District of New Jersey
Press releases recorded for this federal judicial district.
Former Director of Corporate Law at Global Technology Company Indicted for Insider TradingRead the Press Release
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 Man Sentenced to Nine Years in Prison for Armed Robbery Spree of Businesses and Banks in Camden and Burlington CountiesRead the Press Release
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
Owner of Hudson County, New Jersey, Scrap Metal Company Sentenced to 33 Months in Prison for 17-Year Conspiracy to Defraud CustomersRead the Press Release
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
Attorney General William Barr Recognizes Department Employees and Others for Their Service at 67th Annual Attorney General AwardsRead the Press Release
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.”
Morris County Man Admits Hacking Scheme That Targeted Two New Jersey CompaniesRead the Press Release
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
Middlesex County Woman Admits $1.7 Million Bank Fraud SchemeRead the Press Release
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
Paterson, New Jersey, Man Sentenced to 25 Years in Prison for Distributing HeroinRead the Press Release
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
Passaic County Man Admits Role in Stealing Employer’s Toothpaste FormulasRead the Press Release
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
Owner of Pharmacies Convicted of Conspiracy to Defraud IRSRead the Press Release
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
Department of Justice Awards More Than $85.3 Million in Grants to Address School ViolenceRead the Press Release
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 Man Admits Role in Drug Trafficking OrganizationRead the Press Release
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
South Korean National and Hundreds of Others Charged Worldwide in the Takedown of the Largest Darknet Child Pornography Website, Which Was Funded by BitcoinRead the Press Release
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.
Two New Jersey Men Sentenced to Prison for Bribing Mail Carriers to Steal Credit CardsRead the Press Release
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.
U.S. Attorney’s Office Reaches ADA Settlement with Gymnastics Facility to Ensure That Children with Disabilities Receive Equal Access to Its ServicesRead the Press Release
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.
Two Camden Men Admit Roles in Drug Trafficking OrganizationRead the Press Release
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 Man Admits Role in Drug Distribution After Seizure of Heroin at Newark Penn StationRead the Press Release
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.
Former Bordentown Township Police Chief Will Be Retried on Hate Crime and Use of Excessive Force ChargesRead the Press Release
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
Ringleader of $2 Million Fraudulent Check Scheme Targeting Home Improvement Stores Sentenced to 37 Months in PrisonRead the Press Release
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
Two Men Admit Drug Conspiracy after Seizure of Fentanyl and HeroinRead the Press Release
TRENTON, N.J. – Two men have admitted their roles in a drug distribution conspiracy in connection with the seizure of fentanyl and heroin at a New Jersey rest stop, U.S. Attorney Craig Carpenito announced.
Luis Aponte, 48, of Riverside, California, pleaded guilty today before U.S. District Judge Peter Sheridan in Trenton federal court to an information charging him with one count of conspiracy to distribute fentanyl and heroin. Denny Diaz, 29, of Philadelphia, Pennsylvania, pleaded guilty before Judge Sheridan on Sept. 10, 2019.
According to the documents filed in the case and statements made in court:
Aponte drove a tractor-trailer truck to a rest stop in Bloomsbury, New Jersey, on March 1, 2019. The next day, he met Diaz in a car and gave Diaz approximately six kilograms of fentanyl. Both men were arrested shortly thereafter. Law enforcement officers searched Aponte’s truck at the rest stop and found an additional two kilograms of fentanyl and 11 kilograms of heroin inside.
The charge to which the defendants have pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment, and a maximum fine of $10 million. Sentencing for Aponte is scheduled for Feb. 6, 2020, and for Diaz, Dec. 16, 2019.
U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan, New York Division; New York City Police Commissioner James P. O’Neill; and N.Y. State Police Acting Superintendent Keith M. Corlett with the investigation leading to the guilty pleas. This case is being investigated by the DEA’s New York Drug Enforcement Task Force, comprising agents and officers of the DEA, New York City Police Department and New York State Police.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Criminal Division in Newark.
Jersey City, New Jersey, Man Charged with Receipt of Child PornographyRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man was charged today with allegedly receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Benigno Gonzalez-Mendoza, 35, is charged by complaint with one count of receipt of child pornography. He appeared before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this case and statements made in court:
From March 9, 2019, through July 27, 2019, Gonzalez-Mendoza knowingly received images and videos of child sexual abuse, including videos of prepubescent children engaged in sexual acts with adults.
The charge of receipt of child pornography carries a maximum potential penalty of 20 years in prison, a minimum penalty of five years in prison, and a maximum $250,000 fine.
U.S. Attorney Craig Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Emma Spiro of the U.S. Attorney’s Office Criminal Division in Newark.
Former Bordentown Township Police Chief Guilty of Lying to FBIRead the Press Release
CAMDEN, N.J. – The retired chief of the Bordentown Township Police Department was convicted today of lying to FBI agents who were questioning him about violating an 18-year-old man’s civil rights during an arrest; the jury will return to court tomorrow to resume deliberations on the hate crime and civil rights counts, U.S. Attorney Craig Carpenito announced.
Frank M. Nucera Jr., 62, of Bordentown, New Jersey, was convicted of one count of making false statements to FBI agents who were interviewing him about an arrest that occurred Sept. 1. 2016. Nucera is also charged by indictment with one count of hate crime assault and one count of deprivation of civil rights under color of law; the jury will return to court tomorrow to continue deliberating on those counts.
According to documents filed in this case and the evidence at trial:
On Sept. 1, 2016, two Bordentown Township police officers responded to a phone call from the Bordentown Ramada, complaining that two teenagers had stayed in a room at the hotel without paying. The teens were listed in the complaint as “Civilian 1,” an 18-year-old African American teenager, and “Civilian 2,” a 16-year-old African American girl. After the officers arrived and questioned the teenagers, the situation allegedly escalated into a physical confrontation, with both teens attempting to resist arrest. The officers called for backup, and numerous officers, including then-Chief Nucera, arrived on the scene.
After Civilian 1 was handcuffed and was being escorted out of the hotel by police, Nucera allegedly approached him from behind and slammed the man’s head into a metal doorjamb. During a video recorded interview by FBI special agents, Nucera falsely stated multiple times that he did not touch Civilian 1 during the arrest.
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 conviction.
The remaining two counts of the indictment on which Nucera was tried are merely accusations, and he remains innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Molly S. Lorber and Senior Trial Counsel R. Joseph Gribko of the Office’s Criminal Division.
Hoboken Man Admits Participating in Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A Hoboken, New Jersey, today man admitted his role in a conspiracy to promote a voter bribery scheme during a municipal election in Hoboken, U.S. Attorney Craig Carpenito announced.
William Rojas, 69, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with conspiring with others to use the mail to promote a voter bribery scheme during the 2015 municipal election in Hoboken.
According to documents filed in this case and statements made in court:
Under New Jersey law, registered voters are permitted to cast a ballot by mail rather than in person. To receive a mail-in ballot, voters must complete and submit to their county clerk’s office an Application for Vote By Mail Ballot (VBM Application). After the VBM Application is processed, voters receive a mail-in ballot.
From September 2015 through November 2015, Rojas worked for a candidate for the Hoboken City Council (Candidate 1). At Candidate 1’s direction, Rojas and a conspirator, Matthew Calicchio, agreed to pay certain Hoboken voters $50 each if those voters applied for and cast mail-in ballots for the November 2015 Hoboken municipal election. Rojas provided these voters with VBM applications and told them they would get paid $50 for casting mail-in ballots. After receiving the completed mail-in ballots from voters, Rojas and Calicchio reviewed them to ensure that voters had voted for Candidate 1. After the election, Rojas delivered $50 checks to the voters whose mail-in ballots he collected. Calicchio previously pleaded guilty to his role in the scheme and is scheduled to be sentenced Nov. 7, 2019.
Rojas faces a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 20, 2020.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
Defense Counsel: Kevin F. Carlucci Esq., Assistant Federal Public Defender, Newark
Former Teacher and Summer Camp Employee Sentenced to 15 Years in Prison for Production of Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was sentenced today to 180 months in prison for his role in producing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Colin M. Skeele, 33, of Florham Park, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of producing child pornography. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Skeele previously worked as a counselor at a boys’ summer camp in Hardwick, New Jersey, and as a teacher at parochial schools in Boonton, New Jersey, and Stirling, New Jersey.
In 2011, Skeele became Facebook friends with a boy that Skeele met while working as a counselor at a boys’ summer camp. In Facebook messages with the minor, Skeele offered to pay money for the minor to take sexually explicit photographs to send to Skeele. In one instance, Skeele paid the boy approximately $100 to send nude images of himself. Skeele later sent at least one pornographic image of that minor to another minor that had also attended the summer camp.
On multiple occasions between 2012 and 2014, Skeele communicated online with individuals located in the Philippines to purchase live child sexual abuse shows, which Skeele directed and viewed in real time via an online video and chat service. Instant messages obtained during the investigation revealed that Skeele used an online fund transfer service to purchase live sexual abuse videos of young children.
Anyone with information regarding possible victims of this activity is urged to contact the Department of Homeland Security in Newark, New Jersey, at 973-776-5500.
In addition to the prison term, Judge Wigenton sentenced Skeele to 20 years of supervised release. He must also register as a sex offender and cannot have contact with anyone under age 18.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation that led to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Criminal Division.
Defense counsel: Jay V. Surgent Esq., Parsippany, New Jersey
Former Business Manager of Assisted Living Facility Sentenced to 27 Months in Prison for Stealing Nearly A Quarter Million Dollars from Elderly VictimRead the Press Release
NEWARK, N.J. – The former business manager of a Morris County, New Jersey, assisted living facility was sentenced today to 27 months in prison for stealing approximately $237,000 from an elderly victim under her care, U.S. Attorney Craig Carpenito announced.
Marcella Drakeford, 46, most recently of Fort Pierce, Florida, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to Count One of an indictment charging her with mail fraud. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Beginning in December 2016, Drakeford agreed to help manage her victim’s financial affairs and pay for her care. She was granted limited access to the victim’s checking account. Unbeknownst to the victim or the victim’s guardian, Drakeford already had fraudulently gained access to the victim’s credit card account and had several cards issued in her name. Drakeford then used the credit cards for personal expenditures, including luxury clothing, jewelry, automobiles, dental work, rent, and utilities. Drakeford paid off the credit card bills with checks drawn on the victim’s checking account, all without permission.
In addition to the prison term, Judge Hayden sentenced Drakeford to three years of supervised release and ordered her to pay restitution of $237,258.
U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service under the direction of Inspector in Charge James V. Buthorn, for the investigation leading to today’s sentencing. He also thanked the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp, and the Morristown Police Department, under the direction of Acting Police Chief Darnell Richardson, for their work on the investigation.
The government is represented by Assistant U.S. Attorney David W. Feder, Chief of the U.S. Attorney’s Office’s Cybercrime Unit.
On Oct. 4, 2019, the Department of Justice unveiled a new public service announcement created in collaboration with AARP and the Oak Ridge Boys to raise awareness about fraud schemes targeting older Americans.
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
Previously Convicted Felon from Essex County Sentenced to 10 Years in Prison for Illegally Possessing FirearmRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 120 months in prison for possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Richard D. Williams, 41, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an indictment charging him with one count of possession of a firearm as a previously convicted felon. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Feb. 18, 2017, law enforcement officers spotted a white Infiniti car that matched the make, model, color and year of a car that had previously been reported stolen. When police ran the license plate on the vehicle, they determined it belonged to a different car, suggesting that the license plate on the Infiniti had been switched. Police officers attempted to stop the vehicle, but it took off at a high rate of speed. The police pursued the car in a high-speed chase through Newark and into East Orange, New Jersey. Several other police cars and a Newark police department helicopter joined the pursuit.
The police chased the car for 10 minutes until it was traveling east on South Orange Avenue near Bergen Street in East Orange, New Jersey. The car crossed into oncoming traffic and collided head on with an unmarked Newark police department vehicle. The crash caused both the Infiniti and Newark police vehicle to catch fire. The three Newark police officers inside the police vehicle all suffered injuries but exited their vehicle safely.
Williams got out of the Infiniti and tried to flee, but was quickly caught and detained by a Newark police officer until a N.J. State Police trooper joined him. Williams was found to have a black .38-caliber revolver, loaded with four bullets, in his waistband. Williams had at least one prior felony conviction in federal court.
In addition to the prison term, Judge Vazquez sentenced William to three years of supervised release.
U.S. Attorney Carpenito credited task force officers of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s sentencing. He also thanked officers of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, for their assistance.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Catherine R. Murphy of the U.S. Attorney’s Office Criminal Division in Newark.
Seventeen People Charged in Passaic County Drug Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – Seventeen people have been charged for their roles as members and associates of a Paterson-based street gang involved in the distribution of narcotics, including heroin, fentanyl, and cocaine base, U.S. Attorney Craig Carpenito announced today.
Nine defendants were arrested today and seven were already in state custody. One defendant remains at large. Those arrested today are scheduled to have their initial appearances this afternoon before U.S. Magistrate Leda Dunn Wettre in Newark federal court. (See chart below.)
“Gang members who traffic in narcotics pump poison into New Jersey streets and put our citizens at risk of addiction and violence,” U.S. Attorney Carpenito said, “The charges announced today result from the combined work of our federal, state, and local partners, and will help ensure that these defendants no longer threaten our communities with these harms and instead are held responsible for their crimes.”
“Today’s arrests are a direct result of the hard work and collaboration between ATF, the U.S. Attorney’s Office, and our local, state, and federal partners in addressing gangs and their associative violence,” ATF Special Agent-In-Charge Charlie J. Patterson said. “Without question, gangs destroy communities. Let these arrests serve as a deterrent to those who think they have free reign to utilize the illegal drug trade to facilitate violence and spread fear in hopes of creating strongholds in our communities. ATF will continue to make addressing violent crime a priority and will stand together with our partners to make the City of Paterson a safer place for all of us.”
“The removal of these gang members from the streets of Paterson have made the city a safer place,” Susan A. Gibson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “The DEA and our law enforcement partners will continue to target those individuals and organizations who choose to put communities at risk by dealing dangerous narcotics.”
The complaint charges the defendants – all Paterson residents – in three interrelated drug conspiracies involving the distribution of heroin, fentanyl, and cocaine base in the Passaic County area. One defendant, Tawan Grier, is additionally charged with distribution of cocaine base and heroin, and two of the defendants, Najier Boone and Davine Campbell, are charged with distribution of cocaine base.
According to the documents filed in this case and statements made in court:
The defendants are all members and associates of the 230 Boys street gang, which operates primarily on Rosa Parks Boulevard and Godwin Avenue in Paterson. Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from September 2018 through Oct. 1, 2019, the defendants conspired to distribute narcotics, including heroin, fentanyl, and cocaine base.
The counts of conspiracy to distribute at least 100 grams of heroin and 28 grams of cocaine base each carry a maximum penalty of 40 years in prison and a fine of at least $5 million. The counts of conspiracy to distribute heroin and fentanyl, and the distribution of heroin and cocaine base, carry a maximum of 20 years in prison and a fine of $1 million.
U.S. Attorney Carpenito credited special agents and task force officers with the ATF, Newark Division, under the direction of Special Agent in Charge Patterson; special agents of the DEA, under the direction of Special Agent in Charge Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Troy Oswald; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes, and the Passaic County Sheriff's Department, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s OCDETF Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
DEFENDANTS AND CHARGES
*denotes at large
NAME
AGE
CHARGE
Aaryn Abrams
23
Count One: Conspiracy to Distribute 100 Grams or More of Heroin
Count Two: Conspiracy to Distribute Heroin
Najier Boone
23
Count One: Conspiracy to Distribute 100 Grams or More of Heroin
Count Two: Conspiracy to Distribute Heroin
Count Four: Distribution of Cocaine Base
Carl Brown
25
Count One: Conspiracy to Distribute 100 Grams or More of Heroin
Count Two: Conspiracy to Distribute Heroin
*Keith Brinkley
29
Count One: Conspiracy to Distribute 100 Grams or More of Heroin
Count Two: Conspiracy to Distribute Heroin
Zikeme Brooks
26
Count Two: Conspiracy to Distribute Heroin
Davine Campbell
38
Count Four: Distribution of Cocaine Base
Shaquille Fabor
26
Count One: Conspiracy to Distribute 100 Grams or More of Heroin
Count Two: Conspiracy to Distribute Heroin
Count Three: Conspiracy to Distribute Fentanyl
Tawan Grier
20
Count One: Conspiracy to Distribute 100 Grams or More of Heroin
Count Two: Conspiracy to Distribute Heroin
Count Three: Conspiracy to Distribute Fentanyl
Counts Four: Distribution of Heroin
Count Five: Distribution of Cocaine Base
Isaiah Hargrove
20
Count One: Conspiracy to Distribute 100 Grams or More of Heroin
Count Two: Conspiracy to Distribute Heroin
Count Three: Conspiracy to Distribute Fentanyl
Tyson Jacobs
20
Count One: Conspiracy to Distribute 100 Grams or More of Heroin
Count Two: Conspiracy to Distribute Heroin
Count Three: Conspiracy to Distribute Fentanyl
Amir Jones
20
Count One: Conspiracy to Distribute 100 Grams or More of Heroin
Count Two: Conspiracy to Distribute Heroin
Dashion Kelson
39
Count One: Conspiracy to Distribute 100 Grams or More of Heroin
Count Two: Conspiracy to Distribute Heroin
Count Three: Conspiracy to Distribute Fentanyl
Dwayne Northern
34
Count Two: Conspiracy to Distribute Heroin
Wyzier Peterson
22
Count One: Conspiracy to Distribute 100 Grams or More of Heroin
Count Two: Conspiracy to Distribute Heroin
Count Three: Conspiracy to Distribute Fentanyl
Jimir Ricks
25
Count One: Conspiracy to Distribute 100 Grams or More of Heroin
Count Two: Conspiracy to Distribute Heroin
Count Three: Conspiracy to Distribute Fentanyl
Maurice Tisdale
26
Count One: Conspiracy to Distribute 100 Grams or More of Heroin
Count Two: Conspiracy to Distribute Heroin
Cequan Wharton
25
Count One: Conspiracy to Distribute 100 Grams or More of Heroin
Count Two: Conspiracy to Distribute Heroin
Four People Charged, Fifth Pleads Guilty, in $4.5 Million Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – Four people, including two doctors, are scheduled to appear in court today on charges they defrauded New Jersey state health benefits programs and other insurers of $4.5 million by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced. A fifth individual, a physician’s assistant, has pleaded guilty to participating in the health care fraud conspiracy.
Steven Monaco, 37, of Sewell, New Jersey; Daniel Oswari M.D., 48, of Bordentown, New Jersey; Michael Goldis D.O., of Mt. Laurel, New Jersey; and Aaron Jones, 25, of Willingboro, New Jersey, were all charged in a 33-count indictment with conspiracy to commit health care fraud and wire fraud. Monaco, Oswari, and Goldis also were each charged with individual acts of health care fraud and wire fraud, and Jones was charged with 10 false statement counts. Monaco and Oswari were charged with a conspiracy involving kickbacks for referrals for laboratory work.
The cases are assigned to U.S. District Judge Robert B. Kugler in Camden. The indicted defendants are expected to appear today before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
According to the indictment:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2014 through April 2016, the conspirators recruited individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from a Louisiana pharmacy, identified in the indictment as the “Compounding Pharmacy 1,” and a Pennsylvania pharmacy, identified in the indictment as “Compounding Pharmacy 2.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the indictment as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, and other insurance plans. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey or the other insurance plans for the amounts paid.
Richard Zappala, who previously pleaded guilty to conspiracy to commit health care fraud, had agreements to receive a percentage of the amount that Compounding Pharmacies 1 and 2 received for prescriptions obtained by Zappala and his associates. Zappala had Monaco and other conspirators find people who would agree to receive prescriptions for compounded medications. Zappala’s sentencing is scheduled for Nov. 13, 2019.
The conspirators recruited public employees and others covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from Compounding Pharmacies 1 and 2 without any evaluation or determination by a medical professional that the medications were medically necessary. The defendants paid individuals to agree to receive prescription medications from the Compounding Pharmacy. The defendants completed prescriptions for these individuals and selected the most expensive medications with the highest number of refills to obtain the highest possible insurance reimbursement. The conspirators would have prescriptions signed by a doctor or medical professional who did not examine the patients or determine that the medications were medically necessary. Monaco paid kickbacks to Dr. Oswari and another medical professional to reward them for signing prescriptions, and Zappala paid Dr. Goldis for signing prescriptions. Jones, who was a medical assistant in Goldis’ office, also forged Goldis’ signature on other prescriptions.
The completed prescriptions were faxed to the Compounding Pharmacies, which filled the prescriptions and billed the Pharmacy Benefits Administrator. The Pharmacy Benefits Administrator paid Compounding Pharmacies 1 and 2 over $4.5 million for compounded medications obtained by the conspiracy. Compounding Pharmacies 1 and 2 paid Zappala a percentage of that amount, which he used to pay members of the conspiracy.
The indictment charges Monaco and Oswari with a second conspiracy in which Monaco caused Oswari to receive kickbacks for referring laboratory work and signing prescriptions. Monaco, who worked for a blood and urine testing lab, arranged for his employer to hire Oswari’s medical assistant as a phlebotomist, while continuing to do medical assistant work for Oswari. In return for receiving the free services of an employee for over two years, Oswari referred his blood and urine samples to Monaco’s employer for testing, and Monaco received a commission from the insurance payments made for tests run on those samples. It was also part of this conspiracy that Monaco paid kickbacks to Oswari for writing prescriptions for compounded medications and received money from the resulting insurance payments.
The health care fraud and wire fraud conspiracy count with which all indicted defendants are charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Each wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Each health care fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The kickbacks conspiracy count and the false statement counts each carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense
On Oct. 2, Jason Chacker, 36, of Feasterville, Pennsylvania, a physician’s assistant who practiced in Mercer County, pleaded guilty before Judge Kugler to conspiracy to commit health care fraud. Chacker admitted that he and his conspirators recruited individuals who had prescription drug benefits administered by the Pharmacy Benefits Administrator that covered compounded medications. At the request of a conspirator, Chacker signed prescriptions for individuals without ever meeting them or evaluating whether they needed the compounded medications. He also paid one individual to receive compounded medications. Chacker received $3,200 and other valuable items from a conspirator for his role. The Pharmacy Benefits Administrator paid $365,454 for prescriptions fraudulently obtained by Chacker and his conspirators.
Chacker faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 5, 2020.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the indictment and guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Christina O. Hud of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Monaco: Gerard Egan Esq., Exton, Pennsylvania
Daniel Oswari: Scott Krasny Esq., West Trenton, New Jersey
Michael Goldis: Ralph Kramer Esq., Haddon Heights, New Jersey
Aaron Jones: Christopher O’Malley Esq., Camden, New Jersey
Jason Chacker: Teri Lodge Esq., Marlton, New JerseyBordentown Man Charged with Conspiracies go Commit Wire Fraud and Launder Money for Defrauding Internet DonorsRead the Press Release
CAMDEN, N.J. - A Burlington County, New Jersey, man has been charged in connection with his role in a GoFundMe scheme that collected money from donors on the Internet, purportedly to benefit a homeless man, U.S. Attorney Craig Carpenito announced today.
Mark D’Amico, 40, formerly of Bordentown, New Jersey, is charged by criminal complaint with one count each of conspiring to commit wire fraud and conspiring to commit money laundering. He is expected to appear later this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
On March 6, 2019, two conspirators – Katelyn McClure and Johnny Bobbitt Jr. – pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering, respectively, in connection with the same scheme.
According to documents filed in this case and statements made in court:
In November of 2017, D’Amico and McClure created a crowd source funding page on GoFundMe’s website entitled “Paying It Forward.” The campaign solicited donations from the public purportedly for the benefit of homeless veteran Bobbitt. On the website, D’Amico and McClure posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a Good Samaritan and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited, with a goal of $10,000, to get Bobbitt off the streets and provide living expenses for him.
The story told by D’Amico and McClure was not true. McClure never ran out of gas and Bobbitt never spent his last $20 for her. D’Amico and McClure conspired to create the false story to obtain money from donors based on false information. The false story was quickly picked up by local and national news outlets and went viral. Approximately $400,000 from more than 14,000 donors throughout the country was raised in less than one month.
The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money was quickly spent by D’Amico and McClure on personal expenses over the next three months, including significant amounts on D’Amico’s gambling addiction, vacations, a BMW automobile, clothing, handbags and other personal items and expenses.
In mid-November of 2017, when the donations had reached approximately $1,700, D’Amico and McClure told Bobbitt about the campaign and the false story. In December of 2017, after D’Amico helped open a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.
The charge of wire fraud conspiracy carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of conspiracy to commit money laundering carries a maximum penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges. He also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; and officers of the Florence Township, New Jersey, Police Department for their work on the case.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Jeffrey B. Bender of the U.S. Attorney's Office Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Atlantic City Mayor Admits Defrauding Contributors to A Youth Basketball TeamRead the Press Release
CAMDEN, N.J. – The mayor of Atlantic City today admitted to defrauding contributors to a youth basketball team of more than $87,000, U.S. Attorney Craig Carpenito announced.
Frank Gilliam, 49, of Atlantic City, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of wire fraud.
“Mayor Gilliam took advantage of his victims’ desire to assist underprivileged children by falsely representing that the money contributed to the AC Starz Basketball Club would go to pay for school supplies or to support youth basketball,” U.S. Attorney Carpenito said. “Instead, he spent the money on himself. When a public official like Gilliam abuses either a public or a private trust to commit a fraud, this Office and our agency partners will investigate and prosecute that official. The people of New Jersey are entitled to better.”
“When a scheme depletes charity for children, it's unconscionable,” Special Agent in Charge Gregory W. Ehrie said. “But when the fraud is perpetrated by someone the public trusts, it damages the community's confidence in their public servants. This defendant betrayed the trust of his community and of people who wanted to improve the lives of children. The FBI is committed to uncovering fraud and corruption. If you break the law, no matter who you are, you will face the consequences.”
According to documents filed in this case and statements made in court:
Gilliam was the co-founder of AC Starz Basketball Club (AC Starz), a non-profit that he incorporated to operate a youth basketball team. While serving as a member of the Atlantic City Council and later, as mayor of Atlantic City, Gilliam solicited donations for AC Starz from various individuals and entities under the false pretense that the contributions were for a youth basketball team and/or school supplies for underprivileged children. In reality, Gilliam used most of the money for personal expenses – including luxury clothing, expensive meals, and trips – that were completely unrelated to the operation of a youth basketball team. Gilliam defrauded the contributors of $87,215.
The charge to which Gilliam pleaded guilty is punishable by a maximum penalty of 20 years in prison and a potential fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 7, 2020.
U.S. Attorney Craig Carpenito credited special agents of the FBI-Newark Atlantic City Resident Agency’s Atlantic City Public Corruption Task Force, which includes the Atlantic County Prosecutor’s Office, Cape May County Prosecutor’s Office and the Atlantic City Police Department, under the direction of Special Agent in Charge Ehrie; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Harry H. Rimm Esq., New York
Nigerian National Appears on Charges Relating to Computer Hacking Scheme That Targeted Government EmployeesRead the Press Release
NEWARK, N.J. - A Nigerian national extradited from Canada will appear in court today for his alleged role in a scheme that defrauded vendors of office products valued at nearly $1 million by “phishing” e-mail login information from government employees, U.S. Attorney Craig Carpenito announced.
Olumide Ogunremi, a/k/a “Tony Williams,” was charged by indictment on Sept. 28, 2018, with one count of conspiracy to commit wire fraud. He was extradited to the District of New Jersey on Sept. 26, 2019, and appeared today before U.S. District Judge Susan D. Wigenton in Newark federal court, where he pleaded not guilty and was detained without bail.
According to documents filed in this case and statements made in court:
From July 2013 through December 2013, Ogunremi and other conspirators perpetrated a computer hacking and theft scheme targeting United States government agencies’ email systems and Government Services Administration (GSA) vendors. The ring employed “phishing” attacks, which used fraudulent e-mails and websites that mimicked the legitimate e-mails and web pages of U.S. government agencies, such as the U.S. Environmental Protection Agency. Unwitting employees of those agencies visited the fake web pages and provided their e-mail account usernames and passwords.
Ogunremi and his conspirators used these stolen credentials to access the employees’ e-mail accounts in order to place fraudulent orders for office products, typically printer toner cartridges, from vendors who were authorized to do business with U.S. government agencies. Ogunremi and his conspirators directed the vendors to ship the fraudulent orders to individuals in New Jersey and elsewhere to be repackaged and ultimately shipped to other locations overseas, which were controlled by Ogunremi and his conspirators. Once the orders were received in Nigeria, Ogunremi and his conspirators sold the toner cartridges to another individual on the black market for profit.
On June 10, 2014, Abiodun Adejohn, a/k/a “James Williams,” 30, of Nigeria, pleaded guilty to one count of wire fraud conspiracy, and was later sentenced to three years in prison.
The wire fraud conspiracy carries a maximum potential penalty of 20 years in prison and a maximum $250,000 fine.
U.S. Attorney Carpenito praised special agents of the EPA-OIG, under the direction of Thomas Muskett; General Services Administration OIG, under the direction of SAC Jamie Willemin; Department of Commerce OIG, under the direction of SAC Duane Townsend; Department of Defense Cyber Field Office, under the direction of SAC Jeffery Thorpe; and the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to Ogunremi’s arrest.
The government is represented by Assistant U.S. Attorney Sophie E. Reiter, of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: John McGovern Esq., Newark
Member of Newark’s ‘Famous Boyz’ Street Gang Admits Drug Trafficking Conspiracy Charges; Five Members Charged in 21-Count Superseding IndictmentRead the Press Release
NEWARK, N.J. – One of 17 defendants arrested in connection with a Newark street gang known as the “Famous Boyz” today admitted distributing narcotics as part of a drug trafficking conspiracy, U.S. Attorney Craig Carpenito announced.
Ibn Saadiq, a/k/a “Zero,” 22, of Newark, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin. He is the seventh defendant to plead guilty in the case so far.
On Sept. 30, 2019, a grand jury returned a 21-count superseding indictment charging Patricio Hernandez; Jonathan Hernandez; Jonathan Garcia, a/k/a “Bebo;” Javon Holmes, a/k/a “J-Dot;” and John Mosley, a/k/a “Breezy,” a/k/a “Brazy,” as follows:
Count(s)
Charge
Defendant(s)
1
Conspiracy to distribute and to possess with intent to distribute 280 grams or more of crack cocaine
Mosley; Holmes; P. Hernandez; J. Hernandez; Garcia
2
Conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin
Mosley; Holmes
3
Distribute and possess with intent to distribute 28 grams or more of cocaine base
Mosley; Holmes
4
Distribute and possess with intent to distribute 28 grams or more of cocaine base
Mosley
5-9
Distribute and possess with intent to distribute heroin
Mosley
10
Distribute and possess with intent to distribute heroin
Holmes
11
Distribute and possess with intent to distribute heroin and cocaine base
Holmes
12
Distribute and possess with intent to distribute heroin
Holmes
13
Distribute and possess with intent to distribute cocaine base
Holmes
14
Distribute and possess with intent to distribute fentanyl and cocaine base
Holmes
15
Distribute and possess with intent to distribute heroin and cocaine base
Holmes
16
Distribute and possess with intent to distribute heroin
Mosley; Holmes
17
Distribute and possess with intent to distribute heroin and cocaine base
Mosley; Holmes
18
Distribute and possess with intent to distribute heroin
Mosley; Holmes
19
Distribute and possess with intent to distribute heroin and cocaine base
Mosley; Holmes
20
Distribute and possess with intent to distribute cocaine and cocaine base
J. Hernandez; Garcia
21
Maintaining premises for the purpose of unlawfully manufacturing, storing, distributing, and using a controlled substance
J. Hernandez; Garcia
The charges in the superseding indictment and previous criminal complaint remain pending, and the defendants are presumed innocent unless and until proven guilty.According to the documents filed in this case and statements made in court:
In October 2018, Saadiq and 16 other members of a violent drug trafficking conspiracy operating in Newark were charged by criminal complaint after a lengthy wiretap investigation with conspiracy to distribute crack cocaine and/or heroin. The defendants are members and associates of the Famous Boyz – a subset of the Brick City Brim set of the Bloods street gang – which dealt significant quantities of heroin and crack-cocaine, primarily in the area of South 18th Street and 15th Avenue, in Newark. The gang often referred to this area as the “8 Block,” “18th,” or simply by reference to the number “8”.
The six defendants who previously pleaded guilty before Judge Arleo are:
Quaheem Bethea, a/k/a “Troub,” 20; Angelo West, a/k/a “Come Up,” 21; David Lamar, a/k/a “Brazy Ru,”27; Malik Minor, a/k/a “YK,” 22; Omar Jones, a/k/a “Torch” 20; and Robert Dorrah, a/k/a “Cash Out,” 21, all of Newark.
The heroin and crack cocaine conspiracy counts carry a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. Sentencing is scheduled for Jan. 21, 2020.
U.S. Attorney Carpenito credited special agents of ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark, and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to the charges and today’s guilty plea.
He also thanked the DEA, under the direction of SAC Susan A. Gibson; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Belleville Police Department, under the direction of Chief Mark Minichini; and the Livingston Police Department, under the direction of Chief Gary Marshuetz.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community.
The government is represented by Deputy Chief of the Criminal Division Mary E. Toscano and Assistant U.S. Attorney Angelica M. Sinopole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
Defense counsel:
Saadiq: James Patton Esq., Livingston, New Jersey
Bethea: Kathleen M. Theurer Esq., Jersey City, New Jersey
West: Michael V. Calabro Esq., Newark
Lamar: Michael P. Koribanics Esq., Newark
Minor: Andrew Olesnycky Esq., Westfield, New Jersey
Jones: David B. Glazer Esq., Livingston, New Jersey
Dorrah: John Whipple Esq., Morristown, New JerseyPaterson Police Officer Admits Conspiring to Violate Civil Rights, Using Excessive Force, and Filing False Police ReportRead the Press Release
NEWARK, N.J. – A City of Paterson police officer today admitted conspiring with other officers to violate the civil rights of individuals in Paterson, using unreasonable and excessive force, and filing a false police report to conceal his criminal activity, U.S. Attorney Craig Carpenito announced.
Police Officer Daniel Pent, 32, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with conspiracy to violate individuals’ civil rights, using unreasonable and excessive force in violation of individuals’ civil rights, and filing a false police report.
According to documents filed in this and other cases and statements made in court:
Pent, along with Paterson police officers Eudy Ramos, Jonathan Bustios, Matthew Torres, Frank Toledo, and others, stopped and searched motor vehicles, without any justification, and stole cash and other items from the occupants. Pent and the other officers also stopped and searched individuals on the streets of Paterson, and illegally took their money. Pent and other officers arrested individuals in Paterson, seized cash from those individuals during the arrests, and split the cash proceeds among themselves. They covered up their criminal activity by filing false police reports. Pent admitted to the following illegal conduct:
• On Feb. 1, 2017, Pent and Ramos stopped and searched a vehicle in Paterson. They stole approximately $10,000 from the passenger of the vehicle and split it between themselves. Ramos and Pent then submitted an incident report to the Paterson Police Department in which they intentionally omitted any mention of the $10,000 theft.
• On May 27, 2016, Pent and Ramos arrested an individual, stole several hundred dollars in cash from the individual, and filled out a false currency seizure report that under-reported the amount of money the individual actually possessed. Pent and Ramos then applied a forged signature of the individual to the report to make it appear as though the individual had seen and agreed to the amount on the report.
While on official duty, Pent also routinely used unreasonable and excessive force in his encounters with individuals in Paterson, causing them bodily harm, including:
• Pent and other officers routinely delivered a “running tax” to individuals they arrested. If an individual ran from them, Pent and others would “tax” the individual by striking the individual multiple times, causing bodily injury.
• On Jan. 20, 2015, Pent and Ramos received a call regarding loud music coming from a vehicle on Doremus Avenue in Paterson. Pent and Ramos approached the individual in the vehicle, removed him from the vehicle and punched and kicked him. The individual suffered injuries, including eye injuries, as a result of Pent’s and Ramos’ excessive force.
The conspiracy to violate civil rights and the deprivation of civil rights charges each carry a maximum penalty of 10 years in prison. The false records count carries a maximum penalty of 20 years in prison. The maximum fine for each count is $250,000. Pent's sentencing is scheduled for Jan. 14, 2020.
Bustios pleaded guilty in December 2018 to conspiring to deprive individuals of their civil rights and to extortion under color of official right. He is awaiting sentencing. Torres pleaded guilty in May 2019 to conspiring to deprive individuals of their civil rights and to filing a false police report. His sentencing is scheduled for Nov. 20, 2019. Toledo pleaded guilty in July 2019 to conspiring to deprive individuals of their civil rights, to using unreasonable and excessive force against individuals in Paterson, and to filing a false police report. His sentencing is scheduled for Oct. 22, 2019. Ramos pleaded guilty on Sept. 9, 2019, to conspiring to deprive individuals of their civil rights, to using unreasonable and excessive force against individuals in Paterson, and to filing a false police report. His sentencing is scheduled for Jan. 8, 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. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
Defense counsel: Michael Calabro Esq., Newark
Passaic County Man Charged with Kidnapping Minor and Transporting Her to Ohio to Engage in Sexual ActivityRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man has been charged by indictment with kidnapping a 15-year-old girl and transporting her to Ohio, as well as with being in the United States illegally after previously being deported, U.S. Attorney Craig Carpenito announced.
Juan Carlos Morales-Pedraza, 33, of Paterson, New Jersey, was charged in a superseding indictment with one count of kidnapping, one count of transportation of a minor, and one count of re-entry of removed aliens. He was arraigned today before U.S. District Judge Stanley R. Chesler in Newark federal court and pleaded not guilty.
According to the superseding indictment:
From April 14, 2019, through April 16, 2019, the defendant unlawfully abducted “Victim 1” in New Jersey and transported her to Ohio, with the intent that she engage in sexual activity for which a person can be charged with a criminal offense. At the time of these crimes, the defendant was in the country illegally, after having been removed from the United States in 2010.
The count of kidnapping carries a maximum penalty of life in prison, a minimum penalty of 20 years in prison, and a $250,000 fine. Transportation of minors carries a maximum penalty of life in prison, a minimum penalty of 10 years in prison, a $250,000 fine, and mandatory restitution. Re-entry of removed aliens carries a maximum penalty of two years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents with FBI Newark’s Child Exploitation Human Trafficking Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie; the Passaic County Prosecutor’s Office’s Sexual Investigations Unit, under the direction of Prosecutor Camelia M. Valdes; and investigators with the Ohio State Highway Patrol and the Lake Township Police Department in Lake Township, Ohio with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime and Drug Enforcement Task Force in Newark.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guiltyDefense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Hudson County Public Official Admits Accepting Bribes for Patient ReferralsRead the Press Release
NEWARK, N.J. – A Jersey City woman employed by the Hudson County Office of Aging today admitted accepting bribes for referring patients in need of home health care aides, U.S. Attorney Craig Carpenito announced.
Myrtha Nicolas, 61, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Katherine Hayden in Newark federal court to an information charging her with one count of extortion under color of official right.
According to documents filed in this case and statements made in court:
The Hudson County Office on Aging is an agency of the N.J. Division of Disability Services (DDS) in the Department of Human Services. The DDS works to streamline access to services and information designed to promote and enhance independent living for individuals with disabilities. Included among these services coordinated by DDS were Managed Long Term Services and Supports (MLTSS), which provide comprehensive service and support, whether for an individual living at home, in an assisted living facility, or a nursing home.
Nicolas was employed as a referral coordinator at the Hudson County Office on Aging. She exercised control over the coordination and assignment of patients with disabilities in need of home health care services to home health care companies which provide these services through home health care aides.
In June of 2016, Nicolas was approached by a confidential witness (CW), who was a self-employed executive of a home health care company that provided various services, including the training, hiring and assignment of home health care aides to patients with disabilities. Nicolas agreed to help refer patients to the CW and agreed to accept $500 dollars per patient she referred to the CW’s company.
On Aug. 4, 2016, Nicolas accepted a payment of $600 for the referral of a patient. The CW complained that the CW was forced to redirect the patient to another health care company because the patient proved difficult, prompting Nicolas to assure the CW that the CW “will get the easy ones,” in the future. On Jan. 23, 2017, Nicolas accepted another $600 cash payment for a patient referral. Nicolas confirmed that she had previously received gift cards from the CW, but expressed no preference whether future payments from the CW in exchange for patient referrals would be in cash or gift cards. On Oct. 17, 2017, Nicolas accepted a final corrupt payment of $1,000 from the CW for patient referrals, promising the CW that in terms of future patients, “whatever I have, you’ll have.”
The extortion under color of official right charge carries a maximum potential penalty of up to 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss. Sentencing is scheduled for Jan. 15, 2020.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Mark J. McCarren, of the Special Prosecutions Division in Newark.
Bergen County Man Admits Money LaunderingRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted conspiring to launder the proceeds of narcotics activity, U.S. Attorney Craig Carpenito announced.
Bobbie L. Henderson III, 36, of Edgewater, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of conspiracy to launder monetary instruments.
According to the documents filed in this case and statements made in court:
From 2017 through May 23, 2019, Henderson conspired with others to launder the proceeds of narcotics distribution, with the intent to promote the distribution of narcotics. Henderson further admitted possessing more than $850,000 in furtherance of this conspiracy. These funds were seized by law enforcement during the course of the investigation.
Conspiracy to launder monetary instruments is punishable by a maximum potential penalty of 20 years in prison and a $500,000 fine, or twice the value of the property involved in the transaction, whichever is greater. Sentencing is scheduled for Jan. 8, 2020.
U.S. Attorney Carpenito credited the Drug Enforcement Administration’s New York Division, under the direction of Special Agent in Charge Ray Donovan, with the investigation. Today’s guilty plea is the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force (OCDETF) and the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA). 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 Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA, the New York City Police Department, the New York State Police, Immigration and Customs Enforcement – Homeland Security Investigations, the U. S. Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, the U.S. Marshals Service, New York National Guard, the Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime and Drug Enforcement Task Force.
Defense counsel: Scott E. Leemon Esq., New York
Second Employee in Cash Flow Partners Bank Fraud Conspiracy Charged in Multimillion-Dollar Loan SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman has been charged for her role in a conspiracy that involved the creation of false documentation to secure over $4 million dollars in bank loans, U.S. Attorney Craig Carpenito announced.
Jennie Frias, a/k/a “Jennie Castillo,” 36, of Englewood, New Jersey, was charged by complaint with one count of conspiracy to commit bank fraud. Frias had her initial appearance Sept. 25, 2019, before U.S. Magistrate Judge James B. Clark III in Newark federal court and was released on a $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Between March 2016 and May 2018, Cash Flow Partners LLC, a business consulting firm with offices in New York and New Jersey, released internet advertisements and held seminars offering to assist customers in obtaining bank loans, including loans insured by the Federal Deposit Insurance Corporation (FDIC). When customers submitted documentation supporting their bank loan applications to Cash Flow Partners, Frias and others created false documentation to make customers’ loan applications appear more financially viable than they actually were. Employees in Cash Flow’s “File Building Department” falsified payroll records by including fictitious financial and employment information, such as fake jobs, on template payroll forms and IRS tax forms. Then, employees in Cash Flow’s “Funding Department,” of which Frias became director, took steps to pose as the loan applicants when communicating with the victim banks. For example, Funding Department employees remotely controlled computers located at the homes of the loan applicants to submit documents to the banks. Funding Department employees also took possession of the loan applicants’ cell phones and communicated with the banks posing as the loan applicants. The victim banks sustained losses of over $4 million.
One of Frias’ conspirators, Raymundo Torres, pleaded guilty Sept. 24, 2019, to charges relating to his role in the Cash Flow bank fraud conspiracy.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
U.S. Attorney Carpenito credited special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio of the Economic Crimes Unit and J. Stephen Ferketic of the U.S. Attorney’s Office Opioids Unit in Newark.
The charge and allegations against Frias are merely accusations, and she is presumed innocent unless and until proven guilty.
Defense counsel: John D. Arseneault Esq. and John J. Roberts Esq., Chatham, New Jersey
Repeat Offender Sentenced to 21 Years in Prison for Distributing Child Pornography While on Federal Supervised ReleaseRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced to 252 months in prison for distributing images of child sexual abuse and violating the conditions of his supervised release imposed in connection with a previous child pornography conviction, U.S. Attorney Craig Carpenito announced today.
Barnaby Hewsen, 45, formerly of Pennsauken, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of distributing child pornography as well as a petition charging him with violating the conditions of federal supervised release by committing another crime while under supervision. Judge Hillman imposed the sentence Sept. 26, 2019, in Camden federal court.
According to documents filed in this case and statements made in court:
In May 2017, Hewsen uploaded to a website three images that showed infants being sexually abused. On June 2, 2017, law enforcement officers conducted a search of Hewsen’s residence and discovered seven videos and 373 images on his computer, many of which depicted prepubescent children, some as young as newborns, being sexually abused and in some instances bound and assaulted. During the investigation that followed, officers also discovered stories on Hewsen’s computer that carefully detailed fantasies about kidnapping, molesting, and defiling young babies and infants. Some of the stories appeared to be authored by Hewsen himself. Hewsen took these actions while on federal supervised release for his previous federal conviction for possessing child pornography.
In addition to the prison term, Judge Hillman sentenced Hewsen to lifetime supervised release
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael; and the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: Richard Sparaco Esq., Cherry Hill, New Jersey
Paterson Felon Arrested for Trafficking and Unlawfully Possessing FirearmsRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man with a prior felony conviction has been arrested for illegally selling 11 firearms for over $8,000, U.S. Attorney Craig Carpenito announced.
Floyd Henry, a/k/a “HK,” 34, was arrested Sept. 25, 2019, on a complaint charging him with one count of illegally engaging in the business of dealing in firearms and three counts of possession of firearms by a convicted felon. Henry had his initial appearance Sept. 26, 2019, before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.
According to documents filed in this case and statements made in court:
From July 15, 2019, through Sept. 20, 2019, Henry engaged in the business of dealing firearms while not being a federally licensed importer, licensed manufacturer, or licensed dealer. On at least three occasions, Henry sold a total of two semi-automatic rifles, two revolvers, and seven semi-automatic pistols for over $8,000.
Each of the three counts of being a felon in possession of a firearm carries a maximum potential penalty of up to 10 years in prison. The charge of engaging in the business of dealing firearms, while not being a federally licensed importer, licensed manufacturer, or licensed dealer carries a maximum potential penalty of up to five years in prison.
U.S. Attorney Carpenito credited special agents of the ATF under the direction of Special Agent in Charge Charlie J. Patterson; officers with the Passaic County Sherriff’s Office, under the direction of Sheriff Richard H. Berdnik; the Passaic County Prosecutor’s Office under the direction of Prosecutor Camelia Valdes; and the N.J. State Police under the direction of Col. Patrick J. Callahan, with the investigation leading to Henry’s arrest.
ATF’s National Tracing Center (NTC) supported this case. The NTC is the country’s only crime gun tracing center, and functions to provide accurate and timely trace information about the purchaser of a recovered firearm. ATF special agents and intelligence research specialists analyze this information to identify individuals engaged in unlicensed dealing of firearms, to include those who straw purchase firearms, which are often later recovered from the hands of convicted felons.
The government is represented by Assistant U.S. Attorney Christopher D. Amore of the Organized Crime and Gangs Unit in the U.S. Attorney’s Office in Newark.
Defense counsel: Peter Carter Esq., Assistant Federal Public Defender, Newark
Passaic County Private Jet Pilot Sentenced to 13 Years in Prison for Cocaine Trafficking, Money Laundering, and StructuringRead the Press Release
TRENTON, N.J. – A Passaic County, New Jersey, man was sentenced today to 156 months in prison for trafficking hundreds of kilograms of cocaine into New Jersey and New York and then laundering over $10.2 million in cash drug proceeds, U.S. Attorney Craig Carpenito announced.
Khamraj Lall, 52, of Ringwood, New Jersey, was found guilty previously by a federal jury in Trenton of all eight counts of a superseding indictment, including counts charging him with conspiracy to distribute cocaine, money laundering, structuring monetary instruments, and conspiracy to commit money laundering and structuring. U.S. District Judge Anne E. Thompson imposed the sentence today in Trenton federal court.
According to documents filed in the case and the evidence at trial:
From April 2011 through November 2014, Lall, a private pilot, smuggled hundreds of kilograms of cocaine from Guyana to New Jersey and New York on his privately owned jet aircraft and then laundered the proceeds.
Lall, who owed a private jet charter business called Exec Jet Club based in Gainesville, Florida, used the proceeds of his cocaine empire to purchase jet planes, houses, and cars. He also paid over $2 million in cash stuffed into suitcases to a Florida contractor to build an airplane hangar in Guyana.Over a 3-½ year period, Lall also made (or had others make) 1,287 cash deposits totaling approximately $7.5 million into more than 20 different bank accounts in New Jersey and New York, much of it in $20 bills. In order to avoid detection and circumvent bank reporting laws, all 1,287 deposits were for amounts less than $10,000.
In November 2014, Lall was flying one of his jets from the U.S. to Guyana and stopped in Puerto Rico to refuel. An outbound search of the plane uncovered $470,000 in cash stuffed into a suitcase hidden in the tail of the plane, and another $150,000 in cash hidden under a seat.
In addition to the prison term, Judge Thompson sentenced Lall to five years of supervised release. The Court previously ordered Lall to forfeit his interest in two jet airplanes, two airplane hangars, multiple properties, a Lexus SUV, among other property traceable to his crimes. The Court also entered a money judgment against Lall for $9.3 million.
U.S. Attorney Carpenito credited special agents and task force officers of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; the Morristown, New Jersey, police department, under the direction of Chief Peter Demnitz; special agents and staff of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) under the direction of Special Agent in Charge Brian Michael; the Drug Enforcement Administration-Rochester, New York, under the direction of Special Agent in Charge James J. Hunt; the Federal Aviation Administration, Law Enforcement Assistance Program; and U.S. Customs and Border Protection Air and Marine Operations Center under the direction of Richard T. Booth, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jonathan M. Peck and Thomas S. Kearney of the Criminal Division in Newark.
Defense counsel: Jason J. Leboeuf Esq., Livingston, New Jersey
Former Carpenters’ Benefit Plan Administrator Indicted on Fraud ChargesRead the Press Release
NEWARK, N.J. – The former administrative manager of the United Brotherhood of Carpenters (Carpenters Union) New Jersey/New York benefit funds was indicted today by a federal grand jury for defrauding the funds of more than $1.5 million, U.S. Attorney Craig Carpenito announced.
George R. Laufenberg, 69, of Harvey Cedars, New Jersey, is charged in a five-count indictment with embezzlement of pension funds, embezzlement of deferred compensation payments, embezzlement of excess annuity fund contributions, conspiracy to embezzle with a “low-show” employee, and making a false statement in an annual financial report. He will be arraigned before a U.S. District Court Judge at a later date.According to the indictment:
Laufenberg is the former administrative manager of the New Jersey Carpenter’s Pension, Annuity, Health and Training/Apprenticeship Funds. He allegedly stole from the benefit plans by using his authority to self-deal and benefit himself with unapproved and improper distributions from pension and annuity funds. He also filed a false U.S. Department of Labor Form 5500 in which he denied he was improperly diverting annuity contributions into his paycheck.
Laufenberg, who earned an annual salary of approximately $300,000, is charged with using his authority to unilaterally grant himself a $120,000 pension and $180,000 in annual deferred compensation, without retiring, or without giving notice or receiving approval from the funds’ board of trustees. He is also charged with diverting into his paycheck monthly annuity contributions, contrary to IRS regulations. Laufenberg also used his authority to grant a personal friend, who was a low-show employee at the funds, a full salary with a pension, annuity contributions and full health care coverage.
The maximum penalty for each count is five years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited the investigators of the Department of Labor (DOL), Employee Benefit Security Administration (EBSA), under the supervision of Darren Cohen, Regional Director; special agents of the DOL Office of the Inspector General (OIG) under the supervision of Special Agent in Charge Michael Mikulka; and the agents of the Port Authority of New York/New Jersey, under the supervision of Inspector General Michael Nestor, with the investigation leading to today’s indictment.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Offices’ Organized Crime/Gangs Unit.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Peter W. Till Esq., Springfield Township, New Jersey
Thirty-One Defendants Charged in Takedown of Two Separate Burlington County Drug Trafficking OrganizationsRead the Press Release
Twenty-eight Arrests Made in Coordinated Takedown by Federal and State Law Enforcement
TRENTON, N.J. – Federal criminal charges have been filed against 31 individuals for their roles as members, associates, and suppliers of multiple drug-trafficking conspiracies that distributed cocaine, crack cocaine, and heroin in the Burlington County, New Jersey, area, U.S. Attorney Craig Carpenito announced today.
Twenty-eight defendants were arrested today, one was already in state custody, and two remain at large. Those arrested today are scheduled to have their initial appearances this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court. (See chart below.)
The first complaint charges 20 defendants in two overlapping drug conspiracies involving the distribution of cocaine and crack cocaine in the Burlington County area. This organization is allegedly operated by Herbert Mays of Willingboro, New Jersey.
The second complaint charges 12 defendants with three interrelated drug conspiracies involving the distribution of cocaine, crack cocaine, and heroin. Talib Conway of Philadelphia is described in the complaint as a leading member of this organization. One defendant, Teron Huggins, is charged in both complaints.
“The defendants charged in this case were responsible for moving large quantities of dangerous drugs through the streets of Burlington County and elsewhere,” U.S. Attorney Carpenito said. “Taking this number of people off the street required a massive and coordinated effort by our office and other federal and state law enforcement organizations. These arrests should go a long way toward making our streets safer.”
“The success of today’s operation is largely attributed to the close working relationship between federal, state, and local law enforcement,” FBI Special Agent-in-Charge Gregory W. Ehrie, Newark, said. “This collaborative effort to address violent, drug traffickers within our local communities is just one example of how highly the FBI values its partners. To them, I would like to say ‘thank you’ for trusting us, lending their support, and playing a critical role making our community safer. To the criminal element that escaped arrest this time around – know that we aren't finished.”
“Today's arrests are a testament to ATF's commitment to stand with our local, state, and federal partners to expend every resource available to make our communities safer,” ATF Special Agent in Charge Charlie J. Patterson said. “Arresting criminals that contribute to the violence in our communities will continue to be ATF's top priority.”
According to the documents filed in this case and statements made in court:
Between July 2019 and September 2019, the defendants and others engaged in multiple and overlapping narcotics conspiracies that operated primarily throughout Burlington County – including Willingboro, Burlington City, Burlington Township, Bordentown Township, Edgewater Park, Pemberton and Mount Laurel – and which sought to profit from the distribution of cocaine, crack cocaine, and heroin. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, and other investigative techniques, law enforcement learned that defendants obtained regular supplies of cocaine from conspirators in the Philadelphia area, then redistributed that cocaine, portions of which defendants converted into crack cocaine, to distributors, sub-dealers, and end-users throughout Burlington County and elsewhere. During the wiretap portion of the investigation, law enforcement intercepted numerous communications among the conspirators discussing cocaine, crack cocaine, and heroin quality and availability, pricing, packaging, quantity, and customer satisfaction.
The counts of conspiracy to distribute at least five kilos of cocaine carry a maximum penalty of life in prison and a fine of $1 million. The counts of conspiracy to distribute 280 grams or more of crack cocaine carry a maximum potential penalty of life in prison, and a maximum fine of $10 million. The counts of conspiracy to distribute 100 grams or more of heroin carry a maximum penalty of 40 years in prison and a fine of $5 million. The counts of conspiracy to distribute 28 grams or more of crack cocaine carry a maximum potential penalty of 40 years in prison and a fine of $5 million.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of ATF, under the direction of Special Agent in Charge Charlie J. Patterson; detectives of the Burlington County Prosecutor’s Office, under the direction of Burlington County Prosecutor Scott Coffina; officers of the Burlington Township Police Department, under the direction of Director of Public Safety Bruce Painter; officers of the Willingboro Police Department, under the direction of Director of Public Safety Kinamo Lomon; officers of the Burlington City Police Department, under the direction of Chief of Police John Fine; officers of the Florence Police Department, under the direction of Chief of Police Brian Boldizar; officers of the Bordentown Township Police Department, under the direction of Chief of Police Brian Pesche; officers of the Edgewater Park Police Department, under the direction of Chief of Police Robert Hess; officers of the Mount Laurel Police Department, under the direction of Chief of Police Stephen Reidener; officers of the Ewing Police Department, under the direction of Chief of Police John Stemler; officers of the Westampton Police Department, under the direction of Chief of Police Stephen Ent; officers of the Trenton Police Department, under the direction of Director Sheilah Coley, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Martha K. Nye and Ray Mateo of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
*denotes at large
NAME
AGE
RESIDENCE
CHARGE
Herbert Mays
62
Willingboro, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Andre Morton
37
Lower Makefield Township, PA
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Ronnie Dawson
34
Edgewater Park, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Teron Huggins
42
Mount Laurel, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Rufus Williams
44
Eastampton, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Gurnsey Flagg
61
Burlington, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Roniffe Gaines
36
Willingboro, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
John Petrovich
55
Burlington, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Linford Johnson
42
Willingboro, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Nathaniel McCoy
52
Darby, PA
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Anthony Pruitt
46
Edgewater Park, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Shameke Fowler
30
Willingboro, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Julius Thigpen
57
Philadelphia, PA
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Andre Perkins
(already in state custody)
37
Edgewater Park, NJ
Count one:
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
Count two:
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Brandon Watts
32
Burlington City, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than five kilograms grams of cocaine
*Craig Moore
46
Wilmington, NC
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Tracy Williams
57
Mount Holly, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Samatha Bohlert
48
Mount Holly, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Mecca Grant
33
Burlington, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
April Branson
26
Willingboro, NJ
Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine
Talib Conway
39
Philadelphia, PA
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Teron Huggins
42
Mount Laurel, NJ
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Jerrod Epps
35
Medford, NJ
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Michael Linares
35
Mansfield, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Allan Simeon
39
Browns Mills, NJ
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Joaquin Simeron
36
Westampton, NJ
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Jamarl Simeron
39
Delanco, NJ
Count Two:
Conspiracy to Distribute or Possess with Intent to Distribute a detectable amount of cocaine
Jawan Paxton
23
Burlington City, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Andre Williams
20
Browns Mills, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
*Rasheed Pollard
33
Pemberton, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Cemal Wood
31
Pemberton, NJ
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Donte Snow
31
Pemberton, NJ
Count One:
Conspiracy to Distribute or Possess with Intent to Distribute more than 100 grams of heroin
Count Three:
Conspiracy to Distribute or Possess with Intent to Distribute more than 28 grams of crack cocaine
Prime Contractor Employee at U.S. Military Bases Sentenced to 28 Months in Prison for $1.4 Million Fraud and Taking KickbacksRead the Press Release
NEWARK, N.J. – A Pennsylvania man employed as a regional manager for a contractor involved with construction projects at Picatinny Arsenal (PICA) and at Joint Base McGuire-Dix- Lakehurst (Ft. Dix) was sentenced today to 28 months in prison for his role in a fraud scheme that caused losses of $1.4 million, U.S. Attorney Craig Carpenito announced.
James Conway, 48, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of wire fraud and one count of accepting unlawful kickbacks. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From September 2009 to August 2015, Conway secretly owned a company called Walsh Construction Services, LLC (Walsh Construction), which purported to provide construction services. Using his position as regional manager for a construction contractor, Conway steered subcontracts to Walsh Construction for jobs at PICA and Ft. Dix. To conceal his ownership of Walsh Construction, Conway signed the subcontracts as Keith Walsh, the purported owner or vice president of Walsh Construction. There was, in fact, no person by that name who owned or was the vice president of Walsh Construction.
Conway used Walsh Construction to obtain payments from the construction contractor by submitting invoices and bills on behalf of Walsh Construction for work purportedly performed at PICA and Ft. Dix. Many of the invoices and bills included charges for work that Walsh Construction only partially did, or for work that was not performed at all by Walsh Construction, causing losses of $1.4 million.
Conway also accepted kickbacks totaling $180,345, from four subcontractors who served as subcontractors to the contractor on various construction projects at PICA and Ft. Dix knowing that the subcontractors expected, in return, to obtain favorable treatment from Conway.
In addition to the prison term, Judge Wigenton sentenced Conway to three years of supervised release and ordered him to pay $1.4 million in restitution.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s guilty sentencing.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz and Assistant U.S. Attorney Mark McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Federal Health Care Fraud Takedown in Northeastern U.S. Results in 54 Defendants Charged and ConvictedRead the Press Release
NEWARK, N.J. – The Justice Department today announced a coordinated health care fraud enforcement action across seven federal districts in the Northeastern United States, involving more than $800 million in losses and the distribution of over 3.25 million pills of opioids in “pill mill” clinics and doctors’ offices. The takedown includes new charges and convictions by guilty plea against 54 defendants for their roles in submitting nearly $800 million in fraudulent claims made to federal payers, including 15 doctors or medical professionals, and 24 defendants are charged for their roles in diverting opioids.
The cases prosecuted by this Office in connection with the takedown reflect all of the different facets of our health care and opioids work. Doctors, marketing executives, pharmacists, and the owners and operators of a genetic testing laboratory have been charged with, or have plead guilty to a range of criminal conduct, including: the criminal prescription of highly-addictive opioid pills to patients with no medical need, the paying of kickbacks and other fraud related to unnecessary genetic testing, fraud and abuse in the compounded medicines business, and other crimes that victimize federal health care programs like Medicare and Medicaid, as well as patients across New Jersey who need medical care.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the District of New Jersey, Eastern District of Pennsylvania, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut, and District of Columbia. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS-Criminal Investigation, DOD-DCIS, FDA-OIG, the Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the operation.
The charges involve individuals contributing to the opioid epidemic, including medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.
Today’s arrests and guilty pleas come one-year after the Department of Justice announced the formation of the Newark/Philadelphia Regional MFSF, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as law enforcement partners. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss, and the illegal prescribing and distribution of opioids and other dangerous narcotics.
“Rooting out and prosecuting abuses within our health care system is a top priority for my office,” Craig Carpenito, U.S. Attorney for the District of New Jersey, said. “In New Jersey, these illegal activities run the gamut from over-prescribing dangerous opioids, to running pharmacies improperly, to mis-prescribing unnecessary medications, to tricking patients – often the elderly or vulnerable – into seeking expensive genetic testing or compounded prescriptions they don’t need. Today’s message should be clear: We are dedicated to combatting all forms of illegal activity in the health care arena. If you put patients’ health at risk with criminal intent, you will be dealt with as a criminal.”
“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”
“The FBI does not care about your status in life, your professional standing, your level of income, or your personal connections when you break the law,” Assistant Special Agent in Charge Wayne Jacobs of the FBI’s Newark Field Office said. “If you try to scam the system, if you exploit your professional license just to pad your pockets, if you mortgage your morals just to inflate your bank account, you will only find yourself in deeper debt. We are committed to protecting the public; we are intent on rooting out fraud and corruption; we are duty-bound to track down and arrest anyone who is breaking our federal laws. Don’t be next.”
*********
Among those charged in the District of New Jersey are the following:
Two Doctors Mis-Prescribing Opioids
• Evangelos Megariotis, 66, of Clifton, New Jersey, an orthopedic surgeon who owns and operates Clifton Orthopedic Associates in Clifton, New Jersey. Megariotis was charged by complaint with prescribed large amounts of controlled substances, such as oxycodone, Percocet, Xanax, and promethazine with codeine outside the usual course of medical practice and without a legitimate purpose. He wrote these allegedly illegal prescriptions to patients he knew were abusing opioids. In two years, Megariotis allegedly prescribed more than 1.4 million tablets of oxycodone and over 450 gallons of promethazine with codeine cough syrup to his patients. The Government is represented by Assistant U.S. Attorney Erica Liu, Deputy Chief of the Criminal Division.
• Joseph Santiamo, 64, of Staten Island, New York, a doctor who specialized in geriatric care, was charged by complaint with prescribing powerful opioids to patients he knew were addicted. According to the complaint, Santiamo also solicited sexual favors from some patients in return for writing them an opioid prescription. In a recorded statement to agents, Santiamo admitted he knew his prescriptions were being abused, but kept writing them anyway. Just twenty of Santiamo’s patients allegedly received more than 100,000 oxycodone pills for no legitimate medical purpose. The Government is represented by Assistant U.S. Attorney Brian Urbano of the Criminal Division.
Ex-Sales Rep. Committing Compounding Fraud:
• Kent Courtheyn, of Kent, Ohio, a former medical device sales representative, indicted for his alleged role in marketing compounded (i.e. customized) medicines to patients who didn’t need them. Courtheyn allegedly steered prescriptions for these expensive compounded medications to his conspirators, and took a cut for his role. The indictment alleges that the scheme caused at least $10 million in losses to participating health care plans, at least $3.5 million of which was paid by TRICARE, the federal program that pays for health care services for veterans. The Government is represented by Assistant U.S. Attorney Erica Liu, Deputy Chief of the Criminal Division.
PrimeAid Pharmacy Indictment:• Yana Shtindler, 44, and Samuel “Sam” Khaimov, 47, both of Glen Head, New York; Alex Fleyshmakher, 33, of Morganville, New Jersey; and Ruben Sevumyants, 36, of Marlboro, New Jersey, charged by indictment. From 2009 through August 2017, Prime Aid Pharmacies (located in Union City, New Jersey and Bronx, New York) engaged in a slew of fraudulent activities including: (a) paying illegal bribes and kickbacks to doctors and doctors’ employees in exchange for prescription referrals to Prime Aid; (b) billing health insurance providers for medications that were never actually provided to patients; and (c) opening new pharmacies and concealing the true ownership of those pharmacies to obtain lucrative contracts they otherwise would not have obtained. The scheme of billing for medications that were never dispensed to patients was so egregious that Prime Aid received reimbursement payments of over $65 million for prescription medications that it never even ordered from distributors or had in stock. In total, Prime Aid’s multiple schemes defrauded Medicare, Medicaid, and private insurers out of at least $99 million. The Government is represented by Assistant U.S. Attorneys Joshua L. Haber and Jason Gould of the Criminal Division.
Empire Pharmacy Criminal Complaint:
• Eduard “Eddy” Shtindler, 36, of Paramus, New Jersey, charged by complaint with conspiracy to commit health care fraud and conspiracy to pay illegal kickbacks to a doctor. From 2012 through at least 2017, Shtindler owned and operated Empire Pharmacy in West New York, New Jersey. For most of that time, Shtindler allegedly paid bribes to a psychiatrist in Hudson County, New Jersey, to induce the doctor to send prescriptions to Empire. On occasion, Shtindler secreted cash bribes in pill bottles that were delivered to the doctor. In exchange for these bribes, the doctor steered patients to Empire pharmacy. In addition, starting in 2015, Empire – at Shtindler’s direction – perpetrated a fraudulent scheme to induce doctors to send expensive specialty medication prescriptions to Empire. Specialty medications often required “prior authorization” before being approved for reimbursement by Medicare, Medicaid, and some private insurance providers. To receive prior authorization approval more quickly and successfully than any other pharmacies, Empire employees, including two pharmacists, repeatedly falsified prior authorization forms for medications for various conditions, including psoriasis and Hepatitis C. In total, Empire defrauded Medicare and Medicaid out of at least $2 million. The Government is represented by Assistant U.S. Attorney Joshua L. Haber of the Criminal Division.
Ark Labs Genetic Testing Indictment:
• Dr. Matthew S. Ellis, 53, of Gainesville, Florida; Edward B. Kostishion, 59, of Lakeland, Florida; Kyle D. Mclean, 36, of Arlington Heights, Illinois; Kacey C. Plaisance, 38, of Altamonte Springs, Florida; Jeremy Richey, 39, of Mars, Pennsylvania; and Jeffrey Tamulski, 46, of Tampa, Florida. Kostishion, Plaisance, and Richey operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health, Inc., a company that McLean operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. Ellis, a physician based in Gainesville, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and various other states where Ellis was not licensed to practice medicine. Through this process, Ellis, Kostishion, Plaisance, and McLean submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in many cases, contained false information indicating that a patient had a personal or family history of cancer, when, in fact, the patient had no cancer history whatsoever. In 2018 alone, Medicare paid clinical laboratories at least approximately $4.6 million for genetic tests that Ellis ordered in this manner. In addition, Kostishion, Plaisance, Richey, and Tamulski entered into kickback agreements with certain clinical laboratories under which the laboratories would pay Ark a bribe in exchange for delivering DNA samples and orders for genetic tests. The bribe payments were based on the percentage of Medicare revenue that the laboratories received in connection with the tests. Among other things, Kostishion, Plaisance, Richey, and Tamulski concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received. In 2018, the clinical laboratories paid Ark at least approximately $1.8 million in bribes. The Government is represented by Assistant U.S. Attorney Bernard Cooney of the Criminal Division.
Doctor Pleads Guilty in Compounding Case
• Bernard Ogon M.D., 46, of Burlington, New Jersey, pleaded guilty on September 25, 2019 to one count of health care fraud conspiracy for his participation in a vast compounded medication telemedicine conspiracy. As part of the conspiracy, Ogon admittedly signed prescriptions for compounded medications (that is, medications with ingredients of a drug tailored to the needs of a particular patient) without having established a doctor-patient relationship, spoken to the patient or conducting any medical evaluation. Ogon often signed preprinted prescription forms—with patient information and medication already filled out—where all that was required was his signature. Then, instead of providing the prescription to the patient, Ogon would return the prescriptions to specific compounding pharmacies involved in the conspiracy. Ogon was paid $20 to $30 for each prescription he signed, and his participation in the conspiracy caused losses to health care benefit programs of over $24 million, including losses to government health care programs of over $7 million. The Government is represented by Assistant U.S. Attorney Jason Gould of the Criminal Division.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
U.S. Attorney Carpenito also thanked special investigators from his office for their work on these cases.
A complaint, information or indictment is merely an accusation, and all defendants are presumed innocent until and until proven guilty.
Additional New Jersey Case Announced as Part of Federal Health Care Fraud Takedown in Northeastern U.S.Read the Press Release
NEWARK, N.J. – The Justice Department today announced a coordinated health care fraud enforcement action across seven federal districts in the Northeastern United States, involving more than $800 million in losses and the distribution of over 3.25 million pills of opioids in “pill mill” clinics and doctors’ offices. The takedown includes new charges and convictions by guilty plea against 54 defendants for their roles in submitting nearly $800 million in fraudulent claims made to federal payers, including 15 doctors or medical professionals, and 24 defendants are charged for their roles in diverting opioids.
Attorney for the United States Rachael A. Honig said the cases prosecuted by this Office in connection with the takedown reflect all of the different facets of the office's health care and opioids work. Doctors, marketing executives, pharmacists, and the owners and operators of a genetic testing laboratory have been charged with, or have plead guilty to a range of criminal conduct, including: the criminal prescription of highly-addictive opioid pills to patients with no medical need, the paying of kickbacks and other fraud related to unnecessary genetic testing, fraud and abuse in the compounded medicines business, and other crimes that victimize federal health care programs like Medicare and Medicaid, as well as patients across New Jersey who need medical care.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the District of New Jersey, Eastern District of Pennsylvania, Western District of Pennsylvania, Eastern District of New York, Western District of New York, District of Connecticut, and District of Columbia. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS-Criminal Investigation, DOD-DCIS, FDA-OIG, the Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the operation.
The charges involve individuals contributing to the opioid epidemic, including medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the Centers for Disease Control, approximately 115 Americans die every day of an opioid-related overdose.
Today’s arrests and guilty pleas come one-year after the Department of Justice announced the formation of the Newark/Philadelphia Regional MFSF, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section, the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as law enforcement partners. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss, and the illegal prescribing and distribution of opioids and other dangerous narcotics.
“Physicians and other medical professionals who fraudulently bill our federal health care programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care. The medical professionals and others engaging in criminal behavior by peddling opioids for profit continue to fuel our nation’s drug crisis,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to use every tool at our disposal, including data analytics and traditional law enforcement techniques, to investigate, prosecute, and punish this reprehensible behavior and protect federal programs from abuse.”
“The FBI does not care about your status in life, your professional standing, your level of income, or your personal connections when you break the law,” Assistant Special Agent in Charge Wayne Jacobs of the FBI’s Newark Field Office said. “If you try to scam the system, if you exploit your professional license just to pad your pockets, if you mortgage your morals just to inflate your bank account, you will only find yourself in deeper debt. We are committed to protecting the public; we are intent on rooting out fraud and corruption; we are duty-bound to track down and arrest anyone who is breaking our federal laws. Don’t be next.”
Among those charged in the District of New Jersey are the following:
- Aaron Williamsky 59, of Marlboro, New Jersey, and Nadia Levit, 40, of Englishtown, New Jersey, owners of approximately 25 durable medical equipment companies, pleaded guilty on Sept. 18 and Sept. 25, respectively, for their participation in a health care fraud scheme related to their payment of kickbacks in exchange for doctors’ orders for medically unnecessary orthotic braces. Levit’s conduct admittedly caused losses in excess of $120 million and Williamsky’s conduct admittedly caused losses in excess of $170 million. Williamsky also pleaded guilty to a money laundering conspiracy related to his attempt to conceal at least $1.65 million of the proceeds of the fraud. The case was investigated by FBI, HHS-OIG, IRS-CI and special agents of the U.S. Attorney's Office. The case is being prosecuted by Assistant U.S. Attorneys J. Stephen Ferketic and Sean Sherman and of the District of New Jersey.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
A complaint, information or indictment is merely an accusation, and all defendants are presumed innocent until and until proven guilty.
Real Estate Agent Recruiter Charged with Fraud in Alleged Sales Commission Inflation SchemeRead the Press Release
NEWARK, N.J. – A real estate agent recruiter was arrested today on charges stemming from a scheme to inflate sales commissions, U.S. Attorney Craig Carpenito announced.
Russell Stinnett, 54, of Mt. Pleasant, South Carolina was indicted by a federal grand jury on Sept. 23, 2019, on five counts of wire fraud. He is scheduled to appear later today before U.S. Magistrate Judge Bristow Marchant in Charlestown, South Carolina, federal court. Stinnett will be arraigned in Newark federal court at a later date.
According to the indictment:
Between January 2017 and April 2019, Stinnett engaged in a scheme to misrepresent the sales value of real estate sold by agents that he recruited to work for the victim real estate company in order to boost his own commission payouts. Stinnett obtained sales data for the agents he recruited, then doctored the data to make it appear as if his recruits sold more real estate than they actually had. Stinnett then submitted the doctored sales data to his employer using his business email or a commission claim portal that was received and processed in New Jersey. Stinnett’s employer paid him commissions on sales that his recruits never actually made, resulting in a loss of approximately $1 million to his employer.
The five counts of wire fraud with which Stinnett is charged each carry a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ocean County Man Charged with Sexual Exploitation of Minor, Online Enticement of Minor and Receipt of Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was charged today with online enticement to produce, as well as receipt of, images of child sexual abuse, U.S Attorney Craig Carpenito announced.
Samuel Schwinger, 34, of Lakewood, New Jersey, is charged by complaint with one count each of sexual exploitation of a minor, online enticement of a minor to produce child pornography and receipt of child pornography. Schwinger is already in custody on state charges; his initial appearance will be scheduled for a later date.
According to documents filed in this case and statements made in court:
Schwinger met an underage girl through an online social media application while he purported to be an underage girl. Schwinger asked the girl to send him sexually explicit videos through the application and directed her to produce certain images in the videos. During his communications with the victim, Schwinger also sent her sexually explicit videos claiming to be the girl depicted in those videos.
The charge of online enticement carries a maximum statutory penalty of life in prison, a mandatory minimum prison sentence of 10 years and a maximum fine of $250,000. The charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. The receipt of child pornography 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 the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; and the Lakewood, New Jersey, Police Department under the direction of Chief Gregory Meyer with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Michelle Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Member of Bank Fraud Conspiracy Admits Role in Multimillion-Dollar Loan SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted participating in a scheme that involved the creation of false documentation to secure over $4 million in bank loans, U.S. Attorney Craig Carpenito announced.
Raymundo Torres, 35, of New York City, pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Between March 2016 and May 2018, Cash Flow Partners LLC, a business consulting firm with offices in New York and New Jersey, released internet advertisements and held seminars offering to assist customers in obtaining bank loans, including loans insured by the Federal Deposit Insurance Corporation (FDIC). When customers submitted documentation supporting their bank loan applications to Cash Flow Partners, Torres and others created false documentation to make customers’ loan applications appear more financially viable than they actually were. Employees at Cash Flow Partners falsified payroll records by including fictitious financial and employment information, such as fake jobs, on template payroll forms and IRS tax forms. Victim banks sustained losses of over $4 million.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Jan. 8, 2020.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
U.S. Attorney Carpenito credited special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Stephen Ferketic of the Opioids Unit and Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Joshua P. Cohn Esq., Saddle Brook, New Jersey
Atlantic City, New Jersey, Woman Charged with Drug Distribution Resulting in DeathRead the Press Release
NEWARK, N.J. – An Atlantic City, New Jersey, woman was indicted today on charges including drug distribution that resulted in a death, U.S. Attorney Craig Carpenito announced.
Rajeri Curry, 30, is charged by indictment with one count of distribution of heroin and fentanyl that resulted in a death, one count of conspiracy to distribute heroin and one count of possession with the intent to distribute heroin. Curry was charged by complaint in March 2019 and has been detained without bail.
According to documents filed in this case:
On June 1, 2018, Curry distributed a substance containing heroin and fentanyl to an individual who died as a result of using the substance. Law enforcement found the deceased victim inside a vehicle in the parking lot of an Atlantic City, New Jersey, restaurant. Inside the victim’s vehicle were multiple wax folds that contained heroin and fentanyl and were stamped with the words “BODY COUNT.” Shortly before the victim’s death, surveillance footage captured Curry distributing narcotics to the 30-year-old victim.
U.S. Attorney Carpenito credited special agents of the DEA’s Newark Office, under the direction of Special Agent in Charge Susan A. Gibson, officers from the Atlantic City Police Department, under the direction of Chief Henry M. White Jr., and the Atlantic County Prosecutor’s Office, under the direction of Damon G. Tyner, with the investigation leading to the charges.
The drug distribution resulting in death charge carries a maximum punishment of life in prison and a fine of $1 million. The other counts are each punishable by a maximum of 20 years in prison.
The charges and allegations in the indictment are merely accusations, and Curry is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Catherine R. Murphy and Heather Suchorsky of the U.S. Attorney’s Office Criminal Division in Newark.
Essex County Man Admits Role in $3.49 Million Food Stamps SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in exchanging $3.49 million in Supplemental Nutrition Assistance Program (SNAP) benefits for cash, U.S. Attorney Craig Carpenito announced.
Juan Perdomo, 60, of Newark, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of SNAP fraud, one count of engaging in monetary transactions in property derived from SNAP fraud, and one count of aiding in the preparation of a materially false tax return.
According to documents filed in this case and statements made in court:
From October 2015 to September 2018, Perdomo ran M&R Supermarket, a business that was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp program. SNAP is administered by the U.S. Department of Agriculture. Retail food stores approved for participation may sell food in exchange for SNAP benefits, but may not exchange SNAP benefits for cash.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, to use 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 proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in 11 “purchases” at M&R Supermarket, where Juan Perdomo and his son, Jose Perdomo, exchanged money for SNAP benefits.
The bank account of M&R Supermarket showed numerous cash withdrawals in excess of $10,000 by Juan Perdomo and his wife, Maria Rodriguez, as well as several cashed checks in excess of $10,000 by Jose Perdomo.
In September 2018, Juan Perdomo, Jose Perdomo and Maria Rodriguez were charged by complaint with SNAP benefit fraud and conspiracy to commit wire fraud. They were also charged with money laundering conspiracy. Jose previously pleaded guilty to SNAP benefit fraud and money laundering. The charges against Rodriguez remain pending, and they are merely accusations; the defendant is presumed innocent unless and until proven guilty.
The count of SNAP benefit fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain or loss. The count of engaging in monetary transactions in property derived from specified unlawful activity carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the value of the property involved in the transaction. The count aiding in the preparation of false tax return carries a maximum penalty of three years in prison and a fine of $250,000 or twice the value of the property involved in the transaction. Sentencing is scheduled for Jan. 8, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael, and 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 Special Assistant U.S. Attorney Perry Farhat of the U.S. Attorney’s Office Criminal Division in Newark.
Leader of New Jersey Gang and Associate Charged with Distributing Heroin and Fentanyl in Prison, Resulting in Inmate OverdoseRead the Press Release
NEWARK, N.J. – Two Hudson County men were charged for their alleged roles in trafficking heroin and fentanyl into a New Jersey state prison, which resulted in an inmate’s overdose, U.S. Attorney Craig Carpenito announced today.
Noel Salgado, 39, a/k/a “Kuko,” and Rodgerick Garrett, 38, a/k/a “50,” a/k/a “Fif,” a/k/a “Boo,” both of Jersey City, New Jersey, were each charged by indictment with one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and one count of distribution and possession with intent to distribute heroin and fentanyl, which resulted in serious bodily injury to a person. Both men are scheduled to appear Sept. 30, 2019, for arraignment before U.S. District Judge Brian R. Martinotti.
According to the indictment, other documents filed in this case, and statements made in court:
Salgado is the leader of the “Loyal Hoody Gang” subset of the Neighborhood Rolling 20 Bloods, a nationwide street gang. While incarcerated as an inmate at Bayside State Prison, Salgado directed other gang members and associates to provide narcotics proceeds to him and his associates and to smuggle narcotics and other contraband into prison.
On Oct. 17, 2015, Salgado called Garrett from prison to arrange for the purchase and smuggling into the prison of heroin and fentanyl. A third conspirator picked up the narcotics from Garrett and smuggled them to Salgado on Oct. 18, 2015. The following day, an inmate to whom Salgado had distributed the narcotics was found unresponsive in his cell suffering from a drug overdose. The inmate only regained consciousness after medical personnel administered an opiate antidote to revive the inmate, who was hospitalized for two days following his overdose.
The charge of distribution and possession with intent to distribute heroin and fentanyl, which resulted in serious bodily injury, carries a mandatory minimum penalty of 20 years in prison, and a maximum potential penalty of life in prison, and a $1 million fine. The conspiracy charge carries a maximum potential penalty of 20 years in prison.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and investigators with the N.J. Department of Corrections, Special Investigations Division, under the direction of Acting Commissioner Marcus O. Hicks, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Christopher D. Amore and Elaine K. Lou of the U.S. Attorney’s Office in Newark.