District of New Jersey
Press releases recorded for this federal judicial district.
Essex County Man Indicted for Illegally Possessing Firearm and Ammunition and for Possessing with Intent to Distribute HeroinRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was indicted today on charges stemming from illegally possessing ammunition in connection with two shootings, illegally possessing a handgun and possessing heroin with the intent to distribute, Acting U.S. Attorney Rachael A. Honig announced.
Antoine Hawkins, 31, of Newark, is charged with two counts of possession of ammunition by a convicted felon, one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute heroin, and one count of possessing a firearm in furtherance of a drug trafficking crime. He will be arraigned on a date to be determined.
According to documents filed in this case and statements made in court:
On Aug. 18, 2020, video surveillance footage showed Hawkins as he fired a gun on a Newark street, striking a victim, who survived. Hawkins was also identified as the perpetrator of another shooting in Newark on Aug. 13, 2020, and cartridge casings from the locations of both shootings are a ballistics match.
On Sept. 16, 2020, law enforcement officers conducted a surveillance operation in connection with the Aug. 18, 2020, shooting. During the surveillance operation, a law enforcement officer approached Hawkins and observed what appeared to be the imprint of a firearm on Hawkins’s jacket. The law enforcement officer frisked Hawkins and located and seized a 9mm Springfield Armory XDM pistol, which was loaded with 19 rounds of ammunition.
After Hawkins was arrested for possessing the pistol and the ammunition, law enforcement executed a search warrant inside of Hawkins’s residence and found 626 glassine envelopes containing suspected heroin and three 9mm magazines.
The firearm and ammunition offenses each carry maximum potential penalties of 10 years in prison and fines of $250,000. The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence Hawkins receives, and a maximum potential penalty of life in prison. The narcotics offense carries a maximum potential penalty of 30 years in prison, and a fine of $2 million.
Acting U.S. Attorney Honig credited the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; members of the Newark Department of Public Safety, under the direction of Director Brian O’Hara; members of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the 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 includes the U.S. Attorney’s Office, the DEA, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole Board, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, and New Jersey Department of Corrections.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Cumberland County Man Sentenced to 12 Years in Prison for Conspiring to Distribute Cocaine and Possessing with Intent to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Cumberland County, New Jersey, man was sentenced today to 144 months in prison for conspiring to distribute cocaine and possessing with intent to distribute fentanyl, Acting U.S. Attorney Rachael Honig announced.
Oscar J. Gonzalez, 37, of Vineland, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine and possession with intent to distribute 400 grams or more of fentanyl. Judge Vazquez imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
From Jan. 20, 2020, through Jan. 26, 2020, Gonzalez conspired with others to distribute multiple kilograms of cocaine. On Jan. 25, 2020, he agreed to purchase multiple kilograms of cocaine and traveled to a location in Union County, New Jersey, to obtain the cocaine. He brought with him approximately $24,000 in cash to pay for one kilogram of cocaine.
While on release in connection with that case, Gonzalez agreed to distribute five kilograms of fentanyl. On April 24, 2020, Gonzalez arranged for another individual to deliver the fentanyl to a location in Monmouth County, New Jersey.
In addition to the prison term, Judge Vazquez sentenced Gonzalez to five years of supervised release.
Acting U.S. Attorney Rachael A. Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in New Jersey and Special Agent in Charge Raymond Donovan in New York, 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.
Camden County Man and Woman Indicted for Trafficking High-Dose Oxycodone PillsRead the Press Release
CAMDEN, N.J. – A federal grand jury today separately indicted a Camden man and woman for selling oxycodone pills as part of their roles in South Jersey high-dosage oxycodone trafficking rings, Acting U.S. Attorney Rachael A. Honig announced.
Maurice Williams, 40, of Mount Ephraim, New Jersey, was charged in a five-count indictment with conspiring to distribute and possess with intent to distribute oxycodone, distributing and possessing with intent to distribute quantities of oxycodone, and attempting to do the same, and using a communications facility to further a drug trafficking crime. Lolita Paynter, 56, of Camden, was separately charged in a four-count indictment with conspiring to distribute and possess with intent to distribute oxycodone and distributing and possessing with intent to distribute quantities of oxycodone and attempting to do the same. Williams and Paynter were previously charged by criminal complaint in March 2020. They will be arraigned on dates to be determined.
According to documents filed in this case and statements made in court:
In early 2020, the FBI led a wiretap investigation into drug distribution operations that dealt in, among other drugs, high-dose, 60- and 80-mg oxycodone pills. Intercepted telephone calls revealed that on multiple occasions from January 2020 to March 10, 2020, Williams discussed obtaining redistribution quantities of oxycodone from Erick Bell in and around Camden, and surveillance confirmed their meeting. These included discussions of purchases by Williams from Bell of, on Feb. 3, 2020, 100 80 mg. oxycodone pills, and, on Feb. 18, 2020, 100 60 mg. oxycodone pills. Bell and Williams employed coded language and used multiple phones to conceal their activities. The investigation also revealed that on multiple occasions Paynter supplied quantities of oxycodone to Rocco DePoder on dates from January 2020 to March 10, 2020. Intercepted calls and surveillance showed that DePoder was regularly reselling oxycodone pills to customers in and around Gloucester City, New Jersey.
Oxycodone is a Schedule II controlled substance, meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
The conspiracy and distribution and possession with intent to distribute charges against Williams and Paynter each carry maximum prison terms of 20 years and maximum fines of $1 million. The use of a communication facility charges against Williams each carry a maximum prison term of four years and a maximum fine of $250,000.
Eleven other defendants – Rocco DePoder, 68, Marcus Rushworth, 47, and Kenneth Rushworth, 60, all of Gloucester City; Alfred Kee, Jr., 52, of Blackwood, New Jersey; Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood; Wayne Muse, 74, of Lindenwold, New Jersey; Bell, 50, Steven Walker, 50, and Alexander Siaca, 55, all of Camden; Antwan Tucker, 51, of Woodbury, New Jersey; and Anwar Abdullah, 32, of Pennsauken, New Jersey – previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to informations charging them with drug trafficking offenses involving the distribution of prescription drugs. They are all awaiting sentencing.
Acting U.S. Attorney Honig credited special agents of the FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared M. Maples; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to the charges.
She also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration (DEA) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the Office’s Camden office and Sara F. Merin of the Newark Office.
The charges and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Philadelphia Man Admits Conspiring to Export Firearms Parts from United States to Turkey and Republic of GeorgiaRead the Press Release
CAMDEN, N.J. – A Philadelphia man today admitted his role in a conspiracy to smuggle more than $200,000 worth of firearms parts out of the United States, Acting U.S. Attorney Rachael A. Honig announced.
Samet Doyduk, 35, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to violate the Arms Export Control Act and anti-smuggling laws.
According to the documents filed in this case and other cases and statements made in court:
Doyduk admitted that from November 2018 through March 2019, he and other conspirators agreed to ship firearms parts from the United States to Turkey and the Republic of Georgia. Doyduk and others used credit cards, Pay-Pal accounts, and other forms of payment to purchase firearms parts from suppliers in the United States. Doyduk and the other conspirators would then repackage the firearms parts, falsely label the contents of the package, and export the firearms parts to their customers in Turkey and the Republic of Georgia. To disguise their role in the conspiracy, the conspirators used aliases when sending the packages containing prohibited items. Upon receiving the firearms parts, the customers in Turkey and in the Republic of Georgia paid Doyduk and the other conspirators by international wire transfers or directly paid one of the conspirators in cash while that individual was in Turkey. The firearms parts included upper receivers, barrels, and magazines for several different types of Glock handguns, including Glocks in the following calibers: 9mm, .40 caliber, and .357 caliber.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State. Doyduk and others purchased and directed the unlawful exportation of more than $200,000 worth of defense articles from the United States to Turkey and the Republic of Georgia without the required export license.
The conspiracy charge to which Doyduk pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 23, 2021.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), Cherry Hill Resident Agency, under the direction of Special Agent in Charge Jason J. Molina in Newark; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia, with the investigation leading to today’s guilty plea. She also thanked HSI agents in Ankara, Turkey and Frankfurt, Germany; U.S. Customs and Border Protection (CBP) and U.S. Postal Inspection Services, JFK airport, for their assistance.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Ocean County Man Admits Operating an Illegal Lottery and Filing False Tax ReturnRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey man today admitted operating an illegal lottery and failing to pay more than $65,000 in federal taxes on his earnings from the scheme, Acting U.S. Attorney Rachael A. Honig announced.
Edward O’Neill, 54, of Beachwood, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of managing an illegal gambling business and one count of subscribing to a false tax return.
According to documents filed in this case and statements made in court:
Between 2014 and 2019, O’Neill managed an illegal lottery in Hudson County that was based on the New Jersey Lottery Commission’s Pick Six. Participants in the illegal lottery paid a $20 entry fee and selected six numbers between 1 and 49. The first participant in the illegal lottery to have all six of their numbers selected in the official Pick Six drawing won a cash prize. For each drawing of the illegal lottery, O’Neill collected entry fees and participants’ numbers and entered the numbers into ledgers, which included identifying information for each participant and the numbers each participant had selected. O’Neill monitored the numbers selected in the official Pick Six and, when there was a winner of the illegal lottery, caused the winning participant to be paid in cash.
According to the ledgers, each drawing of the illegal lottery included up to 8,000 participants and the cash prize for each drawing often exceeded $100,000. In exchange for operating and managing the illegal lottery, O’Neill kept for himself 10 percent of the winnings from each drawing. O’Neill admitted that he failed to account for approximately $250,000 in cash winnings from the illegal lottery on tax returns he filed with the IRS between 2014 and 2018, causing him to underpay his federal incomes taxes by $65,674.
The gambling charge to which O’Neill pleaded guilty carries a maximum penalty of five years in prison, while the subscribing to a false federal income tax return count is punishable by up to three years in prison. Both charges carry a potential fine of $250,000 or twice the gross gain or loss from the offenses, whichever is greater. Sentencing is scheduled for Aug. 25, 2021.
Acting U.S. Attorney Honig credited special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.
Former Inmate Admits Role in Scheme to use Drones to Smuggle Contraband into Fort Dix Federal PrisonRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted participating in a conspiracy to use drones to smuggle contraband, including cell phones and tobacco, into the federal correctional facility at Fort Dix, and to possessing heroin and fentanyl with the intent to distribute, Acting U.S. Attorney Rachael A. Honig announced.
Jason Arteaga-Loayza, aka “Juice,” 30, of Jersey City, New Jersey, a former inmate at Fort Dix, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to one count of conspiracy to defraud the U.S. Bureau of Prisons and one count of possession of heroin and fentanyl with the intent to distribute. Arteaga-Loayza, who was on federal supervised release at the time of the offenses, also pleaded guilty to violating the terms of his supervised release.
Three other men, Adrian Goolcharran, aka “Adrian Ahoda,” aka “Adrian Ajoda,” aka “Adrian Ajodha;” Nicolo Denichilo; and Johansel Moronta also have been charged with participating in the scheme to use drones to smuggle contraband into Fort Dix prison.
According to the documents filed in this case:
Arteaga-Loayza, an inmate at Fort Dix from June 2017 to September 2018, participated in multiple drone deliveries of contraband into Fort Dix after his release from prison. Between October 2018 and June 2019, Arteaga-Loayza arranged for Goolcharran, with Denichilo’s assistance, to fly drones over Fort Dix and drop packages of contraband into the prison, where it was sold to inmates for a profit. The packages that Arteaga-Loayza smuggled in included cell phones, cell phone accessories, tobacco, weight loss supplements, eyeglasses, and various other items. Arteaga-Loayza, with Moronta’s assistance inside of the prison, took inmate requests for specific items of contraband and oversaw the collection of payments. Arteaga-Loayza also collected contraband for upcoming drone drops and stored it at his residence in Jersey City.
Arteaga-Loayza and his conspirators took various steps to prevent BOP officials from detecting and intercepting the contraband. They planned drone drops during the late evening hours or overnight when the drones were less likely to be seen. Goolcharran, the drone pilot, with Denichilo’s assistance, flew the drones from concealed positions in the woods surrounding the prison. The lights on the drones were covered with tape to make it more difficult for prison officials to spot the drones.
Arteaga-Loayza and his conspirators used cell phones, including contraband phones concealed within the prison, to coordinate the drone drops. A contraband cell phone used by Moronta, who was an inmate at Fort Dix, contained text messages with Arteaga-Loayza about the collection of profits from the sale of the contraband inside of the prison. In one exchange, Moronta messaged Arteaga-Loayza about an inmate, “Ok so I am tell him 10 phones and 100 baco [i.e. tobacco] he has to pay 10 bands and 500 on each phone?” Arteaga-Loayza responded, “And well even give him an ounce of weed tell him.” One of Arteaga-Loayza’s cell phones contained messages between him and Goolcharran coordinating drone drops. For example, in April 2019, Arteaga-Loayza sent Goolcharran marked-up aerial photos of Fort Dix to show Goolcharran where to drop the contraband. In another exchange, Arteaga-Loayza sent Goolcharran a message asking, “U think that u cud do something 2m.” Goolcharran replied, “2m too windy 20mph.”
During a search of Arteaga-Loayza’s residence on June 27, 2019, agents found a kitchen closet containing packages of empty cell phone boxes, including a package with empty cell phone boxes that had been shipped to Arteaga-Loayza the day before a drone drop on Oct. 30, 2018, cell phone chargers, empty boxes of SIM cards, and several cell phones. The kitchen closet also contained a Bugler tobacco box, consistent with the tobacco recovered in earlier drone drops. Arteaga-Loayza also had a suitcase in his bedroom that contained his driver’s license, 20 packets of Suboxone Sublingual Film, a prescription opiate, and a plastic bag containing over 21 grams of a substance containing heroin and fentanyl. Following the search of his home, Arteaga-Loayza moved and did not inform his probation officer of his whereabouts.
Arteaga-Loayza faces a maximum penalty of five years in prison and maximum fine of $250,000 for the conspiracy count, and 20 years in prison and a $1 million fine for the narcotics count. Arteaga-Loayza also faces a maximum penalty of two years in prison for violating the terms of his supervised release. Sentencing is scheduled for Sept. 9, 2021.
Acting U.S. Attorney Honig credited agents of the U.S. Department of Justice Office of the Inspector General, Cyber Investigations Office, under the direction of Special Agent in Charge Keith A. Bonanno; Detachment 307, Office of Special Investigations, Department of the Air Force, under the direction of Special Agent Nick Kaplan; and the U.S. Department of Transportation Office of Inspector General, Northeast Region, under the direction of Acting Special Agent in Charge Daniel Helzner, with the investigation leading to the charges.
She also thanked Federal Bureau of Prisons personnel at Fort Dix, under the direction of Warden Lamine N’Diaye; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas J. Mahoney; and officers with the Pemberton Borough Police Department, under the direction of Chief Edward Hunter; Pemberton Township Police Department, under the direction of Chief David King; and Chesterfield Township Police Department, under the direction of Chief Kyle Wilson, for their assistance.
The government is represented by Assistant U.S. Attorneys Cari Fais and Jeffrey J. Manis of the Office’s Special Prosecutions Division in Newark.
The charges and allegations contained in the criminal complaints issued against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Camden County Man Arrested for Wire FraudRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was arrested by federal agents today on charges of wire fraud, Acting U.S. Attorney Rachael A. Honig announced.
Frank N. Tobolsky, 59, of Cherry Hill, New Jersey, is charged by indictment with eight counts of wire fraud in connection with a fraudulent investment scheme. He will be arraigned today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
According to documents filed in this case and statements made in court:
Beginning in 2013, Tobolsky raised money from a victim, purportedly as an investment that would loan money to season ticket holders who owned seat licenses for a professional sports team in Philadelphia, Pennsylvania. The seat licenses would be used as collateral to secure the loans. The victim sent Tobolsky approximately $2.4 million to invest in the purported business venture. The money was not used for loans to season ticket holders. Instead, Tobolsky used a substantial portion on personal expenses.
The charges of wire fraud each carry a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross loss to any victim or gain to Tobolsky, whichever is greater.
Acting U.S. Attorney Honig credited inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Damon Wood, with the investigation leading to the charges. She also thanked the U.S. Attorney’s Office for the District of Delaware for assisting the investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender and Special Assistant U.S. Attorney John Crockett of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ocean County Insurance Producer Admits $1.5 Million Health Care Fraud Against Blue Cross Blue ShieldRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, insurance producer today admitted filing false statements in connection with the delivery of $1.5 million in fraudulent claims by Blue Cross Blue Shield health care affiliates, Acting U.S. Attorney Rachael A. Honig announced today.
Jonas Knopf, 65, of Lakewood, New Jersey, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of making false statements related to a health care benefits program.
According to documents filed in this case and statements made in court:
Starting in 2009, Knopf was chief executive officer of Madison Financial Services (MFS) in Lakewood and a licensed insurance producer – a person who is licensed to sell insurance products. MFS was the parent company of two sham companies created by Knopf and others solely for the purpose of marketing health insurance coverage to people who were not, in fact, his employees. These companies purported to be located and doing business in Pennsylvania and created the appearance of employment status for hundreds of individuals, largely Lakewood residents, who were seeking health care coverage through BCBS benefit plans. The fraud lasted until March 2013, when the Pennsylvania Department of Insurance caused Knopf to surrender his Pennsylvania insurance producer’s license and cease operation in the state.
Knopf used false personal information, including false addresses, dates of birth, marital status and employment functions, to give BCBS the impression that his clients were actually employees being paid for services rendered. In total, the scheme caused the health care insurers to pay out $1.5 million in fraudulent claims.
The count of making false statements relating to a health care benefit program carries a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gross gain or twice the gross loss from the offense, whichever is greater. Sentencing is scheduled for Aug. 19, 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 the U.S. Department of Labor, Office of Inspector General, Office of Investigations, New York Region, under the direction of Special Agent in Charge Michael Mikulka; and Investigators of the U.S. Department of Labor, Employee Benefit Security Administration, under the direction of Regional Director Thomas Licetti, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit in Newark.
New York Man Charged with Abusive Sexual Contact on AirplaneRead the Press Release
NEWARK, N.J. – A New York man made his initial appearance today for alleged abusive sexual contact with a female passenger on a flight to Newark Liberty International Airport, Acting U.S. Attorney Rachael A. Honig announced.
Ryan Manuella, 28, of Cheektowaga, New York, is charged by criminal complaint with one count of abusive sexual contact on an airplane. He had his initial appearance by videoconference before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was detained.
According to the complaint:
While on an April 16, 2021, flight from Denver, Colorado, to Newark, Manuella moved to a vacant center seat next to a female passenger, who was sitting in a window seat. Manuella was unknown to the victim. While seated next to the victim, Manuela touched her on the groin and inner thigh without her permission.
The abusive sexual contact charge carries a maximum term of two years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and officers of the Port Authority Police Department, under the direction of Superintendent of Police Edward Cetnar, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Hayden M. Brockett of the Health Care Fraud Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Georgia Man Indicted on Conspiracy and Fraud ChargesRead the Press Release
NEWARK, N.J. – A Georgia man was arraigned today on conspiracy and fraud charges after surrendering to federal authorities, Acting U.S. Attorney Rachael A. Honig announced.
Isaac Newton, 53, of Loganville, Georgia, is charged by indictment with one count of conspiracy to commit mail fraud and wire fraud, five counts of wire fraud, two counts of mail fraud, and one count of unlawfully obtaining $5,000 or more from a federally funded local government. He appeared by videoconference before the U.S. Magistrate Judge James B. Clark III, entered a plea of not guilty, and was release on $100,000 unsecured bond.
According to the indictment:
Newton was a consultant whose family member was enrolled in a graduate program at a university in New Jersey with Willis Edwards III, a public official in the local government of the City of Orange Township, New Jersey.
From June 2015 to June 2016, Newton and Edwards conspired to dupe Orange into making payments to Newton, which were, at least in part, for academic papers that Newton arranged to have written for Edwards. Edwards plagiarized the papers that Orange paid for and passed them off as his own work to professors at the university. Between December 2015 and March 2016, Newton submitted three fraudulent invoices to Orange calling for payments of $12,000, $16,000, and $10,000 for purported professional services. Orange paid the money to Newton, and Edwards received from Newton academic papers that had been written for Edwards. On June 20, 2016, Edwards submitted to several professors papers that were virtually identical to the papers that he had received from Newton. In emails sent to the professors, to which the papers were attached, Edwards asked the professors to grade the attached outstanding assignments so that he did “not receive a failing grade for all of the hard work that [he had] done.”
On Sept. 29, 2020, Edwards was charged in a 31-count superseding indictment, Counts 17 to 25 of which are related to the charges contained in Newton’s indictment. His case is pending trial.
Each count of conspiracy to commit mail and wire fraud, mail fraud and wire fraud is punishable by up to 20 years in prison and a $250,000 fine. The count of unlawfully obtaining more than $5,000 from a local government receiving federal funds is punishable by up to 10 years in prison and a $250,000 fine.
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 the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys J Fortier Imbert and Cari Fais of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charge and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Camden Man Charged with Sex Trafficking of a MinorRead the Press Release
CAMDEN, N.J. – A Camden man is scheduled to make his initial appearance today on a sex trafficking charge, Acting U.S. Attorney Rachael A. Honig announced.
Semaj A. Gilmore, 31, is charged by complaint with one count of sex trafficking of a minor. He is scheduled to appear by videoconference before U.S. Magistrate Judge Karen M. Williams this afternoon.
According to documents filed in this case and statements made in court:
In April 2021, investigators learned that a missing juvenile from Pennsylvania was being advertised for sexually illicit activities on a website that is often used to advertise acts of prostitution. On April 13, 2021, an undercover agent contacted a phone number associated with the advertisement. The undercover agent and the user of the phone number, later revealed to be Gilmore, exchanged a series of messages that ultimately led to the undercover agent meeting the victim in a motel room in or around Mount Laurel, New Jersey, purportedly to engage in sexual activities in exchange for cash. Among other messages, Gilmore instructed the undercover agent to “get condoms” and to confirm that he was not “a cop.” When uniformed officers entered the motel room, Gilmore, who had been waiting in a car in the adjacent parking lot, fled the scene. Officers stopped Gilmore’s car and recovered the phone used to arrange the meeting between the victim and the undercover agent.
The count of sex trafficking of a minor carries a statutory mandatory minimum penalty of 10 years in prison and a maximum of life in prison.
Acting U.S. Attorney Honig credited special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge Michael J. Driscoll, with the investigation leading to the charge. She also thanked members of the Mount Laurel Police Department, under the direction of Chief Steve Riedener, and the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, for their assistance.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
Two Men Charged with Producing False Identity Documents and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – Two operators of an illegal e-commerce business engaged in the sale of digital images of false identity documents, such as passports, driver’s licenses, and national identity cards associated with more than 200 countries and territories, were charged in a six-count federal indictment unsealed in the District of New Jersey today, Acting U.S. Attorney Rachael A. Honig announced.
Mohsin Raza, aka “Mohsin Raza Amiri,” 34, and Mujtaba Raza, aka “Mujtaba Ali Lilani,” “Mujtaba Ali,” and “Mujtaba,” 33, both of Karachi, Pakistan, are each charged with conspiracy to produce and transfer in false identification documents, three counts of transferring false identification documents, one count of false use of a passport, and one count of aggravated identity theft.
“The indictment alleges a global scheme to produce fraudulent identity documents that other wrongdoers then used to further additional illegal activity, including activity intended to interfere with U.S. elections,” Acting U.S. Attorney Honig said. “Together with the FBI and our other law enforcement partners around the world, we will continue to identify criminal operations such as these and shut them down.”
“Today’s actions demonstrate the FBI’s commitment to target the entire ecosystem supporting cyber actors, regardless of where those criminals reside, and hold them accountable,” Special Agent in Charge George M. Crouch Jr. of the FBI Newark Division said. “The individuals indicted enabled criminal organizations around the world to perpetuate cyberattacks against Americans and our allies and to bypass anti-fraud measures designed to stop the flow of stolen funds through the financial system. Mohsin Raza and Mujtaba Ali Raza are now fugitives and have been added to the FBI’s White Collar Crimes Most Wanted website. The FBI will never stop pursuing these criminals until justice is served.”
According to the indictment:
From at least 2011, the defendants operated a fraudulent online business based out of Karachi, named, at various times, “SecondEye Solution” and “Forwarderz” (collectively, “SecondEye”). SecondEye, through various versions of its website, electronically produced, sold, and transferred digital versions of false government-issued identity and other documents. The false documents were the types of documents commonly needed and used to create online accounts at banks, payment processors, social media sites, and digital currency platforms.
The defendants advertised SecondEye’s services on at least one well-known cyber hacker forum. SecondEye’s advertisements claimed that SecondEye documents could be used by customers who were “banned” or “suspended” to restore access to their online accounts. The defendants accepted more than $1.5 million in Bitcoin transfers alone from SecondEye customers related to more than 20,000 separate transactions.
SecondEye customers used the false SecondEye documents to commit and facilitate the commission of various cybercrimes and other criminal conduct. Between May 11, 2017, and Sept. 16, 2017, a member of the Internet Research Agency LLC, a Russian organization that engaged in operations to interfere with elections and political processes, including the 2016 U.S. presidential election, purchased multiple false identification documents from SecondEye in the names of real and fictitious U.S. persons. The false identification documents were later used as supporting documents for accounts previously operated by the Internet Research Agency at a social media company.
SecondEye customers used the false SecondEye documents to defraud payment processing companies, e-commerce businesses, social media, and social networking platforms, and virtual currency exchanges, both foreign and domestic, by gaining unauthorized access to online platforms provided by such entities, often to gain access to customer accounts that previously had been revoked or suspended.
As part of its investigation, the United States has seized three domestically-hosted domain names used by SecondEye in furtherance of its fraudulent document business: www.secondeyesolution.com, www.secondeyesolution.biz, and www.forwarderz.com. Visitors to the websites received the following message:
THIS WEBSITE HAS BEEN SEIZED
The conspiracy charge and each of the three counts of transferring false identity documents are punishable by a maximum of 15 years in prison. The false use of a passport charge is punishable by maximum of 10 years in prison. The aggravated identity theft charge is punishable by an additional consecutive mandatory minimum imprisonment term of two years. Each count has a maximum fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. In addition, the United States will seek forfeiture of any proceeds derived from the offenses and any property used to facilitate the commission of the offenses.
Acting U.S. Attorney Honig credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, 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 Anthony P. Torntore and David E. Malagold of the U.S. Attorney’s Office Cybercrime Unit and Sarah Devlin, Chief of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
New Jersey Man Charged with Fraudulently Obtaining More Than $150,000Read the Press Release
NEWARK, N.J. B A Camden, New Jersey, man was arrested this morning for fraudulently obtaining more than $150,000, Acting U.S. Attorney Rachael A. Honig announced.
Alfred Powner II, 39, is charged by complaint with one count of wire fraud. He is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge James B. Clark III.
According to the complaint:
The State of New Jersey, Unclaimed Property Administration (UPA), maintains a system to collect and maintain “abandoned” funds owed to New Jersey persons and entities. The UPA’s online website allows users to verify whether the UPA is holding funds for a particular person or entity. A person or entity seeking to claim funds held by the UPA on its behalf can use the UPA’s online portal to request a distribution of funds. From September 2019 through March 2020, Powner submitted a fraudulent application and other fraudulent information to the UPA in support of his claim for a distribution. As a result, Powner received approximately $150,000 from the UPA.
The New Jersey Department of Labor & Workforce Development (NJDOL) administers and manages unemployment insurance benefit (UIB) programs. Records revealed that NJDOL caused approximately $5,000 to be sent to a bank account Powner controlled in response to a claim for UIBs. NJDOL also received two additional UIB claims, from purportedly separate claimants, that requested that UIB funds be sent to Powner’s bank account. The three individuals whose names were used to make these UIB claims were deceased at the time the UIB claims were made.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross profits to Powner or twice the gross loss suffered to the victims of his offense, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka, in Manhattan, New York, special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark, and special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s arrest. She also thanked New Jersey’s Unclaimed Property Administration and the New Jersey Department of Labor & Workforce Development for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
New Jersey Man Indicted for Attempting to Hire A Hitman on Dark Net to Murder A 14-Year Old ChildRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man under investigation by the Atlantic County Prosecutor’s Office for child pornography-related offenses was indicted today for allegedly paying $20,000 in bitcoin to have the 14-year old child victim murdered, Acting U.S. Attorney Rachael A. Honig announced.
John Michael Musbach, 31, of Haddonfield, was charged by indictment with one count of murder-for-hire and will be scheduled for an arraignment at a later date.
According to documents filed in this case, and statements made in court:
In the summer of 2015, Musbach began communicating via an Internet Relay Chat (IRC) website with his victim, who was 13 years old at the time. Musbach began using those IRC conversations to request and receive sexually explicit videos and photographs of the minor victim and to send to the victim sexually explicit videos and photographs of himself.
In September 2015, the victim’s parents discovered the nature of Musbach’s communications with the victim and notified local law enforcement officers in the State of New York, where the victim resided. Officers began investigating Musbach’s conduct and called Musbach to notify him that he was under investigation for his online sexual contact with the victim and that he was to stay away from the victim. Upon identifying Musbach as a resident of Atlantic County, New Jersey, New York law enforcement officers reached out to the Atlantic County Prosecutor’s Office (ACPO), which continued the investigation.
On March 31, 2016, officers from the ACPO arrested Musbach on child pornography charges and executed a search warrant at his residence, then in Galloway, New Jersey. Law enforcement officers seized Musbach’s cellular telephone and his business. Musbach admitted to having sent sexually explicit images and videos of himself to the victim and having requested and received sexually explicit images and videos from the victim, all while knowing that the victim was 13-years old.
On Oct. 11, 2017, Musbach pleaded guilty to endangering the welfare of a child (the victim) by sexual contact and was sentenced on Feb. 9, 2018, by a New Jersey Superior Court Judge, to a two-year suspended sentence with parole supervision for life.
In 2019, a cooperating informant began providing law enforcement with messages between Musbach and a murder-for-hire website, which operated on the dark net, and which purported to offer contract killings or other acts of violence in return for payment in cryptocurrency.
Those messages revealed that in May 2016, Musbach attempted to arrange a murder-for-hire through the website. He asked if a 14-year-old was too young to target, and upon hearing that the age was not a problem, paid approximately 40 bitcoin (approximately $20,000) for the hit. Musbach repeatedly messaged the website’s administrator following up on the hit and asking when it would occur. When pressed for an additional $5,000 to secure the hit, Musbach eventually sought to cancel and asked for a refund of his $20,000. The website’s administrator then revealed that the website was a scam and threatened to reveal Musbach’s information to law enforcement.
Agents were able to confirm Musbach’s identity through several means, including linking him to the same screen name he used to communicate with the murder-for-hire website and also by tracing the flow of monies from Musbach’s bank account to the purchase of bitcoin used to pay for the hit.
The charge of use of interstate commerce facilities in the commission of murder-for-hire is punishable by a maximum potential penalty of 10 years in prison and a fine of the greater of $250,000, twice the gross profits to Musbach or twice the gross losses to the victim of his offense.
Acting U.S. Attorney Honig credited special agents of Homeland Security Investigations, in Newark, under the direction of Special Agent in Charge Jason Molina, and in St. Paul, Minnesota, under the direction of Special Agent in Charge Tracy Cormier, with the investigation. She also thanked the Atlantic County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig in Camden.
The charge and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Rocco C. Cipparone, Jr., Esquire, of Haddon Heights, NJ.
Monmouth County Man Admits Posing as Teenager on Facebook to Induce Minor to Send Sexually Explicit Pictures and VideosRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted to knowingly receiving child pornography, Acting U.S. Attorney Rachael A. Honig announced today.
Herman Christopher Jensen, 68, of Union Beach, New Jersey, pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to an information charging him with one count of knowingly receiving child pornography.
According to the documents filed in this case and statements made in court:
Special agents of the FBI began investigating Jensen for assuming the identity of a 17-year-old boy to entice and solicit an underage girl to send nude and sexually explicit images over the internet. Jensen did this by creating a fake Facebook account, purporting to be a teenaged boy named “Kevin Bennett.” From January 2018 through August 2018, Jensen used the “Kevin Bennett” Facebook account to communicate with the victim frequently, causing her to believe that she was involved in a romantic relationship with “Kevin Bennett.”
Jensen requested nude and semi-nude photographs from the victim through Facebook’s messenger service and the victim sent him images. Jensen received increasingly explicit videos depicting the victim engaging in sexually explicit activity.
In August of 2018, Jensen revealed to the victim that he was not the 17-year-old boy he purported to be, but instead an adult named Chris Jensen. The victim continued to communicate with Jensen via the “Chris Jensen” Facebook account. In December 2018, the victim traveled to New Jersey to live with Jensen. On Dec.19, 2018, local authorities removed the victim from Jensen’s residence.
The charge of knowingly receiving child pornography carries a minimum sentence of five years and a maximum of 20 years in prison, and a statutory maximum fine equal to the greatest of $250,000, or twice the gross amount of any pecuniary gain or loss, whichever is greater. Sentencing is scheduled for September 14, 2021.
Acting U.S. Attorney Honig credited special agents and task force officers of the FBI and the Red Bank Resident Agencies Jersey Shore Gang and Criminal Organization Task Force, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked the Union Beach, New Jersey, Police Department, under the direction of Chief of Police Michael J. Woodrow, for assistance in the investigation.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Frauds Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: John C. Feggeler Esq., Matawan, New Jersey
Essex County Man Admits Conspiring to Defraud Banks of over $250,000 Using Stolen Credit Cards and Blank ChecksRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted conspiring to defraud two banks of more than $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced.
Allen Varice, 24, of East Orange, New Jersey, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From August 2018 through August 2019, Varice and others engaged in a scheme to use stolen credit cards and checks to fraudulently make purchases and withdraw money from two banks, leaving the banks to bear the losses.
The credit cards were stolen from facilities used by the U.S. Postal Service in Pine Brook and Warren, New Jersey. Because the cards were stolen, they never reached the intended cardholders. After obtaining the stolen cards, Varice and his conspirators 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 postal facilities and never reached their intended recipients. Varice and his conspirators altered the date, payee, and amount of the stolen checks prior to deposit. He and his conspirators would then fraudulently withdraw money at various ATMs from the account holders’ accounts.
Three of Varice’s conspirators – his brother, Alexander Varice, Nasheed Jackson, and Dashawn Duncan – pleaded guilty last month to identical charges and are scheduled to be sentenced in July 2021.
The charge of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for August 18, 2021.
Acting U.S. Attorney Honig credited inspectors of the U.S. Postal Inspection Service, in Newark, under the direction of Acting Inspector in Charge Rodney M. Hopkins, with the investigation leading to today’s guilty plea.
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: Kathleen Theurer Esq., Jersey City, New Jersey
Utah Man Admits Illegal Sale of Sexual Enhancement DrugsRead the Press Release
NEWARK, N.J. – A Utah man today admitted illegally selling erectile dysfunction pills that he falsely marketed as herbal supplements for men, Acting U.S. Attorney Rachael A. Honig announced.
Robert Zeng, 55, of Salt Lake City, Utah, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of introducing a misbranded drug into interstate commerce with intent to defraud and mislead consumers.
According to documents filed in this case and statements made in court:
Zeng was the owner of various businesses, including NutopiaUSA, which sold purported natural supplements online and through e-commerce websites. On Feb. 29, 2020, Zeng imported three kilograms of sildenafil, an active ingredient in the brand name prescription drug Viagra, which is approved by the FDA for the treatment of erectile dysfunction. Zeng used the sildenafil to manufacture an unapproved and misbranded drug named “Mr. Richard Rocks.”
Zeng falsely marketed and labeled Mr. Richard Rocks as a dietary supplement containing only natural ingredients that treated erectile dysfunction, enhanced sexual performance, improved mood, and reduced blood sugar and cholesterol. The labeling for Mr. Richard Rocks did not disclose the presence of sildenafil, reveal the potentially adverse health consequences that may result from using a product containing sildenafil, nor provide adequate directions for use. Zeng sold Mr. Richard Rocks on the Nutopia website and on e-commerce platforms to consumers across the United States, including in New Jersey, without requiring a prescription.
The felony misbranding charge to which Zeng pleaded guilty carries a maximum penalty of three years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss, whichever is greater. Sentencing is scheduled for Aug. 26, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the FDA Office of Criminal Investigations’ New York Field Office, under the direction of Special Agent in Charge Jeffrey J. Ebersole, with the investigation leading to today’s guilty plea. She also thanked the U.S. Attorney’s Office, District of Utah, under the direction of Acting U.S. Attorney Andrea T. Martinez, and the FBI-Utah, under the direction of Special Agent in Charge Dennis W. Rice in Salt Lake City, Utah.
This case originally arose out of the COVID-19 Hoarding and Price Gouging Task Force led by the U.S. Attorney’s Office for the District of New Jersey, which is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
Hidden active pharmaceutical ingredients have been identified in products promoted not only for sexual enhancement, but also for weight loss, bodybuilding and pain relief. The FDA has issued hundreds of public warnings and recall announcements related to these types of fraudulent products. The FDA’s Tainted Products database can help consumers identify some of these potentially harmful products. Even if a product is not included in the list, consumers should be cautious about using these products.
Union County Man Arrested for Robbing BankRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was arrested today for robbing a bank in Rutherford, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Senenca Wilson, aka “Seneca Wilson,” 42, of Clark, New Jersey, was arrested today and charged by complaint with one count of bank robbery. He is scheduled to make his initial appearance by videoconference today before U.S. Magistrate Judge James B. Clark III.
According to documents filed in this case and statements made in court:
On April 7, 2021, at 4:12 p.m., Wilson entered Victim Bank-1 in Rutherford wearing a thin windbreaker over a dark t-shirt with a white logo. Wilson was also wearing a dark New York Yankees baseball cap, sunglasses, a neck gaiter over his face, and a glove on his left hand.
Wilson handed the teller a note demanding money with no straps on the bills. The teller put currency into a white plastic bag that Wilson provided. Wilson took the bag of cash and walked out of the bank. Moments later, a doorbell video camera on a nearby residence recorded footage of Wilson running south down the sidewalk away from Victim Bank-1. A few seconds later, a car registered to Wilson was seen driving away from the area, and .the Yankees baseball cap that Wilson wore during the robbery was found by law enforcement in a recycling bin near Victim Bank-1
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited special agents of the FBI’s Violent Crimes/Interstate Theft Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New Jersey Man Sentenced to 141 Months in Prison for Armed Robbery of BarbershopRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 141 months in prison for robbing a Camden barbershop at gunpoint, Acting U.S. Attorney Rachael A. Honig announced.
Benjamin Daye, 34, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Nov. 23, 2019, Daye entered a barbershop in Camden armed with a loaded handgun. He grabbed a juvenile customer, pointed the gun at the customer’s head, and demanded cash and belongings from employees and customers. Daye fled and was apprehended shortly thereafter next to a bag containing the handgun and the stolen items.
In addition to the prison term, Judge Kugler sentenced Daye to three years of supervised release and ordered Daye to pay restitution in the amount of $1,672 to the victims of his offenses.
This case is 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. For more information about Project Guardian, please see https://www.justice.gov/projectguardian
Acting U.S. Attorney Honig credited special agents of the ATF, under the direction of Acting Special Agent in Charge Craig B. Kailimai; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer, with the investigation leading to today’s sentencing. This investigation was a joint efforts of the ATF Camden Field Office and the Camden County Police Department (CCPD) Shooting Response Team (SRT). ATF and CCPD have formulated a partnership composed of special agents, detectives, and intelligence analysts that investigate shooting incidents in real time.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Gloucester County Man Sentenced to 25 Years in Prison for Production and Distribution of Child PornographyRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 300 months in prison for producing and distributing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Andrew Nicholas, 24, of Williamstown, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of sexually exploiting children and one count of distributing child pornography. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Feb. 26, 2019, an undercover officer entered a public Kik Messenger group and began communicating with Nicholas, who sent the officer images and videos of child sexual abuse involving a prepubescent minor. Nicholas admitted to producing those images and videos of child sexual abuse and sending them to the officer.
In addition to the prison term, Judge Kugler sentenced Nicholas to a lifetime term of supervised release, ordered him to pay restitution of $45,000 to the victims, and ordered him to register as a sex offender.
Acting U.S. Attorney Honig credited special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge Michael J. Driscoll, and the Washington, D.C., FBI Field Office, under the direction of Assistant Director in Charge Steven D’Antuono; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations – Cherry Hill, under the direction of Special Agent in Charge Jason J. Molina in Newark, and detectives with the Gloucester County Prosecutor’s Office, under the direction of Acting County Prosecutor Christine Hoffman, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Martha Nye of the U.S. Attorney’s Office Criminal Division in Trenton.
Two Essex County Men Arrested for Fraudulent Debit Card SchemeRead the Press Release
NEWARK, N.J. – Two Essex County men were arrested today for their roles in a fraudulent debit card scheme, Acting U.S. Attorney Rachael A. Honig announced.
Alateef Perry, 43, of Newark, and Rajohn Dawkins, 25, of Irvington, New Jersey, are charged by complaint with conspiracy to commit access device fraud. Both defendants are scheduled to make initial appearances this afternoon by videoconference before U.S. Magistrate Judge Michael A. Hammer.
According to documents filed in this case and statements made in court:
From July 2019 through March 2020, Perry and Dawkins fraudulently used debit cards in the names of other individuals, without the cardholders’ consent or knowledge, to purchase diesel fuel for commercial truck drivers in exchange for cash. Perry and Dawkins met commercial truck drivers at multiple gas stations in New Jersey, including gas stations located in Hanover and Middlesex. Perry and Dawkins used the unauthorized debit cards to fill the drivers’ commercial trucks with diesel fuel. The truck drivers then typically paid Perry and Dawkins a fraction of the fuel’s purchase price in cash, which Perry and Dawkins pocketed. Perry and Dawkins used over 500 unauthorized debit cards and ultimately stole over $220,000.
The charge of conspiracy to commit access device fraud carries a maximum potential sentence of five years in prison and a maximum potential fine of $250,000, or twice the gross pecuniary gain or loss from the offense, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s arrests. She also thanked inspectors of the U.S. Postal Inspection Service – Newark Division, under the direction of Acting Inspector in Charge Rodney M. Hopkins; the Township of Hanover Police Department, under the direction of Chief Mark D. Roddy, and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance with this investigation.
The government is represented by Assistant U.S. Attorney Samantha C. Fasanello of the Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Ocean County Man Sentenced to 15 Months in Prison for Cocaine DistributionRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 15 months in prison for possessing cocaine with the intent to distribute, Acting U.S. Attorney Rachael A. Honig announced.
Jason Vella, 39, of Toms River, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of possession of cocaine with intent to distribute. Judge Thompson imposed the sentence by videoconference today.
On Sept. 19, 2019, investigators from the Ocean County Prosecutors Office executed a search warrant on Vella’s residence and recovered 150 grams of cocaine, drug paraphernalia, $2,295 in cash and pieces of jewelry.
In addition to the prison term, Judge Thompson sentenced Vella to three years of supervised release.
Acting U.S. Attorney Honig credited the members of the FBI’s Organized Crime Task Force under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and investigators from the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley Billhimer, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel V. Grady O=Malley of the U.S. Attorney=s Office’s Organized Crime/Gangs Unit in Newark.
Camden County Woman Admits Role in Fraudulent Delivery SchemeRead the Press Release
TRENTON, N.J. – A Camden County, New Jersey, woman today admitted receiving hundreds of thousands of dollars of consumer electronics before reselling the stolen goods in connection with a delivery fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.
Yanira Medina-Roman, 36, of West Berlin, New Jersey, pleaded guilty by videoconference before U.S. Senior District Judge Anne E. Thompson 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 July 2018 through October 2018, Medina-Roman and others carried out a delivery fraud scheme targeting a corporate victim and government agency that resulted in the theft of more than $250,000 of consumer electronics. Medina-Roman and her conspirators used Medina-Roman’s residence – then in Highlands, New Jersey – as the delivery address for the stolen goods. Medina-Roman, under the direction of her conspirators, sold the goods for profit either to a fence of stolen goods, or to third parties through a national classified advertisement website, while retaining for herself a portion of the sale proceeds.
A related cyberattack involved the appropriation without authorization of the identity of an employee of a government agency, which Medina-Roman’s conspirators used by manipulating the employee’s government email address to place orders for consumer electronics and gift cards with a corporate victim located in Maryland. The Maryland corporate victim, believing the emails were authentic and sent by the government employee, with whom the corporate victim had a prior business relationship, was deceived into delivering the consumer electronics to Medina-Roman’s residential address.
The conspiracy charge to which Medina-Roman pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss. Sentencing is scheduled for Aug. 10, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the U.S. Secret Service, under the direction of Special Agent In Charge Mark McKevitt; special agents of the Defense Criminal Investigative Service – Cyber Field Office, under the direction of Special Agent in Charge Kenneth A. DeChellis; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia; and officers of the Highlands, New Jersey, Police Department, under the direction of Chief Robert Burton, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Eric A. Boden of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Atlantic County, New Jersey, Man Sentenced to 210 Months in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced today to 210 months in prison for his role in distributing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Carlos Santiago-Gomez, 31, of Absecon, New Jersey, previously pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to one count of distributing images of child pornography. U.S. District Judge Robert B. Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On March 27, 2018, law enforcement officers from the FBI’s Atlantic City Child Exploitation Task Force executed a search warrant at Santiago-Gomez’s residence in Absecon, New Jersey, and seized multiple items of digital evidence, including cell phones, CDs, thumb drives, hard drives and computers, which contained thousands of images of child sexual abuse. Agents also located evidence showing that in July and August 2017, Santiago-Gomez posted videos of child sexual abuse on at least two KIK instant message groups, while also acting as the administrator of one of those groups.
In addition to the prison term, Judge Kugler sentenced Santiago-Gomez to 10 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 N.J. State Police, under the direction of Col. Patrick J. Callahan; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; and N.J. Human Services Police, under the direction of Director Timothy J. Gallagher, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
Long-Time Fugitive Admits Participation in Scheme to Steal 94,000 Debit and Credit Cards from Michaels’ Stores in 19 StatesRead the Press Release
CAMDEN, N.J. – A California man today admitted his role in a large-scale conspiracy to steal 94,000 credit and debit cards from customers at approximately 80 Michaels’ Stores in 19 states and to then use that information to make fraudulent withdrawals from the bank accounts of those customers, Acting U.S. Attorney Rachael A. Honig announced.
Jose Salazar, aka “Tito,” 44, of Riverside, California, was indicted in 2015 and has been a fugitive. He was apprehended in Mexico City in September 2020 and returned in January 2021 via Philadelphia International Airport, where he was arrested. Salazar pleaded guilty today by videoconference before U.S. District Judge Joseph H. Rodriguez to Count 1 of an indictment charging him with conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
The conspirators installed devices that acquired customers’ bank account and personal identification number (PIN) information on point of sale (POS) terminals at stores operated by Michaels. The stolen account information was used to produce counterfeit bank cards, which were used with the stolen PINs to withdraw funds from the compromised bank accounts.
The conspirators allegedly replaced POS terminals in 80 different stores operated by Michaels across 19 states, including New Jersey, with counterfeit POS devices. Each counterfeit device was equipped with wireless technology, which the conspirators used to retrieve the stolen information. From February 2011 to April 2011, conspirators stole approximately 94,000 debit and credit card account numbers.
In 2011, Salazar recruited individuals to participate in the conspiracy. From April 2011 to May 2011, Salazar, Angel Angulo and others obtained counterfeit cards with the corresponding PIN numbers written on them from other conspirators. They used the cards and PIN numbers to withdraw money using automated teller machines (ATMs) from hundreds of bank accounts. Angulo pleaded guilty on June 20, 2017, and was sentenced on March 15, 2018, to three years in prison.
The charge of conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Aug. 10, 2021.
Acting U.S. Attorney Rachael A. Honig credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Henry in Philadelphia, for the investigation leading to today’s guilty plea. She also thanked special agents with the U.S. Marshal Service, under the direction of Juan Mattos, and the International Criminal Police Organization for their assistance.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
California Man Sentenced to Four Years in Prison for Role in $1.3 Million Bank Fraud SchemeRead the Press Release
CAMDEN, N.J. – A California man was sentenced today to 48 months in prison for his role in a bank fraud scheme resulting in approximately $1.3 million in losses, Acting U.S.Attorney Rachael Honig announced.
Adam D. Arena, 44, previously pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an indictment charging him with bank fraud and conspiracy to commit bank fraud. Judge Hillman imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Between 2016 and 2018, Arena conspired with Larry McGee and Dwayne Modeliste to execute a scheme to defraud Synchrony Bank. Arena obtained the personally identifiable information of others, most of whom were incarcerated individuals. Arena and his conspirators then used those individuals’ personal information to obtain credit cards from Synchrony Bank. Arena and his conspirators submitted to Synchrony Bank merchant applications so those enrolled merchants could accept Synchrony credit cards as a form of payment. After Arena and his conspirators enrolled the merchants with Synchrony Bank, they used the fraudulently obtained credit cards to conduct fraudulent transactions at the merchants. The fraudulent proceeds of those transactions were deposited into bank accounts controlled by Arena and his conspirators.
In addition to the prison term, Judge Hillman sentenced Arena to three years of supervised release. He also ordered Arena to make restitution to Synchrony Bank in the amount of $1.3 million and ordered forfeiture in the amount of $608,282.
Acting U.S. Attorney Honig credited special agents of FBI, under the direction of Special Agent in Charge George M. Crouch Jr., 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’s National Security Unit in Newark.
Union County Man Admits to Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man pleaded guilty today to possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Andrew Chu, 30, of Garwood, New Jersey, pleaded guilty by videoconference before U.S. District Judge William J. Martini to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
In February 2018, Chu downloaded approximately 90 videos depicting the sexual abuse of children from a website on the darknet.
The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 26, 2021.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Cybercrime Unit in Newark.
New Jersey Man Admits Operating Illegal Bitcoin ExchangeRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man today admitted operating an illegal bitcoin exchange, Acting U.S. Attorney Rachael A. Honig announced.
William Green, 53, of Wall, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to Count 1 of an indictment charging him with operating an unlicensed money transmitting business.
According to documents filed in this case and statements made in court:
From August 2017 through February 2019, Green operated a website called “Destination Bitcoin.” Through the website and various referrals, Green received money from members of the public through cash, wire transfers into bank accounts controlled by Green, and online payment processors. Green then converted the funds to bitcoin and transferred the bitcoin to bitcoin wallet addresses provided by the customers. Green charged the customers a fee for this service.
Federal law provides that any person who owns or controls a money transmitting business shall register the business (whether the business is licensed as a money transmitting business in any state) with the Secretary of the Treasury. Green admitted today that he knew he was required to register his business with the Secretary of the Treasury and that he failed to do so.
The unlicensed money transmitting charge to which Green pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 10, 2021.
Acting U.S. Attorney Honig credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Matthew Feldman Nikic of the U.S. Attorney’s Cybercrime Unit in Newark.
U.S. Attorney’s Office Prosecutes COVID-19 Fraud and Price-Gouging of Personal Protective EquipmentRead the Press Release
NEWARK, N.J. – Acting U.S. Attorney Rachael A. Honig today announced an update on the Office’s enforcement efforts to combat COVID-19 related fraud, including schemes targeting the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, and Unemployment Insurance (UI) programs, and schemes involving the price-gouging and hoarding of critical personal protective equipment
In the past year, the U.S. Attorney’s Office for the District of New Jersey has charged 18 defendants, including individuals and companies, with offenses based on fraud schemes, price-gouging, hoarding, and other crimes connected to the COVID-19 pandemic.
“Exploitation of the global pandemic for illicit financial gain victimizes consumers, taxpayers, and federal programs alike,” Acting U.S. Attorney Honig said. “We are working with our law enforcement partners to investigate these schemes and bring to justice all those who would try to take advantage of the programs established by Congress to help America through the pandemic. We will vigorously pursue anyone trying to steal from those programs, engage in the hoarding or price-gouging of necessary personal protective equipment, or otherwise defraud the public.”
Most recently, three defendants were charged last month in connection with an EIDL scheme: George Leguen, 46, of Paramus, New Jersey, and Shyteek Stevenson, 30, of Harrisburg, Pennsylvania, were charged in separate complaints with one count each of wire fraud and money laundering. Marc Orival, 37, of College Park, Georgia, is charged in a third complaint with two counts each of wire fraud and money laundering.
Congress passed a $2.2 trillion economic relief bill known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. The Act is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Anticipating the need to protect the integrity of these taxpayer funds and to otherwise protect Americans from fraud related to the COVID-19 pandemic, the Department of Justice immediately stood up multiple efforts dedicated to identifying, investigating, and prosecuting such fraud. The U.S. Attorney’s Office for the District of New Jersey continues to lead the Department of Justice’s Hoarding and Price-Gouging Task Force.
Other cases charged in New Jersey include:
Date of Charge
Lead Defendant
3/30/2020
Baruch Feldheim
3/30/2020
Erik Santos
6/5/2020
King Year Packaging and Printing
6/17/2020
Crawford Technology Group
8/14/2020
CSG Imports LLC and KG Imports LLC
9/3/2020
Jae Choi
9/17/2020
Jeffrey Bennett
9/29/2020
Dang Chanchai
10/21/2020
Jefferson Robert
10/23/2020
Justin Ezeiruaku
11/19/2020
Rocco Malanga
12/14/2020
Azhar Rana
12/16/2020
Maurice Mills
1/20/2021
Gauravjit Singh
3/18/2021
John Jhong
To learn more about the department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Trenton Man Charged with Assaulting and Robbing Federal Agent at GunpointRead the Press Release
TRENTON, N.J. –A Trenton man was charged today with assaulting a federal agent with a deadly weapon, armed robbery, and discharging a firearm during and in relation to a crime of violence, Acting U.S. Attorney Rachael A. Honig announced.
Jabree Johnson, 28, of Trenton, is charged by complaint with one count of assault on a federal officer with a deadly weapon, one count of robbery with a dangerous weapon of an individual with custody of federal property, and one count of using and carrying a firearm during and in relation to a crime of violence, in which the firearm was discharged. Johnson is currently in custody on related charges filed by the Mercer County Prosecutor’s Office in connection with the assault. He will make his initial appearance by videoconference before U.S. Magistrate Judge Zahid N. Quraishi on a date to be determined.
According to documents filed in this case and statements made in court:
On March 22, 2021, federal law enforcement officers were investigating firearms trafficking and other illegal activities in Trenton and Hamilton, New Jersey. An undercover federal law enforcement agent arranged to purchase multiple firearms from an individual later identified as Johnson.
After arriving at an agreed-upon location for the firearms transaction, Johnson entered the undercover federal agent’s vehicle and handed the agent a black, semi-automatic firearm. The undercover federal agent inspected the firearm and then returned it to Johnson, and requested to see the other firearms that Johnson had agreed to sell. Instead, Johnson pointed the loaded firearm directly at the undercover federal agent and demanded money from the agent. In response, the undercover federal agent provided Johnson with an amount of U.S. currency. Johnson then ordered the undercover federal agent out of the vehicle at gunpoint. The agent exited the vehicle as ordered, drew a service-issued firearm, and fired at Johnson, striking Johnson in the shoulder. Johnson fired his handgun multiple times at the undercover federal agent before fleeing the area. Johnson was later identified at a local hospital as the individual who had assaulted and robbed the undercover federal agent at gunpoint.
The charge of assault on a federal officer with a deadly weapon carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of robbery of federal property with a dangerous weapon carries a maximum potential penalty of 25 years in prison and a $250,000 fine. The charge of using and carrying a firearm during and in relation to a crime of violence carries a statutory mandatory minimum sentence of 10 years in prison, which must run consecutive to any other sentence imposed, and a maximum of life in prison.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Field Office, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Hamilton Township Police Department, under the direction of Police Chief James Stevens; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan, and detectives and prosecutors of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Eric A. Boden and Special Assistant U.S. Attorney Katie Magee Lee of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New York Man Charged with Attempted Sex Trafficking of Two MinorsRead the Press Release
NEWARK, N.J. – A New York man is scheduled to make his initial appearance today on charges that he attempted to engage in sex trafficking of two minors and transported the minors to engage in unlawful sexual activity, Acting U.S. Attorney Rachael A. Honig announced.
Berry Norman, 32, is charged in a three-count complaint with attempted sex trafficking of two minors and transporting the minors to engage in unlawful sexual activity. He is scheduled to appear by videoconference before U.S. Magistrate Judge Cathy L. Waldor this afternoon.
According to documents filed in this case and statements made in court:
On Feb. 24, 2021, Norman enticed the victims, both minors, to travel with him from Ohio to New Jersey. On Feb. 25, 2021, Norman housed the victims in a hotel in Hudson County, New Jersey. Norman allegedly attempted to convince the victims to engage in commercial sex acts. Norman told the victims that they could “get paid” for having sex with men and for performing sexually explicit “shows” on the computer. The victims declined. On Feb. 27, 2021, Norman engaged in sex acts with one victim.
On Feb. 28, 2021, Norman transported the victims to another hotel in New York. Norman purchased lingerie for the victims. When they returned to the hotel room, Norman allegedly encouraged the victims to put on the lingerie and perform sexual acts while a computer live-streamed the victims over the Internet. The victims declined again. Later that evening, one victim observed a laptop that was on and streaming a video of the victims in the hotel room. The victim contacted a relative for help. In turn, the victim’s relative contacted law enforcement, leading to Norman’s arrest.
Each count of attempting to engage in sex trafficking with a minor and transportation of a minor to engage in unlawful sexual activity carries a statutory mandatory minimum penalty of 10 years in prison and a maximum of life in prison.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina; members of the New York City Police Department, under the direction of Chief Terence A. Monahan; and members of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Kimberly Mitchell of the OCDETF/Narcotics Unit in Newark.
Statement of Acting U.S. Attorney Rachael A. Honig Regarding Bias-Motivated Violence and Other Civil Rights ViolationsRead the Press Release
NEWARK, N.J. – Acting U.S. Attorney Rachael A. Honig and FBI Newark Field Division Special Agent in Charge George M. Crouch Jr., today reiterated federal law enforcement’s commitment to investigating and prosecuting all acts of bias-motivated violence and other deprivations of individuals’ civil rights, including crimes committed on the basis of race, ethnicity, religion, sex, national origin, disability, sexual orientation, or gender identity.
“Some of the darkest hours that we have lived through recently as New Jersey residents have involved the horror of violence based on hate,” Acting U.S. Attorney Honig said. “We have seen anti-Semitic violence in Jersey City and a gender- and race-based attack at the home of a federal judge. Now, we face a rising tide of hatred directed at Asian-Americans. New Jersey is one of the most diverse states in the country, and this kind of hate should find no home here. We urge the community to report hate-based crimes to the FBI and to contact our office’s civil rights hotline with information about discrimination in housing, employment, education, or public accommodations.”
“Hate crimes are not only an attack on an individual, but an entire community,” FBI Special Agent in Charge Crouch said. “Investigating these crimes is one of the FBI’s highest priorities. We will work diligently with our law enforcement partners to protect the rights of all Americans.”
The U.S. Attorney’s Office for the District of New Jersey employs four Assistant U.S. Attorneys dedicated full-time to federal civil rights enforcement: three in the Civil Rights Unit of the Civil Division, and one Senior Civil Rights Counsel in the Criminal Division. The Office works closely in these matters with the Civil Rights Division of the Department of Justice. In the past several years, the Office has brought multiple civil and criminal cases based on federal civil rights laws and has been recognized by the Executive Office of U.S. Attorneys with two Director’s Awards for its work in this area. These Assistant U.S. Attorneys also conduct frequent community outreach, including outreach focused on organizations serving women, people of color, religious groups, and the LBGTQ+ community.
Acting U.S. Attorney Honig and Special Agent in Charge Crouch urged all New Jersey residents to report hate-based crimes to law enforcement. Members of the public who have a civil rights concern or complaint should contact the U.S. Attorney’s Office through its civil rights hotline, which can be reached at 855-281-3339, or by filling out the following form on the Office’s website: /media/1184596/dl?inline. The FBI’s Newark Field office can be reached at (973) 792-3000.
The most recent statistics maintained by the FBI on hate crimes are available here: https://ucr.fbi.gov/hate-crime/2019/hate-crime. Additional resources regarding hate crimes and bias incidents can be found by visiting these links: https://civilrights.justice.gov/#your-rights and https://fbi.gov/investigate/civil-rights/hate-crimes#FBI-Resources.
For additional information about the U.S. Attorney’s Office in the District of New Jersey visit: www.justice.gov/usao-nj/.
Middlesex County Man Admits Interfering with Law Enforcement Officers During Civil DisorderRead the Press Release
TRENTON, N.J. – A Middlesex 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 Trenton, Acting U.S. Attorney Rachael A. Honig announced.
Justin D. Spry, 22, of South Plainfield, New Jersey, pleaded guilty by videoconference 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 Kadeem Dockery light an explosive device and throw it through the open front driver’s side window of a Trenton Police Department vehicle. Dockery then removed his shirt and handed it to Killian Melecio, who then attempted to stuff the shirt in the gas tank of the police vehicle and ignite it. Melecio was then assisted by Spry in attempting to set fire to the police vehicle. Law enforcement officers on scene arrested Spry, but Melecio and Dockery fled. Law enforcement later identified Melecio and Dockery through analysis of street camera and other video footage. They were arrested on Aug. 5, 2020.
Melecio pleaded guilty on Jan. 26, 2021, to one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce.
The charge of attempting to interfere with law enforcement officers during a civil disorder to which Spry and Melecio have pleaded guilty carries a maximum penalty of five years in prison and a maximum fine of $250,000. Sentencing for Spry is scheduled for Aug. 3, 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 Sheilah Coley; 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.
The charges and allegations remaining against Kadeem Dockery are merely accusations, and he is presumed innocent unless and until proven guilty.
Former Princeton Resident Charged in Connection with Multimillion-Dollar Schemes Involving Securities Fraud, Credit Card Fraud, and Business E-Mail Compromise FraudRead the Press Release
TRENTON, N.J. – A former Princeton resident was arrested today and charged with engaging in multiple fraudulent schemes intended to steal millions of dollars from individual and institutional victims, Acting U.S. Attorney Rachael A. Honig announced.
Ford Graham, 57, formerly of Princeton, New Jersey, was arrested today in Nellysford, Virginia, and charged by criminal complaint with two counts of wire fraud, one count of conspiracy to commit wire fraud, one count of securities fraud, three counts of aggravated identity theft, and one count of engaging in unlawful money transactions. Graham made his initial appearance before U.S. Magistrate Judge Joel Hoppe in Harrisonburg, Virginia, federal court. Graham will make his initial appearance in U.S. District Court for the District of New Jersey on a date to be determined.
According to documents filed in this case and statements made in court:
From December 2012 to September 2013, Graham represented himself as the owner, chief executive, chairman, manager, and principal member of dozens of corporate entities purporting to do business under an umbrella organization, Vulcan Capital Corp. (Vulcan). Graham held himself out as a highly successful financier who had vast experience sponsoring complex energy and natural resource projects and other investment deals. In connection with one such investment that Graham and a Vulcan entity sponsored, one victim (Victim-1) invested more than $2 million with Graham, relying on Graham’s misrepresentations and omissions regarding the investment. The investigation revealed that Graham misappropriated substantial amounts of Victim-1’s investment money and used it for his own personal benefit and enrichment – including international vacations, private school tuition for his children, and other personal amenities – instead of the investment purpose that Graham had marketed. Graham caused multiple victims to lose more than $2.6 million.
Graham also participated in a scheme to defraud merchant processing institutions through fraudulent credit card transactions. From December 2017 to February 2018, Graham used at least one payment processing platform to process fraudulent charges on stolen credit card numbers that he obtained. After the payment processing platform credited Graham’s account with the payments requested, Graham quickly transferred or caused to be transferred the fraudulently obtained money to other accounts before the victim institutions could act. When requested by the victim payment processing company to provide supporting documentation, Graham submitted false documentation, including fabricated invoices and credit card authorization forms, fabricated e-mails, forged signatures, altered bank statements, and other false and fraudulent information. This scheme resulted in tens of thousands of dollars of losses and the misappropriation of multiple victims’ personal identification information.
From February 2017 to June 2018, Graham conspired with others to defraud victim institutions and individuals of millions of dollars through a business email compromise scheme. Members of the conspiracy sent fraudulent e-mail communications to victims who were scheduled to make substantial outgoing wire transfers to third parties. These fraudulent e-mails created the appearance that they had been sent by the intended third-party recipients of the scheduled payments when, in fact, they were sent by members of the conspiracy. The fraudulent emails requested the victims to reroute the scheduled payments to different bank accounts, which Graham and his conspirators controlled. In one instance, a fraudulent email successfully induced one victim unknowingly to reroute a payment of more than $650,000 to a bank account that Graham controlled. Upon receiving the funds, Graham transferred or caused to be transferred substantial portions of those funds to other accounts that he controlled, and which he used and intended to use for his own personal benefit. Graham and his conspirators attempted to defraud multiple victims of at least $6 million.
The wire fraud and wire fraud conspiracy counts each carry a maximum potential penalty 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. The securities fraud count is punishable by a maximum potential penalty of 20 years in prison and a $5 million fine. Each count of aggravated identity theft is punishable by a statutory mandatory consecutive sentence of two years, which must run consecutive to any other sentence. The charge of engaging in unlawful monetary transactions carries a maximum potential penalty of 10 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense or not more than twice the amount of the criminally derived property involved in the transactions.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins, with the investigation leading to today’s charges. Acting U.S. Attorney Honig also thanked investigators with the New Jersey Bureau of Securities, under the direction of Chief Christopher W. Gerold, for their assistance in connection with the investigation.
The government is represented by Assistant U.S. Attorneys J. Brendan Day, Attorney-in-Charge of the Trenton Branch Office, and Martha K. Nye, of the Criminal Division in Trenton.
Pennsylvania Man Admits Role in $4.6 Million Kickback Scheme Related to Genetic TestingRead the Press Release
NEWARK, N.J. – A Pennsylvania man today admitted his role in a conspiracy to receive kickbacks and bribes from laboratories in exchange for referrals of patient DNA samples and genetic tests, Acting U.S. Attorney Rachael A. Honig announced.
Jeremy Richey, 40, of Mars, Pennsylvania, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a superseding information charging him with conspiracy to commit an offense against the United States in connection with a scheme to violate the Anti-Kickback Statute. Richey and five co-defendants were previously charged by indictment in September 2019 in connection with the conspiracy and a related health care fraud scheme.
According to documents filed in this case and statements made in court:
Richey and certain conspirators operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Through Ark, Richey and others submitted or caused to be submitted referrals for genetic tests and patients’ DNA samples to various clinical laboratories across the country. Richey and certain conspirators entered into kickback agreements with certain clinical laboratories under which the laboratories paid Ark bribes in exchange for delivering DNA samples and orders for genetic tests. Ark concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received from Medicare or an amount paid for each DNA sample. From January 2018 through January 2019, Medicare paid these laboratories at least approximately $4.6 million for genetic tests that resulted from the referrals and DNA samples that Ark delivered to the laboratories in exchange for bribes. In turn, the laboratories paid Ark at least $1.8 million in bribes.
The charge to which Richey pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross grain or loss from the offense. Richey’s sentencing is scheduled for Aug. 9, 2021.
Co-defendants Kacey C. Plaisance, of Altamonte Springs, Florida; Kyle D. McLean, of Arlington Heights, Illinois; and Edward B. Kostishion, of Lakeland, Florida, previously pleaded guilty. Plaisance is scheduled to be sentenced on June 21, 2021. McLean is scheduled to be sentenced on July 26, 2021. Kostishion is scheduled to be sentenced on July 26, 2021.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Supervisory Special Agent Thomas J. Mahoney, with the investigation leading to today’s guilty plea.
The government is represented by Bernard J. Cooney, Chief of the Government Fraud Unit, and Assistant U.S. Attorney José R. Almonte of the Health Care Fraud Unit in Newark.
The charge and allegations against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
New York Man Sentenced to 33 Months in Prison for Participating in Multimillion-Dollar Credit and Gift Card Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 33 months in prison for participating in a scheme to buy and sell over $2 million in stolen property, Acting U.S. Attorney Rachael A. Honig announced.
James Olla, 29, of Brooklyn, New York, previously pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to a superseding indictment charging him with conspiracy to sell, receive or possess stolen goods. Judge Vazquez sentenced Olla today by videoconference.
According to documents filed in this case and statements made in court:
From January 2014 through June 2015, Olla and others procured stolen information related to credit cards belonging to various individuals, including victims living in New Jersey. Using this stolen information, Olla and his conspirators obtained gift cards from various retailers and then sold the cards on the streets of Brooklyn and elsewhere, often for large sums of cash. In total, Olla’s scheme resulted in losses to financial institutions of $2,041,977.
In addition to the prison term, Judge Vazquez sentenced Olla to three years of supervised release, ordered him to forfeit certain property, and pay restitution of $689,124.
Acting U.S. Attorney Honig credited special agents of FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins in Newark; and the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s sentencing.
The government is represented by Cybercrime Unit Chief David W. Feder and Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
Second California Man Charged with Conspiracy to Launder Proceeds of Fraud Schemes Targeting New Jersey Law Firm and SBA LoansRead the Press Release
NEWARK, N.J. – A second man from California has been charged with conspiring to launder money that originated from fraudulently obtained loans from the U.S. Small Business Association and from a business email compromise scheme that targeted a law firm based in New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Anthony Debose Hannah, 57, of Moreno Valley, California, is charged by complaint with one count of money laundering conspiracy. Hannah was taken into custody this morning in California and is scheduled to appear by videoconference today before U.S. Magistrate Judge Shashi H. Kewalramani in Riverside, California, federal court.
According to documents filed in this case and statements made in court:
In June 2020, Victim 1 communicated via email with a law firm in New Jersey that was helping Victim 1, a resident of Bergen County, New Jersey, with a real estate transaction. One of the law firm’s email accounts was compromised and someone purporting to be emailing on behalf of the law firm sent instructions to Victim 1 to wire approximately $560,000 into an escrow account under the name “Eric’s Commercial LLC.” Victim 1 wired approximately $560,000 into a business bank account controlled by Eric Bullard, Hannah’s conspirator. Victim 1 did not intend for the money to be transferred to Bullard and sent the wire transfer to Bullard’s account under the belief that the wire instructions had come from the New Jersey law firm.
Shortly after the $560,000 was transferred into the Eric’s Commercial LLC bank account, approximately 10 cash withdrawals were made from the account totaling $96,275. On June 14, 2020, three large wire transfers totaling approximately $460,000 were made from the Eric's Commercial Bank Account to other bank accounts. One of those transfers was a wire transfer of approximately $230,000 to an account in the name of “Anthony Property Management & Development,” an account controlled by Hannah. Hannah opened the Anthony Property Management account on May 18, 2020, and was the sole signatory on the account.
On June 15, 2020, approximately $230,000 was transferred from the Anthony Property Management account to another business account that does not appear to be controlled by Hannah or Bullard.
In addition to laundering of the proceeds from the business email compromise, Bullard and Hannah also obtained and laundered funds from the U.S. Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. In July 2020, Hannah received into a business bank account that he controlled $145,400 from an SBA EIDL loan intended for a pharmacy company with a listed location in Idaho, some of which he shared with Bullard. Bullard also received a $143,100 SBA EIDL loan intended for a pharmacy company with a listed location in Colorado. A few days later, Bullard wrote a check to Hannah for $51,000. In addition to the SBA loan money, Hannah also received payments from the Illinois Department of Employment Security.
Bullard was arrested on similar charges last week in California and was ordered detained; he is pending transfer to the District of New Jersey.
The count of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of up to $500,000 or twice the value of the monetary instrument or funds involved in the transfer, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the Cybercrime Unit in Newark.
The charges and allegations in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Essex County Felon Sentenced Three Years in Prison for Firearm PossessionRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man previously convicted of multiple felonies was sentenced today to 36 months in prison for possessing a firearm and ammunition, Acting U.S. Attorney Rachael A. Honig announced.
Sharif Clarke, 39, of Irvington, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to count one of an indictment charging him with being a felon in possession of a weapon. Judge Martinotti imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On Dec. 3, 2018, Clarke possessed a Glock .40-caliber handgun loaded with nine rounds of Remington ammunition. At that time, Clarke had previously been convicted in Essex County Superior Court of resisting and eluding arrest and of possession of a controlled substance on school property, both of which are felonies.
This case is 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 ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
In addition to the prison term, Judge Martinotti also sentenced Clarke to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the leadership of Special Agent in Charge Charlie J. Patterson, and the Newark Department of Public Safety, under the leadership of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Cybercrime Division in Newark.
Virginia Man Arrested for Gun Trafficking in South JerseyRead the Press Release
CAMDEN, N.J. – A Virginia man was arrested and charged with gun trafficking and possession of firearms by a felon, Acting U.S. Attorney Rachael A. Honig announced today.
Markell Pooler, 26, of Norfolk, Virginia, is charged by complaint with one count of dealing in firearms and two counts of possession of firearms by a convicted felon. He appeared by videoconference this afternoon before U.S. Magistrate Judge Ann Marie Donio and was detained without bail.
According to documents filed in this case and statements made in court:
Pooler was identified as a firearms trafficker who offered to bring guns from pawn shops in Virginia to the Camden area. Between December 2020 and his arrest, Pooler, a convicted felon, obtained handguns in Virginia and sold them in South Jersey. Pooler had in his possession five handguns when he was arrested.
The count of engaging in the business of unlicensed firearms dealing and travelling across state lines to do so carries a maximum potential penalty of 15 years in prison and a $250,000 fine. The counts of possession of a firearm by a felon each carry a maximum potential penalty of 10 years in prison and a $250,000.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Camden Field Office, under the direction of Special Agent in Charge of Charlie J. Patterson in Newark; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Gloucester County Prosecutor’s Office, under the direction of Acting County Prosecutor Christine Hoffman; and the Woodbury Police Department, under the direction of Chief Thomas R. Ryan, with the investigation leading to the charges.
This case is 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. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian
The government is represented by Assistant U.S. Attorney Alisa Shver of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Nine Essex County Individuals Charged with Conspiracy to Distribute NarcoticsRead the Press Release
NEWARK, N.J. – Nine Newark residents were charged for their roles in conspiracies to distribute and possess with intent to distribute narcotics, Acting U.S. Attorney Rachael A. Honig announced today.
Robert Covington, aka “Nachie,” 55; Korey Smith, aka “Murda,” 36: Jeffrey Workman, aka “Rah,” 53; Yvonne Jackson, 49; Carlos Stokes, aka “Ab,” 54; Karen Gamble, 50; and Alaa Covington, 21, are charged by criminal complaint with conspiracy to distribute and possess with intent to distribute at least 40 grams of fentanyl. Robert Covington, Workman, Williamson, Stokes, and Gamble are also charged with conspiracy to distribute and possess with intent to distribute cocaine. Smith is additionally charged, along with Leroy Baxter III, 55, and William Lane, 57, with conspiracy to distribute and possess with intent to distribute heroin. Eight of the defendants are expected to appear this afternoon by videoconference before U.S. Magistrate Judge Cathy L. Waldor. Stokes remains at large.
According to the documents filed in this case and statements made in court:
From August 2020 through March 2021, multiple individuals were involved in selling fentanyl and cocaine in an open-air narcotics market in Bradley Court Housing Complex in Newark. These individuals comprise at least two separate drug-trafficking organizations (DTOs), which have overlapping membership.
DTO-1 involved individuals engaged in the distribution of fentanyl and included Robert Covington, Smith, Williamson, Gamble, Workman, Stokes, and Alla Covington. DTO-2 involved individuals engaged in the distribution of cocaine and included Robert Covington, Williamson, Gamble, Workman, and Stokes.
The investigation revealed that Robert Covington was one of the leaders and organizers of DTO-1’s and DTO-2’s distribution of fentanyl and cocaine in or around Bradley Court. Covington purchased powder cocaine and fentanyl from various sources, including Smith; “cooked” powder cocaine into crack cocaine or directed others to do so; used various “stash houses” to store and distribute fentanyl and cocaine and to store narcotics proceeds; and employed multiple drug dealers, including Workman, Williamson, Stokes, and Alaa Covington, among others, to distribute fentanyl and cocaine to the area surrounding Bradley Court.
Smith – the fentanyl supplier for DTO-1 – was also engaged in distributing heroin in and around his residence on Fairmount Avenue in Newark from at least January 2021 to the present, along with Baxter, Lane, and others.
The conspiracy to distribute and possess with intent to distribute fentanyl charge carries a mandatory minimum sentence of five years in prison, a maximum sentence of 40 years in prison, and a $5 million fine. The heroin and cocaine conspiracy charges each have a maximum sentence of 20 years in prison and a $1 million fine.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Acting Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges. She also thanked the Newark Police Department, the Essex County Sheriff's Office and the Bloomfield Police Department for their assistance in the investigation.
This case is part of the Violent Crime Initiative (VCI), which was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Emma Spiro of the United States Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Monmouth County Woman Admits Filing False Tax ReturnsRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, woman today admitted that she underreported income on her personal tax return, Acting U.S. Attorney Rachael A. Honig announced.
Kathy Manna, 58, of Atlantic Highlands, New Jersey, and formerly of Lavallette, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging her with one count of making and subscribing a false tax return.
According to documents filed in the case and statements made in court:
Manna operated Manna Construction Group, a business headquartered in Lavallette, that provided landscaping and construction services in New Jersey and elsewhere. She admitted that for tax years 2010, 2011, 2012, and 2013, she underreported the gross receipts or sales of Manna Construction Group on Schedule C of her personal tax return. Under the terms of her plea agreement, the government alleges that the total tax loss was $124,480.
The count of making and subscribing a false tax return carries a maximum potential penalty of three years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 28, 2021.
Acting U.S. Attorney Honig credited special agents of the IRS, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea. She also thanked the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and the Lavallette Police Department, under the direction of Chief Colin M. Grant.
The government is represented by Assistant U.S. Attorney Jennifer Kozar of the U.S. Attorney’s Office Economic Crimes Unit.
Two Newark Men Sentenced to Prison for Trafficking Crack Cocaine and Heroin with Newark’s ‘Famous Boyz’ Street GangRead the Press Release
NEWARK, N.J. – Two members of the Newark street gang known as the “Famous Boyz” were sentenced to prison for conspiring to distribute crack cocaine and heroin, Acting U.S. Attorney Rachael A. Honig announced today.
Malik Minor, aka “YK,” 23, of Newark, was sentenced today to 63 months in prison and five years of supervised release; Javon Holmes, aka “J-Dot,” 21, of Newark, was sentenced March 22, 2021, to 108 months in prison and four years of supervised release. Minor previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiring to distribute 28 grams or more of crack cocaine, and 100 grams or more of heroin. Holmes previously pleaded guilty to a superseding information charging him with one count of conspiring to distribute 28 grams or more of crack cocaine, and 100 grams or more of heroin, and possessing with the intent to distribute 28 grams or more of crack cocaine. Judge Arleo imposed both sentences by videoconference.
According to the documents filed in this case and statements made in court:
The Famous Boyz are a subset of the Brick City Brim set of the Bloods street gang, which dealt significant quantities of heroin and crack cocaine, primarily in and around the area of South 18th Street and 15th Avenue, in Newark. The gang often referred to this area as the “8 Block,” “18th,” or simply by reference to the number “8.”
In October 2018, Minor, Holmes, and 15 other members of a violent drug trafficking conspiracy operating in Newark were charged by complaint with conspiracy to distribute crack cocaine and/or heroin following a lengthy wiretap investigation. Shaka McKinney and Jahid Vauters, aka “K,” aka “KO,” also were charged with firearms possession offenses. To date, 15 of the defendants have pleaded guilty to drug and firearm charges and three await sentencing.
On Feb. 25, 2019, a grand jury returned an indictment charging three of the defendants, Patricio Hernandez, Jonathan Hernandez, and Jonathan Garcia, aka “Bebo” with one count each of conspiracy to distribute and to possess with intent to distribute 280 grams or more of crack cocaine for their alleged participation in supplying the “Famous Boyz” with cocaine. On Sept. 30, 2019, a grand jury returned a 21-count superseding indictment against Patricio Hernandez, Jonathan Hernandez, Garcia, Holmes, and John Mosley, aka “Breezy,” aka “Brazy.” The charges in the superseding indictment remain pending against Patricio Hernandez and Mosley.
Acting U.S. Attorney Honig credited special agents of ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark, and members of the Newark Department of Public Safety, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to the guilty pleas.
She also thanked the DEA, under the direction of Special Agent in Charge Susan A. Gibson; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Belleville Police Department, under the direction of Chief Mark Minichini; and the Livingston Police Department, under the direction of Chief Gary Marshuetz.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and is part of the Violent Crime Initiative (VCI) in Newark. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of 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 Angelica M. Sinopole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations against the remaining defendants are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Men Admit Carjacking Uber Driver in NewarkRead the Press Release
NEWARK, N.J. – Two men today admitted their roles in a Newark carjacking in which a firearm was brandished, Acting U.S. Attorney Rachael Honig announced today.
Rakeem McNair, 21, of Roselle, New Jersey, pleaded guilty today to an information charging him with one count each of carjacking and brandishing a firearm in furtherance of the carjacking. Raquin Tanner, 25, of Newark, pleaded guilty on March 10, 2021, to one count of aiding and abetting the carjacking. Both defendants entered their guilty pleas by videoconference before U.S. District Judge Madeline Cox Arleo and remained detained.
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, an 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.
The carjacking count carries a maximum potential penalty of 15 years in prison. The brandishing of a firearm during a crime of violence count is punishable by a mandatory minimum of seven 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. Sentencing is scheduled for July 27, 2021, for McNair and July 12, 2021, for Tanner.
Acting U.S. Attorney Honig credited the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; 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 the guilty pleas.
The government is represented by Senior Trial Counsel Robert Frazer of the Organized Crime/Gang Unit in Newark.
Couple Charged with Firearms Offenses after Standoff in Hotel Reveals Cache of Firearms and AmmunitionRead the Press Release
NEWARK, N.J. – A husband and wife were arrested on weapons charges after a standoff at a Hudson County hotel, Acting U.S. Attorney Rachael A. Honig announced.
Rahim Harris, 42, of Maplewood, New Jersey, is charged by complaint with one count of possession of firearms and ammunition by a convicted felon. His wife, Haneefha White, 39, of Pottsville, Pennsylvania, is charged by complaint with aiding and abetting the possession of firearms and ammunition by a convicted felon. They will have their initial appearances by videoconference at a date to be determined.
According to documents filed in this case and statements made in court:
On Dec. 21, 2019, Harris was charged by complaint with weapons and aggravated assault offenses allegedly committed on that date. On March 14, 2021, law enforcement received information indicating that Harris was in a specific room at a hotel in Secaucus, New Jersey. Law enforcement officers responded to the hotel a few hours later to attempt to locate and arrest Harris, who was identified from a photograph as the person staying in the specific hotel room.
Officers observed Harris’ wife entering the room. They attempted to summon White while she was in the hallway, but she entered the room and closed the door. White then called the front desk and asked why police were in the hallway. Law enforcement officers spoke with White on the telephone to persuade her to come out. She indicated there were other individuals in the room and that they were “on edge” and had firearms and hand grenades.
After several hours of unsuccessful negotiations with White, law enforcement called the room and Harris picked up the phone. Harris stated that he did not want to come out because of the arrest warrant and that he was “prepared for war” and “ready to die.”
In the early hours of March 15, 2021, Harris and White (who were the only occupants of the room) surrendered. A lawful search of the room yielded numerous weapons, fraudulent identification papers, bank cards, $36,910 in cash and a vehicle registration.
Each of the charges carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
This case is 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. For more information about Project Guardian, please see https://www.justice.gov/projectguardian
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to the charges. She also thanked the Hudson County Prosecutor’s Office; the Secaucus Police Department; the Hudson County Regional SWAT Team; the Hudson County Sheriff’s Office; the Jersey City Police Department Bomb Squad; and the New Jersey Transit Police Department for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Sussex County Man Charged with $1.9 Million Paycheck Protection Program Fraud SchemeRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, man was charged for his role in fraudulently obtaining federal Paycheck Protection Program (PPP) loans totaling $1.9 million, Acting U.S. Attorney Rachael A. Honig announced.
John Jhong, 51, of Sparta, New Jersey, is charged by complaint with one count of bank fraud, one count of false representation of a Social Security number and one count of money laundering. Jhong is scheduled to make his initial appearance by videoconference this afternoon before U.S. Magistrate District Judge Leda Dunn Wettre.
According to documents filed in this case and statements made in court:
Jhong submitted 10 fraudulent PPP loan applications to several lenders on behalf of 10 purported businesses. The PPP is overseen by the Small Business Administration designed to provide forgivable loans to small businesses affected by the coronavirus pandemic. Applicants for PPP loans apply directly to banks or financial institutions participating in the program; in those applications, applicants make affirmative certifications about their average monthly payroll expenses and number of employees. Applicants also certify their intent to spend PPP proceeds on permissible business expenses, such as payroll costs, rent, utilities, and interest on mortgages. PPP loans may be entirely forgiven if the recipient spends the loan proceeds on these permissible expenses within a designated period after receiving the proceeds.
Jhong’s PPP applications allegedly contained false and fraudulent representations to the participating lenders, including documentation purporting to be from the IRS. In fact, according to IRS records, none of the tax documents Jhong submitted with the PPP loan applications were ever filed with the IRS. Jhong also fabricated the existence of numerous business partners. In some instances, the personal identifying information for Jhong’s purported business partners belonged to individuals who had been deceased for over a decade.
Based on Jhong’s alleged misrepresentations, the lenders approved Jhong’s PPP loan applications and provided Jhong’s purported business with $1.9 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Jhong then converted a portion of the proceeds into a cashier’s check that was used to fund a business account.
The count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater. The count of false representation of Social Security number carries a maximum penalty of five 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. The count of money laundering carries a maximum potential penalty of 20 years in prison and a $500,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater.
Acting U.S. Attorney Rachael Honig credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge John F. Grasso; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt. She also thanked the Sparta Township Police for their assistance.
The government is represented by Assistant U.S. Attorney Olajide A. Araromi of the U.S. Attorney’s Office, Government Fraud Unit, in Newark, and Trial Attorney Chad M. Davis of the Department of Justice, Criminal Division, Money Laundering and Asset Recovery Section.
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.
California Man Charged with Conspiring to Launder Proceeds of Fraud Schemes Targeting New Jersey Law Firm and SBA LoansRead the Press Release
NEWARK, N.J. – A California man has been charged with laundering money that originated from fraudulently obtained loans from the U.S. Small Business Association and from a business email compromise scheme that targeted a law firm based in New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Eric Bullard, 59, of Los Angeles, California, is charged by complaint with one count of money laundering conspiracy. Bullard was taken into custody yesterday in California on an unrelated warrant for a violation of federal supervised release. Bullard is scheduled to appear by videoconference before U.S. Magistrate Judge Alexander MacKinnon at 1:00 p.m. PDT.
According to documents filed in this case and statements made in court:
In June 2020, Victim 1 communicated via email with a law firm in New Jersey that was helping Victim 1, a resident of Bergen County, New Jersey, with a real estate transaction. One of the law firm’s email accounts was compromised and someone purporting to be emailing on behalf of the law firm sent instructions to Victim 1 to wire approximately $560,000 into an escrow account under the name “Eric’s Commercial LLC.” Victim 1 wired approximately $560,000 into a business bank account controlled by Bullard. Victim 1 did not intend for the money to be transferred to Bullard and sent the wire transfer to Bullard’s account under the belief that the wire instructions had come from the New Jersey law firm.
Prior to receiving the $560,000 wire transfer, the Eric’s Commercial LLC bank account had a beginning statement period balance of approximately $40. Shortly after the $560,000 was transferred into the Eric’s Commercial LLC bank account, on the same day the wire transfer posted to his account, approximately 10 cash withdrawals were made from the account totaling $96,275. Surveillance footage obtained from the bank shows Bullard entering the bank to make withdrawals from the account. The same day, three large wire transfers sourced from the transfer from Victim 1 were executed from the Eric’s Commercial LLC bank account to other bank accounts, including an account controlled by a conspirator.
In addition to laundering of the proceeds from the business email compromise, Bullard also obtained and laundered funds from the U.S. Small Business Administration’s (SBA) Economic Injury Disaster Loan (EDIL) program. In July 2020, Bullard received into a business bank account that he controlled $51,395 from an SBA EDIL loan intended for a pharmacy company with a listed location in Idaho and $143,100 from an SBA EDIL loan intended for a pharmacy company with a listed location in Colorado.
Money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of up to $500,000 or twice the value of the monetary instrument or funds involved in the transfer, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the Cybercrime Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bergen County Man Admits Decade-Long $80 Million Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted orchestrating a long-running bank and securities fraud scheme, which led to large-scale losses for financial institutions and investors, Acting U.S. Attorney Rachael A. Honig announced.
Seth Levine, 52, of Teaneck, New Jersey, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to commit bank fraud and one count of securities fraud.
According to documents filed in this case and statements made in court:
Levine was the founding partner, owner, and managing member of Norse Holdings, which was the parent company to more than 70 subsidiary companies. Each of the subsidiary companies owned one or more multifamily buildings, located primarily in New Jersey. From 2009 through August 2019, Levine directed a scheme to fraudulently refinance the multifamily properties by providing materially false information to financial institutions about the rents collected, the number of apartments leased, the expenses, and the true owners of the properties. Levine and others provided lenders fake documents, including falsified leases that created the appearance that vacant spaces were occupied and that overstated the rent paid by tenants; fake personal financial statements; fake expense documents; and fake operating agreements that misrepresented ownership interests in the multifamily properties. Levine also forged signatures on some of the fraudulent documents submitted to lenders. As a result of the fraudulent refinances, Levine received cash payouts from the lenders, which Levine and others used for their own enrichment and to continue the fraud scheme.
Many of the lenders who approved mortgages based on the false statements of Levine and others in turn sold those mortgages to the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae). Because the refinances were obtained with fraudulent data regarding the properties’ income and expenses, the multifamily properties were overvalued and rents and other income from the properties did not cover the mortgage payments and other expenses associated with the properties. To cover the shortfalls, Levine obtained additional cash-out refinances, thereby increasing his total debt incurred. In total, Levine controlled at least 70 multifamily properties, comprising approximately 2,500 apartments. The outstanding balance of the fraudulently obtained mortgages on the multifamily properties was more than $150 million, including 40 mortgages held by Freddie Mac with an outstanding loan balance of approximately $103 million. The bank fraud conspiracy resulted in losses to victim lenders of at least $65 million.
While defrauding the lending financial institutions, Levine also carried out a securities fraud scheme to defraud investors in the multifamily properties. He solicited investors to invest in the multifamily properties based on materially false statements and promises about the condition of the properties and the use of investor funds. Levine represented to investors that his conduct would be limited by an operating agreement. However, after Levine acquired the multifamily properties, he violated representations made to the investors, including by selling off portions of Levine’s ownership interest in the properties without investor consent, bringing on additional investors without consent, and refinancing the multifamily properties without investor consent. Levine provided fraudulent documents to investors, such as operating agreements that overstated Levine’s personal investment in the multifamily properties and documents bearing signatures forged by Levine. He also co-mingled investor funds and used the funds in violation of representations to investors, by using investor money to support other multifamily properties, make payments to other investors, and further the fraud. The securities fraud victims lost more than $15 million.
The conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. The securities fraud count is punishable by a maximum of 20 years in prison and a $5 million fine. Sentencing is scheduled for July 26, 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 FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge, Robert Manchak, with the investigation leading to today’s guilty plea. The U.S. Securities and Exchange Commission has filed a civil complaint against Levine today based on allegations underlying the securities fraud charge.
The government is represented by Assistant U.S. Attorney Heather Suchorsky of the
Economic Crimes Unit and Special Assistant U.S. Attorney Charlie L. Divine of the Federal Housing Finance Agency, Office of Inspector General.
Middlesex County Man Charged with Tax Evasion and Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was charged today with tax evasion and filing false tax returns, Acting U.S. Attorney Rachael A. Honig and Acting Deputy Assistant Attorney General Stuart M. Goldberg announced.
Gabriel M. Ferrari of Edison, New Jersey, was indicted by a federal grand jury today on three counts of tax evasion and seven counts of filing false personal and corporate tax returns. He will have his arraignment and initial appearance at a later date.
According to the indictment:
From 2011 through 2014, Ferrari, owner of Buses and Trucks Inc. (B&T) in Linden, New Jersey, used gross receipts of B&T to pay personal expenses, including gambling on horse races, and then did not disclose the diverted receipts to his return preparer or the IRS. To hide his income, Ferrari filed false business and personal tax returns with the IRS.
Each count of tax evasion carries a maximum potential penalty of five years in prison and a maximum fine of $250,000. Each count of filing a false tax return carries a maximum potential penalty of three years in prison and a maximum fine of $250,000.
Acting U.S. Attorney Honig and Acting Deputy Assistant Attorney General Goldberg credited special agents of IRS-Criminal Investigation Division, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark and by Trial Attorney Ann M. Cherry of the Tax Division in Washington, D.C.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
New York Man Arrested for Traveling to New Jersey to Have Sex with A MinorRead the Press Release
CAMDEN, N.J. – A New York man was charged with traveling to Atlantic County, New Jersey, to have sex with a minor, Acting U.S. Attorney Rachael A. Honig announced today.
Zachary Williams 33, of New York, is charged by complaint with one count of interstate travel to engage in illicit sexual conduct. Williams was arrested on March 13, 2021, after traveling a second time from New York to New Jersey to meet a minor. He is scheduled to appear today by videoconference before U.S. Magistrate Judge Ann Marie Donio.
According documents filed in this case and statements made in court:
In September 2020, Williams met the minor victim via SnapChat. He lied about his age, telling the victim that he was 17-years old. Williams asked the minor for nude photographs of the victim and, after receiving them, began to “sextort” the minor by threatening to send photographs to the victim’s friends and family. He ultimately convinced the victim to meet him at a hotel in Atlantic County and agreed to allow the victim to delete the photographs from Williams’ phone. On Oct. 2, 2020, Williams traveled to a hotel in Atlantic County and, two days later, engaged in sexual intercourse with the victim in his hotel room.
Williams continued to send messages threatening to expose the victim’s photographs, and when the victim would block him, he opened new social media accounts to continue to harass the victim., including “IWILLHURTYOU Iwilll_h2021,” “IWILLGETTHESWITCHBACK,” and “Makeadealormomfindsout.”
In March 2021, law enforcement officers took over the victim’s social media accounts and began communicating with Williams while posing as the victim. During those communications, Williams arranged to travel on March 13, 2021 to the same Atlantic County hotel to again have sex with the victim. Law enforcement arrested Williams as he arrived at the hotel.
Williams is charged with interstate travel to engage in illicit sexual conduct with a minor. If convicted of this offense, Williams faces a maximum of 30 years in prison, a $250,000 fine, or twice the gross gain or loss from the offense, and lifetime supervise release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark, and officers of the Galloway Township Police Department, under the direction of Chief Donna A. Higbee. She also thanked the Atlantic County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Chief Investment Officer Admits Bank Fraud Relating to $91.5 Million Commercial LoanRead the Press Release
NEWARK, N.J. – A former chief investment officer of a medical property management company pled guilty today to a bank fraud conspiracy involving a $91.5 million commercial mortgage loan, Acting U.S. Attorney Rachael A. Honig announced.
Barton Schack, 65, of Ringwood, New Jersey, was charged by information with one count of conspiracy to commit bank fraud. United States District Court Judge Madeline Cox Arleo accepted the guilty plea.
According to documents filed in this case and statements made in court:
Schack was the chief investment officer of Regent Medical Properties (“Regent”), a property management company located in Glen Rock, New Jersey. Sovereign Medical Services, and affiliates (“Sovereign”), was a network of multi-specialty, out-patient medical practices headquartered in Glen Rock, New Jersey, with various practice locations. Co-conspirator 1 was the founder and chief executive officer of both Regent and Sovereign.
In April 2016, Schack and Co-conspirator 1 used fraudulent representations to obtain a $91.5 million loan (the “Mortgage Loan”) from Lender 1 and others secured by thirteen medical office buildings in New Jersey, New York, and Florida (the “Medical Properties”). The borrowers in the Mortgage Loan were thirteen separate special purpose entities—majority-owned by Co-conspirator 1—one for each collateral property (collectively, the “Borrowers”).
Schack and Co-conspirator 1 exploited the fact that, through Sovereign, Co-conspirator 1 controlled approximately half of the tenants in the Medical Properties. Schack and Co-conspirator 1 misrepresented to Lender 1 the physical occupancy status of certain affiliated tenants and the Medical Properties’ true rental income.
After the Mortgage Loan closed, Schack and Co-conspirator 1 continued their scheme to conceal the actual financial status of the Medical Properties by submitting fraudulent financial statements to the loan servicer on a monthly basis. Those misrepresentations allowed Schack and Co-conspirator 1 to avoid accelerated payment on the Mortgage Loan.
Finally, after the Mortgage Loan closing, Schack and Co-conspirator 1 diverted rent payments owed through the “lockbox” account procedure specified in the Mortgage Loan agreement. Instead, Schack and Co-conspirator 1 used the funds for both Regent’s operating expenses and Co-conspirator 1’s personal expenses, including credit card bills of up to approximately $80,000 per month and private jet payments. Through such means, Co-conspirator 1 diverted millions of dollars in rental payments from the “lockbox” account over the course of the Mortgage Loan for his own personal use.
Shortly after the closing of the Mortgage Loan in April 2016, Lender 1 sold its interest into two commercial mortgage-backed security loans. By 2019, approximately three years after the closing of the Mortgage Loan, the Borrowers were sixty days behind on loan payments, and administration of the loan was referred to a special servicer. In February 2020, the Borrowers declared bankruptcy.
The conspiracy to commit bank fraud count carries a maximum penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for June 22, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch, Jr., and IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Andrew Macurdy and Shawn Barnes of the U.S. Attorney’s Office Criminal Division.
Defense counsel: Brent Culpepper, Esq.