District of New Jersey

NEWARK, N.J. – A Bronx, New York, man today admitted participating in a conspiracy to carry out a $3.5 million scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” U.S. Attorney Craig Carpenito announced.

Saoud “Sam” Rihan, 59, pleaded guilty before U.S. District Judge John Michael Vazquez to an indictment charging him with one count of conspiracy to commit bank fraud.

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

Rihan was a business partner of Simon Curanaj, 65, of Yonkers, New York. From 2012 through January 2014, Rihan, Curanaj, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOC) from banks on residential properties in New Jersey and New York.

In 2013, Rihan and Curanaj executed a deed to transfer ownership of a Bronx property to people identified in the complaint as “Individual 1” and “Individual 2,” neither of whom lived at the property. Rihan offered Individuals 1 and 2 $10,000 cash payments for acting as straw borrowers but never paid them. Rihan and Curanaj then applied for three HELOCs valued at $750,000 from multiple banks in the name of Individual 2.

Rihan and Curanaj hid the fact that the same Bronx property was pledged as collateral in all three applications. The applications also fraudulently inflated Individual 2’s income. In addition, at the time the applications were made, the value of the Bronx property, which was encumbered by a mortgage, was far less than the amount of the HELOC loans that Rihan and the real estate broker applied for.

The victim banks eventually issued loans to Individual 2 in excess of $370,000. After the victim banks funded the HELOCs and deposited money into Individual 2’s bank accounts, Individual 2 disbursed almost all of the funds to Rihan, Curanaj, and others. In 2014, Individual 2 defaulted on all the HELOC loans.
The overall scheme resulted in over $3.5 million in losses to the victim banks.

Rihan faces a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 25, 2020.

Curanaj previously pleaded guilty to his role in the scheme and is awaiting sentencing.

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

The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA-OIG.

Defense Counsel: Jeffrey Garrigan Esq., Jersey City, New Jersey

CAMDEN, N.J. – A Trenton doctor today admitted his role in two separate conspiracies for defrauding New Jersey state health benefits programs and accepting kickbacks in exchange for referring laboratory work, U.S. Attorney Craig Carpenito announced. A pharmaceutical representative admitted his role in a separate health care fraud conspiracy and to obstructing justice by telling witnesses to lie to the grand jury investigating the scheme.

Dr. Daniel Oswari, 48, of Bordentown, New Jersey, pleaded guilty today before U.S. District Judge Robert B. Kugler in Camden federal court to two counts of an indictment charging him with conspiracy to commit health care fraud and wire fraud (Count One) and conspiracy to violate the Anti-Kickback Statute and the Travel Act (Count 23). Mark Bruno, 45, of Northfield, New Jersey, also pleaded guilty before Judge Kugler to an information charging him with conspiracy to commit health care fraud and obstruction of justice.

Oswari was charged in October 2019 along with Steven Monaco, Michael Goldis, and Aaron Jones, and charges remain pending against those three defendants.

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

Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.

Between January 2014 and April 2016, Oswari participated in a conspiracy that discovered that certain insurance plans paid for certain prescription compound medications – a including vitamins and pain creams – from a Louisiana pharmacy, identified in the indictment as the “Compounding Pharmacy 1,” and a Pennsylvania pharmacy, identified in the indictment as “Compounding Pharmacy 2.” The conspirators targeted patients with these insurance plans that provided coverage for the compound medications, particularly New Jersey state and local government and education employees. An entity referred to in the indictment as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, and other insurance plans. The Pharmacy Benefits Administrator paid prescription drug claims and then billed the State of New Jersey or the other insurance plans for the amounts paid.

Oswari and members of his staff tried to persuade patients to receive the prescription compound medications, even if the patients did not have a medical necessity for the medications.  Oswari signed printed prescription forms from Compounding Pharmacies 1 and 2 that had pre-selected the highest number of refills to obtain the highest possible insurance reimbursement.  Oswari signed some prescriptions without seeing or evaluating the individuals, including for individuals who were not his patients. Oswari signed approximately 285 prescriptions for compounded medications, and the Pharmacy Benefits Administrator paid Compounding Pharmacies 1 and 2 approximately $1.9 million for the prescriptions he signed. In exchange for signing the prescriptions, Oswari received cash kickbacks. 

Oswari also pleaded guilty to a separate conspiracy to take kickbacks for referring laboratory work and signing prescriptions. Oswari had a laboratory hire his medical assistant as a phlebotomist. The medical assistant continued to work for Oswari, but laboratory paid her salary for over two years. In return, Oswari referred his blood and urine samples to the laboratory for testing. This lab work was insured by Medicare, New Jersey Medicaid, and other insurance companies. 

Bruno worked for a company that marketed compounded medications and received a percentage of the insurance payments. Bruno introduced a doctor to the company and received a percentage of the payments for prescriptions that the doctor wrote. Bruno and others paid the doctor to reward him for signing prescriptions. Bruno recruited individuals covered by New Jersey state insurance plans because he knew that those plans paid thousands of dollars for certain compounded medications. Bruno paid several of these individuals to see his doctor and receive prescriptions for compounded medications. Bruno received $68,872 from the company and caused $524,935 in losses.

Bruno learned in 2018 that the federal grand jury was investigating him. In 2019, two individuals paid by Bruno to receive compounded medications told him that they had received subpoenas to testify in the grand jury, and another two told Bruno that they were contacted by the FBI. Bruno told the first two to lie in the grand jury and deny that he paid them. Bruno told the other two to tell the FBI that he had not paid them.

The health care fraud and wire fraud conspiracy count to which Oswari pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The kickbacks conspiracy count to which Oswari also pleaded guilty carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The heath care fraud conspiracy and obstruction of justice charges to which Bruno pleaded guilty each carry a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense.

Sentencing for Oswari is scheduled for March 23, 2020, and sentencing for Bruno is scheduled for March 24, 2020.

U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the guilty pleas.  He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Aimee Nason, for its assistance in the investigation.

The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Christina O. Hud of the U.S. Attorney’s Office in Camden.

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

NEWARK, N.J. – A California man has been charged with conspiring to distribute approximately 114 kilograms of cocaine in Hunterdon County, New Jersey, U.S. Attorney Craig Carpenito announced today.

Angel Alfonso Maldonado, 25, of Long Beach, California, is charged by complaint with one count of conspiring to distribute and possessing with intent to distribute over five kilograms of cocaine. He appeared today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained.

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

Law enforcement officers in the area of Clinton Township, New Jersey, observed a tractor-trailer pull off I-78 onto the shoulder of the highway. Maldonado, who is the owner of the tractor-trailer, appeared nervous when law enforcement approached. 

A certified narcotics detection canine screened the outside of the tractor-trailer and alerted for the presence of narcotics on the side of the cabin of the tractor-trailer, as well as inside the cabin. Law enforcement subsequently searched the cabin and found two hidden compartments. Each hidden compartment contained approximately 57 kilograms of suspected narcotics. The approximately 114 kilograms were plastic wrapped, consistent with narcotics packaging. Law enforcement field-tested some of the kilograms, which tested positive for the presence of cocaine.

The count of conspiracy to distribute and possess with intent to distribute over five kilograms of cocaine carries a maximum penalty of life in prison, a mandatory minimum term of 10 years in prison, and a $10 million fine.

U.S. Attorney Carpenito credited the U.S. Attorney Carpenito credited the DEA Strike Force including agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision, with the investigation leading to today’s charge..

The government is represented by Unit Chief Meredith J. Williams and Assistant U.S. Attorney Lauren E. Repole of the Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.

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

NEWARK, N.J. – A Monmouth County man has been charged with being a previously convicted felon in possession of a firearm, U.S. Attorney Craig Carpenito announced today. The weapon in question was found, along with a number of other weapons and ammunition, during a lawful search of a pawn shop and residence connected to one of the perpetrators of the Dec. 10, 2019, mass shooting in Jersey City, New Jersey.

Ahmed A-Hady, 35, of Keyport, New Jersey, is charged in a criminal complaint with one count of being a previously convicted felon in possession of a firearm. He was arrested by FBI agents early this morning and is expected to appear on Monday before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.

According to the complaint, filed today:

On Dec. 10, 2019, there was a mass shooting in Jersey City in which two individuals, a male (Individual 1) and a female (Individual 2), killed three civilians after earlier killing a law enforcement officer. After the shooting, law enforcement recovered from Individual 1’s right rear pants pocket a handwritten note that contained a telephone number ending in 4115, and a Keyport, New Jersey, address. Law enforcement also recovered several weapons carried by Individuals 1 and 2, including an AR-15 rifle.

FBI agents determined that the phone number ending in 4115 contained on the note belonged to A-Hady. Law enforcement also determined that the Keyport address listed on the note was a storefront for a pawn shop.

Law enforcement obtained records of A-Hady’s history of firearm purchases. Those records indicated that around May 23, 2007, A-Hady purchased a Smith and Wesson .45 caliber handgun bearing serial number NHN5284 (the “.45 caliber”). Records also indicate that on or about June 2, 2007, A-Hady purchased a Smith and Wesson .44 caliber handgun bearing serial number CEV4085 (the “.44 caliber”).

Subsequent to purchasing the firearms, A-Hady was convicted on April 2, 2012, in Monmouth County Superior Court, of attempting to obtain a controlled dangerous substance or analog by fraud, a crime punishable by more than one year in prison. As a result of that conviction, A-Hady is no longer permitted to possess a firearm.

On the evening of Dec. 13, 2019, law enforcement officers traveled to the pawnshop and interviewed A-Hady and two of his relatives. During the course of A-Hady’s interview, he admitted to owning both the .45 caliber and the .44 caliber, but falsely denied that they were on the premises.

After A-Hady was interviewed, one of his relatives (Relative-1) told law enforcement that there was a safe located inside Company A. Relative-1 further stated that the safe contained firearms, including A-Hady’s .44 and .45 caliber handguns. Relative-1 subsequently consented to a search of the safe located inside the pawnshop. Law enforcement recovered three firearms: (i) a PK 380; (ii) a Ruger 9mm bearing serial number 33389546; and (iii) the Smith and Wesson .44 caliber handgun bearing serial number CEV4085 referenced above.

Law enforcement then lawfully searched both the pawnshop and A-Hady’s private residence. During the search of the pawnshop, law enforcement recovered six rifles (including three AR-15-style assault rifles), three handguns, and one shotgun. In addition, during the searches of the pawnshop and A-Hady’s private residence, law enforcement recovered over 400 rounds of ammunition, including a large number of hollow point bullets.

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

U.S. Attorney Craig Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the Office of the New Jersey Attorney General, under the direction of Attorney General Gurbir S. Grewal; and the N.J. State Police, under the direction of Col Patrick J. Callahan, with the investigation leading to the charge. U.S. Attorney Carpenito also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez,  the Jersey City Police Department, under the direction of Director James Shea, and the Keyport Police Department, under the direction of Chief Mark Hafner, for their assistance.

The government is represented by Ronnell Wilson, Chief of the National Security Unit of the U.S. Attorney’s Office for the District of New Jersey, and Assistant U.S. Attorneys Dean C. Sovolos and Thomas S. Kearney, also of the National Security Unit.

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

TRENTON, N.J. – A Roslyn, New York, man was sentenced today to 24 months in prison for demanding bribes in exchange for his assistance in securing contracts between a Texas financial services company and two New Jersey information technology staffing companies, U.S. Attorney Craig Carpenito announced.

Mark Berger, 59, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of conspiracy to violate the Travel Act. Judge Shipp imposed the sentence today in Trenton federal court.

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

From January 2011 through March 2013, Berger was the chief information officer of SWBC, a financial services company based in Texas, and had the ability and authority to hire certain companies to perform work. Berger entered into contracts between SWBC and two companies based in New Jersey, including DaVinci Technology Corp., for information technology and staffing services.

As a condition of the contracts, Berger demanded that the owner of the IT companies, Anthony Curlo of Chester, New Jersey, pay him a certain percentage of the monies that the companies would receive from SWBC.

The IT companies received approximately $3 million in revenue from SWBC. Under the terms of the illegal kickback arrangement between Berger and Curlo, Berger was supposed to receive $1.14 million in kickback payments. Berger actually received $985,000 in cash payments, which were delivered to his home in New York.

In addition to the prison term, Judge Shipp sentenced Berger to two years of supervised release.

Curlo previously pleaded guilty to his role in the scheme on Sept. 21, 2016 and is awaiting sentencing.

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

The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: John Carman Esq., Garden City, New York

NEWARK, N.J. – A Bergen County doctor has been indicted for distributing opioids without a legitimate medical reason and falsifying medical records to cover it up, U.S. Attorney Craig Carpenito announced today.

Robert Delagente, 45, of Oakland, New Jersey, was indicted on one count of conspiracy to distribute controlled dangerous substances, three counts of distribution of controlled dangerous substances, and one count of falsifying medical records. Delagente will be arraigned at a later date.

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

Beginning in May 2014, Delagente was a doctor at a medical practice called North Jersey Family Medicine (NJFM) in Oakland, New Jersey. He allegedly described himself in conversations pertaining to his prescribing of painkillers as the “Candy Man” and the “El Chapo of Opioids.” Delagente knowingly prescribed controlled substances, such as oxycodone, Percocet, Tylenol with codeine, and various benzodiazepines (alprazolam, diazepam, clonazepam, and temazepam), outside the ordinary course of professional practice and without a legitimate medical purpose. He ignored the inherent danger and medical risk of overdose, drug abuse, and death that can accompany prescriptions of highly addictive opioids, benzodiazepines, and muscle relaxers, both on their own and in combination with one another.

Delagente prescribed controlled substances without ever seeing the purported patient for a medical visit or even discussing with the patient the medical need for the prescription. He allowed patients to ask him for controlled substances via text message and would write a prescription for patients that he would leave at the front desk, without requiring an office visit or consultation of any kind. He allowed patients to dictate the strength and dosage of the controlled substances he prescribed for them. Delagente also prescribed the dangerous drug combination known as the “Holy Trinity,” comprised of opioids (usually oxycodone), benzodiazepines (usually alprazolam) and muscle relaxers (usually carisoprodol).

Delagente failed to monitor patients for addiction and ignored drug screening tests to determine whether certain patients were taking illicit drugs. In fact, Delagente prescribed controlled substances to patients he knew were addicted to opioids or other controlled substances. In one instance, an NJFM employee texted Delagente that a patient had gotten a babysitter and driven a long distance to get to the practice, but had been unable to see a doctor. Delagente responded: “Oh well … C’est la vie! Lol … He can wait for his oral heroin another day. Lol.”

One patient texted Delagente that the patient “probably can’t stop the pk’s,” referring to painkillers. The patient told Delagente that the patient “would need a plan to stop…not cold turkey.” A few days later, when the patient was having trouble obtaining pain medication, the patient wrote to Delagente that “If I go 4 days without [painkillers] I am in huge trouble.” In response, Delagente wrote “I will leave you a short supply RX [prescription] at the front to pick up.” Delagente then wrote the patient a prescription for 120 tablets of 30-milligram oxycodone for 30 days. Delagente at one point told this patient: “I’m literally sticking my neck out and can lose my medical license or [be] arrested for what I just did.”

Delagente also was charged with altering medical records of patients who received controlled substance prescriptions from him after law enforcement officials had subpoenaed the records in late April 2019.

Delagente faces a maximum penalty of 20 years in prison and a $1 million fine on each of the distribution of controlled dangerous substances charges. Delagente faces a maximum penalty of 20 years in prison and a $250,000 fine on the count of falsifying medical records.

U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Jason S. Gould and Sean Sherman of the Opioids Unit in Newark.

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

Defense counsel: Marc Calello Esq., Bloomfield, New Jersey

CAMDEN, N.J. – A Camden man was sentenced today to 45 months in prison for cashing fraudulently obtained tax refund checks issued by the U.S. Treasury, unlawfully utilizing the stolen identities of residents of Puerto Rico to effectuate the scheme, and tampering with a witness, U.S. Attorney Craig Carpenito announced.

Alberto Sanchez, 34, previously pleaded guilty before U.S. District Judge Robert B. Kugler to five counts of an indictment: two counts of theft of government funds, two counts of aggravated identity theft and one count of tampering with a witness or victim. Judge Kugler imposed the sentence today in Camden federal court.

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

Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They then complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund. They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access. With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control or cashing the checks at check cashing businesses.

For the 2013 tax year, more than 3,300 SIRF tax returns were filed using the names and Social Security numbers of residents of Puerto Rico, and where the refunds were directed to be mailed to a small section of Pennsauken, New Jersey. Of the 3,300 returns filed, several of the refunds checks were issued and ultimately cashed at check cashing agencies in New Jersey, Philadelphia, and New York using false and fraudulent identifications, including fake New Jersey driver's licenses, fake Social Security cards, and fake Department of Homeland Security Permanent Resident Identification cards.

On March 28, 2018, Sanchez and others were indicted by a federal grand jury. According to the indictment, the defendants and their conspirators obtained stolen identities of residents of Puerto Rico to falsely and fraudulently generate income tax refund checks. The conspirators recruited mail carriers from the U.S. Postal Service as part of the scheme to steal the tax refund checks from the mail. The mail carriers were paid for every U.S Treasury check that was stolen. The conspirators paid “check couriers” to cash the tax refund checks in a variety of ways, including at check cashing businesses in and around Camden. The check couriers presented false and fraudulent identifications at the check cashing businesses matching the names on the tax refund checks in order to cash the checks. The scheme caused $565,091 in losses to the U.S. Treasury.

Sanchez admitted that during 2014, he cashed Treasury income tax refund checks that were issued to other people. He used an Alien Permanent Resident Identification Card, which had his photograph, but the name, address and identifying information of another individual, and a Social Security card, which had a name and Social Security number that matched the information on the income tax refund check. Sanchez also admitted that, upon finding out that another person was arrested for participating in the scheme, he told that person to lie to investigators.

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

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, Newark Field Office, and Special Agent in Charge Guy Ficco, Philadelphia Field Office; and special agents of the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to today’s sentencing. He also thanked the U.S. Postal Inspection Service for its assistance with the investigation.

The government is represented by Assistant U.S. Attorney Jason M. Richardson and Assistant U.S. Attorney Christina O. Hud of the Criminal Division.

Defense counsel: Jose Luis Ongay Esq., Camden

NEWARK, N.J. – The former chief financial officer (CFO) of a Sussex County retail construction company was arrested today for defrauding the company and several lenders, including by embezzling millions of dollars for his own personal benefit, U.S. Attorney Craig Carpenito announced.

Jonathan Baker, 38, of Green Township, New Jersey, was indicted on five counts of wire fraud and three counts of money laundering. He was arrested this morning by special agents of the FBI and is scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.

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

Baker held the title of CFO of Victim-Company 1, a small, privately held retail construction company located in Sparta, New Jersey. The company acted as a construction manager and a general contractor for construction projects, such as new business offices, retail spaces, and restaurants. Baker also held the title of manager of Victim-Company 2, which held 100 percent of the voting and equitable interest in Victim-Company 1.

From 2015 through 2018, Baker defrauded both companies and several commercial lenders, embezzling millions from the companies and fraudulently inducing commercial lenders into providing funds to Baker and his associated entities through fraudulent use of Victim-Company 1’s name, bank statements, balance sheet, and bank accounts.

Baker misappropriated millions of dollars from the Victim-Companies’ bank accounts and used the funds for his personal expenses, including mortgage payments on Baker’s residence, the purchase of a BMW, and the purchase of six donkeys. He also used the Victim-Companies’ credit cards to make unauthorized personal purchases.

Baker obtained funds by causing Victim-Company 1 to enter into agreements with commercial lenders through falsified documents, such as false resolutions of the Board of Directors of Victim-Company 1.

Baker concealed the fraud by making false statements to members of the Victim-Companies after they confronted him with evidence of the fraud. He falsely claimed that a commercial lender had made a mistake in filing a lien against Victim-Company 1 and repeatedly misrepresented that the commercial lender would be issuing a retraction and apology. Baker then refused to meet or join conference calls with the members of the companies to discuss the liens against Victim-Company 1, refused to produce the Companies’ bank statements, changed the locks on the Companies’ offices, and attempted to disable the Companies’ email and phone system.

The wire fraud counts each carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The money laundering counts each carry a maximum potential penalty of 10 years in prison and $250,000 fine, or twice the gross gain or loss from the offense.

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

The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Courtney A. Howard of the U.S. Attorney’s Office Economic Crimes Unit.

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

Defense counsel: Michael Weinstein Esq., Hackensack, New Jersey

CAMDEN, N.J. – A grand jury has returned an indictment against five members of a drug-trafficking organization for conspiring to distribute significant amounts of narcotics through an open-air drug market in Camden, U.S. Attorney Craig Carpenito announced today.

The indicted defendants include: Juan Figueroa, 22; Christopher Vasquez, 29; Jose Diaz, 27; and Jose Agron, 26, all of Camden; and Dwight Williams, 28, of Lumberton, New Jersey. The indictment charges each defendant with participating in a drug trafficking conspiracy that involved at least one kilogram of a mixture and substance containing heroin; at least 280 grams of a mixture and substance containing cocaine base (“crack cocaine”); and quantities of cocaine and fentanyl. Each defendant named in the indictment was previously charged by federal complaint.

Nine other members of the drug-trafficking conspiracy – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, Naeem Sadler, and Jasmin Velez – previously have pleaded guilty in this case. The charges against four other defendants in this case remain pending, and they and the defendants indicted today are presumed innocent unless and until proven guilty.

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

The FBI used surveillance, confidential informants, consensual recordings, multiple controlled drug purchases, a GPS vehicle tracker, search warrants of several different locations, and several court-authorized wiretaps to uncover the operations of a drug trafficking organization that dealt heroin, crack cocaine, cocaine, and fentanyl in and around Camden. The organization’s activities were concentrated on the 400-500 blocks of Pine Street, where members distributed drugs to customers who approached on foot and in vehicles. The organization also supplied drugs elsewhere, including in and around the residences of some of its members.

Members of the organization previously had conducted drug trafficking activities in and around the 1900 block of Filmore Street. After a fatal, drug-related shooting in that area in April 2017, local law enforcement increased their presence in the area and the drug-trafficking activities ultimately shifted to the area around Pine Street.

The investigation revealed that the organization’s members worked together in a multi-layered organization to supply drugs. The main role of Ronnie Lopez – one of the leaders of the organization – was to obtain bulk quantities of illegal drugs for sale to customers. The organization also had distributors and packagers, such as Carlos Perez and Nelson Salcedo, whose main roles were to obtain drugs from Lopez and others and to prepare and package the drugs for distribution downstream. The organization used “runners,” or managers, like Juan Figueroa and Paul Salcedo. These individuals obtained drugs from higher-level distributors and packagers within the organization and then provided those drugs downstream to shift managers like Jose Diaz and Christopher Vazquez. “Runners” also collected drug proceeds from lower-level shift managers and provided that money to higher-level members of the organization, such as Lopez. Shift managers, in turn, supervised the organization’s set workers, including Jose Agron, Dwight Williams, Elisa Rivera, Jasmin Velez, Kaliel Johnson, William Carrillo, Meylin Troncoso, Waldemar Garcia, Naeem Sadler, Jameel Byng, Ramon Velez and David Velez. These set workers sold drugs directly to customers and passed the proceeds up the organizational hierarchy.

Multiple communications intercepted by wiretaps reflected that members of the organization owned guns and were prepared to use them. In November 2018, law enforcement officers recovered firearms during the execution of several search warrants on locations related to the drug-trafficking organization. Juan Figueroa currently is facing several charges in Camden County Superior Court regarding the Aug. 7, 2018, shooting of two law enforcement officers, who were in an unmarked car and wearing plain clothes after having conducted surveillance earlier in the day on members of the organization. Also, some of the heroin that was purchased from the organization bore the same stamp as drugs found at the sites of drug overdoses in Camden, including two fatal overdoses.

The drug trafficking conspiracy count carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.

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

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

Defense counsel:

Juan Figueroa: Paul Sarmousakis Esq., Avalon, New Jersey
Vasquez: Edward J. Crisonino Esq., Collingswood, New Jersey
Diaz: John B. Brennan Esq., Marlton, New Jersey
Agron: Gil Scutti Esq., Somerdale, New Jersey
Williams: Justin Loughry Esq., Camden

NEWARK, N.J. – Two Ocean County, New Jersey, men were charged with possessing cocaine with the intent to distribute; one defendant was also charged with being a felon in possession of a firearm, U.S. Attorney Craig Carpenito announced today.

Mario Galli III, 27, and Jason Vella, 37, both of Toms River, New Jersey, are each charged by complaint with one count of possession with intent to distribute cocaine. Galli is also charged with one count of possession of a firearm by a convicted felon and one count of possession of a firearm in furtherance of a drug trafficking crime.

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

On Sept. 19, 2019, investigators from the Ocean County Prosecutor’s Office executed search warrants on each of the defendants’ residences and recovered in excess of 150 grams of cocaine and drug paraphernalia, including digital scales, glassine envelopes, a money counter, baking soda, grinders, and $2,295 in cash. Also recovered from Galli’s residence was a FEG 9mm Model PGK-9HP gun loaded with 12 rounds of ammunition. At the time, Galli was on supervised release from a 2016 federal conviction for conspiracy to distribute in excess of 500 grams of cocaine.

The charge of possession of cocaine with intent to distribute carries a maximum penalty of 20 years in prison and a $250,000 fine. The count of being a felon in possession of a firearm carries a maximum penalty of 10 years in prison and a $250,000 fine. The count of possession of a firearm in furtherance of a drug trafficking crime carries a maximum penalty of five years in prison, which must be served consecutively to any sentence on the drug count and a $250,000 fine. 

U.S. Attorney Carpenito credited the members of the FBI’s Organized Crime Task Force under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and investigators from the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, with the investigation leading to the charges.

The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney=s Office’s Organized Crime/Gangs Unit in Newark.

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

TRENTON, N.J. – Two New York men were charged today with conspiracy to commit extortion using threats of force, violence, and fear, U.S. Attorney Craig Carpenito announced.

Francis A. Garzon, 30, and Endrit Kllogjeri, 26, both of Brooklyn, New York, are each charged by complaint with one count of conspiracy to commit extortion. Both individuals appeared today before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.

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

From Dec. 1, 2019, through Dec, 9, 2019, Garzon and Kllogjeri, along with another unidentified individual, conspired to extort a resident of Monmouth County, New Jersey, -- “Victim 1” – and the resident’s son, who resided in Brooklyn. Victim 1 was allegedly threatened with physical harm if Victim 1 did not recover a bag containing property allegedly valued at $100,000 from Victim 1’s son, identified in the complaint as “Victim 2.” Garzon further demanded an additional payment of $100,000 as “interest” for Victim 2’s possession of the bag. In connection with issuing oral threats against Victim 1, including assuring that Victim 1 did not “know who [Victim 1 was] dealing with,” Garzon additionally brandished a revolver, pointing the weapon at Victim 1 before cocking the revolver’s hammer. In a series of telephone and in-person conversations over several days following the visit to Victim 1’s home, Garzon continued to threaten Victim 1, even sending Victim 1 cellphone messages containing photographs and videos of Victim 2 and Victim 2’s family.

The count of conspiracy to commit extortion carries a maximum potential penalty of up to 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.

U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, New Jersey, and the Marlboro Township Police Department, under the direction of Police Chief Peter Pezzullo, with the investigation leading to the charges. 

The government is represented by Assistant U.S. Attorney Eric A. Boden of the U.S. Attorney’s Trenton Office.

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

NOTE: A fourth defendant, Silviu Catalin Balaci, was arrested in Germany after the issuance of this press release. The attached indictment has been amended to reflect this.

 

NEWARK, N.J. – Three men were arrested today in connection with a cryptocurrency mining scheme that defrauded investors of $722 million, U.S. Attorney Craig Carpenito announced. 

Matthew Brent Goettsche, 37, of Lafayette, Colorado, and Jobadiah Sinclair Weeks, 38, of Arvada, Colorado, are charged by indictment with conspiracy to commit wire fraud and Goettsche, Weeks, and Joseph Frank Abel, 49, of Camarillo, California, are charged by indictment with conspiracy to offer and sell unregistered securities. Goettsche was arrested in Colorado, Weeks in Florida, and Abel in California. All three are scheduled to have their initial appearances in the districts of their arrests. Two defendants remain at large and their identities remain under seal.

“The indictment describes the defendants’ use of the complex world of cryptocurrency to take advantage of unsuspecting investors,” U.S. Attorney Carpenito said. “What they allegedly did amounts to little more than a modern, high-tech Ponzi scheme that defrauded victims of hundreds of millions of dollars. Working with our law enforcement partners here and across the country, we will ensure that these scammers are held to account for their crimes.”

“Those arrested today are accused of deploying elaborate tactics to lure thousands of victims with promises of large returns on their investments in a bitcoin mining pool, an advanced method of profiting on cryptocurrency,” Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office said. “The defendants allegedly made hundreds of millions of dollars by continuing to recruit new investors over several years while spending victims' money lavishly.”

“Today’s indictment alleges the defendants were involved in a sophisticated Ponzi scheme involving hundreds of millions of dollars that preyed upon investors all over the world,” John R. Tafur, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said.  “This was a classic con game with a virtual twist; false promises of large returns for investing in the mining of Bitcoin. IRS Criminal Investigation will continue to work with our law enforcement partners, including the Joint Chiefs of Global Tax Enforcement, to investigate and bring to justice cyber criminals.”    

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

From April 2014 through December 2019, the defendants operated BitClub Network, a fraudulent scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools and rewarded investors for recruiting new investors. Goettsche, Weeks, and others conspired to solicit investments in BitClub Network by providing false and misleading figures that BitClub investors were told were “bitcoin mining earnings,” purportedly generated by BitClub Network’s bitcoin mining pool. Goettsche discussed with his conspirators that their target audience would be “dumb” investors, referred to them as “sheep,” and said he was “building this whole model on the backs of idiots.” Goettsche directed others to manipulate the figures displayed as “mining earnings” during the course of the conspiracy.

For example, in February 2015, Goettsche directed another conspirator to “bump up the daily mining earnings starting today by 60%,” to which his conspirator warned “that is not sustainable, that is ponzi teritori [sic] and fast cash-out ponzi . . . but sure.” In September 2017, Goettsche sent an email to another conspirator in which he suggested that Bitclub Network “[d]rop mining earnings significantly starting now” so that he could “retire RAF!!! (rich as fuck).” Weeks sent an email in June 2017 to Goettsche and another conspirator in which he remarked that BitClub selling shares in BitClub and then not using the money to purchase mining equipment was “not right.” Goettsche, Weeks, and others obtained the equivalent of at least $722 million from BitClub Network investors.    

Goettsche, Weeks, Abel, and others also conspired to sell BitClub Network shares – which were securities – notwithstanding that BitClub Network did not register the shares with the U.S. Securities and Exchange Commission. Weeks and Abel created videos and traveled around the United States and the world to promote BitClub Network. In one video, a conspirator espoused that BitClub Network was “the most transparent company in the history of the world that I’ve ever seen.” In another video, Abel assured investors that BitClub Network was “too big to fail.”              

The wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison, and a fine of up to $250,000. The conspiracy to sell unregistered securities charge carries a maximum penalty of five years in prison and a fine up to $250,000.    

U.S. Attorney Carpenito credited special agents and task force officers of the FBI’s Los Angeles Division’s West Covina Resident Agency, under the direction of Acting Assistant Director in Charge Delacourt; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark; and the IRS Los Angeles Field Office, under the direction of Special Agent in Charge Ryan L. Korner, with the investigation leading to today’s charges.

Anyone who believes they may be a victim may visit www.justice.gov/usao-nj/bitclub or the Department of Justice’s large case website www.justice.gov/largecases. There, victims can find more information about the case, including a questionnaire for victims to fill out and submit.

The government is represented by Unit Chief David W. Feder and Assistant U.S. Attorneys Anthony P. Torntore and Jamie L. Hoxie, of the Cybercrime Unit, and Unit Chief Sarah Devlin of the Asset Recovery and Money Laundering Unit of the U.S. Attorney’s Office in Newark.

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

NEWARK, N.J. – A Staten Island, New York, man has admitted robbing a New Jersey business owner in February 2019, defrauding eight New Jersey businesses from July 2016 through January 2019, and defrauding and stealing the identities of three women, U.S. Attorney Craig Carpenito announced today.

Raymond Scura, 30, pleaded guilty before Judge Claire C. Cecchi in Newark federal court on Dec. 9, 2019, to an information charging him with wire fraud affecting a financial institution, aggravated identity theft, and Hobbs Act robbery.

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

Scura used bad checks and stolen credit cards to obtain goods and services, such as a country club membership, limousine services, luxury hotel expenses, exotic car rentals, and a Rolex watch, in order to appear wealthy and obtain the confidence of his victims, often targeting women. Once he convinced his victims of his purported wealth, he would then steal their identities and accounts to make additional purchases. As a result of his fraud and aggravated identity theft offenses, Scura caused losses to individuals and businesses in excess of $250,000

In February 2019, Scura was a customer of an internet-based business owned and operated by a New Jersey man. To pay for the services of the business, Scura wrote at least one fraudulent check to the victim. When the victim insisted on cash payment, Scura drove with the business owner to a bank, where Scura brandished a gun, threatened to kill the victim, and demanded that the victim deposit a fraudulent check for $10,000 into the victim’s bank account and then withdraw $10,000. The victim did as Scura directed and then gave Scura the $10,000.

The Hobbs Act robbery charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud affecting a financial institution charge carries a statutory maximum of 30 years in prison, and the aggravated identity theft charge carries a mandatory minimum sentence of two years in prison, which must be served consecutively to any other sentenced imposed. Sentencing is scheduled for April 1, 2020.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and members of the Belleville Police Department, under the direction of Chief of Police Mark Minichini, with the investigation leading to the guilty plea. He also thanked the Summit Police Department, the Union County Prosecutor’s Office, the Burlington County Prosecutor’s Office, and the Evesham Police Department for their assistance.

The government is represented by Assistant U.S. Attorneys Christopher Amore of the Organized Crime and Gangs Unit and Elaine Lou of the U.S. Attorney’s Office in Newark.

Defense counsel: Saverio Viggiano Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – The former chief operating officer of a New Jersey custom manufacturing firm admitted today that he made false statements and submitted false documents to the Department of Defense in fulfillment of a machine gun bipod assembly contract, U.S. Attorney Craig Carpenito announced. 

Mark Colello, 54, of Hackettstown, New Jersey, pleaded guilty before U.S. District Judge William Martini in Newark federal court to an information charging him with two counts of making false statements and representations.

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

In April 2015, Colello’s company was awarded government contracts by the U.S. Army, Department of Defense, to manufacture bipod assemblies for the M249 light machine gun that required the use of a specific grade of steel. Colello falsified test results for the hardness of steel used to construct the bipod assemblies and for the magnetic particle inspection of the head and collar joints for the bipods. The weaker grade steel and the faulty head and collar joints caused the legs of the bipods to fail when soldiers attempted to use them to support their machine guns. 

The count of making false statements carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 28, 2020.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; and U.S. Army Criminal Investigations Command, Major Procurement Fraud Unit, under the direction of Special Agent in Charge L. Scott Moreland, for the investigation leading to today’s guilty plea. 

The government is represented by Assistant U.S. Attorney Margaret Mahoney of the National Security Unit.

NEWARK, N.J. – The president and the chief financial officer of a now defunct New Jersey-based marble and granite wholesaler have been arrested for allegedly orchestrating and participating in a scheme to defraud a bank in connection with a $17 million secured line of credit, U.S. Attorney Craig Carpenito announced.

Rajendra Kankariya, 61, of Tenafly, New Jersey, and Rakesh Sethi, 44, of Basking Ridge, New Jersey, are charged by complaint with one count each of conspiracy to commit wire fraud affecting a financial institution. Both defendants made their initial court appearances today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and were each released on $500,000 bonds secured by property.

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

From late 2015 to early 2016, Lotus Exim International Inc. (LEI) obtained from the victim bank a $17 million line of credit to discharge a prior debt and gain working capital. The line of credit was to be secured by LEI’s accounts receivable and assets. In reality, LEI’s accounts receivable and assets were insufficient to serve as collateral for the line.

In order to conceal the lack of sufficient collateral, LEI and its employees, including Kankariya and Sethi, devised a scheme to create fake email addresses on behalf of LEI’s customers so they could pose as those customers and answer the bank’s and outside auditor’s inquiries about the accounts receivables. The scheme involved numerous fraudulent accounts receivable where the outstanding balances were either inflated or entirely fabricated. The scheme caused the victim bank losses of approximately $17 million.

Conspiracy to commit wire fraud affecting a financial institution carries a maximum potential penalty of 30 years in prison and a fine of $1 million or twice the gross gain or loss derived from the offense, whichever is greater.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to these charges.

The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

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

Defense counsel: Kankariya: Michael Baldassare Esq., Newark
Sethi: Danielle M. Corcione Esq., West Orange, New Jersey

NEWARK, N.J. – A Passaic County, New Jersey, man has been indicted on charges of distributing, receiving, and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced today.

Vaughn Tiedeman, 46, of West Milford, New Jersey, is charged by indictment, returned by a federal grand jury on Dec. 4, 2019, with one count of distributing child pornography, one count of receiving child pornography, and one count of possessing child pornography. Tiedeman was initially charged by complaint in April 2019.

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

Between July 2018 and January 2019, Tiedeman used the BitTorrent peer-to-peer file-sharing network to distribute more than 50 video files and 100 image files containing images of child sexual abuse. On April 1, 2019, law enforcement executed a search warrant at Tiedeman’s home and found approximately 6,800 unique still images and 120 unique videos containing images of child sexual abuse.

The distribution and receipt charges each carry a mandatory minimum penalty of five years in prison and a maximum penalty of 20 years in prison and a $250,000 fine. The charge of possession of child pornography carries a maximum penalty of 10 years in prison and a $250,000 fine.

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

The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Cybercrime Unit in Newark.

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

Defense counsel: Michael A. Orozco Esq., Woodcliff Lake, New Jersey

NEWARK, N.J. – A member of the Grape Street Crips gang was sentenced today to life in prison for murder in aid of racketeering, racketeering conspiracy, conspiracy to distribute heroin, and other drug crimes, U.S. Attorney Craig Carpenito announced.

Khalil Stafford, a/k/a “Stod,” a/k/a “Homicide,” 35, of Newark, was previously convicted following a three-week trial before U.S. District Judge Madeline Cox Arleo, who imposed the sentence today in Newark federal court. Stafford had been acquitted of the murder charge following a 2013 state jury trial in Essex County.

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

On June 19, 2010, during a family cookout on Garside Street in Newark, Stafford – a long-time member of the Grape Street Crips – confronted an individual about a drug debt. Stafford and several other gang-members left the cookout to retrieve firearms and later returned. They fired more than a dozen shots at the person whom Stafford originally confronted. A woman who was not involved in the dispute was standing on a nearby porch, and was shot and killed. Two other people were wounded and survived.

Stafford sold heroin and cocaine at the James Baxter Terrace housing complex from 2003 until it was demolished in 2009. After Baxter Terrace was torn down, Stafford continued to distribute heroin and cocaine at the Wynona Lipman public housing complex. In 2014, Stafford and a conspirator sold to DEA confidential informants nearly $20,000 worth of heroin in separate transactions.

Stafford was charged – along with 13 other defendants –with RICO conspiracy, murder in aid racketeering, conspiracy to distribute one kilogram or more of heroin, and possession with intent to distribute one kilogram of more of heroin. All 14 defendants have now been convicted.

Another 66 members and associates of the Grape Street Crips who were arrested in a coordinated takedown in May 2015 were separately charged with drug-trafficking, physical assaults, and witness intimidation, and all have been convicted. These individuals include:

• Corey Hamlet, a/k/a “C-Blaze,” 41, of Newark, sentenced to life in prison; • Kwasi Mack, a/k/a “Welches,” 30, of Newark, sentenced to 45 years in prison and five years’ supervised release; • Tony Phillips, a/k/a “Blue,” 28, of Newark, sentenced to life in prison; • Ahmad Manley, a/k/a “Fresh,” 32, of Summit, New Jersey, sentenced to 35 years in prison and five years’ supervised release; • Rashan Washington, a/k/a “Shoota,” 31, of Newark, sentenced to 30 years in prison and ten years’ supervised release; • Justin Carnegie, a/k/a “Dew Hi,” 31, of Newark, sentenced to 25 years in prison and ten years’ supervised release; • Ahmed Singleton, a/k/a “Gangsta Mu,” 30, of Newark, sentenced to 19 years in prison and five years’ supervised release; • Eric Concepcion, a/k/a “Wax,” 33, of Newark, sentenced to 18 years in prison and five years’ supervised release; • Hakeem Vanderhall, a/k/a “Keem,” 34, of Newark, sentenced to 18 years in prison and five years’ supervised release; • Hanee Cureton, a/k/a “City,” 34, of Springfield, New Jersey, sentenced to 12 years in prison and five years’ supervised release; and
• James Gutierrez, a/k/a “Bad News,” 27, of Newark, sentenced to 11 years in prison and five years’ supervised release.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, and special agents of the U.S. Attorney’s Office with the investigation leading to today’s sentencing. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sherriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto, Chief of the Organized Crime and Gangs Unit within the Criminal Division in Newark, and Assistant U.S. Attorney Richard J. Ramsay of the Appeals Division in Newark.

This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.

Defense counsel: John McMahon Esq., West Orange, New Jersey

NEWARK, N.J. – A Louisiana man was arraigned today on charges that he illegally accessed a healthcare company’s online portal and downloaded more than 60,000 laboratory reports belonging to more than 30,000 patients, U.S. Attorney Craig Carpenito announced.

David Manno, 34, of Marrero, Louisiana, appeared before U.S. District Judge Katharine S. Hayden in Newark federal court and pleaded not guilty. He was indicted by a federal grand jury on Nov. 19, 2019, on one count of wire fraud.

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

The victim was a publicly traded healthcare company with its headquarters in New Jersey. The company offered a web-based portal through which patients could access their medical and health information, schedule laboratory testing, track their healthcare provider information, maintain medical records, and pay for services. Patients were able to log in to the portal by using a unique username and password. In November 2016, Manno accessed the portal and sent requests that caused the portal to send him lab reports belonging to other patients. Manno sent more than 150,000 modified requests, causing the portal to send him more than 60,000 laboratory reports for more than 30,000 patients.

The wire fraud count with which Manno is charged carries a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense.

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

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

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

Defense counsel: David Courcelle Esq., Metairie, Louisiana

NEWARK, N.J. – The Department of Justice today announced that it has awarded more than $376 million in grant funding to enhance state, local and tribal law enforcement operations and reinforce public safety efforts in jurisdictions across the United States, including $4,561,569 to support public safety activities in the District of New Jersey. The awards were made by the Department’s Office of Justice Programs.

“These awards provide substantial resources to support important public safety initiatives sponsored by our state and local law enforcement partners,” U.S. Attorney Craig Carpenito, District of New Jersey, said. “This kind of support from the Department of Justice encourages greater cooperation among federal, state and local law enforcement, as we work together to protect the people of New Jersey.”

The awards announced today support an array of crime-fighting initiatives, including the quarter-billion dollar Edward Byrne Justice Assistance Grants Program, which funds public safety efforts in 929 state, local and tribal jurisdictions. Funding also supports sex offender registration and notification, law enforcement-based victim services, the testing of sexual assault kits, and programs designed to address youth with sexual behavioral problems. Other awards will focus on wrongful convictions, intellectual property enforcement, innovative prosecution strategies and the safety and effectiveness of corrections systems.

“Crime and violence hold families, friends and neighborhoods hostage, and they rip communities apart,” OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan said. “These programs help restore the health and safety of crime-ravaged communities by supporting prevention activities, aiding in the apprehension and prosecution of perpetrators, facilitating appropriate sentencing and adjudication, and providing communities and their residents the means for recovery and healing.”

The following awards were made to organizations in the District of New Jersey:

Edward Byrne Justice Assistance Grant Program – Local Awards

•           Union County, $167,387

•           City of Passaic, $180,339

•           Asbury Park, $51,346

•           Mercer County, $131,756

•           Newark Police Department, $434,882

•           City of Camden, $208,291

•           Vineland, $82,671

•           Lakewood, $15,572

•           Atlantic City, $68,318

•           Perth Amboy, $86,689

 

Edward Byrne Justice Assistance Grant Program – State Award

 

•           New Jersey Division of Law & Public Safety, $3,817,827

 

BJA Intellectual Property Enforcement Program: Protecting Public Health, Safety, and the Economy from Counterfeit Goods and Product Piracy

 

•           Essex County Prosecutor’s Office, $350,345

 

BJA Implementing the Prison Rape Elimination Act Standards, Protecting Inmates, and Safeguarding Communities Program

 

•           New Jersey Dept. of Corrections, $246,146

 

Information about the programs and awards announced today is available here. For more information about OJP awards, visit the OJP Awards Data webpage.

 

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

CAMDEN, N.J. – A Camden County, New Jersey, man previously convicted of multiple felony offenses, including robbery, burglary, and aggravated assault, was indicted today for unlawful possession of a handgun and possessing fake law enforcement officer credentials, U.S. Attorney Craig Carpenito announced.

Warren E. Shelton, 53, of Chesilhurst, New Jersey, is charged with one count of unlawful possession of imitation badges, identification cards, and other insignia prescribed for use by officers of a department or agency of the United States, and one count of possession of a firearm by a convicted felon. He will be arraigned at a later date.

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

Law enforcement authorities learned Shelton had designed and acquired counterfeit Department of Homeland Security, Federal Protective Service (FPS), credentials and business identification cards, falsely representing that he was employed as a special agent with FPS.

During a court-authorized search of Shelton’s home in May 2018, investigators located and seized counterfeit FPS credentials, business identification cards, and a badge falsely representing that Shelton was employed as a special agent and authorized to carry a weapon and enforce federal laws. They also located a Colt .45 caliber handgun and ammunition along with two blank guns that resembled real firearms. As a previously convicted felon, Shelton is prohibited from possessing a firearm. Shelton was charged by criminal complaint on May 7, 2018 with being a felon in possession of a firearm and has been detained since.

Shelton faces a maximum potential penalty of 10 years in prison and a fine of up to $250,000 for the firearm offense. He also faces up to six months in prison and fine of up to $5,000 for possession of the counterfeit FPS credentials and badge.

U.S. Attorney Carpenito credited special agents of the Department of Homeland Security (DHS), Office of Inspector General (OIG), under the direction of Acting Special Agent in Charge Karen Jordan; special agents of the Department of Homeland Security, Federal Protective Services (FPS), under the direction of Supervisory Special Agent Anthony Fuscellaro; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; special agents of the U.S. Secret Service, Philadelphia Field Office, under the direction of Special Agent in Charge James Henry; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Charlie J. Patterson; and the Camden County Police Department, under the direction of Chief Joseph Wysocki.

The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.

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

Defense counsel: Thomas Young Esq., Camden

NEWARK, N.J. – The president of a bible college will appear in court today on charges he sexually assaulted a student on an international flight bound for Newark, U.S. Attorney Craig Carpenito announced.

Cornelius Tilton, 65, of New Orleans, Louisiana, was charged by complaint with one count of abusive sexual contact after being arrested by FBI agents on Nov. 30, 2019, when the flight, which departed from Tel Aviv, Israel, arrived at Newark Liberty International Airport. He is scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.

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

Tilton was sitting in a window seat next to the victim, a 19-year-old male student at a theological seminary who was traveling with a group of students on a religious trip to Israel. Tilton accompanied the group as an unofficial guide and gave speeches.

During the flight, Tilton allegedly placed his hand on the victim’s bare calf. Tilton continued to touch the victim’s thigh, and eventually began rubbing the victim’s genitals over the victim’s shorts. The victim did not react, or look at Tilton, out of shock and fear. Tilton took the victim’s hand and placed it on Tilton’s erect penis, on top of his clothing. The victim got up to go to the bathroom, in hopes of ending the assault. Tilton also went to the bathroom. When the victim and Tilton were back in their seats, Tilton continued to touch the bare skin of the victim’s lower back, underneath the victim’s clothing. Tilton moved his hand around to the front of the victim’s waistline, and attempted to place his hand down the victim’s pants, when the victim blocked Tilton’s hand with his elbow. The victim then got up from the seat and informed a flight attendant about the assault.

The charge of abusive sexual contact carries a maximum sentence of two years in prison or a fine of up to $250,000, or both.

U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charges.

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

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

NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 60 months in prison for distributing and possessing videos and images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Malcolm Salamanca, 29, of Ridgefield, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of distribution of child pornography and one count of possession of child pornography. Judge Salas imposed the sentence today in Newark federal court.

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

Salamanca used a peer-to-peer file-sharing program to download and share videos and images of child sexual abuse. In November 2016, undercover law enforcement agents downloaded some of those images and videos from Salamanca’s computer. After executing a search warrant at Salamanca’s home in November 2017, agents located more videos of child sexual abuse on Salamanca’s computers.

In addition to the prison term, Judge Salas sentenced Salamanca to five years of supervised release and imposed a special assessment of $10,000 under the Justice for Victims of Human Trafficking Act.

U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s sentencing. He also thanked the Bergen County Prosecutor’s Office, the Ridgefield Police Department and the U.S. Postal Inspection Service for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Melissa Wangenheim, Chief of the Opioids Unit in Newark.

Defense counsel: Paul Brickfield Esq., River Edge, New Jersey

NEWARK, N.J. – A Passaic County, New Jersey, man today admitted conspiring to distribute 400 grams or more of fentanyl, U.S. Attorney Craig Carpenito announced.

Felix Acevedo, 28, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden to one count of possession with intent to distribute 400 grams or more of fentanyl.

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

From March 2018 through March 2019, Acevedo conspired with others to distribute 400 grams or more of fentanyl. On Feb. 20, 2019, he took possession of a parcel that had been shipped to him at an address in Clifton, New Jersey. Acevedo believed the parcel contained narcotics, which he planned to deliver to a conspirator. Unbeknownst to Acevedo, law enforcement had interdicted the parcel prior to its delivery and removed the 997 grams of fentanyl contained within. 

The count to which Acevedo pleaded guilty carries a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for March 2, 2020.

U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, and the inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s guilty plea.

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

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

NEWARK, N.J. – Members of the “Famous Boyz” street gang have admitted to firearms and narcotics distribution offenses as part of a drug trafficking conspiracy, U.S. Attorney Craig Carpenito announced today.

Shaka McKinney, 25, of Newark, pleaded guilty today before U.S. District Judge Madeline Cox Arleo to an information charging him with being a felon in possession of a firearm. He faces a maximum term of imprisonment of 10 years and a maximum fine of $250,000.   

Jahid Vauters,” a/k/a “k”, a/k/a “KO,” 31, of Newark, pleaded guilty Nov. 25, 2019, before Judge Arleo to an information charging him with one count each of: conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin and 28 grams or more of cocaine base; possession with intent to distribute 28 grams or more of cocaine base; possessing two firearms and ammunition as a convicted felon; and possessing two firearms in furtherance of a drug trafficking crime. As part of his plea agreement, the parties have agreed to a sentence of 10 years in prison. 

Karen Armstrong, 29, of Newark, pleaded guilty before Judge Arleo on Nov. 7, 2019 to an information charging her with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and heroin. 

Eugene Williams, a/k/a “Popa,” a/k/a “Papa,” 53, of Newark, pleaded guilty before Judge Arleo on Nov. 7, 2019, to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base and one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. 

Saeed Dawes, a/k/a “Nasty,” 22, of Newark, pleaded guilty before Judge Arleo on Nov. 6, 2019, to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and heroin. 

In October 2018, McKinney, Vauters, Armstrong, Williams, and Dawes, and 12 other members of a violent drug trafficking conspiracy operating in Newark were charged by criminal complaint after a lengthy wiretap investigation with conspiracy to distribute crack cocaine and/or heroin. McKinney and Vauters were also charged with firearms offenses.

On Feb. 25, 2019, a grand jury returned a one-count indictment charging three of the defendants, Patricio Hernandez, Jonathan Hernandez, and Jonathan Garcia, a/k/a “Bebo,” with conspiracy to distribute and to possess with intent to distribute 280 grams or more of crack cocaine for their alleged participation in supplying the “Famous Boyz” with cocaine.

On Sept. 30, 2019, a grand jury returned a 21-count superseding indictment against the remaining defendants and Patricio Hernandez, Jonathan Hernandez, Garcia, Javon Holmes, a/k/a “J-Dot”, and John Mosley, a/k/a “Breezy,” a/k/a “Brazy.” The charges in the superseding indictment are pending against the remaining defendants. 

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

The defendants are members and associates of the Famous Boyz – a subset of the Brick City Brims set of the Bloods street gang – which dealt significant quantities of heroin and crack cocaine, in the area of South 18th Street and 15th Avenue, in Newark. The gang often referred to this area as the “8 Block,” “18th,” or simply by reference to the number “8.” 

Mosley was a primary source of narcotics for the Famous Boyz and often directed the gang’s drug operations. He and other members of the Famous Boyz shared narcotics, customers, and firearms with one another in furtherance of their narcotics trafficking activities, and they used juveniles to distribute narcotics and stash firearms. Patricio Hernandez and Jonathan Hernandez were among the main suppliers of crack cocaine to Mosley, while Vauters supplied Mosley with heroin. Heroin sold by Famous Boyz members, including Dawes, Armstrong and Williams, contained a fentanyl analogue, which is an extremely dangerous and highly addictive substance. 

Members of the Famous Boyz used social media to promote the gang’s criminal activities, including by advertising their narcotics trafficking activities and proceeds and by threatening both rival gang members and any individuals who considered cooperating with law enforcement. Those members who sold narcotics also enriched themselves by committing other crimes, including robberies.

The heroin and crack cocaine conspiracy and heroin and crack cocaine distribution counts to which Vauters pleaded guilty each carry a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. In addition, the firearm possession count to which Vauters pleaded guilty carries a statutory mandatory minimum term of five years in prison, which must run consecutive to any other punishment.

The crack cocaine conspiracy count to which Williams pleaded guilty carries a maximum penalty of life imprisonment, and a maximum fine of $10 million. The heroin conspiracy to which Williams pleaded guilty carries a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million.

The heroin and crack cocaine conspiracy counts to which Dawes and Armstrong pleaded guilty each carry a maximum penalty of 20 years in prison, and a maximum fine of $1 million. 

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark, and officers of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation.

He also thanked the special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Belleville Police Department, under the direction of Chief Mark Minichini; and the Livingston Police Department, under the direction of Chief Gary Marshuetz, for their assistance with the investigation.

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

The government is represented by Deputy Chief of the Criminal Division Mary E. Toscano and Assistant U.S. Attorney Angelica M. Sinopole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.

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

NEWARK, N.J. – A Bergen County, New Jersey, man today admitted that he used a fraudulently made United States passport to travel abroad, U.S. Attorney Craig Carpenito announced.

Jetmir Memija, a/k/a “Shefki Hoti,” 42, an Albanian national residing in Edgewater, New Jersey, pleaded guilty before U.S. District Court Judge Susan D. Wigenton to an information charging him with one count of using a fraudulently made passport.

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

On July 11, 2011, Memija, who had illegally entered the United States in 1996, applied for a United States passport. He submitted false information regarding his date of birth and Social Security number. Memija submitted the personal identifying information of a family member along with his photograph. A United States passport book was issued to Memija based on this false information, which he used to gain entry into the Republic of Albania. 

The passport fraud charge carries a maximum potential sentence of 10 years in prison. Sentencing is scheduled for March 2, 2020.

U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, Newark, with the investigation leading to today’s guilty plea. He also thanked the U.S. Citizenship and Immigration Services, Fraud Detection and National Security Directorate, Newark; and Immigration and Customs Enforcement-Enforcement and Removal Operations for their assistance.

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

TRENTON, N.J. – A Bergen County, New Jersey, man today admitted participating in conspiracies to commit health care fraud and to bribe a doctor, U.S. Attorney Craig Carpenito announced.

Eduard “Eddy” Shtindler, 36, of Paramus, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to pay illegal kickbacks to a doctor.

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

From 2012 through at least 2017, Shtindler owned and operated the now-defunct Empire Pharmacy in West New York, New Jersey. Starting in 2015, Empire began filling prescriptions for expensive specialty medication that required “prior authorization” before being approved for reimbursement payment by Medical, Medicaid, and some private insurance providers. To entice doctors to use Empire to fill such medications, Shtindler planned to have Empire receive prior authorization approval more successfully than any other pharmacies. He directed Empire employees, including two pharmacists, to repeatedly falsify prior authorization forms for medications for different conditions, including psoriasis and Hepatitis C. Shtindler was captured on recorded conversations admitting to his and Empire’s practice of falsifying prior authorization forms in order to receive approval for medication that would not have otherwise been approved.

From 2012 through early 2017, Shtindler participated in a conspiracy to pay bribes to a psychiatrist in Hudson County, New Jersey, to induce the doctor to send prescriptions to Empire. Shtindler sent Empire employees to deliver some of the bribe payments to the doctor. On occasion, Shtindler secreted cash bribes, in $100 denominations, in pill bottles that were delivered to the doctor. In exchange for these bribes, the doctor steered patients to use Empire pharmacy, even though the patients used other pharmacies closer to their homes for all of their other prescriptions. In one recorded conversation between Shtindler and a concerned former Empire employee who had delivered a bribe to the doctor on Shtindler’s behalf, Shtindler was captured stating, “You think [the doctor]’s going to go to the FBI and rat himself out?” In another conversation with the same former employee regarding the same topic of bribe payment Shtindler had the employee deliver to the doctor, Shtindler was captured saying, “First off, I didn’t make you do it. I didn’t put a gun to your head. We all made money together.” Shtindler concluded, “It is business.”

As part of his plea agreement, Shtindler agreed to loss amounts between $1.5 million and $3.5 million for each of the charged conspiracies to which he pleaded guilty.

The count of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and the count of conspiring to pay illegal kickbacks is punishable by a maximum of five years in prison. Both offenses are punishable by a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 24, 2020.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the N.J. Office of the State Comptroller, under the direction of Comptroller Philip James Degnan, with the ongoing investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Joshua L. Haber of the Health Care & Government Fraud Unit of the U.S. Attorney’s Office in Newark.

Defense counsel: Albert Y. Dayan. Esq., Queens, New York

NEWARK, N.J. – A Morris County, New Jersey, man was sentenced today to 24 months in prison for being a felon in possession of guns, possessing bombs, and precursor materials, U.S. Attorney Craig Carpenito announced.

Christopher Faschan, 31, of Landing, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of unlawful possession of destructive devices and one count of being a felon in possession of firearms and ammunition. Judge Martinotti imposed the sentence today in Newark federal court.

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

On Feb. 1, 2019, Faschan detonated the bomb in the area of Lake Lackawanna in Stanhope. On Feb. 4, 2019, law enforcement agents interviewed Faschan, who said that he had ignited the bomb. He described it as two pounds in weight and explained how he used and mixed Potassium Perchlorate, Aluminum Powder, and Tannerite to make several bombs that were in his home.

Law enforcement agents executed a court-authorized search of Faschan’s home and recovered a cache of weapons, ammunition, firearms, explosive devices and precursor materials.

In addition to the prison term, Judge Martinotti sentenced Faschan to three years of supervised release.

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; officers of the Byram Police Department, under the direction of Chief Peter J. Zabita; the Roxbury Police Department, under the direction of Chief Marc Palanchi; the Sussex County Prosecutor’s Office, under the direction of Prosecutor Francis A. Koch; officers of the Morris County Sheriff’s Office, under the direction of Sheriff James M. Gannon; and officers of the Morris County Prosecutor’s Office, under the direction of Prosecutor Frederic M. Knapp, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit.

Defense counsel: John Whipple Esq., Morristown, New Jersey

NEWARK, N.J. – An Essex County, New Jersey, man appeared in court today on charges of producing, receiving, and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Ramon Zelaya, 36, of Newark, is charged by indictment with one count of sexual exploitation of a child, one count of receiving child pornography, and one count of possessing child pornography. Zelaya was initially charged by complaint in April 2019.

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

Between Aug. 20, 2018, and Sept. 23, 2018, Zelaya used Instagram messages to entice, threaten, and coerce a minor into creating and sending him sexually explicit images and videos. Zelaya also used multiple Facebook accounts to contact the victim’s parent and to send at least nude image of the victim.

The charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years in prison, and a $250,000 fine. The charge of receipt of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, and officers of the Union City Police Department, under the direction of Chief Nichelle Luster, with the investigation leading to the charges.  

The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Cybercrime Unit in Newark.

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

NEWARK, N.J. – A property developer and manager has been arrested on charges stemming from a scheme to defraud real estate investors, U.S. Attorney Craig Carpenito announced today.

Herbert Whalen a/k/a “Bert Whalen,” 45, of Indianapolis, Indiana, was indicted by a federal grand jury on November 20, 2019, on one count of conspiracy to commit wire fraud and three counts of wire fraud. Whalen was arrested Nov. 21, 2019, and is scheduled to appear this afternoon before U.S. Magistrate Tim A. Baker in Indianapolis, Indiana. His arraignment date in Newark federal court has not yet been scheduled.

According to the indictment:

Between August 2016 and July 2018, Whalen, the owner of Oceanpointe Property Management in Indianapolis, Indiana, engaged in a scheme to obtain money from victim real estate investors by misrepresenting and concealing the poor condition of properties managed by Oceanpointe and by creating fake leases for unoccupied Oceanpointe properties. Employees from Company 1 and Oceanpointe promised investors that, after repairs and rehabilitations were completed, and tenants rented the properties, investors would receive copies of the leases and begin to receive rent payments as their return on investment. In reality, many Oceanpointe properties were not repaired and rehabilitated, and were not ready for occupancy. To conceal this fact from victim investors, Whalen and Coconspirator 1 directed Oceanpointe employees to draft fake leases, making it appear to investors that Oceanpointe properties were rented, when, in fact, the properties remained vacant. Whalen instructed Oceanpointe employees to place fake tenant names on leases to send to Oceanpointe investors.

When investors attempted to view the properties that they had purchased, Whalen directed Oceanpointe employees to cover the windows to make the properties appear to investors as if work was being completed, when, in fact, it was not. Oceanpointe employees did this to conceal the poor condition of the properties and the fact that the properties remained vacant. Whalen, Coconspirator 1, and others commingled tenant rent payments and selected which investors would be paid from the pool of funds in order to silence investors who voiced concerns and evade detection of the fraud. In order to prevent investors from leaving Oceanpointe and exposing the fraudulent conduct, Whalen directed an Oceanpointe employee to create a false identity and falsely claim, on an online real estate message forum, that the Oceanpointe employee was an investor with Oceanpointe and Company 1, and that Oceanpointe had addressed all of the concerns regarding the investment property. These misrepresentations and others led to millions of dollars in losses to investors, which Whalen used to, among other things, fund his and Coconspirator 1’s lifestyle.

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

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

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

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

A doctor who practiced in New Jersey and Pennsylvania pleaded guilty today for his participation in a scheme to receive over $140,000 in bribes and kickbacks from a pharmaceutical company in exchange for prescribing large volumes of a powerful fentanyl narcotic.

Assistant Attorney Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Field Office, Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Office of Investigations – New York Region, Special Agent in Charge Susan A. Gibson of the Drug Enforcement Administration’s (DEA) New Jersey Division, Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service – Office of Inspector General (USPS-OIG) and Special Agent in Charge Michael C. Mikulka of the U.S. Department of Labor Office of Inspector General New York Region made the announcement.

Kenneth Sun, M.D., 58, of Easton, Pennsylvania, pleaded guilty to one count of conspiracy to defraud the United States and to pay and receive health care kickbacks before U.S. District Judge Anne E. Thompson of the District of New Jersey.  Sentencing has been scheduled for Feb. 26, 2020, before Judge Thompson. 

As part of his guilty plea, Sun admitted that from 2012 to 2016, he conspired with others to solicit and receive more than $140,000 in bribes and kickbacks from Insys Therapeutics, a pharmaceutical company based in Arizona in exchange for prescribing more than 28 million micrograms of Subsys, a powerful opioid narcotic designed to rapidly enter a patient’s bloodstream upon being sprayed under the tongue.  Subsys contains fentanyl, a synthetic opioid pain reliever which is approximately 50 to 100 times more potent than morphine.  The U.S. Food and Drug Administration approved Subsys solely for the “management of breakthrough pain in cancer patients who are already receiving and who are tolerant to around the clock therapy for their underlying persistent cancer pain.”  Sun admitted that he prescribed Subsys to patients for whom Subsys was medically unnecessary, not eligible for insurance reimbursement and unsafe.

Sun also admitted that the bribes and kickbacks he received from Insys Therapeutics in exchange for prescribing Subsys were disguised as “honoraria” for educational presentations regarding Subsys that Sun purportedly provided to licensed practitioners.  In reality, Sun admitted, these presentations were a sham: they lacked the appropriate audience of licensed practitioners seeking educational information regarding Subsys; there was no presentation about Subsys whatsoever; the same individuals attended over and over again; and Sun did not attend some of the presentations at all.  Sun caused Medicare to pay more than $847,000 for Subsys prescriptions that were medically unnecessary, procured through the payment of kickbacks and bribes and not eligible for Medicare reimbursement, he admitted. 

The FBI, HHS-OIG, the DEA, USPS-OIG and DOL-OIG investigated the case.  Trial Attorney Rebecca Yuan of the Criminal Division’s Fraud Section is prosecuting the case.

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

TRENTON, N.J. – A former member of Paraguay’s Congress, her husband and another senior member of a Paraguayan money exchange business are charged by complaint for their participation in an international money laundering conspiracy, U.S. Attorney Craig Carpenito announced today.

Cynthia Elizabeth Tarrago Diaz, 40; Raimundo Va, 44; and Rodrigo Alvarenga Paredes, 33, are charged in a criminal complaint with conspiracy to commit money laundering. Tarrago and Va were arrested by the FBI on Thursday after they arrived in Newark as part of their unlawful money laundering activities. They appeared today before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court and were detained. Alvarenga remains at large in Paraguay.

“As alleged in the complaint, Tarrago, while a former member of Paraguay’s legislature, brazenly offered to launder the proceeds of international drug trafficking, and even went so far as to offer to traffic in cocaine herself,” U.S. Attorney Carpenito said. “When we stop this kind of money laundering activity, we help to stop the underlying drug trafficking activity that motivates and depends upon it. By eliminating the means by which international drug trafficking organizations launder their ill-gotten gains, we help to keep New Jersey safer by limiting the flow of drugs into our communities from outside the United States.”

“Money laundering is illegal no matter your position in society,” said Special Agent in Charge Gregory W. Ehrie. “The FBI follows the evidence and makes arrests based on the actions of those individuals. We will find and bring to justice anyone who uses unlawful means to enrich themselves with no regard for the law.”

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

Tarrago is a former member of Paraguay’s Congress, and recently announced her intention to run for mayor of the capital district of Asunción. Tarrago and Va, her husband, agreed to accept at least $2 million in United States currency from two individuals who represented themselves to be narcotics traffickers. Believing the money to be proceeds of unlawful narcotics trafficking, they laundered the funds through an international network of accounts to disguise the unlawful source of the proceeds.

Tarrago and Va traveled to New Jersey and Florida on multiple occasions and accepted approximately $800,000 in United States currency from the purported drug traffickers, caused those funds to be laundered through the conspiracy’s network of accounts, and ultimately transferred the money back to an account maintained by the purported drug traffickers. Members of the conspiracy generated fraudulent invoices that stated legitimate business reasons for the transfers of laundered funds to the purported drug traffickers’ account. On multiple occasions during the purported drug dealers’ meetings with Tarrago and Va, Tarrago offered to assist them with procuring large quantities of cocaine from Paraguay at an inexpensive price.

Unbeknownst to Tarrago and Va, the currency they accepted from the purported drug traffickers and caused to be laundered was not actually illicit drug proceeds. The funds were provided by two undercover FBI agents as part of an extensive undercover investigation of the money laundering network. During the investigation, the undercover agents met with Tarrago and Va in the United States on numerous occasions, and obtained video and audio recordings of their interactions with Tarrago and Va, which include details of the money laundering network. The evidence uncovered during the investigation revealed that Alvarenga, a high-ranking member of a large money-exchange company in Paraguay, coordinated the laundering of the funds that the undercover agents provided to Tarrago and Va.

The money laundering conspiracy count carries a statutory maximum potential penalty of 20 years in prison and a maximum fine of the greater of $500,000 or twice the value of the funds involved in the conspiracy.

U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s charges. He also thanked the Department of Justice’s Office of International Affairs for their assistance in the case.

The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

TRENTON, N.J. – Twenty defendants have been indicted on charges relating to the distribution of cocaine and crack cocaine in the Burlington County, New Jersey, area, U.S. Attorney Craig Carpenito announced today.

The defendants indicted today are among 31 people charged by complaint on Sept. 26, 2019. Charges remain pending against the other 11 defendants.

Herbert Mays, Andre Morton, Ronnie Dawson, Teron Huggins, Rufus Williams, Gurnsey Flagg, Roniffe Gaines, John Petrovich, Linford Johnson, Nathaniel McCoy, Anthony Pruitt, Shameke Fowler, Julius Thigpen, III, Andrew Perkins, and Brandon Watts were charged in a superseding indictment with conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine.

Additionally, Mays, Morton, Dawson, Flagg, Gaines, Petrovich, Johnson, Fowler, Perkins, Craig Moore, Tracy Williams, Samantha Bohlert, Mecca Grant, and April Branson were charged with conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine. Rufus Williams also was charged with possession with the intent to distribute crack cocaine, possession of a firearm in furtherance of a drug-trafficking crime, and being a felon in possession of a firearm.

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

Between July 2019 and September 2019, the defendants and others engaged in large-scale narcotics conspiracies that operated primarily throughout Burlington County – including Willingboro, Burlington City, Burlington Township, Bordentown Township, Edgewater Park, Mount Laurel, and Westampton – and which sought to profit from the distribution of cocaine and crack cocaine. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, and other investigative techniques, law enforcement learned that defendants obtained regular supplies of cocaine and then redistributed that cocaine, portions of which defendants converted into crack cocaine, to distributors, sub-dealers, and end-users throughout Burlington County and elsewhere.

The counts of conspiracy to distribute at least five kilograms of cocaine and 280 grams or more of crack cocaine, each carry a maximum penalty of life in prison and a fine of $10 million. The count charging Rufus Williams with possession with intent to distribute crack cocaine carries a maximum sentence of 20 years in prison and $1 million fine. The count charging Rufus Williams with possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum term of five years in prison and a maximum potential penalty of life in prison, which must be served consecutive to the sentence imposed on the drug trafficking crime. The count charging Rufus Williams with being a felon in possession of a firearm carries a maximum sentence of 10 years in prison. Both firearms counts also carry a maximum fine equal to the greatest of $250,000, twice the gross amount of any pecuniary gain that any persons derived from the offense, or twice the gross amount of any pecuniary loss sustained by any victim of the offense.

U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of ATF, under the direction of Special Agent in Charge Charlie J. Patterson; detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; officers of the Burlington Township Police Department, under the direction of Director of Public Safety Bruce Painter; officers of the Willingboro Police Department, under the direction of Director of Public Safety Kinamo Lomon; officers of the Burlington City Police Department, under the direction of Chief of Police John Fine; officers of the Florence Police Department, under the direction of Chief of Police Brian Boldizar; officers of the Bordentown Township Police Department, under the direction of Chief of Police Brian Pesche; officers of the Edgewater Park Police Department, under the direction of Chief of Police Robert Hess; officers of the Mount Laurel Police Department, under the direction of Chief of Police Stephen Reidener; officers of the Ewing Police Department, under the direction of Chief of Police John Stemler; officers of the Westampton Police Department, under the direction of Chief of Police Stephen Ent; and officers of the Trenton Police Department, under the direction of Director Sheilah Coley, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Martha K. Nye and Ray Mateo of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

NEWARK, N.J. – An Essex County, New Jersey, man was charged today for his role in a multi-million dollar money laundering conspiracy and for using a stolen identity in furtherance of the scheme, U.S. Attorney Craig Carpenito announced.

Edwin Deleon-Batista, 36, of Newark, is charged by complaint with one count of conspiracy to launder drug proceeds and one count of identity fraud. Deleon-Batista is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.

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

Over an extended period, Deleon-Batista conspired with other individuals with close ties to drug trafficking organizations to pick up millions of dollars in cash drug proceeds in New Jersey and New York and launder the money by using it to purchase cashier’s checks at local bank branches. The checks were made payable to individuals and companies specified by conspirators with close ties to the drug trafficking organizations. Converting the drug proceeds to cashier’s checks was Deleon-Batista’s way to hide the nature and source of the illegal funds and avoid scrutiny by law enforcement and banks. Between March 2018 and March 2019, Deleon-Batista converted over $13 million in United States currency into cashier’s checks at banks in New Jersey, New York, and elsewhere. Deleon-Batista received a fee of approximately 1 percent of the amount he laundered.  

Deleon-Batista was previously arrested on federal money laundering charges in New York in April 2019. Soon after his arrest, Deleon-Batista began using a stolen identity in order to continue his money laundering activities. Specifically, Deleon-Batista illegally acquired a Florida driver’s license with his own photograph but with someone else’s name and address. He then used this fraudulent license to open several bank accounts, which he then used as a means to convert over $10 million in additional cash drug proceeds into cashier’s checks at bank branches in New Jersey, New York, and Florida over a five-month period. 

The charge of money laundering carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater. The charge of identity fraud carries a maximum prison sentence of 15 years and a $250,000 fine.

U.S. Attorney Carpenito credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson and the New York Division, under the direction of Special Agent in Charge Ray Donovan; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; and the Morristown, New Jersey, police department, under the direction of Acting Police Chief Darnell Richardson with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Criminal Division in Newark.

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

NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted engaging in a fraudulent scheme through which over $300,000 in purchases were charged or attempted to be charged to victims’ financial accounts without authorization, U.S. Attorney Craig Carpenito announced.

Briana Burford, 25, of Fort Lee, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging her with wire fraud.

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

From October 2018 through December 2018, Burford made four Bitcoin transactions. The Bitcoin were sent to accounts associated with carding websites, which are websites that engage in the trafficking of stolen or otherwise illegally obtained credit card, bank account and other personal identification information, as well as services and tools that one can use to engage in fraudulent activity.

The two telephone numbers used to make the four Bitcoin transactions, along with other telephone numbers, were used to inquire about bank accounts that were later compromised and subject to fraud. On Aug. 31, 2018, one of the telephone numbers was used to contact a bank and inquire about a specific bank account. Later that day, Burford, without authorization, charged a purchase of approximately $9,000 to that bank account.

The wire fraud count carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 4, 2020.

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

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

Defense counsel: Albert Y. Dayan Esq., Kew Gardens, New York

CAMDEN, N.J. – A Camden County, New Jersey, man and a Philadelphia man were each sentenced today to 30 months in prison for their respective roles in conspiring to distribute oxycodone, U.S. Attorney Craig Carpenito announced.

Prussia Hing, 36, of Philadelphia, and Anthony Pepe, 42, of Cherry Hill, New Jersey, previously pleaded guilty before U.S. District Court Judge Jerome B. Simandle to conspiracy to distribute and possess with intent to distribute oxycodone. U.S. District Judge Robert B. Kugler, who was assigned the case following the subsequent passing of Judge Simandle, imposed the sentence today in Camden federal court.

The defendants were charged in connection with one of the largest national healthcare fraud and opioid enforcement actions ever taken by the U.S. Department of Justice.

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

From December 2017 through June 26, 2018, the defendants 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. Hing was a source of the supply. As part of the investigation, law enforcement observed eight controlled purchases, three of which were carried out by the defendants, including Pepe, dressed in his hospital scrubs in front of the major Philadelphia hospital where he was employed as the chief surgical technologist.

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

U.S. Attorney Carpenito credited special agents of the FBI’s Philadelphia Field Office, South Jersey Resident Agency, both under the direction of Special Agent in Charge Michael Harpster in Philadelphia; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and the Camden County Police Department, under the direction of Chief Joseph D. Wysocki, with the investigation leading to today’s sentencings.

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

Defense counsel: Pepe: Rocco Cipparone Esq., Haddon Heights, New Jersey
Hing: Gregory Pagano Esq., Philadelphia

TRENTON, N.J. – An Ocean County, New Jersey, man was arrested this morning on charges that he induced a minor to send him sexually explicit pictures and to engage in sexually explicit conduct over an online messaging service, U.S. Attorney Craig Carpenito announced.

David Frew, 41, of Little Egg Harbor, New Jersey, is charged by complaint with one count of sexual exploitation of a child, one count of online enticement of a minor to engage in criminal sexual conduct, and one count of receipt of child pornography. Frew appeared this afternoon before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.

According to documents filed in this case and prior state court records:

In June 2017 Frew used an online messaging service to communicate with a minor victim. At Frew’s request, the minor victim sent Frew sexually explicit images, including images of the victim’s genitalia.

In 2008, Frew was convicted of three counts of unlawful contact with a minor and one count of criminal use of a computer in Pennsylvania after sending sexually explicit photos or videos to investigators in the Pennsylvania Attorney General’s Child Predator Unit, who were posing online as underage girls. Also in 2008, Frew was convicted in New Jersey of endangering the welfare of children. As a result of his prior convictions in Pennsylvania and New Jersey, Frew was a registered sex offender at the time of his conduct charged in the complaint.

Because Frew is a previously convicted sex offender, the sexual exploitation charge is punishable by a mandatory minimum penalty of 25 years in prison and a statutory maximum potential penalty of 50 years in prison, along with a $250,000 fine, counting one of Frew’s prior convictions; or a mandatory minimum penalty of 35 years in prison and a statutory maximum potential penalty of life in prison, along with a $250,000 fine, counting two or more of Frew’s prior convictions. The charge of online enticement carries a maximum statutory penalty of life in prison and a maximum fine of $250,000. Because Frew is a previously convicted sex offender, the charge of receipt of child pornography carries a mandatory minimum sentence of 15 years in prison, a statutory maximum potential penalty of 40 years in prison, and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), Atlantic City, under the direction of Special Agent in Charge Brian Michael; the Royal Canadian Mounted Police (RCMP) Technical Crime Unit; the RCMP National Child Exploitation Coordination Centre; the Ocean County Prosecutors Office, under the direction of Prosecutor Bradley D. Billhimer, and the Little Egg Harbor Police Department, under the direction of Chief Richard Buzby Jr., with the investigation leading to today’s arrest.

The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office Criminal Division in Trenton.

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

Defense counsel: Benjamin West Esq., Trenton, New Jersey

NEWARK, N.J. - A Newark Parking Authority employee was charged today with selling heroin and crack cocaine and with possessing a weapon as a convicted felon, U.S. Attorney Craig Carpenito announced.

Aughkay L. Green, a/k/a “K-Boogie,” 48, of Newark, was charged by indictment with one count each of possession with intent to distribute heroin, possession with intent to distribute cocaine base, and being a felon in possession of a firearm.

According to the indictment:

On Jan. 12, 2017, Green sold 25 bricks of heroin, with a net weight of 38 grams, to Individual 1 for $1,200. On March 22, 2017, he sold the same person 48.9 grams of crack cocaine for $2,250. Green was under law enforcement surveillance and observed to be dressed in his Newark Parking Authority uniform at the time of that sale.

On April 1, 2017, Green, accompanied by an unidentified male, met Individual 1 in Irvington, New Jersey, where Green’s associate provided Individual 1 with: a Smith and Wesson Model 21 .44 caliber handgun; a Smith and Wesson Model 15 .38 handgun, and 50 rounds of hollow-point .44 caliber ammunition marked “44 REM MAG FC.” Green’s associate received $1,360 from Individual 1, and subsequently provided Green with proceeds from the sale and discussed using these proceeds for the purchase of narcotics. 

The count of possession of cocaine base with intent to distribute is punishable by a statutory minimum penalty of five years in prison and a maximum of 40 years in prison. The count of heroin with intent to distribute count carries a maximum penalty of 20 years in prison. The count of possession of firearms by a previously convicted felon count carries a maximum penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s indictment. He also thanked the New Jersey State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Department of Homeland Security and the New Jersey Office of Homeland Security and Preparedness for their work on the investigation.

The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit.

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

NEWARK, N.J. – An Essex County, New Jersey, man was indicted today on a charge of distributing and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Keith Voolgaris, 62, of Newark, is charged by indictment with one count of distributing child pornography and one count of possessing child pornography. Voolgaris was initially charged by complaint in September 2019.

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

Between July 21, 2017, and Sept. 8, 2017, Voolgaris distributed and possessed at least 50 videos depicting the sexual abuse of minors, including prepubescent children. He used a “chat” website to send numerous messages to another child pornography distributor in Minnesota. Many of those messages contained links to Dropbox files that were found to contain images of child sexual abuse. A subsequent search of Voolgaris’ email accounts revealed numerous additional videos and images of child sexual abuse.

Voolgaris has prior convictions for receiving or distributing child pornography and for possession of child pornography. Accordingly, the charge of distribution of child pornography by a repeat offender carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 40 years in prison and a $250,000 fine. The charge of possession of child pornography depicting prepubescent children by a repeat offender carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison and a $250,000 fine.

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

The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Cybercrime Unit in Newark.

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

Defense counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – The U.S. Attorney’s Office has reached an Americans with Disabilities Act (ADA) settlement with Madison Asbury Convention Hall LLC, the owner of the historic Paramount Theater in Asbury Park, New Jersey, to ensure physical accessibility for people with disabilities, U.S. Attorney Craig Carpenito announced.

“This agreement begins a new era for the historic Paramount Theater, which will enable all audiences, with or without disabilities, to enjoy the venue and its performances,” U.S. Attorney Carpenito said. “We commend the Paramount Theater for making the changes necessary to come into compliance with the ADA.”

The agreement requires, among other things, the installation of wheelchair spaces and companion seats, tactile signs with raised characters and Braille identifying all exits and restrooms, accessible ticket and concession stands, and at least 47 assistive listening receivers.

This agreement was reached under Title III of the ADA, which prohibits places of public accommodation from discriminating against individuals with disabilities. The U.S. Attorney’s Office will actively monitor compliance with the agreement, which will remain in effect for three years.

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 information line at (800) 514-0301 and (800) 514-0383 (TDD).

The government is represented by Assistant U.S. Michael Campion, Chief of the of the U.S. Attorney’s Office’s Civil Rights Unit, and Assistant U.S. Attorney Elizabeth Pascal, Deputy Chief, Civil Division.

TRENTON, N.J. –Two New Jersey men today admitted their roles in a drug trafficking conspiracy that distributed significant quantities of heroin and cocaine in the Bayshore area of Monmouth and Middlesex counties, U.S. Attorney Craig Carpenito announced.

Gregory Gillens, 47, of Hillside, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin.  Gillens also admitted to conspiring to distribute and possess with intent to distribute a quantity of cocaine.

Tyler Scarangello, 34, of Hazlet, New Jersey, pleaded guilty before Judge Martinotti to an information charging him with one count of conspiracy to distribute and possess with intent to distribute a quantity of cocaine.

In November 2018, Gillens, Scarangello, and 13 others were charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine. Gillens and Scarangello are the sixth and seventh defendants to plead guilty.

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

From May 2017 to November 2018, the defendants and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region of Middlesex and northern Monmouth counties.

Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Gillens regularly supplied large quantities of heroin and cocaine for further distribution to codefendants Guy Jackson, Richard Gethers, and Deberal Rogers. Law enforcement also learned that Jackson distributed the narcotics to others, including Scarangello.

Members of the conspiracy sold the narcotics to other conspirators, distributors, sub-dealers, and end-users in the Bayshore area. Some of the heroin distributed by the conspiracy contained fentanyl, a dangerous synthetic opioid.

The heroin conspiracy count to which Gillens pleaded guilty carries a statutory mandatory minimum term of imprisonment of 10 years, a maximum potential penalty of life in prison, and a maximum fine of $10 million. The cocaine conspiracy to which Scarangello pleaded guilty carries a maximum potential penalty of 20 years in prison, and a maximum fine of $1 million. Sentencing is scheduled for Feb. 19, 2020.

U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff's Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge Gregory W. Ehrie; Special Agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the New Jersey State Police, under the direction of Col. Patrick J. Callahan, Superintendent; the Matawan Police Department, under the direction of Chief Thomas J. Falco, Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief James K. Pigott; the Hazlet Police Department, under the direction of Chief Philip Meehan; and the Aberdeen Police Department, under the direction of Chief John T. Powers, with the investigation leading to today’s pleas. 

The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

NEWARK, N.J. – Three men have been charged with conspiring to distribute 30 kilograms of cocaine in Newark, U.S. Attorney Craig Carpenito announced today.

Yohan E. De Jesus Osornio, 29, of Los Angeles, California; Raul A. Figueroa Santana, 47, of the Bronx, New York, and Ronal Luiyi Hernandez Sepulveda, 29, of the Bronx, New York, are charged by complaint with one count of conspiracy to possess with intent to distribute more than five kilograms of cocaine. They appeared Nov. 18, 2019, before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.

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

De Jesus Osornio, Figueroa Santana, and Hernandez Sepulveda were arrested on Nov. 15, 2019, in Newark after conducting a transaction involving 10 kilograms of cocaine. Law enforcement officers observed De Jesus Osornio, who had parked his tractor trailer on Passaic Street in Newark, enter a white Mazda before returning to the tractor trailer with a weighted-down bag. Around the same time, law enforcement officers observed Hernandez Sepulveda and Figueroa Santana arrive in a black Mitsubishi. Law enforcement officers observed Hernandez Sepulveda approach the tractor trailer and walk back to the Mitsubishi with a bag, which Hernandez Sepulveda placed in the back of the Mitsubishi. After approaching and apprehending the defendants, law enforcement officers searched the bag and found 10 kilograms of cocaine, and found an additional 20 kilograms of cocaine and a large sum of cash in the tractor trailer.

The count of conspiracy to distribute and possess with intent to distribute over five kilograms of cocaine carries a maximum penalty of life imprisonment and a $10 million fine.

U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Susan A. Gibson, with investigation leading to the arrests.

The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office Criminal Division in Newark.

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

NEWARK, N.J. – A former Warren County, New Jersey, man was sentenced today to 168 months of prison for receiving and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Derrick Baer, 36, formerly of Pohatcong, New Jersey, was convicted April 9, 2019, of one count of receiving child pornography and one count of possessing child pornography following a six-day trial before U.S. District Judge Claire C. Cecchi, who imposed the sentence today in Newark federal court.

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

In May 2010, in connection with an investigation into a suspicious death at Baer’s residence, law enforcement obtained Baer’s consent to seize computer equipment from the residence. That equipment contained at least 348 images and 33 video files of child sexual abuse.

In addition to the prison term, Judge Cecchi sentenced Baer to lifetime supervised release.

U.S. Attorney Carpenito credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Pohatcong Township Police Department, under the direction of Chief Scott Robb; the N.J. Regional Computer Forensics Lab; and the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney David W. Feder, Chief of the U.S. Attorney’s Office Cyber Crimes Unit in Newark.

CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted to receiving and possessing videos and images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Jack Underwood, 31, of Egg Harbor City, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of possession of child pornography.

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

Underwood used a social networking site that allows users to interact and engage in both conversations and the exchanging of images and videos. From September 2017 through March 2018, the site reported several caches of child pornography found within accounts linked to Underwood. After executing a search warrant at Underwood’s home in December 2018, agents located more images of child sexual abuse on Underwood’s mobile telephone. Underwood has a previous conviction for the same charge, where he served 54 months of incarceration and was placed on a lifetime of supervised release. This new conviction constitutes a violation of his supervised release.

The possession of child pornography charge to which Underwood pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. He also faces an additional mandatory minimum of five years in prison for violating his supervised release by committing another child pornography offense. Underwood will be required to continue registering as a sex offender. Sentencing is scheduled for Feb. 21, 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 Alisa Shver of the Camden office.

TRENTON, N.J. – Two Trenton men have been sentenced to prison for their roles in a violent drug trafficking conspiracy that allegedly distributed more than one kilogram of heroin in Trenton and the surrounding area, U.S. Attorney Craig Carpenito announced today.

Kahlil Hampton, a/k/a “Ruger,” 29, was sentenced today to 176 months in prison and five years of supervised release after previously pleading guilty before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Judge Wolfson imposed the sentence today in Trenton federal court.

Donte Ellis, a/k/a “Shalant,” 42, was sentenced Nov. 15, 2019, to 181 months in prison and five years of supervised release after previously pleading guilty before Judge Wolfson to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Ellis also admitted to possessing a firearm during the offense.

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

In October 2018, Ellis, Hampton, and 24 other members of a drug trafficking conspiracy operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. On Aug. 8, 2019, a grand jury returned a 15-count second superseding indictment charging nine of those defendants – Omar Council, a/k/a “Stacks,” a/k/a “O,” a/k/a “Y-O,” a/k/a “Snow,” Jerome Roberts, a/k/a “Righteous,” a/k/a “Lee;” David Antonio, a/k/a “Papi,” a/k/a “Pop,” a/k/a “Victor Arias,” a/k/a “Santiago Ramirez;” Brian Phelps, a/k/a “B-Money,” a/k/a “B;” Timothy Wimbush, a/k/a “Young Money;” Taquan Williams, a/k/a “Trip;” Jubri West; Dennis Cheston Jr., a/k/a “Beans;” and Wayne K. Bush – with various crimes relating to the drug-trafficking conspiracy, including firearms charges against Phelps, Wimbush, Williams, West, and Cheston. To date, 20 defendants have pleaded guilty in connection with their participation in the conspiracy.

From as early as October 2017 to October 2018, the defendants and others engaged in a narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. 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 in September and October 2018, Ellis—who had been released from state prison in August 2018 for two prior convictions for conspiracy to commit first-degree murder—obtained large quantities of heroin on multiple occasions from codefendant Jakir Taylor, which he redistributed to others in and around Trenton. The investigation also revealed that, on several occasions when Ellis obtained supplies of heroin from Taylor, he also obtained a firearm from Taylor for protection in redistributing the narcotics. Hampton was a close associate of Taylor, and he regularly obtained and redistributed large quantities of heroin in furtherance of the conspiracy. The investigation also revealed that Hampton had access to one or more firearms.

U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson, ATF Trenton Field Office; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s charges. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the case.

The government is represented by Assistant U.S. Attorneys J. Brendan Day and Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.

This case was conducted by the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. 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 charges and allegations against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.

Defense counsel: Hampton: Stanley O. King Esq., Woodbury, New Jersey
Ellis: Jose Luis Ongay Esq., Camden, New Jersey

NEWARK, N.J. – A Hudson County, New Jersey, couple have admitted to operating a Ponzi scheme in which they defrauded approximately two dozen investors by making extraordinary guarantees about investment returns and then used the money for extravagant purchases and to pay off other victims, U.S. Attorney Craig Carpenito announced.

Alcibiades Cifuentes, 36, and his wife, Jennifer Wee Cifuentes, 38, formerly of West New York, New Jersey, each pleaded guilty to all six counts with which they were charged by indictment in May 2017: four counts of wire fraud, one count of conspiring to commit wire fraud, and one count of theft by a commodity pool operator. Jennifer Wee Cifuentes pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court. Alcibiades Cifuentes pleaded guilty on Nov. 8, 2019.

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

Alcibiades and Jennifer Wee Cifuentes engaged in an investment fraud scheme from 2012 through March 2015. They fraudulently induced victims to invest in the foreign currency and commodity markets through Cifuentes Fund Management (CFM), their hedge fund that purportedly invested in foreign currencies. Instead, they almost immediately spent those investment funds on personal items, such as an Audi R8 and jewelry. The couple would then pay back a portion of the victims’ money with money received from newly duped victims. The couple defrauded approximately 25 victims of more than $500,000.

Each count of wire fraud and wire fraud conspiracy to which the defendants pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss caused by the scheme. The count of commodities theft to which the defendants pleaded guilty carries a maximum potential penalty of 10 years in prison and a fine of $1 million, or twice the gross gain or loss. Sentencing for Alcibiades Cifuentes is scheduled for Feb. 27, 2020, and for Jennifer Wee Cifuentes, Feb. 28, 2020.

U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn in Newark, and Special Agents with the U.S. Attorney’s Office for the investigation leading to the guilty pleas. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Division of Consumer Affairs, under the direction of Attorney General Gurbir S. Grewal and Bureau Chief Christopher Gerold, as well as the U.S. Commodity Futures Trading Commission’s Division of Enforcement, under the direction of Director James M. McDonald, for their respective roles in the investigation.

The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Courtney A. Howard.

Defense counsel: Alcibiades Cifuentes: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Jennifer Wee Cifuentes: Aidan P. O’Connor Esq., Hackensack, New Jersey

NEWARK, N.J. – A Union County, New Jersey, man today admitted distributing multiple images and videos depicting child sexual abuse, as well as soliciting two children to engage in sexually explicit conduct online, U.S. Attorney Craig Carpenito announced.

Christopher Gardiner, 36, of Cranford, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an indictment charging him with one count of distributing child pornography and two counts of online enticement of a minor to engage in criminal sexual conduct.

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

Between March 2018 and June 2018, Gardiner engaged an undercover agent in an ongoing sexually graphic conversation on a web-based social media application. During the course of the conversation, Gardiner publicly posted in a chatroom multiple videos depicting the sexual abuse of children and sent similar videos to the undercover agent directly. Law enforcement subsequently discovered numerous images and videos of child pornography on Gardiner’s electronic devices when he was arrested at his home in August 2018.

During a forensic examination of Gardiner’s electronic devices, law enforcement discovered multiple conversations in which Gardiner engaged children in sexually explicit conversations and encouraged them to record themselves engaging in criminal sexual conduct. Law enforcement subsequently identified the children and confirmed that they were under the age of 18 at the time of their conversations with Gardiner.

Gardiner was previously convicted of endangering the welfare of a child and distribution of child pornography in Union County in 2007. For a repeat offender, the charge of distribution of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 40 years in prison, and a $250,000 fine. The charges of online enticement carry a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life imprisonment, and a $250,000 fine. Sentencing is scheduled for March 4, 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 Special Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Criminal Division in Newark.

Defense counsel: Michael B. Campagna Esq., Elizabeth, New Jersey

NEWARK, N.J. – A Georgia woman today admitted using a National Basketball Association (NBA) player’s stolen identity to attempt to obtain a $2.5 million loan, U.S. Attorney Craig Carpenito announced.

Annie M. Ford, 51, of Atlanta, Georgia, pleaded guilty before U.S. District Judge Kevin McNulty to an indictment charging her with one count of wire fraud and one count of aggravated identity theft.

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

From October 2013 through November 2013, Ford tried to fraudulently obtain a $2.5 million loan from a New York-based lending company using the stolen identity of another individual, who at the time was a NBA player and resident of New Jersey.

Ford created fraudulent documents using the victim’s name. She also forged or caused to be forged the victim’s signature on multiple documents, including a Merchant Agreement between the victim and the lender, an escrow document providing that the $2.5 million loan would be deposited into a bank account controlled by Ford, and a power of attorney document appointing another individual involved in the scheme to serve as the victim’s “attorney-in-fact” for banking and financial matters. Those fraudulent and forged documents were submitted in support of the $2.5 million loan application.

The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The aggravated identity theft charge carries a maximum potential penalty of two years in prison, which must be served consecutively to any other prison term. Sentencing is scheduled for March 4, 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 inspectors with 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 Catherine R. Murphy of the Economic Crimes Unit.

Defense counsel: Bruno C. Bier, Esq., New York

CAMDEN, N.J. – An Atlantic City woman was sentenced to 78 months in prison for her role in a drug trafficking and money laundering operation in the Atlantic County area, U.S. Attorney Craig Carpenito announced today.

Jazmin Vega, 45, previously pleaded guilty to one count of an indictment charging her with conspiracy to commit money laundering. U.S. District Judge Renee Marie Bumb imposed the sentence Nov. 14, 2019, in Camden federal court.

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

From 2010 through December 2014, Vega’s long-time paramour, Toye Tutis, 47, operated a large-scale drug trafficking ring out of the Ta’Ja Laundromat in Atlantic City, purchasing and distributing between 150 to 450 kilograms of cocaine and approximately 26 kilograms of heroin, and laundering between $1.5 and $3 million in drug proceeds. Tutis was aided by Vega, who admitted to laundering his drug trafficking proceeds in several ways, including through the couple’s various businesses – Ta’Ja Construction I LLC; Ta’Ja Real Estate Investors LLC; and Integrity Heating and Cooling LLC; and by purchasing more than 30 properties with tainted funds.

In addition to the prison term, Judge Bumb sentenced Vega to three years of supervised release and fined her $1,000. As part of their plea agreements, Vega and Tutis must forfeit 20 properties, cash and other assets.

Tutis also pleaded guilty and was sentenced to 264 months in prison.

U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; the DEA’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to sentencing.

He also thanked the New Jersey State Police; the Pennsylvania State Police, the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield, and Millville police departments for their assistance.

The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Camden Office.

NEWARK, N.J. – A Queens, New York, man today admitted impersonating a federal agent, U.S. Attorney Craig Carpenito announced.

Tornike Lubyk, 28, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of falsely impersonating an agent of the FBI.

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

Lubyk admitted that on July 8, 2019, during a traffic stop by the Paramus Police Department, he falsely advised Paramus officers that he was with the FBI’s C-22 organized crime squad based in the Manhattan field office, and presented an apparent FBI badge, apparent FBI credentials, and an apparent FBI security access card.

The charge of impersonating a federal officer carries a maximum potential penalty of three years in prison and a fine of $250,000, or twice the gross pecuniary gain to the defendant or loss to the victim, whichever is greater. Sentencing is scheduled for Feb. 20, 2020.

U.S. Attorney Carpenito credited FBI task force officers and special agents, under the direction of Special Agent in Charge Gregory W. Ehrie, Newark Field Division; and special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael, with the investigation leading to today’s guilty plea. He also thanked the Paramus Police Department for their work on the case.

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

Defense counsel: Warren S. Sutnick Esq., Hackensack, New Jersey

NEWARK, N.J. – A resident of the Dominican Republic was sentenced today to 12 months and one day in prison for allegedly trying to smuggle into the United States approximately three kilograms of cocaine, U.S. Attorney Craig Carpenito announced.

Jose Manuel Jimenez Jimenez, 47, previously pleaded guilty before U.S. District Judge Kevin McNulty to one count of illegal importation of more than 500 grams of cocaine. Judge McNulty imposed the sentence today in Newark federal court.

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

Jimenez arrived at Newark Liberty International Airport on a flight from Santo Domingo, Dominican Republic. During a screening, law enforcement officers discovered the cocaine sewn into the vest Jimenez was wearing.

In addition to the prison term, Jimenez is subject to deportation following his sentence.

U.S. Attorney Carpenito credited the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Brian Michael; and officers of U.S. Customs and Border Protection, under the direction of Troy Miller, director of Field Operations, New York Field Office, with the investigation leading to today’s sentencing.

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

Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark