District of New Jersey
Press releases recorded for this federal judicial district.
Hoboken-Based Accountant Sentenced to 12 Months for Tax EvasionRead the Press Release
NEWARK, N.J. – A Hoboken-based accountant was sentenced to a year and a day in prison for evading more than $914,000 in taxes on income he earned from his accounting practice and various rental properties he owned, U.S. Attorney Craig Carpenito announced today.
Louis Picardo, 64, of Hoboken, New Jersey, previously pleaded guilty to an information charging him with four counts of income tax evasion. U.S. District Judge Stanley R. Chesler imposed the sentence on Feb. 4, 2020 in Newark federal court.
According to documents filed in this case and statements made in court:
Picardo served as the Tax Collector in Hoboken between 1973 and 2008 and was a partner in Cannarozzi & Picardo LLC, a Hoboken-based accounting firm. Picardo also was a member of multiple entities (the “Picardo Entities”) that managed both commercial and residential properties in Hudson County. Picardo failed to report approximately $3,725,853 in taxable income that he collected from Cannarozzi & Picardo and the Picardo Entities on federal income tax returns he filed with the IRS for the tax years 2012 to 2015, resulting in a tax loss to the United States of approximately $914,908.
In addition to the prison term, Judge Chesler sentenced Picardo to two years of supervised release and ordered him to pay restitution to the IRS in the amount of $914,908.
U.S. Attorney Craig Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the sentence.
The government is represented by Assistant United States Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Rahul Agarwal, Deputy Chief of the Criminal Division.
Defense counsel: Peter Willis, Esq., Jersey City
Former Corrections Officer Sentenced to 84 Months in Prison for Distributing Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 84 months in prison for distributing images and videos of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Michael A. Ruggiero, 38, of Lacey Township, New Jersey, a former corrections officer, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of distribution of child pornography. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:From April 16, 2016, to April 19, 2016, Ruggiero used a mobile chat application to distribute and share over the internet images and videos of child sexual abuse. Some of the images and videos were of prepubescent children or children who had not attained the age of 12. Ruggiero also received over the same mobile chat application other images and videos of child sexual abuse, and he possessed additional depictions of child sexual abuse on his cellular telephone at the time of his arrest in June 2017.
In addition to the prison sentence, Judge Sheridan sentenced Ruggiero to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian A. Michael; inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Daniel B. Brubaker, Philadelphia Division; and members of the Ocean County Prosecutor’s Office under the direction of Prosecutor Bradley Billhimer with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Telesforo Del Valle, Jr., Esq., New York, NY
Elmer, New Jersey, Man Sentenced for Illegally Storing Hazardous Waste at Former Glassboro Drum Reconditioning CompanyRead the Press Release
CAMDEN, N.J. – The former President and owner of a Glassboro, New Jersey, drum reconditioning company was sentenced today to 30 days’ imprisonment for illegally storing hazardous waste, U.S Attorney Craig Carpenito, and Deputy Assistant Attorney General Jean E. Williams of the Environment and Natural Resources Division of the U.S. Department of Justice, announced.
Thomas Toy, 75, of Elmer, New Jersey, previously pleaded guilty before Judge Renee M. Bumb to one count of storing hazardous waste at Superior Barrel and Drum Company, Inc.’s Glassboro, New Jersey, facility, in violation of the Resource Conservation and Recovery Act (RCRA). Judge Bumb imposed the sentence today in Camden federal court.
According to court documents filed in this case and statements made in court:
RCRA was enacted in 1976 to address a growing nationwide problem with industrial and municipal waste. RCRA was designed to protect human health and the environment and provided controls on the management and disposal of hazardous waste. RCRA prohibits the treatment, storage or disposal of any hazardous waste without a permit.
Superior received drums from various industrial customers, cleaned and processed those drums, and then resold them. As the President and owner of Superior, Toy’s responsibilities included making decisions about the storage and disposal of waste, including hazardous waste, at Superior’s facility. Superior did not have a permit to store hazardous waste at Superior’s facility.
Between on or about September 27, 2013, and on or about September 25, 2014, the United States Environmental Protection Agency (EPA) conducted a removal action of waste stored at Superior’s facility. In total, approximately 1,800 containers of waste were removed from Superior’s facility. Much of the waste was found to be hazardous. The direct cost to EPA of the removal action was over $4.2 million.
In addition to the prison term, Judge Bumb sentenced Toy to three years of supervised release, with a special condition of 30 days’ home confinement. She also ordered him to pay $4.2 million in restitution.
U.S. Attorney Carpenito credited special agents of the U.S. Environmental Protection Agency, under the direction of Special Agent in Charge Tyler C. Amon, with the investigation leading to today’s sentencing.
The Government is represented by Senior Environmental Counsel Kathleen P. O'Leary and Special Assistant United States Attorney Jason Garelick of the U.S. Attorney's Office Government Fraud Unit in Newark, and Trial Attorney Adam Cullman of the Environmental Crimes Section of the U.S. Department of Justice.
Alleged Members of Jersey City Gang Charged with Shooting Five PeopleRead the Press Release
NEWARK, N.J. – Two alleged members of a Jersey City gang have been charged with the June 30, 2018, shooting of five people, U.S. Attorney Craig Carpenito announced today.
Jalil Holmes, a/k/a “Broadday,” 20, of East Orange, New Jersey, and Jidon Rogers, 37, of Jersey City, New Jersey, made their initial appearances today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. They each are charged by complaint with five counts of assault with a dangerous weapon in aid of racketeering activity and five counts of discharging a firearm during a crime of violence.
According to the documents filed in this case and statements made in court:
Holmes and Rogers are allegedly both associated with a street gang known to operate in the area of the Marion Gardens Housing Complex in Jersey City. While paying homage to a fellow gang member who was murdered on June 30, 2013, Holmes, Rogers, and two other gang members traveled from the Marion Gardens Housing Complex to the area where their fellow gang member had been murdered five years prior, with the intention of shooting rival gang members. Upon arriving in that area, Holmes and the two other gang members exited the car that Rogers drove, brandished handguns, and fired multiple shots into a crowd of people. “Victim One” sustained one gunshot wound to his left thigh; “Victim Two” sustained one gunshot wound to his right calf; “Victim Three” sustained one gunshot wound to his right leg; “Victim Four” sustained two gunshot wounds to her upper right shoulder; and “Victim Five” sustained a gunshot wound to his left wrist.
Each count of assault with a dangerous weapon in aid of racketeering activity is punishable by up to 20 years in prison. Each count of discharging a firearm during a crime of violence carries a mandatory minimum term of 10 years in prison and a maximum sentence of life in prison, which must run consecutively to any terms imposed on the other counts. Holmes also has separate pending charges for a January 9, 2019 shooting of rival gang members.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the Organized Crime and Gangs Unit 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:
Holmes: Mark Berman, Esq., Hackensack, New Jersey
Rogers: Victor Afanador, Esq., Newark, New JerseyFive Jersey City Men Charged for Conspiracy to Distribute Heroin and CocaineRead the Press Release
NEWARK, N.J. – Five men from Jersey City, New Jersey have been charged with conspiracy to distribute and possess with intent to distribute narcotics, U.S. Attorney Craig Carpenito announced today.
Jerome Powell, 40, Raheem Rogers, 28, Karee Cunningham, 24, Rafiq Holmes, 40, and Matthew Collier, 36, are charged by criminal complaint with one count of conspiracy to distribute and possess with intent to distribute quantities of both heroin and cocaine. Rogers and Powell were arrested this morning. The other defendants remain at large.
The two defendants appeared on February 4, 2020, before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Raheem Rogers and Jerome Powell were both detained.
According to the documents filed in this case and statements made in court:
From in or about August 2019 through on or about February 2, 2020, law enforcement observed Jerome Powell, Raheem Rogers, Karee Cunningham, Rafiq Holmes, and Matthew Collier working together to possess and distribute controlled substances on and around Bartholdi Avenue in Jersey City.
The conspiracy to distribute and possess with intent to distribute heroin and cocaine charge has a maximum sentence of 20 years in prison and a $1 million fine.
U.S. Attorney Carpenito credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Division; and members of the Jersey City Police Department, under the direction of Chief of Police Michael Kelly, with the investigation leading to the charges.
This investigation was part of the Jersey City 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 Jersey City.
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.
Illinois Man Admits Conspiring to Distribute Cocaine and HeroinRead the Press Release
NEWARK, N.J. – An Illinois man today admitted conspiring to distribute one kilogram or more of heroin and 500 grams or more of cocaine, U.S. Attorney Craig Carpenito announced.
Jesus Henoc Castaneda Soberanis, 25, of Chicago, Illinois, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 500 grams or more of cocaine.
According to documents filed in this case and statements made in court:
On June 6, 2019, Soberanis conspired with others to distribute narcotics, agreeing to pay a conspirator approximately $1,000 to drive Soberanis, together with approximately one kilogram of cocaine and approximately two kilograms of heroin, from Illinois to the East Coast. The investigation revealed that Soberanis would have distributed at least one of these kilograms of narcotics in New Jersey, were the narcotics not interdicted by law enforcement.
The count to which Soberanis pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for May 20, 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 arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
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.
Defense counsel: Genesis Peduto Esq., North Bergen, New Jersey
Monmouth County Man Admits to Gambling Conspiracy, Forfeits $80,000Read the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted his role in a conspiracy to operate a gambling enterprise, U.S. Attorney Craig Carpenito announced.
John Dougherty, 55, of Keyport, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to use facilities in interstate commerce to carry on a business enterprise involving gambling in violation of New Jersey law.
According to documents filed in this case and statements made in court:
From January 2011 to October 2017, Dougherty conspired with an unnamed New Jersey resident (“Individual 1”). Acting as Individual 1’s agent for their gambling business, Dougherty had his own group of bettors who, with Individual 1’s knowledge and assistance, were given access to a website to conduct sports betting with their own usernames and passwords.
Dougherty used money provided by Individual 1 to pay bets won by Dougherty’s bettors. Dougherty also collected money from his bettors for bets they lost and then met with Individual 1 in various locations in New Jersey to share that money.
Dougherty and Individual 1 agreed to use various facilities in interstate commerce to carry on their gambling business, including the internet, cellular telephones used for interstate calls and text messaging, and an overnight delivery service. At various times, Individual 1 changed the cell phone number that he used to communicate with Dougherty and referred to himself in text messages by a code name. After being informed by Dougherty about an expected delivery of “35K” from one of Dougherty’s bettors, Individual 1 sent Dougherty a text message, “Let me know when the eagle has landed.” Later that same day, Dougherty sent Individual 1 a text message with a photograph of the UPS Express Box containing a substantial amount of cash sent by his bettor and with the note, “Eagle has landed. Gonna count now.”The charge of conspiring to use facilities in interstate commerce to carry on a gambling business in violation of local state law carries a maximum potential penalty of five years in prison and a $250,000 fine. Dougherty forfeited $80,000 to the United States. Sentencing is scheduled for May 6, 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 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 J Imbert of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Keith G. Oliver Esq., Middletown, New Jersey
Irvington Fire Academy Trainee Arrested for Manufacturing Illegal PillsRead the Press Release
NEWARK, N.J. – Two Irvington, New Jersey, men, one of whom is currently attending the Irvington Fire Academy in order to become a firefighter, have been charged for operating a “mill” for the manufacture of illegal narcotic pills in an Irvington residence, U.S. Attorney Craig Carpenito announced.
Elijah Lee, 27, who was in training to become a firefighter with the Irvington Fire Department, and Immanuel Majerska, 37, were arrested Jan. 30, 2020, and charged with conspiring to distribute methylenedioxymethamphetamine, commonly referred to as “ecstasy,” or “MDMA.” The two defendants made their initial appearance today before U.S. Magistrate Judge Joseph A. Dickson. Lee was released on bail and Majerska was detained.
According to documents filed in this case and statements made in court:
The defendants allegedly manufactured MDMA pills in the basement of Lee’s residence. Law enforcement officers recovered two “presses” capable of producing pills from raw ingredients, multiple kilograms of bulk suspected MDMA powder, and numerous pills of suspected MDMA. Law enforcement officers also recovered a loaded firearm at Lee’s residence in a dresser in Majerska’s room. Majerska was in possession of approximately 1,000 suspected MDMA pills.
The conspiracy charge carries a maximum penalty of twenty years in prison and a $1 million fine.
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 Craig Carpenito credited special agents of the U.S. Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge James Buthorn; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New York, under the direction of Peter C. Fitzhugh, with the investigation leading to today’s charges. He also thanked the Essex County Sheriff’s Department the Irvington and Union police departments for their assistance.
The government is represented by Assistant U.S. Attorney Andrew Macurdy and Special Assistant U.S. Attorney Keith Travers of the U.S. Attorney’s Office ODETF Unit in Newark.
Union County Man Charged with Offering Bribes to A Postal Service Employee and Receiving Stolen MailRead the Press Release
NEWARK, N.J. – A Union County man was arrested today for bribing a U.S. Postal Service (USPS) employee to steal check books, credit cards, and electronics from the mail, U.S. Attorney Craig Carpenito announced.
Jabre Beauvoir, 21, of Elizabeth, New Jersey, is charged by complaint with one count of bribery and one count of receiving stolen mail. He 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:
Between May 2019 and September 2019, Beauvoir offered bribes to USPS employees to steal envelopes and packages containing check books, credit cards, and electronics, such as Apple iPhones. Text messages showed Beauvoir instructing a USPS employees to look for certain types of mailings containing material to be stolen.
The bribery charge is punishable by a maximum potential penalty of 15 years in prison. The receipt of stolen mail charge is punishable by a maximum potential penalty of five years in prison. Both charges are additionally punishable by a maximum $250,000 fine.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents with the USPS-Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to today’s arrest. He also thanked the U.S. Secret Service, New Jersey State Police, the Elizabeth Police Department, and the Secaucus Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Owner of Wildwood Crest Pizza Restaurant Admits Filing False Income Tax ReturnsRead the Press Release
CAMDEN, N.J. – The owner of a Wildwood Crest, New Jersey, pizzeria today admitted five counts of filing a false income tax return, U.S. Attorney Craig Carpenito announced.
Giuseppe D’Arancio, 60, of Cape May Court House, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with five counts of filing a false income tax return for tax years 2012 through 2016.
According to the documents filed in this case and statements made in court:
D’Arancio and another individual owned and operated a pizzeria and kept two sets of accounting books. For tax years 2012 through 2016, D’Arancio knowingly filed false tax returns which underreported the pizzeria’s taxable income by approximately $1.2 million. As a result, D’Arancio failed to pay more than $425,000 in income taxes.
Each of the five counts of filing a false tax return carries a maximum potential penalty of three years in prison, and a fine of the greater of $100,000, twice the gross profits to D’Arancio or twice the gross losses to the victim of his offense. Sentencing is scheduled for May 4, 2020.
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 Diana Vondra Carrig of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Jerome A. Ballarotto Esq., Trenton
Indiana Man Charged with Attempted Online Enticement of Child to Engage in Criminal Sexual ConductRead the Press Release
NEWARK, N.J. – A Lebanon, Indiana, man was indicted today for attempting to coerce an individual he thought was a 14-year old boy into engaging in sexual activity, U.S. Attorney Craig Carpenito announced.
Randal Wise, 43, is charged by indictment with one count of attempted online enticement of a minor to engage in criminal sexual conduct.
According to documents filed in this case and statements made in court:
On Oct. 25, 2019, Wise sent messages via an online dating application to an individual who told Wise that he was a 14-year-old boy in the eighth grade. Unbeknownst to Wise, the individual was an undercover agent (UC) posing as a minor victim. Wise engaged in sexual conversations with the UC and sent photographs of his genitals to the UC. Wise also asked the UC to send nude photographs and invited the UC to his hotel room. The following day, Wise again contacted the UC via the dating application and made arrangements to meet in person at a residence in Somerset, New Jersey. When Wise arrived at the house, he was arrested by law enforcement agents.
The attempted online enticement of a minor charge carries a mandatory minimum prison sentence of 10 years, a maximum potential penalty of life in prison, and a $250,000 fine.
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 Somerset County Prosecutor’s Office, under the direction of Prosecutor Michael Robertson, for its assistance.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Patricia Astorga of the U.S. Attorney’s Office’s Criminal Division.
Camden County Man Admits Role in Camden Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A member of a Camden drug-trafficking organization pleaded guilty today to distributing significant amounts of illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.
Carlos Perez, 46, of Pennsauken, New Jersey, admitted his role in a drug trafficking conspiracy that was based on the 500 block of Pine Street in Camden; he pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute heroin, crack cocaine, fentanyl and powder cocaine.
Twelve 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, and David Velez – previously have pleaded guilty in this case. The charges against six 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 Perez pleaded guilty carries a mandatory penalty of 10 years in prison, a maximum potential penalty of a life in prison, and a $10 million fine. His sentencing is scheduled for May 4, 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 Special Agent in Charge Michael T. Harpster 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 six defendants whose charges remain pending, the charges and allegations are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel: Teri Lodge Esq., Marlton, New Jersey
Three Men Admit Roles in Passaic County Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – Three New Jersey men today admitted their roles in a Passaic County cocaine distribution conspiracy, U.S. Attorney Craig Carpenito announced.
Narcisco Ramirez, 46, of Passaic, Kiuny Perez, 42, of Rockaway Township, and Victor Pimentel, 44, of Parsippany, each pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to separate criminal informations charging them with conspiracy to distribute cocaine.
According to documents filed in the case and statements made in court:
The defendants were part of a conspiracy to distribute large quantities of cocaine in and around Passaic County. In November 2017, law enforcement officers observed Ramirez and Perez meet at a location in Passaic and exchange a package containing cocaine. Later that day, officers stopped Ramirez’s car and found one kilogram of cocaine on the front seat and two additional kilograms on his right leg and waist band. A search of Ramirez’s residence revealed another two kilograms of cocaine and $89,000 in cash. Law enforcement officers also stopped Perez’s vehicle and found cocaine in a hidden compartment underneath the dashboard. Law enforcement officers also discovered $297,350 in cash in Perez’s residence. A search of Pimentel’s residence revealed over 20 kilograms of cocaine, drug paraphernalia, and $322,000 in cash.
The drug conspiracy charge to which the defendants pleaded guilty carries a minimum of 10 years in prison and a maximum potential penalty of life in prison. Sentencing for Ramirez is scheduled for June 17, 2020; for Pimentel, July 22, 2020; and for Perez, June 16, 2020.
U.S. Attorney Carpenito credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson, and the Passaic County Prosecutor’s Office under the direction of Passaic County Prosecutor Camelia M. Valdes, with the investigation leading to today’s guilty pleas. He also thanked the Clifton Police Department for their assistance with the investigation.The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Perez: Anthony J. Iacullo Esq., Nutley, New Jersey
Pimentel: Lee Ginsberg Esq., New York
Ramirez: Lorraine Gauli-Rufo Esq., Verona, New JerseyGloucester County Man Admits Using Fraudulent Invoices to Steal from Hospitals, Clinics and Doctors’ Offices Across U.S.Read the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man today admitted mailing thousands of fraudulent invoices to hospitals, clinics and doctor’s offices throughout the United States, U.S. Attorney Craig Carpenito announced.
Robert S. Armstrong, 49, of Turnersville, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of mail fraud.
According to documents filed in this case and statements made in court:
Operating under the name of Pinnacle Medical Supplies, Armstrong prepared and caused to be prepared fraudulent invoices billing hospitals, clinics and doctors’ offices across the United States for medical supplies such as diabetic test strips, EpiPens® and sanitizing wipes that the medical providers never ordered or received. In addition to billing for medical supplies never ordered or received, the invoices included fraudulent shipping information and a fraudulent address.
Armstrong then contracted with a legitimate bulk mailing company to mail more than 10,000 invoices to medical providers across the United States. Each invoice included a payment envelope preaddressed to Pinnacle Medical Supply at mail boxes Armstrong had set up with commercial mail receiving agents in Florida and Texas.
In response to the phony invoices, at least 943 medical providers sent $214,495 to Pinnacle Medical Supply. Armstrong deposited many of the checks from the victim medical providers into a bank account he opened in the name of Pinnacle Medical Supply.
The count of mail 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 Armstrong or twice the gross losses to the victims of his offense. In his plea agreement, Armstrong agreed to make full restitution to the victims.
This is Armstrong’s second mail fraud scheme. On Nov. 19, 2015, Armstrong was sentenced to 57 months in prison for committing a similar mail fraud scheme in the name of his company, Scholastic Book Supply. Armstrong caused the mailing of thousands of fraudulent invoices to schools throughout the United States billing them for books that the schools did not order or receive. Armstrong, who committed the present Pinnacle Medical Supply offense while on supervised release for the Scholastic Book Supply fraud, also pleaded guilty to three violations of his supervised release, for which he faces an additional 24 months in prison. Sentencing is scheduled for May 7, 2020.
U.S. Attorney Carpenito credited law enforcement officers of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker in Philadelphia, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
Defense counsel: Richard Coughlin Esq., Assistant Federal Public Defender, Camden
Doctor and Co-Defendant Admit Roles in Health Care Fraud SchemeRead the Press Release
TRENTON, N.J. – A doctor with offices in Washington, Hackettstown, and Succasunna, New Jersey, and his co-defendant today admitted their roles in a health care conspiracy to bill Medicare and private health insurance companies for medical services fraudulently claimed to have been provided by a licensed medical doctor, U.S. Attorney Craig Carpenito announced.
Parminderjeet S. Sandhu, 66, of Long Valley, New Jersey, and Paramjit Singh, 62, of Ohio, each pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to informations charging them with conspiracy to commit health care fraud.
“Dr. Sandhu defrauded Medicare and private insurers – and, worse, put his patients at risk – by allowing those patients to be treated by Singh, a man who had lost his medical license,” U.S. Attorney Carpenito said. “Our office continues to work tirelessly to protect the integrity of federal healthcare programs and to make sure that patients do not suffer unnecessary harm from unscrupulous healthcare providers like these two defendants.”
“It's frightening to think that your doctor could be putting your health in the hands of someone who is practicing without a license,” FBI Newark Special Agent in Charge Gregory W. Ehrie said. “Dr. Sandhu put his patients at risk while defrauding them as well as their insurers. The FBI remains committed to investing its resources to combat these types of schemes because patients have every right to expect that the care they are receiving is from a qualified medical professional who is acting in the patient's best interest. We urge anyone who is aware of healthcare fraud to contact us.”
According to documents filed in this case and statements made in court:
From August 2014 through October 2017, Sandhu and Singh caused $2,211,975 to be billed to Medicare and private health insurance companies for medical services claimed to have been provided by Sandhu at Sandhu’s medical practice, Medical Care Associates Urgent Care Inc. In reality, those services were actually performed by Singh, whom Sandhu had hired to treat patients, despite knowing that Singh had lost his license to practice medicine anywhere in the United States. Sandhu issued prescriptions – including prescriptions for opioids – in Sandhu’s name for patients seen by Singh, even though Sandhu never met with the patients himself. As a result of the conspiracy, Sandhu’s medical practice was paid $1,162,253 for treatment fraudulently provided by Singh.
Under terms of the plea agreement, if the court accepts the plea, each defendant will be sentenced to 18 months in prison. In addition, Sandhu and Singh have each agreed to pay $1,162,253 in restitution. Sandhu has agreed to forfeiture of $829,561 and Singh has agreed to forfeiture of $332,692. Sentencing is scheduled for April 28, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie; the Warren County Prosecutor's Office, under the direction of Prosecutor James L. Pfeiffer; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the Hackettstown, Roxbury and Washington Township police departments with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Joseph N. Minish of the U.S. Attorney’s Office’s Asset Recovery and Money Laundering Unit.
Burlington County Man Sentenced to 126 Months in Prison for Impersonating Federal AgentRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 126 months in prison for impersonating a federal agent while selling counterfeit coins and unlawfully importing counterfeit coins and bars into the United States, U.S. Attorney Craig Carpenito announced.
Jonathan A. Kirschner, a/k/a “Jonathan Kratcher,” 35, of Moorestown, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of falsely impersonating an agent of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and one count of unlawfully bringing counterfeit coins and bars into the United States. Judge Kugler imposed the sentence today in Camden federal court. Kirschner has been detained since September 2018 after violating his conditions of pretrial release.
According to documents filed in this case and statements made in court:
Kirschner admitted that on May 9, 2017, he sold fake gold bars to a coin collector (Victim 1) for $11,000 in cash. Kirschner wore an ATF badge on a chain around his neck and claimed to be an ATF agent in written correspondence with Victim 1 and when they met in person. Kirschner also admitted that he sold 49 counterfeit Morgan dollar coins to two people (Victims 2 and 3) in Mt. Laurel, New Jersey, on June 4, 2017.
Kirschner told Victims 2 and 3, “I have my badge on,” when providing descriptive information so that Victims 2 and 3 could recognize Kirschner. He admitted that he pretended to be an ATF agent to put his victims at ease in purchasing what Kirschner claimed were gold coins and bars when, in reality, the coins and bars were fake. Kirschner admitted unlawfully bringing counterfeit coins and bars into the United States by importing multiple, falsely manifested packages from other countries, including China.
Judge Kugler also sentenced Kirschner to three years of supervised release, ordered him to pay restitution of $14,600, and ordered forfeiture of all of the counterfeit items.
U.S. Attorney Carpenito credited ATF special agents, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), Cherry Hill Office, under the direction of Special Agent in Charge Brian A. Michael, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: Edward J. Crisonino Esq., Westmont, New Jersey
Bergen and Burlington County, New Jersey, Religious Leaders Sentenced to Federal Prison for Conspiracy to Evade Taxes on Millions of Dollars in Income from ChurchRead the Press Release
NEWARK, N.J. – The leader and the main treasurer of the Israelite Church of God in Jesus Christ were sentenced to federal prison today for their respective roles in a scheme in which both men caused the church to pay millions of dollars in personal expenses for the leader that the leader then omitted from his personal tax returns, U.S Attorney Craig Carpenito announced.
Jermaine Grant, 44, of Burlington Township, New Jersey, was sentenced to 18 months in prison and Lincoln Warrington, 49, of Bergen County, New Jersey, was sentenced to 12 months and one day in prison. Both men previously pleaded guilty before U.S. District Court Judge William J. Martini to Count One of the indictment against them, charging them with conspiring to defraud the United States. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Grant and Warrington used their leadership positions in the church to divert to Grant millions of dollars belonging to the church and its members for Grant’s personal use and benefit. The defendants used a variety of methods to carry out the scheme. For example, Grant and Warrington created a purported entertainment company that portrayed Grant as an industry mogul whose wealth was derived from his success in the industry, thereby concealing from church members that his lifestyle was supported entirely by the church and donations from its members. Grant and Warrington also used the church’s money to pay Grant’s other personal expenses, including payments for rental real estate properties, vacations, high-end luxury items, and private school tuition for Grant’s minor children. Grant, with Warrington’s assistance, then omitted these benefits from his individual income tax returns, resulting in the evasion of a substantial amount of tax due and owing to the United States. In total, Grant and Warrington concealed millions of dollars in income from the IRS, and failed to pay at least $250,000 in taxes.
The plea agreements in this matter include a requirement that the church will develop and present to the United States a plan designed to ensure the church’s compliance with applicable federal income tax laws going forward. Before the United States returns to the church certain cash and property seized during execution of the search warrants in this case, the compliance plan must address the disposition of that cash and property and ensure that they are returned for the benefit of the church rather than for the personal benefit of Jermaine Grant or any other individual.
In addition to the prison term, Judge Martini sentenced Grant and Warrington to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division, under the direction of Special Agent in Charge Gregory W. Ehrie, and IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Margaret A. Mahoney, Senior Trial Counsel for the National Security Unit in Newark, and First Assistant U.S. Attorney Rachael A. Honig.
Defense counsel:
Grant: Gerald Lefcourt Esq., New York
Warrington: Richard Levitt Esq., New YorkFormer Executive Admits Embezzling More Than $48 MillionRead the Press Release
NEWARK, N.J. – A former executive at a New Jersey publication company pleaded guilty today to defrauding the company by embezzling millions of dollars for his personal benefit, U.S. Attorney Craig Carpenito announced.
Nestor Charriez, 60, of Scotch Plains, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of wire fraud.According to documents filed in this case and statements made in court:
Charriez was a longtime senior employee of Victim-Company 1, a publication company based in New Jersey. Charriez’s financial responsibilities at Victim-Company 1 included overseeing and managing employee payroll. He would submit Victim-Company 1’s payroll information to an outside payroll company, which would process Victim-Company 1’s payroll requests.
From at least 2002 through June 2019, Charriez defrauded Victim-Company 1 by embezzling millions of dollars through unauthorized “bonus” payments to himself. He submitted false payroll instructions to Victim-Company 1’s outside payroll provider, indicating that Charriez was entitled to massive bonuses – hundreds of thousands of dollars at a time – which Victim-Company-1 had not approved.
Charriez carried out this scheme on numerous occasions over nearly two decades. In total, Charriez stole more than $48 million from Victim-Company 1 and spent the money he stole on personal expenses.
The wire fraud count to which Charriez pleaded guilty 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 May 11, 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 guilty plea.
The government is represented by Assistant U.S. Attorney Heather Suchorsky of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Robert Stahl Esq., Westfield, New Jersey
Camden County Man Sentenced to 37 Months in Prison for Role in Conspiracy to Distribute OxycodoneRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 37 months in prison for his role in conspiring to distribute oxycodone, U.S. Attorney Craig Carpenito announced.
Daniel Watson, 41, of Bellmawr, New Jersey, previously pleaded guilty to an information charging him with one count of conspiracy to distribute and possess with intent to distribute oxycodone. U.S. District Judge Robert B. Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:From December 2017 through June 26, 2018, Watson and others engaged in a conspiracy which resulted in the trafficking of 1,180 oxycodone pills – 680 of which were unadulterated oxycodone and 500 of which were pressed pills mixed with hydrocodone, codeine, and methylphenidate. As part of the investigation, law enforcement observed Watson’s participation in eight controlled purchases. Three of these controlled transactions were carried out by the defendants in front of the major Philadelphia hospital where co-defendant Anthony Pepe was employed as the chief surgical technologist and while he was dressed in his hospital scrubs. Pepe was sentenced Nov. 20, 2019, to 30 months in prison.
In addition to the prison term, Judge Kugler sentenced Watson to three years of supervised release.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Supplier to Drug Trafficking Organization and Two of Its Members Admit Roles in Heroin Distribution ConspiracyRead the Press Release
TRENTON, N.J. – A Pennsylvania man and two Mercer County, New Jersey, men today admitted their roles distributing heroin in and around Trenton, U.S. Attorney Craig Carpenito announced.
Duane Paulino-Escalera, 27, of Philadelphia, and Izae Alford, 21, of Trenton, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to separate informations charging each of them with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Darryl Young, 27, of Trenton, pleaded guilty before Judge Shipp to an information charging him with one count of conspiracy to distribute and possess with intent to distribute a quantity of heroin.
In June 2019, Paulino-Escalera, Alford, Young, and eight others were charged by complaint with conspiracy to distribute heroin. Paulino-Escalera, Alford and Young are the first three defendants to plead guilty.
According to documents filed in this case and statements made in court:
From June 2018 through May 2019, the defendants and others engaged in a heroin trafficking conspiracy in the areas of Stuyvesant, Hoffman and Highland avenues in Trenton, as well as in the area of Barbary Road in Philadelphia.
Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Robert M. Gbanapolor obtained regular supplies of “bricks” of heroin (approximately 50 smaller, individually packaged glassine envelopes or baggies containing heroin) from Paulino-Escalera, whom Gbanapolor referred to as “Papi.”
Members of the conspiracy distributed the heroin supplied by Paulino-Escalera to other conspirators, distributors, sub-dealers, and end users in and around Trenton. Law enforcement officers intercepted numerous discussions among the conspirators regarding issues such as heroin quality and availability, branding, quantity and customer satisfaction.
The heroin conspiracy counts to which Paulino-Escalera and Alford pleaded guilty each carry a statutory mandatory minimum term of five years in prison, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. The heroin conspiracy count to which Young pleaded guilty carries a maximum potential penalty of 20 years in prison, and a maximum fine of $1 million. Sentencings for Paulino-Escalera and Alford are scheduled for May 4, 2020; sentencing for Young is scheduled for May 6, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, Camden Resident Office, under the direction of Special Agent in Charge Susan A. Gibson; and task force officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley, with the investigation leading to today’s guilty pleas. He also thanked detectives and officers of the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Charles A. Fiore; detectives and officers of the Gloucester Township Police Department, under the direction of Chief Harry Earle; members of the N.J. State Police, under the direction of Col. Patrick J. Callahan; detectives and officers of the Bordentown Township Police Department, under the direction of Chief Brian Pesce; and special agents of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson 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 Eric A. Boden and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining eight defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Ocean County, New Jersey Attorney Sentenced to One Year and One Day in Prison for Failing to Pay over Payroll Taxes and Making False Statements on Loan ApplicationRead the Press Release
George Gilmore, a partner at an Ocean County, New Jersey, law firm, was sentenced today to one year and one day in prison for his conviction on two counts of failing to pay over payroll taxes withheld from employees to the IRS and one count of making false statements on a bank loan application submitted to Ocean First Bank N.A.
On April 17, 2019, Gilmore, 70, of Toms River, New Jersey, was acquitted of two counts of filing false tax returns for calendar years 2013 and 2014; the jury could not reach a unanimous verdict on one count of income tax evasion for calendar years 2013, 2014, and 2015. The verdicts were returned following a trial that began April 1, 2019, before U.S. District Judge Anne E. Thompson, who imposed the sentence today in Trenton federal court.
According to documents filed in this case and the evidence at trial:
Gilmore worked as an equity partner and shareholder at Gilmore & Monahan P.A., a law firm in Toms River, where he exercised primary control over the firm’s financial affairs. Because he exercised significant control over the law firm’s financial affairs, Gilmore was responsible for withholding payroll taxes from the gross salary and wages of the law firm’s employees to cover individual income, Social Security and Medicare tax obligations. For the tax quarters ending March 31, 2016, and June 30, 2016, the law firm withheld tax payments from its employees’ checks, but Gilmore failed to pay over in full the payroll taxes due to the IRS.
Gilmore also submitted a loan application to Ocean First Bank containing false statements. On Nov. 21, 2014, Gilmore reviewed, signed, and submitted to Ocean First Bank a Uniform Residential Loan Application (URLA) to obtain refinancing of a mortgage loan for $1.5 million with a “cash out” provision that provided Gilmore would obtain cash from the loan. On Jan. 22, 2015, Gilmore submitted another URLA updating the initial application. Gilmore failed to disclose his outstanding 2013 tax liabilities and personal loans that he had obtained from others on the URLAs. Gilmore received $572,000 from the cash out portion of the loan.
In addition to the prison term, Judge Thompson sentenced Gilmore to three years of supervised release.
First Assistant U.S. Attorney Honig for the District of New Jersey and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, special agents with the U.S. Attorney’s Office under the direction of Supervisory Special Agent Thomas Mahoney, and special agents of the FBI Red Bank Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.
The government is represented by Deputy U.S. Attorney Matthew J. Skahill; Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division; and Trial Attorney Thomas F. Koelbl of the U.S. Department of Justice - Tax Division.
Ocean County Attorney Sentenced to One Year and One Day in Prison for Failing to Pay over Payroll Taxes and Making False Statements on Loan ApplicationRead the Press Release
TRENTON, N.J. – George Gilmore, a partner at an Ocean County law firm, was sentenced today to one year and one day in prison for his conviction on two counts of failing to pay over payroll taxes withheld from employees to the IRS and one count of making false statements on a bank loan application submitted to Ocean First Bank N.A., First Assistant U.S. Attorney Rachael A. Honig announced.
On April 17, 2019, Gilmore, 70, of Toms River, New Jersey, was acquitted of two counts of filing false tax returns for calendar years 2013 and 2014; the jury could not reach a unanimous verdict on one count of income tax evasion for calendar years 2013, 2014, and 2015. The verdicts were returned following a trial that began April 1, 2019, before U.S. District Judge Anne E. Thompson, who imposed the sentence today in Trenton federal court.
According to documents filed in this case and the evidence at trial:
Gilmore worked as an equity partner and shareholder at Gilmore & Monahan P.A., a law firm in Toms River, where he exercised primary control over the firm’s financial affairs. Because he exercised significant control over the law firm’s financial affairs, Gilmore was responsible for withholding payroll taxes from the gross salary and wages of the law firm’s employees to cover individual income, Social Security and Medicare tax obligations. For the tax quarters ending March 31, 2016, and June 30, 2016, the law firm withheld tax payments from its employees’ checks, but Gilmore failed to pay over in full the payroll taxes due to the IRS.
Gilmore also submitted a loan application to Ocean First Bank containing false statements. On Nov. 21, 2014, Gilmore reviewed, signed, and submitted to Ocean First Bank a Uniform Residential Loan Application (URLA) to obtain refinancing of a mortgage loan for $1.5 million with a “cash out” provision that provided Gilmore would obtain cash from the loan. On Jan. 22, 2015, Gilmore submitted another URLA updating the initial application. Gilmore failed to disclose his outstanding 2013 tax liabilities and personal loans that he had obtained from others on the URLAs. Gilmore received $572,000 from the cash out portion of the loan.
In addition to the prison term, Judge Thompson sentenced Gilmore to three years of supervised release.
First Assistant U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, special agents with U.S. Attorney’s Office under the direction of Supervisory Special Agent Thomas Mahoney, and special agents of the FBI Red Bank Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.
The government is represented by Deputy U.S. Attorney Matthew J. Skahill; Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division; and Trial Attorney Thomas F. Koelbl of the U.S. Department of Justice - Tax Division.
Defense counsel: Kevin H. Marino Esq., Chatham, New Jersey
Mercer County Man Arraigned on Charge of Illegal Possession of WeaponRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was arraigned today on an indictment charging him with unlawful possession of a firearm, U.S. Attorney Craig Carpenito announced.
Omar Kennedy, 38, of Trenton, is charged by indictment with one count of being a felon in possession of a firearm. He was arraigned today before U.S. District Judge Anne E. Thompson in Trenton federal court and pleaded not guilty. He remains detained.
According to the indictment, returned Jan. 15, 2020:
On May 23, 2019, Kennedy possessed a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
The charge of possessing a firearm while being a convicted felon 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 NCIS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Michelle S. Gasparian of the U.S. Attorney’s Office Criminal Division in Trenton.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Andrea Bergman Esq., Assistant Federal Public Defender, Trenton
Bronx, New York, Man Admits Role in Conspiracy to Distribute Heroin and Fentanyl from A 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.
Jose Antonio Vasquez Pena, a/k/a “Tono,” 47, 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, and Francisco Mercedes Gil, 31, also of the Bronx, New York, pleaded guilty before Judge Salas to the same charges in September 2019.
Three other individuals – Jhan Carlos Capellan Maldonado, 31, Daury Contreras Ulerio, 34, and Reimon Genao Rosario, 23 – were indicted on the same charge as Pena 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 is scheduled for April 27, 2020.
U.S. Attorney Craig Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations (HSI)’s New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the charges.
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 are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: Peter Carter Esq., Assistant Federal Public Defender, Newark
Two People Indicted for $30 Million Dollar Fraud Scheme Involving Blockchain Technology CompanyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman and a Canadian man were indicted today for their roles in a securities fraud scheme that induced victims to invest $30 million worth of cash and cryptocurrency based on fraudulent misrepresentations, U.S. Attorney Craig Carpenito announced.
Edith Pardo, 68, of Bloomfield, New Jersey, and Boaz Manor, 46, of Toronto, Canada, are each charged with one count of conspiring to commit wire fraud, three counts of wire fraud, and one count of securities fraud in connection with a blockchain technology company. Pardo was arrested today by special agents of the FBI and is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. Manor remains at large.
According to the indictment:
In 2003, Manor co-founded and managed a hedge fund based in Toronto, Canada. In connection with his work at that hedge fund, Manor pleaded guilty in Canada to one count of transferring monies in breach of trust and one count of disobeying a court order. He was sentenced to four years in prison.
Following his release from prison, Manor founded a business, CG Blockchain Inc., and began creating a product called ComplianceGuard, which was purportedly designed provide hedge funds with a blockchain-based auditing tool. While raising money for CG Blockchain, Manor hid his true identity and criminal past from investors and others by using a variety of aliases, including “Shaun MacDonald.” He also changed his appearance by darkening his hair and growing a beard.
Manor secured a significant portion, if not all, of the initial seed money in CG Blockchain from a close family member. In order to conceal the source of this money, Manor recruited Pardo to act as a conduit for the money. The defendants misrepresented to potential CG Blockchain investors that Pardo was an independently wealthy investor who provided millions of dollars in seed money to CG Blockchain.
The defendants also misrepresented that 20 hedge funds were using ComplianceGuard and were each paying CG Blockchain a $1 million yearly fee. In reality, none of the 20 hedge funds paid fees to CG Blockchain, and many of the hedge funds did not receive or use ComplianceGuard at all.
In 2017, CG Blockchain launched an “Initial Coin Offering” (ICO), and began marketing its new product – “Blockchain Terminal” – to potential investors. CG Blockchain described Blockchain Terminal as a computer terminal that allowed hedge funds and financial institutions to trade and manage cryptocurrency. Manor actively marketed the token to investors, while failing to disclose his true identity or his role at CG Blockchain. The defendants also misrepresented to ICO investors that the Blockchain Terminal had “Actual Clients” and was “installed at 20 hedge funds.”
In 2018, CG Blockchain publicly announced that it had raised $30 million from its ICO. Following the ICO, CG Blockchain investors learned of Manor’s true identity and criminal past. When confronted by an investor, Manor admitted that he had hidden his real identity and criminal past because disclosure of that information would have resulted in “the company being destroyed.”
The conspiracy and wire fraud counts in the indictment 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 securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Manor and Pardo today based on the same conduct.
U.S. Attorney Craig 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 charges. He also thanked the SEC for the assistance provided by its Enforcement Division.
The government is represented by Assistant U.S. Attorneys Vijay Dewan and Catherine R. Murphy of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
North Carolina Man Charged for Bringing Weapons, Including Machine Gun, into Federal FacilityRead the Press Release
CAMDEN, N.J. – A North Carolina man was arrested today on charges that he brought a loaded handgun and machine gun into a federal facility, and illegally transported the machine gun into New Jersey, U.S. Attorney Craig Carpenito announced.
Dustin Peters, 25, a former Marine, was arrested in Cape May County, New Jersey, and is charged by complaint with one count of unlawful possession of a firearm in a federal facility and one count of unlawful interstate transport of a machine gun. Peters is scheduled to have an initial appearance on Jan. 21, 2020, before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to documents filed in this case:
On Jan. 9, 2020, Peters attempted to enter the U.S. Coast Guard Training Center Cape May. During a routine security search of his vehicle, Coast Guard personnel recovered a modified, fully automatic AK-47 rifle, a loaded 9mm Century Arms handgun, multiple large capacity magazines, ammunition, a ballistic vest, gas mask and canister, three boxes of ammunition, a nylon chest rig, and other items. Peters told law enforcement agents that he purchased the AK-47 in Virginia, but modified it on his own to become fully automatic.
The counts of possession of a firearm on a federal facility carries a maximum penalty of one year in prison and a $100,000 fine. The unlawful interstate transport of a machine gun carries a maximum penalty of five years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, Atlantic City Resident Agency’s Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; members of the U.S. Coast Guard Investigative Service, under the direction of Resident Agent in Charge Rodney E. Newcomer; the Cape May Police Department under the direction of Chief Anthony G. Marino Jr.; and the Cape May County Prosecutor’s Office, under the direction of Prosecutor Jeffrey H. Sutherland, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Alisa Shver of the U.S. Attorney’s Office Criminal Division in Camden.
This case is part of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see http://www.justice.gov/projectguardian
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Georgia Man Admits Engaging in Distributed Denial of Service Attacks Against CompanyRead the Press Release
NEWARK, N.J. – A Georgia man today admitted his role in initiating a cyberattack known as a Distributed Denial of Service (DDoS) against a company that maintained servers in New Jersey, U.S. Attorney Craig Carpenito announced.
Tucker Preston, 22, of Macon, Georgia, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of damaging protected computers by transmission of a program, code or command.
According to documents filed in this case and statements made in court:
DDoS is a type of cyberattack that purposefully directs such a large volume of superfluous traffic to a victim’s web server or other computer system that it can slow or shut down service. In or around December 2015, Preston arranged for an entity that engages in DDoS attacks to initiate attacks against a company. The entity directed DDoS attacks against the victim company, causing damage and disrupting the victim’s business.
The count to which Preston pleaded guilty is punishable by a maximum penalty of 10 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for May 7, 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 guilty plea.
The government is represented by Assistant U.S. Attorney David E. Malagold of the U.S. Attorney’s Office Criminal Division.
Defense counsel: Ijeoma Eke Esq., Assistant Federal Public Defender, Newark
Dominican Man Sentenced to 34 Months in Prison for Conspiracy to Distribute over 100 Grams of HeroinRead the Press Release
NEWARK, N.J. – A Dominican man was sentenced today to 34 months in prison for his role in a conspiracy to transport more than 100 grams of heroin from New York to New Jersey, U.S. Attorney Craig Carpenito announced.
Bienvenido Perez Lazala, 31, of the Dominican Republic, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conspiracy to possess with intent to distribute more than 100 grams of heroin.
According to documents filed in this case and statements made in court:
In January 2018, a Mexican narcotics trafficker provided another individual with Lazala’s name and identified Lazala as someone who could assist in establishing narcotics sales in New Jersey. Lazala was contacted and agreed to obtain heroin to sell in New Jersey.
On Feb. 5, 2018, following a series of intercepted calls, Lazala obtained 955.9 grams of heroin in Haverstraw, New York, for purposes of transporting it back to New Jersey. Lazala then sold the heroin to another individual, who, unbeknownst to Lazala, was a law enforcement officer.
In addition to the prison term, Judge Martinotti sentenced Lazala to two years of supervised release.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ari Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit.
Camden County Man Admits Sending Obscene Images to MinorsRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man today admitted sending obscene material to minors over the internet, U.S. Attorney Craig Carpenito announced.
Zackary McFerren, 28, of Winslow Township, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with two counts of transferring obscene matter to minors, as well to violating the terms of his supervised release by contacting those minors.
According to documents filed in this case and statements made in court:
McFerren admitted that he previously pleaded guilty to possessing child pornography and transferring obscene material to a minor and was sentenced Oct. 17, 2016, to 33 months in prison, to be followed by five years of supervised release, which started May 3, 2019.
McFerren acknowledged that the terms of his supervised release included not committing another federal crime; required him to submit to computer monitoring by the U.S. Probation Office and restricted his contact with minors.
McFerren admitted that starting on July 15, 2019, he used a mobile phone to communicate with an individual he believed to be a 13-year old girl living in New York. Unbeknownst to McFerren, he was actually communicating with an undercover FBI employee. McFerren admitted that he had expressed an interest in having sex with the 13-year old girl and sent her obscene images of himself. McFerren acknowledged that his communicating with the person he believed to be a minor and sending the obscene photos was a violation of the terms of his supervised release.
McFerren also admitted to conduct from August 2015. McFerren admitted to using the “Kik” messaging application to communicate with other Kik users over the Internet. While using the Kik application, McFerren used the screen name “Emily” and begin communicating with an underage girl in the Eaton Rapids, Michigan, area. He exchanged obscene images with the girl.
The charges to which McFerren pleaded guilty each carry a maximum potential penalty of 10 years in prison per count and a fine of $250,000. McFerren faces up to an additional four years for violating the term of supervised release from his previous conviction. Sentencing is scheduled for April 22, 2020.
U.S. Attorney Carpenito credited special agents and task force officers of the FBI, Newark Division’s Atlantic City Resident Agency, Child Exploitation Task Force, which is made up of FBI special agents and detectives from the Atlantic County Prosecutor’s Office, Atlantic County Sheriff’s Office, the New Jersey State Police, and the N.J. Department of Human Services Police, under the direction of FBI Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s guilty plea. He also thanked FBI special agents and task force officers in the FBI Buffalo Division and officers and detective with the Eaton Rapids, Michigan, Police Department for their work on this investigation.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
Pharmacist Admits Role in Multimillion-Dollar Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted participating in a conspiracy to commit health care fraud, U.S. Attorney Craig Carpenito announced.
Estela Blaustein, 55, of Mahwah, New Jersey, pleaded guilty today before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging her with one count of conspiracy to commit health care fraud with four individuals who have been previously charged by 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; Marlene Vangelas, 58, of River Vale, New Jersey; and Zachary Ohebshalom, 33, of Edgewater, New Jersey. The charges against those four defendants remain pending.
According to documents filed in this case and statements made in court:
Beginning in November 2016, Blaustein participated in 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. Filippone treated hundreds of now-former U.S. Postal Service employees for injuries they purportedly suffered on the job. He allegedly facilitated their disability claims by submitting forms and medical reports to the Department of Labor, Office of Workers’ Compensation Program, for patients who were not, in fact, disabled.
Filippone also prescribed expensive topical pain creams, which were not needed or wanted by many of his patients. The information alleges that Filippone steered these prescriptions to a pharmacy in Fair Lawn, New Jersey, where Blaustein was the pharmacist-in-charge. The Fairlawn Pharmacy was owned and operated by Joseph Vangelas and Marlene Vangelas, who, along with Ohebshalom, directed Blaustein and others to research 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 Filippone to use with his patients. Filippone used the pre-printed labels and sent the prescriptions back to the Fair Lawn Pharmacy. To induce Filippone to prescribe the medically unnecessary pain creams in the exact formulations they desired, Joseph Vangelas and Marlene Vangelas purchased Filippone’s medical office and then permitted Filippone to continue to use the premises, for which he routinely failed to pay rent. Miller, the Vangelases, and Ohebshalom conspired to leverage the property to force Filippone to continue to send prescriptions to their pharmacy. Filippone continued to send prescriptions to the pharmacy, so long as Miller and the Vangelases permitted him to remain rent-free in the property.
The count of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. As part of her plea agreement, Blaustein agreed that the charged healthcare fraud conspiracy caused losses of $1.5 million to $3.5 million. Sentencing is scheduled for April 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; 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 and today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Healthcare Fraud Unit in the Criminal Division, Newark.
The charges and allegations in the information pertaining to Filippone, Joseph Vangelas, Marlene Vangelas, and Ohebshalom are merely accusations, and those four defendants are presumed innocent unless and until proven guilty.
Defense counsel: Jerome A. Ballarotto Esq., Trenton, New Jersey
Illinois Man Admits Role in Conspiracy to Distribute Cocaine and HeroinRead the Press Release
NEWARK, N.J. – A Illinois man today admitted conspiring to transport heroin and cocaine to New Jersey, U.S. Attorney Craig Carpenito announced.
Daniel Gonzalez Maldonado, 25, of Carpentersville, Illinois, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 500 grams or more of cocaine.
According to documents filed in this case and statements made in court:
On June 6, 2019, a conspirator paid Maldonado approximately $1,000 to drive the conspirator and a quantity of narcotics from Illinois to the East Coast. Maldonado allowed the conspirator to store approximately one kilogram of cocaine and approximately two kilograms of heroin in a Norristown, Pennsylvania, hotel room that was reserved in Maldonado’s name. The investigation revealed that at least one of these kilograms of narcotics would have been distributed in New Jersey.
The count to which Maldonado pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for April 23, 2020.
U.S. Attorney 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 arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
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.
Bergen County Insurance Broker Sentenced to Six Months in Prison, Six Months’ Home Confinement, for Health Care FraudRead the Press Release
TRENTON, N.J. – A former insurance broker with an office in Fort Lee, New Jersey, was sentenced today to six months in prison and six months of home confinement for defrauding Horizon Blue Cross Blue Shield, U.S. Attorney Craig Carpenito announced.
Lawrence Ackerman, 55, a resident of Old Tappan, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information charging him with one count of health care fraud.
According to documents filed in this case and statements made in court:
Ackerman was the chief operating officer of Atlantic Business Associates (ABA) and Atlantic Medical Associates (AMA), two “shell” companies through which he marketed health insurance nationally to people who were not his employees and therefore ineligible for health coverage. During the month of January 2011, he delivered $481,500 in health care benefits to ineligible participants.
As part of his plea, Ackerman must make restitution to Blue Cross Blue Shield for the fraudulent claims paid between 2009 and 2013. Ackerman originally was charged in a two-count indictment with conspiring to defraud Horizon Blue Cross Blue Shield of $5.6 million in fraudulent claims, and for defrauding the Local 2326 (UAW) Welfare Fund of $1 million in fraudulent claims. Those charges are now dismissed, and he is also obligated to pay restitution of $1 million to the Local 2326 Welfare Fund.
U.S. Attorney Carpenito credited special agents of the Department of Labor, Office of the Inspector General, under the direction of Special Agent in Charge Michael Mikulka; agents of the Employee Benefits Security Administration (EBSA), under the direction of Regional Director Darren Cohen; and agents of the Office of Labor Management Standards (OLMS), under the supervision of Regional Director Andriana Vamvakas, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the Organized Crime/Gangs Unit in Newark.
United States Technologies Inc. to Pay $525,000 to Settle False Claims Allegations for Providing Nonconforming PartsRead the Press Release
NEWARK, N.J. – UST-Aldetec Holding Company LLC, which includes its wholly owned subsidiary United States Technologies Inc., a New Jersey corporation, will pay $525,000 to resolve allegations that it violated the False Claims Act, U.S. Attorney Craig Carpenito announced today.
The settlement resolves allegations that U.S. Technologies made false claims in conjunction with obtaining payments under contracts awarded to U.S. Technologies by the United States. The United States contends that U.S. Technologies provided nonconforming circuit card assemblies, at least some of which were counterfeit parts, for a weapons system used by the United States.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the U.S. Air Force Office of Special Investigations, under the direction of Detachment Special Agent in Charge Jason T. Hein; special agents of the Department of Homeland Security (DHS), Homeland Security Investigations (HSI) under the direction of Special Agent in Charge Brian Michael in Newark; and personnel of the Defense Logistics Agency – Aviation, under the command of Brigadier General David J. Sanford, with the investigation leading to today’s settlement.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division in Newark.
Defense counsel: Carlos F. Ortiz Esq., New York
South Carolina Man Sentenced to 30 Months in Prison for Illegally Trafficking FirearmsRead the Press Release
NEWARK, N.J. – A South Carolina man who participated in the sale of 17 firearms, including five assault rifles, was sentenced today to 30 months in prison for his role in a scheme to illegally sell weapons in New Jersey, U.S. Attorney Craig Carpenito announced.
Richard Lowman, 31, previously pleaded guilty before U.S. District Court Judge Claire C. Cecchi to an information charging him with one count of conspiracy to engage in the unlicensed business of dealing in firearms. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On six different dates between May 2017 and September 2017, Lowman – sometimes accompanied by his uncle, Reginald Moultrie – met with an individual in Newark for the purpose of selling firearms. Lowman personally participated in the sale of an assault rifle on a Newark street in May 2017. During a later transaction in August 2017, Lowman travelled from South Carolina to New Jersey and transported multiple firearms across state lines. Ultimately, six firearms were sold inside a residence in Newark on that occasion.
Seventeen firearms, including five assault rifles, were illegally sold by Lowman and Moultrie over five months. Neither Lowman nor Moultrie had a license to sell firearms. Moultrie previously pleaded guilty to possession of a firearm after having been convicted of a felony and is currently awaiting sentencing.
In addition to the prison term, Judge Cecchi sentenced Lowman to three years of supervised release.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NCIS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities.The United States Attorney’s Office prosecuted this case with support from the Newark Police Department, a Project Guardian partner. 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. He also thanked officers from the Newark Police Department, under the direction of Department of Public Safety Director Anthony F. Ambrose, for their assistance. For more information, please see: Project Guardian.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office National Security Unit in Newark.
Defense counsel: Kevin Buchan Esq., Holmdel, New Jersey
Gloucester County Man Admits Production of Child PornographyRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man today admitted producing and distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
James Thiel, 32, of Williamstown, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of sexual exploitation of a minor.
According to documents filed in this case and statements made in court:
From April 2019 through August 2019, Thiel used an email account and a file sharing site to send images and videos of child sexual abuse to other individuals. Thiel produced and appeared in several of these images and videos along with a pre-pubescent child.
The sexual exploitation of a minor charge to which Thiel pleaded guilty carries a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. Thiel will be required to register as a sex offender. Sentencing is scheduled for April 23, 2020.
U.S. Attorney Carpenito credited special agents of Department of Homeland Security (DHS), Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael in Newark, and the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Charles A. Fiore, with the investigation leading to today’s guilty plea.
The government is represented by Deputy U.S. Attorney Matthew J. Skahill and Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, Camden
Camden Man Admits Role in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A member of a drug-trafficking organization today admitted his role in a conspiracy to distribute heroin in Camden, U.S. Attorney Craig Carpenito announced.
David Velez, 31, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin.
Eleven other members – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, Naeem Sadler, Jasmin Velez, Jameel Byng, and Kaliel Johnson – have previously pleaded guilty to their roles in the drug-trafficking conspiracy in the 500 block of Pine Street in Camden. Charges against six other defendants in this case remain pending.
The guilty pleas in this case reflect that the various members of the drug-trafficking organization sold heroin, crack cocaine and powder cocaine in and around the City of Camden.
According to documents filed in this case and other cases and statements made in court:
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 Velez pleaded guilty carries a mandatory penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing is scheduled for April 20, 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 Special Agent in Charge Michael T. Harpster; 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 Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations against the other defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel: Mark Catanzaro Esq., Mount Holly, New Jersey
Former Paterson Municipal Utilities Authority Commissioner Sentenced to 35 Months in Prison for Schemes with Vendors to Steal Funds and Accept KickbacksRead the Press Release
NEWARK, N.J. – A former commissioner with the now-defunct Paterson Municipal Utilities Authority was sentenced today to 35 months in prison for engaging in two separate schemes to steal funds from the Paterson Municipal Utilities Authority (MUA), U.S. Attorney Craig Carpenito announced.
Erik Lowe, 51, of Paterson, New Jersey, previously pleaded guilty before former U.S. District Judge Jose L. Linares to an information charging him with one count of conspiring with Carnell Baskerville, a contractor who plead guilty in February 2018 to his role in the scheme, to commit extortion under color of official right during the period from approximately December 2014 through approximately May of 2015. He also pleaded to one count of engaging in a second scheme with another contractor to commit extortion under color of official right from approximately August of 2012 through November of 2014. U.S. District Judge Kevin McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Lowe was a commissioner of the MUA from February 2009 through May 2015, during which time he exercised control over the MUA’s finances. The MUA had been created to manage the hydroelectric plant on the Passaic River in Paterson as well as to care for and manage certain surrounding properties. Lowe and Baskerville entered into an agreement whereby Lowe would approve payments from the MUA to Baskerville’s company for services purportedly rendered when both Lowe and Baskerville knew that Baskerville had not performed and would not perform any such services. Between December 2014 and May 2015, Lowe wrote a series of MUA checks totaling $146,500 to Baskerville’s company. Lowe directed Baskerville to deposit these checks into Baskerville’s bank account and to kick back to Lowe a significant percentage of this amount in cash to reward Lowe and a fellow MUA commissioner for their official assistance in carrying out the scheme.
Lowe admitted to engaging in a similar scheme between approximately August of 2012 through approximately November of 2014 with a second contractor whose company installed and repaired fences for residential homes and commercial business. Lowe admitted that initially he inflated the checks provided to this contractor substantially above the value of the jobs the contractor performed on behalf of the MUA so that the contractor could kick back thousands of dollars in cash in kickbacks to Lowe for Lowe’s official assistance in carrying out the scheme. Lowe admitted that near the end of the scheme, he was issuing checks worth thousands of dollars to the contractor knowing that no job had been or would be performed by the contractor in exchange for the checks. Lowe, in turn, accepted kickbacks totaling thousands of dollars from the contractor in exchange for these checks. Between August 2012 and November 2014, Lowe issued checks totaling $141,700 to the contractor, for which Lowe accepted tens of thousands of dollars in cash kickbacks.
In addition to the prison term, Judge McNulty sentenced Lowe to three years of supervised release and ordered him to pay restitution of $236,400.
Baskerville pleaded guilty on Feb. 6, 2018 before Judge Linares to one count of conspiracy to commit extortion under color of official right and to one count of conspiracy to embezzle from an organization receiving federal benefits in excess of $10,000 and was sentenced Oct. 23, 2018, to 21 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 with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender
Three New Jersey Men Arrested for Possession of Narcotics with Intent to DistributeRead the Press Release
NEWARK, N.J. – Three New Jersey men were charged with possession of cocaine and heroin with intent to distribute, U.S. Attorney Craig Carpenito announced today.
Robin Peralta, 37, of Trenton, New Jersey, is charged by complaint with one count of possession with intent to distribute five kilograms or more of cocaine and one count of possession with intent to distribute one kilogram or more of heroin. Luis Susana-Delossanto, 32, of Trenton, is charged by complaint with two counts of possession with intent to distribute five kilograms or more of cocaine. Ramon Fabian-Pena a/k/a/ “Rafael,” 59, of Passaic, New Jersey, is charged by complaint with one count of possession with intent to distribute five kilograms or more of cocaine.
All three defendants appeared Jan. 8, 2020, before U.S. Magistrate Judge Leda D. Wettre in Newark federal court. Peralta and Susana-Delossanto were released on bail. Fabian-Pena was detained.
According to the documents filed in this case and statements made in court:
A search of Peralta’s residence revealed approximately three kilograms of heroin and U.S. currency. A search of Delossanto’s vehicle revealed approximately 29 kilograms of cocaine. At the time of the arrest of Fabian-Pena, law enforcement also recovered a package containing approximately six kilograms of cocaine.
The counts of possession with intent to distribute heroin and possession with intent to distribute cocaine each have a minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a $10 million fine.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; and members of the Mercer County Prosecutor’s Office, as well as the Hamilton Township Police Department, with the investigation leading to the charges. This investigation was conducted by a New JerseyJ DEA HIDTA Task Force composed of officers from the DEA, New Jersey State Police, Mercer County Prosecutor’s Office, Hudson County Prosecutor’s Office, Wayne Police Department, Union Police Department, Woodbridge Police Department, Edison Police Department and Bayonne Police Department.
The government is represented by Assistant U.S. Attorneys Cassye Cole and Vera Varshavsky 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.
Thirteen Defendants Indicted in Connection with Monmouth County Drug Trafficking Conspiracy; Two Defendants Charged with Unlawfully Possessing FirearmsRead the Press Release
TRENTON, N.J. – Thirteen defendants have been indicted for their roles as members, associates, and suppliers of a drug-trafficking conspiracy that distributed cocaine and crack cocaine in and around Monmouth County, U.S. Attorney Craig Carpenito announced today.
Damion Helmes, Dawn Stephens, Shantay Walker, Keith Logan, Shamar Dudley, Tonya Underwood, Elizabeth Conover, Curtis Jenkins, Ralph Lee, and Eric Yarbrough were charged with conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine. Additionally, Helmes, Stephens, Walker, Logan, Dudley, Underwood, Conover, Jenkins, Lee, Yarbrough, Derrick Hayes, Dequan Copeland, and Cassius Williams were charged with conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine. Helmes was also charged with possession with intent to distribute cocaine and crack cocaine, possession of a firearm in furtherance of a drug-trafficking crime, and with being a felon in possession of a firearm. Hayes was also charged with being a felon in possession of a firearm.
According to the documents filed in this case and statements made in court:
Between April 2019 and August 2019, the defendants and others engaged in a narcotics conspiracy that operated primarily in municipalities throughout Monmouth County – including Cliffwood, Keansburg, Matawan, Keyport, Red Bank, Long Branch, Neptune, and Asbury Park, as well as Brick Township in Ocean County – and which sought to profit from the distribution of cocaine and crack cocaine. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, and other investigative techniques, law enforcement officers learned that defendant Helmes obtained regular supplies of cocaine from defendants Hayes and Copeland. Helmes then re-distributed that cocaine, portions of which he converted into crack cocaine, for profit, to other conspirators, distributors, sub-dealers, and end users throughout Monmouth County. During the wiretap portion of the investigation, law enforcement intercepted numerous communications by and between the conspirators regarding such issues as cocaine quality and availability, pricing, packaging, quantity, and customer satisfaction.
The defendants were originally charged by complaint on Aug. 22, 2019. Dudley was previously charged by indictment.
The count of conspiracy to distribute 280 grams or more of crack cocaine carries a maximum penalty of life in prison, a ten-year mandatory minimum term of imprisonment, and a maximum fine of $10 million. The count of conspiracy to distribute 500 grams or more of cocaine carries a maximum penalty of 40 years in prison, a five-year mandatory minimum term of imprisonment, and a maximum fine of $5 million. The count charging Helmes with possession with intent to distribute cocaine and crack cocaine carries a maximum sentence of 20 years in prison and a $1 million fine. The count charging Helmes with possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum term of imprisonment of 5 years and a maximum potential penalty of life in prison, and must be served consecutive to the sentence imposed on the drug trafficking crime. The felon in possession counts against Helmes and Hayes carry a maximum sentence of 10 years in prison. Each firearms count also carries a maximum fine equal to the greatest of $250,000, twice the gross amount of pecuniary gain that any persons derived from the offense, or twice the gross amount of any pecuniary loss sustained by any victim of the offense.
U.S. Attorney Carpenito credited Special Agents and Task Force Officers of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach, Brick, Howell, Toms River, Union Beach and Marlboro police departments, and the Monmouth County Sheriff's Office) under the direction of Special Agent in Charge Gregory W. Ehrie; the Red Bank Police Department, under the direction of Chief Darren McConnell; the Keansburg Police Department, under the direction of Chief James Pigott; the Middletown Police Department, under the direction of Chief Craig Weber; the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; the Highlands Police Department, under the direction of Chief Robert Burton; the Holmdel Police Department, under the direction of Chief John Mioduszewski; and the Long Branch Police Department, under the direction of Chief Jason Roebuck, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the superseding indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Leader of Million-Dollar Moving Company Fraud Sentenced to Five Years in PrisonRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 60 months in prison for leading a conspiracy involving numerous moving companies that systematically extorted hundreds of customers, U.S. Attorney Craig Carpenito announced.
Richard Bishara, 43, of Woodland Park, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit wire fraud. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Bishara and his conspirators jointly operated numerous moving companies that quoted customers “low-ball” price estimates for household goods moves and then raised prices on the date of the move after the goods were loaded and the customers were vulnerable. Through this scheme, Bishara and his conspirators, over a number of years and hundreds of moves, raised final prices for moves above the allowed increase from initial estimates as provided by federal regulations, including increases as high as 400 percent on the day of the move. The collective difference between the many estimates and the final balances for the customers’ moves was more than $1 million. Bishara personally owned a number of the moving companies involved, and, as a leader of the conspiracy, controlled certain bank accounts used by the companies.
Judge Wigenton also sentenced Bishara to three years of supervised release and ordered him to pay restitution of $72,709.
U.S. Attorney Carpenito credited special agents of the Department of Transportation-Office of the Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker, Northeast Region; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, Newark Division; and special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), New York, under the direction of Special Agent in Charge Peter C. Fitzhugh, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Anthony Pope Esq., Newark
Former Newark Police Officer Admits Bribery and Assisting in Preparing False Federal Tax ReturnRead the Press Release
NEWARK, N.J. – A former Newark police officer today admitted soliciting and accepting cash payments from a brothel owner in Newark in exchange for protecting brothels from police action, and to failing to report those cash payments on his personal federal income tax returns, U.S. Attorney Craig Carpenito announced.
Julio I. Rivera, 50, of Old Bridge, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to two counts of an indictment charging him with bribery (Count Six) and aiding and assisting in the preparation of a false 2015 personal federal tax return (Count 13).
According to documents filed in this case and statements made in court:
From September 2014 to August 2015, Rivera solicited and accepted cash payments from a Newark brothel owner (“Individual 1”) who ran brothels located on Lafayette Street and Emmet Street. In exchange for these cash bribes, Rivera performed official acts and violated his lawful duties for the benefit of Individual 1, including declining to arrest individuals who were committing and promoting prostitution, agreeing to protect these individuals from arrest by other Newark police officers, and agreeing to take adverse action against a competing brothel. Rivera collected between $40,000 and $95,000 in bribes in exchange for protecting those and other brothels in Newark.
Rivera also intentionally withheld information from his tax preparer regarding the cash bribes that he received, which caused Rivera’s filed federal tax returns for certain tax years, including 2015, to understate the total amount of income that Rivera received. Rivera stipulated that this misconduct resulted in a loss to the IRS of $15,000 to $40,000.
The maximum potential penalty for the count of bribery is 10 years in prison and the maximum potential penalty for the tax fraud is three years in prison; both counts carry a maximum potential fine of up to $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for April 30, 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 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 Cari Fais of the Special Prosecutions Division in Newark.
Defense counsel: Kristen Santillo Esq., New York
Former Owner of Elizabeth Restaurant Admits Evading TaxesRead the Press Release
TRENTON, N.J. – The former owner of a restaurant in Elizabeth, New Jersey, today admitted evading taxes on over $844,000 in income from his restaurant business, U.S. Attorney Craig Carpenito announced.
Omar Rodriguez, 49, of Parlin, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to one count of an information charging him with tax evasion for 2015 through 2017.
According to documents filed in this case and statements made in court:
Rodriguez owned Mojito LLC, d/b/a Mojito Lounge and Restaurant (Mojito’s), a restaurant that served Cuban cuisine. Mojito’s generated a substantial amount of gross cash receipts and Rodriguez admitted that he skimmed a substantial portion of this cash for his personal use, which he did not report as income, and to pay Mojito’s employees and suppliers in cash. Between 2015 and 2017, Rodriguez received over $844,000 in income from Mojito’s that he failed to report to the IRS. Rodriguez caused Mojito’s to fail to report over $483,000 in cash payroll and to pay certain employment taxes. His conduct resulted in a $193,733 tax loss to the IRS for tax years 2015 through 2017.
The tax evasion charge to which Rodriguez pleaded guilty carries a maximum penalty of five years in prison and is punishable by a potential $250,000 fine. Sentencing is scheduled for April 15, 2020.
U.S. Attorney Carpenito credited special agents of the 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 Bernard J. Cooney of the of the U.S. Attorney’s Office Health Care Fraud Unit in Newark.
Former Chief Lending Officer of New Jersey Bank Admits Making False Statements to United States in an Effort to Secure Federal Guarantees on LoansRead the Press Release
TRENTON, N.J. – A Pennsylvania man today admitted improperly securing a federal guarantee on a loan by making false statements to the Small Business Administration (SBA) about the creditworthiness of those loans while serving as the chief lending officer of a New Jersey bank, U.S. Attorney Craig Carpenito announced.
James Bortolotti, 51, pleaded guilty before U.S. District Judge Michael Shipp in Trenton federal court to an information charging him with one count of knowingly making false statements for the purpose of influencing the action of the SBA.
According to documents filed in this case and statements made in court:
While serving as the chief lending officer of a New Jersey bank (Bank-1), Bortolotti became aware of a Small Business Administration lending program to incentivize lenders, including banks, to loan money to small businesses by providing a 75 percent SBA-backed guarantee on loans. When a lender applies an SBA guarantee on a loan, the lender must disclose information related to the creditworthiness of the small business. Bank-1 hired a consulting firm to help the bank apply for SBA-backed guarantees.
On Feb. 29, 2012, a consultant from the consulting firm submitted an application to the SBA for a guarantee of approximately $3.75 million on loans totaling approximately $5 million made to a small business located in Robbinsville, New Jersey. The application contained false information related to the creditworthiness of the business. Bortolotti knew the application contained false information, but reviewed and signed the application on behalf of the bank.
Making false statements for the purpose of influencing the action of the SBA carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for April 16, 2020.
U.S. Attorney Carpenito credited special agents of the SBA-Office of the Inspector General (SBA-OIG), under the direction of Special Agent in Charge Kevin Kupperbusch in Philadelphia; the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney J. Stephen Ferketic of the U.S. Attorney’s Office Opioid Abuse Prevention and Enforcement Unit in Newark.
Defense counsel: William C. Cagney Esq., New Brunswick, New Jersey
Essex County Man Charged with Mortgage FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man will be arraigned today on charges that he engaged in a conspiracy to commit mortgage fraud that resulted in potential losses in excess of $1 million, U.S. Attorney Craig Carpenito announced.
Cabral Simpson, 43, of Belleville, New Jersey, appeared before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court. He is charged by indictment with one count of conspiracy to commit wire fraud and two counts of wire fraud.
According to documents filed in this case and statements made in court:
Simpson, a real estate investor, and his conspirators engaged in mortgage fraud by creating fake bank statements and fake employee verification records for buyers of properties and transferring money into the buyers’ bank accounts for payment of the deposit for a property. Simpson and his conspirators submitted fraudulent mortgage loan applications, supporting documents, and closing documents on behalf of the buyers. They induced lenders to issue more than $1 million in loans, resulting in defaults and exposing the lenders and the U.S. Department of Housing and Urban Development to more than $1 million in potential losses.
The conspiracy and wire fraud counts with which Simpson is charged each carry a maximum potential penalty of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by 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, with the investigation leading to the indictment.
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.
Burlington County Man Charged with Wire Fraud and Money Laundering for Defrauding Internet DonorsRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man was indicted today for his role in a GoFundMe scheme that collected money from donors on the internet, purportedly to benefit a homeless man, U.S. Attorney Craig Carpenito announced today.
Mark D’Amico, 40, formerly of Bordentown, New Jersey, was indicted on one count each of conspiring to commit wire fraud and conspiring to commit money laundering, as well as on four substantive counts of wire fraud and 10 substantive counts of money laundering. He was previously charged by criminal complaint on Oct. 2, 2019.
On March 6, 2019, two conspirators – Katelyn McClure and Johnny Bobbitt Jr. – pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering, respectively, in connection with the same scheme. They are both awaiting sentencing.
According to documents filed in this case and statements made in court:
In November 2017, D’Amico and McClure created a crowd source funding page on GoFundMe’s website, titled: “Paying It Forward.” The campaign solicited donations from the public, purportedly for the benefit of homeless veteran Bobbitt. D’Amico and McClure posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a good Samaritan and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited, with a goal of $10,000, to get Bobbitt off the streets and provide living expenses for him.
The story told by D’Amico and McClure was not true. McClure never ran out of gas and Bobbitt never spent his last $20 for her. D’Amico and McClure conspired to create the false story to obtain money from donors based on false information. The false story was quickly picked up by local and national news outlets and went viral. Approximately $400,000 from more than 14,000 donors throughout the country was raised in less than one month.
The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money was quickly spent by D’Amico and McClure on personal expenses over the next three months, including significant amounts by D’Amico for gambling, as well as for vacations, a BMW automobile, clothing, handbags and other personal items and expenses.
In mid-November 2017, when the donations had reached approximately $1,700, D’Amico and McClure told Bobbitt about the campaign and the false story. In December 2017, after D’Amico helped open a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.
The charge of wire fraud conspiracy and the four substantive wire fraud charges each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of conspiracy to commit money laundering, as well as five of the substantive money laundering counts, each carry a maximum penalty of 10 years in prison and a fine of $250,000. The remaining five charges of money laundering charges each carry a maximum penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, 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. He also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; and officers of the Florence Township Police Department for their work on the case.
The government is represented by Senior Trial Counsel Jason M. Richardson and Assistant U.S. Attorney Jeffrey B. Bender of the U.S. Attorney's Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Two New Jersey Men Sentenced to Prison for Phony Debt Elimination SchemeRead the Press Release
NEWARK, N.J. – Two New Jersey men were today sentenced to prison terms for their respective roles in using phony monetary instruments to obtain luxury vehicles and other high value items; one of the defendants was additionally convicted of bankruptcy fraud, U.S. Attorney Craig Carpenito announced.
Germaine Howard King, a/k/a “Germaine Howard,” 47, of Elizabeth, New Jersey, was sentenced to 70 months in prison, and Daniel D. Dxrams, currently known as “Daniel Kusi,” formerly known as “Danny D. Dxrams,” 41, of Maplewood, New Jersey, was sentenced to 57 months in prison. U.S. District Judge John Michael Vasquez imposed the sentences today in Newark federal court.
King was convicted for his role in a scheme to defraud banks and other lenders using phony money orders to fraudulently discharge a $400,000 mortgage, to fraudulently obtain two Mercedes Benz (one 2007 and one 2010) cars, and to pay off credit card bills. In addition, King was convicted of a scheme to use phony cashier’s checks to pay off his co-defendant’s five luxury cars.
Dxrams was convicted for his role in a scheme to fraudulently pay off a Rolls Royce, Bentley, and three Mercedes Benz cars (two 2015 cars and one 2016 car). In addition, Dxrams was convicted of bankruptcy fraud and making a false oath during a bankruptcy proceeding.
Two co-defendant were sentenced by Judge Vasquez on Dec. 18, 2019: Melissa Reynolds, 43, of Elizabeth, who previously pleaded guilty to an information charging her with conspiracy to commit mail fraud, mail fraud affecting financial institutions, and bank fraud, was sentenced to one year and one day in prison, five years of supervised release, restitution of $587,081 and forfeiture of $548,242; Arthur N. Martin 3rd was sentenced to time served (one day), three years of supervised release and fined $12,000.
According to documents filed in this case and the evidence at trial:
King conspired with Reynolds to make fraudulent money orders on their home computers. They mailed these phony money orders to a credit union in an effort to fraudulently pay off their two Mercedes Benz cars. Although the credit union rejected both bogus money orders, King and Reynolds mailed correspondences to the credit union falsely claiming that the debt was satisfied. They then stopped paying their car loans, and King kept the car. King and Reynolds mailed a fraudulent money order in the amount of $432,000 to a financial institution to pay off their mortgage. The financial institution erroneously accepted the fraudulent payment and credited it as a payoff for the mortgage. When the financial institution filed a suit seeking to reinstate the fraudulently discharged mortgage, King and Reynolds continued to allege in court that the mortgage had been paid and submitted a phony receipt for the bogus money order. King also made and mailed fraudulent money orders in an attempt to pay off his credit card bills.
Dxrams, King, and Reynolds conspired to fraudulently pay off Dxrams’ five luxury cars. They sent a bogus $101,000 cashier’s check to a finance company that enabled Dxrams to obtain a 2012 Bentley for free. Dxrams sold the car to a third party for approximately $82,000 and then issued a bank check to King for approximately $25,000. The defendants also used this scheme in an effort to fraudulently obtain three Mercedes-Benz cars and a Rolls Royce.
Dxrams was also convicted of bankruptcy fraud and making a false oath before the bankruptcy court. In December 2017, Dxrams filed a bankruptcy petition under penalty of perjury. He falsely concealed his ownership of a car rental business and the gross receipts he earned through this car rental business, his sale of the Bentley, his receipt of money from a personal injury lawsuit, his ownership of firearms, and his marital status, among other things. In January 2018, Dxrams appeared before the bankruptcy trustee and, after being placed under oath, made false statements concerning his bankruptcy petition and his sale of the Bentley.
In addition to the prison terms, Judge Vasquez sentenced King to five years of supervised release and restitution of $597,781. Dxrams was sentenced to three years of supervised release, restitution of $93,236 and forfeiture of $82,000.
U.S. Attorney Carpenito credited special agents of the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. Office of Homeland Security and Preparedness, under the direction of Director Jared Maples; the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Debbi Mayer; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi with the investigation leading to the convictions.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman, of the National Security Unit, in Newark.
Defense counsel:
King: Pro Se
Dxrams: Michael Orozco Esq., Woodland Park, New Jersey
Reynolds: Robert J. Degroot Esq., and Oleg Nekritin Esq., NewarkPaterson Police Sergeant Arrested for Conspiracy to Violate Civil Rights and Filing a False Police ReportRead the Press Release
NEWARK, N.J. – A sergeant with the Paterson Police Department was arrested today and charged with conspiring to violate the civil rights of an individual in Paterson and with falsifying a corresponding police report, U.S. Attorney Craig Carpenito announced.
Police Officer Michael Cheff, 49, of Paterson, was arrested by the FBI this morning and charged by complaint with conspiring to deprive an individual of civil rights under color of law and with falsifying a police report. Cheff is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to documents filed in this and other cases and statements made in court:
Certain Paterson police officers stopped and searched motor vehicles, without any justification, and stole cash and other items from the occupants of the motor vehicles. These officers also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized cash from them. Cheff routinely received a portion of these stolen monies from some of these officers and signed off on corresponding false police reports about the underlying incidents. 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, three officers stopped and arrested an individual and one of the officers stole a few hundred dollars from that individual. The officers then went to the individual’s apartment, and Cheff joined them. One officer stayed behind to guard the arrested individual, who was handcuffed in a police car, while the others, including Cheff, obtained consent to search the apartment by lying to the individual’s mother.
Cheff and the other two officers 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 one of the officers and told the officer to log it into evidence. Cheff put the rest of the money in his pocket. At the Paterson police station, in a bathroom, Cheff gave the officer who had stayed behind to guard the individual a portion of the stolen money and gave a portion of the stolen money to one of the officers who had searched the apartment with him.
Cheff also approved a police report that falsely stated that the officers had recovered $319 from a shelf in the individual’s room. In fact, Cheff knew that he had stolen a substantial sum of money from a safe in the room.
Later that day, one of the officers sent text messages to another officer discussing Cheff’s theft of money. The officer 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 arrest. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, 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.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Member of ATM Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Sentenced to Five Years in PrisonRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 60 months in prison for participating in a scheme that used secret card-reading devices and pinhole cameras on various New York and New Jersey bank locations to steal at least $390,141.
U.S. Attorney Craig Carpenito, District of New Jersey; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Special Agent in Charge Brian Michael of the Department of Homeland Security, Homeland Security Investigations (HSI), Newark made the announcement.
Bogdan Rusu, 39, of Queens, New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to commit bank fraud. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Rusu and others engaged in a widespread bank fraud conspiracy that targeted various banks in Massachusetts, New York and New Jersey. Rusu and others captured payment card account information from customers as they accessed their accounts through automatic teller machines (ATMs) and then used that information to steal money from the customers’ bank accounts. As part of the scheme, Rusu and others installed devises on ATMs in New Jersey and elsewhere to illegally obtain customer account information, including account numbers and personal identification numbers. Rusu and others would then transfer the illegally obtained information to counterfeit payment cards and use those counterfeit cards to steal money from the accounts. Eleven other defendants charged in this scheme have pleaded guilty.
In addition to the prison term, Judge Salas sentenced Rusu to three years of supervised release and restitution of $390,141.
U.S. Attorney Carpentio and Assistant Attorney General Benczkowski credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Michael in Newark; special agents of the U.S. Secret Service, Boston Field Office; East Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; Medford, Massachusetts, Police Department; Ludlow, Massachusetts Police Department; and the Massachusetts State Police, with assistance from the victim banks, with the investigation leading to today’s guilty plea. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts, Springfield Division assisted in the investigation and prosecution.
The government is represented by Assistant U.S. Attorney Angelica Sinopole of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
Two People Plead Guilty in Camden Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – Two members of a drug-trafficking organization today admitted their roles in distributing significant amounts of illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.
Jameel Byng, 26, and Kaliel Johnson, 27, both of Camden, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to their roles in a conspiracy based on the 500 block of Pine Street in Camden and responsible for selling heroin, crack cocaine and cocaine. Byng pleaded guilty to an information charging him with one count of conspiracy to distribute and possess with intent to distribute heroin and powder cocaine. Johnson pleaded guilty to an information charging him with one count of conspiracy to distribute and possess with intent to distribute heroin.
Nine other members of the drug-trafficking conspiracy – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, Naeem Sadler, and Jasmin Velez – previously have pleaded guilty in this case. The charges against eight other defendants in this case remain pending.
According to documents filed in this case and statements made in court:
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 drug-trafficking organization in which Byng and Johnson participated.
The count to which Byng pleaded guilty carries a mandatory penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. The count to which Johnson pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine.
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 Special Agent in Charge Michael T. Harpster; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Prosecutor Acting Camden County Prosecutor Jill S. Mayer; the Camden County Sherriff’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.
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.
The charges and allegations against the other defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel:
Byng: Tamika McKoy Esq., Camden
Johnson: Edward F. Borden Esq., Cherry Hill, New JerseyOwner of Used Car Dealership Admits Conspiracy to Steal Payments from U.S. Department of Defense, Bank Fraud and Money LaunderingRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted his role in a conspiracy to defraud the U.S. Department of Defense (DoD), U.S. Attorney Craig Carpenito announced.
Hurriyet Arslan, 49, of Willingboro, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of conspiracy to commit mail, wire and bank fraud, one count of bank fraud and one count of money laundering.
According to documents filed in this case and statements made in court:
Corporation 1 had a contract with the DoD to supply jet fuel to troops operating in southeast Asia. Corporation 1 employed an individual in Fort Lee, New Jersey – identified as “Victim 1” – who was responsible for communicating with the federal government through a government computer system.
Conspirators located overseas designed and deployed on the Internet fraudulent web pages (phishing pages) that resembled the public-facing website of the General Service Administration. From June 2018 through September 2018, the conspirators caused phishing e-mails to be sent to various DoD vendors, including Victim 1, in an attempt to trick the vendors into visiting the phishing pages. These e-mails appeared to be legitimate but were actually fraudulent e-mails that contained electronic links to the phishing pages. Those customers who clicked on the electronic links were directed automatically to the phishing pages, where they saw what appeared to be the GSA’s System for Award Management (SAM) website and were prompted for, and entered, their log-in credentials and personal key.
The conspirators caused Victim 1’s log-in credentials and personal key to be intercepted and transmitted, not to the GSA, but to computers and e-mail accounts that the conspirators controlled.
Arslan was the owner of Deal Automotive Sales in Florence, New Jersey. At the request of an individual in Germany, he opened a shell company based in New Jersey, with a mobile phone number and bank account. Arslan sent the mobile phone SIM card and bank account information to a conspirator in California. For doing this, Arslan received two wire transfers from someone in Turkey. Due to suspicious activity, the bank shut down the bank account, and the conspirator in California asked Arslan for his account information for Deal Automotive, which he provided.
On July 27, 2018, DoD awarded Corporation 1 a $23.5 million contract to provide Aviation JA1 Turbine fuel to troops operating in southeast Asia. The conspirators used Victim 1’s log-in credentials to access Corporation 1’s government account and changed the bank account information to reflect a bank account controlled by Arslan. The conspirator in California contacted the DoD, identifying himself as Victim 1, and confirmed that Corporation 1’s payment method had been changed to the Deal Automotive Sales bank account.
DoD transferred $23.5 into Arslan’s Deal Automotive Sales bank account, which Arslan accessed at a branch in Burlington County and transferred a portion of the money to other accounts he controlled.
The counts of conspiracy and bank fraud to which Arslan pleaded guilty carry a maximum potential penalty of 30 years in prison and a fine equal to the greatest of $1 million or twice the gross profits received or gross loss from the offense. The count of money laundering to carries a maximum penalty of 10 years in prison and a fine of $250,000 or two times the gross profits received from the offense or two times the gross loss sustained by the victims. Sentencing is scheduled for April 13, 2020.
U.S. Attorney Carpenito credited criminal investigators of the United States Attorney’s Office, special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Leigh-Alistair Barzey; 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 General Service Administration, Office of Inspector General, under the direction of Acting Special Agent in Charge Stephen Lobaugh, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Sara Aliabadi of the U.S. Attorney=s Office Criminal Division in Camden.