District of New Jersey
Press releases recorded for this federal judicial district.
Passaic County Man Admits Distributing FentanylRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted possessing and distributing fentanyl, U.S. Attorney Craig Carpenito announced.
Glen Lebron, 33, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Court Judge Brian R. Martinotti to one count of distribution and possession with intent to distribute more than 40 grams of fentanyl.
According to documents filed in this case and statements made in court:
On April 29, 2019, Lebron arranged for the sale of 59.4 grams of fentanyl to an undercover agent of the U.S. Drug Enforcement Administration (DEA).
The count to which Lebron pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum of 40 years in prison and maximum fine of $5 million.
U.S. Attorney Craig Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s Opioid Abuse Prevention & Enforcement Unit.
New York Man and Passaic County Woman Admit Roles in Defrauding Customers of New Jersey Moving CompanyRead the Press Release
NEWARK, N.J. – A New York man and a Passaic County, New Jersey, woman admitted that they participated in a scheme to defraud over 260 customers of their moving company out of more than $540,000, U.S. Attorney Craig Carpenito announced today.
Lior Atiyas (a/k/a “David Cohen”), 42, of Hewlett, New York, pleaded guilty by videoconference today before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit health care fraud. Lola Larios (a/k/a “Michelle Jacobs”), 37, of Haledon, New Jersey, pleaded guilty by videoconference before Judge Cecchi on Nov. 19, 2020, to an information charging her with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
From as early as January 2016 through January 2019, Atiyas devised a scheme to enrich himself and his moving company, which used several names to conceal its true identity, including Premier Relocations LLC, Metro Van Lines Inc., Astoria Motor Van Company, Lyon Moving, and Empire Move. Larios began working for the company in January 2018, and immediately joined in the conspiracy. Atiyas and Larios regularly extorted customers by quoting them “low-ball” price estimates for moving household goods. Once the customers’ goods were loaded onto the moving trucks, Premier’s employees, at the direction of Atiyas and Larios, or Atiyas and Larios themselves, would drastically raise the price of the move (often two or three times that of the quoted estimate), and then refuse to deliver the goods until the customers paid the increased price. The aggregate difference between the initial low-ball estimates and the revised inflated amounts charged to victims was $547,525.
Atiyas also admitted participating in a scheme whereby he generated fake paystubs and a fake employment confirmation letter in order for an uncharged conspirator to obtain Medicaid benefits. As a result of his role in the health care fraud conspiracy, Atiyas caused the submission of over $40,000 in fraudulent medical claims.
The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years in prison, and a fine of $250,000, or twice the gross pecuniary gain to the defendants, or twice the gross pecuniary loss to the victims, whichever is greater. The charge of conspiracy to commit health care fraud carries a maximum potential penalty of 10 years in prison, and a fine of $250,000, or twice the gross pecuniary gain to the defendant, or twice the gross pecuniary loss to the victims, whichever is greater. Sentencing for both defendants is scheduled for April 1, 2021.
U.S. Attorney Carpenito credited special agents with the Department of Transportation, Office of the Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker, Northeast Region, and 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, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Christopher Amore of the U.S. Attorney’s Office Government Fraud Unit in Newark.
Warren County Businessman Arrested for Fraudulently Obtaining Nearly $2 Million in Loans Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – A Warren County, New Jersey, businessman who fraudulently obtained nearly $2 million in federal Paycheck Protection Program (PPP) loans will make his initial court appearance today, U.S. Attorney Craig Carpenito and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division announced.
Rocco A. Malanga, 37, of Hackettstown, New Jersey, is charged by criminal complaint with one count of wire fraud, two counts of bank fraud, and one count of money laundering. He made his initial appearance by videoconference today before U.S. Magistrate Judge Joseph A. Dickson and was released on $750,000 unsecured bond.
According to documents filed in this case and statements made in court:
Malanga used a variety of false statements to fraudulently obtain approximately $1.8 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Malanga submitted at least three PPP loan applications on behalf of three different business entities that fabricated their number of employees and average monthly payroll. He then diverted the PPP loan funds to accounts under the control of his relatives, including his minor children, and to another company that did not obtain a PPP loan.
In one instance, Malanga submitted a PPP loan application on behalf of one of his companies that had supporting documentation that claimed that the company had 47 employees, a monthly payroll of $324,081, and paid employees approximately $3.9 million in total compensation for 2019. Contrary to this documentation and these representations, IRS records showed that the company paid no salaries or wages in 2019.
Based on Malanga’s alleged misrepresentations, the three PPP loans were funded. As a result, Malanga received a total of nearly $1.8 million in federal COVID-19 emergency relief funds meant for distressed small businesses.
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.
The count of wire fraud carries a maximum penalty of 30 years in prison and a $1 million fine; the two counts of bank fraud carry a maximum penalty of 30 years in prison and a $1 million fine; and the count of money laundering carries a maximum penalty of 10 years in prison and a $250,000.
U.S. Attorney Carpenito and Acting Assistant Attorney General Rabbitt credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the charges. They also thanked the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Social Security Administration, Office of the Inspector General.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the District of New Jersey and Trial Attorney Della Sentilles of the Fraud Section of the Department of Justice.
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 in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Previously Convicted Bank Robber Charged with Robbing Two Camden County Banks Two Days ApartRead the Press Release
CAMDEN, N.J. – A Pennsylvania man made his initial appearance today in connection with the February 2020 robberies of two Camden County, New Jersey, banks, U.S. Attorney Craig Carpenito announced.
Leon I. Stanford, 51, of Wilkes Barre, Pennsylvania, is charged by complaint with two counts of bank robbery. The defendant was previously arrested by state authorities. He appeared by videoconference today before U.S. Magistrate Judge Joel Schneider and was detained without bail.
According to documents filed in this case and statements made in court:
On Feb. 22, 2020, Stanford entered the TD Bank in Oaklyn, New Jersey, and handed the bank teller a note, which announced a robbery and demanded cash. The bank teller complied, and witnesses saw Stanford depart in a white SUV.
On Feb. 24, 2020, Stanford entered the Republic Bank in Cherry Hill, and similarly handed the bank teller a note which announced a robbery and demanded cash. The bank teller complied and witnesses saw Stanford depart in a white SUV.
Law enforcement officers were able to obtain a partial license plate number for the white SUV from surveillance videos in the area of both bank robberies, which generated a lead to a vehicle driven by Stanford. Numerous individuals familiar with Stanford identified him as the person in the bank surveillance videos.
At the time of these bank robberies, Stanford was on federal supervised release as a result of his prior bank robbery convictions, for which he served a 10-year prison term. Each bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Stanford could face additional penalties for violating his term of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia; the New York / New Jersey United States Marshals Regional Task Force Camden Division, under the direction of Jason McHugh; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Oaklyn Police Department, under the direction of Chief Mark Moore; and the Cherry Hill Police Department, under the direction of Chief William P. Monaghan, with the investigation.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the U.S. Attorney’s Office’s Camden Office.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mercer County Man Admits Possessing Firearm Loaded with 30 Rounds of Ammunition in Furtherance of Drug Trafficking CrimeRead the Press Release
TRENTON, N.J. – A Hamilton, New Jersey, man today admitted possessing a handgun in furtherance of a drug crime, U.S. Attorney Craig Carpenito announced today.
Armond Holloway, 44, of Hamilton, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp via videoconference to Count Two of an indictment charging him with possession of a firearm in furtherance of possession with intent to distribute heroin.
According to documents filed in this case and statements made in court:
On July 31, 2017, Holloway was on parole after having served a term of imprisonment. Holloway’s parole officer received information from an anonymous source that Holloway, who had known gang affiliations, was in possession of a gun, 300-400 bricks of heroin, and a large amount of money at his residence.
On Aug. 1, 2017, the parole officer, along with other law enforcement officers, conducted a parole search of Holloway’s residence, where they recovered a Masterpiece Arms 9 mm firearm with an obliterated serial number, loaded with 30 rounds of ammunition, under Holloway’s bed. They also found a barrel extension that fit the gun. Also recovered from Holloway’s bedroom was more than $14,000 in cash and more than 400 bricks of heroin from Holloway’s basement.
The count of possession of a firearm in furtherance of a drug trafficking crime to which Holloway pleaded guilty carries a statutory mandatory minimum term of five years in prison, a maximum of life in prison, and a maximum fine of $250,000. If accepted by the court at the time of sentencing, Holloway’s plea agreement would result in Holloway serving a stipulated total sentence between eight and 10 years in prison. Sentencing is scheduled for March 23, 2021.
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 in Newark; the New Jersey State Parole Board, under the direction of Chairman Samuel J. Plumeri Jr.; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s plea.
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.
Former City of Newark Official Charged with Scheming with Two Newark Businessmen to Obtain BribesRead the Press Release
NEWARK, N.J. – A former City of Newark official and officer of the Newark Community Economic Development Corporation (NCEDC) and two business owners were charged today for their roles in a bribery scheme, U.S. Attorney Craig Carpenito announced.
Carmelo G. Garcia, 45, of Hoboken, New Jersey; Frank Valvano Jr., 52, of Florham Park, New Jersey; and Irwin Sablosky, 60, of Springfield, New Jersey, are each charged by complaint with one count of conspiracy to commit bribery in connection with the business and transactions of a federally funded local government and organization. Garcia was a high-level Newark official, and prior to that, an executive officer of the NCEDC (now known as “Invest Newark”). Valvano and Sablosky are co-owners of a New Jersey-based pawnbroker and jewelry business. The defendants will appear in federal court on a date to be determined
According to documents filed in the case and statements made in court:
From 2017 through April 2019, Garcia sought and received significant monetary payments and other benefits from Valvano, Sablosky, and others in exchange for Garcia’s use of his official positions and influence to assist Valvano and Sablosky with securing redevelopment agreements (RDAs) with the City of Newark to purchase and acquire various city-owned properties for redevelopment, including obtaining preliminary designated developer status, and to ensure that Garcia did not act against their interests. In addition to money, Garcia also received jewelry from the pawnbroker and jewelry business that Valvano and Sablosky co-own.
Phone records and text messages obtained by law enforcement document extensive communications among Garcia, Valvano, Sablosky, and others about the bribery scheme, including text messages in which Garcia arranged to personally collect cash provided by Valvano and Sablosky. In one instance, in June 2018, Garcia, then acting deputy mayor and director of the city’s Department of Economic and Housing Development (EHD Department), received an envelope containing $25,000 in cash, supplied by Valvano through an intermediary, in the restroom of a New Jersey restaurant. Text messages obtained by law enforcement show that Garcia used his personal cellular phone to coordinate the location and timing of the meeting. Approximately five days later, the EHD Department issued letters granting preliminary designated developer status for several properties to two limited liability companies controlled by Valvano and Sablosky. Garcia, whose name and official title were also prominently displayed on the letterhead, was copied on both letters.
In text messages, Valvano and Sablosky discussed additional payments of money and jewelry the two had made to Garcia, and also to an associate of Garcia (Individual 1), as well as their ongoing efforts to obtain RDAs with the city to acquire and redevelop additional properties. For instance, on March 31, 2019, Valvano texted Sablosky to complain that Garcia’s associate, who sometimes served as an intermediary between Garcia and Sablosky and Valvano, was “already looking for [more] money.” After observing that “We’ve done nothing but spend tons of money and give away jewelry,” Sablosky noted that “Carmelo [Garcia] wants more too. We can’t afford it . . . We’re a [expletive] money well for these guys to keep coming back to.”
On April 13, 2019, Sablosky also sent text messages to Valvano regarding a meeting he had with Garcia the previous day and his giving Garcia an additional payment of $5,000. Sablosky noted that Garcia had “showed up [at] 5pm last night” to discuss another “RDA” he and Valvano were attempting to obtain from the city. When Valvano asked whether there was “Any mention of $$,” Sablosky responded, “He [Garcia] didn’t just come to visit!! Lol. He got another 5,” referencing the $5,000 payment. Sablosky also told Valvano, “When you get back we have to add everything and sit down with him [Garcia]. I want to get these RDAs through before we start rocking the boat.”
The count of conspiracy to commit bribery carries a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gross pecuniary gain or loss from the offense.
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; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jeffrey J. Manis, Elaine K. Lou, and Jihee G. Suh of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Florida Man Admits Role in $4.6 Million Health Care Fraud and Kickback Schemes Related to Genetic TestingRead the Press Release
NEWARK, N.J. – A Florida man today admitted his role in using his company to defraud the Medicare Program in connection with fraudulent orders for genetic tests, Attorney for the United States Rachael A. Honig announced.
Edward B. Kostishion, 60, of Lakeland, Florida, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a superseding information charging him with two counts of conspiracy to commit an offense against the United States in connection with schemes to commit health care fraud and violate the Anti-Kickback Statute. Kostishion and five co-defendants were previously charged by indictment in September 2019 in connection with these conspiracies.
According to documents filed in this case and statements made in court:
Kostishion and certain conspirators operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health Inc., a company that another conspirator operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. Matthew S. Ellis, a physician based in Gainesville, Florida, and a co-defendant charged in the indictment, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and various other states where Ellis was not licensed to practice medicine. Through this process, Ellis, Kostishion, and other conspirators submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in some cases, falsely indicated that a patient had a personal or family history of cancer. In 2018 alone, Medicare paid clinical laboratories at least $4.6 million for genetic tests that Ellis ordered as part of this scheme.
In addition, Kostishion and certain conspirators entered into kickback agreements with certain clinical laboratories under which the laboratories paid Ark bribes in exchange for delivering DNA samples and orders for genetic tests. Among other things, Ark concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received from Medicare or an amount paid for each DNA sample. In 2018, the clinical laboratories paid Ark at least $1.8 million in bribes.
Each conspiracy count carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Kostishion’s sentencing is scheduled for April 1, 2021.
Co-defendants Kacey C. Plaisance, of Altamonte Springs, Florida, and Kyle D. McLean, of Arlington Heights, Illinois, previously pleaded guilty. Plaisance is scheduled to be sentenced on March 15, 2021. McLean is scheduled to be sentenced on April 12, 2021.
Attorney for the United States Honig credited the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Supervisory Special Agent Thomas Mahoney, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Bernard J. Cooney, Acting Chief of the Opioid Abuse Prevention & Enforcement Unit.
The charge and allegations against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Union County Man Sentenced to 88 Months in Prison for Possessing and Distributing Child PornographyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 88 months in prison for distributing and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Nicholas Pecil, 33, of Rahway, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to a superseding indictment charging him with one count of distributing child pornography and one count of possessing child pornography. Judge Vazquez imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Pecil used a peer-to-peer file-sharing program to download and share videos and images of child sexual abuse. In February 2017, law enforcement downloaded 11 videos of child sexual abuse from Pecil’s computer. After executing a search warrant at Pecil’s home in May 2017, agents located more than 1,000 videos and over 6,000 images of child sexual abuse on Pecil’s computers. Pecil admitted that he used the peer-to-peer file-sharing program to make images and videos of child sexual abuse available for others to download from his computer.
In addition to the prison term, Judge Vazquez sentenced Pecil to 15 years of supervised release and ordered him to register as a sex offender.
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 in Newark with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Office’s Cybercrime Unit.
Staten Island Man Sentenced to 96 Months in Prison for Robbery, Identity Theft, and Defrauding Numerous Women and BusinessesRead the Press Release
NEWARK, N.J. – A Staten Island, New York, man was sentenced today to 96 months in prison for robbing a New Jersey business owner in February 2019, defrauding eight New Jersey businesses from July 2016 through January 2019, and defrauding and stealing the identities of three women, U.S. Attorney Craig Carpenito announced.
Raymond Scura, 31, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with wire fraud affecting a financial institution, aggravated identity theft, and Hobbs Act robbery. Judge Cecchi imposed the sentence by videoconference today.
According to the documents filed in this case and statements made in court:
Scura used bad checks and stolen credit cards to obtain luxurious goods and services, such as a country club membership, limousine services, luxury hotel expenses, exotic car rentals, and a Rolex watch, in order to appear wealthy and obtain the confidence of his victims, who were usually women. Once he convinced his victims of his purported wealth, he would then steal their identities and credit cards to make additional purchases. As a result of his fraud and aggravated identity theft offenses, Scura caused losses to individuals and businesses in excess of $250,000
In February 2019, Scura was a customer of an internet-based business owned and operated by a New Jersey man. To pay for the services of the business, Scura wrote at least one fraudulent check to the victim. When the victim insisted on cash payment, Scura drove with the business owner to a bank, where Scura brandished a gun, threatened to kill the victim, and demanded that the victim deposit a fraudulent check for $10,000 into the victim’s bank account and then withdraw $10,000. The victim did as Scura directed and then gave Scura the $10,000.
In addition to the prison term, Judge Cecchi sentenced Scura to three years of supervised release and ordered him to pay restitution to the numerous victims totaling $166,505.
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 Belleville Police Department, under the direction of Chief of Police Mark Minichini, with the investigation leading to today’s sentencing. He also thanked the Summit Police Department, the Union County Prosecutor’s Office, the Burlington County Prosecutor’s Office, and the Evesham Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Christopher Amore of the Government Fraud Unit and Assistant U.S. Attorney Elaine Lou of the U.S. Attorney’s Office in Newark.
New York Man Sentenced to Two Years in Prison for Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – An Orange County, New York, man was sentenced today to 24 months in prison for allegedly orchestrating a wire fraud scheme that involved manipulating a business’ payroll service, U.S. Attorney Craig Carpenito announced.
Patrick Snoop, 35, of Monroe, New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of wire fraud. U.S. District Judge Brian Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From November 2015 through July 2019, Snoop served as an office manager and bookkeeper for a company based in Union, New Jersey. Beginning in March of 2016, Snoop used his position to fraudulently inflate his salary on several occasions by providing falsified information to a payroll company used by his employer. The unauthorized changes resulted in $494,373 in losses to the company.
In addition to the prison term, Judge Martinotti sentenced Snoop to three years of supervised release and ordered restitution of $494,373.
U.S. Attorney Carpenito credited agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jamel Semper, Chief of the Organized Crime and Gangs Unit, in Newark.
Former Pharmacy and Marketing Company Sales Representative Admits Role in Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – A former pharmaceutical and marketing company sales representative today admitted his role in a conspiracy to defraud a New Jersey state health benefits program, U.S. Attorney Craig Carpenito announced.
Joshua Darstek, 38, of Freehold, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to a superseding 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 May 2014 and January 2016, Darstek worked as a sales representative on behalf of two compounding pharmacies and a marketing company – referred to in the superseding information as the “Compounding Companies.” He marketed and sold compounded drugs to physicians, including pain, scar, and wound creams and certain supplements and vitamins. The Compounding Companies paid Darstek based on a percentage of the reimbursement payments they received from health care benefit programs for each prescription that he referred to the compounding pharmacies. Darstek participated in a conspiracy that recruited patients, many of whom had prescription drug coverage under the New Jersey School Employee’s Health Benefits Program, to submit medically unnecessary prescriptions for compounded drugs to the pharmacies. Darstek caused physicians to write prescriptions for individuals with whom they did not have any interaction for purposes of determining that a prescription for a compounded drug was medically necessary.
The conspiracy to commit health care fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense. As part of his plea agreement, Darstek must forfeit $148,500 in criminal proceeds and pay restitution of at least $594,639. Sentencing is scheduled for March 23.
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 the Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Bernard J. Cooney, Acting Chief of the Opioid Abuse Prevention & Enforcement Unit.
Camden County Man Indicted for Illegal Possession of WeaponRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was indicted today for illegally possessing a handgun, U.S. Attorney Craig Carpenito announced.
Maurice Isler, 36, of Lindenwold, New Jersey, was charged by indictment with one count of being a previously convicted felon in possession of a handgun.
According to the indictment:
On April 10, 2020, a witness told a police officer that Isler was in possession of a firearm. When confronted by police, Isler ran, and was caught by two police officers. They arrested Isler and found a loaded handgun in his pocket. The handgun had previously been reported stolen. As a previously convicted felon, Isler is not permitted to possess a handgun under federal law.
The count of being a felon in possession of a firearm is punishable by a maximum penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the ATF, 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 – Metro Division, under the direction of Chief Joseph D. Wysocki, for its assistance with the investigation.
The government is represented by Assistant U.S. Attorney Andrew Johns of the Criminal Division in Camden.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Resident of Bergen County Admits Role in $1.5 Million Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – A former New Jersey resident today admitted participating in an investment scheme through which he fraudulently obtained $1.525 million from at least three families from 2017 through 2019, U.S. Attorney Craig Carpenito announced.
Matthew Benjamin, 53, formerly of Englewood, New Jersey, and now of New York, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of wire fraud and one count of securities fraud.
According to documents filed in this case and statements made in court:
From May 2017 through August 2019, Benjamin falsely represented to at least three families that his company, Clear Solutions Group LLC, had lucrative contracts to purchase closeout or excess cosmetic inventory from Company A, which he would then resell at a mark-up to Company B. Benjamin told the victims that he had access to these closeout goods through his contacts in the cosmetics and fragrance industry, which he purportedly made through his work at his family’s cosmetic wholesale and distribution business prior to starting Clear Solutions Group. Benjamin induced the victims to provide him with money to purchase the inventory from Company A and promised significant profits in return. Instead of investing the money as he promised, Benjamin misappropriated the investor’s money for his own use and benefit.
Benjamin provided the victims with falsified documents, including fake purchase orders, invoices, promissory notes and bank records showing inflated assets of Clear Solutions Group. To lull victims and induce them to continue investing, Benjamin provided them with documents that purported to detail the investors’ profits.
Benjamin misrepresented to certain investors that portions of their profits on the investment contracts were being reinvested in additional deals to purchase and sell cosmetics, which in turn would generate more profits. From time to time, Benjamin made payments to the investors that were purportedly their profits on certain cosmetics contracts.
In reality, Benjamin misappropriated the investors’ money by making payments to other investors in Clear Solutions Group, which were characterized as those investors’ profits from the nonexistent cosmetic contracts, thereby enabling Benjamin to continue to perpetuate his fraudulent scheme; and by funding Benjamin’s and his family’s lifestyle, including paying for car and house rental payments, food, international travel, legal fees, technology equipment, and summer camp tuition for his family members.
The wire fraud counts are each punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. The securities fraud count is punishable by a maximum of 20 years in prison and a fine of $5 million. Sentencing is scheduled for March 24, 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 U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Director Richard R. Best, for its assistance. The SEC also filed a civil complaint based on the same conduct when Benjamin was arrested July 1, 2020; that complaint remains pending.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Florida Man Sentenced to 37 Months in Prison for Laundering More Than $9 Million in Account Takeover SchemeRead the Press Release
TRENTON, N.J. – A Florida man was sentenced today to 37 months in prison for laundering funds related to a $9 million business account takeover scheme with ties to Eastern Europe, U.S. Attorney Craig Carpenito announced.
Igor Buzyukov, 52, of Weston, Florida, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with conspiracy to commit money laundering. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Between February 2018 and July 2018, several clients of Company-1, a financial technology company headquartered in San Jose, California, fell victim to an account takeover scheme resulting in total losses exceeding $9 million.
The scheme generally involved an unidentified individual or individuals calling Company-1 and impersonating a representative of one of the victim companies. The impostor(s) would then request that an unauthorized bank account be added to the victims’ Company-1 accounts and be designated to receive payments from e-commerce customers.
The unauthorized bank accounts added to the victims’ Company-1 accounts were each controlled by Buzyukov under the name of a corporation registered to him in the State of Florida. After monies were deposited to the unauthorized accounts, Buzyukov would transfer the funds to other accounts controlled by him. Buzyukov then wired the majority of the funds to several bank accounts held by various individuals in Russia, Turkey and Ukraine.
Buzyukov also admitted to creating fake invoices in the amounts of the wire transfers in order to make the transactions appear legitimate.
In addition to the prison term, Judge Thompson sentenced Buzyukov to three years of supervised release and ordered him to pay restitution of $160,000, his illegal proceeds from the scheme.
U.S. Attorney Carpenito credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrime Unit.
Camden County Man Charged with Possession with Intent to Distribute Powder and Crack CocaineRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man made his initial court appearance today on charges of possessing with intent to distribute cocaine, U.S. Attorney Craig Carpenito announced.
Joseph C. Long, 30, of Bellmawr, New Jersey, was charged by complaint with two counts of possession with intent to distribute cocaine. The defendant was previously arrested by state authorities. He appeared by videoconference today before U.S. Magistrate Judge Joel Schneider and was detained without bail.
According to documents filed in this case and statements made in court:
On Jan. 15, 2020, law enforcement officers executed a search warrant at Long’s apartment. Long was seen jumping out of the second-floor bedroom window and was later apprehended. Inside the apartment, officers found powder cocaine, crack cocaine, packaging and distribution related items, and over $3,400 in cash.
Each drug charge carries a maximum potential penalty of 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, Newark Field Division, under the direction of Special Agent in Charge Charlie J. Patterson; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Department, under the direction of Sheriff Gilbert L. “Whip” Wilson; and the Bellmawr Police Department, under the direction of Chief William P. Walsh; with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg in Camden.
The charges and allegations in the complaint are merely accusations, and the defendants is presumed innocent unless and until proven guilty.
Bergen County Man Sentenced to 63 Months in Prison for Possessing with Intent to Distribute over 50 Grams of MethamphetamineRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 63 months in prison for possessing with intent to distribute over 50 grams of methamphetamine, U.S. Attorney Craig Carpenito announced.
Jeff DelaCruz, 38, of North Arlington, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of possessing with intent to distribute more than 50 grams of methamphetamine. Judge Cecchi imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On May 22, 2019, DelaCruz sold two “8-balls” (approximately 7 grams) of methamphetamine to an individual for approximately $350 in cash. Law enforcement agents observed DelaCruz leave his residence and meet with the individual to complete the sale. On June 3, 2019, DelaCruz agreed to sell three ounces of methamphetamine to an individual for approximately $3,000 in cash. On June 5, 2019, the special agents and officers of the U.S. Drug Enforcement Administration executed a search warrant at DelaCruz’ residence, where they recovered approximately 140 grams of methamphetamine.
In addition to the prison term, Judge Cecchi sentenced DelaCruz to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.
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.
The government is represented by Assistant U.S. Attorney Patricia Astorga of the U.S. Attorney’s Office’ Opioids Unit in Newark.
Repeat Offender Charged with Distribution and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man has been arrested on charges that he distributed and possessed images and videos depicting child sexual abuse, U.S. Attorney Craig Carpenito announced today.
Andrew Ramey, 34, of Brick, New Jersey, is charged by criminal complaint with one count of distribution of child pornography and one count of possession of child pornography. He was arrested Nov. 13, 2020, by special agents of the Department of Homeland Security, appeared by videoconference before U.S. Magistrate Judge Lois H. Goodman and was detained without bail.
According to documents filed in this case:
From March 13, 2020, through June 8, 2020, Ramey distributed material containing images of child sexual abuse and child pornography, via the BitTorrent Network, a publicly available online peer-to-peer (P2P) file-sharing network of linked computers. Users must download P2P software, which is widely available for free on the Internet. The software allows the user to place files into a designated “shared” folder on his or her hard drive, from which other BitTorrent users can then download those files directly to the “shared” folders of their own computers. Users can then search, select, and directly download, those files.
Law enforcement used investigative software to access the BitTorrent Network and downloaded video files containing child pornography from a device or devices assigned to an IP address at Ramey’s residence. On Nov. 13, 2020, law enforcement searched Ramey’s residence and found multiple images and videos containing images of child sexual abuse, as well as BitTorrent software, on a mobile phone belonging to Ramey.
In a prior federal prosecution in New Jersey in 2018, Ramey was convicted of one count of possession of child pornography. The distribution charge is punishable by a mandatory minimum penalty of 15 years in prison and a statutory maximum penalty of 40 years in prison, along with a fine of up to $250,000 or twice the gross pecuniary gain or loss caused by the offense, whichever is greater. The possession charge carries a mandatory minimum penalty of 10 years in prison and a statutory maximum penalty of 20 years in prison, along with a fine of $250,000 or twice the gross pecuniary gain or loss, whichever is greater.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations Atlantic City, under the direction of Newark Special-Agent-in-Charge Jason J. Molina; detectives of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; the Brick Police Department, under the direction of Chief James Riccio; and the Mount Laurel Police Department, under the direction of Chief Stephen Riedener, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Ohio Man Charged with Five Bank Robberies, Two Attempted Bank Robberies in New JerseyRead the Press Release
NEWARK, N.J. – An Ohio man who was out on bail for allegedly committing a bank robbery in the Chicago area and who is charged in New Jersey with seven bank robberies or attempted bank robberies will make his initial court appearance by videoconference today, U.S. Attorney Craig Carpenito announced.
Tyler O’Toole, 23, of Cleveland, Ohio, was arrested in Queens, New York, on November 14, 2020. He is charged by complaint sworn out in the District of New Jersey on Nov. 4, 2020, with five counts of bank robbery and two counts of attempted bank robbery and is scheduled to have his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Joseph A. Dickson.
According to documents filed in this case and statements made in court:
O’Toole was arrested in Glenview, Illinois, on Aug. 20, 2020, and charged in federal court in the Northern District of Illinois with bank robbery. O’Toole was released on bail and placed on home detention with electronic location monitoring.
On Sept. 24, 2020, O’Toole removed his monitoring device, stole his mother’s blue 2018 Hyundai Elantra, and drove away. He later robbed, or attempted to rob, the following New Jersey banks:
Date
Bank
Location
Oct. 8, 2020
PNC Bank
Morris Plains, New Jersey
Oct. 8, 2020
PNC Bank*
Pompton Plains, New Jersey
Oct. 22, 2020
Chase Bank
Aberdeen, New Jersey
Oct. 22, 2020
Bank of America
East Windsor, New Jersey
Oct. 27, 2020
Chase Bank
Lawrence Township, New Jersey
Oct. 27, 2020
Citizens Bank
Mount Holly, New Jersey
Oct. 30, 2020
Citizens Bank*
Runnemede, New Jersey
*attempted bank robbery
At each bank, O’Toole presented a note demanding cash from bank tellers. For example, during the Oct. 27, 2020, robbery of the Chase Bank in Lawrence Township, O’Toole handed the teller a manila envelope which stated:
- This is a robbery. Comply and Nobody gets hurt.
- Give me 20’s 50’s 100’s
- NO Trackers or Ink Packs
- Put Money in THIS Envelope
- Be fast, Act Normal
Each bank robbery or attempted bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI’s Violent Crimes/Interstate Theft Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges. He also thanked the FBI’s Westchester, County, New York Safe Streets Task Force; the Camden County, Monmouth County and Morris County prosecutor’s offices; and the Morris Plains Boro, Pompton Plains, Aberdeen Township, East Windsor Township, Lawrence Township, Mount Holly Township, Runnemede Borough, Medford, and Gloucester Township police departments for their assistance.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mexican National Admits Trafficking Fentanyl into New JerseyRead the Press Release
NEWARK, N.J. – A Mexican national today admitted transporting approximately two kilograms of fentanyl into New Jersey for distribution, U.S. Attorney Craig Carpenito announced.
Adrian Vargas Arroyo, 31, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an indictment charging him with one count of possession with intent to distribute over 400 grams of fentanyl.
According to documents filed in this case and statements made in court:
In October 2019, Vargas Arroyo drove a tractor trailer into New Jersey with a bag containing four half-kilogram packages of fentanyl, weighing a total of approximately two kilograms. Vargas Arroyo arranged to distribute the narcotics at a location in Middlesex County, New Jersey, where he was arrested.
The distribution and possession with intent to distribute charge to which Vargas Arroyo pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a maximum of life in prison, and a $10 million fine. Sentencing is scheduled for March 29, 2021.
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 today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force/Narcotics Unit.
Repeat Offender Charged with Distribution and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – An Atlantic County, New Jersey, man is scheduled to make his initial appearance today after being charged with possessing and distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Stephen Tisch, 36, of Minotola, New Jersey, is charged by indictment with one count of distribution of child pornography and one count of possession of child pornography. He was arrested by FBI agents today and is expected to appear by videoconference today before U.S. Magistrate Judge Lois H. Goodman.
According to the indictment filed in this case and statements made in court:
A law enforcement investigation revealed that Tisch, living in Ocean County at the time, and who previously had been convicted of child pornography offenses, had distributed images of child sexual abuse over an online social media chat forum. A search of Tisch’s residence found multiple images depicting the sexual exploitation of children on Tisch’s mobile phone.
Tisch was previously convicted of endangering the welfare of a child/possession of child pornography in Ocean County in 2014. The charge of possession of child pornography, for a repeat offender, carries a mandatory minimum of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine. The charge of distribution of child pornography, for a repeat offender, carries a mandatory minimum of 15 years in prison, a maximum of 40 years in prison, and a $250,000 fine.
U.S. Attorney Craig Carpenito credited special agents with FBI, under the direction of Special Agent in Charge George M. Crouch Jr., New Jersey Regional Forensics Computer Laboratory, under the direction of Supervisory Special Agent Steven J. Newman, and the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Michelle S. Gasparian and Special Assistant U.S. Attorney Katie Magee Lee of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the defendant are merely accusations and he is presumed innocent unless and until proven guilty.
Previously Convicted Felon who Committed Shooting Sentenced to 75 Months in Prison for Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man who is a previously convicted felon was sentenced today to 75 months in prison for possessing a firearm and ammunition in connection with an incident in which he shot another individual, U.S. Attorney Craig Carpenito announced.
Andre Shoulars, 28, of Newark, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon. U.S. District Judge Brian R. Martinotti imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
On Nov. 4, 2018, at approximately 2:30 p.m., the victim was in the area of 340 Hawthorne Avenue in Newark, speaking with another individual. Shoulars approached the victim, pulled out a semiautomatic handgun, and began firing several shots at the victim. Although the victim was able to run away as Shoulars fired the handgun, the victim was hit in the foot with one .40 caliber bullet fired by Shoulars. The victim was treated at a hospital for the bullet wound.
Newark police officers responded to the scene of the shooting and recovered five .40 caliber shell casings from the street. Officers also recovered videotapes from several surveillance cameras which were stationed in the area of the shooting. These videotapes showed Shoulars walking around in the area just before the shooting, and also showed Shoulars shooting at the victim and then running away.
In addition to the prison term, Judge Martinotti sentenced Shoulars to three years of supervised release.
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 the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos Jr., and the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Owner of Durable Medical Equipment Companies Admits Role in $16 Million Dollar Kickback SchemeRead the Press Release
NEWARK, N.J. – The owner of a group of related durable medical equipment (DME) companies today admitted his role in a conspiracy to pay kickbacks in exchange for durable medical equipment, Attorney for the United States Rachael A. Honig announced.
Albert Davydov, 28, of Rego Park, New York, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with conspiring to violate the Anti-Kickback statute.
According to documents filed in this case and statements made in court:
Davydov, the owner of nine DME companies, participated in a scheme to pay kickbacks in exchange for doctors’ orders for medically unnecessary orthotic braces. Once Davydov and his conspirators received the completed doctor’s orders, they billed Medicare and other federal and private health care benefit programs for the braces. Davydov concealed his ownership of the DME companies by falsely reporting to Medicare that various straw owners owned the companies.
As part of his plea agreement, Davydov agreed that the improper benefit conferred was over $16 million for the charged conspiracy to violate the federal Anti-Kickback statute. The conspiracy charge to which Davydov 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 greatest. Sentencing is scheduled for March 25, 2021.
Attorney for the United States Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney J. Stephen Ferketic of the Opioid Abuse Prevention & Enforcement Unit.
New Jersey Assistant U.S. Attorney Mary E. Toscano Among Those Honored by the 68th Annual Attorney General’s AwardsRead the Press Release
NEWARK, N.J. – Attorney General William P. Barr has announced the recipients for the 68th Annual Attorney General’s Awards, recognizing Department of Justice employees and partners for extraordinary contributions to the enforcement of our nation’s laws.
Among the honorees this year is Assistant U.S. Attorney Mary E. Toscano, Deputy Chief of the Criminal Division for the U.S. Attorney’s Office-District of New Jersey (USAO-DNJ). AUSA Toscano is one of 240 DOJ employees who received awards, while 27 non-department individuals are also being honored for their work. This year, due to coronavirus restrictions, Attorney General Barr is honoring recipients virtually.
“I am honored to recognize the recipients of this year’s Attorney General’s Awards, whose tireless work and steadfast dedication have proven critical to enforcing the rule of law and protecting all Americans,” Attorney General Barr said. “Those honored today have demonstrated exceptional efforts and made tremendous personal sacrifices throughout their time working at the Department of Justice, and for that, I am truly thankful.”
AUSA Toscano was one of two winners of the Attorney General’s Award for Excellence in Management, which recognizes outstanding administrative or managerial achievements that have significantly improved operations, productivity, or reduced costs.
In August 2017, the USAO-DNJ initiated a Violent Crime Initiative for the City of Newark in light of a serious and still-developing violent crime problem. AUSA Toscano, then the Chief of the Organized Crime/Gangs Unit, was assigned to get the VCI off the ground and manage and supervise it. She rapidly put together a federal, state and local partnership led by herself; the Essex County Prosecutor’s Office; Newark’s Department of Public Safety; and the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Drug Enforcement Administration, with the goal of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate, share intelligence, and pool resources to prosecute violent offenders who endanger the safety of the community.
AUSA Toscano has led the Newark VCI for over three years, during which Newark has seen a sharp decrease in overall crime and violent crime. Between 2017 and 2018, Newark saw a 30 percent reduction in the number of shooting victim. In 2019, the number of shooting victims and shooting incidents declined another 39 percent compared to 2018. In that same year, the number of murders in Newark reached its lowest level in nearly six decades.
“These successes simply would not have been possible without Ms. Toscano’s close management and careful direction,” U.S. Attorney Craig Carpenito said. “The Newark VCI has not only improved community safety, but has strengthened the relationships among federal, state, county and city agencies. As a result of the trust developed among the participants, the Newark VCI has enjoyed not only success with respect to reducing violence, but also in improving relationships among the various stakeholders. Ms. Toscano’s management is key to this success as well.”
For her work on the Newark VCI, AUSA Toscano was honored in October 2019 with a Proclamation from the City of Newark, recognizing her considerable contributions to public safety in Newark. Mayor Ras Baraka’s proclamation stated that the VCI “has had a dramatic impact on crime in Newark,” and credited AUSA Toscano for her work “to make Newark a safer, more empowered, and more equitable City.”
In 2018, U.S. Attorney Carpenito asked Ms. Toscano to stand up a second VCI, this one focusing on Jersey City, New Jersey, which operates in much the same fashion. Ms. Toscano has managed and supervised both VCIs concurrently for over a year – in addition to her other duties as Deputy Chief of the Criminal Division. The results in Jersey City have been equally dramatic. Violent crime was down 30 percent in Jersey City in 2019, compared to 2018. The goal of the Mayor of Jersey City entering 2019 had been to obtain a 10 percent reduction; the VCI helped far exceed this goal.
AUSA Toscano has been a key advisor in helping her colleagues to establish more recent VCIs in Trenton, Camden, and Paterson, New Jersey. She has trained local police departments in these cities on the operation of the VCI model and has been invaluable as a resource to the AUSAs who are getting these VCIs off the ground. Her management has been critical to the USAO-DNJ’s efforts to combat violent crime across the entire State of New Jersey.
AUSA Toscano joined the DOJ in 2007 through the DOJ Honors Program, as a Trial Attorney in the Narcotics & Dangerous Drugs Section. She first joined the USAO-DNJ as a Special Assistant U.S. Attorney, before being hired as an AUSA in 2012. She was promoted to Deputy Chief of the General Crimes Unit in 2015; became the Chief of that Unit in 2016; and later became the Chief of the OC/Gangs Unit. She has served as Deputy Chief of the Criminal Division since March 2018. In that capacity, she supervises the OCDETF/Narcotics, OC/Gangs, and Violent Crimes Units, in addition to managing the VCIs in Newark and Jersey City.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Essex County Man Admits Role in Multiple Bank RobberiesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted robbing five banks between October 2018 and January 2019, U.S. Attorney Craig Carpenito announced.
Myron Anderson, 40, of Newark, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with five counts of bank robbery and two counts of Hobbs Act robbery.
According to documents filed in this case and statements made in court:
Anderson admitted robbing the following banks:
Bank
Location
Date
Bank of America
Florham Park, New Jersey
Oct. 1, 2018
TD Bank
Hackensack, New Jersey
Nov. 13, 2018
Provident Bank
Bridgewater, New Jersey
Nov. 14, 2018
Chase Bank
Nanuet, New York
Nov. 15, 2018
TD Bank
Franklin, New Jersey
Jan. 14, 2019
In each of the bank robberies, Anderson walked into the banks with a hat pulled down closely over his eyes to shield his face from view and presented the teller with a note demanding money be placed in an envelope. Anderson intimidated the tellers, who, fearing for their safety, complied and handed Anderson money. In each instance, Anderson took evasive actions in travelling to and from the banks so as not to get caught.
Each count of bank robbery in which Anderson is charged carries a maximum punishment of 20 years in prison and a $250,000 fine. Sentencing is scheduled for March 25, 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 Florham Park, Hackensack, Bridgewater, and Franklin police departments in New Jersey and the Clarkstown, New York, police department.
The government is represented by Assistant U.S. Attorney Robert Scrivo of the Criminal Division of the U.S. Attorney’s Office in Newark.
Michigan and New Jersey Men Admit Participating in $10 Million Multi-State Bank Fraud ConspiracyRead the Press Release
TRENTON, N.J. – A Michigan man today admitted his role in a large-scale conspiracy to commit bank fraud in several states, including New Jersey, New York, Pennsylvania, Maryland, Virginia, and Michigan, over the course of two years, U.S. Attorney Craig Carpenito announced today.
Rana Sharif, 36, of Dearborn Heights, Michigan, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to commit bank fraud.
On Nov. 10, 2020, co-defendant Ali Abbas, 38, of Middlesex County, New Jersey, pleaded guilty by videoconference before Judge Wolfson to a separate information that also charged him with conspiracy to commit bank fraud.
Sharif, Abbas and five co-defendants – Awaise Dar, Shamsher Farooq, Naveed Arif, Habib Majid and Erm Ayaz – were charged by complaint in July 2020 in connection with the scheme.
According to documents filed in this case and statements made in court:
From 2018 through April 2020, Sharif, Abbas, and others conspired to defraud several major banks and electronic merchant processors. They established bank accounts associated with sham entities that had no legitimate purpose, and issued checks payable to other shell companies associated with the criminal organization, knowing that the payor accounts had insufficient funds. The conspirators would also conduct fraudulent credit card and debit card transactions between shell companies to credit payee accounts and overdraw payor accounts. The defendants also used these shell companies to execute temporary refund credits, commonly referred to as “charge-backs,” to checking accounts associated with the criminal organization, where no prior legitimate transaction had occurred.
Members of the criminal organization withdrew the “existing” funds (through ATMs or bank tellers) that banks and merchant processors had credited to the payee bank accounts at the time of the fraudulent transaction. Because the conspirators withdrew the credited funds from the payee accounts before the banks could recognize the fraudulent transactions, the banks and merchant processors were left with substantial losses.
During its investigation, law enforcement identified approximately 200 bank accounts and 75 merchant credit card processing accounts used to facilitate the conspiracy’s fraudulent schemes. Sharif, Ali, and other conspirators’ unlawful activities attempted to cause a $10 million loss on financial institutions and did in fact caused a loss of approximately $3.5 million.
The conspiracy charges to which Sharif and Abbas pleaded guilty carry a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross pecuniary gain to the defendants or twice the gross pecuniary loss to others, whichever is greater. Sharif’s sentencing is scheduled for March 15, 2021. Abbas’ sentencing is scheduled for March 18, 2021.
U.S. Attorney Craig Carpenito credited special agents of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark: Social Security Administration, under the direction of John F. Grasso; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Camden Man Admits Role in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A member of a Camden drug-trafficking organization today admitted conspiring to distribute heroin, U.S. Attorney Craig Carpenito announced.
Jose Agron, 26, of Camden, pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiracy to distribute and possess with intent to distribute at least one kilogram of heroin.
Fourteen other members of the drug-trafficking conspiracy based in the 500 block of Pine Street in Camden – Ronnie Lopez, Nelson Salcedo, Carlos Perez, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, David Velez, Naeem Sadler, Jasmin Velez, Jameel Byng, Kaliel Johnson, and Meylin Troncoso – previously have pleaded guilty in this case. The charges against three other defendants remain pending.
According to documents filed in this case and statements made in court:
An investigation by led by the FBI used surveillance tactics, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations of the Camden drug-trafficking organization. Members of the drug-trafficking organization sold heroin, crack cocaine, cocaine, and fentanyl in and around Camden.
The count to which Agron pleaded guilty carries a mandatory penalty of 10 years in prison, a maximum potential penalty of a lifetime in prison, and a $10 million fine. Sentencing is scheduled for March 15, 2021.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
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.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
For the defendants whose charges remain pending, the charges and allegations are merely accusations, and they are presumed innocent unless and until proven guilty.
New York Man Admits Illegal Sale of Unregistered Pesticide Imported from Nigeria to Individuals Throughout United StatesRead the Press Release
NEWARK, N.J. – A New York man today admitted to knowingly distributing and selling to individuals throughout the United States an unregistered pesticide imported from Nigeria, U.S Attorney Craig Carpenito, announced.
Jude Chukwuebuka Amadike, 62, of Elmont, New York, pleaded guilty before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court to an information charging him with one count of knowingly distributing or selling an unregistered pesticide in violation of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA).
According to court documents filed in this case and statements made in court:
FIFRA provides for federal regulation of pesticide distribution, sale, and use to ensure that pesticides sold in the United States are safe, effective, and bear labeling containing true and accurate information. The Environmental Protection Agency (EPA) has responsibility under FIFRA to regulate the manufacture, labeling, and distribution of all pesticides shipped or received in interstate commerce. All pesticides must be registered with the EPA before the pesticide can be sold or distributed, and no person may distribute or sell a pesticide that has not been registered with the EPA.
From Sept. 15, 2016, through Nov. 14, 2018, Amadike sold an unregistered pesticide called Sniper DDVP on Amazon and eBay to customers in at least 22 states, including New Jersey. The investigation into these sales revealed that the defendant procured this pesticide by importing it from a Nigerian supplier. One such purchase in December 2017 revealed an import of approximately 798 pounds of Sniper DDVP.
On Nov.14, 2018, law enforcement executed a search warrant at the Amadike’s home and recovered 1,728 bottles of the unregistered pesticide. Laboratory testing of samples taken from these bottles revealed each sampled bottle to contain the chemical dichlorvos, which has been classified by EPA as a probable human carcinogen.
The illegal sale of an unregistered pesticide carries a statutory maximum prison sentence of one year and a fine of up to $25,000. Sentencing is scheduled for March 16, 2021.
U.S. Attorney Carpenito credited special agents of the U.S. Environmental Protection Agency, Criminal Investigation Division, under the direction of Special Agent in Charge Tyler C. Amon; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina; and officers of U.S. Customs and Border Protection, under the direction of Troy Miller, Director of Field Operations, New York Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Jason P. Garelick of the U.S. Attorney's Government Fraud Unit in Newark.
Essex County Man Charged with Producing Child PornographyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey man appeared before a federal judge today on charges that he produced and possessed images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Antonio Del Prado, 59, of Millburn, New Jersey, is charged by complaint with one count of production of child pornography and two counts of possession of child pornography. He appeared by videoconference before U.S. Magistrate Judge Edward S. Kiel and was detained without bail.
According to documents filed in this case and statements made in court:
In October 2020, law enforcement learned that Del Prado had uploaded 56 images and 18 videos of suspected child sexual abuse to an internet-based cloud storage system. Del Prado had actively participated in the production of child sexual abuse by giving instructions to another individual who was live-streaming a video of themselves sexually assaulting a child. Law enforcement arrested Del Prado at his residence in Millburn this morning.
The charge of production of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years in prison, and fine of $250,000. The charge of possession of child pornography carries a maximum penalty of 10 years in prison, and 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 the charges.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Organized Crime/Drug Enforcement Task Force 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.
Doctor’s Employee Admits Role in Genetic Testing Kickback and Bribery SchemeRead the Press Release
TRENTON, N.J. – A Pennsylvania woman today admitted participating in a conspiracy to receive bribes and kickbacks in exchange for ordering genetic tests, U.S. Attorney Craig Carpenito announced.
Kimberly Schmidt, 46, of Moscow, Pennsylvania, pleaded guilty by videoconference before U.S. District Judge Anne E. Thompson to an information charging her with one count of conspiring to violate the anti-kickback statute.
According to documents filed in this case and statements made in court:
Schmidt worked for Lee Besen, a primary care physician with a medical office in Peckville, Pennsylvania. From December 2018, Besen and Schmidt accepted monthly cash kickbacks and bribes in exchange for collecting DNA samples from Medicare patients and sending them for genetic tests to clinical laboratories in New Jersey and Pennsylvania. The cash kickbacks typically ranged from $500 to $1,500, and Besen typically accepted the cash inside his medical office.
When Besen did not receive his kickback and bribe payments, the volume of genetic tests he ordered dipped. But when those payments flowed to Besen, he increased that volume because, as Besen said in a recorded conversation, “Greenbacks speak.” Besen enlisted Schmidt to help him with the scheme by preparing paperwork for the genetic tests. In turn, Schmidt received kickbacks and bribes that were calculated based on the volume of genetic tests that Besen generated.
Even as the ongoing COVID-19 pandemic substantially reduced in-patient visits, Besen continued participating in the scheme because, as he was recorded saying, he wanted “greenbacks” to pay for his “pool house.”
As a result of the scheme, Medicare paid approximately $350,374 for genetic tests generated from Besen’s medical practice.
Conspiracy to violate the federal anti-kickback statute is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for March 16, 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; IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and U.S. Department of Health and Human Services, Office of Inspector General, Philadelphia Regional Office, under the direction of Special Agent in Charge Maureen Dixon, with the investigation leading to the charges. He also thanked the FBI Scranton Field Office, FBI Philadelphia Division, and the Pennsylvania Attorney General’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit and Executive Assistant U.S. Attorney Rahul Agarwal.
The charges against and allegations in the information pertaining to Besen are merely accusations, and he is presumed innocent unless and until proven guilty.
Bergen County Man Sentenced to 10 Years in Prison for Conspiring to Launder over $850,000Read the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 120 months in prison for conspiring to launder more than $850,000, which he believed was derived from the sale of narcotics, U.S. Attorney Craig Carpenito announced.
Bobbie L. Henderson III, 36, previously pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of conspiracy to launder monetary instruments. Judge Chesler imposed the sentence today by videoconference.
According to the documents filed in this case, and statements made in court:
From 2017 through May 23, 2019, Henderson conspired with others to launder the proceeds of narcotics distribution, with the intent to promote the distribution of narcotics. Henderson further admitted to possessing more than $850,000 in furtherance of this conspiracy. These funds were seized by law enforcement during the course of the investigation.
In addition to the prison term, Judge Chesler sentenced Henderson to three years of supervised release, fined him $20,000 and ordered forfeiture of $853,120.
U.S. Attorney Carpenito credited special agents and task force officers with the Drug Enforcement Administration, under the direction of Special Agent in Charge Raymond Donovan in New York, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Organized Crimes and Gang Unit.
South Jersey Doctor Charged in Health Care Fraud Billing SchemeRead the Press Release
CAMDEN, N.J. – A South Jersey doctor was charged in connection with his role in a longstanding billing fraud scheme, U.S. Attorney Craig Carpenito announced today.
Morris Antebi, 68, of Long Branch, New Jersey, is charged by complaint with three counts of health care fraud, wire fraud, and mail fraud for his role in the scheme. Antebi is scheduled to appear today by videoconference before U.S. Magistrate Judge Joel Schneider.
According to documents filed in this case and statements made in court:
Antebi, a physician specializing in pain management and anesthesia, owned and operated a pain management clinic chain with locations throughout South Jersey. Antebi was a participating provider in Medicare, Medicaid, and several private insurance plans. Between approximately 2014 through 2020, Antebi billed over $24.6 million for services he purportedly provided, including billing more than $15.3 million to Medicaid and more than $8 million to Medicare.
The investigation showed that Antebi engaged in various forms of billing fraud. For example, Antebi frequently billed Medicare, Medicaid, and private insurance companies on dates when travel records show he was overseas, including on trips to China, Israel, Turkey, the Dominican Republic, and across Europe, or when he was otherwise outside the State of New Jersey. Antebi billed approximately $230,700 to Medicaid, Medicare, and private insurance plans between November 2015 and January 2020 for services he purportedly rendered while he was traveling and not in the office.
The investigation also showed that Antebi billed for excessive billings for one-day periods of time. For example, Antebi billed insurance plans for more than 24 hours’ worth of services in a one-day period of time on more than 900 occasions between 2014 and 2020. Antebi also billed insurance companies for between 12 and 23.99 hours of purported services in a one-day period of time on more than 300 occasions. On certain occasions, law enforcement surveilled Antebi on days when he left the clinics early, but nevertheless billed as though he saw many patients on those days.
Despite these high billings, individuals interviewed during the investigation stated that Antebi commonly saw them for only very brief periods of time, and he often did not perform any medical exams or evaluations during their visits. Individuals also indicated that that there sometimes was no medical equipment or examination tables in the rooms at the clinics in which patients met with providers, and that patients sometimes met with providers on folding chairs in the hallway of the clinics.
The health care fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The wire fraud and mail fraud counts each carry a maximum penalty 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 agents of the FBI’s Atlantic City Resident Agency Health Care Fraud Task Force, 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 J. Lampert, the U.S. Department of Labor – Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark with the investigation leading to the criminal complaint. U.S. Attorney Carpenito also thanked agents of FBI’s Headquarters Health Care Fraud Unit Data Analysis Response Team under the direction of Special Agent Greg Heeb in Washington, D.C. and officers of the Northfield Police Department for their assistance with the case.
The government is represented by Assistant U.S. Attorneys Christina O. Hud and Daniel A. Friedman of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: TBD
Essex County Man Sentenced to 80 Months in Prison for Three Felon in Possession Charges, One in Connection with A ShootingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 80 months in prison for three felony charges in connection with his possession of firearms and ammunition on three different days in April and May of 2019, U.S. Attorney Craig Carpenito announced.
Samaad Kelly, a/k/a “Spud,” 33, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with two counts of being a felon in possession of a firearm and one count of being a felon in possession of ammunition. U.S. District Judge Brian R. Martinotti imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On April 24, 2019, officers from the Essex County Sheriff’s Office received information that Kelly was driving in Newark in a silver BMW with a temporary registration and was in possession of a firearm. The officers observed the BMW, which had a fictitious registration, and conducted a stop. Kelly, who was driving the BMW, could not provide the officers with any identification, registration, or proof of insurance. After conducting a search of the BMW, the officers located a Taurus semi-automatic 9 millimeter handgun in the glove box. The officers arrested Kelly, and Kelly remained in custody until May 2, 2019, when he was released on bail.
On May 7, 2019, officers from the Newark Police Department responded to a report of gun shots near Astor Street in Newark. Upon their arrival, they found one 9 millimeter discharged shell casing and one 9 millimeter round of live ammunition. The officers obtained video footage from surveillance cameras located nearby, which showed Kelly point and fire a black handgun in the direction of another individual.
On May 10, 2019, detectives from the Newark Police Department were patrolling a section of Newark in the vicinity of Astor and Brunswick streets. One of the detectives observed Kelly wearing a fanny pack that appeared to be heavily weighed down. When the detectives approached Kelly, he fled on foot. While running away from the detectives, Kelly unclipped the fanny pack and attempted to throw it over a fence. As he was throwing the fanny pack, he slipped and fell to the ground. The detectives apprehended Kelly, recovered the fanny pack, and found inside of it a Ruger 9 millimeter semi-automatic pistol, loaded with 10 rounds of ammunition. The detectives arrested Kelly.
In addition to the prison term, Judge Martinotti sentenced Kelly to 3 years of supervised release.
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 NCIS 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, with the investigation leading to today’s sentencing. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their work on the case.
The government is represented by Assistant U.S. Attorney Christopher D. Amore of the Government Fraud Unit in Newark.
Defense counsel: Lisa M. Mack Esq., Assistant Federal Public Defender, Newark
Bergen County Man Sentenced to 84 Months in Prison for Role in Cross-Country Drug Distribution SchemeRead the Press Release
NEWARK, N.J. –A Bergen County, New Jersey, man was sentenced today to 84 months in prison for his role in a scheme to transport more than 20 kilograms of cocaine from California to New Jersey, U.S. Attorney Craig Carpenito announced.
Irving Olivero-Pena, 48, a/k/a “Fausto Molina,” of Edgewater, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to Count One of an indictment charging him with conspiracy to possess with the intent to distribute five kilograms or more of cocaine. Judge McNulty imposed the sentence by videoconference today.
According to the documents filed in this case and statements made in court:
Olivero-Pena and co-defendants Melvin Feliz, 54, of Englewood Cliffs, New Jersey, and Robert Crawford, 45, of Long Island City, New York, each previously pleaded guilty to their roles in the scheme. They admitted that from January 2011 through March 2014, they conspired to purchase narcotics for distribution in New Jersey. On Oct. 22, 2012, they met a courier in Bergen County. They admitted that they gave the courier $549,950 in currency to transport to California via tractor trailer, where it would be used to purchase approximately 20 kilograms of cocaine. Afterwards, the courier would transport the cocaine to New Jersey for distribution. The currency was ultimately seized by law enforcement officers in California.
In addition to the prison term, Judge McNulty sentenced Olivero-Pena to 5 years of supervised release. Feliz was sentenced on Nov. 6, 2020, to 14 years in prison. Crawford was sentenced in July 2015 to 10 years in prison.
U.S. Attorney Carpenito credited special agents from the U.S. Drug Enforcement Administration (DEA), Newark Division, under direction of Special Agent in Charge Susan A. Gibson; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Defense counsel:
Olivero-Pena: David Touger Esq., New York
Feliz: Patrick Joyce Esq., New York
Crawford: Rubin Sinins Esq., Springfield, New JerseyBergen County Man Sentenced to 14 Years in Prison for Role in $7 Million Fraud Scheme and Cross-Country Drug Distribution SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 168 months in prison for using bogus litigation support companies to obtain millions from two law firms where his wife was a partner and for his role in a scheme to transport more than 20 kilograms of cocaine from California to New Jersey, U.S. Attorney Craig Carpenito announced.
Melvin Feliz, 54, of Englewood Cliffs, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit wire fraud and one count of tax evasion. He also previously pleaded guilty to Count One of an indictment charging him and two co-defendants with conspiracy to possess with the intent to distribute five kilograms or more of cocaine. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in these cases and statements made in court:
Feliz’s wife, Keila Ravelo, 55, also of Englewood Cliffs, worked as a partner at Law Firm 1 from July 1, 2005, through October 2010. She then joined Law Firm 2 as a partner and worked there from October 2010 through November 2014. Feliz admitted that during that time, Feliz and Ravelo formed two limited liability companies, Vendor 1 and Vendor 2, that purported to provide litigation support for both firms, but in fact provided no actual services.
Feliz admitted that from 2008 through July 2014, he and Ravelo controlled the Vendor 1 and Vendor 2 bank accounts and submitted invoices to Law Firm 1, Law Firm 2 and a client of both firms for work that was never performed. Ravelo, in her capacity as a partner at the law firms, approved payments to Vendor 1 and Vendor 2 that Ravelo and Feliz later used for personal expenses.
Over the course of the conspiracy, the law firms paid Vendor 1 and Vendor 2 approximately $7.8 million. Feliz admitted that he failed to report the income on his tax returns, including $2.36 million in illicit profits from 2012 alone.
Separately, Feliz and co-defendants Irving Olivero-Pena, 48, of Edgewater, New Jersey, and Robert Crawford, 45, of Long Island City, New York, each previously pleaded guilty to their roles in a cocaine distribution scheme. They admitted that from January 2011 through March 2014, they conspired to purchase narcotics for distribution in New Jersey. On Oct. 22, 2012, they met a courier in Bergen County. They admitted that they gave the courier $549,950 in currency to transport to California via tractor trailer, where it would be used to purchase approximately 20 kilograms of cocaine. Afterwards, the courier would transport the cocaine to New Jersey for distribution. The currency was ultimately seized by law enforcement officers in California.
In addition to the prison term, Judge McNulty sentenced Feliz to five years of supervised release and ordered forfeiture of $7.9 million. Restitution will be determined at a later date. Ravelo was sentenced in October 2018 to five years in prison. Crawford was sentenced in July 2015 to 10 years in prison. Olivero-Pena is scheduled to be sentenced Nov. 9, 2020.
U.S. Attorney Carpenito credited special agents from the U.S. Drug Enforcement Administration (DEA), Newark Division, under direction of Special Agent in Charge Susan A. Gibson; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Owner of New Jersey Scrap Metal Company Charged with $600,000 Fraud SchemeRead the Press Release
NEWARK, N.J. – The owner of a New Jersey-based scrap metal company has been arrested for allegedly orchestrating a scheme to defraud one of his customers, U.S. Attorney Craig Carpenito announced.
Creed White, a/k/a “Dan Stein,” 62, of Freeland, Maryland, is charged by complaint with four counts of wire fraud. White made his initial court appearance today by videoconference before U.S. Magistrate Judge Martin C. Carlson in Harrisburg, Pennsylvania, federal court.
According to documents filed in this case and statements made in court:
In early 2017, White contacted the victim through an internet message board and offered to sell the victim aluminum scrap metal. White introduced himself as “Dan Stein.” White’s company, American Scrap LLC, sold the victim 25 containers of aluminum scrap metal in exchange for wire payments totaling approximately $629,973. The containers were shipped to Korea. When the first container arrived at its destination, the victim discovered that the container contained dirt and debris and no aluminum scrap metal. The victim reached out to White to complain and met him in person in Newark in March 2017. White, posing as “Dan Stein,” assured the victim that he would correct the mistake and reimburse the victim for the costs incurred in connection with the container that contained useless waste.
Prior to shipping the next container, White sent the victim photos of the contents of the container. The photos showed that the container was filled with aluminum scrap. There was a copy of the New York Post inside the container to document the date the photos were taken. However, each of the remaining containers arrived in Korea was filled with dirt, debris or plastic waste, and no aluminum. White promised to make the victim whole and sent wire transfers to the victim in the amount of $15,000, but then failed to make good on his promise, causing the victim losses in excess of $600,000.
Each count of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss derived from the offense, 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 these charges.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office National Security 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.
New York Man Admits Credit and Gift Card Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted he defrauded credit card companies of hundreds of thousands of dollars, U.S. Attorney Craig Carpenito announced.
James Olla, 28, of Brooklyn, New York, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to one count of a superseding indictment charging him with conspiracy to sell, receive or possess stolen goods.
According to documents filed in this case and statements made in court:
From January 2014 through June 2015, Olla and others procured stolen information related to credit cards belonging to various individuals, including victims living in New Jersey. Using this stolen information, Olla and his conspirators obtained gift cards from various retailers and then sold the cards in Brooklyn and elsewhere, often for large sums of cash.
The count of conspiracy to sell, receive or possess stolen goods carries a maximum potential penalty of five years in prison. Sentencing is scheduled for March 18, 2021.
U.S. Attorney Carpenito credited special agents of FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; and the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s guilty plea.
The government is represented by Cybercrime Unit Chief David W. Feder and Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
Hunterdon County Man Sentenced to 10 Years in Prison for His Role in Plot to Distribute CocaineRead the Press Release
TRENTON, N.J. – A Hunterdon County, New Jersey, man was sentenced today to 120 months in prison for possession of cocaine with intent to distribute and conspiring to distribute five kilograms or more of cocaine, U.S. Attorney Craig Carpenito announced.
Javier Maldonado, 46, of Hampton, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine and one count of possession with intent to distribute over 500 grams of cocaine. Judge Thompson imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
In June 2019, Maldonado agreed with one or more other individuals to purchase 10 kilograms of cocaine. Law enforcement arrested Maldonado after he provided $280,000 to an individual to purchase the narcotics, which he intended to redistribute. A search of Maldonado’s residence revealed a large quantity of bulk cocaine, cutting agents, processing equipment, and packaging materials.
In addition to the prison term, Judge Thompson sentenced Maldonado to five years of supervised release.
U.S. Attorney Carpenito credited special agents with the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan in New York, with the investigation leading to these charges.
The government is represented by Assistant United States Attorney Shawn Barnes of the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force/Narcotics Unit.
Colorado Man Admits Securities and Tax Offenses Related to $722 Million Fraud SchemeRead the Press Release
NEWARK, N.J. – A Colorado man today admitted his role in a conspiracy to offer and sell unregistered securities and tax evasion in connection with a $722 million cryptocurrency mining scheme, U.S. Attorney Craig Carpenito announced.
Jobadiah Sinclair Weeks, 39, of Arvada, Colorado, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to Count Two of an indictment, charging him with conspiracy to offer and sell unregistered securities. Weeks also pleaded guilty to a separate information charging him with tax evasion for the tax years 2015 through 2018.
Weeks and four co-defendants – Matthew Brent Goettsche, Russ Albert Medlin, Catalin Balaci, and Joseph Frank Abel – were charged by indictment in December 2019 in connection with the scheme.
According to documents filed in this case and statements made in court:
From April 2014 through December 2019, the BitClub Network was a fraudulent scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools and rewarded investors for recruiting new investors into the scheme. Weeks operated as a large-scale promoter of the BitClub Network, and sold shares despite knowing that the BitClub Network and its operators did not file a registration statement with the U.S. Securities and Exchange Commission.
Weeks admitted taking money from investors in exchange for shares of the BitClub Network’s purported mining pools. He admitted that in order to promote shares, he created and posted videos to the internet and gave presentations and speeches about the BitClub Network throughout the United States and in numerous countries throughout the world. Weeks instructed investors in the United States to use a virtual private network, or “VPN,” to hide their U.S.-based IP addresses and evade detection and regulation by U.S. law enforcement.
Weeks also admitted not filing tax returns and failing to report at least $10 million in income, including cryptocurrency income earned from his association with the BitClub Network, for the tax years 2015 through 2018.
The conspiracy charge to which Weeks pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or loss to the victims. The tax charge to which Weeks pleaded guilty carries a maximum penalty of five years in prison and a fine of $100,000. Sentencing is scheduled for March 17, 2021.
U.S. Attorney Carpenito credited special agents and task force officers of the FBI Los Angeles Division’s West Covina Resident Agency, under the direction of Assistant Director in Charge Kristi K. Johnson; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark and special agents of the IRS Los Angeles Field Office, under the direction of Special Agent in Charge Ryan L. Korner, who conducted this investigation under the initiative of the Joint Chiefs of Global Tax Enforcement; the FBI Criminal Investigative Division, under the supervision of Assistant Director Calvin A. Shivers, and the Financial Crimes Section, under the leadership of Section Chief Steven Merrill; and members of the Ventura Police Department with the investigation leading to today’s guilty plea.
Anyone who believes they may be a victim may visit www.justice.gov/usao-nj/bitclub or the Department of Justice’s large case website www.justice.gov/largecases. Victims can find more information about the case, including a questionnaire for victims to fill out and submit.
The government is represented by Unit Chief David W. Feder, Assistant U.S. Attorneys Jamie L. Hoxie and Anthony P. Torntore of the Cybercrime Unit, and Unit Chief Sarah Devlin and Assistant U.S. Attorney Joseph Minish of the Asset Recovery and Money Laundering Unit, of the U.S. Attorney’s Office in Newark.
U.S. Attorney Carpenito Announces $2.9 Million in Grants to Combat Violent Crime in District of New JerseyRead the Press Release
NEWARK, N.J. –U.S. Attorney Craig Carpenito today announced more than $2.9 million in Department of Justice grants to fight and prevent violent crime in the District of New Jersey. The grants, awarded by the Department’s Office of Justice Programs, are part of more than $458 million in funding to support state, local and tribal law enforcement efforts to combat violent crime in jurisdictions across the United States.
“One of the fundamental missions of government is to protect its citizens and safeguard the rule of law,” said Attorney General William P. Barr. “The Department of Justice will continue to meet this critical responsibility by doing everything within its power to help our state, local and tribal law enforcement and criminal justice partners fight crime and deliver justice on behalf of all Americans.”
“Combatting violent crime has been a top priority of our office,” U.S. Attorney Carpenito said. “It’s a job that requires resources and cooperation among all levels of law enforcement. We have worked incredibly hard to develop strategies that allow us to combine the efforts of our local, state and federal partners to keep our citizens safe. The grants announced today will provide us with additional tools in that effort.”
The funding announced today continues the Justice Department’s commitment to reducing crime and improving public safety. Recent data from the FBI and the Bureau of Justice Statistics for 2019 show a drop in crime and serious victimization for the third year in a row. However, a number of cities are experiencing conspicuous countertrends. Today’s grants will bolster crime-fighting efforts in those communities and in jurisdictions throughout the United States.
“Violence has become a tragic reality in too many of America’s communities,” OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan said. “Working with officials across the Trump Administration and with thousands of state, local and tribal crime-fighters across the country, the Department of Justice is leading the response to this urgent challenge. OJP is pleased to make these resources available to support innovative, tested and diverse solutions to violent crime.”
Of the more than $458 million awarded nationwide, OJP’s Bureau of Justice Assistance (BJA) made 1,094 grants totaling more than $369 million to support a broad range of initiatives, including efforts in enforcement, prosecution, adjudication, detention and rehabilitation.
OJP’s Office of Juvenile Justice and Delinquency Prevention awarded more than $10 million across 24 jurisdictions to intervene in and suppress youth gang activity as well as $1 million to the Institute for Intergovernmental Research to continue operating the National Gang Center. OJP’s National Institute of Justice awarded $7.8 million to fund research and evaluation on the prevention and reduction of violent crime. OJP’s Bureau of Justice Statistics provided more than $69 million to strengthen the quality and accessibility of records within the National Instant Criminal Background Check System.
The following organizations received funding:
BJA Community-Based Crime Reduction
CBCR leverages community knowledge and expertise to focus enforcement efforts on
crime “hot spots” ‒ neighborhoods where crime is concentrated. To generate long-term impacts, the program addresses a range of challenges.
- Newark Community Street Team, $915,000
BJA Strategies for Policing Innovation
Through SPI, BJA works with state and local law enforcement agencies and researchers to identify innovative and evidence-based strategies to tackle chronic crime in their jurisdictions.
- City of Atlantic City, $699,990
BJA Innovative Prosecution Solutions for Combatting Violent Crime
The program provides state, local and tribal prosecutors with resources, training and technical assistance to implement technology and develop strategies and programs to address and prosecute individuals who commit violent crime.
- Cumberland County, $135,000
OJJDP Gang Prevention, Intervention, and Suppression
More than $10 million was awarded to 24 jurisdictions under OJJDP’s Comprehensive Anti-Gang Programs for Youth. These programs provide funding for communities to develop youth gang intervention or suppression programs that aim to reduce violence.
Category I: Intervention
- Cumberland County, $499,791
National Criminal History Improvement Program
NCHIP enhances the quality, completeness, and accessibility of criminal history record information to state, territory and federal systems used by the NICS and ensures the nationwide implementation of criminal justice and noncriminal justice background check systems.
- N.J. Department of Law and Public Safety, $666,616
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov
Leader of Atlantic City Drug Trafficking Organization Sentenced to 135 Months in PrisonRead the Press Release
CAMDEN, N.J. – The leader of an Atlantic City drug-trafficking organization was sentenced today to 135 months in prison for conspiring to distribute one kilogram or more of heroin, U.S. Attorney Craig Carpenito announced.
Khalif Toombs, 31, of Egg Harbor Township, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin. Judge Kugler imposed the sentence today in Camden federal court.
Toombs guilty plea was charged as part of a federal drug investigation that culminated in the arrest of 22 individuals. Thirteen other members of the drug trafficking conspiracy – Wilbert Toombs, Quadir Stanley, Dean Johnson, Khalif Davis, Joseph Aversa, Thomas Randall, Mayda Hernandez, Sarah Taliaferro, James Blackwell, Philip Surace, Nasir Brown, Karon Carey, and David Ramirez – previously pleaded guilty to their respective roles in the conspiracy. Eight other defendants have been indicted for their roles in the conspiracy and their cases remain pending.
According to documents filed in the case and statements made in court:
Toombs and other members of the drug conspiracy trafficked heroin from Paterson, New Jersey, into Atlantic City, New Jersey. Toombs admitted in court to conspiring with others to traffic between three and 10 kilograms of heroin during the period of the investigation and to being a manager and supervisor of the drug trafficking conspiracy, which operated throughout Atlantic County. An investigation led by the FBI used physical and video surveillance, confidential informants, consensual recordings, and two court-authorized wiretaps to uncover the operation. The investigation tracked multiple stamps of heroin being distributed by Toombs and others, including, “AK-47,” “Apple,” “Fortnite,” “Rolex,” “Frank Lucas,” “Bentley,” “Pandora,” and “9 ½.” Between Jan. 1, 2017, and June 21, 2019, these stamps have accounted for 48 deaths and 84 non-fatal overdoses in New Jersey.
In addition to the prison term, Judge Kugler sentenced Toombs to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI’s Safe Streets South Jersey Violent Incident and Gang Task Force, Atlantic City Resident Agency, and FBI, Newark, under the direction of Special Agent in Charge George M. Crouch Jr.; officers of the Atlantic City Police Department, under the direction of Chief James Sarkos; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Atlantic County Sheriff’s Department, under the direction of Sheriff Eric Scheffler; and the Pleasantville Police Department, under the direction of Chief Sean Riggin, with the investigation leading to today’s sentencing. He also thanked the U.S. Department of Homeland Security, Homeland Security Investigations; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the N.J. State Police for their assistance.
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.
The government is represented by Assistant U.S. Attorney Martha K. Nye of the U.S. Attorney’s Office Criminal Division in Trenton.
For the eight defendants whose charges remain pending, the charges and allegations are merely accusations, and they are presumed innocent unless and until proven guilty.
Gloucester County Man Admits Sexual Exploitation of Children and Distribution of Child PornographyRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man pleaded guilty today to producing and distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Andrew Nicholas, 24, of Williamstown, New Jersey, entered a guilty plea before U.S. District Judge Robert B. Kugler to an information charging him with one count of sexually exploiting children and one count of distributing child pornography.
According to documents filed in this case and statements made in court:
On Feb. 26, 2019, an undercover officer entered a public Kik Messenger group and began communicating with Nicholas, who sent the officer images of child sexual abuse involving a prepubescent minor. Nicholas admitted to producing those images of child sexual abuse and sending them to the officer through Kik Messenger.
The count of sexually exploiting children carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 50 years in prison and a $250,000 fine. The distribution of child pornography count carries a mandatory minimum penalty of five years in prison, a maximum possible penalty of 40 years in prison and fine of $250,000 per count. Sentencing is scheduled for March 9, 2021.
U.S. Attorney Carpenito credited special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge Michael J. Driscoll, and the Washington, D.C., FBI Field Office, under the direction of Assistant Director in Charge Steven D’Antuono, with the investigation leading to today’s guilty plea. This case was initiated by the FBI, Washington Field Office’s Child Exploitation and Human Trafficking Task Force and worked in partnership with the FBI, Philadelphia Field Office, and local assisting agencies.
The government is represented by Assistant U.S. Attorney Martha Nye of the U.S. Attorney’s Office Criminal Division in Trenton.
Former Jersey City Board of Education President and Acting Executive Director of Jersey City Employment and Training Program and Associate Charged with Embezzlement, Money Laundering and FraudRead the Press Release
NEWARK, N.J. – The former president of the Jersey City Board of Education (JCBOED) and former Acting Executive Director of the Jersey City Employment and Training Program (JCETP) and an Ocean County, New Jersey, attorney were indicted today for embezzlement, money laundering, and fraud in connection with multiple criminal schemes, U.S. Attorney Craig Carpenito announced.
The former president of the Jersey City Board of Education (JCBOED) and former Acting Executive Director of the Jersey City Employment and Training Program (JCETP) and an Ocean County, New Jersey, attorney were indicted today for embezzlement, money laundering, financial fraud in connection with multiple criminal schemes, U.S. Attorney Craig Carpenito announced.
Sudhan M. Thomas, 45, of Jersey City, New Jersey, was charged in a 26-count indictment with embezzling funds from JCETP, an organization receiving federal funds (Count 1), and wire fraud (Counts 2 to 6) and money laundering (Counts 7 to 9) in connection with the JCETP theft. In connection with other schemes, Thomas was charged with wire fraud for embezzling money from his 2016 JCBOED campaign (Count 10); wire fraud for embezzling money from his 2019 JCBOED campaign (Counts 11 and 12); bank fraud for stealing checks issued by and to another JCBOED candidate’s campaign in 2018 (Counts 13 and 14); and mail and wire fraud for schemes to defraud two separate Florida companies (Counts 15 to 26). Thomas was charged by criminal complaint in January 2020 with embezzling funds from JCETP and was released on a $75,000 unsecured bond.
Paul H. Appel, 78, of Point Pleasant, New Jersey, also is charged as Thomas’ accomplice in Counts 1, 7 to 10, and 15 to 26 of the indictment.
According to documents filed in this case and statements made in court:
Thomas served as JCETP’s acting executive director from January 2019 until his resignation in July 2019. JCETP is a nonprofit organization that operates to assist Jersey City residents to prepare for and enter the workforce. JCETP received substantial amounts of funding from federal grants from the U.S. Department of Labor and the U.S. Department of Housing and Urban Development.
Using his access to JCETP funds and control of JCETP’s bank accounts, from March 2019 through July 2019, Thomas embezzled more than $45,000 from JCETP. Thomas caused checks to be drawn from JCETP accounts that were made payable to others, but ultimately received by Thomas or used to pay his debts and expenses. For example, Thomas caused certain checks to be issued to Appel, who is an attorney, and Appel then redirected the funds to Thomas, including by issuing checks made payable to Next Glocal, an entity for which Thomas was a director, which were then deposited into a bank account for Next Glocal that Thomas controlled. Thomas also embezzled JCETP funds by issuing JCETP checks made out to cash that Thomas either cashed himself or used to obtain bank checks that Thomas made payable to Next Glocal, which were deposited into a bank account for Thomas’ personal use.
Thomas ran for and was elected to a seat on the JCBOED in 2016, ultimately serving as vice president and then president of the JCBOED. Appel served as treasurer for Thomas’s 2016 campaign. From September 2016 to November 2016, Thomas and Appel collected campaign contributions and deposited them into a bank account opened for the 2016 campaign that they both controlled. Under the guise of collecting repayments for loans to the campaign or reimbursement for other purported campaign-related expenses, Thomas and Appel embezzled more than $8,000 from Thomas’s 2016 campaign for their own personal use.
Thomas ran for re-election to the JCBOED in 2019. From June 2018 to August 2019, Thomas collected campaign contributions and deposited them into two bank accounts opened for the 2019 campaign. Under the guise of collecting repayments for loans to the campaign, Thomas embezzled approximately $6,000 from the 2019 campaign by causing checks to be issued from the campaign bank accounts made payable to Thomas, and then cashed those checks or deposited them into a bank account for Thomas’s personal use.
In November 2018, Thomas informally advised a candidate in the 2018 JCBOED election. He falsely represented to that candidate’s campaign that he required $100 checks to pay eight separate individuals who worked on the candidate’s campaign. When the campaign provided Thomas with the requested checks, Thomas fraudulently endorsed the checks and deposited them into a bank account for his personal use. In addition, Thomas obtained a $1,000 contribution check made payable to the candidate’s 2018 campaign committee; Thomas fraudulently endorsed that check and deposited it into a bank account for his personal use.
In 2016, Thomas and Appel entered into an agreement with a Florida-based technology company to purportedly expand the company’s business through a debit card program. Between May 2016 and October 2016, Thomas and Appel made false representations regarding work they were allegedly undertaking pursuant to the agreement and induced the technology company to wire them a total of $48,500. Thomas and Appel ultimately diverted the company’s funds to their own bank accounts and used them to pay personal expenses (including payments to Thomas’ landlord, tuition for Thomas’s relative, and payments for Appel’s credit and debit card expenses) without providing any meaningful services or generating any business as required under the agreement, or spending any substantial parts of the funds provided by the technology company towards fulfilment of the agreement.
In 2016, Thomas and Appel entered into another agreement with a Florida-based housing company in connection with the purported sale of modular homes to veterans and the homeless. Between October 2016 and April 2017, Thomas and Appel made false representations regarding work they would undertake pursuant to the agreement in order to collect monthly $2,000 payments from the housing company. The housing company made five $2,000 payments to Thomas and Appel between November 2016 and March 2017. Thomas and Appel misappropriated the funds without providing any meaningful services or generating any business as required under the agreement, or spending any substantial part of the funds towards fulfilment of the agreement.
The charges in the indictment carry the following maximum penalties:
Offenses Charged
Maximum Term of Imprisonment
Maximum Fine
Theft from a federally-funded organization
10 years
$250,000
Wire fraud
20 years
$250,000
Mail fraud
20 years
$250,000
Bank fraud
30 years
$1 million
Money laundering
20 years
$500,
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the Special Prosecutions Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Salem County Man Charged with Being Felon in Possession of WeaponRead the Press Release
CAMDEN, N.J. – A Salem County, New Jersey, man made his initial appearance today after being charged with illegally possessing a handgun, U.S. Attorney Craig Carpenito announced.
Donyell M. Stewart, 48, of Salem, New Jersey, is charged by complaint with one count of possession of a firearm and ammunition by a convicted felon. He appeared by videoconference before U.S. Magistrate Judge Ann Marie Donio and was detained pending a bail hearing next week.
According to documents filed in this case:
On Aug. 31, 2020, an officer with the Salem County Sheriff’s Office attempted to conduct a stop of Stewart’s car after a 911 caller reported that Stewart’s car fled from a car accident. Stewart disregarded the officer’s signals to stop and proceeded to drive multiple blocks before pulling into the parking lot of a laundromat. Stewart exited his car with a brown handbag, from which officers later recovered a Springfield Armory XD .40 caliber pistol loaded with 10 rounds of ammunition, as well as 5.5 ounces of suspected cocaine and drug paraphernalia. Stewart has at least five prior New Jersey felony convictions for controlled substance offenses, including a New Jersey conviction for being the leader of a narcotics trafficking network.
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.
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 charge. He also thanked the Salem City Police Department, under the direction of Chief John A. Pelura, III; the Salem County Sheriff’s Office, under the direction of Sheriff Charles M. Miller; 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 Jeffrey Bender of the U.S. Attorney’s Office in Camden.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Admits Role in Fentanyl Distribution ConspiracyRead the Press Release
CAMDEN, N.J. – A Philadelphia man today admitted his role in a fentanyl distribution conspiracy, U.S. Attorney Craig Carpenito announced.
Jonathan Rivera Pagan, 37, pleaded guilty by videoconference before U.S. District Judge Noel L. Hillman to an information charging him with conspiring to distribute and possess with intent to distribute 400 grams or more of fentanyl.
According to documents filed in this case and statements made in court:
In early 2020, Rivera Pagan and his conspirator, Ronal Alberto Hernandez Pinales, met and communicated about fentanyl trafficking and firearms. On March 2, 2020, Rivera Pagan and Hernandez Pinales arranged to deliver fentanyl to another individual.
On March 2, 2020, Rivera Pagan and Hernandez Pinales drove separately to the parking lot of a building in Gloucester County to conduct the planned fentanyl transaction. Shortly thereafter, Rivera Pagan and Hernandez Pinales fled from the parking lot, after seeing what they believed to be law enforcement presence in the area. Rivera Pagan was later arrested in the parking lot of a nearby bar, and Hernandez Pinales was arrested near a highway. Law enforcement officers recovered approximate 900 grams of fentanyl from Hernandez Pinales’ car, as well as cellphones from Rivera Pagan and Hernandez Pinales that contained drug-related communications.
The charge to which Pagan pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of life in prison and a fine of up to $10 million. Sentencing is scheduled for March 5, 2021.
U.S. Attorney Carpenito credited special agents and task force officers with the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s plea. He also thanked the Gloucester County Prosecutors Office, the East Greenwich Police Department, and the N.J. State Police Canine Tactical Applications Group for their assistance.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
The count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl against Hernandez Pinales remains pending, and he is presumed innocent unless proven guilty.
Passaic County Man Admits Assault with a Dangerous Weapon at Delaware Water GapRead the Press Release
TRENTON, N.J. – A Passaic County, New Jersey, man today admitted to assaulting with a dangerous weapon two people who were swimming in the Delaware River, U.S. Attorney Craig Carpenito announced.
Jeffrey A. Mulcahy, 58, of Wayne pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of assault with a dangerous weapon with intent to do bodily harm.
According to documents filed in this case and statements made in court:
On Sept. 2, 2019, two individuals (Victim 1 and Victim 2) were swimming in the Delaware River in the Kittatinny Point area of the Delaware Water Gap in Warren County, New Jersey. Mulcahy approached them and began speaking to them about fishing. After a few minutes, Mulcahy departed the area, returning approximately 15 minutes later, holding a can of beer. He continued to talk to Victim 1 and Victim 2 about fishing, however, Mulcahy appeared agitated. Victim 1 and Victim 2 had gotten out of the river and were standing near the riverbed. Mulcahy removed what appeared to be a handgun from his waistband and pointed it at Victim 2’s head. While pointing the gun at Victim 2, Mulcahy ordered Victims 1 and 2 to the ground. Mulcahy then pointed the gun at Victim 1 and stated that he was going to kill Victim 1 if Victim 1 did not listen to him. Mulcahy struck Victim 1 in the head and neck area with the handgun. Mulcahy then began pulling rope out of his pocket and attempted to get Victim 1’s hands behind Victim 1’s back. Victim 1 resisted and was able to take Mulcahy to the ground, where the two began a physical struggle. Mulcahy’s handgun fell to the ground and Victim 2 recovered it and left to contact law enforcement. After the brief physical altercation, Victim 1 ran off to a nearby picnic area to locate Victim 2. Mulcahy departed the area and was later apprehended by law enforcement officers in Hackettstown, New Jersey. Subsequent investigation of the handgun that Victim 2 recovered from Mulcahy revealed that it was a pellet gun.
The charge of assault with a dangerous weapon with intent to do bodily harm carries a maximum punishment of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for March 4, 2021.
U.S. Attorney Carpenito credited park rangers of the U.S. National Park Service, under the direction of Chief Ranger Eric Lisnik, the Hackettstown Police Department, under the direction of Chief James A. Macaulay, and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo, Deputy Chief of the Criminal Division in Newark.
Doctor Admits Role in Illegal Kickback SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, doctor today admitted participating in a conspiracy to violate the federal anti-kickback statute, U.S. Attorney Craig Carpenito announced.
Mark A. Filippone, 72, of Wallington, New Jersey, pleaded guilty today by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with conspiring to violate the anti-kickback statute with three individuals: Joseph Vangelas, a/k/a “Joseph Miller,” 34, of Fort Lee, New Jersey; Marlene Vangelas, 59, of River Vale, New Jersey; and Zachary Ohebshalom, 34, of Fort Lee, New Jersey. Criminal charges against Miller and Marlene Vangelas remain pending. Ohebshalom previously pleaded guilty for his role in the conspiracy, and Estela Blaustein, 55 of Mahwah, New Jersey, also previously pleaded guilty for her role in a related conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Beginning in May 2016, Filippone participated in a kickback conspiracy scheme to obtain millions of dollars in health benefits from the federal workers’ compensation program by prescribing and dispensing expensive, but medically unnecessary, pain creams. Filippone treated hundreds of now-former U.S. Postal Service employees for injuries they purportedly suffered on the job. He allegedly facilitated their disability claims by submitting forms and medical reports to the Department of Labor, Office of Workers’ Compensation Program, for patients who were not, in fact, disabled.
Filippone also prescribed expensive topical pain creams, which were not needed or wanted by many of his patients. Filippone steered these prescriptions to a pharmacy in Fair Lawn, New Jersey, which was owned and operated by Miller and Marlene Vangelas. Miller and Marlene Vangelas, along with Ohebshalom, directed pharmacy employees to mine reimbursement rates within the federal workers’ compensation program for the ingredients of the pain creams in order to determine the most lucrative formulations. Miller, Marlene Vangelas, and Ohebshalom also directed pharmacy employees to print prescription labels for Filippone to use with his patients. Filippone used the pre-printed labels and sent the prescriptions back to the Fair Lawn Pharmacy. In order to induce Filippone to prescribe the medically unnecessary pain creams in the exact formulations they wished to obtain, Miller and Marlene Vangelas orchestrated the purchase of Filippone’s medical office and then permitted Filippone to continue to use the premises, for which he routinely failed to pay rent. Miller, Marlene Vangelas, and Ohebshalom conspired to leverage the property to force Filippone to continue to send prescriptions to their pharmacy. Filippone continued to feed prescriptions to the pharmacy, so long as Miller and Vangelas permitted him to remain rent-free in the property.
The count of conspiracy to violate the federal anti-kickback statute is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for March 3, 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; the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge of the Northeast Area Field Office Matthew M. Modafferi; the Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Joshua L. Haber and Nicole F. Mastropieri of the Health Care Fraud Unit in the Criminal Division, Newark.
The charges and allegations in the information pertaining to Miller and Marlene Vangelas are merely accusations, and they are presumed innocent unless and until proven guilty.
Bank Employee Arrested, Three Other Individuals Admit Guilt, in $8 Million Bank Fraud and Bribery SchemeRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was arrested and three co-defendants pleaded guilty today in connection with a conspiracy to commit bank fraud and bank bribery, U.S. Attorney Craig Carpenito announced.
Kurt Phelps, 52, of Flanders, New Jersey, was charged by complaint with one count of conspiracy to commit bank fraud and one count of bank bribery. He made his initial appearance by videoconference today before U.S. Magistrate Judge Mark Falk and was released on $100,000 unsecured bond.
Three co-defendants pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to their respective roles in the scheme: Douglas Arbolino, 59, of Central Valley, New York, and Gary Swenson, 59, of Hardyston, New Jersey, each pleaded guilty to informations charging them with one count of conspiracy to commit bank fraud and one count of bribery of a bank official; and John Scott Brink, 59, of Jackson, New Jersey, pleaded guilty 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 2013 through 2019, Phelps, Arbolino, Swenson, and Brink, conspired to defraud Victim Bank-1, Phelps’s employer. The defendants obtained millions of dollars of credit from Victim Bank-1 for Starnet Business Solutions Inc. (Starnet), a now-defunct New Jersey-based printing company where Arbolino, Swenson, and Brink worked. Arbolino, Swenson, and Brink paid Phelps large cash bribes in connection with the fraud scheme
In 2013, Starnet provided materially false financial information to Victim Bank-1 and received a line of credit. Brink sent Victim Bank-1 inflated accounts receivable information, and Arbolino and Swenson provided other materially false financial information, such as semi-annual financial reports. Victim Bank-1 not only allowed Starnet to maintain the line of credit, it increased the credit available at various times. By 2018, the line of credit available to Starnet was worth approximately $8 million, and Starnet has not repaid it.
Phelps was aware that financial information Starnet provided to Victim Bank-1 was materially false. Phelps coached Starnet on how to defraud Victim Bank-1. Phelps would review draft financial information for Starnet and provide feedback on how his conspirators should falsify the information before submitting it. Phelps also worked to ensure that Victim Bank-1 did not detect the fraud scheme by helping Starnet avoid audits and other quality control measures employed by Victim Bank-1.
Phelps solicited large cash bribes – tens of thousands of dollars at a time – from Starnet in connection with the fraud scheme. Arbolino, Swenson, and Brink pooled cash to pay Phelps bribe payments, which were hand-delivered, and totaled hundreds of thousands of dollars.
The conspiracy to commit bank fraud, bribery of a bank official, and bank bribery charges each carry a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
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 arrest and guilty pleas.
The government is represented by Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit.
The charges and allegations in the complaint against Phelps are merely accusations, and he is presumed innocent unless and until proven guilty.
Union County Man Charged with Additional Counts of Coercing and Enticing Victims for Purpose of ProstitutionRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted a Union County, New Jersey, man for allegedly persuading, inducing and enticing numerous female victims, usually commercial sex workers, to travel in interstate or foreign commerce to engage in prostitution and other sexual acts, often by use of force, violence and threats, U.S. Attorney Craig Carpenito announced.
Jose Torres, 43, of Elizabeth, New Jersey, was charged in a second superseding indictment with his fifth and sixth counts of coercing and enticing commercial sex workers, and will be arraigned on those counts on a date to be determined. Torres was originally charged by complaint in February 2020 with two counts of coercing and enticing commercial sex workers. On May 29, 2020, he was indicted on three counts, including a third count involving another victim. On July 31, 2020, he was indicted on a fourth count involving another victim.
According to the documents filed in this case and statements made in court:
From May 2015 to October 2019, Torres persuaded, induced and enticed female victims, often commercial sex workers, to travel from various out of state locations, including Canada, New York, and Pennsylvania, in order to engage in prostitution with him. In each instance, Torres lured a female victim to New Jersey with promises of large payments. In three of the previously charged instances, when the victim asked for payment, Torres became aggressive, often assaulting and raping victim. Torres never paid the women. The two recently charged counts involve allegations that in December and November of 2015, Torres lured Victim-5 and Victim-6, respectively, to travel from New York to New Jersey to engage in prostitution.
The coercion and enticement charge carries a maximum term of 20 years in prison and a fine of up to $250,000 fine for each count.
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 Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Emma Spiro of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations against Torres are merely accusations, and he is presumed innocent unless and until proven guilty.
Texas Man Sentenced to Two Years in Prison for Role in Heroin and Fentanyl ConspiracyRead the Press Release
TRENTON, N.J. – A Texas man was sentenced today to 24 months in prison for conspiring to distribute heroin, fentanyl and methamphetamine, U.S. Attorney Craig Carpenito announced.
Juan Macias Prieto, 53, of El Paso, Texas, previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and five grams or more of methamphetamine, and one count of possession with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and five grams or more of methamphetamine. Judge Thompson imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
On Sept. 17, 2019, Macias Prieto conspired with others to distribute narcotics. Macias Prieto, a commercial truck driver, transported approximately 21 kilograms of narcotics into New Jersey with the intent to distribute the narcotics to conspirators.
In addition to the prison term, Judge Thompson sentenced Macias Prieto to three years of supervised release.
U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan in New York, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Owner of Wildwood Crest Pizza Restaurant Sentenced to 15 Months in Prison for Filing False Income Tax ReturnsRead the Press Release
CAMDEN, N.J. – The owner of a Wildwood Crest, New Jersey, pizzeria was sentenced today to 15 months in prison for filing false income tax returns, U.S. Attorney Craig Carpenito announced.
Giuseppe D’Arancio, 61, of Cape May Court House, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with five counts of filing a false income tax return for tax years 2012 through 2016. Judge Rodriguez imposed the sentence today in Camden federal court.
According to the documents filed in this case and statements made in court:
D’Arancio and another individual owned and operated a pizzeria and kept two sets of accounting books. For tax years 2012 through 2016, D’Arancio knowingly filed false tax returns which underreported the pizzeria’s taxable income by approximately $1.2 million. As a result, D’Arancio failed to pay more than $425,000 in income taxes.
In addition to the prison term, Judge Rodriguez sentenced D’Arancio to one year of supervised release and ordered him to pay $507,246 in restitution to the IRS.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney's Office Criminal Division in Camden.