District of New Jersey
Press releases recorded for this federal judicial district.
Middlesex County Man Sentenced to 180 Months in Prison for Receiving and Possessing Child PornographyRead the Press Release
TRENTON, N.J. – Today, a Middlesex County, New Jersey, man was sentenced to 15 years in prison and 15 years of supervised release for receiving and possessing images and videos depicting child pornography, Senior Counsel Philip Lamparello announced.
Jeremy Greenwald, 47, of South Amboy, New Jersey, previously pleaded guilty before U.S. District Court Judge Zahid N. Quraishi in Trenton federal court to a two-count information charging him with receipt and possession of child pornography.
According to documents filed in this case and statements made in court:
From May 2022 through February 2023, Greenwald used an online chat application to communicate with a minor victim located outside of New Jersey. Greenwald persuaded the minor victim to create and send Greenwald images and videos of her engaging in sexually explicit conduct. On multiple occasions, Greenwald directed the minor victim to perform certain sexual acts using items Greenwald had purchased and sent the minor victim to use during the videos, including sex toys and costumes, and Greenwald paid the minor victim a nominal amount for these images and videos. A search of Greenwald’s electronic devices revealed additional videos and images of child pornography, including depictions of prepubescent children engaged in sexual acts.
Senior Counsel Lamparello credited special agents of the Federal Bureau of Investigation, specifically those working on the FBI Newark Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc
The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Michael Chazen, Esq., Freehold, New Jersey
Man Sentenced for Escape from CustodyRead the Press Release
United States Attorney Lesley A. Woods announced that Dylan Michael Joseph Hoffman, 34, of Council Bluffs, Iowa, was sentenced on January 7, 2026, in federal court in Omaha, Nebraska, for escape from custody. United States District Court Judge Brian C. Buescher sentenced Hoffman to 18 months’ imprisonment. There is no parole in the federal system. After Hoffman’s release from prison, he will begin a three-year term of supervised release.
In August 2021, Hoffman was sentenced to serve 63 months’ imprisonment in the custody of the U.S. Bureau of Prisons (BOP) by the U.S. District Court for the Southern District of Iowa following his conviction for prohibited person in possession of a firearm and ammunition. In February 2025, while serving that custodial sentence, BOP transferred Hoffman to Dismas Charities Residential Reentry Center (Dismas) in Omaha, Nebraska. Dismas assigned Hoffman to home confinement at an area residence, but, after Hoffman was ordered to return to Dismas on May 4, 2025, he failed to do so. Hoffman was given multiple opportunities to return to Dismas as directed, but he failed to return and ultimately disabled his BOP electronic location monitoring system. Several days later, the United States Marshals Service was able to locate Hoffman in Council Bluffs and return him to custody.
This case was investigated by the United States Marshals Service.
Amtrak Employees Admit Participating in $11 Million Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – Four Amtrak employees admitted participating in a health care fraud scheme to defraud Amtrak, Senior Counsel Philip Lamparello announced.
Yesterday, Timothy Bogen, 60, of Hamden, Connecticut, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an Indictment charging him with conspiracy to commit health care fraud. Between June 2025 and October 2025, Quinton Johnson, 54, of Irvington, New Jersey; Gregory Richardson, 36, of Roosevelt, New York; and Dion Jacob, 51, of Brooklyn, New York also pleaded guilty before Judge Arleo in Newark federal court to the same Indictment.
The Indictment also charged six other co-conspirators who previously pleaded guilty to the Indictment between January 2025 and May 2025: Kevin Frink, 54, of Willingboro, New Jersey; Michael Toal, 35, of Hazlet, New Jersey; David McBrien, 37, of Levittown, Pennsylvania; Damany Walker, 42, of Irvington, New Jersey; David Lonergan, 65, of Rockaway Park, New York; and Rodolfo Rivera, 42, of Clayton, Delaware. McBrien, Walker, Frink, and Richardson have each been sentenced to two years’ federal probation, all others are pending sentencing.
According to documents filed in this case and statements made in court:
From January 2019 through June 2022, Bogen, Johnson, Richardson, Jacob, and their co-conspirators—who were also Amtrak employees—engaged in a scheme to obtain cash kickbacks from health care providers in return for their agreement to allow their health insurance plan to be billed for services that were never provided and were not medically necessary. In total, as a result of the conspiracy, the Amtrak health care plan paid over $11 million in fraudulent claims associated with providers connected to the scheme.
Each defendant received thousands of dollars in cash kickbacks from health care providers in return for their participation in the scheme, including from Punson Figueroa, an acupuncturist, and Michael DeNicola, a podiatrist. Figueroa previously pleaded guilty to conspiracy to commit health care fraud and was sentenced on September 24, 2024 to 34 months in prison. DeNicola previously pleaded guilty on June 29, 2022 to conspiracy to commit health care fraud, among other offenses. His sentencing remains pending.
The health care fraud conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Bogen’s sentencing is scheduled for June 25, 2026, Jacob’s sentencing is scheduled for February 18, 2026, and Johnson’s sentencing is scheduled for March 24, 2026.
Senior Counsel Lamparello credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, the Amtrak Police Department, under the direction of Chief of Police Sam Dotson, and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Katherine M. Romano, Chief of the General Crimes Unit, and Assistant U.S. Attorney Jessica R. Ecker, of the Health Care Fraud and Opioids Enforcement Unit.
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Defense counsel: Michael Rubas, Esq. (for Timothy Bogen)
John McMahon, Esq. (for Quinton Johnson)
Julian Wilsey, Esq. (for Dion Jacob)
Christopher Adams, Esq. (for Gregory Richardson)
bogenetal.indictment.pdfTD Bank Insider Pleads Guilty to Facilitating Colombian ATM Money Laundering SchemeRead the Press Release
A former New Jersey-based employee of TD Bank, N.A., Oscar Marcel Nunez-Flores (Nunez), pleaded guilty today to accepting bribes in return for facilitating a money laundering network’s movement of over $26 million to Colombia through TD Bank accounts.
“The defendant afforded his co-conspirators unfettered access to TD Bank, while lining his own pockets in the process,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Our financial professionals are vital gatekeepers against money laundering and other crimes in the financial services industry. The Criminal Division will hold banking professionals who abuse their positions to account to ensure the protection of our financial system.”
“This case shows how complex money laundering schemes often depend on insiders who are willing to bend — or break — basic safeguards,” said Senior Counsel Philip Lamparello. “Our office will continue to identify, investigate, and prosecute those who turn financial institutions into vehicles for large-scale criminal activity.”
“Transnational criminal organizations exploit borders, geography, and communities but they cannot exploit our resolve,” said Special Agent in Charge Michael A. Miranda of the Drug Enforcement Administration (DEA) Caribbean Field Division. “In the DEA Caribbean Field Division, we intercept threats before they reach American streets. This is not regional work. This is national security. Our agents, analysts, and partners stand on that front line every day with discipline, courage, and purpose.”
“By exploiting his position at TD Bank for his own gain, Mr. Nunez enabled the movement of millions of illicit dollars overseas,” stated Special Agent in Charge Jenifer L. Piovesan of the IRS Criminal Investigation (IRS-CI) Newark Field Office. “This case underscores the critical role IRS-CI and our law enforcement partners play in dismantling complex financial schemes that threaten the integrity of our banking system.”
“The defendant in this case abused his position as an employee at TD Bank by accepting bribes in return for enabling a money laundering network’s movement of millions of dollars from the United States to Columbia,” said Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), New York Region. “The FDIC OIG, alongside our law enforcement partners, will continue to investigate and hold accountable bank insiders who violate their positions of trust and commit financial crimes that threaten the safety and soundness of our Nation’s banks.”
According to court filings, beginning in March 2021 and until his arrest in October 2023, Nunez, 34, of Plainfield, New Jersey, then a TD Bank employee in Scotch Plains, New Jersey, accepted bribes and leveraged his position to facilitate a money laundering network’s expatriation of over $26 million from the United States to Colombia. Nunez opened dozens of accounts in the names of shell companies and often opened the accounts without any purported customer present. The accounts Nunez opened for laundering received over 600 debit cards, which Nunez largely issued himself. These debit cards were used to make over 120,000 withdrawals at ATMs throughout Colombia. Nunez also shipped debit cards directly to a co-conspirator in Colombia. He also registered shell companies in New Jersey and then opened accounts in their names at TD Bank in exchange for a fee ranging from approximately $500 to $2,500, which was typically paid either in cash or through a peer-to-peer digital payment network.
Nunez pleaded guilty to a two-count information charging him with conspiring to launder monetary instruments and for receipt of bribes by a bank employee. He is scheduled to be sentenced on May 27.
The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater. The charge of receipt of bribes by a bank employee carries a maximum penalty of 30 years in prison and a fine of $1,000,000 or three times the amount involved in the offense, whichever is greater.
The DEA, IRS Criminal Investigation (IRS-CI), and FDIC-OIG investigated the case. The department also thanks the Morristown Police Department, the U.S. Attorney’s Office for the District of Puerto Rico and the U.S. Attorney’s Office for the Western District of Washington for their assistance with the investigation.
Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Marko Pesce, Chief of the Bank Integrity, Money Laundering, and Recovery Unit for the District of New Jersey are prosecuting the case.
The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.
Passaic County Man Sentenced for Fentanyl Distribution and Money Laundering ConspiracyRead the Press Release
A New Jersey man was sentenced today to 12 years in prison following his conviction for drug trafficking conspiracy and international promotional money laundering conspiracy.
According to court documents and statements made in court, William Panzera, 53, of North Haledon, was a member of a drug trafficking organization responsible for the importation and distribution of hundreds of kilograms of fentanyl analogues. Panzera and other members of the conspiracy agreed to import and distribute controlled substances and analogues, including fentanyl analogues, MDMA, methylone and ketamine. The co-conspirators placed orders with a source in China and agreed to distribute, and did distribute, the controlled substances and analogues in New Jersey, both in bulk and in the form of counterfeit pharmaceutical pills that actually contained fentanyl analogues. In total, they imported over a metric ton of fentanyl-related substances and other drugs into the United States. They also sent hundreds of thousands of dollars to China using wire transfers and Bitcoin to pay for the drugs.
Panzera was convicted at trial in January 2025. Eight other defendants have previously pleaded guilty in related cases.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and Senior Counsel Philip Lamparello of the U.S. Attorney’s Office for the District of New Jersey made the announcement.
The Newark Field Division of Immigrations and Customs Enforcement Homeland Security Investigations (HSI) led the investigation, with assistance from HSI in Philadelphia, the FBI Newark Field Office, U.S. Postal Inspection Service Newark Field Office, IRS-Criminal Investigation, U.S. Customs and Border Protection in New Jersey, New York and Kentucky, the Newark Police Department and the Essex County Prosecutor’s Office.
This case is being prosecuted by Deputy Chief Stephen Sola of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section (MNF) and Assistant U.S. Attorney Sammi Malek and Special Assistant U.S. Attorney Alexander Hasapidis-Sferra for the District of New Jersey. Financial Investigator Kathryn Montemorra of MNF supported the investigation.
Two Senior Members of Stephen Crane Village Drug Trafficking Organization SentencedRead the Press Release
NEWARK, N.J. – On January 13 and January 14, 2026, the last two defendants in the Stephen Crane Village drug trafficking case – the enforcer who murdered one of their own and the main drug supplier – were sentenced to 540- and 211-months’ imprisonment, respectively, for their roles in the organization, Senior Counsel Philip Lamparello announced.
In January 2025, following a three-week trial before U.S. District Court Judge Julien X. Neals in Newark federal court, Michael Mayse, 39, and Gary Shahid, 67, both of Newark, were convicted of drug trafficking conspiracy and related drug and firearms offenses. Mayse was also convicted of murder in relation to the drug trafficking conspiracy.
“These sentences hold accountable two senior members of a violent drug trafficking organization that ruled Stephen Crane Village through fear, violence, and murder. They deliver justice for the family of a young man whose life was senselessly taken and underscore this Office’s commitment to attacking violent crime wherever it exists. We will continue to protect the people of New Jersey by aggressively pursuing violent criminals and removing them from our streets.”
- Senior Counsel Philip Lamparello
According to court documents and evidence presented at trial:
Stephen Crane Village is a public housing complex near Branch Brook Park, on the border of Newark, New Jersey and Belleville, New Jersey. Stephen Crane Village was the site of an open-air drug market controlled by a violent drug trafficking organization (DTO) from at least February 2019 through February 2020.
Through numerous controlled drug purchases, recorded telephone calls and text messages, physical surveillance, electronic surveillance, and analysis of telephone call detail records, law enforcement determined that the members of the DTO conspired to distribute narcotics, including heroin, fentanyl, and cocaine base, at Stephen Crane Village.
The DTO used a stash apartment to package and store drugs for distribution. The DTO sold significant quantities of drugs to confidential sources and an undercover agent. In the early morning of December 15, 2019, Mayse entered the DTO’s stash apartment and murdered a 21-year-old member of the DTO over a drug debt.
On January 13, 2026, the Court sentenced Shahid to 151 months’ imprisonment for the drug trafficking conspiracy and drug trafficking offenses, to run concurrent to 60 months for his possession of a firearm as a previously convicted felon, and consecutive to an additional 60 months’ imprisonment for his possession of a firearm in furtherance of his drug trafficking, for a cumulative sentence of 211 months in prison.
On January 14, 2026, the Court sentenced Mayse to 480 months’ imprisonment for the drug trafficking conspiracy and the murder, to run concurrent to 240 months for his distribution and possession with intent to distribute drugs, to run concurrent to 120 months for his possession of two firearms as a previously convicted felon, and consecutive to an additional 60 months’ imprisonment for his possession of another firearm in furtherance of his drug trafficking, for a cumulative sentence of 540 months in prison.
Co-defendants Jose Lora, Dayquan Jordan, Ricky Terrell, Charles Mells, Raquan Rawls, Nasir Williams, Quadir Hatcher, Tyree Purkett, James Wicker, and Dayana Valderrama – all members or associates of the DTO – all previously pleaded guilty in federal court to crimes related to their respective roles.
Special Counsel Lamparello credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Towanda R. Thorne-James; the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II and Chief Mitchell G. McGuire; the Newark Police Department, under the direction of Director Emanuel Miranda; and the Belleville Police Department, under the direction of Chief Mark Minichini. He also thanked the U.S. Marshals Service and the Federal Bureau of Investigation for their assistance with this case.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). 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 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 DHS/HSI, the USMS, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Criminal Division in Trenton and Assistant U.S. Attorney Jason Goldberg, Chief of the Narcotics and International Trafficking Unit in Newark.
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Defense counsel:
Thomas Ambrosio, Esq., for Gary Shahid
Joel Silberman, Esq., and Keith Oliver, Esq., for Michael Mayse
Texas Man and His Romantic Partner Sentenced to Prison for their Roles in Harming Elderly Victims Through A Romance Fraud ScamRead the Press Release
CAMDEN, N.J. – A Texas man was sentenced on January 15, 2026, to five years in prison and three years of supervised release for his role in a romance fraud scam in which he received money from elderly victims, including from New Jersey, and then transferred the money abroad, primarily to Ghana, Senior Counsel Philip Lamparello announced. The man’s romantic partner was sentenced on January 7, 2026, to 18 months in prison and two years of supervised release for her role in the scheme as an unlicensed money transmitter in accepting and transmitting some of the funds for profit.
Felix Clark, a/k/a “Joseph Moore,” a/k/a “Stanley Smith,” 37, of Royse City, Texas, was sentenced to 60 months in prison and three years of supervised release by Hon. Renée Marie Bumb, Chief, U.S. District Judge, in federal court in Camden. Clark previously pleaded guilty on May 6, 2025, to a two-count Information, charging conspiracy to commit wire fraud and wire fraud in connection with the romance fraud scam. At the conclusion of the sentencing hearing, Chief Judge Bumb remanded Clark to the custody of the U.S. Marshal to begin serving his sentence.
On January 7, Chief Judge Bumb sentenced Clark’s romantic partner, Esther Amppiaw, 34, of Royse City, Texas, to 18 months in prison and two years of supervised release. On May 23, 2025, Amppiaw pleaded guilty to a one-count Information charging her with operating an unlicensed money transmitter business. Amppiaw will report to serve her sentence on a later date.
According to documents filed in this case and statements made in court:
From at least as early as October 2021 through September 2022, while a resident of Delray Beach, Florida, Clark conspired and agreed to receive the proceeds of fraud perpetrated by a co-conspirator in Ghana and transfer proceeds overseas. During the conspiracy, one or more of Clark’s co-conspirators went onto online dating sites and, using fake names, pretended to be romantically interested in elderly victims, including stating that they wanted to marry them. Many of the victims had recently lost their spouses.
The co-conspirators used electronic messages and emails to con victims into sending money—for instance, claiming that there was a large amount of gold in Ghana, but in order to get it, the victim had to pay taxes, fees, or other sums. The co-conspirators directed victims to send money to Clark and others acting at his direction, including Amppiaw. Clark used fake names, including “Joseph Moore” and “Stanley Smith”—as well as financial accounts in those fake names—to transfer the victims’ funds.
During his guilty plea hearing, Clark admitted responsibility for $501,071 in victim losses. He also admitted that after law enforcement executed a search warrant at his home, he attempted to obstruct justice by arranging for a falsified death certificate and funeral notice to be submitted to the United States, falsely claiming the death of a family member in order to obtain a passport that had been lawfully seized and to which he was not legally entitled.
Amppiaw admitted that she operated an unlicensed money transmitting business from January 2022 through June 2023, while a resident of Delray Beach, Florida. Amppiaw also admitted that she knowingly received checks, money orders, and electronic payments totaling $317,290 from individuals she did not know, and that she knowingly transmitted most of the funds to other individuals, including at least one recipient in New Jersey and also to recipients overseas, including Ghana. During that time, Amppiaw lied in four separate conversations with U.S. Customs and Border Patrol, U.S. Citizenship and Immigration Services (in her interview for U.S. citizenship), federal law enforcement, and her bank about the nature and amounts of her financial transaction activity.
Senior Counsel Philip Lamparello credited agents of the FBI’s Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs, and the U.S. Postal Inspection Service’s Philadelphia Division, under the direction of Inspector in Charge Christopher Nielsen, with the investigation leading to the sentencings.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office in Camden.
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Defense Counsel:
Felix Clark: Jeremy McLymont, Esq., Miami, Florida
Esther Amppiaw: James Maguire, Esq., AFPD, Camden, New Jersey
Manufacturing Company Settles Paycheck Protection Program Loan Fraud Allegations for $2.9 MillionRead the Press Release
NEWARK, NJ – A Delaware corporation with a place of business in Fairfield, New Jersey entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by applying for and receiving a Paycheck Protection Program (PPP) loan for which the company was not eligible, Senior Counsel Philip Lamparello announced.
According to the contentions of the United States in the settlement agreement:
Protech Powder Coatings, Inc. (“Protech Powder”) is a Delaware corporation with a place of business in Fairfield, New Jersey. Protech Powder is a subsidiary of the Protech Group, a Canadian company that manufactures and distributes paints, powder coatings, and specialty materials. During the period of March 12, 2021 to January 14, 2022, Protech Powder applied for and received PPP loan and loan forgiveness totaling $2,016,888 (including interest).
The United States contends that Protech Powder falsely certified eligibility to receive this second-draw PPP loan and loan forgiveness totaling $2,016,888 (including interest). The United States contends that Protech Powder knowingly made false statements, or caused false statements to be made, when it certified in its PPP loan application that it was eligible for a loan. At the time of its loan application, the United States contends that Protech Powder was not eligible to participate in the PPP because, inclusive of affiliates’ employees, Protech Powder exceeded applicable size standards. In addition, because of Protech Powder’s false statements on its loan application, the United States paid $60,000 in lender processing fees associated with the second-draw loan for which Protech Powder was ineligible.
In accordance with the terms of the settlement agreement, Protech Powder paid the United States $2,907,643. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $290,764 as the share in the recovery.
Congress created the PPP in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. Under the PPP, eligible businesses could receive forgivable loans guaranteed by the Small Business Administration (SBA). Regulations provide various eligibility requirements for the PPP, including limitations on the number of employees and revenue size limits. In their loan applications, borrowers were required to certify that they were eligible for the PPP and that the information they provided was accurate.
Senior Counsel Lamparello credited the SBA’s Office of General Counsel for their assistance in this matter.
Assistant U.S. Attorney Susan J. Pappy of the Health Care Fraud and Opioids Enforcement Unit in Newark represents the government.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The qui tam case is captioned US ex rel. GNGH2, Inc. v Protech Powder Coatings, Inc., 24-cv-08805 (D.N.J.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Counsel for Protech Powder Coatings, Inc.: Mark A. Rush, K&L Gates LLP
Relator’s counsel: David Abrams, Esq.
protech.agreement.pdfFour Hudson County Pharmacies Pay $4.3 Million to Resolve False Claims Act Allegations of Billing for Drugs Not DispensedRead the Press Release
NEWARK, N.J. – Four pharmacies located in West New York, Bayonne, Union City, and Jersey City have agreed to pay $4,325,000 to resolve allegations that they violated the False Claims Act by knowingly billing federal health care programs for medications never dispensed, Senior Counsel Philip Lamparello announced today.
According to the contentions of the United States in the settlement agreements, inventory records showed that the below pharmacies did not purchase enough medications from wholesalers to fill the prescriptions billed to the federal health care programs.
- Pan American Inc. agreed to pay $3,100,000 to resolve allegations that from January 2, 2015 through January 25, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs Pan American never dispensed to beneficiaries.
- St. Mina and St. Moses Pharmacy d/b/a Well Care Pharmacy agreed to pay $490,000 to resolve allegations that from May 31, 2016 through March 1, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program for drugs the pharmacies never dispensed to beneficiaries.
- Farmacia Latina Corp. agreed to pay $375,000 to resolve allegations that from January 2, 2015 through January 24, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program for drugs Farmacia Latina never dispensed to beneficiaries.
- Perfect Care Pharmacy LLC agreed to pay $360,000 to resolve allegations that from January 2, 2015 through January 25, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program for drugs Perfect Care never dispensed to beneficiaries.
The government is represented by Assistant U.S. Attorneys Kruti Dharia and Robert Toll of the Health Care Fraud & Opioids Enforcement Unit.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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farmacialatina.agreement.pdf panamerican.agreement.pdf perfectcare.agreement.pdf wellcare.agreement.pdfJordanian Man Admits Selling Unauthorized Access to Computer Networks of 50 CompaniesRead the Press Release
NEWARK, N.J. – A Jordanian man who was residing in the Republic of Georgia admitted his role as an “access broker” who sold unauthorized access to computer networks of at least 50 victim companies, Senior Counsel Philip Lamparello announced.
Feras Khalil Ahmad Albashiti, a/k/a “r1z,” a/k/a “Feras Bashiti,” and a/k/a “Firas Bashiti, 40, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court today to an information charging Albashiti with fraud and related activity in connection with access credentials.
According to documents filed in this case and statements made in court:
In May 2023, law enforcement officers were investigating an online forum where malware and malicious code was being offered for sale. Albashiti controlled an online moniker named “r1z” and used it in the online forum. On May 19, 2023, Albashiti sold to an undercover law enforcement officer unauthorized access to the networks of at least 50 victim companies in exchange for cryptocurrency.
The charge of fraud and related activity in connection with access devices carries a maximum penalty of 10 years in prison and a maximum fine of $250,000, or twice the gross amount of gains or losses resulting from the offense. The Justice Department’s Office of International Affairs secured the July 2024 extradition from Georgia of Albashiti. Sentencing is scheduled for May 11, 2026.
Senior Counsel Lamparello credited special agents and members of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Benjamin Levin, Deputy Chief of the Cybercrime Unit in Newark.
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Defense Counsel: Rahul Agarwal, Esq.
albashiti.information.pdfCamden County Felon Sentenced to 133 Months’ Imprisonment for Conspiring to Distribute Cocaine and Possessing a FirearmRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 133 months’ imprisonment for conspiring to distribute more than 5 kilograms of cocaine and possessing a firearm, Senior Counsel Philip Lamparello announced.
Rasheed Amin, 47, of Voorhees, New Jersey, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with one count of conspiring to distribute more than 5 kilograms of cocaine and one count of being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:
On multiple occasions in 2024, Amin flew from Philadelphia, Pennsylvania, to various cities in the western United States to obtain cocaine for further distribution. Amin then mailed parcels containing the cocaine to his Voorhees residence and other addresses in New Jersey, Pennsylvania, and New York. On October 29, 2024, law enforcement officers executed a search warrant at Amin’s Voorhees residence and recovered several kilograms of cocaine, as well as a loaded firearm. Amin—a previously-convicted felon—admitted to possessing the cocaine and the firearm recovered from his residence.
Senior Counsel Lamparello credited inspectors and task force officers of the U.S. Postal Inspection Service’s Philadelphia Division, under the direction of Inspector in Charge Christopher Nielsen, with the investigation leading to the sentencing. He also credited the U.S. Department of Homeland Security, Homeland Security Investigations Newark, under the direction of Special Agent in Charge Michael S. McCarthy, the Camden County Police Department, under the direction of Chief Gabriel Rodriguez, and the Cherry Hill Police Department, under the direction of Chief John Ostermueller, for their assistance.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
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Defense counsel: Ikram Ally, Esq., Assistant Federal Public Defender.
Mexican National Admits to Cocaine Distribution and Illegal Firearm PossessionRead the Press Release
TRENTON, N.J. – A Mexican national admitted to distribution of controlled substances and illegal firearm possession, Senior Counsel Philip Lamparello announced today.
Hector Riano-Corcuera, 33, a citizen and national of Mexico and most recently of East Brunswick, New Jersey, pleaded guilty before U.S. District Judge Zahid N. Quraishi to a two-count Information charging him with distribution of controlled substances and unlawful possession of a firearm by a convicted felon. Riano-Corcuera had been previously charged by complaint with these offenses on June 27, 2025.
According to documents filed in this case and statements made in court:
On or about June 26, 2025, law enforcement officers with the Drug Enforcement Administration arrested Riano-Corcuera after he sold approximately 10 kilograms of cocaine to another individual. Prior to the arrest, Riano-Corcuera fled on foot from the officers before being caught. Once apprehended, officers recovered a loaded Sig Sauer 9mm firearm from a bag that Riano-Corcuera had been wearing. Law enforcement then executed a search of Riano-Corcuera’s residence, where they recovered additional quantities of cocaine, two semiautomatic rifles, three handguns, and a variety of firearm ammunition.
The cocaine distribution charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a fine of up to $10 million. The unlawful possession of a firearm by a convicted felon charge carries a maximum potential penalty of 15 years in prison and a fine of up to $250,000. Sentencing is scheduled for May 13, 2026.
Senior Counsel Lamparello credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Towanda Thorne-James in Newark, with the investigation leading to the guilty plea. He also thanked the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark, the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Linda Estremera, the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, the Ocean County Prosecutor’s Office, under the direction of Bradley D. Billhimer, the Asbury Park Police Department, under the direction of Deputy Chief of Police Guy Thompson, the East Brunswick Police Department, under the direction of Chief of Police Frank LoSacco, the Lakewood Police Department, under the direction of Chief of Police Gregory H. Meyer, the Manchester Township Police Department, under the direction of Chief of Police Antonio Ellis, the Middletown Police Department, under the direction of Chief of Police R. Craig Weber, the Neptune Police Department, under the direction of Chief of Police Anthony Gualario, the Ocean Gate Police Department, under the direction of Chief Michael Kuchta, and the Spotswood Police Department, under the direction of Chief of Police Philip Corbisiero, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Andrea Aldana, Esq., Federal Public Defenders.
riano_corcuera.information.pdfHunterdon County Man Indicted on Possession of Videos and Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Hunterdon County man was arraigned after being indicted on a charge of possessing videos and images of child sexual abuse, Senior Counsel Philip Lamparello announced.
David Tuytjens, 70, of Tewksbury Township, New Jersey, was charged in a one-count Indictment with possession of child pornography. Yesterday, he was arraigned before U.S. District Judge Michael A. Shipp in Trenton federal court and entered a plea of not guilty. Tuytjens was initially charged by complaint on the same offense in April 2025.
According to documents filed in this case and statements made in court:
In December 2024, officers from the New Jersey State Parole Board visited Tuytjens’ residence and discovered various electronic devices, including a 64 gigabyte MicroSD storage card inside of a laptop. Officers conducted their visit because Tuytjens is prohibited from possessing, among other things, Internet-capable devices as an individual under Community Supervision for Life due to a prior State conviction for aggravated sexual assault. An examination of the storage card contents revealed at least 800 images and 30 video files containing child sexual abuse materials (“CSAM”). A review of the CSAM has revealed images depicting prepubescent minors engaged in sexually explicit conduct, images portraying sadistic or masochistic conduct, and sexual abuse or exploitation of an infant or toddler.
Due to Tuytjens’ prior convictions, including a federal conviction for possession of child pornography, the charge of possession of child pornography carries a statutory maximum penalty of 20 years in prison and a mandatory minimum penalty of 10 years in prison. The charge also carries with it a maximum $250,000 fine.
Senior Counsel Lamparello credited special agents of the Child Exploitation and Human Trafficking Task Force in the Newark Office of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, the New Jersey State Parole Board, under the direction of Chairman Samuel J. Plumeri, Jr., and the Hunterdon County Prosecutor’s Office, under the direction of Prosecutor Renée M. Robeson, with the investigation leading to the indictment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
The government is represented by Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office Criminal Division in Trenton.
The charge contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Carlos Diaz-Cobo, Esq.
tuytjens.indictment.pdfThree Men Charged in Bank Fraud Conspiracy Targeting Mail Collection Boxes and Postal VehiclesRead the Press Release
NEWARK, N.J. – Three men were charged with conspiracy to commit bank fraud connected to theft of mail from collection boxes and postal vehicles across Northern New Jersey, Senior Counsel Philip Lamparello announced today.
Jeffrey Bennett, a/k/a “Bizz,” a/k/a “Riley Smith,” 31, of Irvington and Rahway, New Jersey, Aquil Hubbard, 31, of Middlesex and Newark, New Jersey, and Tashon Ragan, a/k/a “Ta,” 26, of Union, New Jersey, were charged by criminal complaint with conspiracy to commit bank fraud. Bennett, Hubbard, and Ragan made their initial appearances in court before U.S. Magistrate Judge André M. Espinosa in Newark federal court. They were detained pending further proceedings.
According to documents filed in the case and statements made in court:
From December 2024 to December 2025, Bennett, Hubbard, and Ragan conspired to steal mail and packages from United States Postal Service mail collection boxes and postal vehicles. The conspirators sought checks, financial instruments, and other items of value from the mail. The conspirators altered checks and attempted to deposit them at various financial institutions in New Jersey, and they used social media to recruit account holders at various financial institutions to further the goals of the conspiracy. Investigators connected Bennett, Hubbard, and Ragan to a series of smash-and-grab burglaries of United States Postal Service vehicles across Northern New Jersey. In those incidents, members of the conspiracy either smashed windows of postal vehicles or opened unlocked vehicle doors and stole trays of mail, often in broad daylight while postal workers were out delivering mail.
The charge of conspiracy to commit bank fraud carries a maximum penalty of 30 years’ imprisonment and a fine of $1,000,000 or twice the gross gain to the defendant or loss to a person other than the defendant, whichever is greater.
Senior Counsel Philip Lamparello credited postal inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation leading to the charges. He also thanked postal inspectors of the United States Postal Service, Office of the Inspector General, Northeast Area Field Office, and agents and investigators from the United States Secret Service, Newark Field Office, as well as law enforcement officers from the Bernards Police Department, Belleville Police Department, Chatham Borough Police Department, Clifton Police Department, East Hanover Police Department, Maplewood Police Department, Middlesex Police Department, Metuchen Police Department, Nutley Police Department, Parsippany Police Department, Rahway Police Department, Roseland Police Department, and Union Police Department.
The government is represented by Assistant U.S. Attorney Michael K. O’Leary of the General 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.
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Defense counsel for Bennett: Laura Sayler, Esq. Assistant Federal Public Defender
Defense counsel for Hubbard: Perry Primavera, Esq.
Defense counsel for Ragan: Adam Elewa, Esq.
Aliens Charged with Illegally Voting in a Federal Election and Making False Statements While Applying for U.S. CitizenshipRead the Press Release
NEWARK, N.J. – A federal grand jury returned separate Indictments charging two Bergen County men with illegally voting in a federal election and making false statements while applying for United States citizenship, Senior Counsel Philip Lamparello announced.
According to the Indictments, which were returned on December 22, 2025, both Muhammad Muzammal, 37, and Muhammad Shakeel, 62, were non-citizens at the time they registered to vote in New Jersey. However, on their registration forms, both men falsely certified and attested that they were United States citizens. After their applications to register were approved, each of the men, still without United States citizenship, cast ballots in the in the November 2020 general election, which included the election for the offices of President and Vice President of the United States. In order to register to vote and vote in federal elections, a person must be a United States citizen.
The Indictments also allege that after they illegally voted in a federal election, Muhammad Muzammal and Muhammad Shakeel each applied to become United States citizens by submitting applications for naturalization (an “N-400”). An N-400 requires the applicant to swear under penalty of perjury that the information they provide in their application is complete, true, and correct. In their respective N-400s, both men falsely claimed that they had never registered to vote or voted in any Federal, state, or local elections.
After they submitted their N-400s, both men were interviewed by an Immigration Services Officer who placed them under oath and questioned them about the answers that the men provided in their respective N-400s. During those interviews, both Muhammad Muzammal and Muhammad Shakeel again falsely asserted that they had never voted in any Federal, state, or local elections.
Muhammad Shakeel, will make his initial appearance before a Magistrate in federal District Court in Trenton on January 21, 2026, and his case has been assigned to District Judge Georgette Castner. Muhammad Muzammal, whose case has been assigned to District Judge Karen M. Williams, will make his initial appearance in federal District Court in Camden on a date to be determined.
If convicted, the defendants face the following maximum sentences:
Count
Offense
Maximum Penalties
1Voting by an Alien in a Federal Election1 year’s imprisonment2False Statements in Relation to Naturalization, in violation of 18 U.S.C. § 1015(a)5 years’ imprisonment3False Statements in Relation to Naturalization, in violation of 18 U.S.C. § 1425(a)10 years’ imprisonmentSenior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy; Homeland Security Investigations, under the direction of Special Agent in Charge Michael McCarthy; and U.S. Citizenship and Immigration Services, under the direction of District Director John Thompson, with the investigations.
This case was brought under the United States Attorney’s Office’s Election Integrity Task Force, a coalition of federal law enforcement partners focused on preserving and protecting the integrity of elections conducted in the District of New Jersey.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charges and allegations contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel:
Rizwan M. Khalid, Esq., (for Muhammad Muzammal and Muhammad Shakeel)
shakeel.indictment.pdf muzammal.indictment.pdfNew Jersey Man Sentenced for Promoting Child Sexual Abuse MaterialRead the Press Release
CAMDEN — A New Jersey man was sentenced yesterday to 14 years in prison and 15 years of supervised release for promoting child sexual abuse material on the dark web.
According to court documents, between Oct. 18, 2020, and Jan. 20, 2023, Declan Golden, 39, of Middletown Township, New Jersey, accessed and engaged with a website on the Tor network known to encourage its users to post and trade child sexual abuse material. While on this website, Golden created numerous posts related to voyeurism and the sexual exploitation of children while encouraging other users to share images with him. Golden also posted links for users to access images of children engaging in sexually explicit conduct and statements about using a spycam on girls in the shower and on the toilet. A search of his devices revealed many videos and image files of child sexual abuse material, including depictions of prepubescent children engaged in sexual acts. In an interview with law enforcement, Golden admitted to viewing child sexual abuse material beginning in 2014.
Golden pleaded guilty in May 2025 to the charge of promoting material containing child pornography involving a prepubescent minor in the U.S. District Court for the District of New Jersey.
Senior Counsel Philip Lamparello for the Criminal and Special Prosecutions Division of the U.S. Attorney’s Office for the District of New Jersey, Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division, and Special Agent in Charge Stefanie Roddy of the FBI Newark Child Exploitation and Human Trafficking Task Force made the announcement.
This case was investigated by the FBI’s Child Exploitation Operational Unit (CEOU). The Department also thanks the Middletown Police Department for its assistance with the investigation.
Assistant U.S. Attorney Christopher Fell for the District of New Jersey and Trial Attorney Anglica Carrasco of the Justice Department’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
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New Jersey Man Sentenced for Promoting Child Sexual Abuse MaterialRead the Press Release
A New Jersey man was sentenced yesterday to 14 years in prison and 15 years of supervised release for promoting child sexual abuse material on the dark web.
According to court documents, between Oct. 18, 2020, and Jan. 20, 2023, Declan Golden, 39, of Middletown Township, New Jersey, accessed and engaged with a website on the Tor network known to encourage its users to post and trade child sexual abuse material. While on this website, Golden created numerous posts related to voyeurism and the sexual exploitation of children while encouraging other users to share images with him. Golden also posted links for users to access images of children engaging in sexually explicit conduct and statements about using a spycam on girls in the shower and on the toilet. A search of his devices revealed many videos and image files of child sexual abuse material, including depictions of prepubescent children engaged in sexual acts. In an interview with law enforcement, Golden admitted to viewing child sexual abuse material beginning in 2014.
Golden pleaded guilty in May 2025 to the charge of promoting material containing child pornography involving a prepubescent minor in the U.S. District Court for the District of New Jersey.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division, Senior Counsel Philip Lamparello for the Criminal and Special Prosecutions Division of the U.S. Attorney’s Office for the District of New Jersey, and Special Agent in Charge Stefanie Roddy of the FBI Newark Child Exploitation and Human Trafficking Task Force made the announcement.
This case was investigated by the FBI’s Child Exploitation Operational Unit (CEOU). The Department also thanks the Middletown Police Department for its assistance with the investigation.
Trial Attorney Anglica Carrasco of the Justice Department’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Christopher Fell for the District of New Jersey are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
New Jersey Doctor Charged in 58-Count Indictment with Distributing Opioids in Exchange for Sexual Favors and Defrauding New Jersey MedicaidRead the Press Release
NEWARK, N.J. – A New Jersey doctor was charged in a 58-count indictment with distributing opioids without a legitimate medical purpose, maintaining a drug-involved premises, and defrauding New Jersey Medicaid by billing for visits that never happened, Senior Counsel Philip Lamparello announced today.
Ritesh Kalra, 52, of Secaucus, New Jersey, was previously charged by criminal complaint in July 2025, and now stands charged by indictment with additional offenses, including 36 counts of distributing opioids outside the usual course of professional practice and not for a legitimate medical purpose, one count of maintaining a drug-involved premises, and 21 counts of health care fraud. Kalra appeared for an arraignment and initial appearance on the indictment today before U.S. District Judge Michael E. Farbiarz in Newark federal.
“The additional charges against Dr. Kalra demonstrate that our Office will continue to pursue justice for victims of the opioid epidemic in New Jersey by prosecuting doctors who, as alleged, use their positions of trust to fuel addiction and exploit vulnerable patients. Physicians who defraud New Jersey’s Medicaid Program for their own personal gain will be held accountable.”
- Senior Counsel Philip Lamparello
“Doctors know the devastation opioid addiction can wreak when left unchecked. Allegedly, Dr. Kalra used his position of power for financial gain, fabricating fake appointments, and in some cases, demanding sexual favors in return for prescriptions. The FBI and its partners work tirelessly against such abuses of power, to ensure the abuser is no longer able to victimize patients. This indictment serves as a warning to others that a prescription pad is not a license to destroy lives,” stated FBI-Newark Special Agent in Charge Stefanie Roddy.
According to documents filed in the case and statements made in court:
Dr. Kalra, an internist in Fair Lawn, New Jersey, allegedly operated a pill mill out of his medical office, where he routinely prescribed high-dose opioids—including oxycodone and promethazine with codeine—to patients without a legitimate medical purpose. Between January 2019 and February 2025, Kalra issued more than 31,000 prescriptions for oxycodone, including days when he wrote upwards of 50 prescriptions. Several of Kalra’s former employees reported that female patients complained that Kalra touched them sexually and demanded sexual favors of them in exchange for opioids. One patient described being sexually assaulted by Kalra on multiple occasions, including forced anal sex during clinical appointments. Another patient continued to receive opioid prescriptions from Kalra when the patient was incarcerated at Essex County Correctional Facility and had no contact with Dr. Kalra.
Kalra also allegedly billed for in-person office visits that never occurred. As part of the health care fraud scheme, Kalra’s electronic medical records allegedly contained false progress notes listing fabricated dates of service, and included examination notes that were generally identical from visit to visit and did not record vital signs.
Each of the 36 distribution counts carries a maximum penalty of 20 years in prison and a $1 million fine. The charge of maintaining a drug-involved premises carries a maximum penalty of 20 years in prison and a $500,000 fine. Each of the 21 health care fraud counts is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross profit or loss caused by the offense, whichever is greatest.
Individuals who believe they may be victims of Dr. Kalra or have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324) or by email at [email protected].
Senior Counsel Philip Lamparello credited the following law enforcement organizations with the investigation leading to today’s charges: the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy; the Drug Enforcement Administration, New Jersey Field Division, under the direction of Special Agent in Charge Towanda Thorne-James; the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; the Internal Revenue Service—Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan; the Social Security Administration Office of Inspector General, under the direction of Special Agent in Charge Amy Connelly; the New Jersey Office of the Attorney General Division of Criminal Justice; and the Fair Lawn Police Department.
The government is represented by Assistant U.S. Attorney Katherine M. Romano, Chief of the General Crimes Unit, and Assistant U.S. Attorney Jessica R. Ecker of the Health Care Fraud and Opioids Enforcement 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.
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Defense counsel: Michael Baldassare, Esq., and Jennifer Mara, Esq.
kalra.indictment.pdfKey Bank Agrees to Pay $7.7 Million to Resolve Branch Manager’s FraudRead the Press Release
CAMDEN, N.J. – KeyBank National Association (“Key Bank), headquartered in Cleveland, Ohio, has entered into a settlement agreement with the United States resolving allegations that the bank violated the False Claims Act by submitting for forgiveness fraudulent loans from the Paycheck Protection Program (PPP), which one of its branch managers had fraudulently conspired to obtain, Senior Counsel Philip Lamparello announced today.
“The Paycheck Protection Program was designed to support small businesses during the pandemic, not to enrich insiders. This resolution holds KeyBank accountable for submitting forgiveness claims it had compelling evidence were fraudulent, makes taxpayers whole, and reinforces our Office’s commitment to holding both individuals and institutions responsible for fraud.”
- Senior Counsel Philip Lamparello
According to the contentions of the United States contained in the settlement agreement:
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses.
Tommy Hawkins was a bank manager at the Conshohocken Branch of Key Bank. In 2020 and early 2021, he worked with his co-conspirators to recruit individuals who owned companies with little or no actual operations to open bank accounts and apply for PPP loans at the bank branch that Hawkins managed. Hawkins helped the recruited individuals submit PPP loan applications that contained materially false representations about the companies’ number of employees and payroll expenses. The applications also included false documentation, including tax forms. Hawkins facilitated approximately four dozen applications, for which the Small Business Association (“SBA”) paid nearly $6 million. Before Key Bank became aware of the scheme, Hawkins received incentive compensation through the bank related to opening new business bank accounts for the companies that received fraudulent PPP loans. In doing so, he violated Key Bank’s policies.
In spring 2021, Key Bank detected suspicious patterns in Hawkins’ origination of new business accounts. After an internal investigation, Key Bank disclosed to the SBA its concerns with eighteen loans Key identified as potentially fraudulent. Over the ensuing months, Key Bank’s investigations identified approximately a dozen additional loans that were likely fraudulent, and it disclosed those to the SBA. Key Bank did not investigate or otherwise detect fraud in the remaining seventeen loans to Fraudulent PPP Borrowers that Hawkins facilitated during that time. Notwithstanding its concerns with the loans, Key Bank submitted forgiveness applications or guaranty purchase forms to the SBA for all forty-eight loans. Because each individual loan was below $150,000, SBA granted that forgiveness on an expedited basis.
Key Bank cooperated in the investigation of Hawkins’ misconduct, and the settlement reflects that cooperation. Key Bank has agreed to pay $7,770,595.25 to resolve claims under the civil False Claims Act and CARES Act.
“Today’s settlement of $7.7 million holds Key Bank accountable for violating the False Claims Act. This settlement resolves allegations that the bank submitted fraudulent loan applications for forgiveness under the Paycheck Protection Program. The bank did so, despite having concerns about the origination of many of the loans,” said Special Agent in Charge Patricia Tarasca, of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), New York Region. “The FDIC OIG remains committed to working with our law enforcement partners to investigate fraud that occurred in the Paycheck Protection Program, and other instances of fraud that threaten to undermine the integrity of our Nation’s financial institutions.”
In addition to civil settlement, the U.S. Attorney’s Office Criminal Division previously charged seven individuals as part of the criminal conspiracy. On May 28, 2024, Tommy Hawkins pleaded guilty to an Information charging him with one count of conspiracy to commit bank fraud. In October 2024, Hawkins was sentenced to 65 months’ imprisonment.
On July 5, 2023, William Ingram pleaded guilty to an Information charging him with conspiracy to commit bank fraud. He has not yet been sentenced.
On July 10, 2023, Yasha Barjona pleaded guilty to an Information charging him with conspiracy to commit bank fraud. He has not yet been sentenced.
On July 17, 2024, Lisa Smith pleaded guilty to an Information charging her with conspiracy to commit bank fraud. She has not yet been sentenced.
On May 23, 2024, Sieff Robert Sargeant pleaded guilty to an Information charging him with money laundering by transacting in criminal proceeds. On October 3, 2024, he was sentenced to 6 months’ imprisonment and 6 months of home detention with location monitoring.
On April 17, 2024, Eric Rivera was indicted on one count of bank fraud conspiracy, three counts of bank fraud, one count of wire fraud conspiracy, two counts of wire fraud, one count of money laundering conspiracy, and eight counts of money laundering.
Also on April 17, 2024, James Wessels was indicted on with one count of bank fraud conspiracy, three counts of bank fraud, and one count of money laundering conspiracy.
The charges and allegations contained in the Indictment against Eric Rivera and James Wessels are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Senior Counsel Lamparello credited with the investigation special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, New York Region, under the direction of Special Agent-in-Charge Patricia Tarasca; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs in Philadelphia; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Corwin Rattler; and special agents and attorneys of the Small Business Administration, Office of Inspector General, under the direction of Supervisory Criminal Investigator Angelo Palmeri in New York.
The government is represented by Assistant U.S. Attorney Paul W. Kaufman of the Health Care Fraud and Opioid Enforcement Unit. The government is represented in the parallel criminal investigation by former Assistant United States Attorney Daniel A. Friedman and Attorney-in-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden.
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.
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Counsel for Key Bank: Justin Herdman, Adam Hollingsworth, and Brittany Wilhelm, Jones Day, Cleveland, OH
keybank.agreement.pdfTD Bank Insider Pleads Guilty to Facilitating Money LaunderingRead the Press Release
A former New York-based employee of TD Bank N.A, Wilfredo Aquino, pleaded guilty today to facilitating a money laundering network’s movement of hundreds of millions of dollars through TD Bank accounts.
“The defendant leveraged his position at TD Bank and facilitated the criminal activity of a money laundering network that moved hundreds of millions of dollars through the bank’s accounts,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “During the illicit scheme, the defendant evaded reporting requirements to hide the identity of the leader of the money laundering network. The Criminal Division is fully committed to rooting out money-laundering networks and their facilitators that exploit the security and stability of our country’s banking system.”
“Aquino helped criminals launder money from inside TD Bank,” said Senior Counsel Philip Lamparello for the Criminal and Special Prosecutions Division of the U.S. Attorney’s Office for the District of New Jersey. “Bank employees are the first line of defense against money laundering, fraud, and other financial crimes. When bank employees ignore their obligations and instead use their positions to commit crimes and line their own pockets, we will not hesitate to hold them accountable.”
“Wilfredo Aquino’s position at TD Bank required him to report suspicious customer activity and adhere to robust anti-money laundering regulations,” said Special Agent in Charge Jenifer L. Piovesan of the IRS Criminal Investigation (IRS-CI) Newark Field Office. “Instead, he turned a blind eye to complying with the law and prioritized enriching himself. IRS-CI will continue working with our law enforcement partners to investigate individuals taking advantage of our financial system through criminal activity.”
Aquino, 47, of New York, pleaded guilty to a one-count information charging him with conspiring to launder monetary instruments. He is scheduled to be sentenced on May 12.
According to court filings, beginning in 2019 and continuing until February 2021, Aquino, then a TD Bank assistant store manager, leveraged his position to facilitate a money laundering network’s movement of hundreds of millions of dollars through TD Bank accounts. During that time, the leader of the network, Da Ying Sze, also known as David, and his co-conspirators (collectively known as David’s Network) moved approximately $474 million through TD Bank accounts by depositing cash at TD Bank stores in New York, New Jersey, and elsewhere. In February 2022, David pleaded guilty to coordinating a $653 million money laundering conspiracy, operating an unlicensed money transmitting business, and bribing bank employees in connection with financial transactions.
While David’s Network used a number of TD Bank stores to conduct its money laundering activity, it laundered the most money through Aquino’s Midtown Manhattan store. Nobody processed more transactions for David’s Network at the Midtown Manhattan store than Aquino.
During the course of David’s money laundering scheme, Aquino processed approximately 1,680 official bank checks for David’s Network, totaling more than approximately $92 million. Nearly all of these bank checks were funded with a corresponding cash deposit exceeding $10,000, which triggered TD Bank’s legal requirement to file a currency transaction report (CTR). Although Aquino knew that David was conducting these cash deposits, Aquino never identified David as the “conductor” on the CTR. Aquino also knew that TD Bank had closed other accounts linked to David for suspicious activity; one colleague even warned Aquino that David’s activity “looks like money laundering.” In February 2021, Aquino facilitated three of David’s money laundering transactions, totaling almost $2 million in cash, in a third party’s account. He failed to report David as the conductor of the transaction, thus concealing David’s role in the money laundering scheme.
Aquino accepted numerous retail gift cards from David totaling over $11,000 in return for his facilitation of this scheme, including for the three transactions in February 2021.
The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater.
IRS-CI and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) investigated the case. The Department also thanks the Morristown Police Department for its assistance with the investigation.
Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Marko Pesce, Chief of the Bank Integrity, Money Laundering, and Recovery Unit for the District of New Jersey are prosecuting the case.
The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.
TD Bank Insider Pleads Guilty to Facilitating $2M in Money LaunderingRead the Press Release
NEWARK – A former New York-based employee of TD Bank N.A, Wilfredo Aquino, pleaded guilty today to facilitating a money laundering network’s movement of hundreds of millions of dollars through TD Bank accounts.
“Aquino helped criminals launder money from inside TD Bank. Bank employees are the first line of defense against money laundering, fraud, and other financial crimes. When bank employees ignore their obligations and instead use their positions to commit crimes and line their own pockets, we will not hesitate to hold them accountable.”
- Senior Counsel Philip Lamparello
“The defendant leveraged his position at TD Bank and facilitated the criminal activity of a money laundering network that moved hundreds of millions of dollars through the bank’s accounts,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “During the illicit scheme, the defendant evaded reporting requirements to hide the identity of the leader of the money laundering network. The Criminal Division is fully committed to rooting out money-laundering networks and their facilitators that exploit the security and stability of our country’s banking system.”
“Wilfredo Aquino’s position at TD Bank required him to report suspicious customer activity and adhere to robust anti-money laundering regulations,” said Special Agent in Charge Jenifer L. Piovesan of the IRS Criminal Investigation (IRS-CI) Newark Field Office. “Instead, he turned a blind eye to complying with the law and prioritized enriching himself. IRS-CI will continue working with our law enforcement partners to investigate individuals taking advantage of our financial system through criminal activity.”
Aquino, 47, of New York, pleaded guilty to a one-count information charging him with conspiring to launder monetary instruments. He is scheduled to be sentenced on May 12.
According to court filings, beginning in 2019 and continuing until February 2021, Aquino, then a TD Bank assistant store manager, leveraged his position to facilitate a money laundering network’s movement of hundreds of millions of dollars through TD Bank accounts. During that time, the leader of the network, Da Ying Sze, also known as David, and his co-conspirators (collectively known as David’s Network) moved approximately $474 million through TD Bank accounts by depositing cash at TD Bank stores in New York, New Jersey, and elsewhere. In February 2022, David pleaded guilty to coordinating a $653 million money laundering conspiracy, operating an unlicensed money transmitting business, and bribing bank employees in connection with financial transactions.
While David’s Network used a number of TD Bank stores to conduct its money laundering activity, it laundered the most money through Aquino’s Midtown Manhattan store. Nobody processed more transactions for David’s Network at the Midtown Manhattan store than Aquino.
During the course of David’s money laundering scheme, Aquino processed approximately 1,680 official bank checks for David’s Network, totaling more than approximately $92 million. Nearly all of these bank checks were funded with a corresponding cash deposit exceeding $10,000, which triggered TD Bank’s legal requirement to file a currency transaction report (CTR). Although Aquino knew that David was conducting these cash deposits, Aquino never identified David as the “conductor” on the CTR. Aquino also knew that TD Bank had closed other accounts linked to David for suspicious activity; one colleague even warned Aquino that David’s activity “looks like money laundering.” In February 2021, Aquino facilitated three of David’s money laundering transactions, totaling almost $2 million in cash, in a third party’s account. He failed to report David as the conductor of the transaction, thus concealing David’s role in the money laundering scheme.
Aquino accepted numerous retail gift cards from David totaling over $11,000 in return for his facilitation of this scheme, including for the three transactions in February 2021.
The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater.
IRS-CI and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) investigated the case. The Department also thanks the Morristown Police Department for its assistance with the investigation.
Assistant U.S. Attorney Marko Pesce, Chief of the Bank Integrity, Money Laundering, and Recovery Unit for the District of New Jersey and Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section are prosecuting the case.
The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.
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aquino.information.pdfTwenty-Eight Defendants Charged with Narcotics and Firearms Offense for their Roles in Enterprise Associated with the Bloods Street GangRead the Press Release
NEWARK, N.J. – Twenty-six people have been charged for their roles in a drug trafficking organization affiliated with a neighborhood street gang that operated and distributed large quantities of fentanyl, heroin, and crack cocaine in Riverside Villa Public Housing Complex and other areas of Newark, Senior Counsel Philip Lamparello announced. Two additional people were charged for firearms offenses, including their role in a shooting in a rival gang’s territory.
Tahjuan Ferrell, a/k/a “Jers,” Raymon Rodriguez, a/k/a “Ray Ray,” Ricky Colon, Jr., Sayyied Anderson, a/k/a “Sal,” Carnell Wright, a/k/a “Jay,” Briant Haynes, a/k/a “B,” Rashon Wheeler, a/k/a “Petey,” Demetrius Julu, Nero Whitehead, a/k/a “Woo,” Dawud Cross, a/k/a “Mu,” Joseph Johnson, a/k/a “Pearl,” Yusef Mack, a/k/a “Gutter,” Alsharick King, a/k/a “Ghost,” Montrel Jordan, a/k/a “Trillz,” Patrick Jordan, a/k/a “Swerve,” Raheam Springer, Ibn Rogers, Blake Howard, Daniel Valentin, Mekhi Lawrence, a/k/a “MK,” Craig Walker, a/k/a “Lean,” Kevin Wiley, a/k/a “LB,” Quince Melvin, Nakki Melvin, Ricardo Gonzalez, a/k/a “Ricky” and Quadir Simmons a/k/a “Scoom” all of Essex County, New Jersey, were charged with one count of conspiracy to distribute fentanyl, heroin, and cocaine.
Quasir Miranda, a/k/a “Space,” and Zakiyy Houser, a/k/a “GBK” are also each charged with unlawful possession of ammunition in a school zone in connection with the February 18, 2025 attempted shooting of a rival gang member.
Several of the defendants have already made initial court appearances before U.S. Magistrate Judge Cari Fais in Newark federal court. Previously, twenty-five defendants were arrested and made initial court appearances before U.S. Magistrate Judge Jessia S. Allen in Newark federal court and before U.S. Magistrate Judge Natalie Hirt Adams in Tampa, Florida.
The defendants are members or associates of a neighborhood-based street gang operating in and around the Riverside Villa Public Housing Complex, 4th Avenue and North 12th Street, and the Garden Spires Apartments in Newark, New Jersey (the “Enterprise”), among other areas. The Enterprise is affiliated with the Bloods criminal street gang.
Law enforcement conducted extensive surveillance of the area, made numerous controlled purchases and seizures of narcotics, and analyzed telephone records, all of which demonstrated extensive interactions among the defendants.
Those charged in the drug conspiracy face a mandatory minimum penalty of 10 years in prison, maximum potential penalty of life in prison, and a $10 million fine. Miranda and Houser each face up to 5 years in prison for unlawful possession of ammunition in a school zone.
Hundreds of members of law enforcement were instrumental in the investigation and arrests of these defendants. Special Counsel Lamparello credited special agents of the Bureau of Alcohol, Tobacco, and Firearms under the direction of Special Agent in Charge L.C. Cheeks; the Drug Enforcement Administration, under the direction Special Agent in Charge Towanda R. Thorne-James with the investigation leading to the charges. He also thanked police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda, U.S. Customs and Border Protection officers, under the Director of Field Operations Francis Russo; HSI New York Field Office, under the direction of Special Agent in Charge Ricky J. Patel; HSI Newark Field Office, under the direction of Special Agent in Charge Michael McCarthy; members of the United Marshals Service, under the direction of U.S. Marshal for the District of New Jersey Juan Mattos; detectives of the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens, II and Chief Mitchell G. McGuire, III; police officers and detectives of the East Orange Police Department, under the direction of Director Maurice Boyd and Chief Phyllis L. Bindi; detectives of the New Jersey State Police, under the direction of Colonel Patrick J. Callahan police officers and detectives with the Belleville Police Department, under the direction of Chief Mark Minichini; as well as police officers and detectives with the Bergen County Prosecutor’s Office, Passaic County Prosecutor’s Office, Union County Prosecutor’s Office, Hudson County Prosecutor’s Office, Morris County Prosecutor’s Office, Middlesex County Prosecutor’s Office, Orange Police Department, Bloomfield Police Department, Jersey City Police Department, Florham Park Police Department, Morristown Police Department, and Ramsey Police Department for their assistance in the apprehension of the members of the Enterprise.
The investigation was conducted as part of the Newark Violent Crime Initiative (“VCI”). 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 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 Drug Enforcement Administration’s (DEA) New Jersey Division, Homeland Security Investigations, 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, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The government is represented by Assistant U.S. Attorneys Sean Nadel and Jason Goldberg of the Narcotics and International Trafficking Unit in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense counsel:
Tahjuan Ferrell: Frank P. Arleo, Esq.
Raymon Rodriguez: Rahul Agarwal, Esq.
Sayyied Anderson: Michael Pappa, Esq.
Carnell Wright: Ernesto Cermiele, Esq.
Briant Hanyes: Arthur Paul Condon, Jr., Esq.
Rashon Wheeler: Stephen N. Dratch, Esq.
Demetrius Julu: Laura K. Gasiorowski, Esq.
Nero Whitehead: Charles McKenna, Esq.
Dawud Cross: Michael V. Gilberti, Esq.
Joseph Johnson: Maximillian A. Novel, Esq.
Yusef Mack Michael Rosas, Esq.
Alsharick King: Aidan P. O’Connor, Esq.
Montrel Jordan: James Seplowitz, Esq.
Patrick Jordan: William Strazza, Esq.
Raheam Springer: Mary Toscano Carpenito, Esq.
Ibn Rogers: Stephen Turano, Esq.
Blake Howard: Wanda Akin, Esq.
Daniel Valentin: Adrien Moncur, Esq.
Mekhi Lawrence: John A. Azzarello, Esq.
Craig Walker: Carlos Diaz-Cobo, Esq.
Kevin Wiley: Gary Mizzone, Esq.
Quince Melvin: Alyssa A. Cimino, Esq.
Nakki Melvin: Charles Alvarez, Esq.
Ricardo Gonzalez: Shawn Barnes, Esq.
Quadir Simmons: Lorraine Gauli-Rufo, Esq.
Quasir Miranda: John McMahon, Esq.
Zakiyy Houser: F.R. “Chip” Dunne, III, Esq.
grafton_et_al.indictment.pdfTwo Members of the Neighborhood Bloods Street Gang in Jersey Convicted of Murdering Pregnant Woman and Two OthersRead the Press Release
NEWARK, N.J. – Two members of the Neighborhood Bloods street gang, which operated in Jersey City, New Jersey, were convicted of multiple charges stemming from the January 16, 2017, murder of three Jersey City residents, including a twenty-five-year-old pregnant woman, Senior Counsel Philip Lamparello announced.
“These convictions hold accountable violent gang members who carried out a calculated, execution-style triple homicide, including the murder of a young pregnant woman. The defendants planned these killings with chilling deliberation and then attempted to silence their own associate to avoid justice. Today’s verdicts make clear that this level of brutality will be met with the full force of federal prosecution, and that those who terrorize our communities will face severe consequences.”
- Senior Counsel Philip Lamparello
“Through the Jersey City Violent Crime Initiative, the full force of NJ Law enforcement is called upon in the aftermath of heinous crimes such as this triple homicide,” said FBI Newark Special Agent in Charge Stefanie Roddy. “This show of force will make clear to anyone contemplating gang-related or other violent crimes: do not expect to walk free in New Jersey.”
Following a month-long jury trial, Markell Brown, a/k/a “Sayboy,” 37, of Jersey City, New Jersey, was convicted of conspiracy to commit murder in aid of racketeering, three counts of murder in aid of racketeering, three counts of discharging a firearm in furtherance of a crime of violence, and three counts of causing death through use of a firearm. Terence Shaw, a/k/a “Sweet Meat,” 37, of Jersey City, New Jersey, was convicted of conspiracy to commit murder in aid of racketeering, two counts of murder in aid of racketeering, two counts of discharging a firearm in furtherance of a crime of violence, and two counts of causing death through use of a firearm. With respect to Shaw, the jury could not come to a unanimous verdict as to one count of murder in aid of racketeering, one count of discharging a firearm in furtherance of a crime of violence, and one count of causing death through use of a firearm
According to documents filed in this case and the evidence at trial:
On January 16, 2017, Brown and Shaw murdered a rival gang member with whom they had been feuding, along with the rival gang member’s pregnant girlfriend. Brown then murdered one of Brown and Shaw’s own associates, who had accompanied them to commit the murders. Brown and Shaw planned the murders through, among other things, orchestrating the use of a stolen U-Haul truck and purchasing two-way walkie-talkie radios to use during the murders. Brown and Shaw then used their associate to obtain access to the rival gang member’s apartment. After entering that residence on Fulton Avenue in Jersey City shortly before 10:00 p.m., Brown and Shaw executed the rival gang member, shooting him in the back of the head, the left arm, and the right shoulder. They also executed the twenty-five-year-old woman, shooting her in the back of the head and the chest. As Brown left the Fulton Avenue apartment, he shot his and Shaw’s associate in the chest to eliminate the possibility that he would provide information to law enforcement.
The conspiracy to commit murder in aid of racketeering carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Brown and Shaw face mandatory life sentences for each count of murder in aid of racketeering. For each count of discharging a firearm during a crime of violence, they face mandatory consecutive sentences of ten years’ imprisonment. The counts charging Brown and Shaw with causing death through use of a firearm carry maximum life sentences. Sentencing is scheduled for April 22, 2026.
Senior Counsel Lamparello credited the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Wayne Mello, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, as well as special agents of the FBI, Newark Field Division, under the direction of Special Agent in Charge Stefanie Roddy with the investigation leading to the charges and arrests.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Kendall Randolph and Senior Trial Counsel Robert Frazer of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark and Assistant U.S. Attorney James Graham of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
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Defense counsel:
Brown - Stephen Turano, Esq. New York, and Thomas Ambrosio, Esq.Shaw - Brooke Barnett, Esq. and Henry Klingeman, Esq.
brown_shaw.indictment.pdfTwo Absecon Men Admit to Conspiring to Defraud the IRSRead the Press Release
CAMDEN, N.J. – Two Absecon men admitted to conspiring with each other to defraud the Internal Revenue Service by filing false tax returns that concealed their motels’ cash payroll, Senior Counsel Philip Lamparello announced.
Dhruvesh Patel, 37, and Mayank Ray, 36, both of Absecon, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn to informations charging each with one count of conspiring to defraud the IRS.
According to documents filed in this case and statements made in court:
Patel and Ray operated two motels in Atlantic City, New Jersey. Their motels generated substantial gross receipts from customers who paid for their motel rooms in cash. As part of the conspiracy, Patel and Ray used a large portion of the cash to pay employees in cash and kept some of the resulting cash for personal use. Patel and Ray caused to be prepared and filed with the IRS false employment tax returns that concealed the cash wages and false individual income tax returns that underreported the income they earned from the motels. Patel admitted that the conspiracy and his relevant conduct caused a loss greater than $250,000, and Ray admitted that the conspiracy and his relevant conduct caused a loss of approximately $129,512.
The count of conspiracy carries a maximum penalty of 5 years in prison and a fine of up to $250,000. Sentencing for both Patel and Ray are scheduled for May 11, 2026.
Senior Counsel Lamparello credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
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Defense counsel for Patel: Jed Silversmith, Esq., Jenkintown, Pennsylvania
Defense counsel for Ray: Ira Slovin, Esq., Haddon Heights, New Jersey
patel.information.pdf ray.information.pdfFormer Newark City Council Member Sentenced to 18 Months for Bribery, Kickback, and Tax Fraud Scheme; Co-Conspirator Sentenced to 25 MonthsRead the Press Release
NEWARK, N.J. – Joseph A. McCallum, Jr. 70, a former member of the Newark Municipal Council who also served on the Board of Directors of the Newark Community Economic Development Corporation (“NCEDC”), was sentenced on December 2, 2025 to 18 months’ imprisonment and one year of supervised release for participating in a scheme to obtain bribes and kickbacks and subscribing to a false personal tax return for 2018. Malik Frederick, 65, a former consultant for developers seeking construction and real estate deals in Newark, was sentenced on December 4, 2025, to 25 months’ imprisonment and one year of supervised release for his role in the same scheme and for subscribing to a false personal tax return for 2017, Senior Counsel Philip Lamparello announced.
“Combatting public corruption in New Jersey is a top priority for our Office. Crimes like these erode public trust and undermine confidence in the institutions meant to serve the community. We will continue to investigate and prosecute public officials and others who seek to enrich themselves at the public’s expense by engaging in bribery and kickback schemes. We thank our federal partners, including the FBI, IRS, and HUD, for their continued partnership in these cases.”
- Senior Counsel Philip Lamparello
McCallum previously pleaded guilty before U.S. District Judge William J. Martini to an Information charging him with one count of wire fraud for devising a scheme, using interstate wire communications, to defraud Newark and the NCEDC of the right to McCallum’s honest services and one count of subscribing to a false personal tax return for calendar year 2018. Frederick previously pleaded guilty before Judge Martini to participating in the honest services wire fraud conspiracy and one count of subscribing to a false personal tax return.
According to documents filed in these cases and statements made in court:
From 2017 through February 2020, Frederick paid concealed bribes and kickbacks to McCallum, who was then a member of the Newark City Council, representing the West Ward of Newark, and an NCEDC Board member. These bribes and kickbacks were funded by developers, contracting companies, and other businesses seeking contracts and approvals principally related to development, construction, and real estate projects and deals in Newark. Frederick and others solicited these developers to hire Frederick’s consulting company for “access,” and were introduced to McCallum as the Councilman behind the project or deal of interest to them. McCallum then received concealed bribes and kickbacks from the fees that Frederick obtained from those who retained his company.
In exchange, McCallum used his official positions on the City Council and NCEDC to provide assistance in support of the projects and deals of interest to the developers and others who retained Frederick’s company. For those who refused to pay or were hesitant to pay the fees that Frederick charged, McCallum and Frederick intended to prevent them from obtaining contracts and work from the NCEDC and the City of Newark. McCallum and Frederick took significant steps to conceal these bribes and kickbacks and other material aspects of their arrangement and dealings with these developers and others.
The bribes and kickbacks that McCallum sought and received through Frederick included:
- On April 11, 2017, McCallum accepted a $16,000 check from Frederick’s company bank account in exchange for McCallum’s official assistance and favors for Frederick as specific opportunities related to construction projects in Newark arose that were of interest to the contracting company.
- On October 29, 2018, McCallum accepted a $25,000 check from Frederick’s company bank account in exchange for McCallum’s official assistance to Developer 1’s company in acquiring City-owned properties in the West Ward for a redevelopment project.
- From October 2019 through early 2020, McCallum also sought to obtain bribes from Frederick funded by Developer 2’s company, which was seeking to acquire and redevelop properties in Newark, including multiple City-owned lots in the West Ward and the City Council’s passage of a resolution for a redevelopment agreement related to those lots. On October 9, 2019, McCallum accepted $500 in cash from Frederick at a cigar lounge in Newark, funded by one of the monthly payments that Developer 2’s company made to Frederick’s company in relation to the redevelopment agreement that Developer 2 sought. In addition, in early 2020, McCallum, using Frederick to assist him, sought a balloon payment of $100,000 from Developer 2 once McCallum secured the City Council’s approval of the redevelopment agreement with the passage of the official resolution approving the deal.
- From October 2019 through January 2020, McCallum planned to share payments with Frederick from a business owner in Newark seeking to sell property to and from Developer 1, who was seeking to acquire and develop the property, in exchange for McCallum’s official assistance to ensure Developer 1’s acquisition and eventual development of City-owned lots adjoining the Seller’s Property.
In addition to paying the bribes and kickbacks to McCallum and attempting to obtain payments to be used for bribes and kickbacks, Frederick sought to have a modular home company that was in negotiations with the NCEDC on a development project in Newark to retain Frederick’s company and obtain a $40,000 payment. Frederick intended to share the $40,000 payment with a NCEDC official (labeled “Co-Conspirator 2” in the Information) who referred Frederick to the modular home company and expected a portion of whatever Frederick would be paid. After the modular home company refused to retain Frederick’s company, it did not receive a contract from the NCEDC.
Senior Counsel Lamparello credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Stefanie Roddy; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Shawn A. Rice, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Francesca Liquori and Matthew Specht of the U.S. Attorney’s Office’s Special Prosecutions Division.
All other co-conspirators identified in the Information are presumed innocent until proven guilty.
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Defense counsel:
Ray Hamlin, Esq. (for Joseph A. McCallum, Jr.)
Hassen Abdellah, Esq. (for Malik Frederick)
Six Individuals Charged in $41 Million Insider Trading and Market Manipulation Scheme Involving Cancer Drug and Opioid Treatment CompaniesRead the Press Release
NEWARK, N.J. – Six individuals were charged for their participation in a years-long scheme to trade securities based on material non-public information (“MNPI”), Senior Counsel Philip Lamparello announced.
“As alleged, the defendants engaged in insider trading and market manipulation on a massive scale—using stolen information, falsified data, and fake press releases to mislead investors and enrich themselves. This Office will continue to pursue complex financial fraud schemes that threaten the fairness and transparency of our markets and harm individual investors.”
- Senior Counsel Philip Lamparello
“The FBI takes allegations of insider trading with the utmost seriousness,” said FBI Newark Special Agent in Charge, Stefanie Roddy. “Shoukat and his co-conspirators benefitted greatly from their years-long scheme, and cheated the system to reap their rewards. As complex as a financial fraud scheme is, the FBI will endeavor to stay one step ahead of these alleged criminals.”
Muhammad Saad Shoukat (“Saad Shoukat”), 33, his brothers Muhammad Arham Shoukat (“Arham Shoukat”), 35, and Muhammad Shahwaiz Shoukat (“Shahwaiz Shoukat”), 36—all dual-U.S. and Pakistani citizens—and his friends Daniyal Khan (“Khan”), 33, a dual-U.K and Pakistani citizen, and Izunna Okonkwo (“Okonkwo”), 33, a dual-U.S. and Nigerian citizen, were charged in a complaint that was unsealed today.
Gyunho Justin Kim (“Kim”), 32, of San Francisco, California, was charged in a separate complaint and made an initial appearance before the Honorable Michael A. Hammer, United States Magistrate Judge, on December 12, 2025.
According to documents filed in this case and statements made in court:
The charges in this case arise from three overlapping securities fraud schemes that occurred at various points from June 2020 through February 2024: (i) a multi-million-dollar insider trading scheme (the “Insider Trading Scheme”); (ii) a scheme to manipulate the stock price of a biopharmaceutical company developing a treatment for breast cancer (“Olema Manipulation Scheme”); and (iii) a scheme to manipulate the stock price of a different biopharmaceutical company seeking to prevent opioid overdoses (“Opiant Manipulation Scheme,” together with the Olema Manipulation Scheme, the “Market Manipulation Schemes”).
The Insider Trading Scheme
Kim worked at an investment bank that was actively involved in multiple mergers and acquisitions of publicly traded healthcare and biopharmaceutical companies. Kim obtained MNPI about many of these pending deals, either by working on deals directly or from others who did. Kim illegally shared MNPI about at least nine of these deals with Saad Shoukat, who traded on that information by himself and through others. Saad Shoukat also tipped off others—including Arham Shoukat, Shahwaiz Shoukat, Khan, and Okonkwo—who similarly traded and profited from the MNPI. Overall, Saad Shoukat and his co-conspirators received illicit profits from the Insider Trading Scheme totaling at least $41 million.
Olema Manipulation Scheme
Saad Shoukat, Arham Shoukat, and others actively manipulated the stock price of Olema, a publicly traded company. Olema focused on developing breast cancer treatment through a drug called OP-1250. From the spring of 2021, Saad Shoukat and Arham Shoukat began investing in Olema stock and encouraged others to invest in it. After buying substantial stock in Olema, Saad Shoukat, Arham Shoukat, and others accessed confidential information showing that OP-1250 was less effective than Saad Shoukat and Arham Shoukat had hoped. Saad Shoukat, Arham Shoukat, and others then falsified the OP-1250 data the co-conspirators had illegally accessed, and publicly disseminated it in a manner that made it look like the data was real and came from Olema. The release of the false data—which inflated the drug’s efficacy—temporarily caused Olema’s stock price to increase, during which Saad Shoukat, Arham Shoukat, and others profited and avoided losses by selling large numbers of shares in Olema stock.
Opiant Manipulation Scheme
Saad Shoukat, his brothers, and others also manipulated the stock price of Opiant, another publicly traded company. Opiant was developing an opioid overdose treatment. Kim provided MNPI to Saad Shoukat about a company seeking to acquire Opiant. Based on that MNPI, Saad Shoukat and others bought Opiant stock. But that potential acquisition stalled, and Saad Shoukat and others were stuck with their stock purchases. In response, in or around April 2022, Saad Shoukat, his brothers, and others—using a fake Opiant website and fake Opiant email addresses that appeared legitimate—caused the publication of a fake press release announcing a purported merger and acquisition involving Opiant and another company. The fake press release drove up Opiant’s stock approximately 29%. Saad Shoukat, his brothers, and others profited by selling off shares during that spike, causing substantial losses to victim investors.
If convicted, the defendants face the following maximum sentences:
CountOffenseDefendantsMaximum Penalties1Conspiracy to Commit Securities Fraud, in violation of 18 U.S.C. § 1349Saad Shoukat, Arham Shoukat, Shahwaiz Shoukat, Khan, Okonkwo, and Kim25 years’ imprisonment2Conspiracy to Commit Insider Trading, in violation of 18 U.S.C. § 371Saad Shoukat, Arham Shoukat, Shahwaiz Shoukat, Khan, Okonkwo, and Kim5 years’ imprisonment3Securities Fraud, in violation of 18 U.S.C. § 1348Saad Shoukat, Arham Shoukat, Shahwaiz Shoukat, Khan, Okonkwo, and Kim25 years’ imprisonment4Insider Trading, in violation of 15 U.S.C., §§ 78j(b) and 78ff; 17 C.F.R., § 240.10b-5Saad Shoukat, Arham Shoukat, Shahwaiz Shoukat, Khan, Okonkwo, and Kim20 years’ imprisonment5Conspiracy to Commit Wire Fraud, in violation of 18 U.S.C. § 1349Saad Shoukat, Arham Shoukat, Shahwaiz Shoukat, Khan, Okonkwo, and Kim20 years’ imprisonment6Wire Fraud, in violation of 18 U.S.C. § 1343Saad Shoukat, Arham Shoukat, Shahwaiz Shoukat, Khan, Okonkwo, and Kim20 years’ imprisonment7Conspiracy to Commit Market Manipulation Fraud, in violation of 18 U.S.C. § 1349Saad Shoukat and Arham Shoukat25 years’ imprisonment8Conspiracy to Commit Market Manipulation Fraud, in violation of 18 U.S.C. § 1349Saad Shoukat, Arham Shoukat, and Shahwaiz Shoukat25 years’ imprisonment9Conspiracy to Commit Market Manipulation Fraud, in violation of 15 U.S.C., §§ 78j(b) and 78ff; 17 C.F.R., § 240.10b-5Saad Shoukat and Arham Shoukat20 years’ imprisonment10Conspiracy to Commit Market Manipulation Fraud, in violation of 15 U.S.C., §§ 78j(b) and 78ff; 17 C.F.R., § 240.10b-5Saad Shoukat, Arham Shoukat, and Shahwaiz Shoukat20 years’ imprisonment11Conspiracy to Commit Wire Fraud, in violation of 18 U.S.C. § 1349Saad Shoukat and Arham Shoukat20 years’ imprisonment12Conspiracy to Commit Wire Fraud, in violation of 18 U.S.C. § 1349Saad Shoukat, Arham Shoukat, and Shahwaiz Shoukat20 years’ imprisonmentSenior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation.
The government is represented by Assistant U.S. Attorneys George Barchini of the Bank Integrity, Money Laundering, and Recovery Unit and Aaron Webman, Deputy Chief of the Economic 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.
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Defense counsel:
Muhammad Saad Shoukat: Chris Christie, Morristown, NJ
Muhammad Arham Shoukat: Chris Christie, Morristown, NJ
Muhammad Shahwaiz Shoukat: Chris Christie, Morristown, NJ
Daniyal “Dan” Khan: Unknown
Izunna “Zunnie” Okonkwo: Scott McBride, Roseland, NJ and Alexey Tarasov, Rosenberg, Texas.
Gyunho Justin Kim: Timothy Crudo, San Francisco, CA
shoukat_et_al.complaint.pdfNew Jersey Business Owner Sentenced to 87 Months for $172 Million Fraud and Money Laundering SchemeRead the Press Release
NEWARK, NJ. – A New Jersey business owner was sentenced to 87 months in prison for conspiring to defraud Medicare of $172 million, commit money laundering, and pay kickbacks and bribes in violation of the Anti-Kickback Statute, Senior Counsel Philip Lamparello announced.
U.S. District Judge Michael E. Farbiarz imposed the sentence on Aaron Neil Williamsky, 65, of Marlboro, New Jersey, in Newark federal court on November 17, 2025. Williamsky was also ordered to pay more than $172 million in restitution.
Williamsky previously pleaded guilty to conspiracy to commit health care fraud, conspiracy to commit wire fraud, conspiracy to commit money laundering, and conspiracy to violate the federal Anti-Kickback Statute.
“As the Defendant admitted in open court, he conspired to steal more than $172 million from the American public by submitting fraudulent doctors’ orders for reimbursement through a web of more than twenty durable medical equipment companies located in New Jersey. The sentence Williamsky received reflects the seriousness of his crimes. Together with our law enforcement partners, this Office will continue to investigate and prosecute people who engage in fraud at the expense of American taxpayers.”
- Senior Counsel Philip Lamparello
“Williamsky’s sentence of more than 7 years reflects the severity of his crime and reemphasizes the FBI’s commitment to holding fraudsters accountable,” said Special Agent in Charge of FBI Newark, Stefanie Roddy.
“This defendant committed an egregious amount of durable medical equipment fraud. Rampant schemes like his jeopardize the availability of federal health care program funds intended to support millions of beneficiaries,” said Special Agent in Charge Naomi D. Gruchacz of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is committed to working with our law enforcement partners to bring those to justice that prioritize greed over patient care.”
“This sentencing demonstrates that fraudsters who target VA programs and services will be found and held accountable,” said Special Agent in Charge Christopher F. Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG will continue to work with our law enforcement partners to halt schemes that divert funds from our nation’s deserving veterans.”
According to documents in this case and statements made in court:
From 2015 to 2019, Williamsky led and organized a fraud scheme in which he opened or purchased durable medical equipment (“DME”) supply companies, submitted fraudulent claims to Medicare on behalf of those companies, closed the companies one-by-one to avoid Medicare audits and recoupment, and then opened or purchased new DME companies. He concealed his ownership interest in this web of more than twenty DME companies by employing others to serve as “nominee,” or straw owners.
To generate fraudulent orders, Williamsky and his co-conspirators hired marketing companies to make unsolicited calls offering elderly patients free orthotic braces. In exchange for each patient who agreed to accept DME, Williamsky paid a kickback to the marketing companies in violation of the federal Anti-Kickback Statute. To conduct the scheme, Williamsky used sham contracts and invoices that falsely characterized kickbacks he paid as “business process outsourcing” and “marketing expenses.” To evade detection and avoid taxes, Williamsky transferred a portion of the fraud proceeds to overseas bank accounts, where the funds were laundered through shell corporations and foreign real estate holdings.
Senior Counsel Lamparello credited special agents and specialists of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark; the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and the Department of Defense, Defense Criminal Investigative Service, under the direction of Christopher Silvestro; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Garrett J. Schuman of the Health Care Fraud and Opioid Enforcement Unit.
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Defense Counsel for Aaron Williamsky: Jeffrey M. Kolansky, Philadelphia, PA
Florida Man Pleads Guilty to Health Care Fraud and Kickback ConspiracyRead the Press Release
NEWARK, N.J. – A Florida man pleaded guilty to conspiring to bill Medicare for medically unnecessary prescriptions, Senior Counsel Philip Lamparello announced.
Eric Van Vleet, 30, of Delray Beach, Florida, pleaded guilty to a superseding information charging him with conspiracy to commit health care fraud and conspiracy to violate the federal Anti-Kickback Statute, before U.S. District Judge Madeline Cox Arleo in Newark federal court.
According to documents filed in this case and statements made in court:
From February 2018 to September 2019, Van Vleet operated Hype Med LLC, which generated medically unnecessary prescriptions through a telemarketing and telemedicine scheme. As part of the health care fraud and kickback conspiracy, Van Vleet and Hype Med identified Medicare beneficiaries to target for expensive drugs. Call center employees contacted beneficiaries to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, migraine medication, and a combination of prescription medications to be used as a “foot soak.” Van Vleet and Hype Med then sent recordings of calls with the beneficiaries, along with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. Hype Med paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions.
Van Vleet then directed the prescriptions to pharmacies, including Apogee Bio-Pharm LLC, located in Edison, New Jersey, with which Hype Med had a kickback arrangement. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare. The pharmacies, including Apogee, then paid a portion of each reimbursement to Hype Med as a kickback. Van Vleet and Hype Med received at least approximately $343,683.69 in kickback payments from the owners of Apogee. The principals of Apogee—William Welwart, Ethan Welwart, and Gary Kaczka—are charged with health care fraud and related offenses in a separate indictment. Elan Yaish, former President of Apogee, previously pleaded guilty to an information charging conspiracy to violate the federal anti-kickback statute. As a result of medically unnecessary prescriptions generated by Hype Med, Medicare paid at least $1,399,812.52 based on false and fraudulent claims.
The health care fraud conspiracy charge carries a maximum potential penalty of 10 years in prison, and the charge of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of 5 years in prison. Each count is also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.
Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Christopher M. Silvestro, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano, Chief of the General Crimes Unit in Newark.
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Defense counsel: Michael Baldassare, Esq.
van_vleet.information.pdfConnecticut Man Sentenced to 30 Months’ Imprisonment for Role in $7.8 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – A Connecticut man was sentenced yesterday to 30 months’ imprisonment for his role in a multimillion-dollar durable medical equipment (DME) health care fraud and kickback scheme, Senior Counsel Philip Lamparello announced.
Jesse Foote, 60, of Fairfield, Connecticut, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a two-count information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From December 2017 to March 2021, Foote conspired with overseas telemarking call centers, DME suppliers, telemedicine companies, and doctors to submit fraudulent claims to health care benefit programs, including Medicare and TRICARE, through a circular scheme of kickbacks and bribes. Foote controlled a marketing company through which he purchased patient “leads” from overseas telemarking companies. The leads consisted of information about Medicare and other beneficiaries and pre-written doctors’ orders for DME. The telemarketing call centers targeted Medicare beneficiaries and others with health insurance to persuade them to accept DME, including orthotic braces, without regard to medical necessity. Foote paid bribes and kickbacks to telemedicine companies, which in turn paid bribes and kickbacks to doctors, to obtain doctors’ orders for DME based on the leads. The doctors often approved the DME orders without having any contact with the beneficiary and without making a bona fide assessment that the DME was medically necessary. Foote then sold the signed doctors’ orders to others with whom he had kickback arrangements. The doctors’ orders were ultimately submitted to DME suppliers, including DME suppliers controlled by Foote, which submitted fraudulent claims for reimbursement to health care benefit programs including Medicare, TRICARE, and private insurance companies.
In total, Foote and his co-conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $7.8 million for DME.
In addition to the prison term, Judge Salas sentenced Foote to three years of supervised release and ordered him to pay $7,878,991.56 in restitution.
Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Christopher M. Silvestro, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano, Chief of the General Crimes Unit in Newark.
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Defense counsel: Charles Alvarez, Esq.
Mount Laurel Man Admits to Aggravated Identity Theft and Conspiring to Commit Bank FraudRead the Press Release
CAMDEN, N.J. – A Mount Laurel man admitted to engaging in a scheme to defraud banks using checks stolen from the U.S. mail and fraudulent debit cards, Senior Counsel Philip Lamparello announced.
Kharon Parson-Wright, 28, of Mount Laurel, New Jersey, pleaded guilty before U.S. District Judge Edward S. Kiel to an information charging him with one count of conspiring to commit bank fraud and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
Parson-Wright conspired with Yasmene Johnson, Dante Ford, and others to commit bank fraud with checks stolen from the U.S. mail. Parson-Wright, Ford, and others stole U.S. mail from blue U.S. mail collection boxes. Ford and other members of the conspiracy then created counterfeit versions of the stolen checks or altered the stolen checks by increasing the value of the checks and changing the name of the payee either to a member of the conspiracy or somebody else recruited by the conspiracy. Parson-Wright admitted that he and others negotiated the counterfeit or altered checks and then attempted to the withdraw the funds before the bank learned that the checks were illegitimate. The conspiracy involved the negotiation of checks at banks across southern New Jersey and elsewhere, with checks written for tens of thousands dollars.
As a separate part of their conspiracy, Parson-Wright connected Johnson with a bank employee who created fraudulent debit cards in the name of victims who held accounts at the bank. Parson-Wright and his co-conspirator used one of the fraudulently issued debit cards to make purchases and ATM withdrawals in New Jersey. Parson-Wright admitted that the bank fraud conspiracy resulted in actual losses exceeding $424,000 and intended losses exceeding $1,500,000.
The count of conspiracy carries a maximum penalty of 30 years in prison and a fine of up to $1,000,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest. The count of aggravated identity theft carries a statutory mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment, and a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest. Sentencing is scheduled for April 20, 2026.
Johnson previously pleaded guilty to the same two offenses for her role in the conspiracy and is scheduled to be sentenced in March 2026. Ford and three other defendants were previously sentenced in 2025 after pleading guilty to participating in the same bank fraud conspiracy: Ford was sentenced to 27 months’ incarceration, Donovan Bunch was sentenced to 33 months, Tracy Felder-Carter was sentenced to 18 months, and Quamell Keyes-Griffin was sentenced to 18 months.
Senior Counsel Lamparello credited postal inspectors of the U.S. Postal Inspection Service – Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to this plea. He also thanked the Mount Laurel Police Department, under the direction of Chief Timothy Hudnall, for its valuable assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
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Defense counsel: Justin Capek, Esq., Mount Laurel, New Jersey
parson_wright.information.pdfWashington Township Man Sentenced to 49 Months’ Imprisonment for Tax Fraud Scheme and Theft from Elderly VictimRead the Press Release
NEWARK N.J. – A Washington Township man was sentenced to 49 months’ imprisonment for fraudulently seeking more than $1.4 million from the IRS by filing false tax returns claiming COVID-19-related employment tax credits, for laundering the proceeds from that scheme, and for stealing more than $180,000 from an elderly customer at the car dealership where he worked, Senior Counsel Philip Lamparello announced.
James J. Mastrogiovanni, 45, of Washington Township, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court on May 20, 2025, to an information charging him with one count of conspiracy to defraud the United States, one count of mail fraud, one count of money laundering, and one count of access device fraud. U.S. District Judge William J. Martini imposed the sentence on December 4, 2025, in Newark federal court.
According to documents filed in this case and statements made in court:
During the pandemic, Mastrogiovanni engaged in a scheme with Leon Haynes, a tax preparer, to exploit COVID-19 relief programs to line his own pockets. From in or around March 2021 through in or around December 2022, Mastrogiovanni and Haynes prepared and filed with the IRS false and fraudulent Forms 941 on behalf of Mastrogiovanni, his family members, and others, claiming tax refunds intended to help struggling small businesses. All of the Forms 941 prepared in furtherance of the scheme were false and fraudulent because they listed employees and wages that, in fact, did not actually exist. Neither Mastrogiovanni nor any of his family members owned or operated a business, let alone had paid employees. Mastrogiovanni claimed at least $1,443,409 in tax credits, and as a result of the scheme, the U.S. Treasury disbursed at least $545,692 to Mastrogiovanni and his family members.
Haynes was found guilty by a jury on November 10, 2025 of 15 counts of aiding and assisting in the preparation and presentation of false tax returns, one count of mail fraud, and two counts of tax evasion for his scheme seeking more than $170 million in fraudulent tax refunds from the IRS by causing more than 1,900 false tax returns to be filed on behalf of himself and his clients. Haynes’s sentencing is scheduled for March 12, 2026.
In addition to the tax fraud scheme, from on or about June 19, 2023 through on or about December 7, 2023, Mastrogiovanni engaged in a separate scheme to steal more than $180,000 from an 85-year old victim. The victim presented a check to Mastrogiovanni to purchase a vehicle at the car dealership where Mastrogiovanni worked. Mastrogiovanni later used the routing and checking account numbers on the check to make unauthorized personal transactions from the account until the account was empty.
In addition to the prison term, Judge Martini sentenced Mastrogiovanni to three years of supervised release following Mastrogiovanni’s term of imprisonment and ordered restitution in the amount of $726,862.
Senior Counsel Lamparello credited special agents the IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly; postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division; and officers of the Mahwah Police Department, under the direction of Chief Timothy O’Hara, with the investigation.
The government is represented by Assistant U.S. Attorneys Matthew Stark and Fatime Meka Cano of the Economic Crimes Unit in Newark.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
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.
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Defense Counsel for Mastrogiovanni: Frank Agostino, Esq.
Ocean County Man Sentenced to 168 Months in Prison for Sexually Exploiting MinorsRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey man was sentenced on December 2, 2025, to 168 months in prison for receiving videos and images depicting child pornography, Senior Counsel Philip Lamparello announced.
Daniel Nilla, 37, of Brick, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with three counts of receipt of child pornography.
According to documents filed in this case and statements made in court:
Between December 2021 and April 2023, Nilla communicated with at least five minor victims on a multimedia instant messaging application. He knew the victims were minors when he communicated with them. During the communications, Nilla directed the victims to send him images and videos of themselves engaging in sexually explicit conduct, which Nilla used for his sexual gratification.
In addition to the prison term, Judge Shipp sentenced Nilla to ten years of supervised release.
Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation. Senior Counsel Philip Lamparello also thanked special agents of the FBI Kansas City, Kansas Division, under the direction of Special Agent in Charge Stephen A. Cyrus, and the City of Edwardsville, Kansas Police Department, under the direction of Chief of Police Rance Quinn.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc
The government is represented by Assistant U.S. Attorney Matt Belgiovine of the Criminal Division in Trenton.
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Defense counsel: Steven Cappetta, Esq.
Morris County Company Settles Matter Alleging it Received Improper Paycheck Protection Program LoanRead the Press Release
NEWARK, N.J. – A Morris County tour company entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by applying for and receiving two loans from the Paycheck Protection Program (“PPP”) for which the company was not eligible, Senior Counsel Philip Lamparello announced today.
According to the allegations in the complaint and the contentions of the United States contained in the settlement agreement:
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses.
CIE Tours International Inc. (“CIE Tours”) applied for and received two PPP loans totaling $3,410,300 even though it was ineligible for the loans as an entity owned by the government of Ireland, and because it exceeded the employee size eligibility requirements. CIE Tours then sought and received forgiveness of the total amount of the loans.
CIE Tours fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement CIE Tours agrees to pay the United States $4,428,985.04. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, Relator is receiving $428,985 as his share in the recovery.
Senior Counsel Lamparello credits the SBA’s Office of General Counsel for their assistance in this matter.
The government is represented by Assistant U.S. Attorney David E. Dauenheimer of the Healthcare Fraud and Opioids Enforcement Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The qui tam case is captioned US ex rel. TZAC, Inc., v. CIE TOURS INTERNATIONAL, 24-cv-009637 (D.N.J.).
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Counsel for CIE Tours: Reetuparna Dutta, Hodgson Russ, LLP, Buffalo, New York.
Relator’s counsel: David Abrams, Esq., New York, New York.
cie_tours.agreement.pdfEssex County Man Pleaded Guilty to Online Enticement of Minors and Child Pornography CrimesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man pled guilty to a three-count Information based on his online enticement and exploitation of minors, Senior Counsel Philip Lamparello announced.
Nabeen Leigh Singha, 39, of West Orange, New Jersey, pleaded guilty before U.S. District Court Chief Judge Renée M. Bumb on December 11, 2025, in Camden federal court to a three-count Information charging him with: (1) production of child pornography, in violation of Title 18, United States Code, Sections 2551(a) and (e); (2) receipt of child pornography, in violation of Title 18, United States Code, Sections 2252A(a)(2)(A) and (b)(1); and (3) possession of prepubescent child pornography, in violation of Title 18, United States Code, Sections 2252A(a)(5)(B) and (b)(2).
According to documents filed in this case and statements made in court:
From July 2021 through March 2022, Singha exchanged sexually explicit messages with two minor victims and paid them to create sexually explicit videos and images of themselves to send to Singha over the internet.
During that time-period, Singha also communicated with an intermediary and paid that intermediary to send sexually explicit videos and images of four additional minor victims.
Law enforcement searched and seized Singha’s phone and found nearly 5,000 images and 620 videos depicting child pornography. These materials included depictions prepubescent minors under 12 years old.
The production charge carries a statutory mandatory minimum sentence of 15 years’ imprisonment, a statutory maximum sentence of 30 years’ imprisonment, and a statutory maximum fine equal to the greatest of (a) $250,000; (b) twice the gross amount of any pecuniary gain that any persons derived from the offense; or (c) twice the gross amount of any pecuniary loss sustained by any victims of the offense.
The receipt charge carries a statutory mandatory minimum sentence of 5 years’ imprisonment, a statutory maximum sentence of 20 years’ imprisonment, and a statutory maximum fine equal to the greatest of (a) $250,000; (b) twice the gross amount of any pecuniary gain that any persons derived from the offense; or (c) twice the gross amount of any pecuniary loss sustained by any victims of the offense.
The possession charge carries a statutory maximum sentence of 20 years’ imprisonment, and a statutory maximum fine equal to the greatest of (a) $250,000; (b) twice the gross amount of any pecuniary gain that any persons derived from the offense; or (c) twice the gross amount of any pecuniary loss sustained by any victims of the offense.
Senior Counsel Lamparello credited special agents and members of the Child Exploitation Group of Homeland Security Investigation, under the direction of Acting Special Agent in Charge Michael McCarthy, with the investigation leading to the guilty plea.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
The government is represented by Assistant U.S. Attorney Jake A. Nasar of the Health Care Fraud and Opioid Enforcement Unit in Newark.
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Defense counsel: Jonathan F. Marshall, Esq., Freehold, NJ
singha.information.pdfBergen County Man Convicted of Fentanyl TraffickingRead the Press Release
NEWARK, N.J. – A federal jury has convicted a Bergen County, New Jersey man for running a fentanyl trafficking ring involving kilograms of fentanyl, Senior Counsel Philip Lamparello announced.
Plinio Junior Pineda Lopez, 35, of Oakland, New Jersey was convicted following a four-day trial before U.S. District Judge Stanley R. Chesler in Newark federal court of conspiracy to distribute and possess with intent to distribute over 400 grams of fentanyl and possession with intent to distribute over 400 grams of fentanyl and over 500 grams of cocaine.
“This verdict sends a clear message to those who seek to profit by flooding our communities with fentanyl: law enforcement will find you, our Office will charge you, and you will be held fully accountable. Our responsibility is to our community. No one should fear the loss of a loved one because a dealer seeks to make a quick buck. Thanks to the hard work and dedication of our federal, state and local partners, the jury has delivered swift justice. Our Office will aggressively pursue anyone who seeks to distribute this poison, no matter where they hide or how sophisticated they believe their operation to be.”
- Senior Counsel Philip Lamparello
“This guilty verdict on all counts is a decisive victory in our ongoing efforts to combat the fentanyl crisis,” said HSI Newark Special Agent in Charge Michael S. McCarthy. “It reflects the unwavering commitment of Homeland Security Investigations and our law enforcement partners to protect the public and uphold the rule of law. Through coordinated action and relentless pursuit of justice, we have disrupted a major interstate fentanyl trafficking operation and prevented lethal substances from endangering communities across New Jersey.”
According to documents filed in this case and evidence at trial:
Lopez directed and conspired with others to distribute large quantities of fentanyl between Florida and New Jersey. Following an extensive investigation of Lopez’s drug activity in Jacksonville, Miami and Bergen County, law enforcement arrested Lopez on July 11, 2023, in Wallington, New Jersey when he attempted to conduct a narcotics transaction involving over one kilogram of fentanyl. Following his arrest, and pursuant to a court-authorized search warrant, law enforcement searched Lopez’s home and recovered an extensive quantity of fentanyl and cocaine that was hidden in air vents and appliances throughout his home. Through this investigation, law enforcement recovered a total of approximately nine kilograms of fentanyl and approximately one kilogram of cocaine.
The narcotics trafficking charges each carry a maximum potential penalty of life imprisonment and a fine of $10 million. Sentencing is scheduled for April 29, 2026, at 9:30 a.m.
Senior Counsel Lamparello credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Michael S. McCarthy in Newark; HSI Miami, HSI Jacksonville, Customs and Border Protection (CBP) Air and Marine Operations (AMO) and CBP Office of Field Operations (OFO), the Jacksonville Sheriff’s Office, Drug Enforcement Agency (DEA) New York Drug Enforcement Task Force, the Bergen County Prosecutor’s Office, the Oakland Police Department, and the Westwood Police Department, under the direction of Chief Michael Pontillo, with the investigation that led to the charges and conviction.
This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces.
The government is represented by Assistant U.S. Attorney Jason Goldberg, Chief of the Narcotics and International Trafficking Unit, and Assistant U.S. Attorney Alison Thompson of the Organized Crime/Gang Unit in Newark.
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Defense counsel: Carol Dominguez, Esq. and Michael A. Thomas, Esq.
pineda_lopez.indictment.pdfDepartment of Justice Leadership Announces New Personnel Appointments and Authorizations in the District of New JerseyRead the Press Release
Today, following Attorney General Pamela Bondi's announcement that Alina Habba will serve as Senior Advisor to the Attorney General for United States Attorneys, Deputy Attorney General Todd Blanche announced the following personnel appointments and authorizations within the District of New Jersey:
- Philip Lamparello will serve as Senior Counsel and is authorized to supervise or conduct the work of the district’s Criminal Division and Special Prosecutions Division, including such work in the district’s branch offices;
- Jordan Fox will serve as Special Attorney and is authorized to supervise or conduct the work of the district’s Civil Division and Appellate Division, including such work in the district’s branch offices, along with any other matters arising within the district not specifically delegated herein; and
- Ari Fontecchio will serve as Executive Assistant United States Attorney and is authorized to supervise or conduct the work of the district’s Administrative Division, along with any other administrative matters arising within the district.
"The Department of Justice is committed to bringing in the best and brightest to carry out our mission," said Deputy Attorney General Todd Blanche. "I have full confidence in each of these exceptional attorneys and look forward to our continued collaboration as we make New Jersey and America safe again."
New Jersey Doctor Charged with Unlawfully Distributing Adderall and XanaxRead the Press Release
NEWARK, N.J. – A New Jersey doctor was arrested on November 4, 2025, for unlawfully prescribing Adderall, a Schedule II controlled substance, and Xanax, a Schedule IV controlled substance, Acting U.S. Attorney and Special Attorney Alina Habba announced.
David Holbrook, 70, of Bloomsbury, New Jersey was charged by Indictment with nine counts of unlawfully distributing and dispensing controlled substances, each in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). Holbrook appeared on November 4, 2025, for his initial appearance and arraignment in federal court before U.S. Magistrate Judge André M. Espinosa. The defendant was released on a $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
On nine occasions between or around January 2021 and September 2022, Holbrook, a licensed psychiatrist, prescribed Adderall and Xanax to multiple patients outside the usual course of professional practice and not for a legitimate medical purpose. If convicted, Holbrook faces a statutory maximum sentence of twenty years in prison and a $1 million fine on each count.
Acting U.S. Attorney and Special Attorney Habba credited special agents, task force officers, and diversion investigators with the Drug Enforcement Administration (DEA) under the direction of Special Agent in Charge Cheryl Ortiz in Newark, New Jersey, with the investigation.
The government is represented by Assistant U.S. Attorney Jake A. Nasar of the Office’s Health Care Fraud and Opioid Enforcement Unit.
Victims with any information regarding Dr. David Holbrook may contact the DEA New Jersey Field Division at 571-362-3700.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel: Jay Surgent, Esq.
holbrook.indictment.pdfMonmouth County Man Sentenced to 63 Months’ Imprisonment for Armed Bank RobberyRead the Press Release
TRENTON, N.J. – A Monmouth County man was sentenced to 63 months’ imprisonment for armed bank robbery, Acting U.S. Attorney and Special Attorney Alina Habba announced.
Jeffrey L. Kniffin, 51, of Wall Township, pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court on July 22, 2025, to a one-count Information charging him with armed bank robbery. U.S. District Judge Zahid N. Quraishi imposed the sentence on November 24, 2025 in Trenton federal court.
According to documents filed in this case and statements made in court:
On October 23, 2024, Kniffin entered a bank in Wall Township, New Jersey armed with a loaded handgun, approached a bank teller, and demanded cash from the teller. After demanding the money, Kniffin removed the handgun from his pocket and displayed it towards the teller. During his interaction with the teller, Kniffin instructed multiple times, “Don’t do anything stupid.” Kniffin received approximately $27,072 in cash from the teller and then fled the bank. He was apprehended and arrested by law enforcement several minutes later. At the time of his arrest, law enforcement recovered from Kniffin and his immediate surroundings a loaded handgun and more than $25,000 in cash.
In addition to the prison term, Judge Quraishi sentenced Kniffin to three years of supervised release following Kniffin’s term of imprisonment, ordered forfeiture of Kniffin’s robbery proceeds and crime gun, and ordered restitution in the amount of $1,938.
Acting U.S. Attorney and Special Attorney Habba credited task force officers with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the sentencing. She also thanked the Wall Township Police Department, under the direction of Chief Sean O’Halloran, and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, for their assistance in the investigation.
The government is represented by Special Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office’s Criminal Division in Trenton.
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Defense counsel: John M. Holliday, Esq.
Union County Teacher Sentenced to 275 Months in Prison for Producing Child PornographyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man who was employed as a New Jersey high school teacher, was sentenced to 275 months in prison for producing child pornography, Acting U.S. Attorney and Special Attorney Alina Habba announced.
Michael Hamilton, 53, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an Information charging him with one count of producing child pornography. Judge O’Hearn imposed the sentence in Camden federal court.
According to documents filed in this case and statements made in court:
Hamilton admitted to meeting a minor victim and engaging in sexual conduct with that victim, which Hamilton recorded on video. Law enforcement seized a copy of that video during the search of his home in October 2023. Hamilton also admitted to receiving and possessing sexually explicit messages, pictures, and videos of two other minor victims.
In addition to the prison term, Judge O’Hearn sentenced Hamilton to 10 years of supervised release, and to pay restation of $5,000 to a victim.
“There is no higher responsibility than safeguarding the welfare of our children. The defendant took advantage of children for his own sexual desires. We will continue to protect children and bring justice to sexual predators. I commend the Federal Bureau of Investigation, and our law enforcement partners for their critical work reaching this result.”
- Acting U.S. Attorney and Special Attorney Alina Habba
Acting U.S. Attorney Habba credited FBI Newark’s Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation. Acting U.S. Attorney Habba also thanked the Springfield Police Department and the Union County Prosecutor’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.
The government is represented by Rebecca Sussman of the Narcotics and International Trafficking Unit and Robert Taj Moore of the Cybercrime Unit in Newark.
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Defense counsel: Randy Davenport, Esq.
Title Company Owner and Real Estate Investor Admit Mortgage Fraud, COVID-19 Relief Program Fraud SchemesRead the Press Release
CAMDEN, N.J. – Two New Jersey residents admitted participating in a multimillion dollar mortgage fraud scheme and one of the individuals also admitted fraudulently obtaining more than $1.8 million of federal Economic Injury Disaster Loans, Acting U.S. Attorney and Special Attorney Alina Habba announced.
Mendel Deutsch, 39, of Toms River, New Jersey, pleaded guilty on November 13, 2025, before U.S. District Judge Edward S. Kiel to one count of bank and wire fraud conspiracy and one count of wire fraud. Joshua Feldberger, 43, of Howell, New Jersey, pleaded guilty on October 22, 2025, before U.S. District Judge Edward S. Kiel to one count of bank fraud conspiracy.
According to documents filed in this case and statements made in court:
In June 2020, co-defendant Arthur Spitzer conspired with Deutsch and Feldberger to make it appear as if Spitzer owned three properties in Brooklyn, New York and agreed to sell them to Deutsch, who obtained a $4.5 million mortgage loan in connection with the transaction. Feldberger facilitated the fraudulent transaction as the owner of the settlement company that handled the transaction. The defendants created and sent letters stating that Deutsch had deposited significant funds into escrow toward the transaction, when in reality he had not; they created fake documentation purportedly transferring control of the properties to Spitzer; and they lied to the mortgage lender by stating that the settlement company had received more than $2 million from Deutsch at closing, which led the mortgage lender to fund the loan. The defendants then used the mortgage loan proceeds to fund Deutsch’s down payment, which he had supposedly already provided.
Further, in 2020 and 2021, Deutsch fraudulently obtained approximately $1.8 million of government loans that were intended for small businesses distressed by the COVID-19 pandemic. The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized the U.S. Small Business Administration (SBA) to provide Economic Injury Disaster Loans (EIDLs) of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic. To obtain an EIDL loan, a qualifying small business was required to submit an application and provide information on its operations, including the number of employees and revenues or expenses. Deutsch obtained EIDL loans for businesses that had little or no operations by submitting loan applications that included false statements about the applicant companies’ number of employees, revenues, cost of goods sold, or lost rents.
The counts of bank fraud conspiracy and bank and wire fraud conspiracy are punishable by a maximum of 30 years in prison and a $1,000,000 fine, or twice the gross gain or loss from the offense. The count of wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Feldberger is scheduled to be sentenced on February 23, 2026, and Deutsch is scheduled to be sentenced on March 16, 2026.
Acting U.S. Attorney and Special Attorney Habba credited special agents of the Federal Bureau of Investigation’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Stefanie Roddy in Newark; special agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office, with the investigation leading to these guilty pleas.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations pending against Arthur Spitzer are merely accusations, and he is presumed innocent unless and until proven guilty.
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Defense counsel:
Deutsch: Timothy Sini, Esq., New York
Feldberger: Zach Intrater, Esq., New York
Spitzer: Henry Mazurek, Esq., and Jason Ser, Esq., New York
spitzeretal.indictment.pdf feldberger.information.pdfNew Jersey Resident and Business Owner Sentenced to 12 Months in Prison for Evading over $3.4 Million in TaxesRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey man was sentenced to 12 months in prison for willfully evading more than $3,400,000 of taxes, Acting U.S. Attorney and Special Attorney Alina Habba announced.
Jose Camilo Perez, Jr., 54, of Sewell, New Jersey, previously pleaded guilty on November 20, 2025, before Chief U.S. District Judge Renée Marie Bumb to an Information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
Perez controlled a company that digitized medical records for hospitals and other healthcare entities. From 2016 through 2023, the business received more than $8,000,000 for the services it performed. Perez attempted to evade the assessment of federal income taxes by cashing checks payable to the business at a check cashing business rather than depositing those checks into the business’s bank account or his personal bank account, and then he used the cash for personal expenses and to pay payroll. From 2016 through 2023, Perez did not report any of the income he received from the business to the IRS. As a result, Perez evaded income taxes of more than $3,400,000.
Acting U.S. Attorney and Special Attorney Alina Habba credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to this sentencing.
In addition to the prison term, Chief Judge Bumb sentenced Perez to 3 years of supervised release and ordered him to pay restitution in the amount of $3,434,066.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Josephine J. Park of the U.S. Attorney’s Office’s Criminal Division in Camden.
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Defense counsel:
Brian J. McMonagle Esq., Philadelphia, Pennsylvania
New Jersey Pharmacy Owner Pleads Guilty to Health Care Fraud Scheme Involving Billing Medicare for Undispensed MedicationRead the Press Release
NEWARK, N.J. – A New Jersey pharmacy owner pleaded guilty to health care fraud, Acting U.S. Attorney and Special Attorney Alina Habba announced.
Nestor E. Jaime, 37, of Pine Brook, New Jersey, pleaded guilty on November 19, 2025, to an Indictment charging him with one count of health care fraud, in violation of 18 U.S.C. § 1347, before U.S. district Judge Katharine S. Hayden in Newark federal court.
According to documents filed in this case and statements made in court:
From December 2019 to December 2021, Jaime, through a pharmacy he owned located in Paterson, New Jersey, submitted hundreds of false claims to Medicare for a high reimbursement (i.e., more than $4,000 per prescription) medication called Dificid, which the pharmacy never actually purchased or dispensed. Jaime submitted false claims on behalf of dozens of Medicare beneficiaries who never were prescribed any Dificid. To make it appear as though the Medicare beneficiaries’ health care providers had prescribed the medication, Jaime falsely included the providers’ unique provider numbers on the fraudulent claims. As a result of the scheme, Medicare paid Jaime reimbursements for false claims for Dificid totaling at least approximately $2.5 million, which Jaime spent on luxury vehicles and other personal expenditures.
The charge of health care fraud carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
Acting U.S. Attorney and Special Attorney Habba credited special agents of the Health and Human Services Agency Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorneys Jessica R. Ecker and Kruti Dharia of the Health Care Fraud and Opioids Enforcement Unit in Newark.
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Defense counsel: Anthony Iacullo, Esq.
jamie.indictment.pdfNew Jersey Man Charged with Using Fraudulent FDA Documents to Defraud Investors in Vaping BusinessRead the Press Release
NEWARK, N.J. – A New Jersey man was charged with using counterfeit FDA documents purporting to authorize the marketing and sale of vaping products to defraud investors in a vaping company, Acting U.S. Attorney and Special Attorney Alina Habba announced.
Mohammad Abuhadba, 42, of Wayne, New Jersey, was charged by Indictment with two counts of wire fraud and three counts of use of counterfeit seal of federal agency. He appeared on November 19, 2025, for an arraignment before U.S. Magistrate Judge José R. Almonte and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Abuhadba persuaded two individuals to invest in and co-own a vaping company by misrepresenting to them that Abuhadba had applied for and obtained authorization from the FDA to market and sell tobacco products, including e-cigarette and vaping products, in the United States. In reality, Abuhadba never applied for or received such FDA authorization, and he instead created doctored FDA authorization documents using counterfeit agency seals that he provided to those investors. After Abuhadba convinced the investors to begin investing in the vaping company, he repeatedly lied to them about the status of the company’s FDA authorization to induce them to invest more money. He also doctored a letter he received from the FDA to further disguise that he did not have any FDA authorization to market and sell tobacco products in the United States.
Each charge of wire fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Each charge of use of a counterfeit seal of a federal agency carries a maximum potential penalty of 5 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
Acting U.S. Attorney and Special Attorney Habba credited special agents of the U.S. Attorney’s Office for the District of New Jersey and the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jessica R. Ecker and Garrett J. Schuman of the Health Care Fraud and Opioids Enforcement Unit in Newark.
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Defense counsel: John Yauch, Esq.
abuhadba.indictment.pdfGroup of Pennsylvania-Based Car Companies Settle Matter Alleging Receipt of Improper CARES Act LoansRead the Press Release
Newark, N.J. – Five companies based in Bucks County, Pennsylvania entered into a settlement agreement with the United States resolving allegations that they violated the False Claims Act by taking Paycheck Protection Program (PPP) loans to which they were not entitled, Acting U.S. Attorney and Special Attorney Alina Habba announced.
According to the allegations in the complaint and the contentions of the United States in the settlement agreement:
In April 2020, Fred Beans Holdings, Inc.; Auto Express Enterprises, Inc.; Autorent of Doylestown Inc.; McCafferty Autorent Inc.; and Noble Advertising, Inc. (together, “the Defendants”) each applied for and received approximately $973,395 in PPP loans. Under the eligibility rules in effect at the time, businesses with more than 500 employees, inclusive of their affiliates, were not eligible for PPP loans. In their respective loan applications, the Defendants certified that they were eligible for their loans. However, the Defendants were ineligible for their loans because, inclusive of their affiliates, they had more than 500 employees. After receiving their PPP loans, Defendants sought and received forgiveness of the total amount of the loans plus interest that had accrued.
Defendants fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement agreement, Defendants will pay the United States $1,427,869. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $142,786 as the share.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud and Opioids Enforcement Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The qui tam case is captioned United States ex rel. Forsyth v. Fred Beans Holdings, Inc., et al., 25-2324 (D.N.J.).
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Counsel for Ulma Form Works, Inc.: Denise Branch, Esq., Raleigh, NC
Counsel for Relator Aidan Forsyth: Eric Jaso, Esq., Montclair, NJ
fbp.agreement.pdfBrooklyn Man Sentenced to 121 Months in Prison for Conspiracy to Commit Child Sex TraffickingRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, was sentenced to 121 months in prison for his role in a conspiracy to commit child sex trafficking, Acting United States Attorney and Special Attorney Alina Habba announced.
Soauib Butcher, 31, of Brooklyn, previously pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark federal court to one count of conspiracy to commit sex trafficking of a minor. Judge Farbiarz imposed the sentence on November 7, 2025, in Newark federal court.
According to documents filed in this case and statements made in court:
In August 2019, Butcher met the victim at a train station and brought her to Elizabeth, New Jersey, where, from August 2019 to January 2020, the victim stayed with Butcher and a co-conspirator in a series of motel rooms. The co-conspirator posted advertisements depicting the victim on escort websites and, together with Butcher, arranged for customers to come to the motels to have sex with the victim in exchange for money.
In addition to the prison terms, Judge Farbiarz sentenced Butcher to five years of supervised release.
“Soauib Butcher supported himself, for several months, on the daily sexual exploitation of a minor. This sentence sends a message that this Office is committed to protecting children from sexual predators.”
- Acting U.S. Attorney and Special Attorney Alina Habba
“Sexual exploitation is demeaning, damaging and puts already vulnerable minors in extremely unsafe circumstances,” Stefanie Roddy, Special Agent in Charge of the FBI in Newark, said. “Butcher profited off of the arrangement he had with this victim. The FBI and its partners work tirelessly so that these minors get the protection they deserve from predators."
Acting U.S. Attorney and Special Attorney Habba credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation.
This investigation was conducted as part of the U.S. Attorney’s Office for the District of New Jersey’s Human Trafficking Task Force, which was formed in 2025. The Task Force brings together federal and state agencies to collaborate and dedicate resources to combat human trafficking and prosecute human trafficking offenders who endanger the safety of the community. The Human Trafficking Task Force is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation, U.S. Department of Homeland Security, Homeland Security Investigations, U.S. Department of Labor, U.S. Department of Health and Human Services, Office of Inspector General, and the Internal Revenue Service.
The government is represented by Assistant U.S. Attorneys Aaron L. Webman, Deputy Chief of the Economic Crimes Unit, and Katherine M. Romano, Chief of the General Crimes Unit.
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Defense counsel: Patrick Joyce, Esq., Maplewood, NJ
Federal Court Terminates Newark Police Department’s Consent Decree After Successful ReformsRead the Press Release
NEWARK - Today, the U.S. District Court for the District of New Jersey terminated the consent decree in United States v. City of Newark, marking the completion of a nine-year reform effort of the Newark Police Department (NPD). Through the consent decree, NPD resolved prior Department of Justice findings by implementing constitutional policing requirements for stops, searches, arrests, and use of force. Based on completion of those and other requirements, Newark moved to dismiss the decree; the Justice Department supported the City’s motion.
“Over the last decade, the Newark Police Division has made tremendous improvements to ensure constitutional policing and to increase community trust. NPD remains a valuable law enforcement partner, and we will continue to work with it to reduce gun crimes, drug trafficking, and gang violence. The men and women of NPD should be proud of what they accomplished, and we appreciate the hard work they do every day to keep the people of Newark safe.”
- Acting U.S. Attorney and Special Attorney Alina Habba
“We are proud to stand by the men and woman of NPD as federal oversight ends, and the court returns control of local law enforcement to the City of Newark,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “We look forward to the continued, effective policing of the City—in a constitutional manner—to protect all Americans from crime.”
In 2011, the Justice Department and the U.S. Attorney’s Office for the District of New Jersey jointly initiated an investigation into the NPD under the Violent Crime Control and Law Enforcement Act of 1994, Title VI of the Civil Rights act of 1964, and the Omnibus Crime Control and Safe Streets Act of 1968. After concluding the investigation, in 2016 the United States and the City of Newark entered into a consent decree to address the investigation’s findings that NPD engaged in a pattern or practice of conducting stops and using unjustified and excessive force in violation of the Fourth Amendment; allegations of biased policing; retaliating against individuals who questioned police action in violation of the First Amendment; and subjecting individuals to theft by NPD officers in violation of the Fourth and Fourteenth Amendments. NPD has been implementing the decree since its entry. In 2024, the Court granted the parties’ joint motion to terminate several of the consent decree’s requirements that NPD completed by that time.
The Special Litigation Section of the U.S. Department of Justice’s Civil Rights Division and the District of New Jersey U.S. Attorney’s Office’s Civil Division and jointly handled the investigation and litigation.
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Federal Court Terminates Newark Police Department’s Consent Decree After Successful ReformsRead the Press Release
Yesterday, the U.S. District Court for the District of New Jersey terminated the consent decree in United States v. City of Newark, marking the completion of a nine-year reform effort of the Newark Police Department (NPD). Through the consent decree, NPD resolved prior Department of Justice findings by implementing constitutional policing requirements for stops, searches, arrests, and use of force. Based on completion of those and other requirements, Newark moved to dismiss the decree; the Justice Department supported the City’s motion.
“We are proud to stand by the men and woman of NPD as federal oversight ends, and the court returns control of local law enforcement to the City of Newark,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “We look forward to the continued, effective policing of the City — in a constitutional manner — to protect all Americans from crime.”
“Over the last decade, the Newark Police Division has made tremendous improvements to ensure constitutional policing and to increase community trust,” said Acting U.S. Attorney and Special Attorney Alina Habba for the District of New Jersey. “NPD remains a valuable law enforcement partner, and we will continue to work with it to reduce gun crimes, drug trafficking, and gang violence. The men and women of NPD should be proud of what they accomplished, and we appreciate the hard work they do every day to keep the people of Newark safe.”
In 2011, the Justice Department and the U.S. Attorney’s Office for the District of New Jersey jointly initiated an investigation into the NPD under the Violent Crime Control and Law Enforcement Act of 1994, Title VI of the Civil Rights act of 1964, and the Omnibus Crime Control and Safe Streets Act of 1968. After concluding the investigation, in 2016 the United States and the City of Newark entered into a consent decree to address the investigation’s findings that NPD engaged in a pattern or practice of conducting stops and using unjustified and excessive force in violation of the Fourth Amendment; allegations of biased policing; retaliating against individuals who questioned police action in violation of the First Amendment; and subjecting individuals to theft by NPD officers in violation of the Fourth and Fourteenth Amendments. NPD has been implementing the decree since its entry. In 2024, the Court granted the parties’ joint motion to terminate several of the consent decree’s requirements that NPD completed by that time.
The Special Litigation Section of the U.S. Department of Justice’s Civil Rights Division and the District of New Jersey U.S. Attorney’s Office’s Civil Division and jointly handled the investigation and litigation.
Convicted Ponzi Schemer and Co-Conspirator Sentenced to 37 Years and 12 Years for $44 Million Fraud Scheme, Money Laundering, False Statements, and Obstruction of JusticeRead the Press Release
TRENTON, N.J. – A New Jersey man who was previously convicted twice of defrauding investors of more than $230 million was sentenced on November 14, 2025 to 37 years in prison for his role in a Ponzi-like fraud scheme that resulted in investor losses of more than $44 million, as well as other offenses, and his co-conspirator was sentenced to 12 years in prison, Acting U.S. Attorney and Special Attorney Alina Habba announced. Both were also ordered to pay more than $44 million in restitution to the victims of their scheme.
Following a six-week jury trial earlier this year before U.S. District Judge Michael A. Shipp in Trenton federal court, Eliyahu “Eli” Weinstein, aka “Mike Konig,” 50, and Aryeh “Ari” Bromberg, 51, were each convicted of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, three counts of wire fraud, conspiracy to commit money laundering, transacting in criminal proceeds, conspiracy to make false statements to the U.S. Probation Office, conspiracy to obstruct justice, and obstruction of justice. Weinstein was also convicted of four counts of making false statements to the United States Probation Office. Five of Weinstein and Bromberg’s conspirators, Christopher Anderson, 49, Richard Curry, 39, Shlomo Erez, 57, Alaa Hattab, 37, and Joel Wittels, 59, previously pleaded guilty to charges stemming from the same scheme and are all awaiting sentencing.
According to documents in this case and evidence at trial:
Weinstein was previously convicted two times in New Jersey federal court for defrauding investors. His first case involved a real estate Ponzi scheme, and his second case stemmed from an additional fraud Weinstein committed while on pretrial release. These crimes resulted in combined losses to investors of approximately $230 million. On Jan. 19, 2021, Weinstein began serving a term of supervised release stemming from his prior convictions.
But soon after being released from prison, Weinstein began orchestrating a new scheme to solicit money from investors, including through a company called Optimus Investments Inc. (Optimus). Using the alias “Mike Konig,” Weinstein secretly ran Optimus through Bromberg and Wittels. They kept Weinstein’s true name and identity hidden because, as Weinstein acknowledged in a secretly recorded conversation, investors wouldn’t give them “a penny” if they learned of Weinstein’s involvement.
Weinstein, Bromberg, and Wittels received the bulk of investor money through a second company, Tryon Management Group LLC (Tryon), which was owned and controlled by Anderson and Curry. Tryon promised these individual investors—consisting mostly of friends and family—lucrative opportunities to invest in deals involving COVID-19 masks and test kits, scarce baby formula, and first-aid kits supposedly bound for wartime Ukraine. Posing as Mike Konig, Weinstein provided the information for these supposed deals. Based on that information, investors gave money to Tryon, believing the deals were legitimate and not knowing about Weinstein’s involvement. In turn, Tryon transferred those funds to Weinstein, through Optimus.
In 2021, after Optimus started receiving investor money, Optimus was unable to pay its investors. Rather than reveal this information to investors, the conspirators agreed to pool money from existing investors of both Optimus and Tryon and use it to make monthly payments to other investors in a Ponzi-like fashion. The conspirators concealed this arrangement from investors by falsely telling investors that the payments derived from legitimate investment returns, not other investors’ money.
In late August 2022, Hattab revealed Weinstein’s true identity to Anderson and Curry. In a series of subsequent meetings, which were recorded, Weinstein admitted to misappropriating investor money and making various false statements and sending fake documents concerning the purported deals. Weinstein acknowledged that he was conducting a Ponzi scheme, stating, “I finagled, and Ponzied, and lied to people to cover us.”
Once Anderson and Curry learned that Mike Konig was actually Weinstein, Weinstein and Bromberg lied repeatedly to Anderson and Curry in an effort to prevent them from reporting their misconduct to federal law enforcement and Probation. Anderson and Curry then agreed with Weinstein, Bromberg, and other conspirators to continue concealing Weinstein’s identity from investors and to raise additional money to pay off existing investors, all in an effort to stop the Ponzi scheme from falling apart and to cover up the fraud. In total, the defendants fraudulently obtained more than $88 million from investors and caused losses of more than $44 million.
In addition to defrauding investors, Weinstein and Bromberg also conspired to launder their fraud proceeds and lie to Weinstein’s federal probation officer. They helped hide Weinstein’s assets that should have been used to pay over $200 million in restitution that he still owes his previous victims. They also concealed Weinstein’s myriad business activities, income, and accounts, which he was required to disclose to the court and Probation or which were expressly prohibited by the terms of his supervised release. In multiple secretly recorded conversations, Weinstein discussed his intent to conceal his various assets from the government. In one such conversation, Weinstein referenced hidden assets that he and others “can’t touch” while he was on supervised release because they would “go to jail.” Weinstein then boasted, “I just told you something that no one in the world knows because I hid money. Get it?”
Acting U.S. Attorney and Special Attorney Alina Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Stefanie Roddy in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the convictions.
The government is represented by Assistant United States Attorney Carolyn Silane, Chief of the Economic Crimes Unit, and Assistant U.S. Attorney Marko Pesce, Deputy Chief of the Bank Integrity, Money Laundering, and Recovery Unit.
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Defense counsel for Weinstein: Ilana Haramati and Henry E. Mazurek, Esqs., New York, NY
Defense counsel for Bromberg: Marc Agnifilo and Jacob Kaplan, Esqs., New York, NY
Twelve Individuals Charged in $11 Million Stolen Treasury Check ConspiracyRead the Press Release
NEWARK, N.J. – Twelve individuals have been charged for their roles in a conspiracy to commit bank fraud by depositing stolen checks and withdrawing the funds, Acting U.S. Attorney and Special Attorney Alina Habba announced.
“As alleged in the complaint, the Defendants deposited stolen checks into fraudulent bank accounts for their own personal gain, taking advantage of a COVID-19 pandemic relief program earmarked for struggling businesses. Rooting out fraud on pandemic programs and holding the alleged perpetrators accountable continues to be a top priority of this office and our law enforcement partners.”
- Acting United States Attorney and Special Attorney Alina Habba
Wayne Bessant, 44, of Hamilton, New Jersey; Britany Brown, 39, of Philadelphia, Pennsylvania; John Gerard Ebert, 42, of Hamilton, New Jersey; Joseph Graves-Carmichael, 43, of Trenton, New Jersey; Andrew Hooper, 37, of New Brunswick, New Jersey; Thomas Lee, 55, of Beverly, New Jersey; Patricia Kearse, 46, of Philadelphia, Pennsylvania; Clarence Semmon, 41, of Trenton, New Jersey; Ryan Small, 32, of Ewing, New Jersey; Dwayne Reddon, 39, of Trenton, New Jersey; Shabazz Rouzard, 33, of Ewing, New Jersey; and Raymond Wade, 42, of Morrisville, Pennsylvania,are charged by criminal complaint with one count of conspiracy to commit bank fraud. Ten Defendants appeared on November 13 before Magistrate Judge James B. Clark, III in Newark Federal Court. One Defendant was already in custody on a state case and one Defendant remains at large. Two defendants appeared on November 17, 2025 before Magistrate Judge José R. Almonte in Newark Federal Court. One defendant appeared on November 17, 2025 before Magistrate Judge Ann Marie Donio in Camden Federal Court.
According to documents filed in this case and statements made in court:
From March 2023 through May 2025, the Defendants conspired to deposit stolen checks—including U.S. Department of Treasury Checks—at various banks in New Jersey and Pennsylvania. The Defendants impersonated the businesses listed as payees on the stolen checks by acquiring business documents in the names of the payees. Once the Defendants acquired the fraudulent business documents, they used them to impersonate the victims and open fraudulent business bank accounts where they deposited the stolen checks. In total, the Defendants deposited or attempted to deposit approximately 84 Treasury checks, and 27 commercial checks totaling over $11 million and split the proceeds. Many of the Treasury checks were refunds issued under the Employee Retention Credit, a program the Internal Revenue Service created during the COVID-19 pandemic to encourage businesses to retain employees.
The bank fraud conspiracy is punishable by a maximum potential penalty of 30 years in prison and also carries a fine of up to $1,000,000.
“Just as the twelve subjects schemed and conspired to cheat the system by depositing stolen checks meant for COVID-19 pandemic relief efforts, the FBI and our federal partners worked together to follow the facts and evidence that would lead to this charge. This case is a textbook example of the partnerships we build to prevent fraud against the Government and protect taxpayers from fraud in any form,” said FBI Newark Special Agent in Charge, Stefanie Roddy.
“This investigation underscores HSI’s commitment to protecting the integrity of our nation’s financial system and ensuring that those who exploit COVID-19 relief programs are held accountable,” said HSI Newark Special Agent in Charge Michael S. McCarthy. “HSI will continue to work closely with our law enforcement partners to uncover complex schemes targeting American taxpayers and to relentlessly dismantle the criminal networks responsible, stripping them of their illicit gains.”
“COVID-19 relief programs, including the Employee Retention Credit, were implemented to help honest Americans keep their jobs during an unprecedented time of hardship. Through deception and fraud, the Defendants allegedly stole over $11 million from the hardworking businesses these pandemic relief programs were meant to benefit,” stated Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office. “IRS-CI will continue to partner with our federal law enforcement colleagues to investigate those who defrauded pandemic relief programs and victimized those in need.”
Acting U.S. Attorney and Special Attorney Habba credited special agents with the Federal Bureau of Investigations, Newark-Trenton Resident Agency under the direction of Special Agent in Charge Stefanie Roddy; special agents with Homeland Security Investigations, Cherry Hill, under the direction of Special Agent in Charge Michael S. McCarthy; special agents with the Internal Revenue Service – Criminal Investigation, Newark Field Office, under the direction of Jenifer L. Piovesan; special agents with Treasury Inspector General for Tax Administration, Northeast Field Division, under the direction of Special Agent in Charge Michael Carpenter; special agents with the Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Christopher Silvestro; special agents with the U.S. Air Force – Office of Special Investigations, Detachment 307, Joint Base McGuire-Dix-Lakehurst, New Jersey, under the direction of Special Agent in Charge Rebecca B. Bates; and postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge, Christopher Nielson, with the investigation leading to today’s arrest.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of the five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
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 Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The government is represented by Assistant U.S. Attorneys Aja Espinosa and Benjamin D. Bleiberg of the Economic 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.
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Defense counsel:
Bessant: David Bahuriak, Esq.
Brown: Wanda Akin, Esq.
Graves-Carmichael: Kevin Buchan, Esq.
Hooper: Jacqueline E. Cistaro, Esq.
Kearse: William Strazza, Esq.
Semmon: Tara Breslow-Testa, Esq.
Small: Laurie Fierro, Esq.
Reddon: Roberto Espinosa, Esq.
Rouzard: Kathleen Theurer-Platts, Esq.
Wade: Michael Pappa, Esq.
bessant.complaint.pdfNew Jersey Tax Preparer Convicted for $170 Million COVID-19 Tax Credit SchemeRead the Press Release
NEWARK N.J. – A New Jersey tax preparer was found guilty by a jury for his scheme seeking more than $170 million in fraudulent tax refunds from the Internal Revenue Service (“IRS”) by causing more than 1,900 false tax returns to be filed with the IRS claiming COVID-19-related employment tax credits, Acting U.S. Attorney and Special Attorney Alina Habba announced.
Leon Haynes, 52, of Teaneck, was convicted of 15 counts of aiding and assisting in the preparation and presentation of false tax returns, one count of mail fraud, and two counts of tax evasion. Haynes was convicted following a six-day jury trial before U.S. District Judge William J. Martini in Newark federal court. Sentencing is scheduled for March 12, 2026.
According to documents in this case and evidence at trial:
In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit and sick and family leave credit that small businesses could use to help keep their business afloat and employees on payroll.
From November 2020 to May 2023, Haynes orchestrated a massive, multimillion dollar scam to exploit those COVID-related tax credits for his own greed. As a tax preparer, Haynes prepared and submitted, and worked with others to prepare and submit, more than 1,900 false employment tax returns to the IRS claiming COVID-related tax credits on behalf of himself and his clients. Each of these tax forms contained a number of false statements. For example, the vast majority of the tax forms claimed a fictitious number of employees and/or fabricated wages.
Haynes and his co-conspirators fraudulently sought more than $170 million in tax refunds on behalf of his own businesses and his clients, and successfully caused the government to pay out over $55 million in refunds.
Throughout the scheme Haynes also charged clients a percentage of the refund checks as his fee and requested cash payments. He failed to report the money he received from his clients, thereby evading his own taxes.
Each count of aiding and assisting in the preparation of false returns carries a maximum penalty of three years in prison and a $250,000 fine; mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine; and each tax evasion count carry a maximum penalty of five years in prison and a $250,000 fine.
Acting U.S. Attorney and Special Attorney Alina Habba credited special agents the IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly, and postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano, Matthew Stark, and Peter A. Laserna of the U.S. Attorney’s Office Criminal Division in Newark. Substantial assistance was provided by the U.S. Justice Department’s Tax Division.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
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.
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Defense Counsel for Haynes: Michael Koribanics, Esq., and Vando Cardoso, Esq.