District of New Jersey

CAMDEN, N.J. – KeyBank National Association (“Key Bank), headquartered in Cleveland, Ohio, has entered into a settlement agreement with the United States resolving allegations that the bank violated the False Claims Act by submitting for forgiveness fraudulent loans from the Paycheck Protection Program (PPP), which one of its branch managers had fraudulently conspired to obtain, Senior Counsel Philip Lamparello announced today.

“The Paycheck Protection Program was designed to support small businesses during the pandemic, not to enrich insiders. This resolution holds KeyBank accountable for submitting forgiveness claims it had compelling evidence were fraudulent, makes taxpayers whole, and reinforces our Office’s commitment to holding both individuals and institutions responsible for fraud.”

- Senior Counsel Philip Lamparello

According to the contentions of the United States contained in the settlement agreement:

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses.

Tommy Hawkins was a bank manager at the Conshohocken Branch of Key Bank.  In 2020 and early 2021, he worked with his co-conspirators to recruit individuals who owned companies with little or no actual operations to open bank accounts and apply for PPP loans at the bank branch that Hawkins managed. Hawkins helped the recruited individuals submit PPP loan applications that contained materially false representations about the companies’ number of employees and payroll expenses. The applications also included false documentation, including tax forms. Hawkins facilitated approximately four dozen applications, for which the Small Business Association (“SBA”) paid nearly $6 million.  Before Key Bank became aware of the scheme, Hawkins received incentive compensation through the bank related to opening new business bank accounts for the companies that received fraudulent PPP loans. In doing so, he violated Key Bank’s policies.

In spring 2021, Key Bank detected suspicious patterns in Hawkins’ origination of new business accounts.  After an internal investigation, Key Bank disclosed to the SBA its concerns with eighteen loans Key identified as potentially fraudulent. Over the ensuing months, Key Bank’s investigations identified approximately a dozen additional loans that were likely fraudulent, and it disclosed those to the SBA. Key Bank did not investigate or otherwise detect fraud in the remaining seventeen loans to Fraudulent PPP Borrowers that Hawkins facilitated during that time.  Notwithstanding its concerns with the loans, Key Bank submitted forgiveness applications or guaranty purchase forms to the SBA for all forty-eight loans.  Because each individual loan was below $150,000, SBA granted that forgiveness on an expedited basis.

Key Bank cooperated in the investigation of Hawkins’ misconduct, and the settlement reflects that cooperation.  Key Bank has agreed to pay $7,770,595.25 to resolve claims under the civil False Claims Act and CARES Act.

“Today’s settlement of $7.7 million holds Key Bank accountable for violating the False Claims Act. This settlement resolves allegations that the bank submitted fraudulent loan applications for forgiveness under the Paycheck Protection Program. The bank did so, despite having concerns about the origination of many of the loans,” said Special Agent in Charge Patricia Tarasca, of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), New York Region. “The FDIC OIG remains committed to working with our law enforcement partners to investigate fraud that occurred in the Paycheck Protection Program, and other instances of fraud that threaten to undermine the integrity of our Nation’s financial institutions.”

In addition to civil settlement, the U.S. Attorney’s Office Criminal Division previously charged seven individuals as part of the criminal conspiracy.  On May 28, 2024, Tommy Hawkins pleaded guilty to an Information charging him with one count of conspiracy to commit bank fraud.  In October 2024, Hawkins was sentenced to 65 months’ imprisonment. 

On July 5, 2023, William Ingram pleaded guilty to an Information charging him with conspiracy to commit bank fraud.  He has not yet been sentenced.

On July 10, 2023, Yasha Barjona pleaded guilty to an Information charging him with conspiracy to commit bank fraud.  He has not yet been sentenced.

On July 17, 2024, Lisa Smith pleaded guilty to an Information charging her with conspiracy to commit bank fraud.  She has not yet been sentenced.

On May 23, 2024, Sieff Robert Sargeant pleaded guilty to an Information charging him with money laundering by transacting in criminal proceeds. On October 3, 2024, he was sentenced to 6 months’ imprisonment and 6 months of home detention with location monitoring.

On April 17, 2024, Eric Rivera was indicted on one count of bank fraud conspiracy, three counts of bank fraud, one count of wire fraud conspiracy, two counts of wire fraud, one count of money laundering conspiracy, and eight counts of money laundering.

Also on April 17, 2024, James Wessels was indicted on with one count of bank fraud conspiracy, three counts of bank fraud, and one count of money laundering conspiracy.

The charges and allegations contained in the Indictment against Eric Rivera and James Wessels are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Senior Counsel Lamparello credited with the investigation special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, New York Region, under the direction of Special Agent-in-Charge Patricia Tarasca; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs in Philadelphia; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Corwin Rattler; and special agents and attorneys of the Small Business Administration, Office of Inspector General, under the direction of Supervisory Criminal Investigator Angelo Palmeri in New York.

The government is represented by Assistant U.S. Attorney Paul W. Kaufman of the Health Care Fraud and Opioid Enforcement Unit.  The government is represented in the parallel criminal investigation by former Assistant United States Attorney Daniel A. Friedman and Attorney-in-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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Counsel for Key Bank: Justin Herdman, Adam Hollingsworth, and Brittany Wilhelm, Jones Day, Cleveland, OH

A former New York-based employee of TD Bank N.A, Wilfredo Aquino, pleaded guilty today to facilitating a money laundering network’s movement of hundreds of millions of dollars through TD Bank accounts.

“The defendant leveraged his position at TD Bank and facilitated the criminal activity of a money laundering network that moved hundreds of millions of dollars through the bank’s accounts,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “During the illicit scheme, the defendant evaded reporting requirements to hide the identity of the leader of the money laundering network. The Criminal Division is fully committed to rooting out money-laundering networks and their facilitators that exploit the security and stability of our country’s banking system.”

“Aquino helped criminals launder money from inside TD Bank,” said Senior Counsel Philip Lamparello for the Criminal and Special Prosecutions Division of the U.S. Attorney’s Office for the District of New Jersey. “Bank employees are the first line of defense against money laundering, fraud, and other financial crimes. When bank employees ignore their obligations and instead use their positions to commit crimes and line their own pockets, we will not hesitate to hold them accountable.”

“Wilfredo Aquino’s position at TD Bank required him to report suspicious customer activity and adhere to robust anti-money laundering regulations,” said Special Agent in Charge Jenifer L. Piovesan of the IRS Criminal Investigation (IRS-CI) Newark Field Office. “Instead, he turned a blind eye to complying with the law and prioritized enriching himself. IRS-CI will continue working with our law enforcement partners to investigate individuals taking advantage of our financial system through criminal activity.”

Aquino, 47, of New York, pleaded guilty to a one-count information charging him with conspiring to launder monetary instruments. He is scheduled to be sentenced on May 12.

According to court filings, beginning in 2019 and continuing until February 2021, Aquino, then a TD Bank assistant store manager, leveraged his position to facilitate a money laundering network’s movement of hundreds of millions of dollars through TD Bank accounts. During that time, the leader of the network, Da Ying Sze, also known as David, and his co-conspirators (collectively known as David’s Network) moved approximately $474 million through TD Bank accounts by depositing cash at TD Bank stores in New York, New Jersey, and elsewhere. In February 2022, David pleaded guilty to coordinating a $653 million money laundering conspiracy, operating an unlicensed money transmitting business, and bribing bank employees in connection with financial transactions.

While David’s Network used a number of TD Bank stores to conduct its money laundering activity, it laundered the most money through Aquino’s Midtown Manhattan store. Nobody processed more transactions for David’s Network at the Midtown Manhattan store than Aquino.

During the course of David’s money laundering scheme, Aquino processed approximately 1,680 official bank checks for David’s Network, totaling more than approximately $92 million. Nearly all of these bank checks were funded with a corresponding cash deposit exceeding $10,000, which triggered TD Bank’s legal requirement to file a currency transaction report (CTR). Although Aquino knew that David was conducting these cash deposits, Aquino never identified David as the “conductor” on the CTR. Aquino also knew that TD Bank had closed other accounts linked to David for suspicious activity; one colleague even warned Aquino that David’s activity “looks like money laundering.” In February 2021, Aquino facilitated three of David’s money laundering transactions, totaling almost $2 million in cash, in a third party’s account. He failed to report David as the conductor of the transaction, thus concealing David’s role in the money laundering scheme.

Aquino accepted numerous retail gift cards from David totaling over $11,000 in return for his facilitation of this scheme, including for the three transactions in February 2021.

The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater.

IRS-CI and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) investigated the case. The Department also thanks the Morristown Police Department for its assistance with the investigation.

Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Marko Pesce, Chief of the Bank Integrity, Money Laundering, and Recovery Unit for the District of New Jersey are prosecuting the case.

The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.

NEWARK – A former New York-based employee of TD Bank N.A, Wilfredo Aquino, pleaded guilty today to facilitating a money laundering network’s movement of hundreds of millions of dollars through TD Bank accounts.

“Aquino helped criminals launder money from inside TD Bank. Bank employees are the first line of defense against money laundering, fraud, and other financial crimes. When bank employees ignore their obligations and instead use their positions to commit crimes and line their own pockets, we will not hesitate to hold them accountable.”

- Senior Counsel Philip Lamparello

“The defendant leveraged his position at TD Bank and facilitated the criminal activity of a money laundering network that moved hundreds of millions of dollars through the bank’s accounts,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “During the illicit scheme, the defendant evaded reporting requirements to hide the identity of the leader of the money laundering network. The Criminal Division is fully committed to rooting out money-laundering networks and their facilitators that exploit the security and stability of our country’s banking system.”

“Wilfredo Aquino’s position at TD Bank required him to report suspicious customer activity and adhere to robust anti-money laundering regulations,” said Special Agent in Charge Jenifer L. Piovesan of the IRS Criminal Investigation (IRS-CI) Newark Field Office. “Instead, he turned a blind eye to complying with the law and prioritized enriching himself. IRS-CI will continue working with our law enforcement partners to investigate individuals taking advantage of our financial system through criminal activity.”

Aquino, 47, of New York, pleaded guilty to a one-count information charging him with conspiring to launder monetary instruments. He is scheduled to be sentenced on May 12.

According to court filings, beginning in 2019 and continuing until February 2021, Aquino, then a TD Bank assistant store manager, leveraged his position to facilitate a money laundering network’s movement of hundreds of millions of dollars through TD Bank accounts. During that time, the leader of the network, Da Ying Sze, also known as David, and his co-conspirators (collectively known as David’s Network) moved approximately $474 million through TD Bank accounts by depositing cash at TD Bank stores in New York, New Jersey, and elsewhere. In February 2022, David pleaded guilty to coordinating a $653 million money laundering conspiracy, operating an unlicensed money transmitting business, and bribing bank employees in connection with financial transactions.

While David’s Network used a number of TD Bank stores to conduct its money laundering activity, it laundered the most money through Aquino’s Midtown Manhattan store. Nobody processed more transactions for David’s Network at the Midtown Manhattan store than Aquino.

During the course of David’s money laundering scheme, Aquino processed approximately 1,680 official bank checks for David’s Network, totaling more than approximately $92 million. Nearly all of these bank checks were funded with a corresponding cash deposit exceeding $10,000, which triggered TD Bank’s legal requirement to file a currency transaction report (CTR). Although Aquino knew that David was conducting these cash deposits, Aquino never identified David as the “conductor” on the CTR. Aquino also knew that TD Bank had closed other accounts linked to David for suspicious activity; one colleague even warned Aquino that David’s activity “looks like money laundering.” In February 2021, Aquino facilitated three of David’s money laundering transactions, totaling almost $2 million in cash, in a third party’s account. He failed to report David as the conductor of the transaction, thus concealing David’s role in the money laundering scheme.

Aquino accepted numerous retail gift cards from David totaling over $11,000 in return for his facilitation of this scheme, including for the three transactions in February 2021.

The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater.

IRS-CI and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) investigated the case. The Department also thanks the Morristown Police Department for its assistance with the investigation.

Assistant U.S. Attorney Marko Pesce, Chief of the Bank Integrity, Money Laundering, and Recovery Unit for the District of New Jersey and Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section are prosecuting the case.

The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.

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NEWARK, N.J. – Twenty-six people have been charged for their roles in a drug trafficking organization affiliated with a neighborhood street gang that operated and distributed large quantities of fentanyl, heroin, and crack cocaine in Riverside Villa Public Housing Complex and other areas of Newark, Senior Counsel Philip Lamparello announced. Two additional people were charged for firearms offenses, including their role in a shooting in a rival gang’s territory.

Tahjuan Ferrell, a/k/a “Jers,” Raymon Rodriguez, a/k/a “Ray Ray,” Ricky Colon, Jr., Sayyied Anderson, a/k/a “Sal,” Carnell Wright, a/k/a “Jay,” Briant Haynes, a/k/a “B,” Rashon Wheeler, a/k/a “Petey,” Demetrius Julu, Nero Whitehead, a/k/a “Woo,” Dawud Cross, a/k/a “Mu,” Joseph Johnson, a/k/a “Pearl,” Yusef Mack, a/k/a “Gutter,” Alsharick King, a/k/a “Ghost,” Montrel Jordan, a/k/a “Trillz,” Patrick Jordan, a/k/a “Swerve,” Raheam Springer, Ibn Rogers, Blake Howard, Daniel Valentin, Mekhi Lawrence, a/k/a “MK,” Craig Walker, a/k/a “Lean,” Kevin Wiley, a/k/a “LB,” Quince Melvin, Nakki Melvin, Ricardo Gonzalez, a/k/a “Ricky” and Quadir Simmons a/k/a “Scoom” all of Essex County, New Jersey, were charged with one count of conspiracy to distribute fentanyl, heroin, and cocaine.

Quasir Miranda, a/k/a “Space,” and Zakiyy Houser, a/k/a “GBK” are also each charged with unlawful possession of ammunition in a school zone in connection with the February 18, 2025 attempted shooting of a rival gang member.

Several of the defendants have already made initial court appearances before U.S. Magistrate Judge Cari Fais in Newark federal court.  Previously, twenty-five defendants were arrested and made initial court appearances before U.S. Magistrate Judge Jessia S. Allen in Newark federal court and before U.S. Magistrate Judge Natalie Hirt Adams in Tampa, Florida.

The defendants are members or associates of a neighborhood-based street gang operating in and around the Riverside Villa Public Housing Complex, 4th Avenue and North 12th Street, and the Garden Spires Apartments in Newark, New Jersey (the “Enterprise”), among other areas. The Enterprise is affiliated with the Bloods criminal street gang.

Law enforcement conducted extensive surveillance of the area, made numerous controlled purchases and seizures of narcotics, and analyzed telephone records, all of which demonstrated extensive interactions among the defendants.

Those charged in the drug conspiracy face a mandatory minimum penalty of 10 years in prison, maximum potential penalty of life in prison, and a $10 million fine.  Miranda and Houser each face up to 5 years in prison for unlawful possession of ammunition in a school zone.

Hundreds of members of law enforcement were instrumental in the investigation and arrests of these defendants. Special Counsel Lamparello credited special agents of the Bureau of Alcohol, Tobacco, and Firearms under the direction of Special Agent in Charge L.C. Cheeks; the Drug Enforcement Administration, under the direction Special Agent in Charge Towanda R. Thorne-James with the investigation leading to the charges. He also thanked police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda, U.S. Customs and Border Protection officers, under the Director of Field Operations Francis Russo; HSI New York Field Office, under the direction of Special Agent in Charge Ricky J. Patel; HSI Newark Field Office, under the direction of Special Agent in Charge Michael McCarthy; members of the United Marshals Service, under the direction of U.S. Marshal for the District of New Jersey Juan Mattos; detectives of the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens, II and Chief Mitchell G. McGuire, III; police officers and detectives of the East Orange Police Department, under the direction of  Director Maurice Boyd and Chief Phyllis L. Bindi; detectives of the New Jersey State Police, under the direction of Colonel Patrick J. Callahan police officers and detectives with the Belleville Police Department, under the direction of Chief Mark Minichini; as well as police officers and detectives with the Bergen County Prosecutor’s Office, Passaic County Prosecutor’s Office, Union County Prosecutor’s Office, Hudson County Prosecutor’s Office, Morris County Prosecutor’s Office, Middlesex County Prosecutor’s Office, Orange Police Department, Bloomfield Police Department, Jersey City Police Department, Florham Park Police Department, Morristown Police Department, and Ramsey Police Department for their assistance in the apprehension of the members of the Enterprise.

The investigation was conducted as part of the Newark Violent Crime Initiative (“VCI”).  The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark.  As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community.  The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, Homeland Security Investigations, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

The government is represented by Assistant U.S. Attorneys Sean Nadel and Jason Goldberg of the Narcotics and International Trafficking Unit in Newark.

The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.

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Defense counsel:

Tahjuan Ferrell: Frank P. Arleo, Esq.

Raymon Rodriguez: Rahul Agarwal, Esq.

Sayyied Anderson: Michael Pappa, Esq.

Carnell Wright: Ernesto Cermiele, Esq.

Briant Hanyes: Arthur Paul Condon, Jr., Esq.

Rashon Wheeler: Stephen N. Dratch, Esq.

Demetrius Julu: Laura K. Gasiorowski, Esq.

Nero Whitehead: Charles McKenna, Esq.

Dawud Cross: Michael V. Gilberti, Esq.

Joseph Johnson: Maximillian A. Novel, Esq.

Yusef Mack Michael Rosas, Esq.

Alsharick King: Aidan P. O’Connor, Esq.

Montrel Jordan: James Seplowitz, Esq.

Patrick Jordan: William Strazza, Esq.

Raheam Springer: Mary Toscano Carpenito, Esq.

Ibn Rogers: Stephen Turano, Esq.

Blake Howard: Wanda Akin, Esq.

Daniel Valentin: Adrien Moncur, Esq.

Mekhi Lawrence: John A. Azzarello, Esq.

Craig Walker: Carlos Diaz-Cobo, Esq.

Kevin Wiley: Gary Mizzone, Esq.

Quince Melvin: Alyssa A. Cimino, Esq.

Nakki Melvin: Charles Alvarez, Esq.

Ricardo Gonzalez: Shawn Barnes, Esq.

Quadir Simmons: Lorraine Gauli-Rufo, Esq.

Quasir Miranda: John McMahon, Esq.

Zakiyy Houser: F.R. “Chip” Dunne, III, Esq.

NEWARK, N.J. – Two members of the Neighborhood Bloods street gang, which operated in Jersey City, New Jersey, were convicted of multiple charges stemming from the January 16, 2017, murder of three Jersey City residents, including a twenty-five-year-old pregnant woman, Senior Counsel Philip Lamparello announced.

“These convictions hold accountable violent gang members who carried out a calculated, execution-style triple homicide, including the murder of a young pregnant woman. The defendants planned these killings with chilling deliberation and then attempted to silence their own associate to avoid justice. Today’s verdicts make clear that this level of brutality will be met with the full force of federal prosecution, and that those who terrorize our communities will face severe consequences.”

- Senior Counsel Philip Lamparello

“Through the Jersey City Violent Crime Initiative, the full force of NJ Law enforcement is called upon in the aftermath of heinous crimes such as this triple homicide,” said FBI Newark Special Agent in Charge Stefanie Roddy. “This show of force will make clear to anyone contemplating gang-related or other violent crimes: do not expect to walk free in New Jersey.”

Following a month-long jury trial, Markell Brown, a/k/a “Sayboy,” 37, of Jersey City, New Jersey, was convicted of conspiracy to commit murder in aid of racketeering, three counts of murder in aid of racketeering, three counts of discharging a firearm in furtherance of a crime of violence, and three counts of causing death through use of a firearm. Terence Shaw, a/k/a “Sweet Meat,” 37, of Jersey City, New Jersey, was convicted of conspiracy to commit murder in aid of racketeering, two counts of murder in aid of racketeering, two counts of discharging a firearm in furtherance of a crime of violence, and two counts of causing death through use of a firearm.  With respect to Shaw, the jury could not come to a unanimous verdict as to one count of murder in aid of racketeering, one count of discharging a firearm in furtherance of a crime of violence, and one count of causing death through use of a firearm

According to documents filed in this case and the evidence at trial:

On January 16, 2017, Brown and Shaw murdered a rival gang member with whom they had been feuding, along with the rival gang member’s pregnant girlfriend.  Brown then murdered one of Brown and Shaw’s own associates, who had accompanied them to commit the murders.  Brown and Shaw planned the murders through, among other things, orchestrating the use of a stolen U-Haul truck and purchasing two-way walkie-talkie radios to use during the murders.  Brown and Shaw then used their associate to obtain access to the rival gang member’s apartment.  After entering that residence on Fulton Avenue in Jersey City shortly before 10:00 p.m., Brown and Shaw executed the rival gang member, shooting him in the back of the head, the left arm, and the right shoulder.  They also executed the twenty-five-year-old woman, shooting her in the back of the head and the chest.  As Brown left the Fulton Avenue apartment, he shot his and Shaw’s associate in the chest to eliminate the possibility that he would provide information to law enforcement.

The conspiracy to commit murder in aid of racketeering carries a maximum potential penalty of 10 years in prison and a $250,000 fine.  Brown and Shaw face mandatory life sentences for each count of murder in aid of racketeering.  For each count of discharging a firearm during a crime of violence, they face mandatory consecutive sentences of ten years’ imprisonment.  The counts charging Brown and Shaw with causing death through use of a firearm carry maximum life sentences.  Sentencing is scheduled for April 22, 2026.

Senior Counsel Lamparello credited the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Wayne Mello, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, as well as special agents of the FBI, Newark Field Division, under the direction of Special Agent in Charge Stefanie Roddy with the investigation leading to the charges and arrests.

This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City.  As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community.  The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.

The government is represented by Assistant U.S. Attorney Kendall Randolph and Senior Trial Counsel Robert Frazer of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark and Assistant U.S. Attorney James Graham of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark. 

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Defense counsel: Brown - Stephen Turano, Esq. New York, and Thomas Ambrosio, Esq.

Shaw - Brooke Barnett, Esq. and Henry Klingeman, Esq. 

CAMDEN, N.J. – Two Absecon men admitted to conspiring with each other to defraud the Internal Revenue Service by filing false tax returns that concealed their motels’ cash payroll, Senior Counsel Philip Lamparello announced.

Dhruvesh Patel, 37, and Mayank Ray, 36, both of Absecon, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn to informations charging each with one count of conspiring to defraud the IRS.

According to documents filed in this case and statements made in court:

Patel and Ray operated two motels in Atlantic City, New Jersey.  Their motels generated substantial gross receipts from customers who paid for their motel rooms in cash.  As part of the conspiracy, Patel and Ray used a large portion of the cash to pay employees in cash and kept some of the resulting cash for personal use. Patel and Ray caused to be prepared and filed with the IRS false employment tax returns that concealed the cash wages and false individual income tax returns that underreported the income they earned from the motels.  Patel admitted that the conspiracy and his relevant conduct caused a loss greater than $250,000, and Ray admitted that the conspiracy and his relevant conduct caused a loss of approximately $129,512.

The count of conspiracy carries a maximum penalty of 5 years in prison and a fine of up to $250,000.  Sentencing for both Patel and Ray are scheduled for May 11, 2026.

Senior Counsel Lamparello credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark, with the investigation leading to today’s guilty pleas.

The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.

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Defense counsel for Patel: Jed Silversmith, Esq., Jenkintown, Pennsylvania

Defense counsel for Ray: Ira Slovin, Esq., Haddon Heights, New Jersey 

NEWARK, N.J. – Joseph A. McCallum, Jr. 70, a former member of the Newark Municipal Council who also served on the Board of Directors of the Newark Community Economic Development Corporation (“NCEDC”), was sentenced on December 2, 2025 to 18 months’ imprisonment and one year of supervised release for participating in a scheme to obtain bribes and kickbacks and subscribing to a false personal tax return for 2018.  Malik Frederick, 65, a former consultant for developers seeking construction and real estate deals in Newark, was sentenced on December 4, 2025, to 25 months’ imprisonment and one year of supervised release for his role in the same scheme and for subscribing to a false personal tax return for 2017, Senior Counsel Philip Lamparello announced.

“Combatting public corruption in New Jersey is a top priority for our Office. Crimes like these erode public trust and undermine confidence in the institutions meant to serve the community.  We will continue to investigate and prosecute public officials and others who seek to enrich themselves at the public’s expense by engaging in bribery and kickback schemes. We thank our federal partners, including the FBI, IRS, and HUD, for their continued partnership in these cases.”

- Senior Counsel Philip Lamparello

McCallum previously pleaded guilty before U.S. District Judge William J. Martini to an Information charging him with one count of wire fraud for devising a scheme, using interstate wire communications, to defraud Newark and the NCEDC of the right to McCallum’s honest services and one count of subscribing to a false personal tax return for calendar year 2018. Frederick previously pleaded guilty before Judge Martini to participating in the honest services wire fraud conspiracy and one count of subscribing to a false personal tax return. 

According to documents filed in these cases and statements made in court:

From 2017 through February 2020, Frederick paid concealed bribes and kickbacks to McCallum, who was then a member of the Newark City Council, representing the West Ward of Newark, and an NCEDC Board member. These bribes and kickbacks were funded by developers, contracting companies, and other businesses seeking contracts and approvals principally related to development, construction, and real estate projects and deals in Newark. Frederick and others solicited these developers to hire Frederick’s consulting company for “access,” and were introduced to McCallum as the Councilman behind the project or deal of interest to them. McCallum then received concealed bribes and kickbacks from the fees that Frederick obtained from those who retained his company.

In exchange, McCallum used his official positions on the City Council and NCEDC to provide assistance in support of the projects and deals of interest to the developers and others who retained Frederick’s company. For those who refused to pay or were hesitant to pay the fees that Frederick charged, McCallum and Frederick intended to prevent them from obtaining contracts and work from the NCEDC and the City of Newark. McCallum and Frederick took significant steps to conceal these bribes and kickbacks and other material aspects of their arrangement and dealings with these developers and others.

The bribes and kickbacks that McCallum sought and received through Frederick included:

• On April 11, 2017, McCallum accepted a $16,000 check from Frederick’s company bank account in exchange for McCallum’s official assistance and favors for Frederick as specific opportunities related to construction projects in Newark arose that were of interest to the contracting company.
• On October 29, 2018, McCallum accepted a $25,000 check from Frederick’s company bank account in exchange for McCallum’s official assistance to Developer 1’s company in acquiring City-owned properties in the West Ward for a redevelopment project.
• From October 2019 through early 2020, McCallum also sought to obtain bribes from Frederick funded by Developer 2’s company, which was seeking to acquire and redevelop properties in Newark, including multiple City-owned lots in the West Ward and the City Council’s passage of a resolution for a redevelopment agreement related to those lots.  On October 9, 2019, McCallum accepted $500 in cash from Frederick at a cigar lounge in Newark, funded by one of the monthly payments that Developer 2’s company made to Frederick’s company in relation to the redevelopment agreement that Developer 2 sought. In addition, in early 2020, McCallum, using Frederick to assist him, sought a balloon payment of $100,000 from Developer 2 once McCallum secured the City Council’s approval of the redevelopment agreement with the passage of the official resolution approving the deal.
• From October 2019 through January 2020, McCallum planned to share payments with Frederick from a business owner in Newark seeking to sell property to and from Developer 1, who was seeking to acquire and develop the property, in exchange for McCallum’s official assistance to ensure Developer 1’s acquisition and eventual development of City-owned lots adjoining the Seller’s Property.  

In addition to paying the bribes and kickbacks to McCallum and attempting to obtain payments to be used for bribes and kickbacks, Frederick sought to have a modular home company that was in negotiations with the NCEDC on a development project in Newark to retain Frederick’s company and obtain a $40,000 payment. Frederick intended to share the $40,000 payment with a NCEDC official (labeled “Co-Conspirator 2” in the Information) who referred Frederick to the modular home company and expected a portion of whatever Frederick would be paid. After the modular home company refused to retain Frederick’s company, it did not receive a contract from the NCEDC.

Senior Counsel Lamparello credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Stefanie Roddy; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Shawn A. Rice, with the investigation leading to today’s conviction.

The government is represented by Assistant U.S. Attorneys Francesca Liquori and Matthew Specht of the U.S. Attorney’s Office’s Special Prosecutions Division.

All other co-conspirators identified in the Information are presumed innocent until proven guilty. 

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Defense counsel:

Ray Hamlin, Esq. (for Joseph A. McCallum, Jr.)

Hassen Abdellah, Esq. (for Malik Frederick)

NEWARK, N.J. – Six individuals were charged for their participation in a years-long scheme to trade securities based on material non-public information (“MNPI”), Senior Counsel Philip Lamparello announced.

“As alleged, the defendants engaged in insider trading and market manipulation on a massive scale—using stolen information, falsified data, and fake press releases to mislead investors and enrich themselves. This Office will continue to pursue complex financial fraud schemes that threaten the fairness and transparency of our markets and harm individual investors.”

- Senior Counsel Philip Lamparello

“The FBI takes allegations of insider trading with the utmost seriousness,” said FBI Newark Special Agent in Charge, Stefanie Roddy. “Shoukat and his co-conspirators benefitted greatly from their years-long scheme, and cheated the system to reap their rewards. As complex as a financial fraud scheme is, the FBI will endeavor to stay one step ahead of these alleged criminals.”

Muhammad Saad Shoukat (“Saad Shoukat”), 33, his brothers Muhammad Arham Shoukat (“Arham Shoukat”), 35, and Muhammad Shahwaiz Shoukat (“Shahwaiz Shoukat”), 36—all dual-U.S. and Pakistani citizens—and his friends Daniyal Khan (“Khan”), 33, a dual-U.K and Pakistani citizen, and Izunna Okonkwo (“Okonkwo”), 33, a dual-U.S. and Nigerian citizen, were charged in a complaint that was unsealed today.

Gyunho Justin Kim (“Kim”), 32, of San Francisco, California, was charged in a separate complaint and made an initial appearance before the Honorable Michael A. Hammer, United States Magistrate Judge, on December 12, 2025.

According to documents filed in this case and statements made in court:

The charges in this case arise from three overlapping securities fraud schemes that occurred at various points from June 2020 through February 2024: (i) a multi-million-dollar insider trading scheme (the “Insider Trading Scheme”); (ii) a scheme to manipulate the stock price of a biopharmaceutical company developing a treatment for breast cancer (“Olema Manipulation Scheme”); and (iii) a scheme to manipulate the stock price of a different biopharmaceutical company seeking to prevent opioid overdoses (“Opiant Manipulation Scheme,” together with the Olema Manipulation Scheme, the “Market Manipulation Schemes”).

The Insider Trading Scheme

Kim worked at an investment bank that was actively involved in multiple mergers and acquisitions of publicly traded healthcare and biopharmaceutical companies. Kim obtained MNPI about many of these pending deals, either by working on deals directly or from others who did. Kim illegally shared MNPI about at least nine of these deals with Saad Shoukat, who traded on that information by himself and through others. Saad Shoukat also tipped off others—including Arham Shoukat, Shahwaiz Shoukat, Khan, and Okonkwo—who similarly traded and profited from the MNPI. Overall, Saad Shoukat and his co-conspirators received illicit profits from the Insider Trading Scheme totaling at least $41 million.

Olema Manipulation Scheme

Saad Shoukat, Arham Shoukat, and others actively manipulated the stock price of Olema, a publicly traded company. Olema focused on developing breast cancer treatment through a drug called OP-1250. From the spring of 2021, Saad Shoukat and Arham Shoukat began investing in Olema stock and encouraged others to invest in it. After buying substantial stock in Olema, Saad Shoukat, Arham Shoukat, and others accessed confidential information showing that OP-1250 was less effective than Saad Shoukat and Arham Shoukat had hoped. Saad Shoukat, Arham Shoukat, and others then falsified the OP-1250 data the co-conspirators had illegally accessed, and publicly disseminated it in a manner that made it look like the data was real and came from Olema. The release of the false data—which inflated the drug’s efficacy—temporarily caused Olema’s stock price to increase, during which Saad Shoukat, Arham Shoukat, and others profited and avoided losses by selling large numbers of shares in Olema stock.

Opiant Manipulation Scheme

Saad Shoukat, his brothers, and others also manipulated the stock price of Opiant, another publicly traded company. Opiant was developing an opioid overdose treatment. Kim provided MNPI to Saad Shoukat about a company seeking to acquire Opiant. Based on that MNPI, Saad Shoukat and others bought Opiant stock. But that potential acquisition stalled, and Saad Shoukat and others were stuck with their stock purchases. In response, in or around April 2022, Saad Shoukat, his brothers, and others—using a fake Opiant website and fake Opiant email addresses that appeared legitimate—caused the publication of a fake press release announcing a purported merger and acquisition involving Opiant and another company. The fake press release drove up Opiant’s stock approximately 29%. Saad Shoukat, his brothers, and others profited by selling off shares during that spike, causing substantial losses to victim investors.

If convicted, the defendants face the following maximum sentences:

Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation.

The government is represented by Assistant U.S. Attorneys George Barchini of the Bank Integrity, Money Laundering, and Recovery Unit and Aaron Webman, Deputy Chief of the Economic Crimes Unit in Newark.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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Defense counsel:

Muhammad Saad Shoukat: Chris Christie, Morristown, NJ

Muhammad Arham Shoukat: Chris Christie, Morristown, NJ

Muhammad Shahwaiz Shoukat: Chris Christie, Morristown, NJ

Daniyal “Dan” Khan: Unknown

Izunna “Zunnie” Okonkwo: Scott McBride, Roseland, NJ and Alexey Tarasov, Rosenberg, Texas.

Gyunho Justin Kim: Timothy Crudo, San Francisco, CA

NEWARK, NJ. –  A New Jersey business owner was sentenced to 87 months in prison for conspiring to defraud Medicare of $172 million, commit money laundering, and pay kickbacks and bribes in violation of the Anti-Kickback Statute, Senior Counsel Philip Lamparello announced.

U.S. District Judge Michael E. Farbiarz imposed the sentence on Aaron Neil Williamsky, 65, of Marlboro, New Jersey, in Newark federal court on November 17, 2025.  Williamsky was also ordered to pay more than $172 million in restitution.

Williamsky previously pleaded guilty to conspiracy to commit health care fraud, conspiracy to commit wire fraud, conspiracy to commit money laundering, and conspiracy to violate the federal Anti-Kickback Statute.   

“As the Defendant admitted in open court, he conspired to steal more than $172 million from the American public by submitting fraudulent doctors’ orders for reimbursement through a web of more than twenty durable medical equipment companies located in New Jersey. The sentence Williamsky received reflects the seriousness of his crimes.  Together with our law enforcement partners, this Office will continue to investigate and prosecute people who engage in fraud at the expense of American taxpayers.”

- Senior Counsel Philip Lamparello

“Williamsky’s sentence of more than 7 years reflects the severity of his crime and reemphasizes the FBI’s commitment to holding fraudsters accountable,” said Special Agent in Charge of FBI Newark, Stefanie Roddy.

“This defendant committed an egregious amount of durable medical equipment fraud. Rampant schemes like his jeopardize the availability of federal health care program funds intended to support millions of beneficiaries,” said Special Agent in Charge Naomi D. Gruchacz of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is committed to working with our law enforcement partners to bring those to justice that prioritize greed over patient care.”  

“This sentencing demonstrates that fraudsters who target VA programs and services will be found and held accountable,” said Special Agent in Charge Christopher F. Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG will continue to work with our law enforcement partners to halt schemes that divert funds from our nation’s deserving veterans.”

According to documents in this case and statements made in court:

From 2015 to 2019, Williamsky led and organized a fraud scheme in which he opened or purchased durable medical equipment (“DME”) supply companies, submitted fraudulent claims to Medicare on behalf of those companies, closed the companies one-by-one to avoid Medicare audits and recoupment, and then opened or purchased new DME companies.  He concealed his ownership interest in this web of more than twenty DME companies by employing others to serve as “nominee,” or straw owners.

To generate fraudulent orders, Williamsky and his co-conspirators hired marketing companies to make unsolicited calls offering elderly patients free orthotic braces.  In exchange for each patient who agreed to accept DME, Williamsky paid a kickback to the marketing companies in violation of the federal Anti-Kickback Statute. To conduct the scheme, Williamsky used sham contracts and invoices that falsely characterized kickbacks he paid as “business process outsourcing” and “marketing expenses.”  To evade detection and avoid taxes, Williamsky transferred a portion of the fraud proceeds to overseas bank accounts, where the funds were laundered through shell corporations and foreign real estate holdings.

Senior Counsel Lamparello credited special agents and specialists of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark; the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and the Department of Defense, Defense Criminal Investigative Service, under the direction of Christopher Silvestro; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the charge.

The government is represented by Assistant U.S. Attorney Garrett J. Schuman of the Health Care Fraud and Opioid Enforcement Unit.

                                                                             ###

Defense Counsel for Aaron Williamsky: Jeffrey M. Kolansky, Philadelphia, PA

NEWARK, N.J. – A Florida man pleaded guilty to conspiring to bill Medicare for medically unnecessary prescriptions, Senior Counsel Philip Lamparello announced.

Eric Van Vleet, 30, of Delray Beach, Florida, pleaded guilty to a superseding information charging him with conspiracy to commit health care fraud and conspiracy to violate the federal Anti-Kickback Statute, before U.S. District Judge Madeline Cox Arleo in Newark federal court.

According to documents filed in this case and statements made in court:

From February 2018 to September 2019, Van Vleet operated Hype Med LLC, which generated medically unnecessary prescriptions through a telemarketing and telemedicine scheme.   As part of the health care fraud and kickback conspiracy, Van Vleet and Hype Med identified Medicare beneficiaries to target for expensive drugs.  Call center employees contacted beneficiaries to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, migraine medication, and a combination of prescription medications to be used as a “foot soak.”  Van Vleet and Hype Med then sent recordings of calls with the beneficiaries, along with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. Hype Med paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions.

Van Vleet then directed the prescriptions to pharmacies, including Apogee Bio-Pharm LLC, located in Edison, New Jersey, with which Hype Med had a kickback arrangement. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare. The pharmacies, including Apogee, then paid a portion of each reimbursement to Hype Med as a kickback.  Van Vleet and Hype Med received at least approximately $343,683.69 in kickback payments from the owners of Apogee. The principals of Apogee—William Welwart, Ethan Welwart, and Gary Kaczka—are charged with health care fraud and related offenses in a separate indictment.  Elan Yaish, former President of Apogee, previously pleaded guilty to an information charging conspiracy to violate the federal anti-kickback statute. As a result of medically unnecessary prescriptions generated by Hype Med, Medicare paid at least $1,399,812.52 based on false and fraudulent claims.

The health care fraud conspiracy charge carries a maximum potential penalty of 10 years in prison, and the charge of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of 5 years in prison.  Each count is also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.

Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Christopher M. Silvestro, with the investigation.

The government is represented by Assistant U.S. Attorney Katherine M. Romano, Chief of the General Crimes Unit in Newark.

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Defense counsel: Michael Baldassare, Esq.

NEWARK, N.J. – A Connecticut man was sentenced yesterday to 30 months’ imprisonment for his role in a multimillion-dollar durable medical equipment (DME) health care fraud and kickback scheme, Senior Counsel Philip Lamparello announced.

Jesse Foote, 60, of Fairfield, Connecticut, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a two-count information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.

According to documents filed in this case and statements made in court:

From December 2017 to March 2021, Foote conspired with overseas telemarking call centers, DME suppliers, telemedicine companies, and doctors to submit fraudulent claims to health care benefit programs, including Medicare and TRICARE, through a circular scheme of kickbacks and bribes. Foote controlled a marketing company through which he purchased patient “leads” from overseas telemarking companies. The leads consisted of information about Medicare and other beneficiaries and pre-written doctors’ orders for DME. The telemarketing call centers targeted Medicare beneficiaries and others with health insurance to persuade them to accept DME, including orthotic braces, without regard to medical necessity.  Foote paid bribes and kickbacks to telemedicine companies, which in turn paid bribes and kickbacks to doctors, to obtain doctors’ orders for DME based on the leads. The doctors often approved the DME orders without having any contact with the beneficiary and without making a bona fide assessment that the DME was medically necessary. Foote then sold the signed doctors’ orders to others with whom he had kickback arrangements. The doctors’ orders were ultimately submitted to DME suppliers, including DME suppliers controlled by Foote, which submitted fraudulent claims for reimbursement to health care benefit programs including Medicare, TRICARE, and private insurance companies.

In total, Foote and his co-conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $7.8 million for DME.

In addition to the prison term, Judge Salas sentenced Foote to three years of supervised release and ordered him to pay $7,878,991.56 in restitution.

Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Christopher M. Silvestro, with the investigation.

The government is represented by Assistant U.S. Attorney Katherine M. Romano, Chief of the General Crimes Unit in Newark.

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Defense counsel: Charles Alvarez, Esq.      

CAMDEN, N.J. – A Mount Laurel man admitted to engaging in a scheme to defraud banks using checks stolen from the U.S. mail and fraudulent debit cards, Senior Counsel Philip Lamparello announced.

Kharon Parson-Wright, 28, of Mount Laurel, New Jersey, pleaded guilty before U.S. District Judge Edward S. Kiel to an information charging him with one count of conspiring to commit bank fraud and one count of aggravated identity theft.

According to documents filed in this case and statements made in court:

Parson-Wright conspired with Yasmene Johnson, Dante Ford, and others to commit bank fraud with checks stolen from the U.S. mail. Parson-Wright, Ford, and others stole U.S. mail from blue U.S. mail collection boxes.  Ford and other members of the conspiracy then created counterfeit versions of the stolen checks or altered the stolen checks by increasing the value of the checks and changing the name of the payee either to a member of the conspiracy or somebody else recruited by the conspiracy. Parson-Wright admitted that he and others negotiated the counterfeit or altered checks and then attempted to the withdraw the funds before the bank learned that the checks were illegitimate. The conspiracy involved the negotiation of checks at banks across southern New Jersey and elsewhere, with checks written for tens of thousands dollars.

As a separate part of their conspiracy, Parson-Wright connected Johnson with a bank employee who created fraudulent debit cards in the name of victims who held accounts at the bank.  Parson-Wright and his co-conspirator used one of the fraudulently issued debit cards to make purchases and ATM withdrawals in New Jersey.  Parson-Wright admitted that the bank fraud conspiracy resulted in actual losses exceeding $424,000 and intended losses exceeding $1,500,000.

The count of conspiracy carries a maximum penalty of 30 years in prison and a fine of up to $1,000,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest.  The count of aggravated identity theft carries a statutory mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment, and a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest.  Sentencing is scheduled for April 20, 2026.

Johnson previously pleaded guilty to the same two offenses for her role in the conspiracy and is scheduled to be sentenced in March 2026.  Ford and three other defendants were previously sentenced in 2025 after pleading guilty to participating in the same bank fraud conspiracy: Ford was sentenced to 27 months’ incarceration, Donovan Bunch was sentenced to 33 months, Tracy Felder-Carter was sentenced to 18 months, and Quamell Keyes-Griffin was sentenced to 18 months.

Senior Counsel Lamparello credited postal inspectors of the U.S. Postal Inspection Service – Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to this plea.  He also thanked the Mount Laurel Police Department, under the direction of Chief Timothy Hudnall, for its valuable assistance in the investigation.

The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.

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Defense counsel: Justin Capek, Esq., Mount Laurel, New Jersey

NEWARK N.J. – A Washington Township man was sentenced to 49 months’ imprisonment for fraudulently seeking more than $1.4 million from the IRS by filing false tax returns claiming COVID-19-related employment tax credits, for laundering the proceeds from that scheme, and for stealing more than $180,000 from an elderly customer at the car dealership where he worked, Senior Counsel Philip Lamparello announced.

James J. Mastrogiovanni, 45, of Washington Township, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court on May 20, 2025, to an information charging him with one count of conspiracy to defraud the United States, one count of mail fraud, one count of money laundering, and one count of access device fraud.  U.S. District Judge William J. Martini imposed the sentence on December 4, 2025, in Newark federal court.

According to documents filed in this case and statements made in court:

During the pandemic, Mastrogiovanni engaged in a scheme with Leon Haynes, a tax preparer, to exploit COVID-19 relief programs to line his own pockets.  From in or around March 2021 through in or around December 2022, Mastrogiovanni and Haynes prepared and filed with the IRS false and fraudulent Forms 941 on behalf of Mastrogiovanni, his family members, and others, claiming tax refunds intended to help struggling small businesses.  All of the Forms 941 prepared in furtherance of the scheme were false and fraudulent because they listed employees and wages that, in fact, did not actually exist.  Neither Mastrogiovanni nor any of his family members owned or operated a business, let alone had paid employees.  Mastrogiovanni claimed at least $1,443,409 in tax credits, and as a result of the scheme, the U.S. Treasury disbursed at least $545,692 to Mastrogiovanni and his family members.

Haynes was found guilty by a jury on November 10, 2025 of 15 counts of aiding and assisting in the preparation and presentation of false tax returns, one count of mail fraud, and two counts of tax evasion for his scheme seeking more than $170 million in fraudulent tax refunds from the IRS by causing more than 1,900 false tax returns to be filed on behalf of himself and his clients.  Haynes’s sentencing is scheduled for March 12, 2026.

In addition to the tax fraud scheme, from on or about June 19, 2023 through on or about December 7, 2023, Mastrogiovanni engaged in a separate scheme to steal more than $180,000 from an 85-year old victim.  The victim presented a check to Mastrogiovanni to purchase a vehicle at the car dealership where Mastrogiovanni worked.  Mastrogiovanni later used the routing and checking account numbers on the check to make unauthorized personal transactions from the account until the account was empty. 

In addition to the prison term, Judge Martini sentenced Mastrogiovanni to three years of supervised release following Mastrogiovanni’s term of imprisonment and ordered restitution in the amount of $726,862.

Senior Counsel Lamparello credited special agents the IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly; postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division; and officers of the Mahwah Police Department, under the direction of Chief Timothy O’Hara, with the investigation.

The government is represented by Assistant U.S. Attorneys Matthew Stark and Fatime Meka Cano of the Economic Crimes Unit in Newark.

The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds. 

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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Defense Counsel for Mastrogiovanni: Frank Agostino, Esq.

TRENTON, N.J. – An Ocean County, New Jersey man was sentenced on December 2, 2025, to 168 months in prison for receiving videos and images depicting child pornography, Senior Counsel Philip Lamparello announced.

Daniel Nilla, 37, of Brick, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with three counts of receipt of child pornography.

According to documents filed in this case and statements made in court:

Between December 2021 and April 2023, Nilla communicated with at least five minor victims on a multimedia instant messaging application. He knew the victims were minors when he communicated with them. During the communications, Nilla directed the victims to send him images and videos of themselves engaging in sexually explicit conduct, which Nilla used for his sexual gratification.

In addition to the prison term, Judge Shipp sentenced Nilla to ten years of supervised release.

Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation. Senior Counsel Philip Lamparello also thanked special agents of the FBI Kansas City, Kansas Division, under the direction of Special Agent in Charge Stephen A. Cyrus, and the City of Edwardsville, Kansas Police Department, under the direction of Chief of Police Rance Quinn.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc

The government is represented by Assistant U.S. Attorney Matt Belgiovine of the Criminal Division in Trenton.

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Defense counsel: Steven Cappetta, Esq.

NEWARK, N.J. – A Morris County tour company entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by applying for and receiving two loans from the Paycheck Protection Program (“PPP”) for which the company was not eligible, Senior Counsel Philip Lamparello announced today.

According to the allegations in the complaint and the contentions of the United States contained in the settlement agreement:

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses.

CIE Tours International Inc. (“CIE Tours”) applied for and received two PPP loans totaling $3,410,300 even though it was ineligible for the loans as an entity owned by the government of Ireland, and because it exceeded the employee size eligibility requirements. CIE Tours then sought and received forgiveness of the total amount of the loans. 

CIE Tours fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement CIE Tours agrees to pay the United States $4,428,985.04. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, Relator is receiving $428,985 as his share in the recovery.

Senior Counsel Lamparello credits the SBA’s Office of General Counsel for their assistance in this matter.

The government is represented by Assistant U.S. Attorney David E. Dauenheimer of the Healthcare Fraud and Opioids Enforcement Unit in Newark.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The qui tam case is captioned US ex rel. TZAC, Inc., v. CIE TOURS INTERNATIONAL, 24-cv-009637 (D.N.J.).

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Counsel for CIE Tours: Reetuparna Dutta, Hodgson Russ, LLP, Buffalo, New York.

Relator’s counsel: David Abrams, Esq., New York, New York.

NEWARK, N.J. – An Essex County, New Jersey, man pled guilty to a three-count Information based on his online enticement and exploitation of minors, Senior Counsel Philip Lamparello announced.

Nabeen Leigh Singha, 39, of West Orange, New Jersey, pleaded guilty before U.S. District Court Chief Judge Renée M. Bumb on December 11, 2025, in Camden federal court to a three-count Information charging him with: (1) production of child pornography, in violation of Title 18, United States Code, Sections 2551(a) and (e); (2)  receipt of child pornography, in violation of Title 18, United States Code, Sections 2252A(a)(2)(A) and (b)(1); and (3) possession of prepubescent child pornography, in violation of Title 18, United States Code, Sections 2252A(a)(5)(B) and (b)(2).

According to documents filed in this case and statements made in court:

From July 2021 through March 2022, Singha exchanged sexually explicit messages with two minor victims and paid them to create sexually explicit videos and images of themselves to send to Singha over the internet.

During that time-period, Singha also communicated with an intermediary and paid that intermediary to send sexually explicit videos and images of four additional minor victims.

Law enforcement searched and seized Singha’s phone and found nearly 5,000 images and 620 videos depicting child pornography. These materials included depictions prepubescent minors under 12 years old.

The production charge carries a statutory mandatory minimum sentence of 15 years’ imprisonment, a statutory maximum sentence of 30 years’ imprisonment, and a statutory maximum fine equal to the greatest of (a) $250,000; (b) twice the gross amount of any pecuniary gain that any persons derived from the offense; or (c) twice the gross amount of any pecuniary loss sustained by any victims of the offense.

The receipt charge carries a statutory mandatory minimum sentence of 5 years’ imprisonment, a statutory maximum sentence of 20 years’ imprisonment, and a statutory maximum fine equal to the greatest of (a) $250,000; (b) twice the gross amount of any pecuniary gain that any persons derived from the offense; or (c) twice the gross amount of any pecuniary loss sustained by any victims of the offense.

The possession charge carries a statutory maximum sentence of 20 years’ imprisonment, and a statutory maximum fine equal to the greatest of (a) $250,000; (b) twice the gross amount of any pecuniary gain that any persons derived from the offense; or (c) twice the gross amount of any pecuniary loss sustained by any victims of the offense.

Senior Counsel Lamparello credited special agents and members of the Child Exploitation Group of Homeland Security Investigation, under the direction of Acting Special Agent in Charge Michael McCarthy, with the investigation leading to the guilty plea.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

The government is represented by Assistant U.S. Attorney Jake A. Nasar of the Health Care Fraud and Opioid Enforcement Unit in Newark.

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Defense counsel: Jonathan F. Marshall, Esq., Freehold, NJ 

NEWARK, N.J. – A federal jury has convicted a Bergen County, New Jersey man for running a fentanyl trafficking ring involving kilograms of fentanyl, Senior Counsel Philip Lamparello announced.

Plinio Junior Pineda Lopez, 35, of Oakland, New Jersey was convicted following a four-day trial before U.S. District Judge Stanley R. Chesler in Newark federal court of conspiracy to distribute and possess with intent to distribute over 400 grams of fentanyl and possession with intent to distribute over 400 grams of fentanyl and over 500 grams of cocaine.

“This verdict sends a clear message to those who seek to profit by flooding our communities with fentanyl: law enforcement will find you, our Office will charge you, and you will be held fully accountable. Our responsibility is to our community.  No one should fear the loss of a loved one because a dealer seeks to make a quick buck.  Thanks to the hard work and dedication of our federal, state and local partners, the jury has delivered swift justice. Our Office will aggressively pursue anyone who seeks to distribute this poison, no matter where they hide or how sophisticated they believe their operation to be.”

- Senior Counsel Philip Lamparello

“This guilty verdict on all counts is a decisive victory in our ongoing efforts to combat the fentanyl crisis,” said HSI Newark Special Agent in Charge Michael S. McCarthy. “It reflects the unwavering commitment of Homeland Security Investigations and our law enforcement partners to protect the public and uphold the rule of law. Through coordinated action and relentless pursuit of justice, we have disrupted a major interstate fentanyl trafficking operation and prevented lethal substances from endangering communities across New Jersey.”

According to documents filed in this case and evidence at trial:

Lopez directed and conspired with others to distribute large quantities of fentanyl between Florida and New Jersey. Following an extensive investigation of Lopez’s drug activity in Jacksonville, Miami and Bergen County, law enforcement arrested Lopez on July 11, 2023, in Wallington, New Jersey when he attempted to conduct a narcotics transaction involving over one kilogram of fentanyl. Following his arrest, and pursuant to a court-authorized search warrant, law enforcement searched Lopez’s home and recovered an extensive quantity of fentanyl and cocaine that was hidden in air vents and appliances throughout his home. Through this investigation, law enforcement recovered a total of approximately nine kilograms of fentanyl and approximately one kilogram of cocaine.

The narcotics trafficking charges each carry a maximum potential penalty of life imprisonment and a fine of $10 million. Sentencing is scheduled for April 29, 2026, at 9:30 a.m.

Senior Counsel Lamparello credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Michael S. McCarthy in Newark; HSI Miami, HSI Jacksonville, Customs and Border Protection (CBP) Air and Marine Operations (AMO) and CBP Office of Field Operations (OFO), the Jacksonville Sheriff’s Office, Drug Enforcement Agency (DEA) New York Drug Enforcement Task Force, the Bergen County Prosecutor’s Office, the Oakland Police Department, and the Westwood Police Department, under the direction of Chief Michael Pontillo, with the investigation that led to the charges and conviction.

This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces.

The government is represented by Assistant U.S. Attorney Jason Goldberg, Chief of the Narcotics and International Trafficking Unit, and Assistant U.S. Attorney Alison Thompson of the Organized Crime/Gang Unit in Newark.

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Defense counsel: Carol Dominguez, Esq. and Michael A. Thomas, Esq.

Today, following Attorney General Pamela Bondi's announcement that Alina Habba will serve as Senior Advisor to the Attorney General for United States Attorneys, Deputy Attorney General Todd Blanche announced the following personnel appointments and authorizations within the District of New Jersey:

• Philip Lamparello will serve as Senior Counsel and is authorized to supervise or conduct the work of the district’s Criminal Division and Special Prosecutions Division, including such work in the district’s branch offices;
• Jordan Fox will serve as Special Attorney and is authorized to supervise or conduct the work of the district’s Civil Division and Appellate Division, including such work in the district’s branch offices, along with any other matters arising within the district not specifically delegated herein; and
• Ari Fontecchio will serve as Executive Assistant United States Attorney and is authorized to supervise or conduct the work of the district’s Administrative Division, along with any other administrative matters arising within the district.

"The Department of Justice is committed to bringing in the best and brightest to carry out our mission," said Deputy Attorney General Todd Blanche. "I have full confidence in each of these exceptional attorneys and look forward to our continued collaboration as we make New Jersey and America safe again."

NEWARK, N.J. – A New Jersey doctor was arrested on November 4, 2025, for unlawfully prescribing Adderall, a Schedule II controlled substance, and Xanax, a Schedule IV controlled substance, Acting U.S. Attorney and Special Attorney Alina Habba announced.

David Holbrook, 70, of Bloomsbury, New Jersey was charged by Indictment with nine counts of unlawfully distributing and dispensing controlled substances, each in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). Holbrook appeared on November 4, 2025, for his initial appearance and arraignment in federal court before U.S. Magistrate Judge André M. Espinosa. The defendant was released on a $100,000 unsecured bond.

According to documents filed in this case and statements made in court:

On nine occasions between or around January 2021 and September 2022, Holbrook, a licensed psychiatrist, prescribed Adderall and Xanax to multiple patients outside the usual course of professional practice and not for a legitimate medical purpose.  If convicted, Holbrook faces a statutory maximum sentence of twenty years in prison and a $1 million fine on each count.

Acting U.S. Attorney and Special Attorney Habba credited special agents, task force officers, and diversion investigators with the Drug Enforcement Administration (DEA) under the direction of Special Agent in Charge Cheryl Ortiz in Newark, New Jersey, with the investigation.

The government is represented by Assistant U.S. Attorney Jake A. Nasar of the Office’s Health Care Fraud and Opioid Enforcement Unit.                                                 

Victims with any information regarding Dr. David Holbrook may contact the DEA New Jersey Field Division at 571-362-3700.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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Defense counsel:         Jay Surgent, Esq.

TRENTON, N.J. – A Monmouth County man was sentenced to 63 months’ imprisonment for armed bank robbery, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Jeffrey L. Kniffin, 51, of Wall Township, pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court on July 22, 2025, to a one-count Information charging him with armed bank robbery. U.S. District Judge Zahid N. Quraishi imposed the sentence on November 24, 2025 in Trenton federal court.

According to documents filed in this case and statements made in court:

On October 23, 2024, Kniffin entered a bank in Wall Township, New Jersey armed with a loaded handgun, approached a bank teller, and demanded cash from the teller. After demanding the money, Kniffin removed the handgun from his pocket and displayed it towards the teller. During his interaction with the teller, Kniffin instructed multiple times, “Don’t do anything stupid.” Kniffin received approximately $27,072 in cash from the teller and then fled the bank. He was apprehended and arrested by law enforcement several minutes later. At the time of his arrest, law enforcement recovered from Kniffin and his immediate surroundings a loaded handgun and more than $25,000 in cash.

In addition to the prison term, Judge Quraishi sentenced Kniffin to three years of supervised release following Kniffin’s term of imprisonment, ordered forfeiture of Kniffin’s robbery proceeds and crime gun, and ordered restitution in the amount of $1,938.

Acting U.S. Attorney and Special Attorney Habba credited task force officers with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the sentencing. She also thanked the Wall Township Police Department, under the direction of Chief Sean O’Halloran, and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, for their assistance in the investigation.

The government is represented by Special Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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Defense counsel: John M. Holliday, Esq.

NEWARK, N.J. – A Union County, New Jersey, man who was employed as a New Jersey high school teacher, was sentenced to 275 months in prison for producing child pornography, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Michael Hamilton, 53, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an Information charging him with one count of producing child pornography.  Judge O’Hearn imposed the sentence in Camden federal court.

According to documents filed in this case and statements made in court:

Hamilton admitted to meeting a minor victim and engaging in sexual conduct with that victim, which Hamilton recorded on video. Law enforcement seized a copy of that video during the search of his home in October 2023. Hamilton also admitted to receiving and possessing sexually explicit messages, pictures, and videos of two other minor victims.

In addition to the prison term, Judge O’Hearn sentenced Hamilton to 10 years of supervised release, and to pay restation of $5,000 to a victim.

“There is no higher responsibility than safeguarding the welfare of our children. The defendant took advantage of children for his own sexual desires. We will continue to protect children and bring justice to sexual predators. I commend the Federal Bureau of Investigation, and our law enforcement partners for their critical work reaching this result.”

- Acting U.S. Attorney and Special Attorney Alina Habba

Acting U.S. Attorney Habba credited FBI Newark’s Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation.  Acting U.S. Attorney Habba also thanked the Springfield Police Department and the Union County Prosecutor’s Office.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.

The government is represented by Rebecca Sussman of the Narcotics and International Trafficking Unit and Robert Taj Moore of the Cybercrime Unit in Newark.

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Defense counsel: Randy Davenport, Esq.

CAMDEN, N.J. – Two New Jersey residents admitted participating in a multimillion dollar mortgage fraud scheme and one of the individuals also admitted fraudulently obtaining more than $1.8 million of federal Economic Injury Disaster Loans, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Mendel Deutsch, 39, of Toms River, New Jersey, pleaded guilty on November 13, 2025, before U.S. District Judge Edward S. Kiel to one count of bank and wire fraud conspiracy and one count of wire fraud.  Joshua Feldberger, 43, of Howell, New Jersey, pleaded guilty on October 22, 2025, before U.S. District Judge Edward S. Kiel to one count of bank fraud conspiracy.       

According to documents filed in this case and statements made in court:

In June 2020, co-defendant Arthur Spitzer conspired with Deutsch and Feldberger to make it appear as if Spitzer owned three properties in Brooklyn, New York and agreed to sell them to Deutsch, who obtained a $4.5 million mortgage loan in connection with the transaction. Feldberger facilitated the fraudulent transaction as the owner of the settlement company that handled the transaction.  The defendants created and sent letters stating that Deutsch had deposited significant funds into escrow toward the transaction, when in reality he had not; they created fake documentation purportedly transferring control of the properties to Spitzer; and they lied to the mortgage lender by stating that the settlement company had received more than $2 million from Deutsch at closing, which led the mortgage lender to fund the loan.  The defendants then used the mortgage loan proceeds to fund Deutsch’s down payment, which he had supposedly already provided.

Further, in 2020 and 2021, Deutsch fraudulently obtained approximately $1.8 million of government loans that were intended for small businesses distressed by the COVID-19 pandemic.  The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  The CARES Act authorized the U.S. Small Business Administration (SBA) to provide Economic Injury Disaster Loans (EIDLs) of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.  To obtain an EIDL loan, a qualifying small business was required to submit an application and provide information on its operations, including the number of employees and revenues or expenses.  Deutsch obtained EIDL loans for businesses that had little or no operations by submitting loan applications that included false statements about the applicant companies’ number of employees, revenues, cost of goods sold, or lost rents.

The counts of bank fraud conspiracy and bank and wire fraud conspiracy are punishable by a maximum of 30 years in prison and a $1,000,000 fine, or twice the gross gain or loss from the offense.  The count of wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

Feldberger is scheduled to be sentenced on February 23, 2026, and Deutsch is scheduled to be sentenced on March 16, 2026.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the Federal Bureau of Investigation’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Stefanie Roddy in Newark; special agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office, with the investigation leading to these guilty pleas.

The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Camden.

The charges and allegations pending against Arthur Spitzer are merely accusations, and he is presumed innocent unless and until proven guilty.

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Defense counsel:

Deutsch: Timothy Sini, Esq., New York

Feldberger: Zach Intrater, Esq., New York

Spitzer: Henry Mazurek, Esq., and Jason Ser, Esq., New York

CAMDEN, N.J. – A Gloucester County, New Jersey man was sentenced to 12 months in prison for willfully evading more than $3,400,000 of taxes, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Jose Camilo Perez, Jr., 54, of Sewell, New Jersey, previously pleaded guilty on November 20, 2025, before Chief U.S. District Judge Renée Marie Bumb to an Information charging him with one count of tax evasion.

According to documents filed in this case and statements made in court:                                                                                          

Perez controlled a company that digitized medical records for hospitals and other healthcare entities.  From 2016 through 2023, the business received more than $8,000,000 for the services it performed.  Perez attempted to evade the assessment of federal income taxes by cashing checks payable to the business at a check cashing business rather than depositing those checks into the business’s bank account or his personal bank account, and then he used the cash for personal expenses and to pay payroll.  From 2016 through 2023, Perez did not report any of the income he received from the business to the IRS.  As a result, Perez evaded income taxes of more than $3,400,000.

Acting U.S. Attorney and Special Attorney Alina Habba credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to this sentencing.

In addition to the prison term, Chief Judge Bumb sentenced Perez to 3 years of supervised release and ordered him to pay restitution in the amount of $3,434,066.

The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Josephine J. Park of the U.S. Attorney’s Office’s Criminal Division in Camden.

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Defense counsel:

Brian J. McMonagle Esq., Philadelphia, Pennsylvania

NEWARK, N.J. – A New Jersey pharmacy owner pleaded guilty to health care fraud, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Nestor E. Jaime, 37, of Pine Brook, New Jersey, pleaded guilty on November 19, 2025, to an Indictment charging him with one count of health care fraud, in violation of 18 U.S.C. § 1347, before U.S. district Judge Katharine S. Hayden in Newark federal court.

According to documents filed in this case and statements made in court:

From December 2019 to December 2021, Jaime, through a pharmacy he owned located in Paterson, New Jersey, submitted hundreds of false claims to Medicare for a high reimbursement (i.e., more than $4,000 per prescription) medication called Dificid, which the pharmacy never actually purchased or dispensed. Jaime submitted false claims on behalf of dozens of Medicare beneficiaries who never were prescribed any Dificid. To make it appear as though the Medicare beneficiaries’ health care providers had prescribed the medication, Jaime falsely included the providers’ unique provider numbers on the fraudulent claims. As a result of the scheme, Medicare paid Jaime reimbursements for false claims for Dificid totaling at least approximately $2.5 million, which Jaime spent on luxury vehicles and other personal expenditures.

The charge of health care fraud carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the Health and Human Services Agency Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the charge.

The government is represented by Assistant U.S. Attorneys Jessica R. Ecker and Kruti Dharia of the Health Care Fraud and Opioids Enforcement Unit in Newark.

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Defense counsel: Anthony Iacullo, Esq.

NEWARK, N.J. – A New Jersey man was charged with using counterfeit FDA documents purporting to authorize the marketing and sale of vaping products to defraud investors in a vaping company, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Mohammad Abuhadba, 42, of Wayne, New Jersey, was charged by Indictment with two counts of wire fraud and three counts of use of counterfeit seal of federal agency. He appeared on November 19, 2025, for an arraignment before U.S. Magistrate Judge José R. Almonte and was released on $100,000 unsecured bond.

According to documents filed in this case and statements made in court:

Abuhadba persuaded two individuals to invest in and co-own a vaping company by misrepresenting to them that Abuhadba had applied for and obtained authorization from the FDA to market and sell tobacco products, including e-cigarette and vaping products, in the United States.  In reality, Abuhadba never applied for or received such FDA authorization, and he instead created doctored FDA authorization documents using counterfeit agency seals that he provided to those investors.  After Abuhadba convinced the investors to begin investing in the vaping company, he repeatedly lied to them about the status of the company’s FDA authorization to induce them to invest more money.  He also doctored a letter he received from the FDA to further disguise that he did not have any FDA authorization to market and sell tobacco products in the United States.

Each charge of wire fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Each charge of use of a counterfeit seal of a federal agency carries a maximum potential penalty of 5 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the U.S. Attorney’s Office for the District of New Jersey and the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Jessica R. Ecker and Garrett J. Schuman of the Health Care Fraud and Opioids Enforcement Unit in Newark.

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Defense counsel: John Yauch, Esq.

Newark, N.J. – Five companies based in Bucks County, Pennsylvania entered into a settlement agreement with the United States resolving allegations that they violated the False Claims Act by taking Paycheck Protection Program (PPP) loans to which they were not entitled, Acting U.S. Attorney and Special Attorney Alina Habba announced.

According to the allegations in the complaint and the contentions of the United States in the settlement agreement:

In April 2020, Fred Beans Holdings, Inc.; Auto Express Enterprises, Inc.; Autorent of Doylestown Inc.; McCafferty Autorent Inc.; and Noble Advertising, Inc. (together, “the Defendants”) each applied for and received approximately $973,395 in PPP loans. Under the eligibility rules in effect at the time, businesses with more than 500 employees, inclusive of their affiliates, were not eligible for PPP loans. In their respective loan applications, the Defendants certified that they were eligible for their loans. However, the Defendants were ineligible for their loans because, inclusive of their affiliates, they had more than 500 employees. After receiving their PPP loans, Defendants sought and received forgiveness of the total amount of the loans plus interest that had accrued.

Defendants fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement agreement, Defendants will pay the United States $1,427,869.  The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $142,786 as the share.

The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud and Opioids Enforcement Unit in Newark.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The qui tam case is captioned United States ex rel. Forsyth v. Fred Beans Holdings, Inc., et al., 25-2324 (D.N.J.).

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Counsel for Ulma Form Works, Inc.: Denise Branch, Esq., Raleigh, NC

Counsel for Relator Aidan Forsyth: Eric Jaso, Esq., Montclair, NJ

NEWARK, N.J. – A Brooklyn, New York, was sentenced to 121 months in prison for his role in a conspiracy to commit child sex trafficking, Acting United States Attorney and Special Attorney Alina Habba announced.

Soauib Butcher, 31, of Brooklyn, previously pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark federal court to one count of conspiracy to commit sex trafficking of a minor. Judge Farbiarz imposed the sentence on November 7, 2025, in Newark federal court.

According to documents filed in this case and statements made in court:

In August 2019, Butcher met the victim at a train station and brought her to Elizabeth, New Jersey, where, from August 2019 to January 2020, the victim stayed with Butcher and a co-conspirator in a series of motel rooms. The co-conspirator posted advertisements depicting the victim on escort websites and, together with Butcher, arranged for customers to come to the motels to have sex with the victim in exchange for money.

In addition to the prison terms, Judge Farbiarz sentenced Butcher to five years of supervised release.

“Soauib Butcher supported himself, for several months, on the daily sexual exploitation of a minor. This sentence sends a message that this Office is committed to protecting children from sexual predators.”

- Acting U.S. Attorney and Special Attorney Alina Habba

“Sexual exploitation is demeaning, damaging and puts already vulnerable minors in extremely unsafe circumstances,” Stefanie Roddy, Special Agent in Charge of the FBI in Newark, said. “Butcher profited off of the arrangement he had with this victim. The FBI and its partners work tirelessly so that these minors get the protection they deserve from predators."

Acting U.S. Attorney and Special Attorney Habba credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation.

This investigation was conducted as part of the U.S. Attorney’s Office for the District of New Jersey’s Human Trafficking Task Force, which was formed in 2025. The Task Force brings together federal and state agencies to collaborate and dedicate resources to combat human trafficking and prosecute human trafficking offenders who endanger the safety of the community. The Human Trafficking Task Force is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation, U.S. Department of Homeland Security, Homeland Security Investigations, U.S. Department of Labor, U.S. Department of Health and Human Services, Office of Inspector General, and the Internal Revenue Service.

The government is represented by Assistant U.S. Attorneys Aaron L. Webman, Deputy Chief of the Economic Crimes Unit, and Katherine M. Romano, Chief of the General Crimes Unit.

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Defense counsel: Patrick Joyce, Esq., Maplewood, NJ

NEWARK - Today, the U.S. District Court for the District of New Jersey terminated the consent decree in United States v. City of Newark, marking the completion of a nine-year reform effort of the Newark Police Department (NPD).  Through the consent decree, NPD resolved prior Department of Justice findings by implementing constitutional policing requirements for stops, searches, arrests, and use of force.  Based on completion of those and other requirements, Newark moved to dismiss the decree; the Justice Department supported the City’s motion.

“Over the last decade, the Newark Police Division has made tremendous improvements to ensure constitutional policing and to increase community trust. NPD remains a valuable law enforcement partner, and we will continue to work with it to reduce gun crimes, drug trafficking, and gang violence.  The men and women of NPD should be proud of what they accomplished, and we appreciate the hard work they do every day to keep the people of Newark safe.” 

- Acting U.S. Attorney and Special Attorney Alina Habba

“We are proud to stand by the men and woman of NPD as federal oversight ends, and the court returns control of local law enforcement to the City of Newark,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division.  “We look forward to the continued, effective policing of the City—in a constitutional manner—to protect all Americans from crime.”

In 2011, the Justice Department and the U.S. Attorney’s Office for the District of New Jersey jointly initiated an investigation into the NPD under the Violent Crime Control and Law Enforcement Act of 1994, Title VI of the Civil Rights act of 1964, and the Omnibus Crime Control and Safe Streets Act of 1968.  After concluding the investigation, in 2016 the United States and the City of Newark entered into a consent decree to address the investigation’s findings that NPD engaged in a pattern or practice of conducting stops and using unjustified and excessive force in violation of the Fourth Amendment; allegations of biased policing; retaliating against individuals who questioned police action in violation of the First Amendment; and subjecting individuals to theft by NPD officers in violation of the Fourth and Fourteenth Amendments.  NPD has been implementing the decree since its entry. In 2024, the Court granted the parties’ joint motion to terminate several of the consent decree’s requirements that NPD completed by that time.

The Special Litigation Section of the U.S. Department of Justice’s Civil Rights Division and the District of New Jersey U.S. Attorney’s Office’s Civil Division and jointly handled the investigation and litigation.

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Yesterday, the U.S. District Court for the District of New Jersey terminated the consent decree in United States v. City of Newark, marking the completion of a nine-year reform effort of the Newark Police Department (NPD). Through the consent decree, NPD resolved prior Department of Justice findings by implementing constitutional policing requirements for stops, searches, arrests, and use of force. Based on completion of those and other requirements, Newark moved to dismiss the decree; the Justice Department supported the City’s motion.

“We are proud to stand by the men and woman of NPD as federal oversight ends, and the court returns control of local law enforcement to the City of Newark,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “We look forward to the continued, effective policing of the City — in a constitutional manner — to protect all Americans from crime.”

“Over the last decade, the Newark Police Division has made tremendous improvements to ensure constitutional policing and to increase community trust,” said Acting U.S. Attorney and Special Attorney Alina Habba for the District of New Jersey. “NPD remains a valuable law enforcement partner, and we will continue to work with it to reduce gun crimes, drug trafficking, and gang violence. The men and women of NPD should be proud of what they accomplished, and we appreciate the hard work they do every day to keep the people of Newark safe.”

In 2011, the Justice Department and the U.S. Attorney’s Office for the District of New Jersey jointly initiated an investigation into the NPD under the Violent Crime Control and Law Enforcement Act of 1994, Title VI of the Civil Rights act of 1964, and the Omnibus Crime Control and Safe Streets Act of 1968. After concluding the investigation, in 2016 the United States and the City of Newark entered into a consent decree to address the investigation’s findings that NPD engaged in a pattern or practice of conducting stops and using unjustified and excessive force in violation of the Fourth Amendment; allegations of biased policing; retaliating against individuals who questioned police action in violation of the First Amendment; and subjecting individuals to theft by NPD officers in violation of the Fourth and Fourteenth Amendments. NPD has been implementing the decree since its entry. In 2024, the Court granted the parties’ joint motion to terminate several of the consent decree’s requirements that NPD completed by that time.

The Special Litigation Section of the U.S. Department of Justice’s Civil Rights Division and the District of New Jersey U.S. Attorney’s Office’s Civil Division and jointly handled the investigation and litigation.

TRENTON, N.J. – A New Jersey man who was previously convicted twice of defrauding investors of more than $230 million was sentenced on November 14, 2025 to 37 years in prison for his role in a Ponzi-like fraud scheme that resulted in investor losses of more than $44 million, as well as other offenses, and his co-conspirator was sentenced to 12 years in prison, Acting U.S. Attorney and Special Attorney Alina Habba announced.  Both were also ordered to pay more than $44 million in restitution to the victims of their scheme.

Following a six-week jury trial earlier this year before U.S. District Judge Michael A. Shipp in Trenton federal court, Eliyahu “Eli” Weinstein, aka “Mike Konig,” 50, and Aryeh “Ari” Bromberg, 51, were each convicted of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, three counts of wire fraud, conspiracy to commit money laundering, transacting in criminal proceeds, conspiracy to make false statements to the U.S. Probation Office, conspiracy to obstruct justice, and obstruction of justice. Weinstein was also convicted of four counts of making false statements to the United States Probation Office. Five of Weinstein and Bromberg’s conspirators, Christopher Anderson, 49, Richard Curry, 39, Shlomo Erez, 57, Alaa Hattab, 37, and Joel Wittels, 59, previously pleaded guilty to charges stemming from the same scheme and are all awaiting sentencing.

According to documents in this case and evidence at trial:

Weinstein was previously convicted two times in New Jersey federal court for defrauding investors. His first case involved a real estate Ponzi scheme, and his second case stemmed from an additional fraud Weinstein committed while on pretrial release. These crimes resulted in combined losses to investors of approximately $230 million. On Jan. 19, 2021, Weinstein began serving a term of supervised release stemming from his prior convictions.

But soon after being released from prison, Weinstein began orchestrating a new scheme to solicit money from investors, including through a company called Optimus Investments Inc. (Optimus). Using the alias “Mike Konig,” Weinstein secretly ran Optimus through Bromberg and Wittels. They kept Weinstein’s true name and identity hidden because, as Weinstein acknowledged in a secretly recorded conversation, investors wouldn’t give them “a penny” if they learned of Weinstein’s involvement.

Weinstein, Bromberg, and Wittels received the bulk of investor money through a second company, Tryon Management Group LLC (Tryon), which was owned and controlled by Anderson and Curry. Tryon promised these individual investors—consisting mostly of friends and family—lucrative opportunities to invest in deals involving COVID-19 masks and test kits, scarce baby formula, and first-aid kits supposedly bound for wartime Ukraine. Posing as Mike Konig, Weinstein provided the information for these supposed deals. Based on that information, investors gave money to Tryon, believing the deals were legitimate and not knowing about Weinstein’s involvement. In turn, Tryon transferred those funds to Weinstein, through Optimus.

In 2021, after Optimus started receiving investor money, Optimus was unable to pay its investors. Rather than reveal this information to investors, the conspirators agreed to pool money from existing investors of both Optimus and Tryon and use it to make monthly payments to other investors in a Ponzi-like fashion. The conspirators concealed this arrangement from investors by falsely telling investors that the payments derived from legitimate investment returns, not other investors’ money.

In late August 2022, Hattab revealed Weinstein’s true identity to Anderson and Curry. In a series of subsequent meetings, which were recorded, Weinstein admitted to misappropriating investor money and making various false statements and sending fake documents concerning the purported deals. Weinstein acknowledged that he was conducting a Ponzi scheme, stating, “I finagled, and Ponzied, and lied to people to cover us.”

Once Anderson and Curry learned that Mike Konig was actually Weinstein, Weinstein and Bromberg lied repeatedly to Anderson and Curry in an effort to prevent them from reporting their misconduct to federal law enforcement and Probation. Anderson and Curry then agreed with Weinstein, Bromberg, and other conspirators to continue concealing Weinstein’s identity from investors and to raise additional money to pay off existing investors, all in an effort to stop the Ponzi scheme from falling apart and to cover up the fraud. In total, the defendants fraudulently obtained more than $88 million from investors and caused losses of more than $44 million.

In addition to defrauding investors, Weinstein and Bromberg also conspired to launder their fraud proceeds and lie to Weinstein’s federal probation officer. They helped hide Weinstein’s assets that should have been used to pay over $200 million in restitution that he still owes his previous victims. They also concealed Weinstein’s myriad business activities, income, and accounts, which he was required to disclose to the court and Probation or which were expressly prohibited by the terms of his supervised release. In multiple secretly recorded conversations, Weinstein discussed his intent to conceal his various assets from the government. In one such conversation, Weinstein referenced hidden assets that he and others “can’t touch” while he was on supervised release because they would “go to jail.” Weinstein then boasted, “I just told you something that no one in the world knows because I hid money. Get it?”

Acting U.S. Attorney and Special Attorney Alina Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Stefanie Roddy in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the convictions.

The government is represented by Assistant United States Attorney Carolyn Silane, Chief of the Economic Crimes Unit, and Assistant U.S. Attorney Marko Pesce, Deputy Chief of the Bank Integrity, Money Laundering, and Recovery Unit.

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Defense counsel for Weinstein: Ilana Haramati and Henry E. Mazurek, Esqs., New York, NY

Defense counsel for Bromberg: Marc Agnifilo and Jacob Kaplan, Esqs., New York, NY 

NEWARK, N.J. – Twelve individuals have been charged for their roles in a conspiracy to commit bank fraud by depositing stolen checks and withdrawing the funds, Acting U.S. Attorney and Special Attorney Alina Habba announced.

“As alleged in the complaint, the Defendants deposited stolen checks into fraudulent bank accounts for their own personal gain, taking advantage of a COVID-19 pandemic relief program earmarked for struggling businesses.  Rooting out fraud on pandemic programs and holding the alleged perpetrators accountable continues to be a top priority of this office and our law enforcement partners.”

- Acting United States Attorney and Special Attorney Alina Habba

Wayne Bessant, 44, of Hamilton, New Jersey; Britany Brown, 39, of Philadelphia, Pennsylvania; John Gerard Ebert, 42, of Hamilton, New Jersey; Joseph Graves-Carmichael, 43, of Trenton, New Jersey; Andrew Hooper, 37, of New Brunswick, New Jersey; Thomas Lee, 55, of Beverly, New Jersey; Patricia Kearse, 46, of Philadelphia, Pennsylvania; Clarence Semmon, 41, of Trenton, New Jersey; Ryan Small, 32, of Ewing, New Jersey; Dwayne Reddon, 39, of Trenton, New Jersey; Shabazz Rouzard, 33, of Ewing, New Jersey; and Raymond Wade, 42, of Morrisville, Pennsylvania,are charged by criminal complaint with one count of conspiracy to commit bank fraud. Ten Defendants appeared on November 13 before Magistrate Judge James B. Clark, III in Newark Federal Court. One Defendant was already in custody on a state case and one Defendant remains at large. Two defendants appeared on November 17, 2025 before Magistrate Judge José R. Almonte in Newark Federal Court. One defendant appeared on November 17, 2025 before Magistrate Judge Ann Marie Donio in Camden Federal Court. 

According to documents filed in this case and statements made in court:

From March 2023 through May 2025, the Defendants conspired to deposit stolen checks—including U.S. Department of Treasury Checks—at various banks in New Jersey and Pennsylvania. The Defendants impersonated the businesses listed as payees on the stolen checks by acquiring business documents in the names of the payees. Once the Defendants acquired the fraudulent business documents, they used them to impersonate the victims and open fraudulent business bank accounts where they deposited the stolen checks. In total, the Defendants deposited or attempted to deposit approximately 84 Treasury checks, and 27 commercial checks totaling over $11 million and split the proceeds. Many of the Treasury checks were refunds issued under the Employee Retention Credit, a program the Internal Revenue Service created during the COVID-19 pandemic to encourage businesses to retain employees.

The bank fraud conspiracy is punishable by a maximum potential penalty of 30 years in prison and also carries a fine of up to $1,000,000.

“Just as the twelve subjects schemed and conspired to cheat the system by depositing stolen checks meant for COVID-19 pandemic relief efforts, the FBI and our federal partners worked together to follow the facts and evidence that would lead to this charge. This case is a textbook example of the partnerships we build to prevent fraud against the Government and protect taxpayers from fraud in any form,” said FBI Newark Special Agent in Charge, Stefanie Roddy.

“This investigation underscores HSI’s commitment to protecting the integrity of our nation’s financial system and ensuring that those who exploit COVID-19 relief programs are held accountable,” said HSI Newark Special Agent in Charge Michael S. McCarthy. “HSI will continue to work closely with our law enforcement partners to uncover complex schemes targeting American taxpayers and to relentlessly dismantle the criminal networks responsible, stripping them of their illicit gains.”

“COVID-19 relief programs, including the Employee Retention Credit, were implemented to help honest Americans keep their jobs during an unprecedented time of hardship.  Through deception and fraud, the Defendants allegedly stole over $11 million from the hardworking businesses these pandemic relief programs were meant to benefit,” stated Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office.  “IRS-CI will continue to partner with our federal law enforcement colleagues to investigate those who defrauded pandemic relief programs and victimized those in need.”

Acting U.S. Attorney and Special Attorney Habba credited special agents with the Federal Bureau of Investigations, Newark-Trenton Resident Agency under the direction of Special Agent in Charge Stefanie Roddy; special agents with Homeland Security Investigations, Cherry Hill, under the direction of Special Agent in Charge Michael S. McCarthy; special agents with the Internal Revenue Service – Criminal Investigation, Newark Field Office, under the direction of Jenifer L. Piovesan; special agents with Treasury Inspector General for Tax Administration, Northeast Field Division, under the direction of Special Agent in Charge Michael Carpenter; special agents with the Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Christopher Silvestro; special agents with the U.S. Air Force – Office of Special Investigations, Detachment 307, Joint Base McGuire-Dix-Lakehurst, New Jersey, under the direction of Special Agent in Charge Rebecca B. Bates; and postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge, Christopher Nielson, with the investigation leading to today’s arrest. 

The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of the five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The government is represented by Assistant U.S. Attorneys Aja Espinosa and Benjamin D. Bleiberg of the Economic Crimes Unit in Newark. 

The charges and allegations contained in the complaint are merely accusations, and the Defendants are presumed innocent unless and until proven guilty.

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Defense counsel:

Bessant: David Bahuriak, Esq.

Brown: Wanda Akin, Esq.

Graves-Carmichael: Kevin Buchan, Esq.

Hooper: Jacqueline E. Cistaro, Esq.

Kearse: William Strazza, Esq.

Semmon: Tara Breslow-Testa, Esq.

Small: Laurie Fierro, Esq.

Reddon: Roberto Espinosa, Esq.

Rouzard: Kathleen Theurer-Platts, Esq.

Wade: Michael Pappa, Esq. 

NEWARK N.J. – A New Jersey tax preparer was found guilty by a jury for his scheme seeking more than $170 million in fraudulent tax refunds from the Internal Revenue Service (“IRS”) by causing more than 1,900 false tax returns to be filed with the IRS claiming COVID-19-related employment tax credits, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Leon Haynes, 52, of Teaneck, was convicted of 15 counts of aiding and assisting in the preparation and presentation of false tax returns, one count of mail fraud, and two counts of tax evasion.  Haynes was convicted following a six-day jury trial before U.S. District Judge William J. Martini in Newark federal court.  Sentencing is scheduled for March 12, 2026.

According to documents in this case and evidence at trial:

In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit and sick and family leave credit that small businesses could use to help keep their business afloat and employees on payroll.

From November 2020 to May 2023, Haynes orchestrated a massive, multimillion dollar scam to exploit those COVID-related tax credits for his own greed. As a tax preparer, Haynes prepared and submitted, and worked with others to prepare and submit, more than 1,900 false employment tax returns to the IRS claiming COVID-related tax credits on behalf of himself and his clients. Each of these tax forms contained a number of false statements.  For example, the vast majority of the tax forms claimed a fictitious number of employees and/or fabricated wages.

Haynes and his co-conspirators fraudulently sought more than $170 million in tax refunds on behalf of his own businesses and his clients, and successfully caused the government to pay out over $55 million in refunds.

Throughout the scheme Haynes also charged clients a percentage of the refund checks as his fee and requested cash payments. He failed to report the money he received from his clients, thereby evading his own taxes. 

Each count of aiding and assisting in the preparation of false returns carries a maximum penalty of three years in prison and a $250,000 fine; mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine; and each tax evasion count carry a maximum penalty of five years in prison and a $250,000 fine.

Acting U.S. Attorney and Special Attorney Alina Habba credited special agents the IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly, and postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation.

The government is represented by Assistant U.S. Attorney Fatime Meka Cano, Matthew Stark, and Peter A. Laserna of the U.S. Attorney’s Office Criminal Division in Newark. Substantial assistance was provided by the U.S. Justice Department’s Tax Division.

The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds. 

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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Defense Counsel for Haynes: Michael Koribanics, Esq., and Vando Cardoso, Esq. 

CAMDEN, N.J. – A New Jersey woman was charged with conspiring and falsely reporting to law enforcement that she had been violently assaulted with a firearm due to her employment with a federal official, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Natalie Greene, 26, of Ocean City was charged with one count of conspiracy to convey false statements and hoaxes and one count of making false statements to federal law enforcement.  On November 19, 2025, Greene made her initial appearance in federal court before U.S. Magistrate Judge Elizabeth A. Pascal.  Greene was released on a $200,000 unsecured bond and additional conditions, as set by the Court.

According to statements made in court and documents filed in the case:

Late at night on July 23, 2025, Greene’s co-conspirator called 911 and reported that she and Greene had been attacked by three men when they were out walking on a trail at a nature preserve in Egg Harbor Township.  According to the co-conspirator, during the attack, the men had called Greene by name and had specifically referenced her employment with Federal Official 1, an official whose identity is known to the Government.   

When law enforcement officers located Greene, she was lying in a wooded area just off the trail, with her hands and feet bound together with black zip ties.  Greene’s shirt was pulled over her head and was also tied with a black zip tie. Greene had numerous lacerations on her face, neck, upper chest, and shoulder.  The words “TRUMP WHORE” were written on her stomach and the words “[Federal Official 1] IS RACIST” were written on her back.  Greene was crying and yelling that one of her alleged attackers had a gun.

Greene told police officers that one or more of the men who allegedly attacked her said he had a gun and threatened to shoot her.  Greene also said that one or more of the attackers had held her down and restrained her movement, cutting her and writing on her body. A couple days later, after receiving medical treatment for her lacerations, Greene again described her alleged attack to law enforcement officers, including an agent with the Federal Bureau of Investigation.

The investigation revealed that Greene had not, in fact, been attacked by three men at gunpoint on July 23.  Instead, Greene had paid a body modification/scarification artist to deliberately cut the lacerations on her face, neck, upper chest, and shoulder, based on a pattern that she had provided beforehand.   Law enforcement officers recovered black zip ties in Greene’s car on the night of the alleged attack, similar to the zip ties that had been used to bind Greene’s arms and feet.  Also, the investigation revealed that, two days prior to the alleged attack, the cellphone of Greene’s co-conspirator had been used to search “zip ties near me.”

The count of conspiracy has a maximum penalty of five years’ imprisonment, a $250,000 fine, and a term of 3 years of supervised release.  The count of false statements also has a maximum penalty of five years’ imprisonment, a $250,000 fine, and a term of 3 years of supervised release. 

Acting U.S. Attorney and Special Attorney Habba credited the following law enforcement agencies with the investigation:  special agents and Joint Terrorism Task Force Officers with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy; detectives with the Atlantic County Prosecutor’s Office, under the direction of Prosecutor William Reynolds; officers and detectives with the Egg Harbor Township Police Department, under the direction of Chief Marcella Aylwin; officers with the New Jersey State Police; and special agents with the Capitol Police.

The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Sara A. Aliabadi in the Criminal Division in Camden, and James Donnelly of the Department of Justice National Security Division.

The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.                    

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Defense counsel: Louis M. Barbone, Jacobs & Barbone, P.A.

TRENTON, N.J. – An Ocean County, New Jersey man was sentenced to 120 months in prison for possessing images of child sexual abuse, Acting U.S. Attorney and Special Attorney Alina Habba announced today.

John Mangan, 79, of Lanoka Harbor, previously pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of possession of child pornography. Judge Shipp imposed the sentence today in Trenton federal court.

According to documents filed in this case and statements made in court:

On October 29, 2024, agents with Department of Homeland Security, Homeland Security Investigations, executed a search warrant at Mangan’s residence in Lanoka Harbor and discovered an electronic device containing over 250 images of children being sexually abused.  Mangan was previously convicted of sexual offenses involving minors, including: (i) a New Jersey conviction for sexual assault against a minor, for conduct that occurred while Mangan was a school principal; and (ii) a prior federal conviction for possession of child pornography.

In addition to the prison term, Judge Shipp sentenced Mangan to a five-year term of supervised release and to pay restitution to his victims.

Acting U.S. Attorney and Special Attorney Habba credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Michael S. McCarthy, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Matt Belgiovine of the Criminal Division in Trenton.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.

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Defense counsel: Suzanne Axel, Hackensack, New Jersey.

NEWARK, NJ. –  The U.S. Attorney’s Office has charged a New Jersey man with possessing a dangerous weapon and depredation of federal property during an incident that occurred last week, Acting United States Attorney and Special Attorney Alina Habba announced.

Keith Michael Lisa, 51, of Barnegat, NJ, was arrested and charged by complaint with one count of possession of a dangerous weapon in a federal facility and one count of depredation of federal property.  Lisa appeared on Monday, November 17, 2025, before U.S. Magistrate Judge José R. Almonte in Newark federal court and was detained.

According to documents filed in this case and statements made in court:

Lisa entered the Peter Rodino Federal Building in Newark, shortly before 5:00pm, on Wednesday, November 12, 2025, with a full-sized, aluminum baseball bat.  Lisa said he needed to see the Attorney General’s Office and security informed Lisa that the bat was a prohibited weapon that he could not bring into the building.  Lisa left and returned a few minutes later without the weapon. He was visibly irate and mumbling as he went through security. Lisa continued to the reception area of the U.S. Attorney’s Office, where witnesses saw that he was angry and making threats about tearing the place up. Lisa damaged federal property by knocking framed items off the walls. After learning law enforcement was looking for him, rather than turn himself in, Lisa went into hiding, requiring a coordinated, state-wide effort by federal, state, and local law enforcement to locate and arrest him in the early morning hours of November 15.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy; the U.S. Marshals Service, under the direction of Marshal Juan Mattos, Jr., Homeland Security Investigations (HSI) Newark, under the direction of Special Agent in Charge Michael S. McCarthy; Homeland Security Investigations (HSI) New York, under the direction of Special Agent in Charge Ricky J. Patel; Federal Protective Service, under the direction of Director Faron K. Paramore; New Jersey State Police, under the direction of Colonel Patrick J. Callahan; Ocean County Sheriff’s Office, under the direction of Sheriff Michael G. Mastronardy, and local Mahwah Police Department and Barnegat Police Department, with the investigation leading to the apprehension.

The government is represented by Ari B. Fontecchio and Lauren Kober, both Assistant United States Attorneys in Newark’s Criminal Division.

The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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Defense counsel: Assistant Federal Defender Candace Hom, Esq. 

NEWARK, NJ. –  An Indonesian jewelry company, its Indonesian co-owner, and two other Indonesian and Italian employees were charged last week with engaging in a scheme to illegally evade more than $86 million in customs duties and tariffs on more than $1.2 billion in jewelry imports into the United States, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Icha Anastasia, 37, of Surabaya, East Java, Indonesia, and Claudio Fogale, 51, of Mussolente, Italy were arrested and charged last week by complaint with one count of conspiracy to commit wire fraud.  They appeared on Wednesday, November 12, 2025, before U.S. Magistrate Judge James B. Clark, III in Newark federal court and were detained.  Michael Yahya, who was also charged, remains in Indonesia and has not yet been arrested.

“As the complaint alleges, the defendants conspired to evade duties and tariffs for imports into the United States on an enormous scale. These charges demonstrate that the U.S. Attorney’s Office and our agency partners are dedicated to rooting out efforts by foreign companies and individuals to defraud the United States and undercut American businesses.”

- Acting U.S. Attorney and Special Attorney Alina Habba

“Perpetrating a years-long scheme to evade paying millions of dollars of customs duties and tariffs is a serious criminal offense.  Michael Yahya, Icha Anastasia, Claudio Fogale, and others are alleged to have used a foreign company to import over $1.2 billion of jewelry and illegally defraud the United States out of more than $86 million in customs duties and tariffs,” stated Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office.  “IRS-CI is committed to working with our law enforcement partners to investigate fraud against the United States and foster confidence in the legal system.” 

“This case underscores HSI’s unwavering commitment to protecting the integrity of U.S. trade and ensuring that those who attempt to evade lawful duties or circumvent U.S. laws are held accountable,” said Homeland Security Investigations (HSI) Newark Special Agent in Charge Michael S. McCarthy. “As alleged, the defendants engaged in a complex, multi-year scheme to evade more than $86 million in duties and tariffs—defrauding the U.S. government and undermining legitimate American businesses. HSI, in partnership with our federal law enforcement colleagues, will continue to investigate and dismantle schemes that threaten the nation’s economic security and the rule of law.”

“This case underscores CBP’s role in safeguarding the U.S. economy by enforcing trade laws and holding suspected bad actors accountable,” said CBP’s New York Field Office Director of Field Operations Francis J. Russo. “Our officers and import specialists used data-driven targeting and meticulous examinations to help disrupt this suspected duty-evasion scheme while facilitating legitimate commerce.”

According to documents filed in this case and statements made in court:

PT Untung Bersama Sejahtera, a/k/a “UBS Gold” (“UBS Gold”), Yahya, Anastasia, Fogale, and others have been involved in a large-scale customs duty and tariff evasion scheme.  UBS Gold is a major jewelry company headquartered in Indonesia that ships jewelry around the globe, including to the United States.  Yahya, an Indonesian national, is a co-owner of UBS Gold and its Export Marketing Head; Anastasia, an Indonesian national, served as a Senior Account Executive for UBS Gold who serviced customers in the United States; and Fogale, an Italian national, was also a UBS Gold employee who serviced customers in the United States.

UBS Gold—through its employees, agents, and representatives Yahya, Anastasia, Fogale, and others—engaged in a conspiracy to evade lawful duties and tariffs for shipments of jewelry to the United States.  To evade tariffs and duties, the defendants engaged in at least two related and overlapping schemes.

For years until in or around the end of 2020, Indonesia had duty-free treatment with the United States through the Generalized System of Preferences (“GSP”) program. The GSP program expired on or about December 31, 2020, and was not reauthorized by Congress.  Therefore, from on or about January 1, 2021, through the present, the United States has imposed a duty on jewelry imported from Indonesia to the United States.  UBS Gold and its co-conspirators evaded these duties by making jewelry in Indonesia and then shipping it to Jordan, which had a Free Trade Agreement with the United States, before sending it to the United States. The defendants then falsely claimed that UBS Gold jewelry had been manufactured in Jordan, which avoided the duty that would otherwise apply.

Starting earlier this year, the United States imposed tariffs for the importation of goods into the United States from many different countries, including Indonesia and Jordan.  To avoid those tariffs, the defendants and co-conspirators began shipping scrap gold from the United States to Jordan, which they falsely claimed was gold jewelry that simply needed to be assembled or finished in Jordan. Instead, the defendants and co-conspirators swapped the scrap gold for UBS Gold jewelry made in Indonesia, which they then shipped from Jordan to the United States.  The defendants and co-conspirators falsely claimed that the jewelry had been manufactured in the United States, so they could avoid paying the tariffs that would otherwise apply.

Through these schemes, from in or around 2021 through in or around October 2025, the defendants caused UBS Gold and its customers to avoid more than approximately $86,477,705.72 in duties and tariffs on more than $1.2 billion in jewelry shipments to the United States, including to New Jersey.

The wire fraud conspiracy charge carries a maximum of 20 years in prison and a maximum fine of either $250,000 for the individual defendants or $500,000 for the corporate entity or twice the gain or loss from the offense, whichever is greater.

Acting U.S. Attorney and Special Attorney Habba credited special agents and task force officers of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark; special agents with Homeland Security Investigations in Newark, under the direction of Special Agent in Charge Michael S. McCarthy; and officers and specialists of U.S. Customs and Border Protection at John F. Kennedy International Airport in New York, under the direction of Director of Field Operations Francis J. Russo.

The government is represented by Assistant U.S. Attorneys Olta Bejleri of the Economic Crimes Unit, Peter Laserna of the Bank Integrity, Money Laundering, and Recovery Unit, and Marko Pesce, Deputy Chief of the Bank Integrity, Money Laundering, and Recovery Unit in Newark.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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Defense Counsel for Icha Anastasia: Jerry Ballarotto, Hamilton

Defense Counsel for Claudio Fogale: Joseph Amsel, Newark

Marek Cherkaoui, 21, of Egg Harbor Township, New Jersey, was arrested today on cyberstalking offenses in connection with a Nihilistic Violent Extremist (NVE) network known as 764. He made his initial appearance today in the District of New Jersey and was ordered detained.

According to court documents, Cherkaoui has a lengthy history of making online comments involving threats and advocating for and supporting violence. From December 2024 through May 2025, Cherkaoui allegedly used the internet to threaten a minor female and told her to cut herself. On two occasions, the minor female cut her arms after being threatened by Cherkaoui.

According to the complaint, Cherkaoui has a history of making online comments espousing ideology related to the NVE network known as 764. Cherkaoui has expressed support for mass shooters, solicited child sex abuse materials from minors, and encouraged other individuals to harm themselves and others. Cherkaoui previously purchased books regarding the manufacture of explosives, body armor, zip ties, a trench coat, ski masks, and tactical gear. Many of these items were seized from his home in a June 2025 search by law enforcement agents. During the search of Cherkaoui’s home today, FBI agents found writings in which Cherkaoui discussed and planned murder and terroristic acts, including a multi-step plan that involving joining ISIS and returning to the United States to commit acts of terrorism.

The count of cyberstalking a minor victim carries a maximum penalty of 10 years in prison, up to a $250,000 fine, and up to three years of supervised release. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI’s Joint Terrorism Task Force is investigating the case, with valuable assistance from the New Jersey State Police.

The U.S. Attorney’s Office for the District of New Jersey and the National Security Division’s Counterterrorism Section are prosecuting the case.

The Justice Department remains vigilant against the threat of Nihilistic Violent Extremist (NVE) networks, like 764, that operate within the United States and around the globe. NVEs often target vulnerable individuals, including minors, using social media platforms to share child sexual abuse material (CSAM) and gore material, and groom victims toward committing acts of violence. Victims are often extorted, coerced, compelled, and blackmailed into complying with NVE demands, including self-mutilation, online and in-person sexual acts, harm to animals, sexual exploitation of siblings and others, acts of violence, threats of violence, suicide, and murder. For more information on how to protect children and others, read about the online risks here: Parents, Caregivers, Teachers — FBI and the FBI’s March 2025 public service announcement.

A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

CAMDEN, N.J. — Marek Cherkaoui, 21, of Egg Harbor Township, New Jersey, was arrested today on cyberstalking offenses in connection with a Nihilistic Violent Extremist (NVE) network known as 764, Acting U.S. Attorney and Special Attorney Alina Habba announced. He made his initial appearance today in the District of New Jersey and was ordered detained.

According to statements made in court and documents filed in the case:

Cherkaoui has a lengthy history of making online comments involving threats and advocating for and supporting violence. From December 2024 through May 2025, Cherkaoui allegedly used the internet to threaten a minor female and told her to cut herself. On two occasions, the minor female cut her arms after being threatened by Cherkaoui.

Cherkaoui has a history of making online comments espousing ideology related to the NVE network known as 764. Cherkaoui has expressed support for mass shooters, solicited child sex abuse materials from minors, and encouraged other individuals to harm themselves and others. Cherkaoui previously purchased books regarding the manufacture of explosives, body armor, zip ties, a trench coat, ski masks, and tactical gear. Many of these items were seized from his home in a June 2025 search by law enforcement agents. During the search of Cherkaoui’s home today, FBI agents found writings in which Cherkaoui discussed and planned murder and terroristic acts, including a multi-step plan that involving joining ISIS and returning to the United States to commit acts of terrorism.

The count of cyberstalking a minor victim carries a maximum penalty of 10 years in prison, up to a $250,000 fine, and up to three years of supervised release. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting U.S. Attorney and Special Attorney Habba credited special agents and Joint Terrorism Task Force Officers of Federal Bureau Investigation, under the direction of Special Agent in Charge Stefanie Roddy, and the New Jersey State Police with the investigation. The U.S. Attorney’s Office for the District of New Jersey and the National Security Division’s Counterterrorism Section are handling the prosecution.

The Justice Department remains vigilant against the threat of Nihilistic Violent Extremist (NVE) networks, like 764, that operate within the United States and around the globe. NVEs often target vulnerable individuals, including minors, using social media platforms to share child sexual abuse material (CSAM) and gore material, and groom victims toward committing acts of violence. Victims are often extorted, coerced, compelled, and blackmailed into complying with NVE demands, including self-mutilation, online and in-person sexual acts, harm to animals, sexual exploitation of siblings and others, acts of violence, threats of violence, suicide, and murder. For more information on how to protect children and others, read about the online risks here: Parents, Caregivers, Teachers — FBI and the FBI’s March 2025 public service announcement.

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A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

NEWARK, N.J. – A New Jersey man and a Washington man were charged with conspiracy and attempt to provide material support to the Islamic State of Iraq and al Sham (“ISIS”), Senior Counsel Philip Lamparello announced.

Tomas-Kaan Jimenez-Guzel, 19, of Montclair, New Jersey and Saed Ali Mirreh, 19, of Kent, Washington were each charged by complaint with one count of conspiracy and one count of attempt to provide material support to a designated foreign terrorist organization.  Jimenez-Guzel previously, on November 5, 2025, had his initial appearance in federal court before U.S. Magistrate Judge André M. Espinosa, and was detained.  Mirreh also had his initial appearance in federal court the same day before U.S. Magistrate Judge Michelle L. Peterson, and was detained.

According to statements made in court and documents filed in the case:

From July 24, 2025 to November 4, 2025, through communications on encrypted messaging applications, Jimenez-Guzel, Mirreh, and other co-conspirators agreed to travel to Turkey in November 2025. They also agreed with other co-conspirators to travel from Turkey to “sham,” which is an Arabic term for the historical region of greater Syria, to join ISIS as fighters, and to provide themselves and others as personnel to ISIS.

On October 27, 2025, Jimenez-Guzel purchased a plane ticket to depart from Newark Liberty International Airport to Istanbul, Turkey on November 17, 2025. On October 28, 2025, Mirreh purchased a ticket to depart from Seattle-Tacoma International Airport to Istanbul, Turkey November 16, 2025.

After other individuals in Dearborn, Michigan, with whom Jimenez-Guzel and Mirreh were communicating were arrested on October 31, 2025, and charged with offenses related to those individuals’ plot to carry out an armed attack on behalf of ISIS, Jimenez-Guzel, Mirreh, and their co-conspirators accelerated their travel plans.

On November 3, 2025, Jimenez-Guzel re-booked his flight from Newark Liberty International Airport to Istanbul, Turkey to leave instead on November 5, 2025 (in the early morning hours, shortly after midnight on November 4, 2025). Then, on November 4, 2025, after communicating with Jimenez-Guzel and other co-conspirators, Mirreh booked an additional flight from Seattle-Tacoma International Airport to Istanbul, Turkey to leave on November 5, 2025. Jimenez-Guzel was arrested at Newark Liberty International Airport on November 4, 2025 after he arrived for his booked flight. Mirreh was arrested later that evening at his home in Washington State.

The counts of conspiracy and attempt to provide material support to a designated foreign terrorist organization each have a maximum penalty of 20 years’ imprisonment, a $250,000 fine, and a term of life of supervised release.  

Senior Counsel Lamparello credited Special Agents and Joint Terrorism Task Force Officers of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, New Jersey and Special Agent in Charge W. Mike Herrington in Seattle, Washington; and officers of the New York Police Department, Montclair Police Department, and Rowan University Police Department.  He also thanked the U.S. Attorney’s Office for the Western District of Washington.

The government is represented by Assistant U.S. Attorney Camila A. Garces of the National Security Unit in Newark, and Trial Attorneys James Donnelly, Patrick Cashman, and John Cella of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.

The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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Defense counsel for Jimenez-Guzel: Alyssa Cimino, Esq.

Defense counsel for Mirreh: Dawn Farina, Esq. and Casey M. Arbenz, Esq. 

NEWARK, N.J. – An Essex County Jersey man was charged with making interstate threats to Jewish individuals and to a California-based business, Senior Counsel Philip Lamparello announced.

Milo Sedarat, 21, of Montclair, New Jersey, was charged with two counts of transmitting threats in interstate commerce. Sedarat previously, on November 5, 2025, had his initial appearance in federal court before U.S. Magistrate Judge André M. Espinosa, and was detained.

According to statements made in court and documents filed in the case:

In numerous direct messages on a social media platform, Sedarat expressed his hatred towards Jewish people and his desire to kill them.  Specifically, on January 15, 2025, Sedarat stated through direct message to another individual, “I hate Israel more than anything - [a]nd the people who support or sympathize - [b]ro my moms Jewish friends r brainwashing her . . . into being a Zionist . . . I wanna kill her friends [l]ike deadass . . . I’m gonna stab them with my sword.”  Sedarat also sent photographs to the individual via the social media platform depicting himself holding a sword, holding a knife, and holding two swords.   

On July 24, 2025, Sedarat texted another individual, “[b]ro, I’m actually gonna go strap a bomb to my chest and go blow up [California-based company] headquarters.”  The California-based company is an online platform headquartered in Palo Alto, California where businesses can hire freelancers to perform a variety of services, such as writing, graphic design, web development, marketing, and other online work.  Sedarat appeared to claim in the text conversation that the California-based company “stole my money and income” by closing his account.  

The counts of transmitting threats in interstate commerce each have a maximum penalty of five years’ imprisonment and a $250,000 fine.  

Senior Counsel Lamparello credited Special Agents and Joint Terrorism Task Force Officers of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, New Jersey and officers of the New York Police Department and Montclair Police Department.

The government is represented by Assistant U.S. Attorneys Casey S. Smith, Sammi Malek, and Vincent D. Romano of the National Security Unit in Newark, and Trial Attorney James Donnelly of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.

The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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Defense counsel for Sedarat: Areeb Salim, Esq. 

TRENTON, N.J. – A Mercer County, New Jersey man admitted that he defrauded the U.S. Department of Veterans Affairs by improperly obtaining over $256,000.00 in program benefits, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Mark Stratton, 67, of Lawrence Township, New Jersey, pled guilty on September 25, 2025, before U.S. District Judge Robert Kirsch in Trenton federal court to an information charging him with theft of public money.

According to documents filed in this case and statements made in court:

The United States Department of Veterans Affairs provided disability benefits to Stratton’s father, which passed to Stratton’s mother after his father died. Those benefits were paid monthly through electronic funds into a joint bank account held by both Stratton and his mother. After Stratton’s mother died in 2008, the benefits should have been terminated; however, Stratton did not notify the Department of Veterans Affairs about his mother’s death. Instead, he made withdrawals of the disability benefits for his own personal use. Through a joint investigation by the U.S. Department of Veterans Affairs-Office of the Inspector General and the Federal Bureau of Investigation, law enforcement determined that between 2008 and 2025, Stratton improperly withdrew approximately $256,027.00 in benefits.  

The charge of theft of public money carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for January 27, 2026.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the U.S. Department of Veterans Affairs – Office of the Inspector General, under the direction of Special Agent in Charge Christopher Algieri, and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the guilty plea.

The government is represented by Special Assistant U.S. Attorney Keith Abrams of the Narcotics/OCDETF Unit in Newark.

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Defense counsel: Jonathan Marshall, Esq.

CAMDEN, N.J. – A Mays Landing woman admitted to conspiring to defraud the Internal Revenue Service by filing false employment tax returns that concealed a company’s cash payroll, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Denise Davis, 52, of Mays Landing, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court to an information charging her with one count of conspiring to defraud the IRS.

According to documents filed in this case and statements made in court:

Davis worked at Davis Brothers Chimney Sweep & Masonry (“Davis Brothers”), a business located in Egg Harbor Township, New Jersey, owned by Davis’s spouse.  Davis admitted that between January 1, 2018 and April 30, 2024, she conspired with Henry Collins, the business’s bookkeeper, to defraud the IRS.  As part of the conspiracy, Collins utilized a commercial check casher to negotiate a substantial amount of Davis Brothers’s gross receipts checks.  Collins used some of the resulting cash to pay himself and other Davis Brothers employees in cash.  Collins provided the rest of the cash to Davis and her spouse.  Davis and Collins then provided false and misleading information to the business’s outside accounting firm that resulted in the preparation and filing of false payroll tax returns that omitted the employees paid in cash and their cash wages.  Davis also admitted that she failed to file individual income tax returns for herself and her spouse during the same time period.  Davis admitted that the conspiracy resulted in a tax loss of approximately $1.18 million.

The count of conspiracy carries a maximum penalty of 5 years in prison and a fine of up to $250,000.  Sentencing is scheduled for February 4, 2026.

Collins previously pleaded guilty for his role in the conspiracy and is scheduled to be sentenced in December 2025.

Acting U.S. Attorney and Special Attorney Habba credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.

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Defense counsel: Michele Finizio, Esq., Moorestown, New Jersey

TRENTON, N.J. – A former co-founder and top executive of Prophecy Asset Management LP was arraigned today on charges of conspiring to defraud dozens of victim investors out of $294 million in funds, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Jeffrey Spotts, 58, of Summit, New Jersey, was arraigned today before U.S. District Court Judge Michael A. Shipp in Trenton federal court on an indictment charging him with one count each of conspiracy to commit wire fraud, wire fraud, conspiracy to commit securities fraud, and securities fraud.

One of Spotts’s co-conspirators, John Hughes, 58, of Mahwah, New Jersey, previously pled guilty to securities fraud charges stemming from the same scheme.

According to the indictment:

Prophecy solicited investments and operated funds that, at their peak, had over $360 million in assets under management. Spotts co-founded Prophecy, with Hughes, and worked as its Chief Executive Officer and Portfolio Manager. From January 2015 to March 2020, Spotts conspired with Hughes to falsely represent to investors that Prophecy employed a “first-loss” trading strategy that purportedly allocated investor money to a diverse array of traders, called sub-advisors, who were required to provide cash collateral in order to gain access to the investors’ pooled money and backstop any potential losses. Spotts and Hughes also falsely represented to investors that if a sub-advisor began to experience trading losses that approached the amount of their required cash collateral, Prophecy would contact the sub-advisor to increase or replenish their collateral and, if necessary, suspend allocations and trading, or even terminate the sub-advisor if losses were substantial. These false claims induced victims to believe that Prophecy operated low-risk, transparent and diversified funds.

In reality, over time, Spotts and Hughes allocated most of the Funds’ capital to a single, primary sub-advisor without requiring him to provide cash collateral to back potential losses. They also failed to suspend his allocations or trading, even though he sustained approximately $290 million in losses that far exceeded his cash collateral. Spotts and Hughes fraudulently concealed this and other information from victim investors, causing the victims to believe their investments were far more secure than they actually were. Spotts, Hughes and the sub-advisor also actively covered up these spiraling losses and collateral deficiencies by using, among other things, bogus transactions and forged documents.

In turn, the sub-advisor helped Spotts and Hughes conceal millions of dollars in losses they caused to Prophecy’s funds through bad investments. Spotts, Hughes and the sub-advisor used fake documents and money that the sub-advisor provided to paper over and hide these bad investments from victim investors and Prophecy’s auditor. 

The fraud ultimately resulted in substantial trading losses that wiped out Prophecy’s funds and caused over $294 million in losses to the victims. 

The conspiracy to commit wire fraud and wire fraud charges each carry a maximum penalty of 20 years in prison and a $250,000 fine, the conspiracy to commit securities fraud charge carries a maximum penalty of 5 years in prison and a $250,000 fine, and the securities fraud charge carries a maximum penalty of 20 years in prison and a $5,000,000 fine. Sentencing for Hughes is scheduled for March 10, 2026.

The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Spotts based on the same and additional conduct and had previously filed a civil complaint against Hughes.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the FBI, under the direction of Special Agent in Charge Wayne A Jacobs, Philadelphia Division, with the investigation leading to today’s charges. She also expressed appreciation for the Securities and Exchange Commission, under the direction of Margaret Ryan, Director, Division of Enforcement.

The government is represented by Assistant U.S. Attorneys Aaron L. Webman of the U.S. Attorney’s Office Economic Crimes Unit in Newark and Martha K. Nye, Attorney-in-Charge of the U.S. Attorney’s Office in Trenton.

The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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Defense Counsel for Spotts: Lee Vartan, Esq.

Newark, N.J. – An Orange County, California resident entered into settlement agreements with the United States resolving allegations that he violated the False Claims Act by paying kickbacks in exchange for the referral of certain prescriptions, Acting U.S. Attorney and Special Attorney Alina Habba announced today.

According to the settlement agreements, Andrew Do owned and operated three mail-order pharmacies in Orange County, California between January 2016 through December 2020. The Government alleges that, during that time, Do paid kickbacks to receive prescriptions for certain compounded topical creams, filled the prescriptions, and then submitted claims to Medicare for reimbursement. According to the Government, Do knew that his payments to induce prescriptions paid for by Medicare violated the Anti-Kickback Statute and caused false claims to be submitted to the Medicare program, all in violation of the False Claims Act.

Under the terms of the settlement agreements, Do will pay $600,000 to the United States. This settlement amount is based on Do’s financial disclosures and his inability to pay.

One of the settlement agreements resolves allegations brought against one of Do’s pharmacies that was filed under the qui tam or whistleblower provisions of the False Claims Act. Under the False Claims Act, private parties can file an action on behalf of the United States and receive a portion of any recovery. Under today’s resolution, the relator in that action, Daniel Toellner, will receive up to $100,000 of the settlement agreement involving Do’s conduct on behalf of one of his pharmacies, Family Care Investments d/b/a Value Pharmacy.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Christopher Silvestro, with the investigation.

The government is represented by Assistant U.S. Attorney David V. Simunovich of the U.S. Attorney’s Office, Health Care Fraud & Opioid Abuse Prevention Unit, in Newark.

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

The qui tam case is captioned United States ex rel. Toellner v. Apogee Bio-Pharm Corp., et al., Civil Action No. 18-13640 (D.N.J.).

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Counsel for Andrew Do: Vicki Podberesky, Esq., Los Angeles, CA

Counsel for Relator Daniel Toellner: Joseph Callow, Esq., Cincinnati, OH

NEWARK, N.J. – Two New Jersey individuals were charged with conspiracy to unlawfully divert oxycodone, a Schedule II controlled substance, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Michael Kiszka, 60, of East Hanover, New Jersey and Gregory Kubina, 50, of Whiting, New Jersey, were charged by complaint with conspiracy to distribute and possess with intent to distribute oxycodone, in violation of Title 21, United States Code, Section 846. On September 11, 2025, they made their initial appearance in federal court before U.S. Magistrate Judge Jessica S. Allen. The defendants were released on a $100,000 unsecured bond.

According to documents filed in this case and statements made in court:

Kiszka and Kubina engaged in a scheme to obtain high-dosage oxycodone pills from several doctors located in New Jersey and sell those pills to street-level drug users.  Specifically, Kiszka obtained oxycodone pills directly from certain doctors and purchased oxycodone pills that Kubina obtained from other doctors. Beginning around April 2024, Kiszka and Kubina were responsible for diverting over 10,000 oxycodone pills to street-level drug users.

If convicted, each defendant faces a statutory maximum sentence of twenty years in prison and a $1 million fine.

Acting U.S. Attorney and Special Attorney Habba credited special agents, task force officers, and diversion investigators with the Drug Enforcement Administration (DEA) under the direction of Special Agent in Charge Cheryl Ortiz in Newark, New Jersey, with the investigation.

The government is represented by Assistant U.S. Attorneys Kruti D. Dharia and Jake A. Nasar of the Office’s Health Care Fraud and Opioids Abuse Prevention Unit.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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Defense counsel:         

Claressa Lowe, Esq., Assistant Federal Public Defender (Gregory Kubina)

Kevin G. Roe, Esq. (Michael Kiszka)

NEWARK, N.J. – A Union County man admitted to receiving and possessing child pornography, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Jack Wilder, 27, of Somerville, New Jersey, pleaded guilty today before U.S. District Judge Jamel K. Semper in Newark federal court to an Information charging him with one count of receipt of child pornography and one count of possession of child pornography.

According to documents filed in this case and statements made in court:

On or about July 23, 2024, Wilder, a teacher at a school in Plainfield, returned from an international trip aboard a flight that landed in New York.  Law enforcement seized Wilder’s cell phone at the airport and subsequently searched it, uncovering images and videos of minors engaging in sexually explicit conduct.  Approximately one week after law enforcement seized his cell phone, Wilder obtained a new cell phone.  From on or about July 29, 2024 through on or about May 1, 2025, Wilder knowingly received images and videos of child pornography on the second cell phone.

The charge of receipt of child pornography carries a mandatory minimum penalty of 5 years in prison, a maximum penalty of 20 years in prison, and a $250,000 fine.  The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine.  Sentencing is scheduled for January 26, 2026.

Acting U.S. Attorney and Special Attorney Habba credited the work of the Department of Homeland Security, Homeland Security Investigations Newark, under the direction of Special Agent in Charge Michael S. McCarthy, with the investigation leading up to this guilty plea.

The government is represented by Assistant U.S. Attorney Casey S. Smith of the Criminal Division in Newark.

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Defense counsel: Michael Baldassare, Esq.

NEWARK, N.J. – A Passaic County, New Jersey woman admitted that she defrauded the Social Security Administration by improperly obtaining over $144,000.00 in Social Security survivor benefits, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Joan Charnecky, 60, of West Milford, New Jersey, pled guilty on September 10, 2025, before Senior U.S. District Judge Katharine S. Hayden in Newark federal court to an Information charging her with theft of public money.

According to documents filed in this case and statements made in court:

The Social Security Administration provided widow’s insurance benefits to Charnecky’s mother. Those benefits were paid monthly through electronic funds into Charnecky’s mother’s bank account. After Charnecky’s mother died in 2012, Charnecky did not notify the Social Security Administration about her mother’s death, and she made withdrawals of the widow’s insurance benefits for her own personal use. Through an investigation by the Social Security Administration, it was determined that between 2012 and 2022, Charnecky withdrew approximately $144,768.30 in widow’s insurance benefits.  

The charge of theft of public money carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for January 21, 2026.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the Social Security Administration – Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly, with the investigation leading to the guilty plea.

The government is represented by Special Assistant U.S. Attorney Keith Abrams of the Narcotics/OCDETF Unit in Newark.

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Defense counsel: Joel Bacher, Esq.

NEWARK, N.J. – A citizen of the Dominican Republic admitted his role in a Paterson, New Jersey, kidnapping, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Joel Ramon Garcia, 33, pleaded guilty on September 9, before U.S. District Judge William J. Martini in Newark federal court to an Indictment charging him with kidnapping.  The sentencing date is scheduled for January 20, 2026.

According to documents filed in this case and statements made in court:

On or about November 15, 2023, Garcia and another individual kidnapped two victims at gun point in Paterson, New Jersey, and then drove the victims to Massachusetts, where they held the victims for ransom.  Shortly after the kidnapping or about November 15, 2023, the kidnappers contacted the father of one of the victims and threatened that the victim’s fingers would be cut off if the ransom was not paid.  The kidnappers ultimately released the victims on or about November 17, 2023.

The charge of kidnapping carries a maximum penalty of life in prison and a maximum fine of $250,000.

Acting U.S. Attorney and Special Attorney Habba credited members of the FBI’s New Jersey field office, under the direction of Special Agent in Charge Stefanie Roddy, with the investigation leading to the charges.  She also thanked members of the FBI’s Boston field office under the leadership of Special Agent in Charge Ted Docks, the Paterson Police Department, under the leadership of Officer in Charge Patrick Murray, members of the Passaic County Sheriff’s Office, under the leadership of Sheriff Thomas Adamo, members of the Clifton Police Department, under the leadership of Police Chief Thomas Rinaldi, members of the Bergen County Prosecutor’s Office, under the leadership of Prosecutor Mark Musella, and members of the Cedar Grove Police Department, under the leadership of Police Chief Francis Pumphrey with their help in the investigation.

The government is represented by Assistant U.S. Attorneys John Maloy of the Organized Crime and Gangs Unit and Carolyn Silane, Deputy Chief of the Economic Crimes Unit in Newark.

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Defense counsel: Michael Rubas, Esq.

Newark, N.J. – A manufacturer and supplier of concrete formwork, shoring and temporary scaffolding systems based in Fair Lawn, New Jersey entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by taking a Paycheck Protection Program (PPP) loan to which it was not entitled, Acting U.S. Attorney and Special Attorney Alina Habba announced.

According to the allegations in the complaint and the contentions of the United States in the settlement agreement:

In January 2021, Ulma Form Works, Inc. (Ulma) applied for and received a $2 million PPP loan.  Under the eligibility rules in effect at that time, businesses with more than 300 employees were not eligible for PPP loans. Applicants were instructed that the 300-employee limit was inclusive of the applicant’s affiliates, including affiliates whose employees were based outside of the United States. In its loan application, Ulma certified that it was eligible for the loan and that it employed no more than 300 employees. However, Ulma was not eligible for its loan because, inclusive of its affiliates and their foreign employees, it had more than 300 employees. After receiving the PPP loan, Ulma sought and received forgiveness of the total amount of the loan, plus interest that had accrued.

Ulma fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement agreement, Ulma will pay the United States $2,902,795. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $290,279 as the share.

Acting U.S. Attorney and Special Attorney Habba credited the special agents from the Small Business Administration, Office of the Inspector General under the direction of Special Agent in Charge Amaleka McCall-Brathwaite, Eastern Regional Office, and the SBA’s Office of General Counsel for their assistance in this matter.

The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud and Opioid Enforcement Unit in Newark.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The qui tam case is captioned United States ex rel. Verity Investigations, LLC v. Ulma Form Works, Inc., 25-890 (D.N.J.).

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Counsel for Ulma Form Works, Inc.: Mark A. Rush, Esq., Pittsburgh, PA

Counsel for Relator Verity Investigations, LLC: Steven M. Shepard, Esq., New York, NY

A complaint filed in the District of New Jersey was unsealed today charging Thalha Jubair, a United Kingdom national, with conspiracies to commit computer fraud, wire fraud, and money laundering, in relation to at least 120 computer network intrusions and extortion involving 47 U.S. entities. The complaint alleges victims paid at least $115,000,000 in ransom payments.

“Jubair is alleged to have participated in a sweeping cyber extortion scheme carried out by a group known as Scattered Spider, which committed at least 120 attacks worldwide and resulted in over $115 million in ransom payments from victims,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “These malicious attacks caused widespread disruption to U.S. businesses and organizations, including critical infrastructure and the federal court system, highlighting the significant and growing threat posed by brazen cybercriminals. These charges underscore the Department’s unwavering commitment to keeping pace with technologically savvy bad actors and holding accountable those who seek to profit from ransomware.”

“The charges against Jubair announced today are the result of a lengthy investigation into particular cyber threat actors, often referred to as Scattered Spider, who have victimized at least 47 U.S.-based entities, including in New Jersey,” said Alina Habba, Acting U.S. Attorney and Special Attorney for the District of New Jersey. “As alleged by the complaint, Jubair went to great and sophisticated lengths to keep himself anonymous while he and his criminal associates continued to attack these victims and extort tens of millions of dollars in ransom payments. But thanks to the relentless investigation of this Office and our FBI and CCIPS partners, Jubair could not remain anonymous and avoid justice indefinitely. Today’s charges demonstrate my Office’s determination to identify cybercriminals and bring them to justice, wherever they are in the world.”

“Today’s charges make it clear that no cybercriminal is beyond our reach,” said Assistant Director Brett Leatherman of the FBI’s Cyber Division. “If you attack American companies or citizens, we will find you, we will expose you, and we will seek justice. The FBI continues to deploy every investigative and technical resource available to dismantle criminal cyber networks and hold their members accountable. This means working with trusted international partners like the UK’s National Crime Agency, the West Midlands Police, and the City of London Police, as well as utilizing the capabilities of our state and local partners, who are valued members of FBI’s Cyber Task Forces.”

“The arrest of Thalha Jubair underscores an undeniable truth: no matter how elusive or destructive these cyber-criminal syndicates are, we will continue to pursue those who allegedly extort our businesses and ensure they are held accountable,” said Special Agent in Charge Stefanie Roddy for the FBI. Today’s charges in both the U.S. and U.K. reflect extraordinary coordination with our foreign and industry partners and mark a decisive victory against cybercriminal gangs who thought they could cripple American industries, inflict hundreds of millions in losses, and hide behind a screen without consequence. The FBI remains relentless in protecting Americans and American businesses — detecting, deterring and diminishing the impact of cyber-criminal gangs.”

According to the complaint, Thalha Jubair, also known as “EarthtoStar,”  “Brad,” “Austin,” and “@autistic,” 19, of London, England, conspired with others to use social engineering techniques to gain unauthorized access into the computer networks of U.S. companies, steal and encrypt information, and demand ransom payments from victims in exchange for  regaining control and preventing the dissemination of the exfiltrated data. Jubair also conspired with others to launder the funds obtained through this scheme. In October 2024 and January 2025, Jubair participated in a scheme to gain unauthorized access to the networks of a U.S.-based critical infrastructure company and the U.S. Courts.

From as early as May 2022 to as recently as September 2025, Jubair and his associates were involved in approximately 120 network intrusions, including accessing the computer networks of at least 47 U.S.-based victims. Collectively, victims paid more than $115 million to Jubair and his associates in efforts to recover their data and prevent its disclosure. Portions of the ransom payments from at least five victims were sent to wallets on a server controlled by Jubair. In July 2024, while law enforcement was seizing that server — including successfully seizing cryptocurrency worth approximately $36 million at the time of the seizure — Jubair transferred a portion of cryptocurrency that originated from one of the victims, worth approximately $8.4 million at the time, to another wallet.

The charges arise out of an investigation into a cyber threat group that has been referred to as “Scattered Spider,” “Octo Tempest,” “UNC3944,” and/or “0ktapus.” Scattered Spider has targeted victims throughout the United States, including in New Jersey.

Jubair is charged with computer fraud conspiracy, two counts of computer fraud, wire fraud conspiracy, two counts of wire fraud, and money laundering conspiracy. If convicted, he faces a maximum penalty of 95 years in prison.

On Tuesday, Sept. 16, U.K. authorities arrested Jubair and a second individual in connection with a separate U.K. investigation related to a computer intrusion that targeted U.K. critical infrastructure.

The FBI’s Newark Field Office is investigating the case. The United Kingdom’s National Crime Agency and the City of London Police, the United Kingdom’s West Midlands Police, the National Police of the Netherlands, the Dutch Prosecutor’s Office, the Romanian Directorate for Investigating Organized Crime and Terrorism, Brigade for Combating Organized Crime Targu Mures, Romanian National Police, Directorate for Combating Organized Crime, the Royal Canadian Mounted Police, and the Australian Federal Police have provided significant assistance.

Assistant Deputy Chief Adrienne L. Rose and Trial Attorney George S. Brown of the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Andrew Kogan for the District of New Jersey’s Cybercrime Unit are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance.

CCIPS investigates and prosecutes cybercrime in coordination with domestic and international law enforcement agencies, often with assistance from the private sector. Since 2020, CCIPS has secured the conviction of over 180 cybercriminals, and court orders for the return of over $350 million in victim funds.

A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.