to three years of supervised release and ordered the forfeiture of various cryptocurrency holdings and electronic devices belonging to Tablack, which the trial jury had found were subject to forfeiture.
U.S. Attorney Sellinger credited special agents with the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; the U.S. Department of Homeland Security, Homeland Security Investigation (HSI), Newark Division, under the direction of under the direction of Special Agent in Charge Jason J. Molina; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; and special agents of the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to today’s sentencing.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Tazneen Shahabuddin of the Special Prosecutions Division and Sarah Devlin, Chief of the Asset Recovery and Money Laundering Unit.
Georgia Man Admits Making Interstate Threats Against Executive Officer of New Jersey CompanyRead the Press Release
NEWARK, N.J. – A Georgia man today admitted making interstate threats to an executive officer of a New Jersey based company, U.S. Attorney Philip R. Sellinger announced.
Alan Wallace, 59, of Cumming, Georgia, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of transmitting interstate threats.
According to the documents filed in this case and statements made in court:
From January 2021 to March 2021, Wallace, a former employee of Company-1, sent threatening email communications to Victim-1, an executive officer of Company-1, a publicly traded company with headquarters in New Jersey. Victim-1’s Company-1 email account received the emails every few days beginning on Jan. 11, 2021, and continuing through early March 2021, with more sporadic emails arriving thereafter. The emails were sent to Victim-1 from an anonymous email service.
The emails threatened violence to Victim-1 and to Victim-1’s family if Company-1’s stock did not exceed a certain share value within 30 days. An email received on Feb. 5, 2021, with the subject line “Blood Bath,” read: “[Victim-1], it seems you don't care about your family. This will be an absolute blood bath if stock isn't over $200 in 2 weeks. Your hurt [sic] so many, and now it is your turn to experience it.”
The interstate threats charge carries a maximum penalty of five years in prison a $250,000 fine. Sentencing is scheduled for June 23, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Cybercrime Unit in Newark.
Former Passaic County Man Admits Laundering Drug ProceedsRead the Press Release
NEWARK, N.J. – A former Passaic County, New Jersey, man today admitted his role in a large international money laundering conspiracy, U.S. Attorney Philip R. Sellinger announced.
Gilberto Martinez, 33, formerly of Clifton, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti to a criminal information charging him with one count of conspiracy to commit money laundering.
According to documents filed in this case and statements made in court:
In 2016 and 2017, Martinez laundered over $1 million in cash drug proceeds on behalf of a large-scale money laundering organization by purchasing, or directing others to purchase, cashier’s checks with the illegal drug proceeds. The checks were made payable to individuals and companies specified by the leaders of the money laundering organization. By converting the drug proceeds to cashier’s checks, Martinez and his conspirators tried to hide the source of the illegal cash and avoid scrutiny by law enforcement and banks.
The charge of money laundering conspiracy carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. Sentencing is scheduled for June 24, 2022.
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 Santo Domingo Country Office, under the supervision of Special Agent in Charge Renita D. Foster; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; the Morristown, New Jersey, police department, under the direction of Acting Police Chief Darnell Richardson; the New Jersey State Police, under the direction of Superintendent Colonel Patrick J. Callahan; the New Jersey Office of the Attorney General, led by Acting Attorney General Matthew J. Platkin; and the Direccion Nacional de Control de Drogas (the Dominican Republic National Drug Directorate) with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Asset Recovery and Money Laundering Unit in Newark.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Florida Man Admits Role in $35 Million Pharmacy Compounded Medication SchemeRead the Press Release
NEWARK, N.J. – A Palm City, Florida, man today admitted participating in a compounded medication kickback scheme that he and others ran out of a pharmacy in Clifton, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Anderson Triggs, 42, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to violate the Anti-Kickback Statute.
According to documents filed in this case and statements made in court:
From 2014 through 2016, Triggs and his conspirators used Main Avenue Pharmacy, a mail-order pharmacy with a storefront in Clifton, New Jersey, to run a kickback scheme involving compounded drugs like scar creams, pain creams, migraine mediation, and vitamins. Compounded drugs are prescribed by a physician when an FDA-approved drug did not meet the health needs of a particular patient, such as when a dye or preservative triggers an allergic reaction, or when a patient can’t swallow an FDA-approved pill.
Triggs started as a consultant to Main Avenue Pharmacy and later became a board member of its corporate parent. The scheme revolved around identifying compounded drugs that would yield exorbitant reimbursements from health insurers, including both federal and commercial payers.
The physicians who signed prescriptions for compounded medications that were filled at Main Avenue frequently had never even spoken to the patients or examined them. Once the prescriptions were signed by a doctor, they would be returned to the marketing company, which would transmit the prescription to Main Avenue Pharmacy, which would fill them and submit claims to health care benefit programs for reimbursement
On compounded medications alone, Main Avenue received over $34 million in reimbursements from health care benefit programs, approximately $8 million of which was paid by federal payers. Triggs earned over $900,000 through the course of the scheme.
The charge of conspiracy to violate the Anti-Kickback Statute carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for June 21, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Department of Defense Office of Inspector General, Defense Criminal Investigative Service under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to the charges.
The government is represented by Senior Trial Counsel Jason S. Gould of the Health Care Fraud Unit of the U.S. Attorney’s Office in Newark.
Essex County Man Admits Distributing Child PornographyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey man today admitted using a web-based application to distribute multiple images and videos of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Mauricio Calderon, 51, of Belleville, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of distribution of child pornography.
According to documents filed in this case and statements made in court:
Between March 2020 and April 10, 2020, Calderon used an encrypted, internet-based application to distribute multiple graphic videos depicting the sexual assault of minors. During the course of the investigation, Calderon publicly posted multiple videos depicting the sexual abuse of children, some of which featured infants and toddlers, in a chatroom and also sent links that redirected to web-pages containing child pornography. Law enforcement also discovered numerous videos and images of child sexual abuse on Calderon’s electronic devices when he was arrested at his home in September 2020.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and fine of $250,000. Sentencing is scheduled for June 23, 2022.
U.S. Attorney Sellinger credited special agents with Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Essex County Man Sentenced to Four Years in Prison for Conspiring to Steal Mail and Commit Bank FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 48 months in prison for his role in a conspiracy to steal check books and credit cards from the mail, deposit fraudulent checks, including pandemic relief checks, and use stolen credit cards without authorization, U.S. Attorney Philip R. Sellinger announced.
Jeffrey Bennett, 27, of Irvington, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud. 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, Bennett conspired to fraudulently obtain money from victim financial institutions by depositing counterfeit checks and checks stolen from the mail into accounts at these financial institutions and withdrawing funds before the financial institutions identified the fraudulent checks and blocked further withdrawals. Bennett and his conspirators arranged for U.S. Postal Service (USPS) employees to steal credit cards and blank check books from the mail in exchange for cash payments. USPS employees provided the checks to Bennett and his conspirators, who 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, who had given Bennett and his conspirators access to their accounts, also in exchange for cash. Bennett and his conspirators obtained and attempted to obtain approximately $366,000 from victim financial institutions.
In addition to the prison term, Judge Wigenton sentenced Bennett 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, under the direction of Acting Inspector in Charge Raimundo Marrero; 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 Special Agent in Charge Michael Montanez; 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 guilty plea. 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.
Union County Man Sentenced to 10 Years in Prison for Drug Distribution ChargesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey men was sentenced today to 120 months in prison for drug distribution charges in connection conspiring to distribute cocaine base and distributing fentanyl and cocaine base, U.S. Attorney Philip R. Sellinger announced.
Tyrell Wilson, aka “Hell Rell,” 36, of Rahway, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to distribute 280 grams or more of cocaine base and one count of possession with intent to distribute 280 grams or more of cocaine base. Judge Arleo imposed the sentence today by videoconference.
In September 2019, Wilson and Marvin Lagrier, aka “Black Jesus,” 39, of Newark, were were charged by complaint with conspiracy to distribute heroin and cocaine and possession with the intent to distribute heroin and cocaine base. Lagrier was indicted on these charges in October 2019, pleaded guilty in August 2021, and is scheduled to be sentenced on April 5, 2022.
According to documents filed in this case and statements made in court:
On Sept. 19, 2019, Wilson and Lagrier were arrested for conspiring to sell at least 280 grams of cocaine base.
In addition to the prison term, Judge Arleo sentenced Wilson to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing.
This case is part of the Violent Crime Initiative (VCI), which 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 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, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, the Orange Police Department and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Tracey Agnew and Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office Organized Crime/Gang Unit in Newark.
Former Inmate Sentenced to 19 Months in Prison for Role in Scheme to use Drones to Smuggle Contraband into Fort Dix Federal PrisonRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 19 months in prison for his role in a scheme to use drones to smuggle contraband, including cell phones and tobacco, into the federal correctional facility at Fort Dix, U.S. Attorney Philip R. Sellinger announced.
Johansel Moronta, 29, of Linden, New Jersey, a former inmate at Fort Dix, previously pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of possessing and obtaining contraband while in prison. Moronta, who had been released from custody several months after the offense occurred and was on federal supervised release thereafter, also pleaded guilty to violating the terms of his supervised release.
Another former federal inmate, Jason Arteaga-Loayza, previously pleaded guilty to his participation in the scheme as well as to distributing narcotics and was sentenced in September 2021 to 43 months in prison by U.S. District Judge Susan D. Wigenton. Two other men, Adrian Goolcharran, aka “Adrian Ahoda,” aka “Adrian Ajoda,” aka “Adrian Ajodha,” and Nicolo Denichilo, also have been charged with participating in the scheme to use drones to smuggle contraband into Fort Dix prison.
According to the documents filed in this case and statements made in court:
Moronta, an inmate at Fort Dix from April 2018 to March 2019, participated in multiple drone deliveries of contraband into Fort Dix while incarcerated. Between October 2018 and June 2019, Arteaga-Loayza arranged for Goolcharran, with Denichilo’s assistance, to fly drones over Fort Dix and drop packages of contraband – including cell phones, cell phone accessories, tobacco, weight loss supplements, eyeglasses – into the prison, where Moronta took possession of the contraband and helped sell it to inmates for a profit.
Moronta admitted in court that, on Oct. 30, 2018, he received a bag dropped by a drone onto the roof of a housing unit at FCI Fort Dix which contained contraband tobacco, cellphone chargers and charging cables. Prison officials recovered that bag which contained 127 bags of Bugler tobacco, 10 cell phone chargers and 10 USB charging cables. Moronta also admitted to possessing a contraband cell phone on that date, which he had used to coordinate the drone drop.
In addition to the prison term, Judge Arleo sentenced Moronta to one year of supervised release.
U.S. Attorney Sellinger credited agents of the U.S. Department of Justice Office of the Inspector General, Cyber Investigations Office, under the direction of Special Agent in Charge Keith A. Bonanno; the U.S. Air Force Office of Special Investigations, Detachment 307, under the direction of Superintendent Nicholas Kaplan; and the U.S. Department of Transportation Office of Inspector General, Northeast Region, under the direction of Acting Special Agent in Charge Joseph Harris, with the investigation leading to today’s sentencing.
He also thanked Federal Bureau of Prisons personnel at Fort Dix; special agents of the FBI; special agents of the U.S. Attorney’s Office; and officers with the Pemberton Borough Police Department; the Pemberton Township Police Department; and Chesterfield Township Police Department, for their assistance.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
The charges and allegations contained in the criminal complaints issued against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Essex County Man and Union County Man Charged with Scheme to Steal Checks and Defraud BanksRead the Press Release
NEWARK, N.J. – Two people were arrested today for their roles in a scheme to steal and alter checks from the mail by using stolen U.S. Postal Service keys that access mail receptacles and to fraudulently obtain funds from banks by depositing the stolen and altered checks, U.S. Attorney Philip R. Sellinger announced.
Baba Diakite, 20, of East Orange, New Jersey, and Nasir Johnson, 22, of Hillside, New Jersey, are each charged by complaint with bank fraud conspiracy, conspiracy to commit mail theft and possess stolen mail, and the theft and possession of U.S. Postal Service keys. Both defendants are scheduled to appear 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 at least January 2020 to October 2021, Diakite, Johnson, and others conspired to steal checks from the mail in Essex, Hudson, Middlesex, Somerset, and Union counties. They sold the checks to third parties or deposited them, sometimes in altered or duplicate form, into the bank accounts of complicit accountholders who had provided access to their bank accounts for the scheme. Diakite obtained stolen official USPS keys, which he used to access mail and steal checks directly from USPS receptacles. Johnson also was in possession of at least one of those keys.
The bank fraud conspiracy is punishable by a maximum penalty of 30 years in prison. The conspiracy to commit mail theft and possess stolen mail is punishable by a maximum penalty of five years in prison, and the theft and possession of stolen USPS keys is punishable by a maximum penalty of 10 years in prison. The bank fraud conspiracy also carries a fine of up to $1 million. All other charges are punishable by a maximum potential fine of up to $250,000 or twice the pecuniary gain or loss, whichever is greatest.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents with the U.S. Postal Service - Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and special agents with the Office of the Treasury Inspector General for Tax Administration, under the direction of under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s arrests. He also thanked the Hillside, Livingston, Millburn, Port Authority of New York and New Jersey, Roselle Park, South Plainfield, Warren Township, and Watchung police departments for their assistance.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Bronx, New York, Woman Sentenced to 21 Months in Prison for Fraudulently Obtaining over $200,000 Worth of iPhonesRead the Press Release
NEWARK, N.J. – A Bronx woman was sentenced today to 21 months in prison for fraudulently obtaining over $200,000 worth of Apple iPhones, U.S. Attorney Philip R. Sellinger announced.
Rosanna Lucrecia Cruel Blanco, 39, of Bronx, New York, previously pleaded guilty by videoconference before U.S. District Judge Clair C. Cecchi to an information charging her with one count of conspiracy to commit mail fraud. Judge Cecchi imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
From December 2017 to January 2020, Blanco and her conspirators devised a scheme to fraudulently obtain replacement cellular phones from an insurance company – Company 1 – by assuming the identities of wireless customers and filing false claims under Company 1’s handset insurance program. The handsets were predominantly Apple iPhones with a value of approximately $700 to $1,000 per handset.
Blanco and her conspirators contacted Company 1, posed as legitimate customers, and submitted false claims to Company 1 for damage, theft, or loss on hundreds of handsets owned by the customers. Blanco and her conspirators provided Company 1 with false identification – typically a fake New York or New Jersey driver’s license falsified to reflect the name of the legitimate customer. They also provided Company 1 with new shipping contact names and addresses that were different from the actual customer names and addresses. The new shipping addresses included locations in the Bronx, Yonkers, White Plains, Manhattan, and various locations in New Jersey.
Based on the false claims and the fake identifications, Company 1 shipped the replacement cellular telephones via UPS or FedEx to the new contact names and addresses provided by Blanco and her conspirators. The shipped Apple iPhones were then picked up by Blanco and her conspirators. More than 100 replacement cellular telephones were shipped to Blanco and her conspirators and total losses exceeded $200,000.
In addition to the prison term, Judge Cecchi sentenced Blanco to three years of supervised release and ordered restitution and forfeiture of $246,025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Passaic County Man Charged with Attempted Robbery of Two U.S. Postal Service EmployeesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was indicted today for assaulting and attempting to rob two U.S. Postal Service (USPS) mail carriers in January 2021, U.S. Attorney Philip R. Sellinger announced.
Yeniser Cruz Perez, 20, of Paterson, New Jersey, was charged by indictment with two counts of assault and attempted robbery of persons having control over mail matter and government property. He will be arraigned at a date to be determined.
According to documents filed in this case and statements made in court:
On Jan. 20, 2021, in Wyckoff, New Jersey, Cruz Perez approached Victim 1, a USPS mail carrier and demanded that the victim give him a USPS key that is used to access mail collection boxes and apartment panels. Cruz Perez displayed what appeared to be a firearm. Cruz Perez fled after learning that Victim 1 did not possess such a key.
Later that day, in Woodland Park, New Jersey, Cruz Perez approached Victim 2, another USPS mail carrier, and again demanded a USPS key. Cruz Perez again pulled what appeared to be a firearm from his clothing. Cruz Perez again fled after learning that Victim 2 did not have the key.
Each count of assault and attempted robbery charged in the indictment carries a maximum penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; the Wyckoff Police Department, under the direction of Chief David V. Murphy; and the Woodland Park Police Department, under the direction of Chief John Uzzalino with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Katherine Calle of the Health Care Fraud Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Passaic County Doctor Charged with 34 Counts of Unlawful Distribution of Controlled SubstancesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, doctor was charged today with multiple counts of illegally prescribing medicines to his patients, U.S. Attorney Philip R. Sellinger announced.
Evangelos Megariotis, 68, of Clifton, New Jersey, an orthopedic surgeon who owned and operated Clifton Orthopedic Associates, is charged by indictment with 34 counts of illegally prescribing controlled substances to his patients.
According to the documents filed in this case:
From November 2016 to February 2018, Megariotis prescribed controlled substances, including oxycodone, alprazolam (or “Xanax”), cough syrup with codeine, and stimulants, outside the usual course of professional practice and without a legitimate medical purpose.
The counts charging illegal prescribing of Schedule II opioids and stimulants are punishable by a maximum of 20 years in prison and a $1 million fine. The counts charging illegal prescribing of alprazolam, a Schedule IV controlled substance, are punishable by a maximum of five years in prison and a $250,000 fine. The counts charging illegal prescribing of cough syrup with codeine, a Schedule V controlled substance, are punishable by a maximum of one year in prison and a $100,000 fine.
U.S. Attorney Philip R. Sellinger credited special agents, diversion investigators and task force officers from the Drug Enforcement Administration’s New Jersey Division under the direction of Special Agent in Charge Susan A. Gibson.
The government is represented by Assistant U.S. Attorney Emma Spiro of the Opioid Abuse Prevention & Enforcement Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Registered Sex Offender Sentenced to 250 Months in Prison for Distribution of Child Pornography and Online EnticementRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 250 months in prison for distributing multiple images and videos depicting child sexual abuse and soliciting two children to engage in sexually explicit conduct online, U.S. Attorney Philip R. Sellinger announced.
Christopher Gardiner, 39, of Cranford, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an indictment charging him with one count of distributing child pornography and two counts of online enticement of a minor to engage in criminal sexual conduct. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From March 2018 to June 2018, Gardiner engaged an undercover agent in an ongoing sexually graphic conversation on a web-based social media application. During the course of the conversation, Gardiner publicly posted multiple videos depicting the sexual abuse of children in a chatroom and sent similar videos to the undercover agent directly. Law enforcement subsequently discovered numerous images and videos of child sexual abuse on Gardiner’s electronic devices when he was arrested at his home in August 2018. Gardiner was previously convicted of endangering the welfare of a child/distribution of child pornography in Union County in 2007.
In addition to the prison term, Judge McNulty also sentenced Gardiner to five years of supervised release. Gardiner must also register as a sex offender.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s sentencing. He also thanked the Cranford Police Department, under the direction of Chief Ryan Greco, for its assistance.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Criminal Division in Newark.
Florida Man Admits Assaulting Two Military Police Officers with His CarRead the Press Release
CAMDEN, N.J. – A Florida man today admitted assaulting two U.S. Air Force military police officers with his car, U.S. Attorney Philip R. Sellinger announced.
Hal Wander, 25, of Port Charlotte, Florida, pleaded guilty by teleconference before U.S. District Judge Joseph H. Rodriguez to an information charging him with assault on two federal officers using a deadly and dangerous weapon, namely, a motor vehicle.
According to documents filed in this case and statements made in court:
On Nov. 16, 2020, Wander drove his vehicle at a high rate of speed into Joint Base McGuire-Dix-Lakehurst, a U.S. military base located in Burlington County, New Jersey, without stopping at the designated check point. Two marked military police vehicles, driven by Victims 1 and 2, gave chase. Victim 1 positioned his car in front of Wander in an attempt to stop Wander, and Wander intentionally drove his car into Victim 1’s military police vehicle. Victim 2 positioned his military police vehicle behind Wander’s vehicle, and Wander intentionally drove his car backwards into Victim 2’s vehicle. While Wander’s car was stopped, Victim 1 reached into Wander’s vehicle and attempted to turn off the ignition. Wander then drove forward, dragging Victim 1 several feet before Victim 1 was able to disengage from Wander’s vehicle. Wander continued to drive his vehicle dangerously until he hit a utility pole, came to a stop, and was arrested.
The assault charge to which Wander pleaded guilty carries a maximum penalty of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for June 15, 2022.
U.S. Attorney Sellinger credited special agents of the U.S. Air Force Office of Special Investigations, Detachment 307, under the direction of Special Agent in Charge Nicholas J. Kaplan, with the investigation that led to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Camden.
California Man Admits Laundering Money from Fraudulent SBA Loans and Business Email Compromise Fraud Scheme Targeting Law FirmRead the Press Release
NEWARK, N.J. – A California man pleaded guilty today to laundering money from fraudulently obtained Small Business Association (SBA) loans and from a law firm that was the victim of a business email compromise, U.S. Attorney Philip R. Sellinger announced.
Eric Bullard, 59, of California, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of money laundering conspiracy. Bullard is currently detained and, at the time of the offense, was on federal supervised release from the U.S. District Court for the Central District of California stemming from armed bank robbery charges.
According to documents filed in this case and statements made in court:
In June 2020, Victim 1, a resident of Bergen County, New Jersey, communicated via email with a New Jersey law firm, which was advising Victim 1 on a real estate transaction. During the course of this email correspondence, an unknown person compromised an email account used by the New Jersey law firm. Victim 1 was duped into wiring approximately $560,000 to a business bank account controlled by Bullard. Several hundred thousand dollars were then transferred from Bullard’s account into bank accounts controlled by other individuals.
Bullard and others also conspired to launder the proceeds of fraudulently obtained COVID-19 disaster relief loans guaranteed by the SBA. In July 2020, money obtained through these loans was deposited into Bullard’s bank accounts.
The money laundering conspiracy charge has a maximum term of 20 years, and a maximum fine of $500,000 or twice the value of the funds involved in the transfer, whichever is greater.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the Cybercrime Unit in Newark.
Camden Man Sentenced to 92 Months in Prison for Robbing BanksRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 92 months in prison for his role in a bank robbery spree in July 2018, U.S. Attorney Philip R. Sellinger announced.
Laque Hunter, 37, of Camden, previously pleaded guilty to Count Three of an indictment charging him with bank robbery. Judge Renée Marie Bumb imposed the sentence by videoconference today.
According to documents filed in this case and the evidence at trial:
On July 24, 2018, Anthony L. Livingston, 50, of Camden, recruited Hunter to rob the Collingswood Ocean First bank on his behalf, and drove Hunter to the bank. Hunter robbed the bank with a demand note. Livingston served as the getaway driver, and the two split the proceeds. Livingston was convicted at trial in May 2019 of two counts of bank robbery and was sentenced in November 2021 to 200 months in prison.
In addition to the prison term, Judge Bumb sentenced Hunter to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI-Cherry Hill, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Grace C. MacAulay; the Camden County Sheriff’s Office, under the direction of Sheriff Gilbert “Whip” Wilson; the Collingswood Police Department, under the direction of Chief Kevin J. Carey; the Gloucester Township Police Department, under the direction of Chief W. Harry Earle; and the Stratford Police Department, under the direction of Chief Ronald M. Morello, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Kristen M. Harberg and Patrick C. Askin of the Camden Office.
Atlantic County Company and its Owner Admit Taking Improper Paycheck Protection Program LoanRead the Press Release
NEWARK, N.J. – An Atlantic County, New Jersey, construction company and one of its owners entered into a settlement agreement with the United States in which they admitted violating the False Claims Act by taking a loan from the Paycheck Protection Program (PPP) to which the company was not entitled, U.S. Attorney Philip R. Sellinger announced today.
According to admissions and the contentions of the United States contained in the settlement agreement:
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses.
Christopher Construction Company Inc. (the “Company”) and one of its owners, Dennis Christopher, applied for and received a PPP loan totaling $255,507. Christopher, on behalf of the Company, falsely certified in the PPP application that neither the Company nor any individual owning 20 percent or more of its equity was subject to an indictment or other criminal charges. When he completed the application, however, Christopher knew that another owner of the Company was subject to a criminal indictment. Christopher’s false certification on the application caused a bank to approve a PPP loan and caused the Small Business Administration (SBA) to pay a loan processing fee to the lender and to guarantee the loan through the PPP.
Prior to entering into the settlement agreement, the Company repaid the PPP loan balance in full, relieving the SBA of any liability to the lender. The Company and Christopher agreed to pay $53,325 in damages and civil penalties. The settlement with the Company and Dennis Christopher resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office and the Department of Justice Civil Division’s Commercial Litigation Branch, Fraud Section. U.S. Attorney Sellinger also credited special agents of the SBA - Office of Inspector General, under the direction of Special Agent in Charge Amaleka McCall-Brathwaite, with the investigation.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the Government 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 qui tam case is captioned United States ex rel. Pat L. Christopher v. Christopher Construction Company, Inc., et al., Civil Action No. 20-7500 (D.N.J.)
Former Account Executive Charged with Stealing $3 Million from EmployerRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, woman was charged with embezzling millions of dollars from a New Jersey-based company where she was the senior accountant, accounting manager and senior financial shared services manager, U.S. Attorney Philip R. Sellinger announced today.
Jennifer Vandever, 49, of Atco, New Jersey, is charged by indictment with four counts of wire fraud, one count of unauthorized use of access devices, one count of aggravated identity theft and four count of tax evasion. She appeared by videoconference today before U.S. Magistrate Judge Ann Marie Donio and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
From 2011 to 2018, Vandever worked as a supervisor in Company 1’s accounting department. Vandever embezzled from Company 1 by charging significant amounts of personal expenses for herself and her family on the company’s corporate credit cards issued in the name of Individual 1 and on a department issued card. Vandever concealed her personal use of the corporate credit cards from Company 1 and directed payment of those personal expenses from corporate funds unbeknownst to her employer. The scheme totaled $3 million. For the four years 2015 through 2018, Vandever attempted to evade $514,801 of federal income taxes on $1.49 million of unreported embezzled taxable income.
Each count of wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine. The count of unauthorized use of access devices is punishable by 10 years in prison and a maximum $250,000 fine. The count of aggravated identity theft is punishable by sentence of two years in prison, which must be served consecutively to any other term imposed, and a maximum of $250,000. The four counts of tax evasion are each punishable by five years in prison and a maximum $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to the indictment.
The government is represented by Senior Trial Counsel Jason Richardson of the Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed to be innocent unless and until proven guilty.
Two Hudson County Men Admit Roles in Scheme to use Drones to Smuggle Contraband into Fort Dix Federal PrisonRead the Press Release
NEWARK, N.J. – Two Hudson County, New Jersey, men admitted their roles in a conspiracy to use drones to smuggle contraband, including cell phones and tobacco, into the federal correctional facility at Fort Dix, U.S. Attorney Philip R. Sellinger announced.
Nicolo Denichilo, 40, and Adrian Goolcharran, aka “Adrian Ahoda,” aka “Adrian Ajoda,” aka “Adrian Ajodha,” 37, both of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to one count each of conspiracy to defraud the United States Bureau of Prisons.
Two other men, Jason Arteaga-Loayza, and Johansel Moronta, have previously pleaded guilty to participating in the scheme to use drones to smuggle contraband into Fort Dix prison. Arteaga-Loayza pled guilty to his role in the scheme as well as to one count of possession of heroin and fentanyl with the intent to distribute. In September 2021, Judge Wigenton sentenced Arteaga-Loayza to 43 months’ imprisonment. On January 10, 2022, Moronta pled guilty before U.S. District Judge Madeline Cox Arleo to his participation in the scheme as well as to violating the conditions of his supervised release stemming from an earlier federal conviction and is pending sentencing on those charges.
According to the documents filed in this case and statements made in court:
Denichilo and Goolcharran participated in multiple drone deliveries of contraband into Fort Dix between November 2018 and March 2020. Arteaga-Loayza and Moronta, while they were federal prisoners at Fort Dix, arranged for Goolcharran, with Denichilo’s assistance, to fly drones over Fort Dix and drop packages of contraband into the prison, where it was sold to inmates for a profit. The packages included cell phones, cell phone accessories, tobacco, weight loss supplements, eyeglasses, and various other items. Arteaga-Loayza, with Moronta’s assistance inside of the prison, took inmate requests for specific items of contraband and oversaw the collection of payments.
Denichilo, Goolcharran and their conspirators took various steps to prevent BOP officials from detecting and intercepting the contraband. They planned drone drops during the late evening hours or overnight when it was dark outside, and the drones were less likely to be seen. Goolcharran, the drone pilot, with Denichilo’s assistance, flew the drones from concealed positions in the woods surrounding the prison. The lights on the drones were covered with tape to make it more difficult for prison officials to spot the drones against the dark evening sky. Arteaga-Loayza and Moronta also used cell phones, including contraband phones concealed within the prison, to coordinate the drone drops from Denichilo and Goolcharran.
Denichilo and Goolcharran each face a maximum penalty of five years in prison and a maximum fine of $250,000. Sentencing for Denichilo is scheduled for June 6, 2022, and for Goolcharran, June 9, 2022.
U.S. Attorney Sellinger credited agents of the U.S. Department of Justice Office of the Inspector General, Cyber Investigations Office, under the direction of Special Agent in Charge Keith A. Bonanno; the U.S. Air Force Office of Special Investigations, Detachment 307, under the direction of Superintendent Jonathan Jackson; and the U.S. Department of Transportation Office of Inspector General, Northeast Region, under the direction of Acting Special Agent in Charge Joseph Harris, with the investigation leading to today’s guilty pleas.
He also thanked Federal Bureau of Prisons personnel at Fort Dix, under the direction of Warden Lamine N’Diaye; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas J. Mahoney; officers of the Pemberton Borough Police Department, under the direction of Chief Edward Hunter; Pemberton Township Police Department, under the direction of Chief Jason Watters; and Chesterfield Township Police Department, under the direction of Chief Kyle Wilson, for their assistance.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions Division in Newark.
Convicted Felon Charged with Illegally Possessing FirearmRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man made his initial appearance today on charges of illegally possessing a weapon and ammunition, U.S. Attorney Philip R. Sellinger announced.
Gregory Dorceus, 27, of Elizabeth, New Jersey, is charged by complaint with one count of being a felon in possession of a firearm and ammunition. He made his initial appearance by videoconference before U.S. Magistrate Judge Leda Dunn Wettre and was detained.
According to documents filed in this case and statements made in court:
On Sept. 16, 2021, members of the Elizabeth Police Department responded to a report of an individual in possession of a firearm in the area of Jefferson Park. They observed Dorceus, who matched the description provided, and approached him. Dorceus reached for his waistband and attempted to ball up in the fetal position. Officers recovered a Ruger model P95DC, 9mm firearm loaded with four rounds of ammunition. Dorceus has prior felony convictions for illegal drugs and weapons.
The count of being a felon in possession of a firearm carries a maximum sentence of 10 years and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; and officers of the Elizabeth Police Department, under the direction of Director Earl J. Graves and Chief Giacomo Sacca, with the investigation leading to the arrest and charges.
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 Special Assistant U.S. Attorney Timothy P. Shaughnessy 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.