District of New Jersey

NEWARK, N.J. – A shipping company based in Italy was sentenced today to pay $4 million for discharging oily waste and other pollutants into the sea and then lying about it, U.S. Attorney Craig Carpenito and Deputy Assistant Attorney General Jean E. Williams announced.

The company, d’Amico Shipping Italia S.p.A., previously pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging it with violating the Act to Prevent Pollution from Ships. In addition to the $4 million penalty, the terms of the plea agreement place d’Amico on probation for four years. During probation, the company will be subject to the terms of an environmental compliance program that requires outside audits by an independent company and oversight by a court-appointed monitor

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

The charge to which d’Amico pleaded guilty related to the deliberate concealment of vessel pollution from an oil tanker – the M/T Cielo di Milano – owned by that company, which visited ports in New Jersey multiple times, as well as ports in Maryland and Florida. The company admitted that the ship’s crew intentionally bypassed required pollution prevention equipment by discharging machinery space bilge water and oily waste from the vessel’s engine room through its sewage system into the sea. The company also admitted that crew members falsified the vessel’s Oil Record Book, a required log regularly inspected by the Coast Guard; made false statements to the Coast Guard during its inspection of the M/T Cielo di Milano in January 2015; and destroyed the vessel’s sounding log after the Coast Guard had boarded the vessel.

The company admitted the following in a detailed joint factual statement filed in Court:

• From August 2014 through January 2015, the M/T Cielo di Milano used two different methods to illegally dispose of oily waste, both of which involved discharging it from the vessel’s sewage holding tank into the sea.

 

• Some of the discharges took place within the exclusive economic zone, that is, within 200 nautical miles of the United States.

 

• Two different chief engineers were involved in the illegal discharges and the intentional falsification of the Oil Record Book to cover up those discharges.

 

• One chief engineer falsified the Oil Record Book to state that bilge water had been processed through the vessel’s pollution control equipment when, in fact, it had not.

 

• The crew routinely hid equipment used to conduct the discharges when the vessel entered port.

 

• During a Coast Guard inspection of the vessel in Bayonne, New Jersey, in January 2015, the chief engineer and second engineer lied to inspectors and told lower-level crew members to lie as well.

 

• After the Coast Guard departed the vessel, the chief engineer destroyed a notebook containing tank soundings by burning the pages in the vessel’s boiler flame in order to conceal the notebook from the Coast Guard.

 

The $4 million penalty includes $1 million in organizational community service payments to restore the coastal environment of New Jersey. The funds will be directed to environmental projects that to be selected by the National Fish and Wildlife Foundation to support the cleanup of marine pollution, preservation of aquatic life, and restoration of the shorelines around Newark Bay.

 

            U.S. Attorney Carpenito and Deputy Assistant Attorney General Williams credited special agents of the U.S. Coast Guard Investigative Service, under the direction of Special Agent in Charge Richard D. Cox, with the investigation leading to today’s sentencing. 

 

            The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary                                                      of the Health Care and Government Fraud Unit in Newark and attorneys from the Environmental Crimes Section of the U.S. Department of Justice.

The owner of two defense contracting firms was sentenced to 36 months in prison for providing non-conforming parts for military equipment, illegally sharing sensitive technical information and evading income taxes Assistant Attorney General John Demers and U.S. Attorney Craig Carpenito announced today.

Roger Sobrado, 49, of Marlton, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count each of conspiracy to commit wire fraud, conspiracy to violate the Arms Export Control Act, and income tax evasion. Judge Hillman imposed the sentence on Sept. 4, 2019, in Camden federal court.

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

Sobrado was the owner of two companies: Tico Manufacturing Inc. (TICO), a purported manufacturing company, and Military and Commercial Spares Inc. (MCS), a defense contracting company, both in Berlin Township, New Jersey.

Sobrado admitted that between January 2011 and December 2015, MCS obtained contracts with the U.S. Department of Defense (DoD) by falsely claiming that the military parts it contracted to provide would be exactly as described and provided by authorized manufacturers. The DoD contracts specified that the parts were critical application items for military equipment, including fighter jets and helicopters. Sobrado recruited various family members to participate in the scheme by establishing companies that contracted with the DoD.  Those companies also obtained contracts with the DoD by falsely claiming that the military parts they contracted to provide would be the exact product described and would be provided by authorized manufacturers. In fact, Sobrado used TICO to contract with local manufacturers to supply non-conforming parts to MCS and his family members’ companies at a significantly reduced cost. The non-conforming parts supplied by Sobrado were shipped from New Jersey to various DoD locations around the country.

DoD paid Sobrado and his family members’ companies for the non-conforming parts. The family members then paid Sobrado for the non-conforming parts. Sobrado admitted that he deposited some of his business receipts into his personal bank account and that he paid for personal items from his business account without telling his accountant. For tax years 2011 through 2014, Sobrado reported a total taxable income of $1,608,372. He failed to report additional income of $1,182,405, which caused a loss to the United States of $509,962.

Sobrado also admitted that in August 2005 and in November 2010 he submitted to the DoD a fraudulent application for access to export controlled drawings and technical data on behalf of a family member’s company. Sobrado acknowledged that access to the controlled drawings and technical data was limited to citizens of the United States and to those lawfully in the United States. Sobrado said he submitted the application because his family member told him that he needed access to drawings and that he could not get them because he was not a U.S. citizen.

Sobrado agreed that on July 28, 2011, and at various times between January 2013 and November 2015, the family member, who is illegally in the United States, accessed or downloaded hundreds of drawings that were sensitive in nature and that required special access.

In addition to the prison term, Judge Hillman sentenced Sobrado to three years of supervised release and ordered him to pay $8,043,977 in restitution.

Assistant Attorney General Demers and U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge John S. Grasso; and special agents of the U.S. Attorney’s Office 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 and Trial Attorney David Recker of the Justice Department’s National Security Division.

CAMDEN, N.J. – The owner of two defense contracting firms was sentenced to 36 months in prison for providing non-conforming parts for military equipment, illegally sharing sensitive technical information and evading income taxes, U.S. Attorney Craig Carpenito announced today.

Roger Sobrado, 49, of Marlton, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count each of conspiracy to commit wire fraud, conspiracy to violate the Arms Export Control Act, and income tax evasion. Judge Hillman imposed the sentence on Sept. 4, 2019, in Camden federal court.

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

Sobrado was the owner of two companies: Tico Manufacturing Inc. (TICO), a purported manufacturing company, and Military and Commercial Spares Inc. (MCS), a defense contracting company, both in Berlin Township, New Jersey.

Sobrado admitted that between January 2011 and December 2015, MCS obtained contracts with the U.S. Department of Defense (DoD) by falsely claiming that the military parts it contracted to provide would be exactly as described and provided by authorized manufacturers. The DoD contracts specified that the parts were critical application items for military equipment, including fighter jets and helicopters. Sobrado recruited various family members to participate in the scheme by establishing companies that contracted with the DoD.  Those companies also obtained contracts with the DoD by falsely claiming that the military parts they contracted to provide would be the exact product described and would be provided by authorized manufacturers. In fact, Sobrado used TICO to contract with local manufacturers to supply non-conforming parts to MCS and his family members’ companies at a significantly reduced cost. The non-conforming parts supplied by Sobrado were shipped from New Jersey to various DoD locations around the country.

DoD paid Sobrado and his family members’ companies for the non-conforming parts. The family members then paid Sobrado for the non-conforming parts. Sobrado admitted that he deposited some of his business receipts into his personal bank account and that he paid for personal items from his business account without telling his accountant. For tax years 2011 through 2014, Sobrado reported a total taxable income of $1,608,372. He failed to report additional income of $1,182,405, which caused a loss to the United States of $509,962.

Sobrado also admitted that in August 2005 and in November 2010 he submitted to the DoD a fraudulent application for access to export controlled drawings and technical data on behalf of a family member’s company. Sobrado acknowledged that access to the controlled drawings and technical data was limited to citizens of the United States and to those lawfully in the United States. Sobrado said he submitted the application because his family member told him that he needed access to drawings and that he could not get them because he was not a U.S. citizen.

Sobrado agreed that on July 28, 2011, and at various times between January 2013 and November 2015, the family member, who is illegally in the United States, accessed or downloaded hundreds of drawings that were sensitive in nature and that required special access.

In addition to the prison term, Judge Hillman sentenced Sobrado to three years of supervised release and ordered him to pay $8,043,977 in restitution.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge John S. Grasso; and special agents of the U.S. Attorney’s Office 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 and Trial Attorney David Recker of the Justice Department’s National Security Division.

TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 60 months in prison for receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Lomere T. Walls, 27, of Franklin Park, New Jersey, previously pleaded before U.S. District Judge Brian R. Martinotti to an indictment charging him with one count of receipt of child pornography. Judge Martinotti imposed the sentence today in Trenton federal court.

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

Walls used a peer-to-peer file sharing program, which he installed on his computer several years ago, to download videos and images of child sexual abuse. Between July and November of 2016, law enforcement downloaded dozens videos of child pornography from Walls’ computer. After executing a search warrant at Walls’ home in November of 2016, agents located 149 videos and 92 images of child sexual abuse on Walls’ computer and phone. Walls admitted that he had been actively searching for videos and images of child pornography, which he had previously saved on his computer.

In addition to the prison term, Judge Martinotti sentenced Walls to five years of supervised release.

U.S. Attorney Carpenito credited special agents with the U.S. 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 investigation was also assisted by the Somerset County Prosecutor’s Office under the direction of Prosecutor Michael H. Robertson.

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

Defense counsel: Eric Mark Esq., Newark

CAMDEN, N.J. – A Cumberland County, New Jersey, man was arrested today on charges that he allegedly defrauded more than 30 victims into wiring money to him and his conspirators after he and his conspirators met and wooed the victims on online dating sites, U.S. Attorney Craig Carpenito announced.

Rubbin Sarpong, 35, of Millville, New Jersey, is charged by complaint with one count of conspiracy to commit wire fraud. He is scheduled to make his initial court appearance today before U.S. Magistrate Judge Joel Schneider in Camden federal court.

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

Between January 2016 and Sept. 3, 2019, Sarpong and his conspirators, several of whom reside in Ghana, allegedly participated in an online romance scheme, defrauding victims in New Jersey and elsewhere. Sarpong and the conspirators set up dating profiles on various dating websites, using fictitious or stolen identities and posing as United States military personnel who were stationed overseas. They contacted victims through the dating websites and then pretended to strike up a romantic relationship with them. After establishing virtual romantic relationships with victims on the online dating platforms and via email, the conspirators asked them for money, often for the purported purpose of paying to ship gold bars to the United States. Although the stories varied, most often Sarpong and the conspirators claimed to be military personnel stationed in Syria who received, recovered, or were awarded gold bars. The conspirators told many victims that their money would be returned once the gold bars were received in the United States.

Sarpong and the conspirators used myriad email accounts and Voice Over Internet Protocol phone numbers to communicate with victims and instruct them on where to wire money, including recipient names, addresses, financial institutions, and account numbers. Victims wired money to bank accounts held by Sarpong and others at financial institutions in the United States. Occasionally, victims also mailed personal checks and/or cashier’s checks to the conspirators and also transferred money to the conspirators via money transfer services, such as Western Union and MoneyGram. The funds were not used for the purposes claimed by the conspirators – that is, to transport non-existent gold bars to the United States – but were instead withdrawn in cash, wired to other domestic bank accounts, and wired to other conspirators in Ghana.

Federal law enforcement agents have identified more than 30 victims, with a total loss amount exceeding $2.1 million. Sarpong allegedly personally received $823,386 in victim funds into bank accounts that he owned or controlled. Sarpong posted photographs of himself on social media posing with large amounts of cash, high-end cars and expensive jewelry.

The count of conspiracy to commit wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; with the investigation leading to the charges.

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

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

Defense counsel: Lori M. Koch Esq., Assistant Federal Public Defender, Camden

NEWARK, N.J. – A Bergen County, New Jersey, man today admitted his role in a scheme with his son to use straw buyers and short sales on properties to defraud mortgage lenders out of hundreds of thousands of dollars and to avoid paying taxes on the proceeds of the scheme, U.S. Attorney Craig Carpenito announced.

George Bussanich Sr., 60, of Park Ridge, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to a superseding information charging him with one count of bank fraud conspiracy and one count of tax evasion. His son, George Bussanich Jr., 39, of Upper Saddle River, New Jersey, pleaded guilty to tax evasion before Judge Cecchi in October 2017 and is scheduled to be sentenced Sept. 25, 2019.

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

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

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

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

Bussanich Sr. also failed to disclose on his tax returns hundreds of thousands of dollars in income that he received from his purported medical clinics and surgical centers. He used those funds to purchase high-end luxury vehicles worth a total of over $300,000, including two Land Rover sport utility vehicles and a Ferrari Spyder. He also used those funds to purchase official bank checks to fund the fraudulent short sales.

The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a maximum potential fine of $1 million. The tax evasion charge carries a maximum potential penalty of five years in prison and a maximum potential $250,000 fine. Sentencing is scheduled for Jan. 23, 2020.

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

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

CAMDEN, N.J. - An Atlantic County, New Jersey, man today admitted evading payment of income taxes on money he embezzled from his business, U.S. Attorney Craig Carpentino announced.

Barry Markman, 62, of Margate, New Jersey, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging him with one count of evasion of income tax.

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

Markman was one of the owners of a company that sold and installed shutters, shades and blinds to retail customers. The company also sold shutters, shades and blinds to wholesale customers using various other trade names. Markman admitted that between 2012 and 2016, he took checks written by the company’s customers and deposited those funds into his personal bank account. He later used those funds to gamble.

For 2012 through 2016, Markman substantially underreported his income by initially failing to include on his income tax returns $618,002 he received directly from the company’s customers. Markman admitted that he owed to the United States on this income he embezzled from the company an additional tax of $170,704.

The charge to which Markman pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 6, 2019.

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

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 Williams Esq., Haddonfield, New Jersey

NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today for his role in conspiracies to commit health care fraud and to bribe a doctor, U.S. Attorney Craig Carpenito announced.

Eduard Shtindler, a/k/a “Eddy,” 36, of Paramus, New Jersey, is charged by complaint with one count of conspiracy to commit health care fraud and one count of conspiracy to pay illegal kickbacks to a doctor. He is scheduled to make his initial court appearance today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.

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

From 2012 through at least 2017, Shtindler owned and operated Empire Pharmacy – now closed – in West New York, New Jersey. Starting in 2015, Empire began filling prescriptions for expensive specialty medication that required “prior authorization” before being approved for reimbursement by Medicare, Medicaid, and some private insurance providers. Shtindler intended to entice doctors to use Empire for specialty medication prescriptions by showing that, among other things, Empire received prior authorization approval more successfully than any other pharmacies. To do that, he directed Empire employees, including two pharmacists, to repeatedly falsify prior authorization forms for medications for various conditions, including psoriasis and Hepatitis C. In recorded conversations, Shtindler admitted to his and Empire’s practice of falsifying prior authorization forms in order to receive approval for medication that would not have otherwise been approved. Shtindler and Empire received approximately $2 million in reimbursement payments from Medicare, Medicaid, and other insurance carriers that they otherwise would not have received.

From 2012 through early 2017, Shtindler also participated in a conspiracy to pay bribes to a psychiatrist in Hudson County, New Jersey, to induce the doctor to send prescriptions to Empire.  Shtindler sent Empire employees to deliver some of the bribe payments to the doctor. On occasion, Shtindler secreted cash bribes, in $100 denominations, in pill bottles that were delivered to the doctor. In exchange for these bribes, the doctor steered patients to Empire pharmacy, even though the patients used other pharmacies closer to their homes for all of their other prescriptions. In one recorded conversation between Shtindler and a former Empire employee who had delivered a bribe to the doctor on Shtindler’s behalf, Shtindler stated: “You think [the doctor]’s going to go to the FBI and rat himself out?” In another conversation with the same former employee, Shtindler said: “First off, I didn’t make you do it. I didn’t put a gun to your head. We all made money together.” Empire dispensed approximately $3 million in medications prescribed by the psychiatrist.

The count of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison. The count of conspiracy to pay illegal kickbacks carries a maximum penalty of five years in prison. Both counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense.

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

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

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

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

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

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

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

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

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

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

The counts of theft of government funds are each punishable by a maximum of 10 years in prison; the count of witness tampering is punishable by a maximum of 20 years in prison; and the counts of aggravated identity theft are each punishable by a mandatory minimum of two years in prison. All the counts are also punishable by a fine of up to $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Dec. 10, 2019.

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

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

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

TRENTON, N.J. – A Middlesex County, New Jersey, man and a Bronx, New York, man have been sentenced for their respective roles in a 2018 scheme in which a minor was advertised and provided for commercial sex acts, U.S. Attorney Craig Carpenito announced today.

Aryeh Goodman, 37, of East Brunswick, New Jersey, was sentenced today to 18 months in prison. He previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with interstate travel in aid of a racketeering enterprise. Richard Ortiz, 24, a/k/a “Ace,” of Bronx, New York, was sentenced Aug. 27, 2019, to 96 months in prison. He previously pleaded guilty before Judge Wolfson to an information charging him with conspiracy to commit the sex trafficking of a child. Judge Wolfson imposed both sentences in Trenton federal court.

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

From January 2018 through February 2018, Ortiz and his codefendant, Gabriella Colon, recruited, enticed, and advertised Minor Victim-1, knowing that Minor Victim-1 was less than 18 years old and would be caused to engage in one or more commercial sex acts. Ortiz previously acknowledged having transported Minor Victim-1 from New York into New Jersey and collecting money from numerous individuals who paid to have sexual relations with Minor Victim-1. Aryeh Goodman previously admitted answering an online advertisement that depicted Minor Victim-1 and presented Minor Victim-1 for various sexual acts. Goodman, a previously convicted sex-offender, acknowledged travelling to the East Brunswick motel where Minor Victim-1 was located and paying Ortiz and Colon so he could engage in sexual activities with Minor Victim-1. 

In addition to the prison terms, Judge Wolfson sentenced Goodman to one year of supervised release and Ortiz to five years of supervised release. She ordered Ortiz to register as a sex-offender upon being released from prison. Colon previously pleaded guilty to an information charging her with one count of conspiracy to commit sex trafficking of a child and is scheduled to be sentenced Sept. 26, 2019.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, and detectives with the Middlesex County Prosecutor’s Office with the investigation. He also thanked the East Brunswick and Fort Lee Police Departments for their assistance.

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

NEWARK, N.J. – A South Carolina man was indicted today on charges that he defrauded at least 20 people by soliciting investments in a phony foreign currency trading scheme, Attorney for the United States Rachael Honig announced.

Thomas Lanzana, 51, of Pawleys Island, South Carolina, and formerly of New Jersey, was charged by indictment with two counts of wire fraud and one count of commodities fraud. He was previously charged with the same offenses by criminal complaint on Aug. 10, 2018.

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

From at least 2013, Lanzana solicited approximately $1.1 million from at least 45 customers to invest in what he claimed were highly successful, algorithm-based trading pools in foreign currency derivatives (forex) and other financial instruments. He misrepresented to prospective customers that he was a successful forex trader when he was not. To keep his customers’ trust, Lanzana sent them false account statements, posted false monthly account statements to his companies’ websites showing balances – some in excess of $800,000 – for forex trading accounts that did not exist, and sent false tax documents to customers reporting earnings that did not exist.

Lanzana misappropriated at least $350,000 in customer funds, using some to repay earlier investors in the manner of a Ponzi scheme, and to pay for his personal expenses, including purchases on Amazon.com, payments to a luxury car dealer and a jewelry retailer, and golf expenses. 

The counts of wire fraud with which Lanzana is charged carry a maximum potential penalty of 30 years in prison and a fine of $1 million. The count of commodities fraud carries a maximum potential penalty of 10 years in prison and a fine of $1 million, or twice the gross gain or loss.

Attorney for the United States Honig credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s indictment. She also thanked the U.S. Commodity Futures Trading Commission’s Division of Enforcement for its role in the investigation.

The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Office’s Cyber Crime Unit.

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

NEWARK, N.J. – An investment fund manager was arrested today in connection with an alleged $100 million securities fraud scheme, U.S. Attorney Craig Carpenito announced.

Brenda Smith, 59, of Philadelphia, Pennsylvania, is charged by complaint with four counts of wire fraud and one count of securities fraud. Smith was arrested in Philadelphia and is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.

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

From February 2016 to August 2019, Smith allegedly orchestrated a scheme using her investment fund, Broad Reach Capital, in which she lied to investors about the assets and performance of the fund and falsely stated that she would invest their funds in particular trading strategies. Smith collected more than $100 million in investments. Instead of investing the money as she promised, she diverted millions of dollars of investor funds out of Broad Reach Capital for other purposes, including paying other investors. When confronted with redemption requests by several large investors in Broad Reach Capital, Smith failed to honor the redemption requests and lied about the status of their investment and the fund.

In one instance, Smith allegedly induced Victim 1 to invest in Broad Reach Capital, telling Victim 1 that it was a trade-focused investment fund that employed particular trading strategies. Smith provided a one-page summary “tear sheet” about Broad Reach Capital that contained purported historical performance information, including a claim that the fund had a 1.76 percent return in February 2018. In reality, Broad Reach Capital’s brokerage accounts lost approximately 50 percent of their value in February 2018. Smith also told Victim 1 that the assets of Broad Reach Capital were tens of millions of dollars higher than they actually were. Victim 1 invested millions of dollars. Smith did not invest Victim 1’s money in the trading strategies as promised, but instead transferred Victim 1’s money to non-Broad Reach Capital bank accounts that Smith controlled and paid other investors with Victim 1’s money. Victim 1 eventually made a redemption request for more than $46 million. Smith failed to pay any portion of the redemption request, providing a series of shifting false excuses and explanations for the lack of redemption.

The wire fraud counts are each punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. The securities fraud count is punishable by a maximum of 20 years in prison and a fine of $5 million.

U.S. Attorney Carpenito credited special agents of the FBI Philadelphia Division, under the direction of Special Agent in Charge Michael Harpster, and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s charges. He also thanked the U.S. Securities and Exchange Commission’s Philadelphia Regional Office, under the direction of Director G. Jeffrey Boujoukos, for its assistance.

The government is represented by Senior Trial Counsel Courtney A. Howard of the U.S. Attorney’s Office Economic Crimes Unit.

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

TRENTON, N.J. – Twenty people have been charged for their roles as members, associates, and suppliers of a drug-trafficking conspiracy that distributed cocaine and crack cocaine in the Monmouth County, New Jersey, area, U.S. Attorney Craig Carpenito announced today.

Nineteen defendants were arrested today and one remains at large. They are charged with conspiracy to distribute 500 grams or more of cocaine or 280 grams or more of crack cocaine (See chart below). The defendants arrested today are scheduled to have their initial appearances this afternoon before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.

“As alleged in complaint, the defendants in this organization distributed significant amounts of cocaine and crack cocaine throughout Monmouth County and surrounding municipalities,” U.S. Attorney Carpenito said. “By coordinating closely with our federal, state and local law enforcement partners, we continue to work hard to substantially reduce on the drug trade in in our communities in these areas, and across the state.”

“Today's operation is another example of the FBI's dedication to keeping the public safe,” FBI Special Agent-in-Charge Gregory W. Ehrie, Newark, said. “We know it is a way of life for drug dealers to pollute their neighborhoods with toxic substances so they can profit. It is the FBI's way of life to use dogged determination to find those who are doing the most damage, get them off the streets, and help our local and federal prosecutors put them out of business so the neighborhoods might recover. Our job is made easier when community members take a stand and report any illegal activity they witness.”

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

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

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

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

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

NAME

RESIDENCE

AGE

CHARGE

SENTENCE EXPOSURE

Damion Helmes

Cliffwood, NJ

39

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

 

Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine

Minimum of 5 years, maximum of 40 years

 

Minimum of 10 years, maximum of Life

Derrick Hayes

Neptune, NJ

37

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

Minimum of 5 years, maximum of 40 years

Dequan Copeland

Red Bank, NJ

40

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

Minimum of 5 years, maximum of 40 years

Dawn Stephens

Keansburg, NJ

38

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

 

Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine

Minimum of 5 years, maximum of 40 years

 

Minimum of 10 years, maximum of life

Shantay Walker

Howell, NJ

42

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

 

Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine

Minimum of 5 years, maximum of 40 years

 

Minimum of 10 years, maximum of life

 

*Keith Logan

Long Branch, NJ

38

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

 

Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine

Minimum of 5 years, maximum of 40 years

 

Minimum of 10 years, maximum of life

Shamar Dudley

Long Branch, NJ

42

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

 

Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine

Minimum of 5 years, maximum of 40 years

 

Minimum of 10 years, maximum of life

Cassius Williams

Keyport, NJ

26

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

Minimum of 5 years, maximum of 40

Tonya Underwood

Matawan, NJ

46

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

 

Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine

Minimum of 5 years, maximum of 40

 

Minimum of 10 years, maximum of life

Michelle Torrez

Matawan, NJ

44

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

 

Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine

Minimum of 5 years, maximum of 40

 

Minimum of 10 years, maximum of life

Elizabeth Conover

Laurence Harbor, NJ

28

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

 

Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine

Minimum of 5 years, maximum of 40

 

Minimum of 10 years, maximum of life

Curtis Jenkins

Keyport, NJ

36

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

 

Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine

Minimum of 5 years, maximum of 40

 

Minimum of 10 years, maximum of life

Ralph Lee

Keyport, NJ

40

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

 

Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine

Minimum of 5 years, maximum of 40

 

Minimum of 10 years, maximum of life

Jermaine Hicks

Wall, NJ

39

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

Minimum of 5 years, maximum of 40

Skyler Rogers

Cliffwood, NJ

35

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

 

Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine

Minimum of 5 years, maximum of 40

 

Minimum of 10 years, maximum of life

Terry Haupt

Neptune, NJ

35

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

Minimum of 5 years, maximum of 40

Amad Jones

Long Branch, NJ

37

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

Minimum of 5 years, maximum of 40

Eric Yarbrough

Keansburg, NJ

28

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

 

Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine

Minimum of 5 years, maximum of 40

 

 

 

Minimum of 10 years, maximum of life

Rondell Hill

Lakewood, NJ

35

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

 

Conspiracy to Distribute or Possess with Intent to Distribute more than 280 grams of crack cocaine

Minimum of 5 years, maximum of 40

 

 

 

Minimum of 10 years, maximum of life

Malcolm Gatson

Cliffwood, NJ

43

Conspiracy to Distribute or Possess with Intent to Distribute more than 500 grams of cocaine

Minimum of 5 years, maximum of 40

 

*denotes at large

NEWARK, N.J. – An East Orange, New Jersey, man appeared in court today on charges of distribution of phencyclidine and marijuana, possession of firearms in furtherance of a drug distribution crime, and the use of a minor to distribute drugs, U.S. Attorney Craig Carpenito announced.

Tyree Thomas, a/k/a “Hellboy,” 26, is charged by complaint with seven counts of distribution of phencyclidine, commonly known as PCP; one count of conspiracy to distribute marijuana and phencyclidine; one count of possession with intent to distribute phencyclidine; one count of using a minor to distribute drugs; and one count of possession of a firearm in furtherance of a drug trafficking crime. He appeared today before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.

According to documents filed in this case: Thomas is allegedly the leader of the East Orange set of the Bloods street gang known as the “Sheedside Pirus,” and a high-ranking member of a separate East Orange Bloods set known as the MOB Pirus, both of which primarily operate out of East Orange, Orange and Newark.

An investigation conducted over the course of several months by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) included multiple purchases of PCP and marijuana from Thomas by an undercover ATF agent between April and July of 2019.

The counts of conspiracy to distribute marijuana and PCP are punishable by a maximum of 40 years in prison. The count of employing a juvenile in a drug distribution scheme is punishable by a maximum of 80 years in prison. The count of distribution of PCP is punishable by a maximum of 20 years in prison. The count of possession of a firearm in furtherance of a drug trafficking crime is punishable by five years in prison, to be served consecutively to any other sentence.

U.S. Attorney Carpenito credited special agents of the ATF, under the direction of Special Agent in Charge Charles J. Patterson; officers of the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; officers of the East Orange Police Department, under the direction of Chief Phyllis Bindi; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the N.J. Department of Corrections, under the direction of Acting Commissioner Marcus O. Hicks Esq.; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and the Orange Police Department under the direction of Director Todd Warren, with the investigation leading to the charges.

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 government is represented by Special Assistant U.S. Attorney Naazneen Khan and Senior Trial Counsel Robert Frazer of the Criminal Division’s Violent Crimes Unit, and Assistant U.S. Attorney Vera Varshavsky of the Criminal Division’s Organized Crime/Gangs Unit.

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

Defense counsel: Charles Alvarez Esq., Bloomfield, New Jersey

NEWARK, N.J. – A Morris County, New Jersey, man admitted today possessing bombs, precursor materials, and being a felon in possession of guns, U.S. Attorney Craig Carpenito announced.

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

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

On Feb. 1, 2019, Faschan drove to the home of a person identified in court documents as “Individual 1” in Stanhope, New Jersey, and displayed what he claimed to be a bomb. Shortly thereafter, Faschan detonated the bomb in the area of Lake Lackawanna in Stanhope.

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

Law enforcement agents executed a court-authorized search of Faschan’s home and recovered a cache of weapons, ammunition, and firearms, including:

Firearms, Ammunition, and Large Capacity Magazines

• 9mm Smith and Wesson semi-automatic, Model 5, high-capacity handgun;

• 9mm Fabrique Nationale Herstal semi-automatic handgun, Model FNX-9;

• Mossberg 12-Gauge shotgun, Model 500;

• Savage .22 Caliber long rifle, Model 64;

• Sturm Ruger .22 Caliber handgun, Model Mark 1;

• .556 Caliber ammunition magazine with a 100-round capacity;

• Numerous pistol magazines loaded with 9mm hollow-point rounds.

 

Explosive Devices and Precursor Materials

• Device One, which contained explosive material inside a black container with BB fragmentation, and a green fuse protruding from the device in order to initiate the destructive device;

• Device Two, which contained several containers of lighter fluid affixed around explosive material in the center with a fuse protruding from the device.

• Four plastic containers labeled “exploding targets” containing a substance that appears to be Ammonium Nitrate;

• One package labeled “Thermite” containing separated chemicals;

• One container containing dark-colored powder labeled “Indian Dark;”

• One unlabeled plastic bag containing fine, dark-colored powder;

• One clear plastic container labeled “German Ecartk aluminum powder,”

• One plastic container labeled “Potassium Perchlorate;”

• Three mason jars containing a white substance labelled “KC104;”

• One package of Hobby Fuse;

• Two plastic containers containing sphere-shaped, gray energetic pellets;

• One red and white can labeled “FFg super fine black rifle powder;”

• Thirteen homemade MSeries pyrotechnic devices;

• Four improvised pyrotechnic shot shells;

• One Box labelled “10 flash banger rounds 37MM” containing 17 pyrotechnic shot shells;

• One plastic container containing suspected black powder;

• One plastic container containing dark colored fine powder;

• One bag containing electrical initiators.

 

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

The counts of possession of a destructive device and possession of firearms by a previously convicted felon each carry a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 25, 2019.

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

NEWARK, N.J. – Four Paterson, New Jersey, men are charged for their roles in a scheme to break into U.S. Postal Service (USPS) mail collection boxes throughout northern New Jersey and steal the mail – particularly, checks – inside, U.S. Attorney Craig Carpenito announced today.

Aneuris Henriquez-Lopez, 24, Eleazer Peralta, 19, Fernando Santiago, 26, and Rikinson Rodriguez-Sanchez, 25, are each charged by complaint with one count of conspiracy to commit bank fraud. Henriquez-Lopez, Peralta and Santiago were arrested today and are scheduled to make their initial appearances this afternoon before U.S. Magistrate Court Judge James B. Clark III in Newark federal court. Rodriguez-Sanchez remains at large.

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

The defendants allegedly stole checks from USPS mail collection boxes in Passaic, Bergen, Morris, Essex, and Middlesex counties, and elsewhere, and fraudulently deposited those checks into various bank accounts, often within a day of being stolen. Some of the mail collection boxes were broken into with the use of pry bars, usually late at night. 

The conspiracy to commit bank fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine.

U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector-in-Charge James Buthorn, with the investigation leading to today’s charges. He also thanked the U.S. Secret Service and U.S. Marshals Service for their assistance with the investigation. 

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

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

NEWARK, N.J. – A Sussex County, New Jersey, has been charged with possessing an arsenal of weapons and ammunition, along with white supremacist and racist propaganda, U.S. Attorney Craig Carpenito announced today.

Joseph Rubino, 57, of Lafayette Township, New Jersey, is charged by complaint with one count each of possession with intent to distribute methamphetamine, possession of firearms in furtherance of a drug-trafficking crime, and possession of firearms by a convicted felon. Rubino will appear in Newark federal court at a date to be determined.

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

On July 24, 2019, following a motor vehicle accident, officers with the N.J. State Police observed numerous weapons and ammunition inside Rubino’s crashed vehicle. After executing court-authorized warrants to search Rubino’s vehicle and residence, law enforcement recovered from Rubino’s car and house the following:

• Intratec Arms Model TEC-DC9 semi-automatic assault handgun;
• Cobray Arms Mac-11 9mm semi-automatic assault pistol with a high-capacity magazine;
• Keltec CMR30 .22 caliber semi-automatic rifle loaded with 16 .22 caliber hollow-point cartridges;
• High Standard Derringer .22 caliber double-barrel handgun;
• Polymer 80 9mm semi-automatic handgun;
• Ithaca M-66 20-gauge single shotgun;
• Remington Model 700 .223 caliber bold action rifle with scope;
• Thompson Center .50 caliber muzzle-loading rifle with scope;
• Remington Model 870 Wingmaster 12-gauge pump shotgun;
• New England Firearms 20-gauge single shot shotgun;
• Remington Model 760 .300 Savage pump rifle;
• Glenfield Mod 60 .22 LR caliber semi-automatic rifle;
• Two sawed-off double-barrel shotgun barrels;
• Several high-capacity magazines;
• Numerous silencers;
• An assault rifle scope;
• A grenade launcher;
• A ballistics vest; and
• Numerous additional ammunition of various calibers.

 

In addition to the firearms and ammunition, law enforcement recovered approximately 70 grams of methamphetamine, seven kilograms of marijuana, and 200 marijuana vape cartridges from Rubino’s house.

Rubino was also in possession of a box containing clothing and bumper stickers with “SS Bolts,” which are common white supremacist and neo-Nazi symbols, as well as a document entitled “N****r Owner’s Manual,” containing racist material and purporting to be an instruction manual for owning a slave.

U.S. Attorney Carpenito credited members of the N.J. State Police, under the direction of Col. Patrick J. Callahan; and special agents of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark with the investigation leading to the charges. He also thanked the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, and the Sussex County Prosecutor’s Office, under the direction of Prosecutor Francis A. Koch for their assistance.

The count of possession of methamphetamine with intent to distribute is punishable by a maximum of 40 years in prison; the count of possession of a firearm by a convicted felon is punishable by a maximum of 10 years in prison; and the count of possession of a firearm in furtherance of a drug-trafficking crime is punishable by a maximum of life in prison.

The case is being prosecuted by Assistant U.S. Attorney Vera Varshavsky of the Organized Crime and Gangs Unit in Newark.

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

CAMDEN, N.J. – An Ocean County, New Jersey, woman was sentenced today to 24 months in prison for defrauding New Jersey state health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced.

Kristie Masucci, 37, of Cedar Run, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging her with conspiracy to commit health care fraud. Judge Kugler imposed the sentence today in Camden federal court.

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

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

From January 2015 through February 2016, Masucci served as a recruiter in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the information as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.

The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.

Masucci and conspirators working under her recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Masucci’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Masucci and other members of the conspiracy.

Masucci’s conspirators would then cause the prescriptions to be signed by a doctor who never evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.

According to the information, the Pharmacy Benefits Administrator paid the Compounding Pharmacy more than $50 million for compounded medications mailed to individuals in New Jersey, including $1.8 million for prescriptions submitted by Masucci and her cohorts. Masucci received $388,608 for her role in the scheme.

In addition to the prison term, Judge Kugler sentenced Masucci to three years of supervised release and ordered her to pay $1.8 million in restitution.

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

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

Defense counsel: Amy Luria Esq., Roseland, New Jersey

TRENTON, N.J. – An Atlantic County, New Jersey, man was sentenced today to 96 months in prison for receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Matthew Wolny, 41, of Egg Harbor Township, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of receipt of child pornography. Judge Martinotti imposed the sentence today in Trenton federal court.

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

In September 2013, Wolny, who was then living in Jackson, New Jersey, used a peer-to-peer file sharing software, which he had installed on his computer, to download video files containing images of child sexual abuse from the internet to his computer hard drive.

In addition to the prison term, Judge Martinotti sentenced Wolny to 10 years of supervised release.

U.S. Attorney Carpenito credited special agents of Homeland Security Investigations (HSI), under the direction of Brian Michael, and the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, with the investigation leading to today’s sentencing.

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

Defense counsel: Jack Wenik Esq., Newark

NEWARK N.J. – Two Essex County, New Jersey, men were sentenced today to federal prison terms following their convictions on multiple drug and weapons offenses, U.S. Attorney Craig Carpenito announced.

Jesse Tullies, 54, of Hillside, New Jersey, was sentenced to 235 months in prison and Eugene Williams, 34, of Newark, was sentenced to 190 months in prison. Both were convicted on one count each of conspiracy to distribute heroin, distribution of heroin, distribution of cocaine base, being a felon in possession of a weapon, and use and carrying of a firearm in furtherance of a drug trafficking crime. The defendants were convicted following a three-day trial in June 2018 before U.S. District Judge Kevin McNulty, who imposed the sentences today in Newark federal court.

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

On Oct. 4, 2017, Essex County Sheriff’s Officers witnessed Tullies and Williams involved in what they believed were a number of illegal drug sales in the area of Clinton Place and Weequahic Avenue in Newark. Tullies and Williams were subsequently arrested, and during a search, officers recovered $1,275 in cash from Tullies and $360 from Williams.

During a search of the area where officers had seen Tullies and Williams retrieve suspected narcotics from under the rear bumper of a car, officers also recovered the following items:

• One plastic bag containing 198 glassine envelopes containing suspected heroin, including four glassine envelopes stamped “Black Jack”;

• One plastic bag containing 22 smaller plastic bags and ten plastic jugs containing cocaine base and cocaine;

• A 9mm Beretta semiautomatic handgun loaded with two rounds of 9mm ammunition;

• A 9mm Taurus Millennium PT111 G2 semiautomatic handgun loaded with eight rounds of Sig Sauer 9mm ammunition and four rounds of Winchester 9mm ammunition; and

• A 9mm FEG PA-63 Makarov semiautomatic handgun loaded with two rounds of JSC Barnaul Machine Tool Plant 9mm hollow point ammunition.

In addition to the prison terms, Judge McNulty sentenced Tullies and Williams each to three years of years of supervised release.

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s sentencings.

The government is represented by Assistant U.S. Attorney Elaine Lou of the U.S. Attorney’s Office in Newark and Assistant U.S. Attorney Francisco Navarro of the U.S. Attorney’s Office, Eastern District of New York.

Defense counsel: Tullies: James R. Murphy Esq., Princeton, New Jersey
Williams: Pasquale F. Giannetta Esq., Newark

NEWARK – The United States has reached agreements with the election boards for Ocean and Union counties to ensure people with disabilities can physically access polling locations, U.S. Attorney Craig Carpenito announced today.

From 2015 to 2019, the federal government surveyed more than 100 polling places through four elections in Ocean and Union counties. The surveys found many of those polling places had physical barriers to access, potentially impeding voters who have mobility or vision impairments. The Boards of Elections in those two counties expressed their commitment to making all polling locations accessible to voters with disabilities, as required under Title II of the Americans with Disabilities Act (ADA).

Under the memoranda of agreement, the county election boards will employ temporary measures, such as portable ramps and signage, where appropriate to make polling places accessible. They will also train their poll workers on the requirements of the ADA and how to use temporary measures to ensure each polling place is accessible. The county boards will also survey polling locations for accessibility and maintain the accessibility of each polling place it uses on Election Day. When selecting future polling places, the agreements also require the county boards to select locations that will be accessible during elections. The Department of Justice will monitor the county boards’ compliance with the agreements and provide the counties with technical assistance.

The Ocean and Union county election boards fully cooperated with the U.S. Attorney’s Office to voluntarily reach the agreements, and agreed to take remedial steps soon after learning of these findings to improve physical accessibility at polling places.

“The right of every voter with a disability to vote in person at his or her local polling place is an integral part of our democratic system of government that must be not be diminished or restricted by barriers to access,” U.S. Attorney Carpenito said. “These agreements protect this fundamental right by ensuring voting access to polling places to individuals with mobility disabilities.”

These agreements are part of the Justice Department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places. The Department of Justice has surveyed more than 1,600 polling places and increased polling place accessibility in more than 35 jurisdictions.

The United States is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Civil Rights Unit, Assistant U.S. Attorney Kelly Horan Florio, of the U.S. Attorney’s Civil Rights Unit, and Assistant U.S. Attorneys Elizabeth A. Pascal and Kristin Vassallo, Deputy Chiefs of the U.S. Attorney’s Civil Division.

Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).

NEWARK, N.J. – A Middlesex County, New Jersey, man was indicted today by a federal grand jury for running a multi-year investment fraud scheme that caused millions of dollars of losses, Attorney for the United States Rachael A. Honig announced.

Sandy John Masselli, 57, of Old Bridge, New Jersey, is charged in a superseding indictment with one count of bank fraud, two counts of wire fraud, two counts of securities fraud and one count of aggravated identity theft. Masselli was originally indicted on two counts of bank fraud and three counts of wire fraud on September 19, 2018. 

According to the documents filed in this case:

From September 2011 through October 2017, Masselli solicited millions of dollars in investments from retail investors by fraudulently touting the prospect of his online gaming company, Carlyle Entertainment Ltd., formerly Carlyle Gaming & Entertainment Ltd. (Carlyle), to conduct a lucrative initial public offering (IPO) of its stock on either the NASDAQ or the New York Stock Exchange (NYSE). Masselli induced investors to purchase shares of Carlyle stock by promising them steeply discounted prices in advance of the purported IPO and assuring them that the stock price would increase significantly after the IPO. Masselli further represented that the IPO would occur within weeks of the investors’ stock purchases. 

However, as Masselli knew, Carlyle was not prepared to conduct an IPO, given that neither Masselli nor anyone else on behalf of Carlyle ever filed an application with the NASDAQ or the NYSE to list Carlyle stock on either exchange, or filed with the Securities and Exchange Commission (SEC) a registration statement to list Carlyle shares on a national exchange. Masselli further misrepresented to the investors how he would use their investments, for example telling them that he would allocate investment funds toward improving Carlyle’s online platform and paying legal fees in connection with preparing Carlyle for a looming IPO. Contrary to these claims, however, Masselli misappropriated these funds to pay for his and his family’s own personal expenses.

Within days or weeks of receiving investor funds, Masselli deposited the monies into bank accounts he controlled, many of which were opened under names of fictitious corporate entities in an effort to conceal the source of the funds. Masselli typically used the funds to pay for personal expenses, including paying credit card balances and financing or leasing luxury automobiles.

Masselli also opened a credit card account under the assumed identity of another person, without that person’s authorization, made purchases with the account until he had almost reached or exceeded the credit limit, and then purported to send payments from a bank account that he knew did not have sufficient funds to cover the purchases. Before the fraudulent payments were rejected for insufficient funds, the credit card company temporarily credited the fraudulently opened account based on those payments, providing Masselli access to additional credit and allowing him to continue to make purchases. Masselli ultimately failed to pay the balance and the credit card company sustained a loss.

The bank fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine. The wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud counts each carry a maximum potential penalty of 20 years in prison and a $5 million fine. The aggravated identity theft count carries a mandatory sentence of two years in prison that must run consecutively to the sentence imposed for any other count. 

Attorney for the United States Honig credited special agents of the FBI, under the direction of Special Agent in Gregory W. Ehrie in Newark, with the investigation leading to today’s superseding indictment. 

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

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

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

Ronnie Lopez, 45, of Pennsauken, New Jersey, and Nelson Salcedo, 41, of Camden, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to their roles in managing a drug trafficking conspiracy that was based on the 500 block of Pine Street in Camden. Lopez pleaded guilty to an information charging him with one count of conspiracy to distribute heroin, crack cocaine, cocaine and fentanyl. Salcedo pleaded guilty to an information charging him with one count of conspiracy to distribute heroin, crack cocaine and cocaine. Lopez and Salcedo are the first of 19 defendants who were charged in this case in November 2018 to plead guilty. Charges against the other defendants remain pending.

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

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

Lopez occupied the highest position in the conspiracy, and obtained bulk quantities of illegal drugs for ultimate sale to customers. The organization also had other top-level managers and distributors, such as Salcedo, who obtained drugs from Lopez and other suppliers and prepared and packaged the drugs for distribution downstream. At their plea hearings, both Lopez and Salcedo admitted to distributing thousands of kilograms of illegal drugs in Camden.

The counts to which Lopez and Salcedo pleaded guilty carry a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.

U.S. Attorney Craig Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.

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

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

Defense counsel: Lopez: Stanley O. King Esq., Woodbury, New Jersey
Salcedo: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey

CAMDEN, N.J. – Three men were arrested today in connection with a scheme in which they allegedly stole hundreds of thousands of dollars in government funds using fraudulently procured electronic benefits transfer (EBT) cards, U.S. Attorney Craig Carpenito announced.

Luciano Estevez, 50, and Jose Garcia, 52, both of Camden; and Juan Melo, 56, of Woodlynne, New Jersey, are charged by separate complaints with one count each of conspiracy to defraud the United States and one count each of defrauding the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP). They appeared this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court. A fourth defendant, Octavio Rodriguez, 50, of Pennsauken, New Jersey, is charged with the same crimes and remains at large.

SNAP, formerly known as the food stamp program, is a program administered by the USDA to assist low-income individuals and families with the purchase of groceries and food items. SNAP recipients receive EBT cards, similar to commercial debit cards, to make food purchases. Retailers authorized to accept SNAP benefits have EBT terminals to process the food purchases. Food purchases are made by swiping the EBT card at the terminal, and having customers enter a Personal Identification Number (PIN). The EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.

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

Estevez, Rodriguez, Garcia, Melo, and others allegedly targeted low-income individuals who possessed or had access to EBT cards, and unlawfully purchased the cards from these individuals in exchange for cash and controlled substances. Two confidential sources working with law enforcement engaged in 43 controlled transactions involving EBT cards totaling more than $40,500, which they exchanged for cash and controlled substances, including prescription opioids and narcotics.

The defendants used the unlawfully procured EBT cards to purchase bulk goods and food items from large national superstores. These goods and food items were then resold in small convenience and grocery stores owned or affiliated with the defendants or their associates, resulting in a profit for the defendants. Hundreds of EBT cards fraudulently procured by the defendants were used at these superstores, resulting in the misappropriation of approximately $150,000 in government funds.

Estevez also unlawfully procured an EBT terminal registered to a superstore in Philadelphia, Pennsylvania, to use at his small grocery store in Camden, which was not registered as a lawful SNAP merchant in the USDA program. Estevez was able to unlawfully receive through this terminal approximately $110,000 in SNAP funds. 

The conspiracy count with which all four defendants are charged carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Estevez, Rodriguez, and Garcia each are each charged with a SNAP fraud offense in which the value of the trafficked benefits exceeded $5,000, which carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Melo is charged with a SNAP fraud offense in which the value of the trafficked benefits is less than $5,000, but greater than $100, which carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.

U.S. Attorney Carpenito credited special agents of the FBI Philadelphia Field Office, South Jersey Resident Agency, both under the direction of Special Agent in Charge Michael Harpster in Philadelphia; the U.S. Department of Agriculture-Office of Inspector General, Philadelphia, under the direction of Special Agent in Charge Bethanne M. Dinkins; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Camden County Sheriff’s Department, the N.J. State Police; the N.J. Department of Treasury and the National Guard, with the investigation leading to the arrests.

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

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

NEWARK, N.J. – A Morris County, New Jersey, man today admitted participating in a conspiracy to bill health insurance companies for medically unnecessary compounded prescriptions, U.S. Attorney Craig Carpenito announced.

Peter Frazzano, 46, of Randoph, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiracy to commit health care fraud.

According to documents filed in this case and statements made in court: Frazzano admitted that from November 2014 through March 2016 he participated in a conspiracy to defraud health insurance plans, including the N.J. State Health Benefits plan, by knowingly causing the billing of fraudulent claims for medically unnecessary prescription compounded medications, such as scar creams, pain creams, and metabolic supplements. To ensure that a physician prescribed compounded medications regardless of medical necessity, Frazzano and a conspirator recruited a doctor to sign prescriptions ordering compounded medications without ever examining or interacting with any of the individuals who were to receive the medications.

The count to which Frazzano pleaded guilty is punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. As part of his plea agreement, Frazzano must forfeit $270,751 in criminal proceeds and pay restitution of $2,727,292. Sentencing is scheduled for Nov. 19, 2019.

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

The government is represented by Vikas Khanna, Deputy Chief of the Criminal Division of the U.S.Attorney’s Office in Newark.

Defense counsel: Joseph Shumofsky Esq., Newark

NEWARK, N.J. – A member of the New Jersey Grape Street Crips appeared in court today on charges that include two attempted murders charged as part of a RICO conspiracy, as well as narcotics trafficking, U.S. Attorney Craig Carpenito announced.

Sean Hills, a/k/a “Half A Brain,” a/k/a “Half,” a/k/a “Rydaman,” 28, of Newark, was charged in a two-count indictment with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and distribution of cocaine. Hills made his initial court appearance and was arraigned today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.

Since 2015, more than 80 members of the New Jersey Grape Street Crips have been convicted federally in connection with multiple murders, attempted murders, shootings, drug trafficking, firearms charges, and witness intimidation as part of a coordinated investigation by the FBI, the Drug Enforcement Administration (DEA), and local law enforcement partners.

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

Hills is allegedly a long-time member of the New Jersey Grape Street Crips who has the gang’s senior hierarchy tattooed on his face. On Dec. 15, 2012, Hills repeatedly shot Victim-1 near the area of South 14th Street and 14th Avenue, an area that Hills and other gang-members were trying to take over as part of their drug-trafficking territory. On Feb. 1, 2013, Hills shot Victim-2 numerous times. Both victims survived the attacks. Hills is additionally charged with separate instances of possession with intent to distribute of cocaine.

Hills faces a maximum sentence of up to 20 years on each count for the RICO conspiracy and the narcotics charges, and a fine of $250,000 on the RICO conspiracy charge and $1 million on the drug charge.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sherriff’s Office, under the direction of Armando B. Fontoura, for their long and close collaboration on the case.

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

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

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

Defense Counsel: Olubukola Adetula Esq., East Orange, New Jersey

NEWARK, N.J. – A Virginia-based military contractor doing business in New Jersey will pay $4.02 million to resolve allegations that it improperly billed the United States for extra payments to employees, U.S. Attorney Craig Carpenito, District of New Jersey, announced.

Mission1st Group Inc. (Mission First), a Virginia Corporation which provided program management, systems engineering, and information technology and communications, improperly billed the United States for extra payments to employees, known as uplifts, that were not actually paid to its employees.

Employees of civilian contractors in support of U.S. military forces stationed in Iraq and Afghanistan are entitled to uplifts to their salaries in the form of danger pay and hazardous duty pay. The settlement resolves allegations that Mission First billed uplifts that it was supposed to pay to its employees, but did not actually pay the employees. The United States alleged that Mission First also billed the United States for Federal Insurance Contributions Act (FICA) taxes on the uplift billings, which were in most instances in excess of the statutory cap for the affected employees, and then improperly retained those excess tax payments.

U.S. Attorney Carpenito credited Special Agent Peter DeRado of the Defense Criminal Investigative Service; Special Agents William Schelpf and Kim Canady of the Major Procurement Fraud Unit of the U.S. Army’s Criminal Investigation Division; David Gotlib, an auditor with the Department of Defense Contract Audit Agency; and Steven G. Foster, a contracting officer with the Army Contracting Command, Aberdeen Proving Ground, led by Kenyata L. Wesley Sr., Executive Director, Senior Executive Service, with the investigation.

The government is represented by Senior Trial Counsel Anthony J. Labruna and Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division in Newark, and Trial Attorney Art J. Coulter of the Civil Frauds Section of the Justice Department in Washington, D.C.

Defense counsel: Justin A. Chiarodo Esq., Washington, D.C.

NEWARK, N.J. – A Bergen County, New Jersey, man today admitted distributing and possessing videos and images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

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

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

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

The distribution of child pornography charge to which Salamanca pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. The possession of child pornography charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Salamanca will be required to register as a sex offender. Sentencing is scheduled for Dec. 2, 2019.

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 guilty plea. He also thanked the Bergen County Prosecutor’s Office, the Ridgefield Police Department and the U.S. Postal Inspection Service for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Cyber Crimes Unit in Newark.

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

Jean Noriega, 48, Enna Gonzalez, 53, and John Oyola, 32, of Paterson, New Jersey, were charged in a criminal complaint with one count of conspiracy to commit sex trafficking. The charges were announced by Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division and U.S. Attorney Craig Carpenito for the District of New Jersey.

According to the allegations in the complaint, the defendants conspired to coerce multiple women to engage in commercial sex in New Jersey and New York. Specially, Noriega used violence, threats of violence, threats of drug withdrawal, and other means, to compel the victims to engage in commercial sex for his profit, including after his incarceration in New York in 2017. Oyola and Gonzalez helped Noriega control the victims through various means, collect the proceeds, and otherwise carry out his sex trafficking activities while Noriega was incarcerated.  

Noriega, who is incarcerated in New York on a previous conviction, made his initial appearance today before U.S. Magistrate Judge Thérèse Wiley Dancks in Syracuse federal court in the Northern District of New York. Oyola made his initial appearance Aug. 7, 2019, before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. Gonzalez appeared before Judge Mannion on Aug. 5.

The charges in the complaint are merely allegations, and the defendants are presumed to be innocent unless and until convicted. If convicted of conspiracy to commit sex trafficking, the defendants face a maximum sentence of life imprisonment, a $250,000 fine, and mandatory restitution. 

This case is being investigated by the FBI and the Passaic County Prosecutor’s Office’s Human Trafficking Unit. It is being prosecuted by Assistant U.S. Attorney Sophie Reiter for the District of New Jersey and Trial Attorney Kate Hill for the Civil Rights Division’s Human Trafficking Prosecution Unit.

NEWARK, N.J. – Three New Jersey residents have been charged by complaint for their roles in a sex trafficking conspiracy, U.S. Attorney Craig Carpenito for the District of New Jersey and Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division announced today.

Jean Noriega, 48, Enna Gonzalez, 53, and John Oyola, 32, all of Paterson, New Jersey, were each charged in a criminal complaint with one count of conspiracy to commit sex trafficking.

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

The three defendants conspired to coerce multiple women to engage in commercial sex in New Jersey and New York. Noriega used violence, threats of violence, threats of drug withdrawal, and other means, to compel the victims to engage in commercial sex for his profit, including after his incarceration in New York in 2017. Oyola and Gonzalez helped Noriega control the victims through various means, collect the proceeds, and otherwise carry out his sex trafficking activities while Noriega was incarcerated.  

Noriega, who is incarcerated in New York on a previous conviction, made his initial appearance today before U.S. Magistrate Judge Thérèse Wiley Dancks in Syracuse federal court in the Northern District of New York. Oyola made his initial appearance Aug. 7, 2019, before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. Gonzalez appeared before Judge Mannion on Aug. 5, 2019.

The count of conspiracy to commit sex trafficking carries a maximum penalty of life in prison, a $250,000 fine, and mandatory restitution. 

U.S. Attorney Carpenito credited special agents of the FBI’s Newark Child Exploitation Human Trafficking Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, the Passaic County Prosecutor’s Office’s Human Trafficking Unit, under the direction of Prosecutor Camelia M. Valdes, and the New York State Department of Corrections and Community Supervision Office of Special Investigations, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Sophie Reiter of the U.S. Attorney’s Office for the District of New Jersey and Trial Attorney Kate Hill for the Civil Rights Division’s Human Trafficking Prosecution Unit.

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

 

CAMDEN, N.J. – A former secretary-treasurer of a U.S. Postal Workers Union today admitted embezzling $34,500 of union funds, U.S. Attorney Craig Carpenito announced.

Robert Peter, 58, of Sicklerville, New Jersey, pleaded guilty before U.S. District Judge Noel Hillman in Camden federal court to an information charging him with one count of embezzling funds from the operating account of the Local 526 Postal Workers Union. Local 526 represents approximately 900 members who work in the clerk, maintenance, and motor vehicle crafts for the U.S. Postal Service in southern New Jersey.

Between May 1, 2018, and June 13, 2018, Peter issued eight checks to himself, totaling $22,500, by fraudulently utilizing the union president’s “signature stamp” to authorize the disbursement of members’ money. He also withdrew, without proper authorization, $12,000 in cash from the union’s account through ATM machines in Atlantic City.

The count of embezzlement carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross amount of gain to the defendant or loss to the victim, whichever is greater. Sentencing is scheduled for Nov. 26, 2019.

U.S. Attorney Craig Carpenito credited the special agents of the Office of Labor Management Standards from the Philadelphia-Pittsburgh District Office, under the direction of District Director Kevin Kennedy, with the investigation leading to today’s guilty plea.

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

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

NEWARK, N.J. – A Bergen County, New Jersey, man today admitted that he embezzled funds from an employee benefit plan, U.S. Attorney Craig Carpenito announced.

Howard Preschel, 63, of Teaneck, New Jersey, pleaded guilty before U.S. District Court Judge Susan D. Wigenton in Newark federal court to one count of an indictment charging him with embezzling funds from the CMG Vending Inc. Pension Trust Fund.       

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

Preschel served as a trustee for the CMG Vending Inc. Pension Trust Fund. CMG Vending operated, leased, and rented vending machines throughout New Jersey and New York.  Preschel was, by law, a fiduciary, and therefore required to act solely in the interest of the participants and beneficiaries.

Between November 2010 and April 2018, Preschel embezzled $368,783 from the trust fund by engaging in 52 separate illegal withdrawals or transfers from various accounts. As a result of these illegal withdrawals and transfers, the trust fund lost an additional $93,267 in interest. As part of the plea agreement, Preschel agreed to make restitution to the trust fund in the amount of $462,050. Preschel also agreed to a debarment which prohibits him from acting as a fiduciary on behalf of any employee benefit plan for a period of 13 years.

The embezzlement count to which Preschel pleaded guilty carries a maximum potential sentence of five years in prison and a fine of $250,000 or twice the gross amount of gain to the defendant or loss to the victim, whichever is greater. Sentencing is scheduled for Nov. 13, 2019.   

U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in Mountainside, and the U.S. Department of Labor, Employee Benefits Security Administration, under the direction of Acting Regional Director Thomas Licetti of the New York Regional Office, with the investigation leading to today’s guilty plea. 

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

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                                                                       

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

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.

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.

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.

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.

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 base

10 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 “Rell

30

Conspiracy to distribute one kilogram or more of heroin

Distribution and possession with intent to distribute heroin and cocaine base

10 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 heroin

10 year mandatory minimum; up to life

Five year mandatory minimum; up to 40 years

 

 

*Already in custody on separate state charges

**At large

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.

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.

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.

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.

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.   

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.

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

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

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.  

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.

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 Jersey