District of New Jersey

CAMDEN, N.J. – A shift manager of a Camden drug-trafficking organization today admitted his role in conspiring to distribute more than one kilogram of heroin, Acting U.S. Attorney Rachael A. Honig announced.

Jose Diaz, 29, of Camden, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an indictment charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram of a mixture containing heroin, 280 grams or more of a mixture containing crack cocaine, a mixture containing cocaine and a mixture containing fentanyl.

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, who worked various shifts selling drugs to customers and collecting drug proceeds. These sellers were supervised by different layers of managers, including Diaz, 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. 

Sixteen other members of the drug-trafficking conspiracy have previously pleaded guilty in this case. The charges against two other defendants, Juan Figueroa and Christopher Vasquez, remain pending. Their trial is scheduled for May 9, 2022.

The count to which Diaz pleaded guilty carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing is scheduled for March 21, 2022.

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 A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.

For the defendants whose charges remain pending, the charges and allegations are merely accusations, and they are presumed innocent unless and until proven guilty.

TRENTON, N.J. – A Mercer County, New Jersey, man with six prior felony convictions was sentenced today to 100 months in prison for firearms and distribution of controlled substances offenses, Acting U.S. Attorney Rachael A. Honig announced.

Alfred Donaldson, 39, of Trenton, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with possession of a firearm and ammunition by a convicted felon and possession with intent to distribute heroin and cocaine.

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

On Jan. 4, 2019, law enforcement officers arrived at Donaldson’s residence to execute two arrest warrants issued for his failure to appear for his sentencing hearings on unrelated charges at the Mercer County Superior Court. They lawfully entered the residence and recovered a 9-millimeter Taurus handgun loaded with eight rounds of ammunition, 27 bricks of heroin, and more than one ounce of cocaine. At the time of the firearm and narcotics possession, Donaldson had sustained several convictions, including three convictions for controlled substance offenses. As a previously convicted felon, Donaldson is not permitted to possess firearms under federal law.

In addition to the prison term, Judge Thompson sentenced Donaldson to three years of supervised release.

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri, with the investigation leading to today’s sentencing.

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

TRENTON, N.J. – An Ocean County, New Jersey, man was charged with illegally possessing a loaded semi-automatic rifle as a previously convicted felon, Acting U.S. Attorney Rachael A. Honig announced today.

Jeremy W. Barringer, 46, of Toms River, New Jersey, is charged by criminal complaint with one count of possession of a firearm by a convicted felon. Barringer was taken into federal custody this morning, appeared today by videoconference before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court, and was detained.

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

On Oct. 24, 2021, at 3:05 a.m., Mantoloking and Bay Head police officers responded to the area of Herbert Street and Highway 35 in Mantoloking in response to a report of a motor vehicle crash involving a single vehicle. Officers found Barringer, a previously convicted felon, behind the wheel of his vehicle and observed a 5.56-millimeter semi-automatic rifle on the floorboard of the back seat of Barringer’s vehicle. The rifle was later found to be loaded with approximately 21 rounds of 5.56-millimeter full metal jacket ammunition. When officers ordered Barringer to step out of the vehicle, they observed that Barringer was wearing a tactical, bullet-proof vest and an empty handgun holster on his hip. After taking Barringer into custody, officers conducted a further search of Barringer’s vehicle and discovered a black 9-millimeter semi-automatic pistol with no serial number (commonly referred to as a “ghost gun”), loaded with 14 rounds of hollow-point ammunition, three 9-millimeter pistol magazines loaded with hollow-point ammunition, and three 30-round rifle magazines loaded with 5.56-millimeter ammunition.

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

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.; officers of the Mantoloking Police Department, under the direction of Chief of Police Stacy S. Ferris; and officers of the Bay Head Police Department, under the direction of Chief of Police William A. Hoffman, with the investigation leading to the charges. She also thanked detectives from the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, officers from the Ocean County Sheriff’s Office, under the direction of Sheriff Michael G. Mastronardy, and officers from the Toms River Police Department, under the direction of Chief of Police Mitchell A. Little, for their assistance in the investigation.

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

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. – Two New Jersey individuals have been sentenced to prison terms for their roles in a mortgage-fraud scheme, Acting U.S. Attorney Rachael A. Honig announced today.

Shonda Coleman, 49, of Toms River, New Jersey, was sentenced today by U.S. District Judge Susan D. Wigenton to 36 months in prison for her role in the scheme. Coleman previously pleaded guilty before Judge Wigenton to two counts of an indictment charging her and Robert Goodrich, 62, of Sayreville, New Jersey, with bank fraud. Goodrich had previously pleaded guilty before Judge Wigenton to the same two counts of the indictment to which Coleman pleaded guilty and was sentenced on April 7, 2021, sentenced to 27 months in prison. Judge Wigenton imposed Coleman’s sentence today by videoconference.

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

From 2009 to 2011 Coleman worked at Westinghouse Redevelopment Act Inc., a New Jersey business entity. In November 2009, Coleman submitted a fraudulent mortgage loan application to the lender to finance her own purchase of a home from Westinghouse. That application falsely represented, among other things, that Coleman owned $165,000 in cash, a representation intended to make Coleman appear more creditworthy than she actually was. In March 2011, Coleman again participated in the mortgage fraud scheme by helping to prepare and submit a mortgage application for a prospective buyer of a Westinghouse real estate property that she knew contained false information regarding the buyer’s finances.

Goodrich appeared at the closings for both the November 2009 and March 2011 transactions and signed settlement statements that he knew contained false information regarding the buyers’ creditworthiness.

Acting U.S. Attorney Honig credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and the U.S. Department of Housing & Urban Development, Office of Inspector General, Mid-Atlantic Region, under the direction of Special Agent in Charge Shawn Rice, with the investigation leading to the sentencings.

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

NEWARK, N.J. – A federal jury convicted three El Salvadoran nationals of 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, Acting U.S. Attorney Rachael A. Honig announced today.

“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,” Acting U.S. Attorney Honig said.  “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.”

“Today’s convictions are the result of a multi-agency investigation,” George M. Crouch Jr., FBI Special Agent in Charge in Newark, said. “Dedicated personnel from our federal, state and local partners worked in unison to combat this dangerous and violent criminal enterprise. This cooperation is, and will continue to be, a critical factor for successfully defending threats that endanger our communities and bring defendants to justice wherever they are based.”

“The convictions secured were years in the making, from the original arrests on immigration charges to convictions that include the murder of an innocent man,” John Tsoukaris, Field Office Director, ICE-ERO Newark, said. “The cooperation between various law enforcement agencies cannot be overstated here, as it led to these vicious criminals being taken off the streets. The brave officers of ICE Enforcement and Removal Operations will continue our work to make our communities safer by pursuing dangerous gang members and their criminal enterprises.”

“These individuals planned and executed the murder of an innocent person, ending a life through senseless violence due to mistaken identity,” Jason Molina, Special Agent in Charge for the Homeland Security Investigations (HSI) Newark field office, said.  “HSI remains committed to working with our federal, state, and local partners to disrupt and dismantle criminal gangs like MS-13.”

“The ongoing collaboration with our law enforcement partners is essential for protecting our Hudson County residents against violent crime and criminals,” Hudson County Prosecutor Esther Suarez said. “This conviction is a major win and I commend all of the investigators and Assistant U.S. Attorneys who worked on this case and helped to make our communities safer.” 

According to court documents and evidence presented at trial:

Between September 2014 and October 2015, Juan Pablo Escalante-Melgar, aka Humilde, 31, Elmer Cruz-Diaz, aka Locote, 33, and Oscar Sanchez-Aguilar, 25, 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.

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.” Two cliques are 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.

Additionally, 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.

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.

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.

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.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge Crouch in Newark; officers of the Immigration and Customs Enforcement - Enforcement and Removal Operations Newark Field Office, under the direction of Field Office Director Tsoukaris; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Molina in Newark: investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Suarez, and investigators of the West New York Police Department under the direction of Deputy Chiefs Santiago Cabrera and Alejandro De Rojas.

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, and Trial Attorney Matthew K. Hoff of the Justice Department’s Organized Crime and Gang Section.

NEWARK, N.J. – A former program manager of an international freight forwarding company today admitted his role in a scheme to embezzle over $550,000 from the company, Acting U.S. Attorney Rachael A. Honig announced today.

Morten Nielsen, 37, a Danish national residing in New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of wire fraud. 

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

As program manager for the freight forwarding company, Nielsen was responsible for the company’s contract relating to the Egyptian Foreign Military Sales program (EFMP), a program between the government of Egypt and the U.S. Department of Defense (DoD) that facilitated the sale and repair of military equipment from the DoD to Egypt. Nielsen was responsible for ensuring all logistics for the transportation of certain material between the United States and Egypt and for submitting all paperwork and billing invoices on behalf of the company to the Egyptian government. Once approved, those invoices were forwarded to the DoD for payment to the company.

From July 2017 through July 2019, Nielsen submitted fraudulent invoices from a sham company that he controlled to the freight forwarding company for work that the sham company never performed. Nielsen then sent the fraudulent invoices on behalf of his employer to the Egyptian government. The fraudulent invoices were approved by Egypt and, in turn, the DoD reimbursed the freight forwarding company. Nielsen caused his employer to pay the sham company he created approximately $559,000 over the course of two years, and then transferred those funds into his personal account.

The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or loss, whichever is greatest. Sentencing is scheduled for March 23, 2022.

Acting U.S. Attorney Rachael Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of 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 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. Attorney Fatime Meka Cano of the U.S. Attorney’s Office Government Fraud Unit in Newark.

CAMDEN, N.J. – A Cumberland County, New Jersey, man was arrested today for allegedly distributing and possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.

Edwin Torres, aka “Macho Torres,” 38, of Bridgeton, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He appeared today via videoconference before U.S. Magistrate Judge Ann Marie Donio in Camden federal court and was detained without bail.

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

In May 2020, a user of a social media application uploaded to a public chat group multiple videos of child sexual abuse from an internet provider address linked to Torres’ residence. In September 2021, law enforcement agents executed search warrants at Torres’ residence and on a Google account associated with the social media account used to distribute the videos in May 2020. The Google account, which also had been accessed from Torres’ residence, contained over 100 videos of child sexual abuse, including videos whose content matched the videos distributed in May 2020. During the search of Torres’ residence, agents seized Torres’ cellular telephone, which had been used to access the same Google account. 

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. The count of possession of child pornography carries a maximum penalty of 10 years in prison, and a fine of $250,000. 

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, with the investigation leading to today’s charges. She also thanked the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, for its assistance in the investigation. 

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

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

CAMDEN, N.J. – A Camden man was sentenced today to 200 months in prison for robbing two banks, and attempting to rob a third bank over a 10-day period in July 2018, Acting U.S. Attorney Rachael A. Honig announced.

Anthony L. Livingston, 50, was convicted in May 2019 of two counts of bank robbery, and one count of attempted bank robbery following a one-week trial before U.S. District Judge Renee Marie Bumb, who imposed the sentence today in Camden federal court.

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

On July 14, 2018, Livingston entered the Gloucester Township PNC Bank wearing sunglasses and a hat. He presented a demand note to the teller and then left the bank with the stolen cash.

On July 24, 2018, Livingston attempted to recruit a homeless man to rob the Stratford PNC Bank on his behalf. Livingston instructed the man on how to rob the bank, gave him a demand note to show to the teller, and drove the man to the bank. The man walked into the bank and told the employee that he had been sent there to rob the bank and that he did not want to do it, and that the bank should call the police because the person who had sent him was waiting for him outside.

Four hours later, Livingston recruited co-defendant Laque Hunter to rob the Collingswood Ocean First bank on his behalf, and drove Hunter to the bank. Hunter robbed the bank with a demand note. Livingston served as the getaway driver, and the two split the proceeds. Hunter pleaded guilty on April 2, 29019, and is awaiting sentencing.

At the time of these crimes, Livingston was on federal supervised release. On July 13, 2018, one day before the first bank robbery, Livingston completed a 220-month term of imprisonment for having robbed eight banks in southern New Jersey in 2000 and 2001.

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

Acting U.S. Attorney Honig credited special agents of the FBI-Cherry Hill, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Office, under the direction of Sheriff Gilbert “Whip” Wilson; the Collingswood Police Department, under the direction of Chief Kevin J. Carey; the Gloucester Township Police Department, under the direction of Chief W. Harry Earle; and the Stratford Police Department, under the direction of Chief Ronald M. Morello, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Kristen M. Harberg and Patrick C. Askin of the Camden Office.

CAMDEN, N.J. – A Camden County man was sentenced today to one year and one day in prison for his role in conspiring with members of a white supremacist hate group to threaten and intimidate African Americans and Jewish Americans by vandalizing minority-owned properties throughout the country in September 2019, Acting U.S. Attorney Rachael A. Honig announced.

Richard Tobin, 20, of Brooklawn, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with conspiracy against rights. Judge Kugler imposed the sentence today in Camden federal court.

“Richard Tobin encouraged hateful acts of violence against individuals and their houses of worship, based on their religion or the color of their skin,” Acting U.S. Attorney Rachael A. Honig said. “Justice demanded that he be held accountable for these racist and antisemitic actions, and we are proud to have joined with our colleagues in the Civil Rights Division and the Joint Terrorism Task Force in doing so in this case. Our commitment to protecting the civil rights of all in New Jersey is steadfast.”

“The defendant conspired with a white supremacist hate group to vandalize and destroy property owned by Jewish and Black Americans, intending to instill fear into those communities across the country,” Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division said. “This sentence makes clear that targeting persons owning and using property simply based on their race or religion will not be tolerated.  The Department of Justice will continue to prosecute civil rights conspiracies and vindicate the rights of victims of bias motivated crimes.”

“Richard Tobin’s white supremacist beliefs are abhorrent, but his beliefs aren’t why he’s going to prison,” Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division, said. “He actively conspired with others to commit a crime of violence, to victimize innocent people because of who they are or how they worship. That’s what crossed a line and made it the FBI’s business. We’re always going to pursue individuals inciting violent, hateful acts meant to intimidate and isolate members of our community.”

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

Tobin admitted that from Sept. 15 to Sept. 23, 2019, he was a member of a white supremacist group, “The Base,” and during that time, he communicated online with other members and directed them to destroy and vandalize properties affiliated with African Americans and Jewish Americans. Tobin dubbed this coordinated attack “Kristallnacht,” or “Night of Broken Glass,” after an attack in Germany on Nov. 9 and 10, 1938, in which Nazis murdered Jewish people and burned and destroyed Jewish homes, synagogues, stores and schools. Tobin implored members of The Base to post propaganda flyers and to break windows and slash tires belonging to African Americans and Jewish Americans. On Sept. 21, 2019, members of The Base vandalized synagogues in Racine, Wisconsin, and Hancock, Michigan, by spray painting them with hate symbols. 

A conspirator, Yousef Omar Barasneh, previously pleaded guilty to conspiracy against rights in federal court in the Eastern District of Wisconsin, for his role in vandalizing the synagogue in Racine, Wisconsin.    

In addition to the prison term, Judge Kugler sentenced Tobin to three years of supervised release.

Acting U.S. Attorney Honig credited special agents of the FBI Philadelphia Division’s South Jersey Resident Agency, under the direction of Special Agent in Charge Maguire, and the Joint Terrorism Task Force and its member agencies, including the Department of Homeland Security – Homeland Security Investigations, the New Jersey Office of Homeland Security and Preparedness, the New Jersey State Police and the Camden County Police Department, with the investigation leading to today’s sentencing. She also thanked the Brooklawn and Cherry Hill police departments for their assistance.

The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the U.S. Attorney’s Office in Camden and Trial Attorney Eric Peffley of the Civil Rights Division, Criminal Section.

NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a scheme to bribe postal employees to steal credit cards from the mail, Acting U.S. Attorney Rachael A. Honig announced.

Syid Boyd, 26, of Union, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to a two-count Information charging him with bribery of U.S. Postal Service (USPS) employees and credit card fraud.

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

Boyd recruited USPS employees to steal credit cards from the mail in exchange for cash bribes. Once Boyd had taken possession of the stolen credit cards and activated them by posing as the actual accountholders to whom the cards were originally mailed, he and others fraudulently used the stolen credit cards to purchase items, including electronics, at various retail stores throughout New Jersey.

Boyd faces a maximum term of imprisonment of 15 years for the bribery charge and 10 years for the credit card fraud charge.  Each charge also carries a maximum fine of $250,000, in part.

Acting U.S. Attorney Honig credited the postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, and special agents with the USPS-Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s guilty plea.

The government is represented by Jihee G. Suh, Deputy Chief of the Special Prosecutions Division in Newark.

Defense counsel: Brooke M. Barnett, Esq.

NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 84 months in prison for illegally possessing a firearm and ammunition in connection with an incident in which he shot another individual in Jersey City, Acting U.S. Attorney Rachael A. Honig announced.

Hassan Mosby, 40, of Jersey City, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon. Judge Wigenton imposed the sentence today by videoconference.

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

On Oct. 12, 2019, members of the Jersey City Police Department were dispatched to the area of Martin Luther King Drive between Woodlawn Avenue and Armstrong Avenue in Jersey City on a report of shots fired in the area.

Officers located a crime scene which included six 9-millimeter shell casings. While the officers were canvassing the area and processing the crime scene, they reviewed video footage from city cameras located near the shooting. The video showed a brief altercation within a group of males on the sidewalk on Martin Luther King Drive. At the end of the altercation, Mosby pointed and fired a handgun several times at a victim, striking the victim. 

By viewing additional video footage from other city cameras, officers were able to determine that Mosby walked directly to a nearby residence immediately after the shooting.  Officers went to the residence and were let inside by a resident, where they observed Mosby sitting in a chair. Mosby stated, “You got me, I’m who you are looking for. They had nothing to do with it.” Mosby was arrested and a search warrant was obtained for the residence. Officers then found a 9-millimeter semiautomatic handgun, which was loaded with seven rounds of ammunition.  

Subsequent ballistics testing determined that five shell casings found at the crime scene were discharged from the firearm found in the residence.  

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

Acting U.S. Attorney 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 Jersey City Police Department, under the direction of Public Safety Director James Shea, 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 in Newark.

Defense counsel: Lorraine Gauli-Rufo Esq., Verona, New Jersey

NEWARK, N.J. – A Mexican National was sentenced today to 30 months in prison for possessing with intent to distribute methamphetamine, Acting U.S. Attorney Rachael A. Honig announced.

Mayolo Castro Santamaria, 39, previously pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of possessing with intent to distribute 50 grams or more of methamphetamine. Judge Arleo imposed the sentence today in Newark federal court.

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

On June 26, 2020, Santamaria possessed 64.76 grams of methamphetamine in his vehicle.

In addition to the prison term, Judge Arleo sentenced Santamaria to three years of supervised release.

Acting U.S. Attorney Honig credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, and the Cedar Grove Police Department with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Alexandra Tsakopoulos and Edeli Rivera of the OCDETF/Narcotics Unit in Newark.

Defense counsel: Bishoui A. Beshai Esq., Rutherford, New Jersey

NEWARK, N.J. – A Union County, New Jersey, woman today admitted that she obstructed an investigation by destroying documents, Acting U.S. Attorney Rachael A. Honig announced. 

Latoyia McCollum, 46, of Hillside, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to an information charging her with obstruction of justice.

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

On Oct. 6, 2020, federal law enforcement officers executed a search at a location pursuant to a court-authorized search warrant. Prior to the execution of the search, Maurice Mills had been charged by complaint with wire fraud for fraudulently obtaining more than approximately $400,000 in unemployment insurance benefits from the state of New York. These fraudulently obtained benefits were often provided on a credit/debit card or by wire transfer into a bank account, where a debit card could then be used to withdraw the money.

Upon entering the location, law enforcement officers observed McCollum in the kitchen area next to a shredder that was on a counter. She was placing what appeared to be a credit/debit card into the shredder while on a face-to-face communication on a handheld mobile device. Law enforcement officers thereafter recovered from the shredder the shreds of what appeared to be a credit/debit card and approximately four credit/debit cards that had been placed into the shredder, but which had not been fully shredded. Law enforcement officers also recovered four credit/debit cards that were on the counter next to the shredder.

After being read and waiving her Miranda rights, McCollum stated that when law enforcement officers entered the location she was on the phone with Mills, who had instructed her to shred the credit/debit cards. Mills pleaded guilty on Sept. 20, 2021, to one count of wire fraud and is scheduled to be sentenced in February 2022.

The charge of obstruction of justice is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to McCollum or twice the gross loss suffered by the victims. McCollum is scheduled to be sentenced March 16, 2022.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Jonathan Mellone in Manhattan; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, with the investigation leading to today’s guilty plea. She also thanked the New York State Department of Labor, Office of Special Investigations for its assistance in the investigation.

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

Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 85 months in prison for his role in a Newark carjacking in which a firearm was brandished, Acting U.S. Attorney Rachael Honig announced today.

Rakeem McNair, 22, of Roselle, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of carjacking and brandishing a firearm in furtherance of the carjacking. Raquin Tanner, 26, of Newark, pleaded guilty on March 10, 2021, to one count of aiding and abetting the carjacking and was sentenced by Judge Arleo on July 26, 2021, to 78 months in prison.

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

On Aug. 13, 2019, the victim parked her car, which she used for her work as an Uber driver, on Summer Avenue in Newark. At approximately 11:00 p.m., the victim was sitting in the driver’s seat when three males approached her car. 

Video surveillance from the scene showed that Tanner walked with the other two males around the corner. As they neared the victim’s car, Tanner spoke to the other two, then went ahead of them, looked into the passenger seat of the car, and upon seeing the lone female driver, signaled the other two males to begin the carjacking.

One of the other males pointed a firearm through the driver’s side window, opened the door and attempted to physically remove the victim from the car. A struggle ensued, and McNair went around the car to aid his conspirator in dragging the victim from the car. McNair and the unidentified male threw the victim violently to the ground and drove away with the vehicle.

In addition to the prison term, Judge Arleo sentenced McNair to three years of supervised release.

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

The government is represented by Senior Trial Counsel Robert Frazer of the Organized Crime/Gang Unit in Newark.

Defense counsel:

McNair: Charles B. McKenna, Esq., Morristown, New Jersey

Tanner: Joseph R. Rubino Esq., Union, New Jersey

NEWARK, N.J. – A Passaic County, New Jersey, man with a previous felony conviction today admitted illegally possessing a firearm and ammunition, Acting U.S. Attorney Rachael A. Honig announced.

Aazhone Kawashire Edwin, 25, of Paterson, pleaded guilty before U.S. District Judge Claire C. Cecchi to an indictment charging him with possession of a firearm and ammunition by a convicted felon.

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

On June 7, 2020, Edwin possessed a firearm loaded with approximately 15 rounds of 9mm ammunition. Edwin has previously been convicted of at least one felony offense, including possession of controlled substances.

The firearms offense to which Edwin pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for March 15, 2022.

Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, and members of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora, with the investigation leading to today’s guilty plea.

This case is part of the Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Passaic County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.

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

Defense counsel: James A. Plaisted Esq., Hackensack, New Jersey

NEWARK, N.J. – A Newark man was sentenced today to 41 months in prison for illegal possession of a machinegun, possession of a firearm by a convicted felon, and possession of an unregistered firearm, Acting U.S. Attorney Rachael A. Honig announced.

Anthony Reynolds, 28, previously pleaded guilty before U.S. District Judge Brian R. Martinotti, who imposed the sentence today.

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

On May 2, 2020, while on patrol near Summer Avenue and May Street, Newark police officers saw Reynolds remove a .40-caliber Glock handgun from his waistband and place it underneath a parked vehicle. The gun was loaded with 11 rounds of ammunition and was fitted with a “Glock Switch,” which effectively converted it into a machinegun. The machinegun was not registered in the National Firearms Registration and Transfer Record, as required by law. Reynolds was previously convicted in federal court in the District of New Jersey of carjacking, an offense punishable by more than one year’s imprisonment.

In addition to the prison term, Judge Martinotti sentenced Reynolds 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, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s sentencing. She also thanked the Newark Department of Public Safety, under the leadership of Director Brian O’Hara, for its assistance in the investigation.

The government is represented by Assistant U.S. Attorneys Sophie E. Reiter of the Cybercrime Unit and Sarah A. Sulkowski of the Violent Crimes Unit in Newark.

Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender, Newark

NEWARK, N.J. – A San Bernardino County, California, man today admitted to possessing with intent to distribute approximately one kilogram of fentanyl, Acting U.S. Attorney Rachael A. Honig announced.

Jesus Candido Higuera-Parra, 26, of Ontario, California, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with possession with intent to distribute more than 400 grams of fentanyl.

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

On March 24, 2021, Higuera-Parra agreed with others to transport approximately one kilogram of fentanyl to a location in Union County, New Jersey. When Higuera-Parra arrived to meet the purchaser, he was arrested, and the fentanyl was recovered from the vehicle that he occupied.

The offense to which Higuera-Parra 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 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 sentencing.

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

Defense counsel: Jason F. Orlando Esq., Jersey City, New Jersey

NEWARK, N.J. – Acting U.S. Attorney Rachael A. Honig and Acting Attorney General Andrew J. Bruck today announced the creation of a joint federal-state Civil Rights Criminal Enforcement Initiative to 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.

The Civil Rights Criminal Enforcement Initiative will combine 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. 

“Our experience tackling violent crime with our state and local partners has taught us well that when it comes to areas of mutual concern – and the unconstitutional use of force and other violations of public trust by members of law enforcement is certainly one of those areas – we accomplish more when we work cooperatively than we do when we go it alone,” Acting U.S. Attorney Honig said. “The initiative that we announce today with the New Jersey Attorney General’s Office will ensure that we use all tools available to us to bring worthy cases in the appropriate jurisdiction and to hold accountable all those who would abuse their authority and deprive New Jerseyans of their civil rights.” 

“Today’s message is clear: at all levels of government, we’re committed to holding accountable those who abuse their power and violate the civil rights of others,” said Acting New Jersey Attorney General Bruck. “By working together, we can more effectively deploy our resources to ensure that allegations of civil rights violations are investigated and, where appropriate, prosecuted. We can and must do more to build trust with the communities we serve, and I’m grateful for an excellent working relationship with Acting U.S. Attorney Honig and my former colleagues at the U.S. Attorney’s Office as we tackle this challenge.”

In recent years, the U.S. Attorney’s Office for the District of New Jersey and the New Jersey Attorney General’s Office have identified the criminal enforcement of federal and state civil rights laws as a significant priority. The creation of the Civil Rights Criminal Enforcement Initiative underscores and advances that priority. The initiative will ensure open lines of communication among federal, state, and local partners; permit the simultaneous, rather than sequential, review of evidence by its members; facilitate rapid and efficient decision-making as to the allocation of resources; and foster cooperative decisions regarding the appropriate jurisdiction in which to charge a particular case. Once those decisions have been made, federal, state, and local partners will continue to share case-related information with one another where permissible and provide advice about investigative strategy and best practices. As a result, every case that meets the threshold for prosecution will be brought in the jurisdiction in which that prosecution will have the biggest impact, with the full cooperation and support of all members of the Initiative.

“Our duty to protect American citizens and uphold the Constitution is colorblind,” FBI Special Agent in Charge George M. Crouch Jr. said. “It doesn’t matter if you wear a blue uniform, a black robe, or street clothes when you go to work; every citizen is entitled to fair and equal treatment under the law. This initiative will further enable the FBI and our state and local law enforcement partners to work together in reviewing and evaluating cases. It should signal to anyone who carries a badge that we are even more committed to earning and keeping the trust instilled in us.”

Complaints of civil rights violations may be made by contacting the United States Attorney’s Office for the District of New Jersey at (855) 281-3339 or by filing a complaint online. Complaints may also be made by calling the New Jersey Attorney General’s Office of Public Integrity and Accountability at 1-844-OPIA-TIP (1-844-674-2847).

NEWARK, N.J. – Three men today admitted their roles in a health care fraud and kickback schemes, U.S. Attorney Rachael A. Honig announced.

Nicholas Defonte, 73, and Christopher Cirri, 63, both of Toms River, New Jersey, and Pat Truglia, 53, of Parkland, Florida, each pleaded guilty before U.S. district Judge Kevin McNulty in Newark federal court to conspiracy to commit health care fraud.

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

Each defendant played a role in defrauding health care benefit programs by offering, paying, soliciting, and receiving kickbacks and bribes in exchange for completed doctors’ orders for durable medical equipment, namely orthotic braces (DME orders):

• Truglia and his conspirators had financial interests in multiple DME companies. The DME companies paid kickbacks to suppliers of DME orders, including Cirri, Defonte, and Truglia, in exchange for DME orders, which the DME companies subsequently fraudulently billed to Medicare, TRICARE, CHAMPVA, and other health care benefit programs. Truglia and his conspirators concealed their ownership of the DME companies by using straw owners who were falsely reported to Medicare as the owners of the companies.

• Truglia, Cirri, Defonte, and their conspirators owned and operated multiple call centers through which they obtained DME orders for beneficiaries of Medicare and other federal health care programs. The call centers paid illegal kickbacks and bribes to telemedicine companies to obtain DME orders for these beneficiaries. The telemedicine companies then paid physicians to write medically unnecessary DME orders. The DME orders were provided to DME supply companies owned by Truglia and others in exchange for bribes. The DME supply companies in turn provided the braces to beneficiaries and fraudulently billed the health care programs.

• Cirri, Defonte, and their conspirators had business relationships with call centers through which they obtained prescriptions for compounded medications and other medical products reimbursable by federal and private health care benefit programs. Cirri and Defonte provided these prescriptions for compounded medical prescriptions and other medical products in exchange for kickbacks and bribes from companies that fraudulently billed them to health care programs.

The defendants caused losses to Medicare, TRICARE, and CHAMPVA of approximately $50 million.

The charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest. Sentencing for all three defendants 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; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to the guilty pleas.

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

NEWARK, N.J. – The Department of Justice filed an agreement today in Newark federal court to resolve its lawsuit against the Port Authority Trans-Hudson Corporation (PATH) under the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA).

PATH operates a rail transit service between Manhattan and New Jersey. The department’s suit alleges PATH subjected its workers to unnecessary medical exams and sought unnecessary information from those employees about their disabilities and other health conditions. As part of the settlement agreement, PATH will pay a total of $100,000 to certain employees who were harmed by PATH’s exams and inquiries.

“Workers deserve to be free from unlawful inquiries that could reveal a disability or family medical information,” Acting U.S. Attorney Rachael A. Honig said. “This office remains committed to protecting the civil rights of employees by ensuring that employers comply with the requirements of federal law. We thank PATH for its cooperation with our investigation and its commitment to make changes necessary to protect the civil rights of its workers.”

“No employee should be subject to unnecessary medical exams and health inquiries by their employer,” Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division said. “This settlement reflects the Justice Department’s firm commitment to protecting workers from unlawful and probing inquiries into their health and disability status.”

The settlement agreement resolves a lawsuit that the department filed today in federal court in New Jersey. Under the terms of the agreement, which must be approved by the court, PATH has agreed to stop unnecessary medical exams, as well as unnecessary questions about employees’ disabilities, health conditions, and family medical history. In addition to the compensation to two employees, the settlement also requires PATH to train its staff on the ADA and GINA and to periodically submit reports about its compliance with the agreement.

The ADA bars employers from requiring medical exams or inquiries of on-the-job employees unless the information sought is vital to job performance or safety. GINA bars employers from asking employees to disclose genetic information, including questions about family medical history.

This case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey after the matter was referred from the Equal Employment Opportunity Commission’s Newark Office. The department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities.

For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint. Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339. 

The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office Civil Rights Unit, and Senior Trial Attorney Alyse Bass of the Civil Rights Division’s Disability Rights Section.

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NEWARK, N.J. – A Jersey City man today admitted possessing a firearm and ammunition after previously being convicted of a felony, Acting U.S. Attorney Rachael A. Honig announced.

Javon Alston, 37, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an indictment charging him with possession of a firearm by a convicted felon.

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

On Nov. 6, 2020, Alston entered Victim-1’s apartment, brandished a small gray handgun, and told Victim-1 and her daughter, Victim-2, to leave. Victim-1 and Victim-2 left the apartment and alerted police, who apprehended Alston near Victim-1’s apartment a short time later. When he was arrested, Alston was carrying a silver-and-black handgun loaded with nine rounds of ammunition. Alston had previously been convicted of robbery in the Hudson County Superior Court and sentenced to five years in prison.

The charge of possession of a firearm and ammunition by a convicted felon carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for March 15, 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, with the investigation leading to today’s guilty plea. She also thanked the Jersey City Police Department, under the leadership of Public Safety Director James Shea, for assistance in the investigation.

The government is represented by Assistant U.S. Attorneys Sophie E. Reiter of the Cybercrime Unit and Sarah A. Sulkowski of the Violent Crimes Unit in Newark.

NEWARK, N.J. – A Florida man today admitted his role in a conspiracy to receive kickbacks and bribes from laboratories in exchange for referrals of patient DNA samples and genetic tests, Acting U.S. Attorney Rachael A. Honig announced.

Norman Smiley, 80, of Boca Raton, Florida, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with conspiracy to violate the Anti-Kickback Statute. 

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

Smiley owned and operated Sun Health Advocates LLC, a company that was in the business of acquiring patient DNA samples and physicians’ orders for purposes of submitting those samples and orders to clinical laboratories for genetic testing, including Metric Lab Services LLC and Spectrum Diagnostic Labs LLC. Smiley, on behalf of Sun Health, entered into illicit agreements with the Metric and Spectrum laboratories under which the laboratories paid Sun Health kickbacks in exchange for delivering DNA samples and orders for genetic tests. Sun Health concealed these arrangements by issuing sham invoices to the laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the kickback amount, which was based on the revenue the laboratories received from Medicare. Metric and Spectrum paid Sun Health approximately $1.16 million in kickbacks as part of the scheme.

The charge to which Smiley pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross grain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 16, 2022.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. 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 J. Mahoney, with the investigation leading to today’s guilty plea.

The government is represented by Bernard J. Cooney, Chief of the Government Fraud Unit. 

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

Jasmin Velez, 27, of Camden, 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, Velez 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 Velez, 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. 

Sixteen defendants 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 Velez 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 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 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.

NEWARK, N.J. – A South Carolina couple made their initial court appearance today on charges of trafficking firearms into New Jersey, Acting U.S. Attorney Rachael A. Honig announced.

Fuquan Haafiz Ali Bowers, 37, and Christina Lanette Williams, both of Newberry, South Carolina, were arrested Nov. 3, 2021, and are charged by complaint with conspiracy to deal firearms without a license, dealing firearms without a license, and transferring firearms to an out-of-state resident. Bowers was additionally charged with unlawful possession of a firearm and ammunition by a convicted felon. They appeared today before U.S. Magistrate Judge Kevin F. McDonald in South Carolina federal court and were each released on $25,000 unsecured bond.

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

This summer, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Elizabeth, New Jersey, police officers recovered several firearms in separate investigations in the city of Elizabeth. One of the recovered firearms was at the scene of a shooting; another firearm was recovered from a juvenile; and the third firearm was recovered from a convicted felon. The ATF later discovered that the recovered firearms were purchased by Williams in South Carolina before they were subsequently recovered by law enforcement in New Jersey. The ATF then obtained documents and other evidence revealing that Williams and Bowers traveled from South Carolina to New Jersey to sell the firearms in Elizabeth.

The firearms dealing charges each carry a maximum sentence of five years in prison, and a fine of up to $250,000. The felon in possession of a firearms charge carries a maximum sentence of 10 years and a fine of up to $250,000.

Acting U.S. Attorney Honig credited special agents of the ATF, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; and the Elizabeth Police Department, under the direction of Director Earl J. Graves and Chief Giacomo Sacca, with the investigation leading to these charges.

This arrest was made by a firearms trafficking strike force, part of the Department of Justice’s violent crime reduction initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the spring of 2021, the violent crimes reduction initiative is a comprehensive strategy to deploy federal resources in the most effective way, disrupt the most dangerous threats and support ground-level efforts of local law enforcement. Within the initiative, firearms trafficking strike forces have been launched to reduce violent crime by addressing illegal gun trafficking in significant firearms trafficking corridors.

The government is represented by Special Assistant U.S. Attorney Timothy P. Shaughnessy of the Organized Crime/Gangs Unit in Newark.

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

NEWARK, N.J. –  A Passaic County, New Jersey, man was sentenced today to time served – 17 months – for his role in a bank fraud conspiracy, Acting U.S. Attorney Rachael A. Honig announced.

Miguel Ortiz, 22, of Paterson, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit bank fraud. Judge McNulty imposed the sentence by videoconference today.

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

Ortiz and others participated in a conspiracy to commit bank fraud in which they conspired to break into U.S. Postal Service collection boxes throughout New Jersey and then steal mail. The members of the conspiracy agreed to fraudulently deposit stolen checks into bank accounts associated with members of the conspiracy, despite the fact that they were not payees on the checks. Members of the conspiracy then withdrew funds from those accounts.

Judge McNulty also sentenced Ortiz to three years of supervised release and ordered him to pay $90,864 in restitution and $23,123 in forfeiture.

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 sentencing.

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

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

Nathan Miller, 32, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal to an indictment charging him with one count of possession of a firearm by a convicted felon court.

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

On June 28, 2020, law enforcement officers saw Miller with a suspected firearm near the intersection of Oak Street and Martin Luther King Drive in Jersey City. Miller then entered a vehicle and appeared to place the firearm in the glove compartment. Law enforcement officers stopped the vehicle and found a .40-caliber Smith & Wesson semiautomatic handgun, loaded with 13 rounds of ammunition, in the glove compartment. Miller was previously convicted in the Superior Court of Hudson County, New Jersey, of possession of a controlled dangerous substance on school property, a felony punishable by more than one year in prison.

The charge of possession of a firearm by a convicted felon carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for March 16, 2022.

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, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Sophie E. Reiter of the Cybercrime Unit and Sarah A. Sulkowski of the Violent Crimes Unit in Newark.

TRENTON, N.J. – The former co-owner of a Union City, New Jersey, pharmacy was sentenced today to 41 months in prison for his role in a scheme to pay bribes to health care professionals and evading taxes on $33.9 million in income, Acting U.S. Attorney Rachael A. Honig announced.

Igor Fleyshmakher, 59, of Holmdel, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with conspiring to violate the federal anti-kickback statute and tax evasion. Judge Shipp imposed the sentence today in Trenton federal court.

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

The Prime Aid Pharmacies – now closed – operated as “specialty pharmacies” out of locations in Union City, New Jersey, and Bronx, New York. They processed expensive medications used to treat various conditions, including Hepatitis C, Crohn’s disease, and rheumatoid arthritis. Igor Fleyshmakher was a co-owner of Prime Aid Union City. Samuel “Sam” Khaimov was the other co-owner of Prime Aid Union City and the lead pharmacist of Prime Aid Bronx. Yana Shtindler was Khaimov’s wife and managing director of Prime Aid Union City. Ruben Sevumyants was Prime Aid Union City’s operations manager, and Alex Fleyshmakher worked at Prime Aid Union City and was an owner of Prime Aid Bronx. Eduard “Eddy” Shtindler (Yana Shtindler’s brother) was a Prime Aid Union City employee.  

Starting in 2010, to obtain a higher volume of prescriptions, Igor Fleyshmakher, Khaimov, Sevumyants, Alex Fleyshmakher, Eddy Shtindler, and other Prime Aid employees paid bribes to doctors and doctors’ employees to induce doctors’ offices to steer prescriptions to the Prime Aid Pharmacies. The bribes included expensive meals, designer bags, and payments by cash, check, and wire transfers. The bribes and kickbacks were paid to, among others, doctors and doctors’ employees in New Jersey and New York.

As part of his plea agreement, Igor Fleyshmakher agreed that the improper benefit conferred as part of the conspiracy to violate the federal anti-kickback statute was between $3.5 million and $9.5 million.

In addition, between 2012 and 2014, Igor Fleyshmakher diverted a substantial amount of Prime Aid Union City income into a secret bank account that he opened and controlled. He concealed the account from the pharmacy’s tax preparers and did not report any of the funds he deposited into it on his personal income tax returns. In total, he diverted $33.9 million of income into the secret account, all of which he failed to report to the IRS. As a co-owner of the pharmacy, his conduct resulted in a $5.8 million tax loss to the IRS on his share of that income for tax years 2012 through 2014.

In addition to the prison term, Judge Shipp sentenced Fleyshmakher to three years of supervised release and ordered him to pay $5.8 million in restitution and a $100,000 fine.

Khaimov, Yana Shtindler, and Sevumyants have been charged together by superseding indictment with health care fraud offenses and violations of the anti-kickback statute, and that matter is pending.  In addition, the following individuals associated with the Prime Aid Pharmacies have pleaded guilty for their respective roles in the kickback and bribery scheme described above: Joel Grimshaw, a former Prime Aid sales representative, Yudelka “Vicky” Ayala, a doctor’s employee who received over $200,000 in bribes and kickbacks as part of the scheme, and Alex Fleyshmakher, who also pleaded guilty to conspiring to defraud the IRS, resulting in losses to the IRS of over $9,000,000.  Eddy Shtindler also pleaded guilty for his role in a related kickback conspiracy. These four defendants have not yet been sentenced.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the N.J. Office of the State Comptroller, under the direction of Acting Comptroller Kevin D. Walsh, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit of the U.S. Attorney’s Office in Newark.

The charges against and allegations in the information pertaining to Khaimov, Yana Shtindler, and Sevumyants are merely accusations, and those three defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – A Passaic County, New Jersey, woman today admitted participating in a conspiracy to distribute heroin and fentanyl, Acting U.S. Attorney Rachael A. Honig announced.

Nysifah Deaveareaux, 28, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to an information charging her with one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin and one count of distribution of 40 grams or more of fentanyl.

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

From May 2020 through Aug. 13, 2020, Deaveareaux conspired to distribute heroin and fentanyl. On June 11, 2020, Deaveareaux transported approximately 12,500 glassines of heroin and fentanyl from New Jersey to Vermont, where she distributed them to another person.

Each count carries a minimum penalty of five years in prison, a maximum of 40 years in prison, and a fine of at least $5 million. Sentencing is scheduled for March 16, 2022.

Acting U.S. Attorney Honig credited special agents and task force officers with the DEA in New Jersey and New England, under the direction of Special Agents in Charge Susan A. Gibson and Brian D. Boyle, respectively, with the investigation leading to today’s guilty plea.

This investigation was conducted as part of the Paterson Violent Crime Initiative (VCI). The VCI was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey and the Passaic County Prosecutor’s Office, for the sole purpose of combatting violent crime in and around Paterson. 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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration’s (DEA) New Jersey Division, the Department of Homeland Security – Homeland Security Investigations, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, New Jersey State Parole, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.

The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.

NEWARK, N.J. – A Passaic County, New Jersey, man today admitted possessing a firearm and ammunition after previously having been convicted of a felony, Acting U.S. Attorney Rachael A. Honig announced.

Harold Mickens, 56, of Paterson, New Jersey, pleaded guilty to an indictment charging him with one count of possession of a firearm by a convicted felon before U.S. District Judge Kevin McNulty in Newark federal court.

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

On Dec. 8, 2019, law enforcement officers received a tip that a male wearing a black coat and black sweatpants was standing next to a blue Cadillac Escalade on Ocean Avenue in Jersey City and holding a gun in a green plastic bag. Law enforcement officers responded to the area and identified Mickens as matching the description provided by the tipster. They searched the green plastic bag Mickens was holding and found it to contain a Rossi .357 revolver loaded with six rounds of ammunition. Mickens had previously been convicted in the Superior Court of Hudson County, New Jersey, of possession of a controlled dangerous substance on school property, a felony punishable by more than one year in prison.

The charge of possession of a firearm by a convicted felon carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for March 16, 2022.

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, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Sophie E. Reiter of the Cybercrime Unit and Sarah A. Sulkowski of the Violent Crimes Unit in Newark.

TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 188 months in prison for distributing fentanyl that caused the death of a Monmouth County, New Jersey, woman, Acting U.S. Attorney Rachael A. Honig announced.

Quasaan Bethea, 35, of Trenton, previously pleaded guilty before Chief District Court Judge Freda L. Wolfson to one count of conspiring to distribute fentanyl, which Bethea admitted caused the death of a Monmouth County woman. Chief Judge Wolfson imposed the sentence today in Trenton federal court.

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

On May 15, 2018, a woman from Englishtown, New Jersey, referred to in court as Victim-1, sought out Bethea and his conspirator, Tarashanna Blake, to purchase a particular “brand” or “stamp” of heroin the pair sold known as “CAMEL.” Bethea and Blake agreed. The packages Victim-1 purchased from Bethea and Blake, however, contained fentanyl, and not heroin. Shortly after Bethea and Blake distributed the CAMEL-stamped fentanyl to Victim-1, Victim-1 died of a fentanyl overdose.

Later that same day, law enforcement officers, in an undercover capacity, used Victim-1’s cell phone to purchase more heroin from Bethea and Blake. Blake spoke with an undercover law enforcement officer and agreed to the sale. At the agreed upon time and location, the undercover officer advised Blake that he/she had arrived. Blake responded “park” and “my [boyfriend] gonna walk to you.” Bethea parked his vehicle behind the undercover vehicle and exited. As the officer approached Bethea, Bethea discarded objects packaged like heroin and stamped “CAMEL,” which were later determined to be fentanyl. 

In addition to the prison term, Chief Judge Wolfson sentenced Bethea to three years of supervised release.

Acting U.S. Attorney Honig credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; detectives from the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Lori Linskey; the Englishtown Police Department under the direction of Peter S. Cooke Jr.; and Trenton Police Department’s Narcotics Task Force, under the direction of Acting Police Director Steve Wilson, for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the Office’s Health Care Fraud Unit.

CAMDEN, N.J. – A Massachusetts man was convicted today by a federal jury of five child pornography offenses, Acting U.S. Attorney Rachael A. Honig announced.

William H. Noble, 56, of Lowell, Massachusetts, was convicted of conspiring to receive and distribute child pornography, receiving child pornography, distributing child pornography, possessing child pornography, and accessing with intent o view child pornography on federal property following a three-day trial before U.S. District Judge Joseph H. Rodriguez.

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

Between Nov. 1, 2016, and April 26, 2017, while an inmate at FCI-Fort Dix, Noble participated in a conspiracy with other inmates to receive and distribute images of child sexual abuse. Noble was serving an 81-month sentence following his guilty plea in the District of Massachusetts to transportation and possession of child pornography. He was scheduled to be released on March 8, 2018.

While in prison, Noble and his conspirators accessed images of child sexual abuse on the “dark web” using cell phones that had been smuggled into the prison. They then stored the images on micro SD cards, which they shared amongst the conspirators.

On April 19, 2017, Noble transferred a micro SD card containing over 2,400 images and nearly 100 videos of child sexual abuse to a government informant. Many of the images and videos depicted the sexual abuse of prepubescent children, including infants and toddlers. At the time of the transfer, Noble was recorded describing the child sexual abuse images and videos to the informant. Noble’s conspirators were also recorded describing Noble’s role and conduct in furtherance of the conspiracy. When Noble was arrested on Feb. 5, 2018, he confessed to the FBI.

Due to the defendant’s prior convictions, the counts of receiving and distributing child pornography and conspiring to receive and distribute child pornography are each punishable by a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 40 years in prison, and a $250,000 fine. The counts of possessing and accessing child pornography on federal property each carry a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Feb. 3, 2022, before Judge Rodriguez.

The charges against Noble stem from a long-term investigation by the FBI, which led to similar charges against seven other FCI-Fort Dix inmates. All of the other defendants have already pleaded guilty for their roles in the scheme.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr, with the investigation leading to today’s verdict. She also thanked officials of the Bureau of Prisons and FCI-Fort Dix for their assistance with the investigation.

The government is represented by Assistant U.S. Attorneys Andrew B. Johns and David E. Malagold of the Criminal Division.

NEWARK, N.J. – An Essex County, New Jersey, man was arrested today for threatening to injure a federal judge, Acting U.S. Attorney Rachael A. Honig announced.

Jonathan D. Williams, 46, of Newark, New Jersey, is charged by criminal complaint with making a threat to assault and murder a United States judge. Williams is scheduled to have his initial appearance Nov. 4, 2021, before U.S. Magistrate Judge Edward S. Kiel.   

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

On Nov. 1, 2021, Williams called a U.S. District Court judge in the District of New Jersey at least two times at the judge’s chambers phone number. The first call was answered by the courtroom deputy for the judge in the judge’s chambers. Williams spoke to the courtroom deputy concerning a civil suit that Williams filed and that is presently before the judge.  Williams stated that he needed to get the case in front of a jury immediately in order “to get my settlement.” Williams called the judge’s chambers a second time and spoke to one of the judge’s law clerks. While discussing issues related to his case, he stated: “Before the snow starts falling on my head, I’m gonna put a bullet in the Judge’s brain . . . he’s a scumbag.”

On Nov. 1, 2021, Williams again contacted the judge’s chambers phone number. Members of the U.S. Marshals Service were present when this call was made and overheard Williams’s conversation with an employee who works in the judge’s chambers. Williams directed sexually-explicit, profane, and racially-disparaging remarks at that employee. Williams then stated: “You’ll see! You’ll lose your job when I kill your boss.” Williams then repeated the threat a second time before the call ended. 

On Nov. 2, 2021, Williams arrived at the entrance of a law firm office in Newark. When he entered the lobby, two security guards who were present denied Williams entry into the law office. Williams pulled down a protective mask he was wearing over his mouth and nose and identified himself by name as “Jonathan Williams.” Williams told the security guards that he was “going to blow the judge’s brains out.” Williams then repeated the threat before leaving the law office lobby.

The charge of making threats to assault and murder a federal judge carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. 

Acting U.S. Attorney Honig credited the U.S. Marshals Service for the District of New Jersey, under the direction of U.S. Marshal Juan Mattos Jr., with the investigation leading to the arrest.

The government is represented by Assistant U.S. Attorney Dean Sovolos of the Office’s National Security 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 former Newark police officer was sentenced today to 46 months in prison for soliciting and accepting cash payments from a brothel owner in Newark in exchange for protecting brothels from police action, and for failing to report those cash payments on his personal federal income tax returns, Acting U.S. Attorney Rachael A. Honig announced.

Julio I. Rivera, 52, of Old Bridge, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to two counts of an indictment charging him with bribery (Count Six) and aiding and assisting in the preparation of a false 2015 personal federal tax return (Count 13). Judge Arleo imposed the sentence today in Newark federal court.

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

From September 2014 to August 2015, Rivera solicited and accepted cash payments from a Newark brothel owner (“Individual 1”) who ran brothels located on Lafayette Street and Emmet Street. In exchange for these cash bribes, Rivera performed official acts and violated his lawful duties for the benefit of Individual 1, including declining to arrest individuals who were committing and promoting prostitution, agreeing to protect these individuals from arrest by other Newark police officers, and agreeing to take adverse action against a competing brothel. Rivera collected between $40,000 and $95,000 in bribes in exchange for protecting those and other brothels in Newark.

Rivera also intentionally withheld information from his tax preparer regarding the cash bribes that he received, which caused Rivera’s filed federal tax returns for certain tax years, including 2015, to understate the total amount of income that Rivera received. Rivera stipulated that this misconduct resulted in a loss to the IRS of $15,000 to $40,000. 

In addition to the prison term, Judge Arleo sentenced Rivera to three years of supervised release, 1,000 hours of community service and ordered restitution of $17,408 and forfeiture of $79,941.

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 sentencing.

The government is represented by Assistant U.S. Attorney Cari Fais of U.S. Attorney’s Office in Newark.

NEWARK, N.J. – A former pharmacy procurement technician today admitted stealing prescription HIV medications from the pharmacy of the Veterans Affairs Medical Center (VAMC) in East Orange, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.

Lisa M. Hoffman, 49, of Orange, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count 2 of an indictment charging her with theft of government property. 

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

From October 2015 through November 2019, Hoffman was a procurement officer at the VAMC, who used her authority to order medication for the outpatient pharmacy, including ordering large quantities of HIV medication. Hoffman admitted that she stole HIV prescription medications from the VAMC pharmacy and sold it to her conspirator, Wagner Checonolasco, 34, of Lyndhurst, New Jersey, in exchange for cash. Checonolasco previously admitted to conspiring with Hoffman to steal HIV medication belonging to the U.S. Department of Veterans Affairs. Hoffman and Checonolasco stole approximately $10 million worth of HIV medications belonging to the VAMC during the scheme. 

The theft of government property charge is punishable by a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 9, 2022.

Checonolasco previously pleaded guilty to one count of conspiracy to steal government property and is scheduled to be sentenced on Dec. 15, 2021.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Nicole F. Mastropieri of the Health Care Fraud Unit in Newark. 

NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today for allegedly using force and physical obstruction to intimidate and interfere with providers of reproductive health services in Englewood, New Jersey, on two separate occasions, Acting U.S. Attorney Rachael A. Honig announced. 

Daniel Courney, 37, of Bergenfield, New Jersey, is charged by complaint with two counts of violating the Freedom of Access to Clinic Entrances Act, which protects individuals seeking and providing reproductive health services. Courney appeared by videoconference today before U.S. Magistrate Judge Edward S. Kiel and was released on $50,000 unsecured bond. 

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

On Oct. 16, 2021, Courney approached a patient and her companion arriving by car to seek reproductive health services at a clinic in Englewood. As a volunteer was providing directions, Courney approached the vehicle, told the patient to “save your child,” and shoved the volunteer away from the car to prevent the volunteer from providing directions to the clinic.  

On Oct. 30, 2021, Courney approached the same volunteer as the volunteer escorted a patient inside the clinic.  As the volunteer and patient approached the clinic’s front door, Courney moved his body between the volunteer and the patient and shoved the volunteer toward the street.

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 arrest.

The government is represented by Senior Civil Rights Counsel Joseph Gribko of the Criminal Division in Newark and Assistant U.S. Attorney Susan Millenky of the Civil Rights 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.

CAMDEN, N.J. – An Atlantic City, New Jersey, woman was convicted today of multiple drug distribution offenses, Acting U.S. Attorney Rachael A. Honig announced.

Rajeri Curry, 32, was convicted of one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and one count of possession with intent to distribute heroin, following a nine-day trial before U.S. District Judge Noel L. Hillman in Camden federal court. The jury did not reach a unanimous verdict on the charge of distribution of heroin and fentanyl that resulted in a death.

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

On Jan. 17, 2018, law enforcement officers executed a search at Curry’s residence, where they recovered heroin stamped with the words “DOA” and “BODY COUNT,” which Curry intended to distribute to her customers in Atlantic City. Between March 2018 and June of 2018, Curry conspired with drug suppliers in Newark, New Jersey, to distribute and possess with intent to distribute heroin and fentanyl. 

The charges of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and possession with intent to distribute heroin carry a maximum potential penalty of 20 years in prison and a maximum fine of $1 million dollars.

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; officers from the Atlantic City Police Department, under the direction of Deputy Chief James A. Sarkos; and the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Cary Shill, with the investigation leading to today’s conviction.

The government is represented by Assistant U.S. Attorneys Catherine R. Murphy and Lauren E. Repole of the U.S. Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – A Union County, Jersey, man was sentenced today to 17 months in prison for offering bribes to a U.S. Postal Service (USPS) employee to steal check books and credit cards from the mail, Acting U.S. Attorney Rachael A. Honig announced.

Jabre Beauvoir, 23, of Elizabeth, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of bribery. Judge McNulty imposed the sentence by videoconference today.

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

In the summer of 2019, Beauvoir offered bribes to USPS employees to steal mail containing check books and credit cards. Beauvoir typically offered $100 per package of check books or credit cards to induce USPS employees to steal such mail matter and deliver it to him. It was further part of the scheme that Beauvoir and others then posed as the actual accountholders to whom the check books or credit cards originally were mailed by fraudulently signing checks, activating the stolen credit cards, and fraudulently using them.

In addition to the prison term, Judge McNulty sentenced Beauvoir to three years of supervised release and ordered him to pay restitution of $23,948.

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, and special agents with the USPS-Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s sentencing. She also thanked the U.S. Secret Service, the New Jersey State Police, the Elizabeth Police Department, and the Secaucus Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Special Prosecutions Division in Newark.

NEWARK, N.J. – A Colombian citizen today admitted conspiring to import hundreds of kilograms of cocaine into the United States from places including Venezuela, Colombia, and the Dominican Republic, Acting U.S. Attorney Rachael A. Honig announced.

Edwin Nieves-Rosado, aka “Tortuga,” 56, pleaded guilty before U.S. District Judge Esther Salas to Count One of an indictment charging him with conspiracy to import five kilograms or more of cocaine.

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

From 2016 through Jan. 10, 2020, Nieves-Rosado and others conspired to import at least 800 kilograms of cocaine. Nieves-Rosado admitted playing a managerial role in this conspiracy, which involved more than five individuals.

The count to which Nieves-Rosado pleaded guilty carries a statutory mandatory minimum sentence of 10 years in prison and a maximum penalty of life imprisonment, as well as a fine of up to $10 million. Sentencing is scheduled for March 8, 2022.

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

Acting U.S. Attorney Honig credited special agents and task force officers with the Drug Enforcement Administration (DEA) operating in New Jersey, under the direction of Special Agent in Charge Susan A. Gibson in Newark, as well as special agents and task force officers with the DEA operating in Colombia, the Dominican Republic, and Puerto Rico. She also thanked the Justice Department’s Office of International Affairs and the U.S. Marshals Service for their assistance with the case.

The government is represented by Assistant U.S. Attorney Lauren Repole of the Economic Crimes Unit and Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit.

NEWARK, N.J. – A Union County, New Jersey, man today admitted illegally possessing ammunition, Acting U.S. Attorney Rachael A. Honig announced. 

Kevin Cordeiro, 34, of Elizabeth, New Jersey, pleaded guilty today to an indictment charging him with one count of possessing ammunition after having been previously convicted of a felony offense.

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

On Feb. 27, 2021, Cordeiro fired multiple gunshots toward an occupied vehicle that was parked on Westfield Avenue in Elizabeth. Law enforcement officials recovered eight .45 caliber shell casings from the shooting scene. After the shooting, Cordeiro fled to Florida and was arrested by the U.S. Marshals Service on March 29, 2021. Cordeiro was previously convicted of second-degree robbery in New Jersey Superior Court, for which he was sentenced to six years in prison.

The count to which Cordeiro pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for March 9, 2022.

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; and the Elizabeth Police Department, under the direction of Chief Giacomo Sacca, with the investigation leading to today’s guilty plea.  Acting U.S. Attorney Honig also thanked the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos Jr., for its assistance.

The government is represented by Assistant U.S. Attorneys Robert Frazer and Samantha C. Fasanello, of the U.S. Attorney’s Office in Newark.

NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey today reached a settlement with the Port Authority of New York and New Jersey (Port Authority) to resolve findings that the rail station at Newark Liberty International Airport is not accessible to individuals with disabilities, in violation of the Americans with Disabilities Act of 1990 (ADA).

“The Department of Justice upholds and protects the civil rights of all those who live in or travel through New Jersey,” Acting U.S. Attorney Rachael A. Honig said. “Through the settlement announced today, this Office removes a significant barrier that prevented people with disabilities from fully accessing a rail station that is a gateway to travel all over the world. We welcome Port Authority’s commitment to bring Newark Liberty International Rail Station into compliance with the ADA, and we will continue our work to ensure that no one is denied access to any of the rights and accommodations our Constitution and laws ensure.”

Under this agreement, the Port Authority has committed to make Newark Liberty International Rail Station accessible to individuals with disabilities. To ensure equal access for people with disabilities, the Port Authority must modify multiple areas of the rail station, including physical modifications to multiple platforms, waiting areas, and restrooms.

Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339.  Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).

The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office Civil Rights Unit in Newark, and Assistant U.S. Attorney Kristin Vassallo, Deputy Chief of the Civil Division.

TRENTON, N.J. – A New York man today admitted perpetrating a scheme to defraud more than 70 investors through a long-running securities offering fraud that raised more than $4 million and caused investor losses of more than $3.5 million, Acting U.S. Attorney Rachael A. Honig announced.

Donald A. Milne III, 57, of Massapequa, New York, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of securities fraud. 

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

Beginning in 2012, Milne founded Instaprin Pharmaceuticals Inc. (Instaprin), a purported pharmaceutical corporation that operated in New York, for the stated purpose of developing a fast-acting form of powdered aspirin that could instantly stop heart attacks and strokes. Instaprin was a successor entity to another New York corporation, SPI Acquisition Corp. (SPI), which Milne founded in 2010 for the stated purpose of acquiring assets for the development of the same fast-acting form of powdered aspirin. Milne was the founder, president, and chief executive officer of Instaprin and SPI, and exercised complete and exclusive control over them, including the offer, marketing, and sale of securities issued by those entities.

From as early as 2013 and through 2018, Milne executed a scheme to defraud dozens of investors in Instaprin and SPI securities through multiple and ongoing material misrepresentations concerning, among other things, how the victims’ investment money would be used and how their past investments had performed, so that Milne could misappropriate substantial sums of the investors’ money for his own personal gain and enrichment. Through at least four separate unregistered securities offerings that he caused Instaprin or SPI to issue between 2013 and 2016, Milne received more than $4 million in investment proceeds from victim investors across the country, and deposited the investment funds in one or more bank accounts that he controlled.

Milne misrepresented to victim investors the manner in which he and Instaprin/SPI would maintain and use the funds raised through Instaprin securities offerings. For example, Milne represented in written offering materials transmitted to investors that their investment funds would be used to pay the “normal day-to-day operating expenses” of Instaprin, as well as “the costs involved in developing and commercializing its products,” including “Batch/stability testing,” “Manufacturing,” “Market/advertising consultant,” and “Salaries/rent/insurance [and] General working capital.” Milne also falsely represented in the offering materials that he had assembled “a very strong world renowned board of directors and medical advisory board” that included industry leaders in fields of science and finance. Milne also misrepresented to investors that specific individuals had joined Instaprin as directors, advisors, and/or shareholders of Instaprin, when in fact, those individuals were not involved with Instaprin. Milne made numerous false and misleading statements in investment updates distributed to investors between April 2014 and September 2018, including: Instaprin’s product had been approved by the U.S. Food and Drug Administration (FDA); Instaprin was nearing a product launch and public stock offering; and Instaprin had contracted with a New Jersey research company for an FDA-approved clinical trial. Milne also represented that Instaprin was in negotiations with large pharmaceutical corporations for joint business ventures, which Milne represented were imminent. Milne made these and other similar representations knowing that they were false and misleading.

Milne misappropriated a substantial majority of the investors’ funds to pay out distributions to other investors in a Ponzi-scheme fashion; pay for Milne’s personal expenses, including a Caribbean vacation, boating expenses, divorce payments, clothing, and spa treatments; and to sustain and operate Island Raceway & Hobby Inc., a toy race car business that Milne separately owned.

In May 2019, the Securities and Exchange Commission filed a civil complaint against Milne and Instaprin in New Jersey federal court regarding the fraudulent scheme to which Milne pleaded guilty today. That matter was resolved through the entry of final judgments permanently enjoining Milne and Instaprin from violating the charged provisions of the federal securities laws, ordering full disgorgement, prejudgment interest, and civil penalties.

The securities fraud charge to which Milne pleaded guilty carries a maximum potential sentence of 20 years in prison and a $5 million fine. Sentencing is scheduled for March 24, 2021.

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 today’s guilty plea. She also thanked the SEC’s Philadelphia Regional Office, under the direction of Kelly L. Gibson, for its substantial assistance with the investigation.

The government is represented by Assistant U.S. Attorney J. Brendan Day, Attorney-in-Charge of the U.S. Attorney’s Office’s Trenton Office, and Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit in Newark.

NEWARK, N.J. – A Union County man was sentenced today to 97 months in prison for conspiring to distribute cocaine and laundering narcotics proceeds, Acting U.S. Attorney Rachael Honig announced.

Jose Rivera, Jr., 48, of Union, New Jersey, previously pleaded guilty by videoconference before Senior U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiracy to possess with intent to distribute cocaine and one count of conspiracy to commit money laundering.

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

Rivera is a leader of a drug-trafficking and money laundering organization. Law enforcement officers learned that Rivera utilized various locations to conduct narcotics trafficking and money laundering on behalf of the organization, including his residence and a stash location in Union.

On Nov. 6, 2020, law enforcement officers conducted lawful searches of the residence and the stash location and recovered over $1 million in cash, financial paperwork and notations related to narcotics proceeds and transactions. On Nov. 7, 2020, law enforcement officers conducted a lawful search of Rivera’s vehicle and recovered 191 grams of cocaine in a hidden compartment within the glove box of the vehicle.

In addition to the prison term, Judge Chesler sentenced Rivera to three years of supervised release.

Acting U.S. Attorney Honig credited special agents of the U.S. Drug Enforcement Administration under the direction of Special Agent in Charge Raymond Donovan in New York; 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 inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark, with the investigation leading to today’s sentencing.

The prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The New York Strike Force is a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The New York OCDETF Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the NYPD; the New York State Police; HSI; IRS-CI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.

The government is represented by Assistant U.S. Attorney Megan Linares of the Organized Crime and Drug Enforcement Task Force Unit.

CAMDEN, N.J. – A Camden County, New Jersey, woman today admitted attempting to bribe a witness to steal a gun from a car that was in the custody of the Camden County Police Department, pending the execution of a search warrant, Acting U.S. Attorney Rachael A. Honig announced.

Saidah A. Davis, “Sacha,” 41, of Woodlynne, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an indictment charging her with witness tampering. 

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

Davis admitted that on April 16, 2021, she and codefendant Anthony D. Parker, aka “Papa Smurf,” 37, of Camden, went to the home of an individual who she knew worked at a Camden tow lot that impounded vehicles that were seized by the Camden County Police Department for criminal investigations. Davis, an acquaintance of a relative of the tow lot employee, explained that Parker had a problem, and she asked the employee if he could help Parker. Parker said that his vehicle had been seized by the police pending a search warrant application, and that there was a gun and cash inside the vehicle.  Parker offered the tow lot employee $2,000 to break into the vehicle and remove the gun and cash. The tow lot employee refused the bribe, and Davis took the employee’s phone number and said, “we’ll be in touch.”

Parker is charged by indictment with witness tampering and possession of a firearm by a previously convicted felon. His trial is scheduled for Nov. 29, 2021.

The witness tampering charge carries a statutory maximum of 20 years in prison and a potential $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing for Davis is scheduled for March 3, 2022.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Acting Special Agent in Charge Brian Herrick in Philadelphia; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; and officers of the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; with the investigation leading to the indictment. 

The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the Criminal Division in Camden.

The charges and allegations against Parker are merely accusations, and he is presumed innocent unless and until proven guilty.

NEWARK, N.J. – A former broker and investment advisor from Bergen County, New Jersey, was arrested today for allegedly stealing more than $2.86 million from five clients in order to pay for personal expenses, Acting U.S. Attorney Rachael A. Honig announced.

Kenneth A. Welsh, 41, of River Edge, New Jersey, was charged by complaint with four counts of wire fraud and one count of investment advisor fraud. Welsh was arrested today at his home and is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Leda Dunn Wettre.

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

From July 2017 through March 2021, Welsh, while serving in his capacity as an investment advisor employed by a large brokerage firm, misappropriated at least $2.86 million from five clients. Welsh, who had been entrusted to manage client funds responsibly, instead perpetrated a scheme to defraud the five clients by diverting money from their brokerage accounts to accounts under his control. Welsh then used the unlawfully obtained money to fund his gambling and to purchase high-end, luxury items for himself.

Each of the wire fraud counts carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The investment adviser fraud count carries a maximum potential penalty of five years in prison and a $10,000 fine, or twice the gross gain or loss from 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, with the investigation leading to the arrest.

The government is represented by Assistant U.S. Attorney Shawn Barnes of the Economic 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. – An Ocean County, New Jersey, man was arrested today on charges that he distributed, received, and possessed images and videos of child sexual abuse downloaded from the internet, Acting U.S. Attorney Rachael A. Honig announced.

Jared Faircloth, 24, of Cream Ridge, New Jersey, is charged in a criminal complaint with one count of receiving and distributing child pornography and one count of possessing child pornography. Faircloth appeared this afternoon by videoconference before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court and was released on $100,000 unsecured bond.

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

From September 2020 to July 2021, Faircloth received and distributed 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 IP addresses linked to Faircloth. On July 22, 2021, law enforcement searched Faircloth’s residence and found a device belonging to Faircloth that contained more than 2,800 images and videos depicting child sexual abuse, as well as BitTorrent software. Of those approximately 2,800 files, law enforcement identified at least 30 files that law enforcement had previously downloaded from IP addresses linked to Faircloth.

The charge of knowingly receiving and distributing child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison, and a statutory maximum fine equal to $250,000 or twice the pecuniary gain or loss, whichever is greatest. The charge of knowingly possessing child pornography carries a maximum of 10 years in prison, and a statutory maximum fine equal to $250,000 or twice the pecuniary gain or loss, whichever is greatest.

Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations, Mount Laurel, New Jersey, under the direction of Special Agent-in-Charge Jason J. Molina in Newark, with the investigation leading to the arrest. She also thanked the Department of the Air Force, Office of Special Investigations, for its assistance.

The government is represented by Assistant U.S. Attorney Ashley Super Pitts of the U.S. Attorney’s Office 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.

Defense counsel: Benjamin West Esq., Assistant Federal Public Defender, Trenton

CAMDEN, N.J. – A Camden County, New Jersey, man today admitted his role in a scheme to obtain money through fraudulently obtained refund checks issued by the U.S. Treasury, Acting U.S. Attorney Rachael A. Honig announced.      

Jorge Gutierrez, 42, of Merchantville, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with conspiracy to defraud the United States.

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

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 falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates 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.

For the 2013 tax year, in excess of 3,300 SIRF tax returns were filed using the names and Social Security numbers of residents of Puerto Rico and for which 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 false and 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, Gutierrez, Alberto Sanchez, Awilda Henriquez and Roque Bisono were indicted by a federal grand jury. According to the indictment, Gutierrez, Henriquez, Bisono, Sanchez, and their conspirators obtained stolen identities of residents of Puerto Rico to file fraudulent income tax returns seeking federal tax refunds to which the conspirators were not entitled. The objective in doing so was to falsely and fraudulently generate income tax refund checks issued by the U.S. Treasury. 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. The conspirators paid “check couriers” to cash the tax refund checks in a variety of ways, including at check cashing businesses in and around Camden. The check couriers presented false and fraudulent identifications at the check cashing businesses matching the names on the tax refund checks in order to cash the checks. In total, the scheme caused $565,091 in losses to the U.S. Treasury.

Gutierrez admitted that between April 2014 and August 2014, he was a member of the conspiracy that took 93 U.S. Treasury Refund checks that had been placed in the mail stream to be delivered to addresses on a postal mail route in Pennsauken. He admitted that he helped a man nicknamed “Chepe” steal money from the United States government.

The conspiracy count to which Gutierrez pleaded guilty carries a maximum potential penalty of five years in prison and a maximum fine of $250,000. Sentencing is scheduled for March 1, 2021. 

Henriquez is pending trial, which is scheduled to start Nov. 29, 2021, before Judge Kugler in Camden.

On Dec. 10, 2019, Judge Kugler sentenced Sanchez to 45 months in prison. Bisono is awaiting sentencing.

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 guilty plea. 

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

NEWARK, N.J. – Two Passaic County men today admitted their roles in an illegal money transmitting business, Acting U.S. Attorney Rachael A. Honig announced today.

Erickson Checo-Almonte, 31 of Passaic, New Jersey, and Jordano Abreu-Diaz, 24 of Clifton, New Jersey, separately pleaded guilty by videoconference on Oct. 25, 2021, before U.S. District Brian Martinotti to informations charging them each with aiding and abetting an illegal money transmitting business. 

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

From April 2017 through March 2019, Erickson Checo-Almonte accepted over $3.9 million in cash and purchased over 137 cashier’s checks at local bank branches in New Jersey and elsewhere.  From November 2016 through August 2017, Abreu-Diaz accepted over $1 million in cash and purchased 39 cashier’s checks at banks in New Jersey and elsewhere. Both men admitted that the cash they used to purchase the checks was from illegal activity.  

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

The charge of aiding and abetting an illegal money transmitting business carries a maximum penalty of five years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greatest. Sentencing for both defendants is scheduled for March 2, 2022.

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; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; the Morristown, New Jersey, police department, under the direction of Acting Police Chief Darnell Richardson; and the Direccion Nacional de Control de Drogas (the Dominican Republic National Drug Directorate, with the investigation leading to today’s guilty pleas.

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

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

NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 60 months in prison for conspiring to distribute 100 grams or more of heroin, 40 grams or more of fentanyl, and cocaine base and to distributing a quantity of heroin and fentanyl, Acting U.S. Attorney Rachael A. Honig announced.

Jimir Ricks, 26, of Paterson, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, 40 grams or more of fentanyl, and a quantity of cocaine base and knowingly and intentionally distributing heroin and fentanyl. Judge Martinotti imposed the sentence today in Newark federal court.

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

Ricks and his conspirators are members and associates of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from at least September 2018 through Oct. 1, 2019, Ricks and his conspirators conspired to distribute narcotics, including heroin and fentanyl.

In addition to the prison term, Judge Martinotti sentenced Ricks to five years of supervised release.

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

Acting U.S. Attorney Honig credited 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; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to today’s sentencing. She also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.

The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.

CAMDEN, N.J. – A Bronx, New York, man today admitted his role in a scheme to steal bank customer identities and then use the information to steal more than $600,000, Acting U.S. Attorney Rachael A. Honig announced.

Lamar Melhado, 32, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to Count 1 of an indictment charging him with conspiracy to commit bank fraud.

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

From August 2016 through August 2017, Melhado conspired with Jamere Hill-Birdsong, of Camden, and others, to defraud a Mount Laurel, New Jersey, bank. Hill-Birdsong worked inside the call center and recruited other call center employees to participate in the scheme by stealing the identities and account information of customers who called into the bank’s call center. The conspirator bank employees would then take photographs or screenshots of the bank customers’ account information and signatures and would send that information to Hill-Birdsong and Melhado. The conspirators then had phony identification documents made in the names of the bank customers, and used various runners to go into bank branches and make unauthorized cash withdrawals. The conspirators also used the stolen identity information to conduct unauthorized online transfers of monies from the customer’s accounts.

The conspiracy to commit bank fraud charge to which Melhado pleaded guilty carries a maximum penalty of 30 years in prison and a maximum fine of $1 million, or twice the gross gain or loss from the offense, whichever is greatest. In his plea agreement, Melhado agreed to make restitution for the full amount of the loss, which is estimated at $604,000. Sentencing for Melhado is scheduled for March 7, 2022.

Acting U.S. Attorney Honig credited agents of the FBI’s South Jersey Resident Agency, under the direction of Acting Special Agent in Charge Brian Herrick in Philadelphia, 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.

NEWARK, N.J. – A Hudson County, New Jersey, man was convicted today for his role in trafficking heroin and fentanyl into a New Jersey state prison, resulting in the overdose of one of the inmates, Acting U.S. Attorney Rachael A. Honig announced.

Noel Salgado, aka “Kuko,” 41, was convicted of one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and one count of distribution and possession with intent to distribute heroin and fentanyl, which resulted in serious bodily injury, following a four-day trial before U.S. District Judge William J. Martini in Newark federal court. The jury did not reach a unanimous verdict against co-defendant Rodgerick Garrett. 

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

While incarcerated at Bayside State Prison, Salgado directed associates to provide narcotics proceeds to him and his associates and to smuggle narcotics into prison to distribute to other inmates.

On Oct. 17, 2015, Salgado called an associate from prison to arrange for the purchase and smuggling into the prison of heroin and fentanyl. Another conspirator picked up the narcotics and smuggled them to Salgado on Oct. 18, 2015. The following day, an inmate to whom Salgado had distributed the narcotics was found unresponsive in his cell suffering from a drug overdose. The inmate stopped breathing on his own and remained unconscious for approximately 20 minutes before medical personnel administered Narcan to revive him. The inmate was hospitalized for two days.

The charge of distribution and possession with intent to distribute heroin and fentanyl, resulting in serious bodily injury, on which the defendant was convicted carries a mandatory minimum penalty of 20 years in prison, and a maximum potential penalty of life in prison, and a maximum $1 million fine. The conspiracy charge on which he was convicted carries a maximum potential penalty of 20 years in prison.

Acting U.S. Attorney Honig credited Special Agents with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and investigators with the N.J. Department of Corrections under the direction of Acting Commissioner Victoria L. Kuhn, with the investigation leading to today’s conviction.

The government is represented by Assistant U.S. Attorneys Christopher D. Amore and Elaine K. Lou of the U.S. Attorney’s Office in Newark.