District of New Jersey
Press releases recorded for this federal judicial district.
Four People Sentenced to Prison for Roles in Multimillion-Dollar Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – Four people who participated in a scheme to defraud New Jersey state health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions have been sentenced to prison, Acting U.S. Attorney Rachael A. Honig announced today.
- Michael Pilate, 43, of Williamstown, New Jersey, formerly a guidance counselor with the Pleasantville public school district, and Tara LaMonaca, 47, of Linwood, New Jersey, formerly a pharmaceutical sales representative, were sentenced by U.S. District Judge Robert B. Kugler in Camden federal court today to 18 months in prison and eight months in prison, respectively.
- George Gavras, 40, formerly a pharmaceutical sales representative from Moorestown, New Jersey, and Andrew Gerstel, 43, formerly a pharmaceutical sales representative from Galloway, New Jersey, were sentenced by Judge Kugler on Dec. 14, 2021, to 13 months in prison and 12 months and one day in prison, respectively.
All four defendants previously pleaded before Judge Kugler to separate informations charging each with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through April 2016, Pilate, LaMonaca, Gavras and Gerstel, and others, served as recruiters in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the informations as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
The conspirators recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid the conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to other members of the conspiracy.
Once they had recruited an employee covered by the Pharmacy Benefits Administrator, the conspirators would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. They would select the compounded medications that paid the most without regard to their medical necessity. They would then get the prescriptions signed by doctors and other qualified health professionals who never saw the patients or evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
According to the informations, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey.
In addition to the prison terms, Judge Kugler sentenced Pilate, LaMonaca, and Gerstel each to three years of supervised release, and Gavras to two years of supervised release.
As part of their plea agreements, Pilate must forfeit $392,684 in criminal proceeds and pay restitution of $3.49 million; LaMonaca must forfeit $89,855 in criminal proceeds and pay restitution of $523,831; Gavras must forfeit $204,002 in criminal proceeds and pay restitution of $677,815; and Gerstel must forfeit $184,389 in criminal proceeds and pay restitution of $483,946.
Acting U.S. Attorney Honig credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and the Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in New York, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Christina Hud of the U.S. Attorney’s Office in Camden.
Eleven People Charged in Fentanyl and Crack Cocaine ConspiracyRead the Press Release
NEWARK, N.J. – Eleven people were charged today for their respective roles in a fentanyl and crack cocaine distribution organization that sold large quantities of controlled substances in the area of Brookdale Avenue and Abinger Place in Newark, Acting U.S. Attorney Rachael A. Honig announced.
Leon Clark, aka “Dino,” 40; Abdul Price, aka “Ab,” aka “Dred,” 43; Elijawan White, aka “Eli,” 33; Janice Anderson, 53; Sherriff Simpson, 38; Kesean Holley, aka “Jack,” 29; Terrance Brown, aka “B-Love,” 42; Corey Ewings, 38; Elijah Robinson, aka “Horse,” 40; Barry Jordan Jr., 48; and Frazier Burton, 46, all of Newark, each were charged by superseding complaint with one count of conspiracy to distribute 400 grams or more of fentanyl and 280 grams or more of crack cocaine. Ten of the defendants are in custody and are scheduled to have their initial court appearances today before U.S. Magistrate Judge Leda Dunn Wettre by videoconference.
According to documents filed in this case and statements made in court:
The defendants ran an open-air narcotics market in the area of Brookdale Avenue and Abinger Place. For several months, law enforcement officials conducted extensive surveillance of the area, conducted numerous controlled purchases of narcotics, and analyzed telephone records, all of which demonstrated extensive interactions among Clark, Price, White, Anderson, Simpson, Holley, Brown, Ewings, Robinson, and Jordan. The investigation likewise revealed that Burton was a primary supplier of heroin and fentanyl to the drug trafficking organization. At the time of his arrest this morning, Burton was in possession of approximately 100 bricks of suspected heroin and fentanyl branded with stamps that matched prior sales from the drug trafficking organization.
The count with which the defendants are charged carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison and a maximum fine of $10 million.
Acting U.S. Attorney Honig credited special agents of the FBI, under the supervision of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; and the Bloomfield Police Department, under the direction of Public Safety Director Samuel A. DeMaio, with the investigation leading to the charges. She also thanked police officers and detectives of the Newark Police Department, officers of the Essex County Sheriff’s Office, detectives of the Essex County Prosecutor’s Office, the East Orange Police Department, and the Essex County Department of corrections for their assistance with the investigation.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Samantha C. Fasanello of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark and DeNae M. Thomas of the Office’s Violent Crimes Unit.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Union County Man Charged with Unlawful Firearm PossessionRead the Press Release
NEWARK, N.J. – A Union County man made his initial appearance on a charge of possession of a firearm by a convicted felon, Acting U.S. Attorney Rachael A. Honig announced today.
Miguel Aviles, aka “Ricardo Bermudez,” 47, of Elizabeth, New Jersey, is charged by complaint with possessing a firearm after having been convicted of a felony. Aviles made his initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court on Dec. 13, 2021 and was detained without bond.
According to documents filed in this case and statements made in court:
On Aug. 27, 2021, two victims reported to Elizabeth police that Aviles had pointed a gun at them, threatened to shoot them, and then fired the weapon, all inside the victims’ residence. Two other occupants of the residence confirmed hearing the shot.
The charge of possession of a firearm by a convicted felon carries a maximum penalty of 10 years in prison and a maximum fine of $250,000.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, and the Elizabeth Police Department with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski 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.
Two Men Sentenced to Prison for Receiving over $600,000 in Global Robocall Scam that Defrauded Elderly VictimsRead the Press Release
CAMDEN, N.J. – Two Indian nationals were sentenced to prison today for their roles in a conspiracy to commit wire fraud by accepting illegally obtained wire transfers from victims across the country totaling over $600,000, Acting U.S. Attorney Rachael A. Honig announced.
Zeeshan Khan, 22, and Maaz Ahmed Shamsi, 24, were each sentenced today to 27 months in prison by U.S. District Judge Joseph Rodriguez in Camden federal court. The defendants previously pleaded guilty before Judge Rodriguez to an information charging each with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
As part of an international fraud scheme, India-based call centers utilized automated robocalls to victims with the intent of defrauding U.S. residents, particularly the elderly. After establishing contact with victims through these automated calls, other members of the conspiracy would coerce or trick the victims into sending large sums of cash through physical shipments or wire transfers to other members of the conspiracy, including Shamsi and Khan. These conspirators used a variety of schemes to convince victims to send money, including impersonating government officials from agencies such as the Social Security Administration, or impersonating law enforcement officers from the FBI or Drug Enforcement Administration, and threatened victims with severe legal or financial consequences if they did not comply. Another method utilized by the callers involved convincing the victims they were speaking with someone from a tech support company and coercing the victims into granting the caller remote access to their personal computers, and through that, to the victims’ bank accounts. By manipulating the victims’ bank accounts, the caller would convince the victims that an overpayment was made to the victims and ultimately instruct them to send money by way of mail or wire transfer to other members of the conspiracy, including Shamsi and Khan.
As part of this scheme, Shamsi and Khan are charged with receiving fraudulent wire transfers from 19 victims across the country totaling approximately $618,000.
In addition to the prison terms, Judge Rodriguez sentenced Shamsi and Khan to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Social Security Administration, Office of the Inspector General Office of Investigations, New York Field Division, under the direction of Special Agent in Charge John F. Grasso; and special agents of the Department of Homeland Security, Homeland Security Investigations New York Field Office – El Dorado Task Force, under the direction of Special Agent in Charge Peter C. Fitzhugh, with the investigation leading to today’s sentencing.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden.
Sussex County Man Sentenced to 64 Months in Prison for Fraudulently Obtaining $5.6 Million Loan Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, man was sentenced today to 64 months in prison for fraudulently obtaining a federal Paycheck Protection Program (PPP) loan of over $5 million, Acting U.S. Attorney Rachael A. Honig announced.
Azhar Sarwar Rana, 31, of Newton, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of bank fraud and one count of money laundering. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Rana submitted a fraudulent PPP loan application to a lender on behalf of a corporate entity, Azhar Sarwar Rana LLC, that purportedly invested in real estate development. The application falsified payroll and tax information and included internally inconsistent listings of the number of company employees. New Jersey Department of Labor records showed that Azhar Sarwar Rana LLC paid no wages in 2019, and the minimal wages it purportedly paid in 2020 were mostly to individuals whose submitted Social Security numbers did not correspond to their submitted names.
Based on Rana’s misrepresentations, the lender approved Rana’s PPP loan application and provided Azhar Sarwar Rana LLC with approximately $5.6 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Rana used the fraudulently obtained PPP loan proceeds to pay for numerous personal expenses, including to invest millions in the stock market, make a payment to a luxury car dealership, and send hundreds of thousands of dollars to accounts in Pakistan. Rana was arrested on Dec. 12, 2020, after he booked a same-day flight to Pakistan.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is 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. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
In addition to the prison term, Judge Salas sentenced Rana to five years of supervised release, ordered restitution of $5.58 million. A forfeiture order of $5.68 million was entered in September 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of 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, New York Field Division, under the direction of Inspector General Gail S. Ennis; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Ricky J. Patel in New York, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jennifer S. Kozar and Carolyn Silane of the U.S. Attorney’s Office Economic Crimes 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.
Sussex County Man Sentenced to 62 Months in Prison for Unlawfully Possessing Weapons, MarijuanaRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, man was sentenced today to 62 months in prison for possessing marijuana and an arsenal of weapons and ammunition, Acting U.S. Attorney Rachael A. Honig announced.
Joseph Rubino, 59, of Lafayette Township, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of possession of marijuana with intent to distribute and one count of possession of firearms and ammunition by a convicted felon. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On July 24, 2019, following a motor vehicle accident, officers with the New Jersey State Police observed numerous weapons and ammunition inside Rubino’s crashed vehicle. After executing court-authorized search warrants on Rubino’s vehicle and residence, law enforcement recovered an arsenal of weapons and ammunition from Rubino’s car and house, including:
- An Intratec Arms Model TEC-DC9 semi-automatic assault handgun;
- A Cobray Arms Mac-11 9mm semi-automatic assault pistol with a high capacity magazine;
- A Keltec CMR30 .22 caliber semi-automatic rifle loaded with sixteen (16) .22 caliber hollow-point cartridges;
- A High Standard Derringer .22 caliber double-barrel handgun;
- A Polymer 80 9mm semi-automatic handgun;
- An Ithaca M-66 20-gauge single shotgun;
- A Remington Model 700 .223 caliber bold action rifle with scope;
- A Thompson Center .50 caliber muzzle-loading rifle with scope;
- A Remington Model 870 Wingmaster 12-gauge pump shotgun;
- A New England Firearms 20-gauge single shot shotgun;
- A Remington Model 760 .300 Savage pump rifle;
- A Glenfield Mod 60 .22 LR caliber semi-automatic rifle;
- Two sawed-off double-barrel shotgun barrels
- Several high-capacity magazines;
- Numerous silencers;
- An assault rifle scope;
- A grenade launcher;
- A ballistics vest; and
- Numerous additional ammunitions of various calibers
In addition to the firearms and ammunition, law enforcement recovered approximately 2.5 kilograms of marijuana from Rubino’s house.
In addition to the prison term, Judge Martini sentenced Rubino to three years of supervised release.
Acting U.S. Attorney Honig credited the New Jersey State Police, under the direction of Col. Patrick J. Callahan, and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, with the investigation leading to today’s guilty plea. She also thanked the Warren County Prosecutor’s Office, under the direction of Prosecutor James L. Pfeiffer, and the Sussex County Prosecutor’s Office, under the direction of Prosecutor Francis A. Koch for their assistance.
The government is represented by Assistant U.S. Attorney Naazneen Khan of the Organized Crime and Gangs Unit in Newark.
South Carolina Man Admits Interstate Gun Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A South Carolina man today admitted conspiring to illegally sell firearms, including five pistols and one rifle, in and around Essex County, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Carter Wilkerson, 21, of Orangeburg, South Carolina, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to engage in the business of unlicensed firearms dealing.
According to documents filed in this case and statements made in court:
From April 2021 through May 18, 2021, Wilkerson was a member of a gun trafficking conspiracy. In furtherance of the conspiracy, he trafficked six firearms, with the intent to sell these weapons to at least one New Jersey resident.
The count of conspiracy to engage in the business of unlicensed firearms dealing carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for April 26, 2022.
This case 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.
Acting U.S. Attorney Honig credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews, Newark Field Division, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Francesca Liquori, Chief of the OCDETF/Narcotics Unit in Newark and Assistant U.S. Attorney Samantha Fasanello, of the Organized Crime and Gangs Unit in Newark.
Salem County Man Admits Possession of Child PornographyRead the Press Release
CAMDEN, N.J. – A Salem County, New Jersey, man today admitted possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Rickie Wayne Patton, 40, of Pennsville, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
On Feb. 10, 2020, a Task Force Officer with the FBI’s Child Exploitation and Human Trafficking Task Force identified an IP Address that was sharing suspected child sexual abuse materials over a peer-to-peer file sharing network. From Feb. 10, 2020, to March 15, 2020, the officer downloaded several video files containing images of child sexual abuse from a computer at the same IP Address. The IP Address was then traced to Patton’s residence, where the FBI executed a search warrant on May 19, 2020. The FBI found laptop computers and digital storage media belonging to Patton. Forensic examination later confirmed those devices contained images of child sexual abuse.
The count of possession of child pornography carries a maximum sentence of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 18, 2022.
Acting U.S. Attorney Honig credited special agents and task force officers of the FBI, Philadelphia Division, Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge Jacqueline Maguire, with the investigation leading to today’s guilty plea. She also thanked the Pennsville Police Department, under the direction of Chief Vincent Green, and the Salem County Prosecutor’s Office, under the direction of Acting Prosecutor Kristin J. Telsey, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
Puerto Rican Man Admits Conspiring to Distribute over 250 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A Puerto Rican man today admitted conspiring to distribute over 250 kilograms of cocaine, Acting U.S. Attorney Rachael A. Honig announced.
Mariano Enrique Arroyo Perez, aka “Humilde,” 29, pleaded guilty before U.S. District Judge Esther Salas to a superseding indictment charging him with conspiracy to distribute five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
From 2017 through July 2019, Arroyo Perez and his conspirators conspired to distribute approximately 250 kilograms of cocaine. They conspired to transport cocaine on private planes, including approximately 150 kilograms of cocaine from Puerto Rico to New Jersey on a private plane on Nov. 18, 2018, which law enforcement intercepted. After several men boarded a private plane in Puerto Rico destined for a Teterboro Airport in New Jersey, the pilots became suspicious, as the men were not on the manifest for the flight and their luggage was particularly heavy. Their luggage contained the 150 kilograms of cocaine. Law enforcement arrested the four passengers.
After this seizure, law enforcement learned that Arroyo Perez had coordinated this shipment. Law enforcement also reviewed judicially authorized wire intercepts that showed that Arroyo Perez and a conspirator discussed and coordinated the Nov. 18, 2018, events and shared the names of the four passengers.
The count of conspiracy to distribute five kilograms or more of cocaine carries a statutory mandatory minimum sentence of 10 years in prison and a maximum penalty of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for April 21, 2022.
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.
Acting U.S. Attorney Honig credited special agents and task force officers with the Drug Enforcement Administration in New Jersey, under the direction of Special Agent in Charge Susan A. Gibson in Newark, as well as special agents and task force officers with the Drug Enforcement Administration in Colombia, the Dominican Republic, and Puerto Rico. She also thanked the U.S. Office of International Affairs and the U.S. Marshals Service for their assistance with the case.
The government is represented by Assistant U.S. Attorney Lauren Repole of the Economic Crimes Unit in Newark and Assistant U.S. Attorney Francesca Liquori, Chief of the OCDETF Unit in Newark.
Justice Department Obtains $4.5 Million Settlement from New Jersey Landlord to Resolve Claims of Sexual Harassment of TenantsRead the Press Release
NEWARK – The Justice Department announced today that Joseph Centanni, a landlord who has owned hundreds of rental units in and around Elizabeth, New Jersey, has agreed to pay $4.5 million in monetary damages and a civil penalty to resolve a Fair Housing Act (FHA) lawsuit concerning his sexual harassment of tenants and housing applicants for more than 15 years. This settlement, which still must be approved by the United States District Court for the District of New Jersey, is the largest monetary settlement the Department has ever obtained in a case alleging sexual harassment in housing.
The FHA prohibits discrimination on the basis of sex, which includes sexual harassment and discrimination on the basis of sexual orientation and gender identity. Centanni focused his harassment on women and gay or bisexual men. The monetary damages awarded under the proposed consent decree will compensate the many women and men who were sexually harassed by Centanni.
“The need for housing is a basic human need,” Acting U.S. Attorney Rachael A. Honig of the District of New Jersey said. “Joseph Centanni exploited that need, and the important federal programs that attempt to meet it, by threatening to deny his victims a roof over their heads if they did not submit to his demands for sexual acts. This landmark settlement demonstrates our unyielding commitment to combat sexual harassment in housing and to ensure that no one is subject to discrimination because of their sex, including based on their sexual orientation or gender identity.”
“This lawsuit and settlement send a clear message that the Department will not stand for landlords who ruthlessly abuse their power to prey on vulnerable members of our society,” Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division said. “Having recently marked the fourth anniversary of the launch of the Department’s Sexual Harassment in Housing Initiative, we stand as committed as ever to aggressively pursue those who engage in this abhorrent conduct.”
“No one deserves to be victimized and preyed upon in their own home,” Department of Housing and Urban Development Inspector General Rae Oliver Davis said. “HUD OIG is committed to investigating with our law enforcement partners to pursue predatory landlords and hold them accountable for this egregious behavior and seek relief for victims.”
The United States’ lawsuit alleged that Centanni’s harassment spanned a period of at least 15 years. According to the complaint, Centanni demanded sexual favors like oral sex, to get or keep housing; offered housing benefits, such as reduced rent in exchange for sexual favors; touched tenants and applicants in a way that was sexual and unwelcome; and made unwelcome sexual comments and advances to tenants and applicants. The complaint also alleged that Centanni initiated or threatened to initiate eviction actions against tenants who objected to or refused his sexual advances. According to the complaint, Centanni participates in the federal Housing Choice Voucher Program (also known as Section 8) and receives approximately $102,000 each month in Housing Choice Voucher payments.
Under the terms of the proposed consent decree, Centanni will pay $4.39 million in monetary damages to tenants and prospective tenants harmed by his harassment, through a process established in the consent decree. Individuals who believe that they were subjected to sexual harassment by Centanni should contact the Housing Discrimination Tip Line toll free, at 1-833-591-0291, and select option number one to leave a message. Individuals can also contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339. Individuals may also e-mail the Justice Department at [email protected], or submit a report online.
The proposed consent decree reflects that Centanni has sold all of his residential rental properties. Under the terms of the settlement, he is permanently enjoined from owning and managing residential rental properties in the future. Centanni will be required to dismiss housing court judgments obtained in proceedings deemed to be retaliatory and take steps to repair the credit of any affected tenants. He must also pay a $107,050 civil penalty to the United States, the maximum civil penalty allowed under the FHA.
There are separate, ongoing, criminal prosecutions against Centanni brought by the Office of the Union County, New Jersey, Prosecutor. To date, that office has charged Centanni with coercing 20 tenants into sexual acts in exchange for financial relief. Centanni is charged with 13 counts of second-degree sexual assault, one count of second-degree attempted sexual assault, and 21 counts of fourth-degree criminal sexual contact. Individuals may learn more about the criminal prosecution at https://ucnj.org/prosecutor/press-releases/prosecutor/2021/07/01/elizabeth-landlord-charged-with-sexual-crimes-against-7-additional-tenants-bringing-total-to-20/. Individuals with information about Centanni may reach the Union County Prosecutor’s Office by contacting Detective Joanne Son at (908) 477-1698.
Acting U.S. Attorney Honig and Assistant Attorney General Clarke credit the special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, for their partnership in this matter.
The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The Department’s Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the Initiative, the Department of Justice has filed 23 lawsuits alleging sexual harassment in housing and recovered over $9.5 million for victims of such harassment.
If you think you are a victim of sexual harassment by a landlord, or other forms of housing discrimination, you may contact the Justice Department by submitting a report online or contacting the United States Attorney’s Office for the District of New Jersey at (855) 281-3339 or by filing a complaint online.
Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
The United States is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the Civil Rights Unit; Assistant U.S. Attorney Susan Millenky, Civil Rights Unit; Trial Attorney Erin Meehan Richmond, Sexual Harassment Counsel and Coordinator of the Civil Rights Division’s Housing and Civil Enforcement Section; and Katie Legomsky, Trial Attorney, Housing and Civil Enforcement Section.
Cumberland County Attorney Sentenced to 14 Months in Prison for Tax EvasionRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey-based attorney was sentenced today to 14 months in prison for evading more than $250,000 in federal taxes on income generated from his law firm, Acting U.S. Attorney Rachael A. Honig announced.
Douglas M. Long, 55, of Upper Deerfield, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Noel. L Hillman to an information charging him with one count of federal income tax evasion. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From 2012 through 2015, Long, managing partner of the Woodbury, New Jersey, law firm Long & Marmero LLP, exercised primary control over the firm’s finances and supervised the firm’s bookkeeper. Many of Long’s personal expenses, including school tuition for his children, utilities and service fees for his personal residences, student loan payments for Long and his spouse, and other expenses, repeatedly were paid out of the law firm’s bank accounts. Long directed the bookkeeper to falsely classify these payments as law firm business expenses to avoid his tax obligations. He also falsely declared, under penalty of perjury, that his personal tax returns for tax years 2012 through 2015 were true and accurate when they were not. Long ultimately concealed over $800,000 in personal income and evaded payment of over $250,000 in taxes owed to the IRS during tax years 2012 through 2015, including $368,000 in income and $120,000 in taxes for tax year 2014.
In addition to the prison term, Judge Hillman sentenced Long to three years of supervised release, fined him $10,000 and ordered him to pay restitution of $269,736.
Acting U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, 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 sentencing.
The government is represented by Assistant U.S. Attorney Bruce P. Keller of Special Prosecutions Division in Newark.
Camden County Man Sentenced to 10 Years in Prison for Role in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 120 months in prison for conspiring to distribute heroin in the city of Camden, Acting U.S. Attorney Rachael A. Honig announced.
Jose Agron, 28, of Oaklyn, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an indictment charging him with conspiracy to distribute one kilogram or more of heroin. Judge Bumb imposed the sentence today in Camden federal court.
During his sentencing hearing, Agron agreed that the amount of heroin jointly attributable to him, as a member of the conspiracy, was one to three kilograms. He also acknowledged his role, as a member of the conspiracy, with respect to the distribution of cocaine and cocaine base.
According to documents filed in this case and statements made in court:
A total of 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 investigation used various investigative tactics including video surveillance, confidential informants, consensual recordings, controlled drug purchases, and several court-authorized wiretaps to uncover the inner workings of the drug-trafficking organization. The organization included street-level sellers like Agron, who worked various shifts selling drugs to customers and collecting drug proceeds. These street-level sellers were supervised by different layers of managers who, in turn, supplied the drug set with pre-packaged heroin, some of which was mixed with fentanyl, as well as cocaine and crack cocaine. The FBI and other law enforcement officers recovered multiple firearms from different locations connected to the drug organization at the time of the 2018 arrests.
Seventeen of these defendants already have entered guilty pleas on drug conspiracy charges. Two defendants are awaiting trial, on a date to be set by the Court. The charges and allegations against those two defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Agron to five years of supervised release.
Acting U.S. Attorney Rachael A. Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Camden County Prosecutor Grace C. MacAulay; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Acting Chief of Police Larry Robb; and the N.J. State Police, under the direction of 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.
Loan Officer Admits Participation in Large-Scale Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A loan officer for a mortgage company today admitted his role in a long-running, large-scale mortgage fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.
Isaac DePaula, 41, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count 1 of an indictment charging him with conspiracy to commit bank fraud. DePaula was a long-time fugitive who was charged by criminal complaint in 2012 and by indictment in 2016. He returned to the United States in March 2020 to face the charges in the indictment.
According to the documents filed in this and other cases and statements made in court:
From September 2006 to September 2010, DePaula and his conspirators engaged in a long-running, large-scale mortgage fraud conspiracy through a mortgage company called Premier Mortgage Services (PMS). The conspirators targeted properties in low-income areas of New Jersey. After recruiting straw buyers, the defendants used a variety of fraudulent documents to make it appear as though the straw buyers possessed far more assets, and earned far more income, than they actually did. The defendants then submitted these fraudulent documents as part of mortgage loan applications to financial institutions. Relying on these fraudulent documents, financial institutions provided mortgage loans for the subject properties.
The defendants then split the proceeds from the mortgages among themselves and others by using fraudulent settlement statements (HUD-1s), which hid the true sources and destinations of the mortgage funds provided by financial institutions. The defendants made false representations and provided fraudulent documents when, in fact, the straw buyers had no means of paying the mortgages on the subject properties, many of which entered into foreclosure proceedings.
The defendants played different roles in the scheme, and others charged and convicted included a part owner of PMS, an attorney who aided the fraud by performing closings on many of the subject properties, an accountant who created false documents, the owner of a real estate development company, several loan officers, and a paralegal for another attorney who also closed fraudulent transactions.
DePaula was a loan officer at PMS and recruited straw buyers, provided false and fraudulent documents to the straw buyers, and incorporated false and fraudulent documents into loan applications to induce financial institutions to fund mortgage loans. The loan officers profited illegally by receiving a commission from PMS for each mortgage loan that they closed, and also profited illegally by diverting portions of the fraudulently obtained mortgage proceeds for themselves, often via shell corporations or nominee bank accounts.
The offense to which DePaula pleaded guilty carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for April 19, 2022.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and special agents of the Federal Housing Finance Agency - Office of the Inspector General, under the direction of Special Agent in Charge Robert W. Manchak, with the investigation leading to today’s guilty plea.
The government is represented by Acting Principal Assistant U.S. Attorney Rahul Agarwal.
Hudson County Man Sentenced to 86 Months in Prison on Drug Distribution ChargesRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 86 months in prison for possessing with intent to distribute heroin, cocaine and cocaine base, Acting U.S. Attorney Rachael A. Honig announced.
Hason Armfield, 43, of Jersey City, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with possessing with intent to distribute heroin, cocaine and cocaine base. Judge McNulty imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Armfield’s residence was searched as part of an investigation by the Drug Enforcement Administration (DEA) and the Jersey City Police Department. Law enforcement officers found heroin, cocaine, cocaine base, drug paraphernalia, and U.S. currency.
In addition to the prison term, Judge McNulty sentenced Armfield to three years of supervised release.
Acting U.S. Attorney Honig credited agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and members of the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s sentencing.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole Board, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit in the U.S. Attorney’s Office in Newark.
Amtrak Employee Admits Defrauding Amtrak of More Than $76,000 Worth of Chainsaws and Chainsaw PartsRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey man today admitted to fraudulently obtaining chainsaws and chainsaw parts from his employer Amtrak and then selling this equipment for personal profit, Acting U.S. Attorney Rachael A. Honig announced.
Jose Rodriguez, 49, of Brick, New Jersey, pleaded guilty by videoconference before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of mail fraud. Rodriguez was previously charged by complaint in March 2021 with one count of theft from an agency receiving federal funds and one count of theft of government property.
According to documents filed in this case and statements made in court:
Rodriguez had been an Amtrak employee since October 2007, most recently as a senior engineer and repairman, based out of an Amtrak facility in North Brunswick, New Jersey. Between March 2012 and July 2020, Rodriguez obtained 114 chainsaws, 122 chainsaw replacement bars, and 222 replacement chains from Amtrak, the total value of which was over $76,000, under the false pretense that this equipment would be used for Amtrak projects, but then sold the equipment either on an online auction service or directly to purchasers. Rodriguez used the U.S. Postal Service to mail the stolen chainsaw and chainsaw parts to purchasers throughout the United States, including purchasers in Ohio, Pennsylvania, and West Virginia.
The mail fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for April 19, 2022.
Acting U.S. Attorney Honig credited detectives from Amtrak Police New York Division and Mid-Atlantic Division, under the direction of Chief Sam Dotson, and special agents from Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, Eastern Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Leslie Faye Schwartz in the Special Prosecutions Division and Cari Fais, Chief of the Criminal Division’s Opioids Unit.
Two Men Admit Roles in Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – Two Newark men have admitted their roles in a drug trafficking conspiracy based in Newark, Acting U.S. Attorney Rachael A. Honig announced today.
Rahim Jackson pleaded guilty by videoconference today before U.S. District Judge Brian R. Martinotti to an indictment charging him with conspiracy to distribute heroin. Arthur Hardy pleaded guilty on Dec. 9, 2021, before Judge Martinotti in Newark federal court, to an information charging him with conspiracy to distribute heroin and possession of heroin.
According to the documents filed in this case and statements made in court:
The G-Shine set of the Bloods street gang operate at the Broadway Townhomes in Newark, in a residential neighborhood a short distance from two elementary schools and a high school. The organization’s leaders obtained their supply of narcotics, including heroin and fentanyl, from Jackson and Hardy, who delivered the narcotics either personally or through drug runners. The investigation revealed that, on numerous occasions, large narcotics deliveries took place in or around the Rotunda Recreation and Wellness Center on Clifton Avenue, where Jackson was employed and where Hardy was the director. These individuals also used the Rotunda Recreation and Wellness Center to stash narcotics and narcotics proceeds.
The count to which Jackson pleaded guilty is punishable by a minimum of 10 years in prison and a maximum of life in prison. The counts to which Hardy pleaded guilty are punishable by a minimum of five years in prison and a maximum of 40 years in prison. Jackson’s sentencing is scheduled for April 18, 2022, and Hardy’s sentencing is scheduled for April 14, 2022.
Acting U.S. Attorney Honig credited special agents of Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Susan A. Gibson in Newark; members of the Newark Department of Public Safety, under the direction of Director Brian O’Hara; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the guilty pleas.
She also thanked the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, the Rockaway Township Police Department, under the direction of Chief Martin McParland, and special agents from the ATF, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark.
The Broadway Townhomes investigation was part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s OCDETF Unit in Newark and Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit.
Three Individuals Charged with Stealing Unemployment BenefitsRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man and woman and a New York man were arrested today and charged for their alleged roles in a fraud committed in connection with unemployment insurance benefits, Acting U.S. Attorney Rachael A. Honig announced.
Christopher Valerio, 31, of Woodbridge, New Jersey, Yanira Abreu, 40, of Keasbey, New Jersey, and Jose Tavares, 34, of New York, New York, are each charged by complaint with one count of conspiracy to commit wire fraud. All three defendants are scheduled to appear by videoconference this afternoon before U.S. Magistrate District Judge Michael A. Hammer.
According to documents filed in this 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 benefits for individuals who are not eligible for other types of unemployment, such as self-employed workers or independent contractors. The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance that provided an additional weekly benefit to those eligible for PUA and regular unemployment benefits.
From July 2020 through February 2021, the defendants and others fraudulently applied for unemployment insurance benefits from the New York Department of Labor (NYDOL) by unlawfully utilizing the personal identifying information of at least a dozen victims, including the victims’ names, and Social Security numbers. Fictitious user profiles that the defendants created included mailing addresses that ostensibly belonged to the victims, but in fact were controlled by the defendants and others. Once the NYDOL processed and approved the fraudulent applications, a financial institution transferred the benefit funds to debit cards in the names associated with the fictitious user profiles and sent the debit cards to the addresses associated with the defendants. The defendants withdrew funds using the cards at various ATM locations throughout New Jersey and New York.
The wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross profits or twice the gross loss suffered by the victims of his offense, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone; and postal inspectors of the U.S. Postal Inspection Service, New Jersey Division, under the direction of Acting Postal Inspector in Charge Raimundo Marrero, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Olajide A. Araromi and Fatime Cano of the Government Fraud Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Four People Indicted in International Telemedicine Health Care Fraud Kickback SchemeRead the Press Release
NEWARK, N.J. – Four people, including a licensed physician, have been charged for their roles in an international telemedicine health care fraud and kickback scheme involving compound medications and durable medical equipment, Acting U.S. Attorney Rachael A. Honig announced today.
David Woroboff, 59, of Del Rey, California; George Willard, 53, of Brooklyn, Michigan; Randall Mills, 61, of Plano, Texas; and Dr. Le Thu, 66, of South Bridge, Massachusetts, are each charged by indictment with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the federal Anti-Kickback Statute.
According to the indictment:
Woroboff, Willard, and Mills were high-level employees of a telemedicine company. Beginning in May 2014, the defendants and their conspirators began to use the telemedicine company to generate a high volume of prescriptions for compounded medications and, later, durable medical equipment (DME), without regard to medical necessity and through the payment of kickbacks. The defendants agreed and arranged for health care providers associated with the telemedicine company to write prescriptions for compounded medications and DME without the establishment of any provider-patient relationship, in exchange for kickbacks, and in violation of certain state telemedicine laws. Woroboff, Willard, and Mills agreed to pay Thu approximately $35 per prescription. Thu wrote prescriptions without speaking to patients in exchange for those payments.
In order to encourage providers to write prescriptions without establishing a provider-patient relationship, Woroboff and Mills falsely informed providers that “nurses” had already consulted with the patients, taken their medical histories, and determined that compounded medication or DME was medically appropriate. In reality, the “nurses” were located in the Philippines, were not registered to practice medicine in the United States, and generally had not spoken with the patients. Rather, representatives of marketing companies provided patient information to the telemedicine company and paid the telemedicine company to generate prescriptions for compounded medications and DME. Woroboff and Willard also took additional steps to conceal their scheme, including the use of fake phone numbers and addresses for the health care providers.
The defendants caused losses to TRICARE, Medicare, and private health insurance companies of approximately $37 million.
The charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison. The charge of conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison. The maximum fine for each count is $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest.
Acting U.S. Attorney Honig credited the U.S. Attorney’s Office, Middle District of Tennessee, under the direction of Acting U.S. Attorney Mark H. Wildasin; special agents of the Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; special agents of the FBI, under the direction of Special Agent in Charge Johnnie Sharp, in Birmingham, Alabama; special agents of the U.S Office of Personnel Management, Office of the Inspector General, under the direction of Special Agent in Charge Amy Parker; special agents of the U.S Department of Labor, Office of the Inspector General, under the direction of Special Agent in Charge Rafiq Ahmad; investigators of the U.S. Department of Labor-Employee Benefits Security Administration, under the direction of Regional Director Isabel Culver; and special agents of the Tennessee Valley Authority, Office of the Inspector General, under the direction of Special Agent in Charge Meagan Sands, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorneys Sean M. Sherman and Emma Spiro of the Opioid Abuse Prevention & Enforcement Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Camden Woman Sentenced to 51 Months in Prison for Role in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. B A Camden woman was sentenced today to 51 months in prison for conspiring to distribute heroin in the City of Camden.
Elisa Rivera, 31, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging her with one count of conspiracy to distribute heroin within 1,000 feet of a school. During her sentencing hearing, Rivera agreed that the amount of heroin jointly attributable to her, as a member of the conspiracy, was three to 10 kilograms. She also acknowledged her role, as a member of the conspiracy, with respect to the distribution of cocaine and cocaine base.
According to documents filed in this case and statements made in court:
A total of 19 defendants were arrested in late 2018 on drug-trafficking charges based on the FBI’s investigation of a drug-trafficking organization that ran the open-air narcotics trade on the 400-500 block of Pine Street in Camden for several months in 2018. The investigation used video surveillance, confidential informants, consensual recordings, controlled drug purchases, and several court-authorized wiretaps to uncover the inner workings of the drug-trafficking organization. The organization included street-level sellers like Rivera, who worked various shifts selling drugs to customers and collecting drug proceeds. These sellers were supervised by different layers of managers who, in turn, supplied them with pre-packaged heroin, some of which was mixed with fentanyl, as well as cocaine and crack cocaine. The FBI and other law enforcement officers recovered multiple firearms from different locations connected to the drug organization at the time of the 2018 arrests.
Seventeen already have entered guilty pleas on drug conspiracy charges. Three defendants are awaiting trial; the charges against them are merely accusations, and they are presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Rivera to six years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting 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 William P. Monaghan; and the N.J. State Police, under the direction of Col. 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.
Camden County Woman Convicted in Stolen Identity Refund Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, woman was found guilty for her role in an extensive scheme to obtain money through fraudulently obtained refund checks issued by the U.S. Treasury, Acting U.S. Attorney Rachael A. Honig announced today.
Awilda Henriquez, 35, of Clementon, New Jersey, was convicted on Dec. 9, 2021, of one count of conspiracy to defraud the United States government and steal United States mail, 13 counts of theft of government money, and 13 counts of aggravated identity theft, following a 10-day trial before Senior U.S. District Judge Robert B. Kugler.
According to documents filed in this case and the evidence at trial:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They then complete Form 1040 tax returns using the fraudulently obtained information, and they falsify wages earned, taxes withheld, and other data, to always ensure that the fraudulent tax returns generate a refund. They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access. With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control or cashing the checks at check cashing businesses.
The investigation revealed that for the 2013 tax year more than 3,300 SIRF tax returns were filed using the names and Social Security numbers of residents of Puerto Rico and the refunds were directed to be mailed to a small section of Pennsauken, New Jersey. Of the 3,300 returns filed, several of the refund checks were issued and ultimately cashed at check cashing agencies in New Jersey, Philadelphia, and New York using fraudulent identifications, including fake New Jersey driver's licenses, fake Social Security cards, and fake Department of Homeland Security Permanent Resident Identification cards.
On March 28, 2018, a Camden grand jury returned an indictment against Henriquez and her conspirators, Alberto Sanchez, Jorge Gutierrez, and Roque Bisono. Henriquez, Sanchez, Gutierrez and Bisono, and their conspirators, obtained stolen identities of residents of Puerto Rico and used them to file fraudulent income tax returns seeking federal tax refunds to which they were not entitled. The conspirators recruited mail carriers from the U.S. Postal Service as part of the scheme to steal the tax refund checks from the mail. The mail carriers were paid for every U.S Treasury check that was stolen. Henriquez and her conspirators recruited and paid “check couriers” to cash the tax refund checks in a variety of ways, including at check cashing businesses in New Jersey, where Henriquez paid the tellers to also participate in the scheme. The check couriers presented fraudulent identifications at the check cashing businesses matching the names on the tax refund checks in order to cash the checks, which the tellers cashed because they were paid by Henriquez to do so. In total, the scheme caused $565,091 in losses to the U.S. Treasury.
Sanchez pleaded guilty on Aug. 28, 2019, to two counts of theft of government funds, two counts of aggravated identity theft, and one count of witness tampering and was sentenced by Judge Kugler on Dec. 13, 2019, to 45 months in prison. Gutierrez pleaded guilty on Oct. 27, 2021, to conspiracy to defraud the United States, and is scheduled to be sentenced on March 1, 2022. Bisono pleaded guilty to conspiracy to defraud the United States, theft of government funds, aggravated identity theft, and false statements on November 7, 2018, and sentencing is set for March 21, 2022. The sentencing of other conspirators remains pending.
The conspiracy to defraud the United States government count carries a maximum potential penalty of five years in prison. The counts of theft of government funds are punishable by a maximum potential penalty of 10 years in prison. The counts of aggravated identity theft are punishable by a statutory mandatory prison sentence of two years that must be served consecutively to any term of imprisonment imposed for the violation of any other count. All the counts are also punishable by a fine of up to $250,000, or twice the gain or loss caused by the offense, whichever is greatest. Henriquez’s sentencing is scheduled for April 12, 2022.
Acting U.S. Attorney Honig credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark and Acting Special Agent in Charge Yury Kruty in Philadelphia; and special agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi. She also thanked the U.S. Postal Inspection Service for its assistance with the investigation leading to today’s conviction.
The government is represented by Senior Trial Counsel Jason M. Richardson and Assistant U.S. Attorney Christina O. Hud of the Criminal Division.
Camden County Man Sentenced to 27 Months in Prison for Trafficking in Oxycodone PillsRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 27 months in prison for conspiring to distribute oxycodone pills in connection with his role in a drug trafficking ring, Acting U.S. Attorney Rachael A. Honig announced.
Anwar Abdulah, 33, of Pennsauken, previously pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute and possess with intent to distribute oxycodone and distributing and possessing with intent to distribute quantities of oxycodone. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Abdullah admitted that on multiple occasions from January 2020 to March 10, 2020, he obtained oxycodone from Erick Bell in and around Camden and resold that oxycodone. For example, Abdullah admitted that, on Feb. 21, 2020, he provided $1,440 to Bell so that Bell could purchase 120 15 mg oxycodone pills from another individual. Bell then provided Abdullah with the oxycodone pills that Bell bought using Abdullah’s money, and Abdullah resold the pills to others. Oxycodone is a Schedule II controlled substance, meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
In addition to the prison term, Judge Bumb sentenced Abdullah to three years of supervised release.
Bell previously pleaded guilty and is scheduled to be sentenced Feb. 4, 2022.
Acting U.S. Attorney Honig credited special agents of the FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; the New Jersey Office of Homeland Security and Preparedness, under the direction of Acting Director Laurie R. Doran; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to the charges. She also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration for their assistance.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Newark Office.
Paterson Felon Sentenced to 57 Months in Prison for Trafficking and Unlawfully Possessing 16 FirearmsRead the Press Release
NEWARK, N.J. – A Paterson man with prior felony convictions was sentenced today to 57 months in prison for illegally transporting and selling 16 firearms for over $8,000 on four occasions beginning in July 2019, Acting U.S. Attorney Rachael A. Honig announced.
Floyd Henry, aka “HK,” 36, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of illegally engaging in the business of dealing in firearms and four counts of possession of firearms and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
From July 15, 2019, through Sept. 25, 2019, Henry engaged in the business of dealing firearms, while not being a federally licensed importer, licensed manufacturer, or licensed dealer. On four occasions, in Passaic County, Henry sold or attempted to sell a total of 16 firearms, including two semi-automatic rifles, three revolvers, and 11 semi-automatic pistols, as well as over 100 rounds of ammunition, in exchange for over $8,000. Henry had purchased or obtained the firearms and ammunition in other states, transported them to New Jersey, and sold them to an individual in Passaic County.
In addition to the prison term, Judge Hayden sentenced Henry to three years of supervised release.
Acting U.S. Attorney Honig credited Special Agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; officers with the Passaic County Sherriff’s Office, under the direction of Sheriff Richard H. Berdnik; the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s arrest and charges.
The government is represented by Assistant U.S. Attorney Christopher D. Amore of the U.S. Attorney’s National Security Unit in Newark.
Middlesex Man Sentenced to 30 Months in Prison for Paycheck Protection Program Fraud Scheme and Obtaining Funds from Stolen and Altered U.S. Treasury CheckRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man was sentenced today to 30 months in prison for fraudulently receiving Payment Protection Program (PPP) funds and depositing a stolen and altered U.S. Treasury check, Acting U.S. Attorney Rachael A. Honig announced today.
Bernard Lopez, 40, previously pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to an information charging him with one count each of bank fraud and theft of government funds. Judge Sheridan imposed the sentence today by videoconference.
According to the documents filed in this case and statements made in court:
Lopez devised a scheme to commit bank fraud through which a stolen and altered U.S. Treasury check was deposited into a corporate bank account Lopez created in the name of Pezlo Management LLC. The check was altered to be made payable to Pezlo in the amount of $211,886 and was then deposited into Pezlo’s corporate bank account. Lopez later withdrew or transferred the stolen proceeds from Pezlo’s bank account before the bank could detect the fraud.
On June 24, 2020, Lopez caused to be submitted a fraudulent PPP loan application to a lender on behalf of Company-1, a purported business that Lopez controlled. The Small Business Administration oversees the PPP, which is designed to provide forgivable loans to small businesses affected by the coronavirus pandemic. Applicants for PPP loans apply directly to banks or financial institutions participating in the program; in those applications, applicants make affirmative certifications about their average monthly payroll expenses and number of employees. Applicants also certify their intent to spend PPP proceeds on permissible business expenses, such as payroll costs, rent, utilities, and interest on mortgages. PPP loans may be entirely forgiven if the recipient spends the loan proceeds on these permissible expenses within a designated period after receiving the proceeds.
Lopez’s PPP application falsely represented that Company-1 employed 25 employees, had a monthly payroll expense of approximately $192,000, and had mortgage/lease and utilities expenses. Company-1 did not, in fact, employ any employees, nor did it incur payroll or utility expenses. Based on Lopez’s misrepresentations, the lender approved Lopez’s PPP loan application and provided Lopez’s purported business with $481,502 in federal COVID-19 emergency relief funds meant for distressed small businesses. Lopez then converted a portion of the proceeds for his own use.
In addition to the prison term, Judge Sheridan sentenced Lopez to three years of supervised release and ordered restitution of $137,000 and forfeiture of $481,502.
Acting U.S. Attorney Honig credited special agents and task force officers of the U.S. Department of the Treasury-OIG, under the direction of Assistant Inspector General for Investigations Sally D. Luttrell, and special agents and task force officers of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today's sentencing. She also thanked special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, and special agents of the Federal Deposit Insurance Corporation Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca for assistance.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Fraud Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Justice Department Awards More Than $17.5 Million to Support Project Safe NeighborhoodsRead the Press Release
NEWARK, N.J. – The Department of Justice announced today that it has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core. The Rosamons Gifford Charitable Corporation was awarded $331,859 to administer PSN grant funds in the District of New Jersey.
The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorneys’ Offices.
“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” Deputy Attorney General Lisa O. Monaco said. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”
“Financial support like this from the Department of Justice fosters cooperation among federal, state and local law enforcement, as we work together to protect the people of New Jersey,” Acting U.S. Attorney Rachael A. Honig said. “These awards provide substantial resources to support important public safety initiatives.”
Grant funds will provide resources and training for law enforcement and prosecutors to combat violent crime and make their communities safer through a comprehensive approach to public safety that joins targeted enforcement with community engagement, prevention, research, and reentry efforts. With approval from BJA, the fiscal agent will begin the process of making subawards for PSN grant projects.
“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” Principal Deputy Assistant Attorney General Amy L. Solomon for OJP said. “The Office of Justice Programs is pleased to join with our U.S. Attorneys’ Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”
In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.
For a list of all grantees, please visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/FY21-Project-Safe-Neighborhoods-Awards.pdf
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Camden County Man Admits Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man with a prior child exploitation conviction admitted possessing child pornography, Acting U.S. Attorney Rachael A. Honig announced today.
James Tierney, 56, of Cherry Hill, New Jersey, pleaded guilty before U.S. Senior District Judge Robert B. Kugler in Camden federal court to one count of possession of child pornography.
According to documents filed in this case and statements made in court:
In August 2020, law enforcement agents executed a search warrant at Tierney’s residence after receiving information from the National Center for Missing and Exploited Children that an online cloud account accessed from Tierney’s residence had uploaded images of child sexual abuse. While executing the search warrant, agents recovered Tierney’s cell phone, which contained multiple videos and images of child sexual abuse. Tierney admitted to agents that he used the cell phone and cloud account for possessing images of child sexual abuse.
Tierney has a prior New Jersey state conviction for endangering the welfare of a child/distribution of child pornography. The count of possession of child pornography after a prior child exploitation conviction carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison, and a maximum $250,000 fine. Sentencing is scheduled for April 12, 2022.
Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations, Cherry Hill Office, under the direction of Special Agent in Charge Jason J. Molina in Newark; the Camden County Prosecutor’s Office High Tech Crimes Unit, under the direction of Acting Prosecutor Grace C. MacAulay; and the New Jersey State Police, under the direction of Superintendent Patrick J. Callahan, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jeffrey B. Bender of the U.S. Attorney's Office Criminal Division in Camden.
Burlington County Man Sentenced to 42 Months in Prison for Role in $350,000 Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 42 months in prison for stealing more than $350,000 from a special needs trust, Acting U.S. Attorney Rachael A. Honig announced.
Eugene Young, 70, of Mount Holly, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of wire fraud. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
A special needs trust was established to provide for the supplemental care, maintenance, support, and education of a disabled individual and, in December 2017, had more than $1 million in assets in two bank accounts. In December 2017, Young caused the trust’s trustee, a senior citizen, to execute a power of attorney appointing him as the trustee’s agent.
Young used the power of attorney to gain access to the trust’s bank accounts and, between December 2017 and June 2019, used a variety of means to divert funds from the trust. Young used a debit card associated with the bank accounts to make more than 650 purchases and approximately 200 ATM withdrawals. He also wrote checks from the accounts to himself, made other withdrawals from the accounts, and cashed portions of annuity checks that were the property of the trust. The funds were not used for the benefit of the trust’s beneficiary, as required by the terms of the trust, but rather for Young’s personal use. Young misappropriated more than $350,000 from the trust before his scheme was discovered.
In addition to the prison term, Judge Rodriguez sentenced Young to three years of supervised release and ordered to pay restitution of $359,560.
Acting U.S. Attorney Honig credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the U.S. 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 sentencing.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Burlington County Man Charged with Cell Phone SIM Swap SchemeRead the Press Release
NEWARK, N.J. – A Burlington County, New Jersey, man was arrested today for swapping cell phone customers’ Subscriber Identity Module (SIM) numbers into mobile devices controlled by an individual who was paying the defendant for the swaps, Acting U.S. Attorney Rachael A. Honig announced.
Jonathan Katz, 40, of Marlton, New Jersey, is charged by complaint with one count of gaining unauthorized access to a protected computer. He is scheduled to appear before U.S. Magistrate Judge Michael A. Hammer and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In May 2021, Katz, who was employed as a manager at a telecommunications store, used his managerial credentials to access several customer accounts and swapped the SIM numbers associated with the customers’ phone numbers into mobile devices controlled by another individual, enabling this other individual to control the customers’ phones and access the customers’ electronic accounts. This technique is often used to defeat accounts with two-factor authentication including but not limited to email, social media, and financial accounts.
In exchange for the swaps, Katz was paid in Bitcoin, which was traced back to Katz’s cryptocurrency account.
The charge of unauthorized access to a computer carries a statutory maximum of five years in prison and a fine of not more than $250,000 or twice the pecuniary gain to the defendant or twice the gross loss involved, whichever is greatest.
Acting U.S. Attorney Honig 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 arrest.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Cybercrimes Unit in Newark.
Bergen County Man Sentenced to 63 Months in Prison for Distributing and Conspiring to Distribute Crystal MethamphetamineRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 63 months in prison for distributing and conspiring to distribute 50 grams or more of actual methamphetamine, Acting U.S. Attorney Rachael A. Honig announced.
Henry Nieves, 45, of Rutherford, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute 50 grams or more of actual methamphetamine and one count of distributing and possessing with the intent to distribute 50 grams or more of methamphetamine. Judge Hayden imposed the sentence today by videoconference.
According to documents filed in these cases and statements made in court:
In September 2019, Nieves distributed and conspired with others to distribute and possess with intent to distribute crystal methamphetamine in New Jersey. In September 2019, law enforcement officers conducted a controlled purchase of methamphetamine from Nieves. Subsequent laboratory testing showed that the substance contained 55.9 grams of pure methamphetamine. This high purity indicates that Nieves distributed crystal methamphetamine, or “ice,” which is a particularly dangerous form of methamphetamine. In September 2019, law enforcement officers observed Nieves engage in other apparent narcotics transactions, and later seized additional amounts of methamphetamine from Nieves’ belongings, vehicle, and apartment. In all, law enforcement seized approximately 86 grams of methamphetamine from Nieves during the investigation.
In addition to the prison term, Judge Hayden sentenced Nieves to three years of supervised release.
Acting U.S. Attorney Honig 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 in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Mark Pesce of the U.S. Attorney’s Office’s OCDETF/Narcotics Unit in Newark.
Bergen County Company Admits Price Gouging KN95 Masks During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, company today admitted its role in price gouging a chain of New Jersey grocery stores in connection with the sale of KN95 masks during the COVID-19 pandemic, Acting U.S. Attorney Rachael A. Honig announced.
TSC Agency LLC (TSC), a logistics and freight forwarding company based in Mahwah, New Jersey, pleaded guilty by videoconference before U.S. Magistrate Judge Jessica S. Allen to an information charging it with price gouging in violation of the Defense Production Act.
According to documents filed in this case and statements made in court:
In March 2020, TSC and two partners purchased 250,000 KN95 filtering facepiece respirators from a foreign manufacturer. TSC and one of those partners then sold 100,000 masks to a chain of New Jersey grocery stores at prices in excess of prevailing market prices. TSC sold the masks at a price of $5.25 per mask, which amounted to a markup of more than 400 percent from its acquisition cost. Prior to the spread of COVID-19, TSC had no history of selling personal protective equipment.
A violation of the Defense Production Act carries a maximum fine of $200,000, or twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss sustained by any victims of the offense, whichever is greatest. Sentencing for TSC Agency is scheduled for April 13, 2022.
Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Peter Fitzhugh in New York, with the investigation.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the Government Fraud Unit in Newark and Nicholas P. Grippo, Chief of the Criminal Division in Newark.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit: https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Repeat Offender Admits Possessing Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted possessing thousands of images and videos depicting child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Andrew Ramey, 34, of Brick, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
From March 13, 2020, through June 8, 2020, Ramey downloaded and shared material containing images of child sexual abuse, via the BitTorrent Network, a publicly available online peer-to-peer (P2P) file-sharing network of linked computers. Users must download P2P software, which is widely available for free on the Internet. The software allows the user to place files into a designated “shared” folder on his or her hard drive, from which other BitTorrent users can then download those files directly to the “shared” folders of their own computers. Users can then search, select, and directly download, those files.
Law enforcement used investigative software to access the BitTorrent Network and downloaded video files containing images of child sexual abuse from a device or devices assigned to an IP address at Ramey’s residence. On Nov. 13, 2020, law enforcement searched Ramey’s residence and seized mobile phones belonging to Ramey. Analysis revealed the phones contained thousands of images and videos containing images of child sexual abuse, as well as BitTorrent software.
In a prior federal prosecution in 2018, Ramey was convicted of one count of possession of child pornography in the U.S. District Court for the District of New Jersey. For a repeat offender, the possession charge in the information carries a mandatory minimum penalty of 10 years in prison and a statutory maximum penalty of 20 years in prison, along with a fine of $250,000 or twice the gross pecuniary gain or loss, whichever is greater. Sentencing is scheduled for April 12, 2022.
Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations, Atlantic City, under the direction of Special Agent in Charge Jason J. Molina in Newark; detectives of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; the Brick Police Department, under the direction of Chief James Riccio; and the Mount Laurel Police Department, under the direction of Chief Stephen Riedener, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office Criminal Division in Trenton.
Pathology Practice Agrees to Pay $2.4 Million to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – A New Jersey pathology practice will pay $2.4 million to resolve allegations that it violated the False Claims Act by making false representations in connection with submissions to the Centers for Medicare & Medicaid Services (CMS), Acting U.S. Attorney Rachael A. Honig announced today.
According to the government’s contentions in the settlement agreement:
Princeton Pathology Services P.A. (Princeton Pathology) submitted claims to Medicare under Current Procedural Terminology (CPT) code 85390-26 from Jan. 1, 2015, through Dec. 31, 2020. This CPT code requires written analysis by a pathologist, but Princeton Pathology submitted claims using this code without written substantiation in medical records. As a result, Princeton Pathology billed Medicare for analysis of tests that did not require analysis, causing Medicare to significantly overpay.
Contemporaneous with the civil settlement, Princeton Pathology also entered into a three-year Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), which requires, among other things, training, auditing, and monitoring designed to address the conduct at issue in the case as well as evolving compliance risks on an ongoing basis.
“Federal health care programs rely on practitioners to accurately bill for services they perform,” Acting U.S. Attorney Honig said. “The U.S. Attorney’s Office for the District of New Jersey will hold accountable physician practices that seek payment for unnecessary or unsubstantiated services.”
“Submitting claims for unsubstantiated services threatens the integrity of the Medicare program and will not be tolerated,” Scott J. Lampert, HHS-OIG Special Agent in Charge said. “We will continue to protect patients and taxpayers by holding accountable providers who endanger the integrity of federal health care programs and the beneficiaries they serve.”
The allegations arose from a lawsuit filed under the whistleblower provisions of the False Claims Act by Jayant Barai M.D. The False Claims Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. Dr. Barai will receive $456,000 from the federal share of the settlement.
The government’s pursuit of this lawsuit illustrates its efforts to combat healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
Acting U.S. Attorney Honig credited special agents of the HHS-OIG, under the direction of Special Agent in Charge Lampert; 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, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Daniel Meyler of the Health Care Fraud Unit in Newark.
The lawsuit is captioned United States ex rel. Barai v. Princeton Pathology Services, P.A., et al. (D.N.J.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
New York Man Indicted in Credit Card ‘Bust Out’ Scheme to Defraud BanksRead the Press Release
NEWARK, N.J. – A New York man was indicted today by a federal grand jury in connection with a scheme to defraud banks by using stolen and altered identities to fraudulently obtain credit cards and then using those cards to make millions of dollars in charges that were never repaid, Acting U.S. Attorney Rachael A. Honig announced.
Mohammad Mushtaq, 56, of Valley Stream, New York, is charged with one count of conspiring to defraud financial institutions, five counts of bank fraud, one count of access device fraud, and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
Mushtaq and his conspirators engaged in a scheme to use stolen and altered identities to obtain credit cards from financial institutions and then use those credit cards to make purchases that they had no intention to repay, leaving the financial institutions to bear the losses.
Mushtaq and his conspirators used the personal identifying information of people, including dates of birth, drivers’ license numbers, and Social Security numbers, to create “synthetic identities,” sometimes by pairing the name and Social Security number of actual persons with a fictitious birthdate, and sometimes by pairing the person’s Social Security number with a fictitious name and birthdate. They often used the name and Social Security number of a minor and altered the birthdate to make the identity appear to be that of an adult. Mushtaq altered the personally identifying information of his own spouse and minor child in this fashion to create fraudulent identities that were then used in furtherance of the scheme.
Mushtaq and his conspirators used the stolen and synthetic identities to obtain lines of credit, primarily through opening credit card accounts at financial institutions (the “fraud cards”). The fraud cards were maintained in good standing with the financial institutions long enough to establish the creditworthiness of the stolen and synthetic identities. Mushtaq and his conspirators then “busted out” the fraud cards by making large purchases and never repaying the debts.
Mushtaq’s conspirator, Asif Ali, also established numerous purported companies that did little or no legitimate business (the “sham companies”). Mushtaq and Ali used these sham companies to make hundreds of thousands of dollars’ worth of charges to the fraud cards, which were then deposited in bank accounts opened in the sham companies’ names.
The charge of conspiring to defraud financial institutions and the bank fraud charges each carry a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest. The access device fraud charge carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The aggravated identity theft charge carries a mandatory penalty of two years in prison, which must be served consecutively to any other term of imprisonment imposed.
Asif Ali, Tassadiq Hussain, and Shahid Akhtar previously pleaded guilty in connection with their roles in this and related schemes. Ali is awaiting sentencing before U.S. District Judge Anne E. Thompson. Hussain and Akhtar were sentenced by Judge Thompson to 41 months and a sentence of time served, respectively.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s indictment.
The charges in the indictment are merely allegations, and the defendant is presumed to be innocent unless and until convicted.
The government is represented by Acting U.S. Attorney Rachael A. Honig.
Jersey City Gang Member Admits Gang-Related ShootingRead the Press Release
NEWARK, N.J. – A member of a neighborhood street gang that identifies as “300” operating in Hudson County, New Jersey, today admitted his role in a gang-related shooting, Acting U.S. Attorney Rachael A. Honig announced.
Marc Taylor, aka “Bando,” 20, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of aggravated assault with a dangerous weapon in aid of racketeering and one count of discharging a firearm during and in relation to a crime of violence.
According to documents filed in this case and statements made in court:
On the July 7, 2020, Taylor and two others, all of whom are associated with violent street gangs in Jersey City, drove to rival gang territory and approached a group of individuals standing on a sidewalk. Taylor fired numerous rounds with a .45 caliber handgun through the front passenger seat window while another individual simultaneously attempted to fire a Tec-9 assault pistol through the sunroof. A 12-year-old was shot in the leg. This targeted assault in rival gang territory was a retaliation for prior gang violence.
The count of assault with a dangerous weapon in aid of racketeering activity is punishable by a maximum of 20 years in prison. The count of discharging a firearm during a crime of violence carries a mandatory minimum of 10 years in prison and a maximum sentence of life, which must run consecutively to any term of imprisonment imposed on any other charges.
Acting U.S. Attorney Honig credited the Jersey City Police Department, under the direction of Public Safety Director James Shea; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge Jeffrey Matthews in Newark, with the investigation leading to today’s guilty plea.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Desiree Grace, Deputy Chief of the Criminal Division for the U.S. Attorney’s Office for the District of New Jersey
Convicted Felon Charged with Trying to Bring Loaded Gun on Plane at Newark Liberty International AirportRead the Press Release
NEWARK, N.J. – A Sandy Springs, Georgia, man appeared in federal court today to face weapons charges after allegedly trying to get a firearm through security at Newark Liberty International Airport, Acting U.S. Attorney Rachael A. Honig announced.
Desmond Herring, 48, is charged by complaint with one count of carrying a weapon on an aircraft and one count of possession of a firearm and ammunition by a convicted felon. He appeared by videoconference this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was released on $100,000 unsecured bond, with home confinement and GPS monitoring.
According to documents filed in this case and statements made in court:
On Nov. 29, 2021, Herring submitted a carry-on bag for inspection at Newark Liberty International Airport. During the x-ray screening of Herring’s luggage, a Transportation Security Administration (TSA) agent identified ammunition and a suspected firearm and contacted the Port Authority Police Department. Upon seeing that his bag had attracted additional attention, Herring left the security checkpoint area without his bag and walked to a departure gate for his flight to Atlanta, Georgia.
Further investigation of Herring’s bag revealed that it contained a 9 millimeter pistol, 10 rounds of 9 millimeter ammunition loaded into a magazine, and three boxes of ammunition that each contained 50 rounds of 9 millimeter ammunition. Herring was prohibited from possessing a firearm due to a 2010 federal conviction for conspiracy to distribute controlled substances.
Both charges in the complaint carry a maximum potential penalty of 10 years in prison.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and officers of the Port Authority Police Department, under the direction of Superintendent Edward Cetnar, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Two New Jersey Men Admit Possessing with Intent to Distribute over One Kilogram of FentanylRead the Press Release
NEWARK, N.J. – An Essex County man and a Hudson County man admitted possessing with intent to distribute over a kilogram of fentanyl, Acting U.S. Attorney Rachael A. Honig announced today.
Coco Latre, 32, of Belleville, New Jersey, pleaded guilty today before U.S. District Judge Kevin McNulty to an information charging him with possession with intent to distribute over one kilogram of fentanyl. Bryant Agurto, 33, of Hoboken, New Jersey, pleaded guilty by videoconference before Judge Kevin McNulty on Nov. 10, 2021, to an information that charged him with possession with intent to distribute over one kilogram of fentanyl.
According to documents filed in this case and statements made in court:
On March 5, 2021, Agurto travelled from Hoboken to Latre’s residence in Belleville to retrieve fentanyl that had been packaged by Latre. After Agurto left Latre’s residence, law enforcement officers conducted a motor vehicle stop of Agurto’s car and found the package of fentanyl. Shortly thereafter, law enforcement officers searched Latre’s residence and recovered more fentanyl, seizing a total of 1.6 kilograms of fentanyl from the car and residence.
The offense to which Agurto and Latre pleaded guilty carries a mandatory minimum term of 10 years in prison, a maximum penalty of life in prison, and a fine of $10 million. Sentencing for Latre is scheduled for April 12, 2022. Sentencing for Agurto is scheduled for March 23, 2022.
Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ray A. Mateo of the Opioid Abuse Prevention and Enforcement Unit in Newark.
Former Owner and CEO of Pharmaceutical Company Charged with EmbezzlementRead the Press Release
NEWARK, N.J. – The former chief executive officer and owner of a pharmaceutical company was arrested this morning for embezzling millions of dollars from the company, Acting U.S. Attorney Rachael A. Honig announced.
John Klein, 75, of Palisades Park, New Jersey, is charged by complaint with one count of wire fraud. Klein is scheduled to appear by videoconference today before U.S. Magistrate Judge Michael A. Hammer.
According to the documents filed in this case and statements made in court:
Klein was the majority shareholder and CEO of a pharmaceutical company. In July 2016, Klein hired as chief financial officer an individual who created a profit and loss statement showing the pharmaceutical company’s sales and corresponding receivables. According to that individual, Klein provided information that included an account receivable of approximately $3.9 million from a customer that had not been collected. In December 2016 and January 2017, the pharmaceutical company, with Klein’s knowledge and approval, put a reserve against the uncollected receivable in the financial statements.
Klein controlled and used a pre-existing pharmaceutical company bank account. A review of that account revealed that the approximately $3.9 million was transferred into the bank account in May 2016. In a June 2016 email, Klein acknowledged that the invoices related to the approximately $3.9 million had been paid in full. A review of the company bank account also showed that following the wire transfers of approximately $3.9 million, Klein made numerous personal expenditures out of the account, including credit card payments for his himself and his wife, payment of property taxes, and tuition payments for his child’s private school.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross profits or twice the gross loss suffered by the victims of his offense, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Anthony Torntore and Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Camden Man Sentenced to Ten Years in Prison for Illegal Possession of WeaponRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 120 months in prison for unlawfully possessing a firearm and ammunition, Acting U.S. Attorney Rachael A. Honig announced.
Marshall Onuorah, 32, of Camden, was convicted at trial in June 2021of one count of possession of a firearm and ammunition by a previously convicted felon. The jury deliberated two hours before returning the guilty verdict following a four-day trial before U.S. District Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and the evidence at trial:
On Jan. 29, 2020, Camden County police officers patrolling in their marked patrol car observed Onuorah, a previously convicted felon, appearing to use his hands to conceal an object from the officers’ view. As one of the officers exited the car to approach Onuorah, Onuorah fled. Both officers pursued Onuorah on foot for several blocks before Onuorah surrendered. During his flight, Onuorah discarded a 50-round drum magazine loaded with 46 rounds of ammunition and a firearm with a Glock slide and polymer frame that had been modified to fire as an automatic weapon.
In addition to the prison term, Judge Hillman sentenced Onuorah to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Camden Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; officers of the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Grace C. MacAulay, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Jeffrey Bender and Senior Trial Counsel Jason Richardson of the U.S. Attorney’s Office in Camden.
Monmouth County Man Admits Role in Gun Trafficking Conspiracy and Distribution of CocaineRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted distributing cocaine in Monmouth County and conspiring to illegally sell firearms, including multiple handguns and a semi-automatic rifle, in and around Monmouth and Ocean counties, Acting U.S. Attorney Rachael A. Honig announced.
Enrique Quijada, 24, aka “El Enano 13,” aka “Kike,” of Freehold, New Jersey, pleaded guilty by videoconference before U.S. District Judge Anne E. Thompson to a superseding information charging him with one count of conspiracy to engage in firearms trafficking, one count of possession of a firearm by an alien unlawfully present in the United States, and one count of distribution of cocaine.
According to documents filed in this case and statements made in court:
From May 2020 through September 2020, Manuel Espinosa-Ozoria, Waldin Espinosa-Ozoria, Enrique Quijada, Javier Rodriguez-Valpais, and Jacquelyn DeJesus were members of a gun trafficking conspiracy that spanned from Florida to New Jersey. DeJesus allegedly assisted Manuel Espinosa-Ozoria – the alleged leader of the conspiracy – by acting as a “straw purchaser” of firearms in Florida. Manuel Espinosa-Ozoria and DeJesus then transported the firearms from Florida to Monmouth County, where members of the conspiracy, including Quijada, sold the firearms to individuals working at the direction and supervision of the FBI. Rodriguez-Valpais sold a .223 caliber semi-automatic rifle to Quijada, who in turn sold the rifle to an individual working at the direction and supervision of the FBI. In addition to gun trafficking, Quijada admitted selling cocaine to an individual working at the direction and supervision of the FBI.
Three other members of the gun trafficking conspiracy – Javier Rodriguez-Valpais, Waldin Espinosa-Ozoria, and Jacquelyn DeJesus – previously have pleaded guilty in connection with this case. The charges against Manuel Espinosa-Ozoria remain pending.
The count of conspiracy to engage in firearms trafficking carries a maximum potential penalty of five years in prison and a $250,000 fine. The count of possession of a firearm by an alien unlawfully present in the United States carries a maximum penalty of 10 years in prison and a $250,000 fine. The court of distribution of cocaine carries a maximum penalty of 20 years in prison and $1 million fine. Quijada’s sentencing is scheduled for April 5, 2022.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked the FBI Tampa Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark and Tampa Field Divisions, and the Freehold Borough, New Jersey, police department for their assistance in the investigation.
In July 2021 the U.S. Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C. According to gun trace data, a significant number of firearms recovered in the New York/northern New Jersey area originate from outside the area. The new strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in the New York/northern New Jersey area with their counterparts in those other locations.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.
For the defendant whose charges remain pending, the charges and allegations are merely accusations, and he is presumed innocent unless and until proven guilty.
Leader of Bayshore Area Drug Trafficking Organization Sentenced to 200 Months in PrisonRead the Press Release
TRENTON, N.J. – A Monroe County, Pennsylvania man was sentenced today to 200 months in prison for his role in distributing large quantities of heroin and cocaine in the Bayshore area of Monmouth and Middlesex counties, Acting U.S. Attorney Rachael A. Honig announced today.
Guy Jackson, 49, of Effort, Pennsylvania, previously pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin. Jackson also admitted to conspiring to distribute and possess with intent to distribute a quantity of cocaine. Judge Martinotti imposed the sentence today via videoconference.
Today’s sentence follows a coordinated takedown in November 2018 of 15 defendants charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine. To date, 13 defendants have pleaded guilty. Supplier Gregory Gillens was sentenced on Sept. 8, 2020, to 10 years in prison. Co-defendant Daniel McHugh was sentenced to 90 months in prison; co-defendant David Nagy was sentenced to one year and one day in prison; co-defendant Shavar Williams was sentenced to time served, which amounted to approximately 14 months in prison; co-defendant Daryl Jackson was sentenced to five years’ probation with 10 months of home detention; and co-defendant Brian Hall was sentenced to three years’ probation with eight months of home detention. Co-defendants Krystal Cordoba, Daniel Alfano, Tyler Scarangello, Christy Dube, Richard Gethers, and Lashawn Mealing are awaiting sentencing. Defendant Deberal Rogers has been indicted, and charges were dismissed against one defendant.
According to documents filed in this case and statements made in court:
From May 2017 to November 2018, Jackson and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region of Middlesex and northern Monmouth counties. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Jackson regularly supplied large quantities of heroin and cocaine for further distribution. Some of the heroin distributed by the conspiracy contained fentanyl, a dangerous synthetic opioid.
In addition to the prison terms, Judge Martinotti sentenced Jackson to five years of supervised release. Four vehicles that Jackson used in the course of the drug conspiracy, as well as in excess of $10,000 in cash that Jackson admitted was proceeds of drug trafficking, were previously seized and administratively forfeited.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff’s Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge George M. Crouch, Jr.; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Matawan Police Department, under the direction of Chief Thomas J. Falco, Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Acting Monmouth County Prosecutor Lori Linskey; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief Wayne Davis; the Hazlet Police Department, under the direction of Chief Ted A. Wittke; and the Aberdeen Police Department, under the direction of Chief Alan Geyer, with the investigation leading to this week’s sentencings.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendant are merely accusations, and she is presumed innocent unless and until proven guilty.
Healthcare System to Pay $150,000 to Settle Controlled Substances Act AllegationsRead the Press Release
NEWARK, N.J. – A nonprofit healthcare system that owns and operates a network of healthcare entities has agreed to pay $150,000 to resolve allegations that it violated the Controlled Substances Act, Acting U.S. Attorney Rachael A. Honig announced today.
According to documents filed in this case and the contentions of the United States contained in the settlement agreement:
In July 2016, Virtua Health Inc., which owned and operated Virtua Voorhees Hospital through a subsidiary, reported to the Drug Enforcement Administration (DEA) that 400 tablets of oxycodone 30mgs had been lost or stolen from the inpatient pharmacy at the hospital. An investigation conducted by diversion investigators from the DEA revealed that from Oct. 8, 2015, through Nov. 2, 2016, Virtua Health failed to keep an accurate inventory of controlled substances, failed to keep the controlled substances in a secure location, and failed to properly supervise its employees concerning the controlled substances.
Acting U.S. Attorney Honig credited diversion investigators of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to the agreement.
The government is represented by Assistant U.S. Attorney Kruti D. Dharia of the U.S. Attorney’s Opioid Abuse Prevention and Enforcement Unit in Newark.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Texas Man Sentenced to 12 Years in Prison for Defrauding Business Opportunity Buyers of More Than $5 MillionRead the Press Release
CAMDEN, N.J. – A Dallas, Texas, man was sentenced today to 144 months in prison for his role in orchestrating and operating a fraudulent scheme to sell medical-related business opportunities, causing a loss of more than $5 million, Acting U.S. Attorney Rachael A. Honig announced.
David Weinstein, 62, formerly of Cherry Hill, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with conspiracy to commit wire fraud and money laundering. Judge Kugler imposed Weinstein’s sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From December 2015 through November 2020, Weinstein and his conspirators, Vijay Reddy and Kevin Brown, advertised business opportunities for sale on various websites. They purported to sell “blocks” of contracts with medical providers who allegedly wanted to outsource their medical billing, collections, appeals, answering, credentialing, or transcription functions. The buyers would then provide the contracted services to the medical providers and earn a profit. The conspirators promised to deliver a specified number of providers and pledged that their proprietary marketing efforts would provide a guaranteed client base to the buyers.
To induce buyers to purchase the business opportunities, the conspirators created fake references purporting to be buyers who vouched for their prior business purchases from the conspirators. In fact, the references were Weinstein, Reddy, and their friends and family members, and they used aliases and disguised phone numbers to speak with potential buyers.
After agreeing to purchase the blocks of medical providers, victims entered contracts with companies represented by Weinstein or Reddy and wired down payments ranging from $15,000 to $240,000 to accounts controlled by Weinstein or Brown. The remainder of each purchase price was payable when the conspirators fulfilled the contract by delivering the agreed-upon number of providers.
After receiving the down payments, Weinstein and Reddy typically delivered to each victim only a small number of medical providers. Despite not fulfilling the contracts of any of the buyers identified by law enforcement, the conspirators continued to sell blocks of medical providers to new buyers and refused to provide refunds for their failures to satisfy the terms of the contracts. The conspirators also periodically sold batches of previously signed contracts and disclaimed further responsibility for those contracts to insulate themselves from complaints or legal action from disgruntled buyers.
Brown acted as the business broker for most of the transactions and received a commission for the sales he brokered. Reddy or Weinstein acted as the seller and signed the contracts with the victims. Approximately 90 victims sent more than $5 million to accounts controlled by the defendants. The defendants spent the victims’ money on personal expenses, including a travel, jewelry, real estate, a wedding and a college education, and other business investments.
In addition to the prison term, Judge Kugler sentenced Weinstein to three years of supervised release and ordered him to pay $5.85 million in restitution. The court also ordered Weinstein to forfeit $1.98 million.
Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Diana V. Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
Vijay Reddy pleaded guilty in June 2021 to an information charging him with conspiracy to commit wire fraud and wire fraud and is awaiting sentencing.
The charges and allegations in the criminal complaints against Brown are merely accusations, and he is presumed innocent unless and until proven guilty.
Monmouth County Felon Charged with Impersonating DEA Agent and Possessing HandgunRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was arrested today for impersonating a federal agent and illegally possessing a firearm as a convicted felon, Acting U.S. Attorney Rachael A. Honig announced.
Wesley Rucker, 34, of Tinton Falls, New Jersey, is charged by complaint with one count of possession of a firearm by a convicted felon, one count of impersonating a federal agent, and one count of possession of an imitation badge. He is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Tonianne J. Bongiovanni.
According to documents filed in this case and statements made in court:
On Oct. 22, 2021, Rucker sought treatment in the emergency room of a Red Bank, New Jersey, hospital. Hospital personnel noticed that Rucker had a handgun in his waistband. Rucker told hospital security personnel that he was a member of law enforcement and displayed a Drug Enforcement Administration (DEA) identification. Hospital security had Rucker store his handgun in a locker in the hospital’s security office. Hospital personnel contacted the Red Bank Police Department after becoming suspicions of Rucker’s claimed affiliation with federal law enforcement. Responding officers confronted Rucker, and he told the officers that he was a “DEA agent.” Rucker displayed the same DEA identification to the officers. As the officers were investigating Rucker’s claims, Rucker attempted to leave the hospital without his handgun. Officers took Rucker into custody and seized the fake identification along with a fake DEA badge that Rucker had not used. Officers learned that Rucker was a previously convicted felon who had no prior affiliation with the DEA.
The felon in possession of a firearm charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000. The impersonation of a federal agent charge carries a maximum penalty of three years in prison, and a fine of up to $250,000. The possession of an imitation badge charge carries a maximum penalty of six months in prison, and a fine of up to $5,000.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews; officers of the Red Bank Police Department, under the direction of Chief Darren McConnell; members of the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Lori Linskey; special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson; officers of the Old Bridge Police Department, under Acting Chief Joseph P. Mandola Jr.; and officers of the Matawan Police Department, under the direction of Chief Thomas J. Falco, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Christopher Matthews of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Jersey City Man Found Guilty of Being Felon in Possession of a Firearm While Distributing HeroinRead the Press Release
NEWARK, N.J. – A Jersey City man was found guilty today of being a felon in possession of a firearm and carrying a firearm to facilitate distribution of heroin on the streets of New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Raymond Petway, 38, was convicted of one count of possession with intent to distribute heroin, one count of being a felon in possession of a firearm, and one count of possession of a firearm in furtherance of drug trafficking following a three-day trial before U.S. District Judge Kevin McNulty in Newark federal court.
According to documents filed in this case and the evidence at trial:
On Sept. 21, 2017, law enforcement officers from the Jersey City Police Department observed the Petway, a convicted felon, selling heroin at Woodlawn Avenue and Martin Luther King Boulevard in Jersey City while in possession of a loaded and stolen High-Point 9mm handgun.
The count of possession with intent to distribute heroin carries a maximum potential penalty of 20 years in prison. The count of being a felon in possession is punishable by a maximum of 10 years in prison. The count of possessing a firearm in furtherance of drug trafficking is punishable by a mandatory minimum term of five years in prison and a maximum of life in prison, which must run consecutively to the term imposed for the drug trafficking count. Sentencing has not yet been scheduled.
Acting U.S. Attorney Honig credited the Jersey City Police Department, under the direction of Public Safety Director James Shea; special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; and the Hudson County Prosecutors Office Forensic Laboratory, under the direction of Hudson County Prosecutor Esther Suarez, with the investigation leading to today’s guilty verdict.
This is a Project Safe Neighborhoods (PSN) case. PSN is designed to create and foster safer communities through a sustained reduction in violent crime. The program’s effectiveness depends upon the ongoing coordination, cooperation, and partnerships of local, state, tribal, and federal law enforcement agencies and community organizations working together with the communities they serve – engaged in a unified approach coordinated by the U.S. Attorney in all 94 districts.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden and Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office National Security Unit in Newark.
Former Chief Financial Officer and Former Head of Corporate Communications of $21 Billion Biopharmaceutical Company Arrested for Insider TradingRead the Press Release
NEWARK, N.J. – The former chief financial officer and the former head of corporate communications for a biopharmaceutical company were arrested for their roles in an insider trading scheme, Acting U.S. Attorney Rachael A. Honig announced today.
Usama Malik, 47, and Lauren S. Wood, 33, both of Washington, D.C., are charged by complaint with securities fraud. Malik and Wood were both arrested on Dec. 1, 2021. Malik is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Zia Faruqui in Washington, D.C., federal court. Wood is scheduled to appear this afternoon before U.S. Magistrate Judge John F. Anderson in Alexandria, Virginia, federal court.
According to documents filed in this case and statements made in court:
From 2018 through October 2020, Malik was the chief financial officer (CFO) of a New Jersey-based biopharmaceutical company listed on the NASDAQ Stock Exchange. On April 6, 2020, Company-1 publicly announced for the first time that its breast cancer drug – an antibody-based drug designed to treat certain breast cancer patients who had very limited treatment options beyond chemotherapy – had proven effective in pre-market clinical trials. In October 2020, Biopharmaceutical Company-2 acquired Company-1 for approximately $21 billion.
As Company-1’s CFO, Malik was among the first, and one of the few, employees who received the material non-public information about the breast cancer drug before the April 6, 2020 announcement. Within minutes of obtaining that information, Malik passed it along to Wood, who lived with Malik at the time and was formerly the head of corporate communications for Company-1. Malik also provided the non-public information to a number of his relatives. Before April 6, 2020, and within hours of receiving the insider information from Malik, Wood placed an order for approximately 7,000 shares of Company-1 stock, despite the fact that Company-1 stock had recently been downgraded by financial experts. After Company-1 announced on April 6, 2020, that its cancer drug had proven effective in pre-market clinical trials, Company-1’s stock price increased. After selling her shares, Wood more than doubled her investment, realizing gross profits of $213,618, and returning $65,000 to Malik.
The securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint today based on the same conduct.
Acting U.S. Attorney Honig 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. She also thanked the SEC Enforcement Division, under the leadership of Director Gurbir S. Grewal, and the FBI, in the District of Columbia and the Eastern District of Virginia, for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit and Deputy Chief of the Criminal Division Osmar J. Benvenuto.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Essex County Postal Employee Arrested for Mail TheftRead the Press Release
NEWARK, N.J. – A U.S. Postal Service (USPS) employee was arrested today for stealing mail, including stealing credit cards and stimulus checks from the U.S. Department of the Treasury, Acting U.S. Attorney Rachael A. Honig announced.
Parrish Brookins, 29, of East Orange, New Jersey, is charged by complaint with one count of mail theft by a Postal Service officer or employee. He appeared this afternoon via videoconference before U.S. Magistrate Judge Jessica Stein Allen in Newark federal court and was released on $50,000 bond.
According to documents filed in this case and statements made in court:
From January 2021 to July 2021, certain credit cards addressed to third-party victims and mailed to addresses on postal routes in Verona and Montclair, New Jersey, were stolen on or about the same dates that Brookins was delivering mail on those routes. These credit cards subsequently were activated by Brookins and others and used to make and attempt to make fraudulent purchases in New Jersey and elsewhere. From at least March 2021 to September 2021, Brookins also stole stimulus checks issued by the U.S. Department of Treasury likewise addressed to third-party victims and mailed to addresses on postal routes in Verona covered by Brookins, who then provided these checks to others for fraudulent purposes.
The mail theft charge is punishable by a maximum potential penalty of five years in prison and a maximum $250,000 fine.
Acting U.S. Attorney Honig credited 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 postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s arrest. She also thanked special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, for its assistance.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions 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.
Union County Man Sentenced to 70 Months in Prison for Receipt of Child PornographyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 70 months in prison for receiving images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Joseph Hinksmon, 42, of Cranford, New Jersey, previously pleaded by videoconference before U.S. District Judge Claire C. Cecchi to one count of an indictment charging him with receipt of child pornography. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From July 10, 2019, through July 24, 2019, Hinksmon accessed the internet to download and receive videos and images of child sexual abuse to his personal hard drive. Hinksmon’s computer devices contained more than 600 images of child sexual abuse that Hinksmon had downloaded from the internet, including images of prepubescent children.
In addition to the prison term, Judge Cecchi sentenced Hinksmon to 10 years of supervised release and ordered him to pay restitution of $75,000.
Acting U.S. Attorney Rachael A. Honig 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 Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Middlesex County Woman Sentenced to Six Years in Prison for $1.7 Million Bank Fraud SchemeRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, woman was sentenced today to 72 months in prison for orchestrating a $1.7 million bank fraud scheme that involved writing fraudulent business checks, Acting U.S. Attorney Rachael A. Honig announced.
Tammy L. Martinez, 49, of South Amboy, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging her with one count of bank fraud. Judge Cecchi imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
From January 2014 through March 2019, Martinez served as an office manager and bookkeeper for a New Jersey based company. Beginning in January 2014, Martinez used her position at the company to issue fraudulent checks made payable to herself or cash and forged the signature of her manager on the fraudulent company checks. Martinez converted the fraudulent company checks into cash at bank branches in New Jersey. The scheme allowed Martinez to embezzle hundreds of thousands of dollars every year for more than half a decade, resulting in approximately $1.78 million in losses.
In addition to the prison term, Judge Cecchi sentenced Martinez to five years of supervised release and ordered her to pay restitution of $1.78 million.
Acting U.S. Attorney Honig credited special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney in Newark, and the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jamel Semper, Chief of the U.S. Attorney’s Office Organized Crimes and Gangs Unit.
Former Chief Lending Officer of New Jersey Bank Sentenced to 18 Months in Prison for Making False Statements to United States to Secure Federal Guarantees on LoansRead the Press Release
TRENTON, N.J. – A Pennsylvania man was sentenced today to 18 months in prison for securing a federal guarantee on certain loans by making false statements to the Small Business Administration (SBA) about the creditworthiness of those loans while serving as the chief lending officer of a New Jersey bank, Acting U.S. Attorney Rachael A. Honig announced.
James Bortolotti, 53, previously pleaded guilty before U.S. District Judge Michael Shipp in Trenton federal court to an information charging him with one count of knowingly making false statements for the purpose of influencing the action of the SBA. Judge Shipp imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
While serving as the chief lending officer of a New Jersey bank (Bank-1), Bortolotti became aware of a Small Business Administration lending program to incentivize lenders, including banks, to loan money to small businesses by providing a 75 percent SBA-backed guarantee on loans. When a lender applies an SBA guarantee on a loan, the lender must disclose information related to the creditworthiness of the small business. Bank-1 hired a consulting firm to help the bank apply for SBA-backed guarantees.
On Feb. 29, 2012, a consultant from the consulting firm submitted an application to the SBA for a guarantee of approximately $3.75 million on loans totaling approximately $5 million made to a small business located in Robbinsville, New Jersey. The application contained false information related to the creditworthiness of the business. Bortolotti knew the application contained false information, but he nevertheless reviewed and signed the application on behalf of the bank.
In addition to the prison term, Judge Shipp sentenced Bortolotti to three years of supervised release and ordered him to pay restitution of $3.17 million to the SBA.
Acting U.S. Attorney Honig credited special agents of the SBA-Office of the Inspector General (SBA-OIG), Eastern Region, under the direction of Special Agent in Charge Amaleka McCall-Brathwaite; the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Inspector General Jay N. Lerner; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., Chief of the U.S. Attorney’s Office Health Care Fraud Unit in Newark.
New York Man Sentenced to Two Years in Prison for Possessing Firearm as Previously Convicted FelonRead the Press Release
TRENTON, N.J. – A New York man with prior felony convictions was sentenced today to 24 months in prison for illegally possessing a firearm, Acting U.S. Attorney Rachael A. Honig announced.
Kevon Belfon, 35, of Jamaica, New York, previously pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of being a felon in possession of a firearm. Judge Shipp imposed the sentenced today in Trenton federal court.
According to documents filed in this case and statements made in court:
On July 24, 2020, Belfon knowingly possessed a Taurus 9-millimeter semi-automatic handgun loaded with 10 rounds of ammunition in his vehicle in Stafford Township, New Jersey. Belfon has two prior felony convictions, one of which involved a firearm. As a previously convicted felon, Belfon is not permitted to possess firearms.
In addition to the prison term, Judge Shipp sentenced Belfon to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Field Division, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews; and the Stafford Township Police Department, under the direction of Chief of Police Thomas Dellane, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the Criminal Division in Trenton.
Monmouth County Man Sentenced to 87 Months in Prison for Using Facebook to Induce Minor to Send Sexually Explicit Pictures and VideosRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey man, was sentenced today to 87 months in prison for knowingly receiving child pornography, Acting U.S. Attorney Rachael A. Honig announced.
Herman Christopher Jensen, 68, of Union Beach, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to a one-count information charging him with knowingly receiving child pornography. Judge Sheridan imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
The FBI began investigating Jensen for assuming the identity of a 17-year-old boy in order to entice and solicit an underage girl to send nude and sexually explicit images over the internet. Jensen did this by creating a fake Facebook account, purporting to be a teenaged boy named “Kevin Bennett.” From January 2018 through about August 2018, Jensen used the “Kevin Bennett” Facebook account to communicate with the minor victim frequently, causing her to believe that she was involved in a romantic relationship with “Kevin Bennett.”
Jensen requested nude and semi-nude photographs from the victim minor through Facebook’s messenger service. As time went on, Jensen received increasingly explicit videos depicting the minor victim engaging in sexually explicit activity. In August of 2018, Jensen revealed to the minor victim that he was not, in fact, the 17 year-old teenager he purported to be, but instead an adult named Chris Jenson. The victim continued to communicate with Jensen via the “Chris Jensen” Facebook account. In December 2018, the minor victim traveled to New Jersey to live with Jensen.
On Dec. 19, 2018, local authorities became involved in the matter causing the removal of the victim from Jensen’s residence.
In addition to the prison term, Judge Sheridan sentenced Jensen to lifetime supervised release.
Acting U.S. Attorney Honig credited special agents and task force officers of the FBI and the Red Bank Resident Agency’s Jersey Shore Gang and Criminal Organization Task Force, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s sentencing. She also thanked the Union Beach Police Department, under the direction of Chief of Police Michael J. Woodrow, and the New Jersey Division of Child Protection and Permanency, for their assistance.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Frauds Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.