District of New Jersey

NEWARK, N.J. – A Paterson Police officer was indicted today for physically assaulting a victim and then attempting to cover it up, U.S. Attorney Philip R. Sellinger announced.

Kevin Patino, 29, of Paterson, New Jersey, is charged by indictment with one count of conspiracy against rights by depriving a man of his constitutional right to be free from the use of unreasonable force by law enforcement officers, one count of deprivation of rights under color of law and two counts of falsification of records in connection with that incident.

According to documents filed in this case:

At approximately 12:30 a.m. on Dec. 14, 2020, Patino and a conspirator approached the victim, who was walking with his hands in his pockets in Paterson. Patino grabbed the victim.  When the victim attempted to separate himself, Patino struck the victim in the face and body numerous times. During the altercation with victim, the conspirator picked the victim up and threw him to the ground. Patino then repeatedly struck the victim while he was on the ground.      

Patino filed police reports, which contained numerous false statements and omissions, regarding the arrest of the victim.

The violation of civil rights and conspiracy to violate civil rights charges each carry a maximum penalty of 10 years in prison. The false records counts each carries a maximum penalty of 20 years in prison. The maximum fine for each of the charges is $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent In Charge George M. Crouch Jr. in Newark; the New Jersey Attorney General’s Office; under the direction of acting Attorney General Andrew J. Bruck; the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; and the North Jersey Public Corruption Task Force composed of members of FBI and New Jersey State Police.

The government is represented by Assistant U.S. Attorney Joseph Gribko.

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

NEWARK, N.J. – Nine members of a drug trafficking organization were charged today in a superseding indictment for their roles in a heroin, fentanyl, and crack cocaine distribution scheme that sold hundreds of thousands of dollars’ worth of illegal drugs out of a residential building on Fairmount Avenue in Newark, U.S. Attorney Philip R. Sellinger announced.

The 34-count superseding indictment charges all defendants with conspiracy to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and 280 grams or more of crack from July 2020 through June 2021. All defendants are charged with at least one count of distribution and possession with the intent to distribute controlled substances from purchases recorded by the FBI and from drug transactions observed by local law enforcement. The defendants were originally charged by complaint and arrested on June 29, 2021. Seven of the defendants have been detained since June. (See chart below)

Three of the defendants – Kasim Thurston, Jamar Hall, and Angel Kearney – are charged with firearms violations for possessing firearms and ammunition while having been previously convicted of a felony offense. Hall and Kearney were also charged with possessing a firearm in furtherance of a drug trafficking crime.

Three other members of the drug organization have previously entered guilty pleas. Elijah Shumate, 50, of Newark, pleaded guilty before U.S. District Judge Brian R. Martinotti on Jan. 13, 2022, to conspiracy to distribute 100 grams or more of heroin. Andre Fuller, 31, of Caldwell, New Jersey, pleaded guilty before Judge Martinotti on Jan. 10, 2022, to conspiracy to distribute 100 grams or more of heroin. Antwan Williams, 30, of Newark, pleaded guilty before Judge Martinotti on Dec. 9, 2021, to conspiracy to distribute one kilogram or more of heroin.

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

The defendants allegedly took advantage of the residential building’s location to sell drugs from the porch area, which was guarded by a locked steel door and difficult for law enforcement to infiltrate despite a constant stream of buyers approaching the front porch area day and night. Defendants stored drugs and guns in apartments that they controlled.

The defendants worked in shifts from 6:00 a.m. until late in the evening. Buyers came on foot, in vehicles and on bicycles to purchase the illegal drugs. The heroin sold was of a high quality and was sold in various “brands,” which were stamped onto the glassine envelopes that contained the heroin and fentanyl, allowing buyers to identify and purchase the brands that they preferred. FBI surveillance and local law enforcement witnessed hundreds of narcotics transactions from July 2020 through June 2021.

The count of conspiracy to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and 280 grams or more of crack cocaine carries a minimum sentence of 10 years in prison, a maximum of life in prison and a maximum fine of $10 million. The charges of distribution and possession with the intent to distribute heroin, fentanyl and crack cocaine carry a maximum sentence of 10 years in prison and a maximum fine of $1 million; 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; and the charge of possession of a firearm in furtherance of a drug trafficking crime carries a minimum sentence of five years in prison, a maximum sentence of life in prison, and a maximum fine of $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges and guilty pleas. He 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, officers of the East Orange and Bloomfield police departments, and the Essex County Department of Corrections for their assistance with the investigation.

Three other organization members are charged by complaint and their cases are pending. The charges and allegations contained in the complaint and superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The government is represented by Senior Trial Counsel Robert Frazer of the Organized

Crime/Gangs Unit in the Criminal Division in Newark.

 

*denotes free on bail

Defendant

Age

Residence

Charge

Counts

Angel Kearney, aka “Jim,” aka “Dred”

31

East Orange, New Jersey

Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine; possession of a firearm by a convicted felon; possession of a firearm in furtherance of a drug trafficking crime

1, 21, 26, 27, 29, 30, 31 and 32

Thomas Gibson, aka “Tommy,”

44

Newark

Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine;

1, 6, 13, 18, 19, 20 and 34

Jamar Hall, aka “Goo”

35

Hamilton, New Jersey

Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine; possession of a firearm by a convicted felon; possession of a firearm in furtherance of a drug trafficking crime

1, 21, 22, 23,and 25

Kasim Thurston, aka “Kai,” aka “Kaz”

37

Newark

Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine possession of a firearm by a convicted felon; possession of a firearm in furtherance of a drug trafficking crime

1, 12, 15, 17 and 33

Ibn Thurston, aka “Wheezy,” aka “Saheed”

33

Newark

Conspiracy to distribute heroin, fentanyl, and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine

1 and 7

*Kevin Hall

31

Newark

Conspiracy to distribute heroin, fentanyl, and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine

1, 3, 8, 24, and 28

Akim Gibson, aka “Ching”

24

Newark

Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine

1, 11, 12, and 14

*Shalamar McCall, aka “Shaggy”

 

34

Newark

Conspiracy to distribute heroin, fentanyl, and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine

1, 9, and 10

Hakis Moses, aka “Hak”

43

Newark

Conspiracy to distribute heroin, fentanyl, and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine

1, 2, 4, and 5

 

CAMDEN, N.J. – The president and CEO of a commercial diving school was sentenced today to 27 months in prison for fraudulently obtaining funding from the U.S. Department of Education (DOE) and the U.S. Department of Veterans Affairs (VA) for the school and its students, U.S. Attorney Philip R. Sellinger announced.

Tamara Brown, 58, of Haddon Heights, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging her with one count of wire fraud. Judge Rodriguez imposed the sentence today by videoconference.

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

From January 2012 through July 2018, Brown owned a private, for-profit commercial diving school, which offered educational programs in commercial diving and underwater welding and salvage. As a for-profit institution, the diving school was required to be accredited through an approved accreditation body to be eligible to receive tuition funds from the DOE’s Higher Education Act’s programs. The VA also relies upon the accreditation in evaluating the eligibility of veteran students to receive student aid funding. Given that more than 80 percent of the diving school’s students received financial assistance from the Department of Education, the school stood to lose its largest source of tuition funding for its students if it lost its accreditation.

Prior to 2012, the diving school had been properly accredited. However, when renewing the diving school’s accreditation that year, Brown submitted fraudulent information to the accrediting authority. For example, Brown reported rates of employment of the school’s graduates of between 81 to 84 percent, when the employment rates were closer to 50 to 60 percent, significantly lower than the rate required to maintain accreditation. Brown also provided fraudulent information pertaining to the school’s holding of “advisory board” meetings required for accreditation to ensure that the school’s curriculum would educate students to meet the current demands of the industry and prospective employers. In the school’s accreditation application, Brown reported holding advisory board meetings on various dates and also submitted what purported to be minutes of nine such board meetings. The diving school did not have a formal advisory board and did not regularly conduct meetings as required. Brown submitted wholly fabricated meeting minutes for at least six of the nine dates listed in the school’s accreditation application and, therefore, did not satisfy the minimum accreditation requirements. The diving school nonetheless continued to regularly receive DOE funds via wire transfers, including a wire transfer which occurred on Jan. 18, 2017.

In addition to the prison term, Judge Rodriguez sentenced Brown to three years of supervised release, fined her $50,000 and ordered restitution of $1.1 million.

U.S. Attorney Sellinger credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Philadelphia Resident Agency of the U.S. Department of Education, Office of Inspector General, under the direction of Special Agent in Charge Terry V. Harris, and the Northeast Field Office of the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s sentencing.

Students who can show that their school misled them or engaged in other misconduct in violation of certain state laws may be eligible for the discharge of some or all federal student loan debt under certain circumstances pursuant to the Borrower Defense Loan Discharge program. Former students of Divers Academy International who wish to seek federal loan forgiveness may apply at www.studentaid.gov/borrower-defense/.

The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S Attorney’s Office in Camden.

NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a scheme to use drones to smuggle contraband, including cell phones and tobacco, into the federal correctional facility at Fort Dix, U.S. Attorney Philip R. Sellinger announced.

Johansel Moronta, 29, of Linden, New Jersey, a former inmate at Fort Dix, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of possessing and obtaining contraband while in prison. Moronta, who had been released from custody several months after the offense occurred and was on federal supervised release thereafter, also pleaded guilty to violating the terms of his supervised release. 

Another former federal inmate, Jason Arteaga-Loayza, previously pleaded guilty to his participation in the scheme as well as to distributing narcotics and was sentenced in September 2021 to 43 months in prison by U.S. District Judge Susan D. Wigenton. Two other men, Adrian Goolcharran, aka “Adrian Ahoda,” aka “Adrian Ajoda,” aka “Adrian Ajodha,” and Nicolo Denichilo, also have been charged with participating in the scheme to use drones to smuggle contraband into Fort Dix prison.

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

Moronta, an inmate at Fort Dix from April 2018 to March 2019, participated in multiple drone deliveries of contraband into Fort Dix while incarcerated. Between October 2018 and June 2019, Arteaga-Loayza arranged for Goolcharran, with Denichilo’s assistance, to fly drones over Fort Dix and drop packages of contraband into the prison, where Moronta took possession of the contraband and helped sell it to inmates for a profit. The packages that Moronta helped to smuggle in to FCI Fort Dix included cell phones, cell phone accessories, tobacco, weight loss supplements, eyeglasses, and various other items. Moronta, from inside the prison, helped coordinate inmate requests for specific items of contraband and assisted in the collection of payments. 

Moronta’s conspirators took various steps to prevent BOP officials from detecting and intercepting the contraband. They planned drone drops during the late evening hours or overnight when it was dark and the drones were less likely to be seen. Goolcharran, the drone pilot, with Denichilo’s assistance, flew the drones from concealed positions in the woods surrounding the prison. The lights on the drones were covered with tape to make it more difficult for prison officials to spot the drones against the dark evening sky. 

Moronta and his conspirators used cell phones, including contraband phones concealed within the prison, to coordinate the drone drops. A contraband cell phone used by Moronta while an inmate at Fort Dix contained text messages with Arteaga-Loayza about the collection of profits from the sale of the contraband inside of the prison. In one exchange, for instance, Moronta messaged Arteaga-Loayza about an inmate, “Ok so I am tell him 10 phones and 100 baco [i.e. tobacco] he has to pay 10 bands and 500 on each phone?”  Arteaga-Loayza responded, “And well (sic) even give him an ounce of weed tell him.” 

Moronta admitted in court that, on Oct. 30, 2018, he received a bag dropped by a drone onto the roof of a housing unit at FCI Fort Dix which contained contraband tobacco, cellphone chargers and charging cables. Prison officials recovered that bag which contained 127 bags of Bugler tobacco, 10 cell phone chargers and 10 USB charging cables. Moronta also admitted to possessing a contraband cell phone on that date, which he had used to coordinate the drone drop.  

During a search of Arteaga-Loayza’s residence on June 27, 2019, agents found a kitchen closet containing packages of empty cell phone boxes, including a package with empty cell phone boxes that had been shipped to Arteaga-Loayza the day before the drone drop of Oct. 30, 2018, cell phone chargers, empty boxes of SIM cards, and several cell phones. 

Moronta also admitted to physically assaulting his girlfriend in June of 2021 while at a gas station in Fort Lee, after his release from federal prison.

Moronta faces a maximum penalty of one year in prison and maximum fine of $100,000 for the plea to possession of contraband while being a federal inmate. Moronta also agreed to a term of imprisonment of 14 months for violating the terms of his supervised release by assaulting his girlfriend, a term which will be served consecutively to whatever term of imprisonment he receives for the contraband charge. Sentencing is scheduled for Feb. 10, 2022.

U.S. Attorney Sellinger credited agents of the U.S. Department of Justice Office of the Inspector General, Cyber Investigations Office, under the direction of Special Agent in Charge Keith A. Bonanno; the U.S. Air Force Office of Special Investigations, Detachment 307, under the direction of Special Agent in Charge Nicholas Kaplan; and the U.S. Department of Transportation Office of Inspector General, Northeast Region, under the direction of Acting Special Agent in Charge Joseph Harris, with the investigation leading to today’s guilty plea.

He also thanked Federal Bureau of Prisons personnel at Fort Dix; special agents of the FBI; special agents of the U.S. Attorney’s Office; and officers with the Pemberton Borough Police Department; the Pemberton Township Police Department; and Chesterfield Township Police Department, for their assistance.

The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.

The charges and allegations contained in the criminal complaints issued against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.

CAMDEN, N.J. – A doctor was sentenced today to 24 months in prison for defrauding his prior employer’s medical practice by stealing and forging the medical practice’s checks to pay personal expenses, U.S. Attorney Philip R. Sellinger announced.

Walter Sytnik, 35, of Voorhees, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of mail fraud. Judge Rodriguez imposed the sentence by videoconference today.

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

Before attending medical school, Sytnik worked for a medical practice in southern New Jersey as a bookkeeper. While employed by the practice, Sytnik stole some of its checks and, from May 2013 through April 2018, used them to steal more than $500,000 from the practice. He opened and maintained credit card accounts at the same banks as used by the doctor at the medical practice, and forged the doctor’s signature on the stolen checks, which he sent through the U.S. Mail to pay his own credit card bills. When Sytnik ran out of checks, he reordered new ones so that he could continue the fraud.

In addition to the prison term, Judge Rodriguez sentenced Sytnik to two years of supervised release and ordered him to pay restitution of $415,995.

U.S. Attorney Sellinger credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, with assistance from the Voorhees Township Police Department, under the direction of Chief Louis Bordi, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S Attorney’s Office in Camden.

CAMDEN, N.J. – A Salem County man made his initial appearance on a charge of illegally possessing a firearm, U.S. Attorney Philip R. Sellinger announced today.

Jabbar Pierce, 41, of Penns Grove, New Jersey, is charged by complaint with one count of possession of a firearm by a convicted felon. He appeared by videoconference before U.S. Magistrate Judge Matthew J. Skahill on Jan. 6, 2022, and was detained.

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

On Nov. 9, 2021, law enforcement officers executed a search warrant at a residence in Penns Grove based on probable cause that Pierce, a six-time convicted felon, had committed firearms and drugs crimes and that evidence of those crimes would be at the residence. While executing the warrant, officers encountered Pierce, who told officers that anything illegal in the residence belonged to him. Pierce also told officers that they would find a firearm behind a couch and drugs in a cabinet. Upon searching the residence, officers recovered from behind the couch a .40 caliber rifle and detached 24-round magazine containing 14 rounds of ammunition.  Officers also recovered suspected controlled substances and drug packaging from a kitchen cabinet. 

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.

U.S. Attorney Sellinger 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; the Salem County Prosecutor’s Office, under the direction of Acting Prosecutor Kristin J. Telsey; and the Penns Grove Police Department, under the direction of Officer in Charge Robert Frett, with the investigation leading to the charge.

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

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

NEWARK, N.J. – A Passaic County, New Jersey, man today admitted his role in an illegal money transmitting business, U.S. Attorney Philip R. Sellinger announced.

Julio De La Cruz Acosta, 42, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a criminal information charging him with aiding and abetting an illegal money transmitting business. 

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

From July 2016 to December 2017, De La Cruz Acosta accepted $1.94 million in cash to purchase 67 cashier’s checks at banks in and around New Jersey and elsewhere. De La Cruz Acosta admitted that he knew that the cash was from an illegal source and that he purchased the cashier’s checks to aid, abet and facilitate an illegal money transmitting business. 

The investigation revealed that the cash was the proceeds of illegal drug distribution.   The check purchases were part of a large-scale illegal money transmitting and money laundering scheme designed to hide the illegal source of the cash and transfer it from New Jersey to the Dominican Republic and Colombia, all while attempting to avoid scrutiny by law enforcement and U.S. banks. 

The charge of aiding and abetting an illegal money transmitting business carries a maximum penalty of five years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. Sentencing is scheduled for May 17, 2022.

U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; the Morristown, New Jersey, Police Department, under the direction of Acting Police Chief Darnell Richardson; and the Direccion Nacional de Control de Drogas (the Dominican Republic National Drug Directorate, or DNCD) with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Asset Recovery and Money Laundering Unit in Newark.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

NEWARK, N.J. – A former sales representative today admitted his role in a scheme to defraud New Jersey state health benefits programs, U.S. Attorney Philip R. Sellinger announced. 

Scott Shekitka, 42, formerly of Westwood, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to commit health care fraud.

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

Compounding is a practice in which a pharmacist or physician combines, mixes, or alters ingredients of a drug to create a medication tailored to the needs of an individual patient. The Food and Drug Administration does not approve compounded drugs and thus does not verify the safety, potency, effectiveness, or manufacturing quality of compounded drugs. Generally, a physician may prescribe compounded drugs when an FDA-approved drug does not meet the health needs of a particular patient.

Between June 2014 and February 2016, Shekitka worked as a sales representative for a marketing company that marketed and sold compounded drugs, including pain and scar creams, metabolic supplements and vitamins. Shekitka recruited patients, including family members, who had prescription drug coverage under the New Jersey State Health Benefits Program and the New Jersey School Employee’s Health Benefits Program, to obtain medically unnecessary prescriptions for compounded drugs. Shekitka paid certain patients he recruited to obtain these medically unnecessary prescriptions and directed patients to telemedicine companies that were paid by the marketing company or its affiliates. The prescribing physicians at the telemedicine companies would then write the prescriptions without performing any examination or after deliberately conducting cursory examinations that were insufficient to legitimately deem a compounded drug medically necessary. 

The marketing company directed the medically unnecessary prescriptions to certain compounding pharmacies that then paid the marketing company a percentage of the health care benefit reimbursement payments they received for each prescription that Shekitka referred. The marketing company, in turn, paid Shekitka based on the compounded prescriptions he generated.      

The conspiracy to commit health care fraud charge carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense. As part of his plea agreement, Shekitka must forfeit $329,639 in criminal proceeds and pay restitution of at least $1.39 million. Sentencing is scheduled for May 12, 2022.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorney Adam Baker of the U.S. Attorney’s Office’s Opioid Abuse Prevention and Enforcement Unit in Newark.

NEWARK, N.J. – Five alleged members and associates of a neighborhood-based Jersey City, New Jersey, gang were charged for their roles in two gang-related shootings, U.S. Attorney Philip R. Sellinger announced today. 

Shaquan Rush, aka “Nut,” aka “Sha,” 21; Darby Shirden, aka “GoHard,” aka “GH,” 21; and Jeremy Perez, aka “Smoov,” aka “JSmoov,” 23, all of Jersey City, are each charged by complaint with one count of murder in aid of racketeering, one count of attempted murder in aid of racketeering, and two counts of discharging a firearm during and in relation to a crime of violence. Devon Tutten, aka “Joker,” 24; and Tyree Witherspoon, aka “Surf,” aka “Sonny,” 29, both of Jersey City, were also each charged with one count of murder in aid of racketeering and one count of discharging a firearm during and in relation to a crime of violence. The defendants will make their initial appearances at a date to be determined.

According to the complaint:

Rush, Shirden, Perez, Tutten, and Witherspoon are all associated with neighborhood-based street gangs in Jersey City – specifically, a street gang that operates in the area of Rutgers Avenue and Triangle Park. 

On April 1, 2020, in retaliation for the murder of a high-ranking Rutgers Avenue gang member on March 31, 2020, Rush, Shirden, and Perez traveled to the territory of rival gang members that associate with the Salem Lafayette Apartments and opened fire on a group of people on the street. Two victims were shot: one individual associated with the Salem Lafayette street gang and a 17-year-old girl who was walking down the street. The girl died the following day as a result of her gunshot wound.

On April 4, 2020, in retaliation for an attempted shooting on April 3, 2020, Tutten and Witherspoon traveled to the territory of rival gang members that associate with Wilkinson Avenue and opened fire on a group of people on the street. An individual associated with the Wilkinson street gang was shot in the head and pronounced dead shortly thereafter. 

The charge of murder in aid of racketeering activity carries a mandatory punishment of death or life in prison without the possibility of parole. For their respective charges for discharging a firearm during and in relation to a crime of violence, all five defendants face mandatory minimum terms 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. For their respective charges for attempted murder in aid of racketeering, Rush, Shirden, and Perez also face additional terms of imprisonment of up to 10 years.

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

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 case is being prosecuted by Desiree Grace, Deputy Chief of the Criminal Division in Newark.

The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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

Ayanniyi Alayande, 47, of Darby, Pennsylvania, pleaded guilty by videoconference before U.S. District Judge Noel L. Hillman to an information charging him with one count of conspiracy to commit bank fraud.

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

Alayande was part of a multi-defendant, Nigerian-based, multi-layered criminal organization that engaged in a massive bank fraud conspiracy in several states, including New Jersey, Pennsylvania, Maryland and Rhode Island, between June 2016 and March 2020. Members of the group acquired numerous business checks that were stolen from the United States mail, altered the payee on the checks to a fraudulent name and deposited the checks into bank accounts that had been opened with forged foreign passport documents and fraudulent U.S. visas that matched the names on the stolen checks. Once the banks credited all or a portion of the funds to the accounts – but before the checks had cleared – the defendants withdrew the funds from ATMs or purchased money orders, using debit cards associated with the fraudulent accounts. Members of the organization used over 400 fraudulent accounts opened with fake identity documents to defraud the victim banks. To date, the total loss to the victim banks is approximately $6 million.

Ayanniyi Alayande today admitted his role in the conspiracy, which included using false identities to make several deposits to and withdrawals from the fraudulent accounts. As part of his plea, Alayande agreed to forfeit his interest in approximately $90,000 worth of money orders, which were proceeds of the bank fraud and which were seized from a public storage facility in Philadelphia used by the conspirators to store additional fraudulent identity documents and proceeds of the bank fraud.

The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for May 12, 2022.

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

Charges against 11 other defendants remain pending.

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

The charges and allegations contained in the complaints and indictments against the 11 defendants are merely accusations, and they are presumed innocent unless and until proven guilty.

NEWARK, N.J. – A Jersey City, New Jersey, man was sentenced today to 108 months in prison for receipt of child pornography, U.S. Attorney Philip R. Sellinger announced.

Benigno Gonzalez-Mendoza, 37, of Jersey City, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of receipt of child pornography. Judge Wigenton imposed the sentence today by videoconference.

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

From March 9, 2019, through July 27, 2019, Gonzalez-Mendoza knowingly received images and videos of child sexual abuse, including videos of adults sexually abusing prepubescent children.  

In addition to the prison term, Judge Wigenton sentenced Gonzalez-Mendoza to 10 years of supervised release and ordered him to pay restitution of $18,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Olta Bejleri of the U.S. Attorney’s Office’s Criminal Division in Newark.

 

NEWARK, N.J. – A citizen of the Dominican Republic was sentenced today to 70 months in prison for her role in a drug trafficking conspiracy, U.S. Attorney Philip R. Sellinger announced.

Yaquelin Altagracia Alberto Guerrero, 45, of the Dominican Republic, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to one count of conspiracy to distribute fentanyl. Judge Cecchi imposed the sentenced today by videoconference.

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

In August 2020, Guerrero and two conspirators conducted two sales of fentanyl in New York City to buyers they knew had traveled from New Jersey to New York to make the purchases. On Aug. 10, 2020, Guerrero and two conspirators participated in the sale of approximately one kilogram of fentanyl. On Aug. 12, 2021, Guerrero again worked with others to sell fentanyl to individuals whom she knew had traveled from New Jersey to New York for the sale. The aggregate weight of fentanyl involved in the case was approximately three kilograms.

In addition to the prison term, Judge Cecchi sentenced Guerrero to three years of supervised release.

U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration under the direction of Special Agent in Charge Susan A. Gibson in Newark, and the Asbury Police Department, under the direction of Chief David Kelso, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Hayden M. Brockett of the Health Care Fraud Unit in Newark.

CAMDEN, N.J. – An Atlantic County, New Jersey, tax preparer today admitted using false information to increase her clients’ tax refunds and filing her own false tax returns, U.S. Attorney Philip R. Sellinger announced.

Michele Griffin, 42, of Galloway, New Jersey, pleaded guilty by videoconference before U.S. District Judge Joseph R. Rodriguez to Count 11 of an indictment charging her with aiding and assisting in the preparation of a false income tax return.

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

Griffin prepared multiple fraudulent tax returns on behalf of her clients by falsifying their education expenses, dependent care expenses, business income, dependent information, and unemployment income. As a result, her clients’ returns requested higher tax credits and higher refunds than the clients were entitled to receive. Griffin prepared 19 false tax returns on behalf of six clients for tax years 2013 through 2016 and filed three false tax returns for herself for tax years 2013 through 2015. She admitting causing a tax loss of approximately $135,000.

The charge to which Griffin pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for May 10, 2022.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. – Two members of a violent street gang operating in Newark were arrested today on charges of possession with intent to distribute controlled substances and possession of firearms in furtherance of drug trafficking offenses, U.S. Attorney Philip R. Sellinger announced.

Hazir Burwell, aka “Hazzy,” 19, and Jaizon Bennett, aka “Glizzy,” 19, both of Newark, are each charged by complaint with one count of possession with intent to distribute controlled substances and one count of possession of a firearm in furtherance of a drug trafficking crime.  They both appeared today by videoconference before U.S. Magistrate Judge Cathy L. Waldor and were and were detained.

“Today’s charges demonstrate the importance and effectiveness of our collaborative approach to combating violent crime,” U.S. Attorney Sellinger said. “We are committed to working with our state and local partners in law enforcement to ensure that those individuals who commit acts of violence and cause harm to our communities are held accountable for their actions.”

“I am grateful for our partnership with U.S. Attorney Sellinger’s office to reduce violent crime in Newark,” Newark Public Safety Director Brian O’Hara said. “These arrests are truly impactful for those in our community most harmed by such weapons of war and dangerous drugs, and this will result in lives saved not only from gun violence, but from drug overdoses as well. Thanks to the U.S. Attorney’s Office, the federal charges these suspects now face should send a strong, unified message that we are all very serious about ensuring that our neighborhoods are safe.”

“Today’s arrests are part of an ongoing coordinated strike by law enforcement to address the gang-related violence and reduce the guns and drugs on the streets of Newark,” FBI Newark Special Agent in Charge George M. Crouch Jr. said. “The Newark Division is committed to working side by side with our local, state, and federal partners to improve the quality of living in our communities.”

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

Since at least February 2021, law enforcement officials have been investigating a criminal enterprise in Newark operating in the area of Evergreen Avenue and Hanford Street, known as “Seth Boyden” or the “500 block.” The investigation, which has been centered on drug distribution and acts of violence that have occurred on and around Hanford Street, a dead-end block just north of Evergreen Avenue, revealed that both Burwell and Bennett are members and associates of this criminal enterprise who distribute controlled substances and commit acts of violence for and on behalf of the enterprise. 

Members of the Newark Police Department, with assistance from the FBI, arrested Burwell and Bennett today on state charges that pertain to a March 2021 shooting. At the time of his arrest, Burwell was found in possession of 188 glassine envelopes of suspected heroin; 24 jugs of suspected cocaine base; a 9mm Smith & Wesson M&P semi-automatic pistol loaded with nine rounds of 9mm ammunition; two extended magazines capable of holding 30 rounds of ammunition; and a drum magazine capable of holding 50 rounds of ammunition. At the time of his arrest, Bennett was found in possession of 50 glassine envelopes of suspected heroin and a 9mm Taurus G2C handgun with a defaced serial number, which was loaded with eight rounds of 9mm ammunition. 

The charge of possession with intent to distribute controlled substances carries a maximum potential penalty of 20 years in prison and a $1 million fine. The charge of possession of a firearm in furtherance of drug trafficking offense carries a mandatory minimum sentence of five years in prison imprisonment, a maximum potential penalty of life in prison, and a $250,000 fine.

U.S. Attorney Sellinger credited the Newark Department of Public Safety, under the direction of Public Safety Director O’Hara, and special agents of the FBI, under the direction of Special Agent in Charge Crouch in Newark, with the investigations leading to the charges and arrests. He also thanked the Bloomfield Police Department, the Essex County Sheriff’s Office, the Essex County Department of Corrections and the N.J. State Board of Parole for their assistance.

This case is part of the Violent Crime Initiative (VCI) in Newark. The 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 to combat 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 Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration, 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; the N.J. State Board of Parole; the Union County Jail; the N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center; the N.J. Department of Corrections; the East Orange Police Department; and the Irvington Police Department.

The government is represented by Assistant U.S. Attorney Cassye Cole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.

The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – An Essex County, New Jersey, man made his initial appearance today on charges of sex trafficking, U.S. Attorney Philip R. Sellinger announced today.

Amin Sharif, 47, of Newark, is charged by criminal complaint with one count of attempted sex trafficking an adult woman and one count of sex trafficking a minor. Sharif appeared by videoconference before U.S. Magistrate Judge Cathy L. Waldor and was detained.

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

Since January 2021, law enforcement officials have been investigating Sharif for transporting and attempting to transport women and minors from various states to New Jersey and elsewhere for the purpose of engaging in commercial sex acts and other illicit conduct.  Sharif used several social media platforms and profiles to recruit women and minors to engage in sex acts for money. Once in contact with his victims, Sharif used threats to coerce the victims into engaging in commercial sex acts. He advertised women and at least one underage girl online for commercial sex acts. Sharif also transported at least one underage girl located in another state into New Jersey and attempted to transport a woman located in another state into New Jersey via a commercial airline, in furtherance of his sex trafficking conduct.

The counts with which Sharif is charged are each punishable by a mandatory minimum of 15 years in prison and a maximum penalty of life in prison.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark and Special Agent in Charge Jacqueline Maguire in Philadelphia, and officers of the Allentown, Pennsylvania, Police Department, under the direction of Chief Charles Roca, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Kimberly Mitchell of the U.S. Attorney’s Office OCDETF and Narcotics Unit in Newark.

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

NEWARK, N.J. – A California man today admitted conspiring to commit wire and securities fraud in connection with his role in a $50 million internet-enabled fraud scheme, U.S. Attorney Philip R. Sellinger announced.

Allen Giltman, 56, of Irvine, California, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit securities fraud.

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

From 2012 to October 2020, Giltman and others engaged in an internet-based financial fraud scheme, which generally involved the creation of fraudulent websites to solicit funds from investors. At times, the fraudulent websites were designed to closely resemble websites being operated by actual, well-known, and publicly reputable financial institutions; at other times, the fraudulent websites were designed to resemble legitimate-seeming financial institutions that did not exist. 

Victims of the fraud scheme typically discovered the fraudulent websites via internet searches. The fraudulent websites advertised various types of investment opportunities, most prominently the purchase of certificates of deposit, or CDs. The fraudulent websites advertised higher than average rates of return on the CDs to lure potential victims.

The fraudulent websites used a variety of means to appear legitimate and to gain and maintain the trust of prospective investors, including: (a) displaying the actual names and logos of real financial institutions; (b) purporting that the institutions were members of or regulated by the Federal Deposit Insurance Corporation (FDIC), Financial Industry Regulatory Authority (FINRA), the Securities Investor Protection Corporation, or New York Stock Exchange; (c) claiming that deposits made to the institutions associated with the fraudulent websites were FDIC-insured; and (d) using FINRA or FDIC member identification numbers issued to real financial institutions and real FINRA broker-dealers.

After discovering one of the fraudulent websites, victims would contact an individual – identified in the information as Giltman – by telephone or email as directed on the sites. During his communications with victims, Giltman impersonated real FINRA broker-dealers by using their names and FINRA Central Registration Depository numbers. He would then provide the victims with applications and wiring instructions for the purchase of a CD. The funds wired by the victims would then be moved to various domestic and international bank accounts, including accounts in Russia, the Republic of Georgia, Hong Kong, and Turkey. None of the victims received a CD after wiring the funds.

To date, law enforcement has identified at least 150 fraudulent websites created as part of the scheme. At least 70 victims of the fraud scheme nationwide, including in New Jersey, collectively transmitted approximately $50 million that they believed to be investments.

The wire fraud conspiracy charge carries a maximum penalty of 20 years and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest. The securities fraud charge carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest.  Sentencing is scheduled for May 10, 2022.

The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Giltman today based on the same conduct.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark, with the investigation leading to today’s guilty plea. He also thanked the SEC for the assistance provided by its Enforcement Division.

The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Cybercrime Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man today admitted illegally possessing a firearm, U.S. Attorney Philip R. Sellinger announced.

Tyson Fletcher, aka “Tyjon Fletcher” and “Rahjohn McCoy,” 41, of Newark, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an indictment charging him with possession of a firearm by a convicted felon.

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

On April 17, 2019, Fletcher illegally possessed a firearm loaded with five hollow-point bullets. Fletcher had previously been convicted of multiple felony offenses, including robbery and unlawful possession of a weapon.

The firearms offense to which Fletcher pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for May 17, 2022.

U.S. Attorney Sellinger credited members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.

NEWARK, N.J. – A Hudson County, New Jersey, man and an Essex County, New Jersey, woman are charged with committing four robberies and two shootings on a single night in Jersey City, New Jersey, U.S. Attorney Philip R. Sellinger announced today.

Rodney Williams, 29, of Jersey City, New Jersey, and Siobhan Chandler, 19, of Newark, are scheduled to appear by videoconference today before U.S. Magistrate Judge James B. Clark III. They are each charged by complaint with conspiring to rob, and robbing, four businesses and shooting two individuals in Jersey City. Williams is additionally charged with possession of a firearm and ammunition as a convicted felon.   

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

On the evening of Nov. 14, 2021, Williams and Chandler committed four commercial robberies and two shootings within approximately 70 minutes. At approximately 8:10 p.m., Williams entered Store-1, placed a firearm on the clerk’s chest and threatened to kill the clerk.  Williams continued pointing the firearm at the clerk, while directing the clerk to give him all of Store-1’s money. Williams fled on foot after the clerk complied. 

Approximately 35 minutes later, Williams and Chandler approached Gas Station-1 together. Chandler attempted to enter Gas Station-1’s attendant booth. After noticing that Chandler was not successful, Williams pointed the firearm at an attendant and demanded money. The attendant did not comply. Williams shot the attendant in the chest and stated, “do you think I am f—king playing with you? Give me the money!”  Williams then pointed the firearm at the other attendant and threatened to shoot, as the attendant escaped to the attendant booth and locked the door. Williams followed the attendant and tried to force his way inside the booth, as Chandler waited for Williams near the entrance of Gas Station-1. After he could not enter the booth, Williams ran toward Chandler and they fled the scene.

Approximately 15 minutes later, Williams and Chandler entered Store-2. Williams pointed the firearm at the clerk and demanded Store-2’s money. As Williams held the clerk at gunpoint, Chandler emerged from the aisle and stood near Williams and Store-2’s clerk gave Williams money from the cash register. Williams and Chandler exited Store-2 on foot.

Approximately 10 minutes later, Williams and Chandler entered Restaurant-1. Williams immediately approached the clerk at the register, pointed the firearm at the clerk’s chest and demanded money. The clerk, believing Williams’ demand was not serious, failed to immediately respond to Williams’ demand. Williams attempted to shoot the clerk, but the firearm misfired. Williams then re-cocked the firearm and shot the clerk in the chest. Williams then forcibly entered the restaurant’s kitchen and demanded money from the employees. Chandler remained at the doorway and ordered one employee out of the restaurant and barred a patron from entering the restaurant. As Williams forced the wounded clerk to empty cash from the register, Chandler yelled, “Let’s go! Let’s go!” 

At approximately 9:20 PM, Jersey City Police Department officers observed the defendants in a motor vehicle near Restaurant-1. Upon observing law enforcement, Williams drove the vehicle into oncoming traffic, striking a police vehicle and rendering his vehicle inoperable. The officers immediately apprehended the defendants.     

Williams and Chandler are subject to a maximum potential penalty of 20 years in prison and a fine of $250,000 for each charge of robbery; a maximum penalty for 20 years in prison and a fine of $250,000 for conspiring to use and carry a firearm during and in relation to a crime of violence; and a maximum potential penalty of life in prison and a fine of $250,000 for each charge of possessing, carrying or using a firearm during a crime of violence. Williams is subject to a maximum potential penalty of 10 years in prison and a fine of $250,000 for the charge of possession of a firearm and ammunition by a convicted felon.    

U.S. Attorney Sellinger credited officers of 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, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Jamel Semper of the Organized Crime and Gangs Unit and Kimberly Mitchell of the OCDETF and Narcotics Unit in Newark.

The charges and allegations contained in the criminal complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – A Hudson County, New Jersey, man today admitted possessing a firearm and ammunition after having previously been convicted of a felony, U.S. Attorney Philip R. Sellinger announced.

Andre Cannon, 29, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an indictment charging him with illegal possession of a handgun and ammunition by a previously convicted felon.

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

On July 11, 2020, a victim was shot in the leg near Martin Luther King Drive and Oak Street in Jersey City. Police discovered a .40-caliber S&W shell casing in a nearby courtyard. Surveillance video showed that Cannon had committed the shooting. The following day, law enforcement officers executed a search warrant at Cannon’s house. As police announced their presence and entered the front of the house, officers stationed at the back of the house saw Cannon throw a black Beretta Gardone .40-caliber handgun loaded with 10 .40-caliber rounds of ammunition out of a first-floor window.

Cannon had previously been convicted in the Superior Court of Hudson County of unlawful possession of a handgun, a felony punishable by more than one year in prison.

The charges of possession of a firearm and ammunition by a convicted felon carry a maximum penalty of 10 years in prison and a maximum fine of $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. He also thanked members of the Jersey City Police Department, under the leadership of Public Safety Director James Shea, for their assistance.

The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Violent Crimes Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 28 months in prison for his role in a conspiracy to commit bank fraud, including by soliciting U.S. Postal Service (USPS) employees to steal check books and credit cards from the mail, depositing fraudulent checks, including pandemic relief checks, and using stolen credit cards without authorization, U.S. Attorney Philip R. Sellinger announced.

Jahaad Flip, 21, of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud. Judge Wigenton imposed the sentence by videoconference. 

Three of Flip’s conspirators, Jeffrey Bennett, 27, of Irvington, New Jersey, Tashon Ragan, 21, of Newark, New Jersey, and Janel Blackman, 42, of Newark, pleaded guilty before Judge Wigenton earlier this year to conspiracy to commit bank fraud. Blackman also pleaded guilty to filing fraudulent applications with the U.S. Small Business Administration (SBA) for Economic Injury Disaster Loans. Ragan was sentenced in October 2021. Bennett and Blackman are awaiting sentencing.

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

From February 2019 to May 2020, Flip conspired to fraudulently obtain money from victim financial institutions by, among other things, depositing counterfeit checks and checks stolen from the mail into accounts at these financial institutions and withdrawing funds from those accounts before the financial institutions identified the fraudulent checks and blocked further withdrawals. Flip and his conspirators arranged for USPS employees to steal credit cards and blank check books from the mail in exchange for cash payments. USPS employees provided the checks to Flip and his conspirators. Flip and his conspirators fraudulently forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students, and who had given Flip and his conspirators access to their accounts, also in exchange for cash. Flip and his conspirators created counterfeit checks, including counterfeit pandemic relief checks. Flip and his conspirators deposited the fraudulent checks online and at various bank ATMs throughout New Jersey and later withdrew funds from the bank accounts before the victim financial institutions identified the checks as fraudulent and could block further withdrawals. Through the conspiracy, Flip and his conspirators obtained and attempted to obtain approximately $366,000 from victim financial institutions.

In addition to the prison term, Judge Wigenton also sentenced Flip to five years of supervised release and ordered him to pay restitution of $61,438.   

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi; special agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s sentencing. He also thanked the Summit Police Department, the New Providence Police Department, the Piscataway Police Department, the Newark Police Department, the South Orange Police Department, and the Little Falls Police Department for their assistance.

The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Elaine K. Lou in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man today admitted to conspiring to extort multiple general contractors of approximately $14,000 by using his brother’s position as a compliance safety and health officer (CSHO) with the U.S. Department of Labor, Occupational Safety and Health Administration (OSHA), U.S. Attorney Philip R. Sellinger announced.

Paul Idrovo, aka “Jose Diaz” and “Paul Mejia,” 48, of Nutley, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiring to defraud the United States and to commit an offense against the United States, specifically to commit an act of extortion under color of his brother’s office or employment with OSHA. Paul Idrovo was previously charged by complaint in September 2020, together with his brother, Alvaro Idrovo, with one count of conspiring to commit an offense against the United States based on the extortion of a single contractor. 

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

Alvaro Idrovo misrepresented to contractors engaged in construction sites in New Jersey that they were facing significant OSHA fines, penalties and possibly jail, if they did not get OSHA safety training from a specific individual. He would provide the contractors with the phone number for the required trainer, allegedly named “Jose Diaz” or “Paul Mejia.” The phone number actually belonged to Paul Idrovo, posing under these names to conceal their relationship. Paul Idrovo was an authorized trainer for certain OSHA Outreach Training Programs, but was not an employee of OSHA.

Although initially demanding higher sums, the two men eventually charged the contractors $4,000 to $6,000 each for the alleged safety training, which was required to be paid in cash. Paul Idrovo collected the cash and provided the contractors with fraudulent computer-generated safety and health certificates for their individual employees, which falsely stated that the employees had received various type of OSHA certified safety training from “Jose Diaz” and “Paul Mejia,” when no training had been provided. As part of the charged fee, Paul ldrovo and Alvaro Idrovo also furnished the contractors with alleged necessary safety and health plans, which were prepared from a template rather than created or modified in any substantial way for the contractor. Paul Idrovo shared with Alvaro Idrovo approximately $5,000 of the cash collected as part of the extortion conspiracy.

When OSHA officials learned of the attempt to extort one of the contractors, the OSHA officials referred the matter to federal law enforcement, who arranged for that contractor to make consensual recordings with both Alvaro Idrovo and Paul Idrovo. During an April 2020 meeting surveilled by law enforcement, the contractor paid Paul Idrovo $6,000 in cash in exchange for ladder and safety awareness training certificates and a safety and health plan. Alvaro Idrovo thereafter attached copies of the training certificates and the plan to his OSHA reports regarding the contractor’s violation despite knowing that the training certificates falsely claimed that training had been provided to the noted individuals in March 2020, “Jose Diaz” had provided training, and the alleged training was OSHA certified.  

The conspiracy charge against Paul Idrovo carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for May 22, 2022.

The complaint against Alvaro Idrovo remains pending and he is presumed innocent unless and until proven guilty.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in New York, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Senior Trial Counsel Leslie Faye Schwartz, of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.

NEWARK, N.J. – A Bronx man today admitted possessing with intent to distribute fentanyl, U.S. Attorney Philip R. Sellinger announced.

Jose Sanchez Matos, 31, of the Bronx, New York, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an indictment charging him with possession with intent to distribute 400 grams or more of a mixture and substance containing fentanyl.

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

On Aug. 27, 2019, a confidential source (the “CS”) met with Matos and agreed to purchase one kilogram of fentanyl for $40,000. Matos then provided the CS with a powdery substance wrapped in plastic, stating that the substance was fentanyl.

The charge of possession with intent to distribute 400 grams or more of fentanyl carries a statutory mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a maximum fine of $10 million. Sentencing is scheduled for April 28, 2022.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Violent Crimes Unit in Newark.

NEWARK, N.J. – Three Passaic County, New Jersey, men have been charged with conspiracy to commit wire fraud in connection with a scheme to extort increased fees for moving services from vulnerable customers, U.S. Attorney Philip R. Sellinger announced today.

Abdal Abuawad, 26, a Jordanian national residing in Paterson, New Jersey, was arrested in New Mexico on Dec. 13, 2021, and made his initial appearance in the District of New Jersey by videoconference today before U.S. Magistrate Judge James B. Clark III. He was released on $300,000 unsecured bond. His brother, Abdalh Abuawad, 28, a Jordanian national, and Yousef AlMallad, 31, both of Paterson, appeared before U.S. Magistrate Judge Michael A. Hammer in Newark federal court on Dec. 10, 2021, following their arrests and were each released on $300,000 unsecured bond. All three are each charged by complaint with one count of conspiring to commit wire fraud.

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

The Abuawad brothers created at least one moving company, Abda Moving LLC, d/b/a 11Even Movers & Storage (11Even), and employed AlMallad as a manager. The defendants and their conspirators utilized 11Even to extort customers to pay drastically increased fees for moving services once the customer was in a vulnerable state and unable to refuse their demands. 

Customers often arranged relocation or moving services through a household goods broker that provided the customer with an estimate of the cost of services. Representatives of 11Even, including Abdal and AlMallad, would then arrive at the customers’ homes to move their household goods. Generally, after loading all of a customer’s household goods onto a truck, the representatives of 11Even would then drastically raise the price of the move, often two or three times that of the quoted estimate. Defendants or other representatives of 11Even then demanded that the customer pay at least 50 percent of the inflated cost in cash at that time. 

After demanding a higher price, 11Even regularly failed to deliver customers’ household goods for months at a time or at all. When customers called 11Even to complain about the price increase and failed deliveries, Abdalh, AlMallad or other conspirators would field the calls.  They often claimed to be looking into complaints but rarely returned any customer phone calls and ultimately failed to answer any subsequent calls or texts.  

The charge for conspiring to commit wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss, whichever is greatest. 

U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Port Authority of New York and New Jersey Police Department, under the direction of Superintendent Edward Cetnar; the Rockaway Borough Police Department, under the direction of Chief Conrad Pepperman; the Medford, Oregon, Police Department, under the direction of Chief Scott Clauson; and the Simi Valley, California, Police Department, under the direction of Chief David M. Livingstone; with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the Organized Crime & Gangs Unit in Newark.

Anyone who believes they may have been a victim of this conspiracy can contact the FBI at: [email protected]. 

The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – Two owners of a Bergen County company today admitted their roles in a scheme to deprive the U.S. Postal Service (USPS) of over $3 million in revenue through fraudulently altering postage labels, U.S. Attorney Philip R. Sellinger announced.

Jack Koch, 44, of Elmwood Park, New Jersey, and Steven Koch, 43, of Pompton Lakes, New Jersey, each pleaded guilty before U.S. District Judge William J. Martini to separate informations charging them with mail fraud.  

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

The Kochs owned Fresh N Clear LLC, a company that sold various household items online, including bottled water, and shipped goods to its customers via the United States Postal Service. From January 2020 through September 2020, the defendants deprived the USPS of approximately $3 million in postage revenue through purchasing Flat Rate Envelope postage labels and wrongfully removing the Flat Rate endorsement on the envelopes so they could ship Fresh N Clear’s merchandise in boxes without paying the appropriate postage rate. The defendants purchased Flat Rate Service postage labels and altered those labels by electronically removing the endorsement from the label that confirmed that the package qualified for the Flat Rate Service. After removing the endorsement from the labels, the defendants re-applied the altered labels to packages that did not qualify for the Flat Rate Service and which would have otherwise required higher postage rates. Fresh N Clear then shipped those packages to its customers.

The mail fraud charge to which each defendant pleaded guilty carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. Sentencing for both defendants is scheduled for July 19, 2022.

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s guilty pleas.

The government is represented by Assistant U.S. Attorneys Perry Farhat and Katherine Romano of the U.S. Attorney’s Office’s Government Fraud Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 36 months in prison for illegally possessing a firearm and conspiring to defraud two banks of $250,000 using stolen credit cards and blank checks, U.S. Attorney Philip R. Sellinger announced.

Tamir Duval, 23, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of illegal possession of a firearm by a previously convicted felon, and to an information charging him with conspiracy to commit bank fraud. Judge Wigenton imposed the sentence today by videoconference.

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

On July 27, 2020, Duval unlawfully possessed a Taurus PT740 semi-automatic handgun loaded with seven hollow nose rounds of ammunition. The firearm had been reported stolen from Gastonia, Georgia. Duval was previously convicted in Essex County Superior Court of receiving stolen property, a felony under state law.

From August 2018 through January 2020, Duval and others engaged in a scheme to use stolen credit cards and checks to fraudulently make purchases and withdraw money from two banks, leaving the banks to bear the losses of the scheme.

The credit cards and blank checks were stolen from various New Jersey-based postal facilities and never reached their intended recipients. Duval and his conspirators used the credit cards and checks to make unauthorized purchases at various retail stores and withdraw cash from automated teller machines (ATMs) in New Jersey and elsewhere. Duval and his conspirators altered the date, payee, and amount of the stolen checks prior to deposit and then fraudulently withdrew money at various ATMs from third-party account holders’ accounts.

In addition to the prison term, Judge Wigenton sentenced Duval to five years of supervised release.

U.S. Attorney Sellinger credited the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the East Orange Police Department, under the direction of Chief Phyllis Bindi; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s sentencing.

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

TRENTON, N.J. – A Union County, New Jersey, man has been charged in connection with his commission of a string of robberies in New Jersey, including a bank robbery and two armed robberies of convenience stores, U.S. Attorney Philip R. Sellinger announced today.

Dayshawn Brimfield, 30, of Elizabeth, New Jersey, is charged by complaint with one count of bank robbery, two counts of Hobbs Act robbery, one count of using and carrying a firearm during and in relation to a crime of violence, and one count of interstate transportation of stolen property. He appeared by videoconference before U.S. Magistrate Judge Lois H. Goodman and was detained.

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

On April 2, 2021, a man dressed in dark clothing walked into a Hazlet, New Jersey, bank and handed a note to an employee. In the note, the man claimed to have a gun and threatened to kill the employee if the employee did not give him money. The employee turned over $750, which the man took before fleeing. Law enforcement later identified Brimfield’s palmprint on the note.

On April 20, 2021, Brimfield entered an Aberdeen, New Jersey, convenience store wearing dark clothing and a mask that partially covered his face. Brimfield approached an employee behind the counter and ordered him to the ground while brandishing a handgun. The employee complied, and Brimfield took approximately $450 from the store’s cash registers. Law enforcement reviewed security camera footage of the robbery and identified Brimfield as the robber. Security cameras also captured an older-model green Honda Civic park outside of the store immediately prior to the robbery.

On April 22, 2021, Brimfield, who was wearing a dark jacket with light stains and a mask, approached an employee of a South Plainfield, New Jersey, convenience store behind the counter and brandished a handgun. Brimfield demanded the employee’s wallet and cellphone, and the employee handed them over. The employee’s wallet contained his driver’s license, Social Security card and cash. Brimfield ordered the man to the ground as he took more than $2,000 from the store. Brimfield left the store and walked in the direction of a neighboring business. Law enforcement reviewed security camera footage from that neighboring business. Immediately prior to the robbery, security cameras captured Brimfield driving a green Honda Civic that had been stolen in Elizabeth four to five days earlier and wearing a knit New England Patriots hat. 

On April 25, 2021, Nebraska State Patrol Officers arrested Brimfield after he led them on a five-mile pursuit in the stolen Civic. Law enforcement seized the South Plainfield convenience store employee’s driver’s license and Social Security card, clothing consistent with the clothing Brimfield wore during both convenience store robberies, and a knit New England Patriots hat from the Civic.

The bank robbery and Hobbs Act robbery charges each carry a maximum penalty of 20 years in prison and a fine of up to $250,000. The using and carrying a firearm during and in relation to a crime of violence charge carries a maximum penalty of life in prison, and a fine of up to $250,000. The interstate transportation of stolen property charge carries a maximum penalty of 10 years in prison, and a fine of up to $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; officers of the Hazlet Police Department, under the direction of Chief Ted A. Wittke; officers of the South Amboy Police Department, under the direction of Chief Darren LaVigne; officers of the Aberdeen Police Department, under the direction of Acting Chief Matthew Lloyd; officers of the Nebraska State Patrol, under the direction of Col. John A. Bolduc; members of the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; and members of the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Lori Linskey, with the investigation leading to today’s 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.

NEWARK, N.J. – Two high-ranking members of the Pagan’s Motorcycle Club were indicted today for assault with a dangerous weapon in aid of racketeering, narcotics distribution, and firearms offenses, U.S. Attorney Philip R. Sellinger announced.  

Larry Ortiz, aka “Savage,” 31, of Elizabeth, New Jersey, and Junius Aquino, aka “Jayo,” 38, of Vauxhall, New Jersey, were indicted for assault with a dangerous weapon in aid of racketeering (Count One) and discharging a firearm during and in relation to a crime of violence (Count Two), in connection with their roles in a gang-related shooting. Aquino was also charged with possession of ammunition by a convicted felon (Count Three) and possession with intent to distribute cocaine (Count Four), and Ortiz was also charged with possession with intent to distribute methamphetamine (Count Five) and possession of a firearm in furtherance of a drug trafficking crime (Count Six).

According to documents filed and statements made in court:

On Oct. 21, 2020, Aquino visited a bar in Verona, New Jersey, with other members of the Pagan’s. When Aquino and his associates exited the bar, a group of individuals approached and assaulted them with baseball bats. Approximately one week later Aquino and Ortiz shot at an associate of the Hells Angels on the New Jersey Turnpike in retaliation for the Verona assault.  The Pagan’s and the Hells Angels are known to be rival gangs.

Aquino was also indicted for possession of ammunition by a convicted felon and possession with intent to distribute cocaine. The ammunition charge arises from a shooting that occurred in Elizabeth on Oct. 31, 2020, during which Aquino shot at an occupied vehicle. On Nov. 5, 2020, law enforcement officers executed a search warrant at Aquino’s residence and recovered, among other items, multiple .40 caliber rounds of ammunition and approximately 50 grams of cocaine. At the time of Aquino’s arrest, he was the vice president of the Elizabeth membership chapter of the Pagan’s.  

Ortiz was indicted for possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. On Nov. 17, 2020, law enforcement executed a search warrant at Ortiz’s residence and recovered approximately 300 grams of methamphetamine and a loaded firearm. At the time of his arrest, Ortiz was the president of the Pagans’ Jersey City membership chapter.

These charges were filed as part of a multi-agency investigation into the Pagan’s Motorcycle Club – an outlaw motorcycle gang known to engage in illegal activity, including narcotics trafficking, weapons trafficking, and violent crimes. The Pagan’s have established membership chapters in numerous states and U.S. territories, including multiple active chapters in New Jersey. This investigation involved court-authorized wiretaps, the use of multiple undercover law enforcement agents, and execution of multiple search warrants at physical locations in multiple jurisdictions. Through the investigation, law enforcement seized 10 firearms and more than 800 grams of methamphetamine.  

Count One carries a maximum sentence of 20 years in prison and a fine of up to $250,000. Count Two carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a fine of up to $250,000. Count Three carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Count Four carries a maximum sentence of 20 years in prison and a maximum fine of $1 million. Count Five carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a fine of up to $10 million. Count Six carries a mandatory minimum sentence of five years in prison, a maximum sentence of life in prison, and a fine of up to $250,000.

U.S. Attorney Sellinger credited a joint task force comprised of special agents of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to these charges.  He also thanked the Elizabeth Police Department, under the direction of Chief Giacomo Sacca, for its assistance with this investigation.

These cases are 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 Robert Frazer, R. Joseph Gribko, and Samantha C. Fasanello, of the U.S. Attorney’s Office in Newark.

The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – Two Essex County, New Jersey, women were indicted today in connection with a scheme to arrange sham marriages between U.S. citizens and non-citizens seeking to stay in the United States unlawfully, U.S. Attorney Philip R. Sellinger announced.

Sisters Andrea Torres, 55, and Regina Johnson, 57, of Newark, were both charged by indictment with one count of conspiracy to encourage and induce non-citizens to remain in the United States illegally. They had been previously charged by complaint with the same offense. Torres and Johnson will be arraigned at a later date.

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

From September 2016 to July 2019, Torres and Johnson devised and participated in a fraudulent scheme to arrange and facilitate sham marriages for non-citizens who wished to remain in the United States despite lacking legal status or the proper documentation. They recruited U.S. citizen as potential spouses and paid them a fee in exchange for those U.S. citizens entering into sham marriages with Torres’ and Johnson’s non-citizen clients. Torres and Johnson arranged for the “couples” to obtain fraudulent marriage licenses and even arranged and charged their clients for wedding ceremonies and afterparties that were staged to make the sham marriages appear legitimate. Torres and Johnson advised their clients on ways to make their marriage appear legitimate on paper, including the opening of joint bank accounts and frequent meetings with their U.S. spouses – where they were advised to take pictures in a variety of locations and in different clothing – to document the relationship and give the appearance of cohabitation, even though none of the clients ever resided or intended to reside with their U.S. spouses. Torres and Johnson then helped their non-citizen clients fill out immigration forms to obtain permanent residency on the basis of materially false misrepresentations.

The charge in the indictment carries a maximum penalty of 10 years in prison and a fine of $250,000, or twice the pecuniary gain or loss resulting from the offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigation, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s indictment.

The government is represented by Assistant U.S. Attorney Sammi Malek of the National Security Unit in Newark.

The charge and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

TRENTON, N.J. – A Morris County, New Jersey, man today admitted his role in a reverse mortgage fraud scheme that exploited several elderly homeowners, U.S. Attorney Philip R. Sellinger announced.

Martin D. Eagan, 50, of Montville, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of conspiracy to commit bank fraud.

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

Eagan, principal of the Martin D. Eagan Law Firm, was an attorney licensed by the state of New Jersey with a practice in Morristown, New Jersey, that primarily focused on real estate transactions, such as loan originations, reverse mortgages and the refinancing of residential homes. 

From 2007 through 2010, Eagan, acting as a settlement agent, was required to comply with instructions established by financial institutions that provided loan funds to borrowers. As part of the lending process, Eagan was required to generate and certify HUD-1 settlement statements that Eagan submitted to lenders. The HUD-1 settlement statement itemized the receipt and disbursement of all funds for each real estate closing. HUD-1 settlement statements were required to be approved by a lender before a settlement agent could disburse funds. The disbursement of funds had to mirror the representations made on the lender-approved HUD-1.

Eagan and his conspirators submitted fraudulent documentation to lenders to persuade lenders to approve and fund reverse mortgages and the refinancing of existing mortgages. Fraudulent documentation submitted included false HUD-1s that concealed from the lenders the fact that disbursements of loan proceeds went to conspirators, or entities the conspirators owned or controlled, and false appraisals that overstated the value of homes.

Eagan, his conspirators, and others controlled the loan application process from the time the homeowners applied for loans to the disbursement of loan funds, and ultimately through the diversion of loan proceeds to conspirators. 

The conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for April 14, 2022.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s guilty plea.

The government is represented by Special Assistant U.S. Attorneys Kevin Di Gregory and Charlie L. Divine of the Federal Housing Finance Agency, Office of Inspector General.

NEWARK, N.J. – Three Middlesex County, New Jersey, residents were arrested today for their roles in fraudulently obtaining over $2.1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced.

Arlen G. Encarnacion, 35, of Perth Amboy, New Jersey, is charged by complaint with 11 counts of bank fraud, three counts of wire fraud, and two counts of money laundering. Kent Encarnacion, 28, of Perth Amboy, is charged by separate complaint with one count of bank fraud and two counts of money laundering. Jacquelyn Pena, 36, of Perth Amboy, is charged by separate complaint with three counts of bank fraud and two counts of money laundering. They are all scheduled to have their initial appearances by videoconference this afternoon before U.S. Magistrate District Judge Leda Dunn Wettre.

According to documents filed in these cases and statements made in court:

Arlen G. Encarnacion submitted 11 fraudulent PPP loan applications to two different lenders on behalf of nine purported businesses and three fraudulent EIDL applications to the Small Business Association (SBA) on behalf of three purported businesses. Kent Encarnacion submitted one fraudulent PPP loan application on behalf of a purported business to one lender and Jacquelyn Pena submitted three fraudulent PPP loan applications to two different lenders on behalf of three purported businesses.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.

The applications the defendants each submitted allegedly contained fraudulent representations to the participating lenders and the SBA, including bogus federal tax return documentation. The defendants also each fabricated the existence of employees and the wages paid to the non-existent employees through the purported businesses. According to Social Security Administration records, there were no Forms W-3, Transmittal or Wage and Tax Statements, nor Forms W-2, Wage and Tax Statements processed for any of the defendants’ entities between 2018 and 2020.

Based on the defendants’ alleged misrepresentations, the lenders and the SBA approved the defendants’ PPP loan and EIDL applications and provided their purported businesses with approximately $2.1 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Of this amount, Arlen G. Encarnacion received approximately $1.69 million, Kent Encarnacion approximately $156,000, and Jacquelyn Pena approximately $335,000. The defendants then transferred a substantial portion of the proceeds, including in connection with Jacquelyn Pena’s purchase of real estate and Arlen G. Encarnacion’s purchase of a luxury Lamborghini SUV.  

Each count of bank fraud charged in the complaints carries a maximum penalty of 30 years in prison and a $1 million fine; each count of wire fraud carries a maximum penalty of 20 years; and each count of money laundering carries a maximum penalty of 10 years in prison. Both the wire fraud and money laundering counts carry a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.

U.S. Attorney Sellinger credited postal inspectors of U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the Social Security Administration – Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge John Grasso; special agents of the Federal Housing Finance Agency – Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau – Office of Inspector General, under the direction of  Acting Special Agent in Charge Stephen Donnelly; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the U.S. Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to the charges. He also thanked the Middlesex County Prosecutor’s Office and the Perth Amboy Police Department for their assistance.

The government is represented by Assistant U.S. Attorneys Mark C. Orlowski and Olajide A. Araromi of the U.S. Attorney’s Office’s Government Fraud Unit in Newark.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – Philip R. Sellinger today took the oath of office as U.S. Attorney for the District of New Jersey.

U.S. Attorney Sellinger was the co-managing partner of the New Jersey office of an international law firm, an office he founded in 2002. He previously served as co-chair of the firm’s Global Litigation Practice Group from 2013 to 2017. From 1984 to 2002, Mr. Sellinger worked at a New Jersey law firm, where he held several leadership positions, including co-chair of the firm’s Litigation Department and member of the firm’s Management Committee. Mr. Sellinger previously served as an Assistant U.S. Attorney in the United States Attorney’s Office for the District of New Jersey from 1981 to 1984. Mr. Sellinger served as a law clerk for U.S. District Judge Anne E. Thompson for the District of New Jersey from 1979 to 1980.

Mr. Sellinger received his J.D. from New York University School of Law in 1979 and his B.A., summa cum laude, from the University of Massachusetts at Amherst, in 1976.

As the 62nd U.S. Attorney for the District of New Jersey, U.S. Attorney Sellinger is responsible for overseeing all federal criminal prosecutions and the litigation of all civil matters in New Jersey in which the federal government has an interest. Between the offices in Newark, Camden, and Trenton, Mr. Sellinger supervises a staff of approximately 155 federal prosecutors, and approximately 130 support personnel.

NEWARK, N.J. – A former Hudson County, New Jersey, couple was sentenced today for operating a Ponzi scheme in which they defrauded approximately 30 investors by making extraordinary guarantees about investment returns and then used the money for extravagant purchases and to pay off other victims, Acting U.S. Attorney Rachael A. Honig announced.  

Jennifer Wee Cifuentes, 40, and her husband, Alcibiades Cifuentes, 39, were each sentenced to 71 months in prison.

Alcibiades Cifuentes pleaded guilty on Nov. 8, 2019, and Jennifer Wee Cifuentes pleaded guilty on Nov. 18, 2019, both before U.S. District Judge Esther Salas in Newark federal court, to all six counts of an indictment charging each of them with four counts of wire fraud, one count of conspiring to commit wire fraud, and one count of stealing funds intended for investment in commodities. Judge Salas imposed the sentences today in Newark federal court.

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

Jennifer Wee and Alicbiades Cifuentes engaged in an investment fraud scheme from 2012 through March 2015. They induced victims to invest in the foreign currency and commodity markets through Cifuentes Fund Management (CFM), their hedge fund that purportedly invested in foreign currencies, and then almost immediately spent those investment funds on personal items, such as an Audi R8 automobile and jewelry. The couple would then pay back a portion of the victims’ money with money received from newly duped victims. The couple defrauded approximately 30 victims of more than $400,000. 

In addition to the prison terms, Judge Salas sentenced the each of the defendants to three years of supervised released and ordered them to pay $434,914 in restitution and forfeiture of $218,957.

Acting U.S. Attorney Honig credited inspectors of the U.S. Postal Inspection Service under the direction of Acting Inspector in Charge Raimundo Marrero, and investigators with the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas J. Mahoney, with the investigation leading to today’s sentencing. She also thanked the N.J. Bureau of Securities in the State Attorney General’s Division of Consumer Affairs, under the direction of Acting Attorney General Andrew Bruck and Bureau Chief Christopher W. Gerold, as well as the U.S. Commodity Futures Trading Commission’s Division of Enforcement, under the direction of Acting Director Vincent McGonagle, for their assistance.

The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the Cybercrime Unit and Courtney A. Howard of the Department of Justice.

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.

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.

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.

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. 

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.

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.

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.

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.

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.

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.

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, 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.

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.

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.

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.

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.

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.

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.