District of New Jersey

CAMDEN, N.J. – A Gloucester County, New Jersey, man was charged today with allegedly distributing videos and images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Matthew Alongi, 30, of Thorofare, New Jersey, is charged by complaint with one count of distribution of child pornography. He appeared today before U.S. Magistrate Judge Karen M. Williams in Camden federal court.

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

In November 2018, an undercover law enforcement officer participated in an online chat group on a social networking application that allows internet users to trade digital files. During multiple sessions, a user shared multiple files featuring images of child sexual abuse from an internet address traced to Alongi’s residence.

On May 8, 2019, law enforcement lawfully obtained from Alongi’s residence multiple devices that contained hundreds of images and videos of child pornography, including images of prepubescent children being sexually abused.

The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000.

U.S. Attorney Carpenito credited special agents of Homeland Security Investigations, Cherry Hill Office, under the direction of Resident Agent in Charge Jeff Kocher; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Charles A. Fiore; the West Deptford Police Department, under the direction of Chief Sean McKenna; and the N.J. State Police, under the direction of Col Patrick J. Callahan, with the investigation leading to today’s charge.

The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the U.S. Attorney’s Office in Camden.

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 Camden County, New Jersey, man who worked as a corrections officer at a federal facility admitted today that he accepted cash bribes in exchange for delivering contraband to inmates, U.S. Attorney Craig Carpenito announced.

Paul Anton Wright, 34, of Berlin, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count 1 of a five-count indictment charging him with accepting thousands of dollars in cash bribes in exchange for delivering contraband to federal inmates at Fort Dix.

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

From 2014 through April of 2018, Wright worked as a correctional officer at Federal Correctional Institution Fort Dix (FCI Fort Dix), a U.S. Bureau of Prisons facility in Burlington County. In 2015, Wright agreed to accept cash bribes in exchange for smuggling contraband, including tobacco, K2 (synthetic marijuana) and suboxone (a narcotic used to treat opioid addiction), to inmates.

Wright received cash bribes from two individuals outside of FCI Fort Dix. Between February and September 2015, Wright traveled to Philadelphia on multiple occasions to meet with a relative of an FCI Fort Dix inmate and subsequently delivered contraband, including K2, to the inmate. Wright would conceal the contraband in order to smuggle it into FCI Fort Dix. Between October and December of 2015, Wright traveled to New York City on multiple occasions to pick up contraband from a different inmate’s associate, from whom he also received corrupt cash payments in return for smuggling contraband into FCI Fort Dix.

The bribery charge to which Wright plead guilty carries a maximum potential penalty of 15 years in prison and a maximum potential fine of $250,000. In addition, Wright agreed to the entry of a forfeiture money judgment against him in the amount of $50,000, reflecting monies he accepted as bribes during the course of his criminal scheme. Sentencing is currently scheduled for Feb. 27, 2020.

U.S. Attorney Carpenito credited special agents with the U.S. Department of Justice Office of Inspector General, New York Field Office, under the direction of Special Agent in Charge Guido Modano, with the investigation leading to today’s guilty plea. He also thanked special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, for their assistance in the prosecution.

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

Defense counsel: Angelo R. Bianchi Esq. and Peter C. LaGreca Esq., West Caldwell, New Jersey

TRENTON, N.J. – A Somerset County, New Jersey man, today admitted to engaging in a Ponzi scheme targeting elderly investors and to subscribing to a false tax return, U.S. Attorney Craig Carpenito announced.

Daniel Rivera, 60, of Hillsborough, New Jersey, a former financial advisor, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information charging him with one count of wire fraud and one count of aiding and abetting in the false subscribing to a tax return.

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

From 2008 through 2017, Rivera solicited primarily elderly investors to invest their money in a company called Robbins Lane Properties Inc. Rivera represented to investors that Robbins Lane was a company staffed by experienced real estate professionals that invested in real estate ventures. Rivera told investors that by investing in Robbins Lane, senior investors would share in the company’s investment portfolio by lending it money to invest in real estate. Rivera further promised investors that they would receive a guaranteed monthly income, and that the company’s rate of return was based on secure real estate investments in the company’s portfolio. In reality, Robbins Lane had no employees, no real estate portfolio, and the monies used to pay investors as a purported return on their investments was from funds he received from other investors. Rivera also used funds sourced from investors to pay his personal and unrelated business expenses, including paying his child’s college tuition and sorority fees.

During the course of the fraudulent scheme, on March 5, 2014, Rivera filed with the IRS a federal income tax return that underreported his taxable income by $33,276.

The wire fraud count to which Rivera pleaded guilty 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. The aiding and abetting in the subscribing to a false tax return count with which Rivera is charged carries a maximum potential punishment of three years in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 21, 2020.

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

The government is represented by Assistant U.S. Attorney Dara Aquila Govan, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark.

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

NEWARK, N.J. – A father and son from Bergen County, New Jersey, were sentenced today to 27 months in prison and eight months of home detention, respectively, for their roles in a scheme to use straw buyers and short sales on properties to defraud mortgage lenders out of hundreds of thousands of dollars and to avoid paying taxes on the proceeds of the scheme, U.S. Attorney Craig Carpenito announced.

George Bussanich Sr., 60, of Park Ridge, New Jersey, was sentenced to 27 months in prison. He previously pleaded guilty before U.S. District Judge Claire C. Cecchi to a superseding information charging him with one count of bank fraud conspiracy and one count of tax evasion. His son, George Bussanich Jr., 39, of Upper Saddle River, New Jersey, was sentenced to eight months of home detention. He previously pleaded guilty to tax evasion. Judge Cecchi imposed both sentences today in Newark federal court.

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

Between 2009 and 2012, Bussanich Sr. and Bussanich Jr. conspired to defraud mortgage lenders through the sham short sales of two properties, located on Jefferson Avenue in Emerson, New Jersey, and Lillian Street in Park Ridge.

Bussanich Sr. controlled various purported medical clinics and surgical centers in New Jersey. He recruited his business partner and an employee from a sleep clinic in Cliffside Park, New Jersey, to pose as legitimate, unrelated buyers of the properties. In order to conceal his involvement, Bussanich Sr. used a business entity he controlled to fund each short sale transaction and the subsequent repurchase of those properties. Bussanich Jr., the owner of record of both properties, negotiated the short sales with the lenders using materially false information that misrepresented the circumstances of the short sales, the relationships of the parties, and the source of funding for the transactions.

Approximately two years after the fraudulent short sales, Bussanich Sr. bought the properties back from the straw purchasers using money that he owed his business partner from an earlier venture.

Bussanich Sr. and Bussanich Jr. also failed to disclose on their tax returns income that they received from the purported medical clinics and surgical centers. Bussanich Sr. and Bussanich Jr. used those funds to purchase high-end luxury vehicles and to purchase official bank checks to fund the fraudulent short sales.

In addition to the prison terms, Judge Cecchi sentenced Bussanich Sr. to five years of supervised release and Bussanich Jr. to three years of 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, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s sentencings.

The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the Office’s Economic Crimes Unit, and Nicholas P. Grippo, Attorney in Charge of the Trenton Office.

Defense counsel: Stacy Biancamano Esq., Jersey City, New Jersey

CAMDEN, N.J. - A Camden County, New Jersey, man was sentenced today to 120 months in prison for his role in a Camden drug trafficking organization that distributed large amounts of crack cocaine, furanyl fentanyl and heroin, U.S. Attorney Craig Carpenito announced.

Mark Campbell, 39, a/k/a “D” and Diz,” of Sicklerville, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to a superseding information charging him with one count of conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base. Judge Bumb imposed the sentence today in Camden federal court.

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

Campbell admitted that he supplied large quantities of cocaine base (crack cocaine) to members of a drug trafficking organization operating around the 1700 block of Filmore Street in Camden. The organization also distributed heroin and furanyl fentanyl, which it obtained from other suppliers. Ten members of the drug ring were arrested in June 2017 following a long-term investigation by the FBI, which utilized multiple telephone wiretaps, surveillance, confidential informants, cooperating witnesses, more than 20 controlled drug purchases, a GPS vehicle tracker and four court-authorized search warrants, among other investigative techniques. Members of the drug trafficking organization distributed crack cocaine, furanyl fentanyl, and heroin to users and resellers in and around Camden and to people cooperating with the FBI.

The investigation ultimately led to the seizure of more than 300 grams of crack cocaine, quantities of furanyl fentanyl and heroin, a firearm, and drug paraphernalia. An 11th defendant was later charged in March 2018.

In addition to the prison term, Judge Bumb sentenced Campbell to three years of supervised release, 300 hours of community service and fined him $10,000.

U.S. Attorney 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; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation. He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.

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

Defense counsel: Troy A. Archie Esq., Cinnaminson, New Jersey

NEWARK – A Brooklyn, New York, man was sentenced today to 48 months in prison for conspiring to rob a home improvement stores with stolen credit card information, U.S. Attorney Craig Carpenito announced.

Omar Doolittle, 38, previously pleaded guilty before U.S. District Court Judge Stanley R. Chesler to an information charging him with one count of conspiring to commit bank fraud and one count of aggravated identity theft. Judge Chesler imposed the sentence today in Newark federal court.

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

From July 2017 through August 2018, Doolittle and his conspirators placed online orders with a home improvement store using stolen credit card information and arranged to pick up those goods in person at various store locations throughout New Jersey and New York. Doolittle and his conspirators would pick up the goods using dozens of false or stolen identities and would then return the goods at different store locations or sell the goods at a discount to third parties for cash.

In addition to the prison term, Judge Chesler sentenced Doolittle to five years of supervised release. Restitution will be determined at a later date.

U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s Organized Crime and Drug Enforcement Task Force/Narcotics Unit in Newark.

Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 37 months in prison for his role in a food stamps fraud and his subsequent flight to avoid prosecution, U.S. Attorney Craig Carpenito announced.

Jamil Bader, 60, of Teaneck, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an indictment charging him with one count of Supplemental Nutrition Assistance Program (SNAP) benefits fraud. Judge Martinotti imposed the sentence today in Newark federal court.

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

Every food stamp/SNAP recipient receives an Electronic Benefits Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the transaction and informs the retailer whether the transaction should be authorized or declined. If the transaction is authorized, the amount of the purchase is then deducted from the SNAP benefits reserved for the customer, and the amount is credited to the retailer’s designated bank account.

Bader admitted that he controlled a small grocery store that was located on Clinton Avenue in Newark between September 2013 and September 2016. Bader acknowledged placing this store in another person’s name because he had previously been banned from participation in SNAP for similar conduct. Bader admitted that he repeatedly exchanged SNAP benefits for cash and kept a portion of that transaction for himself. Bader acknowledged that this scheme caused at least $754,424 in losses to the federal government. Bader also admitted fleeing from the United States and obtaining a foreign passport in an effort to avoid these criminal charges.

In addition to the prison term, Judge Martinotti sentenced Bader to three years of supervised release and ordered him to pay restitution of $754,424.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of the Inspector General, under the direction of Special Agent in Charge Bethanne Dinkins, with the investigation, and the U.S. Marshals Service and Department of Homeland Security with Bader’s apprehension and return to New Jersey.

The government is represented by Special Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Frederick “Chip” Dunne III Esq., Kearny, New Jersey

CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced today to 150 months in prison for selling over 200 grams of crystal methamphetamine and for staging a fake robbery of a Union County, New Jersey, pawnshop for the purpose of perpetrating an insurance fraud, U.S. Attorney Craig Carpenito announced.

Salvatore “Sam” Piccolo, 68, of Atlantic City, a member of the Philadelphia La Cosa Nostra organized crime family, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with distribution more than 50 grams of methamphetamine and one count of wire fraud. Judge Kugler imposed the sentence today in Camden federal court.

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

Piccolo distributed quantities of crystal methamphetamine to FBI undercover agents on three separate occasions between June 2017 and September 2017. On one occasion, he sold the undercover agent approximately four ounces of crystal methamphetamine in a restaurant parking lot in Sicklerville, New Jersey, in exchange for a $5,660 cash payment. On two other occasions in September 2017, FBI undercover agents purchased two ounce quantities of crystal methamphetamine from Piccolo in Atlantic City for cash payments of $2,800 for each transaction.

Piccolo also admitted that on April 19, 2014, he and an accomplice conspired to commit an insurance fraud. They entered a pawn shop in Union County, purportedly to sell some silver items. Once inside the shop, the accomplice displayed a hand gun while Piccolo, wearing a nylon mask, chained the front doors closed to prevent anyone from entering. The owner was bound, as a pretense, while Piccolo and his accomplice looted the safe of what the owner told police was approximately $60,000 in cash, several pieces of jewelry, and a hand gun. The owner later submitted to his insurance company a fraudulent loss claim that was paid for approximately $174,000.

In addition to the prison term, Judge Kugler sentenced Piccolo to five years of supervised release and ordered him to pay $174,025 in restitution to Northland Insurance of Minnesota.

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

The government is represented by Assistant U.S. Attorney Patrick C. Askin of the Criminal Division, Camden Office, and Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney's Office Organized Crime/Gangs Unit in Newark.

Defense counsel: Louis Barbone Esq., Atlantic City

NEWARK, N.J. – The United States has entered into an agreement with a national daycare provider to resolve an Americans with Disabilities Act (ADA) lawsuit filed by the government, U.S. Attorney Craig Carpenito announced today.

The government alleged that Spring Education Inc. (SEI), formerly known as Nobel Learning Communities Inc., discriminated against a 3-year-old girl (M.M.) and her parents in violation of the ADA by refusing to make reasonable modifications to its toileting policy and then expelling the child on the basis of her disability. The girl had toileting delays resulting from her disability.

“Equal opportunity is the core American value that is protected by the ADA and advanced by today’s agreement,” U.S. Attorney Carpenito said. “With this agreement, we ensure that children with disabilities attending SEI’s daycare facilities in New Jersey and across the United States receive the protection to which they are entitled under the law. We are proud to continue our vigorous enforcement of the ADA in New Jersey and will continue to root out discrimination to the fullest extent of the law.”

The U.S. Attorney’s Office launched an investigation after receiving a complaint from the parents of M.M. – who was diagnosed with Down syndrome – that SEI’s facility in Moorestown, New Jersey, set an arbitrary deadline for the child to become toilet-trained. According to the complaint, SEI then expelled M.M., with only five days’ notice, when she failed to meet that deadline, despite M.M.’s parents providing medical documentation explaining that toileting delays are common in children with Down syndrome. To justify expelling M.M., SEI pointed to its “corporate policy” on toileting, which SEI said required 3-year-olds in certain classrooms to be fully toilet trained.

After conducting the investigation, the United States filed a complaint in federal district court against SEI, alleging that the company violated the ADA by discriminating against both M.M. and her parents when it refused to modify its standard toileting policy and then expelling the child on the basis of her disability.

In 2009, the U.S. Department of Justice brought an action against SEI in Pennsylvania (when it was still operating as Nobel Learning Communities), alleging that the company had a pattern or practice of discriminating against children with disabilities. The parties settled that lawsuit in 2011.

The ADA prohibits discrimination on the basis of disability in child care centers, which must make reasonable modifications to their policies, practices, or procedures when necessary to provide equal access to a child with a disability, unless a modification would fundamentally alter the nature of the goods and services. Reasonable modifications in a child care setting can include personal services, such as diapering or toileting assistance for children who need it due to a disability, regardless of age, when such personal services are provided to other children.

Under the terms of the agreement, SEI is required to adopt a policy consistent with the ADA that requires it to provide reasonable modifications for children with disabilities that impact their ability to be toilet-trained. That policy change will protect children attending SEI’s seven facilities in New Jersey and more than 150 schools in 16 other states and Washington, D.C. SEI must also comply with rigorous reporting requirements, inform current and prospective families about the policy change, and train current and future employees on the policy. SEI must also pay a civil penalty of $30,000 to the United States and $18,000 as damages to M.M.

Individuals who believe they may have been victims of discrimination may file a complaint with the U.S. Attorney’s Office at: Civil Rights Enforcement or call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.

Additional information about the ADA can be found at ADA.gov or by calling the Department of Justice’s toll-free information line at 800-514-0301 and 800-514-0383.

The government is represented by Assistant U.S. Attorneys Jordan M. Anger, Ben Kuruvilla, and David V. Simunovich of the U.S. Attorney’s Office Civil Division; Special Assistant U.S. Attorney Victor Williamson of the U.S. Attorney’s Office’s Civil Rights Unit; and Trial Attorney Charlotte Lanvers of the U.S. Department of Justice, Civil Rights Division, Disability Rights Section.

NEWARK, N.J. – Six Passaic County, New Jersey, residents were charged today for their roles in a large-scale money laundering and illegal money transmitting scheme, U.S. Attorney Craig Carpenito announced.

The defendants are each charged by complaint with one count of conspiracy to launder drug proceeds and one count of operating an unlicensed money transmitting business:

• Felicia Almonte, 54, Passaic, New Jersey
• Erickson Checo-Almonte, 29, Passaic
• Julio De La Cruz-Acosta, 40, Paterson, New Jersey
• Willy Cruz-Bonilla, 22, Paterson
• Jordano Abreu-Diaz, 24, Paterson
• Enmanuel Nunez-Reyes, 26, Paterson

All defendants except Abreu-Diaz are scheduled to make their initial appearances this afternoon before U.S. Magistrate Judge James B. Clark in Newark federal court. Abreu-Diaz is expected to appear before Judge Clark later this week.

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

The defendants were part of a large-scale money laundering conspiracy that used the U.S. banking system to convert over $27 million in cash from illegal drug sales in New Jersey and New York into cashier’s checks.

Between July 2016 and January 2019, the defendants and other conspirators purchased over 1,000 cashier’s checks, which were used as a mechanism to transfer drug proceeds out of the United States. The checks were made payable to individuals and companies specified by money brokers working on behalf of drug trafficking organizations with ties to the Dominican Republic, Colombia, and elsewhere.

The cashier’s check scheme was designed to conceal the nature, source, ownership, and control of the illegal drug proceeds in order to avoid scrutiny by law enforcement and banking institutions. The defendants were typically paid a fee of $150 to $200 for each check they purchased.
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 operating an unlicensed money transmitting business carries a maximum prison sentence of five years and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; 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 man from Dracut, Massachusetts, was sentenced today to 235 months in prison for using the internet to solicit sex with a minor, U.S. Attorney Craig Carpenito announced.

Richard Bly, 69, was convicted in July 2019 of online enticement of a minor after a two-day trial before U.S. District Judge Kevin McNulty, who imposed the sentence today in Newark federal court.

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

On Feb. 7, 2017, Bly posted an advertisement on an internet website seeking to meet parents willing to allow Bly to engage in sexual activity with their young children. Over the course of several weeks, Bly had numerous e-mail and text message exchanges with an undercover law enforcement agent posing as the mother of an 8-year-old girl. In graphic and explicit terms, Bly repeatedly expressed his interest in engaging in sexual activity with the purported child, and made plans to meet the child and her mother at a hotel in Ramsey, New Jersey. Law enforcement officers arrested Bly at the hotel on the same morning that Bly had planned to sexually assault the purported child. At the time of his arrest, Bly was on bail after having been arrested and charged in August 2016 in Massachusetts state court for engaging in similar conduct.

In addition to the prison term, Judge McNulty sentenced Bly to 10 years of supervised release.

U.S. Attorney Carpenito credited special agents of Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Brian Michael; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Joshua L. Haber and Heather Suchorsky of the U.S. Attorney’s Office Criminal Division.

Defense counsel: Thomas Ambrosio Esq., Lyndhurst, New Jersey

Initiative emphasizes enforcing gun prohibitions based on domestic violence convictions and mental health denials

NEWARK, N.J. – Today, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.

Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.

“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” Attorney General William P. Barr said. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”

“In the past two years, we’ve taken nearly 500 guns off the streets in New Jersey,” U.S. Attorney Craig Carpenito, District of New Jersey, said. “In the past year in Jersey City, incidents of murder by shooting are down 60 percent and shooting incidents overall are down 29 percent. In Newark, shooting murder incidents and shooting murder victims are down 20 percent. Newark Department of Public Safety Director Anthony F. Ambrose recently noted that 150 fewer people shot, and there were 30 fewer funerals in the city compared to last year. We look forward to working with our law enforcement partners in putting to use the additional tools Project Guardian gives us will help us make the streets of New Jersey even safer.”

“I am very proud to say that here in New Jersey, the five principles listed in the Project Guardian Nationwide Strategic Plan announced by Attorney General Barr today have been well established through the leadership of United States Attorney Craig Carpenito, and with the help of tremendous local, state, and federal partnerships,” ATF Special Agent In Charge Charlie J. Patterson said. “Project Guardian’s principals are central to ATF’s strategic priority mission, including strong collaboration with our partners, vigorous enforcement of federal firearm laws, and the use of shared Crime Gun Intelligence to focus on violent offenders. ATF, with the assistance of our partners, have recently had great success in identifying and disrupting armed violent individuals, which include criminal groups and gangs, from terrorizing our communities.”

“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.”

Project Guardian’s implementation is based on five principles:

1) Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.

2) Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.

Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.

3) Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.

4) Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.

Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.

5) Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.

Federal law enforcement represents only about 15 percent of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.

NEWARK, N.J. – An Ohio man was sentenced today to 300 months in prison for robbing a mobile communications company retail store in Orange, New Jersey, at gunpoint in June 2016, U.S. Attorney Craig Carpenito announced.

Frederick A. White, 47, previously pleaded guilty to one count of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence 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 statements made in court:

On the afternoon of June 11, 2016, White entered a mobile communications company retail store in Orange wearing a wig and brandishing a handgun. White stole cash from an employee of the store and fled. He was arrested a short while later after a foot pursuit by the Orange Police Department.

White previously was convicted of multiple counts of armed and attempted carjacking and discharging a firearm during a crime of violence in federal court in Newark in 1993.

In addition to the prison term, Judge Cecchi sentenced White to five years of 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, and the Orange Police Department, under the direction of Director Todd Warren and Chief Law Enforcement Officer Vincent Vitiello, for their assistance 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 2nd, for its assistance.

The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Desiree Grace Latzer of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Michael N. Pedicini Esq., Chatham, New Jersey

TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 144 months in prison for narcotics trafficking, possession of a firearm as a convicted felon, and using a firearm in furtherance of drug trafficking, U.S. Attorney Craig Carpenito announced.

Jeramie Harris, 34, of Asbury Park, New Jersey, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of possession with the intent to distribute cocaine, one count of possession of a firearm as a convicted felon, and one count of possession of a firearm in furtherance of drug trafficking. Judge Wolfson imposed the sentence today in Trenton federal court.

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

Harris was arrested as part of a Drug Enforcement Administration (DEA) investigation into a drug trafficking organization known to traffic heroin and fentanyl, as well as cocaine, in Monmouth and Ocean counties and elsewhere.

On May 1, 2019, law enforcement officers arrested Harris at his residence, which was an identified drug mill/stash house used to store and package narcotics, including fentanyl and heroin. Harris was found with a large kilogram press and narcotics packaging materials in his vehicle. Law enforcement officers found a bag containing a Röhm Gesellschaft .22 caliber six-shot revolver containing six rounds of ammunition, a metal spoon, and clear zip-lock baggies, as well as a second kilogram press, rubber bands, a digital scale, and a bundle of heroin. In a drawer in the kitchen area, law enforcement also found a clear bag containing approximately 25 grams of cocaine.

In addition to the prison term, Judge Wolfson sentenced Harris to five years of supervised release.

U.S. Attorney Carpenito credited special agents of Drug Enforcement Administration’s High Intensity Drug Trafficking Area Program out of Monmouth and Ocean counties, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.

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

Defense counsel: Brandon D. Minde Esq., Cranford, New Jersey

CAMDEN, N.J. – A Camden County, New Jersey, man has been sentenced to 240 months in prison for child pornography and obscenity offenses, U.S. Attorney Craig Carpenito announced today.

Joseph Fini, 35, of Clementon, New Jersey, pleaded guilty on Jan. 29, 2019, before U.S. District Judge Robert B. Kugler to an information charging him with one count of receipt of child pornography and one count of transferring obscene material to a minor. Fini, who was previously convicted of possession of child pornography, also pleaded guilty to violating the terms of the supervised release imposed in that case. Judge Kugler imposed the sentence Nov. 6, 2019, in Camden federal court. 

According to documents filed in this case:

From November 2015 to Feb. 22, 2017, Fini received 745 images of child sexual abuse and 252 videos containing child sexual abuse over the Internet. These videos and images included children under the age of 12 and sadistic and masochistic conduct. Fini also used the Internet to transfer and distribute obscene material to a minor.

At the time Fini committed these offenses, he was a serving a term of federal supervised for a previous child pornography offense. Fini received a 230 month sentence for the receipt of child pornography, a concurrent 120 month sentence for the distribution of obscene material, and a 10 month consecutive sentence for violating the terms of his supervision, for a total of 240 months in prison.    

In addition to the prison term, Judge Kugler also sentenced Fini to lifetime supervised release and ordered him to pay $40,000 in restitution to victims of his offenses. Fini also must register as a sex offender.

U.S. Attorney Carpenito credited special agents of Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael, with the investigation leading to the sentencing.

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

NEWARK, N.J. – A Newark man was sentenced today to 151 months in prison for possession of a loaded firearm and possession with intent to distribute heroin in Newark U.S. Attorney Craig Carpenito announced.

Aljaneer Waller, 41, previously pleaded guilty before U.S. District Court Judge Kevin McNulty to an information charging him with one count of possession of a firearm by a convicted felon, and one count of possession with intent to distribute heroin. Judge McNulty imposed the sentence today in Newark federal court.

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

On May 11, 2018, at approximately 8:00 p.m., officers from the Newark Police Criminal Intelligence Unit were patrolling the area of Maple and Hansbury avenues in Newark when they observed an Audi automobile parked in the driveway of what appeared to be an uninhabited house. The vehicle had dark tinting on all of its windows, including on the front windows and windshield, which is a violation of New Jersey motor vehicle traffic laws. It was also partially blocking the sidewalk, which is also a violation of New Jersey motor vehicle laws.

As the officers approached the Audi, they observed Waller sitting in the reclined driver’s seat with the window rolled down. They also smelled a strong odor of marijuana emanating from the vehicle. When Waller observed the officers approaching the Audi, he became startled and abruptly turned towards the back seat, and then turned back towards the front again.

One of the officers then shined his flashlight into the Audi and observed what appeared to be a silver handgun on the back seat of the Audi. Waller opened the driver’s door and began to quickly exit the Audi. However, the officers detained him and then conducted a search of the back seat area of the Audi, which revealed a loaded .357 Magnum Ruger SP101 revolver and 114 envelopes of heroin. Waller was also found to have $1,067 in cash in his pocket. In the trunk of the Audi, officers found more than $13,000 and 40.6 grams of marijuana.

In addition to the prison term, Judge McNulty sentenced Waller to three years of 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, and officers of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the Violent Crimes Unit in Newark.

Defense counsel: Brooke M. Barnett Esq. Newark

NEWARK, N.J. – A Bronx, New York, man was sentenced today to 30 months in prison for his role in a scheme to obtain and ultimately cash more than $1 million in fraudulent income tax refund checks issued by the United States, U.S. Attorney Craig Carpenito announced.

Wellington Feliz, 36, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to two counts of an indictment charging him with theft of government property and aggravated identity theft. Judge Arleo imposed the sentence today in Newark federal court.

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

Stolen Identity 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 complete IRS-1040 tax return forms using the fraudulently obtained information and falsifying wages earned, taxes withheld and other data, always ensuring that fraudulent tax return generates a refund. The perpetrators then direct the U.S. Treasury Department to mail the refund checks to locations they control or can access. In some cases, they bribe mail carriers to remove the refund checks from their mail routes. With the fraudulently obtained refund checks in hand, the perpetrators generate cash proceeds by depositing the checks into bank accounts they control.

At his plea hearing, Feliz admitted that he knew that the approximately 180 tax refund checks that he and others deposited into bank accounts under his direct control did not belong to him or the company named on the bank account. He admitted to personally withdrawing funds from these accounts and profiting from his role in the scheme. He also admitted that he knew that the checks were issued by the IRS and the U.S. Treasury, and that it was illegal to deposit the tax refund checks and use the proceeds for his own benefit. Feliz admitted that he and his conspirators deposited over $1 million in fraudulently obtained income tax refund checks into bank accounts controlled by him.

Feliz was initially charged with six co-defendants (Luis Pena, Lourdes Ortiz, Raymundo Hernandez, Isaias Hernandez, and Gloria Rivera of the Bronx, New York; and Fausto Bernard of Newark) in a criminal complaint alleging conspiracy to commit theft of government funds, relating to a SIRF scheme that caused more than $2.6 million in losses to the United States government. Feliz and Isaias Hernandez were later charged by indictment with conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. After being charged by complaint, Feliz violated the terms of his pretrial release conditions and fled to the Dominican Republic. In April 2019, Feliz was extradited to the District of New Jersey.

All six co-defendants have pleaded guilty to and have been sentenced for their roles in the scheme. One additional conspirator, Angel Fernandez of Newark, has also pleaded guilty to charges regarding his participation in the conspiracy. All have been ordered to pay restitution to victims and forfeiture to the United States.

In addition to the prison term, Judge Arleo sentenced Feliz 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; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt; special agents of the U.S. Postal Service – Office of the Inspector General, under the direction of Special Agent in Charge Matthew Modafferi; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Francesca Liquori and Sara F. Merin of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Laurie M. Fierro Esq., Kinnelon, New Jersey

NEWARK, N.J. – A Somerset County, New Jersey, man is expected to appear in court today on an outstanding warrant charging him with narcotics offenses and fleeing from law enforcement, U.S. Attorney Craig Carpenito announced.

William T. Bouza, 45, of Watchung, New Jersey, was arrested on Nov. 5, 2019, on a complaint charging him with conspiracy to distribute over one kilogram of heroin and obstructing and impeding federal law enforcement officers. Bouza is scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

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

In February 2019, Bouza arranged for a vehicle that was equipped with a secret compartment, or “trap,” containing over 16 kilograms of heroin, to be shipped from California to Union County, New Jersey. Law enforcement officers intercepted the vehicle, seized the narcotics, and arranged for a controlled delivery. Law enforcement officers observed Bouza enter the area, but he departed prior to taking possession of the vehicle. Bouza’s narcotics-related activities continued over the following months.

In October 2019, law enforcement officers determined that Bouza was storing and processing narcotics for street-level distribution at multiple locations in Essex County, New Jersey. Officers approached Bouza, who fled in a motor vehicle and attempted to ram a law enforcement vehicle in an effort to elude law enforcement. Law enforcement officers subsequently discovered over 1,000 packages, or “bricks,” of heroin, each containing approximately 50 individual doses, in one of Bouza’s stash houses. They also seized over $400,000 in cash from one of Bouza’s other stash houses.

The conspiracy to distribute heroin count carries a maximum penalty of life in prison, a mandatory minimum term of 10 years in prison and a $10 million fine. The obstructing and impeding federal law enforcement officers charge carries a maximum penalty of eight years imprisonment and a $250,000 fine.

U.S. Attorney Carpenito credited law enforcement officers with the U.S. Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, the N.J. State Police, under the direction of Col. Patrick J. Callahan, and other law enforcement agencies of the Opioids Task Force with the investigation leading to the charges.

The government is represented by Special Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Narcotics/OCDETF Unit in Newark.

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

NEWARK, N.J. – A Somerset County, New Jersey, man was charged today with allegedly distributing and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

John Schulenburg, 65, of Basking Ridge, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He appeared today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

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

In July 2019, an undercover law enforcement officer conducted an online session using a publicly available peer-to-peer (P2P) program, which allows internet users to trade digital files. During this session, a user shared multiple files of featuring images of child sexual abuse from an internet address traced to Schulenburg’s residence.

On Nov. 6, 2019, law enforcement lawfully obtained a computer from Schulenburg’s residence that contained hundreds of images and videos of child pornography, including images of prepubescent children being sexually abused. 

The count of distribution of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum penalty of 40 years in prison, and fine of $250,000. The count of possession of child pornography carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison, and fine of $250,000.

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

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

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

CAMDEN, N.J. – An Iowa man is scheduled to appear in court today on charges of producing and distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Donavon Oliphant, 37, of Independence, Iowa, is charged by criminal complaint with one count of producing visual depictions of a child engaged in sexually explicit conduct and one count of distribution of child pornography. Oliphant is expected to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.

According to documents filed in this case:

In August 2019, Oliphant produced 11 images and four videos of child pornography. The videos depicted sexual acts involving a pre-pubescent child and an adult male. Oliphant then used a peer-to-peer file-sharing program to share these images and videos with an individual located in Gloucester County, New Jersey.

Oliphant was arrested on Oct. 15, 2019, in Iowa and was detained without bail following an appearance before a federal magistrate judge in Cedar Rapids.

The production of child pornography charge carries a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. The distribution of child pornography offense carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of Homeland Security Investigations (HSI), under the direction of Special Agent Brian Michael, with the investigation leading to today’s charges.

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

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

CAMDEN, N.J. – A member of a drug-trafficking organization today admitted conspiring to distribute illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.

Jasmin Velez, 26, of Camden, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging her with one count of conspiracy to distribute heroin within 1,000 feet of a school.

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

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

The count to which Velez pleaded guilty carries a maximum potential penalty of 40 years in prison and a $2 million fine. Sentencing is scheduled for Feb. 10, 2020.

Eight other members of the drug-trafficking conspiracy – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, and Naeem Sadler – previously have pleaded guilty in this case. The charges against 10 other defendants in this case remain pending, and they are presumed innocent unless and until proven guilty.

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 N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.

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: Michael Huff Esq., Camden

TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 24 months in prison for evading more than $2.3 million in personal and corporate income taxes between 2002 and 2011, and in 2015, U.S. Attorney Craig Carpenito announced.

Tito Viteri, 41, of Cream Ridge, New Jersey, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of tax evasion. Judge Wolfson imposed the sentence today in Trenton federal court.

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

Since 2002, Viteri was the owner and operator of numerous commercial trucking companies that performed delivery services. Between 2002 and 2011, and in 2015, Viteri evaded the payment of more than $2 million in personal and business-related taxes by:

• “pyramiding” companies and using nominees as the purported owners of several of the companies in order to shield business assets while incurring employment tax liabilities; • failing to file timely and accurate quarterly federal tax returns by falsely categorizing employees as independent contractors, for whom employment taxes did not have to be paid; • receiving unreported kickback income from an employee; • concealing personal income and assets by using nominees, and depositing substantial amounts of income into nominee bank accounts and failing to report that income on his personal tax returns.

In 2008, an IRS audit determined that Viteri owed approximately $785,000 in unpaid taxes for one of his companies, and that he himself owed approximately $315,000 in unpaid personal income taxes. Although Viteri began making payments to the IRS in August 2011, he stopped making those payments in December 2013, claiming he was not “bringing enough money home.” Despite his claims, from February 2013 to February 2016 Viteri made approximately $111,000 in rental payments (approximately $3,000 per month) for a property in Chesterfield. In 2016, although he still had substantial outstanding tax liabilities, Viteri purchased a home in Cream Ridge for more than $920,000. To conceal from the IRS the source of the funds used to purchase the home, Viteri arranged for the home to be purchased in his mother’s name.

In addition to the prison term, Chief Judge Wolfson sentenced Viteri to two 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; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark: and the U.S. Department of Labor, Office of the Inspector General, under the direction of Special Agent in Charge Michael Mikulka in New York, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney J. Brendan Day of the Criminal Division in Trenton.

Defense counsel: Darren Gelber Esq., Woodbridge, New Jersey

NEWARK, N.J. – A Riverside, California, man was sentenced today to 27 months in prison for transporting heroin and fentanyl from California to New Jersey for distribution in New Jersey, U.S. Attorney Craig Carpenito; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration, New York Division; New York City Police Commissioner James P. O’Neill; Keith M. Corlett, Acting Superintendent of the New York State Police; and Angel M. Melendez, Special Agent in Charge, Homeland Security Investigations, New York Field Office, announced.

Joselito Colindres, 42, previously pleaded guilty before U.S. District Court Judge William J. Martini to an information charging him with one count of conspiracy to distribute and possess with intent to distribute over one kilogram of heroin and over 400 grams of fentanyl. Judge Martini imposed the sentence today in Newark federal court.

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

On Oct. 21, 2018, law enforcement officers learned that Colindres and Nester Estuardo Ruano Gutierrez were driving a tractor-trailer containing narcotics from California to New Jersey and elsewhere. After a lawful search of the tractor trailer, law enforcement officers found boxes of narcotics, including approximately 10 kilograms of heroin and four kilograms of fentanyl. Colindres admitted in court that these narcotics were intended for sale in and around New Jersey.

In addition to the prison term, Judge Martini sentenced Colindres to two years of supervised release.

U.S. Attorney Carpenito credited the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force (OCDETF) and the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), with the investigation leading to today’s sentencing.

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

The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF) Unit in Newark. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

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

CAMDEN, N.J. – A McKinney, Texas, man was sentenced today to 15 months in prison for conspiring to launder $200,000, which he believed was derived from the sale of narcotics, U.S. Attorney Craig Carpenito announced. 

John Eckerd, 55, previously pleaded guilty before U.S. District Court Judge Renee Marie Bumb to an information charging him with one count of conspiracy to launder money. Judge Bumb imposed the sentence today in Camden federal court.

Eckerd’s conspirator, Anthony Romano, 53, of Springfield, New Jersey, was sentenced by Judge Bumb on Sept. 26, 2019, to 54 months in prison for his role in conspiring to launder over $590,000 in United States currency.    

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

Between September 2017 and December 2017, Romano engaged in 10 separate money laundering transactions with an undercover agent. The agent and Romano met at various locations in Atlantic County, New Jersey, to discuss ways to conceal the origin of the money and to exchange the cash. Romano received bags of cash ranging in amounts of $10,000 to $60,000.  The undercover agent represented to both Romano and Eckerd that the cash was derived from selling drugs on behalf of a South American drug cartel.

In exchange for the cash, Romano provided the agent with various business checks, less a fee that Romano charged for performing the illegal transaction. Several business checks were from shell companies that Romano formed in order to conceal and disguise the nature of the transaction.   

Twenty days after Romano’s initial meeting with the undercover agent, Romano spoke to the agent about laundering larger sums of cash through an associate – Eckerd – in Texas. At the time, Eckerd was allegedly building a high-end underground residential bunker development outside of Dallas. The development project was marketed as a five-star doomsday escape for the wealthy with DEFCON 1 preparedness and allegedly capable of withstanding catastrophic events ranging from viral epidemics to nuclear war. Through this development project, it was represented to the undercover agent that Eckerd could launder larger amounts of cash without risking the scrutiny of law enforcement.   

 By January 2018, Romano and Eckerd were prepared to escalate the monetary amounts involved in the laundering activity. The first transaction of 2018 involving Romano, Eckerd and the undercover agent served as a test case to show the supposed members of the South American drug cartel that Romano and Eckerd could expeditiously launder larger sums of cash. In January 2018, the undercover agent handed Romano $100,000 in cash at a location in New Jersey.  Instead of receiving a business check in return, the undercover agent agreed to receive the money, less the standard fee, in the form of a wire transaction originating from Eckerd. 

The following month, the undercover agent met with Romano and Eckerd in Texas to engage in a second test case. The day after driving out to the site of the development project, the undercover agent turned over a backpack containing $100,000 in cash to Romano and Eckerd.  In exchange, Eckerd handed the undercover agent a check, less their standard fee for laundering the alleged narcotics proceeds.   

In addition to pleading guilty to the conspiracy to launder money charge, Romano also admitted his participation in planning a robbery of The Pawn Shop in Union, New Jersey on April 19, 2014. Romano acknowledged knowing that his conspirators in that case had access to a firearm when they committed the robbery.

In addition to the prison term, Judge Bumb sentenced Eckerd and Romano each to three years of 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, and detectives from the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Lyndsay V. Ruotolo, with the investigation leading to the sentencings.

The government is represented by Assistant U.S. Attorney Mary E. Toscano, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Thomas S. Kearney of the U.S Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – The former senior vice president of sales at Cinelli Iron & Metal Co. (CIMCO) was sentenced today to 30 months in prison for participating in a 17-year conspiracy that defrauded customers out of millions of dollars, U.S. Attorney Craig Carpenito announced.

Michael A. Valenti III, 45, of Hasbrouck Heights, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with conspiracy to commit wire fraud. Judge Wigenton imposed the sentence today in Newark federal court.

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

CIMCO, which was headquartered in Secaucus, New Jersey, purchased scrap metal for resale and operated three scrap metal recycling facilities in New Jersey. CIMCO trucks would deliver scrap metal containers to customer jobsites and remove them after they were filled. CIMCO then purportedly paid customers based on the type and net weight of the scrap material.

From 1999 through March of 2016, Valenti, Craig Cinelli, Joseph Cinelli Sr., David Barteck and others allegedly used a variety of fraudulent business practices to buy scrap metal from CIMCO’s customers for less than CIMCO should have paid. The company then resold the scrap metal at a profit.
Instead of paying the proper, agreed-upon amounts for the actual weight, members of the conspiracy used a variety of techniques to misrepresent the true weight and type of the scrap metal, including altering documents to reflect a lower weight, removing scrap metal from a haul before it was weighed and misrepresenting the types of scrap metal contained in a haul.

In addition to the prison term, Judge Wigenton sentenced Valenti to three years of supervised release. During his plea hearing, Valenti admitted that the loss caused by the conspiracy that was reasonably foreseeable to him was more than $9.5 million, but less than $25 million. Restitution will be determined at a hearing scheduled for Dec. 4, 2019.

U.S. Attorney Carpenito credited special agents with the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in New York; special agents with the U.S. Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker in New York; and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Daniel Shapiro, Chief of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

Defense counsel: Linda George Esq., Hackensack, New Jersey

TRENTON, N.J. – A former resident of Monmouth County, New Jersey, was indicted today on charges that he made threatening telephone and email communications to elected state officials, judges, law enforcement officers, and attorneys, and phoned in false bomb threats to local and state government offices, a police department, two law firms and a commercial establishment, U.S. Attorney Craig Carpenito announced today.

Eric G. Hafner, 28, formerly of Monmouth County, New Jersey, was charged by indictment with nine counts of making threating communications in interstate or foreign commerce with intent to extort, each punishable by a maximum potential penalty of 20 years in prison, and a maximum fine of $250,000. He was also charged with 18 counts of making threatening communications in interstate or foreign commerce, each punishable by a maximum potential penalty of five years in prison, and a maximum fine of $250,000. Hafner was also charged with six counts of conveying false information concerning the use of an explosive device, each punishable by a maximum potential penalty of 10 years in prison, and a maximum fine of $250,000.   

 “As charged in the Indictment, the defendant embarked on a campaign of terror directed at judges, elected officials, and members of law enforcement in Monmouth County and elsewhere,” U.S. Attorney Carpenito said. “He threatened to detonate bombs and kill and otherwise harm his victims, all in an effort to cause psychological harm to and extort hundreds of thousands of dollars from them. As a result of this federal prosecution, his serious crimes now face serious consequences.” 

“Hafner’s actions were intended to – and in fact did – create fear to numerous citizens in the Monmouth County community,” Monmouth County Prosecutor Christopher Gramiccioni said. “In addition, significant law enforcement resources were wasted in responding to these false bomb threats. Even though these threats were false, the fear and psychological trauma felt by the victims during these incidents were very real.”

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

Between July 2016 and May 2018, while residing outside the United States, Hafner allegedly communicated threats to numerous individuals located in and around Monmouth County and elsewhere. The threatening communications targeted elected officials, judges, police officers, attorneys, and their families, and included threats to injure and kill the victims. The defendant sought to extort $350,000 from some of his victims. Hafner also made false bomb threats to an elected official’s office, a county courthouse, a police department, two law firms, and a commercial establishment.

Hafner was originally charged with transmission of threatening communications in a one-count criminal complaint on Oct. 6, 2016, which remained under seal until his arrest in the Northern Mariana Islands, a U.S. Territory, on Sept. 27, 2019, where he had an initial appearance before Chief U.S. District Judge Ramona V. Manglona. Hafner had his initial appearance before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court upon his arrival in the District of New Jersey on Oct. 23, 2019. At that time, Hafner was ordered detained without bail.     

U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; detectives of the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher Gramiccioni; officers of the Monmouth County Sheriff’s Office, under the direction of Sheriff Shaun Golden; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Ocean County Sheriff’s Office, under the direction of Sheriff Michael G. Mastronardy; officers of the Bradley Beach Police Department, under the direction of Chief of Police Leonard A. Guida; officers of the Fairhaven Police Department, under the direction of Chief of Police Joseph McGovern; officers of the Aberdeen Police Department, under the direction of Chief Richard A. Derechailo; officers of the Hazlet Police Department, under the direction of Chief Phillip Meehan; officers of the Shrewsbury Police Department, under the direction of Chief Robert G. Turner; officers of the Red Bank Police Department, under the direction of Chief Darren McConnell; officers of the Freehold Township Police Department, under the direction of Chief Ernest Schriefer; officers of the Middletown Police Department, under the direction of Chief Craig R. Weber; officers of the Neptune Township Police Department, under the direction of Chief James M. Hunt, Jr.; officers of the Oceanport Police Department, under the direction of Chief Michael P. Kelly; officers of the Deal Police Department, under the direction of Chief Ronen Neuman; officers of the Manasquan Police Department, under the direction of Chief Michael Bauer;  the U.S. Park Police; N.J. Transit Police; and West Orange Police Department, with the investigation leading to today’s charges.

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

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

CAMDEN, N.J. – Three members of a drug-trafficking organization have pleaded guilty to their roles in distributing significant amounts of drugs in Camden, U.S. Attorney Craig Carpenito announced.

Ramon Velez, 43, of Camden, pleaded guilty today to an information charging one count of conspiracy to distribute heroin and fentanyl; Naeem Sadler, 19, also of Camden, pleaded guilty today to an information charging one count of conspiracy to distribute heroin within 1,000 feet of a school; Elisa Rivera, 27, of Camden, New Jersey, pleaded guilty on Oct. 29, 2019, to an information charging one count of conspiracy to distribute heroin within 1,000 feet of a school, all before U.S. District Judge Renee Marie Bumb in Camden federal court.

Five other members of the drug-trafficking conspiracy based on the 500 block of Pine Street in Camden – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, and William Carrillo – previously have pleaded guilty in this case. The charges against 11 other defendants remain pending, and they are presumed innocent unless and until proven guilty.

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

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

The counts to which Rivera and Sadler pleaded guilty carries a maximum potential penalty of 40 years in prison, and a $2 million fine. The count to which Velez pleaded guilty carries a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing for all three defendants is scheduled for Feb. 7, 2020.

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

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

CAMDEN, N.J. – A Social Security Administration employee was sentenced today to 34 months in prison for unlawfully accessing the Social Security accounts of individuals and falsifying their records in order to steal funds for his own use, U.S. Attorney Craig Carpenito announced.

Nicholas Pao, 38, of Egg Harbor Township, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of theft of government funds and two counts of aggravated identity theft. Judge Rodriguez imposed the sentence today in Camden federal court.

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

Pao was a 10-year employee of the Social Security Administration who worked as a claims technical expert in the Social Security Administration’s office in Egg Harbor Township.   Pao was responsible for determining eligibility and payment amounts, processing difficult cases, assisting in case reviews, and making special payment approvals. From December 2014 to July 2018, Pao used his credentials to access the confidential records of several individuals without their knowledge or authority. He altered their records and made fraudulent changes that caused the Social Security Administration to issue benefits to these individuals. Pao would then intercept these benefits, which were issued by way of a Direct Express account and credit card. Pao depleted the funds issued on the Direct Express accounts without the knowledge or consent of the individuals. Pao stole approximately $100,000 in Social Security funds.

In addition to the prison term, Judge Rodriguez sentenced Pao to three years of supervised release and ordered him to make full restitution to the SSA.

U.S. Attorney Carpenito credited special agents of the Office of the Inspector General, Social Security Administration, under the direction of John F. Grasso with the investigation.

The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney’s Office Criminal Division in Camden.

A Keasbey, New Jersey, tax return preparer was sentenced to 29 months in prison today for filing false tax returns on behalf of clients and failing to file his own tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Craig Carpenito of the District of New Jersey.

According to documents filed in this case and statements made in court, David Patterson, 38, owned and operated D&D Tax Service LLC, a tax preparation business.  Through the firm, he prepared fraudulent tax returns for tax year 2012 in which he knowingly falsified his clients’ medical and dental expenses, gifts to charity, and unreimbursed employee expenses.  At times, he took portions of his clients’ tax refunds and deposited them without authorization into bank accounts he maintained or controlled.  Patterson also failed to file individual income tax returns for himself, and to pay federal income taxes, for 2013 through 2015. 

In addition to the prison term, Judge Salas sentenced Patterson to one year of supervised release and ordered restitution of $290,321 to be paid to the IRS.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Carpenito thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Eric Powers and Assistant U.S. Attorney Jonathan M. Peck, who prosecuted this case.

Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.

NEWARK, N.J. – A Keasbey, New Jersey, tax preparer was sentenced today to 29 months in prison for filing a false tax return for two clients and failing to file a tax return, U.S. Attorney Craig Carpenito announced.

David Patterson, 38, previously pleaded before U.S. District Judge Esther Salas to one count of aiding and assisting in the preparation of a false tax return and one count of willfully failing to file his own tax return. Judge Salas imposed the sentence today in Newark federal court.

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

Patterson owned and operated D&D Tax Service LLC, a tax preparation business located in Keasbey. He admitted to preparing a fraudulent tax return on behalf of two clients for tax year 2012 in which he knowingly falsified the clients’ medical and dental expenses, gifts to charity, and unreimbursed employee expenses. Patterson admitted that at times he split portions of his clients’ tax refunds into bank accounts he maintained or controlled. He also admitted that he failed to file an individual income tax return for himself, and pay federal income taxes, for calendar year 2013.

In addition to the prison term, Judge Salas sentenced Patterson to one year of supervised release and ordered him to pay restitution of $290,321 to the United States. He is also not permitted to run a tax preparation business until the end of his supervised release.

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

The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office and Trial Attorney Eric B. Powers of the Department of Justice Tax Division.

Defense counsel: James Friedman Esq., New Brunswick, New Jersey

NEWARK – A Plainfield, New Jersey, tax preparer was sentenced today to 30 months in prison for conspiring to defraud the IRS, falsifying his tax returns, and witness tampering, U.S. Attorney Craig Carpenito announced.

Samuel Davis Jr., 54, previously pleaded guilty before U.S. District Court Judge Susan D. Wigenton to a three-count information charging him with conspiring to defraud the IRS, filing false personal tax returns, and witness tampering. Judge Wigenton imposed the sentence today in Newark federal court.

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

Davis was an active detective sergeant in the N.J. State Police while also owning and operating a tax preparation business, Get Organized Tax & Accounting (GOTA). He retired from the state police in 2016 after 28 years. For tax years 2011 to 2016, Davis and his conspirator, Kyna Felder-Ruiz, prepared false individual income tax returns for various GOTA clients. They used a number of fraudulent practices, including falsely claiming deductions, fabricating educational credits, and submitting fake receipts, in order to obtain refunds for their clients in amounts substantially greater than those to which the taxpayers were entitled.

For tax years 2012 through 2014, Davis also filed false personal income tax returns by underreporting business income that he derived from GOTA, defrauding the IRS of tens of thousands of dollars in taxes.

In October 2018, Davis discovered that his son had received a subpoena to appear and testify before a grand jury, and he attempted to persuade his son to provide false testimony.

In addition to the prison term, Judge Wigenton sentenced Davis to three years of supervised release, fined him $10,000 and ordered restitution of $71,558 to the IRS. Felder-Ruiz previously pleaded guilty and is scheduled to be sentenced Oct. 31, 2019, for her role in the scheme.

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

The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s Organized Crime and Drug Enforcement Task Force Unit.

Anyone who believes they may have been a victim of this defendant can contact IRS-Criminal Investigation at (732) 761-6439.

Defense counsel; Thomas R. Ashley Esq., Newark

NEWARK, N.J. – A Hudson County, New Jersey, man today admitted participating in a scheme that involved defrauding financial institution customers of almost half a million dollars, U.S. Attorney Craig Carpenito announced.

Ramon Herrera, 36, of Union City, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of wire fraud.

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

Between May 2015 and January 2018, Herrera used his position as a registered broker and financial advisor at a clearing services company associated with “Financial Institution-1” to meet and learn confidential information about Financial Institution-1 customers in the Hudson County area, for whom he was ostensibly providing advice and brokerage services. Herrera caused the Financial Institution-1 customers he was advising, many of whom were elderly and/or communicated with Herrera in Spanish, to sign blank withdrawal slips, which Herrera then completed and presented to bank tellers at Financial Institution-1 branches. Herrera directed the bank tellers to withdraw the money from the customers’ accounts in the form of cashier’s checks, which enabled Herrera to then apply the checks against the various personal accounts that Herrara and a family member maintained at Financial Institution-1. In total, Herrera stole more than $450,000 from approximately 40 Financial Instiution-1 customers. He used the stolen funds for his own purposes without the customers’ knowledge or authorization.

The conspiracy to commit wire fraud charge carries a maximum potential penalty of 20 years in prison and a fine equal to the greater of $250,000 or twice the gain derived from or loss caused by the offense. Sentencing is scheduled for Feb. 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 Assistant U.S. Attorney Jennifer S. Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

Defense counsel: Jason LeBoeuf Esq., Livingston, New Jersey

NEWARK, N.J. – The former corporate secretary and director of corporate law at a global technology company headquartered in Cupertino, California, was indicted today for orchestrating a five-year insider trading scheme, U.S. Attorney Craig Carpenito announced.

Gene Levoff, 45, of San Carlos, California, was indicted on six counts of securities fraud and six counts of wire fraud. Levoff was initially charged by complaint in February 2019.

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

Between February 2011 and April 2016, Levoff – the top corporate attorney at “Company-1,” who also served as the company’s assistant secretary and corporate secretary –allegedly misappropriated material, nonpublic information about Company-1’s financial results and then executed trades involving the company’s stock. This scheme to defraud Company-1 and its shareholders allowed Levoff to realize profits of approximately $227,000 on certain trades and to avoid losses of approximately $377,000 on others.

Levoff used his position as a member and co-chairman of Company-1’s Disclosure Committee – which reviewed and discussed the company’s draft quarterly and yearly earnings materials and periodic U.S. Securities and Exchange Commission (SEC) filings before they were disclosed to the public – to obtain material, nonpublic financial information about Company-1. Levoff used this confidential information to buy and sell stock in Company-1 ahead of its quarterly earnings announcements. When Levoff discovered that Company-1 had posted strong revenue and net profit for a given financial quarter, he purchased large quantities of stock, which he later sold for a profit once the market reacted to the news. When he learned that Company-1 had posted lower-than-anticipated revenue and net profit, he sold large quantities of Company-1 stock, avoiding significant losses.

Levoff was subject to Company-1’s regular quarterly “blackout periods,” which prohibited individuals who had access to material nonpublic information from engaging in trades until a certain period after the company disclosed its financial results to the public. Levoff ignored this restriction, as well as the company’s broader Insider Trading Policy – which he was responsible for enforcing – and instead repeatedly executed trades based on material, nonpublic information without Company-1’s knowledge or authorization. On several occasions, Levoff executed trades within a blackout period after notifying other individuals subject to the restriction that they were prohibited from buying or selling Company-1 stock until the blackout period terminated.

The securities fraud counts carry a maximum penalty of 20 years in prison and a $5 million fine. The wire fraud counts carry a maximum penalty of 20 years and a fine of the greater of $250,000 or twice the gain derived from or loss caused by the offense.

The U.S. Securities and Exchange Commission (SEC) previously filed a civil complaint against Levoff based on the same conduct.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge ­­­­­­Gregory W. Ehrie in Newark, with the investigation. He also thanked the SEC, for the assistance provided by its Enforcement Division, and Company-1, which cooperated with law enforcement over the course of the investigation.

The government is represented by Senior Trial Counsel Courtney A. Howard of the Economic Crimes Unit and Assistant U.S. Attorney Daniel V. Shapiro, Chief of the 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.

CAMDEN, N.J. – A Camden man was sentenced today to 108 months in prison for robbing seven businesses and banks in West Berlin, Cinnaminson, Maple Shade, Mount Holly, Haddon Township, and Voorhees, New Jersey, U.S. Attorney Craig Carpenito announced.

William Carter, 51, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of Hobbs Act robbery. Judge Bumb imposed the sentence today in Camden federal court.

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

From Dec. 12, 2016, through March 10, 2017, Carter planned, coordinated, and recruited accomplices to assist him in robbing seven businesses and banks in Camden and Burlington Counties. In each robbery, Carter selected his accomplices, instructed them on their roles, directed them to wear masks and wield firearms, and served as the getaway driver.

In addition to the prison term, Judge Bumb sentenced Carter to three years of supervised release and ordered him to pay restitution of $99,187.

Several of Carter’s associates have already been sentenced as part of this case. Tammond Hill, 21, of Philadelphia, Pennsylvania, previously pleaded guilty and was sentenced to 115 months in prison. Rabon Watkins, 23, of Camden, previously pleaded guilty and was sentenced to 92 months in prison. Steven Cooley, 29, of Woodlynne, New Jersey, previously pleaded guilty and was sentenced to 60 months in prison.

U.S. Attorney Carpenito credited special agents of the ATF Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s sentencing. He also thanked the ATF Philadelphia Division, under the direction of Special Agent in Charge Don Robinson; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Berlin Township Police Department, under the direction of Chief Leonard Check; the Haddon Township Police Department, under the direction of Chief Mark Cavallo; the Voorhees Township Police Department, under the direction of Chief Louis Bordi, the Maple Shade Police Department, under the direction of Chief Christopher J. Fletcher; the Mount Holly Police Department, under the direction of Chief Richard Spitler; and the Cinnaminson Police Department, under the direction of Chief Rich Calabrese, for their assistance in this case.

The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the United States Attorney’s Office Criminal Division in Camden.

Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden

NEWARK, N.J. – The minority owner of Cinelli Iron & Metal Co. (CIMCO) was sentenced today to 33 months in prison for operating a 17-year conspiracy that defrauded customers out of millions of dollars, U.S. Attorney Craig Carpenito announced.

Craig Cinelli, 49, of Allendale, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Count One of an indictment that charged him with conspiracy to commit wire fraud. Judge Wigenton imposed the sentence today in Newark federal court.

David Barteck, 53, of Wood Ridge, New Jersey, the former chief financial officer of CIMCO, and Michael A. Valenti III, 43, of Hasbrouck Heights, New Jersey, the former senior vice president of sales at CIMCO, each previously pleaded guilty before Judge Wigenton to participating in the conspiracy. Barteck is scheduled to be sentenced Nov. 6, 2019, and is scheduled to be sentenced Nov. 4, 2019.

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

CIMCO, which was headquartered in Secaucus, New Jersey, purchased scrap metal for resale and operated three scrap metal recycling facilities in New Jersey. CIMCO trucks would deliver scrap metal containers to customer jobsites and remove them after they were filled. CIMCO then purportedly paid customers based on the type and net weight of the scrap material.

From 1999 through March of 2016, Craig Cinelli, his brother, Joseph Cinelli Sr., Barteck, Valenti, and others allegedly used a variety of fraudulent business practices to buy scrap metal from CIMCO’s customers for less than CIMCO should have paid. The company then resold the scrap metal at a profit.

Instead of paying the proper, agreed-upon amounts for the actual weight, members of the conspiracy used a variety of techniques to misrepresent the true weight and type of the scrap metal, including altering documents to reflect a lower weight, removing scrap metal from a haul before it was weighed and misrepresenting the types of scrap metal contained in a haul. Cinelli admitted that the loss caused by the conspiracy that was reasonably foreseeable to him was more than $9.5 million, but less than $25 million.

In addition to the prison term, Judge Wigenton sentenced Cinelli to three years of supervised release. Restitution will be determined at a later date.

Charges against Joseph Cinelli Sr. were dismissed following his death in 2018.

U.S. Attorney Carpenito credited special agents with the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in New York; special agents with the U.S. Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker in New York; and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.

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

Defense counsel: Ray Flood Esq., Hackensack, New Jersey

John Gay and Mary Toscano from U.S. Attorney’s Office Also Recognized by City of Newark for Roles in Formation and Leadership of Newark Violent Crime Initiative

NEWARK, N.J. – Attorney General William P. Barr recognized 295 department employees for their distinguished public service today at the 67th Annual Attorney General’s Awards Ceremony. Sixty-two other individuals outside of the department were also honored for their work. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people.

“Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America,” Attorney General Barr said. “As we reflect on the contributions of each of the 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”

“I am extremely proud that our law enforcement partners have been chosen for these prestigious awards,” U.S. Attorney Carpenito said. “The Violent Crime Initiative has proven to be effective in making the streets of Newark safer for all citizens, and it works because of the tremendous cooperation among city, state, county and federal law enforcement.”

In the District of New Jersey, six members of state and local law enforcement won the William French Smith Award for Outstanding Contributions to Cooperative Law Enforcement – the only such award presented by the Attorney General this year. This award recognizes State and local law enforcement officials who have made significant contributions to cooperative law enforcement endeavors. New Jersey’s recipients were recognized for their contributions to the Violent Crime Initiative (VCI) to Improve Public Safety in Newark.

The recipients are:

Sgt. Christopher J. Bozios Jr., Bureau of Narcotics, Essex County Sheriff’s Office; Detective Sgt. John M. Marcelli, Professional Standards Bureau, Essex County Prosecutor’s Office; Lt. R. Craig Costello, Regional Operations Intelligence Center, N.J. State Police; Sgt. Matthew J. Testa, Special Operations Group, N.J. Parole Board; and Capt. William Mehalaris and Anthony S. Venancio, both of the Major Crimes Division, Newark Department of Public Safety, Police Division.

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 as a community-wide cooperative effort aimed at combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate, share intelligence, and pool resources to prosecute violent offenders who endanger the safety of the community. VCI has not only improved the community, but has strengthened relationships among federal, state, county and city agencies as a result of the trust developed among the participants.

The VCI’s community-wide, collaborative approach has had a powerful impact on improving the community, which is experiencing a sharp decrease in overall crime, in general, and violent crime, in particular. Due in part to the VCI’s concentrated efforts, overall crime in Newark has been reduced 15 percent over the past year. The VCI, and other measures, have had an even greater impact on violent crime, with a 30 percent reduction in shooting victims between 2017 and 2018. In 2019, the number of shooting victims and shooting incidents have again declined significantly, with a reduction of 39 percent compared to the same period in 2018. Newark officials said there have been 30 fewer murders, 150 fewer shootings and 500 fewer robberies. Overall, according to the Newark Department of Public Safety, there have been 800 fewer victims of violent crime since the VCI’s creation.

Also today, Newark Mayor Ras J. Baraka issued an official proclamation honoring Assistant United States Attorneys John Gay, Chief of the Criminal Division, and Mary Toscano, Deputy Chief of the Criminal Division, for their contributions and founding and leading the VCI to reduce violent crime. Mayor Baraka’s proclamations stated that the VCI “has had a dramatic impact on crime in Newark,” and credited Gay and Toscano for their work “to make Newark a safer, more empowered, and more equitable City.”

“We commend the hard work of the men and women of the Police Division,” Newark Department of Public Safety Director Anthony F. Ambrose said. “We also thank the U.S. Attorney’s Office for their dedication and commitment in successfully prosecuting these cases, which has definitely made Newark a safer place. The beneficiaries are the members of the public, who have seen 150 fewer people shot and 30 fewer funerals.”

“We congratulate today’s recipients for this well-deserved and hard-earned recognition,” Newark FBI Special Agent in Charge Gregory W. Ehrie. “We are proud to work alongside them toward the common goal of reducing violent crime in Newark and improving the quality of life for our neighbors.”

“I congratulate all my state and federal partners in being recognized for their hard work and dedication in combatting drug trafficking violence,” DEA Special Agent in Charge Susan A. Gibson said. “I am so proud of the cooperative efforts and their unrelenting dedication to arrest those who prey on the innocent.”

“The Newark Violent Crime Initiative (VCI) has been a major component for success in addressing the most violent offenders and groups that wreak havoc in our communities,” ATF Special Agent in Charge Charlie J. Patterson said. “ATF is proud to serve with our partner organizations, in doing the meaningful and impactful work of making our communities safer, one case at a time. On behalf of the ATF Newark Field Division, I extend my gratitude to the Newark VCI participating agencies, especially to our local and State counterparts who are often the catalyst to the VCI’s overall success. ATF remains steadfast in our support of the Newark VCI, and we look forward to continued success in combatting violent crime in and around Newark.”

“Information sharing and collaboration are the keys to reducing violent crime in our state and the Newark Violent Crime Initiative stands out as a model of what we can accomplish when we work together,” New Jersey Attorney General Gurbir S. Grewal said. “I am proud to work with United States Attorney Craig Carpenito, Newark Public Safety Director Anthony Ambrose, Newark Police Chief Darnell Henry, and Colonel Patrick Callahan of the NJ State Police on this groundbreaking effort to improve public safety. I congratulate the dedicated men and women who are on the front lines of this initiative and are being recognized today. With this award, I am certain that the Newark Violent Crime Initiative will become a national model for law enforcement agencies across the country to follow.”

“The New Jersey State Police is proud to be a part of a cooperative partnership of dedicated individuals determined to improve the quality of life for the residents of the City of Newark by targeting recidivist, violent offenders and removing them from the streets,” Col. Patrick Callahan, superintendent of the state police, said. “The members of the Newark Violent Crime Initiative bring great credit and distinction to their agencies for their outstanding efforts, and although they are law enforcement professionals who perform their duties seeking no praise, it is nevertheless a great honor for them to be recognized at the 67th Annual Attorney General's Award Ceremony.”

NEWARK, N.J. – A Montville, New Jersey, man today admitted his role in a sophisticated computer hacking scheme that targeted two companies in New Jersey and stole their data, U.S. Attorney Craig Carpenito announced.

Ankur Agarwal, 45, of Montville, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with two counts of obtaining information from computers and one count of aggravated identity theft.

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

Agarwal admitted that beginning in February 2017 he physically trespassed onto a company’s premises in New Jersey (Company One) and illegally installed hardware key-logger devices onto the company’s computers. The key-logger devices covertly recorded the keystrokes of the company’s employees and provided Agarwal with their usernames and passwords. Agarwal also surreptitiously installed his personal computer and a hard drive onto the company’s computer network. Using the fraudulently obtained logon credentials, Agarwal hacked into the company’s computer network and targeted various employees, including employees developing an emerging technology. Agarwal admitted that he stole, transferred, and exfiltrated Company One’s data and information, including its emerging technology. Agarwal also created a computer malicious code, which he installed onto the company’s computer systems and used to steal and transfer the date to himself.

Agarwal also admitted that he hacked into, targeted, and stole data and information from a second company in New Jersey (Company Two). Using the same general scheme, Agarwal physically trespassed onto Company Two’s premises, illegally installed hardware key-logger devices onto the company’s computers, installed his personal computer and a hard drive onto the company’s computer network, and stole, transferred, and exfiltrated Company Two’s data and information, including an emerging technology that Company Two was developing.

Agarwal also obtained unauthorized access into an employee’s computer system and then fraudulently created an access badge for himself. This fraudulently obtained access badge, bearing another individual’s name, allowed Agarwal to physically trespass onto Company Two’s premises.

The charges of obtaining information from computers from Company One and Company Two each carry a maximum potential penalty of five years in prison. The charge of aggravated identity theft carries a mandatory term of two years in prison, which must run consecutively to the other term of imprisonment imposed. All three charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense.

Agarwal also consented to a forfeiture judgment requiring him to forfeit numerous computers, storage devices, and related equipment. Sentencing is scheduled for Jan. 28, 2019.

U.S. Attorney Carpenito credited special agents of the FBI’s Cyber Division, 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. Attorneys Matthew Feldman Nikic and Anthony Moscato, Chief of the National Security Unit, in Newark.

Defense counsel: Samuel M. Braverman Esq., New York

NEWARK, N.J. – A Middlesex County, New Jersey, woman today admitted to orchestrating a $1.7 million bank fraud scheme that involved writing fraudulent business checks, U.S. Attorney Craig Carpenito announced.

Tammy L. Martinez, 46, of South Amboy pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging her with one count of bank fraud.

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

From January 2014 through March 2019, Martinez served as an office manager and bookkeeper for a New Jersey based company. Beginning in January of 2014, Martinez used her position at the company to issue fraudulent checks made payable to Martinez or cash and forged the signature of her manager on fraudulent company checks. Martinez converted the fraudulent company checks into cash at bank branches in New Jersey, resulting in more than $1.7 million in losses to the company.

The bank fraud count carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Feb. 11, 2020.

U.S. Attorney Carpenito credited special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney in Newark, and officers of the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose, with the investigation leading to today’s guilty plea.

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

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

NEWARK, N.J. – A Paterson, New Jersey, man was sentenced today to 300 months in prison for the distribution of kilogram quantities of heroin, U.S. Attorney Craig Carpenito announced.

Reinaldo Rodriguez, 30, a/k/a “Memo,” and “Killa,” was convicted in April 2019 of conspiracy to distribute a kilogram or more of heroin and possession with the intent to distribute heroin following a four-day trial before U.S. District Judge Susan D. Wigenton, who imposed the sentence today in Newark federal court.

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

From June 2015 through April 20, 2016, Rodriguez participated in a conspiracy to distribute heroin to street-level drug dealers in the Paterson area. The conspirators obtained their heroin from a supplier in Bronx, New York, where it was packaged and stamped “Goosebumps,” “Transformers,” “Wendy’s” and “New Jack City,” designating the source. Law enforcement officials conducted surveillance while Rodriguez delivered stamped “bricks” of heroin to a confidential source. Rodriguez also was heard discussing drug trafficking on court-authorized wiretaps.

In addition to the prison term, Judge Wigenton sentenced Rodriguez to six years of supervised release.

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 Paterson Police Department, under the direction of Police Director Jerry Speziale and Police Chief Troy Oswald, with the investigation leading to today’s sentencing.

This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies dedicated to identifying and dismantling the most serious drug trafficking, weapons trafficking and money laundering organizations.

The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the Cyber Crimes Unit and Assistant U.S. Attorney Heather Suchorsky of the Organized Crime/Gangs Unit of the U.S. Attorney’s Office in Newark.

Defense counsel: John P. McGovern Esq. and Christopher Dunn Esq., Newark

NEWARK, N.J. – A former research technician and scientist for a worldwide consumer products company that researched, developed, designed, manufactured, marketed, and sold oral care consumer products today admitted stealing toothpaste formulas from the company, U.S. Attorney Craig Carpenito announced.

Muamer Reci, 57, of Haskell, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit wire fraud.

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

In August 2012, two individuals established a consumer hygiene and cleaning products company, Reci & Sons, which, in November 2015, established a subsidiary, Reci Enterprises, in Macedonia. Reci never disclosed the existence of Reci & Sons or Reci Enterprises to his employer (Victim 1).

A document dated July 31, 2016, and titled “Project Eurodent” was recovered from Reci’s work email account. The document (the Eurodent Business Plan) described a plan for Reci Enterprises to develop, manufacture, and sell a toothpaste named Eurodent. The Eurodent Business Plan listed as one of its objectives to “Launch Reci Enterprises research labs, and manufacturing complex to the public by fourth quarter of Year 2017.” The Eurodent Business Plan valued the business at roughly $2 million.

As the anticipated construction date for manufacturing facility approached, Reci sent several emails to an individual at Reci & Sons attaching Victim 1’s proprietary toothpaste formulas for existing products and an unreleased toothpaste product, as well as proprietary laboratory procedures for Victim 1’s products. For example, on Aug. 9, 2017, Reci sent an email to “Person 1” stating: “[p]rint this [sic] formulas and file them.” Attached to the email were proprietary toothpaste formulas belonging to Victim 1, including formulas for a dry mouth toothpaste that Victim 1 had not yet launched and a children’s toothpaste marketed by Victim 1. The email also attached the formula for Reci Enterprises’ Eurodent toothpaste, which contained proprietary signature features of an existing Victim 1 product.

The wire fraud count with which Reci is charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 10, 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 Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

Defense counsel: Ronald Ricci Esq., Totowa, New Jersey

TRENTON, N.J. – The owner of several retail pharmacies, including a pharmacy in Piscataway, New Jersey, was convicted today on charges he conspired to defraud the IRS, U.S. Attorney Craig Carpenito announced.

Rao Desu, 52, of Warren, New Jersey, was convicted on all counts of the indictment against him: two counts of conspiracy to defraud the IRS and four counts of aiding and assisting in subscribing to false tax returns, following a two-week trial before U.S. District Judge Michael A. Shipp in Trenton federal court. The jury deliberated less than four hours before returning the guilty verdicts.

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

Rao Desu was a 50 percent owner in DVS Pharma Inc., (d/b/a Heights Pharmacy), a retail pharmacy in Piscataway. Darshna Desai was the other 50 percent owner and worked as the lead pharmacist. From April 2004 through November 2013, Desu conspired with Desai to conceal from the IRS the cash income that was earned by the pharmacy as part of a cash-skimming scheme. In particular, Desu’s relative, who assisted at times in the operation of several of Desu’s businesses, instructed Desai to separate the cash earned by Heights Pharmacy from other income received, remove a portion of the cash that was paid to Desai as cash salary, and then split the remainder in two, with one portion given to Desu and the other portion given to Desai.

Desu was also a 50 percent owner of Manvihar Pharmacy (d/b/a Arthur Avenue Pharmacy) in Bronx, New York. The other 50 percent owner in Arthur Avenue Pharmacy worked at Arthur Avenue Pharmacy as the lead pharmacist. From June 2005 through November 2013, Desu conspired with the co-owner to conceal from the IRS the cash income that was earned by the pharmacy as part of a separate cash-skimming scheme. Specifically, Desu instructed the co-owner to separate the cash earned by Arthur Avenue Pharmacy from other income received, and to split the cash in two, giving half to Desu and giving half to the co-owner.

For tax years 2004 through 2012 Desu and Desai filed false corporate income tax returns, IRS Forms 1120S, for Heights Pharmacy, which failed to disclose the cash that Desai received in salary and that was split between Desu and Desai. From tax year 2005 through 2012, Desu and the co-owner filed false IRS Forms 1120S for Arthur Avenue Pharmacy, which failed to disclose the cash that was split between Desu and co-owner. Accordingly, for tax years 2004 through 2012, Desu filed false personal income tax returns, IRS Forms 1040, which failed to disclose the cash that Desu received from both Heights Pharmacy and Arthur Avenue Pharmacy.

Desai pleaded guilty to conspiracy to defraud the IRS in 2014. Her sentencing is scheduled for Feb. 26, 2020.

Conspiracy to defraud the IRS carries a maximum potential penalty of five years in prison and a $250,000 fine. Assisting and aiding in subscribing to false tax returns carries a maximum potential penalty of three years in prison and a $100,000 fine. Desu’s sentencing will be scheduled at a later date.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty verdicts. He also thanked special agents of the U.S. Department of Justice - Office of the Inspector General, under the direction of Special Agent in Charge Guido Modano, for their role in the investigation.

The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Elaine K. Lou of the Special Prosecutions Division.

Defense counsel: Jay Nanavati Esq., and Mayling C. Blanco Esq., New York

Schools in District of New Jersey Awarded $4.29 Million in Funding

NEWARK, N.J. – The U.S. Department of Justice today announced it has awarded more than $85.3 million to bolster school security – including funding to educate and train students and faculty – and support first responders who arrive on the scene of a school shooting or other violent incident.

“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,” Attorney General William P. Barr said. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”

“This funding will enable the state and local educators and law enforcement personnel develop programs to address the problem of violence in our schools,” U.S. Attorney Craig Carpenito, District of New Jersey, said. “In addition to helping prepare us to respond to these incidents, the funding will empower law enforcement to develop tools to identify potential threats and intervene before violence occurs.”

The grants award more than $4.29 million in funding to prevent violence in schools in the District of New Jersey. President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.

The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:

• Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools; • Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures; • Train law enforcement to help deter student violence against others and themselves; • Improve notification to first responders through implementation of technology that expedites emergency notifications; • Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats; • Train school officials to intervene when mentally ill individuals threaten school safety; and
• Provide training and technical assistance to schools and other awardees in helping implement these programs.

For more details about these individual award programs, including the awards in the District of New Jersey, visit: Fact Sheet.

About the Office of Justice Programs:

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, 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 justice system. More information about OJP and its components can be found at OJP.

About the Office of Community Oriented Policing Services:

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit COPS.

CAMDEN, N.J. – A member of a drug-trafficking organization has admitted his role in distributing significant amounts of illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.

William Carrillo, 44, of Camden, pleaded guilty Oct. 17, 2019, before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute heroin, crack cocaine and cocaine.

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

An investigation led by the FBI used surveillance tactics, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover Carrillo’s role in the operations of a drug-trafficking organization based on the 500 block of Pine Street in Camden.

The count to which Carrillo pleaded guilty carries a mandatory penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing is scheduled for Jan. 21, 2020.

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

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

Four other members of the drug-trafficking conspiracy – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, and Waldemar Garcia – previously have pleaded guilty in this case. Charges remain pending against 14 other defendants; they are presumed innocent unless and until proven guilty.

Defense counsel: Megan J. Davies Esq., Cherry Hill, New Jersey

Dozens of Minor Victims who were Being Actively Abused by Users of Site Rescued

WASHINGTON, D.C. – Jong Woo Son, 23, a South Korean national, was indicted by a federal grand jury in the District of Columbia for his operation of Welcome To Video, the largest child sexual exploitation market by volume of content. The nine-count indictment was unsealed today along with a parallel civil forfeiture action. Son has also been charged and convicted in South Korea and is currently in custody serving his sentence in South Korea. An additional 337 site users residing in Alabama, Arkansas, California, Connecticut, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Virginia, Washington State and Washington, D.C. as well as the United Kingdom, South Korea, Germany, Saudi Arabia, the United Arab Emirates, the Czech Republic, Canada, Ireland, Spain, Brazil and Australia have been arrested and charged.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Chief Don Fort of IRS Criminal Investigation (IRS-CI) and Acting Executive Associate Director Alysa Erichs of U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI), made the announcement.

“Darknet sites that profit from the sexual exploitation of children are among the most vile and reprehensible forms of criminal behavior,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This Administration will not allow child predators to use lawless online spaces as a shield. Today’s announcement demonstrates that the Department of Justice remains firmly committed to working closely with our partners in South Korea and around the world to rescue child victims and bring to justice the perpetrators of these abhorrent crimes.”

“Children around the world are safer because of the actions taken by U.S. and foreign law enforcement to prosecute this case and recover funds for victims,” said U.S. Attorney Jessie K. Liu. “We will continue to pursue such criminals on and off the darknet in the United States and abroad, to ensure they receive the punishment their terrible crimes deserve.”

“Through the sophisticated tracing of bitcoin transactions, IRS-CI special agents were able to determine the location of the Darknet server, identify the administrator of the website and ultimately track down the website server’s physical location in South Korea,” said IRS-CI Chief Don Fort. “This largescale criminal enterprise that endangered the safety of children around the world is no more. Regardless of the illicit scheme, and whether the proceeds are virtual or tangible, we will continue to work with our federal and international partners to track down these disgusting organizations and bring them to justice.”

“Children are our most vulnerable population, and crimes such as these are unthinkable,” said HSI Acting Executive Associate Director Alysa Erichs. “Sadly, advances in technology have enabled child predators to hide behind the dark web and cryptocurrency to further their criminal activity. However, today’s indictment sends a strong message to criminals that no matter how sophisticated the technology or how widespread the network, child exploitation will not be tolerated in the United States. Our entire justice system will stop at nothing to prevent these heinous crimes, safeguard our children, and bring justice to all.”

According to the indictment, on March 5, 2018, agents from the IRS-CI, HSI, National Crime Agency in the United Kingdom, and Korean National Police in South Korea arrested Son and seized the server that he used to operate a Darknet market that exclusively advertised child sexual exploitation videos available for download by members of the site. The operation resulted in the seizure of approximately eight terabytes of child sexual exploitation videos, which is one of the largest seizures of its kind. The images, which are currently being analyzed by the National Center for Missing and Exploited Children (NCMEC), contained over 250,000 unique videos, and 45 percent of the videos currently analyzed contain new images that have not been previously known to exist.

Welcome To Video offered these videos for sale using the cryptocurrency bitcoin. Typically, sites of this kind give users a forum to trade in these depictions. This Darknet website is among the first of its kind to monetize child exploitation videos using bitcoin. In fact, the site itself boasted over one million downloads of child exploitation videos by users. Each user received a unique bitcoin address when the user created an account on the website. An analysis of the server revealed that the website had more than one million bitcoin addresses, signifying that the website had capacity for at least one million users.

The agencies have shared data from the seized server with law enforcement around the world to assist in identifying and prosecuting customers of the site. This has resulted in leads sent to 38 countries and yielded arrests of 337 subjects around the world. The operation has resulted in searches of residences and businesses of approximately 92 individuals in the United States. Notably, the operation is responsible for the rescue of at least 23 minor victims residing in the United States, Spain and the United Kingdom, who were being actively abused by the users of the site.
In the Washington, D.C.-metropolitan area, the operation has led to the execution of five search warrants and eight arrests of individuals who both conspired with the administrator of the site and were themselves, users of the website. Two users of the Darknet market committed suicide subsequent to the execution of search warrants.

Among the sites users charged are:

• Andrew C. Chu, 28, of Garwood, New Jersey, was arrested and charged with receipt of child pornography. Those charges remain pending; • Nader Hamdi Ahmed, 29 of Jersey City, New Jersey, was arrested in the District of New Jersey, for sexual exploitation or other abuse of children. Ahmed pleaded guilty to an information charging him with one count of distribution of child pornography. He was sentenced Oct. 1, 2019, to 78 months in prison; • Charles Wunderlich, 34, of Hot Springs, California, was charged in the District of Columbia with conspiracy to distribute child pornography; • Brian James LaPrath, 34, of San Diego, California, was arrested in the District of Columbia, for international money laundering; and was sentenced to serve 18 months in prison followed by three years of supervised release; • Ernest Wagner, 70, of Federal Way, Washington, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography; • Vincent Galarzo, 28, of Glendale, New York, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography; • Michael Ezeagbor, 22, of Pflugerville, Texas, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography; • Nicholas Stengel, 45, of Washington, D.C., pleaded guilty to receipt of child pornography and money laundering and was sentenced to serve 15 years in prison followed by a lifetime of supervised release; • Eryk Mark Chamberlin, 25, of Worcester, Massachusetts, pleaded guilty to possession of child pornography and is pending sentencing; • Jairo Flores, 30, of Cambridge, Massachusetts, pleaded guilty in the District of Massachusetts to receipt and possession of child pornography and was sentenced to serve five years in prison followed by five years of supervised release; • Billy Penaloza, 29, of Dorchester, Massachusetts, pleaded guilty in the District of Massachusetts to possession and receipt of child pornography. His sentencing is scheduled for Oct. 22, 2019; • Michael Armstrong, 35, of Randolph, Massachusetts, pleaded guilty in the District of Massachusetts, to receipt and possession of child pornography. He was sentenced to serve five years in prison followed by five years of supervised release. Restitution will be determined at a future date; • Al Ramadhanu Soedomo, 28, of Lynn, Massachusetts, pleaded guilty to possession of child pornography and was sentenced in the District of Massachusetts (Boston), to serve 12 months and one day followed by five years of supervised release; • Phillip Sungmin Hong, 24, of Sharon, Massachusetts, pleaded guilty in the District of Massachusetts (Boston), to receipt and possession of child pornography and is pending sentencing; • Eliseo Arteaga Jr., 28, of Mesquite, Texas, pleaded guilty in the Northern District of Texas to possession of prepubescent child pornography. He is pending sentencing; • Richard Nikolai Gratkowski, 40, of San Antonio, Texas, a former HSI special agent, was arrested in the Western District of Texas. Gratkowski pleaded guilty to the indictment charging one count of receipt of child pornography and one count of access with intent to view child pornography. Gratkowski was sentenced to serve 70 months in prison followed by 10 years of supervised release, and ordered to pay $35,000 in restitution to seven victims and a $10,000 assessment; • Paul Casey Whipple, 35, of Hondo, Texas, a U.S. Border Patrol Agent, was arrested in the Western District of Texas, on charges of sexual exploitation of children/minors, production, distribution, and possession of child pornography. Whipple remains in custody awaiting trial in San Antonio; • Michael Lawson, 36, of Midland, Georgia, was arrested in the Middle District of Georgia on charges of attempted sexual exploitation of children and possession of child pornography. He was sentenced to serve 121 months in prison followed by 10 years of supervised release following his plea to a superseding information charging him with one count of receipt of child pornography; • Kevin Christopher Eagan, 39, of Brookhaven, Georgia, pleaded guilty to possession of child pornography in the Northern District of Georgia; • Casey Santioius Head, 37, of Griffin, Georgia, was indicted in the Northern District of Georgia for distribution, receipt, and possession of child pornography; • Jeffrey Lee Harris, 32, of Pickens, South Carolina, pleaded guilty in the District of South Carolina for producing, distributing, and possessing child pornography; • Laine Ormand Clark Jr., 27, of Conway, South Carolina, was arrested and charged in U.S. District Court in South Carolina Division for sexual possession of child pornography; • Jack R. Dove III, 38, of Lakeland, Florida, was arrested in the Middle District of Florida for knowingly receiving and possessing visual depictions of minors engaged in sexually explicit conduct; • Michael Matthew White, 39, of Miami Beach, Florida, was arrested in the Southern District of Florida for coercion and enticement; • Nikolas Bennion Bradshaw, 24, of Bountiful, Utah, was arrested in the State of Utah, and charged with five counts of sexual exploitation of a minor, and was sentenced to time served with 91 days in jail followed by probation; • Michael Don Gibbs, 37, of Holladay, Utah, was charged in the District of Utah with receipt of child pornography and possession of child pornography; • Ammar Atef H. Alahdali, 22, of Arlington, Virginia, pleaded guilty in the Eastern District of Virginia to receipt of child pornography and was sentenced to serve five years in prison and ordered to pay $3,000 in restitution; • Mark Lindsay Rohrer, 38, of West Hartford, Connecticut, pleaded guilty in the District of Connecticut to receipt of child pornography and was sentenced to serve 60 months in prison followed by five years of supervised release; • Eugene Edward Jung, 47, of San Francisco, California, was indicted in the Northern District of California on possession of child pornography and receipt of child pornography; • James Daosaeng, 25, of Springdale, Arkansas, pleaded guilty to possession of child pornography and was sentenced in the Western District of Arkansas (Fayetteville) to serve 97 months in prison followed by 20 years of supervised release; • Alex Daniel Paxton, 30, of Columbus, Ohio, was arrested and indicted in Franklin County Ohio Court of Common Pleas for pandering sexually oriented matter involving a minor; • Don Edward Pannell, 32, of Harvey, Louisiana, pleaded guilty in the Eastern District of Louisiana for receipt of child pornography. He is pending sentencing; • Ryan Thomas Carver, 29, of Huntsville, Alabama, was arrested and charged under Alabama State Law. He was charged federally in the Northern District of Alabama with possession of child pornography. His case is pending in Huntsville, Alabama; • Andrew Buckley, 28, of the United Kingdom, pleaded guilty to 10 offences in the UK of possession and distribution of indecent images of children, possession of extreme and prohibited images and possession of a class A drug. He was sentenced to serve 40 months in prison for the distribution of indecent images and possession of class A drugs. Buckley is also subject to an indefinite Sexual Harm Prevention Order; • Kyle Fox, 26, of the United Kingdom, pleaded guilty to 22 counts including rape, sexual assault, and sharing indecent images, and was sentenced to serve 22 years in prison; and
• Mohammed Almaker, 26, of Fort Collins, Colorado, was arrested in the Kingdom of Saudi Arabia (KSA), charged with KSA Law involving the endangerment of children. He is awaiting judicial proceedings in furtherance of criminal charges.

A forfeiture complaint was also unsealed today. The complaint alleges that law enforcement was able to trace payments of bitcoin to the Darknet site by following the flow of funds on the blockchain. The virtual currency accounts identified in the complaint were allegedly used by 24 individuals in five countries to fund the website and promote the exploitation of children. The forfeiture complaint seeks to recover these funds and, ultimately through the restoration process, return the illicit funds to victims of the crime.

The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The international investigations were led by the IRS-CI, HSI and the NCA. The Korean National Police of the Republic of Korea, the National Crime Agency of the United Kingdom and the German Federal Criminal Police (the Bundeskriminalamt), provided assistance and coordinated with their parallel investigations. The Department of Justice’s Office of International Affairs of the Criminal Division provided significant assistance.

The cases are being handled by Assistant U.S. Attorneys Zia M. Faruqui, Lindsay Suttenberg, and Youli Lee, Paralegal Specialists Brian Rickers and Diane Brashears, Legal Assistant Jessica McCormick, and Records Examiner Chad Byron of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Additional assistance has been provided by Deputy Chief Keith Becker and Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section, and former U.S. Attorney’s Office Paralegal Specialists Toni Anne Donato and Ty Eaton.

NEWARK, N.J. – Two New Jersey men were sentenced today to prison terms for their roles in a scheme to bribe mail carriers to steal credit cards from the mail, U.S. Attorney Craig Carpenito announced.

Olagoke Araromi, 22, of Union, New Jersey, was sentenced to 61 months in prison. He previously pleaded guilty before U.S. District Judge Katharine S. Hayden to a three-count information charging him with bribery of U.S. Postal Service (USPS) mail carriers, bank fraud and aggravated identity theft.

Moussa Dagno, 24, of Harrison, New Jersey, was sentenced to 57 months in prison. He previously pleaded guilty before Judge Hayden to an information charging him with one count each of bribery of USPS mail carriers and employees, bank fraud and aggravated identity theft. Judge Hayden imposed both sentences today in Newark federal court.

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

Araromi and Dagno recruited at least a half dozen USPS mail carriers and employees to steal credit cards from the mail in exchange for cash bribes, typically $100 per stolen card. Once Araromi had taken possession of the stolen credit cards and activated them, he and Dagno would use the cards to purchase high-end electronics and clothing at various retail stores throughout New Jersey. In February 2018, law enforcement seized six laptops and a smartphone from the Harrison residence then shared by Araromi and Dagno, all of which had been purchased with the stolen credit cards. 

Several USPS employees who accepted bribes from Araromi and Dagno have already pleaded guilty to bribery charges, including: former mail carriers Zenobia Gilmer, Ayesha Troztz and Kyanne Costley, who had delivery routes in Mt. Arlington, East Orange and Elizabeth, New Jersey; and Jennel Williams, who formerly worked as a clerk in the Newark Main Post Office. All four admitted to stealing credit cards from the mail and delivering them to Araromi or Dagno in exchange for payments, and all are awaiting sentencing. A fifth mail carrier from Jersey City, Jacquan Miller, has been charged by complaint for his role in the scheme.   

In addition to the prison term, Judge Hayden sentenced Araromi and Dagno to five years of supervised release and ordered restitution of $87,503 for Olagoke and $84,573 for Araromi.

U.S. Attorney Carpenito credited special agents with the USPS Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn in Newark, with the investigation leading to today’s sentencings. 

The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Jihee G. Suh of the U.S. Attorney’s Special Prosecutions Division in Newark.

The charges and allegations against Jacquan Miller are merely accusations, and he is presumed innocent unless and until proven guilty.

NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey has reached an Americans with Disabilities Act (ADA) settlement with a Bergen County, New Jersey-based gymnastics facility to ensure equal access for children with disabilities, U.S. Attorney Craig Carpenito announced.

The U.S. Attorney’s Office determined that Paragon School of Artistic Gymnastics (Paragon) of Norwood, New Jersey, violated the ADA by refusing to make reasonable modifications to its program and then excluding children on the basis of disability. The matter stems from a complaint alleging that Paragon cancelled a child’s birthday party after learning that the birthday child and guests had disabilities.

According the to the complaint, Paragon required parents of any child with a disability that wanted to participate in a Paragon birthday party to provide an individual to “shadow” the child throughout the party, regardless of the child’s disability or individual needs.

Under Title III the ADA, places of public accommodation such as Paragon must make reasonable modifications to policies and practices to permit persons with disabilities to participate in its services. Places of public accommodation also cannot impose additional eligibility criteria or a surcharge on persons with a disability wishing to participate in its goods and services, and cannot deny access to good and services to people associated with someone with a disability.

Under the settlement agreement, Paragon has agreed to implement policies and procedures to ensure that children with disabilities are afforded full and equal opportunities to participate in and benefit from its programs and parties, to publish on its website a statement of its policy on the prohibition of disability discrimination, and to provide mandatory training on the ADA and its prohibition of disability discrimination to all Paragon employees. Paragon will also pay $3,000 in damages to the minor complainant and $2,000 to that complainant’s parents, as well as a $1,000 civil penalty to the U.S. Treasury.

Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office here. Additional information about the ADA can be found at 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. Kelly Horan Florio of the U.S. Attorney’s Office Civil Rights Unit in Newark.

CAMDEN, N.J. – Two members of a drug-trafficking organization have pleaded guilty this week to distributing significant amounts of illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.

Paul Salcedo, 29, of Camden, New Jersey, pleaded guilty Oct. 10, 2019, and Waldemar Garcia, 33, of Camden, pleaded guilty Oct. 7, 2019, before U.S. District Judge Renee Marie Bumb in Camden federal court, to their respective roles in a drug trafficking conspiracy that was based on the 500 block of Pine Street in Camden. The pleas reflected that the members of the drug-trafficking organization sold massive amounts of heroin as well as crack cocaine, cocaine, and fentanyl in and around Camden. Salcedo also admitted his role as a manager or supervisor of the conspiracy.

Two top-level managers of the drug-trafficking conspiracy, Ronnie Lopez and Nelson Salcedo, previously pleaded guilty in this case. The charges against 15 other defendants in this case remain pending.

According to documents filed in this case:

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

The counts to which Waldemar Garcia and Paul Salcedo pleaded guilty carry a mandatory penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 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 Harpster; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.

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

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

NEWARK, N.J. – A Newark man today admitted possessing heroin that was seized from him at Newark Penn Station, U.S. Attorney Craig Carpenito announced.

Jeremy Lorenzo, 30, of Newark, pleaded guilty before U.S. District Judge Kevin McNulty to one count of possession with intent to distribute more than 200 grams of heroin. 

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

Law enforcement officers learned of potential narcotics trafficking by train between Newark and Harrisburg, Pennsylvania. Lorenzo encountered law enforcement officers at Penn Station while waiting to board an Amtrak train to Harrisburg. Lorenzo’s statements and behavior caused law enforcement to suspect that he was transporting narcotics. After a certified narcotics dog signaled the presence of narcotics in Lorenzo’s bags, law enforcement initiated a search and recovered more than 200 grams of heroin.

The count to which Lorenzo pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum sentence of 40 years in prison and a fine of up to $5 million. Sentencing is scheduled for Jan. 22, 2020.

U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s guilty plea. He also thanked officers of NJ Transit Police for their assistance.

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

Defendant Previously Convicted of Lying to FBI

CAMDEN, N.J – U.S. Attorney Craig Carpenito announced today that his office will retry the retired chief of the Bordentown Township Police Department on hate crime and civil rights charges after a jury deadlocked on those counts at his trial. The defendant was convicted by the same jury on Oct. 9, 2019, of lying to FBI agents who questioned him about violating an 18-year-old man’s civil rights during an arrest.

The jury deliberated eight days in the trial of Frank M. Nucera Jr., 62, of Bordentown, New Jersey, before announcing that they could not reach a unanimous decision on Counts One and Two – hate crime assault and deprivation of civil rights under color of law, respectively. U.S. District Judge Robert B. Kugler declared a mistrial on those counts. U.S. Attorney Carpenito thanked the jury for its efforts during deliberations.

Defense counsel: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey

NEWARK, N.J. – An Irvington, New Jersey, man has been sentenced to 37 months in prison for his role in a phony check scheme that stole more than $2 million in merchandise from multiple home improvement stores throughout the country, U.S. Attorney Craig Carpenito announced today.

Reginald Phillips, 56, of Irvington, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiracy to commit wire fraud. Judge Hayden imposed Phillips’s sentence Oct. 9, 2019, in Newark federal court.

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

Starting in December 2013 and continuing through February 2017, Phillips spearheaded a conspiracy of several individuals – four of whom have also pleaded guilty in the case – who worked together to obtain merchandise or store credit from home improvement stores along the eastern United States, including New Jersey, by purchasing items with fraudulent checks.

Phillips and his conspirators entered home improvement and other retail stores and gathered high-value items like air conditioners, hardwood flooring, and expensive home wiring. They then “purchased” the items by handing a cashier a fraudulent check with a phony name but authentic account and routing numbers or by pretending to be an authorized signatory on a store credit account that they had previously opened with a phony check.

During many of the transactions, Phillips displayed fake driver’s licenses that had been created by one of the other conspirators, which either duplicated the phony name imprinted on the fraudulent check they presented for payment or matched the name of an authorized signatory on a store credit account that they had previously opened.

In total, Phillips and his conspirators stole over $2.4 million in merchandise from various retailers in New Jersey, New York, Pennsylvania, Delaware, North Carolina, Georgia, Virginia, Connecticut, Massachusetts, and South Carolina.

In addition to the prison term, Judge Hayden sentenced Phillips to three years of supervised release.

U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn in Newark, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation. He also thanked the Union Township Police Department, the Holmdel Police Department, the Passaic County Prosecutor's Office, the Totowa Police Department, and the Monroe Township Police Department for their assistance.

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

Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender, Newark