District of New Jersey
Press releases recorded for this federal judicial district.
Two Essex County Men Charged After Authorities Find Large Quantity of Methamphetamine in Their ResidenceRead the Press Release
NEWARK, N.J. – Two West Orange, New Jersey, men are charged with federal narcotics offenses after an investigation revealed a large quantity of methamphetamine and other narcotics in their residence, U.S. Attorney Craig Carpenito announced today.
Brian Cheda-Hackembruch, 23, is charged with conspiracy to distribute over 500 grams of methamphetamine and maintaining a drug-involved premises. Eduardo Martinez, 39, is charged with possession of methamphetamine. Both defendants appeared this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this case and statements made in court:
As part of an investigation beginning in May 2019, law enforcement officers observed multiple individuals coming and going from Cheda-Hackembruch’s residence, in a manner consistent with narcotics activity. A search of the residence on July 29, 2019, discovered 4,322.8 grams of methamphetamine, 74 grams of marijuana, 96 fluid ounces of Gamma Butyrolactone (GBL) and bank statements suggesting that Cheda-Hackembruch’s bank account contained over $500,000. Law enforcement searched Martinez’s room and discovered an additional 38 grams of methamphetamine. Officers also located packaging materials, scales, and items consistent with methamphetamine processing.
The count of conspiracy to distribute methamphetamine carries a maximum penalty of life in prison and a fine of up to $10 million. The count of maintaining a drug-involved premises count carries a maximum penalty of 20 years in prison, a $500,000 fine, and a civil penalty up to $250,000. The count of possession of methamphetamine count carries a maximum penalty of one year in prison and a $100,000 fine.
U.S. Attorney Carpenito credited officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando Fontoura, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Narcotics/OCDETF Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Cheda-Hackembruch: Eric Mark Esq., Newark
Martinez: TBD
Philadelphia Man Admits to Armed Robbery of New Jersey BankRead the Press Release
CAMDEN, N.J. – A Philadelphia, Pennsylvania, man today admitted robbing a bank in Carneys Point, New Jersey, in July 2018 while brandishing a firearm, U.S. Attorney Craig Carpenito announced.
Antwaine Thomas, 40, of Philadelphia, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an indictment charging him with armed bank robbery and brandishing a firearm during a bank robbery.
According to documents filed in this case and statements made in court:
Thomas admitted that on July 30, 2018, he and a co-conspirator walked into the Fulton Bank in Carneys Point, and that he pointed a loaded handgun at four bank employees while demanding cash. Thomas and the co-conspirator took $66,000 from the bank and fled. Thomas was arrested several hours later, and he was captured on surveillance video in a nearby residential area, ditching the cash, gun, and his clothing.
The armed bank robbery charge carries a maximum potential penalty of 25 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The brandishing a firearm charge carries a mandatory minimum sentence of seven years which must be served consecutively to any other sentence imposed. Sentencing is scheduled for Nov. 12, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge Michael Harpster; the Salem County Prosecutor’s Office, under the direction of Salem County Prosecutor John T. Lenahan; officers of the Carneys Point Police Department, under the direction of Chief of Police Gerald A. Krivda; and officers of the Penns Grove Police Department, under the direction of Chief John T. Stranahan, Sr., with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the United States Attorney’s Office in Camden.
Defense Counsel: Robert C. Wolf, Esq., Westmont, New Jersey
U.S. Attorney Carpenito to Take Part in 36th Annual National Night OutRead the Press Release
NEWARK, N.J. – U.S. Attorney Craig Carpenito will join members of law enforcement, community leaders and residents on Tuesday, August 6th at West Side Park in Newark to celebrate the 36th annual National Night Out crime and drug prevention event.
National Night Out is a community-building and crime prevention campaign that promotes collaborative law enforcement-community partnerships and neighborhood camaraderie. Thousands of communities nationwide will participate in neighborhood block parties, festivals, cookouts, safety demonstrations, seminars, and activities that heighten crime and drug prevention awareness and generate support for and participation in local anticrime efforts. Events such as these help to strengthen neighborhood spirit, police-community partnerships, and demonstrate a shared commitment for strong and safe communities.
“National Night Out has rallied neighborhood residents, law enforcement and community leaders in the common goal of strengthening relationships to help prevent and deter crime in our local community,” U.S. Attorney Carpenito said. “I am proud to stand with my colleagues and my neighbors to support safer streets and work together to drive out crime.”
“The National Night Out celebration is a community/police awareness event, which is recognized throughout the United States and is held annually on the first Tuesday in August,” Newark Public Safety Director Anthony Ambrose said. “It is a day that the Police Division promotes community/police partnerships and neighborhood camaraderie.”
The Newark event runs from 2:00 p.m. to 8:00 p.m.
Other members of the U.S. Attorney’s Office, District of New Jersey, will be participating in events in Carteret, Jersey City, Mount Olive, Plainfield, Millburn, Piscataway, Union, Chatham, Nutley, Robbinsville and Secaucus. National Night Out organizers are expecting over 16,000 communities and 38 million people nationwide to take part in community events on Tuesday.
Afghanistan National and Former U.S. Military Interpreter Charged for Role in Human Smuggling ConspiracyRead the Press Release
An Afghanistan citizen and United States Lawful Permanent Resident was indicted today for his role in a scheme to smuggle undocumented aliens from Afghanistan to the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami, and Special Agent in Charge Brian Michael of HSI Newark, made the announcement.
Mujeeb Rahman Saify, 32, is an Afghanistan national who received a Special Immigrant Visa and became a U.S. Lawful Permanent Resident in 2009, after serving as an interpreter for the U.S. military in Afghanistan. Since 2009, Saify has resided in New York and Newark. Saify was charged in the District of New Jersey with conspiracy to smuggle aliens to the United States, encouraging and inducing alien smuggling, and attempting to bring aliens to the United States.
According to the indictment, between July 2016 through January 2017, Saify conspired with members of an Afghanistan and Pakistan-based smuggling network to smuggle two Afghanistan nationals to the United States. The Afghanistan nationals did not have prior authorization to enter the United States and one had been denied a U.S. visa. The indictment alleges that Saify made contact with the aliens and arranged meetings with the co-conspirators to discuss smuggling arrangements. Further, according to the indictment, Saify received payment, gave instructions to the aliens to facilitate the smuggling venture, and he used email and phone communications to facilitate and coordinate the criminal operation.
The case is being investigated by HSI Miami, with valuable assistance provided by HSI Newark and HSI’s Human Smuggling Unit and Department of Homeland Security’s Homeland Identities, Targeting, and Exploitation Center (HITEC). The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case is being prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Senior Trial Counsel Margaret Ann Mahoney of the U.S. Attorney’s Office of the District of New Jersey.
An indictment is merely a formal accusation. Defendants are presumed innocent unless proven guilty in a court of law.
Afghanistan National and Former U.S. Military Interpreter Charged for Role in Human Smuggling ConspiracyRead the Press Release
NEWARK, N.J. – An Afghani citizen and United States Lawful Permanent Resident was indicted today by a federal grand jury for his role in a scheme to smuggle undocumented aliens from Afghanistan to the United States.
U.S. Attorney Craig Carpenito of the District of New Jersey, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami, and Special Agent in Charge Brian Michael of HSI Newark, made the announcement.
Mujeeb Rahman Saify, 32, is an Afghanistan national who received a Special Immigrant Visa and became a U.S. Lawful Permanent Resident in 2009, after serving as an interpreter for the U.S. military in Afghanistan. Since 2009, Saify has resided in New York and Newark. Saify was charged in the District of New Jersey with conspiracy to smuggle aliens to the United States, encouraging and inducing alien smuggling, and attempting to bring aliens to the United States. If convicted, Saify faces a maximum sentence of 10 years in prison and a $250,000 fine, as well as forfeiture.
According to the indictment, between July 2016 through February 2017, Saify conspired with members of an Afghanistan and Pakistan-based smuggling network to smuggle two Afghanistan nationals to the United States. The Afghanistan nationals did not have prior authorization to enter the United States and one had been denied a U.S. visa. The indictment alleges that Saify made contact with the aliens and arranged meetings with the co-conspirators to discuss smuggling arrangements. Further, according to the indictment, Saify received payment, gave instructions to the aliens to facilitate the smuggling venture, and he used email and phone communications to facilitate and coordinate the criminal operation.
The case is being investigated by HSI Miami, with valuable assistance provided by HSI Newark and HSI’s Human Smuggling Unit and the Department of Homeland Security’s Homeland Identities, Targeting, and Exploitation Center (HITEC). The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case is being prosecuted by Senior Trial Counsel Margaret Ann Mahoney of the U.S. Attorney’s Office of the District of New Jersey, and Trial Attorney Jay Bauer of the Human Rights and Special Prosecutions Section of the DOJ Criminal Division.
An indictment is merely a formal accusation. Defendants are presumed innocent unless proven guilty in a court of law.
California Couple Charged with Wire Fraud and Money Laundering in $7 Million Ponzi SchemeRead the Press Release
NEWARK, N.J. – A California couple was arrested today on charges of operating a $7 million advance fee Ponzi scheme, U.S. Attorney Craig Carpenito announced.
Jason M. Torres, 41, and Jordana Weber, 30, of Lake Tahoe, California, are charged by complaint with one count of wire fraud conspiracy and one count of money laundering. They are scheduled to appear today before U.S. Magistrate Judge Deborah Barnes in Sacramento, California, federal court.
According to documents filed in this case and statements made in court:
Between April 2017 and the present, Torres, Weber, and others owned and operated several shell companies – one of which employed individuals who lived in New Jersey and performed work while in New Jersey – that falsely purported to offer lending services to customers, typically small business owners seeking high value loans, often in excess of $100 million. As part of the scheme, Torres, Weber and others required customers to pay up to 5 percent of a potential total loan amount as a “fee” prior to the loan being funded.
After the victim’s “fee” was paid, the defendants and others would engage in a fake “due diligence” period, during which they frequently gave victims bogus explanations for why the funding of their loan was delayed. It was also common to provide the victims with falsified or fraudulent documents, including bank statements that purported to show that the shell companies had sufficient money to fund the loan.
Torres, Weber, and others used the “fees” paid by the victims for their daily living expenses, as well as for numerous lavish purchases, which included several luxury vehicles, high priced artwork, and vacations. The “fees” were also used to pay back previous victims of the fraud, in the manner of a traditional Ponzi scheme. To date, approximately six victims have been identified with a total of $7 million being transferred to bank accounts controlled by Torres, Weber, and others.
The wire fraud charge carries a statutory maximum of 30 years in prison and a $1 million fine. The money laundering charge carries a statutory maximum of 20 years in prison and a fine of not more than $500,000 or twice the value of the property involved, whichever is greater.
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 charge.
The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrimes Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Twelve People Charged in Long-Running Investigation of Newark G-Shine BloodsRead the Press Release
NEWARK, N.J. – Twelve members, associates, and suppliers of a drug trafficking organization based in Newark have been charged in connection with their roles in distributing heroin, fentanyl, and crack cocaine and using firearms to protect their illegal operation, U.S. Attorney Craig Carpenito announced today.
The 12 defendants were charged in a complaint unsealed today (six others have been previously charged on separate complaints). Eight of the 12 defendants charged today are scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. One remains at large. (See table below.)
“That these defendants allegedly used a neighborhood rec center as a place to conceal and sell dangerous drugs is almost beyond comprehension,” U.S. Attorney Carpenito said. “While neighborhood children were coming here to play basketball and chess, they may have been just a few feet away from narcotics and the criminals who sell them. Getting the people who ran this operation off the street is a priority for law enforcement, and together with our partners in the DEA, the Newark Police, the New Jersey State Police and many others, we are doing just that.”
“Today’s operation highlights how cooperation between law enforcement at all levels can successfully lead to the dismantlement of a drug operation,” Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, Susan A. Gibson, said. “Those arrested not only held a community hostage with their violence and drug dealing, but they also utilized a community recreation center to deliver and store their heroin. These people were concerned only with making money with no concern for damage they were causing.”
“Once again, a great collaboration with our federal partners helps Newark to become a safer place,” Newark Public Safety Director Anthony F. Ambrose said. “Last year, the US Attorney’s Office was responsible for over 100 violent cases. I’m glad to see this trend continue in 2019. The people of Newark are the benefactors.”
According to the documents filed in this case and statements made in court:
The charges and arrests are the result of a long-running wiretap investigation led by the DEA. The organization’s leaders – Edward Williams and Wali Duncan – obtained their supply of narcotics from Rahim Jackson and Arthur Hardy, who would deliver the narcotics personally or through runners. On numerous occasions, large narcotics deliveries took place in and around the Rotunda Recreation and Wellness Center on Clifton Avenue, where Hardy was the director and Jackson and Williams were employees. These individuals also used the center to stash drugs and money.
Williams and Duncan are members of the G-Shine set of the Bloods street gang, which operates at the Janice Cromer Village public housing complex, also known as the Broadway Townhomes, in Newark. Duncan supplied narcotics to numerous individuals who would sell them in the neighborhood, which is near two elementary schools and a high school.
U.S. Attorney Carpenito credited special agents of DEA, under the direction of Special Agent in Charge Gibson; members of the Newark Department of Public Safety, under the direction of Public Safety Director Anthony F. Ambrose; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the charges.
He also thanked the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Rockaway Township Police Department, under the direction of Chief Martin McParland; and special agents of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark for their assistance.
This investigation was part of the Violent Crime Initiative (VCI), which was formed in August 2017 to combat violent crime in and around Newark. Federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders. The VCI is composed of the U.S. Attorney’s Office, FBI, ATF, DEA, U.S. Marshals, Newark Department of Public Safety, Essex County Prosecutor’s Office, Essex County Sheriff’s Office, N.J. State Parole Board, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, East Orange Police Department, and Irvington Police Department.
The government is represented by Assistant U.S. Attorney Heather K. Suchorsky of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
DEFENDANT
AGE
CHARGES
POTENTIAL PENALTIES
Edward Williams,
a/k/a “Fadia,”51
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
Wali Duncan,
a/k/a “Haneef Toler,”
a/k/a “Remix,”
a/k/a “Black Ass,”
37
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
Rahim Jackson,
a/k/a “Rah,”43
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
Arthur Hardy,
a/k/a “Art,”41
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
Tieshorn Fletcher,
a/k/a “X,”
a/k/a “Fat Boy,”37
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
Kareem Collier,
a/k/a “Grimey,”
a/k/a “Grime,”41
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
*Fuquan Bunn,
a/k/a “G Fu,”
38
Conspiracy to distribute one kilogram or more of heroin
Distribution and possession with intent to distribute heroin and cocaine base10 year mandatory minimum; up to life
20 year maximum
Shyiem Gordon,
a/k/a “GT,”24
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
Michael Graham,
a/k/a “Soulman,”
35
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
**Terrell Evans,
a/k/a “Rell30
Conspiracy to distribute one kilogram or more of heroin
Distribution and possession with intent to distribute heroin and cocaine base10 year mandatory minimum; up to life
20 year maximum
*Arraheem Washington
42
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
*Wilfredo P. Jimenez,
a/k/a “Pedro Munoz,”
a/k/a “Pedro Munoz Almonte,”
a/k/a “Carlos Rivera”47
Conspiracy to distribute one kilogram or more of heroin
Distribution and possession with intent to distribute heroin10 year mandatory minimum; up to life
Five year mandatory minimum; up to 40 years
*Already in custody on separate state charges
**At large
MS-13 Member Apprehended after Being Placed on FBI’s 10 Most-Wanted Fugitives List Sentenced to 25 Years in PrisonRead the Press Release
NEWARK, N.J. – An MS-13 member previously named one of the FBI’s 10 Most Wanted Fugitives was sentenced today to 300 months in prison for killing a Plainfield, New Jersey, man on behalf of the gang, and agreeing that a conspirator would commit multiple violent acts for the gang, U.S. Attorney Craig Carpenito announced.
Walter Yovany-Gomez, a/k/a “Cholo,” 35, who was a fugitive residing in the Maryland/Virginia area from 2011 to 2017, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of racketeering conspiracy. Judge Chesler imposed the sentence today in Newark federal court.
“This defendant committed a vicious murder and conspired with another MS-13 member to commit further acts of violence,” U.S. Attorney Carpenito said. “When he fled New Jersey and became a fugitive, our partners at the FBI diligently pursued and eventually captured him. Today’s sentence ensures that he will now remain behind bars for a substantial period of time, thus preserving the safety of the community and punishing him appropriately for his actions.”
“Walter Yovany-Gomez thought he could steal someone’s life and escape unscathed. He obviously underestimated the men and women of the FBI,” Special Agent-in-Charge Gregory W. Ehrie, FBI-Newark, said. “Members of blood-thirsty gangs, like MS-13, who devalue life as part of their business model, need to know that our life’s work is dedicated to keeping our citizens safe and we won't rest until we accomplish that mission.”
According to documents filed in this and other cases and statements made in court:
In September 2013, a Newark grand jury indicted Yovany-Gomez for murder in aid of racketeering and conspiracy to commit murder in an indictment that charged 14 members of Plainfield Locos Salvatrucha (PLS), a New Jersey branch of the Mara Salvatrucha (MS-13) transnational gang, with various gang-related offenses. The charges against Yovany-Gomez focused on the May 2011 murder of Julio Matute, whom law enforcement officers discovered beaten and stabbed to death in Matute’s Plainfield apartment. Yovany-Gomez fled New Jersey after officers went to Yovany-Gomez’s residence to question him.
In April 2017, the FBI placed Yovany-Gomez on its 10 Most Wanted Fugitives List. On Aug. 12, 2017, he was arrested without incident in Woodbridge, Virginia, based on tips received from the public.
Between 2014 and 2016, all 13 of Yovany-Gomez’s co-defendants charged in the September 2013 federal indictment were convicted, including eight MS-13 members who were convicted following a 16-week trial that ended in June 2016.
In May 2011, MS-13 leaders, members, and associates, including Yovany-Gomez, plotted to murder Matute, a PLS recruit, because they believed Matute had been socializing with rival gang members.
On May 8, 2011, Yovany-Gomez and fellow MS-13 member Cruz Flores, a/k/a “Bruja” traveled to Matute’s Plainfield apartment to carry out the murder, meeting Matute and another individual at the residence. After consuming alcohol and controlled substances with the other three individuals, Matute retired to his bedroom to sleep. When Matute attempted to leave the apartment several hours later for work, Yovany-Gomez and Flores assaulted and killed Matute. During the attack, Yovany-Gomez and Flores struck Matute in the head with an aluminum baseball bat, sliced Matute’s throat with a knife, and stabbed Matute in the back 17 times with a screwdriver. Yovany-Gomez and Flores threatened to harm the individual who witnessed the murder if that person went to the police.
Several weeks after the murder, officers went to question Yovany-Gomez at his residence. When they knocked on his door, Yovany-Gomez jumped out of a second-floor window and fled. PLS members and associates later drove Yovany-Gomez to the Maryland/Virginia area so he could avoid being arrested and prosecuted in connection with the murder. Yovany-Gomez remained in the Maryland/Virginia area until his arrest in August 2017, adopting an alias to further avoid law enforcement detection.
Flores was found guilty of the murder during the trial described above.
In addition to the Matute murder, Yovany-Gomez agreed as part of the racketeering conspiracy that another conspirator would commit multiple acts of violence on behalf of MS-13.
In addition to the prison term, Judge Chesler sentenced Yovany-Gomez to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie; and officers of U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction Newark Field Office Director John Tsoukaris. He also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Lyndsay V. Ruotolo, for its assistance. The FBI Washington Field Office’s Violent Crimes Task Force, the Fairfax County Police Department’s Gang Unit, and the Northern Virginia Gang Task Force coordinated the local search for and arrest of Yovany-Gomez. U.S. Attorney Carpenito also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland for their assistance in the ongoing investigation.
The government is represented by Senior Trial Counsel Jamari Buxton and James Donnelly, Chief of the Violent Crimes Unit of the U.S Attorney’s Office Criminal Division in Newark.
Mexican National Sentenced to 64 Months in Prison for Trafficking FentanylRead the Press Release
NEWARK, N.J. – A Mexican national was sentenced today to 64 months in prison for his role in conspiring to traffic approximately 300 grams of fentanyl into New Jersey, U.S. Attorney Craig Carpenito announced.
Angel Santo Jerez Matos, 61, a/k/a “El Colonel,” previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with conspiracy to possess with intent to distribute more than 40 grams of fentanyl. Judge McNulty imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Matos was a supplier of fentanyl, heroin, and cocaine to a drug trafficking organization operating in and around New Jersey.
Matos and a member of a New Jersey drug trafficking organization were heard, on intercepted communications, discussing the pricing of “cars,” meaning kilograms of narcotics to be shipped from Mexico into the United States through California. The drugs would then be shipped to New Jersey. Additional communications among members of the New Jersey drug trafficking organization revealed that 300 grams of fentanyl that had originated with Matos in Mexico made its way to users in Newark in May 2017.
In addition to the prison term, Judge McNulty sentenced Matos to four years of supervised release.
U.S. Attorney Carpenito credited the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit.
This case is being conducted under the auspices of the Organized Crime and Drug Enforcement Task Force. 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.
Civil Settlement Reached with New Jersey CompanyRead the Press Release
NEWARK, N.J. – A New Jersey company and its principal will pay $2.4 million to resolve allegations that it improperly obtained contracts set aside for companies owned and controlled by service-disabled veterans, U.S. Attorney Craig Carpenito announced
The settlement resolves allegations that Regiment Construction Corp. and its principal, Daniel Hernandez, made false claims in conjunction with contracts awarded to Regiment by the United States. The government contends that Regiment and Hernandez improperly represented that Regiment was eligible to bid on contract set aside for companies owned and controlled by service-disabled veterans when, in fact, a veteran did not own and control Regiment. The United States contends that Regiment was owned by Hernandez, and not the veteran to whom ownership and control was attributed in Regiment’s certification to the United States.
U.S. Attorney Carpenito credited Special Agent Rafael Valverde of the United States Department of Veteran’s Affair’s Office of Inspector General, and Special Agent Michael Moffa of the U.S. Small Business Administration’s Office of Inspector General, with the investigation.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division and David E. Dauenheimer, Deputy Chief of the U.S. Attorney’s Civil Division, in Newark.
Chinese National Sentenced to over Three Years in Prison for Trafficking Counterfeit Apple Goods into the United StatesRead the Press Release
A Chinese national living in the United States on a student visa was sentenced today to 37 months in prison followed by one year of supervised release for his role in a scheme to traffic and smuggle counterfeit Apple products, including phony iPhones and iPads, from China into the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Special Agent in Charge Brian Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Newark and Bergen County Prosecutor Mark Musella made the announcement.
Jianhua “Jeff” Li, 44, previously pleaded guilty before U.S. District Judge Kevin McNulty of the District of New Jersey, to one count of conspiracy to traffic in counterfeit goods and labels and smuggle goods into the United States and one count of trafficking in counterfeit goods. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court, from July 2009 through February 2014, Li, working through his company Dream Digitals, conspired with Andreina Becerra, Roberto Volpe, Rosario LaMarca and others to smuggle and traffic into the United States from China more than 40,000 electronic devices and accessories, including iPads and iPhones, along with labels and packaging bearing counterfeit Apple trademarks.
Li shipped the devices separately from the labels to avoid detection by U.S. Customs and Border Protection officials. The devices were then shipped to conspirators all over the United States. Proceeds were funneled back to conspirator accounts in Florida and New Jersey via structured cash deposits and then a portion was transferred to conspirators in Italy, further disguising the source of the funds. Over $1.1 million in sales proceeds were wired from U.S. accounts into accounts Li controlled overseas.
LaMarca, Becerra, and Volpe previously pleaded guilty to their respective roles in the scheme. LaMarca was sentenced July 21, 2017, to serve 37 months in prison. Becerra and Volpe were sentenced Oct. 15, 2018, to serve three years’ probation and 22 months in prison, respectively.
The HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Financial Crimes Unit investigated the case with significant assistance from HSI Attaché Rome, Europol and Italy’s Guardia di Finanza.
Senior Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey prosecuted the case.
Chinese National Sentenced to 37 Months in Prison for Trafficking Counterfeit Apple Goods into United StatesRead the Press Release
NEWARK, N.J. – A Chinese national living in the United States on a student visa was sentenced today to 37 months in prison for his role in a scheme to traffic and smuggle counterfeit Apple products, including phony iPhones and iPads, from China into the United States.
U.S. Attorney Craig Carpenito of the District of New Jersey; Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division; Special Agent in Charge Brian Michael of Homeland Security Investigations (HSI) in Newark, and Bergen County Prosecutor Mark Musella made the announcement.
Jianhua “Jeff” Li, 44, previously pleaded guilty before U.S. District Judge Kevin McNulty to one count of conspiracy to traffic in counterfeit goods and labels and smuggle goods into the United States and one count of trafficking in counterfeit goods. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From July 2009 through February 2014, Li, working through his company Dream Digitals, conspired with Andreina Becerra, Roberto Volpe, Rosario LaMarca, and others to smuggle and traffic into the United States from China more than 40,000 electronic devices and accessories, including iPads and iPhones, along with labels and packaging bearing counterfeit Apple trademarks.
Li shipped the devices separately from the labels to avoid detection by U.S. Customs and Border Protection officials. The devices were then shipped to conspirators all over the United States. Proceeds were funneled back to conspirator accounts in Florida and New Jersey via structured cash deposits and then a portion was transferred to conspirators in Italy, further disguising the source of the funds. Over $1.1 million in sales proceeds were wired from U.S. accounts into accounts Li controlled overseas.
In addition to the prison term, Judge McNulty sentenced Li to one year of supervised release.
LaMarca, Becerra, and Volpe previously pleaded guilty to their respective roles in the scheme. LaMarca was sentenced July 21, 2017, to 37 months in prison. Becerra and Volpe were sentenced Oct. 15, 2018, to three years’ probation and 22 months in prison, respectively.
The HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Financial Crimes Unit investigated the case with significant assistance from Europol and Italy’s Guardia di Finanza.
The government is represented by Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey and Senior Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section.
Asbury Park Doctor Sentenced to 27 Months in Prison for Distribution of Steroids and MarijuanaRead the Press Release
TRENTON, N.J. – A doctor with offices in Asbury Park, New Jersey, and Brooklyn was sentenced today to 27 months in prison for unlawfully distributing prescriptions for anabolic steroids and for possessing marijuana with intent to distribute, U.S. Attorney Craig Carpenito announced.
Kevin Custis, 54, of Belle Mead, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of distributing anabolic steroids and one count of possessing marijuana with intent to distribute. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In 2016 and 2017, Custis wrote and delivered numerous prescriptions for various types of anabolic steroids to two patients. Custis admitted that he knew these prescriptions were not for the treatment of any actual medical condition, but were solely for muscle enhancement, beauty, and muscle building and fitness competitions.
When agents and investigators from the Drug Enforcement Administration (DEA) and the Port Authority of New York and New Jersey-Office of Inspector General searched Custis’ home on June 14, 2017, they found over four kilograms of marijuana and over 150 grams of tetrahydrocannobinal oil. Custis admitted that he intended to distribute these substances and that he had no authority under any federal or state law or regulation to do so. Custis also admitted that he prepared marijuana products for patients in his home kitchen.
In addition to the prison term, Judge Sheridan sentenced Custis to three years of supervised release and fined him $10,000.
U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Field Division; the PANYNJ-OIG, under the direction of Michael Nestor; and the N.J. Division of Consumer Affairs, under the direction of Paul R. Rodriguez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney David E. Malagold of the U.S. Attorney’s Office Criminal Division.
Warren County Man Sentenced to 20 Years in Prison for Production of Child Pornography, Online Enticement, Sending Interstate Extortionate Threats, and StalkingRead the Press Release
NEWARK, N.J. – A Washington, New Jersey, man was sentenced today to 240 months in prison for sex crimes, extortion and stalking – including asking a minor girl to produce explicit images of herself and threatening a second girl if she didn’t agree to meet and date him, U.S. Attorney Craig Carpenito announced.
Brandon McIntyre, 27, was previously convicted of two counts of the production of child pornography, one count of the online enticement of a minor to engage in criminal sexual conduct, two counts of sending interstate extortionate threats, and one count of stalking following a one-week trial before U.S. District Judge Kevin McNulty, who imposed the sentence today in Newark federal court. He was sentenced to 240 months in prison on the first three counts, and 60 months in prison on the remaining three counts, all to run concurrently for a total term of 240 months.
According to the documents filed in this case and the evidence at trial:
McIntyre met various minor girls through Facebook, sometimes as himself, other times pretending to be a teenage girl. Over the course of the correspondence with one female, McIntyre threatened to hurt her boyfriend and kill her family when she refused to go out with him. In his interaction with another girl, McIntyre sent her images of his genitals and demanded that she send nude images of herself. McIntyre threatened the girl, claiming he was a state trooper who could arrest and imprison her family members if she did not send him nude images of herself. When one victim threatened to report McIntyre to her school guidance counselor, McIntyre responded, “Do it and see what happens” and “I can have ur family killed too and make u watch.”
McIntyre admitted to law enforcement that he, at times, pretended to be a teenage girl using the alias “Katie Thompson” in online chats with minors. He said he solicited minors to take and send nude images of themselves to him and threatened to harm minors and their loved ones on multiple occasions if they did not comply with his demands.In addition to the prison term, Judge McNulty sentenced McIntyre to a lifetime term of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Middlebury, Vermont, Police Department, and the Clinton Police Department with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Erica Liu and Senior Trial Counsel Danielle Alfonzo Walsman of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Jim Patton Esq., Hackettstown, New Jersey
Union County Man Charged with Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Union County man has been charged with possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced today.
Joseph Hinksmon, 41, of Cranford, New Jersey, is charged in a criminal complaint with one count of possession of child pornography. He is expected to appear later this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the complaint, filed today:
On or about July 24, 2019, law enforcement lawfully obtained from Hinkmon’s residence multiple computers and electronic storage media belonging to Hinksmon, which contained approximately 10,000 images and 1,000 videos of child pornography, including images of prepubescent children being sexually abused.
The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Craig Carpenito credited Special Agents with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Cymetra Williams of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense Counsel: Lisa Baitsell, Esq., White Plains, New York
Bergen County Man Admits Defrauding Government by Exchanging over $750,000 in Snap Benefits for CashRead the Press Release
NEWARK, N.J. – A Bergen County man admitted today that he stole more than $750,000 from the U.S. Government through a scheme to exchange government benefits for cash, U.S. Attorney Craig Carpenito announced.
Jamil Bader, 60, of Teaneck, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an indictment charging him with one count of Supplemental Nutrition Assistance Program (SNAP) benefits (formerly known as the food stamp program) fraud.
According to documents filed in this case and statements made in court:
Every SNAP recipient receives an Electronic Benefits Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the transaction and informs the retailer whether the transaction should be authorized or declined. If the transaction is authorized, the amount of the purchase is then deducted from the SNAP benefits reserved for the customer, and the amount is credited to the retailer’s designated bank account.
Bader admitted that he controlled a small grocery store that was located on Clinton Avenue in Newark, New Jersey between September 2013 and September 2016. Bader acknowledged placing this store in another person’s name because he had previously been banned from participation in SNAP for similar conduct. Bader admitted that he repeatedly exchanged SNAP benefits for cash and kept a portion of the proceeds for himself. Bader acknowledged that this scheme caused at least $754,424 in losses to the federal government. Bader also admitted fleeing from the United States and obtaining a foreign passport in an effort to avoid these criminal charges.
The SNAP benefits charge carries a maximum penalty of twenty years’ imprisonment and a $250,000 fine. Sentencing is scheduled for November 7, 2019.
U.S. Attorney Carpenito credited special agents of the United States Department of Agriculture – Office of the Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins with the investigation leading to today’s guilty plea. The U.S. Attorney also thanked the United States Marshal’s Service, under the direction of U.S. Marshal Juan Mattos in Newark, and U.S. Immigration & Customs Enforcement, Homeland Security Investigations, for their assistance with Bader’s apprehension and return to New Jersey.
The government is represented by Special Assistant United States Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Frederick “Chip” Dunne, III, Esq.
Monmouth County Man Charged with Operating an Unlicensed Bitcoin ExchangeRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man was indicted today by a federal grand jury for operating an unlicensed money transmitting business through which he charged customers fees to convert more than $2 million in cash into the digital currency Bitcoin.
William Green, 46, of Wall Township, was charged by indictment with one count of operating an unlicensed money transmitting business. He is scheduled to appear before a United States District Judge on a date to be scheduled. He was previously charged with the same offense by criminal complaint on February 28, 2019.
According to the documents filed in this case and statements made in court:
Green maintained a business that operated a website called “Destination Bitcoin.” Through the Destination Bitcoin website, Green received money from members of the public (the “customers”), deposited such money into bank accounts maintained by Green, and then converted such money into Bitcoin in accordance with the customers’ instructions. Green charged the customers a fee for this service.
Federal law provides that any person who owns or controls a money transmitting business shall register the business (whether or not the business is licensed as a money transmitting business in any State) with the Secretary of the Treasury. However, Green did not register, either in his own name or in the name of his business, with the Secretary of the United States Treasury as a money transmitting business.
The charge of operating an unlicensed money transmitting business carries a maximum penalty of 5 years imprisonment and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, as well as special agents of the U.S. Immigration & Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Office Cybercrimes Unit in Newark.
The charge and allegations in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Michael Gilberti, Esq.
North Carolina Felon Admits Role in Gun Trafficking SchemeRead the Press Release
CAMDEN, N.J. – A convicted felon from North Carolina today admitted his role in an illegal scheme to buy weapons in Georgia and transport them to New Jersey for resale, U.S. Attorney Craig Carpenito announced.
Anthony Doyle, 28, of Fayetteville, North Carolina, pleaded guilty before U.S. District Judge Joseph Rodriguez in Camden federal court to an information charging him with conspiring to illegally traffic firearms and with being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:On January 25, 2018, law enforcement officers conducted a traffic stop in Deptford, New Jersey, of a car that was registered to Doyle. At the time of the traffic stop, Doyle was riding as the front seat passenger in the car. A woman named Anastacia Thomas, 26, who is also from Fayetteville, was driving the car.
During the stop, law enforcement officers observed a Glock handgun in plain view on the front seat passenger floor. This gun was loaded with 14 hollow tip bullets. The officers also observed a firearm box in the backseat of the car, next to a backpack. A search of the car and backpack revealed four additional handguns and two additional firearm boxes.
Law enforcement officers subsequently learned that Thomas had purchased all four of the handguns in the backpack on January 22, 2018, from a pawnshop in Jonesboro, Georgia. In addition, Thomas had purchased several other firearms from that same pawnshop over the course of multiple visits. Doyle had accompanied Thomas to the pawnshop on at least two of those visits.
The investigation revealed that from November 30, 2017, to January 25, 2018, Doyle and Thomas conspired and worked together to engage in the business of dealing in firearms without a license. Doyle, who was a convicted felon and therefore could not legally purchase firearms, was responsible for selecting the firearms, transporting the firearms up to New Jersey, finding buyers for the firearms, and selling the firearms at a profit. To accomplish these tasks, Doyle used his social media accounts to advertise the firearms for sale, negotiate pricing for the firearms, and arrange the firearm sales. Doyle’s online discussions regarding illegal firearm trafficking are documented in great detail over the course of hundreds of pages of online messages that were analyzed by law enforcement officers.
Meanwhile, Thomas, who was not a felon at the time of the traffic stop, was responsible for purchasing firearms from federally licensed firearms dealers. Thomas also helped Doyle transport the firearms to New Jersey for resale and handled the profits from the resales.
The charge of conspiring to engage in gun trafficking carries a maximum potential penalty of five years in prison and a $250,000 fine. The charge of being a felon in possession of a firearm carries a maximum penalty of ten years in prison and a $250,000 fine. Doyle’s sentencing is scheduled for October 28, 2019.Thomas previously pleaded guilty to her role in the firearm-trafficking conspiracy and her sentencing is scheduled for October 7, 2019.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Doyle: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Thomas: Paul A. Sarmousakis Esq., Avalon, New JerseyHudson County Man Charged with Assault on Postal WorkerRead the Press Release
NEWARK, N.J. – A North Bergen man was arrested today on charges that he attacked a postal worker, U.S. Attorney Craig Carpenito announced.
Eduardo Perez, 34, is charged by complaint with one count of assaulting a federal worker. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the documents filed in this case and statements made in court:
On or about June 22, 2019, defendant Perez parked his white pickup truck in an employees-only space in the parking lot of the Woodcliff Station Post Office in North Bergen, New Jersey. When Perez returned to his vehicle after closing time, he found that a postal vehicle was blocking the entrance to the parking lot, per Woodcliff Station policy. Although the exit from the lot remained unobstructed, Perez became irate and aggressive toward postal employees in the lot, demanding that the postal vehicle be removed from the entrance so that he could exit that way. Perez eventually removed his truck from the lot through the exit, nearly striking a postal employee in the process, but returned to the lot only moments later and accosted a postal worker who was unloading parcels from his postal vehicle. Perez swung his fist repeatedly toward the victim, striking the victim’s face and causing him to fall backward into his postal vehicle and then to the ground, knocking him unconscious. Perez then fled the scene. The victim was subsequently hospitalized for severe injuries to his face and head.
The charge of assaulting a federal worker carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited postal inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge James Buthorn in Newark, with the investigation leading to the charges. He also thanked the North Bergen Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office’s Public Protection Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Four Chinese Nationals and Chinese Company Indicted for Conspiracy to Defraud the United States and Evade SanctionsRead the Press Release
A federal grand jury has charged four Chinese nationals and a Chinese company with violating the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA and defraud the United States; conspiracy to violate, evade and avoid restrictions imposed under the Weapons of Mass Destruction Proliferators Sanctions Regulations (WMDPSR); and conspiracy to launder monetary instruments.
The announcement was made by Assistant Attorney General for National Security John C. Demers, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and U.S. Attorney Craig Carpenito for the District of New Jersey.
The indictment returned yesterday by a federal grand jury in Newark, New Jersey charges Ma Xiaohong (Ma); her company, Dandong Hongxiang Industrial Development Co. Ltd. (DHID); and three of DHID’s top executives – general manager Zhou Jianshu (Zhou), deputy general manager Hong Jinhua (Hong) and financial manager Luo Chuanxu (Luo) – with violating IEEPA, conspiracy to violate IEEPA and to defraud the United States and conspiracy to launder monetary instruments.
“Through the use of more than 20 front companies, the defendants are alleged to have sought to obscure illicit financial dealings on behalf of sanctioned North Korean entities that were involved in the proliferation of weapons of mass destruction,” said Assistant Attorney General John Demers. “But through the tireless efforts of federal law enforcement, we were able to shine a light on their lawless conduct and take the first step in bringing them to justice.”
“Any Chinese company conspiring to do business with sanctioned WMD proliferators through the U.S. banking system should think twice,” said Assistant Attorney General Benczkowski. “This indictment shows the Department’s resolve to use every tool of criminal prosecution to detect illicit financial transactions and enforce U.S. sanctions.”
“Ma, her company, and her employees tried to defraud the United States by evading sanctions restrictions and doing business with proliferators of weapons of mass destruction,” said U.S. Attorney Carpenito. “We will continue to work closely with our partners in the National Security and Criminal Divisions in order to identify and prosecute defendants like these, in order to preserve a safer and more fair environment for all.”
According to the indictment, DHID was a Chinese company whose core business was trade with North Korea. DHID allegedly openly worked with North Korea-based Korea Kwangson Banking Corporation (KKBC) prior to Aug. 11, 2009, when the Office of Foreign Assets Control (OFAC) designated KKBC as a Specially Designated National (SDN) for providing U.S. dollar financial services for two other North Korean entities, Tanchon Commercial Bank (Tanchon) and Korea Hyoksin Trading Corporation (Hyoksin). President Bush identified Tanchon as a weapons of mass destruction proliferator in June 2005, and OFAC designated Hyoksin as an SDN under the WMDPSR in July 2009. Tanchon and Hyoksin were identified and designated because of their ties to Korea Mining Development Trading Company (KOMID), which OFAC has described as North Korea’s premier arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons.
Beginning after the designation of KKBC as an SDN in August 2009, Ma allegedly conspired with Zhou, Hong and Luo to create or acquire numerous front companies to conduct U.S. dollar transactions designed to evade U.S. sanctions. The indictment alleges that from December 2009 to September 2015, the defendants established front companies in offshore jurisdictions such as the British Virgin Islands, the Seychelles, Hong Kong, Wales, England, and Anguilla, and opened Chinese bank accounts held in the names of the front companies at banks in China that maintained correspondent accounts in the United States. The defendants used these accounts to conduct U.S. dollar financial transactions through the U.S. banking system when completing sales to North Korea. These sales transactions were allegedly financed or guaranteed by KKBC. These front companies facilitated the financial transactions to hide KKBC’s presence from correspondent banks in the United States, including a bank processing center in Newark, New Jersey, according to the allegations in the indictment. As a result of the defendants’ alleged scheme, KKBC was able to cause financial transactions in U.S. dollars to transit through the U.S. correspondent banks without being detected by the banks and, thus, were not blocked under the WMDPSR program.
Ma, Zhou, Hong and Luo face a statutory maximum sentence of 20 years in prison and a $1 million fine on the charge of violating IEEPA, a maximum of five years in prison and a $250,000 fine on conspiracy to violate IEEPA and to defraud the United States, and a maximum of 20 years in prison and a $500,000 fine on the charge of conspiracy to launder monetary instruments. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
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 FBI is handling the case. The Criminal Division’s Office of International Affairs provided significant assistance in the investigation. Trial Attorney Jennifer Wallis of the Criminal Division’s Money Laundering and Asset Recovery Section; Trial Attorney Christian E. Ford of the National Security Division’s Counterintelligence and Export Control Section; and Assistant U.S. Attorney Joyce M. Malliet of the National Security Unit, Sarah Devlin, Chief of the Asset Recovery and Money Laundering Unit (ARMLU), and Assistant U.S. Attorney Barbara Ward of ARMLU in the U.S. Attorney’s Office for the District of New Jersey are prosecuting the case.
Four Chinese Nationals and Chinese Company Indicted for Conspiracy to Defraud the United States and Evade SanctionsRead the Press Release
NEWARK, N.J. – A federal grand jury has charged four Chinese nationals and a Chinese company with violating the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA and to defraud the United States; conspiracy to violate, evade and avoid restrictions of the Weapons of Mass Destruction Proliferators Regulations (WMDPR); and conspiracy to launder monetary instruments, U.S. Attorney Craig Carpenito for the District of New Jersey, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Assistant Attorney General John C. Demers of the Justice Department’s National Security Division announced.
The indictment returned yesterday by a federal grand jury in Newark charges Ma Xiaohong (Ma); her company, Dandong Hongxiang Industrial Development Co. Ltd. (DHID); and three of DHID’s top executives – general manager Zhou Jianshu (Zhou), deputy general manager Hong Jinhua (Hong) and financial manager Luo Chuanxu (Luo) – with violating IEEPA, conspiracy to violate IEEPA and to defraud the United States; and conspiracy to launder monetary instruments.
“Ma, her company, and her employees tried to defraud the United States by evading sanctions restrictions and doing business with proliferators of weapons of mass destruction,” said U.S. Attorney Carpenito, “We will continue to work closely with our partners in the National Security and Criminal Divisions in order to identify and prosecute defendants like these, in order to preserve a safer and more fair environment for all.”
“Through the use of more than 20 front companies, the defendants are alleged to have sought to obscure illicit financial dealings on behalf of sanctioned North Korean entities that were involved in the proliferation of weapons of mass destruction,” said Assistant Attorney General John Demers. “But through the tireless efforts of federal law enforcement, we were able to shine a light on their lawless conduct and take the first step in bringing them to justice.”
“Any Chinese company conspiring to do business with sanctioned WMD proliferators through the U.S. banking system should think twice,” said Assistant Attorney General Benczkowski. “This indictment shows the Department’s resolve to use every tool of criminal prosecution to detect illicit financial transactions and enforce U.S. sanctions.”According to the indictment in this case, DHID is primarily owned by Ma and is located near the North Korean border. DHID allegedly openly worked with North Korea-based Korea Kwangson Banking Corporation (KKBC) prior to Aug. 11, 2009, when the Office of Foreign Assets Control (OFAC) designated KKBC as a Specially Designated National (SDN) for providing U.S. dollar financial services for two other North Korean entities, Tanchon Commercial Bank (Tanchon) and Korea Hyoksin Trading Corporation (Hyoksin). President Bush identified Tanchon as a weapons of mass destruction proliferator in June 2005, and OFAC designated Hyoksin as an SDN under the WMDPSR in July 2009. Tanchon and Hyoksin were so identified and designated because of their ties to Korea Mining Development Trading Company (KOMID), which OFAC has described as North Korea’s premier arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons.
Beginning after the designation of KKBC as an SDN in August 2009, Ma allegedly conspired with Zhou, Hong and Luo to create or acquire numerous front companies to conduct U.S. dollar transactions designed to evade U.S. sanctions. The indictment alleges that from December 2009 to September 2015, DHID used these front companies, established in offshore jurisdictions such as the British Virgin Islands, the Seychelles, Hong Kong, Wales, England, and Anguilla, and opened Chinese bank accounts to conduct U.S. dollar financial transactions through the U.S. banking system when completing sales to North Korea. These sales transactions were allegedly financed or guaranteed by KKBC. These front companies facilitated the financial transactions to hide KKBC’s presence from correspondent banks in the United States, including a bank processing center in Newark, New Jersey, according to the allegations in the indictment. As a result of the defendants’ alleged scheme, KKBC was able to cause financial transactions in U.S. dollars to transit through the U.S. correspondent banks without being detected by the banks and, thus, were not blocked under the WMDPSR program.
Ma, Zhou, Hong and Luo face a maximum of 20 years’ imprisonment and a $1 million fine on the charge of violating IEEPA, a maximum of 5 years’ imprisonment and a $250,000 fine on conspiracy to violate IEEPA and to defraud the United States, and a maximum of 20 years’ imprisonment and a $500,000 fine on the charge of conspiracy to launder monetary instruments.
U.S. Attorney Carpenito, Assistant Attorney General Benczkowski, and Assistant Attorney General Demers credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark and Special Agent in Charge Sean Kaul in Phoenix, Arizona, for the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the National Security Unit, Sarah Devlin, Chief of the Asset Recovery and Money Laundering Unit (ARMLU), and Assistant U.S. Attorney Barbara Ward of ARMLU in the U.S. Attorney’s Office for the District of New Jersey; Trial Attorney Jennifer Wallis of the Criminal Division’s Money Laundering and Asset Recovery Section; and Trial Attorney Christian E. Ford of the National Security Division’s Counterintelligence and Export Control Section.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
Union Township Man Charged with Running $400 Million Unlicensed Check Cashing OperationRead the Press Release
NEWARK, N.J. – A Union Township, New Jersey, resident with businesses in Newark will appear in court today on charges that he operated a massive unlicensed check cashing operation that cashed over $400 million in checks, U.S. Attorney Craig Carpenito announced.
Fernando Q. Martins, 40, of Union, is charged by complaint with one count of operating an unlicensed money transmitting business. He was arrested on Friday, July 19, 2019, and had an initial appearance before U.S. Magistrate Judge Michael A. Hammer in Newark federal court. Martins is expected to appear before Judge Hammer at 12:30 p.m. today for a bail hearing.
According to documents filed in this case and statements made in court:
Since at least 2015, Martins, despite holding no license, operated a scheme in which he cashed checks, mostly from customers in the construction and building trades, for a fee. In total, Martins and those working for him cashed over $400 million in checks. In addition to cashing checks for his customers, Martins also facilitated the scheme by allowing customers to write checks to businesses he controlled. In exchange for their fees, Martins’ customers could avoid the cash being reported on Currency Transaction Reports. This facilitated the customers’ ability to pay off-the-books employees and laborers in cash and avoid payroll and income taxes.
The charge of operating an unlicensed money transmitting business carries a maximum potential penalty of 5 years in prison and a fine of the greater of (1) twice the gross financial gain derived from the offense, (2) twice the loss caused by the offense, or (3) $250,000.
U.S. Attorney Carpenito credited agents of the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark with the investigation leading to the charge against Martins.
The government is represented by Assistant U.S. Attorney David E. Malagold of the U.S. Attorney’s Office Criminal Division.
Defense counsel: Chester Keller, Esq.
Dominican Man Admits Role in Conspiracy to Distribute over 100 Grams of HeroinRead the Press Release
NEWARK, N.J. – A Dominican man admitted today that he participated in a conspiracy to transport more than 100 grams of heroin from New York to New Jersey, U.S. Attorney Craig Carpenito announced.
Bienvenido Perez Lazala, 31, of the Dominican Republic, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conspiracy to possess with intent to distribute more than 100 grams of heroin.
According to documents filed in this case and statements made in court:
In January 2018, a Mexican narcotics trafficker provided another individual with Lazala’s name and identified Lazala as someone who could assist in establishing narcotics sales in New Jersey. Lazala was contacted and agreed to obtain heroin to sell in New Jersey.
On or about February 5, 2018, following a series of intercepted calls, Lazala obtained 955.9 grams of heroin in Haverstraw, New York for purposes of transporting it back to New Jersey. Lazala then sold the heroin to another individual, who unbeknownst to Lazala was a law enforcement officer.
The conspiracy charge to which Lazala pleaded guilty carries a mandatory minimum penalty of 5 years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing is scheduled for November 4, 2019.
Lazala has been in custody since his arrest in New York on February 5, 2018.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ari Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: David Holman Esq., Newark, New Jersey
Owner of Janitorial Supply Company Sentenced to 50 Months in Prison for Defrauding Customer, Failing to Pay TaxesRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man who owned a janitorial supply company was sentenced today to 50 months in prison for submitting fraudulent bills to a customer and failing to pay taxes on the illicit proceeds of his scheme, U.S. Attorney Craig Carpenito announced.
Mitchell Bleicher, 53, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count each of wire fraud, money laundering, and income tax evasion. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Bleicher was the owner and operator of Allied Materials Inc. (Allied), a janitorial supply company in Berlin, New Jersey. Allied sold janitorial and cleaning supplies, office and break room supplies, food service items, safety equipment, and business printing and imprinted items.
Bleicher admitted that between 2009 and April 2018, he submitted invoices to Company 1, headquartered in Cherry Hill, New Jersey, that falsely listed products that Allied purportedly delivered to Company 1, when, in fact, Allied had not delivered those products. Allied’s fraudulent invoices also inflated the number of products that were actually delivered. As part of his scheme, and to ensure that his fraudulent invoices were accepted, Bleicher admitted that he paid a contractor working in the facilities department of Company 1 who was responsible for the janitorial supplies. Once that contractor left, Bleicher continued his fraudulent activity with the contractor’s replacement and rewarded him by buying him expensive dinners, taking him to professional sports games like the Philadelphia 76ers, and providing him with expensive wines. Later, Bleicher recruited an employee of Company 1 and gave her the fraudulent invoices to submit for payment.
Bleicher admitted that he used the money he got from the scheme – $1,917,381 – on numerous personal expenditures, such as Rolex watches, two Rolls Royce automobiles, two Subaru automobiles, motorcycles, home renovations and college tuition for his children.
Bleicher acknowledged that he failed to pay taxes on the money he received through fraud. Although he filed income tax returns with the IRS for 2011 through 2017, Bleicher did not report the money that he fraudulently obtained from Company 1. By not reporting that additional taxable income, Bleicher admitted that he defrauded the IRS of $578,902 in income tax revenue.
In addition to the prison term, Judge Kugler sentenced Bleicher to three years of supervised release, and ordered him to pay $9.5 million in restitution to Company 1 and $584,255 in restitution to the IRS.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael T. Harpster in Philadelphia; 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 sentencing.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Robert E. Welsh Esq., Philadelphia
Bergen County Man Charged with Mail FraudRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man appeared in court today on charges of mail fraud related to a scheme through which he submitted thousands of false insurance claims to courier delivery service companies, resulting in a loss of $1.7 million, U.S. Attorney Craig Carpenito announced.
Enrico DiCaprio, a/k/a “Sergio Leone,” a/k/a “Hakan Arikan,” 57, of Edgewater, New Jersey, is charged by complaint with one count of mail fraud. He appeared before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in this case and statements made in court:
Beginning in December 2016 and continuing to July 2019, DiCaprio devised and maintained a scheme to defraud the victims, two international courier delivery service companies. Using various aliases and entity names, DiCaprio allegedly submitted thousands of false insurance claims for lost, damaged, and stolen items shipped by the victims. The items were not, in fact, lost, damaged, or stolen.
In response to the fraudulent claims, the victim companies issued reimbursement checks to DiCaprio via the U.S. Postal Service, which were then deposited into his bank accounts. DiCaprio has received approximately $1.7 million in checks from the victims.
The count of mail fraud carries a maximum penalty of 30 years in prison and a $1 million fine.
U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, under the direction of James Buthorn, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office Organized Crime and Drug Enforcement Task Force Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.Defense counsel: Saverio Viggiano Esq., Assistant Federal Public Defender, Newark
Paterson 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 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 Frank Toledo, 30, of Paterson, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to a three-count 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.
“The U.S. Attorney’s Office and our law enforcement partners remain committed to identifying and prosecuting corrupt police officers who violate the civil rights of our people,” U.S. Attorney Carpenito said. “We will continue to aggressively pursue these cases, and we are grateful to our counterparts at the FBI, the Paterson Police Department and the Passaic County Prosecutor’s Office, for their dedicated assistance on this investigation.”
“The FBI has a long history of standing with and assisting our fellow law enforcement officers,” Gregory W. Ehrie, FBI Special Agent in Charge in Newark, said. “When a police department finds rogue officers who violate civil rights, we will answer the call to help rid that department of anyone who tarnishes the badge they wear.”
According to documents filed in this and other cases and statements made in court:
Toledo, along with other Paterson police officers, including Eudy Ramos, Jonathan Bustios, Daniel Pent, Matthew Torres, and others, stopped and searched motor vehicles, without any justification, and stole cash and other items from the occupants. Toledo and the other officers also stopped and searched individuals on the streets of Paterson, and illegally took their money. Toledo and other officers arrested individuals in Paterson, took cash from them, and split it among themselves. To cover up their criminal activity, Toledo and his fellow officers then filed false police reports. For example, on Dec. 2, 2017, Toledo and Ramos stopped and arrested an individual in Paterson and stole approximately $1,000, which they split. Toledo and Ramos then filed a false police report omitting that they had stolen $1,000 from the arrestee.
Toledo communicated via text message with his conspirators regarding their illegal activity. In one text message, on Nov. 16, 2017, Toledo wrote to Bustios, “everything we do is illegal.” In another, Bustios sent Toledo a text message with an animated talking pig that said, “I’m tryin’ to go mango hunting. Let’s goooo.” Toledo replied with an address and wrote “meet me here,” telling Bustios to meet him at a location where they could look to illegally seize “mangos,” a code word for cash.
While on official duty, Toledo also routinely used unreasonable and excessive force in his encounters with individuals in Paterson, causing them bodily harm. For instance, in three incidents in 2017:
• Toledo chased and apprehended a juvenile, pushed the juvenile to the ground, and punched the juvenile several times. Toledo later told Bustios, “I’ve been borderline blacking out when I catch these n[ ]” and “I beat that n[ ] like he owed me money.” Toledo also told Bustios that when he used force on the juvenile, he “was no longer a cop.”
• Toledo and Ramos chased and tackled an individual in Paterson and struck the individual several times in the body. They then released the individual without filing charges. The incident was recorded by a third party and uploaded to YouTube. Toledo told Bustios that the individual who recorded the incident “missed the best part,” which was when Toledo “laid him out.” Toledo then said, “funny shit is that we cut him” and “didn’t even lock him up.”
• Toledo and Torres arrested an individual, handcuffed him behind his back, and placed him in the backseat of their police car. During the ride to police department headquarters, Toledo depressed the brakes on his police car in order to force the individual to slam his body and head against the divider in the backseat of the police car, a tactic known as “brake-checking.” Toledo recorded the incident on his cell phone and sent it to others.
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. Sentencing is scheduled for Oct. 22, 2019.
Bustios pleaded guilty in December 2018 to conspiring to deprive individuals of their civil rights and to extortion under color of official right. 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 Sept. 9, 2019.
Ramos was indicted in a nine-count indictment with conspiring to deprive individuals of their civils rights, depriving individuals of their civil rights, and filing false police reports. His case is pending before Judge Hayden. Daniel Pent was previously charged by complaint with conspiring to deprive individuals of their civil rights. His case, too, is pending. The charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.
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: Dennis S. Cleary Esq., West Orange, New Jersey
Newark Mail Carrier Convicted of Conspiring to Defraud United StatesRead the Press Release
NEWARK, N.J. – A U.S. Postal Service (USPS) mail carrier was convicted today of conspiring to defraud the United States by getting paid to assist a drug dealer in receiving packages of marijuana through the mails, U.S. Attorney Craig Carpenito announced.
Fred Rivers, 47, of Newark, was convicted of one count of conspiracy to defraud the United States by interfering with and obstructing the lawful functions of the USPS to properly deliver only legal and permissible substances and materials through the mails, and for USPS employees to receive only lawful compensation. The jury deliberated for one day, following a four-day trial before U.S. District Judge Esther Salas in Newark federal court. The jury acquitted Rivers of one count of taking bribes.
According to documents filed in this case and the evidence at trial:
Rivers was a mail carrier at the USPS Springfield Station in Newark. From October 2016 through September 2017, he accepted cash payments from Glenn Blackstone in exchange for intercepting packages containing pounds of marijuana that were sent through the mail. Rivers removed the packages – which were addressed to fake names, but real addresses in Newark – and delivered them to Blackstone in the employee parking lot of the Springfield Station. Rivers used a scanner to falsely indicate in USPS records that the packages had been delivered to the addresses on the labels. Rivers received cash payments of approximately $100 from Blackstone for each delivery. Rivers began delivering the intercepted parcels to Blackstone in exchange for cash after another mail carrier, Leonard Gresham, asked Rivers to make the deliveries when Gresham was unavailable to do so.
The conspiracy charge carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain from the offense. Rivers is scheduled to be sentenced on Oct. 29, 2019.
On Feb. 13, 2018, Gresham pleaded guilty to bribery for his role in the scheme; on April 17, 2018, Blackstone pleaded guilty to marijuana trafficking and bribery. Both are awaiting sentencing before Judge Salas.
U.S. Attorney Carpenito credited special agents with the USPS, Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s verdict.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division.
Doctor and Three Others in Bergen County Charged in $10 Million Health Care Fraud SchemeRead the Press Release
Allegedly Paid and Received Kickbacks in Connection with Medically Unnecessary Prescriptions for Pain Creams
NEWARK, N.J. – A doctor and three people associated with a pharmacy were charged today with their respective roles in defrauding the federal workers’ compensation program in a $10 million scheme involving illegal kickbacks and medically unnecessary prescriptions for pain creams, U.S. Attorney Craig Carpenito announced.
Mark Filippone M.D., 71, of Wallington, New Jersey; Joseph Miller, 33, a/k/a “Joseph Vangelas,” of Fort Lee, New Jersey; Marlene Vangelas, 58, of River Vale, New Jersey; and Zachary Ohebshalom, 33, of Edgewater, New Jersey, were each charged by complaint with one count of conspiring to commit health care fraud and one count of violating the federal anti-kickback statute. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in this case and statements made in court:
Beginning in November 2015, the defendants conspired to obtain more than $10 million in health benefits from the federal workers’ compensation program by prescribing and dispensing expensive, but medically unnecessary, pain creams. Filippone treated hundreds of now-former U.S. Postal Service employees for injuries they purportedly suffered on the job. He allegedly facilitated their disability claims by submitting forms and medical reports to the Department of Labor, Office of Workers’ Compensation Program, for patients who traveled from as far away as Florida and Georgia to see him.
Filippone also prescribed expensive topical pain creams, which were not needed or wanted by many of his patients. The complaint alleges that Filippone steered these prescriptions to a pharmacy in Fairlawn, New Jersey, which was owned and operated by Miller and Vangelas, who, along with Ohebshalom, directed their pharmacists to mine reimbursement rates within the federal workers’ compensation program for the ingredients of the pain creams in order to determine the most lucrative formulations. The trio then printed prescription labels for Filippone to use with his patients. Dr. Filippone used the pre-printed labels and sent the prescriptions back to Miller, Vangelas, and Ohebshalom. In order to induce Filippone to prescribe the medically unnecessary pain creams in the exact formulations they wished to obtain, Miller and Vangelas purchased Filippone’s medical office for above fair market value, and then permitted Dr. Filippone to continue to use the premises, for which he routinely failed to pay rent. Miller, Vangelas, and Ohebshalom conspired to leverage the property to force Filippone to continue to send prescriptions to their pharmacy. Filippone continued to feed prescriptions to the pharmacy, so long as Miller and Vangelas permitted him to remain rent-free in the property.
The count of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison; the count of violating the federal anti-kickback statute is punishable by a maximum penalty of five years in prison. Both counts are also punishable by a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark; the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge of the Northeast Area Field Office Matthew M. Modafferi; the Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of IRS-Criminal Investigations, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney David M. Eskew, Chief of the Health Care & Government Fraud Unit in the Criminal Division, Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former NJDCP&P Employee Charged with Production of Child PornographyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man who was previously employed by the N.J. Department of Child Protection and Permanency (NJDCP&P) was charged today for allegedly receiving, distributing and producing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Kayan Frazier, 27, of Somers Point, New Jersey, is charged by complaint with one count of producing visual depictions of a child engaged in sexually explicit conduct, one count of receipt of child pornography and one count of distribution of child pornography. Frazier is expected to appear this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
According to documents filed in this case and statements made in court:
After receiving a report of images of child sexual abuse distributed via Tumblr, law enforcement officers identified Frazier, who was then employed as a case worker at NJDCP&P, as the sender. On April 12, 2019, the Atlantic County Prosecutor’s Office obtained a search warrant for Frazier’s residence and, while executing the warrant, observed Frazier in the company of a minor. Law enforcement officers recovered thousands of additional images of child pornography on Frazier’s cellular telephone and other electronic media, which included images of the minor at his residence.
Frazier was arrested on April 15, 2019, by the Atlantic County Prosecutor’s Office and charged with child endangerment, and has been detained without bail.
The receipt and distribution of child pornography offenses each carry a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. The production of child pornography carries a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; the N.J. State Police, under the direction of Col. Patrick J. Shanahan; and the N.J. Human Services Police with the investigation.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Atlantic County Man Convicted of Heroin Trafficking, Unlawful Possession of Firearm and Witness TamperingRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man has been convicted on heroin trafficking, firearms and witness tampering charges, U.S. Attorney Craig Carpenito announced today.
Sean Figaro, a/k/a “Carlito,” a/k/a “Carlito the don,” 32, was convicted July 11, 2019, on five counts of the indictment against him: Count 1 – distribution of heroin; Count 2 – possession of a firearm in furtherance of his heroin distribution; Count 3 – witness tampering; Count 4 – conspiracy to commit witness tampering; and Count 5 – unlawful possession of a firearm by a convicted felon. Figaro was convicted following a one-week trial before U.S. District Judge Renée Marie Bumb in Camden federal court. The jury deliberated less than three hours before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
On Jan. 10, 2017, law enforcement officers from the Atlantic City Child Exploitation Task Force executed a state search warrant on Figaro’s hotel room in Atlantic City, New Jersey, where he had been staying off and on for at least a year. Officers recovered Figaro’s cell phone and a safe, containing a Jennings .22 caliber pistol loaded with five rounds, including one in the chamber, 119 individually packaged bags of heroin and various items used for packaging drugs for distribution, including additional bags, a digital scale, razor blades and a straw. Figaro’s fingerprints were found on the safe and his DNA was detected on the pistol and a cap, which had been in the safe.
Figaro’s phone contained additional evidence of drug trafficking and firearm possession, including text messages offering heroin for sale and describing how he earned his living: “my occupation is drug dealership;” and “I’m a dealer, not a pimp, not law, a street hustler.”
Figaro sent messages to a potential witness, calling the witness a “rat” and a “snitch” on Facebook, and later attempting to persuade the witness not to testify against him by feigning affection and promising to love and care for the witness.
The counts on which Figaro was convicted carry the following maximum sentences: Count 1 – 20 years in prison; Count 2 – life in prison, with a five-year mandatory minimum sentence consecutive to any other sentence; Count 3 – life in prison; Count 4 – life in prison; and Count 5 – 10 years in prison in prison. Figaro faces additional penalties, including fines of up to $1 million on Count 1, and up to $250,000 on each of Counts 2-5. Sentencing is scheduled for Oct. 14, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; and the N.J. Department of Human Services Police, under the direction of Commissioner Carole Johnson, with the investigation leading to the guilty verdict.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Kristen M. Harberg of the Camden office.
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 who negotiated the sale of 17 firearms over a five-month period was sentenced today to 120 months in prison for possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Reginald Moultrie, 50, previously pleaded guilty before U.S. District Claire C. Cecchi to an information charging him with possessing a firearm as a previously convicted felon. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On July 20, 2017, Moultrie, who had at least one prior felony conviction in Essex County Superior Court, possessed an assault rifle capable of accepting a large capacity magazine. As part of the plea agreement, Moultrie also acknowledged that between May 1, 2017, and Sept. 30, 2017, he negotiated the sale of 17 firearms. Moultrie’s nephew, Richard Lowman, previously pleaded guilty to conspiracy to engage in the unlicensed business of dealing in firearms and is awaiting sentencing.
In addition to the prison term, Judge Cecchi sentenced Moultrie to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officers from the Newark Police Department, under the direction of Department of Public Safety Director Anthony F. Ambrose, for their assistance.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office National Security Unit in Newark.
New Jersey Man Admits Role in $2 Million Fraudulent Check Scheme Targeting Home-Improvement StoresRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man pleaded guilty today in connection with his role in a phony check scheme that resulted in the theft of over $2 million in merchandise from multiple home improvement stores throughout the country, U.S. Attorney Craig Carpenito announced.
John Muyeka, 44, of Sayreville, New Jersey, pleaded guilty to a superseding information charging him with one count of misprision of a felony before U.S. District Judge Katharine S. Hayden 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, Muyeka and other conspirators agreed to obtain merchandise or store credit from home improvement stores in locations along the eastern United States, including New Jersey, by purchasing items with fraudulent checks.
The individuals entered home improvement and other retail stores and gathered several high-value items like air conditioners or hardwood flooring. They then typically “purchased” the items either 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 the individuals had previously opened with a phony check.
During some of the transactions, the conspirators displayed fake driver’s licenses that had been created by Muyeka, 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, the conspirators allegedly stole over $2 million in merchandise from various retailers in New Jersey, New York, Pennsylvania, Delaware, North Carolina, Georgia, Virginia, Connecticut, Massachusetts, and South Carolina.
The count of misprision carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 15, 2019.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, 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.
Florida-Based Doctor Charged with Fraudulently Ordering Genetic TestsRead the Press Release
NEWARK, N.J. – A doctor based in Gainesville, Florida, was charged with conspiracy to commit health care fraud for ordering genetic tests for patients he never saw or treated, U.S. Attorney Craig Carpenito announced today.
Matthew S. Ellis, 53, of Gainesville, Florida, is charged by complaint with one count of conspiracy to commit health care fraud. Ellis made his initial appearance today before U.S. Magistrate Judge Mark Falk in Newark federal court and was released on $250,000 unsecured bond.
According to documents filed in this case and statements made in court:
Ellis served as the chief medical officer for Ark Laboratory Network LLC, a company that purported to operate a network of laboratories that facilitated genetic testing. Two conspirators who operated Ark, Edward Kostishion, 59, and Kacey Plaisance, 37, both of Florida, were each charged by complaint on Jan. 15, 2019, with one count of conspiracy to commit health care fraud.
In October 2018, Kostishion and Plaisance contacted a clinical laboratory in New Jersey and proposed sending the laboratory 10 DNA swabs for genetic tests in return for approximately 50 percent of the total Medicare payments the laboratory received as a result of the tests. Kostishion later sent 10 test orders to the laboratory that listed Ellis as the “Ordering Physician” and contained a certification from Ellis that the tests were medically reasonable and necessary. The test requests contained fraudulent information regarding medical histories and conditions, and falsely represented that Ellis provided the patients with information regarding genetic testing.
One of the test requests, relating to “Patient 1,” indicated that Patient 1 had a personal history of breast cancer at age 44, a prerequisite for Medicare coverage of the particular test requested. However, on Nov. 29, 2018, Patient 1 confirmed to law enforcement officials that the information on the test request was false; Patient 1 never had cancer and never told anyone about having cancer. Patient 1 also stated that Patient 1 submitted to the DNA swab after seeing an advertisement on Facebook that offered a $100 gift card for people interested in genetic testing. Patient 1 stated that the DNA swab was not taken at a medical office, but rather in a “plain old office building” and that “some random guy” took the swab. Patient 1 confirmed never seeing or speaking to a treating physician about the genetic testing, and never saw or spoke to Ellis, the ordering physician listed on the test request.
Ellis practices medicine in Florida, but Patient 1 was located in Oklahoma. All 10 of the patients in the test requests were located in Oklahoma, Arizona, Tennessee, or Mississippi. None of the patients were located in Florida. Additional investigation revealed that Ellis was not licensed to practice medicine in Oklahoma.
The health care fraud count carries a maximum penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott Lampert; and special agents of the U.S. Attorney’s Office for the District of New Jersey, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the Health Care and Government Fraud Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations against the defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Indian National Sentenced to One Year in Prison for Role in Conspiracy to Smuggle Foreign Nationals into United States via Commercial FlightsRead the Press Release
NEWARK, N.J. – An Indian national was sentenced today to 12 months and one day in prison for his role in an international conspiracy to smuggle foreign nationals into the United States via commercial airline flights, New Jersey U.S. Attorney Craig Carpenito announced.
Bhavin Patel, 39, of India, previously pleaded guilty before U.S. District Judge John M. Vazquez to a superseding information charging him with conspiracy to smuggle foreign nationals into the United States for private financial gain. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Agents for the Department of Homeland Security, Homeland Security Investigations (HSI) received information that a smuggling operation run by Patel was attempting to find methods to bring foreign nationals from India into the United States. The investigation revealed that the smuggling organization recruited Indian nationals and others to pay fees in exchange for passage to the United States.
Beginning in October 2013, an undercover law enforcement officer posing as a smuggler began meeting with Patel in Bangkok, Thailand. Patel told the undercover law enforcement officer that he wanted to smuggle Indian nationals into the United States. On three different occasions, Patel or his conspirator transported the Indian nationals to an airport in Thailand, at which point the undercover law enforcement officer would presumably use his contacts to smuggle them into the United States via commercial airline flights. Patel agreed to wire down payments for each individual to be smuggled into the United States and to pay a balance of tens of thousands of dollars for each individual once the foreign nationals arrived in the United States.
Over the ensuing months, Patel arranged for six Indian nationals to be brought to Thailand for smuggling into the United States via Newark Liberty International Airport. Patel was arrested on Dec. 7, 2018, upon his arrival at Newark.
In addition to the prison term, Judge Vazquez sentenced Patel to one year of supervised release.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Thomas S. Kearney of the U.S Attorney’s Office National Security Unit in Newark.
Four Men Indicted for Defrauding Banks in Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – Four men have been indicted for carrying out a scheme to use phony information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit (HELOCs), U.S. Attorney Craig Carpenito announced.
Jorge Flores, 48, of Oakdale, New York; Joseph A. Gonzalez, 45, of Henderson, Nevada; and Jose L. Piedrahita, 57, and Yorce Yotagri, 52, both of Freeport, New York; are each charged by indictment with one count of conspiracy to commit bank fraud. Flores and Gonzalez are also charged with two substantive counts of bank fraud. Yotagri was arraigned July 8, 2019, before U.S. District Judge John Michael Vazquez in Newark federal court. Flores and Piedrahita remain at large. Gonzalez will be arraigned at a date to be determined.
According to documents filed in the case and statements made in court:
From 2010 through 2018, Flores and Simon Curanaj, a real estate broker in the Bronx who has previously pleaded guilty and is awaiting sentencing, ran a mortgage fraud scheme in which they applied for more than $9 million in HELOCs from banks on residential properties in New Jersey and New York.
For instance, Gonzalez and Flores used a property in Jersey City, New Jersey, as part of the scheme. Gonzalez had been allowed to live at the property by the owner in exchange for management services, but neither he nor Flores owned the property. Gonzalez also recruited an individual with good credit to act as a straw buyer (Individual 1). Later, unbeknownst to the owner of the property, a “quitclaim” deed – a deed which contains no warranties of title – was prepared transferring the property to Individual 1. The signatures on the deed were forged.
Gonzalez and Flores then applied for two HELOCs from multiple banks using the Jersey City property as collateral in Individual 1’s name. They concealed the fact that the property offered as collateral was either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender. The applications also contained false information concerning Individual1’s income, which was stated to be higher than his actual income. At the time the applications were made, the value of the property was less than the amount of the HELOC loans for which Gonzalez and Flores applied.
The victim banks eventually issued loans to Individual 1 in excess of $500,000. After the victim banks funded the HELOCs and deposited money into Individual 1’s bank account, Individual 1 disbursed almost all of it to Gonzalez, Flores, and others. Gonzalez used $43,000 of the illicit proceeds to buy a luxury car. Individual 1 eventually defaulted on both HELOC loans.
In another example, Flores, Piedrahita, and Yotagri used a property in Freeport, New York, to carry out a similar scheme.
The conspiracy to commit bank fraud and substantive bank fraud counts carry a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross pecuniary gain to the defendants or twice the gross pecuniary loss to others, whichever is greater.
U.S. Attorney Carpenito credited special agents of the U.S. Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; 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. Attorney Jason S. Gould of the U.S. Attorney’s Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presume innocent unless and until proven guilty.
Bergen County, New Jersey, Man Sentenced to Five Years in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 60 months in prison for distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Barry Goldstein, 46, of Bergenfield, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of distribution of images of child sexual abuse. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From May 2018 through August 2018, an undercover law enforcement officer (the “UC”) communicated over an instant messaging mobile application (the “IM App”) with Goldstein. The IM App allows users to transmit and receive content after users register a username. Goldstein maintained an account on the IM App, which was accessed from Internet Protocol addresses associated with Goldstein’s home.
In May and June 2018, after engaging in explicit conversations with the UC regarding the sexual abuse of children, Goldstein used his account on the IM App to share with the UC multiple files depicting child sexual abuse. On Aug. 29, 2018, law enforcement officers searched Goldstein’s residence, interviewed Goldstein and arrested him.
In addition to the prison term, Judge Arleo sentenced Goldstein to 15 years of 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 Michael, with the investigation leading to today’s sentencing.
The government is represented by Executive Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office in Newark.
Middlesex County Couple Charged with Selling Misbranded and Unapproved New Drugs and Running Drug Manufacturing Facility in Their BasementRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, husband and wife were indicted today in connection with a scheme to market and distribute misbranded drugs and unapproved new drugs and manufacture drugs in an unregistered facility, U.S. Attorney Craig Carpenito announced.
Keith Kovaleski, 55, and Sylvia Kovaleski, 41, of South Amboy, New Jersey, each were charged with one count of conspiring to distribute and cause the receipt and delivery of misbranded drugs and unapproved new drugs, and to impede the functions of the U.S. Food and Drug Administration (FDA) and U.S. Department of Health and Human Services (HHS), 10 counts of introducing misbranded drugs into interstate commerce, four counts of introducing unapproved new drugs into interstate commerce, and one count of manufacturing drugs without registering with the secretary of HHS. In January 2019, Keith Kovaleski was charged in a federal complaint with conspiracy and was released on bail. Both defendants will be arraigned at a date to be determined.
According to documents filed in this case and statements made in court:
The FDA is responsible for enforcing the Federal Food, Drug, and Cosmetic Act (FDCA), a law intended to assure that drugs are safe, effective, and bear accurate labeling containing all required information. The FDA regulates the manufacture, labeling, and distribution of all drugs shipped or received in interstate commerce.
From May 2014 to January 2019, the Kovaleskis owned and operated AA Peptide LLC, a/k/a All American Peptide (AAP). AAP used its website to market and distribute substances primarily used by bodybuilders and others engaged in weight training to enhance performance and mitigate the side effects of performance-enhancing substances.
The AAP website included a bogus legal disclaimer that its products were intended for laboratory research use only, and not as drugs or food. The Kovaleskis employed the bogus “research chemicals” disclaimer to conceal that they and others were distributing misbranded drugs and unapproved new drugs for use by their customers.
The Kovaleskis, though AAP, sold products including: (1) prescription drugs, such as tadalafil, the active ingredient in Cialis; (2) SARMS, used by body-builders as an alternative to steroids; (3) peptides, also used as performance-enhancing substances; and (4) other drugs that were not peptides or SARMS, and had not been approved for human use, for example, clenbuterol, a drug sold in foreign markets but not approved by the FDA. The Kovaleskis failed to provide adequate directions for use for these products, such as frequency of administration and other dosage information.
The Kovaleskis used their South Amboy basement as a manufacturing facility to make and label AAP products, including homemade capsules containing baking soda and tadalafil. The Kovaleskis sold tadalafil capsules that contained significantly higher dosages of the active ingredient than the highest recommended dosage.
The Kovaleskis earned more $2.5 million through the sale of misbranded and unapproved new drugs.
The conspiracy charge carries a maximum potential penalty of up to five years in prison. Each count of introduction of misbranded drugs in interstate commerce, introduction of unapproved new drugs in interstate commerce, and operating an unregistered drug manufacturing facility carries a maximum potential penalty of three years in prison. Each charge also carries a maximum potential fine of up to $250,000 or twice the gross pecuniary gain or loss.
U.S. Attorney Craig Carpenito credited special agents of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, under the direction of Special Agent in Charge Jeffrey J. Ebersole,; special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael Waters; and postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, Newark Division, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorneys Karen D. Stringer and Cari Fais, of the Special Prosecutions Division.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Massachusetts Man Charged with Conspiracy to Distribute HeroinRead the Press Release
NEWARK, N.J. – A Massachusetts man was charged today with conspiring to sell five kilograms of heroin at the Jersey Gardens Mall in Elizabeth, New Jersey, U.S. Attorney Craig Carpenito announced.
Jose Manuel M. Ramos Lemus, 50, a citizen of Mexico residing in Boston, was charged by complaint with one count of conspiring to distribute and possessing with intent to distribute more than one kilogram of heroin. Lemus appeared today before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to documents filed in this case and statements made in court:
On July 6, 2019, Lemus arrived at the Jersey Gardens Mall to meet with a confidential source (CS). In the parking lot of the mall, Lemus assured the CS that he had 5 kilograms of China White heroin for distribution. After leaving the vehicle, Lemus returned with a duffle bag containing five kilograms of heroin and was arrested at the scene.
The count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin carries a mandatory minimum term of 10 years in prison, a maximum penalty of life in prison, and a $10 million fine.
U.S. Attorney Carpenito credited the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office Organized Crime and Drug Enforcement Task Force Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
California Man Sentenced to 18 Months in Prison for Role in Three-Year, Cross-Country Insider Trading Scheme that Netted More Than $3.9 MillionRead the Press Release
TRENTON, N.J. – A day trader from Oak Park, California, was sentenced today to 18 months in prison for his role in a multi-year insider trading scheme that made over $3.9 million in illicit profits by exploiting material information in violation of confidentiality agreements, U.S. Attorney Craig Carpenito announced.
Ronald Chernin, 70, of Oak Park, California, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of conspiracy to commit securities fraud and one count of securities fraud. Judge Shipp imposed the sentence today in Trenton federal court
According to documents filed in this case and statements made in court:
Chernin and co-defendant Steven Costantin, 58, of Farmingdale, New Jersey, worked as day traders for Costantin’s brother-in-law, Steven Fishoff, 62, of Westlake Village, California. Between May 2010 and August 2013, Chernin, Costantin, and Fishoff, as well as a business associate referred to as “Trader A,” expressed interest in participating in numerous stock offerings by publicly traded companies.
Chernin, Costantin, and other members of the day trading operation falsely characterized their trading entities as legitimate, full-service financial management firms with as much as $150 million in assets under management, in order to increase the likelihood that the investment bankers would solicit them to participate in the stock offerings.
Before providing confidential information concerning the companies or the terms of the proposed sales, the investment bankers first required that Chernin, Costantin, Fishoff, Trader A, and their associated trading entities, enter into confidentiality, or “wall-crossing,” agreements, whereby they agreed not to disclose or trade on the inside information and were brought “over the wall” for the narrow purpose of determining whether to purchase the offered securities.
Instead, Chernin, Costantin, and Fishoff violated the confidentiality agreements by directly or indirectly tipping each other and others with the inside information concerning the stock offerings; short selling the issuers’ stock in anticipation of a drop in price when the stock offerings were disclosed to the public; and covering their short positions once the stock offerings were disclosed. Additionally, Fishoff tipped his friend, Paul Petrello, 57, of Boca Raton, Florida, and another conspirator, Joseph Spera.
By trading on the nonpublic information, Chernin, Costantin, and their conspirators gained more than $3.9 million in illicit profits over the course of the three-year scheme. Chernin and Costantin shared 50 percent of their profits with Fishoff.
In addition to the prison term, Judge Shipp sentenced Chernin to three years of supervised release and fined him $2,000.
Costantin previously pleaded guilty to his role in the scheme and was sentenced to one year in prison. Petrello previously pleaded guilty to his role in the scheme and was sentenced to three years of probation. Fishoff pleaded guilty to his role in the scheme and was sentenced to 30 months in prison. Spera pleaded guilty to his role in the scheme and was sentenced to one year of probation.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Marc Berger.
The government is represented by Nicholas P. Grippo, Attorney in Charge of the U.S. Attorney’s Trenton Office; Sarah Devlin, Chief of the Office’s Asset Recovery and Money Laundering Unit (ARMLU), and Senior Trial Counsel Barbara Ward of the ARMLU.
Final Defendants Sentenced in Multi-State Dog Fighting ProsecutionRead the Press Release
The last of 12 defendants to be convicted for their roles in multi-state dog fighting conspiracies were sentenced yesterday in federal court in Trenton, New Jersey, the Department of Justice announced today.
- Justin Love, 39, of Sewell, New Jersey, was sentenced on July 3, 2019, to serve 54 months in prison. A jury had convicted Love of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, six felony counts of possessing a dog intended for use in an animal fighting venture, and two felony counts of purchasing and receiving a dog intended for use in an animal fighting venture.
- Robert A. Elliott, Sr., 50, of Millville, New Jersey, was sentenced on May 30, 2019, to serve 24 months in prison. A jury had convicted Elliott of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, and 12 felony counts of possessing a dog intended for use in an animal fighting venture.
- Dajwan Ware, 46, of Fort Wayne, Indiana, was sentenced on May 29, 2019, to serve 24 months in prison. A jury had convicted Ware of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act.
“Our justice system will not tolerate the torment and death of animals in the fighting ring, as the sentencings in this case demonstrate,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “Although the one chapter represented by this landmark series of cases has now closed, we will continue to place a high priority on pursuing and prosecuting similar illegal animal fighting ventures across the country.”
“Dog fighting exacts a steep toll on animals, local animal shelters, charitable humane organizations, and the taxpayers of New Jersey,” said U.S. Attorney Craig Carpenito for the District of New Jersey. “We applaud our local and federal partners who worked so tirelessly to investigate this case and bring the offenders to justice. The message from today’s sentencing hearing is simple: don’t fight dogs in New Jersey, or elsewhere, if you want to avoid a lengthy prison sentence.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture-Office of Inspector General said. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
“Animal cruelty is a heinous crime that deserves our ultimate condemnation and serious legal consequences for those who engage in it for ‘sport’ and/or profit,” said Brian Michaels, Special Agent in Charge, Homeland Security Investigations, Newark. “As an agency, we are proud to work with our partners to identify, investigate and assist our partners to rout out those who engage in this despicable, inhumane, and illegal practice.”
According to trial evidence and court documents filed in connection with the cases, the defendants and their associates regularly fought dogs – including regularly to the death – and repeatedly trafficked in dogs with other dog fighters across several states so that those dogs could be used in dog fights. They also maintained significant numbers of fighting dogs and substantial dog fighting equipment such as dog treadmills, intravenous drug bags and lines, and “breeding stands” used to immobilize female dogs. At Justin Love’s residence, canine blood was found on the floor, walls, and ceiling of the basement, and Love had tried to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects. Another defendant who previously pleaded guilty admitted that following a fight, his dog died in his car on the way home.
Today’s sentencing brings to a close Operation Grand Champion, a multi-jurisdictional federal dog fighting investigation which commenced in 2015 and resulted in the convictions of 12 defendants in four federal districts. The 12 defendants were sentenced to a total of 315 months in prison. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” As a result of the investigation, 113 dogs were rescued and either surrendered or forfeited to the government.
Judge Peter G. Sheridan presided over the trial and imposed the sentences.
The government was represented in the Trenton proceedings by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Kathleen O’Leary of the District of New Jersey. The case was investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.
Final Defendants Sentenced in Multi-State Dog Fighting ProsecutionRead the Press Release
TRENTON, N.J. – The last of 12 defendants to be convicted for their roles in multi-state dog fighting conspiracies was sentenced today, U.S. Attorney Craig Carpenito of the District of New Jersey and Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division announced.
Justin Love, 39, of Sewell, New Jersey, was sentenced to 54 months in prison. Love was previously convicted of one count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, six counts of possessing a dog intended for use in an animal fighting venture, and two counts of purchasing and receiving a dog intended for use in an animal fighting venture. He was convicted following a trial before U.S. District Judge Peter G. Sheridan, who imposed the sentence today in Trenton federal court.
Robert A. Elliott Sr., 50, of Millville, New Jersey, and Dajwan Ware, 46, of Fort Wayne, Indiana, were each sentenced in May 2019 to two years in prison. Both had been convicted of violating the Animal Welfare Act.
Today’s sentencing brings to a close Operation Grand Champion, a multi-jurisdictional federal dog fighting investigation which commenced in 2015 and resulted in the convictions of 12 defendants in four federal districts. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” As a result of the investigation, 113 dogs were rescued and either surrendered or forfeited to the government
“Dog fighting exacts a steep toll on animals, local animal shelters, charitable humane organizations, and the taxpayers of New Jersey,” U.S. Attorney Carpenito said. “We applaud our local and federal partners who worked so tirelessly to investigate this case and bring the offenders to justice.”
“Our justice system will not tolerate the torment and death of animals in the fighting ring, as the sentencings in this case demonstrate,” Assistant Attorney General Clark said. “Although this landmark case is over, we continue to place a high priority on pursuing and prosecuting illegal animal fighting ventures across the country.”
According to documents filed in these cases, statements made in court and the evidence at trial:
The defendants and their associates regularly fought dogs – including regularly to the death – and repeatedly trafficked in dogs with other dog fighters across several states so that those dogs could be used in dog fights. They also maintained significant numbers of fighting dogs and substantial dog fighting equipment such as dog treadmills, intravenous drug bags and lines, and “breeding stands” used to immobilize female dogs. At Love’s residence, canine blood was found on the floor, walls, and ceiling of the basement, and Love had tried to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects. Another defendant who previously pleaded guilty admitted that following a fight, his dog died in his car on the way home.
In addition to the prison term, Judge Sheridan sentenced Love to three years of supervised release and fined him $9,000.
The government was represented in the Trenton proceedings by Assistant U.S. Attorney Kathleen O’Leary of the District of New Jersey and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section. The case was investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the FBI.
Middlesex County Man Sentenced for Illegally Importing Scorpions and Other WildlifeRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man was sentenced today to six months home confinement and four years’ probation for illegally smuggling wildlife into New Jersey, U.S. Attorney Craig Carpenito announced.
Wlodzimie Lapkiewicz, 30, a/k/a “Wlodek Lapkiewicz,” of Metuchen, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of smuggling wildlife. Judge Sheridan imposed the sentence today in Trenton federal court.
According to the documents filed in the case and statements made in court:
Between July 2015 and July 2018, Lapkiewicz illegally imported and exported scorpions, giant millipedes, and other invertebrate species, conduct which Lapkiewicz acknowledged is commonly referred to as “brown-boxing.” On multiple occasions, Lapkiewicz imported Emperor and Dictator Scorpions, both of which are listed in the Convention on International Trade in Endangered Species (CITES) treaty as protected species. Postal inspectors learned of Lapkiewicz’s illegal imports after live scorpions and giant millipedes escaped from an international parcel while in transit to Lapkiewicz in July 2015. The investigation revealed that Lapkiewicz participated and assisted others in intentionally mislabeling parcels of live wildlife to avoid detection. The investigation also revealed that Lapkiewicz utilized social media to arrange buyers for the scorpions, giant millipedes, and other invertebrates that he had illegally imported.
U.S. Attorney Carpenito credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Special Agent in Charge Honora Gordon, with the investigation leading to these charges.
The government is represented by Special Assistant U.S. Attorney Shawn Barnes of the Criminal Division in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
Executives of Staffing Companies Charged with Visa FraudRead the Press Release
NEWARK, N.J. – Four executives of two information technology staffing companies have been arrested on charges of fraudulently using the H-1B visa program to gain an unfair advantage over competitors, U.S. Attorney Craig Carpenito announced today.
Vijay Mane, 39, of Princeton, New Jersey; Venkataramana Mannam, 47, of Edison, New Jersey; Fernando Silva, 53, of Princeton; and Sateesh Vemuri, 52, of San Jose, California, are each charged by complaint with one count of conspiracy to commit visa fraud.
Vemuri made his initial appearance July 1, 2019, before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. Mannam and Silva appeared before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court on June 25, 2019; Mane appeared before Judge Wettre on June 27, 2019. All were released on $250,000 bond.
According to the documents filed in this case and statements made in court:
Mane, Mannam, and Vemuri controlled two IT staffing companies located in Middlesex County, New Jersey – Procure Professionals Inc. and Krypto IT Solutions Inc. Silva and Mannam also controlled another New Jersey staffing company, referred to in the complaint as “Client A.” The defendants used Procure and Krypto to recruit foreign nationals and sponsor them for H-1B visas, which allow recipients to live and work temporarily in the U.S. in positions requiring specialized skills. To expedite their visa applications, the defendants caused Procure and Krypto to file H-1B applications falsely asserting that the foreign worker/beneficiaries had already secured positions at Client A, when, in reality, no such positions existed. Instead, the defendants used these fraudulent applications to build a “bench” of job candidates already admitted to the United States, who could then be hired out immediately to client companies without the need to wait through the visa application process, giving the defendants an advantage over their competitors in the staffing industry.
The conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael; U.S. Citizenship and Immigration Services, Newark Office of Fraud Detection and National Security; the USCIS National Benefits Center; 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 charges.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office’s Public Protection Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Health Care Foundation Agrees to Pay $1.1 Million to Resolve Claims It Failed to Perform Background Checks, Fraudulently Billed United States for Community Service GrantsRead the Press Release
CAMDEN, N.J. – A health care foundation and two related companies have agreed to pay $1.1 million to resolve claims arising from their administration of federally funded community service grants, U.S. Attorneys Craig Carpenito, District of New Jersey, and William M. McSwain, Eastern District – Pennsylvania, announced today.
From 2012 until 2017, Our Lady of Lourdes Health Foundation and two related companies administered multiple grants funded through the Corporation for National and Community Service (CNCS)’s Senior Corps program. These included the Foster Grandparent Program, which places seniors in school and community settings to work with youth with exceptional needs, and the Senior Companion Program, which places seniors in community and residential settings to assist seniors who have difficulty with tasks of daily living. These programs provide small hourly stipends to the volunteers performing these services, who undergo training and must clear criminal history checks to ensure their suitability for the work.
From 2014 until 2017, Lourdes either failed to perform these criminal history checks or failed to keep records of doing so. As a result, 46 individuals were permitted to work on an FGP or SCP project without any documentation that they received one or more of the required criminal history checks. When a monitoring visit was scheduled in 2017, Lourdes employees cut-and-pasted other background checks in an attempt to conceal this failure from CNCS officials.
Lourdes’ employees – including two program supervisors – falsely completed time sheets showing program participants working hours that were impossible, because the locations at which they were purportedly working were closed.
When the United States commenced its formal investigation in 2017 and brought these issues to the attention of senior Lourdes management, Lourdes voluntarily relinquished the grants immediately and terminated all of the employees who had participated in the grant administration. Lourdes has actively cooperated with the United States since its senior management was advised of the issues in the grant programs. As part of this cooperation, it performed appropriate criminal history checks on all program participants and determined that all 46 individuals would have been permitted to participate in the programs had those checks been timely performed.
“Just as important as the work these volunteers do is the system that has been set up to ensure that they have been thoroughly vetted,” U.S. Attorney Carpenito said. “Whether they failed to keep accurate records of the results of these criminal background checks – or just failed to do them – the results were the same. Our Lady of Lourdes potentially put their clients’ safety at risk. And billing for no-show employees cannot be tolerated, especially when taxpayer dollars are being spent.”
“Criminal history checks are a critical protection for the vulnerable populations with whom Senior Companions and Foster Grandparents work,” U.S. Attorney McSwain said. “Strict compliance with the requirements for these essential safeguards is the surest way to be sure that predators do not gain access to potential victims. And every federal contractor, including community service organizations, is required to honestly and openly report the work that its employees perform. Every dollar spent on an hour that was not really worked is one that is not available to support other community service efforts.
“This fraud deprived school children and senior citizens of promised services and jeopardized their safety with bogus criminal history checks for the volunteers who served them,” CNCS’s Inspector General Deborah J. Jeffrey said. “We hope that the substantial penalties included in this settlement will deter other grantees from similar misconduct. We commend our partners at the Department of Justice for their outstanding efforts in pursuing fraud against national service programs.”
U.S. Attorneys Carpenito and McSwain praised Lourdes’ work in addressing the issues in these programs: “We appreciate the seriousness with which Lourdes senior management has taken this issue and the prompt, aggressive remedial actions that they took to prevent further harm to CNCS programs and potential harm to vulnerable communities. We hope this settlement will serve as a message to other senior managers to be vigilant in overseeing government-funded programs and to ensure that their employees do not attempt to conceal any non-compliance.”
This investigation was conducted jointly by the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as the CNCS Office of Inspector General. Assistant U.S. Attorneys Jessica O’Neill of the District of New Jersey and Paul W. Kaufman and Veronica Finkelstein of the Eastern District of Pennsylvania handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
19-189
Essex County Man Convicted of Wire Fraud and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was convicted for his role in a scheme to steal victims’ personal information, use it to obtain replacement credit cards and then use the cards to purchase high-value items from retailers, U.S. Attorney Craig Carpenito announced today.
Richard Adebayo, 42, of East Orange, New Jersey, was convicted June 27, 2019, on all counts of an indictment charging him with one count of conspiracy to commit wire fraud, 14 counts of wire fraud and two counts of aggravated identity theft following a nine-day trial before Judge Madeline Cox Arleo in Newark federal court. The jury deliberated one day before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
Adebayo and Amos Peter Agbajaife, 41, of Newark, were originally charged by complaint on in September 2014 and indicted in January 2019. Adebayo was arrested in 2014 and Agbajaife remains at large.
From March 2014 to April 2014, Adebayo and Agbajaife fraudulently obtained personal identifying information, including dates of birth, Social Security numbers, and passwords, of credit card holders. They used the information to fraudulently obtain replacement credit cards in the victims’ names and then used the cards to purchase high-value items from retail stores.
Adebayo was carrying a laptop computer when he was arrested. A forensic analysis of the computer revealed the stolen identities, including names, Social Security numbers, dates of birth, addresses, bank account information, and credit card information of several victims. Law enforcement confirmed that more than $200,000 in fraudulent charges were incurred on the credit cards of the victims.
Each count of wire fraud and conspiracy to commit wire fraud carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000, or twice the gain to the defendant or loss to another, whichever is greater. The counts of aggravated identity theft carries a mandatory term of two years in prison, which must run consecutively to any term of imprisonment imposed for other counts of the indictment. Sentencing is scheduled for Sept. 25, 2019.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to conviction.
The government is represented by Assistant U.S. Attorneys Catherine Murphy and Jamel Semper of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The pending charges against Agbajaife are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel: Christopher D. Adams Esq., Holmdel, New Jersey; and Tara Breslow-Testa Esq., Red Bank, New Jersey
Brooklyn, New York, Man Admits Distributing Synthetic Drugs, Fentanyl, and Oxycodone over the InternetRead the Press Release
CAMDEN, N.J. – A New York man today admitted selling dangerous designer drugs, fentanyl, and oxycodone over the internet, U.S. Attorney Craig Carpenito announced.
Shadab Chowdhury, 26, of Brooklyn, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with eight counts of distributing and possessing with intent to distribute synthetic cannabinoids; one count of distributing and possessing with intent to distribute fentanyl; and one count of distributing and possessing with intent to distribute oxycodone. Chowdhury also acknowledged, as relevant conduct, his distribution of cyclopropyl fentanyl.
According to documents filed in this case and statements made in court:
Chowdhury admitted that from January 2016 to July 2018, he used the internet to distribute synthetic cannabinoids, fentanyl, cyclropropyl fentanyl, and oxycodone. He solicited and serviced his customers through three websites, two email accounts, and text messages. His customers included undercover law enforcement officers located in New Jersey, as well as various individuals in New York, Kansas, North Carolina, South Dakota, West Virginia, Georgia, Ohio, Alaska, California, and Virginia.
Chowdhury arranged and coordinated shipments of synthetic cannabinoids, which he termed “fire” or “spice,” as well as shipments of fentanyl and oxycodone. He also prepared the drugs to make them potent and negotiated pricing on the drugs. To avoid law enforcement, Chowdhury deliberately misbranded the synthetic cannabinoids. He also referred to the oxycodone and fentanyl in code. He received payments for his drug shipments via credit card payments, Western Union, direct bank deposit, and cryptocurrency.
Each of the counts to which Chowdhury pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. As part of Chowdhury’s plea agreement, he will forfeit a large number of personal items that were seized from his home, including several computers, computer parts and other electronics that were involved in his crimes. Sentencing is scheduled for Oct. 4, 2019.
U.S. Attorney Craig Carpenito credited special agents with the Drug Enforcement Administration’s Tactical Diversion Squad in the Camden Resident Office, under the direction of Special Agent in Charge Susan Gibson, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Mitchell C. Elman Esq., Ozone Park, New York
Twenty-Two Defendants Charged in Takedown of Atlantic City Drug-Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – Twenty-two people have been charged for their roles as members, associates, and suppliers of an Atlantic City, New Jersey-based drug-trafficking organization that distributed heroin throughout the area, U.S. Attorney Craig Carpenito announced today.
Nineteen defendants were arrested today, one defendant was in custody on previous state charges, and two defendants are not yet in custody. All of the defendants are charged by complaint with one count of conspiracy to distribute or possess with intent to distribute over one kilogram of heroin. The defendants arrested today are scheduled to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court. (See chart below.)
“The defendants charged today have been flooding the streets of Atlantic City and surrounding towns with heroin, often with tragic results,” U.S. Attorney Carpenito said. “Numerous deaths and overdoses have been linked to the ‘brands’ pushed by these drug traffickers. With our law enforcement partners, we are working to get these drugs, and the organizations that distribute them, off the streets of Atlantic City.”
“From international terrorists to street level drug dealers, the FBI is committed to keeping you safe,” FBI Special Agent-in-Charge Gregory W. Ehrie said. “Today's operation should serve as a warning to those thinking of filling the void created by the arrests - we aren’t finished. Our agents are dedicated and persistent. We will continue our efforts to free the community of deadly drugs and drug dealers. We will continue on our mission to protect the public.”
"This is a great day for Atlantic City, and a great day for Atlantic County," Atlantic City Police Chief Henry White Jr. said. "The dismantling of an organization that has brought sorrow and anguish to so many families through the distribution of deadly narcotics is a win for the community. Together, with our federal, state and local partners, we have showed those that wish to invade and flood our neighborhoods with deadly drugs that it will not be tolerated. We will continue to fight on behalf of the men, women and children of our respective communities."
According to the documents filed in this case and statements made in court:
An authorized wiretap investigation revealed that from April of 2017 through June of 2019, the drug trafficking organization’s leader, Khalif Toombs, operated a massive drug distribution ring, utilizing multiple stash houses throughout Atlantic City and numerous drug couriers to re-distribute the heroin. Toombs and his associates coordinated their efforts through the use of phone calls, text messages, and social media. The investigation revealed that Toombs obtained his heroin from a supplier in Paterson, New Jersey, and used Atlantic City associates to make frequent trips to Paterson to obtain his resupply of heroin.
Through the course of the investigation, the FBI determined that Toombs and his associates were distributing multiple “stamps,” or brands, of heroin, including “AK-47,” “Apple,” “Fortnite,” “Rolex,” “Frank Lucas,” “Bentley,” “Pandora,” and “9 ½.” Between Jan. 1, 2017, and June 21, 2019, drugs with these stamps have accounted for 48 deaths and 84 non-fatal overdoses in New Jersey, according to the N.J. State Police Office of Drug Monitoring and Analysis.
The count of conspiracy to distribute or possess with intent to distribute more than one kilogram of heroin with which each defendant is charged is punishable by a minimum of 10 years in prison and a maximum of life in prison.
U.S. Attorney Carpenito credited special agents of the FBI’s Safe Streets South Jersey Violent Incident and Gang Task Force, Atlantic City Resident Agency, and FBI, Newark, under the direction of Special Agent in Charge Ehrie; officers of the Atlantic City Police Department, under the direction of Chief White; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Atlantic County Sheriff’s Department, under the direction of Sheriff Eric Scheffler; and the Pleasantville Police Department, under the direction of Chief Sean Riggin, with the investigation leading to today’s charges. He also thanked the U.S. Department of Homeland Security, Homeland Security Investigations; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the N.J. State Police for their assistance.
The government is represented by Assistant U.S. Attorney Martha K. Nye of the U.S. Attorney’s Office in Camden.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS
NAME
AGE
RESIDENCE
Khalif Toombs
29
Pleasantville, N.J.
Wilbert Toombs
63
Atlantic City
*Blaine Dorsey
54
Atlantic City
Dean Johnson
39
Atlantic City
Mayda Hernandez
50
Atlantic City
Joseph Aversa
37
Ventnor, N.J.
David Ramirez
23
Mays Landing, N.J.
James Blackwell
54
Atlantic City
Khalif Davis
33
Mays Landing
Wayne Burnside
28
Atlantic City
Jeremy Carll
47
Mays Landing
Sarah Taliaferro
26
Brigantine, N.J.
Philip Surace
32
Atlantic City
Valarie Lamar
59
Atlantic City
Karon Carey
35
Atlantic City
*Thomas Randall
25
Mays Landing.
Nasir Brown
26
Somers Point
Tieyesha Tucker
25
Atlantic City
Jamal Marshall
32
Atlantic City
**Quadir Stanley
30
Atlantic City
Tyjuan Demarest
39
Elmwood Park, N.J.
Terryn Kelsey
29
Atlantic City
*Denotes at large
**Denotes in state custodyHudson County Man Charged in Multimillion-Dollar Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man has been indicted for his role in running a large-scale mortgage fraud scheme that involved properties in Jersey City, Union, and elsewhere in New Jersey and caused losses of millions of dollars, U.S. Attorney Craig Carpenito announced today.
Anthony Garvin, 49, of Jersey City, was charged in a superseding indictment returned June 25, 2019, with one count of bank fraud conspiracy and five counts of bank fraud. Garvin was originally indicted on one count of bank fraud conspiracy and one count of bank fraud on Jan. 11, 2019.
According to the documents filed in this case:
From January 2011 through November 2017, Garvin and others engineered fraudulent short sale “flips” of various New Jersey properties with mortgages that were in default, and also fraudulently obtained numerous home equity lines of credit, or “HELOC” loans, using fraudulent documents and information.
The conspirators allegedly arranged simultaneous fraudulent transactions on the same target property. In the first transaction, which involved the sale by the current owner, the conspirators convinced the financial institution holding the mortgage to accept the sale of the target property at a loss, usually to a buyer who was secretly a conspirator or an entity controlled by the conspiracy.
In the second transaction, the conspirators flipped the same target property from the first buyer to a second buyer, who typically obtained a mortgage from another financial institution using false loan applications, pay stubs, bank account statements and title reports provided by members of the conspiracy. The second transaction frequently closed for significantly more or even double the price of the first transaction.
Garvin and others allegedly rigged the short sale process at each step to maximize the difference in price between the two transactions and keep the victim financial institutions from detecting the fraud. The conspirators used various kinds of phony documents and misrepresentations, including generating false pre-approval letters from a New Jersey corporation controlled by a conspirator and generating phony deeds that backdated the closing date of the first transactions.
To obtain HELOC loans, the conspirators allegedly submitted loan applications in the name of straw borrowers, who did not in fact reside at the subject properties, and used false and fraudulent information – including false pay stubs and tax information – to make it appear as though the straw borrowers made more money than they actually did. The conspirators frequently applied for multiple HELOC loans on the same property nearly contemporaneously, withholding from each lender the existence of other applications.
The conspirators then disbursed the funds received from financial institutions – which totaled millions of dollars – into various accounts they controlled to conceal their illegal activities and split the profits.
The count of conspiracy to commit bank fraud and each substantive count of bank fraud are each punishable by a maximum potential penalty of 30 years in prison and a $1 million fine.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the Federal Housing Finance Agency (FHFA) – Office of Inspector General, under the direction of Special Agent in Charge Steven Perez in Newark, with the investigation leading to the superseding indictment.
The government is represented by Assistant U.S. Attorneys David Feder and Zach Intrater of the U.S. Attorney’s Office in Newark.
The charges and allegations in the superseding indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Murdoch Walker II Esq., Atlanta, Georgia; Charles D. Dawkins Jr. Esq., Elizabeth, New Jersey
North Carolina Woman Admits Role in Gun Trafficking SchemeRead the Press Release
CAMDEN, N.J. – A North Carolina woman today admitted her role in an illegal scheme to buy weapons in Georgia and transport them to New Jersey for resale, U.S. Attorney Craig Carpenito announced.
Anastacia Thomas, 26, of Fayetteville, North Carolina, pleaded guilty before U.S. District Judge Joseph Rodriguez in Camden federal court to an information charging her with conspiring to illegally traffic firearms.
According to documents filed in this case and statements made in court:
On Jan. 25, 2018, law enforcement officers conducted a traffic stop in Deptford, New Jersey, of a car registered to Anthony Doyle, 28, also of Fayetteville, North Carolina. Doyle was riding as the front seat passenger while Thomas was driving. The officers observed a Glock handgun in plain view on the front seat passenger floor. This gun was loaded with 14 hollow tip bullets. The officers also observed a firearm box in the backseat of the car, next to a backpack. A search of the car and backpack revealed four additional handguns and two additional firearm boxes.
Law enforcement officers subsequently learned that Thomas had purchased the four handguns in the backpack on Jan. 22, 2018, from a pawnshop in Jonesboro, Georgia. Thomas had purchased several additional firearms from that same pawnshop over the course of multiple visits, and Doyle accompanied Thomas to the pawnshop on at least two of those visits.
Law enforcement officers learned that from Nov. 30, 2017, to Jan. 25, 2018, Doyle and Thomas conspired and worked together to engage in the business of dealing in firearms without a license. Thomas was responsible for purchasing firearms from federally licensed firearms dealers; Doyle used social media to advertise firearms for sale, negotiate pricing, and arrange transactions. Doyle discussed the various firearm transactions in great detail over the course of hundreds of pages of online messages that were analyzed by law enforcement officers.
The charge of conspiring to engage in gun trafficking carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 7, 2019.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Charges against Doyle remain pending. Those charges are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel:
Doyle: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Thomas: Paul A. Sarmousakis Esq., Avalon, New JerseyNew Jersey/Pennsylvania Doctor Indicted for Accepting Bribes and Kickbacks from A Pharmaceutical Company in Exchange for Prescribing Powerful Fentanyl DrugRead the Press Release
A doctor who practiced in New Jersey and Pennsylvania was charged in an indictment unsealed today for his alleged participation in a scheme to receive bribes and kickbacks from a pharmaceutical company in exchange for prescribing large volumes of a powerful fentanyl narcotic.
Assistant Attorney Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Field Office, Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Office of Investigations—New York Region and Special Agent in Charge Susan A. Gibson of the Drug Enforcement Administration’s (DEA) New Jersey Division made the announcement.
Kenneth Sun, M.D., 58, of Easton, Pennsylvania, was charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks and four counts of receiving health care kickbacks. Sun was arrested this morning and appeared this afternoon before U.S. Magistrate Judge Leda Dunn Wettre of the District of New Jersey. A trial date has not been set.
According to the indictment, Sun owned and maintained a pain management medical practice named Progressive Pain Solutions LLC, which had two locations: one in Phillipsburg, New Jersey, the other in Wind Gap, Pennsylvania. The indictment alleges that Sun solicited and received more than $140,000 in bribes and kickbacks from Insys Therapeutics, a pharmaceutical company based in Arizona, in exchange for prescribing more than 28 million micrograms of Subsys, a powerful opioid narcotic designed to rapidly enter a patient’s bloodstream upon being sprayed under the tongue. Subsys, which is sold by Insys Therapeutics and costs thousands of dollars for a month’s supply, contains fentanyl, a synthetic opioid pain reliever which is approximately 50 to 100 times more potent than morphine. The U.S. Food and Drug Administration approved Subsys solely for the “management of breakthrough pain in cancer patients who are already receiving and who are tolerant to around the clock therapy for their underlying persistent cancer pain”. The indictment alleges that Sun prescribed Subsys to patients for whom Subsys was medically unnecessary, not eligible for insurance reimbursement and/or not desired.
The indictment further alleges that the bribes and kickbacks that Sun received from Insys Therapeutics in exchange for prescribing Subsys were disguised as “honoraria” for educational presentations regarding Subsys that Sun purportedly provided to licensed practitioners. In reality, the indictment alleges, these presentations were a sham: they lacked the appropriate audience of licensed practitioners, there was no presentation about Subsys whatsoever, the same individuals attended over and over again and Sun did not attend some of the presentations at all. Sun caused Medicare to pay more than $847,000 for Subsys prescriptions that were medically unnecessary, procured through the payment of kickbacks and bribes, and not eligible for Medicare reimbursement, the indictment alleges.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, HHS-OIG and the DEA. Trial Attorney Rebecca Yuan of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 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.