District of New Jersey
Press releases recorded for this federal judicial district.
Union County Man Admits Conspiring to Commit Bank Fraud Using Checks Stolen from MailRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man admitted today to conspiring to commit bank fraud by soliciting U.S. Postal Service (USPS) employees to steal check books from the mail and depositing fraudulent checks, Acting U.S. Attorney Rachael A. Honig announced.
Brian Previlon, 28, of Elizabeth, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Beginning in summer 2019 through Oct. 22, 2019, Previlon conspired to fraudulently obtain money from victim financial institutions by, among other things, depositing checks stolen from the mail into accounts at victim financial institutions and withdrawing funds from those accounts before the victim financial institutions identified the fraudulent checks and blocked further withdrawals. Previlon and his co-conspirators arranged for USPS employees to steal blank check books from the mail in exchange for cash payments. USPS employees provided the checks to Previlon and his co-conspirators, who fraudulently forged the signatures of the accountholders and negotiated the checks by making them payable to individuals. Previlon and his co-conspirators obtained and attempted to obtain approximately $38,364 from victim financial institutions.
The conspiracy charge to which Previlon pleaded guilty is punishable by a maximum potential penalty of 30 years in prison and a fine of up to $1 million. Sentencing is scheduled for Dec. 3, 2021.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins, 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 plea. 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.
Defense counsel: Georgina Giordano Pallitto Esq., Newark
Mercer County Man Admits Interfering with Law Enforcement Officers During Civil DisorderRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man today admitted attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a riot in the City of Trenton, Acting U.S. Attorney Rachael A. Honig announced.
Earlja J. Dudley, 28, of Trenton, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce.
According to documents filed in this case and statements made in court:
On May 31, 2020, large-scale protests were held throughout the United States, including in Trenton, in response to the death of George Floyd. Although the May 31st protest in Trenton was peaceful earlier in the day, violence erupted later. A group of individuals proceeded down East State Street in downtown Trenton and began to riot, smashing store fronts, looting stores, and attacking multiple marked Trenton Police Department vehicles parked on the 100 Block of East State Street.
A City of Trenton street camera and other video footage taken by an individual present on the street captured Earlja Dudley and an unidentified male open the hood of a police vehicle. Dudley was then joined by another unidentified male who ignited an object that Dudley was holding. Dudley then placed the flaming object into the engine well of the police vehicle attempting to set the police vehicle on fire. Law enforcement later identified Dockery through analysis of street camera and other video footage and he was arrested on Aug. 5, 2020.
Dudley pleaded guilty to one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce, on May 19, 2021.
The charge of attempting to interfere with law enforcement officers during a civil disorder to which Dudley has now pleaded guilty pleaded guilty carries a maximum penalty of five years in prison and a maximum fine of $250,000.
Dudley is the fourth of four individuals charged in connection with the May 31, 2020 protest in Trenton, New Jersey to have entered a guilty plea. Defendant Killian F Melecio was sentenced in June of 2021 to a term of 28 months imprisonment and three years supervised release, by U.S. District Judge Brian R. Martinotti. Defendants Kadeem A. Dockery and Justin D. Spry and are scheduled to be sentenced in September and October, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI and task force officers of the Joint Terrorism Task Force in Newark, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked officers of the Trenton Police Department, under the direction of Police Director Steve E. Wilson; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and officers of the New Jersey Department of Corrections, under the direction of Commissioner Marcus O. Hicks, for their assistance.
The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Defense counsel: Lisa Van Hoeck., Trenton, New Jersey
Previously Convicted Felon Charged with Illegal Possession of HandgunRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was arrested yesterday on charges of illegally possessing a handgun, Acting U.S. Attorney Rachael A. Honig announced.
Lamont Nelson, 26, of Newark, New Jersey is charged by complaint with one count of illegal possession of a firearm by a convicted felon. He is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge André Espinosa.
According to documents filed in this case and statements made in court:
On or about October 8, 2020, detectives from the Newark Police Department encountered Nelson on the sidewalk as he appeared nervous and touched a black bag on his shoulder. Law enforcement observed the handle of a firearm inside of the bag. Law enforcement recovered a Colt model Pocket Positive .32 Caliber 6-shot revolver, bearing serial number 81259, loaded with six (6) rounds of .32 caliber ammunition from the bag. Nelson is a convicted felon and not permitted to possess a handgun under federal law.
The maximum penalty for illegal possession of the firearm is 10 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, Newark Field Division, under the direction of Acting Special Agent in Charge Toby C. Taylor; and detectives of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Alexandra Tsakopoulos Saker and Edeli Rivera of the U.S. Attorney’s Office’s OCDETF Unit.The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense Counsel: Laura Sayler, Assistance Federal Public Defender, Newark
National Leader of Outlaw Motorcycle Gang Admits Illegally Possessing A FirearmRead the Press Release
NEWARK, N.J. – A Suffolk County, New York admitted today to illegally possessing a firearm, Acting U.S. Attorney Rachael A. Honig announced.
Keith Richter, a/k/a “Conan,” 62, of Bay Shore, New York, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty 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:
Richter is the national president of the Pagan’s Motorcycle Club (the “Pagans”)—an outlaw motorcycle gang known by law enforcement to engage in illegal activity including narcotics trafficking, weapons trafficking, and violent crimes.
On or about February 20, 2021, the Pagans hosted a party in Lancaster, Pennsylvania. While Richter was traveling from the party to his home in Suffolk County, New York, law enforcement pulled the vehicle over in Mercer County, New Jersey. Law enforcement recovered a loaded Ruger P345 .45 caliber handgun from a front-seat compartment in the vehicle. As a result, law enforcement obtained a warrant for Richter’s arrest, which was executed on February 26, 2021.
Richter was previously convicted of felony offenses, including conspiracy to commit murder and aggravated assault in aid of racketeering, for which he served a sixteen-year term of imprisonment.
The offense to which Richter pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Dec. 3. 2021.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Toby C. Taylor; special agents of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; the Suffolk County District Attorney’s Office, under the direction of District Attorney Timothy D. Sini; the Union County Prosecutor’s Office, under the direction of William A. Daniel; and the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, with the investigation leading to today’s guilty plea.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities.
The government is represented by Assistant U.S. Attorneys Robert Frazer, R. Joseph Gribko, and Samantha C. Fasanello, of the U.S. Attorney’s Office in Newark.
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Defense counsel: James R. Froccaro, Jr., Esq., Port Washington, New York
Essex County Man Sentenced to Two Years in Prison for Role in Conspiracy to Defraud Banks of $250,000 Using Credit Cards and Stolen ChecksRead the Press Release
NEWARK, N.J. – Dashawn Duncan, 27, of South Orange, New Jersey, was sentenced today to 24 months in prison for his role in conspiring to defraud two banks of $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced.
Duncan, and coconspirators Nasheed Jackson, 24, of Newark, and Alexander Varice, 22, of South Orange, previously pleaded guilty by video before U.S. District Judge Susan D. Wigenton to Informations charging each of them with one count of conspiracy to commit bank fraud. Judge Wigenton imposed Duncan’s sentence today via video conference. Jackson was sentenced to 2 years on July 22, 2021, and Varice is scheduled to be sentenced on Sept. 7, 2021.
According to documents filed in this case and statements made in court:
From August 2018 through January 2020, Varice, Jackson, and Duncan engaged in a scheme to use stolen credit cards or checks to fraudulently make purchases and withdraw money from two banks. The credit cards were stolen from facilities used by the U.S. Postal Service in Pine Brook and Warren, New Jersey, and never reached the intended cardholders. After obtaining the stolen cards, Varice, Jackson, and Duncan used them to make unauthorized purchases at various retail stores and to 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. Varice and Jackson altered the date, payee, and amount of the stolen checks prior to deposit into a third-party account so that they could manually enter the amounts that they wanted to fraudulently withdraw from a victim bank ATM.
In addition to the prison term, Judge Wigenton sentence Duncan to five years of supervised release.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins 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.
Defense counsel:
Jackson: Henry Klingeman Esq., Newark
Varice: Charles Alvarez Esq., Bloomfield, New Jersey
Duncan: K. Anthony Thomas Esq., Assistant Federal Public Defender, NewarkConnecticut Woman Admits to Engaging in Conspiracy to Defraud Former EmployersRead the Press Release
NEWARK, N.J. – A Connecticut woman today admitted to engaging in a conspiracy to divert over $546,000 in customer payments owed to her former employers for personal use, Acting U.S. Attorney Rachael A. Honig announced.
Melissa Corso, 50, of Groton, Connecticut, pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging her with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
From February 2013 through September 2018, Corso conspired and agreed with a former co-worker, Joseph Spaccavento, to divert customer payments owed to their former employers, the Victim Company and the Predecessor Victim Company (collectively, the “Victim Companies”), for their own personal use and benefit. Corso instructed certain customers of the Victim Companies to submit their payments to a PayPal account, registered in Spaccavento’s name and associated with Corso’s work email address, over which Corso exercised control (the “Scheme Account”). In reality, the Scheme Account was not authorized by the Victim Companies to receive these payments.
Corso and Spaccavento caused withdrawals to be made from the Scheme Account and diverted the funds to the personal PayPal accounts of Corso, Spaccavento, and others. Corso and Spaccavento also caused transfers of funds to be made from the Scheme Account to various commercial retailers to pay for personal expenses. Purchases from these commercial retailers were shipped to the home and work addresses of Corso, Spaccavento, and others. By fraudulently diverting funds for their personal gain, Corso caused the Victim Companies losses of approximately $516,857 over the course of the conspiracy. In addition, Corso continued to divert the funds of the Victim Company after Spaccavento left the Victim Company in or about September 2018, causing additional losses to the Victim Company in the amount of approximately $29,735.
Corso was previously arrested on February 5, 2021 and charged by criminal complaint with two counts of wire fraud. Spaccavento previously pleaded guilty to a one-count Information charging him with conspiracy to commit wire fraud on May 3, 2021 and is currently awaiting sentencing.
The conspiracy to commit wire fraud count is punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. Sentencing is scheduled for December 8, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: John Yauch, Esq., Newark, New Jersey
Newark Man Admits to Firearms and Narcotics OffensesRead the Press Release
NEWARK, N.J. – A Newark man, previously convicted of multiple felonies, admitted today to being a felon in possession of a firearm, possessing narcotics with intent to distribute, and possessing the firearm in furtherance of narcotics trafficking, Acting U.S. Attorney Rachael A. Honig announced.
Lamont West, 42, pleaded guilty before U.S. District Judge Katharine S. Hayden to an Indictment charging him with one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute heroin and fentanyl, and one count of using the firearm in furtherance of the narcotics trafficking.
According to documents filed in this case and the statements made in court:
On October 17, 2016, officers of the Newark Police Department received a tip that West, who was wanted by the police in connection with an unrelated alleged shooting, was hiding out at a hotel in Harrison, New Jersey. The officers placed West under arrest outside of the hotel and obtained a search warrant for the room in which he was staying. Inside the room, the officers found a loaded .45 caliber semiautomatic pistol, two extra magazines containing additional ammunition, approximately 730 glassine envelopes of heroin mixed with fentanyl, digital scales and other drug paraphernalia, and multiple forms of identification and clothing belonging to West. West has multiple prior state convictions for, among other things, narcotics trafficking.
The offense of being a felon in possession of a firearm charged in Count One of the Indictment is punishable by a maximum of 10 years in prison and a fine of up to $250,000. The offense of possession of heroin and fentanyl with intent to distributed charged in Count Two of the Indictment is punishable by a maximum of 20 years in prison and a fine of up to $1 million. The offense of possessing a firearm in furtherance of the narcotics trafficking offense charged in Count Three of the Indictment carries a mandatory minimum prison term of 5 years and a maximum of life in prison, and a fine of up to $250,000. The sentence imposed on Count Three must run consecutively to any other term of imprisonment imposed on the other two counts. Sentencing is scheduled for Dec. 9, 2021.
Acting U.S. Attorney Rachael A. Honig credited law enforcement officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge George M. Crouch, Jr. with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Sammi Malek and Bruce Keller of the Criminal Division of the U.S. Attorney’s Office in Newark.
Defense counsel: John Azzarello, Esq. and William Munoz, Esq., Whipple Azzarello, LLC, Morristown, NJ
Former NJDCP&P Employee Sentenced to 250 Months in Prison for Production of Child PornographyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man who was previously employed by the New Jersey Department of Child Protection and Permanency (NJDCP&P) was sentenced today to 250 months in prison for producing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Kayan Frazier, 29, previously pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to one count of producing images of child pornography. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
After receiving a report of images of child sexual abuse distributed via Tumblr, law enforcement officers identified Frazier, who was then employed as a case worker at NJDCP&P as the sender. On April 12, 2019, the Atlantic County Prosecutor’s Office obtained a search warrant for Frazier’s residence and, while executing the warrant, observed Frazier in the company of an underage boy. Law enforcement officers recovered thousands of additional images of child sexual abuse on Frazier’s cellular telephone and other electronic media, which included images of the boy taken in Frazier’s apartment. Frazier admitted that he took the images with a cellular telephone.
In addition to the prison term, Judge Rodriguez sentenced Frazier to a lifetime term of supervised release. Restitution will be determined at a later date.
Acting U.S. Attorney Honig credited special agents of the FBI Atlantic City Resident Agency Human Trafficking Crimes Against Children Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Cary Shill; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; the New Jersey State Police, under the direction of Col. Patrick J. Callahan, and the New Jersey Human Services Police, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office’s Camden office.
Defense counsel: Lisa Evans Lewis Esq., Assistant Federal Public Defender, Camden
Newark Man Sentenced to 78 Months in Prison for Carjacking Uber DriverRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 78 months in prison for his role in a carjacking in which a firearm was brandished, Acting U.S. Attorney Rachael Honig announced today.
Raquin Tanner, 25, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to one count of aiding and abetting the carjacking. Judge Arleo imposed the sentence today in Newark federal court. His co-defendant, Rakeem McNair, 21, of Roselle, New Jersey, also previously pleaded guilty to an information charging him with one count each of carjacking and brandishing a firearm in furtherance of the carjacking and is scheduled to be sentenced in November 2021.
According to documents filed in this case and statements made in court:
On Aug. 13, 2019, the victim parked her car, which she used for her work as an Uber driver, on Summer Avenue in Newark. At approximately 11:00 p.m., the victim was sitting in the driver’s seat when three males approached her car.
Video surveillance from the scene showed that Tanner walked with the other two males around the corner. As they neared the victim’s car, Tanner spoke to the other two, then went ahead of them, looked into the passenger seat of the car, and upon seeing the lone female driver, signaled the other two males to begin the carjacking.
One of the other males pointed a firearm through the driver’s side window, opened the door and attempted to physically remove the victim from the car. A struggle ensued, and McNair went around the car to aid his conspirator in dragging the victim from the car. McNair and the unidentified male threw the victim violently to the ground and drove away with the vehicle.
In addition to the prison term, Judge Arleo sentenced Tanner to three years of supervised release.
Acting U.S. Attorney Honig credited the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Robert Frazer of the Organized Crime and Gangs Unit in Newark.
Defense counsel:
Tanner: Joseph R. Rubino Esq., Union, New Jersey
McNair: Lisa Mack Esq., Assistant Federal Public Defender, Newark
Burlington County Man Charged with Drug and Weapons OffensesRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man is expected to make his initial appearance today after being charged with trafficking over three kilograms of methamphetamine and illegally possessing unregistered firearms as a previously convicted felon, Acting U.S. Attorney Rachael A. Honig announced.
Nicholas Layton, 41, of Mount Holly, New Jersey, is charged by complaint with one count of conspiracy to distribute 50 grams or more of methamphetamine, one count of possession with intent to distribute 50 grams or more methamphetamine, three counts of unlawful possession of unregistered firearms and one count of possession of firearms by a convicted felon. He is scheduled to appear today before U.S. Magistrate Judge Douglas E. Arpert.
According to documents filed in this case and statements made in Court:
In December 2018, Layton and an unnamed conspirator were driving separate vehicles from Arizona back to New Jersey. Both vehicles were the subject of a motor vehicle stop in Crawford County, Arkansas. Subsequent investigation revealed that the conspirator’s vehicle contained four wrapped bundles of suspected narcotics, later confirmed to be approximately three kilograms of methamphetamine. According to receipts located in both vehicles, Layton rented both cars and the cars traveled together through multiple states before being stopped in Arkansas. Both Layton and his conspirator were charged by the State of Arkansas in connection with the methamphetamine; Layton was released by authorities.
In May and June of 2019, Layton sold methamphetamine on three separate occasions to confidential informants under the surveillance of law enforcement in Pemberton and Mount Holly, New Jersey.
On July 17, 2019, law enforcement executed a search warrant at Layton’s residence in Mount Holly where they located:
1) a black “AR” style, 5.56 x 45mm semi-automatic rifle, having no visible serial number, which law enforcement later determined was a Privately Made Firearm (“PMF”);
2) a 9mm semi-automatic rifle, having no visible serial number, which law enforcement later determined was a PMF;
3) a firearm silencer, having no visible serial number, which law enforcement later determined was a PMF; and
4) eight “M-Class” explosive devices
On July 17, 2019, law enforcement executed a search warrant at another residence associated with Layton in Southampton, New Jersey, where they located:
5) a Norcino, SKS type, 762 caliber, semi-automatic rifle (the “Norcino”), bearing serial number 244931DUP;6) a 12-gauge caliber Browning shotgun (the “Browning”), bearing serial number 13324 S69; and
7) nine “M-Class” explosive devices
Layton was not found at either location during the execution of the search warrants. On or about Aug. 4, 2019, Layton was found at a residence in Marlton, New Jersey. At the time of his arrest, Layton was found in possession of approximately 200 grams of methamphetamine and an additional explosive device.
The conspiracy and the possession with intent to distribute methamphetamine counts are punishable by a mandatory minimum of 10 years in prison, a maximum of life in prison and a fine of $10 million; the possession of an unregistered firearm is punishable by a maximum of 10 years in prison and a fine of $10,000; and the charge of being a felon in possession of a firearm is punishable by a maximum of 10 years in prison and fine of $250,000.Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration (DEA), Camden Resident Office, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the DEA Fort Smith Post of Duty under the supervision of Special Agent in Charge Brad Byerley, Arkansas; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Toby C, Taylor, Newark Field Division; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina; and officers of the Arkansas State Police, under the direction of Chief William J. Bryant, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Michelle S. Gasparian of the Criminal Division in Trenton
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Brian P. Reilly, Assistant Federal Public Defender, Trenton
Trenton Woman Admits Distributing Fentanyl that Caused Death of Monmouth County WomanRead the Press Release
NEWARK, N.J. – A Trenton, New Jersey woman today admitted distributing fentanyl that caused the death of a Monmouth county woman, Acting U.S. Attorney Rachael A. Honig announced.
Tarashanna Blake, 33, pleaded guilty before U.S. District Judge Kevin McNulty to an information charging her with one count of distribution and possession with intent to distribute fentanyl relating to the overdose death of a Monmouth County woman.
According to the documents filed in this case and statements made in court:
On May 15, 2018, a 39-year old woman from Englishtown, referred to in court as Victim-1, texted Blake seeking to buy heroin. Blake and Victim-1 discussed the “stamp” or “brand” of heroin Blake was selling and the purchase price. They agreed to meet at a location around Englishtown to complete the sale. Blake obtained the “CAMEL”-stamped heroin and traveled to the agreed upon location and sold to Victim-1 a controlled substance packaged like heroin, which was later determined to be fentanyl. That afternoon, Englishtown police responded to a location in Englishtown on a report of an overdose death of a female. Upon their arrival, Englishtown police discovered Victim-1, and in Victim-1’s possession were several wax folds of suspected heroin stamped “CAMEL” and empty wax folds stamped “CAMEL.” Laboratory analysis of these wax folds bearing the “CAMEL” stamp determined the substance to be fentanyl, a much more potent narcotic than heroin. An autopsy of Victim-1 found her cause of death to be acute fentanyl toxicity.
For distributing and possessing fentanyl, Blake faces a maximum penalty of 20 years in prison and a $1 million fine, and, because the offense resulted in death, she is subject to significant sentencing enhancements. Sentencing is scheduled for Dec. 3, 2021.
Acting U.S. Attorney Rachael A. Honig credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; detectives from the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Lori Linskey; the Englishtown Police Department, under the direction of Peter S. Cooke Jr.; and Trenton Police Department’s Narcotics Task Force, under the direction of Acting Police Director Steve Wilson, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ryan L. O’Neill, of the Office’s Health Care Fraud Unit.
One Officer, Two Sergeants, and a Lieutenant Charged in Connection with Assault of a Federal Pretrial DetaineeRead the Press Release
NEWARK, N.J. – One Essex County correctional officer, two sergeants, and one lieutenant were indicted for civil rights violations in connection with the assault of a federal pretrial detainee, Acting U.S. Attorney Rachael A. Honig announced today.
Officer Damion James, 41, was charged with assaulting the pretrial detainee in violation of his civil rights. Sgt. Herman Pride, 51, Sgt. Jennifer Whitley, 38, and Lt. Nicholas Palma, 46, were charged with failing to intervene to stop the assault. Sgt. Whitley was additionally charged with submitting a false report to cover up the assault. All four defendants will be arraigned on a date to be determined.
According to documents filed in this case:
On the evening of Aug. 17, 2020, a federal pretrial detainee at Essex County Correctional Facility (ECCF) squirted a mixture of urine, yogurt, and milk onto a correctional officer. The detainee subsequently was transported to a disciplinary cell, where James assaulted the detainee, striking him multiple times in the body and face. Pride, Whitley, and Palma watched the assault, but none of them intervened to stop it.
Two days after the assault, the detainee was taken to the emergency room at University Hospital in Newark. He was diagnosed with large swelling and tenderness in the right side of his face and discoloration and bruising around his right eye.
The defendants all were required to submit documentation regarding their use of force. None of them submitted any such reports. Instead, Whitley submitted a report falsely indicating that no force had been used, when, in fact, Whitley, Pride, and Palma had watched James repeatedly assault the pretrial detainee. Officer Angel Chaparro previously pleaded guilty to his role in the submission of the false report.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and the Essex County Correctional Facility Internal Affairs Bureau, under the direction of Director Alfaro Ortiz and the Office of the Warden, with the investigation leading to the charges.
The government is represented by Acting Principal Assistant U.S. Attorney Rahul Agarwal.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Leader of Drug Trafficking Organization ArrestedRead the Press Release
CAMDEN, N.J. – A leader of a drug trafficking organization operating in southern New Jersey and Philadelphia, Pennsylvania, was arrested after previously being charged for his role in a drug distribution conspiracy, Acting U.S. Attorney Rachael A. Honig announced today.
Glen Long, aka “Bless,” 27, of Philadelphia, made his initial appearance before U.S. Magistrate Judge Karen M. Williams in Camden federal court later today. Long was charged in March 2021 with one count of conspiring to distribute crystal methamphetamine and heroin.
According to documents filed in this case and statements made in court:
Using undercover agents, consensual recordings, controlled drug purchases, electronic surveillance, search warrants, and several court-authorized wiretaps, DEA special agents and task force officers conducted a months-long investigation of a drug trafficking organization led by Long. Long oversaw the organization and directed his conspirators to distribute large quantities of various types of drugs to others.
Thirteen other people have been charged via criminal complaints for their roles in this drug distribution conspiracy. Each defendant, including Long, faces one count of conspiracy that is punishable by a mandatory minimum of 10 years in prison and a maximum of life in prison and a $10 million fine.
Long also faces separate drug charges in an indictment pending in the Eastern District of Pennsylvania for which he was has been ordered detained pending trial.
Acting U.S. Attorney Honig credited special agents with the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to the charges against Long and his conspirators. She also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania; Drug Enforcement Administration, Philadelphia Division; U.S. Department of Homeland Security – Homeland Security Investigations; U.S. Marshals Service; FBI; Bensalem Police Department; Berlin Borough Police Department; Berlin Township Police Department; Bucks County District Attorney’s Office; Camden County Prosecutor’s Office; Clayton Police Department; Delaware County District Attorney’s Office Narcotics Task Force; Deptford Township Police Department; Gloucester County Prosecutor’s Office; Gloucester Township Police Department; New Jersey State Police; New Jersey National Guard Counter Drug Task Force; Pennsylvania State Police; Pennsville Police Department; and Winslow Township Police Department for their assistance.This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the complaints and indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Pharmaceutical Sales Representative Indicted in Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – A former pharmaceutical sales representative was charged today for his role in a scheme to defraud a telecommunications company’s health care plan by billing for medically unnecessary compounded prescriptions, Acting U.S. Attorney Rachael A. Honig announced.
Carmine A. Mattia Jr. 60, of Cedar Grove, New Jersey, was indicted on one count of conspiracy to commit health care fraud and three counts of health care fraud. He will have his initial appearance on a date to be determined.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription.
The scheme centered on Mattia’s work as a sales representative for a marketing company and various compounding pharmacies, for which he sold compounded medications, including pain creams, scar creams, wound creams, and metabolic supplements/vitamins. Mattia was also a full-time employee of the telecommunications company and was a union representative for the company’s employees.
Between April 2016 and July 2016, Mattia participated in a conspiracy to submit fraudulent prescriptions for compounded medications to the telecommunications company’s health care plan. The compounding pharmacies paid Mattia a commission in exchange for each prescription for compounded medication Mattia caused to be billed to the company’s health care plan.
To fraudulently increase his profits as a sales representative, Mattia recruited Individual-1 to receive medically unnecessary compounded medications. Mattia paid Individual-1 to induce Individual-1 to receive these medications. Mattia also secured the signature of a New Jersey doctor, Robert Agresti, on prescription forms for Individual-1. Agresti and Individual-1 did not have a doctor/patient relationship, Agresti did not determine if Individual-1 needed the compounded medications selected, and he did not examine Individual-1. Agresti pleaded guilty on June 26, 2018, to conspiracy to commit healthcare fraud and is awaiting sentencing.
Mattia’s participation in the scheme caused a loss to the telecommunications company’s health care plan of approximately $100,000.
The conspiracy charge and substantive health care fraud charges each carry a statutory maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorneys Emma Spiro and Sean M. Sherman of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Doctor and Wife Indicted for Genetic Testing Kickback and Bribery SchemeRead the Press Release
NEWARK, N.J. – A Pennsylvania doctor and his wife were charged today for their roles in schemes to solicit and receive kickbacks and bribes in exchange for ordering genetic tests, Acting U.S. Attorney Rachael A. Honig announced today.
Yitzchok “Barry” Kurtzer, 61, and Robin Kurtzer, 60, both of Monsey, New York, are charged by indictment with various counts for participating in a scheme to solicit and receive kickbacks and bribes in exchange for ordering genetic tests. Yitzchok Kurtzer is also charged with health care fraud related to the kickback scheme. Two of Yitzchok Kurtzer’s employees, Amber Harris and Shanelyn Kennedy, have each previously pleaded guilty for their roles in the kickback scheme, and Lee Besen and Kimberly Schmidt have also each previously pleaded guilty for a related cash-for-genetic tests scheme. Sentencings for each of those defendants is pending.
According to documents filed in this case:
Yitzchok Kurtzer was a primary care physician with separate offices in the Scranton, Pennsylvania, area. Robin Kurtzer helped manage those offices. Beginning in 2018, Yitzchok Kurtzer and Robin Kurtzer solicited and received monthly cash kickbacks and bribes in exchange for collecting samples from Medicare patients and sending them for genetic tests to clinical laboratories in New Jersey and Pennsylvania. The cash kickbacks ranged up to $5,000, and the Kurtzers typically accepted the cash in one of Yitzchok Kurtzer’s offices, at times behind locked doors. At one point, the Kurtzers complained that they were not getting paid enough and negotiated for higher kickbacks and bribes.
The Kurtzers were recorded receiving and discussing many of their kickback and bribe payments. After Yitzchok Kurtzer accepted a $5,000 cash kickback, he counted the money and said, “Perfect. Didn’t short me.”
The Kurtzers used their employees in the scheme, including Harris and Kennedy, who each helped collect the DNA swabs in exchange for payments to them. Robin Kurtzer was recorded admitting that Harris and Kennedy should not have to be “bribed” to do their work, but Robin Kurtzer said that she had no trouble “giving them money” as long as they produced results.
Yitzchok Kurtzer correlated genetic test swab collection to bribe and kickback payments, regardless of medical necessity. He instructed his staff to stop collecting genetic test swabs when he missed receiving a bribe and kickback payment, and he increased the volume of genetic test swabs when the kickback and bribe payments resumed. He admitted in a recording that he provided a patient false information to get the patient to agree to be swabbed for a genetic test. And unless a patient actively sought their genetic test results, Yitzchok Kurtzer failed to review or otherwise use those results.
Even as the ongoing COVID-19 pandemic substantially reduced in-patient visits, the Kurtzers continued their scheme. They went from receiving hand-delivered cash kickbacks and bribes to accepting payments by wire and through a cell phone money-transfer app. Yitzchok Kurtzer also offered to pay one of his employees to collect genetic test swabs from all of his patients who lived in nursing homes.
As a result of these schemes, Medicare was billed over $1.3 million for tests generated from Yitzchok Kurtzer’s practice.
The indictment contains the following charges:
Counts
Defendants
Charge
1
Yitzchok Kurtzer
Robin Kurtzer
Kickback Conspiracy
2 – 4
Yitzchok Kurtzer
Robin Kurtzer
Violations of the Anti-Kickback Statute
5 – 7
Yitzchok Kurtzer
Robin Kurtzer
Illegal Remunerations for Referrals to Laboratories
8 – 10
Yitzchok Kurtzer
Robin Kurtzer
Travel Act
11
Yitzchok Kurtzer
Health Care Fraud
The kickbacks, illegal remunerations, and health care fraud charged in Counts 2 through 7 and 11 are each punishable by a maximum of 10 years in prison. The kickback conspiracy and Travel Act charges in Counts 1 and 8 through 10 are each punishable by a maximum of five years in prison. All 11 counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and U.S. Department of Health and Human Services, Office of Inspector General, Philadelphia Regional Office, under the direction of Special Agent in Charge Maureen R. Dixon, with the investigation leading to the charges. She also thanked the FBI Scranton Field Office, FBI Philadelphia Division, and the Pennsylvania Attorney General’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit and Acting Principal Assistant U.S. Attorney Rahul Agarwal.
The charges and allegations against Yitzchok Kurtzer and Robin Kurtzer are merely accusations, and they are presumed innocent unless and until proven guilty.
Two Newark Men Charged with Narcotics Distribution and Firearms ChargesRead the Press Release
NEWARK, N.J. – Two Newark men made their initial appearances today on gang-related narcotics distribution and firearms charges, Acting U.S. Attorney Rachael Honig announced.
Ronnie Holley, 32, and Shadee Holley, 31, both of Newark, are each charged by complaint with one count of conspiracy to distribute fentanyl and cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. Ronnie Holley is also charged with one count of possession of a firearm by a convicted felon. They appeared by videoconference this afternoon before U.S. Magistrate Judge Jessica S. Allen and were detained.
According to documents filed in this case and statements made in court:
A set of the national Bloods Street gang known as Sex Money Murders (SMM) operates in and around Newark, New Jersey. Since 2007, members of SMM have engaged in violent disputes with other gangs, trafficked narcotics, and committed various firearms offenses. Law enforcement officials learned that Ronnie and Shadee Holley, who are brothers, were high-ranking members of SMM and operated a sophisticated narcotics distribution operation around Martin Luther King Boulevard and Spruce Street. Law enforcement officials learned that Ronnie Holley used multiple houses and multiple vehicles to store narcotics, narcotics proceeds, and firearms.
A confidential source conducted eight controlled purchases of fentanyl and crack-cocaine from Ronnie and Shadee Holley over the past few months. Those purchases totaled approximately 40 grams of suspected fentanyl, and approximately 25 grams of suspected crack-cocaine.
The count of narcotics conspiracy is punishable by a mandatory minimum of five years in prison and a maximum sentence of 40 years in prison. The count of possession of a firearm during a crime of violence is punishable by a mandatory minimum of five years in prison and a maximum sentence of life in prison, which must run consecutively to any term of imprisonment imposed on any other charges. The count of possession of a firearm by a convicted felon is punishable by a maximum sentence of 10 years in prison.
Acting U.S. Attorney Honig credited the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to the charges.
This case is part of the U.S. Attorney’s Office’s Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety 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, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney George L. Brandley of the OCEDTF Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Essex County Man Sentenced to Two Years in Prison for Role in Conspiracy to Defraud Banks of $250,000 Using Credit Cards and Stolen ChecksRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 24 months in prison for his role in conspiring to defraud two banks of $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced.
Nasheed Jackson, 24, of Newark, and Alexander Varice, 22, and Dashawn Duncan, 27, both of South Orange, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to informations charging each of them with one count of conspiracy to commit bank fraud. Judge Wigenton imposed Jackson’s sentence today in Newark federal court. Duncan is scheduled to be sentenced on July 27, 2021, and Varice is scheduled to be sentenced on Sept. 7, 2021.
According to documents filed in this case and statements made in court:
From August 2018 through January 2020, Varice, Jackson, and Duncan engaged in a scheme to use stolen credit cards or checks to fraudulently make purchases and withdraw money from two banks. The credit cards were stolen from facilities used by the U.S. Postal Service in Pine Brook and Warren, New Jersey, and never reached the intended cardholders. After obtaining the stolen cards, Varice, Jackson, and Duncan used them to make unauthorized purchases at various retail stores and to 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. Varice and Jackson altered the date, payee, and amount of the stolen checks prior to deposit into a third-party account so that they could manually enter the amounts that they wanted to fraudulently withdraw from a victim bank ATM.
In addition to the prison term, Judge Wigenton sentence Jackson to five years of supervised release.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins 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.
Department of Justice Announces Launch of Firearms Trafficking Strike Forces to Crack Down on Sources of Crime GunsRead the Press Release
NEWARK, N.J. – The U.S. Department of Justice today launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C.
Each strike force region will be led by designated United States Attorneys, who will collaborate with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with state and local law enforcement partners within their own jurisdiction (where firearms are used in crimes) as well as law enforcement partners in areas where illegally trafficked guns originate. These officials will use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes.
“All too often, guns found at crime scenes come from hundreds or even thousands of miles away. We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors,” Attorney General Merrick B. Garland said. “The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”
According to gun trace data, a significant number of firearms recovered in the New York/northern New Jersey area originate from outside the area. The new strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in the New York/northern New Jersey area with their counterparts in those other locations.
“Combatting violent crime has always been a top priority of this office,” Acting U.S. Attorney Rachael A. Honig said. “Because many of the firearm source locations for the New York City and northern New Jersey areas overlap with the source locations for firearms recovered in Washington, D.C., the New York and Washington area strike forces will work closely together.”
The strike forces represent one important, concrete step in implementing the Department’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime—and requires U.S. Attorneys’ offices to work with federal, state, local and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.
South Carolina Investment Fund Manager Sentenced to 63 Months in Prison for $20 Million Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A South Carolina investment fund manager was sentenced today to 63 months in prison for his role in a scheme to fraudulently obtain over $20 million from investors through misrepresentations about trading strategy and fund performance, Acting U.S. Attorney Rachael A. Honig announced.
George Heckler, 65, of Charleston, South Carolina, previously pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of securities fraud. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Heckler managed, controlled or was involved with multiple investment funds, including Conestoga Partner Holdings (Conestoga), Cassatt Short Term Trading Fund LP (Cassatt), CV Special Opportunity Fund LP (CVSO), and TA1 LLC (TA1).
From 2014 to 2018, Heckler misrepresented to investors that he would invest their funds in particular trading strategies. Instead, he diverted their funds out of Cassatt and TA1 for purposes inconsistent with the trading strategies, including to pay out millions of dollars to other investors. Heckler also used investors’ funds to cover investment losses suffered by other funds under his management and/or control.
Heckler solicited investments from Victim-1, claiming the investments would be invested in Cassatt, which employed a “first loss” trading strategy intended to protect investors from losses. However, as of December 2013, Cassatt no longer had a brokerage account that was necessary to employ the represented trading strategy. Despite Cassatt no longer having a brokerage account, in 2014, Heckler represented to Victim-1 that Cassatt was still engaged in a first loss trading strategy and solicited Victim-1’s investment in Cassatt. In September 2014, Victim-1 invested approximately $9.1 million in Cassatt, relying on Heckler’s representation that Victim-1’s money would be invested consistent with Cassatt’s first loss trading strategy. Heckler used $4.6 million of Victim-1’s investment to repay existing investors and the remainder to satisfy other obligations Heckler owed that were unrelated to Cassatt.
Heckler also approached Victim-2 about the possibility of creating a hedge fund that would deploy capital to first-loss traders, who would serve as the “first loss” protection for investors’ capital. In late 2015, Victim-2 formed a hedge fund, utilizing the concept proposed by Heckler (Entity-1). In 2015 and 2016, Entity-1 invested $10.1 million in TA1 via a participation agreement that provided that Entity-1’s investment would be used for an “options arbitrage dividend recapture trade,” otherwise known as the “skate trade.” In fact, none of Entity-1’s investment was used for the “skate trade.” Entity-1’s investment was used for other purposes, including repaying others who had previously invested with Heckler.
Over the course of the scheme, Heckler sent out statements to investors that misled them into believing the value of their investments was increasing, when, in fact, the value was declining. Heckler took approximately $1 million in fees and distributions from the fraudulently obtained investments for his personal use.
In addition to the prison term, Judge Arleo sentenced Heckler to three years of supervised release and ordered forfeiture of $19.25 million.
The U.S. Securities and Exchange Commission has filed a civil complaint against Heckler based on the allegations underlying the securities fraud charge.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge Michael J. Driscoll, Philadelphia Field Office, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Catherine R. Murphy of the U.S. Attorney’s Office Criminal Division.
Paterson Felon Admits Trafficking and Unlawfully Possessing 16 FirearmsRead the Press Release
NEWARK, N.J. – A Paterson man with prior felony convictions today admitted illegally transporting and selling 16 firearms for over $8,000 on four occasions beginning in July 2019, Acting U.S. Attorney Rachael A. Honig announced.
Floyd Henry, aka “HK,” 36, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of illegally engaging in the business of dealing in firearms and four counts of possession of firearms and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
From July 15, 2019, through Sept. 25, 2019, Henry engaged in the business of dealing firearms, while not being a federally licensed importer, licensed manufacturer, or licensed dealer. On four occasions, in Passaic County, Henry sold or attempted to sell a total of 16 firearms, including two semi-automatic rifles, three revolvers, and 11 semi-automatic pistols, as well as over 100 rounds of ammunition, in exchange for over $8,000. Henry had purchased or obtained the firearms and ammunition in other states, transported them to New Jersey, and sold them to an individual in Passaic County.
The charge of engaging in the business of dealing firearms, while not being a federally licensed importer, licensed manufacturer, or licensed dealer carries a maximum potential penalty of up to five years in prison. Each of the four counts of being a felon in possession of a firearm carries a maximum potential penalty of up to 10 years in prison. Sentencing is scheduled for Nov. 23, 2021.
Acting U.S. Attorney Honig credited Special Agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Acting Special Agent in Charge Toby C. Taylor, Newark Field Division; officers with the Passaic County Sherriff’s Office under the direction of Sheriff Richard H. Berdnik; the Passaic County Prosecutor’s Office under the direction of County Prosecutor Camelia M. Valdes; and the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Christopher D. Amore of the U.S. Attorney’s Office’s Government Fraud Unit in Newark.
New York Man Admits Role in Conspiracy to Commit Bank Fraud and Conspiring to use Unauthorized Access Devices.Read the Press Release
NEWARK, N.J. – A New York man today admitted to his role in conspiring to defraud a home improvement retail store with stolen credit card information, Acting U.S. Attorney Rachael A. Honig announced.
Telwin Vincent, 32, of Bronx, New York, pleaded guilty by videoconference before U.S. District Court Judge Stanley R. Chesler to an information charging him with one count of conspiring to commit bank fraud and one count of conspiracy to use unauthorized access devices.
According to documents filed in this case and statements made in court:
From November 2017 through May 2019, Vincent and his conspirators placed online orders with a home improvement store using stolen credit card information and arranged to pick up those goods in person at various store locations throughout New Jersey and New York. Vincent directed his conspirators to pick up the goods using dozens of false or stolen identities and then return the goods at different store locations or sell the goods at a discount to third parties for cash.
The bank fraud conspiracy charge to which Vincent pleaded guilty carries a maximum penalty of 30 years in prison, a fine of $1 million or twice the gross gain to him or loss to others, whichever is greatest. The conspiracy to use unauthorized access devices count carries a maximum sentence of 10 years in prison, a fine of $250,000 or twice the gross gain to him or loss to others, whichever is greatest. Vincent’s sentencing is scheduled for Dec. 1, 2021.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office’s Opioid Abuse Prevention and Enforcement Unit in Newark.
Monmouth County Man Admits Defrauding Department of Veterans Affairs of $200,000Read the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man today admitted he defrauded the Department of Veterans Affairs of over $200,0000 in survivor’s pension benefits over 12 years, Acting U.S. Attorney Rachael A. Honig announced.
Melvin Greenspan, 72, of Perrineville, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conversion of government funds.
According to documents filed in this case and statements made in court:
The Department of Veteran’s Affairs provided survivor’s pension benefits to Greenspan’s mother because of Greenspan’s father’s prior military service. Those benefits, intended only for surviving spouses of military members, were made through electronic funds transfers into Greenspan’s mother’s bank account beginning in September 1971 and continuing after that date. After Greenspan’s mother died in 2006, Greenspan did not notify the Department of Veterans Affairs about his mother’s death and made withdrawals of the survivor’s pension benefits from his mother’s bank account between 2006 and 2018, totaling $201,166.
The charge of conversion of government funds carries a maximum sentence of up to 10 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Nov. 22, 2021.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the Violent Crimes Unit in Newark.
Former Hudson County Sheriff’s Officer Charged with Making False Statements in Connection with Fraudulent Short SaleRead the Press Release
NEWARK, N.J. – A former Hudson County Sheriff’s officer was charged for making false statements to a bank in connection with an application to discharge a mortgage through a fraudulent short sale, Acting U.S. Attorney Rachael A. Honig announced.
Osbado Hernandez, 52, of Avenel, New Jersey, is charged by complaint with one count of knowingly making false statements for the purpose of influencing the action of an FDIC-insured bank. Hernandez appeared this afternoon via videoconference before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
From September 2015 to Dec. 30, 2015, in order to induce a bank to discharge a mortgage on a property in Keansburg, New Jersey, Hernandez made false statements in connection with a fraudulent short sale of the property, including that he did not have any money to apply toward his mortgage delinquency and that he intended to vacate the property following the short sale. Hernandez fraudulently withheld information regarding the availability of funds in a savings account he failed to disclose to the bank. Hernandez also signed a sworn affidavit that he would not stay in the property for more than 90 days following the short sale, even though he intended to, and did, continue living at the property. As a result of the fraudulent short sale, the bank discharged over $98,000 of debt against Hernandez.
The false statements charge is punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million.
Acting U.S. Attorney Honig credited special agents with the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, and special agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Special Prosecutions 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 110 Months in Prison for Participating in Armed Robbery SpreeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 110 months in prison for participating in a string of convenience store robberies that took place across New Jersey in November and December 2017, Acting U.S. Attorney Rachael A. Honig announced.
Meshach Whagar, 31, of Newark previously pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to a superseding information charging him with one count of conspiracy to commit Hobbs Act robbery, nine substantive counts of Hobbs Act robbery, and one count of using a firearm during a crime of violence. Whagar’s codefendant, Tione Davis, 38, of East Orange, New Jersey, previously pleaded guilty to federal charges relating to the armed robbery spree and is awaiting sentencing.
According to documents filed in this case and statements made in court:
Davis and Whagar committed a string of 20 armed robberies of convenience stores and gas stations that took place throughout New Jersey between November and December 2017, including locations in Essex, Middlesex, Morris, Bergen, Union, Hudson, and Passaic Counties. During those robberies, Davis, while wearing dark clothing and hiding his face with masks or scarves, brandished a handgun and demanded money from store clerks. After stealing cash from the stores, Davis fled with Whagar, who acted as the getaway driver.
Before being apprehended, the defendants led law enforcement on a high-speed vehicle pursuit in Morris County. Among the items found in the vehicle defendants used in the chase were two handguns matching the description of those Davis used during the robberies.
In addition to the prison term, Judge McNulty sentenced Whagar to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. She also thanked the Morris, Union, Middlesex, Hudson, Passaic, Bergen, and Essex County Prosecutor’s Offices, as well as the Morris Plains, Springfield, Middlesex, Lodi, Roselle Park, Rahway, Parsippany, Rockaway, Mahwah, Elmwood Park, Bayonne, West Orange, East Brunswick, South River, Edison, Hoboken, Union, Clark, Kearny, Clifton, and Maplewood Police Departments for their work on this case.
The government is represented by Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit.
Brooklyn Man Admits Possession of MachinegunRead the Press Release
NEWARK, N.J. – A Brooklyn man with prior felony convictions today admitted illegally possessing a machinegun, Acting U.S. Attorney Rachael A. Honig announced.
Christian Cordero-Gotay, 29, of Brooklyn, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of possession of a machinegun, one count of possession of ammunition by a convicted felon, and one count of possession of a machinegun not registered to him in the National Firearms Registration and Transfer Record.
According to documents filed in this case and statements made in court:
On Aug. 31, 2020, officers of the Clinton Township Police Department conducted a motor vehicle stop of a vehicle occupied by Cordero-Gotay and Genesis Bertefabian. Upon approach, the officers detected an odor of burnt marijuana coming from the vehicle. Pursuant to a search of the vehicle, an officer observed a loaded Glock magazine under the driver’s seat. The officers attempted to place Cordero-Gotay and Bertefabian under arrest, but Cordero-Gotay resisted arrest and Bertefabian got in the vehicle and drove away.
A few minutes later, Bertefabian crashed into the side of a building. Bertefabian then exited the vehicle and walked into a wooded area behind the building. Law enforcement officers conducted a search of the wooded areaand found a 9 mm Glock-type semiautomatic firearm. Law enforcement officials determined that the firearm was fitted with a Glock conversion device commonly referred to as a “Glock Switch,” which has the effect of converting a semiautomatic Glock pistol into a machinegun. After obtaining a search warrant for the vehicle, law enforcement recovered two high-capacity magazines loaded with 9mm ammunition.
Each of the three charges carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Nov. 23, 2021.
Acting U.S. Attorney Rachael A. Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Toby C. Taylor, and the Clinton Township Police Department, under the direction of Lieutenant Thomas DeRosa, 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.
The charges against Bertefabian remain pending, and the defendant is presumed innocent unless and until proven guilty.
Former New Jersey Resident Admits Conspiring to Distribute Fentanyl AnalogueRead the Press Release
NEWARK, N.J. – A former New Jersey resident today admitted conspiring to distribute a fentanyl analogue, Acting U.S. Attorney Rachael A. Honig announced.
Darryl Hinkson, 46, formerly of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of a fentanyl analogue.
According to documents filed in this case and statements made in court:
From Sept. 11, 2018, to Oct. 18, 2018, Hinkson conspired with others to distribute pills that contained a fentanyl analogue, an illegal controlled substance. On Sept. 11, 2018, Hinkson met with an individual (Individual-1) and sold Individual-1 approximately 20 pills of purported “Percocet” and 20 pills of purported “Xanax” in exchange for U.S. currency. On Sept. 25, 2018, Hinkson again met with Individual-1 and sold Individual-1 550 pills of purported “Percocet” and approximately 300 pills of purported “Xanax” in exchange for U.S. currency. The pills were not, in fact, Percocet or Xanax, but instead contained a fentanyl analogue.
The count of conspiracy to distribute and possess with intent to distribute fentanyl analogue carries a maximum penalty of life in prison and a fine of $10 million. Sentencing is scheduled for Dec. 9, 2021.
Acting U.S. Attorney Honig credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Adam Baker of the Opioid Abuse Prevention and Enforcement Unit.
Colorado CEO and Fund Manager Arrested for $10 Million Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Denver, Colorado, CEO was arrested today in connection with a scheme to fraudulently obtain approximately $10 million from investors through various misrepresentations about fund operations and his background and contribution to the fund, Acting U.S. Attorney Rachael A. Honig announced.
Samuel J. Mancini, 55, is charged by complaint with securities fraud, wire fraud, and money laundering. He appeared this afternoon before U.S. Magistrate Judge Kristin L. Mix in Denver federal court, and was released on $100,000 unsecured bond pending his initial appearance in the District of New Jersey.
According to documents filed in this case and statements made in court:
From at least February 2020 through July 2021, Mancini orchestrated an investment fraud scheme and fraudulently obtained more than approximately $10 million from victims. Mancini managed and controlled Outdoor Capital Partners LLC (OCP), which he purported to be a venture capital and private equity firm. OCP served as the managing director of OCP Italia Fund LLC (OCP Italia), a private investment fund.
Mancini promised investors that he was raising $20 million, including $5 million of his own money, for OCP Italia to invest solely in acquiring controlling interests in three Italian cycling companies. Mancini represented to investors that the acquisitions would take place soon after the fund closed and promised investors approximately 70 percent of OCP Italia’s operating profits.
Mancini repeatedly misrepresented his finances and his contribution to OCP Italia. Mancini also misrepresented OCP Italia’s ability to close on the acquisitions. To date, OCP Italia has not acquired any of the Italian cycling companies. Instead, Mancini defaulted on contracts, diverted investor funds out of OCP Italia, and, in certain instances, paid investor funds to other investors seeking redemption.
Mancini also misled investors about his educational background by representing himself as a graduate of a prestigious military academy when, in fact, Mancini had failed to graduate from the academy due to an ethical violation, a fact he failed to disclose to investors.
When confronted with requests for transparency and redemptions by certain investors in OCP Italia, Mancini 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.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. The count of wire fraud is punishable by a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The count of money laundering is punishable by a maximum penalty of 10 years imprisonment and $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark. She also thanked the FBI Denver Field Office, under the direction of Special Agent in Charge Michael H. Schneider, for its assistance.
Additional victims of Mancini’s conduct may reach out to the FBI at 1-800-CALL-FBI (225-5324) or visit www.fbi.gov.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Gloucester County Man Sentenced to 188 Months in Prison for Producing Child PornographyRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 188 months in prison for producing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
James Thiel, 34, of Williamstown, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of sexual exploitation of a minor. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From April 2019 through August 2019, Thiel used an email account and a file sharing site to send images and videos of child sexual abuse to other individuals. Thiel produced and appeared in several of these images and videos along with a pre-pubescent child.
In addition to the prison term, Judge Hillman sentenced Thiel to a lifetime term of supervised release, ordered him to pay restitution of $5,000 to victims, and ordered him to register as a sex offender.
Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, and the Gloucester County Prosecutor’s Office, under the direction of Acting Prosecutor Christine Hoffman, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Passaic County Man Sentenced to 45 Months in Prison for Distributing FentanylRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 45 months in prison for distributing fentanyl, Acting U.S. Attorney Rachael A. Honig announced.
Tawan Grier, a/k/a “TJ,” 22, of Paterson, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with knowingly and intentionally distributing fentanyl. Judge Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Grier is an associate of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement officers determined that from September 2018 through Oct. 1, 2019, Grier and other members and associates of the 230 Boys distributed narcotics, including heroin, fentanyl, and cocaine base.
In addition to the prison term, Judge Martinotti sentenced Grier to three years of supervised release.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Toby C. Taylor; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff's Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. She also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Mexican National Admits Possession with Intent to Distribute MethamphetamineRead the Press Release
NEWARK, N.J. – A Mexican National today admitted possessing with intent to distribute methamphetamine, Acting U.S. Attorney Rachael A. Honig announced.
Mayolo Castro Santamaria, 39, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of possessing with intent to distribute 50 grams or more of methamphetamine.
According to documents filed in this case and statements made in court:
On June 26, 2020, Santamaria possessed 64.76 grams of methamphetamine in his vehicle.
The possession with intent to distribute charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life imprisonment, and a $10 million fine. Sentencing is scheduled for Nov. 15, 2021.
Acting U.S. Attorney Honig credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, and the Cedar Grove Police Department with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Alexandra Tsakopoulos Saker of the OCDETF/Narcotics Unit in Newark.
California Man Convicted for Large-Scale Fentanyl Analogue Pill Mill OperationRead the Press Release
TRENTON, N.J. – A California man was convicted today of conspiracy and manufacturing, distributing, and possessing with intent to manufacture and distribute a fentanyl analogue, Acting U.S. Attorney Rachael A. Honig announced.
Andrew Tablack, 29, of Beverly Hills, California, was convicted of one count of manufacturing, distributing, and possessing with intent to manufacture and distribute pills containing cyclopropyl fentanyl, an analogue of fentanyl intended for human consumption, in violation of the federal drug laws, and one count of conspiracy to do the same. The jury deliberated for less than two hours before returning the guilty verdict following a six-day trial before U.S. District Judge Michael A. Shipp in Trenton federal court.
According to documents filed in this case and the evidence at trial:
From at least March 2017 through December 2017, Tablack ran a massive pill making operation that distributed hundreds of thousands of fentanyl analogue pills throughout the United States, including New Jersey. These pills contained a powerful synthetic opioid with significant abuse potential. Tablack manufactured these illegal pills in clandestine labs in and near Los Angeles and sold them anonymously on the dark web, the Internet’s black market, using the moniker “XanaxKing2.” Tablack shipped approximately 400,000 of his illegal pills per month and made millions of dollars from his illegal operation in digital currency that is commonly used in the black market due to its relative anonymity.
Each count of the indictment is punishable by a maximum of 20 years in prison and a fine of $1 million. Sentencing is scheduled for Dec. 6, 2021.
This case was 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.
Acting U.S. Attorney Honig credited special agents with the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; the U.S. Department of Homeland Security, Homeland Security Investigation (HSI), Newark Division, under the direction of under the direction of Special Agent in Charge Jason J. Molina; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins; and special agents of the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Tazneen Shahabuddin of the Special Prosecutions Division, José R. Almonte, Deputy Chief of the Criminal Division, and Sarah Devlin, Chief of the Asset Recovery and Money Laundering Unit.
Atlantic County Men Charged in Heroin ConspiracyRead the Press Release
CAMDEN, N.J. – Two Atlantic County men have been charged with conspiring to distribute heroin, Acting U.S. Attorney Rachael A. Honig announced.
Ricardo Clavijo, 39, of Egg Harbor Township, New Jersey, and Christopher Gonzalez, 37, of Pleasantville, New Jersey, were each charged by complaint on July 13, 2021, with conspiring to distribute and possess with intent to distribute over one kilogram of heroin. Both defendants appeared by videoconference before U.S. Magistrate Judge Ann Marie Donio and were detained without bail.
According to documents filed in this case and statements made in court:
On July 12, 2021, the Drug Enforcement Administration (DEA) and officers from other law enforcement agencies executed a search warrant at an Egg Harbor Township residence. They encountered Clavijo at the front door and Gonzalez in the basement. In the basement of the residence, law enforcement officers discovered five kilogram-sized packages of suspected fentanyl, eight kilogram-sized packages of suspected fentanyl or cocaine, two kilogram-sized packages of suspected heroin, tens of thousands of pre-packaged individual doses of suspected heroin, additional narcotics packaging materials and paraphernalia, and an electronic money counter. Agents also found a .45 caliber handgun, a loaded magazine for the handgun, and a 9mm 50-round drum magazine.
The conspiracy count is punishable by a mandatory minimum term of 10 years in prison, a maximum of life in prison and a fine of $10 million, or twice the gross gain or loss caused by the offense, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the DEA’s Newark Division and the DEA Atlantic County HIDTA Task Force, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to the charges. She also thanked the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner, and the Egg Harbor Township Police Department, under the direction of Chief Michael A. Steinman, for their assistance.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Paterson Man Sentenced to 95 Months in Prison for Coercion and Enticement of MinorRead the Press Release
NEWARK, N.J. – A Passaic County man was sentenced today to 95 months in prison for coercion and enticement of a minor and for illegally re-entering the United States, Acting U.S. Attorney Rachael A. Honig announced.
Juan Carlos Morales Pedraza, 35, of Paterson, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to a superseding information charging him with coercion and enticement of a minor and of illegally re-entering the United States after having previously been deported. Judge Chesler imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
On April 13, 2019, Morales Pedraza approached a 15-year-old victim in Passaic County. Two days later, after engaging in sexual intercourse with the victim, Morales Pedraza and the victim left the New Jersey, with plans to travel to Illinois. Morales Pedraza admitted that he planned to engage in sexual conduct with the victim in Illinois. Law enforcement arrested Morales Pedraza in Ohio.
Morales Pedraza admitted that he is a citizen of Mexico and that he illegally entered the United States after having previously been deported.
In addition to the prison term, Judge Chesler sentenced Morales Pedraza to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Passaic County Prosecutor’s Office’s Sexual Investigations Unit, under the direction of Prosecutor Camelia M. Valdes, and investigators with the Ohio State Highway Patrol and the Lake Township Police Department in Lake Township, Ohio, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit.
Newark Tax Preparer Sentenced to 18 Months in Prison for Aiding and Assisting in Preparation of False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Pennsylvania man who worked as a tax preparer in Newark was sentenced today to 18 months in prison for helping his clients file falsified tax returns that generated larger refunds, Acting U.S. Attorney Rachael A. Honig announced.
Sylvain Dienhoue, 53, of Tobyhanna, Pennsylvania, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with three counts of aiding and assisting in the preparation of false and fraudulent tax returns. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Dienhoue worked as a tax preparer at Cadi’s Multi Services in Newark. He knowingly and willfully aided and assisted in the preparation of 44 fraudulent tax returns on behalf of clients for the tax years 2014 through 2016. Dienhoue used fabricated and inflated figures, including expenses and itemized deductions, in order to generate inflated refunds.
In addition to the prison term, Judge Wigenton sentenced Dienhoue to one year of supervised release and ordered him to pay restitution of $237,738. He is also precluded from preparing taxes on anyone else’s behalf.
Acting U.S. Attorney Honig credited special agents from IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Samantha C. Fasanello of the U.S. Attorney’s Office’s Criminal Division in Newark.
Bergen County Man Sentenced to 16 Months in Prison for Using Online Web Forums to Engage in CyberstalkingRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 16 months in prison for using Facebook and other online web forums to cyberstalk victims, Acting U.S. Attorney Rachael A. Honig announced.
Rino Diamante, 26, of Bergenfield, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge William J. Martini to an information charging him with one count of cyberstalking. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Diamante admitted that from January 2016 through August 2019 he engaged in continued online harassment of known and unknown adult victims, including Victims 1-23, by posting semi-nude or nude pictures purporting to be the victims on online web forums such as 4Chan.com and volafile. Diamante also admitted to contacting the victims, their friends and their family members to direct those individuals to the online web forums that contained the purported nude or semi-nude photographs of the victims.
In addition to the prison term, Judge Martini sentenced Diamante to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Cassye Cole of the U.S. Attorney’s Office’s Criminal Division in Newark.
Virginia Diagnostic Testing Lab Agrees to Pay $1.4 Million to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – A Virginia diagnostic laboratory will pay $1.4 million to resolve allegations that it violated the False Claims Act by submitting or causing to be submitted claims for genetic tests to Medicare without valid physician oversight, Acting U.S. Attorney Rachael A. Honig announced today.
According to the contentions of the United States contained in the settlement agreement:
From July 2014 to September 2015, Genetworx Laboratories utilized the services of Seth Rehfuss as a sales representative who persuaded groups of senior citizens in senior housing complexes to submit to genetic testing, despite applicable Medicare rules requiring proper orders from a treating physician for such tests. Genetworx, in turn, submitted claims for payment to Medicare for Rehfuss’s genetic tests performed without valid physician oversight.
Rehfuss, of Somerset, New Jersey, previously pleaded guilty in Trenton federal court to a superseding information charging him with conspiracy to commit health care fraud and was sentenced in May 2019 to 50 months in prison.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas J. Mahoney; and the Cape May County Department of Aging and Disability Services, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Daniel Meyler of the Health Care Fraud Unit in Newark.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Medical Device Companies to Pay $38.75 Million to Settle False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – Two medical device manufacturers have agreed to pay $38.75 million to resolve allegations that they violated the False Claims Act for billing the Medicare program for defective rapid point-of-care testing devices, Acting U.S. Attorney Rachael A. Honig announced today.
The settlement announced today resolves allegations that from 2008 to 2016 Alere Inc. and Alere San Diego Inc. (collectively, Alere) knowingly sold defective INRatio blood coagulation monitors used by Medicare beneficiaries taking anticoagulant drugs, such as warfarin. For those patients, blood coagulation monitoring is essential to determining a clinically appropriate and safe dosage for their medications. Too much of an anticoagulant drug can cause major bleeding, and too little of the drug can cause blood clots and strokes.
Since at least 2008, Alere allegedly knew that the software algorithm used in each version of its INRatio monitors contained a material defect. Based on its own internal research, as well as external complaints and warnings, Alere allegedly knew that INRatio devices had a “system limitation” that produced inaccurate and unreliable results for some patients. The United States alleged that despite awareness that INRatio systems were linked to over a dozen deaths and hundreds of injuries, including intra-cerebral hemorrhaging and cardiovascular events following bleeding episodes, Alere concealed the defect for years and billed Medicare for the use of defective INRatio devices. Alere allegedly failed to take appropriate corrective actions until 2016, when the devices were removed from the market following a nationwide Class I product recall undertaken at the request of the U.S. Food & Drug Administration (FDA).
“Health care companies have an obligation to be candid and clear in their disclosures to the FDA,” Acting U.S. Attorney Honig said. “The government expects companies to be proactive in investigating issues affecting patient safety. The U.S. Attorney’s Office for the District of New Jersey will hold accountable any company that fails to meet these obligations.”
“Patients and health care providers rely on diagnostic devices to provide reliable health information,” Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division said. “The Department of Justice will hold accountable medical device companies that knowingly sell defective products that can harm patients and waste taxpayer dollars.”
“Companies that withhold information from or provide false information to FDA put patients’ health at risk and jeopardize the integrity of the regulatory process designed to protect the public health,” Timothy Stenzel M.D., Ph.D., Director of the Office of In Vitro Diagnostics and Radiological Health in the FDA’s Center for Devices and Radiological Health, said.
“Medical device providers who cut corners or purposefully market defective tools put profit above patient health,” FBI Special Agent in Charge George M. Crouch Jr. said. “The FBI will not sit idly by when people’s lives are at risk. It’s an ill-advised business model that ignores the consequences of getting caught.”
U.S. Attorney Honig credited special agents of the FBI Newark Division, under the direction of Special Agent in Charge Crouch, and Healthcare Fraud Unit Major Provider Response Team; special agents of the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the Civil Division’s Commercial Litigation Branch (Fraud Section), with investigation.
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 Christopher Terranova of the Civil Division.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Jersey City Gang Member Charged with MurderRead the Press Release
NEWARK, N.J. – An alleged member of a Jersey City, New Jersey, gang has been charged with the March 31, 2020, murder of a Jersey City resident, Acting U.S. Attorney Rachael A. Honig announced today.
Phillip Wiggins Jr., 24, of Newark, is charged by complaint with one count each of murder in aid of racketeering, discharging a firearm in furtherance of a crime of violence, and causing death through use of a firearm. He made his initial appearance by videoconference before U.S. Magistrate Judge Michael A. Hammer and was detained without bail.
According to documents filed in this case and statements made in court:
Wiggins is allegedly associated with a street gang known to operate in the area of Wilkinson Avenue, Ocean Avenue, Martin Luther King Drive, and Wegman Parkway in Jersey City. On March 31, 2020, Wiggins traveled to an area controlled by a rival gang with which Wilkinson was feuding, and allegedly murdered Victim-1.
Wiggins faces a potential mandatory life sentence for the murder in aid of racketeering count. The count of causing death through use of a firearm carries a maximum sentence of life in prison. The count of discharging a firearm during an act of violence carries a potential mandatory consecutive sentence of 10 years in prison.
Acting U.S. Attorney Honig credited the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, as well as 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.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole Board, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit and Assistant U.S. Attorney Sophie Reiter of the Violent Crime Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Sales Representative Admits Role in $7.89 Million Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – A former sales representative for several compounding pharmacies and marketing companies today admitted his role in a scheme to defraud public and private health benefits programs of $7.89 million for the billing of medically unnecessary compounded prescriptions, Acting U.S. Attorney Rachael A. Honig announced.
Christopher Cuffari, 55, of Little Falls, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription.
Between November 2014 and September 2017, Cuffari participated in a conspiracy that involved the submission of fraudulent prescriptions for compounded medications to public and private insurance plans. The scheme centered on the discovery that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates.
Cuffari exploited this opportunity through working as a sales representative for several compounding pharmacies. To profit as a sales representative, Cuffari targeted individuals who had insurance plans that covered compounded medications and then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. To obtain prescriptions for compounded medications for some of the recruited individuals, Cuffari caused payments to be made to a New Jersey-based physician.
Once the prescriptions were written, they were filled by the compounding pharmacies with which Cuffari worked. The compounding pharmacies would then receive reimbursement from the insurance plans and would pay Cuffari a percentage of the reimbursement amount.
As part of his plea agreement, Cuffari must forfeit $995,328 in criminal proceeds he received for his role in the scheme and pay restitution of at least $7.89 million. He faces a statutory maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Nov. 9, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit, in Newark.
Bridgeton Police Officer Charged with Civil Rights Violation and Filing False Police ReportRead the Press Release
CAMDEN, N.J. – A City of Bridgeton police officer has been indicted for offenses arising from an assault on the streets of Bridgeton, Acting U.S. Attorney Rachael A. Honig announced today.
John Grier III, 49, of Cedarville, New Jersey, is charged in an indictment unsealed today with one count of violating an individual’s civil rights and one count of falsifying a record for submitting a false police report about the assault. A federal grand jury returned the sealed indictment on June 30, 2021. Grier surrendered this morning and was arraigned by videoconference before U.S. Magistrate Judge Ann Marie Donio. He was released on $50,000 bond.
“One of the most important responsibilities we hold at the Department of Justice is the responsibility to investigate and prosecute police officers who abuse their power and deprive our citizens of their civil rights,” Acting U.S. Attorney Honig said. “This Office will continue to charge officers, like this defendant, who dishonor their badges by using force when it is neither reasonable nor necessary and thereby fail to live up to their duty to protect the public they serve.”
“Civil Rights violations are of great concern, particularly when the allegations involve a member of law enforcement,” FBI Newark Special Agent in Charge George M. Crouch Jr. said. “The public has an absolute right to trust that law enforcement will protect those they serve and keep them safe. When that trust is violated, it makes it more difficult for our fellow police officers and federal agents to maintain the community's confidence.”
According to documents filed in this case and statements made in court:
On June 18, 2017, Bridgeton Police Department (BPD) officers were dispatched to a Bridgeton gas station following a report of two males sitting at the gas station yelling at passersby. When an officer arrived, he found the victim in the driver seat of a car parked by the gas pumps, and another man was sitting in the passenger seat. In response to the radio call, Grier arrived as a back-up officer.
Eventually, the driver and passenger were issued summonses, and Grier departed the gas station. Within minutes, an officer who remained at the gas station radioed for assistance because the driver and passenger had gotten out of the car and approached him before he could drive off. As Grier drove back to the gas station, he grabbed a large can of OC spray and pulled out the pin allowing its use.
Upon Grier’s arrival, the driver was yelling at officers. Grier ordered the driver to get back into his vehicle and warned him that if he approached the officers again that he would be arrested. The driver and passenger returned to their car and drove to the side of the gas station. At that point the police officers had probable cause to arrest the victim for driving while intoxicated.
The officers approached the car in order to arrest the victim. Grier got out of his car with the large can of OC spray in his hand and told another officer to “step back,” despite the fact that the officer had nearly finished handcuffing the victim. While holding the OC spray, Grier asked the victim “do you want to feel pain, sir?” Other officers were able to handcuff the victim without incident.
As an officer attempted to the place the handcuffed victim into the rear of a patrol vehicle, Grier sprayed the victim in the face. The victim doubled over. An officer helped the victim up and sat him on the edge of the rear seat of the police SUV. Grier then sprayed the victim for a second time. After the second burst of OC spray to the face, Grier asked the driver “there, how do you like it now? Now get in the goddamn car.”
Grier returned to the police station to prepare his report in connection with the victim’s arrest. Grier prepared and submitted a false and fraudulent police report in which Grier falsely stated that the victim “refused [to enter the police vehicle] and continued to forcefully remain outside the vehicle,” and, in an effort to falsely justify the use of the OC spray a second time, stated that the “spray did not strike [the victim] in the face and that it did not take immediate effect[.]”
The violation of civil rights count carries a maximum penalty of 10 years in prison. The false records count carries a maximum penalty of 20 years in prison. The maximum fine for each charge is $250,000.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Honig credited special agents of the FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge Crouch in Newark, with the investigation leading to today’s indictment. Acting U.S. Attorney Honig also thanked the Internal Affairs Unit of the Bridgeton Police Department, under the direction of Chief Michael A. Gaimari Sr.; investigators and detectives of the New Jersey Attorney General’s Office, under the direction of Attorney General Gurbir Grewal; and the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McCray.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Pharmaceutical Sales Representative Admits Health Care Fraud Conspiracy and Conspiring to Engage in Money Laundering and Obstruct JusticeRead the Press Release
CAMDEN, N.J. – A pharmaceutical sales representative today admitted he conspired to defraud New Jersey county health benefits programs and conspired to engage in money laundering and obstruct justice, Acting U.S. Attorney Rachael A. Honig announced.
Paul Camarda, 39, of Holmdel, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to obstruct justice and engage in money laundering.
According to documents filed in this case and statements made in court:
Camarda was a sales representative for a pharmaceutical company. He created a side business called Dynasty Capital LLC to independently market medical products and services for other companies, including compounded prescription medications for specialty pharmacies. Camarda marketed compounded medications for several pharmacies, including New Jersey and out-of-state pharmacies identified in court documents as “Compounding Pharmacy 1,” “Compounding Pharmacy 2,” “Compounding Pharmacy 3,” and “Compounding Pharmacy 4.” As part of his arrangements with the compounding pharmacies and his conspirators, Camarda was paid a percentage of the insurance payments received for prescriptions arranged by him and those working with him.
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Camarda learned that certain local government employees had insurance coverage for these particular compounded medications. An entity identified in court documents as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the Bergen County Prescription Benefits Program (BCPBP), which covered certain local government employees, including county prison guards. The Pharmacy Benefits Administrator paid prescription drug claims and then billed the BCPBP for the amounts paid.
Camarda was a leader and manager of the conspiracy. He and his conspirators discovered that certain compounded medications – including vitamins and pain, scar, antifungal, migraine, and libido creams – reimbursed up to thousands of dollars for a one-month supply. Camarda recruited individuals with BCPBP coverage to fraudulently obtain medically unnecessary compounded medications. He provided the recruits with blank prescriptions forms and directed them to go see an unnamed doctor – referred to in court documents as “Individual 1” – to obtain his authorization for the compounded prescription medications. The investigation revealed that all the recruits went to see Individual 1 for the purpose of obtaining the prescriptions within days of each other and all received prescriptions authorized by Individual 1 for the same specialty compounded medications on the same day or within days of each other. The recruits agreed to receive the very expensive compounded medications not because they needed them, but because they were paid by Camarda to do so. Camarda instructed the recruits that the more compounded medications they agreed to receive and the more people they recruited to also get the medications, the more money they stood to gain in the conspiracy.
Camarda received more than $2.2 million in payments for the prescriptions he and those working with him arranged, and Camarda and his recruits caused more than $3.4 million in fraudulent claims to be submitted to the Pharmacy Benefits Administrator for compounded medications. Camarda’s payments from the compounding pharmacies and his conspirators, as well as Camarda’s payments to his recruits, served as the basis for the money laundering conspiracy charge to which Camarda pleaded guilty.
In 2017, Camarda learned that federal agents and a federal grand jury were investigating the health care fraud conspiracy. Camarda conspired to obstruct the federal investigation by providing and instructing others to provide false information to federal agents and the grand jury.
The health care fraud conspiracy count to which Camarda pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. The obstruction of justice and money laundering conspiracy count carries a maximum penalty of five 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 Nov. 18, 2021.
Acting U.S. Attorney Rachael A. Honig credited special agents of the IRS Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and special agents of the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Christina O. Hud and R. David Walk Jr. of the U.S. Attorney’s Office in Camden.
Former Employee of Veterans Affairs Medical Center Indicted for Stealing More Than $10 Million Worth of HIV MedicationRead the Press Release
NEWARK, N.J. – A former pharmacy procurement technician was indicted today for stealing prescription HIV medications from the pharmacy of the Veterans Affairs Medical Center (VAMC) in East Orange, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Lisa M. Hoffman, 48, of Orange, New Jersey, is charged by indictment with one count each of conspiracy, theft of government property, and theft of medical products.
According to documents filed in this case and statements made in court:
From October 2015 through November 2019, Hoffman was a procurement officer at the VAMC, who used her authority to order large quantities of HIV prescription medications so that she could steal the excess. After the medications arrived, Hoffman waited until co-workers were out of sight and then removed them from the VAMC.
Once Hoffman stole the medications, she met her associate, Wagner Checonolasco, aka “Wanny,” generally at Hoffman’s residence, so that Hoffman could provide the stolen HIV medications to Checonolasco in exchange for cash. Hoffman and Checonolasco used an encrypted messaging application to plan and execute their thefts and sales of the stolen HIV medications, including arranging for the medications-for-cash exchanges. After obtaining the stolen HIV medications from Hoffman, Checonolasco sold them. Hoffman and Checonolasco stole approximately $10 million worth of HIV medications belonging to the VAMC during the conspiracy.
Checonolasco, 33, of Lyndhurst, New Jersey, was previously charged with conspiracy to steal government property, and those charges remain pending.
The conspiracy charge is punishable by a maximum penalty of five years in prison. The theft of government property charge is punishable by a maximum penalty of 10 years in prison. The charge of theft of medical products is punishable by a maximum penalty of 20 years in prison. Each charge also is punishable by a maximum fine of $250,000, or twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss sustained by any victims of the offense, whichever is greatest. The theft of medical products charge also carries a civil penalty of $1 million, or three times the economic loss attributable to the offense.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri, with the ongoing investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Nicole F. Mastropieri of the Health Care Fraud Unit.
The charges and allegations against the defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Contract Rehabilitation Therapy Providers Agree to Pay $8.4 Million to Resolve False Claims Act Allegations Relating to the Provision of Medically Unnecessary Therapy ServicesRead the Press Release
Select Medical Corporation and Encore GC Acquisition LLC have agreed to pay $8.4 million to resolve allegations that Select Medical Rehabilitation Services Inc. (SMRS) violated the False Claims Act by knowingly causing 12 skilled nursing facilities (SNFs) in New York and New Jersey to submit false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary or skilled. Select Medical Corporation was the prior parent company of SMRS, while Encore GC Acquisition LLC is the successor-in-interest to SMRS. The alleged conduct occurred prior to Encore’s acquisition of SMRS.
From 1997 through March 31, 2016, SMRS offered contract rehabilitation therapy services to SNFs across the country. The United States alleged that, at various times between Jan. 1, 2010, through March 31, 2016, SMRS contracted with 12 SNFs in New York and New Jersey to provide rehabilitation therapy services. The United States alleged that SMRS’ corporate policies and practices encouraged and resulted in the provision of medically unnecessary, unreasonable and unskilled therapy services being provided to patients at the 12 SNFs.
“Today’s settlement reflects our commitment to protect patients and taxpayers by ensuring that the care provided to Medicare beneficiaries is dictated by their individual clinical needs and not by a provider’s financial interests,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Contract rehabilitation therapy companies, like other health care providers, will be held accountable if they knowingly provide patients with unnecessary services that waste taxpayer dollars.”
“Skilled nursing facility residents and their families must be assured that the care and therapy that residents receive is based on medical need, not greed,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “We must also protect the taxpayers by ensuring that Medicare pays only for appropriate services performed for legitimate medical purposes. We will hold all health care providers who violate the False Claims Act responsible for their actions.”
“Sticking taxpayers with a hefty bill for unnecessary health care services will never be tolerated,” said Special Agent in Charge Scott J. Lampert of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “Working closely with our law enforcement partners, we will tirelessly pursue unscrupulous health care companies to protect patients and federal health care programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Melissa Vail, a former SMRS employee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Doe v. Select Medical Corporation et al.,No. 2:16-cv-03569 (D.N.J.).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG and the FBI Newark Field Office.
The investigation and resolution of this matter illustrate 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 matter was handled by Trial Attorney Yolonda Campbell of the Civil Division and Assistant U.S. Attorney Marihug Cedeño for the District of New Jersey.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Contract Rehabilitation Therapy Providers Agree to Pay $8.4 Million to Resolve False Claims Act Allegations Relating to Provision of Medically Unnecessary Therapy ServicesRead the Press Release
NEWARK, N.J. – A contract rehabilitation therapy provider will pay $8.4 million to resolve allegations that it violated the False Claims Act (FCA) by knowingly causing 12 skilled nursing facilities (SNFs) in New York and New Jersey to submit false claims to Medicare for services that were not reasonable, necessary, or skilled, Acting U.S. Attorney Rachael A. Honig announced today.
Select Medical Corporation and Encore GC Acquisition LLL have agreed to the settlement to resolve allegations that Select Medical Rehabilitation Services Inc. (SMRS) violated the FCA. Select Medical Corporation was the prior parent company of SMRS, while Encore GC Acquisition is the successor-in-interest to SMR
“Skilled nursing facility residents and their families must be assured that the care and therapy that residents receive is based on medical need, not greed,” Acting U.S. Attorney Honig said. “We must also protect the taxpayers by ensuring that Medicare pays only for appropriate services performed for legitimate medical purposes. We will hold all health care providers who violate the False Claims Act responsible for their actions.”
“Today’s settlement reflects our commitment to protect patients and taxpayers by ensuring that the care provided to Medicare beneficiaries is dictated by their individual clinical needs and not by a provider’s financial interests,” Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division said. “Contract rehabilitation therapy companies, like other health care providers, will be held accountable if they knowingly provide patients with unnecessary services that waste taxpayer dollars.”
“Sticking taxpayers with a hefty bill for unnecessary health care services will never be tolerated,” Special Agent in Charge Scott J. Lampert of the Health and Human Services, Office of the Inspector General (HHS-OIG) said. “Working closely with our law enforcement partners, we will tirelessly pursue unscrupulous health care companies to protect patients and federal health care programs.”
According to documents filed in this case and the contentions of the United States contained in the settlement agreement:
From Jan. 1, 2010, to March 31, 2016, SMRS contracted with 12 SNFs in New York and New Jersey to provide rehabilitation therapy services to patients of the nursing homes. The United States contends that SMRS’ profit-driven corporate policies and practices encouraged and resulted in the provision of medically unnecessary, unreasonable, and unskilled therapy services being provided to patients irrespective of the individual clinical needs of the patients.
The civil settlement includes the resolution of claims brought under the qui tam, or whistleblower, provisions of the FCA by Melissa Vail, a former SMRS employee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.
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 HHS-OIG and the FBI Newark Field Office.
The government is represented by Assistant U.S. Attorney Marihug P. Cedeño of the U.S. Attorney’s Office’s Opioid Abuse Prevention and Enforcement Unit in Newark and Trial Attorney Yolonda Campbell of the Civil Division, Commercial Litigation Branch, Fraud Section.
Tips and complaints 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 claims resolved by the settlement are allegations only and there has been no determination of liability.
The qui tam case is captioned U.S. ex rel. Doe v. Select Medical Corporation et al., No. 2:16-cv-03569 (D.N.J.).
Union County Mail Carrier Charged with Making False Statements to Obtain Federal Workers’ Compensation BenefitsRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, U.S. Postal Service (USPS) mail carrier made her initial court appearance today for making false statements to obtain federal workers’ compensation benefits, Acting U.S. Attorney Rachael Honig announced.
Monique Gee, 38, of Hillside, New Jersey, is charged by complaint with one count of knowingly and willfully falsifying, concealing, and covering up a material fact, and making a false, fictitious, and fraudulent statement and representation in connection with the application for and receipt of federal workers’ compensation benefits. Gee made her initial appearance today by videoconference before U.S. Magistrate Judge Leda Dunn Wettre, and was released on $150,000 unsecured bond.
According to documents filed in this case and statements made in court:
Gee worked as a mail carrier for the USPS in Middletown, New Jersey. On June 1, 2016, Gee signed and certified a form in which she alleged she sustained a knee sprain while performing her duties on that date. On subsequent forms, Gee certified that she did not receive earnings from employment outside of her federal job. However, an investigation revealed that Gee operated a business from which she received substantial income. During the investigation, an undercover law enforcement officer placed an order from Gee’s business and made a payment for the order to Gee via a mobile payment platform. As a result of her false representations, Gee received more than $150,000 in federal workers’ compensation benefits to which she was not entitled.
The count of making false statements to obtain federal workers’ compensation benefits carries a maximum penalty of five years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited members of the USPS Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Mark J. Pesce of the U.S. Attorney’s Office’s OCDETF/Narcotics Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Sussex County Man Admits Fraudulently Obtaining $5.6 Million Loan Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, man today admitted fraudulently obtaining a federal Paycheck Protection Program (PPP) loan of over $5 million, Acting U.S. Attorney Rachael A. Honig announced.
Azhar Sarwar Rana, 30, of Newton, New Jersey, pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of bank fraud and one count of money laundering. Rana was previously arrested on Dec. 12, 2020, after he booked a same-day flight to Pakistan; he was charged by complaint and made his initial appearance on Dec. 14, 2020.
According to documents filed in this case and statements made in court:
Rana submitted a fraudulent PPP loan application to a lender on behalf of a corporate entity, Azhar Sarwar Rana LLC, that purportedly invested in real estate development. The application falsified payroll and tax information and included internally inconsistent listings of the number of company employees. New Jersey Department of Labor records showed that Azhar Sarwar Rana LLC paid no wages in 2019, and the minimal wages it purportedly paid in 2020 were mostly to individuals whose submitted Social Security numbers did not correspond to their submitted names.
Based on Rana’s alleged misrepresentations, the lender approved Rana’s PPP loan application and provided Azhar Sarwar Rana LLC with approximately $5.6 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Rana used the fraudulently obtained PPP loan proceeds to pay for numerous personal expenses, including to invest millions in the stock market, make a payment to a luxury car dealership, and send hundreds of thousands of dollars to accounts in Pakistan.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The count of bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine; the count of money laundering carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater. Sentencing is scheduled for Nov. 3, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Social Security Administration Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge John F. Grasso; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Peter C. Fitzhugh in New York, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Somerset County Man Sentenced to 108 Months in Prison for Traveling to Foreign Country to Engage in Criminal Sexual ConductRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man has been sentenced to 108 months in prison for traveling to the Philippines to engage in sex with a minor, Acting U.S. Attorney Rachael A. Honig announced.
James A. Diggs, 45, of Somerville, New Jersey, previously pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with foreign travel to engage in criminal sexual activity.
According to documents filed in this case and statements made in court:
In October 2018, Diggs traveled to the Philippines to meet and engage in sexual activity with Minor Victim-1 in exchange for money and gifts, knowing the victim was a minor.
In addition to the prison term, Judge Wolfson sentenced Diggs to five years of supervised release and ordered him to register as a sex offender.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s guilty plea. He also thanked agents of the U.S. Customs and Border Protection, John F. Kennedy International Airport, for their assistance.
The government is represented by Assistant U.S. Attorney Patricia Astorga of the Opioid Abuse Prevention and Enforcement Unit of the U.S. Attorney’s Office in Newark.
New York Man Admits Role in Scheme to Traffic in Millions of Dollars’ Worth of Contraband CigarettesRead the Press Release
NEWARK, N.J. – A New York man today admitted participating in a scheme to traffic in contraband cigarettes, Acting U.S. Attorney Rachael A. Honig announced.
Obadah Saleh, 39, of Queens, New York, pleaded guilty by videoconference before U.S. District Judge Esther Salas to an information charging him with conspiracy to traffic in contraband cigarettes.
According to documents filed in this case and statements made in court:
Most states, including New Jersey, require a stamp to be placed on packs of cigarettes indicating the appropriate state tax has been paid. From October 2014 to October 2019, Saleh worked with conspirators to buy and sell millions of dollars’ worth of untaxed, contraband cigarettes, which they believed were stolen from large cigarette shipments from cigarette manufacturers. Saleh and his conspirators often made these purchases with large sums of cash. Saleh and his conspirators deprived the state of New Jersey of more than $594,000 in taxes as a result of this conspiracy.
The charge to which Saleh pleaded guilty is punishable by a maximum potential penalty of five 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 Nov. 2, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys James Donnelly and Joshua L. Haber of the Office’s Criminal Division in Newark.
Hunterdon County Man Admits Receipt and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – A Hunterdon County, New Jersey, man today admitted receiving and possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Daniel Murphy, 48, of Lebanon, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of receipt of child pornography and one count of possession of child pornography
According to documents filed in this case and statements made in court:
From Jan. 1, 2017, through Nov. 20, 2019, Murphy received and possessed images of minors being sexually abused.
The charge of receipt of child pornography carries a statutory mandatory minimum sentence of five years in prison, a maximum of 40 years in prison and a fine of up to $250,000. The charge of possession of child pornography carries a maximum sentence of 20 years and a fine of up to $250,000. Sentencing is scheduled for Nov. 3, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Cybercrime Unit in Newark.
Fifth Employee in Cash Flow Partners’ Bank Fraud Conspiracy Admits Role in Multimillion-Dollar Loan SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted participating in a scheme that involved the creation of false documentation to secure over $4 million in bank loans, Acting U.S. Attorney Rachael A. Honig announced.
Cesar Mendez, 49, of New York City, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Between March 2016 and September 2019, Cash Flow Partners LLC, a business consulting firm with offices in New York and New Jersey, released internet advertisements and held seminars offering to assist customers in obtaining bank loans, including loans insured by the Federal Deposit Insurance Corporation (FDIC). When customers submitted documentation supporting their bank loan applications to Cash Flow Partners, Mendez and others created false documentation to make customers’ loan applications appear more financially viable than they actually were. Victim banks sustained losses of over $4 million.
Four of Mendez’s conspirators, Edward Espinal, Gladys Collins, Jennie Frias, and Raymundo Torres, have previously pleaded guilty to charges relating to their role in the Cash Flow bank fraud conspiracy and are awaiting sentencing.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 1, 2021.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
Acting U.S. Attorney Honig credited special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio of the U.S. Attorney’s Office’s Special Prosecutions Division and J. Stephen Ferketic of the Health Care Fraud Unit in Newark.