District of New Jersey
Press releases recorded for this federal judicial district.
Former Member of U.S. Navy Sentenced to 18 Months in Prison for Interstate Gun Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A former member of the U.S. Navy was sentenced today to 18 months in prison for her role in an interstate gun trafficking conspiracy, U.S. Attorney Craig Carpenito announced.
Tesora Amanda Cortes Trejorojas, 24, of Norfolk, Virginia, previously pleaded guilty to an indictment charging her with one count of conspiring with others to transport and receive in New Jersey firearms purchased and obtained outside the state. 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:
In November 2017, Trejorojas engaged in text messages with Azia Sinclair in which Trejorojas agreed to purchase firearms for Sinclair and Sinclair’s boyfriend, Shyheim Tyson, a/k/a “Shy,” who were both residents of New Jersey.
On Nov. 11, 2017, Sinclair and Tyson drove from New Jersey to Trejorojas’ residence in Norfolk. All three went to a gun store in Norfolk, where Trejorojas purchased five semiautomatic handguns, as well as 200 rounds of ammunition, with cash provided by Sinclair and Tyson. The next day, Sinclair and Tyson drove back to New Jersey with the five handguns and ammunition.
Approximately five hours after Sinclair and Tyson arrived back in New Jersey, an individual was arrested in Orange, New Jersey, after police officers responded to the sound of gunshots. During the arrest, police officers recovered one of the five handguns that Sinclair and Tyson had transported from Virginia to New Jersey.
In March 2018, law enforcement executed a search warrant on Sinclair’s residence in Newark, and found another of the guns that Sinclair and Tyson had transported from Virginia to New Jersey in November 2017.
Tyson and Sinclair both pleaded guilty to conspiracy to transport and receive in New Jersey firearms purchased and obtained outside the State of New Jersey. Tyson was sentenced on Jan. 7, 2019, to 37 months in prison. Sinclair was sentenced on Dec. 11, 2019, to 19 months in prison.
Judge McNulty also sentenced Trejorojas to three years of supervised release.
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, and Special Agent in Charge Thomas L. Chittum III, Washington Field Division, with the investigation leading to today’s sentencing. He also thanked the N.J. State Police; the Newark Department of Public Safety; and Naval Criminal Investigative Service (NCIS) in Norfolk for their assistance.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the Violent Crimes Unit in Newark.
Defense counsel:
Trejorojas: Jonathan F. Marshall Esq., Red Bank, New Jersey
Sinclair: Linda Foster Esq., Assistant Federal Public Defender, Newark
Tyson: Vincent J. LaPaglia Esq., Hoboken, New JerseyMiddlesex County Man Admits Conspiring to Defraud United States Through Filing of False Tax ClaimsRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man today admitted his role in a conspiracy to defraud the United States by filing false tax claims for gambling winnings, U.S. Attorney Craig Carpenito announced.
Michael Watsey, 43, of South River, 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 defraud the United States with respect to claims.
According to documents filed in this case and statements made in court:
Watsey admitted that he was involved in a conspiracy with his family members and others to file 16 fraudulent U.S. Income Tax Returns for years 2014 through 2016. He and his conspirators created false W2-G forms to report gambling winnings, showing significant winnings and federal tax withheld by casinos in Atlantic City. The 16 false tax returns falsely claimed $3.9 million in federal tax refunds. The IRS paid out $1.3 million in refunds.
Watsey admitted to creating the false forms on his home computer, preparing false documents to send the IRS after tax refunds were questioned, pretending to be a casino host by phone with an IRS representative and devising a way to have false W2-G forms filed with the IRS.
The charge to which Watsey pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for April 7, 2020.
U.S. Attorney Carpentio 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 Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, Camden
Former Acting Executive Director of Jersey City Employment and Training Program Charged in Embezzlement SchemeRead the Press Release
NEWARK, N.J. – The former acting executive director of the Jersey City Employment and Training Program (JCETP) has been charged with embezzling JCETP funds, U.S. Attorney Craig Carpenito announced today.
Sudhan M. Thomas, 44, of Jersey City, New Jersey, is charged by complaint with embezzling funds from an organization receiving federal funds. Thomas is expected to make his initial appearance on Jan. 9, 2020, before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the complaint:
Thomas served as JCETP’s acting executive director from January 2019 until his resignation in July 2019. JCETP is a nonprofit organization that operated to assist Jersey City residents to prepare for and enter the work force. JCETP received substantial amounts of its funding from federal grants from the U.S. Department of Labor and the U.S. Department of Housing and Urban Development.
Using his access to JCETP funds and control of JCETP’s bank accounts, from March 2019 through July 2019, Thomas embezzled more than $45,000 from JCETP. Thomas caused checks to be drawn from JCETP accounts that were made payable to others, but ultimately received by Thomas. He also embezzled JCETP funds by issuing JCETP checks made out to cash that Thomas either cashed himself or used to obtain bank checks that Thomas made payable to his entity, Next Glocal, which were deposited into a Next Glocal bank account that Thomas controlled. Thomas used the JCETP funds deposited to Next Glocal’s bank account to pay for his personal expenses, including payments to Thomas’s landlord in Jersey City and airfare and hotel expenses for a trip to Hawaii, and to fund transfers to Thomas’ family trust account.
The count of theft from an organization receiving federal funds carries a maximum potential penalty of up to 10 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
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. Department of Labor, Office of the Inspector General (OIG), under the supervision of Special Agent in Charge Michael Mikulka; and special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney Lee M. Cortes Jr., Chief of the Health Care Fraud Unit, in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Caldwell University Agrees to Pay More Than $4.8 Million to Resolve Allegations of Violating False Claims ActRead the Press Release
NEWARK, N.J. – Caldwell University has agreed to pay the United States more than $4.8 million to resolve allegations that it engaged in a fraudulent scheme to defraud a federal education benefit program, U.S. Attorney Craig Carpenito announced.
“Caldwell University tried to hoodwink the Department of Veterans Affairs and, worse, veterans themselves, by claiming to offer online classes developed and provided by Caldwell that were in fact marked-up offerings by an online correspondence school,” U.S. Attorney Carpenito said. “Our veterans should never be treated this way, and we will continue to work to ensure that they receive all of the benefits that they deserve as a result of their service to the country.”
“Caldwell University’s civil settlement, along with the previous criminal convictions, sends a clear message to other educational institutions that VA OIG is dedicated to holding those accountable who would take advantage of VA programs that are intended to assist veterans and their families,” Jeffrey K. Stachowiak, Acting Special Agent in Charge, U.S. Department of Veterans Affairs Office of Inspector General, said. “Our veterans sacrificed to serve our country and they deserve to receive the full education benefits that they earned through their military service. VA OIG is committed to working closely with our fellow law enforcement partners and thanks the U.S. Attorney’s Office, District of New Jersey, for its dedication to this investigation.”
According to the settlement agreement:
From Jan. 1, 2011, through Aug. 8, 2013, Caldwell University submitted false claims for payment to the Department of Veterans Affairs (VA) in order to receive education benefits and funds pursuant to the Post-9/11 Veterans Education Assistance Act (Post 9/11 GI Bill) to which it was not entitled. The Post 9/11 GI bill was designed specifically to help veterans who served in the armed forces following the terrorist attacks on Sept. 11, 2001.Three individuals previously pleaded guilty to separate informations charging them with one count of conspiracy to commit wire fraud related to this scheme to defraud the VA. Lisa DiBisceglie, the university’s former associate dean of the Office of External Partnership; David Alvey, founder and president of Ed4Mil LLC; and Helen Sechrist, a former employee of Ed4Mil, admitted their respective roles in the conspiracy to fraudulently obtain millions of dollars in tuition assistance and other education-related benefits from the Post-9/11 GI Bill. Alvey was sentenced on June 4, 2018, to five years in prison. DiBisceglie and Sechrist were each sentenced on June 5, 2018, to three years of probation. All three defendants were also ordered to pay $24 million in restitution.
According to documents in this case and statements made in court:
Caldwell contracted with Ed4Mil to recruit and enroll eligible military veterans in non-degree fully online classes that were purportedly provided by Caldwell. DiBisceglie helped get approval from Caldwell’s administration to develop and administer a series of non-credit online courses for veterans in Caldwell’s name. In order for the courses to be eligible for education benefits under the Post-9/11 GI Bill, DiBisceglie, Alvey, and others prepared and submitted an application to the VA stating that the courses were developed, taught, and administered by Caldwell faculty and met Caldwell’s stringent educational standards. The VA approved the online courses for education benefits under the Post-9/11 GI Bill based upon the representations in Caldwell’s application.
However, Caldwell did not participate in developing or teaching the online courses. The courses were developed, taught, and administered by a sub-contractor of Ed4Mil, an online correspondence school in Pennsylvania that was not approved to receive education benefits under the Post-9/11 GI Bill.
Thousands of veterans were ultimately enrolled in the unapproved online correspondence courses without their knowledge while Caldwell and Ed4Mil profited. Even though Caldwell contributed no content or value to the courses, Caldwell charged the Post 9/11 GI Bill 10 to 30 times the prices charged by the online correspondence school for the same courses. As a result, the government paid over $24 million in tuition benefits to the university.
Allegations of fraud involving a separate government education benefit program were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The qui tam complaint alleges that Caldwell and Ed4Mil fraudulently obtained education benefits under the Department of Defense Tuition Assistance program. This settlement resolves federal allegations that Caldwell defrauded the Post-9/11 GI Bill administered by the VA, along with the qui tam action.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division, Northeast Field Office, under the direction of Acting Special Agent in Charge Stachowiak; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Special Agent in Charge Geoffrey Wood, with the investigation.
The government is represented by Assistant U.S. Attorney David M. Eskew, Chief of the U.S. Attorney’s Office’s Health Care Fraud Unit, and Assistant U.S. Attorney Nicole F. Mastropieri of the Opioid Abuse Prevention and Enforcement Unit in Newark.
The claims settled by this agreement are allegations only, and there has been no admissions of liability.
Defense counsel: Henry E. Klingeman Esq., Newark
Relator’s counsel: Jesse Hoyer Esq., Tampa, FloridaTax Preparer Admits Conspiring to Commit Tax FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, tax preparer today admitted her role in conspiring to defraud the IRS and filing false personal tax returns for a New Jersey business owner and two other individuals, U.S. Attorney Craig Carpenito announced.
Zenobia Williams, 52, of Maplewood, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to one count of conspiring to defraud the IRS by reporting false business expenses on the business owner’s tax return to fraudulently reduce his tax liability and by reporting those sham expenses as income on two other individuals’ tax returns to obtain unwarranted refunds for them.
According to documents filed in this case and statements made in court:
In 2016, Williams operated Maplewood Business Services LLC, a tax preparation business in Maplewood. Williams and the New Jersey business owner agreed to report false labor expenses for his business on his personal tax return for calendar year 2015 to decrease his tax liability.
On January 5, 2016, Williams sent the business owner a text message, stating, “Hey Fella, I have 1 client right now that needs 15,750 in income. I need you to produce a 1099MISC form for that person. I will give you the information. Let me know how much more income you need to 1099.” Subsequently, at the business owner’s direction, Williams prepared two IRS Forms 1099 which falsely stated that, in 2015, his business paid one individual compensation of $15,800 and another individual compensation of $11,255, when both Williams and the business owner knew that no such compensation had been paid to those individuals.
Williams also prepared a personal tax return for the business owner which falsely reported the phony business expenses totaling $27,055, which both Williams and the business owner knew would fraudulently decrease the amount of tax that the business owner owed the IRS for calendar year 2015. Williams also reported the bogus business expenses as income on the tax returns of the two individuals referred to above, which resulted in both receiving unwarranted tax refunds from the IRS.
The tax fraud conspiracy charge to which Williams pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing of the defendant is scheduled for April 17, 2020.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Cari Fais and J Imbert of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Kenneth W. Kayser, Esq., East Hanover, New Jersey
New Jersey Resident Sentenced for Threatening to Murder A United States Congressman and His StaffRead the Press Release
CAMDEN, N.J. – A New Jersey resident was sentenced yesterday to 87 months in prison for threatening to murder former U.S. Rep. Frank LoBiondo and members of the congressman’s staff, U.S. Attorney Craig Carpenito announced.
Joseph Brodie, 40, of Millville, New Jersey, was previously convicted in Camden federal court on two counts of making threats to officials, officers and employees of the United States – specifically, for a telephone threat to murder LoBiondo’s chief of staff and an email threat to murder LoBiondo, his chief of staff, his veterans affairs liaison, and all of the other staff of the Mays Landing office. During the sentencing hearing yesterday, the Court determined that over the course of the prosecution, Brodie had obstructed justice and that there also was evidence to show he had intended to carry out his threats.
According to documents filed in this case and the evidence presented at trial:
In the spring of 2017, Brodie reached out to LoBiondo seeking assistance with the medical care and treatment that Brodie was receiving from the Veterans Administration. Over the course of the next few months, Brodie spoke and corresponded with the congressman’s Veterans Affairs Liaison and a caseworker, both of whom assisted him with appointments and meetings regarding his medical care. On Sept. 19, 2017, Brodie contacted the congressman’s office and spoke to the chief of staff on the phone. Brodie wanted the chief of staff to arrange a meeting with the congressman, but the chief of staff refused. During this phone call, Brodie became angry and ultimately threatened the life of the chief of staff – calling him “a dead man.”
Approximately an hour and a half later, Brodie sent an email to the congressman’s veterans’ affairs liaison as well as the caseworker, threatening their lives as well as the lives of the congressman and his staff in the Mays Landing Office. In this email, Brodie stated that he wanted to meet the congressman “face to face” and he pointed out “how easy” it was to find the congressman’s Mays Landing Office. Brodie also attached a terrain map of the area, with the area around the congressman’s office enlarged for detail and a red pinpoint location marker on the office. Writing about the map, Brodie stated, “[i]t even shows the environment and surrounding terrain, parking lots, wooded areas, etc., (like the kind a highly trained Combat Infantryman would use)…”
On the same day as the threats, Brodie sent text messages to his fiancée stating: “I threaten the life of a Congressman’s Chief of Staff. I’m pretty sure the Secret Service are going to investigate.” He also wrote that he was “prepared” for any law enforcement officers who might respond to his home. He wrote, “I’ll give them a chance to leave. If not, it’ll be First Blood Part II Type Shit (if you never saw that Rambo movie).” Brodie also wrote, “I won’t surrender. It’s not in me.” The same day, Brodie spoke to his fiancée on the phone and told her that he was going to travel to an address in New Jersey, that he had GPS coordinates in his car, that he was going to kill LoBiondo’s chief of staff, and that there was going to be a “blood bath.”
One week later, in a statement recorded by the FBI, Brodie confessed to having made the phone threat to the chief of staff on Sept. 19, 2017, and to having sent the email threat on Sept. 19, 2017.
The evidence showed that at the time Brodie made these threats, Brodie owned several firearms and a large amount of ammunition at his home.
U.S. Attorney Craig Carpenito credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the U.S. Capitol Police, under the direction of Chief Steven Sund; officers from the N.J. State Police, under the direction of Col. Patrick J. Callahan; and the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, with the investigation leading to yesterday’s sentencing.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Jason Richardson, of the Camden office.
Defense counsel: Gina Amoriello, Esquire, Westmont, NJ and Philadelphia, PA
Former Associate Director Arrested and Charged with Embezzling Hundreds of Thousands of Dollars from Global Maritime Service GroupRead the Press Release
NEWARK, N.J.– A former associate director of a global maritime service group was arrested today for defrauding the company and embezzling hundreds of thousands of dollars for his own personal benefit, U.S. Attorney Craig Carpenito announced.
David Buckingham, 35, of Chatham, New Jersey, was indicted on five counts of wire fraud. He was arrested this morning by postal inspectors from the U.S. Postal Inspection Service and is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the indictment:
Buckingham held the title of associate director and head of the New York office of the victim company, a global maritime service group headquartered in London, England. The company offered among other services, the handling of subrogation claims related to marine transportation of goods for insurance companies.
Buckingham was a signatory on the company’s United States bank accounts and had authority to issue checks for legitimate business purposes. Buckingham was also responsible for paying the company’s payroll taxes.
From 2016 through 2018, Buckingham embezzled hundreds of thousands of dollars from the Victim Company by writing checks from the Victim Company to himself or to “cash” to obtain funds to which he was not entitled. In some instances Buckingham falsified the Victim Company’s books and records in an effort to make the payments appear legitimate by claiming that certain of the checks were to make tax payments on behalf of the Victim Company or to pay other legitimate business expenses. Buckingham did not make payroll tax payments on behalf of the Victim Company during the relevant time period, and instead used the proceeds of the scheme for his own personal expenses.
The charges of wire fraud each carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Craig Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, and postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge James Buthorn, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Vijay Dewan and Courtney A. Howard of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Florida Man Admits Laundering More Than $9 Million in Account Takeover SchemeRead the Press Release
TRENTON, N.J. – A Florida man has admitted to laundering funds related to a $9 million business account takeover scheme with ties to Eastern Europe, U.S. Attorney Craig Carpenito announced.
Igor Buzyukov, 51, of Weston, Florida, pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton to an information charging him with one count of conspiracy to commit money laundering.
According to documents filed in this case and statements made in court:
Between February 2018 and July 2018, several clients of Company-1, a financial technology company headquartered in San Jose, California, fell victim to an account takeover scheme resulting in total losses exceeding $9 million.
The scheme generally involved an unidentified individual or individuals calling Company-1 and impersonating a representative of one of the victim companies. The impostor(s) would then request that an unauthorized bank account be added to the victims’ Company-1 accounts and be designated to receive payments from e-commerce customers.
The unauthorized bank accounts added to the victims’ Company-1 accounts were each controlled by Buzyukov under the name of a corporation registered to him in the State of Florida. After monies were deposited to the unauthorized accounts, Buzyukov would transfer the funds to other accounts controlled by him. Buzyukov then wired the majority of the funds to several bank accounts held by various individuals in Russia, Turkey and Ukraine.
Buzyukov also admitted to creating fake invoices in the amounts of the wire transfers in order to make the transactions appear legitimate.
The conspiracy to commit money laundering charge carries a statutory maximum of 20 years in prison and a fine of not more than $500,000 or twice the value of the property involved, whichever is greater. Sentencing is scheduled for March 26, 2020.
U.S. Attorney Carpenito credited special agents of the United States Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrimes Unit in Newark.
Defense counsel: Thomas Ambrosio, Esq., Lyndhurst, NJ
Bergen County Man Charged with Using Social Media to Threaten to Kill Federal AgentsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested this morning after using his Twitter account to threaten to kill agents of Immigration and Customs Enforcement (ICE), U.S. Attorney Craig Carpenito announced.
Carlos Alejandro Tariche, 22, of Edgewater, New Jersey, was arrested by agents of U.S. Department of Homeland Security, Homeland Security Investigations (HSI), and charged by complaint with one count of interstate communications containing threats to injure. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the documents filed in this case and statements made in court:
On Dec. 11, 2019, Tariche used one of his Twitter accounts to post threats to ICE agents: “We need to kill all ICE agents.” He also posted: “Why can’t mass shootings occur at @ICEgov buildings them mfs need to get smoked.” Tariche also used his Twitter account to compare his feelings to that of Elliot Rodger, the individual who carried out a mass shooting at Isla Vista, California, murdering six people and shooting 14 others. Tariche also posted on Twitter: “You might’ve heard I paint houses,” a phrase that refers to murdering people and that was recently popularized by the movie, “The Irishman,” which depicts a mafia hitman.
Law enforcement officers were able to link Tariche to his Twitter account through an investigation of his social media accounts and the locations from where he logged onto his Twitter accounts.
The charge of interstate communications containing threats carries a statutory maximum sentence of five years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of HSI, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s charge.
The government is represented by Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Owner of Scrap Metal Business Admits Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – The owner of a scrap metal business in Morris County, New Jersey, today admitted that he underreported his income on his personal tax returns, avoiding paying more than $175,000 in taxes, U.S. Attorney Craig Carpenito announced.
Anthony Curto Jr., 51, of Succasunna, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of making and subscribing a false tax return.
According to documents filed in the case and statements made in court:
Curto owned and operated Total Metal Transport, a business headquartered in Succasunna that purchased and transported scrap metal and other materials. Curto admitted that for tax years 2012 and 2013, he underreported and failed to report the gross receipts from Total Metal Transport, which he operated on a cash-only basis, on his personal tax return, avoiding more than $175,000 in taxes.
The count of making and subscribing a false tax return carries a maximum potential penalty of three years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 24, 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 Health Care & Government Fraud Unit.
Newark Man Sentenced to 10 Years in Prison for Firearms Offense Related to Shooting of 5-Year-Old GirlRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 120 months in prison for being convicted of being a felon in possession of a firearm, U.S. Attorney Craig Carpenito announced.
Jamar Battle, 31, was previously convicted after a three-day trial before U.S. District Judge William J. Martini on one count of being a felon in possession of a firearm and ammunition. The jury deliberated two hours before delivering the guilty verdict. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
On the evening of July 4, 2018, Battle was involved in an argument with his girlfriend and was waiting for her outside of her home. After she arrived near her home, Battle fired six shots at the car she had been riding in as it pulled away. He did not hit his intended target, but did hit a 5-year old girl who had been walking with her father after watching a neighborhood fireworks display. The child survived the shooting but suffered a major injury that required immediate medical attention.
Prior to this shooting, Battle had been convicted of six felonies. In 2015, Battle was sentenced to New Jersey State Prison on two firearms offenses and had just been released from prison in May 2018.
In addition to the prison term, Judge Martini sentenced Battle to three years of supervised release.
U.S. Attorney Carpenito credited law enforcement officers of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose; special agents of the Department of Alcohol Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens 2nd, with the investigation leading to today’s sentencing.
The government was represented by Senior Trial Counsel Robert Frazer and Special Assistant U.S. Attorney Naazneen Khan of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Defense counsel: Michael P. Koribanics Esq., Clifton, New Jersey
C.E.O. and Founder of Cash Flow Partners Charged with Multimillion-Dollar Bank Fraud and Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was charged today for a multi-million dollar bank fraud and securities fraud scheme operated through his company, Cash Flow Partners LLC (Cash Flow), U.S. Attorney Craig Carpenito announced.
Edward Espinal, 44, of Wayne, New Jersey, was charged by complaint with one count of conspiracy to commit bank fraud and one count of securities fraud. He is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case and statements made in court:
The Bank Fraud Conspiracy
Espinal was the founder and chief executive officer (CEO) of Cash Flow, and controlled the company’s operations. From March 2016 through December 2019, Espinal led and directed a bank fraud conspiracy designed to obtain millions of dollars in loans from banks on the basis of false representations. To attract customers, Cash Flow released internet advertisements and held seminars offering to assist customers with low-paying salaries in obtaining loans. These advertisements included promotional videos featuring Espinal and a former telenovela actor. Customers contacted Cash Flow and were routed to the company’s sales department.
Employees in the sales department then encouraged customers to sign up for various loan programs that Cash Flow provided and to enter into contracts with Cash Flow. Under those contracts, employees would help customers obtain loans from banks. The Cash Flow contracts permitted customers to keep a portion of the loan proceeds and customers agreed to provide the remaining percentage of the proceeds to Cash Flow. Cash Flow agreed to pay off the loans on behalf of its customers.
Cash Flow then used false information and fraudulent document to obtain loans for its customers for which they otherwise would not have qualified, and posed as the customers in communications with the banks.
The Securities Fraud Scheme
From July 2016 through September 2019, Espinal obtained more than $5 million in investments from victim investors on the basis of false and fraudulent pretenses and representations.
Espinal solicited investments from prospective customers using a marketing campaign on Spanish language television channels and the internet, the “Cash Flow TV” YouTube page, and live presentations in Cash Flow’s offices and elsewhere. Espinal also solicited investments from individuals who obtained loans through Cash Flow’s bank fraud conspiracy, encouraging loan customers to invest loan proceeds in Cash Flow’s investment program. Once investors agreed to invest in Cash Flow, Espinal issued “promissory notes” to investors that guaranteed monthly investment returns between 1.25 percent and 4 percent. The promissory notes stated that Cash Flow would return investors’ principal either one year from the date of the promissory note, or 60 days after investors demanded payment. Espinal and other Cash Flow employees signed the promissory notes on behalf of Cash Flow.
Espinal made a number of misrepresentations to investors. He told investors that he would pool their funds with the funds of other investors in investments related to real estate, real estate companies, a gold mine in Ecuador, and construction projects in countries outside of the United States. In reality, Espinal used investor funds to pay returns to earlier investors, to pay for personal expenses for himself, his family, and another Cash Flow employee, to perpetuate the bank fraud scheme, and to market the bank fraud and investment scheme to future victims. Espinal falsely claimed that Cash Flow’s purported real estate fund, Cash Flow Capital, was “licensed” by the Securities and Exchange Commission. He guaranteed monthly returns on investment based on the purported proceeds from the sale of properties in Cash Flow’s investment portfolio. In reality, Espinal did not sell Cash Flow properties, so no profits were derived from the sale of Cash Flow properties.
Two other individuals, Raymundo Torres and Jennie Frias, have previously been charged for their roles in the Cash Flow bank fraud conspiracy. Torres has pleaded guilty.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The securities fraud counts carry a maximum penalty of 20 years in prison and a $5 million fine.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Espinal today based on the allegations underlying the securities fraud charge.
U.S. Attorney Carpenito credited special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York, 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 SEC for the assistance provided by its Enforcement Division.
The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio of the Economic Crimes Unit and J. Stephen Ferketic of the U.S. Attorney’s Office Opioid Abuse Prevention and Enforcement Unit in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: Telesforo Del Valle Esq., New York
Bergen County Orthopedic Surgeon Charged with Failing to Pay over Payroll Taxes and Failing to Report a Foreign Bank AccountRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted an orthopedic surgeon for failing to pay over payroll taxes to the IRS and failing to report a foreign bank account, U.S. Attorney Craig Carpenito announced.
Brian Mehling, 54, of Hackensack, New Jersey, was charged in an 11-count indictment with 10 counts of failing to collect, account for, and pay over payroll taxes for one quarter in 2014, three quarters in 2015, three quarters in 2016, two quarters in 2017, and one quarter in 2018, and one count of failing to report a foreign bank account holding more than $10,000 for calendar year 2018.
According to documents filed in this case and statements made in court:
Mehling, an orthopedic surgeon, started Mehling Office Management LLC, in order to pay himself and other employees as part of his medical practice. Since the year 2006, Mehling has been involved with the IRS Collection Division due to his failure to pay his quarterly employment taxes for Mehling Office Management and other entities Mehling owned and controlled. Instead, Mehling chose to spend the majority of his money on other ventures, such as traveling around the world, on his personal rental properties, and promoting his stem cell research company.
Mehling was responsible for withholding payroll taxes from the gross salary and wages of his businesses’ employees to cover individual income, Social Security, and Medicare tax obligations. For at least 10 tax quarters, Mehling’s business withheld tax payments from its employees’ checks, but Mehling failed to pay over in full the payroll taxes due to the IRS. Additionally, Mehling did not report a bank account in France that at one point held more than $10,000 in 2018.
The 10 counts of failing to collect, account for, and pay over payroll taxes each carry a maximum penalty of five years in prison, and a $250,000 fine, or twice the gross gain or loss from the offense. The count alleging failure to report a foreign bank account carries a maximum penalty of five 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.
The government is represented by Assistant U.S. Attorney Leah Gould of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Virginia Man Sentenced to Five Years in Prison for Gun TraffickingRead the Press Release
CAMDEN, N.J. – A Virginia man has been sentenced to 60 months in prison for conspiring to traffic 35 guns into New Jersey, U.S. Attorney Craig Carpenito announced today.
Shawn K. Harvey, 54, of Locust Grove, Virginia, was previously convicted of one count of conspiracy to traffic firearms and three counts of trafficking firearms following a two-week trial before U.S. District Judge Noel L. Hillman. Judge Hillman imposed the sentence Dec. 17, 2019, in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
Shawn K. Harvey and his son, Shawn M. Harvey, a/k/a “Munchy,” 29, also of Locust Grove, were originally arrested in August 2016 after agents from the Bureau of Alcohol, Tobacco and Firearms (ATF) directed and supervised a sting operation using a confidential informant, who purchased firearms from the Harveys at a parking lot in Pennsauken, New Jersey. Ultimately, the Harveys sold 35 firearms – including assault-style rifles, revolvers, shotguns and semi-automatic handguns – in 11 separate transactions spanning several weeks. One of these firearms was reported stolen in Virginia and many of the guns were brand new and came with ammunition.
In addition to the prison term, Judge Hillman sentenced Shawn K. Harvey to three years of supervised release. Shawn M. Harvey previously pleaded guilty and is scheduled to be sentenced Jan. 8, 2020.
U.S. Attorney Carpenito credited ATF special agents, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to the sentencing.The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: A. Harold Kokes Esq., Pleasantville, New JerseyNew York For-Hire Vehicle Driver Charged with Transporting A Minor from New Jersey to New York to Engage in Criminal Sexual ActivityRead the Press Release
CAMDEN, N.J. – A New York man was charged with traveling to New Jersey to engage in illicit sexual conduct with a minor under the age of 16 and transporting the minor from New Jersey to New York to engage in criminal sexual activity, U.S. Attorney Craig Carpenito announced.
Richard Gabriel Piedra Ordonez, 35, of Sunnyside, New York, is charged by complaint with one count of transporting a minor with the intent to engage in criminal sexual activity and one count of traveling for the purpose of engaging in illicit sexual conduct. Piedra is expected to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
According to documents filed in this case:
In May 2019, Piedra began communicating with a New Jersey resident under the age of 16 using various social media and messaging platforms. Over the course of the subsequent months, Piedra and the victim met in person and Piedra engaged in sexual conduct with the victim. Piedra traveled to Cape May County to have sex with the victim and also drove the victim to his home in New York City, where he engaged in criminal sexual activity with the victim.
The count of transporting a minor carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of life in prison, and a $250,000 fine. The offense of traveling for the purpose of engaging in illicit sexual conduct carries a maximum penalty of 30 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents with FBI’s Atlantic City Child Exploitation & Human Trafficking Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner, and the N.J. State Police, under the direction of Col Patrick J. Callahan, with the investigation leading to today’s charges. He also thanked the Cape May County Prosecutor’s Office, under the direction of Prosecutor Jeffrey H. Sutherland, for its assistance with the investigation.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Mail Carrier Admits Stealing Credit Cards from the MailRead the Press Release
NEWARK, N.J. – A former U.S. Postal Service (USPS) mail carrier today admitted that he intercepted and removed envelopes containing credit cards from the mail, U.S. Attorney Craig Carpenito announced.
Jaquan Miller, 30, of Bloomfield, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of conspiring to steal mail. He remains released on a $50,000 unsecured bond.
According to documents filed in this case and statements made in court:
Miller was a USPS employee at the Hudson City Station Post Office in Jersey City, New Jersey. From the summer of 2017 through August 2018, Miller removed envelopes containing credit cards from the mail and delivered the stolen credit cards to Moussa Dagno and Olagoke Araromi and others, who then used the stolen credit cards at retail stores to purchase electronics and other items. Dagno and Araromi each pleaded guilty in April 2019 to paying bribes, bank fraud, and aggravated identity theft, and were sentenced on Oct. 15, 2019, to 57 months in prison and 61 months in prison, respectively. Miller is the seventh former USPS employee who has pleaded guilty to charges stemming from Dagno’s and Araromi’s bribery scheme.
The conspiracy charge is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 25, 2019.
U.S. Attorney Carpenito credited special agents with the USPS-Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Donald Millman Esq., of West Orange, New Jersey
Bergen County Man Charged with Defrauding Victim of $780,000Read the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man has been charged in connection with a scheme to fraudulently obtain $780,000 to purchase an apartment in Fort Lee, New Jersey, U.S. Attorney Craig Carpenito announced today.
Arthur Schwartz, 78, of Fort Lee, was indicted on four counts of wire fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the documents filed in this case and statements made in court:
In February 2018, Schwartz obtained $780,000 from Victim-1 to purchase an apartment in Fort Lee by falsely stating that he possessed the funds to repay a short-term loan, but that his bank had temporarily blocked access to his account. Victim-1 agreed to extend the loan to Schwartz due and payable in 30 days. Schwartz used the money to purchase the apartment.
From March 2018 to May 2018, Schwartz made numerous false statements intended to make Victim-1 believe that Schwartz would be sending him money to pay down the loan. On March 16, 2018, Schwartz sent a text message to Victim-1 falsely stating that he was liquidating investments in a trust account into cash for the benefit of Victim-1. Schwartz sent an email to Victim-1 on March 27, 2018, that was intended to deceive Victim-1 into believing that Schwartz had access to a Wells Fargo account with a balance of approximately $1.5 million, and that Schwartz could use that money to pay back Victim-1. Schwartz instead spent tens of thousands of dollars redecorating his Fort Lee apartment.
The wire fraud counts each carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer 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 defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office Reaches ADA Settlement with Middlesex County Day Care Facility over Discrimination Against Child Perceived to Have HIV or HepatitisRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey has reached a settlement with a Middlesex County, New Jersey, day care facility to ensure equal access for children with HIV or Hepatitis under the Americans with Disabilities Act (ADA), U.S. Attorney Craig Carpenito announced.
Following an investigation, the U.S. Attorney’s Office found that Children’s Choice Academy (CCA) of East Brunswick, New Jersey, violated the ADA by denying a child admission to its day care based on the parent’s disclosure that the child may have Hepatitis or HIV, without making an individualized assessment that the child posed a direct threat to the health or safety of others that could not be mitigated by reasonable modifications of CCA’s policies, practices, or procedures.
The ADA prohibits public accommodations, such as CCA, from discriminating against people with, or perceived to have, disabilities, including HIV or Hepatitis. Public accommodations also cannot deny access to goods and services to people associated with someone with a disability.
“The ADA prohibits day care centers from denying services on the basis of disability or perceived disability,” U.S. Attorney Craig Carpenito said. “Today’s settlement sends a clear message that denying access, or suggesting that a person should seek services elsewhere, is discrimination that this office will take action to address.”
Under the settlement agreement, CCA has agreed to implement policies and procedures to ensure that children with disabilities are afforded full and equal opportunities to participate in and benefit from its programs and services, to publish on its website a statement of its policy on the prohibition of disability discrimination, and to provide mandatory training on the ADA and its prohibition of disability discrimination to all CCA employees. CCA will also pay $5,000 in damages to the child and his parent.
For more information on the ADA and HIV discrimination, visit www.ada.gov/aids.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).
The government is represented by Assistant U.S. Attorney Daniel Meyler and Special Assistant U.S. Attorney Victor Williamson of the U.S. Attorney’s Office Civil Rights Unit in Newark.
New York Man Admits Role in Defrauding Banks in $3.5 Million ‘Shotgun’ Loan SchemeRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted participating in a conspiracy to carry out a $3.5 million scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” U.S. Attorney Craig Carpenito announced.
Saoud “Sam” Rihan, 59, pleaded guilty before U.S. District Judge John Michael Vazquez to an indictment charging him with one count of conspiracy to commit bank fraud.
According to documents filed in the case and statements made in court:
Rihan was a business partner of Simon Curanaj, 65, of Yonkers, New York. From 2012 through January 2014, Rihan, Curanaj, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOC) from banks on residential properties in New Jersey and New York.
In 2013, Rihan and Curanaj executed a deed to transfer ownership of a Bronx property to people identified in the complaint as “Individual 1” and “Individual 2,” neither of whom lived at the property. Rihan offered Individuals 1 and 2 $10,000 cash payments for acting as straw borrowers but never paid them. Rihan and Curanaj then applied for three HELOCs valued at $750,000 from multiple banks in the name of Individual 2.
Rihan and Curanaj hid the fact that the same Bronx property was pledged as collateral in all three applications. The applications also fraudulently inflated Individual 2’s income. In addition, at the time the applications were made, the value of the Bronx property, which was encumbered by a mortgage, was far less than the amount of the HELOC loans that Rihan and the real estate broker applied for.
The victim banks eventually issued loans to Individual 2 in excess of $370,000. After the victim banks funded the HELOCs and deposited money into Individual 2’s bank accounts, Individual 2 disbursed almost all of the funds to Rihan, Curanaj, and others. In 2014, Individual 2 defaulted on all the HELOC loans.
The overall scheme resulted in over $3.5 million in losses to the victim banks.Rihan faces a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 25, 2020.
Curanaj previously pleaded guilty to his role in the scheme and is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Robert Manchak in Newark; and special agents of the FBI, under the direction Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA-OIG.Defense Counsel: Jeffrey Garrigan Esq., Jersey City, New Jersey
Doctor and Pharmaceutical Representative Admit Health Care Fraud Conspiracies Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A Trenton doctor today admitted his role in two separate conspiracies for defrauding New Jersey state health benefits programs and accepting kickbacks in exchange for referring laboratory work, U.S. Attorney Craig Carpenito announced. A pharmaceutical representative admitted his role in a separate health care fraud conspiracy and to obstructing justice by telling witnesses to lie to the grand jury investigating the scheme.
Dr. Daniel Oswari, 48, of Bordentown, New Jersey, pleaded guilty today before U.S. District Judge Robert B. Kugler in Camden federal court to two counts of an indictment charging him with conspiracy to commit health care fraud and wire fraud (Count One) and conspiracy to violate the Anti-Kickback Statute and the Travel Act (Count 23). Mark Bruno, 45, of Northfield, New Jersey, also pleaded guilty before Judge Kugler to an information charging him with conspiracy to commit health care fraud and obstruction of justice.
Oswari was charged in October 2019 along with Steven Monaco, Michael Goldis, and Aaron Jones, and charges remain pending against those three defendants.
According to documents filed in these cases and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Between January 2014 and April 2016, Oswari participated in a conspiracy that discovered that certain insurance plans paid for certain prescription compound medications – a including vitamins and pain creams – from a Louisiana pharmacy, identified in the indictment as the “Compounding Pharmacy 1,” and a Pennsylvania pharmacy, identified in the indictment as “Compounding Pharmacy 2.” The conspirators targeted patients with these insurance plans that provided coverage for the compound medications, particularly New Jersey state and local government and education employees. An entity referred to in the indictment as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, and other insurance plans. The Pharmacy Benefits Administrator paid prescription drug claims and then billed the State of New Jersey or the other insurance plans for the amounts paid.
Oswari and members of his staff tried to persuade patients to receive the prescription compound medications, even if the patients did not have a medical necessity for the medications. Oswari signed printed prescription forms from Compounding Pharmacies 1 and 2 that had pre-selected the highest number of refills to obtain the highest possible insurance reimbursement. Oswari signed some prescriptions without seeing or evaluating the individuals, including for individuals who were not his patients. Oswari signed approximately 285 prescriptions for compounded medications, and the Pharmacy Benefits Administrator paid Compounding Pharmacies 1 and 2 approximately $1.9 million for the prescriptions he signed. In exchange for signing the prescriptions, Oswari received cash kickbacks.
Oswari also pleaded guilty to a separate conspiracy to take kickbacks for referring laboratory work and signing prescriptions. Oswari had a laboratory hire his medical assistant as a phlebotomist. The medical assistant continued to work for Oswari, but laboratory paid her salary for over two years. In return, Oswari referred his blood and urine samples to the laboratory for testing. This lab work was insured by Medicare, New Jersey Medicaid, and other insurance companies.
Bruno worked for a company that marketed compounded medications and received a percentage of the insurance payments. Bruno introduced a doctor to the company and received a percentage of the payments for prescriptions that the doctor wrote. Bruno and others paid the doctor to reward him for signing prescriptions. Bruno recruited individuals covered by New Jersey state insurance plans because he knew that those plans paid thousands of dollars for certain compounded medications. Bruno paid several of these individuals to see his doctor and receive prescriptions for compounded medications. Bruno received $68,872 from the company and caused $524,935 in losses.
Bruno learned in 2018 that the federal grand jury was investigating him. In 2019, two individuals paid by Bruno to receive compounded medications told him that they had received subpoenas to testify in the grand jury, and another two told Bruno that they were contacted by the FBI. Bruno told the first two to lie in the grand jury and deny that he paid them. Bruno told the other two to tell the FBI that he had not paid them.
The health care fraud and wire fraud conspiracy count to which Oswari pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The kickbacks conspiracy count to which Oswari also pleaded guilty carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The heath care fraud conspiracy and obstruction of justice charges to which Bruno pleaded guilty each carry a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
Sentencing for Oswari is scheduled for March 23, 2020, and sentencing for Bruno is scheduled for March 24, 2020.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the guilty pleas. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Aimee Nason, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Christina O. Hud of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment against Monaco, Goldis, and Jones are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
California Man Charged with Conspiracy to Distribute 114 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A California man has been charged with conspiring to distribute approximately 114 kilograms of cocaine in Hunterdon County, New Jersey, U.S. Attorney Craig Carpenito announced today.
Angel Alfonso Maldonado, 25, of Long Beach, California, is charged by complaint with one count of conspiring to distribute and possessing with intent to distribute over five kilograms of cocaine. He appeared today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
Law enforcement officers in the area of Clinton Township, New Jersey, observed a tractor-trailer pull off I-78 onto the shoulder of the highway. Maldonado, who is the owner of the tractor-trailer, appeared nervous when law enforcement approached.
A certified narcotics detection canine screened the outside of the tractor-trailer and alerted for the presence of narcotics on the side of the cabin of the tractor-trailer, as well as inside the cabin. Law enforcement subsequently searched the cabin and found two hidden compartments. Each hidden compartment contained approximately 57 kilograms of suspected narcotics. The approximately 114 kilograms were plastic wrapped, consistent with narcotics packaging. Law enforcement field-tested some of the kilograms, which tested positive for the presence of cocaine.
The count of conspiracy to distribute and possess with intent to distribute over five kilograms of cocaine carries a maximum penalty of life in prison, a mandatory minimum term of 10 years in prison, and a $10 million fine.
U.S. Attorney Carpenito credited the U.S. Attorney Carpenito credited the DEA Strike Force including 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, with the investigation leading to today’s charge..
The government is represented by Unit Chief Meredith J. Williams and Assistant U.S. Attorney Lauren E. Repole of the Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Monmouth County Man Charged with Being Felon in Possession of FirearmRead the Press Release
NEWARK, N.J. – A Monmouth County man has been charged with being a previously convicted felon in possession of a firearm, U.S. Attorney Craig Carpenito announced today. The weapon in question was found, along with a number of other weapons and ammunition, during a lawful search of a pawn shop and residence connected to one of the perpetrators of the Dec. 10, 2019, mass shooting in Jersey City, New Jersey.
Ahmed A-Hady, 35, of Keyport, New Jersey, is charged in a criminal complaint with one count of being a previously convicted felon in possession of a firearm. He was arrested by FBI agents early this morning and is expected to appear on Monday before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the complaint, filed today:
On Dec. 10, 2019, there was a mass shooting in Jersey City in which two individuals, a male (Individual 1) and a female (Individual 2), killed three civilians after earlier killing a law enforcement officer. After the shooting, law enforcement recovered from Individual 1’s right rear pants pocket a handwritten note that contained a telephone number ending in 4115, and a Keyport, New Jersey, address. Law enforcement also recovered several weapons carried by Individuals 1 and 2, including an AR-15 rifle.
FBI agents determined that the phone number ending in 4115 contained on the note belonged to A-Hady. Law enforcement also determined that the Keyport address listed on the note was a storefront for a pawn shop.
Law enforcement obtained records of A-Hady’s history of firearm purchases. Those records indicated that around May 23, 2007, A-Hady purchased a Smith and Wesson .45 caliber handgun bearing serial number NHN5284 (the “.45 caliber”). Records also indicate that on or about June 2, 2007, A-Hady purchased a Smith and Wesson .44 caliber handgun bearing serial number CEV4085 (the “.44 caliber”).
Subsequent to purchasing the firearms, A-Hady was convicted on April 2, 2012, in Monmouth County Superior Court, of attempting to obtain a controlled dangerous substance or analog by fraud, a crime punishable by more than one year in prison. As a result of that conviction, A-Hady is no longer permitted to possess a firearm.
On the evening of Dec. 13, 2019, law enforcement officers traveled to the pawnshop and interviewed A-Hady and two of his relatives. During the course of A-Hady’s interview, he admitted to owning both the .45 caliber and the .44 caliber, but falsely denied that they were on the premises.
After A-Hady was interviewed, one of his relatives (Relative-1) told law enforcement that there was a safe located inside Company A. Relative-1 further stated that the safe contained firearms, including A-Hady’s .44 and .45 caliber handguns. Relative-1 subsequently consented to a search of the safe located inside the pawnshop. Law enforcement recovered three firearms: (i) a PK 380; (ii) a Ruger 9mm bearing serial number 33389546; and (iii) the Smith and Wesson .44 caliber handgun bearing serial number CEV4085 referenced above.
Law enforcement then lawfully searched both the pawnshop and A-Hady’s private residence. During the search of the pawnshop, law enforcement recovered six rifles (including three AR-15-style assault rifles), three handguns, and one shotgun. In addition, during the searches of the pawnshop and A-Hady’s private residence, law enforcement recovered over 400 rounds of ammunition, including a large number of hollow point bullets.
The charge of being a previously convicted felon in possession of a firearm carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Craig Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the Office of the New Jersey Attorney General, under the direction of Attorney General Gurbir S. Grewal; and the N.J. State Police, under the direction of Col Patrick J. Callahan, with the investigation leading to the charge. U.S. Attorney Carpenito also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, the Jersey City Police Department, under the direction of Director James Shea, and the Keyport Police Department, under the direction of Chief Mark Hafner, for their assistance.
The government is represented by Ronnell Wilson, Chief of the National Security Unit of the U.S. Attorney’s Office for the District of New Jersey, and Assistant U.S. Attorneys Dean C. Sovolos and Thomas S. Kearney, also of the National Security Unit.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former CIO Sentenced to Two Years in Prison for Accepting Approximately $1 Million in Bribes for Awarding ContractsRead the Press Release
TRENTON, N.J. – A Roslyn, New York, man was sentenced today to 24 months in prison for demanding bribes in exchange for his assistance in securing contracts between a Texas financial services company and two New Jersey information technology staffing companies, U.S. Attorney Craig Carpenito announced.
Mark Berger, 59, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of conspiracy to violate the Travel Act. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From January 2011 through March 2013, Berger was the chief information officer of SWBC, a financial services company based in Texas, and had the ability and authority to hire certain companies to perform work. Berger entered into contracts between SWBC and two companies based in New Jersey, including DaVinci Technology Corp., for information technology and staffing services.
As a condition of the contracts, Berger demanded that the owner of the IT companies, Anthony Curlo of Chester, New Jersey, pay him a certain percentage of the monies that the companies would receive from SWBC.
The IT companies received approximately $3 million in revenue from SWBC. Under the terms of the illegal kickback arrangement between Berger and Curlo, Berger was supposed to receive $1.14 million in kickback payments. Berger actually received $985,000 in cash payments, which were delivered to his home in New York.
In addition to the prison term, Judge Shipp sentenced Berger to two years of supervised release.
Curlo previously pleaded guilty to his role in the scheme on Sept. 21, 2016 and is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: John Carman Esq., Garden City, New York
Doctor Described as ‘Candy Man’ and ‘El Chapo of Opioids’ Indicted for Distributing Opioids to PatientsRead the Press Release
NEWARK, N.J. – A Bergen County doctor has been indicted for distributing opioids without a legitimate medical reason and falsifying medical records to cover it up, U.S. Attorney Craig Carpenito announced today.
Robert Delagente, 45, of Oakland, New Jersey, was indicted on one count of conspiracy to distribute controlled dangerous substances, three counts of distribution of controlled dangerous substances, and one count of falsifying medical records. Delagente will be arraigned at a later date.
According to documents filed in this case and statements made in court:
Beginning in May 2014, Delagente was a doctor at a medical practice called North Jersey Family Medicine (NJFM) in Oakland, New Jersey. He allegedly described himself in conversations pertaining to his prescribing of painkillers as the “Candy Man” and the “El Chapo of Opioids.” Delagente knowingly prescribed controlled substances, such as oxycodone, Percocet, Tylenol with codeine, and various benzodiazepines (alprazolam, diazepam, clonazepam, and temazepam), outside the ordinary course of professional practice and without a legitimate medical purpose. He ignored the inherent danger and medical risk of overdose, drug abuse, and death that can accompany prescriptions of highly addictive opioids, benzodiazepines, and muscle relaxers, both on their own and in combination with one another.
Delagente prescribed controlled substances without ever seeing the purported patient for a medical visit or even discussing with the patient the medical need for the prescription. He allowed patients to ask him for controlled substances via text message and would write a prescription for patients that he would leave at the front desk, without requiring an office visit or consultation of any kind. He allowed patients to dictate the strength and dosage of the controlled substances he prescribed for them. Delagente also prescribed the dangerous drug combination known as the “Holy Trinity,” comprised of opioids (usually oxycodone), benzodiazepines (usually alprazolam) and muscle relaxers (usually carisoprodol).
Delagente failed to monitor patients for addiction and ignored drug screening tests to determine whether certain patients were taking illicit drugs. In fact, Delagente prescribed controlled substances to patients he knew were addicted to opioids or other controlled substances. In one instance, an NJFM employee texted Delagente that a patient had gotten a babysitter and driven a long distance to get to the practice, but had been unable to see a doctor. Delagente responded: “Oh well … C’est la vie! Lol … He can wait for his oral heroin another day. Lol.”
One patient texted Delagente that the patient “probably can’t stop the pk’s,” referring to painkillers. The patient told Delagente that the patient “would need a plan to stop…not cold turkey.” A few days later, when the patient was having trouble obtaining pain medication, the patient wrote to Delagente that “If I go 4 days without [painkillers] I am in huge trouble.” In response, Delagente wrote “I will leave you a short supply RX [prescription] at the front to pick up.” Delagente then wrote the patient a prescription for 120 tablets of 30-milligram oxycodone for 30 days. Delagente at one point told this patient: “I’m literally sticking my neck out and can lose my medical license or [be] arrested for what I just did.”
Delagente also was charged with altering medical records of patients who received controlled substance prescriptions from him after law enforcement officials had subpoenaed the records in late April 2019.
Delagente faces a maximum penalty of 20 years in prison and a $1 million fine on each of the distribution of controlled dangerous substances charges. Delagente faces a maximum penalty of 20 years in prison and a $250,000 fine on the count of falsifying medical records.
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 the charges.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Sean Sherman of the Opioids Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Marc Calello Esq., Bloomfield, New Jersey
Camden Man Sentenced to 45 Months in Prison for Role in Stolen Identity Refund Fraud Scheme and Obstruction of JusticeRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 45 months in prison for cashing fraudulently obtained tax refund checks issued by the U.S. Treasury, unlawfully utilizing the stolen identities of residents of Puerto Rico to effectuate the scheme, and tampering with a witness, U.S. Attorney Craig Carpenito announced.
Alberto Sanchez, 34, previously pleaded guilty before U.S. District Judge Robert B. Kugler to five counts of an indictment: two counts of theft of government funds, two counts of aggravated identity theft and one count of tampering with a witness or victim. Judge Kugler imposed the sentence today in Camden federal court.According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They then complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund. They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access. With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control or cashing the checks at check cashing businesses.
For the 2013 tax year, more than 3,300 SIRF tax returns were filed using the names and Social Security numbers of residents of Puerto Rico, and where the refunds were directed to be mailed to a small section of Pennsauken, New Jersey. Of the 3,300 returns filed, several of the refunds checks were issued and ultimately cashed at check cashing agencies in New Jersey, Philadelphia, and New York using false and fraudulent identifications, including fake New Jersey driver's licenses, fake Social Security cards, and fake Department of Homeland Security Permanent Resident Identification cards.
On March 28, 2018, Sanchez and others were indicted by a federal grand jury. According to the indictment, the defendants and their conspirators obtained stolen identities of residents of Puerto Rico to falsely and fraudulently generate income tax refund checks. The conspirators recruited mail carriers from the U.S. Postal Service as part of the scheme to steal the tax refund checks from the mail. The mail carriers were paid for every U.S Treasury check that was stolen. The conspirators paid “check couriers” to cash the tax refund checks in a variety of ways, including at check cashing businesses in and around Camden. The check couriers presented false and fraudulent identifications at the check cashing businesses matching the names on the tax refund checks in order to cash the checks. The scheme caused $565,091 in losses to the U.S. Treasury.
Sanchez admitted that during 2014, he cashed Treasury income tax refund checks that were issued to other people. He used an Alien Permanent Resident Identification Card, which had his photograph, but the name, address and identifying information of another individual, and a Social Security card, which had a name and Social Security number that matched the information on the income tax refund check. Sanchez also admitted that, upon finding out that another person was arrested for participating in the scheme, he told that person to lie to investigators.
In addition to the prison term, Judge Kugler sentenced Sanchez to three years of supervised release.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, Newark Field Office, and Special Agent in Charge Guy Ficco, Philadelphia Field Office; and special agents of the U.S. Postal Service 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 sentencing. He also thanked the U.S. Postal Inspection Service for its assistance with the investigation.
The government is represented by Assistant U.S. Attorney Jason M. Richardson and Assistant U.S. Attorney Christina O. Hud of the Criminal Division.
Defense counsel: Jose Luis Ongay Esq., Camden
Former CFO Arrested and Charged with Embezzling Millions of Dollars from Construction Company and Defrauding LendersRead the Press Release
NEWARK, N.J. – The former chief financial officer (CFO) of a Sussex County retail construction company was arrested today for defrauding the company and several lenders, including by embezzling millions of dollars for his own personal benefit, U.S. Attorney Craig Carpenito announced.
Jonathan Baker, 38, of Green Township, New Jersey, was indicted on five counts of wire fraud and three counts of money laundering. He was arrested this morning by special agents of the FBI and 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:
Baker held the title of CFO of Victim-Company 1, a small, privately held retail construction company located in Sparta, New Jersey. The company acted as a construction manager and a general contractor for construction projects, such as new business offices, retail spaces, and restaurants. Baker also held the title of manager of Victim-Company 2, which held 100 percent of the voting and equitable interest in Victim-Company 1.
From 2015 through 2018, Baker defrauded both companies and several commercial lenders, embezzling millions from the companies and fraudulently inducing commercial lenders into providing funds to Baker and his associated entities through fraudulent use of Victim-Company 1’s name, bank statements, balance sheet, and bank accounts.
Baker misappropriated millions of dollars from the Victim-Companies’ bank accounts and used the funds for his personal expenses, including mortgage payments on Baker’s residence, the purchase of a BMW, and the purchase of six donkeys. He also used the Victim-Companies’ credit cards to make unauthorized personal purchases.
Baker obtained funds by causing Victim-Company 1 to enter into agreements with commercial lenders through falsified documents, such as false resolutions of the Board of Directors of Victim-Company 1.
Baker concealed the fraud by making false statements to members of the Victim-Companies after they confronted him with evidence of the fraud. He falsely claimed that a commercial lender had made a mistake in filing a lien against Victim-Company 1 and repeatedly misrepresented that the commercial lender would be issuing a retraction and apology. Baker then refused to meet or join conference calls with the members of the companies to discuss the liens against Victim-Company 1, refused to produce the Companies’ bank statements, changed the locks on the Companies’ offices, and attempted to disable the Companies’ email and phone system.
The wire fraud counts each carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The money laundering counts each carry a maximum potential penalty of 10 years in prison and $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Courtney A. Howard of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Michael Weinstein Esq., Hackensack, New Jersey
Five Members of Drug Trafficking Organization IndictedRead the Press Release
CAMDEN, N.J. – A grand jury has returned an indictment against five members of a drug-trafficking organization for conspiring to distribute significant amounts of narcotics through an open-air drug market in Camden, U.S. Attorney Craig Carpenito announced today.
The indicted defendants include: Juan Figueroa, 22; Christopher Vasquez, 29; Jose Diaz, 27; and Jose Agron, 26, all of Camden; and Dwight Williams, 28, of Lumberton, New Jersey. The indictment charges each defendant with participating in a drug trafficking conspiracy that involved at least one kilogram of a mixture and substance containing heroin; at least 280 grams of a mixture and substance containing cocaine base (“crack cocaine”); and quantities of cocaine and fentanyl. Each defendant named in the indictment was previously charged by federal complaint.
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 four other defendants in this case remain pending, and they and the defendants indicted today are presumed innocent unless and until proven guilty.
According to documents filed in this case and statements made in court:
The FBI used surveillance, confidential informants, consensual recordings, multiple controlled drug purchases, a GPS vehicle tracker, search warrants of several different locations, and several court-authorized wiretaps to uncover the operations of a drug trafficking organization that dealt heroin, crack cocaine, cocaine, and fentanyl in and around Camden. The organization’s activities were concentrated on the 400-500 blocks of Pine Street, where members distributed drugs to customers who approached on foot and in vehicles. The organization also supplied drugs elsewhere, including in and around the residences of some of its members.
Members of the organization previously had conducted drug trafficking activities in and around the 1900 block of Filmore Street. After a fatal, drug-related shooting in that area in April 2017, local law enforcement increased their presence in the area and the drug-trafficking activities ultimately shifted to the area around Pine Street.
The investigation revealed that the organization’s members worked together in a multi-layered organization to supply drugs. The main role of Ronnie Lopez – one of the leaders of the organization – was to obtain bulk quantities of illegal drugs for sale to customers. The organization also had distributors and packagers, such as Carlos Perez and Nelson Salcedo, whose main roles were to obtain drugs from Lopez and others and to prepare and package the drugs for distribution downstream. The organization used “runners,” or managers, like Juan Figueroa and Paul Salcedo. These individuals obtained drugs from higher-level distributors and packagers within the organization and then provided those drugs downstream to shift managers like Jose Diaz and Christopher Vazquez. “Runners” also collected drug proceeds from lower-level shift managers and provided that money to higher-level members of the organization, such as Lopez. Shift managers, in turn, supervised the organization’s set workers, including Jose Agron, Dwight Williams, Elisa Rivera, Jasmin Velez, Kaliel Johnson, William Carrillo, Meylin Troncoso, Waldemar Garcia, Naeem Sadler, Jameel Byng, Ramon Velez and David Velez. These set workers sold drugs directly to customers and passed the proceeds up the organizational hierarchy.
Multiple communications intercepted by wiretaps reflected that members of the organization owned guns and were prepared to use them. In November 2018, law enforcement officers recovered firearms during the execution of several search warrants on locations related to the drug-trafficking organization. Juan Figueroa currently is facing several charges in Camden County Superior Court regarding the Aug. 7, 2018, shooting of two law enforcement officers, who were in an unmarked car and wearing plain clothes after having conducted surveillance earlier in the day on members of the organization. Also, some of the heroin that was purchased from the organization bore the same stamp as drugs found at the sites of drug overdoses in Camden, including two fatal overdoses.
The drug trafficking conspiracy count carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 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 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 New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s indictment. 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.
Defense counsel:
Juan Figueroa: Paul Sarmousakis Esq., Avalon, New Jersey
Vasquez: Edward J. Crisonino Esq., Collingswood, New Jersey
Diaz: John B. Brennan Esq., Marlton, New Jersey
Agron: Gil Scutti Esq., Somerdale, New Jersey
Williams: Justin Loughry Esq., CamdenTwo Ocean County Men Charged in Scheme to Distribute Cocaine, Gun PossessionRead the Press Release
NEWARK, N.J. – Two Ocean County, New Jersey, men were charged with possessing cocaine with the intent to distribute; one defendant was also charged with being a felon in possession of a firearm, U.S. Attorney Craig Carpenito announced today.
Mario Galli III, 27, and Jason Vella, 37, both of Toms River, New Jersey, are each charged by complaint with one count of possession with intent to distribute cocaine. Galli is also charged with one count of possession of a firearm by a convicted felon and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
On Sept. 19, 2019, investigators from the Ocean County Prosecutor’s Office executed search warrants on each of the defendants’ residences and recovered in excess of 150 grams of cocaine and drug paraphernalia, including digital scales, glassine envelopes, a money counter, baking soda, grinders, and $2,295 in cash. Also recovered from Galli’s residence was a FEG 9mm Model PGK-9HP gun loaded with 12 rounds of ammunition. At the time, Galli was on supervised release from a 2016 federal conviction for conspiracy to distribute in excess of 500 grams of cocaine.
The charge of possession of cocaine with intent to distribute carries a maximum penalty of 20 years in prison and a $250,000 fine. The count of being a felon in possession of a firearm carries a maximum penalty of 10 years in prison and a $250,000 fine. The count of possession of a firearm in furtherance of a drug trafficking crime carries a maximum penalty of five years in prison, which must be served consecutively to any sentence on the drug count and a $250,000 fine.
U.S. Attorney Carpenito credited the members of the FBI’s Organized Crime Task Force under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and investigators from the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, with the investigation leading to the charges.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney=s Office’s Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Brooklyn Men Charged in Strongarm Extortion SchemeRead the Press Release
TRENTON, N.J. – Two New York men were charged today with conspiracy to commit extortion using threats of force, violence, and fear, U.S. Attorney Craig Carpenito announced.
Francis A. Garzon, 30, and Endrit Kllogjeri, 26, both of Brooklyn, New York, are each charged by complaint with one count of conspiracy to commit extortion. Both individuals appeared today before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.
According to documents filed in this case and statements made in court:
From Dec. 1, 2019, through Dec, 9, 2019, Garzon and Kllogjeri, along with another unidentified individual, conspired to extort a resident of Monmouth County, New Jersey, -- “Victim 1” – and the resident’s son, who resided in Brooklyn. Victim 1 was allegedly threatened with physical harm if Victim 1 did not recover a bag containing property allegedly valued at $100,000 from Victim 1’s son, identified in the complaint as “Victim 2.” Garzon further demanded an additional payment of $100,000 as “interest” for Victim 2’s possession of the bag. In connection with issuing oral threats against Victim 1, including assuring that Victim 1 did not “know who [Victim 1 was] dealing with,” Garzon additionally brandished a revolver, pointing the weapon at Victim 1 before cocking the revolver’s hammer. In a series of telephone and in-person conversations over several days following the visit to Victim 1’s home, Garzon continued to threaten Victim 1, even sending Victim 1 cellphone messages containing photographs and videos of Victim 2 and Victim 2’s family.
The count of conspiracy to commit extortion carries a maximum potential penalty of up to 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, New Jersey, and the Marlboro Township Police Department, under the direction of Police Chief Peter Pezzullo, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Eric A. Boden of the U.S. Attorney’s Trenton Office.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three Men Arrested in $722 Million Cryptocurrency Fraud SchemeRead the Press Release
NOTE: A fourth defendant, Silviu Catalin Balaci, was arrested in Germany after the issuance of this press release. The attached indictment has been amended to reflect this.
NEWARK, N.J. – Three men were arrested today in connection with a cryptocurrency mining scheme that defrauded investors of $722 million, U.S. Attorney Craig Carpenito announced.
Matthew Brent Goettsche, 37, of Lafayette, Colorado, and Jobadiah Sinclair Weeks, 38, of Arvada, Colorado, are charged by indictment with conspiracy to commit wire fraud and Goettsche, Weeks, and Joseph Frank Abel, 49, of Camarillo, California, are charged by indictment with conspiracy to offer and sell unregistered securities. Goettsche was arrested in Colorado, Weeks in Florida, and Abel in California. All three are scheduled to have their initial appearances in the districts of their arrests. Two defendants remain at large and their identities remain under seal.
“The indictment describes the defendants’ use of the complex world of cryptocurrency to take advantage of unsuspecting investors,” U.S. Attorney Carpenito said. “What they allegedly did amounts to little more than a modern, high-tech Ponzi scheme that defrauded victims of hundreds of millions of dollars. Working with our law enforcement partners here and across the country, we will ensure that these scammers are held to account for their crimes.”
“Those arrested today are accused of deploying elaborate tactics to lure thousands of victims with promises of large returns on their investments in a bitcoin mining pool, an advanced method of profiting on cryptocurrency,” Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office said. “The defendants allegedly made hundreds of millions of dollars by continuing to recruit new investors over several years while spending victims' money lavishly.”
“Today’s indictment alleges the defendants were involved in a sophisticated Ponzi scheme involving hundreds of millions of dollars that preyed upon investors all over the world,” John R. Tafur, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “This was a classic con game with a virtual twist; false promises of large returns for investing in the mining of Bitcoin. IRS Criminal Investigation will continue to work with our law enforcement partners, including the Joint Chiefs of Global Tax Enforcement, to investigate and bring to justice cyber criminals.”
According to documents filed in this case and statements made in court:
From April 2014 through December 2019, the defendants operated BitClub Network, a fraudulent scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools and rewarded investors for recruiting new investors. Goettsche, Weeks, and others conspired to solicit investments in BitClub Network by providing false and misleading figures that BitClub investors were told were “bitcoin mining earnings,” purportedly generated by BitClub Network’s bitcoin mining pool. Goettsche discussed with his conspirators that their target audience would be “dumb” investors, referred to them as “sheep,” and said he was “building this whole model on the backs of idiots.” Goettsche directed others to manipulate the figures displayed as “mining earnings” during the course of the conspiracy.
For example, in February 2015, Goettsche directed another conspirator to “bump up the daily mining earnings starting today by 60%,” to which his conspirator warned “that is not sustainable, that is ponzi teritori [sic] and fast cash-out ponzi . . . but sure.” In September 2017, Goettsche sent an email to another conspirator in which he suggested that Bitclub Network “[d]rop mining earnings significantly starting now” so that he could “retire RAF!!! (rich as fuck).” Weeks sent an email in June 2017 to Goettsche and another conspirator in which he remarked that BitClub selling shares in BitClub and then not using the money to purchase mining equipment was “not right.” Goettsche, Weeks, and others obtained the equivalent of at least $722 million from BitClub Network investors.
Goettsche, Weeks, Abel, and others also conspired to sell BitClub Network shares – which were securities – notwithstanding that BitClub Network did not register the shares with the U.S. Securities and Exchange Commission. Weeks and Abel created videos and traveled around the United States and the world to promote BitClub Network. In one video, a conspirator espoused that BitClub Network was “the most transparent company in the history of the world that I’ve ever seen.” In another video, Abel assured investors that BitClub Network was “too big to fail.”
The wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison, and a fine of up to $250,000. The conspiracy to sell unregistered securities charge carries a maximum penalty of five years in prison and a fine up to $250,000.
U.S. Attorney Carpenito credited special agents and task force officers of the FBI’s Los Angeles Division’s West Covina Resident Agency, under the direction of Acting Assistant Director in Charge Delacourt; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark; and the IRS Los Angeles Field Office, under the direction of Special Agent in Charge Ryan L. Korner, with the investigation leading to today’s charges.
Anyone who believes they may be a victim may visit www.justice.gov/usao-nj/bitclub or the Department of Justice’s large case website www.justice.gov/largecases. There, victims can find more information about the case, including a questionnaire for victims to fill out and submit.
The government is represented by Unit Chief David W. Feder and Assistant U.S. Attorneys Anthony P. Torntore and Jamie L. Hoxie, of the Cybercrime Unit, and Unit Chief Sarah Devlin of the Asset Recovery and Money Laundering Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Staten Island Man Admits Robbery, Identity Theft, and Defrauding Numerous Women and BusinessesRead the Press Release
NEWARK, N.J. – A Staten Island, New York, man has admitted robbing a New Jersey business owner in February 2019, defrauding eight New Jersey businesses from July 2016 through January 2019, and defrauding and stealing the identities of three women, U.S. Attorney Craig Carpenito announced today.
Raymond Scura, 30, pleaded guilty before Judge Claire C. Cecchi in Newark federal court on Dec. 9, 2019, to an information charging him with wire fraud affecting a financial institution, aggravated identity theft, and Hobbs Act robbery.
According to the documents filed in this case and statements made in court:
Scura used bad checks and stolen credit cards to obtain goods and services, such as a country club membership, limousine services, luxury hotel expenses, exotic car rentals, and a Rolex watch, in order to appear wealthy and obtain the confidence of his victims, often targeting women. Once he convinced his victims of his purported wealth, he would then steal their identities and accounts to make additional purchases. As a result of his fraud and aggravated identity theft offenses, Scura caused losses to individuals and businesses in excess of $250,000
In February 2019, Scura was a customer of an internet-based business owned and operated by a New Jersey man. To pay for the services of the business, Scura wrote at least one fraudulent check to the victim. When the victim insisted on cash payment, Scura drove with the business owner to a bank, where Scura brandished a gun, threatened to kill the victim, and demanded that the victim deposit a fraudulent check for $10,000 into the victim’s bank account and then withdraw $10,000. The victim did as Scura directed and then gave Scura the $10,000.
The Hobbs Act robbery charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud affecting a financial institution charge carries a statutory maximum of 30 years in prison, and the aggravated identity theft charge carries a mandatory minimum sentence of two years in prison, which must be served consecutively to any other sentenced imposed. Sentencing is scheduled for April 1, 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 members of the Belleville Police Department, under the direction of Chief of Police Mark Minichini, with the investigation leading to the guilty plea. He also thanked the Summit Police Department, the Union County Prosecutor’s Office, the Burlington County Prosecutor’s Office, and the Evesham Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Christopher Amore of the Organized Crime and Gangs Unit and Elaine Lou of the U.S. Attorney’s Office in Newark.
Defense counsel: Saverio Viggiano Esq., Assistant Federal Public Defender, Newark
Defense Contractor Admits Filing False Documents Relating to Machine Gun ContractRead the Press Release
NEWARK, N.J. – The former chief operating officer of a New Jersey custom manufacturing firm admitted today that he made false statements and submitted false documents to the Department of Defense in fulfillment of a machine gun bipod assembly contract, U.S. Attorney Craig Carpenito announced.
Mark Colello, 54, of Hackettstown, New Jersey, pleaded guilty before U.S. District Judge William Martini in Newark federal court to an information charging him with two counts of making false statements and representations.
According to documents filed in this case and statements made in court:
In April 2015, Colello’s company was awarded government contracts by the U.S. Army, Department of Defense, to manufacture bipod assemblies for the M249 light machine gun that required the use of a specific grade of steel. Colello falsified test results for the hardness of steel used to construct the bipod assemblies and for the magnetic particle inspection of the head and collar joints for the bipods. The weaker grade steel and the faulty head and collar joints caused the legs of the bipods to fail when soldiers attempted to use them to support their machine guns.
The count of making false statements carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 28, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; and U.S. Army Criminal Investigations Command, Major Procurement Fraud Unit, under the direction of Special Agent in Charge L. Scott Moreland, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Margaret Mahoney of the National Security Unit.
President and Chief Financial Officer of New Jersey Company Charged with $17 Million Fraud SchemeRead the Press Release
NEWARK, N.J. – The president and the chief financial officer of a now defunct New Jersey-based marble and granite wholesaler have been arrested for allegedly orchestrating and participating in a scheme to defraud a bank in connection with a $17 million secured line of credit, U.S. Attorney Craig Carpenito announced.
Rajendra Kankariya, 61, of Tenafly, New Jersey, and Rakesh Sethi, 44, of Basking Ridge, New Jersey, are charged by complaint with one count each of conspiracy to commit wire fraud affecting a financial institution. Both defendants made their initial court appearances today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and were each released on $500,000 bonds secured by property.
According to documents filed in this case and statements made in court:
From late 2015 to early 2016, Lotus Exim International Inc. (LEI) obtained from the victim bank a $17 million line of credit to discharge a prior debt and gain working capital. The line of credit was to be secured by LEI’s accounts receivable and assets. In reality, LEI’s accounts receivable and assets were insufficient to serve as collateral for the line.
In order to conceal the lack of sufficient collateral, LEI and its employees, including Kankariya and Sethi, devised a scheme to create fake email addresses on behalf of LEI’s customers so they could pose as those customers and answer the bank’s and outside auditor’s inquiries about the accounts receivables. The scheme involved numerous fraudulent accounts receivable where the outstanding balances were either inflated or entirely fabricated. The scheme caused the victim bank losses of approximately $17 million.
Conspiracy to commit wire fraud affecting a financial institution carries a maximum potential penalty of 30 years in prison and a fine of $1 million or twice the gross gain or loss derived from the offense, whichever is greater.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Economic Crimes Unit in Newark.The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Kankariya: Michael Baldassare Esq., Newark
Sethi: Danielle M. Corcione Esq., West Orange, New JerseyPassaic County Man Charged with Distribution, Receipt, and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man has been indicted on charges of distributing, receiving, and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced today.
Vaughn Tiedeman, 46, of West Milford, New Jersey, is charged by indictment, returned by a federal grand jury on Dec. 4, 2019, with one count of distributing child pornography, one count of receiving child pornography, and one count of possessing child pornography. Tiedeman was initially charged by complaint in April 2019.
According to documents filed in this case and statements made in court:
Between July 2018 and January 2019, Tiedeman used the BitTorrent peer-to-peer file-sharing network to distribute more than 50 video files and 100 image files containing images of child sexual abuse. On April 1, 2019, law enforcement executed a search warrant at Tiedeman’s home and found approximately 6,800 unique still images and 120 unique videos containing images of child sexual abuse.
The distribution and receipt charges each carry a mandatory minimum penalty of five years in prison and a maximum penalty of 20 years in prison and a $250,000 fine. The charge of possession of child pornography carries a maximum penalty of 10 years in prison and a $250,000 fine.
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 Michael, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Michael A. Orozco Esq., Woodcliff Lake, New Jersey
Grape Street Crips Member Sentenced to Life in Prison for Murder of Bystander and Related Drug-Trafficking ChargesRead the Press Release
NEWARK, N.J. – A member of the Grape Street Crips gang was sentenced today to life in prison for murder in aid of racketeering, racketeering conspiracy, conspiracy to distribute heroin, and other drug crimes, U.S. Attorney Craig Carpenito announced.
Khalil Stafford, a/k/a “Stod,” a/k/a “Homicide,” 35, of Newark, was previously convicted following a three-week trial before U.S. District Judge Madeline Cox Arleo, who imposed the sentence today in Newark federal court. Stafford had been acquitted of the murder charge following a 2013 state jury trial in Essex County.
According to documents filed in this case and the evidence at trial:
On June 19, 2010, during a family cookout on Garside Street in Newark, Stafford – a long-time member of the Grape Street Crips – confronted an individual about a drug debt. Stafford and several other gang-members left the cookout to retrieve firearms and later returned. They fired more than a dozen shots at the person whom Stafford originally confronted. A woman who was not involved in the dispute was standing on a nearby porch, and was shot and killed. Two other people were wounded and survived.
Stafford sold heroin and cocaine at the James Baxter Terrace housing complex from 2003 until it was demolished in 2009. After Baxter Terrace was torn down, Stafford continued to distribute heroin and cocaine at the Wynona Lipman public housing complex. In 2014, Stafford and a conspirator sold to DEA confidential informants nearly $20,000 worth of heroin in separate transactions.Stafford was charged – along with 13 other defendants –with RICO conspiracy, murder in aid racketeering, conspiracy to distribute one kilogram or more of heroin, and possession with intent to distribute one kilogram of more of heroin. All 14 defendants have now been convicted.
Another 66 members and associates of the Grape Street Crips who were arrested in a coordinated takedown in May 2015 were separately charged with drug-trafficking, physical assaults, and witness intimidation, and all have been convicted. These individuals include:
• Corey Hamlet, a/k/a “C-Blaze,” 41, of Newark, sentenced to life in prison;
• Kwasi Mack, a/k/a “Welches,” 30, of Newark, sentenced to 45 years in prison and five years’ supervised release;
• Tony Phillips, a/k/a “Blue,” 28, of Newark, sentenced to life in prison;
• Ahmad Manley, a/k/a “Fresh,” 32, of Summit, New Jersey, sentenced to 35 years in prison and five years’ supervised release;
• Rashan Washington, a/k/a “Shoota,” 31, of Newark, sentenced to 30 years in prison and ten years’ supervised release;
• Justin Carnegie, a/k/a “Dew Hi,” 31, of Newark, sentenced to 25 years in prison and ten years’ supervised release;
• Ahmed Singleton, a/k/a “Gangsta Mu,” 30, of Newark, sentenced to 19 years in prison and five years’ supervised release;
• Eric Concepcion, a/k/a “Wax,” 33, of Newark, sentenced to 18 years in prison and five years’ supervised release;
• Hakeem Vanderhall, a/k/a “Keem,” 34, of Newark, sentenced to 18 years in prison and five years’ supervised release;
• Hanee Cureton, a/k/a “City,” 34, of Springfield, New Jersey, sentenced to 12 years in prison and five years’ supervised release; and
• James Gutierrez, a/k/a “Bad News,” 27, of Newark, sentenced to 11 years in prison and five years’ supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, and special agents of the U.S. Attorney’s Office with the investigation leading to today’s sentencing. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sherriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance with the investigation.The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto, Chief of the Organized Crime and Gangs Unit within the Criminal Division in Newark, and Assistant U.S. Attorney Richard J. Ramsay of the Appeals Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. 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.
Defense counsel: John McMahon Esq., West Orange, New Jersey
Louisiana Man Charged with Illegally Accessing Thousands of Laboratory ReportsRead the Press Release
NEWARK, N.J. – A Louisiana man was arraigned today on charges that he illegally accessed a healthcare company’s online portal and downloaded more than 60,000 laboratory reports belonging to more than 30,000 patients, U.S. Attorney Craig Carpenito announced.
David Manno, 34, of Marrero, Louisiana, appeared before U.S. District Judge Katharine S. Hayden in Newark federal court and pleaded not guilty. He was indicted by a federal grand jury on Nov. 19, 2019, on one count of wire fraud.
According to documents filed in this case and statements made in court:
The victim was a publicly traded healthcare company with its headquarters in New Jersey. The company offered a web-based portal through which patients could access their medical and health information, schedule laboratory testing, track their healthcare provider information, maintain medical records, and pay for services. Patients were able to log in to the portal by using a unique username and password. In November 2016, Manno accessed the portal and sent requests that caused the portal to send him lab reports belonging to other patients. Manno sent more than 150,000 modified requests, causing the portal to send him more than 60,000 laboratory reports for more than 30,000 patients.
The wire fraud count with which Manno is charged carries a maximum potential punishment 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 FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, 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 Cybercrime Unit in Newark.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: David Courcelle Esq., Metairie, Louisiana
Justice Department Announces more than $376 Million in Awards to Promote Public SafetyRead the Press Release
NEWARK, N.J. – The Department of Justice today announced that it has awarded more than $376 million in grant funding to enhance state, local and tribal law enforcement operations and reinforce public safety efforts in jurisdictions across the United States, including $4,561,569 to support public safety activities in the District of New Jersey. The awards were made by the Department’s Office of Justice Programs.
“These awards provide substantial resources to support important public safety initiatives sponsored by our state and local law enforcement partners,” U.S. Attorney Craig Carpenito, District of New Jersey, said. “This kind of support from the Department of Justice encourages greater cooperation among federal, state and local law enforcement, as we work together to protect the people of New Jersey.”
The awards announced today support an array of crime-fighting initiatives, including the quarter-billion dollar Edward Byrne Justice Assistance Grants Program, which funds public safety efforts in 929 state, local and tribal jurisdictions. Funding also supports sex offender registration and notification, law enforcement-based victim services, the testing of sexual assault kits, and programs designed to address youth with sexual behavioral problems. Other awards will focus on wrongful convictions, intellectual property enforcement, innovative prosecution strategies and the safety and effectiveness of corrections systems.
“Crime and violence hold families, friends and neighborhoods hostage, and they rip communities apart,” OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan said. “These programs help restore the health and safety of crime-ravaged communities by supporting prevention activities, aiding in the apprehension and prosecution of perpetrators, facilitating appropriate sentencing and adjudication, and providing communities and their residents the means for recovery and healing.”
The following awards were made to organizations in the District of New Jersey:
Edward Byrne Justice Assistance Grant Program – Local Awards
• Union County, $167,387
• City of Passaic, $180,339
• Asbury Park, $51,346
• Mercer County, $131,756
• Newark Police Department, $434,882
• City of Camden, $208,291
• Vineland, $82,671
• Lakewood, $15,572
• Atlantic City, $68,318
• Perth Amboy, $86,689
Edward Byrne Justice Assistance Grant Program – State Award
• New Jersey Division of Law & Public Safety, $3,817,827
BJA Intellectual Property Enforcement Program: Protecting Public Health, Safety, and the Economy from Counterfeit Goods and Product Piracy
• Essex County Prosecutor’s Office, $350,345
BJA Implementing the Prison Rape Elimination Act Standards, Protecting Inmates, and Safeguarding Communities Program
• New Jersey Dept. of Corrections, $246,146
Information about the programs and awards announced today is available here. For more information about OJP awards, visit the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Camden County Man Charged with Being Felon in Possession of Weapon, Unlawfully Possessing Fake Law Enforcement CredentialsRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man previously convicted of multiple felony offenses, including robbery, burglary, and aggravated assault, was indicted today for unlawful possession of a handgun and possessing fake law enforcement officer credentials, U.S. Attorney Craig Carpenito announced.
Warren E. Shelton, 53, of Chesilhurst, New Jersey, is charged with one count of unlawful possession of imitation badges, identification cards, and other insignia prescribed for use by officers of a department or agency of the United States, and one count of possession of a firearm by a convicted felon. He will be arraigned at a later date.
According to documents filed in this case and statements made in court:
Law enforcement authorities learned Shelton had designed and acquired counterfeit Department of Homeland Security, Federal Protective Service (FPS), credentials and business identification cards, falsely representing that he was employed as a special agent with FPS.
During a court-authorized search of Shelton’s home in May 2018, investigators located and seized counterfeit FPS credentials, business identification cards, and a badge falsely representing that Shelton was employed as a special agent and authorized to carry a weapon and enforce federal laws. They also located a Colt .45 caliber handgun and ammunition along with two blank guns that resembled real firearms. As a previously convicted felon, Shelton is prohibited from possessing a firearm. Shelton was charged by criminal complaint on May 7, 2018 with being a felon in possession of a firearm and has been detained since.
Shelton faces a maximum potential penalty of 10 years in prison and a fine of up to $250,000 for the firearm offense. He also faces up to six months in prison and fine of up to $5,000 for possession of the counterfeit FPS credentials and badge.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security (DHS), Office of Inspector General (OIG), under the direction of Acting Special Agent in Charge Karen Jordan; special agents of the Department of Homeland Security, Federal Protective Services (FPS), under the direction of Supervisory Special Agent Anthony Fuscellaro; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; special agents of the U.S. Secret Service, Philadelphia Field Office, under the direction of Special Agent in Charge James Henry; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Charlie J. Patterson; and the Camden County Police Department, under the direction of Chief Joseph Wysocki.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Thomas Young Esq., Camden
Pastor and President of Louisiana Religious College Charged with Sexual AssaultRead the Press Release
NEWARK, N.J. – The president of a bible college will appear in court today on charges he sexually assaulted a student on an international flight bound for Newark, U.S. Attorney Craig Carpenito announced.
Cornelius Tilton, 65, of New Orleans, Louisiana, was charged by complaint with one count of abusive sexual contact after being arrested by FBI agents on Nov. 30, 2019, when the flight, which departed from Tel Aviv, Israel, arrived at Newark Liberty International Airport. He is scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to documents filed in this case and statements made in court:
Tilton was sitting in a window seat next to the victim, a 19-year-old male student at a theological seminary who was traveling with a group of students on a religious trip to Israel. Tilton accompanied the group as an unofficial guide and gave speeches.
During the flight, Tilton allegedly placed his hand on the victim’s bare calf. Tilton continued to touch the victim’s thigh, and eventually began rubbing the victim’s genitals over the victim’s shorts. The victim did not react, or look at Tilton, out of shock and fear. Tilton took the victim’s hand and placed it on Tilton’s erect penis, on top of his clothing. The victim got up to go to the bathroom, in hopes of ending the assault. Tilton also went to the bathroom. When the victim and Tilton were back in their seats, Tilton continued to touch the bare skin of the victim’s lower back, underneath the victim’s clothing. Tilton moved his hand around to the front of the victim’s waistline, and attempted to place his hand down the victim’s pants, when the victim blocked Tilton’s hand with his elbow. The victim then got up from the seat and informed a flight attendant about the assault.
The charge of abusive sexual contact carries a maximum sentence of two years in prison or a fine of up to $250,000, or both.
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 the charges.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bergen County Man Sentenced to Five Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 60 months in prison for distributing and possessing videos and images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Malcolm Salamanca, 29, of Ridgefield, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of distribution of child pornography and one count of possession of child pornography. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:Salamanca used a peer-to-peer file-sharing program to download and share videos and images of child sexual abuse. In November 2016, undercover law enforcement agents downloaded some of those images and videos from Salamanca’s computer. After executing a search warrant at Salamanca’s home in November 2017, agents located more videos of child sexual abuse on Salamanca’s computers.
In addition to the prison term, Judge Salas sentenced Salamanca to five years of supervised release and imposed a special assessment of $10,000 under the Justice for Victims of Human Trafficking Act.
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 Michael in Newark, with the investigation leading to today’s sentencing. He also thanked the Bergen County Prosecutor’s Office, the Ridgefield Police Department and the U.S. Postal Inspection Service for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim, Chief of the Opioids Unit in Newark.
Defense counsel: Paul Brickfield Esq., River Edge, New Jersey
Passaic County Man Admits Role in Conspiracy to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted conspiring to distribute 400 grams or more of fentanyl, U.S. Attorney Craig Carpenito announced.
Felix Acevedo, 28, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden to one count of possession with intent to distribute 400 grams or more of fentanyl.
According to documents filed in this case and statements made in court:
From March 2018 through March 2019, Acevedo conspired with others to distribute 400 grams or more of fentanyl. On Feb. 20, 2019, he took possession of a parcel that had been shipped to him at an address in Clifton, New Jersey. Acevedo believed the parcel contained narcotics, which he planned to deliver to a conspirator. Unbeknownst to Acevedo, law enforcement had interdicted the parcel prior to its delivery and removed the 997 grams of fentanyl contained within.
The count to which Acevedo pleaded guilty carries a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for March 2, 2020.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, and the inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s guilty plea.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
Members of Newark’s ‘Famous Boyz’ Street Gang Admit Drug and Firearms OffensesRead the Press Release
NEWARK, N.J. – Members of the “Famous Boyz” street gang have admitted to firearms and narcotics distribution offenses as part of a drug trafficking conspiracy, U.S. Attorney Craig Carpenito announced today.
Shaka McKinney, 25, of Newark, pleaded guilty today before U.S. District Judge Madeline Cox Arleo to an information charging him with being a felon in possession of a firearm. He faces a maximum term of imprisonment of 10 years and a maximum fine of $250,000.
Jahid Vauters,” a/k/a “k”, a/k/a “KO,” 31, of Newark, pleaded guilty Nov. 25, 2019, before Judge Arleo to an information charging him with one count each of: conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin and 28 grams or more of cocaine base; possession with intent to distribute 28 grams or more of cocaine base; possessing two firearms and ammunition as a convicted felon; and possessing two firearms in furtherance of a drug trafficking crime. As part of his plea agreement, the parties have agreed to a sentence of 10 years in prison.
Karen Armstrong, 29, of Newark, pleaded guilty before Judge Arleo on Nov. 7, 2019 to an information charging her with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and heroin.
Eugene Williams, a/k/a “Popa,” a/k/a “Papa,” 53, of Newark, pleaded guilty before Judge Arleo on Nov. 7, 2019, to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base and one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin.
Saeed Dawes, a/k/a “Nasty,” 22, of Newark, pleaded guilty before Judge Arleo on Nov. 6, 2019, to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and heroin.
In October 2018, McKinney, Vauters, Armstrong, Williams, and Dawes, and 12 other members of a violent drug trafficking conspiracy operating in Newark were charged by criminal complaint after a lengthy wiretap investigation with conspiracy to distribute crack cocaine and/or heroin. McKinney and Vauters were also charged with firearms offenses.
On Feb. 25, 2019, a grand jury returned a one-count indictment charging three of the defendants, Patricio Hernandez, Jonathan Hernandez, and Jonathan Garcia, a/k/a “Bebo,” with conspiracy to distribute and to possess with intent to distribute 280 grams or more of crack cocaine for their alleged participation in supplying the “Famous Boyz” with cocaine.
On Sept. 30, 2019, a grand jury returned a 21-count superseding indictment against the remaining defendants and Patricio Hernandez, Jonathan Hernandez, Garcia, Javon Holmes, a/k/a “J-Dot”, and John Mosley, a/k/a “Breezy,” a/k/a “Brazy.” The charges in the superseding indictment are pending against the remaining defendants.
According to the documents filed in this case and statements made in court:
The defendants are members and associates of the Famous Boyz – a subset of the Brick City Brims set of the Bloods street gang – which dealt significant quantities of heroin and crack cocaine, in the area of South 18th Street and 15th Avenue, in Newark. The gang often referred to this area as the “8 Block,” “18th,” or simply by reference to the number “8.”
Mosley was a primary source of narcotics for the Famous Boyz and often directed the gang’s drug operations. He and other members of the Famous Boyz shared narcotics, customers, and firearms with one another in furtherance of their narcotics trafficking activities, and they used juveniles to distribute narcotics and stash firearms. Patricio Hernandez and Jonathan Hernandez were among the main suppliers of crack cocaine to Mosley, while Vauters supplied Mosley with heroin. Heroin sold by Famous Boyz members, including Dawes, Armstrong and Williams, contained a fentanyl analogue, which is an extremely dangerous and highly addictive substance.
Members of the Famous Boyz used social media to promote the gang’s criminal activities, including by advertising their narcotics trafficking activities and proceeds and by threatening both rival gang members and any individuals who considered cooperating with law enforcement. Those members who sold narcotics also enriched themselves by committing other crimes, including robberies.
The heroin and crack cocaine conspiracy and heroin and crack cocaine distribution counts to which Vauters pleaded guilty each carry a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. In addition, the firearm possession count to which Vauters pleaded guilty carries a statutory mandatory minimum term of five years in prison, which must run consecutive to any other punishment.
The crack cocaine conspiracy count to which Williams pleaded guilty carries a maximum penalty of life imprisonment, and a maximum fine of $10 million. The heroin conspiracy to which Williams pleaded guilty carries a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million.
The heroin and crack cocaine conspiracy counts to which Dawes and Armstrong pleaded guilty each carry a maximum penalty of 20 years in prison, and a maximum fine of $1 million.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark, and officers of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation.
He also thanked the special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Belleville Police Department, under the direction of Chief Mark Minichini; and the Livingston Police Department, under the direction of Chief Gary Marshuetz, for their assistance with the investigation.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Deputy Chief of the Criminal Division Mary E. Toscano and Assistant U.S. Attorney Angelica M. Sinopole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations against the remaining defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Albanian National Admits use of Fraudulent United States PassportRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted that he used a fraudulently made United States passport to travel abroad, U.S. Attorney Craig Carpenito announced.
Jetmir Memija, a/k/a “Shefki Hoti,” 42, an Albanian national residing in Edgewater, New Jersey, pleaded guilty before U.S. District Court Judge Susan D. Wigenton to an information charging him with one count of using a fraudulently made passport.
According to documents filed in this case and statements made in court:
On July 11, 2011, Memija, who had illegally entered the United States in 1996, applied for a United States passport. He submitted false information regarding his date of birth and Social Security number. Memija submitted the personal identifying information of a family member along with his photograph. A United States passport book was issued to Memija based on this false information, which he used to gain entry into the Republic of Albania.
The passport fraud charge carries a maximum potential sentence of 10 years in prison. Sentencing is scheduled for March 2, 2020.
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 Michael, Newark, with the investigation leading to today’s guilty plea. He also thanked the U.S. Citizenship and Immigration Services, Fraud Detection and National Security Directorate, Newark; and Immigration and Customs Enforcement-Enforcement and Removal Operations for their assistance.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S Attorney’s Office National Security Unit in Newark.
Owner of Empire Pharmacy in Hudson County Admits Role in Multi-Million Dollar Conspiracies to Commit Health Care Fraud and Pay Illegal Bribes to DoctorRead the Press Release
TRENTON, N.J. – A Bergen County, New Jersey, man today admitted participating in conspiracies to commit health care fraud and to bribe a doctor, U.S. Attorney Craig Carpenito announced.
Eduard “Eddy” Shtindler, 36, of Paramus, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to pay illegal kickbacks to a doctor.
According to documents filed in this case and statements made in court:
From 2012 through at least 2017, Shtindler owned and operated the now-defunct Empire Pharmacy in West New York, New Jersey. Starting in 2015, Empire began filling prescriptions for expensive specialty medication that required “prior authorization” before being approved for reimbursement payment by Medical, Medicaid, and some private insurance providers. To entice doctors to use Empire to fill such medications, Shtindler planned to have Empire receive prior authorization approval more successfully than any other pharmacies. He directed Empire employees, including two pharmacists, to repeatedly falsify prior authorization forms for medications for different conditions, including psoriasis and Hepatitis C. Shtindler was captured on recorded conversations admitting to his and Empire’s practice of falsifying prior authorization forms in order to receive approval for medication that would not have otherwise been approved.
From 2012 through early 2017, Shtindler participated in a conspiracy to pay bribes to a psychiatrist in Hudson County, New Jersey, to induce the doctor to send prescriptions to Empire. Shtindler sent Empire employees to deliver some of the bribe payments to the doctor. On occasion, Shtindler secreted cash bribes, in $100 denominations, in pill bottles that were delivered to the doctor. In exchange for these bribes, the doctor steered patients to use Empire pharmacy, even though the patients used other pharmacies closer to their homes for all of their other prescriptions. In one recorded conversation between Shtindler and a concerned former Empire employee who had delivered a bribe to the doctor on Shtindler’s behalf, Shtindler was captured stating, “You think [the doctor]’s going to go to the FBI and rat himself out?” In another conversation with the same former employee regarding the same topic of bribe payment Shtindler had the employee deliver to the doctor, Shtindler was captured saying, “First off, I didn’t make you do it. I didn’t put a gun to your head. We all made money together.” Shtindler concluded, “It is business.”
As part of his plea agreement, Shtindler agreed to loss amounts between $1.5 million and $3.5 million for each of the charged conspiracies to which he pleaded guilty.
The count of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and the count of conspiring to pay illegal kickbacks is punishable by a maximum of five years in prison. Both offenses are punishable by a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 24, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the N.J. Office of the State Comptroller, under the direction of Comptroller Philip James Degnan, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Joshua L. Haber of the Health Care & Government Fraud Unit of the U.S. Attorney’s Office in Newark.
Defense counsel: Albert Y. Dayan. Esq., Queens, New York
Morris County Man Sentenced to Two Years in Prison for Possessing Bombs and Being Felon in Possession of GunsRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was sentenced today to 24 months in prison for being a felon in possession of guns, possessing bombs, and precursor materials, U.S. Attorney Craig Carpenito announced.
Christopher Faschan, 31, of Landing, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of unlawful possession of destructive devices and one count of being a felon in possession of firearms and ammunition. Judge Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Feb. 1, 2019, Faschan detonated the bomb in the area of Lake Lackawanna in Stanhope. On Feb. 4, 2019, law enforcement agents interviewed Faschan, who said that he had ignited the bomb. He described it as two pounds in weight and explained how he used and mixed Potassium Perchlorate, Aluminum Powder, and Tannerite to make several bombs that were in his home.
Law enforcement agents executed a court-authorized search of Faschan’s home and recovered a cache of weapons, ammunition, firearms, explosive devices and precursor materials.
In addition to the prison term, Judge Martinotti sentenced Faschan to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; officers of the Byram Police Department, under the direction of Chief Peter J. Zabita; the Roxbury Police Department, under the direction of Chief Marc Palanchi; the Sussex County Prosecutor’s Office, under the direction of Prosecutor Francis A. Koch; officers of the Morris County Sheriff’s Office, under the direction of Sheriff James M. Gannon; and officers of the Morris County Prosecutor’s Office, under the direction of Prosecutor Frederic M. Knapp, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit.
Defense counsel: John Whipple Esq., Morristown, New Jersey
Essex County Man Charged with Production, Receipt, and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man appeared in court today on charges of producing, receiving, and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Ramon Zelaya, 36, of Newark, is charged by indictment with one count of sexual exploitation of a child, one count of receiving child pornography, and one count of possessing child pornography. Zelaya was initially charged by complaint in April 2019.
According to documents filed in this case and statements made in court:
Between Aug. 20, 2018, and Sept. 23, 2018, Zelaya used Instagram messages to entice, threaten, and coerce a minor into creating and sending him sexually explicit images and videos. Zelaya also used multiple Facebook accounts to contact the victim’s parent and to send at least nude image of the victim.
The charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years in prison, and a $250,000 fine. The charge of receipt of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum penalty of 10 years in prison and a $250,000 fine.
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 Michael, and officers of the Union City Police Department, under the direction of Chief Nichelle Luster, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Real Estate Developer and Property Manager Charged in Ponzi Scheme to Defraud Investors Out of Millions of DollarsRead the Press Release
NEWARK, N.J. – A property developer and manager has been arrested on charges stemming from a scheme to defraud real estate investors, U.S. Attorney Craig Carpenito announced today.
Herbert Whalen a/k/a “Bert Whalen,” 45, of Indianapolis, Indiana, was indicted by a federal grand jury on November 20, 2019, on one count of conspiracy to commit wire fraud and three counts of wire fraud. Whalen was arrested Nov. 21, 2019, and is scheduled to appear this afternoon before U.S. Magistrate Tim A. Baker in Indianapolis, Indiana. His arraignment date in Newark federal court has not yet been scheduled.
According to the indictment:
Between August 2016 and July 2018, Whalen, the owner of Oceanpointe Property Management in Indianapolis, Indiana, engaged in a scheme to obtain money from victim real estate investors by misrepresenting and concealing the poor condition of properties managed by Oceanpointe and by creating fake leases for unoccupied Oceanpointe properties. Employees from Company 1 and Oceanpointe promised investors that, after repairs and rehabilitations were completed, and tenants rented the properties, investors would receive copies of the leases and begin to receive rent payments as their return on investment. In reality, many Oceanpointe properties were not repaired and rehabilitated, and were not ready for occupancy. To conceal this fact from victim investors, Whalen and Coconspirator 1 directed Oceanpointe employees to draft fake leases, making it appear to investors that Oceanpointe properties were rented, when, in fact, the properties remained vacant. Whalen instructed Oceanpointe employees to place fake tenant names on leases to send to Oceanpointe investors.
When investors attempted to view the properties that they had purchased, Whalen directed Oceanpointe employees to cover the windows to make the properties appear to investors as if work was being completed, when, in fact, it was not. Oceanpointe employees did this to conceal the poor condition of the properties and the fact that the properties remained vacant. Whalen, Coconspirator 1, and others commingled tenant rent payments and selected which investors would be paid from the pool of funds in order to silence investors who voiced concerns and evade detection of the fraud. In order to prevent investors from leaving Oceanpointe and exposing the fraudulent conduct, Whalen directed an Oceanpointe employee to create a false identity and falsely claim, on an online real estate message forum, that the Oceanpointe employee was an investor with Oceanpointe and Company 1, and that Oceanpointe had addressed all of the concerns regarding the investment property. These misrepresentations and others led to millions of dollars in losses to investors, which Whalen used to, among other things, fund his and Coconspirator 1’s lifestyle.
The conspiracy count and the three counts of wire fraud with which Whalen is charged each carry a maximum potential punishment 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 FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New Jersey/Pennsylvania Doctor Pleads Guilty to Accepting Bribes and Kickbacks in Exchange for Prescribing Powerful Fentanyl DrugRead the Press Release
A doctor who practiced in New Jersey and Pennsylvania pleaded guilty today for his participation in a scheme to receive over $140,000 in bribes and kickbacks from a pharmaceutical company in exchange for prescribing large volumes of a powerful fentanyl narcotic.
Assistant Attorney Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Field Office, Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Office of Investigations – New York Region, Special Agent in Charge Susan A. Gibson of the Drug Enforcement Administration’s (DEA) New Jersey Division, Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service – Office of Inspector General (USPS-OIG) and Special Agent in Charge Michael C. Mikulka of the U.S. Department of Labor Office of Inspector General New York Region made the announcement.
Kenneth Sun, M.D., 58, of Easton, Pennsylvania, pleaded guilty to one count of conspiracy to defraud the United States and to pay and receive health care kickbacks before U.S. District Judge Anne E. Thompson of the District of New Jersey. Sentencing has been scheduled for Feb. 26, 2020, before Judge Thompson.
As part of his guilty plea, Sun admitted that from 2012 to 2016, he conspired with others to solicit and receive more than $140,000 in bribes and kickbacks from Insys Therapeutics, a pharmaceutical company based in Arizona in exchange for prescribing more than 28 million micrograms of Subsys, a powerful opioid narcotic designed to rapidly enter a patient’s bloodstream upon being sprayed under the tongue. Subsys contains fentanyl, a synthetic opioid pain reliever which is approximately 50 to 100 times more potent than morphine. The U.S. Food and Drug Administration approved Subsys solely for the “management of breakthrough pain in cancer patients who are already receiving and who are tolerant to around the clock therapy for their underlying persistent cancer pain.” Sun admitted that he prescribed Subsys to patients for whom Subsys was medically unnecessary, not eligible for insurance reimbursement and unsafe.
Sun also admitted that the bribes and kickbacks he received from Insys Therapeutics in exchange for prescribing Subsys were disguised as “honoraria” for educational presentations regarding Subsys that Sun purportedly provided to licensed practitioners. In reality, Sun admitted, these presentations were a sham: they lacked the appropriate audience of licensed practitioners seeking educational information regarding Subsys; there was no presentation about Subsys whatsoever; the same individuals attended over and over again; and Sun did not attend some of the presentations at all. Sun caused Medicare to pay more than $847,000 for Subsys prescriptions that were medically unnecessary, procured through the payment of kickbacks and bribes and not eligible for Medicare reimbursement, he admitted.
The FBI, HHS-OIG, the DEA, USPS-OIG and DOL-OIG investigated the case. Trial Attorney Rebecca Yuan of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Former Paraguayan Congresswoman and Two Others Charged in International Money Laundering ConspiracyRead the Press Release
TRENTON, N.J. – A former member of Paraguay’s Congress, her husband and another senior member of a Paraguayan money exchange business are charged by complaint for their participation in an international money laundering conspiracy, U.S. Attorney Craig Carpenito announced today.
Cynthia Elizabeth Tarrago Diaz, 40; Raimundo Va, 44; and Rodrigo Alvarenga Paredes, 33, are charged in a criminal complaint with conspiracy to commit money laundering. Tarrago and Va were arrested by the FBI on Thursday after they arrived in Newark as part of their unlawful money laundering activities. They appeared today before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court and were detained. Alvarenga remains at large in Paraguay.
“As alleged in the complaint, Tarrago, while a former member of Paraguay’s legislature, brazenly offered to launder the proceeds of international drug trafficking, and even went so far as to offer to traffic in cocaine herself,” U.S. Attorney Carpenito said. “When we stop this kind of money laundering activity, we help to stop the underlying drug trafficking activity that motivates and depends upon it. By eliminating the means by which international drug trafficking organizations launder their ill-gotten gains, we help to keep New Jersey safer by limiting the flow of drugs into our communities from outside the United States.”
“Money laundering is illegal no matter your position in society,” said Special Agent in Charge Gregory W. Ehrie. “The FBI follows the evidence and makes arrests based on the actions of those individuals. We will find and bring to justice anyone who uses unlawful means to enrich themselves with no regard for the law.”
According to documents filed in this case and statements made in court:
Tarrago is a former member of Paraguay’s Congress, and recently announced her intention to run for mayor of the capital district of Asunción. Tarrago and Va, her husband, agreed to accept at least $2 million in United States currency from two individuals who represented themselves to be narcotics traffickers. Believing the money to be proceeds of unlawful narcotics trafficking, they laundered the funds through an international network of accounts to disguise the unlawful source of the proceeds.
Tarrago and Va traveled to New Jersey and Florida on multiple occasions and accepted approximately $800,000 in United States currency from the purported drug traffickers, caused those funds to be laundered through the conspiracy’s network of accounts, and ultimately transferred the money back to an account maintained by the purported drug traffickers. Members of the conspiracy generated fraudulent invoices that stated legitimate business reasons for the transfers of laundered funds to the purported drug traffickers’ account. On multiple occasions during the purported drug dealers’ meetings with Tarrago and Va, Tarrago offered to assist them with procuring large quantities of cocaine from Paraguay at an inexpensive price.
Unbeknownst to Tarrago and Va, the currency they accepted from the purported drug traffickers and caused to be laundered was not actually illicit drug proceeds. The funds were provided by two undercover FBI agents as part of an extensive undercover investigation of the money laundering network. During the investigation, the undercover agents met with Tarrago and Va in the United States on numerous occasions, and obtained video and audio recordings of their interactions with Tarrago and Va, which include details of the money laundering network. The evidence uncovered during the investigation revealed that Alvarenga, a high-ranking member of a large money-exchange company in Paraguay, coordinated the laundering of the funds that the undercover agents provided to Tarrago and Va.
The money laundering conspiracy count carries a statutory maximum potential penalty of 20 years in prison and a maximum fine of the greater of $500,000 or twice the value of the funds involved in the conspiracy.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s charges. He also thanked the Department of Justice’s Office of International Affairs for their assistance in the case.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Twenty Defendants Indicted on Drug Trafficking Charges, One Defendant Charged with Unlawfully Possessing 11 FirearmsRead the Press Release
TRENTON, N.J. – Twenty defendants have been indicted on charges relating to the distribution of cocaine and crack cocaine in the Burlington County, New Jersey, area, U.S. Attorney Craig Carpenito announced today.
The defendants indicted today are among 31 people charged by complaint on Sept. 26, 2019. Charges remain pending against the other 11 defendants.
Herbert Mays, Andre Morton, Ronnie Dawson, Teron Huggins, Rufus Williams, Gurnsey Flagg, Roniffe Gaines, John Petrovich, Linford Johnson, Nathaniel McCoy, Anthony Pruitt, Shameke Fowler, Julius Thigpen, III, Andrew Perkins, and Brandon Watts were charged in a superseding indictment with conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine.
Additionally, Mays, Morton, Dawson, Flagg, Gaines, Petrovich, Johnson, Fowler, Perkins, Craig Moore, Tracy Williams, Samantha Bohlert, Mecca Grant, and April Branson were charged with conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine. Rufus Williams also was charged with possession with the intent to distribute crack cocaine, possession of a firearm in furtherance of a drug-trafficking crime, and being a felon in possession of a firearm.
According to the documents filed in this case and statements made in court:
Between July 2019 and September 2019, the defendants and others engaged in large-scale narcotics conspiracies that operated primarily throughout Burlington County – including Willingboro, Burlington City, Burlington Township, Bordentown Township, Edgewater Park, Mount Laurel, and Westampton – 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 learned that defendants obtained regular supplies of cocaine and then redistributed that cocaine, portions of which defendants converted into crack cocaine, to distributors, sub-dealers, and end-users throughout Burlington County and elsewhere.
The counts of conspiracy to distribute at least five kilograms of cocaine and 280 grams or more of crack cocaine, each carry a maximum penalty of life in prison and a fine of $10 million. The count charging Rufus Williams with possession with intent to distribute crack cocaine carries a maximum sentence of 20 years in prison and $1 million fine. The count charging Rufus Williams with possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum term of five years in prison and a maximum potential penalty of life in prison, which must be served consecutive to the sentence imposed on the drug trafficking crime. The count charging Rufus Williams with being a felon in possession of a firearm carries a maximum sentence of 10 years in prison. Both firearms counts also carry a maximum fine equal to the greatest of $250,000, twice the gross amount of any 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 of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of ATF, under the direction of Special Agent in Charge Charlie J. Patterson; detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; officers of the Burlington Township Police Department, under the direction of Director of Public Safety Bruce Painter; officers of the Willingboro Police Department, under the direction of Director of Public Safety Kinamo Lomon; officers of the Burlington City Police Department, under the direction of Chief of Police John Fine; officers of the Florence Police Department, under the direction of Chief of Police Brian Boldizar; officers of the Bordentown Township Police Department, under the direction of Chief of Police Brian Pesche; officers of the Edgewater Park Police Department, under the direction of Chief of Police Robert Hess; officers of the Mount Laurel Police Department, under the direction of Chief of Police Stephen Reidener; officers of the Ewing Police Department, under the direction of Chief of Police John Stemler; officers of the Westampton Police Department, under the direction of Chief of Police Stephen Ent; and officers of the Trenton Police Department, under the direction of Director Sheilah Coley, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Martha K. Nye and Ray Mateo of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the superseding indictment and complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.