District of New Jersey
Press releases recorded for this federal judicial district.
Camden County Man Admits Role in Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man today admitted defrauding a victim of almost $2 million in connection with a fraudulent investment scheme, Acting U.S. Attorney Rachael A. Honig announced.
Frank N. Tobolsky, 59, of Cherry Hill, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to one count of wire fraud.
According to documents filed in this case and statements made in court:
Beginning in 2013, Tobolsky raised money from a victim, purportedly as an investment that would loan money to season ticket holders who owned seat licenses for the Philadelphia Eagles. The seat licenses would be used as collateral to secure the loans. The victim sent Tobolsky approximately $2.4 million to invest in the purported business venture. The money was not used for loans to season ticket holders. Instead, Tobolsky used a substantial portion on personal expenses.
The charge of wire fraud to which Tobolsky pleaded guilty carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross loss to any victim or gain to Tobolsky, whichever is greatest. Sentencing is scheduled for Feb. 10, 2022.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Damon Wood, with the investigation leading to today’s guilty plea. She also thanked the U.S. Attorney’s Office for the District of Delaware for assisting in the investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender and Special Assistant U.S. Attorney John Crockett of the U.S. Attorney’s Office in Camden.
Bayside State Prison Corrections Officer Arrested for Conspiracy to Violate Civil RightsRead the Press Release
NEWARK, N.J. – A corrections officer at Bayside State Prison in Leesburg, New Jersey, was arrested today for allegedly assaulting and physically punishing inmates, Acting U.S. Attorney Rachael A. Honig announced.
John Makos, 41, of Millville, New Jersey, was charged by complaint with participating in a conspiracy to deprive inmates of civil rights. Makos is scheduled appear this afternoon by videoconference before U.S. Magistrate Judge James B. Clark 3rd.
“Prisoners are entitled to be treated with basic dignity, not pummeled and humiliated at the whim of correctional officers,” Acting U.S. Attorney Honig said. “We once again affirm our commitment to uphold the civil rights of all persons, including those living in a correctional setting.”
“Our investigation alleges that the actions in this case included beatings of people without provocation or justification in violation of their civil rights,” FBI Special Agent in Charge George M. Crouch Jr. said. “A badge is not a license to abuse the power it conveys or to deny the civil rights of the people in one’s custody. It matters not whether the wearer belongs to a federal, state, or local law enforcement agency, or a correctional facility, we all bear the same responsibility to respect and defend the rights of those in our care. Let me be clear, the FBI protects and upholds the rights of all of our citizens. We will go wherever we are needed to weed out illegal activity and arrest the perpetrators.”
According to documents filed in this case and statements made in court:
From at least April 2019 through December 2019, while working as a corrections officer, Makos conspired with others at Bayside State Prison to assault and punish certain inmates in a cruel and arbitrary manner by using excessive force that caused physical injury and pain to the victims. Makos and at least one other corrections officer established an ad hoc regime of physical punishments for actual and perceived violations of the prison’s rules and customs and meted out such punishments in a cruel and degrading manner, at times with the assistance of other inmates.
Makos and at least one other corrections officer assaulted a victim inmate using what was known to inmates as “the fence treatment:” one of the victim’s arms would be handcuffed to a fence in the back area of the prison’s kitchen and the other arm would be handcuffed to a swinging door, so that the inmate would appear to be crucified. Another inmate, working with Makos and at least one other corrections officer, moved the swinging door so that the victim inmate’s body expanded and collapsed while Makos and at least one other corrections officer delivered closed fist strikes to the victim’s body.
Makos and at least one other corrections officer also attempted to ensure that their victims would not report the abuse to prison authorities by leading the inmates to believe that if they reported the abuse, they would lose their kitchen jobs, the income associated with those jobs, and the attendant access to better and more plentiful food items, all of which were highly valued within the prison.
The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison and a maximum fine of $250,000.
Acting U.S. Attorney Honig credited special agents of the FBI Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation. She also thanked the New Jersey Department of Corrections, under the direction of Acting Commissioner Victoria Kuhn, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark and Trial Attorney Shan Patel of the U.S. Department of Justice’s Civil Rights Division.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Executive Office for U.S. Attorneys Recognizes Three Members of the U.S. Attorney’s Office/District of New Jersey for Outstanding WorkRead the Press Release
NEWARK, N.J. – Three members of the U.S. Attorney’s Office, District of New Jersey, are among those who were honored by the Department of Justice’s 37th Annual Director’s Awards this year, Acting U.S. Attorney Rachael A. Honig announced today.
Connie Jones won for Superior Performance in a Litigative Support Role, recognized for her outstanding contributions to criminal prosecutions in the District of New Jersey over the past 27 years. Since 2018, when she became a supervisor overseeing half of the Criminal Division’s paralegals, Jones has been integral to the district’s effort to redefine the role of paralegals in criminal matters. She developed standardized operating procedures and protocols to ensure consistency in the preparation of grand jury subpoenas, the maintenance of case files, the organization of evidence, and the management of discovery. Jones helps manage the office’s “Triggerlock” program, ensuring the safety of the community by assisting in the prosecutions that result in the seizure of hundreds of unlawfully possessed firearms.
Ronnell Wilson and Dean Sovolos won for Superior Performance by an AUSA – Criminal. Wilson and Sovolos coordinated and led the response of the U.S. Attorney’s Office for the District of New Jersey to two tragic incidents of violent extremism that took place in a span of only eight months: the first, the domestic terror attack fueled by anti-Semitism that took place in Jersey City, New Jersey; and the second, the bias-motivated attack on U.S. District Judge Esther Salas and her family. Wilson and Sovolos demonstrated extraordinary skill and professionalism in working tirelessly to investigate these attacks and find answers for the victims and their families. Their work on these investigations was supported by many others in the U.S. Attorney’s Office.
“I am proud to congratulate our office’s three recipients of this year’s Director’s Awards,” Acting U.S. Attorney Honig said. “The recognition of their work in the litigation support and criminal areas reflects not only on their tremendous contributions to protecting the people of New Jersey, but on all of the people in this office. They work every day – under especially trying circumstances during the COVID-19 pandemic – and maintain the highest levels of professionalism and performance. I am grateful to be their colleague.”
The traditional ceremony held in the Great Hall at the Robert F. Kennedy Department of Justice Building was again cancelled this year in response to the COVID-19 pandemic.
The Executive Office for U.S. Attorneys provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Passaic County Man Charged with Defrauding Investors of over $1 MillionRead the Press Release
NEWARK, N.J.– A Passaic County, New Jersey, man was arrested today in connection with a scheme to defraud investors of over $1 million through various misrepresentations and omissions about his business operations and his background, Acting U.S. Attorney Rachael A. Honig announced.
Gregory Ciccone, 43, of Woodland Park, New Jersey, is charged by complaint with securities fraud. He appeared this afternoon by videoconference before U.S. Magistrate Judge Leda Dunn Wettre and was released on $300,000 unsecured bond.
According to documents filed in this case and statements made in court:
Ciccone, who was previously convicted of wire fraud and filing a false tax return, once again orchestrated an investment fraud scheme whereby he obtained approximately $1.5 million from at least 22 investors through short-term, high-interest promissory notes in less than two years. Ciccone represented to prospective investors that his companies, Platinum Travel and Entertainment LLC, a New Jersey-based LLC, and Platinum Enterprises & Concierge Services Inc. (Platinum) were reserving blocks of rooms at luxury hotels, which would later be resold to elite clients at a profit.
Investors were promised 15 percent to 50 percent return on their investments for term periods ranging from one month to six months. Instead of using the funds to reserve blocks of rooms at luxury hotels, Ciccone diverted the funds for personal expenses and, in certain instances, paid other investors to make them believe that their investment was generating profits. When confronted with requests for transparency and redemptions by certain investors, Ciccone failed to honor the redemption requests, made misrepresentations about his inability to honor the redemption requests, misstated and omitted material facts, and provided certain investors with forged, modified, or otherwise fraudulent documentation.
Ciccone did not disclose to certain victim investors before they invested that he had a federal criminal conviction and that the conditions of his supervised release prohibited him from entering into promissory notes without approval of his U.S. Probation officer, which he had not requested.
From May 2019 through November 2019, Ciccone also made material misrepresentations to additional victim investors directly and through Individual 1, who began raising money on behalf of Ciccone in May 2019. Ciccone told Individual 1 about, and sent emails containing, lists of Platinum’s purported “immediate bookings” at various hotels to support his need to raise money for Platinum. Ciccone made these statements to Individual 1 knowing Individual 1 would communicate the information to investors and prospective investors. Ciccone’s statements to Individual 1, which Individual 1 disseminated to investors, were false. Platinum and Ciccone had not secured the hotel reservations, and Ciccone did not use the funds obtained from the Victim Investors to secure the hotel bookings listed in these communications.
Over the course of the scheme, Ciccone misappropriated the majority of funds received from victim investors, totaling at least $1.35 million, by using the money to pay for personal items, such as $54,330 to buy a BMW; approximately $235,000 to purchase clothes, wine, and other personal items; and over $216,000 in cash withdrawals. Ciccone also used investor funds to pay approximately $120,000 to other investors with overdue notes.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine.
Acting U.S. Attorney Honig thanked special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas J. Mahoney; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; and special agents of IRS – Criminal Investigations, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s charges. She also thanked the U.S. Securities and Exchange Commission’s Denver Regional Office, under the direction of Regional Director Kurt Gottschall, for its assistance.
The government is represented by Assistant U.S. Attorney Vijay Dewan of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New Jersey Department of Children and Family Services Caseworker Charged with Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A caseworker employed by the New Jersey Department of Children and Family Services, Division of Child Protection and Permanency, was charged today with possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Trent Collier, 55, of Kearny, New Jersey, is charged by complaint with one count of possession of child pornography. He made his initial appearance by videoconference before U.S. Magistrate Judge Leda Dunn Wettre and was released on $50,000 unsecured bond.
According to documents filed in this case and statements made in court:
On Sept. 28, 2021, Collier arrived at Newark Liberty International Airport aboard a flight from the Dominican Republic. Law enforcement officials searched his luggage and located a tablet device and a cellular phone. A forensic search of both devices identified at least two images of child sexual abuse depicting prepubescent children. Based on an analysis of the phone, Collier sent these images via WhatsApp message.
The maximum penalty if convicted is 10 years in prison and a maximum fine of $250,000 or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss to someone else, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Katherine Calle of the Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Essex County Man Sentenced to 30 Months in Prison for Conspiring to Defraud Banks of over $250,000 using Credit Cards and Blank ChecksRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 30 months in prison for conspiring to defraud two banks of more than $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced.
Qshaun Brown-Guinyard, 27, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud. Judge Wigenton imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
From August 2018 through January 2020, Brown-Guinyard and his conspirators engaged in a scheme to use stolen credit cards and checks to fraudulently make purchases and withdraw money from two banks, leaving the banks to bear the losses of the scheme. The credit cards were stolen from facilities used by the U.S. Postal Service in Pine Brook and Warren, New Jersey. Because the cards were stolen, they never reached the intended cardholders. After obtaining the stolen cards, Brown-Guinyard and his conspirators used them to make unauthorized purchases at various retail stores and withdraw cash from automated teller machines (ATMs) in New Jersey and elsewhere.
The blank checks were also stolen from various New Jersey-based post office facilities, and never reached their intended recipients. Once obtained, Brown-Guinyard and his conspirators altered the date, payee, and amount of the stolen checks prior to deposit. He and his conspirators would then fraudulently withdraw money at various ATMs from the third-party account holders’ accounts.
Four of Brown-Guinyard’s conspirators – Nasheed Jackson, Alexander Varice, Dashawn Duncan, and Allen Varice– have previously pleaded guilty to identical informations. Jackson and Duncan were each sentenced to 24 months in prison, and Allen Varice was sentenced to 27 months in prison. Alexander Varice is scheduled to be sentenced Oct. 5, 2021.
In addition to the prison term, Judge Wigenton sentenced Brown-Guinyard to five years of supervised release and ordered him to pay restitution of $181,158.
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 in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Passaic County Man Admits Role in Illegal Money Transmitting SchemeRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey man today admitted his role in an illegal money transmitting business, Acting U.S. Attorney Rachael Honig announced.
Willy Cruz-Bonilla, 24, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to a criminal information charging him with aiding and abetting an illegal money transmitting business.
According to documents filed in this case and statements made in court:
From August 2016 through August 2017, Cruz-Bonilla accepted over $2.5 million in cash and purchased over 90 cashier’s checks at local bank branches in New Jersey and elsewhere. The investigation revealed that the cash was the proceeds of illegal drug distribution. The check purchases were part of a large-scale illegal money transmitting and money laundering scheme designed to hide the illegal source of the cash and transfer it from New Jersey to the Dominican Republic and Colombia, all while attempting to avoid scrutiny by law enforcement and U.S. banks.
The charge of aiding and abetting an illegal money transmitting business carries a maximum penalty of five years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. Sentencing is scheduled for Feb. 1, 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, DNCD) with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Criminal Division in Newark.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Hudson County Man Admits Assaulting U.S. Postal Service EmployeeRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted assaulting a U.S. Postal Service employee by pointing a handgun at the employee, Acting U.S. Attorney Rachael A. Honig announced.
Joseph Cartagena, 34, of Jersey City, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to one count of assaulting a federal employee.
According to documents filed in this case and statements made in court:
On March 3, 2021, an employee of the U.S. Postal Service was driving his Postal Service truck in Jersey City, New Jersey, when Cartagena requested that the employee pull over, which he did. The postal employee then exited his truck and approached Cartagena to ask why he had asked him to pull over. Cartagena pulled out a handgun and pointed it at the postal employee. The postal employee immediately pushed Cartagena’s hand away and ran into traffic to get away. Cartagena then entered his car and drove away.
The charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 9, 2022.
Acting U.S. Attorney Rachael A. Honig credited postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge Raimundo Marrero, and the Jersey City Police Department, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Essex County Man Sentenced to 65 Months in Prison for Drug Conspiracy and Distribution of Crack in Stephen Crane VillageRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 65 months in prison for distributing and conspiring with others to distribute more than 28 grams of cocaine base, Acting U.S. Attorney Rachael A. Honig announced.
Nasir Williams, 24, of Newark, previously pleaded guilty by videoconference before U.S. District Court Judge John Michael Vazquez to an information charging him with one count each of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine case and distribution of 28 grams or more of cocaine base. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Stephen Crane Village is a public housing complex in Newark, on the border with Belleville, New Jersey. From at least February 2019 through February 2020, law enforcement officers investigated individuals that controlled an open-air drug market that operated there.
Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone records, law enforcement officers determined that numerous individuals, including Williams, conspired to distribute and did actually distribute narcotics, including heroin, fentanyl, cocaine and cocaine base, in and around Stephen Crane Village. On Jan. 15, 2020, in Stephen Crane Village, Nasir Williams sold approximately 31 grams of cocaine base to an individual while under surveillance by law enforcement.
In addition to the prison term, Judge Vazquez sentenced Williams to four years of supervised release.
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; the Belleville Police Department, under the direction of Chief Mark Minichini; special agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; 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 the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s guilty plea. He also thanked the U.S. Marshals Service, the Nutley Police Department, the Bloomfield Police Department, the West Orange Police Department, the Verona Police Department, the Orange Police Department and the Bergen County Sheriff’s Office for their assistance with this case.
This investigation was part of the Newark Violent Crime Initiative (VCI), where the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate crime in Newark and the surrounding cities. This case is also conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorneys Tracey Agnew and Cassye Cole of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Burlington County Man Sentenced to 10 Years in Prison for Conspiring to Distribute Large Amounts of Heroin and Cocaine in CamdenRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 120 months in prison for conspiring to distribute heroin and cocaine in Camden, Acting U.S. Attorney Rachael A. Honig announced.
Dwight Williams, 20, of Mount Holly, New Jersey, previously pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to a superseding information charging him with conspiracy to distribute 100 grams or more of a mixture or substance containing heroin, as well as a mixture and substance containing cocaine. During his sentencing hearing, Williams agreed that the amount of heroin jointly attributable to him, as a member of the conspiracy, was three to 10 kilograms.
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 various investigative tactics including video surveillance, confidential informants, consensual recordings, controlled drug purchases, and several court-authorized wiretaps to uncover the inner workings of the drug-trafficking organization. The organization included street-level sellers who worked various shifts on the “drug set,” selling drugs to customers and collecting drug proceeds. The street-level sellers were supervised by different layers of managers who, in turn, supplied the drug set with pre-packaged heroin, some of which was mixed with fentanyl, as well as cocaine and crack cocaine. The FBI and other law enforcement officers recovered multiple firearms from different locations connected to the drug organization at the time of the 2018 arrests.
Sixteen of these defendants already have pleaded guilty to drug conspiracy charges before Judge Bumb in the United States District Court. Three defendants are awaiting trial, and the charges and allegations against those three defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Williams to five years of supervised release.
Acting U.S. Attorney Rachael A. Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Bradley S. Benavides; 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 effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Sara Aliabadi and Patrick C. Askin of the U. S. Attorney’s Office Criminal Division in Camden.
Bronx Man Admits Identity Fraud and Laundering over $6.5 Million in Illegal Drug ProceedsRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted his role in a large international money laundering conspiracy and using a stolen identity in furtherance of the scheme, Acting U.S. Attorney Rachael Honig announced.
Orlando Delgado, 31, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiracy to commit money laundering and one count of identity fraud.
According to documents filed in this case and statements made in court:
From August 2018 through December 2019, Delgado laundered over $6.5 million in cash drug proceeds on behalf of a large-scale money laundering organization with close ties to drug trafficking organizations in the Dominican Republic and elsewhere. Delgado accepted large amounts of cash drug proceeds and laundered it by purchasing over 390 cashier’s checks at local bank branches in New Jersey, New York, and Florida. The checks were made payable to individuals and companies specified by the leaders of the money laundering organization. By converting the drug proceeds to cashier’s checks, Delgado tried to hide the source of the illegal cash and avoid scrutiny by law enforcement and banks.
In August 2019, Delgado obtained a fraudulent identification card in someone else’s name and used it to open multiple bank accounts, which he then used to purchase over $1.5 million in cashier’s checks with cash drug proceeds.
The charge of money laundering conspiracy carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. The charge of identify fraud carries a maximum prison sentence of five years and a $250,000 fine. Sentencing is scheduled for Feb. 8, 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, and the New York Division, under the direction of Special Agent in Charge Raymond Donovan; 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, “DNCD”) with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Criminal Division in Newark.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Illinois Man Charged with Stealing Unemployment Insurance Benefits While IncarceratedRead the Press Release
NEWARK, N.J. – An Illinois man was arrested today for allegedly using other individuals’ personal identification information to obtain unemployment insurance benefits while he was incarcerated, Acting U.S. Attorney Rachael A. Honig announced.
Devontae Stokes, 27, of Country Club Hills, Illinois, is charged by complaint with conspiracy to commit wire fraud. He is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Jeffrey Cole in the Northern District of Illinois.
According to documents filed in this case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new, temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provided unemployment insurance benefits (UIB) for individuals who were not eligible for other types of unemployment (e.g., the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance (FPUC) that provided an additional weekly benefit to those eligible for PUA and regular UIBs.
Between August 2020 and November 2020, Stokes was incarcerated at FCI Fort Dix, a federal correctional institutional with an adjacent satellite camp located in Fort Dix, New Jersey. While incarcerated, Stokes and his associates caused UIB applications to be made to numerous states in the names of three victims. In response, the states provided more than $70,000 in UIB.
The charge of conspiring to commit wire fraud 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 Stokes or twice the gross loss suffered to the victims of his offense.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone, in Manhattan, New York; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark; special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, in Newark; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s arrest. She also thanked Federal Bureau of Prisons personnel at Fort Dix for their assistance.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cyber Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Brooklyn Man Admits Role in Scheme to Defraud New Jersey Banks by Depositing $1 Million in Stolen ChecksRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man today admitted his role in a scheme to defraud banks of more than $1 million using stolen and counterfeited checks and stolen identities, Acting U.S. Attorney Rachael A. Honig announced.
Frank Ambrosio, 36, pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
According to the documents filed in this case and statements made in court:
Ambrosio and his conspirators, including Benjamin Rich and Felix Alamo, agreed to defraud banks across New Jersey by using the stolen personal identification information of other individuals to open fraudulent bank accounts and deposit stolen and counterfeited checks. Rich used stolen identities, which included Social Security numbers belonging to minors, to create sham businesses. Ambrosio, Rich, Alamo and others opened bank accounts for the sham businesses and deposited stolen or counterfeited checks into the accounts and attempted to withdraw or transfer the funds before the banks could detect the fraud. Over the course of the scheme, Ambrosio and his conspirators deposited approximately $1 million in fraudulently obtained checks into the fraudulent business bank accounts, resulting in at least $250,000 in losses to the various banks.
The charge of bank fraud carries a maximum of 30 years in prison and a statutory maximum fine of $1 million, or twice the gain derived from the offense or loss caused by the offense, whichever is greatest.The charge of aggravated identity theft carries a statutory minimum prison term of two years in prison, to run consecutively to any term of imprisonment imposed on the bank fraud charge. Sentencing is scheduled for February 9, 2022.
Alamo previously pleaded guilty and is scheduled to be sentenced on Oct. 4, 2021.
Rich was indicted on these charges on June 25, 2021, and his trial date has not been scheduled.
Acting U.S. Attorney Rachael A. Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of the Treasury Inspector General for Tax Administration under the direction of Special Agent in Charge Andrew McKay; and the New York Police Department’s Special Fraud Squad under the direction of Assistant Police Chief Jason Wilcox.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Fraud Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations against Rich and are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel: William Strazza Esq., Chester, New Jersey
Bergen County Woman Pleads Guilty to Embezzling Money from Guided Tour Company and Subscribing to False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Lyndhurst, New Jersey woman admitted to her participation in a multi-year embezzlement scheme and to subscribing to a false personal income tax return, Acting U.S. Attorney Rachael A. Honig announced today.
Ruby Baroni, 54, of Lyndhurst, New Jersey, pleaded guilty today by videoconference before U.S. District Judge Julien Xavier Neals to a two-count information charging her with one count of wire fraud and one count of subscribing to a false tax return.
According to documents filed in this case and statements made in court:
Between October 2010 and August 2016, Baroni held an accounting position at a New Jersey guided-tour company. In that capacity, Baroni had authority to cut checks against the company’s bank accounts. During that period, Baroni and Estela Laluf, a manager at the company, devised a scheme to embezzle funds from the company. Laluf would direct Baroni to cut company checks to actual company employees and contractors, which did not reflect any actual work or services done by those individuals. Baroni would then cash these checks, and Laluf and Baroni would then convert the resulting funds to their personal use. In this way, Laluf and Baroni embezzled hundreds of thousands of dollars from the company. Baroni then fraudulently omitted the proceeds from the embezzlement scheme from her tax year 2016 tax return. Laluf pleaded guilty before Judge Neals to a separate information related to the scheme on September 20, 2021.
The charge of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The charge of subscribing to a false tax return carries a maximum penalty of 3 years in prison and a $250,000 fine. Sentencing is scheduled before Judge Neals for January 25, 2022.
Acting U.S. Attorney Honig credited special agents of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raiumundo Marrero, and the Internal Revenue Service—Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
Defense counsel: Amie E. DiCola, Esq., Passaic, New Jersey
New Jersey Man Extradited to United States to Face Charges for Wire Fraud and International Money LaunderingRead the Press Release
TRENTON, N.J. – A New Jersey man has been arrested for charging unauthorized credit card transactions for music lessons that were not provided to students, and laundering these funds outside of the United States, Acting U.S. Attorney Rachael A. Honig announced.
Michael Lawson, 49, was indicted in 2013 on six counts of wire fraud and six counts of international money laundering. Lawson was extradited from the Czech Republic, made his initial appearance today before U.S. Magistrate Judge Bongiovanni in Trenton federal court, and was released.
According to documents filed in this case and statements made in court:
Lawson was the owner of several internet-based companies that matched art and music teachers with students in need of lessons throughout the United States. The students entered into contracts with Lawson’s companies and agreed to pay for lessons via online credit card transactions. Beginning in November 2008, Lawson started renewing students’ contracts for music lessons without the students’ knowledge and consent, and started charging the students’ credit cards for the lessons that they had not requested. Lawson then directed the funds to be transferred internationally to accounts that he controlled abroad.
The counts of wire fraud are punishable by a maximum of 20 years in prison and a maximum fine $250,000, or twice the gross gain or loss from the offense, whichever is greatest. The counts of money laundering are punishable by a maximum penalty of 20 years in prison and a maximum fine of $500,000, or twice the amount involved in the offense, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges. She also thanked the U.S. Marshals Service; the Ministry of Justice of the Czech Republic; the Czech Police Presidium; INTERPOL; the office of FBI Legat Prague; the office of FBI Legat "The Hague;" and FBI-New York JFK Airport Resident Agency, for their assistance. The Justice Department’s Office of International Affairs provided substantial assistance in securing Lawson’s arrest and extradition from the Czech Republic.
The government is represented by Assistant U.S. Attorney Eric Suggs in Trenton.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Union County Postal Employee Admits Stealing Credit Cards from MailRead the Press Release
NEWARK, N.J. – A former Union County, New Jersey, woman today admitted stealing credit cards sent through the mail while employed as a clerk at the U.S. Postal Service (USPS) in Elizabeth, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Myriam Jimenez-Valentin, 33, now of Barbourville, Virginia, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging her with one count of theft of mail.
According to documents filed in this case and statements made in court:
From April 1 to July 23, 2019, Jimenez, then a postal employee, admitted stealing credit cards addressed to third-party victims and mailed to addresses on postal routes in Elizabeth and Roselle Park, New Jersey, that she provided to other individuals in exchange for offers of $100 per card. The fraudulent charges on the credit cards Jimenez stole totaled over $2,000.
The mail theft charge is punishable by a maximum potential penalty of five years in prison and a maximum $250,000 fine. Sentencing is scheduled for Feb. 1, 2022.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of 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 charge. 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.
Philadelphia Man Admits Orchestrating $2 Million PPE Fraud SchemeRead the Press Release
NEWARK, N.J. – A Philadelphia man today admitted orchestrating a $2 million PPE fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.
Guaravjit Singh, 26, pleaded guilty by videoconference before U.S. District Court Judge Peter G. Sheridan to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
Beginning in May 2020, in the midst of the COVID-19 pandemic, Singh engaged in a scheme to enrich himself by fraudulently inducing 10 victims to send him over $2 million to obtain personal protective equipment (PPE). He stole the money, spending it on personal expenses, and he did not provide the promised PPE to the victims.
For instance, Singh induced victims to enter into an agreement pursuant to which Singh would be paid approximately $7.1 million in exchange for approximately 1.5 million medical gowns, which ultimately were to be sourced to the City of New York. Under the terms of the agreement, the victims wired Singh, though his company GJS Solutions LLC, approximately $712,500, representing a 10 percent deposit for the medical gowns. After receiving these funds from the victims, Singh made additional misrepresentations and excuses to the victims, ensuring them that they would receive the medical gowns. Instead of purchasing and delivering medical gowns, Singh used the funds for personal expenses, including transferring funds to his brokerage account and using the funds for online gaming and other personal expenditures.
The count of wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Feb. 10, 2022.
Acting U.S. Attorney Honig credited special agents and intelligence analysts of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the Economic Crimes Unit in Newark.
Middlesex County Man Admits Selling Carvings Made of Sperm Whale IvoryRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted the interstate sale of carvings made of sperm whale ivory, Acting U.S Attorney Rachael A. Honig announced.
Richard Gontarek, 55, of Woodbridge, New Jersey, pleaded guilty before U.S. Magistrate Judge Michael A. Hammer in Newark federal court to an information, charging him with two counts of violating the Lacey Act, by selling to a buyer in Pennsylvania carvings made of sperm whale ivory that Gontarek should have known were possessed in violation of New Jersey State law.
According to documents filed in this case and statements made in court:
On Jan. 3, 2018, and on Dec. 6, 2018, Gontarek shipped a package containing a carving made from the tooth of a sperm whale to a buyer in Etter, Pennsylvania, in exchange for payment. Sperm whales are listed in Appendix I to the Convention on International Trade in Endangered Species of Wild Fauna and Flora.
The Lacey Act makes it a crime to sell in interstate commerce wildlife possessed in violation of any state law when in the exercise of due care the seller should have known that the wildlife was possessed in violation of the state law. New Jersey state law makes it unlawful for any person to possess with intent to sell ivory or any item that contains or is made from ivory.
As part of his plea agreement, Gontarek has agreed to pay a fine of $2,800 to the U.S. Fish and Wildlife Service Lacey Act Reward Fund.
Each of the charges to which Gontarek pleaded guilty carries with it a maximum penalty of one year in prison and a maximum fine of $100,000. Sentencing is scheduled for Jan. 25, 2022.
Acting U.S. Attorney Honig credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Resident Agent in Charge Sean Mann, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney’s Office Government Fraud Unit in Newark.
Member of Paterson Drug Ring Admits Drug Conspiracy and Distribution of FentanylRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted participating in a conspiracy to distribute heroin, Acting U.S. Attorney Rachael A. Honig announced.
Shamir Williams, 26, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to an information charging him with conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin and distribution of fentanyl.
According to documents filed in this case and statements made in court:
From May 2020 through Aug. 13, 2020, Shamir Williams, 26, conspired with others to distribute heroin and fentanyl. On June 11, 2020, Williams negotiated the sale of approximately 12,500 glassines of heroin, and then arranged for the delivery of the heroin, from the District of New Jersey to the District of Vermont.
The drug conspiracy charged in count one of the information carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and a fine of at least $5 million. Distribution of fentanyl, as charged in count two of the information, carries a maximum penalty of 20 years in prison and a fine of at least $1 million. Sentencing is scheduled for Feb. 2, 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.
Essex County Teacher Admits Health Care Fraud Conspiracy Targeting New Jersey School Employees’ Health Benefits ProgramRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, public school teacher today admitted his role in conspiring to defraud the N.J. School Employees’ Health Benefits Program (SEHBP) with phony claims for medically unnecessary prescriptions, Acting U.S. Attorney Rachael A. Honig announced.
Jason Nardachone, 51, of Nutley, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an indictment charging him with one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Nardachone participated in a scheme to defraud the SEHBP by knowingly causing the billing of medically unnecessary compounded medications, such as metabolic vitamins, pain creams, and scar creams, for himself and three other teachers. From September 2015 through February 2016, Nardachone and others received medically unnecessary compounded medications that cost the SEHBP from $3,300 to $22,800 per medication. Nardachone bribed the three other teachers with monthly payments of $500 in exchange for their agreement to obtain compounded medications they did not need. The scheme resulted in losses to the SEHBP of more than $550,000.
The count of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 1, 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.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit in Newark.
Monmouth County Man Admits Falsely Labeling International Shipment of Wildlife as ‘Toys’Read the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man today admitted falsely labeling as “Toys” a package containing 10 live rhinoceros iguanas that was destined for Hong Kong, Acting U.S Attorney Rachael A. Honig announced.
Jason Ksepka, 44, of Farmingdale, New Jersey, pleaded guilty before U.S. District Judge Zahid Quraishi in Trenton federal court to an information, charging him with one count of violating the Lacey Act by falsely labeling an international shipment of wildlife.
According to documents filed in this case and statements made in court:
On Nov. 7, 2017, Ksepka shipped a package via U.S. Priority Mail Express from the U.S. Post Office in Lambertville, New Jersey. The package contained 10 live rhinoceros iguanas and was destined for Hong Kong. Defendant Ksepka falsely described the contents of the package as “Toys” and the sender as “Luke Jacobs” on a U.S. Postal Service International Shipping Label and Customs Form that accompanied the package. On Nov. 8, 2017, U.S. Fish and Wildlife Service Inspectors intercepted the package at the mail facility at John F. Kennedy International Airport and recovered the rhinoceros iguanas from inside the package.
Ksepka was paid $500 by an individual to falsely label the package and ship it to Hong Kong. One year prior to the shipment, the same individual had paid Ksepka $500 to ship approximately 10 additional rhinoceros iguanas to Hong Kong.
Ksepka has agreed, as part of his plea agreement, to pay a fine of $1,000 to the U.S. Fish and Wildlife Service Lacey Act Reward Fund.
The charge to which Ksepka pleaded guilty carries with it a maximum penalty of five years’ imprisonment and a fine of $250,000. Sentencing is scheduled for Jan. 25, 2022.
Acting U.S. Attorney Honig credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Resident Agent in Charge Sean Mann, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney’s Office Government Fraud Unit in Newark.
Two Camden Men Charged with Armed Robbery of Gas StationRead the Press Release
CAMDEN, N.J. – Two Camden men have been charged for their roles in robbing a gas station in Camden County, Acting U.S. Attorney Rachael A. Honig announced today.
Paul Rogers, 27, and Kamau Bradshaw, 19, are each charged by complaint with one count of Hobbs Act robbery. They appeared by videoconference before U.S. Magistrate Judge Sharon A. King on Sept. 17, 2021, and were detained.
According to documents filed in this case and statements made in court:
On Sept. 14, 2021, a gas station in Pennsauken, New Jersey, was robbed by two masked individuals carrying an AR-style rifle. One of the robbers wore a gray Nike hooded sweatshirt and scuffed tan work boots. The second robber wore a tan hooded sweatshirt with “REACTIVE” printed on the sleeves and striped boxershorts. They obtained cash and cigarettes while brandishing the firearm. Two days later, a robber wearing what appears to be the same grey Nike sweatshirt and brandishing an AR-style rifle obtained several hundred dollars after committing another armed robbery of a gas station in Haddon Township, New Jersey. Shortly after each robbery, two individuals were seen returning to a residence in Camden with a large duffle bag. On Sept. 17, 2021, law enforcement officers executed a federal search warrant at the Camden residence and recovered, among other items, a duffle bag, an AR-style rifle, a grey Nike sweatshirt, scuffed tan work boots, and a tan hooded sweatshirt with “REACTIVE” printed on the sleeves. Rogers and Bradshaw were present when law enforcement agents executed the search warrant, at which time Bradshaw was wearing striped boxershorts consistent with those worn by one of the robbers during the robbery on Sept. 14, 2021.
Each defendant faces a maximum penalty of 20 years in prison and a fine of up to $250,000.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Camden Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Pennsauken Police Department, under the direction of Acting Police Chief Phil Olivo; the Haddon Township Police Department, under the direction of Chief Mark Cavallo; the Vineland Police Department; the Bridgeton Police Department, under the direction of Chief Michael A. Gaimari Sr.; and the Brooklawn Police Department, under the direction of Chief Shamus Ellis, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Six Members of Jersey City Gang Charged with Stabbing an Individual in Jersey CityRead the Press Release
NEWARK, N.J. – Six members of a Jersey City gang have been charged with the Aug. 3, 2020, stabbing of an individual on a busy street in Jersey City, Acting U.S. Attorney Rachael A. Honig announced today.
Sheldon Mays, aka “Thottie,” 21, Jermaine Jennings, aka “Maine” and “Drill,” 20, Divine Abraham, aka “Dee,” 21, Jamil Bowens, 20, and Jaylen Boone, 21, all of Jersey City, made their initial appearances before U.S. Magistrate Judge André M. Espinosa today and were detained. Yahsier Brown, 19, of Jersey City, New Jersey, previously made his initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was detained. They each are charged by complaint with one count of assault with a dangerous weapon in aid of racketeering activity.
According to the documents filed in this case and statements made in court:
Mays, Jennings, Abraham, Bowens, Boone and Brown are allegedly members of a street gang known to operate around the Curries Woods Housing Complex in Jersey City. In retaliation for a prior assault of Mays by Individual-1 and other members of a rival gang, and in furtherance of an ongoing feud amongst the two gangs, the defendants sought out Individual-1, assaulted him, and stabbed him in broad daylight on a busy street in Jersey City. Individual-1 suffered life-threatening injuries.
The count of assault with a dangerous weapon in aid of racketeering activity is punishable by a maximum of 20 years in prison.
Acting U.S. Attorney Honig credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; the Jersey City Police Department, under the direction of Public Safety Director James Shea; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and the Hudson County Department of Corrections with the investigation leading to the charges.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole Board, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorneys Tracey Agnew and DeNae Thomas in the Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
New Jersey Man Admits Stealing more than $450,000 in Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A Union, New Jersey, man today admitted that he illegally obtained more than $450,000 in unemployment insurance benefits, Acting U.S. Attorney Rachael A. Honig announced.
Maurice Mills, 29, of Union, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to an information charging him with wire fraud.
According to documents filed in the case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provides unemployment insurance benefits (UIB) for individuals who were not eligible for other types of unemployment (e.g., the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Compensation that provides additional benefits to those eligible for PUA and regular UIB. The New York State Department of Labor administers and manages the regular unemployment and PUA programs in the State of New York.
Between August and September of 2020, Mills submitted fraudulent UIB applications to the State of New York using the names of other individuals. As a result, the State of New York approved and provided, and Mills falsely obtained, more than $450,000 in UIB.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross profits to Mills or loss suffered by the victims, whichever is greatest. Sentencing is scheduled for Feb. 3, 2022.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in Manhattan; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, with the investigation leading to today’s arrest. 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.
Monmouth County Man Sentenced to 30 Months in Prison for Unlawfully Possessing a FirearmRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced to today to 30 months in prison for being a felon in possession of a firearm, Acting U.S. Attorney Rachael A. Honig announced.
Khalil I. Howard, 24, of Neptune, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an indictment charging him with one count of being a felon in possession of a firearm. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On April 7, 2019, officers with the Asbury Park Police Department were on foot patrol in the area of the Asbury Park Gardens, a multi-building public housing complex known to local law enforcement as a high-crime area due to numerous recent gang, firearms, and narcotics-related investigations and arrests at that location. They had been advised of a gathering in honor of a recently deceased gang member that was taking place at the Asbury Park Gardens. The officers proceeded to the area where the gathering was taking place and conducted a walk-through of the premises. One of the officers observed Howard, a previously convicted felon, on the second floor attempting to conceal a large bulge in his left jacket pocket. Howard quickly turned with his left arm clenched to the side of his body and walked to the third floor. The officers ordered Howard to stop, and apprehended him. They found a stolen Beretta 9-millimeter semi-automatic handgun, loaded with one round of 9-millimeter ammunition in the chamber and an additional seven rounds of 9-millimeter ammunition in the magazine, secreted inside Howard’s left jacket pocket. As a previously convicted felon, Howard is not permitted to possess firearms under federal law.
In addition to the prison term, Judge Sheridan sentenced Howard 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, as well as officers of the Asbury Park Police Department, under the direction of Chief of Police David Kelso, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the Criminal Division in Trenton.
Justice Department Settles with State of New Jersey’s Student Lending Authority for Alleged Violations of Servicemembers Civil Relief ActRead the Press Release
NEWARK, N.J. – The Department of Justice announced today that the New Jersey Higher Education Student Assistance Authority (HESAA) has agreed to enter into a settlement and pay $50,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by obtaining unlawful court judgments against two servicemembers who had co-signed student loans.
Under the proposed consent decree, which was filed today in the U.S. District Court for the District of New Jersey and must still be approved by the court, HESAA will pay $15,000 each to two servicemembers who had default judgments entered against them, and will pay a civil penalty of $20,000 to the United States. The consent decree also requires HESAA to provide SCRA training to its employees and outside counsel and to comply with new policies and procedures consistent with the SCRA.
“Through this settlement, we honor the brave members of our armed services by ensuring that their rights are protected when called to duty,” Acting U.S. Attorney Rachael A. Honig said. “This office remains steadfast in its commitment to protect the rights of servicemembers in New Jersey. We thank HESAA for its cooperation with our investigation and HESAA’s acknowledgement that protecting the rights of servicemembers under the SCRA is of significant public importance.”
“Congress enacted the Servicemembers Civil Relief Act to protect those who risk their lives serving our nation,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “This settlement clearly sends the message that the Department of Justice will continue enforcing the Act vigorously to protect servicemembers and to ensure that all covered industries, including providers of student loans, comply fully with the law.”
The Civil Rights Unit of the U.S. Attorney’s Office for the District of New Jersey launched its investigation after Coast Guard legal assistance attorneys in Portsmouth, Virginia, reported that HESAA had obtained a default judgment in 2019 against a Coast Guard petty officer who had co-signed for two student loans. The SCRA protects servicemembers from default judgments in circumstances in which, because of their military service, they may be unable to appear in court and defend themselves. Under the SCRA, if a lender files a civil lawsuit against a borrower and then seeks a default judgment, the lender must notify the court of the borrower’s military status. If the borrower is in military service, the court cannot enter judgment until it appoints an attorney to represent the borrower, and the court must, in most circumstances, postpone the proceedings for at least 90 days.
In a complaint filed today with the proposed consent decree, the Department of Justice alleges that HESAA obtained default judgments against two SCRA-protected servicemembers by failing to disclose their military service and filing affidavits that inaccurately stated that they were not in the military. Lenders can verify an individual’s military status by searching the Defense Manpower Data Center’s (DMDC) free, publicly available website or by reviewing their files to see if there are applications, military leave and earnings statements, or military orders indicating military status. After conducting DMDC database searches that confirmed that the servicemembers were in military service, HESAA, through its outside counsel, nevertheless filed affidavits in state court that inaccurately stated that the servicemembers were not in military service.
This matter was handled jointly by the U.S. Attorney’s Office for the District of New Jersey and the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.
Individuals who believe their civil rights have been violated in the District of New Jersey may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
The government is represented by Special Assistant U.S. Attorney Victor Williamson of the U.S. Attorney’s Civil Rights Unit, Civil Division, in consultation with the Civil Rights Division’s Housing and Civil Enforcement Section.
Bergen County Woman Admits Embezzling Money from Guided Tour Company and Subscribing to False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted participating in a multi-year embezzlement scheme and subscribing to a false personal income tax return, Acting U.S. Attorney Rachael A. Honig announced.
Estela Laluf, 76, of River Edge, New Jersey, pleaded guilty by videoconference before U.S. District Judge Julien Xavier Neals to an information charging her with one count of wire fraud and one count of subscribing to a false tax return.
According to documents filed in this case and statements made in court:
Between October 2010 and August 2016, Laluf held a management position at a New Jersey guided-tour company. During that time, Laluf and another employee, who held an accounting position at the company and had authority to write checks against the company’s bank accounts, devised a scheme to embezzle funds from the company. Laluf would direct the employee to write company checks to actual company employees and contractors, which did not reflect any actual work or services done by those individuals. The employee would then cash these checks, and Laluf and the employee would convert the resulting funds to their personal use. Laluf and the employee embezzled hundreds of thousands of dollars from the company. Laluf then fraudulently omitted the proceeds of the embezzlement scheme from her tax year 2016 tax return.
The charge of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The charge of subscribing to a false tax return carries a maximum penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 24, 2022.
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 of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
Gloucester County Man Charged with Fraud for Role in Healthcare ConspiracyRead the Press Release
CAMDEN, N.J. – A federal grand jury today returned a five-count indictment charging a Gloucester County, New Jersey, man with defrauding his employer’s health insurance plan out of more than $4 million by submitting fraudulent claims for medically unnecessary compounded medications, Acting U.S. Attorney Rachael A. Honig announced today.
Christopher Gualtieri, 48, of Franklinville, New Jersey, is charged with conspiracy to commit health care fraud and mail fraud and individual acts of mail fraud. Gualtieri was also charged with making false statements to federal agents during the investigation, as well as preparing and filling fraudulent oxycodone prescriptions. Gualtieri is scheduled to appear today by videoconference before U.S. Magistrate Judge Sharon A. King. The case is assigned to U.S. District Judge Robert B. Kugler in Camden.
According to the indictment:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Compounded drugs can be properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Gualtieri and others learned that certain compound medication prescriptions – including vitamins, scar creams, pain creams, and sunscreens – were reimbursed by their health insurance plan for up to thousands of dollars for a one-month supply. Gualtieri recruited co-workers who were covered by their employer’s self-funded health insurance plan to agree to receive medically unnecessary compounded medications for themselves and their family members. Gualtieri and others caused the submission of fraudulent prescriptions to compounding pharmacies, which filled the prescriptions and billed the health insurance plan’s pharmacy benefits administrator. The pharmacy benefits administrator paid the compounding pharmacies more than $4 million for compounded medications arranged by Gualtieri and two conspirators for themselves, their dependents, and other family members. Gualtieri received a portion of the amount paid by the pharmacy benefits administrator to the compounding pharmacies. Gualtieri then paid cash and other remuneration to his conspirators for their participation in the scheme. When questioned by special agents of the FBI, Gualtieri falsely denied recruiting others to receive compounded medications and falsely denied paying cash to others for their participation in the scheme.
During the same time period as the conspiracy involving compounded medications, Gualtieri also prepared and filled fraudulent prescriptions for oxycodone for himself and a family member.
Gualtieri faces a maximum penalty on the conspiracy and mail fraud counts of 20 years in prison, a maximum penalty on the false statements count of five years in prison, and a maximum penalty on the obtaining drugs by fraud count of four years in prison. He also faces a fine on each count of up to $250,000 or twice the gross gain or gross loss from the offense, whichever is greatest.
Acting U.S. Attorney Honig credited agents of the FBI, Philadelphia Field Office, Health Care Fraud Task Force, under the direction of Acting Special Agent in Charge Bradley S. Benavides, and task force members from the Pennsylvania Attorney General’s Office, Department of Health and Human Services – Office of Inspector General, and the Philadelphia Police Department, as well as diversion investigators of the Drug Enforcement Administration, New Jersey Division, Camden Resident Office, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to the indictment. Acting U.S. Attorney Honig also thanked U.S. Postal Service – Office of Inspector General, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Postal Service Employee Admits Stealing Cell Phones from MailRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted stealing dozens of cell phones from mail that passed through a postal distribution center where he was employed, Acting U.S. Attorney Rachael A. Honig announced.
Kyle Terry, 36, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of theft of mail by a postal employee.
According to documents filed in this case and statements made in court:
Terry was employed by the U.S. Postal Service as a mail handle assistant at a national postal distribution center in Jersey City. From Nov. 1, 2017, to Jan. 28, 2018, Terry stole 39 cell phones having a total approximate value of $35,000 from mail that passed through that distribution center.
The theft of mail by a postal employee charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 17, 2022.
Acting U.S. Attorney Honig credited special agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Leslie Faye Schwartz of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
Pennsylvania Man Admits Conspiring to Distribute 430 Kilograms of KhatRead the Press Release
NEWARK, N.J. – A Pennsylvania man today admitted to conspiring to distribute 430 kilograms of khat imported through Newark International Airport, Acting U.S. Attorney Rachael A. Honig announced.
Azeez Adebari, 46, of Harrisburg, Pennsylvania, pleaded guilty before U.S. District Judge Brian Martinotti in Newark federal court to an information charging him with one count of conspiring to distribute and to possess with intent to distribute a quantity of a mixture containing cathinone and cathine.
According to documents filed in this case and statements made in court:
On April 21, 2021, U.S. Customs and Border Protection (CBP) officers identified a freight container suspected of containing khat that had arrived by air at Newark International Airport. Khat is a flowering shrub that is abused for its stimulant-like effects and has no accepted medical use in the United States. Khat contains two active ingredients that are controlled substances: cathinone, a Schedule I controlled substance, and cathine, a Schedule II controlled substance.
CBP officers determined that the shipment contained approximately 430 kilograms gross weight of khat. The shipping manifest and other customs documentation identified the contents of the shipment as clothing, and ground melon and pepper, among other things. On May 3, 2021, Adebari, who was listed as the consignee on the shipment, arrived at Newark Airport to pick up the khat shipment and was arrested.
The charge to which Adebari pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Jan. 27, 2022.
Acting U.S. Attorney Honig credited special agents of the Department of Homeland, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, and officers of CBP, under the direction of Marty Raybon, Acting Director of Field Operations, New York Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the Organized Crime & Gangs Unit in Newark.
Former Union County Postal Employee Admits Conspiring to Commit Bank Fraud and Fraudulently Attempting to Obtain SBA LoansRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman today admitted stealing checkbooks and credit cards from the mail while employed as a U.S. Postal Service (USPS) clerk and filing fraudulent applications for loans intended for small businesses experiencing disruptions due to the COVID-19 pandemic, Acting U.S. Attorney Rachael A. Honig announced.
Janel Blackman, 42, of Newark, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging her with one count of conspiracy to commit bank fraud and one count of making false statements to the U.S. Small Business Administration (SBA).
According to documents filed in this case and statements made in court:
From February 2019 to May 2020, Blackman conspired to obtain money from victim financial institutions fraudulently, by, among other things, stealing credit cards and blank checkbooks from a post office in Summit, New Jersey, where she was employed as a clerk, and providing them to conspirators in exchange for cash. Blackman’s conspirators then fraudulently forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students, and who had given the conspirators access to their accounts, also in exchange for cash. Blackman’s conspirators deposited the fraudulent checks online and at various bank ATMs throughout New Jersey and later withdrew funds from the bank accounts before the victim financial institutions identified the checks as fraudulent and could block further withdrawals. Blackman and her conspirators obtained and attempted to obtain approximately $366,000 from victim financial institutions.
From July 2020 to February 2021, Blackman also filed fraudulent applications for Economic Injury Disaster Loans (EIDL), which are intended for small businesses experiencing substantial financial disruption due to the COVID-19 pandemic. The applications were for businesses that did not exist and were intended to induce the SBA to provide funding to Blackman under false pretenses. For example, on Oct. 25, 2020, Blackman filed an EIDL application in the name of Hard Times Café, stating that it was a liquor store in Newark with 10 employees. In fact, no such business existed. Blackman further falsely stated that she, as the listed owner of Hard Times Cafe, was not then presently subject to formal criminal charges in any jurisdiction, even though as of Sept. 17, 2020, she had been arrested and charged by criminal complaint in the District of New Jersey with the bank fraud conspiracy described above. The SBA did not approve the application.
Three of Blackman’s conspirators, Tashon Ragan, 22, of Hillside, New Jersey, Jahaad Flip, 22, of Newark, New Jersey, and Jeffrey Bennett, 27, of Irvington, New Jersey, previously pleaded guilty before Judge Wigenton to conspiracy to commit bank fraud and are awaiting sentencing.
The conspiracy charge and the false statement charge are each punishable by a maximum potential penalty of 30 years in prison and a fine of up to $1 million. Sentencing is scheduled for Jan. 27, 2022.
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 in Newark; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi; special agents with IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. She also thanked the Summit Police Department, the New Providence Police Department, the Piscataway Police Department, the Newark Police Department, the South Orange Police Department, and the Little Falls Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Elaine K. Lou in Newark.
Registered Sex Offender Admits Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man admitted possessing multiple images and videos of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced today.
Robert Klemt, 34, of Wayne, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden on Sept. 14, 2021, to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
In June 2020, agents with the Department of Homeland Security – Homeland Security Investigations approached Klemt at his residence after receiving information that Klemt had accessed a website containing child pornography. Law enforcement subsequently discovered over 70 images and videos depicting child sexual abuse on Klemt’s laptop computer.
Klemt was previously convicted of endangering the welfare of a child/distribution of child pornography in Essex County in 2014.
The charge of possession of child pornography, for a repeat offender, carries a mandatory minimum term of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Jan. 19, 2022.
Acting U.S. Attorney Honig credited special agents with the DHS-HSI, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Passaic County Man Admits Illegal Possession of Firearm and AmmunitionRead the Press Release
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.
Jamir Clark, 27, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi to an indictment charging him with one count of 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, Clark possessed a firearm capable of accepting a large capacity magazine, which was loaded with 14 rounds of .45 caliber ammunition. Clark has previously been convicted of possession of controlled substances within 1,000 feet of a school, a felony offense.
The firearms offense to which Clark pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 22, 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 DEA, 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.
New York Man Admits Role in KidnappingRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted his role in a Paterson, New Jersey, kidnapping, Acting U.S. Attorney Rachael A. Honig announced.
Maurice Cottman, 41, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of kidnapping.
According to documents filed in this case and statements made in court:
On Oct. 8, 2020, Cottman and his conspirator, Reginald Law, entered a retail store in Paterson and assaulted the Victim, who was working in the store. Cottman and Law dragged the victim from the store, threw him into the back of a U-Haul truck and drove to New York. Cottman and Law pistol-whipped the victim in the head and face. Cottman called the victim’s family and demanded $200,000 for his return.
That afternoon, law enforcement officers went to Harlem, New York, where they saw the U-Haul parked on the street. When the officers approached, Cottman and Law fled in the U-Haul and a motor-vehicle pursuit ensued. After some distance, the U-Haul crashed, and a foot pursuit ensued. Cottman was arrested, but Law got away. The officers opened the U-Haul and rescued the victim. Law was arrested on May 26, 2021.
The kidnapping charge to which Cottman pleaded guilty is punishable by a maximum penalty of life in prison and a $250,000 fine. Sentencing is scheduled for Feb. 2, 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 FBI New York Field Office and the Paterson Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Violent Crimes Unit.
The charges against Law remain pending, and he is presumed innocent unless and until proven guilty.
Middlesex County Man Charged with $1.3 Million in Paycheck Protection Program and Economic Injury Disaster Loan Fraud SchemeRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was arrested today on charges related to his role in fraudulently obtaining $1.3 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), Acting U.S. Attorney Rachael A. Honig announced today.
Jordan C. Larkins, 31, of Edison, New Jersey, is charged by complaint with three counts of bank fraud, seven counts of wire fraud, and two counts of money laundering. Larkins is scheduled to have his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Jessica S. Allen.
According to documents filed in this case and statements made in court:
Larkins submitted three fraudulent PPP loan applications to two different lenders on behalf of three purported businesses and a total of seven EIDL applications to the Small Business Association (SBA) on behalf of four purported businesses.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The applications Larkins submitted allegedly contained fraudulent representations to the participating lenders and the SBA, including bogus federal tax return documentation. According to Social Security Administration records, there were no wages or Forms W-2 processed for any of the entities between 2018 and 2020. Larkins also fabricated bank statements, the identities of certain individuals listed on the applications, and driver’s licenses of purported applicants.
Lenders and the SBA approved Larkins’s PPP loan applications, EIDL SBA loan applications, and EIDL advance payments, and provided Larkins’s purported businesses with approximately $1.3 million in federal COVID-19 emergency relief funds meant for distressed small businesses.
The three counts of bank fraud each carry a maximum penalty of 30 years in prison and a $1 million fine; the seven counts of wire fraud each carry a maximum penalty of 20 years, and the two counts of money laundering each carry a maximum penalty of 10 years in prison. Both the wire fraud and money laundering counts carry a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.
Acting U.S. Attorney Rachael Honig credited postal inspectors of U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents of the Social Security Administration Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge John Grasso, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office’s Government Fraud Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Essex County Man Sentenced to Three Years in Prison for Illegally Possessing Firearm and NarcoticsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 36 months in prison for illegal possession of a firearm and possession of methamphetamine and marijuana, Acting U.S. Attorney Rachael Honig announced.
Kevon A. Anderson, 25, of Newark, previously pleaded guilty before U.S. District Judge Katharine S. Hayden, who imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On Sept. 10, 2019, while investigating a shooting from the previous evening near Hawthorn Avenue, Newark police officers approached a group of men sitting in an adjacent park to ask them whether they had any information about the shooting. Officers detected the smell of marijuana, and one of the men, later identified as Anderson, abruptly stood up and walked away from the officers. One of the officers saw a bulge in Anderson’s front pants pocket, which the officer believed could be a weapon, and asked Anderson to sit back down. Anderson disregarded the officer and ran across the park. The officers pursued Anderson and caught up with him. As the officers approached him to pat him down, Anderson told them he had a gun on him. In addition to the gun, the officers recovered ecstasy pills and large quantities of marijuana packaged for sale from a fanny pack around Anderson’s waist, as well as a black bag he was carrying. There were also additional live rounds of ammunition in the fanny pack.
In addition to the prison term, Judge Hayden sentenced Anderson 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, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office National Security Unit in Newark.
Essex County Man Admits Firearms and Narcotics OffensesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted firearms and marijuana distribution offenses, Acting U.S. Attorney Rachael A. Honig announced.
Shatuwan McCall, 20, of Newark, pleaded guilty before U.S. District Judge Kevin McNulty by videoconference to an information charging him with one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute marijuana, and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
On Dec. 4, 2020, at approximately 11:00 p.m., law enforcement officers were patrolling locations that had been the site of recent shootings and homicides while conducting a narcotics investigation in the vicinity of South 17th Street in Newark. They observed a vehicle, occupied by McCall and another individual, engaged in traffic violations. As the officers approached the vehicle and illuminated the occupants with their flashlights, they observed a large plastic bag containing a green leafy substance, suspected to be marijuana, on McCall’s lap. Law enforcement officers also observed McCall moving his right arm and hand as though adjusting something in the vicinity of the passenger-side floorboard and noticed a handgun in McCall’s right hand. Law enforcement ultimately recovered approximately 15 bags of suspected marijuana, narcotics proceeds, and a .22 caliber Llama revolver loaded with six rounds of ammunition.
The count of being a felon in possession of a firearm is punishable by a maximum of 10 years in prison and a fine of up to $250,000. The count of possession with intent to distribute marijuana is punishable by a maximum of five years in prison and a fine of up to $250,000. The count of possessing a firearm in furtherance of the narcotics trafficking offense carries a mandatory minimum prison term of five years and a maximum of life in prison, and a fine of up to $250,000, which must run consecutively to any other term of imprisonment imposed on the other two counts. Sentencing is scheduled for Jan. 24, 2022.
Acting U.S. Attorney Honig credited members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the Organized Crime & Gangs Unit in Newark.
Essex County Man Admits Conspiring to Steal Mail and Commit Bank FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in a conspiracy to steal check books and credit cards from the mail, deposit fraudulent checks, including pandemic relief checks, and use stolen credit cards without authorization, Acting U.S. Attorney Rachael A. Honig announced
Jeffrey Bennett, 27, of Irvington, New Jersey, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From February 2019 to May 2020, Bennett conspired to fraudulently obtain money from victim financial institutions by depositing counterfeit checks and checks stolen from the mail into accounts at these financial institutions and withdrawing funds before the financial institutions identified the fraudulent checks and blocked further withdrawals. Bennett and his conspirators arranged for U.S. Postal Service (USPS) employees to steal credit cards and blank check books from the mail in exchange for cash payments. USPS employees provided the checks to Bennett and his conspirators, who forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students, who had given Bennett and his conspirators access to their accounts, also in exchange for cash. Bennett and his conspirators obtained and attempted to obtain approximately $366,000 from victim financial institutions.
Two of Bennett’s conspirators, Tashon Ragan, 22, of Hillside, New Jersey, and Jahaad Flip, 22, of Newark, previously pleaded guilty before Judge Wigenton to conspiracy to commit bank fraud and are awaiting sentencing. Charges are still pending against another conspirator, USPS employee Janel Blackman, 42, of Newark. The charges against Blackman are merely accusations, and he is presumed innocent unless and until proven guilty.
The conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a fine of up to $1 million. Sentencing is scheduled for Jan. 19, 2022.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office under the direction of Special Agent in Charge Matthew Modafferi; special agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. She also thanked the Summit Police Department, the New Providence Police Department, the Piscataway Police Department, the Newark Police Department, the South Orange Police Department, and the Little Falls Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Elaine K. Lou in Newark.
Former Inmate Sentenced to 43 Months in Prison for Role in Scheme to use Drones to Smuggle Contraband into Federal Correctional Facility at Fort DixRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 43 months in prison for his role in a conspiracy to use drones to smuggle contraband, including cell phones and tobacco, into the federal correctional facility at Fort Dix, and for possessing with intent to distribute heroin and fentanyl, Acting U.S. Attorney Rachael A. Honig announced.
Jason Arteaga-Loayza, aka “Juice,” 30, of Jersey City, New Jersey, a former inmate at Fort Dix, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to defraud the U.S. Bureau of Prisons and one count of possession of heroin and fentanyl with the intent to distribute. Arteaga-Loayza, who was on federal supervised release at the time of the offenses, also pleaded guilty to violating his supervised release. Judge Wigenton imposed the sentence today by videoconference.
Three other men, Adrian Goolcharran, aka “Adrian Ahoda,” aka “Adrian Ajoda,” aka “Adrian Ajodha,” Nicolo Denichilo, and Johansel Moronta also have been charged with using drones to smuggle contraband into Fort Dix prison.
According to the documents filed in this case and statements made in court:
Arteaga-Loayza, an inmate at Fort Dix from June 2017 to September 2018, participated in multiple drone deliveries of contraband into Fort Dix after his release from prison. Between October 2018 and June 2019, Arteaga-Loayza arranged for Goolcharran, with Denichilo’s assistance, to fly drones over Fort Dix and drop packages of contraband into the prison, where it was sold to inmates for a profit. The packages that Arteaga-Loayza smuggled in included cell phones, cell phone accessories, tobacco, weight-loss supplements, eyeglasses, and various other items. Arteaga-Loayza, with Moronta’s assistance inside of the prison, took inmate requests for specific items of contraband and oversaw the collection of payments. Arteaga-Loayza also collected contraband for upcoming drone drops and stored it at his residence in Jersey City.
Arteaga-Loayza and his conspirators took various steps to prevent BOP officials from detecting and intercepting the contraband. They planned drone drops during the late evening hours or at night, when the drones were less likely to be seen. They flew the drones from concealed positions in the woods surrounding the prison. The lights on the drones were covered with tape to make it more difficult for prison officials to spot them.
Arteaga-Loayza and his conspirators used cell phones, including contraband phones concealed within the prison, to coordinate the drone drops. A contraband cell phone used by Moronta, who was an inmate at Fort Dix, contained text messages with Arteaga-Loayza about the collection of profits from the sale of the contraband inside of the prison. In one exchange, for instance, Moronta messaged Arteaga-Loayza about an inmate, “Ok so I am tell him 10 phones and 100 baco (tobacco) he has to pay 10 bands and 500 on each phone?” Arteaga-Loayza responded, “And well even give him an ounce of weed tell him.” One of Arteaga-Loayza’s cell phones contained messages between him and Goolcharran coordinating drone drops. For example, in April 2019, Arteaga-Loayza sent Goolcharran marked-up aerial photos of Fort Dix to show Goolcharran where to drop the contraband. In another exchange, Arteaga-Loayza sent Goolcharran a message asking, “U think that u cud do something 2m.” Goolcharran replied, “2m too windy 20mph.”
During a search of Arteaga-Loayza’s residence in June 2019, agents found packages of empty cell phone boxes, including a package with empty cell phone boxes that had been shipped to Arteaga-Loayza the day before a drone drop on Oct. 30, 2018, cell phone chargers, empty boxes of SIM cards, and several cell phones. They also found bags of Bugler tobacco, consistent with the Bugler tobacco recovered in earlier drone drops. Arteaga-Loayza also had a suitcase in his bedroom that contained his driver’s license, 20 packets of Suboxone Sublingual Film, a prescription opiate, and a plastic bag containing over 21 grams of a substance containing heroin and fentanyl. Following the search of his home, Arteaga-Loayza moved from his home and did not inform his probation officer of his whereabouts.
In addition to the prison term, Judge Wigenton also sentenced Arteaga-Loayza to three years of supervised release.
Acting U.S. Attorney Honig credited agents of the U.S. Department of Justice Office of the Inspector General, Cyber Investigations Office, under the direction of Special Agent in Charge Keith A. Bonanno; the U.S. Air Force Office of Special Investigations, Detachment 307, under the direction of Commander Nicholas Kaplan; and the U.S. Department of Transportation Office of Inspector General, Northeast Region, under the direction of Acting Special Agent in Charge Christopher Scharf, with the investigation leading to today’s sentencing.
She also thanked Federal Bureau of Prisons personnel at Fort Dix, under the direction of Warden Lamine N’Diaye; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas J. Mahoney; officers with the Pemberton Borough Police Department, under the direction of Chief Edward Hunter; officers of the Pemberton Township Police Department, under the direction of Chief David King; and officers of the Chesterfield Township Police Department, under the direction of Chief Kyle Wilson, for their assistance.
The government is represented by Assistant U.S. Attorneys Jeffrey J. Manis and Cari Fais of the U.S. Attorney’s Office in Newark.
The charges and allegations contained in the criminal complaints issued against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Union County Man Sentenced to Five Years in Prison for Receipt and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 60 months in prison for receipt and possession of images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Jeffrey Shreve, 38, of Scotch Plains, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with receiving and possessing images of child pornography. Judge Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Shreve used peer-to-peer file sharing software to seek and obtain images of child sexual abuse, including images of prepubescent children.
In addition to the prison term, Judge Martinotti sentenced Shreve to seven years of supervised release and ordered restitution of $6,000.
Acting U.S. Attorney Honig credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s sentencing.
The government is represented by Counsel to the U.S. Attorney Caroline Sadlowski of the U.S. Attorney’s Office in Newark.
Romanian National Sentenced to 54 Months in Prison for Role in ATM Skimming ConspiracyRead the Press Release
TRENTON, N.J. – A Romanian national was sentenced today to 54 months in prison for his role in a conspiracy to steal bank account information from thousands of customers by installing secret card-reading devices and pinhole cameras on ATMs throughout New Jersey and elsewhere, Acting U.S. Attorney Rachael A. Honig announced.
Dorinel Trofin, 47, previously pleaded guilty to conspiracy to commit bank fraud. U.S. District Judge Peter G. Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Trofin admitted he was part of an ATM skimming scheme that stole bank account information by installing hidden card-reading devices on ATMs throughout northern and central New Jersey. Trofin previously acknowledged that he and his conspirators created bank cards using the fraudulently obtained account information, which they used to unlawfully withdraw large amounts of cash from various ATMs. The scheme, which involved actual and attempted losses exceeding $1.5 million dollars, impacted over 1,000 bank customers.
In addition to the prison term, Judge Sheridan sentenced Trofin to five years of supervised release and ordered him to pay $443,277 in restitution.
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; detectives with the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; and detectives with the Woodbridge Police Department, under the direction of Police Director Robert Hubner, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Passaic County Convicted Felon Admits Illegal Possession of FirearmRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man with previous felony convictions today admitted illegally possessing a firearm and ammunition, Acting U.S. Attorney Rachael A. Honig announced.
Keyron Greene, 34, of Paterson, pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of possession of a firearm by a convicted felon.
According to documents filed in this case and statements made in court:
On Dec. 18, 2020, Paterson Police Department officers were patrolling the area of Broadway and Carroll Street when the officers observed Greene, who immediately began to flee upon observing the officers. Greene discarded a large capacity magazine containing 26 rounds of .40 caliber ammunition and a Glock 22 Generation .40 caliber semi-automatic handgun as he ran from the officers before being apprehended and arrested.
Greene has previously been convicted of felony offenses, including possession of controlled substances.
The firearms offense to which Greene pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Jan. 20, 2022.
Acting U.S. Attorney Honig credited special agents and task force officers with the ATF, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews 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 DEA, 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 Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark.
Naturalized U.S. Citizen from India Extradited to United States to Face ChargesRead the Press Release
CAMDEN, N.J. – A naturalized United States citizen living in India who was arrested in England made his initial court appearance and was arraigned today following his extradition to face charges that he obstructed the parental rights of his child’s mother by kidnapping the child and failing to return him to the United States when ordered to do so, Acting U.S. Attorney Rachael A. Honig announced.
Amitkumar Kanubhai Patel, 38, of Vadodara, India, formerly of Edison, New Jersey, was charged in an indictment that was unsealed today with one count of international parental kidnapping. A federal grand jury sitting in Camden returned the indictment on July 22, 2020. On Sept. 9, 2021, Patel was extradited from England. He appeared by videoconference before U.S. Magistrate Judge Karen M. William in Camden federal court and was detained.
According to documents filed in this case and statements made in court:
The child’s mother, a resident of Cherry Hill, New Jersey, and Patel were in a relationship and resided together in New Jersey from August 2015 through July 2017. They never married. In November 2016, they had a child.
According to the mother, Patel wanted to take the child to India to introduce him to Patel’s parents and obtain DNA testing. Patel claimed DNA testing was necessary for the child to claim property that Patel’s family owned in India. Patel attempted to obtain an Indian visa for the child when the child was approximately four months old. The visa application was denied because Patel did not have documentation of his custodial rights to the child.
Patel told the child’s mother that in order to obtain an Indian visa for the child, he would need to secure sole custody of their son, which required them to go to court. Patel instructed the child’s mother to tell the court that they had a “mutual understanding” regarding the custody of their child. He instructed the mother to state that she did not have a work permit, and since she was unemployed, and could not care for her child.
On May 1, 2017, Patel went to New Jersey Superior Court, Chancery Division Family Court, to obtain sole custody of the child. According to the child’s mother, the majority of the hearing was conducted in English with no translator. At the time of the hearing, the child’s mother spoke limited English. The mother answered the court’s questions as she had been instructed by Patel. She was not represented by an attorney during the hearing.
On May 2, 2017, the court entered an order granting Patel sole legal custody of the minor child and allowing the mother to file for joint legal custody in the future. Upon receiving the court order, Patel obtained visas to India for himself and the child through Quick Travel Inc. Patel told the child’s mother the trip to India would be for two weeks. On July 26, 2017, Patel and the child traveled to India.
According to the child’s mother, she sent multiple messages to Patel requesting confirmation that the two arrived safely in India and got no response for several days. Patel eventually called the mother and said he was never bringing the child back to the United States. The child’s mother obtained legal counsel, returned to the New Jersey Superior Court, and on Oct. 16, 2018, the court ordered Patel to immediately return the child to the United States. Records show Patel and the child have not returned to the United States since July 2017.
On Oct. 2, 2020, Patel and the child flew from India to the United Kingdom, where Patel was arrested.
The international parental kidnapping count carries a maximum penalty of three years in prison and a maximum fine of $250,000.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley S. Benavides in Philadelphia, with the investigation leading to the indictment. Acting U.S. Attorney Honig also thanked members of the Department of Justice’s Office of International Affairs, the U.K. Crown Prosecution Service and the Metropolitan Police for their assistance in the extradition.
The government is represented by Deputy U.S. Attorney Andrew Carey and Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Camden Man Sentenced to 30 Years in Prison for Drug Trafficking and Firearms ChargesRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 360 months in prison for conspiring to sell 280 grams or more of cocaine base, and quantities of furanyl fentanyl and heroin as well as distributing and possessing with intent to distribute these drugs, Acting U.S. Attorney Rachael A. Honig announced.
John Gunther, aka “Critty,” 38, was convicted on April 18, 2019, after an 11-day trial before U.S. District Judge Renée Marie Bumb in Camden federal court. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
Brothers John and Taleaf Gunther worked together to lead a prolific drug trafficking organization that sold crack cocaine, heroin, and the synthetic opioid furanyl fentanyl on and around the 1700 block of Filmore Street in Camden, which was controlled by the organization. William Roland assisted the Gunther brothers as a manager within the organization. Ten members of the drug ring were initially arrested in June 2017 following a long-term investigation by the FBI, which utilized multiple telephone wiretaps, surveillance, confidential informants, cooperating witnesses, more than 20 controlled drug purchases, a GPS vehicle tracker and four court-authorized search warrants, among other investigative techniques. The investigation ultimately led to the seizure of more than 300 grams of crack cocaine, quantities of furanyl fentanyl and heroin, a firearm, and drug paraphernalia. Shortly after the execution of search warrants in the case, investigators learned that Taleaf Gunther also attempted to bribe another member of the conspiracy to lie to police about a handgun recovered from a residence he used. An eleventh member of the organization was charged in 2018. Taleaf Gunther and Roland were convicted along with John Gunther and are awaiting sentencing.
In addition to the prison term, Judge Bumb sentenced Gunther to 10 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 Acting Special Agent in Charge Bradley S. Benavides 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; 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 Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Gloucester Township Police Department, the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alisa Shver of the U.S. Attorney’s Office Criminal Division in Camden.
Bergen County Man Sentenced to 15 Months in Prison for Role in Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 15 months in prison for his role in a scheme to defraud financial institutions of hundreds of thousands of dollars, Acting U.S. Attorney Rachael A. Honig announced.
Dennys Tapia, 55, of Ridgefield Park, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiracy to commit bank fraud. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2015 to 2018, Tapia conspired with others to fraudulently obtain mortgage loans from financial institutions, including “Mortgage Lender A” and “Mortgage Lender B,” to finance the purchase of properties by unqualified buyers. Applicants for mortgage loans are required to list their assets and income on their mortgage loan applications, and mortgage lenders rely on those applications when deciding whether to issue mortgage loans.
Tapia admitted participating in a conspiracy in which he knowingly provided fraudulent documents to a loan officer at Mortgage Lender A for potential borrowers, including fraudulent lease agreements, bank statements, and a gift check and gift letter. Based on this false information, Mortgage Lender A issued mortgage loans to unqualified buyers, which caused Mortgage Lender A hundreds of thousands of dollars in losses. Some of the loans Mortgage Lender A issued to unqualified borrowers were sold to the Federal Home Loan Mortgage Corporation “Freddie Mac,” a government-sponsored enterprise with the mission of providing liquidity, stability, and affordability in the United States housing market.
Tapia also admitted causing a straw borrower, “Individual A,” to apply to Mortgage Lender B for a cash-out refinance mortgage loan that contained multiple misrepresentations of material facts and fraudulent documents, including pay stubs and a verification of employment. Based on the false information submitted by Individual A and Tapia, Mortgage Lender B issued a false and fraudulent cash-out refinance mortgage loan, which resulted in Tapia earnings tens of thousands of dollars in profits.
In addition to the prison term, Judge Chesler sentenced Tapia to two years of supervised release and ordered restitution of $182,508 and forfeiture of $176,532.
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 the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the Economic Crimes Unit of the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Charlie Divine of the Federal Housing Finance Agency, Office of Inspector General.
Philadelphia Woman Admits $100 Million Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – An investment fund manager today admitted orchestrating a $100 million securities fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.
Brenda Smith, 61, of Philadelphia, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to Count Seven of an indictment charging her with securities fraud.
According to documents filed in this case and statements made in court:
Smith managed and controlled Broad Reach Capital LP, a pooled investment fund/hedge fund that was established in February 2016 and was open to accredited investors with a minimum investment of $1 million.
From February 2016 through August 2019, Smith orchestrated a scheme in which she made misrepresentations to investors and promised that she would invest their funds in particular trading strategies that Broad Reach Capital was allegedly optimally situated to execute. Smith referred to these strategies as dividend capture, VIX Convergence, and opportunistic trading.
Smith misrepresented the success and performance of Broad Reach Capital to investors and prospective investors. She touted Broad Reach Capital as a trade-focused investment fund that was highly liquid and employed a robust risk management program. Smith distributed written materials about Broad Reach Capital to investors and prospective investors that included purported historical performance information, such as claimed annual returns of over 33 percent in 2017 and positive monthly returns in 2018. In fact, the total cash and securities in the Broad Reach Capital bank and brokerage accounts decreased from approximately December 2016 through June 2019. For example, the written materials claimed that Broad Reach Capital had a 1.76 percent return in February 2018 when in reality, Broad Reach Capital’s brokerage accounts lost approximately 50 percent of their value.
To lull investors and induce them to continue investing, Smith provided monthly account statements to investors that falsely showed that their investments were safe and earning significant returns. Smith also falsely represented that she was personally invested in Broad Reach Capital and provided a fictitious account statement to at least one investor.
Over the course of the scheme, Smith collected more than $100 million of cash into Broad Reach Capital from approximately 40 investors. At its peak, however, the value of cash and securities in the Broad Reach Capital bank and brokerage accounts did not exceed approximately $32 million. Instead of investing the money as she promised, Smith transferred tens of millions of dollars out of Broad Reach Capital to entities she controlled for purposes inconsistent with the trading strategies, including more than approximately $10 million for mineral mining operations and approximately $2 million for American Express credit card bills. When investors requested redemption of their investments, Smith diverted other investors’ funds to pay the requested redemption amounts.
The securities fraud count to which Smith pleaded guilty carries a maximum penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Jan. 20, 2022.
The U.S. Securities and Exchange Commission (SEC) Philadelphia Regional Office previously filed a civil complaint against Smith based on the same conduct.
Acting U.S. Attorney Honig credited special agents of the FBI Philadelphia Division, under the direction of Acting Special Agent in Charge Bradley S. Benavides, and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s sentencing. She also thanked the U.S. Securities and Exchange Commission’s Philadelphia Regional Office, under the direction of Co-Acting Regional Directors Scott Thompson and Joy G. Thompson, for its assistance.
The government is represented by Catherine R. Murphy, Chief of the Economic Crimes Unit of the U.S. Attorney’s Office.
New Jersey Men Admit to Drug Distribution ChargesRead the Press Release
NEWARK, N.J. – Two New Jersey men admitted to drug distribution charges in connection conspiring to distribute cocaine base and distributing fentanyl and cocaine base, Acting U.S. Attorney Rachael A. Honig announced today.
Tyrell Wilson, aka “Hell Rell,” 36, of Rahway, New Jersey, pleaded guilty today before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to distribute 280 grams or more of cocaine base and one count of possession with intent to distribute 280 grams or more of cocaine base.
Marvin Lagrier, aka “Black Jesus,” 39, of Newark, pleaded guilty before Judge Arleo on Aug. 12, 2021, to a superseding information charging him with one count of possession with intent to distribute 40 grams or more of fentanyl. Lagrier was a Newark Housing Authority employee at the time of his arrest.
In September 2019, Lagrier and Wilson were charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine and possession with the intent to distribute heroin and cocaine base. Wilson was also charged with possession of a firearm by a convicted felon. Lagrier was indicted on these charges in October 2019.
According to documents filed in this case and statements made in court:
On Sept. 19, 2019, law enforcement officers approached an apartment in Essex County, New Jersey, to execute a court-authorized search warrant. Wilson and Lagrier exited the apartment and attempted to flee the area but were apprehended and placed under arrest. Upon searching the apartment, as well as Wilson’s vehicle and a backpack that Wilson discarded while fleeing, law enforcement officers recovered a large amount of cocaine base, heroin, and fentanyl as well as many items of drug paraphernalia for packaging narcotics. Law enforcement officers also recovered a firearm and several rounds of ammunition as well as several cellular phones. They also recovered several brown Newark Housing Authority uniforms bearing the name tag, “Marvin,” which matched the uniform that Lagrier wore at the time of his arrest.
The cocaine base conspiracy count to which Wilson pleaded guilty carries a statutory mandatory minimum term of imprisonment of 10 years, a maximum potential penalty of life in prison, and a maximum fine of $10 million. The fentanyl possession count to which Lagrier pleaded guilty carries a statutory mandatory minimum term of imprisonment of five years, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. Sentencing is scheduled for Dec. 16, 2021 for Lagrier and for Jan. 13, 2021, for Wilson.
Acting U.S. Attorney Honig credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to the guilty pleas.
This case is part of the Violent Crime Initiative (VCI), which was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, the Orange Police Department and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Tracey Agnew and Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office Organized Crime/Gang Unit in Newark.
Essex County Man Admits Role in Car Theft SchemeRead the Press Release
NEWARK, N.J. – A New Jersey man today admitted his role in a multi-state car theft and fraud ring, Acting U.S. Attorney Rachael A. Honig announced.
Eric Morgan, 34, of Belleville, New Jersey, pleaded guilty today before U.S. District Judge William J. Martini in Newark federal court to an information charging him with three counts of wire fraud.
According to the documents filed in this case and statements made in court:
From November 2016 to March 2019, Morgan engaged in a scheme to sell stolen vehicles through internet-based marketplaces, such as Craigslist and OfferUp. For each fraudulent transaction, once a desirable vehicle was selected, the target vehicle was photographed, and a GPS tracker was attached to the vehicle in order to acquire a pattern-of-life of the original owner before the targeted vehicle was stolen. The target vehicle was then listed for sale on an internet-based marketplace. Potential purchasers of the target vehicles responded to listings and scheduled in-person meetings to purchase the vehicles. Shortly before the scheduled meeting times, the targeted vehicles were stolen with specially made car keys and fraudulently sold to unwittingly purchasers. On three occasions, Morgan, while posing as the lawful owner of a stolen vehicle, met the purchasers and sold them the stolen car while also providing them with a fraudulent motor vehicle registration and the specially made car key.
Morgan pleaded guilty to his participation in the sale of a 2010 Acura TSX through Craigslist on July 19, 2017, the sale of a 2015 Honda Accord through OfferUp on Nov. 23, 2018, and the sale of a 2016 Honda Accord through Craigslist on March 22, 2019.
The scheme to defraud involves more than 30 stolen vehicles, of which 29 were sold to unwitting buyers.
The wire fraud counts that Morgan pleaded guilty to each carry a statutory maximum sentence of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Jan. 13, 2022.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
Doctor Admits Stealing more than $500,000 from Former EmployerRead the Press Release
CAMDEN, N.J. – A doctor today admitted defrauding his prior employer’s medical practice by stealing and forging the medical practice’s checks to pay personal expenses, Acting U.S. Attorney Rachael A. Honig announced.
Walter Sytnik, 35, of Voorhees, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of mail fraud.
According to documents filed in this case and statements made in court:
Before attending medical school, Sytnik worked for a medical practice in southern New Jersey as a bookkeeper. While employed by the practice, Sytnik stole some of its checks and, from May 2013 through April 2018, used them to steal more than $500,000 from the practice. He opened and maintained credit card accounts at the same banks as used by the doctor at the medical practice, and forged the doctor’s signature on the stolen checks, which he sent through the U.S. Mail to pay his own credit card bills. When Sytnik ran out of checks, he reordered new ones so that he could continue the fraud.
The mail fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense, whichever is greatest. In his plea agreement, Sytnik agreed to make restitution for the full amount of the loss, which, after the recoupment of some of the stolen monies, is estimated at $416,000. Sentencing is scheduled for Jan. 10, 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 Bradley S. Benavides in Philadelphia, with assistance from the Voorhees Township Police Department, under the direction of Chief Louis Bordi, 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.
Home Health Agency Operator to Pay $17 Million to Resolve False Claims Act Kickback AllegationsRead the Press Release
NEWARK, N.J. – A home health agency (HHA) operator has agreed to pay $17 million to resolve allegations that it violated the False Claims Act by paying kickbacks through the purchase of two HHAs from a retirement home operator in Arizona, Acting U.S. Attorney Rachael A. Honig and Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division announced today.
Today’s settlement resolves allegations that BAYADA, BAYADA Home Health Care Inc., BAYADA Health LLC, and BAYADA Home Care (collectively, the BAYADA Companies), with headquarters in Moorestown, New Jersey, bought two HHAs to induce referrals to BAYADA of Medicare beneficiaries from other retirement communities operated by the seller throughout the United States. The government alleges that from Jan. 1, 2014, through Oct. 31, 2020, the BAYADA Companies submitted false claims for payment to Medicare for services provided to beneficiaries referred to BAYADA as a result of the kickback transaction.
“When healthcare providers make or induce referrals that are based on kickback arrangements rather than the best interests of patients, they risk patient harm, threaten the integrity of federal healthcare programs, and violate federal law,” Acting U.S. Attorney Honig said. “The U.S. Attorney’s Office for the District of New Jersey and our partners in the Department of Justice and at HHS-OIG will continue to pursue those who, like BAYADA, offer kickbacks for patient referrals, no matter the disguise those kickback arrangements might wear.”
“Parties who pay or receive kickbacks in order to induce referrals undermine the integrity of the health care system,” Acting Assistant Attorney General Boynton said. “This resolution reflects the department’s commitment to protect the right of federal health care program beneficiaries to receive medical care that is not influenced by the financial interests of their health care providers.”
The Anti-Kickback Statute prohibits parties who participate in federal health care programs from knowingly and willfully offering, paying or receiving any remuneration in order to induce the recommendation of any item for which payment is made in whole or in part under a covered federal health care program. The prohibition extends to asset purchases that are intended to induce referrals.
The civil settlement includes the resolution of claims brought under the qui tam, or “whistleblower” provisions, of the False Claims Act by David Freedman, who was the former director of strategic growth for BAYADA between 2009 and 2016. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of today’s resolution, Mr. Freedman will receive more than $3 million. The matter remains under seal as to allegations against entities other than the BAYADA Companies.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The government is represented by Assistant U.S. Attorney Daniel Meyler of the Health Care Fraud Unit in the District of New Jersey and Trial Attorney Samson Asiyanbi of the Civil Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
The qui tam case is captioned: United States ex rel. Freedman v. BAYADA Home Health Care, Inc., No. 17-cv-6267 (NLH) (D.N.J.).