District of New Jersey

CAMDEN, N.J. B A Camden woman was sentenced today to 51 months in prison for conspiring to distribute heroin in the City of Camden.  

Elisa Rivera, 31, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging her with one count of conspiracy to distribute heroin within 1,000 feet of a school. During her sentencing hearing, Rivera agreed that the amount of heroin jointly attributable to her, as a member of the conspiracy, was three to 10 kilograms. She also acknowledged her role, as a member of the conspiracy, with respect to the distribution of cocaine and cocaine base.

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

A total of 19 defendants were arrested in late 2018 on drug-trafficking charges based on the FBI’s investigation of a drug-trafficking organization that ran the open-air narcotics trade on the 400-500 block of Pine Street in Camden for several months in 2018. The investigation used video surveillance, confidential informants, consensual recordings, controlled drug purchases, and several court-authorized wiretaps to uncover the inner workings of the drug-trafficking organization. The organization included street-level sellers like Rivera, who worked various shifts selling drugs to customers and collecting drug proceeds. These sellers were supervised by different layers of managers who, in turn, supplied them with pre-packaged heroin, some of which was mixed with fentanyl, as well as cocaine and crack cocaine. The FBI and other law enforcement officers recovered multiple firearms from different locations connected to the drug organization at the time of the 2018 arrests. 

Seventeen already have entered guilty pleas on drug conspiracy charges. Three defendants are awaiting trial; the charges against them are merely accusations, and they are presumed innocent unless and until proven guilty.

In addition to the prison term, Judge Bumb sentenced Rivera to six years of supervised release.

Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Grace C. MacAulay; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing. She also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.

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

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

CAMDEN, N.J. – A Camden County, New Jersey, woman was found guilty for her role in an extensive scheme to obtain money through fraudulently obtained refund checks issued by the U.S. Treasury, Acting U.S. Attorney Rachael A. Honig announced today.    ​

​Awilda Henriquez, 35, of Clementon, New Jersey, was convicted on Dec. 9, 2021, of one count of conspiracy to defraud the United States government and steal United States mail, 13 counts of theft of government money, and 13 counts of aggravated identity theft, following a 10-day trial before Senior U.S. District Judge Robert B. Kugler.

​According to documents filed in this case and the evidence at trial:

Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They then complete Form 1040 tax returns using the fraudulently obtained information, and they falsify wages earned, taxes withheld, and other data, to always ensure that the fraudulent tax returns generate a refund. They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access. With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control or cashing the checks at check cashing businesses.

The investigation revealed that for the 2013 tax year more than 3,300 SIRF tax returns were filed using the names and Social Security numbers of residents of Puerto Rico and the refunds were directed to be mailed to a small section of Pennsauken, New Jersey. Of the 3,300 returns filed, several of the refund checks were issued and ultimately cashed at check cashing agencies in New Jersey, Philadelphia, and New York using fraudulent identifications, including fake New Jersey driver's licenses, fake Social Security cards, and fake Department of Homeland Security Permanent Resident Identification cards.

On March 28, 2018, a Camden grand jury returned an indictment against Henriquez and her conspirators, Alberto Sanchez, Jorge Gutierrez, and Roque Bisono. Henriquez, Sanchez, Gutierrez and Bisono, and their conspirators, obtained stolen identities of residents of Puerto Rico and used them to file fraudulent income tax returns seeking federal tax refunds to which they were not entitled. The conspirators recruited mail carriers from the U.S. Postal Service as part of the scheme to steal the tax refund checks from the mail. The mail carriers were paid for every U.S Treasury check that was stolen. Henriquez and her conspirators recruited and paid “check couriers” to cash the tax refund checks in a variety of ways, including at check cashing businesses in New Jersey, where Henriquez paid the tellers to also participate in the scheme. The check couriers presented fraudulent identifications at the check cashing businesses matching the names on the tax refund checks in order to cash the checks, which the tellers cashed because they were paid by Henriquez to do so. In total, the scheme caused $565,091 in losses to the U.S. Treasury.  

Sanchez pleaded guilty on Aug. 28, 2019, to two counts of theft of government funds, two counts of aggravated identity theft, and one count of witness tampering and was sentenced by Judge Kugler on Dec. 13, 2019, to 45 months in prison. Gutierrez pleaded guilty on Oct. 27, 2021, to conspiracy to defraud the United States, and is scheduled to be sentenced on March 1, 2022. Bisono pleaded guilty to conspiracy to defraud the United States, theft of government funds, aggravated identity theft, and false statements on November 7, 2018, and sentencing is set for March 21, 2022. The sentencing of other conspirators remains pending.  

The conspiracy to defraud the United States government count carries a maximum potential penalty of five years in prison. The counts of theft of government funds are punishable by a maximum potential penalty of 10 years in prison. The counts of aggravated identity theft are punishable by a statutory mandatory prison sentence of two years that must be served consecutively to any term of imprisonment imposed for the violation of any other count. All the counts are also punishable by a fine of up to $250,000, or twice the gain or loss caused by the offense, whichever is greatest. Henriquez’s sentencing is scheduled for April 12, 2022.  

Acting U.S. Attorney Honig credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark and Acting Special Agent in Charge Yury Kruty in Philadelphia; and special agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi. She also thanked the U.S. Postal Inspection Service for its assistance with the investigation leading to today’s conviction.

The government is represented by Senior Trial Counsel Jason M. Richardson and Assistant U.S. Attorney Christina O. Hud of the Criminal Division.

CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 27 months in prison for conspiring to distribute oxycodone pills in connection with his role in a drug trafficking ring, Acting U.S. Attorney Rachael A. Honig announced.

Anwar Abdulah, 33, of Pennsauken, previously pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute and possess with intent to distribute oxycodone and distributing and possessing with intent to distribute quantities of oxycodone. Judge Bumb imposed the sentence today in Camden federal court.

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

Abdullah admitted that on multiple occasions from January 2020 to March 10, 2020, he obtained oxycodone from Erick Bell in and around Camden and resold that oxycodone. For example, Abdullah admitted that, on Feb. 21, 2020, he provided $1,440 to Bell so that Bell could purchase 120 15 mg oxycodone pills from another individual. Bell then provided Abdullah with the oxycodone pills that Bell bought using Abdullah’s money, and Abdullah resold the pills to others. Oxycodone is a Schedule II controlled substance, meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.

In addition to the prison term, Judge Bumb sentenced Abdullah to three years of supervised release.

Bell previously pleaded guilty and is scheduled to be sentenced Feb. 4, 2022.

Acting U.S. Attorney Honig credited special agents of the FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; the New Jersey Office of Homeland Security and Preparedness, under the direction of Acting Director Laurie R. Doran; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to the charges. She also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration for their assistance.

The government is represented by Assistant U.S. Attorney Sara F. Merin of the Newark Office.

NEWARK, N.J. – A Paterson man with prior felony convictions was sentenced today to 57 months in prison for illegally transporting and selling 16 firearms for over $8,000 on four occasions beginning in July 2019, Acting U.S. Attorney Rachael A. Honig announced. 

Floyd Henry, aka “HK,” 36, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of illegally engaging in the business of dealing in firearms and four counts of possession of firearms and ammunition by a convicted felon.

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

From July 15, 2019, through Sept. 25, 2019, Henry engaged in the business of dealing firearms, while not being a federally licensed importer, licensed manufacturer, or licensed dealer.  On four occasions, in Passaic County, Henry sold or attempted to sell a total of 16 firearms, including two semi-automatic rifles, three revolvers, and 11 semi-automatic pistols, as well as over 100 rounds of ammunition, in exchange for over $8,000. Henry had purchased or obtained the firearms and ammunition in other states, transported them to New Jersey, and sold them to an individual in Passaic County.

In addition to the prison term, Judge Hayden sentenced Henry to three years of supervised release.

Acting U.S. Attorney Honig credited Special Agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; officers with the Passaic County Sherriff’s Office, under the direction of Sheriff Richard H. Berdnik; the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s arrest and charges.

The government is represented by Assistant U.S. Attorney Christopher D. Amore of the U.S. Attorney’s National Security Unit in Newark.

TRENTON, N.J. – A Middlesex County, New Jersey, man was sentenced today to 30 months in prison for fraudulently receiving Payment Protection Program (PPP) funds and depositing a stolen and altered U.S. Treasury check, Acting U.S. Attorney Rachael A. Honig announced today.

Bernard Lopez, 40, previously pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to an information charging him with one count each of bank fraud and theft of government funds. Judge Sheridan imposed the sentence today by videoconference.

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

Lopez devised a scheme to commit bank fraud through which a stolen and altered U.S. Treasury check was deposited into a corporate bank account Lopez created in the name of Pezlo Management LLC. The check was altered to be made payable to Pezlo in the amount of $211,886 and was then deposited into Pezlo’s corporate bank account. Lopez later withdrew or transferred the stolen proceeds from Pezlo’s bank account before the bank could detect the fraud.

On June 24, 2020, Lopez caused to be submitted a fraudulent PPP loan application to a lender on behalf of Company-1, a purported business that Lopez controlled. The Small Business Administration oversees the PPP, which is designed to provide forgivable loans to small businesses affected by the coronavirus pandemic. Applicants for PPP loans apply directly to banks or financial institutions participating in the program; in those applications, applicants make affirmative certifications about their average monthly payroll expenses and number of employees. Applicants also certify their intent to spend PPP proceeds on permissible business expenses, such as payroll costs, rent, utilities, and interest on mortgages. PPP loans may be entirely forgiven if the recipient spends the loan proceeds on these permissible expenses within a designated period after receiving the proceeds.

Lopez’s PPP application falsely represented that Company-1 employed 25 employees, had a monthly payroll expense of approximately $192,000, and had mortgage/lease and utilities expenses. Company-1 did not, in fact, employ any employees, nor did it incur payroll or utility expenses. Based on Lopez’s misrepresentations, the lender approved Lopez’s PPP loan application and provided Lopez’s purported business with $481,502 in federal COVID-19 emergency relief funds meant for distressed small businesses. Lopez then converted a portion of the proceeds for his own use.

In addition to the prison term, Judge Sheridan sentenced Lopez to three years of supervised release and ordered restitution of $137,000 and forfeiture of $481,502.

Acting U.S. Attorney Honig credited special agents and task force officers of the U.S. Department of the Treasury-OIG, under the direction of Assistant Inspector General for Investigations Sally D. Luttrell, and special agents and task force officers of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today's sentencing. She also thanked special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, and special agents of the Federal Deposit Insurance Corporation Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca for assistance.

The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Fraud Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.

NEWARK, N.J. – The Department of Justice announced today that it has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core. The Rosamons Gifford Charitable Corporation was awarded $331,859 to administer PSN grant funds in the District of New Jersey.

The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorneys’ Offices.

“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” Deputy Attorney General Lisa O. Monaco said. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”

“Financial support like this from the Department of Justice fosters cooperation among federal, state and local law enforcement, as we work together to protect the people of New Jersey,” Acting U.S. Attorney Rachael A. Honig said. “These awards provide substantial resources to support important public safety initiatives.”

Grant funds will provide resources and training for law enforcement and prosecutors to combat violent crime and make their communities safer through a comprehensive approach to public safety that joins targeted enforcement with community engagement, prevention, research, and reentry efforts. With approval from BJA, the fiscal agent will begin the process of making subawards for PSN grant projects.

“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” Principal Deputy Assistant Attorney General Amy L. Solomon for OJP said. “The Office of Justice Programs is pleased to join with our U.S. Attorneys’ Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”

In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.

This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.

PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.

For a list of all grantees, please visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/FY21-Project-Safe-Neighborhoods-Awards.pdf

The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at  www.ojp.gov.

CAMDEN, N.J. – A Camden County, New Jersey, man with a prior child exploitation conviction admitted possessing child pornography, Acting U.S. Attorney Rachael A. Honig announced today.

James Tierney, 56, of Cherry Hill, New Jersey, pleaded guilty before U.S. Senior District Judge Robert B. Kugler in Camden federal court to one count of possession of child pornography.

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

In August 2020, law enforcement agents executed a search warrant at Tierney’s residence after receiving information from the National Center for Missing and Exploited Children that an online cloud account accessed from Tierney’s residence had uploaded images of child sexual abuse. While executing the search warrant, agents recovered Tierney’s cell phone, which contained multiple videos and images of child sexual abuse. Tierney admitted to agents that he used the cell phone and cloud account for possessing images of child sexual abuse.

Tierney has a prior New Jersey state conviction for endangering the welfare of a child/distribution of child pornography. The count of possession of child pornography after a prior child exploitation conviction carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison, and a maximum $250,000 fine. Sentencing is scheduled for April 12, 2022.

Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations, Cherry Hill Office, under the direction of Special Agent in Charge Jason J. Molina in Newark; the Camden County Prosecutor’s Office High Tech Crimes Unit, under the direction of Acting Prosecutor Grace C. MacAulay; and the New Jersey State Police, under the direction of Superintendent Patrick J. Callahan, with the investigation leading to today’s guilty plea. 

The government is represented by Assistant U.S. Attorney Jeffrey B. Bender of the U.S. Attorney's Office Criminal Division in Camden.

CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 42 months in prison for stealing more than $350,000 from a special needs trust, Acting U.S. Attorney Rachael A. Honig announced.

Eugene Young, 70, of Mount Holly, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of wire fraud. Judge Rodriguez imposed the sentence today in Camden federal court.

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

A special needs trust was established to provide for the supplemental care, maintenance, support, and education of a disabled individual and, in December 2017, had more than $1 million in assets in two bank accounts. In December 2017, Young caused the trust’s trustee, a senior citizen, to execute a power of attorney appointing him as the trustee’s agent.

Young used the power of attorney to gain access to the trust’s bank accounts and, between December 2017 and June 2019, used a variety of means to divert funds from the trust.  Young used a debit card associated with the bank accounts to make more than 650 purchases and approximately 200 ATM withdrawals. He also wrote checks from the accounts to himself, made other withdrawals from the accounts, and cashed portions of annuity checks that were the property of the trust. The funds were not used for the benefit of the trust’s beneficiary, as required by the terms of the trust, but rather for Young’s personal use. Young misappropriated more than $350,000 from the trust before his scheme was discovered.

In addition to the prison term, Judge Rodriguez sentenced Young to three years of supervised release and ordered to pay restitution of $359,560.

Acting U.S. Attorney Honig credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.

NEWARK, N.J. – A Burlington County, New Jersey, man was arrested today for swapping cell phone customers’ Subscriber Identity Module (SIM) numbers into mobile devices controlled by an individual who was paying the defendant for the swaps, Acting U.S. Attorney Rachael A. Honig announced.

Jonathan Katz, 40, of Marlton, New Jersey, is charged by complaint with one count of gaining unauthorized access to a protected computer. He is scheduled to appear before U.S. Magistrate Judge Michael A. Hammer and was released on $100,000 unsecured bond.

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

In May 2021, Katz, who was employed as a manager at a telecommunications store, used his managerial credentials to access several customer accounts and swapped the SIM numbers associated with the customers’ phone numbers into mobile devices controlled by another individual, enabling this other individual to control the customers’ phones and access the customers’ electronic accounts. This technique is often used to defeat accounts with two-factor authentication including but not limited to email, social media, and financial accounts.

In exchange for the swaps, Katz was paid in Bitcoin, which was traced back to Katz’s cryptocurrency account.

The charge of unauthorized access to a computer carries a statutory maximum of five years in prison and a fine of not more than $250,000 or twice the pecuniary gain to the defendant or twice the gross loss involved, whichever is greatest. 

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

The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Cybercrimes Unit in Newark.

NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 63 months in prison for distributing and conspiring to distribute 50 grams or more of actual methamphetamine, Acting U.S. Attorney Rachael A. Honig announced.

Henry Nieves, 45, of Rutherford, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute 50 grams or more of actual methamphetamine and one count of distributing and possessing with the intent to distribute 50 grams or more of methamphetamine. Judge Hayden imposed the sentence today by videoconference.

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

In September 2019, Nieves distributed and conspired with others to distribute and possess with intent to distribute crystal methamphetamine in New Jersey. In September 2019, law enforcement officers conducted a controlled purchase of methamphetamine from Nieves.  Subsequent laboratory testing showed that the substance contained 55.9 grams of pure methamphetamine. This high purity indicates that Nieves distributed crystal methamphetamine, or “ice,” which is a particularly dangerous form of methamphetamine.  In September 2019, law enforcement officers observed Nieves engage in other apparent narcotics transactions, and later seized additional amounts of methamphetamine from Nieves’ belongings, vehicle, and apartment. In all, law enforcement seized approximately 86 grams of methamphetamine from Nieves during the investigation.

In addition to the prison term, Judge Hayden sentenced Nieves to three years of supervised release.

Acting U.S. Attorney Honig credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Mark Pesce of the U.S. Attorney’s Office’s OCDETF/Narcotics Unit in Newark.

NEWARK, N.J. – A Bergen County, New Jersey, company today admitted its role in price gouging a chain of New Jersey grocery stores in connection with the sale of KN95 masks during the COVID-19 pandemic, Acting U.S. Attorney Rachael A. Honig announced.

TSC Agency LLC (TSC), a logistics and freight forwarding company based in Mahwah, New Jersey, pleaded guilty by videoconference before U.S. Magistrate Judge Jessica S. Allen to an information charging it with price gouging in violation of the Defense Production Act.

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

In March 2020, TSC and two partners purchased 250,000 KN95 filtering facepiece respirators from a foreign manufacturer. TSC and one of those partners then sold 100,000 masks to a chain of New Jersey grocery stores at prices in excess of prevailing market prices. TSC sold the masks at a price of $5.25 per mask, which amounted to a markup of more than 400 percent from its acquisition cost. Prior to the spread of COVID-19, TSC had no history of selling personal protective equipment. 

A violation of the Defense Production Act carries a maximum fine of $200,000, or twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss sustained by any victims of the offense, whichever is greatest. Sentencing for TSC Agency is scheduled for April 13, 2022.

Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Peter Fitzhugh in New York, with the investigation.

The government is represented by Assistant U.S. Attorney David V. Simunovich of the Government Fraud Unit in Newark and Nicholas P. Grippo, Chief of the Criminal Division in Newark.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit: https://www.justice.gov/coronavirus.

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

TRENTON, N.J. – An Ocean County, New Jersey, man today admitted possessing thousands of images and videos depicting child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.

Andrew Ramey, 34, of Brick, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of possession of child pornography.

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

From March 13, 2020, through June 8, 2020, Ramey downloaded and shared material containing images of child sexual abuse, via the BitTorrent Network, a publicly available online peer-to-peer (P2P) file-sharing network of linked computers. Users must download P2P software, which is widely available for free on the Internet. The software allows the user to place files into a designated “shared” folder on his or her hard drive, from which other BitTorrent users can then download those files directly to the “shared” folders of their own computers. Users can then search, select, and directly download, those files.

Law enforcement used investigative software to access the BitTorrent Network and downloaded video files containing images of child sexual abuse from a device or devices assigned to an IP address at Ramey’s residence. On Nov. 13, 2020, law enforcement searched Ramey’s residence and seized mobile phones belonging to Ramey. Analysis revealed the phones contained thousands of images and videos containing images of child sexual abuse, as well as BitTorrent software.

In a prior federal prosecution in 2018, Ramey was convicted of one count of possession of child pornography in the U.S. District Court for the District of New Jersey. For a repeat offender, the possession charge in the information carries a mandatory minimum penalty of 10 years in prison and a statutory maximum penalty of 20 years in prison, along with a fine of $250,000 or twice the gross pecuniary gain or loss, whichever is greater. Sentencing is scheduled for April 12, 2022.

Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations, Atlantic City, under the direction of Special Agent in Charge Jason J. Molina in Newark; detectives of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; the Brick Police Department, under the direction of Chief James Riccio; and the Mount Laurel Police Department, under the direction of Chief Stephen Riedener, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office Criminal Division in Trenton.

NEWARK, N.J. – A New Jersey pathology practice will pay $2.4 million to resolve allegations that it violated the False Claims Act by making false representations in connection with submissions to the Centers for Medicare & Medicaid Services (CMS), Acting U.S. Attorney Rachael A. Honig announced today. 

According to the government’s contentions in the settlement agreement:

Princeton Pathology Services P.A. (Princeton Pathology) submitted claims to Medicare under Current Procedural Terminology (CPT) code 85390-26 from Jan. 1, 2015, through Dec. 31, 2020. This CPT code requires written analysis by a pathologist, but Princeton Pathology submitted claims using this code without written substantiation in medical records. As a result, Princeton Pathology billed Medicare for analysis of tests that did not require analysis, causing Medicare to significantly overpay.

Contemporaneous with the civil settlement, Princeton Pathology also entered into a three-year Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), which requires, among other things, training, auditing, and monitoring designed to address the conduct at issue in the case as well as evolving compliance risks on an ongoing basis.

“Federal health care programs rely on practitioners to accurately bill for services they perform,” Acting U.S. Attorney Honig said. “The U.S. Attorney’s Office for the District of New Jersey will hold accountable physician practices that seek payment for unnecessary or unsubstantiated services.”

“Submitting claims for unsubstantiated services threatens the integrity of the Medicare program and will not be tolerated,” Scott J. Lampert, HHS-OIG Special Agent in Charge said. “We will continue to protect patients and taxpayers by holding accountable providers who endanger the integrity of federal health care programs and the beneficiaries they serve.”

The allegations arose from a lawsuit filed under the whistleblower provisions of the False Claims Act by Jayant Barai M.D. The False Claims Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. Dr. Barai will receive $456,000 from the federal share of the settlement.

The government’s pursuit of this lawsuit illustrates its efforts to combat healthcare fraud.  One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).  

Acting U.S. Attorney Honig credited special agents of the HHS-OIG, under the direction of Special Agent in Charge Lampert; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the settlement.

The government is represented by Assistant U.S. Attorney Daniel Meyler of the Health Care Fraud Unit in Newark. 

The lawsuit is captioned United States ex rel. Barai v. Princeton Pathology Services, P.A., et al. (D.N.J.). The claims settled by this agreement are allegations only, and there has been no determination of liability.

NEWARK, N.J. – A New York man was indicted today by a federal grand jury in connection with a scheme to defraud banks by using stolen and altered identities to fraudulently obtain credit cards and then using those cards to make millions of dollars in charges that were never repaid, Acting U.S. Attorney Rachael A. Honig announced.

Mohammad Mushtaq, 56, of Valley Stream, New York, is charged with one count of conspiring to defraud financial institutions, five counts of bank fraud, one count of access device fraud, and one count of aggravated identity theft. 

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

Mushtaq and his conspirators engaged in a scheme to use stolen and altered identities to obtain credit cards from financial institutions and then use those credit cards to make purchases that they had no intention to repay, leaving the financial institutions to bear the losses.

Mushtaq and his conspirators used the personal identifying information of people, including dates of birth, drivers’ license numbers, and Social Security numbers, to create “synthetic identities,” sometimes by pairing the name and Social Security number of actual persons with a fictitious birthdate, and sometimes by pairing the person’s Social Security number with a fictitious name and birthdate. They often used the name and Social Security number of a minor and altered the birthdate to make the identity appear to be that of an adult. Mushtaq altered the personally identifying information of his own spouse and minor child in this fashion to create fraudulent identities that were then used in furtherance of the scheme. 

Mushtaq and his conspirators used the stolen and synthetic identities to obtain lines of credit, primarily through opening credit card accounts at financial institutions (the “fraud cards”).  The fraud cards were maintained in good standing with the financial institutions long enough to establish the creditworthiness of the stolen and synthetic identities. Mushtaq and his conspirators then “busted out” the fraud cards by making large purchases and never repaying the debts. 

Mushtaq’s conspirator, Asif Ali, also established numerous purported companies that did little or no legitimate business (the “sham companies”).  Mushtaq and Ali used these sham companies to make hundreds of thousands of dollars’ worth of charges to the fraud cards, which were then deposited in bank accounts opened in the sham companies’ names.

The charge of conspiring to defraud financial institutions and the bank fraud charges each carry a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest. The access device fraud charge carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The aggravated identity theft charge carries a mandatory penalty of two years in prison, which must be served consecutively to any other term of imprisonment imposed.

Asif Ali, Tassadiq Hussain, and Shahid Akhtar previously pleaded guilty in connection with their roles in this and related schemes.  Ali is awaiting sentencing before U.S. District Judge Anne E. Thompson. Hussain and Akhtar were sentenced by Judge Thompson to 41 months and a sentence of time served, respectively. 

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

The charges in the indictment are merely allegations, and the defendant is presumed to be innocent unless and until convicted.

The government is represented by Acting U.S. Attorney Rachael A. Honig.

NEWARK, N.J. – A member of a neighborhood street gang that identifies as “300” operating in Hudson County, New Jersey, today admitted his role in a gang-related shooting, Acting U.S. Attorney Rachael A. Honig announced.

Marc Taylor, aka “Bando,” 20, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of aggravated assault with a dangerous weapon in aid of racketeering and one count of discharging a firearm during and in relation to a crime of violence.

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

On the July 7, 2020, Taylor and two others, all of whom are associated with violent street gangs in Jersey City, drove to rival gang territory and approached a group of individuals standing on a sidewalk. Taylor fired numerous rounds with a .45 caliber handgun through the front passenger seat window while another individual simultaneously attempted to fire a Tec-9 assault pistol through the sunroof. A 12-year-old was shot in the leg. This targeted assault in rival gang territory was a retaliation for prior gang violence.

The count of assault with a dangerous weapon in aid of racketeering activity is punishable by a maximum of 20 years in prison. The count of discharging a firearm during a crime of violence carries a mandatory minimum of 10 years in prison and a maximum sentence of life, which must run consecutively to any term of imprisonment imposed on any other charges.

Acting U.S. Attorney Honig credited the Jersey City Police Department, under the direction of Public Safety Director James Shea; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge Jeffrey Matthews in Newark, with the investigation leading to today’s guilty plea.

This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City.  As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.

The government is represented by Desiree Grace, Deputy Chief of the Criminal Division for the U.S. Attorney’s Office for the District of New Jersey

NEWARK, N.J. – A Sandy Springs, Georgia, man appeared in federal court today to face weapons charges after allegedly trying to get a firearm through security at Newark Liberty International Airport, Acting U.S. Attorney Rachael A. Honig announced.

Desmond Herring, 48, is charged by complaint with one count of carrying a weapon on an aircraft and one count of possession of a firearm and ammunition by a convicted felon. He appeared by videoconference this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was released on $100,000 unsecured bond, with home confinement and GPS monitoring.

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

On Nov. 29, 2021, Herring submitted a carry-on bag for inspection at Newark Liberty International Airport. During the x-ray screening of Herring’s luggage, a Transportation Security Administration (TSA) agent identified ammunition and a suspected firearm and contacted the Port Authority Police Department. Upon seeing that his bag had attracted additional attention, Herring left the security checkpoint area without his bag and walked to a departure gate for his flight to Atlanta, Georgia.

Further investigation of Herring’s bag revealed that it contained a 9 millimeter pistol, 10 rounds of 9 millimeter ammunition loaded into a magazine, and three boxes of ammunition that each contained 50 rounds of 9 millimeter ammunition. Herring was prohibited from possessing a firearm due to a 2010 federal conviction for conspiracy to distribute controlled substances.

Both charges in the complaint carry a maximum potential penalty of 10 years in prison.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and officers of the Port Authority Police Department, under the direction of Superintendent Edward Cetnar, with the investigation leading to the charges.  

The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office Violent Crimes Unit in Newark.

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

NEWARK, N.J. –  An Essex County man and a Hudson County man admitted possessing with intent to distribute over a kilogram of fentanyl, Acting U.S. Attorney Rachael A. Honig announced today.

Coco Latre, 32, of Belleville, New Jersey, pleaded guilty today before U.S. District Judge Kevin McNulty to an information charging him with possession with intent to distribute over one kilogram of fentanyl. Bryant Agurto, 33, of Hoboken, New Jersey, pleaded guilty by videoconference before Judge Kevin McNulty on Nov. 10, 2021, to an information that charged him with possession with intent to distribute over one kilogram of fentanyl.

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

On March 5, 2021, Agurto travelled from Hoboken to Latre’s residence in Belleville to retrieve fentanyl that had been packaged by Latre. After Agurto left Latre’s residence, law enforcement officers conducted a motor vehicle stop of Agurto’s car and found the package of fentanyl. Shortly thereafter, law enforcement officers searched Latre’s residence and recovered more fentanyl, seizing a total of 1.6 kilograms of fentanyl from the car and residence.

The offense to which Agurto and Latre pleaded guilty carries a mandatory minimum term of 10 years in prison, a maximum penalty of life in prison, and a fine of $10 million. Sentencing for Latre is scheduled for April 12, 2022. Sentencing for Agurto is scheduled for March 23, 2022.

Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Ray A. Mateo of the Opioid Abuse Prevention and Enforcement Unit in Newark.

NEWARK, N.J. – The former chief executive officer and owner of a pharmaceutical company was arrested this morning for embezzling millions of dollars from the company, Acting U.S. Attorney Rachael A. Honig announced.

John Klein, 75, of Palisades Park, New Jersey, is charged by complaint with one count of wire fraud. Klein is scheduled to appear by videoconference today before U.S. Magistrate Judge Michael A. Hammer.

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

Klein was the majority shareholder and CEO of a pharmaceutical company. In July 2016, Klein hired as chief financial officer an individual who created a profit and loss statement showing the pharmaceutical company’s sales and corresponding receivables. According to that individual, Klein provided information that included an account receivable of approximately $3.9 million from a customer that had not been collected. In December 2016 and January 2017, the pharmaceutical company, with Klein’s knowledge and approval, put a reserve against the uncollected receivable in the financial statements.

Klein controlled and used a pre-existing pharmaceutical company bank account. A review of that account revealed that the approximately $3.9 million was transferred into the bank account in May 2016. In a June 2016 email, Klein acknowledged that the invoices related to the approximately $3.9 million had been paid in full. A review of the company bank account also showed that following the wire transfers of approximately $3.9 million, Klein made numerous personal expenditures out of the account, including credit card payments for his himself and his wife, payment of property taxes, and tuition payments for his child’s private school. 

The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross profits or twice the gross loss suffered by the victims of his offense, whichever is greatest.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s arrest.

The government is represented by Assistant U.S. Attorneys Anthony Torntore and Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.

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

CAMDEN, N.J. – A Camden man was sentenced today to 120 months in prison for unlawfully possessing a firearm and ammunition, Acting U.S. Attorney Rachael A. Honig announced.

Marshall Onuorah, 32, of Camden, was convicted at trial in June 2021of one count of possession of a firearm and ammunition by a previously convicted felon. The jury deliberated two hours before returning the guilty verdict following a four-day trial before U.S. District Judge Noel L. Hillman in Camden federal court.

According to documents filed in this case and the evidence at trial:

On Jan. 29, 2020, Camden County police officers patrolling in their marked patrol car observed Onuorah, a previously convicted felon, appearing to use his hands to conceal an object from the officers’ view. As one of the officers exited the car to approach Onuorah, Onuorah fled. Both officers pursued Onuorah on foot for several blocks before Onuorah surrendered. During his flight, Onuorah discarded a 50-round drum magazine loaded with 46 rounds of ammunition and a firearm with a Glock slide and polymer frame that had been modified to fire as an automatic weapon.

In addition to the prison term, Judge Hillman sentenced Onuorah to three years of supervised release.

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Camden Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; officers of the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Grace C. MacAulay, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorney Jeffrey Bender and Senior Trial Counsel Jason Richardson of the U.S. Attorney’s Office in Camden.

TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted distributing cocaine in Monmouth County and conspiring to illegally sell firearms, including multiple handguns and a semi-automatic rifle, in and around Monmouth and Ocean counties, Acting U.S. Attorney Rachael A. Honig announced.

Enrique Quijada, 24, aka “El Enano 13,” aka “Kike,” of Freehold, New Jersey, pleaded guilty by videoconference before U.S. District Judge Anne E. Thompson to a superseding information charging him with one count of conspiracy to engage in firearms trafficking, one count of possession of a firearm by an alien unlawfully present in the United States, and one count of distribution of cocaine.

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

From May 2020 through September 2020, Manuel Espinosa-Ozoria, Waldin Espinosa-Ozoria, Enrique Quijada, Javier Rodriguez-Valpais, and Jacquelyn DeJesus were members of a gun trafficking conspiracy that spanned from Florida to New Jersey. DeJesus allegedly assisted Manuel Espinosa-Ozoria – the alleged leader of the conspiracy – by acting as a “straw purchaser” of firearms in Florida. Manuel Espinosa-Ozoria and DeJesus then transported the firearms from Florida to Monmouth County, where members of the conspiracy, including Quijada, sold the firearms to individuals working at the direction and supervision of the FBI. Rodriguez-Valpais sold a .223 caliber semi-automatic rifle to Quijada, who in turn sold the rifle to an individual working at the direction and supervision of the FBI. In addition to gun trafficking, Quijada admitted selling cocaine to an individual working at the direction and supervision of the FBI.

Three other members of the gun trafficking conspiracy – Javier Rodriguez-Valpais, Waldin Espinosa-Ozoria, and Jacquelyn DeJesus – previously have pleaded guilty in connection with this case. The charges against Manuel Espinosa-Ozoria remain pending.   

The count of conspiracy to engage in firearms trafficking carries a maximum potential penalty of five years in prison and a $250,000 fine. The count of possession of a firearm by an alien unlawfully present in the United States carries a maximum penalty of 10 years in prison and a $250,000 fine. The court of distribution of cocaine carries a maximum penalty of 20 years in prison and $1 million fine. Quijada’s sentencing is scheduled for April 5, 2022. 

Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked the FBI Tampa Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark and Tampa Field Divisions, and the Freehold Borough, New Jersey, police department for their assistance in the investigation.

In July 2021 the U.S. Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C. According to gun trace data, a significant number of firearms recovered in the New York/northern New Jersey area originate from outside the area. The new strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in the New York/northern New Jersey area with their counterparts in those other locations.

The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.

For the defendant whose charges remain pending, the charges and allegations are merely accusations, and he is presumed innocent unless and until proven guilty.

TRENTON, N.J. – A Monroe County, Pennsylvania man was sentenced today to 200 months in prison for his role in distributing large quantities of heroin and cocaine in the Bayshore area of Monmouth and Middlesex counties, Acting U.S. Attorney Rachael A. Honig announced today.

Guy Jackson, 49, of Effort, Pennsylvania, previously pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin.  Jackson also admitted to conspiring to distribute and possess with intent to distribute a quantity of cocaine. Judge Martinotti imposed the sentence today via videoconference.

Today’s sentence follows a coordinated takedown in November 2018 of 15 defendants charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine.  To date, 13 defendants have pleaded guilty. Supplier Gregory Gillens was sentenced on Sept. 8, 2020, to 10 years in prison.  Co-defendant Daniel McHugh was sentenced to 90 months in prison; co-defendant David Nagy was sentenced to one year and one day in prison; co-defendant Shavar Williams was sentenced to time served, which amounted to approximately 14 months in prison; co-defendant Daryl Jackson was sentenced to five years’ probation with 10 months of home detention; and co-defendant Brian Hall was sentenced to three years’ probation with eight months of home detention.  Co-defendants Krystal Cordoba, Daniel Alfano, Tyler Scarangello, Christy Dube, Richard Gethers, and Lashawn Mealing are awaiting sentencing. Defendant Deberal Rogers has been indicted, and charges were dismissed against one defendant.

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

From May 2017 to November 2018, Jackson and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region of Middlesex and northern Monmouth counties. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Jackson regularly supplied large quantities of heroin and cocaine for further distribution. Some of the heroin distributed by the conspiracy contained fentanyl, a dangerous synthetic opioid.

In addition to the prison terms, Judge Martinotti sentenced Jackson to five years of supervised release. Four vehicles that Jackson used in the course of the drug conspiracy, as well as in excess of $10,000 in cash that Jackson admitted was proceeds of drug trafficking, were previously seized and administratively forfeited.

Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff’s Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge George M. Crouch, Jr.; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Matawan Police Department, under the direction of Chief Thomas J. Falco, Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Acting Monmouth County Prosecutor Lori Linskey; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief Wayne Davis; the Hazlet Police Department, under the direction of Chief Ted A. Wittke; and the Aberdeen Police Department, under the direction of Chief Alan Geyer, with the investigation leading to this week’s sentencings. 

The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.

The charges and allegations against the remaining defendant are merely accusations, and she is presumed innocent unless and until proven guilty.

NEWARK, N.J. – A nonprofit healthcare system that owns and operates a network of healthcare entities has agreed to pay $150,000 to resolve allegations that it violated the Controlled Substances Act, Acting U.S. Attorney Rachael A. Honig announced today.

According to documents filed in this case and the contentions of the United States contained in the settlement agreement:

In July 2016, Virtua Health Inc., which owned and operated Virtua Voorhees Hospital through a subsidiary, reported to the Drug Enforcement Administration (DEA) that 400 tablets of oxycodone 30mgs had been lost or stolen from the inpatient pharmacy at the hospital. An investigation conducted by diversion investigators from the DEA revealed that from Oct. 8, 2015, through Nov. 2, 2016, Virtua Health failed to keep an accurate inventory of controlled substances, failed to keep the controlled substances in a secure location, and failed to properly supervise its employees concerning the controlled substances.  

Acting U.S. Attorney Honig credited diversion investigators of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to the agreement.

The government is represented by Assistant U.S. Attorney Kruti D. Dharia of the U.S. Attorney’s Opioid Abuse Prevention and Enforcement Unit in Newark.

The claims settled by this agreement are allegations only, and there has been no determination of liability.

CAMDEN, N.J. – A Dallas, Texas, man was sentenced today to 144 months in prison for his role in orchestrating and operating a fraudulent scheme to sell medical-related business opportunities, causing a loss of more than $5 million, Acting U.S. Attorney Rachael A. Honig announced. 

David Weinstein, 62, formerly of Cherry Hill, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with conspiracy to commit wire fraud and money laundering. Judge Kugler imposed Weinstein’s sentence today in Camden federal court.

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

From December 2015 through November 2020, Weinstein and his conspirators, Vijay Reddy and Kevin Brown, advertised business opportunities for sale on various websites. They purported to sell “blocks” of contracts with medical providers who allegedly wanted to outsource their medical billing, collections, appeals, answering, credentialing, or transcription functions. The buyers would then provide the contracted services to the medical providers and earn a profit. The conspirators promised to deliver a specified number of providers and pledged that their proprietary marketing efforts would provide a guaranteed client base to the buyers.

To induce buyers to purchase the business opportunities, the conspirators created fake references purporting to be buyers who vouched for their prior business purchases from the conspirators. In fact, the references were Weinstein, Reddy, and their friends and family members, and they used aliases and disguised phone numbers to speak with potential buyers.

After agreeing to purchase the blocks of medical providers, victims entered contracts with companies represented by Weinstein or Reddy and wired down payments ranging from $15,000 to $240,000 to accounts controlled by Weinstein or Brown. The remainder of each purchase price was payable when the conspirators fulfilled the contract by delivering the agreed-upon number of providers.

After receiving the down payments, Weinstein and Reddy typically delivered to each victim only a small number of medical providers. Despite not fulfilling the contracts of any of the buyers identified by law enforcement, the conspirators continued to sell blocks of medical providers to new buyers and refused to provide refunds for their failures to satisfy the terms of the contracts. The conspirators also periodically sold batches of previously signed contracts and disclaimed further responsibility for those contracts to insulate themselves from complaints or legal action from disgruntled buyers.

Brown acted as the business broker for most of the transactions and received a commission for the sales he brokered. Reddy or Weinstein acted as the seller and signed the contracts with the victims. Approximately 90 victims sent more than $5 million to accounts controlled by the defendants. The defendants spent the victims’ money on personal expenses, including a travel, jewelry, real estate, a wedding and a college education, and other business investments.

In addition to the prison term, Judge Kugler sentenced Weinstein to three years of supervised release and ordered him to pay $5.85 million in restitution. The court also ordered Weinstein to forfeit $1.98 million.

Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Diana V. Carrig of the U.S. Attorney’s Office Criminal Division in Camden.

Vijay Reddy pleaded guilty in June 2021 to an information charging him with conspiracy to commit wire fraud and wire fraud and is awaiting sentencing. 

The charges and allegations in the criminal complaints against Brown are merely accusations, and he is presumed innocent unless and until proven guilty.

TRENTON, N.J. – A Monmouth County, New Jersey, man was arrested today for impersonating a federal agent and illegally possessing a firearm as a convicted felon, Acting U.S. Attorney Rachael A. Honig announced.

Wesley Rucker, 34, of Tinton Falls, New Jersey, is charged by complaint with one count of possession of a firearm by a convicted felon, one count of impersonating a federal agent, and one count of possession of an imitation badge. He is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Tonianne J. Bongiovanni.

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

On Oct. 22, 2021, Rucker sought treatment in the emergency room of a Red Bank, New Jersey, hospital. Hospital personnel noticed that Rucker had a handgun in his waistband. Rucker told hospital security personnel that he was a member of law enforcement and displayed a Drug Enforcement Administration (DEA) identification. Hospital security had Rucker store his handgun in a locker in the hospital’s security office. Hospital personnel contacted the Red Bank Police Department after becoming suspicions of Rucker’s claimed affiliation with federal law enforcement. Responding officers confronted Rucker, and he told the officers that he was a “DEA agent.” Rucker displayed the same DEA identification to the officers. As the officers were investigating Rucker’s claims, Rucker attempted to leave the hospital without his handgun. Officers took Rucker into custody and seized the fake identification along with a fake DEA badge that Rucker had not used. Officers learned that Rucker was a previously convicted felon who had no prior affiliation with the DEA.

The felon in possession of a firearm charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000. The impersonation of a federal agent charge carries a maximum penalty of three years in prison, and a fine of up to $250,000. The possession of an imitation badge charge carries a maximum penalty of six months in prison, and a fine of up to $5,000.

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews; officers of the Red Bank Police Department, under the direction of Chief Darren McConnell; members of the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Lori Linskey; special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson; officers of the Old Bridge Police Department, under Acting Chief Joseph P. Mandola Jr.; and officers of the Matawan Police Department, under the direction of Chief Thomas J. Falco, with the investigation leading to the charges.

The government is represented by Special Assistant U.S. Attorney Christopher Matthews of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

NEWARK, N.J. – A Jersey City man was found guilty today of being a felon in possession of a firearm and carrying a firearm to facilitate distribution of heroin on the streets of New Jersey, Acting U.S. Attorney Rachael A. Honig announced.

Raymond Petway, 38, was convicted of one count of possession with intent to distribute heroin, one count of being a felon in possession of a firearm, and one count of possession of a firearm in furtherance of drug trafficking following a three-day trial before U.S. District Judge Kevin McNulty in Newark federal court.

According to documents filed in this case and the evidence at trial:

On Sept. 21, 2017, law enforcement officers from the Jersey City Police Department observed the Petway, a convicted felon, selling heroin at Woodlawn Avenue and Martin Luther King Boulevard in Jersey City while in possession of a loaded and stolen High-Point 9mm handgun. 

The count of possession with intent to distribute heroin carries a maximum potential penalty of 20 years in prison. The count of being a felon in possession is punishable by a maximum of 10 years in prison. The count of possessing a firearm in furtherance of drug trafficking is punishable by a mandatory minimum term of five years in prison and a maximum of life in prison, which must run consecutively to the term imposed for the drug trafficking count. Sentencing has not yet been scheduled.

Acting U.S. Attorney Honig credited the Jersey City Police Department, under the direction of Public Safety Director James Shea; special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; and the Hudson County Prosecutors Office Forensic Laboratory, under the direction of Hudson County Prosecutor Esther Suarez, with the investigation leading to today’s guilty verdict.

This is a Project Safe Neighborhoods (PSN) case. PSN is designed to create and foster safer communities through a sustained reduction in violent crime. The program’s effectiveness depends upon the ongoing coordination, cooperation, and partnerships of local, state, tribal, and federal law enforcement agencies and community organizations working together with the communities they serve – engaged in a unified approach coordinated by the U.S. Attorney in all 94 districts.

The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden and Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office National Security Unit in Newark. 

NEWARK, N.J. – The former chief financial officer and the former head of corporate communications for a biopharmaceutical company were arrested for their roles in an insider trading scheme, Acting U.S. Attorney Rachael A. Honig announced today.

Usama Malik, 47, and Lauren S. Wood, 33, both of Washington, D.C., are charged by complaint with securities fraud. Malik and Wood were both arrested on Dec. 1, 2021. Malik is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Zia Faruqui in Washington, D.C., federal court. Wood is scheduled to appear this afternoon before U.S. Magistrate Judge John F. Anderson in Alexandria, Virginia, federal court.

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

From 2018 through October 2020, Malik was the chief financial officer (CFO) of a New Jersey-based biopharmaceutical company listed on the NASDAQ Stock Exchange. On April 6, 2020, Company-1 publicly announced for the first time that its breast cancer drug – an antibody-based drug designed to treat certain breast cancer patients who had very limited treatment options beyond chemotherapy – had proven effective in pre-market clinical trials. In October 2020, Biopharmaceutical Company-2 acquired Company-1 for approximately $21 billion. 

As Company-1’s CFO, Malik was among the first, and one of the few, employees who received the material non-public information about the breast cancer drug before the April 6, 2020 announcement. Within minutes of obtaining that information, Malik passed it along to Wood, who lived with Malik at the time and was formerly the head of corporate communications for Company-1. Malik also provided the non-public information to a number of his relatives.  Before April 6, 2020, and within hours of receiving the insider information from Malik, Wood placed an order for approximately 7,000 shares of Company-1 stock, despite the fact that Company-1 stock had recently been downgraded by financial experts. After Company-1 announced on April 6, 2020, that its cancer drug had proven effective in pre-market clinical trials, Company-1’s stock price increased. After selling her shares, Wood more than doubled her investment, realizing gross profits of $213,618, and returning $65,000 to Malik.

The securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine. 

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

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges. She also thanked the SEC Enforcement Division, under the leadership of Director Gurbir S. Grewal, and the FBI, in the District of Columbia and the Eastern District of Virginia, for their assistance.

The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit and Deputy Chief of the Criminal Division Osmar J. Benvenuto.

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

NEWARK, N.J. – A U.S. Postal Service (USPS) employee was arrested today for stealing mail, including stealing credit cards and stimulus checks from the U.S. Department of the Treasury, Acting U.S. Attorney Rachael A. Honig announced.

Parrish Brookins, 29, of East Orange, New Jersey, is charged by complaint with one count of mail theft by a Postal Service officer or employee. He appeared this afternoon via videoconference before U.S. Magistrate Judge Jessica Stein Allen in Newark federal court and was released on $50,000 bond.

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

From January 2021 to July 2021, certain credit cards addressed to third-party victims and mailed to addresses on postal routes in Verona and Montclair, New Jersey, were stolen on or about the same dates that Brookins was delivering mail on those routes. These credit cards subsequently were activated by Brookins and others and used to make and attempt to make fraudulent purchases in New Jersey and elsewhere. From at least March 2021 to September 2021, Brookins also stole stimulus checks issued by the U.S. Department of Treasury likewise addressed to third-party victims and mailed to addresses on postal routes in Verona covered by Brookins, who then provided these checks to others for fraudulent purposes.

The mail theft charge is punishable by a maximum potential penalty of five years in prison and a maximum $250,000 fine.

Acting U.S. Attorney Honig credited special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s arrest. She also thanked special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, for its assistance.

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

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

NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 70 months in prison for receiving images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.

Joseph Hinksmon, 42, of Cranford, New Jersey, previously pleaded by videoconference before U.S. District Judge Claire C. Cecchi to one count of an indictment charging him with receipt of child pornography. Judge Cecchi imposed the sentence today in Newark federal court.

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

From July 10, 2019, through July 24, 2019, Hinksmon accessed the internet to download and receive videos and images of child sexual abuse to his personal hard drive. Hinksmon’s computer devices contained more than 600 images of child sexual abuse that Hinksmon had downloaded from the internet, including images of prepubescent children.

In addition to the prison term, Judge Cecchi sentenced Hinksmon to 10 years of supervised release and ordered him to pay restitution of $75,000.

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

The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the U.S. Attorney’s Office Violent Crimes Unit in Newark.

NEWARK, N.J. – A Middlesex County, New Jersey, woman was sentenced today to 72 months in prison for orchestrating a $1.7 million bank fraud scheme that involved writing fraudulent business checks, Acting U.S. Attorney Rachael A. Honig announced.

Tammy L. Martinez, 49, of South Amboy, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging her with one count of bank fraud. Judge Cecchi imposed the sentence today by videoconference.

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

From January 2014 through March 2019, Martinez served as an office manager and bookkeeper for a New Jersey based company. Beginning in January 2014, Martinez used her position at the company to issue fraudulent checks made payable to herself or cash and forged the signature of her manager on the fraudulent company checks. Martinez converted the fraudulent company checks into cash at bank branches in New Jersey. The scheme allowed Martinez to embezzle hundreds of thousands of dollars every year for more than half a decade, resulting in approximately $1.78 million in losses.

In addition to the prison term, Judge Cecchi sentenced Martinez to five years of supervised release and ordered her to pay restitution of $1.78 million. 

Acting U.S. Attorney Honig credited special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney in Newark, and the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Jamel Semper, Chief of the U.S. Attorney’s Office Organized Crimes and Gangs Unit.

TRENTON, N.J. – A Pennsylvania man was sentenced today to 18 months in prison for securing a federal guarantee on certain loans by making false statements to the Small Business Administration (SBA) about the creditworthiness of those loans while serving as the chief lending officer of a New Jersey bank, Acting U.S. Attorney Rachael A. Honig announced.

James Bortolotti, 53, previously pleaded guilty before U.S. District Judge Michael Shipp in Trenton federal court to an information charging him with one count of knowingly making false statements for the purpose of influencing the action of the SBA. Judge Shipp imposed the sentence by videoconference today.

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

While serving as the chief lending officer of a New Jersey bank (Bank-1), Bortolotti became aware of a Small Business Administration lending program to incentivize lenders, including banks, to loan money to small businesses by providing a 75 percent SBA-backed guarantee on loans. When a lender applies an SBA guarantee on a loan, the lender must disclose information related to the creditworthiness of the small business. Bank-1 hired a consulting firm to help the bank apply for SBA-backed guarantees.

On Feb. 29, 2012, a consultant from the consulting firm submitted an application to the SBA for a guarantee of approximately $3.75 million on loans totaling approximately $5 million made to a small business located in Robbinsville, New Jersey. The application contained false information related to the creditworthiness of the business. Bortolotti knew the application contained false information, but he nevertheless reviewed and signed the application on behalf of the bank.

In addition to the prison term, Judge Shipp sentenced Bortolotti to three years of supervised release and ordered him to pay restitution of $3.17 million to the SBA.

Acting U.S. Attorney Honig credited special agents of the SBA-Office of the Inspector General (SBA-OIG), Eastern Region, under the direction of Special Agent in Charge Amaleka McCall-Brathwaite; the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Inspector General Jay N. Lerner; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., Chief of the U.S. Attorney’s Office Health Care Fraud Unit in Newark.  

TRENTON, N.J. – A New York man with prior felony convictions was sentenced today to 24 months in prison for illegally possessing a firearm, Acting U.S. Attorney Rachael A. Honig announced.

Kevon Belfon, 35, of Jamaica, New York, previously pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of being a felon in possession of a firearm. Judge Shipp imposed the sentenced today in Trenton federal court.

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

On July 24, 2020, Belfon knowingly possessed a Taurus 9-millimeter semi-automatic handgun loaded with 10 rounds of ammunition in his vehicle in Stafford Township, New Jersey.  Belfon has two prior felony convictions, one of which involved a firearm. As a previously convicted felon, Belfon is not permitted to possess firearms.

In addition to the prison term, Judge Shipp sentenced Belfon to three years of supervised release.

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Field Division, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews; and the Stafford Township Police Department, under the direction of Chief of Police Thomas Dellane, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Ian D. Brater of the Criminal Division in Trenton.

TRENTON, N.J. – A Monmouth County, New Jersey man, was sentenced today to 87 months in prison for knowingly receiving child pornography, Acting U.S. Attorney Rachael A. Honig announced.

Herman Christopher Jensen, 68, of Union Beach, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to a one-count information charging him with knowingly receiving child pornography. Judge Sheridan imposed the sentence today in Trenton federal court.

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

The FBI began investigating Jensen for assuming the identity of a 17-year-old boy in order to entice and solicit an underage girl to send nude and sexually explicit images over the internet.  Jensen did this by creating a fake Facebook account, purporting to be a teenaged boy named “Kevin Bennett.” From January 2018 through about August 2018, Jensen used the “Kevin Bennett” Facebook account to communicate with the minor victim frequently, causing her to believe that she was involved in a romantic relationship with “Kevin Bennett.” 

Jensen requested nude and semi-nude photographs from the victim minor through Facebook’s messenger service. As time went on, Jensen received increasingly explicit videos depicting the minor victim engaging in sexually explicit activity. In August of 2018, Jensen revealed to the minor victim that he was not, in fact, the 17 year-old teenager he purported to be, but instead an adult named Chris Jenson. The victim continued to communicate with Jensen via the “Chris Jensen” Facebook account. In December 2018, the minor victim traveled to New Jersey to live with Jensen.

On Dec. 19, 2018, local authorities became involved in the matter causing the removal of the victim from Jensen’s residence.

In addition to the prison term, Judge Sheridan sentenced Jensen to lifetime supervised release.

Acting U.S. Attorney Honig credited special agents and task force officers of the FBI and the Red Bank Resident Agency’s Jersey Shore Gang and Criminal Organization Task Force, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s sentencing. She also thanked the Union Beach Police Department, under the direction of Chief of Police Michael J. Woodrow, and the New Jersey Division of Child Protection and Permanency, for their assistance.

The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Frauds Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.

CAMDEN, N.J. – A Cumberland County, New Jersey, man with a prior felony conviction today admitted participating in straw purchases to obtain firearms that he was not permitted to purchase, Acting U.S. Attorney Rachael A. Honig announced.

Darick Nollett, 32, of Heislerville, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of aiding and abetting the making of a false statement during the purchase of a firearm.

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

Nollett was not legally permitted to purchase firearms because of a 2015 felony conviction.  In 2018 and 2019, Nollett caused other individuals to purchase five firearms for him. These individuals falsely stated on U.S. Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Firearm Transaction Records that they were the actual buyer/transferee of the firearm when, in fact, Nollett was the actual buyer/transferee. In 2020, Nollett ordered “fuel filters” from China that he intended to modify and use as firearms silencers. Law enforcement officers executing a court-authorized search warrant of Nollett’s residence in May 2020 recovered more than 30 firearms, as well as ammunition and firearm accessories. Nollett will surrender these firearms, ammunition, and accessories as a result of today’s guilty plea.

The charge of aiding and abetting the making of a false statement during the purchase of a firearm carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for April 5, 2022.

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 ATF Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Damon E. Wood; officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; and the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.

NEWARK, N.J. – A French national will make his initial appearance today for his role in an attempt to fraudulently gain control of the rights to sell a weight-loss drug in the United States, Acting U.S. Attorney Rachael A. Honig announced.

Alain Bouaziz, 68, a French citizen and resident of the United Arab Emirates, was arrested at Newark Liberty Airport while attempting to depart the United States. Bouaziz is charged by complaint with making false statements to the U.S. Food and Drug Administration (FDA). He is scheduled to appear today by videoconference before U.S. Magistrate Judge Cathy L. Waldor.

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

Bouaziz is a French citizen and resident of the United Arab Emirates who represented himself to be the chief operating officer of Hexim Pharmaceuticals (Hexim), a company headquartered in Secaucus, New Jersey. Hexim was known as Alkopharma USA Inc. until its name was changed in June 2013.

Beginning in February 2018, Bouaziz submitted forged documents and made false statements to the FDA to fraudulently gain control of Sanorex, a weight-loss pharmaceutical owned by a major international pharmaceutical company (Pharmaceutical Company-1). Bouaziz sent letters and documents by email and in hard copy to the FDA falsely stating that Hexim had purchased the New Drug Application for Sanorex and requesting a meeting about marketing Sanorex in the United States. Bouaziz knew these representations were false because Hexim had not purchased the rights to Sanorex from Pharmaceutical Company-1. The documents that Bouaziz submitted to the FDA contained multiple forgeries and false statements, including one example where an earlier agreement between Alkopharma and Pharmaceutical Company-1 had been altered to purport to show a sale of Sanorex to Hexim.

The false statements charge carries a maximum term of five years in prison and a fine of up to $250,000 or twice the gross gain or loss caused by the offense, whichever is greatest.

Acting U.S. Attorney Honig credited special agents of the Food and Drug Administration, Office of Criminal Investigation, under the direction of Special Agent in Charge Jeffrey Ebersole, with the investigation leading to the charges.

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

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

NEWARK, N.J. – An Essex County man with a prior felony conviction today admitted illegally possessing a loaded handgun and a magazine, Acting U.S. Attorney Rachael A. Honig announced.

Bilal Ward, 29, of Newark, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of being a felon in possession of a firearm and ammunition.

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

On Sept. 26, 2020, pursuant to a lawful search of Ward’s car in Newark, law enforcement officers recovered a 9mm Taurus handgun, loaded with 15 rounds of ammunition, a magazine loaded with nine rounds of ammunition, and a bag of marijuana. Ward had previously been convicted of a felony and was prohibited from possessing firearms and ammunition.

The charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 7, 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 the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; 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, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s guilty plea. 

The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the Violent Crimes Unit and Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit.

NEWARK, N.J. – A Brooklyn man who is a previously convicted felon was sentenced today to 30 months in prison for possessing a machinegun, Acting U.S. Attorney Rachael A. Honig announced.

Christian Cordero-Gotay, 29, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to one count of possession of a machinegun, one count of possession of ammunition by a convicted felon, and one count of possession of a machinegun not registered to him in the National Firearms Registration and Transfer Record.

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

On Aug. 31, 2020, officers of the Clinton Township Police Department conducted a motor vehicle stop of a vehicle occupied by Cordero-Gotay and Genesis Bertefabian, 28. The officers detected an odor of burnt marijuana emanating from the vehicle. Pursuant to a search of the vehicle, an officer observed a loaded Glock magazine under the driver’s seat. The officers attempted to place Cordero-Gotay and Bertefabian under arrest, but Cordero-Gotay resisted arrest and Bertefabian got in the vehicle and drove away. 

A few minutes later, Bertefabian crashed into the side of a building. Bertefabian then exited the vehicle and walked into a wooded area behind the building. Law enforcement officers conducted a search of the wooded area where Bertefabian was seen, where they found a 9 mm Glock-type semiautomatic firearm. Law enforcement officials determined that the firearm was fitted with a Glock conversion device commonly referred to as “Glock Switch,” which has the effect of converting a semiautomatic Glock pistol into a machinegun. After obtaining a search warrant for the vehicle, law enforcement recovered two high-capacity magazines loaded with 9mm ammunition.

In addition to the prison term, Judge Wigenton sentenced Cordero-Gotay to three years of supervised release.

Acting U.S. Attorney Rachael A. Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, and the Clinton Township Police Department, under the direction of Lieutenant Thomas DeRosa, with the investigation leading to today’s sentencing.

The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the U.S. Attorney’s Office Violent Crimes Unit in Newark.

Bertefabian was charged by criminal complaint with illegal possession of a machine gun and possession of an unregistered firearm. The charges against Bertefabian remain pending, and he is presumed innocent unless and until proven guilty.

NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 27 months in prison for conspiring to use fake passports to open accounts at banks into which he and others deposited phony IRS refund checks, causing the banks to lose approximately $450,000, Acting U.S. Attorney Rachael A. Honig announced.

Mamadou Diallo, 44, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of bank fraud conspiracy and one count of false use of a passport. Judge Hayden imposed the sentence today in Newark federal court.

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

From June 2012 through December 2018, Diallo and others conspired to fraudulently obtain money from the victim banks. They created false passports by affixing their own pictures onto passports bearing others’ names. The conspirators opened fraudulent bank accounts at the banks using the doctored passports as photo identification. Then they deposited fraudulent IRS refund checks and withdrew the funds from ATM and teller terminals. The banks lost over $450,000.

In addition to the prison term, Judge Hayden sentenced Diallo to three years of supervised release, and ordered him to pay $150,052 in restitution.

Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina; the U.S. Department of Treasury-Office of Inspector General, under the direction of Inspector General Richard K. Delmar; and the New York State Department of Taxation and Finance, under the direction of Acting Commissioner Amanda Hiller and Director of Internal Affairs Brian Hickey, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the Special Prosecutions Division in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 32 months in prison for being a felon in possession of a firearm, Acting U.S. Attorney Rachael A. Honig announced.

Joseph Triplett, 32, of East Orange, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of being a felon in possession of a firearm. Judge Vazquez imposed the sentence today in Newark federal court.

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

On Sept. 6, 2019, Newark Police Department officers were patrolling the area of South 8th Street when they observed Triplett, a previously convicted felon, riding a bicycle on the sidewalk and maneuvering around pedestrians, in violation of local ordinances. One of the officers then identified himself as a police officer, showed his badge, and ordered Triplett to stop. Triplett refused to stop and rode off in the opposite direction on the sidewalk. Shortly after, Triplett discarded a black fanny pack which he had been wearing across his chest. After the officers pursued and arrested Triplett, they retrieved the fanny pack from the street and found inside a .38 caliber Smith & Wesson revolver, which was loaded with five rounds of ammunition. As a previously convicted felon, Triplett is not permitted to possess a firearm.

In addition to the prison term, Judge Vazquez sentenced Triplett to three years of supervised release.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Dong Joo Lee and Shontae Gray of the U.S. Attorney’s Office in Newark.

CAMDEN, N.J. – A Camden man was sentenced today to 63 months in prison for conspiring to distribute heroin and cocaine in the Camden area, Acting U.S. Attorney Rachael A. Honig announced.  

Jameel Byng, 28, of Camden, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with conspiracy to distribute 100 grams or more of heroin. During his sentencing hearing, Byng agreed that the amount of heroin jointly attributable to him, as a member of the conspiracy, was 400-700 grams. He also acknowledged his role, as a member of the conspiracy, with respect to the distribution of cocaine.

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

A total of 19 defendants were arrested in late 2018 on drug-trafficking charges based on the FBI’s investigation of a drug-trafficking organization that ran the open-air narcotics trade on the 400-500 block of Pine Street in Camden for several months in 2018. The investigation used video surveillance, confidential informants, consensual recordings, controlled drug purchases, and several court-authorized wiretaps to uncover the inner workings of the drug-trafficking organization. The organization included street-level sellers like Byng who worked various shifts on the “drug set,” 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 before Judge Bumb in the United States District Court.  Taken together, the guilty pleas in this case reflect that the various members of the drug-trafficking organization sold massive amounts of heroin, some of which was mixed with fentanyl, as well as crack cocaine and cocaine in Camden. Two defendants are awaiting trial. The case is currently set for trial before Judge Bumb on May 9, 2022. 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 Byng to five years of supervised release.

Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Acting Chief Larry Robb; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea. She also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.

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

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

CAMDEN, N.J. –  A California man today admitted defrauding victims in Cumberland County, New Jersey, through a bogus investment scheme, Acting U.S. Attorney Rachael A. Honig announced.

Christopher Glynn, 58, of Burbank, California, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to a superseding information charging him with one count of wire fraud and one count of money laundering. Glynn was indicted in August 2019. After evading law enforcement for nearly a year, Glynn was arrested in Medford, Oregon, and transported to New Jersey for prosecution.

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

In 2014, Glynn maintained a variety of corporate entities, including U.S. Grant Distribution Group, PG Philanthropic Initiative, Perrarus Global Philanthropic Initiative, and others. Glynn also claimed affiliation with an international trust that purportedly was funded with billions of dollars.

Relying on the air of legitimacy created by his various entities and the purported international trust, Glynn approached two victims in Vineland, New Jersey, and offered them an opportunity to “invest” hundreds of thousands of dollars in a “business development loan.” Glynn told the victims that this business development loan would be used for authorized business and legal expenses related to his entities and the international trust. The loan also would be used for expenses related to an animal welfare charitable foundation and shelter that Glynn was helping the victims to set up. Glynn assured the victims that the international trust would guarantee their business development loan, the loan would generate specific returns for the victims, and the victims could use the returns to fund their animal welfare charitable foundation and shelter.

As part of his fraudulent scheme, Glynn sent emails and other correspondence and contracts to the victims. Glynn also arranged for conference calls between himself, his associates, and the victims, including one call that Glynn claimed included “a direct representative from the NSA (National Security Agency), and a representative from either DHS (Department of Homeland Security) or the FBI.”  Glynn took these steps in order to convince the victims that they were investing in a legitimate business opportunity.

Glynn ultimately directed the victims to wire funds to various bank accounts that Glynn controlled, in order to fund the “business development loan.” The victims did so, relying on Glynn’s representations about how the funds would be used.

Instead of using the loan in the manner he had promised, however, Glynn and his associates misappropriated the victims’ loan money and used it for personal expenses and other expenses that were unrelated to any charitable or business purpose that the victims sought to advance or that Glynn promised to achieve.

The wire fraud count to which Glynn pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The money laundering count to which Glynn pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the value of the property involved in the offense. Sentencing is scheduled for April 5, 2022.

Acting U.S. Attorney Honig credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Andrew B. Johns of the U.S. Attorney’s Office Criminal Division in Camden.

CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted his role in a GoFundMe scheme that collected money from donors on the internet, purportedly to benefit a homeless man, Acting U.S. Attorney Rachael A. Honig announced.

Mark D’Amico, 42, formerly of Bordentown, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman to Count One of an indictment charging him with conspiracy to commit wire fraud.

On March 6, 2019, two conspirators – Katelyn McClure and Johnny Bobbitt Jr. – pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering, respectively, in connection with the same scheme. They are both awaiting sentencing.

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

In November 2017, D’Amico and McClure created a crowd-source funding page on GoFundMe’s website, titled: “Paying It Forward.” The campaign solicited donations from the public, purportedly for the benefit of homeless veteran Bobbitt. D’Amico and McClure posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a good Samaritan and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited, with a goal of $10,000, to get Bobbitt off the streets and provide living expenses for him.

The story told by D’Amico and McClure was not true. McClure never ran out of gas and Bobbitt never spent his last $20 for her. D’Amico and McClure conspired to create the false story to obtain money from donors based on false information. The false story was quickly picked up by local and national news outlets. The fraudulent campaign raised approximately $400,000 from more than 14,000 donors throughout the country in less than one month.

The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money was quickly spent by D’Amico and McClure on personal expenses over the next three months, including significant amounts by D’Amico for gambling, as well as for vacations, a BMW automobile, clothing, handbags and other personal items and expenses.

In mid-November 2017, when the donations had reached approximately $1,700, D’Amico and McClure told Bobbitt about the campaign and the false story. In December 2017, after D’Amico helped open a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.

The charge of wire fraud conspiracy carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is set for March 28, 2022.

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 guilty plea. She also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; and officers of the Florence Township Police Department for their work on the case.

The government is represented by Senior Trial Counsel Jason M. Richardson and Assistant U.S. Attorneys Jeffrey B. Bender and Diana Vondra Carrig of the U.S. Attorney's Office Criminal Division in Camden.

NEWARK, N.J. – Two Florida men have been indicted for their roles in durable medical equipment and compound medication schemes involving kickbacks and fraud, Acting U.S. Attorney Rachael A. Honig announced.

Thomas Farese, 79, of Delray Beach, Florida, and Domenic J. Gatto Jr., 47, of Palm Beach Gardens, Florida, are charged in an 11-count indictment with conspiracy to commit wire fraud, conspiracy to commit health care fraud, health care fraud, conspiracy to transact in criminal proceeds, transacting in criminal proceeds, and conspiracy to violate the federal Anti-Kickback Statute.

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

Farese and Gatto played key roles in a scheme to defraud health care benefit programs by offering, paying, soliciting, and receiving kickbacks and bribes in exchange for doctors’ orders for durable medical equipment (DME) without regard to medical necessity, namely orthotic braces. Farese, Gatto, and their conspirators had financial interests in multiple DME companies that paid kickbacks to suppliers of DME orders, in exchange for DME orders. The suppliers, in turn, used telemedicine companies to obtain DME orders without regard to medical necessity. The DME companies owned by Farese and Gatto subsequently fraudulently billed Medicare, TRICARE, CHAMPVA, and other health care benefit programs for the DME orders. The defendants concealed their ownership of the DME companies by using straw owners who were falsely reported to Medicare as the owners of the companies. Gatto also brokered a kickback relationship whereby he received an illegal kickback each time specific DME suppliers provided DME orders to the DME companies controlled by him and his conspirators. Gatto and his conspirators then laundered the proceeds of the scheme through several layers of bank accounts under their control.

Gatto and his conspirators entered into a related kickback scheme involving prescriptions for compounded medications. They agreed that suppliers of compounded medications would receive kickbacks in exchange for submitting the orders to the pharmacies with whom Gatto and his conspirators had relationships. Gatto also agreed with others that he would receive kickbacks from those pharmacies for the compounded medication orders submitted by those suppliers. The compounding pharmacies then billed Medicare for the compounded medication orders.

The defendants caused losses to Medicare, TRICARE, and CHAMPVA of approximately $25 million.

The charge of conspiracy to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison. The charges of conspiracy to commit health care fraud, health care fraud, conspiracy to transact in criminal proceeds, and transacting in criminal proceeds are each punishable by a maximum potential penalty of 10 years in prison per count. The charge of conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison.  he 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 special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Scott J. Lampert; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the ongoing investigations.

The government is represented by Assistant U.S. Attorneys Sean M. Sherman of the Opioid Abuse Prevention & Enforcement Unit in Newark, Ryan L. O’Neill of the Health Care Fraud Unit in Newark, Senior Trial Counsel Barbara Ward of the Asset Recovery & Money Laundering Unit in Newark, and Trial Attorney Darren Halverson of the Health Care Fraud Unit of the Criminal Division’s Fraud Section.

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. – A Passaic County, New Jersey, man was charged for illegally possessing a firearm in furtherance of drug distribution, Acting U.S. Attorney Rachael A. Honig announced today.

Jessie Mayfield, 59, of Paterson, New Jersey, is charged by complaint with one count of being a previously convicted felon in possession of a firearm and ammunition, 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. Mayfield will his initial appearance at a date to be determined.

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

On Aug. 24, 2021, Mayfield was under parole supervision for a prior state conviction. On that day, state parole officers conducted a routine supervised visit at Mayfield’s residence and observed a large amount of cash in different denominations on Mayfield’s bed. They saw text messages referencing drug transactions on his cell phone. Upon obtaining a warrant, the officers searched Mayfield’s residence and recovered a clear Ziploc baggie containing 115 wax-folds, each with a powdery substance suspected to be a controlled substance, a bag containing numerous empty plastic vials, and a digital scale – which is commonly used to weigh controlled dangerous substances. The officers also found a notebook with dates and times of drug transactions written in them. The officers recovered a Ruger .22 caliber semi-automatic pistol, along with a box containing 95 Winchester .22 caliber long rifle cartridges.

The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. The count of being a felon in possession of a firearm and ammunition carries a maximum potential penalty of 10 years in prison. The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed, and a maximum potential penalty of life in prison. Each firearm count carries a maximum fine of $250,000.

Acting U.S. Attorney Honig credited the members of the New Jersey State Parole Board, under the direction of Chairman Samuel J. Plumeri Jr.; Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; and special agents of 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 Dong Joo Lee of the U.S. Attorney’s Office Violent Crimes Unit in Newark.

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

TRENTON, N.J. – Three current and former Ewing Township Police Department officers were indicted by a grand jury on civil rights charges for their roles in assaulting a minor victim during the course of an arrest, Acting U.S. Attorney Rachael A. Honig announced today.

Michael Delahanty, 51, of Robbinsville, New Jersey, a retired Ewing Township Police lieutenant; and Matthew Przemieniecki, 43, of Hamilton, New Jersey, and Justin Ubry, 33, of Burlington, New Jersey, both current Ewing Township police officers, are charged in a two-count indictment with deprivation of rights under color of law. Delahanty and Przemieniecki are charged in Count One with a felony offense of deprivation of rights under color of law causing bodily injury, and Ubry is charged in Count Two with a misdemeanor offense of deprivation of rights under color of law. Delahanty, Przemieniecki, and Ubry surrendered this morning and are scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Tonianne J. Bongiovanni.   

According to the indictment:

At approximately 8:15 a.m., on Jan. 5, 2018, more than a dozen police officers responded to a report of a stolen vehicle in Ewing Township. Officers located the vehicle, which had crashed, and saw the driver of the vehicle running from the scene. Shortly thereafter, officers located the driver, a minor, in a detached shed on a residential property, removed the minor from the shed, and laid him face down on the snow-covered ground. While other officers handcuffed the victim, Delahanty used his boot to step on the back of the victim’s head, pressing his face into the snow. Przemieniecki kicked snow three times directly into the victim’s face, and Ubry also kicked snow directly into the victim’s face. Przemieniecki then used his boot to step on the victim’s head, again driving his face into the snow. The victim did not resist law enforcement at any time while on the ground. Under the circumstances, the force that defendants Delahanty, Przemieniecki, and Ubry applied to the victim was unreasonable and excessive and violated the victim’s constitutional right to be free from such force.

The felony civil rights charge against Delahanty and Przemieniecki carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. The misdemeanor civil rights charge against Ubry carries a maximum penalty of one year in prison and a maximum fine of $100,000.

Acting U.S. Attorney Honig credited special agents of the FBI Trenton Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Martha K. Nye of the Criminal Division in Trenton, and Senior Civil Rights Counsel R. Joseph Gribko of the U.S. Attorney’s Office’s Criminal Division in Newark.

The U.S. Attorney’s Office and the New Jersey Attorney General’s Office recently announced the Civil Rights Criminal Enforcement Initiative, a federal-state partnership that will enhance coordination in the investigation and prosecution of federal, state, and local cases involving civil rights violations by law enforcement officers and others acting under color of law. It combines resources from the U.S. Attorney’s Office, the Attorney General’s Office of Public Integrity and Accountability, and the FBI in a cooperative approach to criminal civil rights enforcement. 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. – The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In the District of New Jersey, five municipalities and one county police department were awarded funding totaling $11,784,672.

“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” Attorney General Merrick B. Garland said. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”

“The funding announced today will help make our neighborhoods safer and build trust between local law enforcement agencies and the communities they serve,” Acting U.S. Attorney Rachael A. Honig said. “Community-oriented policing has led to great strides in many of our New Jersey communities, and we look forward to continuing to strengthen those programs moving forward.”

The following police agencies in the District of New Jersey received awards:

Municipality                                                    Number of Officers                          Amount

Bayonne, City of

12

$1,500,000

Camden County Police Department

20

$2,500,000

New Brunswick, City of

6

$2,262,576

Paterson, City of

20

$3,772,096

Plainfield, City of

10

$1,250,000

Prospect Park, Borough of

4

$500,000

CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here.  

Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.

To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.  

The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.

NEWARK, N.J. – A Somerset County, New Jersey, man was charged today with allegedly distributing videos and images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.

Marcevan Manasse, 27, Somerville, New Jersey, is charged by complaint with one count of distribution of child pornography. He appeared by videoconference today before U.S. Magistrate Judge André M. Espinosa and was released on $100,000 unsecured bond.

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

From Sept. 20, 2020, through Nov. 22, 2020, Manasse distributed material containing images and video files of child sexual abuse, via a publicly available online peer-to-peer (P2P) file-sharing network of linked computers. Users must download the P2P program, which is widely available for free on the internet. The program allows the user to place files into a designated “shared” folder on a hard drive, from which other P2P program users can then download those files directly to the “shared” folders of their own computers. Users can then browse, search, select, and directly download, those files. The program typically keeps a log of each downloaded event.

Law enforcement officials conducted an undercover online session to access the P2P program and to download five video files and 11 images containing child sexual abuse from an IP address assigned to an internet service provider account associated with Manasse’s residence. These files included multiple visual depictions of pre-pubescent children being sexually abused by adults.

The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s charges. She also thanked the Somerset County Prosecutor’s Office for its assistance with the investigation.

The government is represented by Assistant U.S. Attorney Dong Joo Lee 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.

NEWARK, N.J. – A Passaic County man admitted today to receiving and possessing child pornography, Acting U.S. Attorney Rachael A. Honig announced.

Vaughn Tiedeman, 48, of West Milford, New Jersey, pleaded guilty to receipt and possession of child pornography before U.S. District Judge Susan D. Wigenton in Newark federal court.

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

Between July 2018 and April 2019, Tiedeman downloaded and possessed more than 600 images of child sexual abuse, including images of young children and depictions of violence.

The charge of receipt of child pornography carries a mandatory minimum penalty of five years in prison, a maximum of 20 years in prison, and a fine of $250,000. The charge of possession of child pornography carries a statutory maximum penalty of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 20, 2022.

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

The government is represented by Assistant U.S. Attorneys Sarah A. Sulkowski of the Violent Crime Unit and Francesca Liquori, Chief of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit, in Newark.

A federal jury in New Jersey convicted three El Salvadoran nationals on Racketeer Influenced and Corrupt Organizations Act (RICO) charges, including murder in aid of racketeering, stemming from their participation in Mara Salvatrucha, a violent international criminal racketeering enterprise commonly known as MS-13.

According to court documents and evidence presented at trial, between September 2014 and October 2015, Juan Pablo Escalante-Melgar, aka Humilde, 32, Elmer Cruz-Diaz, aka Locote, 33, and Oscar Sanchez-Aguilar, aka Snappy, 25, participated in the affairs of MS-13 by committing multiple racketeering offenses, including murder, extortion, witness tampering, and drug trafficking. Evidence presented at trial showed that in June or July 2015, Escalante-Melgar and Sanchez-Aguilar instructed an MS-13 member and an MS-13 recruit to kill a suspected rival gang member so that the MS-13 recruit could become a full member of MS-13.

On July 1, 2015, Jose Urias-Hernandez, then 19 years old, was shot and killed execution-style with a single shot to the back of his head as he entered his apartment building.

“These defendants brutally murdered Jose Urias-Hernandez because they believed he was a rival gang member, when he was actually an innocent victim,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Their actions caused irreparable harm to the victim’s family and the surrounding community. We will not stop in our pursuit of those MS-13 gang members, both in the United States and elsewhere, who prey on the communities they harm and intimidate.”

“MS-13 is a violent multinational criminal organization that engages in drug trafficking, intimidation, and the murder of witnesses, rival gang members, and – as happened here – innocent victims,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “The jury’s guilty verdicts in this case cannot bring back the life of José Urias Hernandez, but they do ensure that these defendants will be held accountable for their actions. We thank the jury for its service, and we reiterate our commitment to investigating and prosecuting MS-13 members, and others like them, who bring bloodshed to our communities.”

“This verdict demonstrates the FBI’s commitment to combat MS-13’s ruthless violence in America and internationally,” said Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division. “In collaboration with our federal, state, local and international partners, we will aggressively target and pursue violent offenders. Today we send a clear signal to others who engage in this type of gang violence that we will bring them to justice wherever they are based.”

According to court documents, MS-13 is a violent criminal gang founded in Los Angeles, California, and now active in El Salvador, Central America, and Mexico and numerous states across the United States, including New Jersey. MS-13 is governed by a core set of rules, including a standing order to kill rival gang members and a strict rule against cooperating with law enforcement. MS-13 is organized into a series of sub-units, or “cliques,” that operate in specific geographic locations, and each clique is typically controlled by a single leader, sometimes known as the “First Word.” Among cliques active in and around Hudson County, New Jersey, Escalante-Melgar was the First Word of the Pinos Locos Salvatrucha clique, and Cruz-Diaz was the First Word of the Hudson Locos Salvatrucha clique.

In addition to murder, MS-13 members trafficked drugs, extorted a restaurant operating in the gang’s turf, and intimidated witnesses to prevent cooperation with law enforcement. Evidence presented at trial showed that Escalante-Melgar and Cruz-Diaz conspired to murder a fellow MS-13 member, whom Salvadoran MS-13 leaders had “green-lighted” – or ordered to be killed – because he was suspected of cooperating with law enforcement.

Escalante-Melgar, Cruz-Diaz and Sanchez-Aguilar were among ten defendants charged in this investigation against MS-13 in New Jersey. One defendant, Christian Linares-Rodriguez, aka Donkey, 42, is a high-ranking MS-13 member who is currently incarcerated in El Salvador. All other defendants previously pleaded guilty to related offenses, as follows:

• Cesar Fuentes, aka Demonio, 29, of Honduras, conspiracy to commit murder in aid of racketeering.
• Juan Garcia-Gomez, aka Scooby, 26, of El Salvador, RICO conspiracy.
• Jose Gimenez-Lobos, aka Infernal, aka Terrible, 31, El Salvador, conspiracy to commit murder in aid of racketeering.
• Leonel Gonzalez, aka Cangri, 31, of El Salvador, conspiracy to commit murder in aid of racketeering.
• Jose Rivera-Robles, aka Layo, 36, of El Salvador, RICO conspiracy.

Escalante-Melgar, Cruz-Diaz and Sanchez-Aguilar were convicted of RICO conspiracy, conspiracy to commit murder in aid of racketeering, murder in aid of racketeering, using and carrying a firearm during and in relation to a crime of violence, and causing death through the use of a firearm.

At sentencing, Escalante-Melgar, Cruz-Diaz and Sanchez-Aguilar each face a mandatory minimum sentence of life in prison for murder in aid of racketeering, a maximum sentence of life in prison for the offenses of racketeering conspiracy and causing death through the use of a firearm; a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering; and a mandatory minimum consecutive sentence of 10 years’ imprisonment for the offense of using and carrying a firearm during and in relation to a crime of violence.

The FBI, Immigration and Customs Enforcement – Enforcement and Removal Operations, Newark Field Office, the Department of Homeland Security’s Homeland Security Investigations, the Hudson County Prosecutors Office, and the West New York Police Department investigated the case.

Trial Attorney Matthew K. Hoff of the Justice Department’s Organized Crime and Gang Section and Assistant U.S. Attorney Desiree Grace of the U.S. Attorney’s Office for the District of New Jersey prosecuted the case.

TRENTON, N.J. – A former medical laboratory sales representative today admitted participating in a scheme to offer and pay bribes and kickbacks in exchange for ordering genetic tests, Acting U.S. Rachael A. Honig announced today.

Terri Haines, 57, of Kennett Square, Pennsylvania, pleaded guilty by videoconference before U.S. District Judge Anne E. Thompson to an information charging her with conspiring to violate the anti-kickback statute.

Haines is the fifth defendant to plead guilty in bribery and kickback schemes involving doctors and medical employees in the Scranton, Pennsylvania, area.

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

Haines was not a health care provider, but made a living soliciting and collecting DNA samples from Medicare patients at health fairs. In exchange for commissions, Haines sent the DNA samples to a lab in New Jersey for “CGx” cancer screen testing. Haines was not authorized to order those CGx tests without a doctor’s sign-off. As a result, Haines paid a kickback and bribe to Dr. Lee Besen, of Scranton, Pennsylvania, to use his name and medical credentials to order CGx tests for the Medicare patients she met at fairs, even though Besen never actually attended any of the health fairs and never met the patients for whom the genetic tests were ordered. Medicare paid over $340,000 for CGx genetic tests that resulted from this scheme.

Besen has previously pleaded guilty for his role in this scheme and a related scheme in which he accepted monthly cash kickbacks and bribes in exchange for collecting DNA samples from Medicare patients and sending them for genetic tests to clinical laboratories in New Jersey and Pennsylvania.

The count of conspiracy to violate the federal anti-kickback statute is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greatest. Sentencing is scheduled for March 22, 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; IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and the U.S. Department of Health and Human Services, Office of Inspector General, Philadelphia Regional Office, under the direction of Special Agent in Charge Maureen R. Dixon, with the investigation leading to the charges. She also thanked the FBI Scranton Field Office, FBI Philadelphia Division, and the Pennsylvania Attorney General’s Office for their assistance.

The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit and Acting Principal Assistant U.S. Attorney Rahul Agarwal.

CAMDEN, N.J. – A Cumberland County, New Jersey, man today admitted to conspiring to commit wire and money laundering, and tax evasion, in connection with a romance fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.

Rubbin Sarpong, 37, of Millville, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to commit wire fraud, conspiring to commit money laundering and tax evasion.

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

From January 2016 to Sept. 3, 2019, Sarpong and his conspirators, several of whom reside in Ghana, allegedly participated in an online romance scheme, defrauding victims in New Jersey and elsewhere. Sarpong and the conspirators set up dating profiles on various dating websites, using fictitious or stolen identities and posing as United States military personnel who were stationed overseas. They contacted victims through the dating websites and then pretended to strike up a romantic relationship with them. After establishing virtual romantic relationships with victims on the online dating platforms and via email, the conspirators asked them for money, often for the purported purpose of paying to ship gold bars to the United States. Although the stories varied, most often Sarpong and the conspirators claimed to be military personnel stationed in Syria who received, recovered, or were awarded gold bars. The conspirators told many victims that their money would be returned once the gold bars were received in the United States. 

Sarpong and the conspirators used several email accounts and Voice Over Internet Protocol phone numbers to communicate with victims and instruct them on where to wire money, including recipient names, addresses, financial institutions, and account numbers. At least 40 identified victims wired money to Sarpong and others in the United States, including to 13 bank accounts controlled by Sarpong, some of which were in the names of his friends, relatives, and a fictitious business entity, Rubbin Sarpong Autosales. Occasionally, victims also mailed personal checks or cashier’s checks to the conspirators and also transferred money to the conspirators via money transfer services, such as Western Union and MoneyGram. The funds were not used for the purposes claimed by the conspirators – that is, to transport non-existent gold bars to the United States – but were instead withdrawn in cash, wired to other domestic bank accounts, and wired to other conspirators in Ghana.

While engaged in this fraud, Sarpong purchased property in Ghana and posted photographs of himself on social media showing him with large amounts of cash, high-end cars, designer clothing and expensive jewelry. Despite having received approximately $1.14 million in taxable income from the scheme during tax years 2016 through 2018, Sarpong filed no income tax returns and paid no income tax, resulting in a tax loss of $387,923.

The conspiracy to commit wire fraud and conspiracy to commit money laundering charges to which Sarpong pleaded guilty each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense, whichever is greatest. The tax evasion charge carries a maximum penalty of five years in prison and a $250,000 fine. As part of the plea agreement, Sarpong agreed to make restitution for the full amount of the loss, which is estimated at $1.76 million, as well as to pay $387,923 in taxes owed to the IRS. In addition, Sarpong agreed to make full restitution to the U.S. Department of Health and Human Services, the U.S. Department of Agriculture and the State of New Jersey for all monies paid in Medicaid and SNAP benefits for Sarpong and his children from September 2018 through August 2019. Sentencing is scheduled for March 21, 2022.

Acting U.S. Attorney Honig credited special agents of the FBI, Atlantic City Resident Agency, under the direction 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 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 Diana Vondra Carrig of the U.S Attorney’s Office in Camden.