District of New Jersey
Press releases recorded for this federal judicial district.
Florida Man Charged with Money Laundering in $30 Million Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – A Florida man appeared in court today on charges that he laundered funds related to a $30 million wire fraud scheme, U.S. Attorney Craig Carpenito announced.
Denis Sotnikov, 36, of Hallandale Beach, Florida, is charged by complaint with one count of money laundering. He appeared today before U.S. Magistrate Judge Jared M. Strauss in a Fort Lauderdale, Florida, federal court and was detained.
According to documents filed in this case and statements made in court:
Between April 2018 and March 2020, individuals engaged in an internet-based financial fraud scheme, which generally involved the creation of fraudulent websites to solicit funds from individuals seeking to invest money. At times, the websites were designed to closely resemble websites being operated by actual, well-known, and publicly reputable financial institutions; at other times, the fraudulent websites were designed to resemble financial institutions that seemed legitimate, but did not, in fact, exist.
Victims of the fraud scheme typically discovered the fraudulent websites via internet searches. The fraudulent websites advertised various types of investment opportunities, most prominently the purchase of certificates of deposit, or CDs, with higher than average rates of return on the CDs to lure potential victims.
To date, at least 70 victims of the fraud scheme nationwide, including in New Jersey, have collectively transmitted at least $30 million that they believed to be investments.
In many instances, the victims would contact an individual or individuals via telephone or email, as directed on a fraudulent website, who provided the victims with applications and wiring instructions for the purchase of a CD. The funds wired by the victims would then be moved to various domestic and international bank accounts, including accounts in Russia, the Republic of Georgia, Hong Kong, and Turkey. None of the victims received a CD after wiring the funds.
Sotnikov received funds from at least 18 victims of the fraud scheme, totaling $6 million, in accounts at various domestic banks that were controlled by him or by a close relative. Of this amount, $3.7 million was either frozen by the banks or returned to victims, and $707,380 was wired overseas by Sotnikov. The remaining stolen funds – $1.5 million – were transferred to numerous other accounts controlled by Sotnikov and used to fund personal expenditures, including down payments on several luxury vehicles, purchases at high-end retail stores such as Louis Vuitton, Tiffany & Co., and Cartier, rent exceeding $9,000 per month on a home in Florida, several vacations, living expenses and bills.
The money laundering charge is punishable by a maximum of 20 years in prison and a fine of up to $500,000, or twice the value of the property involved, whichever is greater.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Sotnikov and several companies associated with him today based on the same conduct.
U.S. Attorney Carpenito credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark. He also thanked the SEC for the assistance provided by its Enforcement Division.
The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Jamie L. Hoxie of the U.S. Attorney’s Cybercrimes Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Roman Groysman Esq., Fort Lauderdale
Monmouth County Business Owner Admits Tax Evasion and Failing to Pay Employment Payroll TaxesRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, business owner admitted today to tax evasion and failure to pay the IRS over $540,000 in employment taxes, U.S. Attorney Craig Carpenito announced.
Wilson Salas-Molina, 39, of Howell, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of payroll tax evasion and one count of failure to collect, account for, and pay over payroll taxes.
According to documents filed in the case and statements made in court:
Salas-Molina was the owner and operator of US Contractor Inc. (a/k/a Wilson Contractors Inc., a/k/a WC Contractor Inc.), a roofing business located in Monmouth County. From 2012 to 2018, Salas-Molina was required to withhold and pay over to the IRS the employment taxes for US Contractor employees. Salas-Molina cashed checks he received from roofing clients at a check cashing service, and he paid his 14 employees in cash to conceal his payment of wages and his failure to report, account for, and pay over employment taxes to the IRS. The scheme resulted in a failure to withhold and pay over $540,000 in employment taxes to the IRS.
The count of tax evasion and the count of failure to collect, account for, and pay over payroll taxes each carry a maximum potential penalty of five years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for XX.
U.S. Attorney Carpenito credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Courtney A. Howard of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Bergen County Man Charged with Stealing Millions from Lenders and Corporations in Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County man was arrested today for defrauding lenders and corporations of millions of dollars by impersonating two bank executives interested in funding syndicated loans for global companies, U.S. Attorney Craig Carpenito announced.
Matthew O’Callaghan, 43, of Upper Saddle River, New Jersey, is charged by indictment with five counts of wire fraud and three counts of money laundering. He is scheduled to appear this afternoon before U.S. Magistrate Judge Edward S. Kiel in Newark federal court.According to the indictment:
From 2016 through 2019, O’Callaghan defrauded two financial services groups and four other companies of millions of dollars by deceiving them into believing that “Bank A” was agreeing to commit funds to revolving credit facilities. He represented himself as an executive at Bank A using the aliases “Edward Tierney” and “Michael Nash.” O’Callaghan induced the victims into making trades in which they agreed to pay Bank A to take on a commitment to fund revolving credit facilities.
O’Callaghan submitted numerous fraudulent documents to the victims that were designed to deceive them into believing that Nash and Tierney were legitimate representatives of Bank A, including email addresses resembling legitimate Bank A email addresses, false email signature blocks for Tierney and Nash that bore the Bank A logo and listed the business address for Bank A, fraudulent wiring instructions bearing Bank A’s logo and address, and a tax form bearing a tax identification number for Bank A.
O’Callaghan directed the victims to wire funds to a bank account at Bank A that O’Callaghan controlled and then converted the money for his own use, including the purchase of an automobile, gambling, travel, and payments to a private club.
The wire fraud counts each carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The money laundering counts each carry a maximum potential penalty of 10 years in prison and $250,000 fine, or twice the gross gain or loss from the offense.U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Michael S. Weinstein Esq., Hackensack, New Jersey
Point Pleasant Man Sentenced to 10 Years in Prison for Selling Crystal Methamphetamine and Pills Containing Heroin and FentanylRead the Press Release
CAMDEN, N.J. – A Point Pleasant, New Jersey, man was sentenced today to 120 months in prison for distributing approximately 300 grams of crystal methamphetamine and thousands of pills containing heroin or fentanyl, U.S. Attorney Craig Carpenito announced.
Carl Chianese, 80, of Point Pleasant, New Jersey, previously pleaded guilty before U.S. District Judge Robert Kugler to an information charging him with one count of conspiracy to distribute controlled substances. He also admitted a violation of his supervised release by committing the drug trafficking offense while on court supervision for two earlier federal drug trafficking cases that involved the distribution of large quantities of methamphetamine. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Chianese, along with conspirator Joseph Servidio, distributed pills that contained heroin or fentanyl. Chianese and Servidio were also involved in the distribution of multiple ounce quantities of crystal methamphetamine. They sold the pills and crystal methamphetamine on multiple occasions to an FBI undercover agent in exchange for cash payments. According to law enforcement sources, Servidio is a member of La Cosa Nostra. These drug transactions included the sale of 300 pills containing heroin, which were sold to the FBI agent at a Garden State Parkway rest stop on Dec. 23, 2016. In total, Chianese was responsible for the distribution of over 200 grams of fentanyl and heroin, and approximately 300 grams of crystal methamphetamine.
Chianese was arrested by FBI agents at his residence on March 14, 2018. During a search of his residence by the agents, the agents recovered a .38 caliber revolver, a magazine for a .380 caliber semi-automatic handgun, and over $25,000 in cash. Chianese agreed to the forfeiture of the firearm and cash, which was ordered by the court as part of the sentence imposed.
In addition to the prison term, Judge Kugler sentenced Chianese to three years of supervised release.
Servidio pleaded guilty June 17, 2019, to his role in the conspiracy and is scheduled to be sentenced by Judge Kugler on March 26, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the U.S. Department of Labor and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office’s Camden Office.
Defense counsel: Mark Catanzaro Esq., Mount Holly, New Jersey
Newark Man Convicted for Role in Conspiracy to Distribute Heroin and Crack CocaineRead the Press Release
NEWARK, N.J. – A Newark man was convicted today for his role in a conspiracy to distribute heroin and crack cocaine, U.S. Attorney Craig Carpenito announced.
Cory Canzater, a/k/a, “Big C,” 47, of Newark, was found guilty of one count of conspiracy to distribute and possess with intent to distribute controlled dangerous substances, one count of distribution and possession with intent to distribute heroin and one count of distribution and possession with intent to distribute crack cocaine. Canzater was convicted following a one-week trial before U.S. District Judge Kevin McNulty in Newark federal court. The jury deliberated 30 minutes before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
From May 2017 through June 2017, Canzater engaged in a heroin and crack cocaine distribution conspiracy that operated in and around Newark, led by Ahmad Johnson, a/k/a “OC,” 40, of Newark. Other members of the conspiracy included Maurice McPhatter, a/k/a “Ree,” Willie McPhatter, a/k/a “Roc,” Keith Henderson, and Sacha Negron, all of Newark.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Canzater was a member of a conspiracy led by Johnson, who was responsible for obtaining wholesale amounts of drugs, including heroin and cocaine, and processing and packaging the drugs for sale in and around Newark.
Johnson pleaded guilty to a drug conspiracy and was sentenced on April 15, 2019, to 180 months in prison. Maurice McPhatter, Willie McPhatter, Henderson, and Negron have all pleaded guilty to drug conspiracy charges and are awaiting sentencing.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life years in prison, and a $10 million fine. Sentencing is scheduled for July 22, 2020.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, and the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to the guilty verdicts. He also thanked the Fairfield Police Department; Bloomfield Police Department; Irvington Police Department; Roselle Police Department; Linden Police Department; Rockaway Township Police Department; and the Irvington Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Patricia Astorga of the Opioids Unit and Ari B. Fontecchio of the Economic Crimes unit.
Hudson County Woman Sentenced to 70 Months in Prison for Enslaving Sri Lankan Woman for over Nine YearsRead the Press Release
A Hudson County, New Jersey, woman was sentenced today to 70 months of prison for her conviction on charges of forced labor, alien harboring for financial gain, and marriage fraud, the Department of Justice announced.
Alia Imad Faleh Al Hunaity, aka “Alia Al Qaternah,” 44, was found guilty in May 2019 on all counts of the indictment against her following a six-day trial before U.S. District Judge Robert B. Kugler, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
Hunaity brought the victim, a Sri Lankan national, to the United States on a temporary visa in 2009 to perform domestic work. Hunaity caused the victim to overstay her visa and remain in the United States illegally for over nine years. Hunaity forced the victim to cook and clean her homes in Woodland Park and Secaucus, New Jersey, and to care for her three children, all without pay. She limited the victim’s interactions with the world outside of Hunaity’s homes. During this time, Hunaity required the victim to sleep on a bed in a public space in Hunaity’s homes, including in the kitchen. In 2018, Hunaity forced the victim to marry her so that the victim could obtain legal residence and Hunaity could continue to force her to work without fear of the victim being deported.
In addition to the prison term, Judge Kugler sentenced Al Hunaity to three years of supervised release.
U.S. Attorney Carpenito and Assistant Attorney General Dreiband credited special agents of U.S. Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Brian Michael, and special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s sentencing.
This case was prosecuted in conjunction with the interagency Anti-Trafficking Coordination Team initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
The government is represented by Assistant U.S. Attorney Andrew Macurdy and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Hudson County Woman Sentenced to 70 Months in Prison for Enslaving Sri Lankan Woman for over Nine YearsRead the Press Release
CAMDEN, N.J. – A Hudson County, New Jersey, woman was sentenced today to 70 months of prison for her conviction on charges of forced labor, alien harboring for financial gain, and marriage fraud, U.S. Attorney Craig Carpenito and Assistant Attorney General Eric Dreiband of the Civil Rights Division announced.
Alia Imad Faleh Al Hunaity, a/k/a “Alia Al Qaternah,” 44, was found guilty in May 2019 on all counts of the indictment against her following a six-day trial before U.S. District Judge Robert B. Kugler, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
Hunaity brought the victim, a Sri Lankan national, to the United States on a temporary visa in 2009 to perform domestic work. Hunaity caused the victim to overstay her visa and remain in the United States illegally for over nine years. Hunaity forced the victim to cook and clean her homes in Woodland Park and Secaucus, New Jersey, and to care for her three children, all without pay. She limited the victim’s interactions with the world outside of Hunaity’s homes. During this time, Hunaity required the victim to sleep on a bed in a public space in Hunaity’s homes, including in the kitchen. In 2018, Hunaity forced the victim to marry her so that the victim could obtain legal residence and Hunaity could continue to force her to work without fear of the victim being deported.
In addition to the prison term, Judge Kugler sentenced Al Hunaity to three years of supervised release and ordered her to pay restitution of $1.2 million.
U.S. Attorney Carpenito and assistant Attorney General Dreiband credited special agents of U.S. Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Brian Michael, and special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s sentencing.
This case was prosecuted in conjunction with the interagency Anti-Trafficking Coordination Team initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
The government is represented by Assistant U.S. Attorney Andrew Macurdy and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Hudson County Man Admits Role in Car Accident Scheme to Defraud Personal Injury Protection InsurersRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted participating in an automobile accident scheme in which health care practitioners fabricated or exaggerated accident victims’ injuries to support fraudulent insurance claims to Personal Injury Protection (PIP) insurance plans for medically unnecessary services, U.S. Attorney Craig Carpenito announced.
Luis G. Aguirre, 59, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of conspiracy to commit health care fraud.
According to documents filed in the case and statements made in court:
Aguirre helped to orchestrate an automobile accident scheme in Bergen County, New Jersey, by acting as a “runner” who identified and recruited accident victims to the scheme. Aguirre subsequently introduced the victims to various chiropractors, medical imaging centers, and others, who billed PIP insurance plans for medically unnecessary services.
Aguirre and an employee from an auto body shop in West New York, New Jersey, (Individual-1) identified and recruited individuals who had been in car accidents, finding them through word-of-mouth in the community and through relationships with health care providers in northern New Jersey. Aguirre paid Individual-1 a sum of money for each accident victim that Individual-1 helped identify and recruit to the scheme. Individual-1, in turn, paid accident victims for participating in the scheme. Aguirre also ensured that the victims had filed police reports to support subsequent insurance claims.
Aguirre then directed the accident victims to visit specific health care providers to obtain medically unnecessary medical exams and services, such as X-rays and MRIs, for fake or exaggerated injuries that they supposedly suffered during the automobile accidents.
Aguirre was paid approximately $500 in cash by the health care providers for each individual accident victim that he delivered. Aguirre thereby caused health care providers to submit insurance claims to PIP insurance plans on behalf of the accident victims.
For example, on Sept. 25, 2018, an individual from North Bergen, New Jersey, (Individual-3) was involved in an automobile accident in Elizabeth, New Jersey. Based on a police report of the incident, the accident was minor: Individual-3 was rear-ended by another car when both were stopped at a red light. According to the police report, Individual-3 refused medical treatment at the scene, stating that Individual-3 would seek separate medical attention. At the time of the accident, Individual-3 had an automobile insurance policy through Auto Insurer-1, which included PIP coverage.
Aguirre learned from Individual-1 that Individual-3 was willing to participate in the scheme in exchange for cash payment. On Oct. 12, 2018, Aguirre directed Individual-3 to visit the proprietor (Individual-2) of an MRI Center in Rochelle Park, New Jersey, where Individual-3 underwent a series of medically unnecessary X-rays. On Oct. 16, 2018, the MRI Center billed Individual-3’s PIP insurance policy.
Aguirre’s participation in the conspiracy caused an estimated loss to PIP insurance plans of over $250,000, while the total loss caused by the conspiracy exceeded $3.5 million.
Aguirre faces a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Sentencing is scheduled for July 14, 2020.
U.S. Attorney Carpenito credited special agents of the Department of Labor – Office of Inspector General (DOL-OIG), under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of the FBI, under the direction Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Health Care Fraud Unit at the U.S. Attorney’s Office in Newark.Defense Counsel: John Lynch Esq., Union, New Jersey
Eighteen South Jersey Residents Charged with Trafficking Prescription DrugsRead the Press Release
CAMDEN, N.J. – Eighteen alleged members of two drug trafficking operations based in Gloucester City and Camden have been charged in connection with their roles in distributing drugs, including high-dosage oxycodone pills, U.S. Attorney Craig Carpenito announced today.
The defendants were charged with conspiring to possess and distribute drugs in two complaints unsealed today. Sixteen of the defendants were arrested today and are scheduled to appear this afternoon before U.S. Magistrate Judges Joel Schneider and Karen M. Williams in Camden federal court. Two defendants remain at large. (See table below)
According to documents filed in this case and statements made in court:
The charges and arrests are the result of a wiretap investigation led by the FBI into drug distribution operations that dealt in, among other drugs, high-dose, 60- and 80-mg oxycodone pills. The operations’ leaders – Rocco DePoder for the Gloucester City operation and Erick Bell and Alfred Kee Jr. for the Camden operation – and the other suppliers, resellers and associates charged in the complaints generally employed the following means to facilitate the pill trafficking: Bell, Kee and DePoder would solicit the suppliers, including certain defendants named in the complaints, and others, primarily over the telephone, to supply them with quantities of oxycodone, Adderall and Xanax for DePoder, and oxycodone for Bell and Kee. After receiving substantial quantities of pills at Bell’s home in Camden, DePoder’s home in Gloucester City, and other locations in southern New Jersey (including Lindenwold and Woodbury), Bell and DePoder would take orders for pills over the telephone from others. Bell, Kee and DePoder would provide purchasers with these pills. The defendants employed coded language and used multiple phones to conceal their activities.
The conspiracies charged in the complaints carry a maximum prison term of 20 years and a maximum fine of $1 million.
U.S. Attorney Carpenito credited special agents of FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Acting Special Agent in Charge Tara McMahon; U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared M. Maples; the Camden County Police Department, under the direction of Chief Joseph Wysocki; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to the charges.
He also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration (DEA) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the Office’s Camden branch, and Sara F. Merin and Mark J. McCarren of the Newark Office.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
*denotes at large
Newark Man Sentenced to 20 Years in Prison for Union County CarjackingRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 240 months in prison for committing a gunpoint carjacking in Union County, New Jersey, U.S. Attorney Craig Carpenito announced.
Hasson Thomas, 30, previously pleaded guilty before U.S. District Judge John Michael Vazquez to superseding information charging him with one count of carjacking, one count of possession of a firearm by a previously convicted felon, and one count of possession of a firearm in furtherance of a crime of violence. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On the evening of Aug. 18, 2018, Thomas approached a parked vehicle occupied by two people on Chestnut Street in Roselle Park, New Jersey. Thomas entered the vehicle and pointed a firearm at the two occupants while ordering them to exit the vehicle. After ordering the victims out of the vehicle, Thomas drove from the scene. Roselle Park Police in the area attempted to pursue Thomas as he fled the scene at a high rate of speed shortly before crashing.
In addition to the prison term, Judge Vazquez sentenced Thomas to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Lyndsay V. Ruotolo; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and the Roselle Park Police Department, under the direction of Chief Daniel J. McCaffery, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the Organized Crime and Gangs Unit and Jamel Semper, Chief of the U.S. Attorney’s Office’s Violent Crimes Unit.
Defense counsel: Chester Keller Esq., Assistant Federal Public Defender (Newark)
DeCavalcante Associate Admits Cocaine Distribution and Gun PossessionRead the Press Release
TRENTON, N.J. – An associate of the DeCavalcante crime family today admitted possessing cocaine with the intent to distribute and possessing a firearm during the course of a drug crime, U.S. Attorney Craig Carpenito announced.
Mario Galli III, 28, of Toms River, New Jersey, pleaded guilty before Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of possession with intent to distribute cocaine and one count of possession of a FEG 9mm Model PGK-9HP gun, loaded with 12 rounds of ammunition, by a convicted felon in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
Between Sept. 19 and Sept. 20, 2019, investigators from the Ocean County Prosecutor’s Office executed search warrants on Galli’s residence and the residence of a conspirator. They recovered between400 and 500 grams of cocaine. The search of Galli’s residence also recovered a FEG 9mm Model PGK-9HP gun loaded with 12 rounds of ammunition. At the time, Galli was on supervised release from a 2016 federal conviction for conspiracy to distribute in excess of 500 grams of cocaine. He served 30 months in federal prison on that charge.
The charge of possession of cocaine with intent to distribute carries a maximum penalty of 20 years in prison and a $1 million fine. The count of being a felon being in possession of a firearm during a drug crime carries a penalty of five years in prison which must be served consecutively to the penalty for the drug crime, and a $250,000 fine. Sentencing is scheduled for July 7, 2020.
U.S. Attorney Carpenito credited the members of the FBI’s Organized Crime Task Force under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and investigators from the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney's Office’s Organized Crime/Gangs Unit in Newark.
Defense counsel: James Butler Esq.
Essex County Father and Son Sentenced to Prison for Roles in $3.49 Million Food Stamps SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, father and son have been sentenced to prison for their roles in exchanging $3.49 million in Supplemental Nutrition Assistance Program (SNAP) benefits for cash, U.S. Attorney Craig Carpenito announced today.
Jose Perdomo, 35, of Newark, was sentenced today to 15 months of home detention and five years of probation. He previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of SNAP fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity.
His father, Juan Perdomo, 60, of Newark, was sentenced March 3, 2020, to 38 months in prison. He previously pleaded guilty to an information charging him with one count of SNAP fraud, one count of engaging in monetary transactions in property derived from SNAP fraud, and one count of aiding in the preparation of a materially false tax return. Judge Salas imposed the sentences in Newark federal court.
According to documents filed in this case and statements made in court:
From October 2015 to September 2018, Juan Perdomo ran M&R Supermarket, a business that was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp program. SNAP is administered by the U.S. Department of Agriculture. Retail food stores approved for participation may sell food in exchange for SNAP benefits, but may not exchange SNAP benefits for cash.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, to use to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in 11 “purchases” at M&R Supermarket, where Juan and Jose Perdomo exchanged money for SNAP benefits.
The bank account of M&R Supermarket showed numerous cash withdrawals in excess of $10,000 by Juan Perdomo as well as several cashed checks in excess of $10,000 by Jose Perdomo.
Jose and Juan Perdomo were each ordered to pay $4.8 million in restitution to the U.S. Department of Agriculture; Juan Perdomo was ordered to pay $400,099 in restitution to the IRS and was also sentenced to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael, and IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the sentencings.The government is represented by Assistant U.S. Attorney Samantha Fasanello of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Juan Perdomo: Brooke Barnett Esq., Newark
Jose Perdomo: John P. McGovern Esq., NewarkHoboken Woman Arrested for Embezzling Hundreds of Thousands of Dollars from Non-ProfitRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, woman was arrested today for allegedly embezzling hundreds of thousands of dollars from a non-profit corporation dedicated to providing affordable housing to residents of Englewood, New Jersey, U.S. Attorney Craig Carpenito announced.
Yezenia Castillo, 44, of Hoboken, New Jersey, is charged by complaint with four counts of wire fraud. She is scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to documents filed in this case and statements made in court:
From May 2015 to August 2016 Castillo used her position as the accountant for the non-profit company to issue unauthorized checks made payable to herself or entities she controlled. She forged the signature of the president of the company’s board of directors on those checks, representing to the company that the payments were for legitimate business expenses, including tax payments to be made on behalf of the company. A review of bank records during this period did not identify tax payments made by Castillo to the IRS or the State of New Jersey on behalf of the company.
The counts of wire fraud each carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Vijay Dewan and Sammi Malek of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
California Man Admits Plot to Distribute over 30 Pounds of Crystal Methamphetamine and Five Kilos of Fentanyl in New JerseyRead the Press Release
CAMDEN, N.J. – A California man today admitted shipping approximately 30 pounds of crystal methamphetamine and conspiring to send an additional five kilograms of fentanyl into New Jersey, U.S. Attorney Craig Carpenito announced.
Isabel Otanez-Sanchez, 26, of San Jacinto, California, pleaded guilty before U.S. District Judge Noel Hillman in Camden federal court to an information charging him with one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and a quantity of fentanyl.
According to documents filed in this case and statements made in court:
In September 2018, law enforcement officers received information that an individual known as “Pancho,” later identified as Otanez-Sanchez, was shipping large quantities of narcotics to New Jersey from California. On Jan. 28, 2019, Sanchez agreed to send 30 pounds of methamphetamine to a law enforcement confidential source (CS) in Atlantic City, New Jersey. Otanez-Sanchez, along with conspirator Jesus Zavala-Torres, hid 28 packages of methamphetamine inside a salvaged vehicle that was shipped to New Jersey from California. Agents recovered the 28 packages, totaling approximately 30 pounds, from the car’s gas tank. On Feb. 12, 2019, the CS met with Sanchez and Torres in Riverside, California. At this meeting, Otanez-Sanchez and Torres also agreed to sell an additional five kilograms of fentanyl that would be shipped to the CS in New Jersey in the same manner as the methamphetamine. Following this meeting, Otanez-Sanchez and Torres were arrested by law enforcement and the fentanyl they intended to ship to New Jersey was recovered. Zavala-Torres previously pleaded guilty to his role in the conspiracy.
The conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), Cherry Hill, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s guilty plea. He also thanked HSI in Riverside, California; the New Jersey State Police; the Hemet, California, Police Department; and the Atlantic City Task Force for their assistance.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden.
Union County Man Arrested for Mortgage Fraud and Defrauding the Orange Public LibraryRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was arrested today by federal agents on charges of mortgage fraud and scheming to defraud the Orange Public Library, U.S. Attorney Craig Carpenito announced.
Shenandoah Adams Sr., a/k/a “Shane Adams Sr.,” 54, of New Providence, New Jersey, is charged by indictment with six counts of wire fraud and two counts of making false statements in connection with a mortgage loan. He is scheduled to appear this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the indictment:
Adams was a principal of Adams Property Management and Investment Group Limited Liability Company (Adams Property Management), which purchased property on Hilton Street in East Orange, New Jersey, in 2014. The following year, Adams arranged for a close associate (Individual 1) to obtain a $153,562 loan from a mortgage lender to purchase the Hilton Street property from Adams Property Management. Adams knew that Individual 1 did not have the money to pay the balance of the purchase price of $225,000. At the closing on March 25, 2015, Adams directed Individual 1 to issue a fraudulent check in the amount of $90,280.47 (the balance of the purchase price) to give the false impression that Individual 1 had paid the closing balance. Adams reassured Individual 1 that Adams would not negotiate the check. Adams signed a settlement statement, falsely certifying that Individual 1 paid the closing balance and that the settlement statement was a true and accurate statement of all receipts and disbursements made in connection with the sale of the Hilton Street property, when Adams knew that Individual 1’s check was fraudulent. Adams used Individual 1’s loan proceeds to pay off Adams Property Management’s $100,000 mortgage loan to purchase the Hilton Street Property and to obtain a $26,335.30 check for Adams Property Management.
Although Adams reassured Individual 1 that Adams would fund Individual 1’s mortgage payments, by May 2016 Individual 1’s mortgage payments on the Hilton Street property were substantially in arrears. Adams arranged for Individual 1 to sell the property to another associate for a price of $255,000. The closing on that sale commenced on May 31, 2016; the total amount to pay off Individual 1’s mortgage was $210,565.34. On June 1, 2016, Adams and Individual 1 had a telephone conversation with an out-of-state representative of the mortgage servicer for Individual 1’s lender, during which Adams made false and fraudulent statements to induce the lender to reduce the payoff amount. The lender agreed to reduce Individual 1’s payoff amount to $190,000. At Adams’s direction, Individual 1 cashed the check for the amount of the reduction, $20,665.34, and delivered the cash proceeds to Adams.
Adams also was a principal of VH Electrical and Plumbing Limited Liability Company (VH). On March 11, 2015, Adams, on behalf of VH, entered into a contract with the Orange Public Library to replace the library’s HVAC/Chiller unit for a price of $49,000. The project was funded by a U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant to the library and Orange.
Before getting the contract with the library, Adams sent the library’s executive director, Timur Davis, two fake quotes purportedly from two vendors to give the false impression that VH would replace the library’s chiller for less than those other vendors. After VH had been hired, Adams sent Davis records to give the false impression that Adams was taking steps to order a replacement chiller. Adams received $40,000 from the library, but did not replace the chiller. Davis pleaded guilty on Feb.13, 2020 to making false statements to HUD in connection with the project.
The charges of wire fraud carry a maximum potential penalty of 20 years in prison and a maximum $250,000 fine. The charges of making false statements in connection with a mortgage application carries a maximum potential penalty of 30 years in prison and a maximum potential fine of $1 million.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys J Imbert and Cari Fais of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: TBD
Paterson Police Sergeant Charged with Conspiracy to Violate Civil Rights and Filing False Police ReportRead the Press Release
NEWARK, N.J. – A federal grand jury today charged a sergeant with the Paterson Police Department with conspiring with other officers to violate individuals’ civil rights, and submitting a false police report to conceal their illegal activity, U.S. Attorney Craig Carpenito announced.
Sergeant Michael Cheff, 49, of Paterson, New Jersey, was charged in a two-count indictment with conspiring to deprive individuals of civil rights under color of law and with falsifying a police report. Cheff was previously charged by criminal complaint in January 2020. He will be arraigned in federal court on a date to be determined.
According to documents filed in this and other cases, and statements made in court:
Eudy Ramos, Daniel Pent, Jonathan Bustios, Matthew Torres, and Frank Toledo were police officers with the Paterson Police Department. Cheff supervised their activities and approved their reports and other paperwork related to arrests and seizures of money, narcotics, and firearms. Ramos, Pent, Bustios, Torres, and Toledo, while on official duty, violated the civil rights of individuals in Paterson. They stopped and searched motor vehicles without any justification and stole cash and other items from the occupants. They also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized cash from them. They concealed their activities by submitting to Cheff false reports that omitted, or lied about, their illegal activities. Cheff signed off on those false police reports, and routinely received a portion of these stolen monies from some of these officers. In 2016, Cheff told one of the officers to start “tagging,” or logging into evidence, some of the money that the officer was stealing, because effecting narcotics arrests without logging money into evidence would otherwise raise questions.
On Nov. 14, 2017, Cheff joined Bustios, Ramos, and Torres in stealing cash from an apartment in Paterson. Bustios, Ramos, and Torres stopped and arrested an individual in Paterson. Bustios stole a few hundred dollars from the individual during the arrest, then the officers went to the individual’s apartment, and were joined by Cheff. Torres stayed behind to guard the arrested individual, who was handcuffed in a police car, while Cheff, Ramos, and Bustios obtained consent to search the apartment by lying to the individual’s mother.
Cheff, Ramos, and Bustios then searched the individual’s room. Cheff located a safe inside a closet in the room and took money and narcotics from the safe. He handed a small portion of the money to Bustios and told Bustios to log it into evidence. Cheff put the rest of the money in his pocket. After the search, in a bathroom at the Paterson police station, Cheff gave Torres and Ramos a portion of the stolen money. Cheff also approved a police report that falsely stated that the officers had recovered $319 from on top of a shelf in the individual’s room.
Later that day, Bustios and Toledo exchanged text messages discussing Cheff’s theft of money. Bustios said, among other things, that Cheff “got us for over a stack today,” that “there was a safe” and that Cheff “grabbed the cash.” According to the individual whose apartment was searched, the safe contained approximately $2,700, and all of it was missing after the search was completed.
The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison. The false records charge carries a maximum penalty of 20 years in prison. The maximum fine for each count is $250,000.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s indictment. He also thanked the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Paterson Police Chief Ibrahim “Mike” Baycora, and the Paterson Police Department Office of Internal Affairs for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Lee M. Cortes Jr., Chief of the Health Care Fraud Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: John Lynch Esq., Union City
Pharmacy Owner Admits Role in Multimillion-Dollar Illegal Kickback Scheme and Evading Taxes on over $33 Million of IncomeRead the Press Release
TRENTON, N.J. – The former co-owner of a Union City, New Jersey, pharmacy today admitted his role in a scheme to pay bribes to health care professionals and evading taxes on $33.9 million in income, U.S. Attorney Craig Carpenito announced.
Igor Fleyshmakher, 58, of Holmdel, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with conspiring to violate the federal anti-kickback statute and tax evasion.
The information alleges that he conspired to violate the anti-kickback statute with seven other individuals, including the following individuals who have been previously charged by superseding indictment or information: Samuel “Sam” Khaimov of Glen Head, New York; Ruben Sevumyants of Marlboro, New Jersey; Alex Fleyshmakher of Morganville, New Jersey; and Eduard “Eddy” Shtindler of Paramus, New Jersey. Shtindler has previously pleaded guilty for his role in a related kickback conspiracy and is pending sentencing.
“Kickback schemes like this not only illegally enrich defendants like Fleyshmakher, they take needed resources from our health care system,” U.S. Attorney Carpenito said. “And after stealing millions of dollars in this way, the defendant stole again, by failing to report this income or pay taxes on it. His guilty plea today will make sure he is held to account for his crimes.”
“This fraudster was part of a kickback scheme that not only tilted the scales toward Prime Aid Pharmacies, but diverted precious federal dollars so he could enrich himself while ripping off the government,” FBI-Newark Special Agent in Charge Gregory W. Ehrie said. “If you are an investor or medical professional participating in a fraud scheme for an ill-gotten gain, you should ask yourself if it's worth the price you will pay. The FBI is searching for schemes like this and if you participate, you will be caught.”
“Bribing doctors to line your own pockets and using secret accounts to evade taxes are both very serious offenses motivated by one thing: greed,” John R. Tafur, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “Today’s guilty plea should send a strong deterrent message to anyone else thinking about participating in this type of illegal activity. If you decide to roll the dice, IRS Criminal Investigation along with our law enforcement partners will find you.”
“Fleyshmakher, with his previously indicted co-conspirators, bribed doctors to illegally increase profits and enrich themselves,” Scott J. Lampert, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services, said. “Working with our state and federal law enforcement partners, we will continue to hold accountable anyone who attempts to defraud government healthcare insurance programs.”
According to documents filed in this case:
The Prime Aid Pharmacies – now closed – operated as “specialty pharmacies” out of locations in Union City, New Jersey, and Bronx, New York. They processed expensive medications used to treat various conditions, including Hepatitis C, Crohn’s disease, and rheumatoid arthritis. Igor Fleyshmakher was a co-owner of Prime Aid Union City. Khaimov was the other co-owner of Prime Aid Union City and the lead pharmacist of Prime Aid Bronx. Sevumyants was Prime Aid Union City’s operations manager, and Alex Fleyshmakher worked at Prime Aid Union City and was an owner of Prime Aid Bronx. Shtindler was a Prime Aid Union City employee.
Staring in 2010, in order to obtain a higher volume of prescriptions, Igor Fleyshmakher, Khaimov, Sevumyants, Alex Fleyshmakher, Shtindler, and other Prime Aid employees paid bribes to doctors and doctors’ employees to induce doctors’ office to steer prescriptions to the Prime Aid Pharmacies. The bribes included expensive meals, designer bags, and payments by cash, check, and wire transfers. The bribes and kickbacks were paid to, among others, doctors and doctors’ employees in New Jersey and New York.
As part of his plea agreement, Igor Fleyshmakher agreed that the improper benefit conferred as part of the conspiracy to violate the federal anti-kickback statute was between $3.5 million and $9.5 million.
In addition, between 2012 and 2014, Igor Fleyshmakher diverted a substantial amount of Prime Aid Union City income into a secret bank account that he opened and controlled. He concealed the account from the pharmacy’s tax preparers and did not report any of the funds he deposited into it on his personal income tax returns. In total, he diverted $33.9 million of income into the secret account, all of which he failed to report to the IRS. As a co-owner of the pharmacy, his conduct resulted in a $5.8 million tax loss to the IRS on his share of that income for tax years 2012 through 2014.
The conspiracy and tax evasion charges to which Igor Fleyshmakher pleaded guilty each carry a maximum penalty of five years in prison and a fine of up to $250,000. Sentencing is scheduled for June 22, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the N.J. Office of the State Comptroller, under the direction of Comptroller Kevin Walsh, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit of the U.S. Attorney’s Office in Newark.
The charges against and allegations in the information pertaining to Khaimov, Sevumyants, and Alex Fleyshmakher are merely accusations, and those three defendants are presumed innocent unless and until proven guilty.
Defense counsel: Eric M. Creizman Esq. and Melisa Madrigal Esq., New York
Ocean County Man Charged with Online Enticement of a Minor and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was arrested this morning on charges that he induced a minor to send him sexually explicit pictures and to engage in sexually explicit conduct over an online messaging service, U.S. Attorney Craig Carpenito announced.
Kevin Van Pelt, 29, of Lakehurst, New Jersey, is charged by complaint with one count of online enticement of a minor to engage in criminal sexual conduct and one count of possession of child pornography. Van Pelt appeared this afternoon before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court and was released on $100,000 unsecured appearance bond.
According to documents filed in this case and statements made in court:
From August 2018 to October 2018, Van Pelt used multiple online messaging services to communicate with a minor victim, including repeatedly requesting that the minor send him sexually explicit images. Van Pelt also had images of child sexual abuse on his cellular phone when he was arrested by local authorities on May 1, 2019.
The charge of online enticement carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of life in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited members of the FBI Child Exploitation Human Trafficking Task Force, under the direction of FBI Special Agent in Charge Gregory W. Ehrie in Newark; members of the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Charles A. Fiore; and members of the Woolwich Township Police Department, under the direction of Chief Richard Jaramillo, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New York Man Admits Role in Wire Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted engaging in fraudulent activity that exposed victims to more than $1.5 million in losses, U.S. Attorney Craig Carpenito announced.
Joshua Suarez, 33, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiring to commit wire fraud.According to documents filed in the case and statements made in court:
Suarez was a member of a conspiracy to fraudulently obtain money, including by impersonating account holders and obtaining money from their accounts. He recruited and paid individuals to open bank accounts. A member of the conspiracy then caused money to be deposited into the accounts, money that often had been fraudulently obtained by impersonating victims and transferring money out of their financial accounts. Suarez and others then caused money to be withdrawn from the bank accounts. The conspiracy exposed victims to losses of more than $1.5 million.
The conspiracy to commit wire fraud charge carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 29, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Defense counsel: Dennis Cleary Esq., West Orange, New Jersey
Eleven People Charged in Newark Drug Trafficking Conspiracy in Stephen Crane Village, Including One Charged with MurderRead the Press Release
NEWARK, N.J. – Eleven people were charged today for their roles as members and associates of a drug trafficking organization involved in the distribution of narcotics, including heroin, fentanyl, and cocaine base (crack) in the Stephen Crane Village Housing Complex in Newark, U.S. Attorney Craig Carpenito announced.
One defendant is also charged with the murder of a conspirator in an apartment in Crane Village.
The charges and arrests resulted from an investigation led by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office and in conjunction with numerous local law enforcement partners and the U.S. Drug Enforcement Administration.
“The criminal complaint against these defendants details a brazen drug dealing operation going on right out in the open that used violence to accomplish its goals,” Carpenito said. “Thanks to the combined work of our federal, state, and local partners, we have been able to address a substantial threat to the public.”
“Tonight, residents of the Stephen Crane Village Apartments, and the Cities of Newark and Belleville, can rest a little easier,” ATF Special Agent in Charge Charlie J. Patterson said. “Through the relentless efforts of our ATF Newark personnel, along with the unmatched dedication of our partner agencies, we have collectively removed the worst of the worst from our community. These individuals worked in tandem as a hybrid gang, whose community spoilage included drug distribution, and murder. Their ruthless grip on the community has been broken thanks to law enforcement cooperation, and a common mission to remove the most dangerous offenders responsible for violent crime from the community.
“Belleville Police are committed to reducing violent crimes that directly have an impact on our residents,” Belleville Police Chief Mark Minichini said. “Today’s arrests sends a clear concise message that local, county, and state resources will work together to combat these types of crimes thereby making our community safer.”
“No one should have to live in fear in their homes or community,” Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, Susan A. Gibson said. “The defendants in this investigation were using Crane Village as their own personal drug market putting every resident at risk. This multi-agency investigation reinforces our commitment to the safety of the public.”
“Once again, collaboration brings results to a community that has been held hostage by a few people,” Newark Public Safety Director Anthony F. Ambrose said. “Our support to our federal partners for making another Newark community ridden of criminals.”
The complaint charges Gary Shahid, 60; Jose Lora, 22; Dayquan Jordan, 25; Ricky Terrell, 23; Charles Mells, 36; Raquan Rawls, 21; Nasir Williams, 23; Quadir Hatcher, 27; Tyree Purkett, 23; James Wicker, 27; and Mayse, 33 – all Newark residents – in one conspiracy spanning February 2019 to February 2020 and involving the distribution of heroin, fentanyl, and cocaine base in and around Crane Village. Jordan, Rawls, Williams, Hatcher, and Mayse, are additionally charged with distribution of cocaine base and heroin on Nov. 21, 2019. Mayse is additionally charged with murder during and in relation to a drug trafficking offense.
Seven defendants were arrested today and two – Mayse and Mells – were already in state custody. Two defendants – Rawls and Purkett – remain at large. Those arrested today are scheduled to have their initial appearances this afternoon before U.S. Magistrate Michael A. Hammer in Newark federal court.
According to the documents filed in this case and statements made in court:
Crane Village is a public housing complex near Branch Brook Park, on the border with Belleville. It consists of consists of standalone buildings, with 354 apartments in total, all of which are accessible via exterior entrances. The buildings are clustered around courtyards and pedestrian walkways with roadways bisecting the complex. Given its location and its layout, which makes it difficult for law enforcement to surveil, Crane Village is the site of an open-air drug market. Since at least February 2019, law enforcement officers have been investigating the organization that controls this drug market.
Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that the defendants conspired to distribute narcotics, including heroin, fentanyl, and cocaine base, in and around Crane Village.
The organization used a drug stash apartment in Crane Village to package and store drugs for distribution. On Dec. 15, 2019, Mayse entered the stash apartment and allegedly murdered a conspirator over a monetary debt relating to the distribution of narcotics.
The count of conspiracy to distribute at least 28 grams of cocaine base and a quantity of heroin and fentanyl carries a minimum penalty of five years in prison, maximum penalty of 40 years in prison, and a fine of at least $5 million. The count of distribution of a quantity of heroin and cocaine base carries a maximum of 20 years in prison and a fine of $1 million. The count of murder during and in relation to a drug trafficking crime is eligible for the death penalty, or a maximum sentence of life in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents and task force officers with the ATF, Newark Division, under the direction of Special Agent in Charge Patterson; the Belleville Police Department, under the direction of Chief Minichini; special agents and task force officers of the DEA, under the direction of Special Agent in Charge Gibson in Newark; the Newark Police Department, under the direction of Director Ambrose; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura. He also thanked the U.S. Marshals Service, the Nutley Police Department, the Bloomfield Police Department, the West Orange Police Department, the Verona Police Department, the Orange Police Department and the Bergen County Sheriff’s Office for their assistance with this case.
This investigation is part of the Newark Violent Crime Initiative (VCI), where the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate crime in Newark and the surrounding cities.
This case is also conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Shahid: Peter Carter Esq., Newark
Jordan: Stacy Biancamano Esq., Cranford, New Jersey
Terrell: Ernesto Cerimele Esq., Newark
Williams: John McGovern Esq., Newark
Hatcher: Kevin Buchan Esq., Roseland, New Jersey
Wicker: Julian Wilsey Esq., Livingston, New Jersey
Mayse: Richard Verde Esq., Caldwell, New Jersey
Lora: Laurie Fierro Esq., Kinnelon, New JerseyFormer Newark Police Officer Found Guilty of Conspiracy to Defraud Newark Watershed Conservation and Development Corporation, Mail Fraud, and Extortion ConspiracyRead the Press Release
NEWARK, N.J. – A former Newark police officer was found guilty by a federal jury today of conspiring to defraud the Newark Watershed Conservation and Development Corporation (NWCDC) and giving kickbacks to its former executive director, U.S. Attorney Craig Carpenito announced.
Janell Robinson, 42, of Newark, was found guilty of one count of conspiracy to defraud the NWCDC facilitated by use of mails and wire transmissions, two counts of mail fraud, and one count of conspiracy to commit extortion under color of official right affecting interstate commerce following a 10-day trial before U.S. District Judge Susan D. Wigenton.
According to documents filed in this case and the evidence at trial:
Between March 2010 and May 2013, while Robinson was a Newark police officer, she controlled Protected and Secured Services LLC (P&S), a company that purported to provide security consulting services to its only client, the NWCDC. Robinson conspired with Linda Watkins Brashear of West Orange, New Jersey, the former executive director of the NWCDC, to pay Brashear a stream of concealed and undisclosed kickbacks from the proceeds that P&S received from the NWCDC. In exchange for Brashear’s assistance in securing P&S a contract with the NWCDC and approving completely fraudulent or inflated invoices that Robinson submitted, Robinson paid Brashear cash kickbacks from the proceeds of the fraud.
In total, the NWCDC paid P&S approximately $289,000 during the scheme, approximately $50,000 of which was used by Robinson to pay Brashear kickbacks.
The wire and mail fraud conspiracy, mail fraud, and conspiracy to commit extortion under color of official right charges each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is set for June 8, 2020.
Brashear pleaded guilty to her role in the scheme and was sentenced Sept. 21, 2017, to 102 months in prison.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s conviction.
The government is represented by Senior Trial Counsel Leslie F. Schwartz and Assistant U.S. Attorney Jacques S. Pierre of the U.S. Attorney’s Office Special Prosecutions Division.
Doctor Described as ‘Candy Man’ and ‘El Chapo of Opioids’ Admits Distributing Opioids to PatientsRead the Press Release
NEWARK, N.J. – A Bergen County doctor today admitted distributing opioids without a legitimate medical reason and falsifying medical records to cover it up, U.S. Attorney Craig Carpenito announced.
Robert Delagente, 45, of Oakland, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an indictment charging him with one count of conspiracy to distribute controlled dangerous substances, three counts of distribution of controlled dangerous substances, and one count of falsifying medical records.
“This defendant knowingly prescribed for his patients some of the most dangerous and addictive drugs available, sometimes with no more contact than a text message from the patient,” U.S. Attorney Carpenito said. “Many of these patients were dealing with pain and addiction, and instead of getting help from their doctor, they were drawn deeper into the cycle of drug abuse. His admission of guilt today ensures that he will be appropriately punished for this behavior.”
“Dr. Delagente sold his ethics, his medical license, and his moral compass,” FBI-Newark Special Agent in Charge Gregory W. Ehrie said. “There is no magic elixir for the pain caused by pill mill doctors. The cure is public awareness, victims who come forward and a determined fleet of FBI investigators who will arrest these unscrupulous practitioners when they run afoul of the law.”
According to documents filed in this case and statements made in court:
Beginning in May 2014, Delagente was a doctor at a medical practice called North Jersey Family Medicine (NJFM) in Oakland, New Jersey. He allegedly described himself in conversations pertaining to his prescribing of painkillers as the “Candy Man” and the “El Chapo of Opioids.” Delagente knowingly prescribed controlled substances, such as oxycodone, Percocet, Tylenol with codeine, and various benzodiazepines (alprazolam, diazepam, clonazepam, and temazepam), outside the ordinary course of professional practice and without a legitimate medical purpose. He ignored the inherent danger and medical risk of overdose, drug abuse, and death that can accompany prescriptions of highly addictive opioids, benzodiazepines, and muscle relaxers, both on their own and in combination with one another.
Delagente prescribed controlled substances without ever seeing the purported patient for a medical visit or even discussing with the patient the medical need for the prescription. He allowed patients to ask him for controlled substances via text message and would write a prescription for patients that he would leave at the front desk, without requiring an office visit or consultation of any kind. He allowed patients to dictate the strength and dosage of the controlled substances he prescribed for them. Delagente also prescribed the dangerous drug combination known as the “Holy Trinity,” comprised of opioids (usually oxycodone), benzodiazepines (usually alprazolam) and muscle relaxers (usually carisoprodol).
Delagente failed to monitor patients for addiction and ignored drug screening tests to determine whether certain patients were taking illicit drugs. In fact, Delagente prescribed controlled substances to patients he knew were addicted to opioids or other controlled substances. In one instance, an NJFM employee texted Delagente that a patient had gotten a babysitter and driven a long distance to get to the practice, but had been unable to see a doctor. Delagente responded: “Oh well … C’est la vie! Lol … He can wait for his oral heroin another day. Lol.”
One patient texted Delagente that the patient “probably can’t stop the pk’s,” referring to painkillers. The patient told Delagente that the patient “would need a plan to stop…not cold turkey.” A few days later, when the patient was having trouble obtaining pain medication, the patient wrote to Delagente that “If I go 4 days without [painkillers] I am in huge trouble.” In response, Delagente wrote “I will leave you a short supply RX [prescription] at the front to pick up.” Delagente then wrote the patient a prescription for 120 tablets of 30-milligram oxycodone for 30 days. Delagente at one point told this patient: “I’m literally sticking my neck out and can lose my medical license or [be] arrested for what I just did.”
Delagente also was charged with altering medical records of patients who received controlled substance prescriptions from him after law enforcement officials had subpoenaed the records in late April 2019.
Delagente faces a maximum penalty of 20 years in prison and a $1 million fine on each of the distribution of controlled dangerous substances charges. Delagente faces a maximum penalty of 20 years in prison and a $250,000 fine on the charge of falsifying medical records. Sentencing for Delagente is scheduled for June 10, 2020.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jason S. Gould of the Health Care Fraud Unit and Sean M. Sherman of the Opioids Unit in Newark.
Union County Man Convicted of Firearms Offense in Connection with ShootingRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man previously convicted of multiple felonies was found guilty in federal court of being a felon in possession of a firearm, U.S. Attorney Craig Carpenito announced today.
Jarrell L. Daniels, 29, of Elizabeth, New Jersey, was convicted after a two and a half-day trial before U.S. District Judge Kevin McNulty in Newark federal court of one count of being a felon in possession of a semi-automatic submachine gun with a high capacity magazine and multiple rounds of ammunition. The jury deliberated less than two hours before delivering the guilty verdict on Feb. 20, 2020.
According to documents filed in this case and the evidence at trial:
On the morning of April 9, 2018, Daniels was walking down Irvington Avenue in Elizabeth, carrying a loaded .45 caliber Masterpiece Arms ACP submachine gun, with 30 additional rounds of ammunition in an extended magazine. Daniels was wearing a disguise, as well as latex gloves. He came upon his victim and opened fire, shooting at his victim 16 times, but none of the shots struck the victim. As he fled the scene, Daniels dropped his head covering and later stashed the gun and other items of clothing in a nearby trashcan. DNA on these items, as well as surveillance footage and ballistics evidence, ultimately enabled the authorities to identify Daniels as the shooter.
The count on which Daniels was convicted is punishable by a maximum of 10 years in prison and a fine of up to $250,000. Sentencing has not yet been scheduled.
U.S. Attorney Carpenito credited law enforcement officers of the Elizabeth Police Department, under the direction of Police Chief John Brennan, Jr.; the Union County Sheriff’s Office, under the direction of Sheriff Peter Corvelli; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson; and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Lyndsay V. Ruotolo, with the investigation leading to the guilty verdict.
The government was represented by Assistant U.S. Attorneys Vera Varshavsky and Sammi Malek of the Criminal Division of the U.S. Attorney’s Office in Newark.
Defense counsel: Peter Willis Esq. and Maximillian Novel Esq., Jersey City, New Jersey
Paterson Man Indicted for Sale of Narcotics that Resulted in Overdose DeathRead the Press Release
NEWARK, N.J. – A federal grand jury has indicted a Paterson, New Jersey, man for distributing a quantity of heroin and fentanyl that led to the overdose death of a New Jersey resident, U.S. Attorney Craig Carpenito announced.
Wyzier Peterson, 22, was also charged with two additional sales of heroin and fentanyl, as well as with conspiring to distribute at least 40 grams of fentanyl and at least 100 grams of heroin. The defendant was previously charged by complaint.
According to documents filed in this case and statements made in court:
Peterson and his conspirators are all members and associates of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement officers determined that from September 2018 through July 3, 2019, Peterson and his conspirators conspired to distribute narcotics, to include heroin and fentanyl.
The count of conspiracy to distribute at least 100 grams of heroin and 40 grams of fentanyl carries a maximum penalty of 40 years in prison and a fine of at least $5 million. The counts of distribution of heroin and fentanyl carry a maximum of 20 years in prison and a fine of $1 million. The count of distribution of heroin and fentanyl, which led to the death of another person, carries a maximum of life imprisonment.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Carpenito credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; officers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Police Director Jerry Speziale; officers of the Jefferson Township Police Department, under the direction of Chief Sean Conrad; detectives of the Passaic County Prosecutor’s Office, under the direction of Camelia M. Valdes; and detectives of the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric Knapp; with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the U.S. Attorney’s Office’s OCDETF/Narcotics Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New York Man Admits Role in Defrauding Banks in $9 Million Shotgun Loan SchemeRead the Press Release
NEWARK, N.J. – A Freeport, New York, man today admitted participating in a conspiracy to carry out a $9 million scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a scheme known as “shotgunning,” U.S. Attorney Craig Carpenito announced.
Yorce Yotagri, 53, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an indictment charging him with one count of conspiracy to commit bank fraud.
According to documents filed in the case and statements made in court:
Yotagri was a business partner of Jorge Flores of Oakdale, New York, and Jose Piedrahita of Freeport, two conspirators also charged in the indictment. From 2010 through February 2018, Yotagri, Flores, Piedrahita, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOC) from banks on residential properties in New Jersey and New York.
In August 2016, Yotagri lived at a property in Freeport. A quitclaim deed was prepared that facilitated the transfer of ownership of the property to Yotagri and Piedrahita even though Piedrahita did not own the property.
In September 2016, with the Freeport property now in the names of Yotagri and Piedrahita, the conspirators applied for a $290,000 HELOC from a victim bank in Yotagri’s and Piedrahita’s names using the property as collateral. Piedrahita’s contact information appeared on the HELOC application on the Freeport property, which also contained inflated income and assets for Piedrahita. On Dec. 2, 2016, based on the false representations contained in the application, the victim bank issued a HELOC to Piedrahita for $290,000. Piedrahita then disbursed the $290,000 to himself, Yotagri, and Flores. The HELOC funds were never repaid.
In January 2017, Flores called another victim bank and applied for a second HELOC in Piedrahita’s name for $250,000 – again using the Freeport property as collateral. This time Flores’ email address and phone number appeared on the HELOC application on the Freeport property. To demonstrate to the second victim bank that the property was unencumbered by any senior mortgages, Flores and Piedrahita sent several fraudulent documents to the victim bank to conceal the existence of or amounts owed on senior mortgages. The false documents the defendants submitted included a series of false payoff letters and fake checks from other banks, all submitted to deceive the victim bank into believing that the remaining value of the senior mortgages on the Freeport property was far less than what was actually owed.
On March 22, 2017, the second victim bank issued a HELOC to Piedrahita for $250,000. Piedrahita then disbursed nearly the entirety of the HELOC funds to himself and Yotagri. The funds obtained by Piedrahita and Yotagri from the HELOC were not repaid and were overdrawn, causing losses to the second victim bank totaling approximately $290,000.
At the time the applications for the two HELOCS were made, there was not sufficient equity in the Freeport property to support the $540,000 in HELOC applications made by Flores, Piedrahita, and Yotagri.
The overall scheme, which included HELOC loans for approximately 17 different properties, resulted in over $9 million in losses to the victim banks.
Yotagri faces a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 25, 2020.U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Steven Perez in Newark; and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA-OIG.The charges and allegations against Yotagri’s co-defendants contained in the indictment are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel: Randy Scott Zelin Esq., New York
Bergen County Man Sentenced to Six Years in Prison for Using Personal Information Stolen from U.S. Service Members to File Phony Tax ReturnsRead the Press Release
TRENTON, N.J. – A Fort Lee, New Jersey, man was sentenced today to 72 months in prison for generating phony tax refunds using personal identifying information stolen from current and former members of the U.S. army, U.S. Attorney Craig Carpenito announced.
Shope Oluwo, 35, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to an indictment charging him with one count each of conspiracy to commit wire fraud, access device fraud, and aggravated identity theft. Chief Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From January through February 2016, Oluwo conspired with others, including Dermot Sutherland, 30, of Philadelphia, to obtain personal identifying information that was stolen from current or former members of the U.S. Army. Oluwo used that stolen information to create fake military identification cards and fraudulent W-2 forms bearing the victims’ names.
Oluwo provided the phony cards and W-2 forms to Sutherland, who posed as the victims and filed phony returns with a tax preparation company. Afterwards, Sutherland received debit cards from the tax preparation company that contained the ill-gotten refunds.
In addition to the prison term, Judge Wolfson sentenced Oluwo to three years of supervised release and ordered to pay $11,170 in restitution.
Sutherland previously pleaded guilty to his role and was sentenced in February 2019 to three years of probation.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn; and special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Catherine R. Murphy of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Patrick Brackley Esq., New York
Texas Man Admits Conspiring to Distribute 21 Kilograms of Illegal DrugsRead the Press Release
TRENTON, N.J. – A Texas man today admitted conspiring to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and five grams or more of methamphetamine, U.S. Attorney Craig Carpenito announced.
Juan Macias Prieto, 53, of El Paso, Texas, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and five grams or more of methamphetamine, and one count of possession with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and five grams or more of methamphetamine.
According to documents filed in this case and statements made in court:
On Sept. 17, 2019, Macias Prieto conspired with others to distribute narcotics. Macias Prieto, a commercial truck driver, transported approximately 21 kilograms of narcotics into New Jersey with the intent to distribute the narcotics to conspirators.
The counts to which Macias Prieto pleaded guilty each carry a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for May 26, 2020.
U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan in New York, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
New Jersey Man Charged with Robbery and Illegal Possession of Firearm to Appear in New Jersey Federal CourtRead the Press Release
CAMDEN, N.J. – A New Jersey man was arrested today for allegedly robbing a Camden barbershop and for possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Benjamin Daye, 33, is charged by complaint with one count of Hobbs Act robbery and one count of unlawful possession of a firearm by a convicted felon. Daye is scheduled to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
“This case is prime example of the renewed focus on prosecuting gun crimes that was announced by the Department of Justice last fall,” U.S. Attorney Carpenito said. “We are working with our partners at Alcohol, Tobacco, Firearms and Explosives and local law enforcement to investigate gun crimes and bring offenders to justice swiftly. Today’s complaint describes a defendant who not only was prohibited from possessing a gun, but who allegedly was all too quick to use one in furtherance of a violent crime.”
“The arrest today and development of this investigation is a great example of collaboration at its best,” ATF Special Agent in Charge Charlie J. Patterson said. “ATF is proud to partner with the U.S. Attorney’s Office and the Camden County Police Department to stop the City’s most violent offenders, especially those who use firearms to commit senseless acts of crime. ATF will continue to be on the front line alongside our partners to ensure our communities remain safe places to live, work, and play.”
“Eliminating illegal firearms, and the carnage they create, in our community is my number priority,” Camden County Police Chief Joseph Wysocki said. “The violent crime tied to these guns has a destabilizing impact on our neighborhoods and residents. Furthermore, crimes committed with these weapons and the individuals that carry them will have our agency’s undivided attention. I want to thank all of our partners, local, state and federal, for their assistance in this arrest and forthcoming prosecution.”
According to documents filed in this case and statements made in court:
On Nov. 23, 2019, Daye entered a barbershop in Camden armed with a loaded handgun. He grabbed a juvenile customer, pointed the gun at the customer’s head, and demanded cash and belongings from employees and customers. Daye was apprehended shortly thereafter next to a bag containing the handgun and the stolen items. Daye previously was convicted of three crimes, each punishable by imprisonment for a term exceeding one year.
The Hobbs Act charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of being a felon in possession of a firearm carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian
U.S. Attorney Carpenito credited special agents of the ATF, under the direction of Special Agent in Charge Patterson; the Camden County Police Department, under the direction of Chief Wysocki; and the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer, with the investigation leading to today’s charges. This investigation was a joint efforts of the ATF Camden Field Office and the Camden County Police Department (CCPD) Shooting Response Team (SRT). ATF and CCPD have formulated a partnership composed of special agents, detectives, and intelligence analysts that investigate shooting incidents in real time.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
New Jersey Man Charged with Coercing and Enticing Commercial Sex WorkersRead the Press Release
NEWARK, N.J. – A New Jersey man who allegedly lured commercial sex workers to travel from out of state to engage in prostitution and other sexual acts by use of force, violence and threats in and around Middlesex County, New Jersey, will appear in court today, U.S. Attorney Craig Carpenito announced.
Jose Torres, 42, is charged by complaint with two counts of coercion and enticement. The defendant is scheduled to appear this afternoon before U.S. Magistrate Judge M. Page Kelly in Boston federal court. Torres was arrested on Feb. 14, 2020, in Boston.
According to documents filed in this case and statements made in court:
From May 2015 to October 2019, Torres persuaded, induced and enticed commercial sex workers to travel from various out of state locations, including Canada and New York, in order to engage in prostitution. Torres lured commercial sex workers to New Jersey with promises of large payments. When the commercial sex workers asked for payment, Torres became aggressive, often assaulting and raping them. Torres never paid the sex workers.
The coercion and enticement charges each carries a maximum term of 20 years’ imprisonment and a potential $250,000 fine.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Emma Spiro of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; the Middlesex County, New Jersey, Prosecutor’s Office, under the direction of Acting Prosecutor Christopher L. C. Kuberiet; and the Peabody, Massachusetts, Police Department, under the direction of Chief Thomas Griffin, with the investigation leading to the charges.
The charges and allegation in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Lead Defendant in Drug Trafficking Organization Admits Role in Heroin Distribution Conspiracy; Wife Admits Obstructing JusticeRead the Press Release
TRENTON, N.J. – A Monroe County, Pennsylvania, man today admitted that he conspired to distribute more than one kilogram of heroin as part of a conspiracy responsible for distributing significant quantities of heroin and cocaine in and around the Bayshore area of Monmouth and Middlesex counties, U.S. Attorney Craig Carpenito announced.
Guy Jackson, 47, of Effort, Pennsylvania, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin. Jackson also admitted to conspiring to distribute and possess with intent to distribute a quantity of cocaine.
Also today, Jackson’s wife, Lashawn Mealing, 48, of Manchester, New Jersey, (formerly of Effort, Pennsylvania), pleaded guilty before Judge Martinotti to an information charging her with one count of obstructing and attempting to obstruct justice with respect to the charges against Jackson and others, while Mealing was herself on federal pretrial release in the present case.
In November 2018, Jackson, Mealing, and 13 others were charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine. Mealing and Jackson are the 10th and 11th defendants to plead guilty. Defendant Deberal Rogers has been indicted.
According to documents filed in this case and statements made in court:
From May 2017 to November 2018, the defendants and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Jackson regularly obtained large quantities of heroin and cocaine for further distribution from co-defendant Gregory Gillens. The complaint alleged that Mealing also engaged in the conspiracy to distribute these narcotics. Gillens previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on June 2, 2020.
Members of the conspiracy sold the narcotics to other conspirators, distributors, sub-dealers, and end-users. Some of the heroin distributed by the conspiracy contained fentanyl, a dangerous synthetic opioid.
Following the filing of the complaint in November 2018, Mealing obstructed justice and attempted to do so by orchestrating, at Jackson’s request, the break-in of a rental vehicle that had been used as part of the narcotics trafficking conspiracy and the removal of evidence of the narcotics offense from the rental vehicle.
The heroin conspiracy count to which Jackson pleaded guilty carries a statutory mandatory minimum term of imprisonment of 10 years, a maximum potential penalty of life in prison, and a maximum fine of $10 million. If accepted by the court at the time of sentencing, Jackson’s plea agreement would result in Jackson serving a stipulated total sentence between 12 and 17½ years in prison. Sentencing is scheduled for June 23, 2020.
The obstruction of justice while on federal pretrial release count to which Mealing pleaded guilty carries a maximum potential penalty of 30 years in prison, and a maximum fine of $250,000. Sentencing is scheduled for June 23, 2020.
Jackson has been in custody since his arrest on November 28, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff's Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Acting Special Agent in Charge Tara McMahon; the New Jersey State Police, under the direction of Col. Patrick J. Callahan, Superintendent; the Matawan Police Department, under the direction of Chief Thomas J. Falco, Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief James K. Pigott; the Hazlet Police Department, under the direction of Chief Philip Meehan; and the Aberdeen Police Department, under the direction of Chief John T. Powers, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining four defendants are merely accusations and they are presumed innocent unless and until proven guilty.
Defense counsel:
Jackson: Lorraine S. Gauli-Rufo Esq., Verona, New Jersey
Mealing: David E. Schafer Esq., Princeton, New JerseyEmployee at Mortgage Company Sentenced to 46 Months in Prison for Illegally Accessing Computer to Steal $2 MillionRead the Press Release
CAMDEN, N.J. – A Camden woman was sentenced today to 46 months in prison for accessing a protected computer without authorization, stealing money from her employer and then laundering the proceeds of her theft, U.S Attorney Craig Carpenito announced.
Dilcia Mercedes, 38, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging her with one count of unauthorized access of a computer with intent to defraud and one count of money laundering. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From April 2014 to May 2017, Mercedes worked for a mortgage lender as a payment processor and had access to the company’s computer system. She discovered that some escrow checks were returned to the company as undeliverable. Mercedes admitted that she would monitor those funds by checking monthly reports to see if the funds were ever claimed. If the money was not claimed, Mercedes recruited various family members and friends to allow her to use their bank accounts. With that information, Mercedes used her family members’ and friends’ identities to open reloadable debit/credit accounts. She accessed the company’s computer system and made it appear as if the customer requested that the money be sent via wire transfer into the fraudulent accounts. After creating the request, Mercedes then accessed the company’s computer and approved the transfer using a co-worker’s login and password.
Mercedes caused approximately 580 fraudulent wire transfers, totaling more than $2 million, from her company’s bank account to bank accounts and reloadable debit/credit accounts controlled by Mercedes’ relatives, friends or associates. She then used the money to pay personal expenses.
In addition to the prison term, Judge Bumb sentenced Mercedes to three years of supervised release and ordered her to pay $2,087,697 in restitution.
U.S. Attorney Carpenito credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Wyatt Achord, and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Carroll, with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Michael Kahn Esq., Cherry Hill, New Jersey
Bergen County Man Sentenced to 30 Months in Prison for Embezzling Funds from Employee Benefit PlanRead the Press Release
NEWARK, N.J. – A Bergen County man who embezzled funds from his company’s employee benefit plan over an eight-year period was sentenced today to 30 months in prison, U.S. Attorney Craig Carpenito announced.
Howard Preschel, 63, of Teaneck, previously pleaded guilty before U.S. District Court Judge Susan D. Wigenton in Newark federal court to one count of an indictment charging him with embezzling funds from the CMG Vending Inc. Pension Trust Fund.
According to documents filed in this case and statements made in court:
Preschel served as the sole trustee for the CMG Vending Inc. Pension Trust Fund. CMG Vending operated, leased, and rented vending machines throughout New Jersey and New York. As the trustee, Preschel, by law, was a fiduciary and therefore required to act solely in the interest of the participants and beneficiaries.
Between November 2010 and April 2018, Preschel embezzled $368,782.66 from the pension trust fund by engaging in 52 separate illegal withdrawals or transfers from various pension trust accounts. As a result of these illegal withdrawals and transfers, the trust fund accounts lost an additional $93,266.98 in interest.
In addition to the prison term, Judge Wigenton sentenced Preschel to three years of supervised release. She also ordered Preschel to make restitution to the CMG Vending Inc. Pension Trust Fund in the amount of $462,049.64. Preschel also agreed to a debarment which prohibits him from acting as a fiduciary on behalf of any employee benefit plan for a period of 13 years.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in Mountainside, and the United States Department of Labor, Employee Benefits Security Administration, under the direction of Acting Regional Director of the New York Regional Office, Thomas Licetti, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Criminal Division in Newark.
Ten People Charged in $1.5 Million Fraud SchemeRead the Press Release
CAMDEN, N.J. – Ten people from South Jersey and Philadelphia have been charged with participating in a scheme to defraud individuals, companies, and financial institutions by misappropriating the victims’ bank account information and using that information to withdraw over $1.5 million in funds to which they were not entitled, U.S. Attorney Craig Carpenito announced today.
Kayla Massa, 22, of Gloucester City, New Jersey; Leire Massa, 19, of Laurel Springs, New Jersey; William Logan, 22, of Gloucester City; Jordan Herrin, 22, of Berlin, New Jersey; Erasmo Feliciano, 19, Laurel Springs; Kevin McDaniels, 18, of Sicklerville, New Jersey; Jabreel Martin, 20, of Philadelphia; Dezhon McCrae, 20, of Penns Grove, New Jersey; Andrew Johnson, 21, of Gloucester City; and Alex Haines 27, of Woodbury, New Jersey; are charged by complaint with conspiracy to commit wire fraud and bank fraud. They appeared before U.S. Magistrate Judge Karen M. Williams in Camden federal court today and on Feb.13, 2020.
According to documents filed in this case and statements made in court:
Postal inspectors connected stolen postal money orders to a series of fraudulent bank account activities at various area banks. They discovered a network of individuals in the Sicklerville, Clementon, and Gloucester City areas who posted advertisements on Instagram and Snapchat, offering people the ability to make “quick cash” if they banked at certain institutions. Some members of the conspiracy then acquired individuals’ banking information using a ruse, while others printed counterfeit checks that they deposited into the accounts. Members of the conspiracy also used victims’ debit cards to withdraw cash and make large purchases, including purchases of money orders. The group financed purchases of luxury items, including jewelry, watches, other luxury goods and apparel, vehicles, with the stolen funds. In most cases, the victims of this scheme suffered financial losses and credit problems as a result. The estimated loss at this time exceeds $1.5 million.
U.S. Attorney Carpenito credited postal inspectors with the U.S. Postal Inspection Services, Philadelphia Division, under the direction of Acting Inspector in Charge John Walker; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark; the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos; the Glassboro Police Department, under the direction of Chief John Polillo; New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Woodbury City Police Department, under the direction of Chief Thomas Ryan; the Gloucester Township Police Department - Special Investigations Unit, under the direction of Chief David J. Harkins; the Winslow Police Department, under the direction of Chief George M. Smith; and the Gloucester County Prosecutor’s Office - Fugitive Investigations Unit, under the direction of Prosecutor Charles Fiore, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Alisa Shver of the U.S. Attorney’s Office Criminal Division in Camden.
Members of Newark’s ‘Famous Boyz’ Street Gang Sentenced to PrisonRead the Press Release
NEWARK, N.J. – Five Newark men who were members of a street gang known as the “Famous Boyz” have been sentenced to prison for their roles in a conspiracy to distribute heroin and cocaine, U.S. Attorney Craig Carpenito announced today.
Robert Dorrah, 21, a/k/a “Cash Out,” was sentenced today to five years in prison and five years of supervised release. Dorrah previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiring to distribute and to possess with intent to distribute 100 grams or more of heroin.
Ibn Saadiq, 22, a/k/a “Zero,” was sentenced on Feb. 11, 2020, to five years in prison and five years of supervised release. He previously pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
David Lamar, 28, a/k/a “Brazy Ru,” was sentenced on Jan. 27, 2020, to five years in prison and five years of supervised release. He previously pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of crack cocaine.
Angelo West, 22, a/k/a “Come Up,” was sentenced on Jan. 16, 2020, to 10 years in prison and five years of supervised release. He previously pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin and 28 grams or more of crack cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime.
Quaheem Bethea, 21, a/k/a “Troub,” was sentenced on Jan. 6, 2020, to five years in prison and five years of supervised release. He previously pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.Judge Arleo imposed all the sentences in Newark federal court.
In October 2018, Dorrah, Saadiq, Lamar, West and Bethea, along with 12 other members of a violent drug trafficking conspiracy operating in Newark, were charged by criminal complaint with conspiracy to distribute crack cocaine and/or heroin. Shaka McKinney and Jahid Vauters, a/k/a “K,” a/k/a “KO,” also were charged with firearms possession offenses. To date, seven other members of the conspiracy, in addition to Dorrah, Saadiq, Lamar, West and Bethea, have pleaded guilty to drug and/or firearms charges in Newark federal court and await sentencing.
On Feb. 25, 2019, a grand jury returned an indictment charging Patricio Hernandez, Jonathan Hernandez, and Jonathan Garcia, a/k/a “Bebo,” with one count each of conspiracy to distribute and to possess with intent to distribute 280 grams or more of crack cocaine for their alleged participation in supplying the “Famous Boyz” with cocaine. On Sept. 30, 2019, a grand jury returned a 21-count superseding indictment against the remaining defendants, Patricio Hernandez, Jonathan Hernandez, Garcia, Javon Holmes, a/k/a “J-Dot”, and John Mosley, a/k/a “Breezy,” a/k/a “Brazy,” with various drug charges, including conspiracy to distribute cocaine base and heroin, distribution of cocaine base and heroin, distribution of controlled substances and maintaining a drug-involved premises. The charges in the superseding indictment remain pending against the remaining defendants.
According to the documents filed in this case and statements made in court:
The defendants are members and associates of the Famous Boyz – a subset of the Brick City Brim set of the Bloods street gang – which dealt significant quantities of heroin and crack cocaine, primarily in and around the area of South 18th Street and 15th Avenue, in Newark. The gang often referred to this area as the “8 Block,” “18th,” or simply by reference to the number “8”.
Mosley was a primary source of narcotics for the Famous Boyz and often directed the gang’s drug operations. Mosley and other members of the Famous Boyz shared narcotics, customers, and firearms with one another in furtherance of their narcotics trafficking activities, and they used juveniles to distribute narcotics and stash firearms. Patricio Hernandez and Jonathan Hernandez were among the main suppliers of crack cocaine to Mosley, while Vauters supplied Mosley with heroin. Heroin sold by Famous Boyz members, including Dawes, Armstrong and Williams, contained a fentanyl analogue, which is extremely dangerous and highly addictive.
Members of the Famous Boyz also used social media to promote the gang’s criminal activities, including by advertising their narcotics trafficking activities and proceeds and by threatening both rival gang members and any individuals who consider cooperating with law enforcement. Those members who sold narcotics also enriched themselves by committing other crimes, including robberies. For example, law enforcement, acting on information obtained from a wiretap, arrested West while he was attempting to commit a robbery. After law enforcement seized a .40 caliber firearm from the scene, Mosley was overheard complaining to Holmes, “so all the rachets gone” and “damn we just lost all the straps,” referring to the Famous Boyz losing their firearms.
U.S. Attorney Carpenito credited special agents of ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark, and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to sentencings.
He also thanked the DEA, under the direction of Special Agent in Charge Susan A. Gibson, the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, the N.J. State Police, under the direction of Col. Patrick J. Callahan, the Belleville Police Department, under the direction of Chief Mark Minichini, and the Livingston Police Department, under the direction of Chief Gary Marshuetz.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and is part of the Violent Crime Initiative (VCI) in Newark. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Deputy Chief of the Criminal Division Mary E. Toscano and Assistant U.S. Attorney Angelica M. Sinopole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations against the remaining defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Dorrah: John Whipple Esq., Morristown, New Jersey
Bethea: Kathleen M. Theurer Esq., Jersey City, New Jersey
West: Michael V. Calabro Esq., Newark
Lamar: Michael P. Koribanics Esq., Newark
Saadiq: James Patton Esq., Livingston, New JerseyBronx, New York, Man Admits Role in Conspiracy to Distribute Heroin and Fentanyl from Drug Mill in the BronxRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted participating in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, U.S. Attorney Craig Carpenito announced.
Daury Contreras Ulerio, 35, a/k/a “Majimbou,” pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Dilson Vazquez Genao, 23, Eddie Urena Rodriguez, 35, Francisco Mercedes Gil, 31, and Jose Antonio Vazquez Pena, a/k/a “Tono,” 47, also of the Bronx, New York, all have pleaded guilty before Judge Salas to the same charges previously.
Two other individuals – Jhan Carlos Capellan Maldonado, 31, and Reimon Genao Rosario, 23 – were indicted on the same charge as Ulerio in August 2019. Their cases are pending.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned that Maldonado used an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed approximately five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, but all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
Each defendant faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing for Ulerio is scheduled for May 27, 2020.
U.S. Attorney Craig Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Health Care Fraud Unit in Newark.
The charge and allegations contained in the indictment against Maldonado and Rosario are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Owner of Car Dealership Charged with Engaging in Large-scale FraudRead the Press Release
NEWARK, N.J. – The former owner of a Ramsey, New Jersey, car dealership is scheduled to make his initial court appearance and be arraigned today on charges that he defrauded his customers and lenders, U.S. Attorney Craig Carpenito announced.
Afzal Khan, a/k/a “Bobby Khan,” 37, was charged by indictment in 2015 with five counts of wire fraud.
According to the documents filed in this case and statements made in court:
From at least December 2013 through September 2014, Khan, through his car dealership,
Emporio Motor Group (“Emporio”) of Ramsey, engaged in acts to defraud lenders to, and customers of, Emporio. As part of his criminal activities, Khan obtained loans from the auto finance division of a large bank for cars that he never delivered, but for which the purchaser was still responsible. Khan also obtained loans from the victim bank for cars that were delivered, but for which neither he nor Emporio had title. The purchasers of these cars were liable for the loans, but could not register the cars. Khan also offered to sell cars for individuals on consignment but thereafter did not return the cars or provide any money to the purchaser from the sale of the car.
As a result of Khan’s actions, the victim bank was exposed to a potential loss of more than $1.5 million.
Each count of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Khan or twice the gross loss suffered to the victims of his offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the indictment. He also thanked the Department of Justice’s Office of International Affairs, the Bergen County Prosecutor’s Office and the Ramsey Police Department for their assistance in the case.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Postal Worker Admits Role in Bank Fraud SchemeRead the Press Release
NEWARK, N.J. – Three New Jersey individuals have admitted their roles in a scheme to steal checks worth more than $75,000 from the U.S. Postal Service (USPS) in Chester, New Jersey, U.S. Attorney Craig Carpenito announced.
Nicole Georges, 30, pleaded guilty today before U.S. District Judge William J. Martini, in Newark federal court to an information charging her with theft of mail and conspiracy to commit bank fraud. Raheem Haynes-Moore, 25, and Daquan Pruitt, 31 previously pleaded guilty to separate informations charging each with conspiracy to commit bank fraud, as a result of the scheme to cash the stolen checks.
According to documents filed in this case and statements made in court:
Georges stole checks from the USPS station in Chester, New Jersey where she was employed. Georges and her conspirators then fraudulently deposited them into various bank accounts, and withdrew the money, often that same day or a day later before the checks were reported stolen. The stolen checks had a total value of over $75,000.
The charge of theft of mail by postal employee carries a maximum penalty of up to five years in prison and up to a $250,000 fine. The charge of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. Sentencing for Georges is scheduled for June 18, 2020. Sentencing for Pruitt and Haynes-Moore is scheduled for April 23, 2020.
U.S. Attorney Craig Carpenito credited postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge James Buthorn, the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, and officers of the Chester Police Department, under the direction of Chief Thomas Williver, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Sophie E. Reiter of the U.S. Attorney’s Office Criminal Division in Newark.
Essex County Man Sentenced to Three Years in Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 36 months in prison for his role in a scheme to use credit cards stolen by mail carriers from the mail, U.S. Attorney Craig Carpenito announced.
Elhadj Fofana, 23, of Orange, New Jersey, previously pleaded guilty before U.S. District Judge Kathryn S. Hayden to an information charging him with bank fraud and aggravated identity theft. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From July 2017 to February 2018, Fofana and others used credit cards that were stolen by mail carriers to make unauthorized purchases of retail goods, such as Apple MacBook Pro devices and other Apple products, throughout New Jersey and New York, causing financial losses to the banks that issued the credit cards. Olagoke Araromi and Moussa Dagno, who bribed the mail carriers to steal the credit cards from the mail that were used for the scheme were sentenced in October to prison terms for their roles in the scheme.
In addition to the prison term, Judge Hayden sentenced Fofana to three years of supervised release and ordered him to pay restitution in the amount of $114,680.
U.S. Attorney Carpenito credited special agents with the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jihee G. Suh and Senior Trial Counsel Mark McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division.
California Man Admits Plot to Distribute over 30 Pounds of Crystal Methamphetamine and Five Kilos of Fentanyl into New JerseyRead the Press Release
CAMDEN, N.J. – A California man today admitted shipping approximately 30 pounds of crystal methamphetamine and conspiring to send an additional 5 kilograms of fentanyl into New Jersey, U.S. Attorney Craig Carpenito announced.
Jesus Zavala-Torres, 34, of San Jacinto, California, pleaded guilty before U.S. District Judge Noel Hillman in Camden federal court to an information charging him with one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and a quantity of fentanyl.
According to documents filed in this case and statements made in court:
In September 2018, law enforcement officers received information that an individual identified as Isabel Otanez-Sanchez, was shipping large quantities of narcotics to New Jersey from California. On Jan. 28, 2019, Sanchez agreed to send 30 pounds of methamphetamine to a law enforcement confidential source (the “CS”) in Atlantic City, New Jersey. Torres and Sanchez hid 28 packages of methamphetamine inside a salvaged vehicle that was shipped from California to New Jersey. Agents recovered the 28 packages, totaling approximately 30 pounds, from the car’s gas tank. On Feb. 12, 2019, the CS met with Sanchez and Torres in Riverside, California. At this meeting, Sanchez and Torres also agreed to sell an additional five kilograms of fentanyl that would be shipped to the CS in New Jersey in the same manner as the methamphetamine. Following this meeting, Sanchez and Torres were arrested by law enforcement and the five kilograms of fentanyl they intended to ship to New Jersey were recovered. Sanchez and Torres were charged by criminal complaint in the District of New Jersey with conspiracy to distribute methamphetamine and fentanyl.
The conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing is scheduled for June 17, 2020.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), Cherry Hill, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to the arrests. He also thanked HSI in Riverside, CA; the New Jersey State Police; the Hemet, California, Police Department; and the Atlantic City Task Force for their assistance.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden.
Former Pharmacy Employee Admits Role in Multi-Million Dollar Illegal Kickback SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted participating in a conspiracy to pay and accept kickbacks in exchange for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced.
Zachary Ohebshalom, 34, of Fort Lee, New Jersey, pleaded guilty today before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with conspiring to violate the federal anti-kickback statute. The information alleges that he conspired with the following three individuals who have been previously charged by criminal complaint in the District of New Jersey: Mark Filippone M.D., 71, of Wallington, New Jersey; Joseph Vangelas, a/k/a “Joseph Miller,” 33, of Fort Lee, New Jersey; and Marlene Vangelas, 58, of River Vale, New Jersey. Criminal charges against Filippone, Joseph Vangelas, and Marlene Vangelas remain pending. Estela Blaustein, 55 of Mahwah, New Jersey, previously pleaded guilty for her role in a related conspiracy to commit health care fraud and is pending sentencing.
According to documents filed in this case and statements made in court:
Beginning in May 2016, Ohebshalom participated in a kickback conspiracy stemming from a scheme to obtain millions of dollars in health benefits from the federal workers’ compensation program by prescribing and dispensing expensive, but medically unnecessary, pain creams. Dr. Filippone treated hundreds of now-former U.S. Postal Service employees for injuries they purportedly suffered on the job. He allegedly facilitated their disability claims by submitting forms and medical reports to the Department of Labor, Office of Workers’ Compensation Program, for patients who were not, in fact, disabled.
Dr. Filippone also prescribed expensive topical pain creams, which were not needed or wanted by many of his patients. The information alleges that Dr. Filippone steered these prescriptions to a pharmacy in Fair Lawn, New Jersey, where Blaustein was the pharmacist-in-charge. The Fair Lawn Pharmacy was owned and operated by Joseph Vangelas and Marlene Vangelas, who, along with Ohebshalom, directed Blaustein and others to mine reimbursement rates within the federal workers’ compensation program for the ingredients of the pain creams in order to determine the most lucrative formulations. Joseph Vangelas, Marlene Vangelas, and Ohebshalom directed Blaustein and others to print prescription labels for Dr. Filippone to use with his patients. Dr. Filippone used the pre-printed labels and sent the prescriptions back to the Fair Lawn Pharmacy. In order to induce Dr. Filippone to prescribe the medically unnecessary pain creams in the exact formulations they wished to obtain, Joseph Vangelas and Marlene Vangelas purchased Dr. Filippone’s medical office and then permitted Dr. Filippone to continue to use the premises, for which he routinely failed to pay rent. Joseph Vangelas, Marlene Vangelas, and Ohebshalom conspired to leverage the property to force Dr. Filippone to continue to send prescriptions to their pharmacy. Dr. Filippone continued to feed prescriptions to the pharmacy, so long as Miller and Vangelas permitted him to remain rent-free in the property.
As part of his plea agreement, Ohebshalom agreed that the improper benefit conferred as part of the conspiracy to violate the federal anti-kickback statute was between $1.5 million and $3.5 million.
The count of conspiracy to violate the federal anti-kickback statute is punishable by a maximum of 5 years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for May 21, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark; the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge of the Northeast Area Field Office Matthew M. Modafferi; the Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit of the U.S. Attorney’s Office in Newark.
The charges against and allegations in the information pertaining to Filippone, Joseph Vangelas, and Marlene Vangelas are merely accusations, and those three defendants are presumed innocent unless and until proven guilty.
Essex County Man Sentenced to Two Years in Prison for Bribing Mail Carriers to Deliver Parcels Containing MarijuanaRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, resident was sentenced today to 24 months in prison for bribing mail carriers from the U.S. Postal Service (USPS) to deliver to him parcels containing marijuana, U.S. Attorney Craig Carpenito announced.
Glenn Blackstone, 50, of Newark, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of giving bribes and one count of conspiracy to distribute marijuana. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From October 2014 to September 2017, Blackstone purchased marijuana from a conspirator, who produced the marijuana in California and shipped it in parcels to New Jersey. On multiple occasions, Blackstone bribed two USPS mail carriers to remove the parcels from the normal delivery stream and deliver them instead to him at various locations in Newark. These parcels had fictitious names and addresses on them and were not addressed directly to Blackstone. After receiving the packages from the mail carriers and paying the bribes, Blackstone then sold the marijuana to others in Newark.
In addition to the prison term, Judge Salas sentenced Blackstone to five years of supervised release.
One of the mail carriers, Leonard Gresham, 52, of Rahway, New Jersey, also was sentenced by Judge Salas today to three years of probation for taking bribes from Blackstone. Another mail carrier, Fred Rivers, 47, of Newark, was sentenced to three years of probation with a condition of one year of home confinement by Judge Salas on Jan. 23, 2020 for his role in the bribery scheme.
U.S. Attorney Craig Carpenito credited special agents with the USPS-Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s sentencings.
The government is represented by Lee M. Cortes Jr., Chief of the Health Care Fraud Unit and Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.
Department of Justice Files Suit to Enjoin Two Aspects of New Jersey Attorney General Law Enforcement Directive on ImmigrationRead the Press Release
NEWARK, N.J. – The U.S. Department of Justice filed a complaint today against the State of New Jersey, Governor Philip Murphy, and state Attorney General Gurbir Grewal challenging two aspects of New Jersey Attorney General Law Enforcement Directive 2018-6.
The complaint seeks to enjoin two aspects of the Directive and for the Court to declare these aspects of the Directive invalid. Among other things, the Directive prohibits state officials from sharing information with U.S. Immigration and Customs Enforcement (ICE) related to the immigration status and release dates of individuals in their custody. The Directive also requires New Jersey law enforcement to “promptly notify a detained individual, in writing and in a language the individual can understand,” if ICE files an immigration detainer request for the individual.
U.S. Attorney Craig Carpenito stated: “Today’s lawsuit, filed by the Department of Justice, seeks to restore the balance of power between the Federal and State governments. The complaint challenges two provisions of the Directive, which limit the situations in which local, county and state officials can provide notice to federal immigration authorities of a detained individual’s upcoming release and mandates that local, county and state officials inform detainees of certain events, including the detainee’s release date. Today’s filed lawsuit presents important legal issues concerning whether the Directive’s prohibitions and restrictions on information sharing and basic cooperation with federal officials violate the Supremacy Clause of the U.S. Constitution.”
Camden Woman Admits Role in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A member of a drug-trafficking organization today admitted her role in a conspiracy to distribute significant amounts of illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.
Meylin Troncoso, 32, of Camden, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging her with conspiracy to distribute and possess with intent to distribute heroin within 1,000 feet of a school.
Thirteen other members of the drug-trafficking conspiracy – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, Naeem Sadler, Jasmin Velez, Jameel Byng, Kaliel Johnson, David Velez and Carlos Perez – previously have pleaded guilty to their roles in a drug trafficking conspiracy that was based on the 500 block of Pine Street in Camden. The charges against five other defendants remain pending.
According to documents filed in this case and statements made in court:
Members of the drug-trafficking organization sold heroin, crack cocaine, powder cocaine, and fentanyl – in and around Camden. An investigation led by the FBI used surveillance tactics, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations of the Camden drug-trafficking organization.
The count to which Troncoso pleaded guilty carries a mandatory penalty of one year in prison, a maximum potential penalty of 40 years in prison, and a $2 million fine. Her sentencing is scheduled for May 18, 2020.
U.S. Attorney Craig Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Acting Special Agent in Charge Tara McMahon in Philadelphia; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
For the five defendants whose charges remain pending, the charges and allegations are merely accusations, and they are presumed innocent unless and until proven guilty.
U.S. Attorney’s Office Reaches ADA Settlement with Charter Bus Company to Protect the Rights of Americans with DisabilitiesRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey has reached a settlement with a charter bus company, Academy Express, LLC (“Academy”), headquartered in Hoboken, New Jersey, to ensure equal access for passengers with disabilities under the Americans with Disabilities Act (“ADA”), U.S. Attorney Craig Carpenito announced. This year marks the 30th Anniversary of the ADA, which U.S. Attorneys’ Offices play a critical role in enforcing.
The agreement resolves allegations of disability discrimination against a 74-year-old veteran who became paraplegic after his helicopter was gunned down in Vietnam. The veteran, who was a Staff Sergeant in the Army’s 189th Assault Helicopter Company and served in Vietnam in 1968 and 1969, sought to join dozens of his fellow combat unit veterans on an Academy charter bus for a multi-day “Honor Flight” tour of Arlington National Cemetery and other Washington, D.C. area sites. Although the group’s organizer had requested, over a month in advance, that at least one of Academy’s charter buses for the tour have a working wheelchair lift to accommodate the veteran, Academy violated the ADA by failing to provide a bus with a working wheelchair lift or a replacement bus with a working lift. Instead, the veteran who, in addition to having a severe lack of mobility outside of his wheelchair, suffers from combat-related Post-Traumatic Stress Disorder, was separated from his comrades and compelled to endure lengthy, embarrassing, and unsuccessful attempts to board him on an inaccessible bus.
The ADA requires over-the-road demand-responsive bus operators to ensure that passengers with disabilities who request accessible service receive accessible service. A bus operator may require 48 hours advanced notice, but if a request is made within 48 hours of a trip, the operator must provide a lift if it can do so by making a reasonable effort. A bus operator must, among other things, also establish a system of regular and frequent maintenance checks of wheelchair lifts sufficient to determine if they are operative, and to train their employees to proficiency regarding the proper operation and maintenance of accessibility features and equipment.
“The men and women of our Armed Forces have made extraordinary and selfless sacrifices to protect the rights and freedoms of all Americans,” said U.S. Attorney Craig Carpenito. “This Office remains resolute in its commitment to honor those sacrifices and ensure that the rights of servicemembers and veterans be respected. Through our enforcement of the ADA, we will continue to protect veterans and other individuals with disabilities from unequal and unfair treatment.”
Under the settlement agreement, Academy has agreed to implement policies and procedures to ensure that persons with disabilities receive accessible transportation on the day and at the time and place requested, to publish on its website a statement of that policy, and to provide mandatory employee training on the ADA in accordance with regulatory requirements. Academy will also pay $10,000 as a civil penalty to the United States, and $10,000 in damages to the aggrieved veteran.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. For more information on the ADA, visit www.ada.gov, or call the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).
The government is represented by Special Assistant U.S. Attorney Victor Williamson of the U.S. Attorney’s Office Civil Rights Unit in Newark.
Operator of New Jersey Home Health Care Agency Sentenced to Prison for Not Paying Employment TaxesRead the Press Release
A Manahawkin, New Jersey, business owner was sentenced to 12 months and one day in prison today for willfully failing to pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Craig Carpenito for the District of New Jersey. Dale previously pleaded guilty to the charge in January 2019.
According to the information and other pleadings filed in the case, Richard Dale operated Advanced Pro Home Care Inc. (Home Care), a health care agency located in Brick, New Jersey. As operator and payroll manager of Home Care, Dale was responsible for depositing and withdrawing money from Home Care’s business bank accounts, administering its accounts payable and receivable, and preparing payroll for its employees. Dale also was required to report and pay over employment taxes to the Internal Revenue Service (IRS). From 2012 through 2014, however, Dale did not pay to the IRS substantial employment taxes owed by Home Care, including employee federal income tax withholdings, Social Security taxes, and Medicare taxes, nor did he file the requisite employment tax forms. During this period Home Care amassed more than $500,000 in employment tax liabilities, but Dale only made a single payment of approximately $30,000.
In addition to the term of imprisonment, U.S. District Judge Peter G. Sheridan ordered defendant to serve three years of supervised release and to pay approximately $504,145 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Carpenito thanked special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Brian Lee Urbano and Trial Attorney Shawn Noud of the Tax Division, who prosecuted the case.
Jersey City Woman Sentenced to 135 Months in Prison for Role in Smuggling Fentanyl into Prison, Resulting in Inmate OverdoseRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, woman was sentenced today to 135 months in prison for her role in conspiring to distribute fentanyl, which resulted in the overdose of an inmate at a New Jersey State prison, U.S. Attorney Craig Carpenito announced.
Jasmir Humphrey, a/k/a “Jasmir Jackson,” 31, previously pleaded guilty to an information charging her with one count of conspiracy to distribute and possess with intent to distribute fentanyl. U.S. District Judge Brian R. Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Noel Salgado, a/k/a “Kuko,” who is the leader of the “Loyal Hoody Gang” subset of the Neighborhood Rolling 20 Bloods, a nationwide street gang, was previously incarcerated as an inmate at Bayside State Prison. While incarcerated, Salgado directed Humphrey, gang members, and associates to provide narcotics proceeds to him and his associates and to smuggle narcotics and other contraband into the prison in order to distribute to other inmates.
In particular, on October 17, 2015, Salgado called Rodgerick Garrett, a/k/a, “Fif,” a/k/a, “Boo,” from prison to arrange for the purchase and smuggling into the prison of heroin and fentanyl. Humphrey picked up the narcotics from Garrett and smuggled them to Salgado on October 18, 2015. The following day, an inmate of Bayside State Prison, to whom Salgado had distributed the narcotics, was found unresponsive in his cell suffering from a drug overdose. Despite rescue breathing efforts, the inmate remained unconscious for approximately 20 minutes. The inmate only regained consciousness after medical personnel administered an opiate antidote to revive the inmate. The inmate was hospitalized for two days following his overdose. Law enforcement’s investigation revealed that Humphrey had smuggled in drugs for Salgado on prior occasions. Charges against Salgado and Garrett are still pending, and they are both presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Martinotti sentenced Humphrey to three years of supervised release.U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and investigators with the N.J. Department of Corrections, Special Investigations Division, under the direction of Commissioner Marcus O. Hicks, with the investigation leading to the charges resulting in today’s sentencing. He also thanked the Jersey City Police Department and the Hudson County Sheriff’s Office for their assistance.
The government is represented by Assistant U.S. Attorneys Christopher D. Amore and Elaine K. Lou of the U.S. Attorney’s Office in Newark.
Defense counsel: Joseph M. Corazza, Esq.
Two Owners of Telemedicine Companies Charged for Roles in $56 Million Conspiracy to Defraud Medicare and Receive Illegal Kickbacks in Exchange for Orders of Orthotic BracesRead the Press Release
The owners of two telemedicine companies were charged in an indictment unsealed yesterday for allegedly orchestrating a nationwide scheme to receive kickbacks and bribes in exchange for the ordering of medically unnecessary orthotic braces (braces) for beneficiaries of Medicare.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Rachael Honig of the District of New Jersey, Deputy Inspector General for Investigations Gary Cantrell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director Terry Wade of the FBI’s Criminal Investigative Division made the announcement.
Reinaldo Wilson, 51, and Jean Wilson, 49, husband and wife of Richmond Hill, Georgia, the owners of purported telemedicine companies Advantage Choice Care LLC (ACC) and Tele Medcare LLC (Tele Medcare), were each charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks, one count of conspiracy to commit health care fraud and wire fraud, three counts of receiving health care kickbacks, and one count of conspiracy to commit money laundering. Reinaldo Wilson and Jean Wilson were arrested this morning and appeared this afternoon before U.S. Magistrate Judge L. Patrick Auld of the Middle District of North Carolina. Reinaldo Wilson is being held pending a bail hearing set for Feb. 11. Jean Wilson was released and will appear for a bail hearing on Feb. 11.
The indictment alleges that Reinaldo Wilson and Jean Wilson owned and operated purported telemedicine companies ACC and Tele Medcare, which had locations in Bayonne, New Jersey, Boca Raton, Florida, and Richmond Hill, Georgia. The indictment further alleges that Reinaldo Wilson and Jean Wilson agreed to solicit and receive illegal kickbacks and bribes from patient recruiters, pharmacies, brace suppliers and others in exchange for the arranging for doctors to order medically unnecessary braces for beneficiaries of Medicare from approximately March 2017 through April 2019. In order to obtain the orders that were transmitted in exchange for kickbacks and bribes, Reinaldo Wilson and Jean Wilson, through ACC and Tele Medcare, recruited and hired health care providers to order braces for Medicare beneficiaries, the indictment alleges. Reinaldo Wilson and Jean Wilson allegedly paid illegal kickbacks and bribes to health care providers to order braces for Medicare beneficiaries that were medically unnecessary, ineligible for Medicare reimbursement and/or not provided as represented.
The indictment further alleges that Reinaldo Wilson, Jean Wilson and others transferred the brace orders to co-conspirator brace suppliers to support in excess of $56 million in false and fraudulent claims to Medicare that were submitted by brace suppliers and that Medicare paid these brace suppliers in excess of $28 million for these claims.
With regard to the money laundering charge, that indictment alleges that between approximately March 2017 and April 2019, Reinaldo Wilson and Jean Wilson agreed to engage in monetary transactions of criminally derived property in amounts greater than $10,000.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by HHS-OIG and the FBI. Trial Attorney Darren C. Halverson of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and DME marketing schemes – including Advantage Choice Care LLC and Tele Medcare LLC – should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Trenton Man Sentenced to 86 Months in Prison for Possession and Sale of Firearm and Distribution of HeroinRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 86 months in prison for possessing a firearm and ammunition as a convicted felon and for distributing quantities of heroin, U.S. Attorney Craig Carpenito announced.
Kendall Rossi, 41, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to Counts One and Four of an indictment charging him with unlawful possession of a firearm and ammunition as a convicted felon and distribution and possession with intent to distribute controlled substances. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On three occasions between August 2017 and September 2017, Rossi, who previously had been convicted of numerous felonies, and whom law enforcement officials had identified as an unlawful firearms supplier in and around Trenton, sold quantities of heroin and ANPP (a fentanyl analogue) to a confidential law enforcement source. Rossi boasted about his ability to obtain numerous firearms that he could sell. In October 2017, in a controlled transaction supervised by federal law enforcement, Rossi sold the confidential source a .380 caliber semi-automatic firearm and 47 rounds of .380 caliber ammunition. Rossi sold the firearm to the source under the belief that the source would use the firearm in connection with a robbery.
In addition to the prison term, Judge Wolfson sentenced Rossi to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
20-052
Defense Counsel: Alyssa Cimino Esq., Fairfield, New Jersey
Multiple-Time Convicted Felon Who Had Violent Encounter with Law Enforcement Admits Possessing Cocaine, Oxycodone, and A FirearmRead the Press Release
NEWARK, N.J. – A Union County, New Jersey man who was previously convicted of several felonies admitted that he possessed and intended to distribute drugs and that he possessed a handgun to aid his drug distribution, U.S. Attorney Craig Carpenito announced today.
Arthur Forman, 37, pleaded guilty on Feb. 4, 2020 to a Superseding Information charging him with possession with the intent to distribute cocaine and oxycodone, possession of a firearm in the course of committing that drug crime, and being a previously convicted felon in possession of a firearm. Forman entered his plea before United States District Judge Katharine S. Hayden in Newark federal court.
According to documents filed in this case and statements made in court:
During an encounter with the Plainfield, NJ police Department on October 13, 2017, Forman resisted arrest by violently choking a Plainfield detective. While trying to evade capture, Forman transferred a bag containing the cocaine and firearm to a family member, who attempted to dispose of the bag and its contents by throwing it out a window. During a subsequent search of Forman’s bedroom, Plainfield police officers found numerous oxycodone pills and paraphernalia used to grind pills and package drugs for sale. Forman today acknowledged that he possessed the drugs and gun. Forman also acknowledged that he was previously convicted in 2016 in Union County, New Jersey of resisting arrest and eluding, a felony under New Jersey state law.
The combined charges are punishable by a maximum sentence of 30 years to life in prison.
U.S. Attorney Carpenito credited the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the leadership of Special Agent in Charge Charlie J. Patterson; the Plainfield Police Division, under the leadership of Police Director Lisa Burgess; and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Lyndsay V. Ruotolo, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Joshua L. Haber and Desiree Grace Latzer of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: James Lisa, Esq., Jersey City, NJ
Leader of Atlantic City Drug Trafficking Organization and Coconspirator Plead GuiltyRead the Press Release
CAMDEN, N.J. – Two members of an Atlantic City drug-trafficking organization, including the leader of the organization, pleaded guilty today to distributing large amounts of heroin throughout Atlantic City, U.S. Attorney Craig Carpenito said.
Khalif Toombs, 30, of Egg Harbor Township, NJ, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin.
Nasir Brown, 27, of Atlantic City, NJ, also pleaded guilty to an information charging him with one count of conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin.
Eight other members of the drug trafficking conspiracy – Wilbert Toombs, Quadir Stanley, Dean Johnson, Khalif Davis, Joseph Aversa, Thomas Randall, Mayda Hernandez, and Sarah Taliaferro – previously have pleaded guilty. The charges against twelve other defendants remain pending.
According to documents filed in the case and statements made in court:
Toombs, Brown, and other members of the drug conspiracy trafficked heroin from Paterson, New Jersey and into Atlantic City, New Jersey throughout the course of the investigation. Toombs admitted in court to conspiring with others to traffic between three and ten kilograms of heroin during this time and to being a manager and supervisor of the drug trafficking conspiracy which operated throughout Atlantic County. An investigation led by the FBI used physical and video surveillance, confidential informants, consensual recordings, and two court authorized wiretaps to uncover the operations of Toombs and his many coconspirators. The investigation tracked multiple stamps of heroin being distributed by Toombs and others, including, “AK-47,” “Apple,” “Fortnite,” “Rolex,” “Frank Lucas,” “Bentley,” “Pandora,” and “9 ½.” Between January 1, 2017 and June 21, 2019, these stamps have accounted for 48 deaths and 84 non-fatal overdoses in the State of New Jersey.
The count to which Toombs pleaded guilty carries a mandatory penalty of 10 years in prison, a maximum potential penalty of a life in prison, and up to a $10 million fine. His sentencing is scheduled for May 12, 2020.
The count to which Brown pleaded guilty carries a mandatory penalty of 5 years in prison, a maximum potential penalty of 40 years in prison, and up to a $5 million fine. His sentencing is scheduled for May 12, 2020.
U.S. Attorney Carpenito credited special agents of the FBI’s Safe Streets South Jersey Violent Incident and Gang Task Force, Atlantic City Resident Agency, and FBI-Newark, under the direction of Special Agent in Charge Gregory W. Ehrie; officers of the Atlantic City Police Department, under the direction of Chief Henry White; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Atlantic County Sheriff’s Department, under the direction of Sheriff Eric Scheffler; and the Pleasantville Police Department, under the direction of Chief Sean Riggin, with the investigation leading to today’s guilty pleas. He also thanked the U.S. Department of Homeland Security, Homeland Security Investigations; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the N.J. State Police for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorney Martha K. Nye of the U.S. Attorney’s Office Criminal Division in Trenton.
For the twelve defendants whose charges remain pending, the charges and allegations are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel:
Toombs: Jerome Ballarotto Esq., Trenton, New Jersey
Brown: Mark Catanzaro Esq., Mount Holly, New Jersey