District of New Jersey

CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 37 months in prison for his role in conspiring to distribute oxycodone, U.S. Attorney Craig Carpenito announced.

Daniel Watson, 41, of Bellmawr, New Jersey, previously pleaded guilty to an information charging him with one count of conspiracy to distribute and possess with intent to distribute oxycodone. U.S. District Judge Robert B. Kugler imposed the sentence today in Camden federal court.

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

From December 2017 through June 26, 2018, Watson and others engaged in a conspiracy which resulted in the trafficking of 1,180 oxycodone pills – 680 of which were unadulterated oxycodone and 500 of which were pressed pills mixed with hydrocodone, codeine, and methylphenidate. As part of the investigation, law enforcement observed Watson’s participation in eight controlled purchases. Three of these controlled transactions were carried out by the defendants in front of the major Philadelphia hospital where co-defendant Anthony Pepe was employed as the chief surgical technologist and while he was dressed in his hospital scrubs. Pepe was sentenced Nov. 20, 2019, to 30 months in prison.

In addition to the prison term, Judge Kugler sentenced Watson to three years of supervised release.

The government is represented by Assistant U.S. Attorney Christina O. Hud of the U.S. Attorney’s Office Criminal Division in Camden.

Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden

TRENTON, N.J. – A Pennsylvania man and two Mercer County, New Jersey, men today admitted their roles distributing heroin in and around Trenton, U.S. Attorney Craig Carpenito announced.   

Duane Paulino-Escalera, 27, of Philadelphia, and Izae Alford, 21, of Trenton, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to separate informations charging each of them with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Darryl Young, 27, of Trenton, pleaded guilty before Judge Shipp to an information charging him with one count of conspiracy to distribute and possess with intent to distribute a quantity of heroin.

In June 2019, Paulino-Escalera, Alford, Young, and eight others were charged by complaint with conspiracy to distribute heroin. Paulino-Escalera, Alford and Young are the first three defendants to plead guilty.

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

From June 2018 through May 2019, the defendants and others engaged in a heroin trafficking conspiracy in the areas of Stuyvesant, Hoffman and Highland avenues in Trenton, as well as in the area of Barbary Road in Philadelphia.

Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Robert M. Gbanapolor obtained regular supplies of “bricks” of heroin (approximately 50 smaller, individually packaged glassine envelopes or baggies containing heroin) from Paulino-Escalera, whom Gbanapolor referred to as “Papi.”

Members of the conspiracy distributed the heroin supplied by Paulino-Escalera to other conspirators, distributors, sub-dealers, and end users in and around Trenton. Law enforcement officers intercepted numerous discussions among the conspirators regarding issues such as heroin quality and availability, branding, quantity and customer satisfaction. 

The heroin conspiracy counts to which Paulino-Escalera and Alford pleaded guilty each carry a statutory mandatory minimum term of five years in prison, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. The heroin conspiracy count to which Young pleaded guilty carries a maximum potential penalty of 20 years in prison, and a maximum fine of $1 million. Sentencings for Paulino-Escalera and Alford are scheduled for May 4, 2020; sentencing for Young is scheduled for May 6, 2020. 

U.S. Attorney Carpenito credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, Camden Resident Office, under the direction of Special Agent in Charge Susan A. Gibson; and task force officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley, with the investigation leading to today’s guilty pleas. He also thanked detectives and officers of the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Charles A. Fiore; detectives and officers of the Gloucester Township Police Department, under the direction of Chief Harry Earle; members of the N.J. State Police, under the direction of Col. Patrick J. Callahan; detectives and officers of the Bordentown Township Police Department, under the direction of Chief Brian Pesce; and special agents of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson for their assistance.

This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

The government is represented by Assistant U.S. Attorneys Eric A. Boden and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.

The charges and allegations against the remaining eight defendants are merely accusations, and they are presumed innocent unless and until proven guilty.

George Gilmore, a partner at an Ocean County, New Jersey, law firm, was sentenced today to one year and one day in prison for his conviction on two counts of failing to pay over payroll taxes withheld from employees to the IRS and one count of making false statements on a bank loan application submitted to Ocean First Bank N.A.

On April 17, 2019, Gilmore, 70, of Toms River, New Jersey, was acquitted of two counts of filing false tax returns for calendar years 2013 and 2014; the jury could not reach a unanimous verdict on one count of income tax evasion for calendar years 2013, 2014, and 2015. The verdicts were returned following a trial that began April 1, 2019, before U.S. District Judge Anne E. Thompson, who imposed the sentence today in Trenton federal court.

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

Gilmore worked as an equity partner and shareholder at Gilmore & Monahan P.A., a law firm in Toms River, where he exercised primary control over the firm’s financial affairs. Because he exercised significant control over the law firm’s financial affairs, Gilmore was responsible for withholding payroll taxes from the gross salary and wages of the law firm’s employees to cover individual income, Social Security and Medicare tax obligations. For the tax quarters ending March 31, 2016, and June 30, 2016, the law firm withheld tax payments from its employees’ checks, but Gilmore failed to pay over in full the payroll taxes due to the IRS. 

Gilmore also submitted a loan application to Ocean First Bank containing false statements. On Nov. 21, 2014, Gilmore reviewed, signed, and submitted to Ocean First Bank a Uniform Residential Loan Application (URLA) to obtain refinancing of a mortgage loan for $1.5 million with a “cash out” provision that provided Gilmore would obtain cash from the loan. On Jan. 22, 2015, Gilmore submitted another URLA updating the initial application. Gilmore failed to disclose his outstanding 2013 tax liabilities and personal loans that he had obtained from others on the URLAs. Gilmore received $572,000 from the cash out portion of the loan. 

In addition to the prison term, Judge Thompson sentenced Gilmore to three years of supervised release.

First Assistant U.S. Attorney Honig for the District of New Jersey and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, special agents with the U.S. Attorney’s Office under the direction of Supervisory Special Agent Thomas Mahoney, and special agents of the FBI Red Bank Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.

The government is represented by Deputy U.S. Attorney Matthew J. Skahill; Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division; and Trial Attorney Thomas F. Koelbl of the U.S. Department of Justice - Tax Division. 

TRENTON, N.J. – George Gilmore, a partner at an Ocean County law firm, was sentenced today to one year and one day in prison for his conviction on two counts of failing to pay over payroll taxes withheld from employees to the IRS and one count of making false statements on a bank loan application submitted to Ocean First Bank N.A., First Assistant U.S. Attorney Rachael A. Honig announced.

On April 17, 2019, Gilmore, 70, of Toms River, New Jersey, was acquitted of two counts of filing false tax returns for calendar years 2013 and 2014; the jury could not reach a unanimous verdict on one count of income tax evasion for calendar years 2013, 2014, and 2015. The verdicts were returned following a trial that began April 1, 2019, before U.S. District Judge Anne E. Thompson, who imposed the sentence today in Trenton federal court.

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

Gilmore worked as an equity partner and shareholder at Gilmore & Monahan P.A., a law firm in Toms River, where he exercised primary control over the firm’s financial affairs. Because he exercised significant control over the law firm’s financial affairs, Gilmore was responsible for withholding payroll taxes from the gross salary and wages of the law firm’s employees to cover individual income, Social Security and Medicare tax obligations. For the tax quarters ending March 31, 2016, and June 30, 2016, the law firm withheld tax payments from its employees’ checks, but Gilmore failed to pay over in full the payroll taxes due to the IRS.

Gilmore also submitted a loan application to Ocean First Bank containing false statements. On Nov. 21, 2014, Gilmore reviewed, signed, and submitted to Ocean First Bank a Uniform Residential Loan Application (URLA) to obtain refinancing of a mortgage loan for $1.5 million with a “cash out” provision that provided Gilmore would obtain cash from the loan. On Jan. 22, 2015, Gilmore submitted another URLA updating the initial application. Gilmore failed to disclose his outstanding 2013 tax liabilities and personal loans that he had obtained from others on the URLAs. Gilmore received $572,000 from the cash out portion of the loan.

In addition to the prison term, Judge Thompson sentenced Gilmore to three years of supervised release.

First Assistant U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, special agents with U.S. Attorney’s Office under the direction of Supervisory Special Agent Thomas Mahoney, and special agents of the FBI Red Bank Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.

The government is represented by Deputy U.S. Attorney Matthew J. Skahill; Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division; and Trial Attorney Thomas F. Koelbl of the U.S. Department of Justice - Tax Division.

Defense counsel: Kevin H. Marino Esq., Chatham, New Jersey

TRENTON, N.J. – A Mercer County, New Jersey, man was arraigned today on an indictment charging him with unlawful possession of a firearm, U.S. Attorney Craig Carpenito announced.

Omar Kennedy, 38, of Trenton, is charged by indictment with one count of being a felon in possession of a firearm. He was arraigned today before U.S. District Judge Anne E. Thompson in Trenton federal court and pleaded not guilty. He remains detained.

According to the indictment, returned Jan. 15, 2020:

On May 23, 2019, Kennedy possessed a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.

The charge of possessing a firearm while being a convicted felon carries a maximum potential penalty of 10 years in prison and a $250,000 fine.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NCIS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Michelle S. Gasparian of the U.S. Attorney’s Office Criminal Division in Trenton.

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

Defense counsel: Andrea Bergman Esq., Assistant Federal Public Defender, Trenton

NEWARK, N.J. – A Bronx, New York, man today admitted participating in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, U.S. Attorney Craig Carpenito announced.

Jose Antonio Vasquez Pena, a/k/a “Tono,” 47, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Dilson Vazquez Genao, 23, Eddie Urena Rodriguez, 35, and Francisco Mercedes Gil, 31, also of the Bronx, New York, pleaded guilty before Judge Salas to the same charges in September 2019.

Three other individuals – Jhan Carlos Capellan Maldonado, 31, Daury Contreras Ulerio, 34, and Reimon Genao Rosario, 23 – were indicted on the same charge as Pena in August 2019. Their cases are pending.

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

In early February 2019, law enforcement officers learned that Maldonado used an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed approximately five workers at a time—including Rodriguez, Ulerio, Rosario, Gil, and Genao—to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.

On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.

Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, but all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.

Each defendant faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing is scheduled for April 27, 2020.

U.S. Attorney Craig Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations (HSI)’s New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Jason S. Gould of the Health Care Fraud Unit in Newark.

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

Defense counsel: Peter Carter Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – An Essex County, New Jersey, woman and a Canadian man were indicted today for their roles in a securities fraud scheme that induced victims to invest $30 million worth of cash and cryptocurrency based on fraudulent misrepresentations, U.S. Attorney Craig Carpenito announced.

Edith Pardo, 68, of Bloomfield, New Jersey, and Boaz Manor, 46, of Toronto, Canada, are each charged with one count of conspiring to commit wire fraud, three counts of wire fraud, and one count of securities fraud in connection with a blockchain technology company. Pardo was arrested today by special agents of the FBI and is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. Manor remains at large.

According to the indictment:

In 2003, Manor co-founded and managed a hedge fund based in Toronto, Canada. In connection with his work at that hedge fund, Manor pleaded guilty in Canada to one count of transferring monies in breach of trust and one count of disobeying a court order. He was sentenced to four years in prison.

Following his release from prison, Manor founded a business, CG Blockchain Inc., and began creating a product called ComplianceGuard, which was purportedly designed provide hedge funds with a blockchain-based auditing tool. While raising money for CG Blockchain, Manor hid his true identity and criminal past from investors and others by using a variety of aliases, including “Shaun MacDonald.” He also changed his appearance by darkening his hair and growing a beard.

Manor secured a significant portion, if not all, of the initial seed money in CG Blockchain from a close family member. In order to conceal the source of this money, Manor recruited Pardo to act as a conduit for the money. The defendants misrepresented to potential CG Blockchain investors that Pardo was an independently wealthy investor who provided millions of dollars in seed money to CG Blockchain.

The defendants also misrepresented that 20 hedge funds were using ComplianceGuard and were each paying CG Blockchain a $1 million yearly fee. In reality, none of the 20 hedge funds paid fees to CG Blockchain, and many of the hedge funds did not receive or use ComplianceGuard at all.

In 2017, CG Blockchain launched an “Initial Coin Offering” (ICO), and began marketing its new product – “Blockchain Terminal” – to potential investors. CG Blockchain described Blockchain Terminal as a computer terminal that allowed hedge funds and financial institutions to trade and manage cryptocurrency. Manor actively marketed the token to investors, while failing to disclose his true identity or his role at CG Blockchain. The defendants also misrepresented to ICO investors that the Blockchain Terminal had “Actual Clients” and was “installed at 20 hedge funds.”

In 2018, CG Blockchain publicly announced that it had raised $30 million from its ICO. Following the ICO, CG Blockchain investors learned of Manor’s true identity and criminal past. When confronted by an investor, Manor admitted that he had hidden his real identity and criminal past because disclosure of that information would have resulted in “the company being destroyed.”

The conspiracy and wire fraud counts in the indictment carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The securities fraud count carries a potential penalty of 20 years in prison and a $5 million fine.

The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Manor and Pardo today based on the same conduct.

U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges. He also thanked the SEC for the assistance provided by its Enforcement Division.

The government is represented by Assistant U.S. Attorneys Vijay Dewan and Catherine R. Murphy of the U.S. Attorney’s Office Economic Crimes Unit.

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

CAMDEN, N.J. – A North Carolina man was arrested today on charges that he brought a loaded handgun and machine gun into a federal facility, and illegally transported the machine gun into New Jersey, U.S. Attorney Craig Carpenito announced.

Dustin Peters, 25, a former Marine, was arrested in Cape May County, New Jersey, and is charged by complaint with one count of unlawful possession of a firearm in a federal facility and one count of unlawful interstate transport of a machine gun. Peters is scheduled to have an initial appearance on Jan. 21, 2020, before U.S. Magistrate Judge Joel Schneider in Camden federal court.

According to documents filed in this case:

On Jan. 9, 2020, Peters attempted to enter the U.S. Coast Guard Training Center Cape May. During a routine security search of his vehicle, Coast Guard personnel recovered a modified, fully automatic AK-47 rifle, a loaded 9mm Century Arms handgun, multiple large capacity magazines, ammunition, a ballistic vest, gas mask and canister, three boxes of ammunition, a nylon chest rig, and other items. Peters told law enforcement agents that he purchased the AK-47 in Virginia, but modified it on his own to become fully automatic.

The counts of possession of a firearm on a federal facility carries a maximum penalty of one year in prison and a $100,000 fine. The unlawful interstate transport of a machine gun carries a maximum penalty of five years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the FBI, Atlantic City Resident Agency’s Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; members of the U.S. Coast Guard Investigative Service, under the direction of Resident Agent in Charge Rodney E. Newcomer; the Cape May Police Department under the direction of Chief Anthony G. Marino Jr.; and the Cape May County Prosecutor’s Office, under the direction of Prosecutor Jeffrey H. Sutherland, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Alisa Shver of the U.S. Attorney’s Office Criminal Division in Camden.

This case is part of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see http://www.justice.gov/projectguardian

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

NEWARK, N.J. – A Georgia man today admitted his role in initiating a cyberattack known as a Distributed Denial of Service (DDoS) against a company that maintained servers in New Jersey, U.S. Attorney Craig Carpenito announced.

Tucker Preston, 22, of Macon, Georgia, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of damaging protected computers by transmission of a program, code or command.

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

DDoS is a type of cyberattack that purposefully directs such a large volume of superfluous traffic to a victim’s web server or other computer system that it can slow or shut down service. In or around December 2015, Preston arranged for an entity that engages in DDoS attacks to initiate attacks against a company. The entity directed DDoS attacks against the victim company, causing damage and disrupting the victim’s business.

The count to which Preston pleaded guilty is punishable by a maximum penalty of 10 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for May 7, 2020.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney David E. Malagold of the U.S. Attorney’s Office Criminal Division.

Defense counsel: Ijeoma Eke Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – A Dominican man was sentenced today to 34 months in prison for his role in a conspiracy to transport more than 100 grams of heroin from New York to New Jersey, U.S. Attorney Craig Carpenito announced.

Bienvenido Perez Lazala, 31, of the Dominican Republic, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conspiracy to possess with intent to distribute more than 100 grams of heroin.

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

In January 2018, a Mexican narcotics trafficker provided another individual with Lazala’s name and identified Lazala as someone who could assist in establishing narcotics sales in New Jersey. Lazala was contacted and agreed to obtain heroin to sell in New Jersey.

On Feb. 5, 2018, following a series of intercepted calls, Lazala obtained 955.9 grams of heroin in Haverstraw, New York, for purposes of transporting it back to New Jersey. Lazala then sold the heroin to another individual, who, unbeknownst to Lazala, was a law enforcement officer.

In addition to the prison term, Judge Martinotti sentenced Lazala to two years of supervised release.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Ari Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit.

CAMDEN, N.J. – A Camden County, New Jersey, man today admitted sending obscene material to minors over the internet, U.S. Attorney Craig Carpenito announced.

Zackary McFerren, 28, of Winslow Township, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with two counts of transferring obscene matter to minors, as well to violating the terms of his supervised release by contacting those minors.

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

McFerren admitted that he previously pleaded guilty to possessing child pornography and transferring obscene material to a minor and was sentenced Oct. 17, 2016, to 33 months in prison, to be followed by five years of supervised release, which started May 3, 2019.

McFerren acknowledged that the terms of his supervised release included not committing another federal crime; required him to submit to computer monitoring by the U.S. Probation Office and restricted his contact with minors.

McFerren admitted that starting on July 15, 2019, he used a mobile phone to communicate with an individual he believed to be a 13-year old girl living in New York. Unbeknownst to McFerren, he was actually communicating with an undercover FBI employee.  McFerren admitted that he had expressed an interest in having sex with the 13-year old girl and sent her obscene images of himself. McFerren acknowledged that his communicating with the person he believed to be a minor and sending the obscene photos was a violation of the terms of his supervised release.

McFerren also admitted to conduct from August 2015. McFerren admitted to using the “Kik” messaging application to communicate with other Kik users over the Internet. While using the Kik application, McFerren used the screen name “Emily” and begin communicating with an underage girl in the Eaton Rapids, Michigan, area. He exchanged obscene images with the girl. 

The charges to which McFerren pleaded guilty each carry a maximum potential penalty of 10 years in prison per count and a fine of $250,000. McFerren faces up to an additional four years for violating the term of supervised release from his previous conviction. Sentencing is scheduled for April 22, 2020.

U.S. Attorney Carpenito credited special agents and task force officers of the FBI, Newark Division’s Atlantic City Resident Agency, Child Exploitation Task Force, which is made up of FBI special agents and detectives from the Atlantic County Prosecutor’s Office, Atlantic County Sheriff’s Office, the New Jersey State Police, and the N.J. Department of Human Services Police, under the direction of FBI Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s guilty plea. He also thanked FBI special agents and task force officers in the FBI Buffalo Division and officers and detective with the Eaton Rapids, Michigan, Police Department for their work on this investigation.

The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.

NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted participating in a conspiracy to commit health care fraud, U.S. Attorney Craig Carpenito announced.

Estela Blaustein, 55, of Mahwah, New Jersey, pleaded guilty today before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging her with one count of conspiracy to commit health care fraud with four individuals who have been previously charged by complaint in the District of New Jersey: Mark Filippone M.D., 71, of Wallington, New Jersey; Joseph Vangelas, a/k/a “Joseph Miller,” 33, of Fort Lee, New Jersey; Marlene Vangelas, 58, of River Vale, New Jersey; and Zachary Ohebshalom, 33, of Edgewater, New Jersey. The charges against those four defendants remain pending.

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

Beginning in November 2016, Blaustein participated in a scheme to obtain millions of dollars in health benefits from the federal workers’ compensation program by prescribing and dispensing expensive, but medically unnecessary, pain creams. Filippone treated hundreds of now-former U.S. Postal Service employees for injuries they purportedly suffered on the job. He allegedly facilitated their disability claims by submitting forms and medical reports to the Department of Labor, Office of Workers’ Compensation Program, for patients who were not, in fact, disabled.

Filippone also prescribed expensive topical pain creams, which were not needed or wanted by many of his patients. The information alleges that Filippone steered these prescriptions to a pharmacy in Fair Lawn, New Jersey, where Blaustein was the pharmacist-in-charge. The Fairlawn Pharmacy was owned and operated by Joseph Vangelas and Marlene Vangelas, who, along with Ohebshalom, directed Blaustein and others to research reimbursement rates within the federal workers’ compensation program for the ingredients of the pain creams in order to determine the most lucrative formulations. Joseph Vangelas, Marlene Vangelas, and Ohebshalom directed Blaustein and others to print prescription labels for Filippone to use with his patients. Filippone used the pre-printed labels and sent the prescriptions back to the Fair Lawn Pharmacy. To induce Filippone to prescribe the medically unnecessary pain creams in the exact formulations they desired, Joseph Vangelas and Marlene Vangelas purchased Filippone’s medical office and then permitted Filippone to continue to use the premises, for which he routinely failed to pay rent. Miller, the Vangelases, and Ohebshalom conspired to leverage the property to force Filippone to continue to send prescriptions to their pharmacy. Filippone continued to send prescriptions to the pharmacy, so long as Miller and the Vangelases permitted him to remain rent-free in the property.

The count of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. As part of her plea agreement, Blaustein agreed that the charged healthcare fraud conspiracy caused losses of $1.5 million to $3.5 million. Sentencing is scheduled for April 22, 2020.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge of the Northeast Area Field Office Matthew M. Modafferi; the Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the charges and today’s guilty plea.

The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Healthcare Fraud Unit in the Criminal Division, Newark.

The charges and allegations in the information pertaining to Filippone, Joseph Vangelas, Marlene Vangelas, and Ohebshalom are merely accusations, and those four defendants are presumed innocent unless and until proven guilty.

Defense counsel: Jerome A. Ballarotto Esq., Trenton, New Jersey

NEWARK, N.J. – A Illinois man today admitted conspiring to transport heroin and cocaine to New Jersey, U.S. Attorney Craig Carpenito announced.

Daniel Gonzalez Maldonado, 25, of Carpentersville, Illinois, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 500 grams or more of cocaine.

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

On June 6, 2019, a conspirator paid Maldonado approximately $1,000 to drive the conspirator and a quantity of narcotics from Illinois to the East Coast. Maldonado allowed the conspirator to store approximately one kilogram of cocaine and approximately two kilograms of heroin in a Norristown, Pennsylvania, hotel room that was reserved in Maldonado’s name. The investigation revealed that at least one of these kilograms of narcotics would have been distributed in New Jersey.

The count to which Maldonado pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for April 23, 2020.

U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan in New York, with the investigation leading to today’s guilty plea.

The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.

The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.

The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.

TRENTON, N.J. – A former insurance broker with an office in Fort Lee, New Jersey, was sentenced today to six months in prison and six months of home confinement for defrauding Horizon Blue Cross Blue Shield, U.S. Attorney Craig Carpenito announced.

Lawrence Ackerman, 55, a resident of Old Tappan, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information charging him with one count of health care fraud.

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

Ackerman was the chief operating officer of Atlantic Business Associates (ABA) and Atlantic Medical Associates (AMA), two “shell” companies through which he marketed health insurance nationally to people who were not his employees and therefore ineligible for health coverage. During the month of January 2011, he delivered $481,500 in health care benefits to ineligible participants.

As part of his plea, Ackerman must make restitution to Blue Cross Blue Shield for the fraudulent claims paid between 2009 and 2013. Ackerman originally was charged in a two-count indictment with conspiring to defraud Horizon Blue Cross Blue Shield of $5.6 million in fraudulent claims, and for defrauding the Local 2326 (UAW) Welfare Fund of $1 million in fraudulent claims. Those charges are now dismissed, and he is also obligated to pay restitution of $1 million to the Local 2326 Welfare Fund.

U.S. Attorney Carpenito credited special agents of the Department of Labor, Office of the Inspector General, under the direction of Special Agent in Charge Michael Mikulka; agents of the Employee Benefits Security Administration (EBSA), under the direction of Regional Director Darren Cohen; and agents of the Office of Labor Management Standards (OLMS), under the supervision of Regional Director Andriana Vamvakas, with the investigation leading to today’s sentencing.

The government is represented by Senior Litigation Counsel V. Grady O’Malley of the Organized Crime/Gangs Unit in Newark.

NEWARK, N.J. – UST-Aldetec Holding Company LLC, which includes its wholly owned subsidiary United States Technologies Inc., a New Jersey corporation, will pay $525,000 to resolve allegations that it violated the False Claims Act, U.S. Attorney Craig Carpenito announced today.

The settlement resolves allegations that U.S. Technologies made false claims in conjunction with obtaining payments under contracts awarded to U.S. Technologies by the United States. The United States contends that U.S. Technologies provided nonconforming circuit card assemblies, at least some of which were counterfeit parts, for a weapons system used by the United States.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the U.S. Air Force Office of Special Investigations, under the direction of Detachment Special Agent in Charge Jason T. Hein; special agents of the Department of Homeland Security (DHS), Homeland Security Investigations (HSI) under the direction of Special Agent in Charge Brian Michael in Newark; and personnel of the Defense Logistics Agency – Aviation, under the command of Brigadier General David J. Sanford, with the investigation leading to today’s settlement.

The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division in Newark.

Defense counsel: Carlos F. Ortiz Esq., New York

NEWARK, N.J. – A South Carolina man who participated in the sale of 17 firearms, including five assault rifles, was sentenced today to 30 months in prison for his role in a scheme to illegally sell weapons in New Jersey, U.S. Attorney Craig Carpenito announced.

Richard Lowman, 31, previously pleaded guilty before U.S. District Court Judge Claire C. Cecchi to an information charging him with one count of conspiracy to engage in the unlicensed business of dealing in firearms. Judge Cecchi imposed the sentence today in Newark federal court.

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

On six different dates between May 2017 and September 2017, Lowman – sometimes accompanied by his uncle, Reginald Moultrie – met with an individual in Newark for the purpose of selling firearms. Lowman personally participated in the sale of an assault rifle on a Newark street in May 2017. During a later transaction in August 2017, Lowman travelled from South Carolina to New Jersey and transported multiple firearms across state lines. Ultimately, six firearms were sold inside a residence in Newark on that occasion.

Seventeen firearms, including five assault rifles, were illegally sold by Lowman and Moultrie over five months. Neither Lowman nor Moultrie had a license to sell firearms. Moultrie previously pleaded guilty to possession of a firearm after having been convicted of a felony and is currently awaiting sentencing.

In addition to the prison term, Judge Cecchi sentenced Lowman to three years of supervised release.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NCIS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities.

The United States Attorney’s Office prosecuted this case with support from the Newark Police Department, a Project Guardian partner. U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officers from the Newark Police Department, under the direction of Department of Public Safety Director Anthony F. Ambrose, for their assistance. For more information, please see: Project Guardian.

The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office National Security Unit in Newark.

Defense counsel: Kevin Buchan Esq., Holmdel, New Jersey

CAMDEN, N.J. – A Gloucester County, New Jersey, man today admitted producing and distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

James Thiel, 32, of Williamstown, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of sexual exploitation of a minor.

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

From April 2019 through August 2019, Thiel used an email account and a file sharing site to send images and videos of child sexual abuse to other individuals. Thiel produced and appeared in several of these images and videos along with a pre-pubescent child.

The sexual exploitation of a minor charge to which Thiel pleaded guilty carries a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. Thiel will be required to register as a sex offender. Sentencing is scheduled for April 23, 2020.

U.S. Attorney Carpenito credited special agents of Department of Homeland Security (DHS), Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael in Newark, and the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Charles A. Fiore, with the investigation leading to today’s guilty plea.

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

Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, Camden

CAMDEN, N.J. – A member of a drug-trafficking organization today admitted his role in a conspiracy to distribute heroin in Camden, U.S. Attorney Craig Carpenito announced.

David Velez, 31, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin.

Eleven other members – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, Naeem Sadler, Jasmin Velez, Jameel Byng, and Kaliel Johnson – have previously pleaded guilty to their roles in the drug-trafficking conspiracy in the 500 block of Pine Street in Camden. Charges against six other defendants in this case remain pending.

The guilty pleas in this case reflect that the various members of the drug-trafficking organization sold heroin, crack cocaine and powder cocaine in and around the City of Camden.

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

An investigation led by the FBI used surveillance tactics, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations of the Camden drug-trafficking organization.

The count to which Velez pleaded guilty carries a mandatory penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing is scheduled for April 20, 2020.

U.S. Attorney Craig Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.

This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.

The charges and allegations against the other defendants are merely accusations, and they are presumed innocent unless and until proven guilty.

Defense counsel: Mark Catanzaro Esq., Mount Holly, New Jersey

NEWARK, N.J. – A former commissioner with the now-defunct Paterson Municipal Utilities Authority was sentenced today to 35 months in prison for engaging in two separate schemes to steal funds from the Paterson Municipal Utilities Authority (MUA), U.S. Attorney Craig Carpenito announced.

Erik Lowe, 51, of Paterson, New Jersey, previously pleaded guilty before former U.S. District Judge Jose L. Linares to an information charging him with one count of conspiring with Carnell Baskerville, a contractor who plead guilty in February 2018 to his role in the scheme, to commit extortion under color of official right during the period from approximately December 2014 through approximately May of 2015. He also pleaded to one count of engaging in a second scheme with another contractor to commit extortion under color of official right from approximately August of 2012 through November of 2014. U.S. District Judge Kevin McNulty imposed the sentence today in Newark federal court.

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

Lowe was a commissioner of the MUA from February 2009 through May 2015, during which time he exercised control over the MUA’s finances. The MUA had been created to manage the hydroelectric plant on the Passaic River in Paterson as well as to care for and manage certain surrounding properties. Lowe and Baskerville entered into an agreement whereby Lowe would approve payments from the MUA to Baskerville’s company for services purportedly rendered when both Lowe and Baskerville knew that Baskerville had not performed and would not perform any such services. Between December 2014 and May 2015, Lowe wrote a series of MUA checks totaling $146,500 to Baskerville’s company. Lowe directed Baskerville to deposit these checks into Baskerville’s bank account and to kick back to Lowe a significant percentage of this amount in cash to reward Lowe and a fellow MUA commissioner for their official assistance in carrying out the scheme.

Lowe admitted to engaging in a similar scheme between approximately August of 2012 through approximately November of 2014 with a second contractor whose company installed and repaired fences for residential homes and commercial business. Lowe admitted that initially he inflated the checks provided to this contractor substantially above the value of the jobs the contractor performed on behalf of the MUA so that the contractor could kick back thousands of dollars in cash in kickbacks to Lowe for Lowe’s official assistance in carrying out the scheme. Lowe admitted that near the end of the scheme, he was issuing checks worth thousands of dollars to the contractor knowing that no job had been or would be performed by the contractor in exchange for the checks. Lowe, in turn, accepted kickbacks totaling thousands of dollars from the contractor in exchange for these checks. Between August 2012 and November 2014, Lowe issued checks totaling $141,700 to the contractor, for which Lowe accepted tens of thousands of dollars in cash kickbacks.

In addition to the prison term, Judge McNulty sentenced Lowe to three years of supervised release and ordered him to pay restitution of $236,400.

Baskerville pleaded guilty on Feb. 6, 2018 before Judge Linares to one count of conspiracy to commit extortion under color of official right and to one count of conspiracy to embezzle from an organization receiving federal benefits in excess of $10,000 and was sentenced Oct. 23, 2018, to 21 months in prison.

U.S. Attorney Carpenito credited special agents of the FBI under the direction of Special Agent in Charge Gregory W. Ehrie in Newark with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.

Defense counsel: Linda Foster Esq., Assistant Federal Public Defender

NEWARK, N.J. – Three New Jersey men were charged with possession of cocaine and heroin with intent to distribute, U.S. Attorney Craig Carpenito announced today.

Robin Peralta, 37, of Trenton, New Jersey, is charged by complaint with one count of possession with intent to distribute five kilograms or more of cocaine and one count of possession with intent to distribute one kilogram or more of heroin. Luis Susana-Delossanto, 32, of Trenton, is charged by complaint with two counts of possession with intent to distribute five kilograms or more of cocaine. Ramon Fabian-Pena a/k/a/ “Rafael,” 59, of Passaic, New Jersey, is charged by complaint with one count of possession with intent to distribute five kilograms or more of cocaine.

All three defendants appeared Jan. 8, 2020, before U.S. Magistrate Judge Leda D. Wettre in Newark federal court. Peralta and Susana-Delossanto were released on bail. Fabian-Pena was detained.

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

A search of Peralta’s residence revealed approximately three kilograms of heroin and U.S. currency. A search of Delossanto’s vehicle revealed approximately 29 kilograms of cocaine.  At the time of the arrest of Fabian-Pena, law enforcement also recovered a package containing approximately six kilograms of cocaine.  

The counts of possession with intent to distribute heroin and possession with intent to distribute cocaine each have a minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a $10 million fine.

U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; and members of the Mercer County Prosecutor’s Office, as well as the Hamilton Township Police Department, with the investigation leading to the charges. This investigation was conducted by a New JerseyJ DEA HIDTA Task Force composed of officers from the DEA, New Jersey State Police, Mercer County Prosecutor’s Office, Hudson County Prosecutor’s Office, Wayne Police Department, Union Police Department, Woodbridge Police Department, Edison Police Department and Bayonne Police Department.

The government is represented by Assistant U.S. Attorneys Cassye Cole and Vera Varshavsky of the U.S. Attorney’s Office’s Criminal Division in Newark.

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

TRENTON, N.J. – Thirteen defendants have been indicted for their roles as members, associates, and suppliers of a drug-trafficking conspiracy that distributed cocaine and crack cocaine in and around Monmouth County, U.S. Attorney Craig Carpenito announced today.

Damion Helmes, Dawn Stephens, Shantay Walker, Keith Logan, Shamar Dudley, Tonya Underwood, Elizabeth Conover, Curtis Jenkins, Ralph Lee, and Eric Yarbrough were charged with conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine. Additionally, Helmes, Stephens, Walker, Logan, Dudley, Underwood, Conover, Jenkins, Lee, Yarbrough, Derrick Hayes, Dequan Copeland, and Cassius Williams were charged with conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine. Helmes was also charged with possession with intent to distribute cocaine and crack cocaine, possession of a firearm in furtherance of a drug-trafficking crime, and with being a felon in possession of a firearm. Hayes was also charged with being a felon in possession of a firearm. 

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

Between April 2019 and August 2019, the defendants and others engaged in a narcotics conspiracy that operated primarily in municipalities throughout Monmouth County – including Cliffwood, Keansburg, Matawan, Keyport, Red Bank, Long Branch, Neptune, and Asbury Park, as well as Brick Township in Ocean County – and which sought to profit from the distribution of cocaine and crack cocaine. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, and other investigative techniques, law enforcement officers learned that defendant Helmes obtained regular supplies of cocaine from defendants Hayes and Copeland. Helmes then re-distributed that cocaine, portions of which he converted into crack cocaine, for profit, to other conspirators, distributors, sub-dealers, and end users throughout Monmouth County. During the wiretap portion of the investigation, law enforcement intercepted numerous communications by and between the conspirators regarding such issues as cocaine quality and availability, pricing, packaging, quantity, and customer satisfaction.

The defendants were originally charged by complaint on Aug. 22, 2019. Dudley was previously charged by indictment.

The count of conspiracy to distribute 280 grams or more of crack cocaine carries a maximum penalty of life in prison, a ten-year mandatory minimum term of imprisonment, and a maximum fine of $10 million. The count of conspiracy to distribute 500 grams or more of cocaine carries a maximum penalty of 40 years in prison, a five-year mandatory minimum term of imprisonment, and a maximum fine of $5 million. The count charging Helmes with possession with intent to distribute cocaine and crack cocaine carries a maximum sentence of 20 years in prison and a $1 million fine. The count charging Helmes with possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum term of imprisonment of 5 years and a maximum potential penalty of life in prison, and must be served consecutive to the sentence imposed on the drug trafficking crime. The felon in possession counts against Helmes and Hayes carry a maximum sentence of 10 years in prison. Each firearms count also carries a maximum fine equal to the greatest of $250,000, twice the gross amount of pecuniary gain that any persons derived from the offense, or twice the gross amount of any pecuniary loss sustained by any victim of the offense.

U.S. Attorney Carpenito credited Special Agents and Task Force Officers of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach, Brick, Howell, Toms River, Union Beach and Marlboro police departments, and the Monmouth County Sheriff's Office) under the direction of Special Agent in Charge Gregory W. Ehrie; the Red Bank Police Department, under the direction of Chief Darren McConnell; the Keansburg Police Department, under the direction of Chief James Pigott; the Middletown Police Department, under the direction of Chief Craig Weber; the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; the Highlands Police Department, under the direction of Chief Robert Burton; the Holmdel Police Department, under the direction of Chief John Mioduszewski; and the Long Branch Police Department, under the direction of Chief Jason Roebuck, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 60 months in prison for leading a conspiracy involving numerous moving companies that systematically extorted hundreds of customers, U.S. Attorney Craig Carpenito announced.

Richard Bishara, 43, of Woodland Park, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit wire fraud. Judge Wigenton imposed the sentence today in Newark federal court.

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

Bishara and his conspirators jointly operated numerous moving companies that quoted customers “low-ball” price estimates for household goods moves and then raised prices on the date of the move after the goods were loaded and the customers were vulnerable. Through this scheme, Bishara and his conspirators, over a number of years and hundreds of moves, raised final prices for moves above the allowed increase from initial estimates as provided by federal regulations, including increases as high as 400 percent on the day of the move. The collective difference between the many estimates and the final balances for the customers’ moves was more than $1 million. Bishara personally owned a number of the moving companies involved, and, as a leader of the conspiracy, controlled certain bank accounts used by the companies.

Judge Wigenton also sentenced Bishara to three years of supervised release and ordered him to pay restitution of $72,709.

U.S. Attorney Carpenito credited special agents of the Department of Transportation-Office of the Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker, Northeast Region; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, Newark Division; and special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), New York, under the direction of Special Agent in Charge Peter C. Fitzhugh, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Anthony Pope Esq., Newark

NEWARK, N.J. – A former Newark police officer today admitted soliciting and accepting cash payments from a brothel owner in Newark in exchange for protecting brothels from police action, and to failing to report those cash payments on his personal federal income tax returns, U.S. Attorney Craig Carpenito announced.

Julio I. Rivera, 50, of Old Bridge, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to two counts of an indictment charging him with bribery (Count Six) and aiding and assisting in the preparation of a false 2015 personal federal tax return (Count 13).

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

From September 2014 to August 2015, Rivera solicited and accepted cash payments from a Newark brothel owner (“Individual 1”) who ran brothels located on Lafayette Street and Emmet Street. In exchange for these cash bribes, Rivera performed official acts and violated his lawful duties for the benefit of Individual 1, including declining to arrest individuals who were committing and promoting prostitution, agreeing to protect these individuals from arrest by other Newark police officers, and agreeing to take adverse action against a competing brothel. Rivera collected between $40,000 and $95,000 in bribes in exchange for protecting those and other brothels in Newark.

Rivera also intentionally withheld information from his tax preparer regarding the cash bribes that he received, which caused Rivera’s filed federal tax returns for certain tax years, including 2015, to understate the total amount of income that Rivera received. Rivera stipulated that this misconduct resulted in a loss to the IRS of $15,000 to $40,000.

The maximum potential penalty for the count of bribery is 10 years in prison and the maximum potential penalty for the tax fraud is three years in prison; both counts carry a maximum potential fine of up to $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for April 30, 2020.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Cari Fais of the Special Prosecutions Division in Newark.

Defense counsel: Kristen Santillo Esq., New York

TRENTON, N.J. – The former owner of a restaurant in Elizabeth, New Jersey, today admitted evading taxes on over $844,000 in income from his restaurant business, U.S. Attorney Craig Carpenito announced.

Omar Rodriguez, 49, of Parlin, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to one count of an information charging him with tax evasion for 2015 through 2017.

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

Rodriguez owned Mojito LLC, d/b/a Mojito Lounge and Restaurant (Mojito’s), a restaurant that served Cuban cuisine. Mojito’s generated a substantial amount of gross cash receipts and Rodriguez admitted that he skimmed a substantial portion of this cash for his personal use, which he did not report as income, and to pay Mojito’s employees and suppliers in cash. Between 2015 and 2017, Rodriguez received over $844,000 in income from Mojito’s that he failed to report to the IRS. Rodriguez caused Mojito’s to fail to report over $483,000 in cash payroll and to pay certain employment taxes. His conduct resulted in a $193,733 tax loss to the IRS for tax years 2015 through 2017.

The tax evasion charge to which Rodriguez pleaded guilty carries a maximum penalty of five years in prison and is punishable by a potential $250,000 fine. Sentencing is scheduled for April 15, 2020.

U.S. Attorney Carpenito credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the of the U.S. Attorney’s Office Health Care Fraud Unit in Newark.

TRENTON, N.J. – A Pennsylvania man today admitted improperly securing a federal guarantee on a loan by making false statements to the Small Business Administration (SBA) about the creditworthiness of those loans while serving as the chief lending officer of a New Jersey bank, U.S. Attorney Craig Carpenito announced.

James Bortolotti, 51, pleaded guilty before U.S. District Judge Michael Shipp in Trenton federal court to an information charging him with one count of knowingly making false statements for the purpose of influencing the action of the SBA.

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

While serving as the chief lending officer of a New Jersey bank (Bank-1), Bortolotti became aware of a Small Business Administration lending program to incentivize lenders, including banks, to loan money to small businesses by providing a 75 percent SBA-backed guarantee on loans. When a lender applies an SBA guarantee on a loan, the lender must disclose information related to the creditworthiness of the small business. Bank-1 hired a consulting firm to help the bank apply for SBA-backed guarantees.

On Feb. 29, 2012, a consultant from the consulting firm submitted an application to the SBA for a guarantee of approximately $3.75 million on loans totaling approximately $5 million made to a small business located in Robbinsville, New Jersey. The application contained false information related to the creditworthiness of the business. Bortolotti knew the application contained false information, but reviewed and signed the application on behalf of the bank.

Making false statements for the purpose of influencing the action of the SBA carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for April 16, 2020.

U.S. Attorney Carpenito credited special agents of the SBA-Office of the Inspector General (SBA-OIG), under the direction of Special Agent in Charge Kevin Kupperbusch in Philadelphia; the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney J. Stephen Ferketic of the U.S. Attorney’s Office Opioid Abuse Prevention and Enforcement Unit in Newark.

Defense counsel: William C. Cagney Esq., New Brunswick, New Jersey

NEWARK, N.J. – An Essex County, New Jersey, man will be arraigned today on charges that he engaged in a conspiracy to commit mortgage fraud that resulted in potential losses in excess of $1 million, U.S. Attorney Craig Carpenito announced.

Cabral Simpson, 43, of Belleville, New Jersey, appeared before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court. He is charged by indictment with one count of conspiracy to commit wire fraud and two counts of wire fraud.

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

Simpson, a real estate investor, and his conspirators engaged in mortgage fraud by creating fake bank statements and fake employee verification records for buyers of properties and transferring money into the buyers’ bank accounts for payment of the deposit for a property. Simpson and his conspirators submitted fraudulent mortgage loan applications, supporting documents, and closing documents on behalf of the buyers. They induced lenders to issue more than $1 million in loans, resulting in defaults and exposing the lenders and the U.S. Department of Housing and Urban Development to more than $1 million in potential losses. 

The conspiracy and wire fraud counts with which Simpson is charged each carry a maximum potential penalty of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrimes Unit in Newark.

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

CAMDEN, N.J. – A Burlington County, New Jersey, man was indicted today for his role in a GoFundMe scheme that collected money from donors on the internet, purportedly to benefit a homeless man, U.S. Attorney Craig Carpenito announced today.

Mark D’Amico, 40, formerly of Bordentown, New Jersey, was indicted on one count each of conspiring to commit wire fraud and conspiring to commit money laundering, as well as on four substantive counts of wire fraud and 10 substantive counts of money laundering. He was previously charged by criminal complaint on Oct. 2, 2019.

On March 6, 2019, two conspirators – Katelyn McClure and Johnny Bobbitt Jr. – pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering, respectively, in connection with the same scheme. They are both awaiting sentencing.

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

In November 2017, D’Amico and McClure created a crowd source funding page on GoFundMe’s website, titled: “Paying It Forward.” The campaign solicited donations from the public, purportedly for the benefit of homeless veteran Bobbitt. D’Amico and McClure posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a good Samaritan and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited, with a goal of $10,000, to get Bobbitt off the streets and provide living expenses for him.

The story told by D’Amico and McClure was not true. McClure never ran out of gas and Bobbitt never spent his last $20 for her. D’Amico and McClure conspired to create the false story to obtain money from donors based on false information. The false story was quickly picked up by local and national news outlets and went viral. Approximately $400,000 from more than 14,000 donors throughout the country was raised in less than one month.

The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money was quickly spent by D’Amico and McClure on personal expenses over the next three months, including significant amounts by D’Amico for gambling, as well as for vacations, a BMW automobile, clothing, handbags and other personal items and expenses.

In mid-November 2017, when the donations had reached approximately $1,700, D’Amico and McClure told Bobbitt about the campaign and the false story. In December 2017, after D’Amico helped open a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.

The charge of wire fraud conspiracy and the four substantive wire fraud charges each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of conspiracy to commit money laundering, as well as five of the substantive money laundering counts, each carry a maximum penalty of 10 years in prison and a fine of $250,000. The remaining five charges of money laundering charges each carry a maximum penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges. He also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; and officers of the Florence Township Police Department for their work on the case.

The government is represented by Senior Trial Counsel Jason M. Richardson and Assistant U.S. Attorney Jeffrey B. Bender of the U.S. Attorney's Office Criminal Division in Camden.

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

NEWARK, N.J. – Two New Jersey men were today sentenced to prison terms for their respective roles in using phony monetary instruments to obtain luxury vehicles and other high value items; one of the defendants was additionally convicted of bankruptcy fraud, U.S. Attorney Craig Carpenito announced.

Germaine Howard King, a/k/a “Germaine Howard,” 47, of Elizabeth, New Jersey, was sentenced to 70 months in prison, and Daniel D. Dxrams, currently known as “Daniel Kusi,” formerly known as “Danny D. Dxrams,” 41, of Maplewood, New Jersey, was sentenced to 57 months in prison. U.S. District Judge John Michael Vasquez imposed the sentences today in Newark federal court.

King was convicted for his role in a scheme to defraud banks and other lenders using phony money orders to fraudulently discharge a $400,000 mortgage, to fraudulently obtain two Mercedes Benz (one 2007 and one 2010) cars, and to pay off credit card bills. In addition, King was convicted of a scheme to use phony cashier’s checks to pay off his co-defendant’s five luxury cars.

Dxrams was convicted for his role in a scheme to fraudulently pay off a Rolls Royce, Bentley, and three Mercedes Benz cars (two 2015 cars and one 2016 car). In addition, Dxrams was convicted of bankruptcy fraud and making a false oath during a bankruptcy proceeding.

Two co-defendant were sentenced by Judge Vasquez on Dec. 18, 2019: Melissa Reynolds, 43, of Elizabeth, who previously pleaded guilty to an information charging her with conspiracy to commit mail fraud, mail fraud affecting financial institutions, and bank fraud, was sentenced to one year and one day in prison, five years of supervised release, restitution of $587,081 and forfeiture of $548,242; Arthur N. Martin 3rd was sentenced to time served (one day), three years of supervised release and fined $12,000.

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

King conspired with Reynolds to make fraudulent money orders on their home computers. They mailed these phony money orders to a credit union in an effort to fraudulently pay off their two Mercedes Benz cars. Although the credit union rejected both bogus money orders, King and Reynolds mailed correspondences to the credit union falsely claiming that the debt was satisfied. They then stopped paying their car loans, and King kept the car. King and Reynolds mailed a fraudulent money order in the amount of $432,000 to a financial institution to pay off their mortgage. The financial institution erroneously accepted the fraudulent payment and credited it as a payoff for the mortgage. When the financial institution filed a suit seeking to reinstate the fraudulently discharged mortgage, King and Reynolds continued to allege in court that the mortgage had been paid and submitted a phony receipt for the bogus money order. King also made and mailed fraudulent money orders in an attempt to pay off his credit card bills.

Dxrams, King, and Reynolds conspired to fraudulently pay off Dxrams’ five luxury cars. They sent a bogus $101,000 cashier’s check to a finance company that enabled Dxrams to obtain a 2012 Bentley for free. Dxrams sold the car to a third party for approximately $82,000 and then issued a bank check to King for approximately $25,000. The defendants also used this scheme in an effort to fraudulently obtain three Mercedes-Benz cars and a Rolls Royce.

Dxrams was also convicted of bankruptcy fraud and making a false oath before the bankruptcy court. In December 2017, Dxrams filed a bankruptcy petition under penalty of perjury. He falsely concealed his ownership of a car rental business and the gross receipts he earned through this car rental business, his sale of the Bentley, his receipt of money from a personal injury lawsuit, his ownership of firearms, and his marital status, among other things. In January 2018, Dxrams appeared before the bankruptcy trustee and, after being placed under oath, made false statements concerning his bankruptcy petition and his sale of the Bentley.

In addition to the prison terms, Judge Vasquez sentenced King to five years of supervised release and restitution of $597,781. Dxrams was sentenced to three years of supervised release, restitution of $93,236 and forfeiture of $82,000.

U.S. Attorney Carpenito credited special agents of the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. Office of Homeland Security and Preparedness, under the direction of Director Jared Maples; the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Debbi Mayer; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi with the investigation leading to the convictions.

The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman, of the National Security Unit, in Newark.

Defense counsel: King: Pro Se
Dxrams: Michael Orozco Esq., Woodland Park, New Jersey
Reynolds: Robert J. Degroot Esq., and Oleg Nekritin Esq., Newark

NEWARK, N.J. – A sergeant with the Paterson Police Department was arrested today and charged with conspiring to violate the civil rights of an individual in Paterson and with falsifying a corresponding police report, U.S. Attorney Craig Carpenito announced. 

Police Officer Michael Cheff, 49, of Paterson, was arrested by the FBI this morning and charged by complaint with conspiring to deprive an individual of civil rights under color of law and with falsifying a police report. Cheff is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.

According to documents filed in this and other cases and statements made in court:

Certain Paterson police officers stopped and searched motor vehicles, without any justification, and stole cash and other items from the occupants of the motor vehicles. These officers also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized cash from them. Cheff routinely received a portion of these stolen monies from some of these officers and signed off on corresponding false police reports about the underlying incidents. In 2016, Cheff told one of the officers to start “tagging,” or logging into evidence, some of the money that the officer was stealing, because effecting narcotics arrests without logging money into evidence would otherwise raise questions. 

On Nov. 14, 2017, three officers stopped and arrested an individual and one of the officers stole a few hundred dollars from that individual. The officers then went to the individual’s apartment, and Cheff joined them. One officer stayed behind to guard the arrested individual, who was handcuffed in a police car, while the others, including Cheff, obtained consent to search the apartment by lying to the individual’s mother. 

Cheff and the other two officers then searched the individual’s room. Cheff located a safe inside a closet in the room and took money and narcotics from the safe. He handed a small portion of the money to one of the officers and told the officer to log it into evidence. Cheff put the rest of the money in his pocket. At the Paterson police station, in a bathroom, Cheff gave the officer who had stayed behind to guard the individual a portion of the stolen money and gave a portion of the stolen money to one of the officers who had searched the apartment with him. 

Cheff also approved a police report that falsely stated that the officers had recovered $319 from a shelf in the individual’s room. In fact, Cheff knew that he had stolen a substantial sum of money from a safe in the room.

Later that day, one of the officers sent text messages to another officer discussing Cheff’s theft of money. The officer said, among other things, that Cheff “got us for over a stack today,” that “there was a safe” and that Cheff “grabbed the cash.” According to the individual whose apartment was searched, the safe contained approximately $2,700, and all of it was missing after the search was completed. 

The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison. The false records charge carries a maximum penalty of 20 years in prison. The maximum fine for each count is $250,000.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s arrest.  He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.

The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.

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

NEWARK, N.J. – A New York man was sentenced today to 60 months in prison for participating in a scheme that used secret card-reading devices and pinhole cameras on various New York and New Jersey bank locations to steal at least $390,141.

U.S. Attorney Craig Carpenito, District of New Jersey; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Special Agent in Charge Brian Michael of the Department of Homeland Security, Homeland Security Investigations (HSI), Newark made the announcement.

Bogdan Rusu, 39, of Queens, New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to commit bank fraud. Judge Salas imposed the sentence today in Newark federal court.

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

Rusu and others engaged in a widespread bank fraud conspiracy that targeted various banks in Massachusetts, New York and New Jersey.  Rusu and others captured payment card account information from customers as they accessed their accounts through automatic teller machines (ATMs) and then used that information to steal money from the customers’ bank accounts.  As part of the scheme, Rusu and others installed devises on ATMs in New Jersey and elsewhere to  illegally obtain customer account information, including account numbers and personal identification numbers.  Rusu and others would then transfer the illegally obtained information to counterfeit payment cards and use those counterfeit cards to steal money from the accounts.   Eleven other defendants charged in this scheme have pleaded guilty.

In addition to the prison term, Judge Salas sentenced Rusu to three years of supervised release and restitution of $390,141.

U.S. Attorney Carpentio and Assistant Attorney General Benczkowski credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Michael in Newark; special agents of the U.S. Secret Service, Boston Field Office; East Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; Medford, Massachusetts, Police Department; Ludlow, Massachusetts Police Department; and the Massachusetts State Police, with assistance from the victim banks, with the investigation leading to today’s guilty plea. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts, Springfield Division assisted in the investigation and prosecution. 

The government is represented by Assistant U.S. Attorney Angelica Sinopole of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.

CAMDEN, N.J. – Two members of a drug-trafficking organization today admitted their roles in distributing significant amounts of illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.

Jameel Byng, 26, and Kaliel Johnson, 27, both of Camden, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to their roles in a conspiracy based on the 500 block of Pine Street in Camden and responsible for selling heroin, crack cocaine and cocaine. Byng pleaded guilty to an information charging him with one count of conspiracy to distribute and possess with intent to distribute heroin and powder cocaine. Johnson pleaded guilty to an information charging him with one count of conspiracy to distribute and possess with intent to distribute heroin.

Nine other members of the drug-trafficking conspiracy – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, Naeem Sadler, and Jasmin Velez – previously have pleaded guilty in this case. The charges against eight other defendants in this case remain pending.

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

An investigation led by the FBI used surveillance tactics, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations of the drug-trafficking organization in which Byng and Johnson participated.

The count to which Byng pleaded guilty carries a mandatory penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. The count to which Johnson pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine.

U.S. Attorney Craig Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Prosecutor Acting Camden County Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.

The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.

The charges and allegations against the other defendants are merely accusations, and they are presumed innocent unless and until proven guilty.

Defense counsel: Byng: Tamika McKoy Esq., Camden
Johnson: Edward F. Borden Esq., Cherry Hill, New Jersey

CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted his role in a conspiracy to defraud the U.S. Department of Defense (DoD), U.S. Attorney Craig Carpenito announced.

Hurriyet Arslan, 49, of Willingboro, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of conspiracy to commit mail, wire and bank fraud, one count of bank fraud and one count of money laundering.

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

Corporation 1 had a contract with the DoD to supply jet fuel to troops operating in southeast Asia. Corporation 1 employed an individual in Fort Lee, New Jersey – identified as “Victim 1” – who was responsible for communicating with the federal government through a government computer system.

Conspirators located overseas designed and deployed on the Internet fraudulent web pages (phishing pages) that resembled the public-facing website of the General Service Administration. From June 2018 through September 2018, the conspirators caused phishing e-mails to be sent to various DoD vendors, including Victim 1, in an attempt to trick the vendors into visiting the phishing pages. These e-mails appeared to be legitimate but were actually fraudulent e-mails that contained electronic links to the phishing pages. Those customers who clicked on the electronic links were directed automatically to the phishing pages, where they saw what appeared to be the GSA’s System for Award Management (SAM) website and were prompted for, and entered, their log-in credentials and personal key.

The conspirators caused Victim 1’s log-in credentials and personal key to be intercepted and transmitted, not to the GSA, but to computers and e-mail accounts that the conspirators controlled.

Arslan was the owner of Deal Automotive Sales in Florence, New Jersey. At the request of an individual in Germany, he opened a shell company based in New Jersey, with a mobile phone number and bank account. Arslan sent the mobile phone SIM card and bank account information to a conspirator in California. For doing this, Arslan received two wire transfers from someone in Turkey. Due to suspicious activity, the bank shut down the bank account, and the conspirator in California asked Arslan for his account information for Deal Automotive, which he provided.

On July 27, 2018, DoD awarded Corporation 1 a $23.5 million contract to provide Aviation JA1 Turbine fuel to troops operating in southeast Asia. The conspirators used Victim 1’s log-in credentials to access Corporation 1’s government account and changed the bank account information to reflect a bank account controlled by Arslan. The conspirator in California contacted the DoD, identifying himself as Victim 1, and confirmed that Corporation 1’s payment method had been changed to the Deal Automotive Sales bank account.

DoD transferred $23.5 into Arslan’s Deal Automotive Sales bank account, which Arslan accessed at a branch in Burlington County and transferred a portion of the money to other accounts he controlled.

The counts of conspiracy and bank fraud to which Arslan pleaded guilty carry a maximum potential penalty of 30 years in prison and a fine equal to the greatest of $1 million or twice the gross profits received or gross loss from the offense. The count of money laundering to carries a maximum penalty of 10 years in prison and a fine of $250,000 or two times the gross profits received from the offense or two times the gross loss sustained by the victims.  Sentencing is scheduled for April 13, 2020.

U.S. Attorney Carpenito credited criminal investigators of the United States Attorney’s Office, special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; special agents of the General Service Administration, Office of Inspector General, under the direction of Acting Special Agent in Charge Stephen Lobaugh, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Sara Aliabadi of the U.S. Attorney=s Office Criminal Division in Camden.

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 Jersey

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

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. 

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, Florida

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

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

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.

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

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.

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, 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

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

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.

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 Jersey

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.

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

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.

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.