District of New Jersey
Press releases recorded for this federal judicial district.
Securities Trader Sentenced to 18 Months in Prison for Market Manipulation Scheme that Netted more than $17 Million in Illicit ProfitsRead the Press Release
NEWARK, N.J. – A New Jersey-based securities trader was sentenced today to 18 months in prison for orchestrating a massive, long-running market manipulation scheme and tax fraud that netted more than $17 million in illegal profits between 2014 and 2016, U.S. Attorney Craig Carpenito announced.
Joseph Taub, 41, of Clifton, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to counts four and five of a superseding indictment charging him with securities fraud and conspiracy to defraud the United States. Judge Vazquez imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
From 2014 to 2016, Taub and others conspired to manipulate the securities prices of numerous public companies by coordinating trading in dozens of brokerage accounts he secretly controlled. Taub used “straw accounts” that were held in the names of others to conduct much of his trading. Taub funded many of these straw accounts and used the straw account holders to conceal the scheme from regulators and law enforcement.
To manipulate securities prices, Taub engaged repeatedly in a series of contemporaneous transactions designed to artificially influence the market price of the securities of various publicly traded companies, and induce other market participants to trade in those securities based on the false impression that there was real market interest in the securities, using Run Based Manipulation and Order Based Manipulation.
Run Based Manipulation is a type of securities manipulation in which a manipulator takes either a long or a short position in a security, enters orders or trades in a manner designed to inflate or deflate the price of the security while attracting others to trade the security and finally reverse their position at the inflated or deflated price. A common feature of Run Based Manipulation is that the manipulator profits directly from the manipulated market by exploiting investors who bought at inflated prices or sold at depressed prices. Order Based Manipulation is a type of securities manipulation involving orders, sometimes but not always accompanied by trades, that are intended to give other market participants a false signal about the security’s demand or supply.
Taub also admitted defrauding the United States by hiding from the brokerage firms and the IRS the identities of those who actually controlled the straw accounts and who reaped the majority of the profits from the scheme. As a result, the profits from the straw accounts were taxed at the lower tax rates applicable to the straw account holders instead of the higher tax rates applicable to Taub, which allowed Taub to avoid $394,424 in taxes.
In addition to the prison term, Judge Vazquez sentenced Taub to one year of supervised release, ordered him to forfeit $17.1 million and pay restitution of $394,424 to the IRS.
The Department of Justice has also reached a settlement of its civil forfeiture case against assets acquired by Taub and his family using proceeds of the market manipulation scheme. Under the terms of the settlement, Taub and his family members agreed to forfeit all assets subject to the pending forfeiture complaint in which they have a potential interest. Taub is also required to cooperate with and assist the Justice Department in the orderly transfer, management and disposition of the relevant assets.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation. He also thanked the Securities and Exchange Commission’s New York Regional Office, under the direction of Richard Best, for its assistance in this investigation.
The government is represented by Criminal Division Deputy Chief Daniel V. Shapiro; Senior Trial Counsel Catherine R. Murphy and Assistant U.S. Attorney Jennifer S. Kozar of the U.S. Attorney’s Office Criminal Division in Newark; and Sarah Devlin, Chief of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit.
Two Passaic County Men Sentenced for Roles in Narcotics ConspiracyRead the Press Release
NEWARK, N.J. – Two Paterson, New Jersey, men were sentenced today for their roles in a conspiracy to distribute controlled substances, U.S. Attorney Craig Carpenito announced.
Dwayne Northern, a/k/a “Black,” a/k/a “D Black,” 35, was sentenced to 51 months in prison for conspiring to distribute heroin and distributing heroin and Isaiah Hargrove, 21, was sentenced to 40 months in prison for conspiring to distribute 40 grams or more of fentanyl and 100 grams or more of heroin, and to distributing a quantity of fentanyl and heroin.
Northern previously pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conspiracy to distribute and possess with the intent to distribute heroin and knowingly and intentionally distributing heroin. Hargrove previously pleaded guilty before Judge Martinotti to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl and knowingly and intentionally distributing heroin and fentanyl. Judge Martinotti imposed the sentences by videoconference today.
According to documents filed in this case and statements made in court:
The defendants and their conspirators are all members and associates of the 230 Boys street gang, which operates primarily in and around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through investigative techniques, including numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement officers determined that from September 2018 through Oct. 1, 2019, the defendants and others conspired to distribute narcotics, to include heroin and fentanyl.
In addition to the prison term, Judge Martinotti sentenced Northern to three years of supervised release and sentenced Hargrove to two years of supervised release.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Carpenito credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
New Jersey Man Pleads Guilty to Violating the Foreign Corrupt Practices ActRead the Press Release
A New Jersey man who controlled two U.S.-based companies pleaded guilty today for paying a total of $100,000 in bribes to a Korean government official in order to obtain and retain contracts with the Defense Acquisition Program Administration (DAPA), a state-owned and state-controlled agency within the Republic of Korea’s Ministry of National Defense.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, and Special Agent in Charge George M. Crouch Jr. of the FBI’s Newark Field Office made the announcement.
Deck Won Kang (Kang), 50, of Englewood Cliffs, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of violating the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).
Kang controlled two U.S.-based companies that provided goods and services, including naval equipment and technology, to DAPA. According to admissions made in connection with his guilty plea, from in or around January 2009 through in or around February 2013, Kang engaged in a bribery scheme in order for his companies to obtain and retain business with DAPA.
Kang admitted that he promised to provide a high-ranking official in the Korean Navy and a procurement official for DAPA with something of value when the official left public office. In exchange, the Korean official provided Kang with non-public information relating to the contracts in furtherance of Kang’s companies obtaining the contracts. Kang admitted that in order to fulfill his corrupt promise to the Korean official, between in or around April 2012 and in or around February 2013, at the official’s direction following the official’s retirement from DAPA, Kang caused a series of bribe payments totaling $100,000 to be wired from a bank account controlled by Kang in the United States to a bank account in Australia for the benefit of the Korean official.
The FBI’s Newark Field office conducted the investigation. Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Kogan of the District of New Jersey prosecuted the case. The Justice Department’s Office of International Affairs assisted with the case.
New Jersey Man Admits Violating Foreign Corrupt Practices ActRead the Press Release
NEWARK, N.J. – A New Jersey man today admitted that he paid a foreign official $100,000 in bribes to secure an improper business advantage and to obtain and retain business contracts, U.S. Attorney Craig Carpenito, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, and Special Agent in Charge George M. Crouch Jr. of the FBI’s Newark Field Office announced.
Deck Won Kang, 50, of Englewood Cliffs, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with violating the anti-bribery provision of the Foreign Corrupt Practices Act.According to documents filed in the case and statements made in court:
From January 2009 to February 2013, Kang was a citizen of the United States, a resident of New Jersey, and an officer, director, employee, and agent of two closely held New Jersey companies. The companies obtained and retained contracts with the Defense Acquisition Program Administration (DAPA), which was a state-owned and state-controlled agency within the Republic of Korea’s Ministry of National Defense. Kang promised a high-ranking official in the Korean Navy and a procurement official for DAPA that he would provide him with something of value once he left public office. Kang made this promise to: (1) to secure an improper business advantage, specifically obtaining non-public information about the contracts; (2) aid the companies in obtaining and retaining the contracts; and (3) to induce the foreign official to use his influence with the Korean Navy and DAPA to affect and influence a decision of DAPA concerning the companies obtaining and retaining the contracts. Kang caused $100,000 to be sent to the foreign official between April 2012 and February 2013.
The charge of violating the Foreign Corrupt Practices Act is punishable by a maximum potential penalty of five years in prison and a fine of the greater of $250,000, twice the gross profits to Kang or twice the gross loss suffered by the victim. Sentencing is scheduled for April 21, 2021.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Andrew Kogan of the District of New Jersey and Trial Attorney Della Sentilles of the Fraud Section of the Department of Justice. U.S. Attorney Carpenito also thanked the Department of Justice Office of International Affairs for its assistance with the case.
Defense counsel: Robert Mintz Esq. and Geoffrey Rosamond Esq., Newark
Essex County Man Sentenced to 24 Months in Prison for Possession with Intent to Distribute HeroinRead the Press Release
TRENTON, N.J. – An Essex County, New Jersey man was sentenced today to 24 months in prison today for possession with the intent to distribute heroin, U.S. Attorney Craig Carpenito announced.
Richie Santiago, 47, of Newark, previously pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to one count of possession with the intent to distribute heroin. Judge Martini imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
On at least four occasions between February 19, 2019 and March 27, 2019, Santiago sold quantities of heroin, at times laced with fentanyl, to an undercover law enforcement officer at locations in Newark and West Orange, New Jersey.
In addition to the prison term, Judge Martini sentenced Santiago to three years of supervised release.
U.S. Attorney Craig Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore, of the Cybercrime Unit in Newark.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Essex County Man Admits Participating in Armed Robbery Spree Spanning Multiple Counties in Northern and Central New JerseyRead the Press Release
NEWARK, N.J. – Meshach Whagar, 31, of Newark, N.J., admitted today to participating in a string of convenience store robberies that took place across New Jersey in November and December 2017, U.S. Attorney Craig Carpenito announced.
Whagar pleaded guilty by videoconference before United States District Judge Kevin McNulty to a superseding information charging him with one count of conspiracy to commit Hobbs Act robbery, nine substantive counts of Hobbs Act robbery, and one count of using a firearm during a crime of violence. Whagar’s co-defendant, Tione Davis, 38, of East Orange, N.J., previously pleaded guilty to federal charges relating to the armed robbery spree.
According to documents filed in this case and statements made in court:
Davis and Whagar committed a string of 20 armed robberies of convenience stores and gas stations that took place throughout New Jersey between November and December 2017, including locations in Essex, Middlesex, Morris, Bergen, Union, Hudson, and Passaic Counties. During those robberies, Davis, while wearing dark clothing and hiding his face with masks or scarves, brandished a handgun and demanded money from store clerks. After stealing cash from the stores, Davis fled with Whagar, who acted as the getaway driver.
Before being apprehended, the defendants led law enforcement on a high-speed vehicle pursuit in Morris County. Among the items found in the vehicle defendants used in the chase were two handguns matching the description of those Davis used during the robberies.The Hobbs Act charges each carry a maximum penalty of 20 years in prison. The charge of brandishing a firearm during a crime of violence carries a maximum penalty of life in prison and a mandatory minimum sentence of seven years in prison. Each count also carries a maximum fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for April 28, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. He also thanked the Morris, Union, Middlesex, Hudson, Passaic, Bergen, and Essex County Prosecutor’s Offices, as well as the Morris Plains, Springfield, Middlesex, Lodi, Roselle Park, Rahway, Parsippany, Rockaway, Mahwah, Elmwood Park, Bayonne, West Orange, East Brunswick, South River, Edison, Hoboken, Union, Clark, Kearny, Clifton, and Maplewood Police Departments for their work on this case.
The government is represented by Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit.
Defense counsel for Whagar: James Plaisted, Esq., Hackensack, N.J.
Defense counsel for Davis: Nabil Kassem, Esq., Clifton, N.J.Two Individuals Admit Role in Multimillion-Dollar Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – Two individuals today admitted their roles in a multimillion-dollar scheme that defrauded health benefits programs through the submission of medically unnecessary prescriptions for compounded medications, U.S. Attorney Craig Carpenito announced.
David M. Fulkerson, 48, of Indiana, and Nathaniel Stewart III, 38, of South Carolina, pleaded guilty to separate informations charging them with conspiracy to commit health care fraud. Fulkerson also admitted to his role in a conspiracy to violate the Anti-Kickback statute. Both individuals entered their guilty pleas by videoconference before U.S. District Judge Madeline Cox Arleo.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient because, for example, the patient is allergic to a dye or other ingredient or requires the medication in a different form.
From July 2014 to November 2016, Fulkerson and Stewart conspired to defraud health care benefits programs with others, including Kent Courtheyn, a/k/a “Troy Taylor,” who has been separately charged by indictment. Courtheyn recruited Fulkerson and Stewart to market compounded medications, such as scar creams, pain creams, and vitamins, that were medically unnecessary. In order to obtain medically unnecessary prescriptions for compounded drugs, Fulkerson and Stewart, at Courtheyn’s direction, recruited individuals who had prescription drug coverage under certain health benefits programs. In Fulkerson’s case, that included TRICARE, the health care program for the United States military. The conspirators selected medications based on their high insurance reimbursement amount rather than the patients’ medical needs. For instance, Fulkerson coached a patient on how to convince the doctor to write prescriptions for compounded medication that the patient did not need. Courtheyn, Fulkerson, Stewart, and others steered these prescriptions to certain compounding pharmacies, and in exchange, those compounding pharmacies paid Courtheyn, through his marketing company, a percentage of the reimbursement amount that they received from health benefits programs for each prescription that Fulkerson and Stewart referred. Courtheyn, in turn, paid Fulkerson and Stewart based on the compounded prescriptions that they helped generate.
Fulkerson and Stewart each face a maximum penalty of 10 years in prison on the health care fraud conspiracy charge; Fulkerson faces a maximum penalty of five years in prison on the Anti-Kickback statute conspiracy charge. They also face a $250,000 fine, or twice the gain or loss from the offense, whichever is greater, on each count. Stewart’s sentencing is scheduled for May 5, 2021. Fulkerson’s sentencing is scheduled for April 21, 2021.
As part of his plea agreement, Fulkerson must forfeit $759,710 in criminal proceeds and pay restitution of at least $2.3 million. Stewart must forfeit $756,293 in criminal proceeds and pay restitution of at least $4 million.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorneys José R. Almonte and Osmar J. Benvenuto of the Health Care Fraud Unit in Newark.
The charges and allegations in the indictment against Courtheyn are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel:
Fulkerson: Peter Carter Esq., Newark
Stewart: Henry M. Coxe III Esq., and Brian Coughlin Esq., Jacksonville, Florida
New York For-Hire Vehicle Driver Admits Federal Sex CrimesRead the Press Release
CAMDEN, N.J. – A New York man today admitted to enticing a minor and transporting the minor across state lines to engage in sexual activity, and to receiving images of child sexual abuse from another minor, U.S. Attorney Craig Carpenito announced.
Richard Gabriel Piedra Ordonez, 36, of Queens, New York, pleaded guilty by videoconference before U.S. District Judge Noel L. Hillman in Camden federal court to a three-count information charging him with one count of coercion and enticement of a minor; one count of transporting a minor to engage in criminal sexual activity; and one count of receiving child pornography.
According to documents filed in this case and statements made in court:
In April 2019, Piedra began communicating with a New Jersey resident who was under the age of 16 using Snapchat and other social media and messaging platforms. Piedra was aware of the minor’s age and misrepresented his own age as 19 when he was actually 35 years old. Over the course of the subsequent months, Piedra and the victim met in person and engaged in a sexual relationship. Piedra traveled to New Jersey to have sex with the victim and twice drove the victim to his home in New York City, where they engaged in sexual activity.
Federal law enforcement agents executing a search warrant on Piedra’s residence in December 2019 found sexually explicit images and videos of minors on a hard drive located in Piedra’s bedroom. Further investigation revealed that, in 2017, Piedra had communicated with an Indiana resident who was under the age of 15 using various social media and messaging platforms. Piedra was aware of the minor’s age and misrepresented his own age as 19 years old. Piedra requested and received sexually explicit images and videos from this victim.
The count of transporting a minor carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of life in prison, and a $250,000 fine. The count of coercion and enticement carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of life in prison, and a $250,000 fine. The count of receiving child pornography carries a mandatory minimum prison sentence of 5 years, a maximum potential penalty of 20 years, and a $250,000 fine. Piedra will be required to register as a sex offender. Sentencing is scheduled for April 14, 2021.
U.S. Attorney Carpenito credited special agents with FBI’s Atlantic City Child Exploitation & Human Trafficking Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner, and the N.J State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea. He also thanked the Cape May County Prosecutor’s Office, under the direction of Prosecutor Jeffrey H. Sutherland, for its assistance with the investigation.
The Government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: James J. Leonard, Esq., Atlantic City, New Jersey
New Jersey Man Charged with Stealing Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man will make his initial court appearance today on charges of using other individuals’ personal identification information to obtain unemployment insurance benefits, U.S. Attorney Craig Carpenito announced.
Maurice Mills, 28, of Union Township, New Jersey, is scheduled to appear by videoconference before U.S. Magistrate Judge James B. Clark III.
According to documents filed in this case and statements made in court:
The federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment, such as people who are self-employed, independent contractors, and gig economy workers. The CARES Act also created a new temporary federal program called the Federal Pandemic Unemployment Compensation program (FPUC) that provides an additional $600 weekly benefit to those eligible for PUA and regular unemployment insurance benefits.
A single IP address was used to submit unemployment insurance benefits claims on behalf of approximately 20 individuals to the State of New York. Many of these claims were in the names of individuals located in Texas and directed the benefits to be sent to locations in New Jersey. Mills was associated both with the IP address as well as a telephone number used to make some of the claims. Mills also was observed using an unemployment insurance benefits debit card to make a withdrawal from an ATM. To date, the claims made using the IP address have resulted in more than $400,000 in actual losses and more than $600,000 in potential losses. The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or loss, whichever is greater.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; and special agents of the U.S. Secret Service, under Special Agent in Charge Mark McKevitt in Newark, with the investigation leading to the charges. U.S. Attorney Carpenito also thanked the New York State Department of Labor, Office of Special Investigations for its assistance in the investigation.
This case is being investigated as part of the Department of Justice’s COVID Fraud Task Force. To learn more about the Department’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. The public is urged to report suspected fraud schemes related to COVID-19 to the National Center for Disaster Fraud (NCDF) hotline by phone at (1-866-720-5721) or via an online reporting form available at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark and Trial Attorney Jessica Peck, Trial Attorney, of the DOJ Computer Crime and Intellectual Property Section.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.Lucchese Crime Family Soldier Admits Aggravated AssaultRead the Press Release
NEWARK, N.J. – A soldier in the Lucchese Crime Family today admitted planning and carrying out an aggravated assault on the current husband of one of the former stars of the Bravo television show “The Real Housewives of New Jersey,” U.S. Attorney Craig Carpenito announced.
John Perna, 43, of Cedar Grove, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to Count One of the indictment pending against him, charging him with committing a violent crime in aid of racketeering activity. The indictment also charges Thomas Manzo, 55, of Franklin Lakes, New Jersey.
According to documents filed in his case and his statements made in court:
In the spring of 2015, Manzo, one of the owners of the Brownstone Restaurant in Paterson, New Jersey, and the ex-husband of the Bravo star, hired Perna to assault his ex-wife’s new boyfriend (now husband) in exchange for a deeply discounted wedding reception to be held at Manzo’s upscale Passaic County venue. Perna, who is a “made man” in the Lucchese Crime Family, planned and carried out the assault on July 18, 2015, with the help of a member of his crew. Perna was armed with a “slapjack” during the assault. In exchange for committing the assault, Perna held a lavish wedding reception at Manzo’s restaurant, just one month later, for a fraction of the price he would otherwise have paid. The reception was attended by over 330 guests, many of whom were members of the Lucchese Crime Family.
The violent crime in aid of racketeering activity count carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for April 28, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations in the indictment remaining against Manzo are merely accusations, and he is presumed innocent unless and until proven guilty.
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Defense counsel: Stacy Biancamano Esq., Cranford, New Jersey
Bergen County Man Admits Stealing Reimbursement Checks from Medical PracticeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted stealing health insurance reimbursement checks from a Hudson County medical practice for over four years, U.S. Attorney Craig Carpenito announced.
Nuno Fernandez, 38, of Wyckoff, New Jersey, pleaded guilty by videoconference before Senior U.S. District Judge Stanley R. Chesler to an information charging him with five counts of wire fraud.
According to documents filed in the case and statements made in court:
Fernandez was the office manager for a medical practice in North Bergen, New Jersey, where he handled and reconciled reimbursement checks that the practice received from health care benefit programs for medical services it provided. Starting in April 2012, Fernandez began stealing some of the checks by endorsing them in his own name and depositing them into his personal bank account using an application on his mobile telephone. No one at the medical practice authorized Fernandez to deposit the checks into his personal bank account. Fernandez continued to steal checks from the practice until March 2016. In total, Fernandez stole over $840,000.
Fernandez faces a maximum potential penalty of 20 years in prison on each count and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greater. Sentencing is scheduled for April 20, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. He also thanked the Department of Labor—Office of the Inspector General and the National Insurance Crime Bureau for its assistance with the case.
The government is represented by Senior Trial Counsel Jason S. Gould of the Health Care Fraud Unit in Newark.
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Defense Counsel: Joseph Benedict Esq., New Brunswick, New Jersey
Bergen County Man Admits Stealing Millions of Dollars from Lenders and Corporations in Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted that he defrauded lenders and corporations of $4.9 million by impersonating two bank executives interested in funding syndicated loans for global companies, U.S. Attorney Craig Carpenito announced.
Matthew O’Callaghan, 43, of Upper Saddle River, New Jersey, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of wire fraud.According to the documents filed in this case and statements made in court:
From 2016 through 2019, O’Callaghan defrauded at least two global financial services groups and four global companies of millions of dollars by deceiving them into believing that “Bank A” was agreeing to commit funds to revolving credit facilities. He contacted the victim-lenders and victim-companies using the aliases “Edward Tierney” and “Michael Nash,” whom he falsely represented were executives at Bank A. O’Callaghan induced the victim-lenders and victim-companies into agreeing to pay Bank A to take on a commitment to fund revolving credit facilities.
O’Callaghan submitted numerous fraudulent documents to the victim-lenders and victim-companies that were designed to deceive them into believing that Nash and Tierney were legitimate representatives of Bank A, when in fact they were not. Specifically, O’Callaghan created email addresses to resemble legitimate Bank A email addresses, false email signature blocks for Tierney and Nash that bore the Bank A logo and listed the business address for Bank A, fraudulent wiring instructions bearing Bank A’s logo and address, and a tax form bearing a tax identification number for Bank A.
O’Callaghan directed the victim-lenders and victim-companies to wire funds to a bank account at Bank A that O’Callaghan controlled and then converted the money for personal expenses, the purchase of an automobile, gambling, travel, and payments to a private club.
The wire fraud charge to which O’Callaghan pleaded guilty carries a maximum of 20 years in prison and a potential $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for April 28, 2021.U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Ricardo Solano Jr. Esq., Newark
Previously Convicted Felon Admits to Unlawfully Possessing FirearmRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man today admitted illegally possessing a firearm, U.S. Attorney Craig Carpenito announced.
James Mobley, 41, of Riverside, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:
On Feb. 8, 2020, officers from the Burlington County Police Department responded to a 911 call regarding a man fitting Mobley’s description arguing with an unidentified woman. Officers driving in marked police vehicles located Mobley, identified themselves, and instructed him not to run. Despite the officers’ verbal commands, Mobley ran and crouched behind a nearby vehicle. Officers exited their vehicles and pursued Mobley on foot. As one of the officers approached, Mobley tossed a Glock 17 firearm that was loaded with 10 rounds of 9mm caliber ammunition on to the ground. Mobley has at least five prior felony convictions, including two controlled substance offenses and two resisting arrest offenses.
The charge of possession of a weapon by a convicted felon carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 14, 2021.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
U.S. Attorney Carpenito credited special agents of the FBI, Trenton Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s guilty plea. He also thanked the Burlington Township Police Department, under the direction of Chief John Fine, and the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, for their assistance.
The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Leader of Newark Drug Trafficking Organization Admits Participation in Heroin ConspiracyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role as a member of a heroin trafficking conspiracy in Newark, U.S. Attorney Craig Carpenito announced.
Keith Herd, 32, of Newark, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to a third superseding indictment charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and distribution of and possession with intent to distribute heroin.
Between March and August 2018, Herd and 27 other individuals were charged by complaint with conspiracy to distribute heroin and cocaine base; one individual also was charged with firearms offenses relating to his drug trafficking. On Aug. 20, 2019, a grand jury returned a 22-count third superseding indictment charging Herd and four other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearms offenses; Herd was charged with continuing criminal enterprise for his leadership role in the long-term drug conspiracy. The charges in the third superseding indictment remain pending against two defendants. They are presumed innocent unless and until proven guilty.
According to documents filed in this case and statements made in court:
Herd was the leader of a drug trafficking organization that dealt heroin and crack cocaine in and around Newark, specifically around Hayes Street and 14th Avenue in the area of the New Community Corporation community development (NCC). The organization was comprised of members of the Brick City Brim set of the Bloods street gang.
The investigation revealed that in addition to selling drugs, members of the organization alerted each other to police presence and the presence of rival gang members or drug dealers within NCC. The members also shared narcotics supply, narcotics proceeds, and customers, and raised bail money for each other following their numerous arrests. Members of the organization have also engaged in violence and been the subjects of violent crime in connection with their narcotics trafficking activities.
The heroin trafficking conspiracy count carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The drug distribution and possession with intent to distribute count carries a maximum potential penalty of 20 years in prison, and a $1 million fine. Herd’s sentencing is scheduled for April 26, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to today’s guilty plea. He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, the New Jersey State Parole Commission, and the U.S. Marshals Service for their assistance.
The case was investigated as part of the Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Christopher D. Amore of the U.S. Attorney’s Office in Newark.
Cumberland County Man Admits Conspiring to Distribute Opioids, Launder Millions of Dollars in Drug ProceedsRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man admitted today conspiring to illegally distribute over 1 million prescription pills and launder drug trafficking proceeds through the use of fictitious shell companies, U.S. Attorney Craig Carpenito announced.
Alton Chatmon, 50, of Bridgeton, New Jersey, pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to distribute controlled substances, including Tramadol, a synthetic opioid, and butabital; and one count of conspiring to commit money laundering.
According to documents filed in this case and statements made in court:
Chatmon is a former licensed pharmacist who operated two pharmacies in southern New Jersey until 2015. In 2015, after a DEA inspection of his pharmacies showed violations of regulations for the handling of controlled substances, Chatmon voluntarily surrendered his DEA registration, which had allowed him to process and fill prescriptions for controlled substances. In 2016, the State of New Jersey suspended Chatmon’s pharmacist license for two years.
From January 2017 until August 2018, Chatmon obtained large quantities of Tramadol pills from suppliers outside the United States by having the pills shipped to numerous U.S. Post Office boxes that he directed a conspirator to open in the names of fictitious businesses. Chatmon received customer orders from other conspirators that had been placed on internet sites or over the phone. He and his conspirators repackaged the Tramadol, a Schedule IV controlled substance, and butabital, a Schedule III controlled substance, and mailed the pills to customers to fill their orders. Chatmon admitted filling the orders for the customers of the unlicensed online pharmacy, knowing that the customers did not have valid prescriptions, that he was not a licensed pharmacist at the time, and without regard for whether the customers had any legitimate medical need for these medications. In exchange for the pills provided, the customers provided Chatmon and other conspirators with U.S. Postal money orders, which were deposited into bank accounts that Chatmon and his conspirators controlled. The bank accounts were set up using shell companies designed to disguise the source and control of the funds. Chatmon and his conspirators also sent interstate and international wire transfers totaling hundreds of thousands of dollars to their drug suppliers in both India and in other states around the United States to pay for the pills supplied to them.
Chatmon admitted that the drug conspiracy involved the illegal distribution of over 600,000 Tramadol pills and over 1 million Fioricet pills (containing butabital). He also admitted that the money laundering conspiracy involved the laundering of over $1.5 million in drug trafficking proceeds.
Chatmon faces a maximum penalty of 30 years in prison and a fine of up to $750,000. Sentencing is scheduled for April 19, 2021.
U.S. Attorney Craig Carpenito credited inspectors with the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Damon E. Wood; special agents of IRS-Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Michael Montanez; diversion investigators of the Drug Enforcement Administration, Newark Field Division, under the direction of Special Agent in Charge Susan A. Gibson; special agents of the Food and Drug Administration, Office of Criminal Investigations, Metro Washington Field Office, under the direction of Special Agent in Charge Mark S. McCormack; and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin of the Camden Division.
Convicted Felon Sentenced to Additional 15 Months in Prison for Escape from Halfway HouseRead the Press Release
NEWARK, N.J. –– A convicted felon was sentenced today to an additional 15 months in prison for escaping from a halfway house, U.S. Attorney Craig Carpenito announced.
Joseph Reid, 40, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of escape from federal custody. Judge Cecchi imposed the sentence today by videoconference.
According to the documents filed in this case and statements made in court:
On Jan. 26, 2010, Reid was sentenced to 151 months’ imprisonment following his conviction for possession with intent to distribute cocaine. On Sept. 17, 2019, Reid was transferred to the custody of the Toler House Residential Reentry Center, a halfway house located in Newark. On Dec. 31, 2019, after failing to return to the Toler House on an approved day pass, Reid was charged with escape.
The additional 15 months in prison for which Reid was sentenced today will run consecutively to the remainder of his original sentence for drug distribution.
U.S. Attorney Carpenito credited special agents of the U.S. Marshals Service, under the direction of Marshal Juan Mattos, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
United States Attorney Craig Carpenito Announces his Resignation, Effective January 5, 2021Read the Press Release
NEWARK, N.J. – The United States Attorney for the District of New Jersey, Craig Carpenito, announced his resignation today, effective at 11:59 p.m., Jan. 5, 2021. Mr. Carpenito made the following statement regarding his departure and tenure in office:
Serving as the United States Attorney has been the greatest professional honor of my lifetime. It’s a dream for any line AUSA to eventually lead the office that they love. Over the past three years, we have been through a lot – the longest shutdown in government history, a global pandemic, and two tragic acts of violent extremism that led to the loss of precious lives. Through it all, we protected the great traditions of this office, the Department of Justice and the state that we all love and serve. For that, I am forever grateful.
I would also like to thank Attorney General Jefferson B. Sessions for appointing me United States Attorney in January 2018 and the United States District Court for the District of New Jersey for voting me into my position in April 2018. Being chosen by this Court to be the United States Attorney has been particularly gratifying.”
Over the past three years, I have been blessed to work alongside a tremendous front office and an incredible group of Assistant U.S. Attorneys. The following are only a few highlights among all that we have accomplished.
Organizational Changes
We made significant organizational changes to the Criminal and Civil Divisions, beginning upon my arrival in 2018, when I re-established the Violent Crimes Unit and created the Cybercrimes and Opioids Units. Opioids was the first standalone opioids enforcement unit in the United States, and the second unit in our Criminal Division to include both criminal and civil AUSAs. As a member of the Attorney General’s Advisory Subcommittees on both Health Care and Cybercrimes, we were thought leaders in both areas and brought some of the most significant cases in the country over the past three years.
I created a third such unit at the end of 2019: The Government Fraud Unit. Keeping AUSAs conducting parallel investigations under one roof has improved communication between the two groups and increased the speed with which such cases can be brought.
Staffing
We increased the number of criminal cases we prosecuted, and civil cases we brought and defended, by aggressively hiring new AUSAs and SAUSAs. Throughout all of our offices – Newark, Camden, and Trenton – staffing is at record levels. When I took office on Jan. 5, 2018, we had only 130 AUSAs on board even though we had a total of 147 AUSA slots. Today, we have 155 AUSA slots, all of which have been filled, and 10 SAUSAs - a 27 percent increase in our headcount. We hired and filled our 17 vacant AUSA slots by improving the management of our budget, and we increased our headcount by applying to Washington for increased funding to hire eight additional AUSAs for specific slots (immigration, affirmative civil enforcement in health care, violent crime, and unemployment insurance benefit fraud). We also asked for, and received, Special Assistant U.S. Attorneys from other federal agencies, including the Securities & Exchange Commission, the Environmental Protection Agency, the Department of Labor, the United States Trustee, and the United States Postal Inspection Service, and from the State of New Jersey and many of our county prosecutors’ offices. We have hired a diverse group of 74 AUSAs from different bakcgrounds and experiences. Our office is as strong as it has ever been.
Increased Productivity
The federal government’s fiscal year runs from October 1 to September 30. In fiscal year 2017, the last full year before I rejoined the Office, the Office brought 870 criminal cases. In 2018, that number went up to 1,217, an increase of nearly 40 percent. In 2019, the number increased again by nearly 10 percent, to 1,333 criminal cases. And in fiscal year 2020, a full half of which occurred during the COVID-19 pandemic and all of the challenges that posed and continues to pose to law enforcement, the number increased yet again by over 15 percent, to a total of 1,535 criminal cases. As an Office, we have been working smarter and we have been working harder. These numbers reflect that.
Violent Crime
One of my earliest priorities was tackling the violent crime problem in New Jersey, particularly in its largest cities. We moved immediately to strengthen our relationships with our state and local partners and to dedicate additional resources to investigating and prosecuting violent crime. The results were gratifying. For example, between 2017 and 2018, Newark saw a 30 percent reduction in the number of shooting victims city-wide. In 20l9, the number of shooting victims and shooting incidents declined another 39 percent when compared to the same time period in 2018. In that same year, the number of murders in Newark reached its lowest level in nearly six decades.
The overall trends statewide were similar. The number of shooting victims in New Jersey declined from 1,353 in 2017 to 1,050 in 2018 and 1,000 in 2019, a decrease of 26 percent over that period. Of those, the number of murder victims declined from 233 in 2017 to 187 in 2018 to 158 in 2019, an even greater decrease of 32 percent over that period. These significant gains would not have been possible without the robust federal/state/local partnership led by this Office.
During my tenure, we expanded our Violent Crime Initiatives from Newark to Jersey City, Paterson, Trenton, and Camden. We dedicated more AUSAs to each of the VCIs, and we developed long-term relationships with our law enforcement partners to ensure that the VCIs would be successful. The Attorney General recognized our VCI work with AG Awards in two consecutive years, first in 2019 to the Newark VCI for cooperative law enforcement, and next in 2020 to Deputy Chief of the Criminal Division Mary Toscano, our Newark VCI coordinator, for excellence in management.
The violent crime numbers were continuing to decrease in 2020 when the pandemic hit. Since that occurred in mid-March, violent crime numbers have risen in many of our major cities. Thankfully, our numbers in New Jersey have remained better than other major cities in the United States. It is my sincere hope that by maintaining our focus on investigating and prosecuting violent crime at the federal level, we can start pushing those numbers in the right direction again in 2021.
Task Forces
In 2020, the Attorney General appointed me to lead two nationwide task forces. On March 24, 2020, the Attorney General created the COVID-19 Hoarding and Price Gouging Task Force. Our office, under the leadership of Deputy Chief of the Criminal Division Nicholas Grippo, AUSA David Simunovich, and Chief of the Appeals Division Mark Coyne, led the charge to investigate and prosecute the illicit hoarding and price gouging of critical COVID-19 personal protective equipment. With the help of our partners in the Antitrust Division, and with resources from U.S. Attorney’s Offices around the country, we created a mechanism by which to quickly intake hundreds upon hundreds of price-gouging complaints, assign those investigations to AUSAs around the country, and quickly and efficiently bring, when appropriate, criminal charges.
On June 26, 2020, the Attorney General appointed me, along with the U.S. Attorney for the Northern District of Texas, to lead the Task Force on Violent Anti-Government Extremists. Our office, under the leadership of AUSA Dean Sovolos, stood up this task force. We appointed task force coordinators in specific regions of the country to launch and coordinate investigations, with the FBI and local U.S. Attorney’s Offices, into violent extremists such as the Boogaloo and other white supremacist groups.
Civil Rights Enforcement
We increased our prosecution of criminal and civil cases involving civil rights, dedicated more resources to this important work, and were recognized by EOUSA for our excellence in this field. On the civil side, we increased the size of our civil unit by 50 percent. And, we were awarded in 2019 with a Director’s Award, to Michael Campion, Chief of the Civil Rights Unit in the Civil Division, and AUSA Kelly Horan Florio, for Superior Performance by Civil AUSAs, based upon their record of excellence in civil rights work. On the criminal side, I appointed Joseph Gribko as our first Senior Civil Rights Counsel. Throughout our offices, we charged a number of important criminal civil rights against law enforcement officers across the state. And, in 2020, we were recognized for this work as well, with a Director’s Award, to Executive Assistant U.S. Attorney Rahul Agarwal, for the successful civil rights prosecutions of several Paterson police officers.
eLitigation
Another of my earliest priorities was the advancement of our eLitigation capabilities. I recognized during my time in private practice that the government had fallen far behind the pace of the private sector when it came to efficiently receiving, processing, and using electronic evidence. At my request, our Office became one of the first USAOs to participate in an EOUSA pilot program designed to revolutionize and modernize our eLitigation program. This program was such a success that members of our office and EOUSA won a Director’s Award for it in 2020, and led to Daniel Shapiro, Deputy Chief of the Criminal Division, being named as one of the co-chairs of the nationwide eLitigation initiative that followed and seeks to replicate our success.
Medicare Strike Force
When I rejoined the Office in 2018, the District of New Jersey was the only federal judicial district that appeared on the top 10 list of healthcare fraud hotspots maintained by the Fraud Section of the Department of Justice, but lacked a DOJ Medicare Strike Force. I acted quickly to change that, and in August 2018, then-head of the Criminal Division Brian Benczkowski and I announced the formation of a Medicare Strike Force in New Jersey. Since that time, the Strike Force has doubled in size, and now comprises four DOJ Trial Attorneys and a Chief. The Strike Force attorneys have worked cases both separately and in tandem with our Healthcare Fraud and Opioids AUSAs on healthcare fraud enforcement matters across the state.
With the DOJ Medicare Strike Force, there are now 170 federal prosecutors resident in the District of New Jersey.
* * *
Upon United States Attorney Carpenito’s departure, First Assistant U.S. Attorney, Rachael A. Honig, will serve as Acting U.S. Attorney under the Vacancies Reform Act until a replacement is named.
Ms. Honig first joined the United States Attorney’s Office as an Assistant U.S. Attorney in 2003. She has served in various supervisory roles in the office, including Deputy Chief of the Criminal Division and Counsel to U.S. Attorney Paul Fishman, before departing for a legal position in the private sector. Upon returning to the office as United States Attorney, Carpenito appointed Ms. Honig his First Assistant U.S. Attorney. She is only the second woman to serve as the First Assistant and the first since 1983. Now, Ms. Honig will be the second woman in the 232-year history of this office to be its chief federal law enforcement officer.
“Throughout my tenure, Rachael has been my partner and principal advisor on everything that I do,” Carpenito said. “I am extremely proud and honored that she will be the Acting U.S. Attorney when I leave. The office and its legacy could not be in better hands.”
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Sussex County Man Charged with Fraudulently Obtaining $5.6 Million Loan Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, man will make his initial court appearance today on charges of fraudulently obtaining a federal Paycheck Protection Program (PPP) loan of over $5 million, U.S. Attorney Craig Carpenito announced.
Azhar Sarwar Rana, 30, of Newton, New Jersey, is charged by complaint with one count of bank fraud and one count of money laundering. Rana was arrested Dec. 12, 2020, after he booked a same-day flight to Pakistan; he made his initial appearance by videoconference today before U.S. Magistrate Judge James B. Clark III and was detained without bail.
According to documents filed in this case and statements made in court:
Rana submitted a fraudulent PPP loan application to a lender on behalf of a corporate entity, Azhar Sarwar Rana LLC, that purportedly invested in real estate development. The application falsified payroll and tax information and included internally inconsistent listings of the number of company employees. New Jersey Department of Labor records showed that Azhar Sarwar Rana LLC paid no wages in 2019, and the minimal wages it purportedly paid in 2020 were mostly to individuals whose submitted Social Security numbers did not correspond to their submitted names.
Based on Rana’s alleged misrepresentations, the lender approved Rana’s PPP loan application and provided Azhar Sarwar Rana LLC with an approximately $5.6 million in federal COVID-19 emergency relief funds meant for distressed small businesses.
Rana used the fraudulently obtained PPP loan proceeds to pay for numerous personal expenses, including to invest millions in the stock market, make a payment to a luxury car dealership, and send hundreds of thousands of dollars to accounts in Pakistan.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Social Security Administration – Office of the Inspector General, under the direction of Special Agent in Charge John F. Grasso; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to the charges.
The count of bank fraud carries a maximum potential penalty of 30 years year in prison and a $1 million fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater; the count of money laundering carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Paterson Associate of 230 Boys Gang Indicted for Drug Conspiracy and Possession and Distribution of Heroin and FentanylRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was indicted by a grand jury today for his role in a conspiracy to distributed illegal drugs in Paterson, U.S. Attorney Craig Carpenito announced.
Dashion Kelson, 40, a/k/a “Tank,” a/k/a “Izzy,” a/k/a “Stizzy, of Paterson, New Jersey, was indicted on charges of conspiring to distribute and possess with the intent to distribute 100 grams or more of heroin, and 40 grams or more of fentanyl, five counts of distribution of controlled substances, and two counts of possession with the intent to distribute heroin. Kelson and 16 other members and associates of the 230 Boys were charged by complaint in October 2019.
According to the documents filed in this case and statements made in court:
Kelson and his conspirators are members and associates of the 230 Boys street gang, which operates primarily in and around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through investigative techniques, including numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from September 2018 through Oct. 3, 2019, Kelson and others conspired to distribute narcotics, to include heroin and fentanyl. On six occasions, he distributed controlled substances, to include heroin and fentanyl. On Oct. 3, 2019, Kelson possessed with the intent to distribute two separate quantities of heroin.
Six co-defendants have since pleaded guilty before U.S. District Judge Brian R. Martinotti: Keith Brinkley, 30; Isaiah Hargrove, 21; Tyson Jacobs, 21; Amir Jones, 21; Dwayne Northern, 35; and Cequan Wharton, 30, all of Paterson. Six other co-defendants have been charged by a second superseding indictment: Wyzier Peterson, 23; Carl Brown, 26; Aaryn Abrams, 24; Najier Boone, 24; Zikeme Brooks, 27; and Jimir Ricks, 26.
Counts 1 and 8 of today’s indictment carry a mandatory minimum sentence of five years in prison, a maximum penalty of 40 years in prison, and a mandatory fine of $5 million. Counts 2 through 7 and 9 carry a maximum penalty of 20 years in prison, and a maximum fine of $1 million.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Carpenito credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations against Kelson and the remaining co-defendants in the complaint and second superseding indictment are merely accusations, and they are presumed innocent unless and until proven guilty.
Monmouth County Man Sentenced to 13 Months in Prison for Role in Multi-State Patient Brokering and Bribery SchemeRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 13 months in prison for participating in a conspiracy to defraud health insurance companies through a multi-state patient brokering scheme in which he bribed drug-addicted individuals to enroll in drug rehabilitation in exchange for referral fees from the rehabilitation centers, U.S. Attorney Craig Carpenito announced.
Peter J. Costas, 27, of Red Bank, New Jersey, previously pleaded guilty by teleconference before U.S. District Judge Peter G. Sheridan to an information charging him with one count of conspiracy to commit health care fraud. Judge Sheridan imposed the sentence by videoconference today.
According to documents filed in the case and statements made in court:
Costas helped orchestrate a scheme in New Jersey, California, and other states that involved bribing individuals addicted to heroin and other drugs to enter into drug rehabilitation centers so Costas and his conspirators could generate referral fees from those facilities.
Costas worked with several marketing companies to carry out the scheme, but one marketing company in California run by Costas’s conspirators was pivotal. The marketing company maintained contractual relationships with drug treatment facilities around the country. Costas was engaged by the marketing company to recruit potential patients, who were addicted to heroin or other drugs and who had robust private health insurance, from New Jersey and other states.
To convince drug-addicted individuals to travel to and enroll in rehabilitation when they otherwise would not have, Costas offered to bribe them – often as much as several thousand dollars. Once they agreed to enroll in drug rehabilitation in exchange for the offered bribe, Costas and the owners of the marketing company would arrange and pay for cross-country travel to the drug treatment centers in California and other states. Costas would stay in touch with the New Jersey patients at the facilities and specifically instruct them to stay at the facilities long enough to generate referral payments.
Costas and the marketing company often directed patients to different rehabilitation facilities month after month to generate multiple referral payments without regard to whether the substance abuse treatment was medically necessary or effective. In a conversation over Facebook, one patient told Costas that if Costas made good on his promise to pay the patient a bribe, the patient would enroll in additional facilities to trigger additional referral payments and bribes: “[J]ust get us [sic] grab the dough and put us in another place. . . . Get paid some more feel me. . . . I’ll keep this up all year wit[h] you. As long as you do us right.” When the patient later expressed doubt that Costas would pay the bribe, Costas responded, “Don’t worry. . . . I do this with SO MANY PPL [people].”
Costas and the marketing company sent patients to facilities in California and other states that they knew provided ineffective drug treatment or actually fostered drug use on their premises. The facilities typically paid the marketing company a fee of $5,000 to $10,000 per patient referral, and Costas and other brokers received approximately half that amount for each patient they brokered. During the scheme, Costas brokered dozens of patients on behalf of marketing companies around the country, and the conspiracy caused millions of dollars of losses for health insurers.
In addition to the prison term, Judge Sheridan sentenced Costas to three years of supervised release and ordered him to pay restitution of $502,208.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Health Care Fraud Unit in Newark.
Cumberland County Man Admits Conspiring to Distribute Cocaine and Possessing with Intent to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Cumberland County, New Jersey, man pleaded guilty to conspiracy to distribute 500 grams or more of cocaine and possession with intent to distribute 400 grams or more of fentanyl, U.S. Attorney Craig Carpenito announced.
Oscar J. Gonzalez, 37, of Vineland, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez to one count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine and possession with intent to distribute 400 grams or more of fentanyl.
According to documents filed in this case and statements made in court:
From Jan. 20, 2020, through Jan. 26, 2020, Gonzalez conspired with others to distribute kilograms of cocaine. On Jan. 25, 2020, he agreed to purchase kilograms of cocaine and, pursuant to that agreement, traveled to a location in Union County, New Jersey, to obtain the cocaine. He brought with him approximately $24,000 in cash, in order to pay for one kilogram of cocaine. Once at that location, he was arrested and charged with conspiracy to distribute 500 grams or more of cocaine.
While on release in connection with that case, Gonzalez agreed to distribute five kilograms of fentanyl. On April 24, 2020, Gonzalez arranged for another individual to deliver the fentanyl to a location in Monmouth County, New Jersey. Law enforcement officers seized the fentanyl from Gonzalez’ conspirator, and Gonzalez was arrested.
The count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine carries a mandatory minimum sentence of five years in prison, a maximum sentence of 40 years in prison, and a fine of up to $5 million. The count of possession with intent to distribute 400 grams or more of fentanyl carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment, and a fine of up to $10 million. Sentencing is scheduled for April 21, 2021.
U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent Susan A. Gibson in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Camden Man Admits Trafficking in High-Dose Oxycodone PillsRead the Press Release
CAMDEN, N.J. – A Camden man today admitted conspiring to distribute and selling high-dose oxycodone pills in connection with his role in a drug trafficking ring, U.S. Attorney Craig Carpenito announced.
Erick Bell, 48, pleaded guilty today by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute and possess with intent to distribute oxycodone and distributing and possessing with intent to distribute quantities of oxycodone.
According to documents filed in this case and statements made in court:
Bell admitted that on multiple occasions from January 2020 to March 2020, he worked with Rocco DePoder, 67, of Gloucester City, New Jersey, Alfred Kee Jr., 52, of Blackwood, New Jersey, and others to sell oxycodone in and around Camden and Gloucester City. For example, Bell admitted that on Feb. 3, 2020, he obtained 160 80 mg. oxycodone pills from Kee, and sold DePoder 60 of the pills for $25 each and 100 of the pills to Maurice Williams for $24 each. Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
Both charges carry a maximum penalty of 20 years in prison and a fine of $1 million, or twice the gross loss or gain caused by the offenses, whichever is greater. Sentencing is scheduled for April 12, 2021.
Eight other defendants – DePoder; Kee; Marcus Rushworth, 47, and Kenneth Rushworth, 59, both of Gloucester City; Wayne Muse, 74, of Lindenwold, New Jersey; Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood, New Jersey; Steven Walker, 47, and Alexander Siaca, 55, both of Camden – previously pleaded guilty before Judge Bumb to informations charging them with drug trafficking offenses involving the distribution of prescription drugs. They are awaiting sentencing.
U.S. Attorney Carpenito credited special agents of FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; the U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; the New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared M. Maples; the Camden County Police Department, under the direction of Chief Joseph Wysocki; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s guilty plea.
He also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration (DEA) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the U.S. Attorney’s Office’s Camden Office and Sara F. Merin of the Newark Office.
Three Men Charged with Conspiracy to Defraud Victims of More Than $3 MillionRead the Press Release
CAMDEN, N.J. – A Burlington County resident and a former Camden County resident are among three men charged with conspiring to defraud at least 43 victims out of more than $3 million through the sale of phony business opportunities, U.S. Attorney Craig Carpenito announced.
David Weinstein 61, formerly of Cherry Hill, New Jersey, and now of Dallas, Texas; Vijay Vanam Reddy 45, of Milan, Michigan, and Kevin Brown, 61, of Burlington, New Jersey, are each charged by complaint with one count of conspiracy to commit wire fraud. Reddy was arrested today and is scheduled to appear in Detroit, Michigan, federal court this afternoon. Brown and Weinstein were arrested on Dec. 8, 2020. Brown appeared before U.S. Magistrate Judge Ann Marie Donio in Camden federal court via videoconference on Dec. 8, 2020, and was released on $50,000 bond. Weinstein appeared before U.S. Magistrate Judge Rebecca Rutherford in Dallas federal court on Dec. 9, 2020 and was released.
According to documents filed in this case and statements made in court:
From September 2015 through August 2018, the conspirators advertised business opportunities for sale on various websites. They purported to sell “blocks” of contracts with medical providers who allegedly wanted to outsource their medical billing, collections, appeals, answering, credentialing, or transcription functions. The buyers would then provide the contracted services to the medical providers and earn a profit. The conspirators promised to deliver a specified number of providers and pledged that their proprietary marketing efforts would provide a guaranteed client base to the buyers.
To induce buyers to purchase the business opportunities, the conspirators created fake references purporting to be buyers who vouched for their prior business purchases from the conspirators. In fact, the references were Reddy’s family member and Weinstein, using aliases to speak with potential buyers.
After agreeing to purchase the blocks of medical providers, victims entered contracts with companies represented by Weinstein or Reddy and wired down payments ranging from $15,000 to $255,000 to accounts controlled by Weinstein or Brown. The remainder of each purchase price was payable when the conspirators fulfilled the contract by delivering the agreed-upon number of providers.
After receiving the down payments, Weinstein and Reddy delivered to each victim only a small number of medical providers. Despite not fulfilling the contracts of any of the buyers identified by law enforcement, the conspirators continued to sell blocks of medical providers to new buyers and refused to provide refunds for their failures to satisfy the terms of the contracts. The conspirators also periodically sold batches of previously signed contracts and disclaimed further responsibility for those contracts to insulate themselves from complaints or legal action from disgruntled buyers.
Brown acted as the business broker for most of the transactions and received a commission for the sales he brokered. Weinstein or Reddy acted as the seller and signed the contracts with the victims.
At least 43 victims sent more than $3 million to accounts controlled by the conspirators. Law enforcement agents have tentatively identified an additional 21 victims who collectively paid an additional $1.1 million to the conspirators. The defendants spent the victims’ money on personal expenses and transferred money to other bank accounts controlled by them or their family members.
The count of conspiracy to commit 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.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia, with the investigation leading to the charges.
Additional victims of the offense may reach out to the FBI at 1-800-CALL-FBI (225-5324) or visit www.fbi.gov.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Diana V. Carrig of the U.S. Attorney’s Office in Camden.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Monmouth County Man Charged with Being Felon in Possession of WeaponRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man made his initial appearance today after being charged with illegally possessing a handgun, U.S. Attorney Craig Carpenito announced.
Lashawn Alford, 27, of Asbury Park, New Jersey, is charged by complaint with one count of possession of a firearm by a convicted felon. He appeared by videoconference before U.S. Magistrate Judge Douglas E. Arpert and was detained pending a bail hearing.
According to documents filed in this case and statements made in court:
On July 20, 2020, Monmouth County Prosecutor’s Office Detectives and Neptune City Police Officers responded to an apartment complex in Neptune City to conduct surveillance of suspected gang activity. Law enforcement officers observed Alford, a previously convicted felon, exit an apartment and get into the back of a car that drove out of the complex. Law enforcement knew Alford to be a member of the Queen Street II Bloods street gang and determined that Alford had an outstanding warrant for his arrest in Asbury Park. Law enforcement stopped the car and arrested Alford. A loaded Smith and Wesson, model M&P Compact, .22 caliber pistol was located on the floor of the car where Alford had been sitting.
The felon in possession of a firearm charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; officers of the Neptune City Police Department, under the direction of Police Director Matthew Quagliato; and detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni, with the investigation leading to today’s charges.
The government is represented by Special Assistant U.S. Attorney Christopher Matthews of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Sales Representative Admits Role in Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – A former sales representative today admitted his role in a scheme to defraud a New Jersey state health benefits program, U.S. Attorney Craig Carpenito announced.
Thomas Bowers, 46, of Little Falls, New Jersey, pleaded guilty by videoconference before U.S. District Judge William J. Martini to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounding is a practice in which a pharmacist or physician combines, mixes, or alters ingredients of a drug to create a medication tailored to the needs of an individual patient. The Food and Drug Administration does not approve compounded drugs and thus does not verify the safety, potency, effectiveness, or manufacturing quality of compounded drugs. Generally, a physician may prescribe compounded drugs when an FDA-approved drug does not meet the health needs of a particular patient.
Between December 2014 and March 2016, Bowers worked as a sales representative for a marketing company that marketed and sold compounded drugs to physicians, including pain, scar and wound creams and certain supplements and vitamins. Certain compounding pharmacies paid the marketing company based on a percentage of the reimbursement payments they received from health care benefit programs for each prescription that Bowers referred to the pharmacies. The marketing company, in turn, paid Bowers based on the compounded prescriptions he generated. Bowers recruited patients, including family members, who had prescription drug coverage under the New Jersey School Employee’s Health Benefits Program, to obtain medically unnecessary prescriptions for compounded drugs. Bowers paid patients that he recruited to obtain prescriptions from doctors even though the doctors did not have any interaction with the patients for purposes of determining that a prescription was medically necessary. He obtained medically unnecessary prescriptions from doctors who only conducted a cursory patient examination that was insufficient to legitimately deem that a compounded drug was medically necessary for the patient.
The count of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greater. As part of his plea agreement, Bowers must forfeit $157,747 in criminal proceeds and pay restitution of at least $593,678. Sentencing is scheduled for April 8, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Adam Baker of the United States Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.
Essex County Man Admits Possessing Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted possessing a handgun in furtherance of a drug trafficking crime, U.S. Attorney Craig Carpenito announced today.
Ricky Terrell, 24, of Newark, pleaded guilty by videoconference before U.S. District Court Judge John Michael Vazquez to an information charging him with one count of possession of a firearm in furtherance of a drug trafficking crime, specifically, the possession with intent to distribute heroin and cocaine.
According to documents filed in this case and statements made in court:
Stephen Crane Village is a public housing complex in Newark, on the border with Belleville. From February 2019 through February 2020, law enforcement officers investigated individuals who controlled an open-air drug market that operated within Stephen Crane Village.
Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that numerous individuals conspired to distribute and did actually distribute narcotics, including heroin, fentanyl, cocaine and cocaine base, in and around Stephen Crane Village.
On Feb. 25, 2020, law enforcement lawfully searched Terrell’s residence and recovered heroin and cocaine, a Smith & Wesson .40 caliber handgun, and numerous rounds of ammunition.
The possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum term of five years in prison, a maximum of life in prison, and a maximum fine of $250,000. Sentencing is scheduled for April 21, 2021.
U.S. Attorney Carpenito credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the Belleville Police Department, under the direction of Chief Mark Minichini; special agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s guilty plea. He also thanked the U.S. Marshals Service, the Nutley Police Department, the Bloomfield Police Department, the West Orange Police Department, the Verona Police Department, the Orange Police Department and the Bergen County Sheriff’s Office for their assistance with this case.
This investigation was part of the Newark Violent Crime Initiative (VCI), in which the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate crime in Newark and the surrounding cities. This case is also conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case is also a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office in Newark.
Doctor Admits Distributing Opioids to Patients and Soliciting Sexual Favors from Patients in Exchange for OpioidsRead the Press Release
TRENTON, N.J. – A New York doctor today admitted distributing opioids without a legitimate medical reason and soliciting sexual favors from patients in exchange for opioid prescriptions, U.S. Attorney Craig Carpenito announced.
Joseph Santiamo, 65, of Staten Island, New York, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with conspiracy to distribute oxycodone, a controlled dangerous substance.
“This defendant knowingly prescribed for his patients dangerous quantities of oxycodone, and even more egregiously, solicited sexual favors from certain patients who were struggling with substance abuse in exchange for writing them additional opioid prescriptions,” U.S. Attorney Carpenito said. “Many of these patients were dealing with pain and addiction, and instead of getting help from their doctor, they were drawn deeper into the cycle of drug abuse. His admission of guilt today ensures that he will be appropriately punished for this behavior.”
“This defendant not only violated his oath to help people, he took advantage of them when they were most vulnerable for his own selfish needs,” Susan A. Gibson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “The only difference between him and a person who deals drugs on the street is the white lab coat he wears. The men and women of the DEA are always committed to pursue those who choose to violate the law.”
According to documents filed in this case and statements made in court:
From Jan. 1, 2012, through May 3, 2018, Santiamo owned and operated a medical practice in Staten Island focused on internal medicine and geriatric care. He prescribed large quantities of oxycodone outside the ordinary course of professional practice and without a legitimate medical purpose. For a number of his patients, there was no medical necessity for Santiamo to treat them with oxycodone, nor to prescribe the large quantities that he did. In addition, Santiamo solicited sexual favors from certain of his younger patients in exchange for unlawful oxycodone prescriptions. These patients were all under the age of 40 at the time Santiamo provided them with prescriptions and thus would not typically be treated by a geriatric care physician like Santiamo. In some instances, Santiamo did this despite evidence that certain patients were abusing opioids.
The count of conspiracy to distribute oxycodone carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for April 12, 2021.
U.S. Attorney Carpenito credited special agents, diversion investigators and task force officers of the DEA, under the direction of Special Agent in Charge Gibson in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Adam Baker and Chief of the Opioids Unit Melissa Wangenheim in Newark.
Five New York Residents Charged with Scheme to Defraud BanksRead the Press Release
NEWARK, N.J. – Five people have been charged for their participation in a scheme to engage in bank fraud, U.S. Attorney Craig Carpenito announced today.
Jose Lopez Blanco, 22; Jesus Emilio Ruiz Ramirez, 21; Cori Mojica Caminero, 25; Marisol Gomez, 34; and Daury DeLeon, 24, all of the Bronx, New York, are each charged by superseding complaint with one count of bank fraud conspiracy. Blanco was additionally charged with one count of mail theft and one count of unlawful possession of a postal key.
Blanco and two other individuals were charged in December 2019 with one count of conspiracy to commit mail theft and one count of conspiracy to commit unlawful possession of a postal key. According to that complaint, Blanco had been observed by law enforcement officers using a U.S. Postal Service (USPS) arrow key (a special master key maintained by USPS employees) to gain unauthorized access to, and steal mail from, a USPS mail collection box in Newark. Blanco remains on pretrial release on those charges and will make his initial court appearance by video conference later this week.
Ruiz Ramirez, Caminero, and Gomez were arrested today and are scheduled to appear by videoconference before the U.S. Magistrate Judge Leda Dunn Wettre this afternoon. DeLeon remains at large.
According to documents filed in this case and statements made in court:
From October 2018 through December 2019, postal inspectors investigated a group of individuals for stealing checks and money orders from the mail; altering those financial instruments; depositing them into bank accounts; and withdrawing the proceeds before the victims discovered the fraud.
The investigation revealed that following various thefts from mail collections boxes, the defendants and others deposited various stolen and altered checks and money orders into accounts that they controlled, as well as accounts controlled by other conspirators. The defendants and conspirators withdrew the stolen proceeds shortly thereafter.
As a result, the defendants and conspirators deposited more than $250,000 worth of stolen financial instruments into certain bank accounts, some of which were opened solely for the purposes of receiving and depositing the stolen financial instruments. The defendants and their conspirators were captured on bank video surveillance footage, on at least 50 occasions engaging in fraudulent transactions in these accounts.
The count of mail theft carries a maximum sentence of five years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or loss to the victim, whichever is greater. The count of unlawful possession of a postal key carries a maximum sentence of 10 years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or loss to the victim, whichever is greater. The count of conspiracy to commit bank fraud carries a maximum sentence of 30 years in prison and a fine of $1 million.
U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; the Jersey City Police Department, under the direction of Public Safety Director James Shea; the New York City Department of Investigation - Office of the Inspector General, the New York City Housing Authority, under the direction of New York City Department of Investigation Commissioner Margaret Garnett; New York City Police Department, under the direction of Commissioner Dermot Shea; the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; and the Roselle Park, New Jersey Police Department, under the direction of Chief of Police Daniel J. McCaffery, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Jason P. Garelick and Assistant U.S. Attorney Cassye Cole of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations in the superseding complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Essex County Convicted Felon Charged with Drug Offenses and Possessing Three Firearms with Extended Magazines, Including Am-15 RifleRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was charged in connection with possessing several firearms, including an AM-15 rifle, as well as quantities of crack cocaine and heroin with the intent to distribute, U.S. Attorney Craig Carpenito announced today.
Cedric Lewis, 30, of Bloomfield, New Jersey, is charged by complaint with two counts of possession of a firearm by a convicted felon, two counts of possession with intent to distribute controlled substances and one count of possession of firearms in furtherance of a drug trafficking crime. He was arrested in Atlanta, Georgia, on Dec. 4, 2020, and was detained following an initial appearance in the U.S. District Court for the Northern District of Georgia.
According to documents filed in this case and statements made in court:
Law enforcement officials learned about Lewis’ involvement in an incident on Sept. 20, 2020, where Lewis was in a car in Elizabeth, New Jersey, while he possessed 118 jugs containing suspected crack cocaine, as well as an AM-15 rifle with a high-capacity magazine that contained thirty rounds of .300 caliber ammunition. On Sept. 25, 2020, law enforcement lawfully searched Lewis’ apartment and recovered the following: one 9 millimeter pistol with an extended magazine; one .40 caliber pistol with an extended magazine; drug paraphernalia and a scale; $800 in United States currency; one clear plastic bag containing a distribution quantity of suspected crack cocaine; several bundles of distribution quantities of suspected heroin; and 9 suspected Xanax pills.
The narcotics offenses each carry a maximum potential penalty of 20 years in prison, and a fine of $1 million. The counts of being a felon in possession of a firearm each carry a maximum potential penalty of 10 years in prison. The count of possession of firearms in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison – which must run consecutively to any other sentence imposed – and a maximum potential penalty of life in prison. Each firearm count carries a maximum fine of $250,000.
U.S. Attorney Carpenito credited members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; special agents of the ATF, Newark Field Division, under the direction of Special Agent in Charge Charlie J. Patterson; deputy marshals with the U.S. Marshals Service in the District of New Jersey, under the supervision of U.S. Marshal Juan Mattos Jr.; as well as deputy marshals with the U.S. Marshals Service in the Northern District of Georgia, under the supervision of U.S. Marshal Michael S. Yeager, with the investigation leading to the charges and arrest. He also thanked the Bloomfield Police Department for its assistance with this case.
This case is a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bergen County Man Charged with Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today on charges of possessing and distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Nicholas Corsale-Althawabta, 19, of Oakland, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He appeared by videoconference today before U.S. Magistrate Judge Leda Dunn Wettre and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
On Jan. 16, 2020, Corsale-Althawabta used an internet-based application to distribute multiple graphic videos depicting the sexual abuse of minors. Law enforcement officers discovered numerous videos of child sexual abuse on Corsale-Althawabta’s electronic devices when he was arrested at his home today.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison and a fine of $250,000. The charge of possession of child pornography carries a maximum penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Carpenito credited special agents with the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Alexandra Tsakopoulos of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants is presumed innocent unless and until proven guilty.
New Jersey Attorney Sentenced to 18 Years in Prison for Money Laundering as Part of Embezzlement SchemeRead the Press Release
CAMDEN, N.J. – A New Jersey attorney was sentenced today to 216 months in prison for money laundering as part of a multi-year scheme to embezzle money from his clients, U.S. Attorney Craig Carpenito announced.
Michael W. Kwasnik, 51, previously pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with money laundering. Judge Kugler imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
Kwasnik was an attorney licensed in New Jersey and Pennsylvania who specialized in providing estate and financial planning services to his clients. He used his position as an attorney in estate planning to convince clients to open irrevocable family trusts to hold the client’s money and provide the client an opportunity to earn interest on their funds. Kwasnik advised potential clients that estate planning was necessary to protect assets from federal and state taxes. As part of the estate planning, Kwasnik established various trusts, typically irrevocable family trusts for clients with Kwasnik named as the trustee. For each trust, an Employer Identification Number (EIN) was obtained and a bank account in the name of the trust was opened at TD Bank. As trustee, Kwasnik had signature authority on the bank accounts.
The underlying scheme ran from late 2008 to November 2011. Kwasnik advised clients to transfer money and assets into the trusts for financial protection. In some cases, Kwasnik advised clients that he would remain as the trustee until the estates were settled, at which time the assets would be turned over to the appropriate beneficiaries.
Dozens of his clients turned over approximately $13.2 million to Kwasnik for safeguarding of their beneficiaries’ trusts. After the clients transferred funds into the trust bank accounts under Kwasnik’s control, Kwasnik immediately began transferring the money out of the trust accounts and into the bank accounts of entities that he controlled until the money was entirely depleted from the trust accounts, usually in just a matter of days. Kwasnik then used that money to conduct thousands of intermingled financial transactions and pay personal expenses for himself and others and for the operations of the entities he controlled.
In addition to the prison term, Judge Kugler sentenced Kwasnik to three years of supervised release and ordered him to pay $11.7 million in restitution.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Michael J. Driscoll, Philadelphia Division, and special agents of IRS- Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s sentencing. He also thanked Assistant U.S. Attorney Sarah Wolfe of the Eastern District of Pennsylvania for her assistance.
The government is represented by Assistant U.S. Attorney Norman Gross and Senior Trial Counsel Jason Richardson of the Camden office.
Federal Appeals Court Upholds Conviction of Former Ocean County Law Firm Partner on Tax and Loan FraudRead the Press Release
NEWARK, N.J. – A federal appeals court today upheld the conviction of George Gilmore, a former partner in an Ocean County, New Jersey, law firm, on charges of failing to pay over payroll taxes to the IRS and making false statements in a loan application, Attorney for the United States Rachael A. Honig announced.
Gilmore, 71, of Toms River, New Jersey, a former equity partner and shareholder at Gilmore & Monahan P.A., was convicted in April 2019 on two counts of failing to pay over payroll taxes withheld from employees to the IRS and one count of making false statements on a bank loan application submitted to Ocean First Bank N.A. He was sentenced Jan. 22, 2020, to one year and one day in prison.
In the non-precedential ruling written by Judge Thomas Hardiman for a three-judge panel of the U.S. Court of Appeals for the Third Circuit, the court rejected four separate claims raised by Gilmore. It agreed with the government that the trial judge properly excluded expert psychiatric testimony supporting Gilmore’s claim that a “hoarding” disorder made him spend lavishly on personal expenses rather than make timely payments to the IRS. Gilmore contended that testimony would have negated his intent to commit the charged tax crimes. The court also rejected Gilmore's challenges to the jury instructions and sufficiency of evidence.
The government was represented on appeal by Assistant U.S. Attorney Bruce P. Keller of the U.S. Attorney’s Office’s Special Prosecutions Division and Steven G. Sanders of the Appeals Division. The government was represented at trial by Deputy U.S. Attorney Matthew J. Skahill; Assistant U.S. Attorney Jihee G. Suh of the Special Prosecutions Division; and Trial Attorney Thomas F. Koelbl of the U.S. Department of Justice, Tax Division.
Bronx Man Charged with Scheme to Steal Checks and Defraud BanksRead the Press Release
NEWARK, N.J.– A Bronx, New York, man was charged for his participation in a scheme to steal and alter checks from the mail and engage in bank fraud, U.S. Attorney Craig Carpenito announced today.
Claude Anthony Burnett, 23, is charged by complaint with one count of bank fraud conspiracy and one count of conspiracy to receive and possess stolen mail. He is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Michael A. Hammer.
According to documents filed in this case and statements made in court:
From at least February 2020 to November 2020, Burnett and others conspired to steal checks from mailboxes in and around Morris, Essex, Somerset, and Passaic counties, alter the stolen checks, and deposit the altered checks into bank accounts controlled by Burnett and his conspirators. To date, the investigation has identified over 140 checks with a face value of over $600,000 that have been stolen, altered, and deposited in accounts controlled by Burnett and his conspirators.
The count of bank fraud conspiracy carries a maximum sentence of 30 years in prison and a fine of $1 million; the count of conspiracy to receive and possess stolen mail carries a maximum sentence of five years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or loss to the victim, whichever is greater.
U.S. Attorney Carpenito credited special agents of the U.S. Postal Inspection Service Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Vijay Dewan of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Salem County Man Admits Illegal Possession of WeaponRead the Press Release
CAMDEN, N.J. – A Salem County, New Jersey, man today admitted to illegally possessing a handgun, U.S. Attorney Craig Carpenito announced.
Rahim Seals, 27, of Salem City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Noel L. Hillman to an indictment charging him with one count of possession of a firearm by a previously convicted felon.
According to documents filed in this case and statements made in court:
On Dec. 27, 2019, while Seals was walking in Salem City, detectives from the Salem County Prosecutor’s Office attempted to arrest Seals on an outstanding warrant. Seals fled and dropped a Sig Sauer P238 .380 caliber handgun loaded with seven hollow point rounds of ammunition. Seals has at least three prior felony convictions, including a controlled substance offense and two resisting arrest offenses.
The charge of possession of a weapon by a convicted felon is punishable by a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 8, 2021.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian .
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, Camden Field Office, with the investigation leading to today’s guilty plea. He also thanked the Salem City Police Department, under the direction of Chief John A. Pelura, III, and the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan, for their assistance.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Previously Convicted Felon Charged with Illegal Possession of Handgun and Possession with Intent to Distribute FentanylRead the Press Release
CAMDEN, N.J. – A previously convicted felon will make his initial court appearance today on charges of illegal possession of a handgun and possession with intent to distribute fentanyl, U.S. Attorney Craig Carpenito announced.
Desmund M. Walker, 35, of Camden, is charged by complaint with one count of illegal possession of a handgun and one count of possession with intent to distribute fentanyl. He appeared by videoconference before U.S. Magistrate Judge Karen M. Williams and was detained without bail.
According to documents filed in this case and statements made in court:
On May 16, 2020, patrol officers from the Camden County Police Department – Metro Division encountered Walker in the vicinity of South 8th and Thurman streets in Camden. Walker fled from the officers, discarding a fully loaded Rohm, model RG10, .22 caliber revolver and cellular telephone as he scaled a fence and fled through Robert B. Johnson Park. Walker is a convicted felon and not permitted to possess a handgun under federal law. Walker was apprehended and found to be in possession of 0.19 grams of fentanyl wrapped in 93 white wax folds.
The maximum penalty for illegal possession of the firearm is 10 years in prison and a fine of up to $250,000. The maximum penalty for possession of fentanyl with intent to distribute is 20 years in prison and a $1 million fine.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to today’s charges. U.S. Attorney Carpenito also thanked the Camden County Police Department, under the direction of Chief Joseph D. Wysocki, for their assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Monmouth County Man Admits Unlawfully Possessing MachinegunRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted being a felon in possession of a firearm and unlawfully possessing a machinegun, U.S. Attorney Craig Carpenito announced.
Davon Harley, 30, of Neptune City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to an indictment charging him with one count of being a felon in possession of a firearm and one count of unlawful possession of a machinegun.
According to documents filed today and statements made in court:
In February 2020, a Neptune City Police officer confronted Harley, a previously convicted felon, who was arguing with others in the yard of an apartment complex. Harley fled through the apartment complex into neighboring properties and discarded a handgun that, upon inspection, had been altered to fire exclusively in fully automatic mode. The weapon had a magazine capable of holding 31 rounds of ammunition. Law enforcement officers, assisted by the Neptune Township and Asbury Park police departments, located Harley and the machinegun and magazine that Harley had discarded. The magazine contained 22 rounds of ammunition.
The felon in possession of a firearm and possession of a machinegun charges each carry a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 12, 2021.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Neptune City Police Department, under the direction of Police Director Matthew Quagliato; officers of the Neptune Township Police Department, under the direction of Chief of Police James M. Hunt, Jr.; officers of the Asbury Park Police Department, under the direction of Chief of Police David Kelso; officers of the Monmouth County Sheriff’s Office, under the direction of Sheriff Shaun Golden; and detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Christopher Matthews of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Mercer County Man Sentenced to 10 Years in Prison for Being Felon in Possession of FirearmRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 120 months in prison for being a felon in possession of a firearm, U.S. Attorney Craig Carpenito announced.
Rasheed McNair, 41, of Ewing, New Jersey, was previously convicted of being a felon in possession of a weapon following a two-day trial before U.S. District Judge Peter G. Sheridan in Trenton federal court. Judge Sheridan imposed the sentence by videoconference today.
According to documents filed in this case and the evidence at trial:
On Feb. 18, 2018, two Trenton Police detectives in the Street Crimes Unit were driving through the area of Oakland Street and Hoffman Avenue in Trenton when one of them observed McNair standing in an open doorway in a public housing complex and holding what was later identified as a Smith & Wesson .40 caliber semiautomatic handgun.
McNair tucked the handgun into his jacket and ran up the stairwell of the building. After giving chase, one of the detectives observed McNair remove the handgun from inside his jacket and attempt to hide it under a doormat in front of an apartment. The other detective retrieved the firearm from under the doormat and rendered it safe. The weapon was later found to be loaded with 11 rounds of ammunition in the magazine and one round in the chamber, and its serial number had been obliterated.
In addition to the prison term, Judge Sheridan sentenced McNair to three years of supervised release.
U.S. Attorney Carpenito credited the Trenton Police Department, under the direction of Police Director Sheilah A. Coley; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Elisa T. Wiygul and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Convicted Felon Sentenced to Additional Eight Months in Prison for Escape from Halfway HouseRead the Press Release
CAMDEN, N.J. – A convicted felon was sentenced today to an additional eight months in prison for escaping from a halfway house, U.S. Attorney Craig Carpenito announced.
Gary Mitchell, 60, of Philadelphia, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of escape. Judge Hillman imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On May 20, 2008, Mitchell was sentenced to 151 months in prison following his conviction for bank robbery in the District of New Jersey. On Feb. 5, 2018, Mitchell was transferred to the custody of Kintock Residential Re-entry Center, a halfway house in Bridgeton, New Jersey. On May 24, 2018, after failing to return after being issued a medical pass, Mitchell was charged with escape.
Mitchell was sentenced to today to serve an additional term of eight months in prison for the escape conviction, which will run consecutively to his original sentence for the bank robbery. As a result of his escape, he has lost an additional 425 days of good time credit, which he must now serve.
U.S. Attorney Carpenito credited special agents of the U.S. Marshals Service, under the direction of Marshal Juan Mattos, with the investigation leading to today’s sentencing.
The government is represented by U.S. Attorney Andrew Carey, Attorney in Charge of the Camden Office.
Bergen County Man Admits Role in Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted his role in a scheme to defraud financial institutions of hundreds of thousands of dollars, U.S. Attorney Craig Carpenito announced.
Dennys A. Tapia, 54, of Ridgefield Park, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From 2015 to 2018, Tapia conspired with others to fraudulently obtain mortgage loans from financial institutions, including “Mortgage Lender A” and “Mortgage Lender B,” to finance the purchase of properties by unqualified buyers. Applicants for mortgage loans are required to list their assets and income on their mortgage loan applications, and mortgage lenders rely on those applications when deciding whether to issue mortgage loans.
Tapia admitted to participating in a conspiracy in which he knowingly provided fraudulent documents to a loan officer at Mortgage Lender A for potential borrowers, including fraudulent lease agreements, bank statements, and a gift check and gift letter. Based on this false information, Mortgage Lender A issued mortgage loans to unqualified buyers, which caused Mortgage Lender A hundreds of thousands of dollars in losses. Tapia also admitted to conspiring with a straw borrower, “Individual A,” to submit an application to Mortgage Lender B for a cash-out refinance mortgage loan that contained multiple misrepresentations of material facts and fraudulent documents, including pay stubs and a verification of employment. Based on the false information submitted by Individual A and Tapia, Mortgage Lender B issued a false and fraudulent cash-out refinance mortgage loan, which resulted in Tapia earnings tens of thousands of dollars in profits.
The conspiracy charge to which Tapia pleaded guilty carries a maximum of 30 years in prison and a $1 million fine. Sentencing is scheduled for April 20, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the Economic Crimes Unit of the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Charlie Divine of the Federal Housing Finance Agency, Office of Inspector General.
Previously Convicted Felon Involved in Shooting Admits Illegal Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man previously convicted of three felonies admitted today to illegally possessing a firearm and ammunition in connection with a shooting, U.S. Attorney Craig Carpenito announced.
Jamel Armfield, 20, of Jersey City, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On June 24, 2020, Armfield knowingly possessed a .45 caliber Springfield Armory semi-automatic handgun, Model XD-45 ACP, and 14 rounds of .45 caliber ammunition, when he fired nine rounds from that handgun at a vehicle traveling on Gates Avenue in Jersey City. The motive and intended target(s) remain unknown. The shooting was captured on a nearby surveillance camera. The firearm was then hidden by Armfield and recovered by members of the Jersey City Police Department. It contained five additional rounds of ammunition. At that time, Armfield had previously been convicted in the Superior Court of New Jersey, Hudson County, of possession of a controlled dangerous substance, possession with intent to distribute controlled dangerous substances on or near school property, and resisting arrest, all of which are felonies.
The charge to which Armfield pleaded guilty carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 6, 2021.
This case is 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 Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (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.
U.S. Attorney Carpenito credited special agents and task force officers of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s guilty plea. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for its assistance with the investigation.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Rahul Sharma Esq., Assistant Federal Public Defender, Newark
Mercer County Man Charged with Possessing A Large Quantity of Heroin with Intent to DistributeRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man is expected to make his initial appearance today after being charged with possession with the intent to distribute 100 grams or more of heroin, U.S. Attorney Craig Carpenito announced.
Daevon Bell, 26, of Hamilton Township, New Jersey, is charged by complaint with one count of possession with intent to distribute 100 grams or more of heroin. He was arrested by special agents of the U.S. Drug Enforcement Administration on Dec. 1, 2020, and is scheduled to appear this afternoon before U.S. Magistrate Judge Douglas E. Arpert.
According to documents filed in this case and statements made in court:
A law enforcement investigation revealed that Bell was engaged in the distribution of heroin in Trenton and the surrounding area. Based on information received from a reliable source, law enforcement officials determined that Bell was in possession of a large quantity of heroin on Dec. 1, 2020. Law enforcement officials followed Bell in his vehicle from Trenton to Morrisville, Pennsylvania. Bell drove to an apartment complex, retrieved a bag from the trunk of his vehicle and entered an apartment. Shortly thereafter, Bell exited the apartment holding a bag and returned to his vehicle. Law enforcement agents approached Bell, who then attempted to flee in his vehicle, striking a DEA agent and striking another occupied law enforcement vehicle. Bell discarded the bag from the vehicle, and then led law enforcement on a high-speed chase into New Jersey, and was apprehended in Lawrenceville, New Jersey. Law enforcement recovered approximately 150 bricks of suspected heroin from the bag that Bell had discarded from the vehicle.
The charge of possession with intent to distribute 100 grams or more of heroin carries a minimum sentence of five years and a maximum of 40 years in prison, and a $5 million fine.
U.S. Attorney Carpenito credited special agents of the DEA under the direction of Special Agent in Charge Susan A. Gibson.in Newark, and the Philadelphia Division under the direction of Special Agent in Charge Jonathan A. Wilson, with the investigation leading to today’s charges. He also thanked the Buck’s County District Attorney’s Office, under the direction of District Attorney Matthew D. Weintraub and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, for their assistance.The case was investigated as part of the Violent Crime Initiative (VCI) in Mercer County, New Jersey. The VCI was formed in August 2020 by the U.S. Attorney’s Office for the District of New Jersey and the Mercer County Prosecutor’s Office, and the Trenton Police Department for the purpose of combatting violent crime in and around Trenton. As part of this partnership, federal, state, and local 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 Trenton Police Department, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J.
The government is represented by Assistant U.S. Attorney Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, Trenton
Two New Jersey Men Charged with Theft of $6 Million in Postage for Online E-Commerce BusinessRead the Press Release
NEWARK, N.J. – Two New Jersey men were charged with theft of government property and fraudulently altering United States Postal Service (USPS) postage stamps, U.S. Attorney Craig Carpenito announced today.
Jack Koch a/k/a/ “Ismail Yilmaz,”44, of Elmwood Park, New Jersey, and Steven Koch, a/k/a “Selim Memis,” 43, of Pompton Lakes, New Jersey, are each charged by complaint with one count of theft of government funds and one count of postage stamp fraud. Both defendants are scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Michael A. Hammer.
According to the documents filed in this case and statements made in court:
Jack Koch and Stephen Koch, owners of a high volume e-commerce Amazon seller, Fresh N Clear LLC (Fresh N Clear), altered postage labels in a manner designed to benefit their business, causing losses in revenue to USPS in excess of $6 million.
The defendants purchased Flat Rate Envelope postage labels meant for USPS-produced compact envelopes, and altered those labels to send their merchandise in larger boxes at discounted flat rates. The Kochs were able to perpetrate the fraud by removing the required USPS visual endorsement “FLAT RATE ENV” from the postage label. Unlike other mail pieces, whose labels need not show the postage paid in a readable format, USPS policy requires the visual endorsement “FLAT RATE ENV” to appear on all mail pieces sent using the “Flat Rate Envelope” discounted rate, allowing USPS employees to determine whether the appropriate postage was, in fact, paid, and that each mail piece sent using that discounted rate does, in fact, weigh 70 pounds or less and fit into the special USPS compact envelope.
Between January 2020 and September 2020, the Kochs caused Fresh N Clear to purchase 240,471 USPS Priority Mail postage labels – almost all for Flat Rate Envelopes. They altered the postage labels in order to send large household items that would not ordinarily fit into a Flat Rate Envelope (such as cases of bottled water, laundry detergent, and cases of soda) at the discounted flat rate.
Theft of government property carries a maximum penalty of 10 years; postage stamp fraud carries a maximum of five years. Both offenses also carry a maximum fine $250,000, or twice the gain derived from the offense or loss caused by the offense, whichever is greater.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Fraud Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Florida Attorney Admits Role in $7.5 Million Bank Extortion SchemeRead the Press Release
NEWARK, N.J. – A Florida attorney today admitted his role in a scheme to extort $7.5 million from a California bank, Attorney for the United States Rachael A. Honig announced.
Richard L. Williams, 73, of Miami, Florida, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with conspiracy to transmit an interstate communication with the intent to extort.
According to documents filed in this case and statements made in court:
Beginning in May 2020, Williams and his client (Client-1) conspired to extort $7.5 million from a commercial bank headquartered in California (Bank-1). Williams threatened Bank-1 that if it did not pay Client-1 $7.5 million, Client-1 would publicly disclose that Client-1 had accessed and obtained certain confidential data from the bank that did not belong to Client-1 and that Client-1 was not authorized to retain.
On June 18, 2020, Williams sent an email to an attorney for Bank-1 that attached a proposed agreement that Bank-1 had not requested. The agreement – titled “Settlement, Assistance, and Confidentiality Agreement” – provided for Bank-1 to pay Client-1 approximately $7.5 million as a “settlement, assistance and confidentiality fee” within 48 hours of signing the agreement. The payment was purportedly in exchange for Client-1 serving for one week as an “advisor” to Bank-1, a service that Bank-1 had not requested, and agreeing not to publicize confidential Bank-1 data that Client-1 had accessed and obtained. The agreement was designed to conceal that Williams and Client-1 were extorting Bank-1.
From July through August 2020, Williams also engaged in a series of telephone conversations with an undercover law enforcement agent (UC-1) who Williams believed was a representative of Bank-1 located in New Jersey, with authority to transfer funds to Williams. During a telephone call with UC-1 on July 24, 2020, Williams warned UC-1 that if Bank-1 did not pay Client-1 it should “fear” that Client-1 might reveal to various third parties that Client-1 had accessed and obtained the confidential data from Bank-1 or issue a press release disclosing that information. Williams also implied that if Bank-1 refused to accede to his demands and pay Client-1, there may be violent consequences from third parties unrelated to Williams. Williams warned UC-1 that “FBI agents were murdered a couple of blocks from where [he was] sitting,” and that if Williams were in Bank-1’s position, “what would scare the [expletive] out of [him] would be” the reaction of those third parties to the public revelation of Client-1’s access and retention of the data.
The charge to which Williams pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross grain or loss from the offense, whichever is greater. Williams’s sentencing is scheduled for April 6, 2021.
Attorney for the United States Honig credited the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott Lampert; Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri; and special agents of the U.S. Attorney’s Office for the District of New Jersey with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean M. Sherman and Bernard J. Cooney, Acting Chief of the Opioid Abuse Prevention & Enforcement, of the U.S. Attorney’s Office in Newark.
Daughter of Former Union Officer Admits EmbezzlementRead the Press Release
NEWARK, N.J. – The daughter of a former secretary treasurer of a union at Jersey City Medical Center today admitted her role in helping her mother embezzle $40,455 from the union, U.S. Attorney Craig Carpenito announced.
Jennifer Rogers, 38, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to Count One of an indictment charging her with embezzling from Local 2254 of the American Federal State County and Municipal Amalgamated Transit Workers Union (AFSCME) in Hudson County.
According to documents filed in this case and statements made in court:
Linda Rogers was employed at the Jersey City Medical Center and also held a part-time position at Local 2254 as its secretary treasurer. In that role, she had sole control over the union’s checkbook and savings account. From July 2016 through August 2017, Jennifer Rogers, also an employee at the hospital at that time, deposited 112 unauthorized checks totaling $35,267 from Local 2254’s account to joint checking and savings accounts she owned with her mother. From October 2016 through December 2016, Linda Rogers allegedly made six telephonic wire transfers from the Local 2254’s savings account, totaling $5,188, into her personal credit card account. None of the expenditures were authorized or for legitimate union purposes.
The count of embezzlement from a labor union carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for April 20, 2021.
U.S. Attorney Carpenito credited the investigators of the U.S. Department of Labor, Office of Labor Management Standards, under the direction of Adriana Vamvakas, Regional Director; and special agents of the Department of Labor (OIG), New York Region, under the direction of Special Agent in Charge Michael Mikulka, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
The pending charges against Linda Rogers are merely accusations, and she is presumed innocent unless and until proven guilty.
Essex County Woman Charged with Wire Fraud ConspiracyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman was charged with defrauding elderly victims through a lottery scam in which victims were falsely told that they had won large sums of money, U.S. Attorney Craig Carpenito announced today.
Shanile Lyle, 27, of Orange, New Jersey, was arrested today and charged by complaint with one count of conspiracy to commit wire fraud. She appeared by videoconference before U.S. Magistrate Judge Michael A. Hammer and was released on $200,000 unsecured bond.
According to documents filed in this case and statements made in court:
In 2018, several elderly victims received telephone calls alerting them that they had won large sums of money and various other prizes. The victims were informed that they would have to pay taxes on these winnings and, as a result, sent numerous checks totaling at least $675,000 to Lyle and her conspirators. Lyle deposited these funds into back accounts she controlled and transferred portions of the money to her conspirators.
The count of conspiracy to commit wire fraud carries a maximum of penalty of 20 years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or twice the gross loss involved, whichever is greater.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Cybercrimes Unit in Newark.
Elder abuse is a serious crime against some of our nation’s most vulnerable citizens and is one of the Department of Justice’s key priorities. In 2018, the Department ordered each of the 94 U.S. Attorneys’ offices to appoint an Elder Justice Coordinator tasked with fulfilling the Elder Abuse Prevention and Prosecution Act (EAPPA) of 2017’s mandate of: serving as the legal counsel for the federal judicial district on matters relating to elder abuse; prosecuting, or assisting in the prosecution of, elder abuse cases; conducting public outreach and awareness activities relating to elder abuse; and ensuring the collection of data required to be collected under the EAPPA.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Essex County Man Sentenced to 12 Years in Prison for Participation in Heroin ConspiracyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 144 months in prison for his role as a member of a heroin trafficking conspiracy, U.S. Attorney Craig Carpenito announced.
Raheem Tarry, 34, of Newark, previously pleaded guilty by video conference before U.S. District Judge Susan D. Wigenton to two counts of a third superseding indictment charging him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and distribution of heroin and possession of heroin with intent to distribute. Judge Wigenton imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Tarry and others were members of a drug trafficking organization that dealt heroin and crack cocaine in and around Newark, specifically, at Hayes Street and 14th Avenue in the area of the New Community Corporation housing development (NCC). The organization is comprised of members of the Brick City Brim set of the Bloods street gang.
The investigation revealed that in addition to selling narcotics, members of the organization alerted each other to police and rival gang member or drug dealer presence within NCC; shared narcotics supply, narcotics proceeds, and customers; and raised bail money for each other following arrests. Members of the organization have also engaged in violence and been the subject of violence in connection with their narcotics trafficking activities.
Between March and August 2018, Tarry and 27 other individuals were charged by criminal complaint with conspiracy to distribute heroin and cocaine base; one individual also was charged with firearms offenses relating to his drug trafficking. On Aug. 20, 2019, a grand jury returned a 22-count third superseding indictment charging Tarry and four other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearms offenses; the alleged leader of the organization also was charged with participating in a continuing criminal enterprise. The charges in the complaint and third superseding indictment remain pending as to several of the defendants and one is charged in a separate indictment. They are presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Wigenton sentenced Tarry to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to today’s sentencing. He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, the New Jersey State Parole Commission, and the U.S. Marshals Service for their assistance.
The case was investigated as part of the Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Christopher D. Amore of the U.S. Attorney’s Office in Newark.
Sussex County Woman Charged with Concealing Terrorist Financing to Syrian Al-Nusra Front, a Foreign Terrorist OrganizationRead the Press Release
A Sussex County, New Jersey, woman, Maria Bell, a/k/a “Maria Sue Bell,” 53, of Hopatcong, New Jersey, was arrested at her home today and charged with one count of knowingly concealing the provision of material support and resources to a Foreign Terrorist Organization Assistant Attorney General for National Security John C. Demers and U.S. Attorney Craig Carpenito for the District of New Jersey announced.
She is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor.
According to documents filed in Court, beginning at least as early as March of 2017, Bell used mobile applications to communicate with and provide advice to fighters based in Syria who were members of various factions fighting the Assad regime. The complaint is centered on her communications with, and provision of money to, one specific fighter based in Syria, a self-identified member of Hay’at Tahrir al-Sham (HTS), an alias for the the designated Foreign Terrorist Organization the al-Nusra Front (ANF). Notably, Bell sent currency to this fighter via Western Union using an intermediary to conceal the source of the funds, and also provided him advice on weapons and ammunition.
The charge of concealment of terrorist financing to a designated foreign terrorist organization carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant Attorney General Demers and U.S. Attorney Carpenito credited special agents of FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit with the assistance of the Department of Justice, National Security Division Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Sussex County Woman Charged with Concealing Terrorist Financing to Syrian Al-Nusra Front, a Foreign Terrorist OrganizationRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, woman, was arrested at her home today in connection with concealing sending money to a Syrian foreign terrorist organization, U.S. Attorney Craig Carpenito announced.
Maria Bell, a/k/a “Maria Sue Bell,” 53, of Hopatcong, New Jersey, is charged by complaint with one count of knowingly concealing the provision of material support or resources to a designated foreign terrorist organization. She is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor.
According to documents filed in this case and statements made in court:
From February of 2017, Bell used encrypted applications to communicate with and provide advice to fighters based in Syria who were members of the al-Nusra Front (ANF), also known by other aliases, including Hay’at Tahrir al-Sham (HTS), fighting the Assad regime. Bell communicated with and provided money to one self-identified member of HTS based in Syria, identified in the complaint as “User 1.” Bell sent currency to User 1 via Western Union, using an intermediary to conceal the source of the funds, and also provided him advice on weapons and ammunition.
In communications with HTS fighters, Bell cited her professional experience – including her specialized weapons training while on active duty in the U.S. Army and Army National Guard – to provide guidance concerning operational security issues, firearms purchases, and military knowledge. She had thousands of encrypted communications with User 1 about operational planning and provided details with regard to concealing payments sent to User 1.
User 1 made his status as an HTS fighter clear. In one communication, Bell and User 1 discussed User 1’s pledge to HTS and the ongoing Syrian conflict. Bell stated: “If Assad wins, mujahideen will be persecuted again,” and “If Assad wins, I cannot get a visa into Syria. I cannot come to you.” In the same communication, the defendant later asked User 1 if he was ready to fight:
Bell: Are you ready to fight in front line with other fighters? You are no longer young child like you used to be.
Bell: It will be frightening. But I am with you
In another communication, User 1, after discussing U.S. support for the Syrian regime, which HTS and other groups were fighting at the time, stated: “If you want to hit the Syrian airports, we will return to revenge within New York.” Later in the encrypted communication, Bell states “If there were ever an attack in New York, all Muslims and helpers like me will be arrested….”
Bell provided advice to User 1 regarding the purchase of a firearm and ammunition for User 1. They discussed the cost and type of weapons that would be good for User 1, in addition to various types of ammunition.
Bell also wired money, often at the direction of User 1, to individuals in Turkey and Syria who are supporters of HTS, knowing that the funds would support acts of terrorism by HTS. The defendant concealed the nature, location, and ownership of payments, sending at least 18 payments totaling $3,150 to several accounts used by User-1’s associates. In one communication, she expressed concern that her transfers could be tracked by U.S. law enforcement:
Bell: But I will not have my account watched more closely than it is already.
Bell: Each time I withdraw money, it is noted because Western Union is trying to track fraud and terrorists for the government.
The charge of concealment of terrorist financing to a designated foreign terrorist organization carries a maximum penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Carpenito credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge George M. Crouch Jr., and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit and Trial Attorney Brenda Sue Thornton of the Department of Justice, National Security Division.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Opioid Manufacturer Purdue Pharma Admits Guilt in Fraud and Kickback ConspiraciesRead the Press Release
NEWARK, N.J. – Opioid manufacturer Purdue Pharma LP (Purdue) today admitted its guilt in conspiracies to defraud the United States, violate the Food, Drug, and Cosmetic Act, and violate the Federal Anti-Kickback Statute, the Department of Justice announced.
Purdue pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute.
“Purdue admitted that it marketed and sold its dangerous opioid products to healthcare providers, even though it had reason to believe those providers were diverting them to abusers,” Attorney for the United States Rachael A. Honig, District of New Jersey, said. “The company lied to the Drug Enforcement Administration about steps it had taken to prevent such diversion, fraudulently increasing the amount of its products it was permitted to sell. Purdue also paid kickbacks to providers to encourage them to prescribe even more of its products.”
“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen. “Today’s guilty pleas to three felony charges send a strong message to the pharmaceutical industry that illegal behavior will have serious consequences. Further, today’s convictions underscore the Department’s commitment to its multi-pronged strategy for defeating the opioid crisis.”
“As today's plea to felony charges shows, Purdue put opioid profits ahead of people and corrupted the sacred doctor-patient relationship,” Christina Nolan, U.S Attorney for the District of Vermont, said. “We hope the company's guilty plea sends a message that the Justice Department will not allow big pharma and big tech to engage in illegal profit-generating schemes that interfere with sound medicine. We hope, also, that this guilty plea will bring some sense of justice to those who have suffered from opioid addictions involving oxycodone and some vindication for families and loved ones of those who did not survive such addiction."
“This case makes clear that no company, including Purdue Pharma, whose actions harm the health and safety of the American public, is beyond the reach of law enforcement,” Assistant Director Calvin Shivers of the FBI's Criminal Investigative Division said. “The opioid epidemic continues to spread across the United States impacting countless Americans and harming communities. Together with our law enforcement partners, the FBI is committed to investigating and holding criminals accountable for the roles they play in fueling this crisis.”
As part of today’s guilty plea, Purdue admitted that from May 2007 through at least March 2017, it conspired to defraud the United States by impeding the lawful function of the Drug Enforcement Administration (DEA). Purdue represented to the DEA that it maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids. Purdue also reported misleading information to the DEA to boost Purdue’s manufacturing quotas. The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion. The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions.
Purdue also admitted it conspired to violate the federal Anti-Kickback Statute. Between June 2009 and March 2017, Purdue made payments to two doctors through Purdue’s doctor speaker program to induce those doctors to write more prescriptions of Purdue’s opioid products. Also, from April 2016 through December 2016, Purdue made payments to Practice Fusion Inc., an electronic health records company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla.
Under terms of the plea agreement, Purdue agreed to the imposition of the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million within three business days following the entry of a judgment of conviction in accordance with the Plea Agreement. The Department is willing to credit the value conferred by the company to state and local governments under the Department’s anti-piling on and coordination policy if certain conditions are met.
Purdue has also agreed to a civil settlement that provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion to resolve its civil liability under the False Claims Act. Separately, the Sackler family will pay $225 million in damages to resolve its civil False Claims Act liability.
The criminal and civil resolutions, which were announced on Oct. 21, 2020, do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.
On Nov. 17, 2020, the bankruptcy court in the Southern District of New York approved the financial terms of the global resolution with the company. The resolution includes the condition that the company cease to operate in its current form and instead emerge from bankruptcy as a public benefit company (PBC) or entity with a similar mission designed for the benefit of the public. The proceeds of the PBC will be directed toward state and local opioid abatement programs. Based on the value that would be conferred to state and local governments through the PBC, the Department is willing to credit up to $1.775 billion against the agreed $2 billion forfeiture amount. The Department looks forward to working with the creditor groups in the bankruptcy in charting the path forward for this PBC to best accomplish public health goals.
The global resolution does not resolve claims that states may have against Purdue or members of the Sackler family, nor does it impede the debtors’ or other third parties’ ability to recover any fraudulent transfers.
Today’s announcement was made by First Assistant U.S. Attorney for the District of New Jersey Honig; Deputy Attorney General Rosen; Acting Assistant Attorney General of the Civil Division Clark; and U.S. Attorney for the District of Vermont Nolan. The criminal investigation was conducted by the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, the Consumer Protection Branch of the Department of Justice’s Civil Division, and the FBI’s Washington, D.C., and Newark Field Offices, with assistance by DEA. The civil settlements were handled by the Fraud Section of the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, with assistance from the Department of Health and Human Services, Office of General Counsel and Office of Counsel to the Inspector General; the Defense Health Agency; and the Office of Personnel Management. The Purdue bankruptcy matter is being handled by the U.S. Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section.
The government is represented in the District of New Jersey by Deputy Chief of the Criminal Division Nicholas Grippo, Chief of the Opioids Unit Melissa Wangenheim, Chief of the Health Care Fraud Unit Lee M. Cortes Jr., and Assistant U.S. Attorneys J. Stephen Ferketic, Sean Sherman, Marihug P. Cedeño and Nicole Mastropieri.
Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.
Passaic County Man Sentenced to 70 Months in Prison for Participation in Heroin ConspiracyRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man was sentenced today to 70 months in prison for conspiring to distribute 100 grams or more of heroin, and distributing a quantity of heroin, U.S. Attorney Craig Carpenito announced.
Tyson Jacobs, 21, previously pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and knowingly and intentionally distributing heroin. Judge Martinotti imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
Jacobs and his conspirators are all members and associates of the 230 Boys street gang, which operates primarily in and around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from at least September 2018 through Oct. 1, 2019, the defendant and his conspirators conspired to distribute narcotics, including heroin and fentanyl.
In addition to the prison term, Judge Martinotti sentenced Jacobs to four years of supervised release.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Carpenito credited special agents and task force officers with the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit.