District of New Jersey
Press releases recorded for this federal judicial district.
Former Hoboken City Council Candidate Convicted of Conspiring to Use Mail to Promote Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A former candidate for the Hoboken City Council was convicted today of conspiring to promote a voter bribery scheme by use of the mail, U.S. Attorney Craig Carpenito announced.
Francis Raia, 67, of Hoboken, New Jersey, was a candidate for Hoboken City Council in 2013. He was convicted of one count of conspiracy to violate the federal Travel Act for causing the mails to be used in aid of voter bribery, contrary to New Jersey state law, during that election. The jury deliberated for one day, following a five-day trial before Senior U.S. District Judge William J. Martini in Newark federal court.
“The defendant in this case tried to rig a Hoboken municipal election by voting multiple times, both for himself and for a ballot question that he supported,” U.S. Attorney Carpenito said. “He did so by deploying his loyal foot soldiers to buy votes from people who he thought were in need of money, and then creating a phony cover story to conceal his tracks. Fortunately, neither federal law enforcement nor the jury was fooled. Today’s verdict underscores this Office’s continued dedication to uncovering, investigating and prosecuting acts of corruption at every level of New Jersey government.”
“The health of our democracy relies on the integrity of our electoral system,” FBI-Newark Special Agent-in-Charge Gregory W. Ehrie said. “When people use corrupt methods to work around that system, it deprives every constituent of their right to be heard through their vote.”
According to documents filed in this case and the evidence at trial:
Under New Jersey law, registered voters are permitted to cast a ballot by mail rather than in person. To receive a mail-in ballot, voters must complete and submit to their County Clerk’s Office an Application for Vote By Mail Ballot (VBM Application). After the VBM Application is processed by the County Clerk’s Office, voters receive a mail-in ballot.
From October 2013 through November 2013, Raia instructed Dio Braxton, Matt Calicchio, Lizaida Camis, and other conspirators who worked for his campaign, to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots in the November 2013 Hoboken municipal election. The conspirators provided these voters with VBM Applications and then delivered or mailed the completed VBM Applications to the Hudson County Clerk’s office.
After the mail-in ballots were delivered to the voters, at Raia’s direction, the conspirators went to the voters’ residences and instructed them to vote for Raia and in favor of a ballot referendum that Raia supported that would have loosened rent control restrictions in Hoboken. The conspirators promised the voters that they would be paid $50 for casting their mail-in ballots and told them that they could pick up their checks after the election at Raia’s office in Hoboken. Raia and his workers, including Braxton, Calicchio, Camis, and others, checked the ballots to ensure that voters had voted the way that they had instructed them to vote. Raia and his workers also had the voters sign declarations falsely stating that they had been paid in exchange for working on the campaign, when in fact the voters had been paid for their vote. After the election, the voters received $50 checks from a political consulting firm that was paid by Raia’s political action committee. Those $50 checks were never disclosed on Raia’s publicly filed political action committee election reports.
Braxton and Camis previously pleaded guilty to their roles in the conspiracy. Braxton is scheduled to be sentenced on Sept. 10, 2019, and Camis’ sentencing date has yet to be scheduled. Calicchio previously pleaded guilty to violating the federal Travel Act and is scheduled to be sentenced on Sept. 12, 2019. Raia, Braxton, Calicchio, and Camis each face a maximum penalty of five years in prison and a $250,000 fine.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s verdict.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
MS-13 Member Apprehended After Being Placed on FBI’s 10 Most-Wanted Fugitives List Admits Murdering Union County Man as Part of Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – An MS-13 member previously named one of the FBI’s 10 Most Wanted Fugitives today admitted 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, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of racketeering conspiracy.
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.
The charge of racketeering conspiracy carries a maximum sentence of life imprisonment and a $250,000 fine. A plea agreement between the government and Yovany-Gomez calls for Yovany-Gomez to serve an agreed-upon sentence of 25 years in prison if it accepted by the court, at which point the government will dismiss the remaining charges in the 2013 federal indictment against Yovany-Gomez. Sentencing is scheduled for July 31, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. 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 First Assistant Attorney General and Acting Prosecutor Jennifer Davenport, 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.
Defense counsel: Stacy A. Biancamano Esq., Cranford, New Jersey
Employee at Mortgage Company Admits Illegally Accessing Computer to Steal $2 MillionRead the Press Release
CAMDEN, N.J. – A Camden woman today admitted accessing a protected computer without authorization to steal money from her employer and then laundering the proceeds of her theft, U.S Attorney Craig Carpenito announced.
Dilcia Mercedes 38, pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging her with one count of unauthorized access of a computer with intent to defraud and one count of money laundering.
According to documents filed in this case and statements made in court:
From April 2014 to May 2017, Mercedes worked for a mortgage lender as a payment processor, and had access to the company’s computer system. She discovered that some escrow checks were returned to the company as undeliverable. Mercedes admitted that she would monitor those funds by checking monthly reports to see if the funds were ever claimed. If the money was not claimed, Mercedes recruited various family members and friends to allow her to use their bank accounts. With that information, Mercedes used her family members’ and friends’ identities to open reloadable debit/credit accounts. She accessed the company’s computer system and made it appear as if the customer requested that the money be sent via wire transfer into the fraudulent accounts. After creating the request, Mercedes then accessed the company’s computer then approved the transfer, using a co-worker’s login and password.
Mercedes caused approximately 580 fraudulent wire transfers, totaling more than $2 million, from her company’s bank account to bank accounts and reloadable debit/credit accounts controlled by Mercedes’ relatives, friends or associates. She then used the money to pay personal expenses.
The count of accessing a protected computer without authorization to defraud carries a maximum potential penalty of five years in prison and a $250,000 fine. The count of money laundering carries a maximum penalty of 20 years in prison and a fine of $500,000. Sentencing is scheduled for Sept. 23, 2019.
U.S. Attorney Carpenito credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Wyatt Achord, and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Carroll, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Two New Jersey Men Found Guilty in Phony Debt Elimination SchemeRead the Press Release
NEWARK, N.J. – Two individuals were found guilty today for their respective roles in using phony monetary instruments to obtain luxury vehicles and other high value items; one of the defendants was additionally convicted of bankruptcy fraud, U.S. Attorney Craig Carpenito announced.
Germaine Howard King, a/k/a “Germaine Howard,” 43, of Elizabeth, New Jersey, was convicted for his role in a scheme to defraud banks and other lenders using phony money orders to fraudulently discharge a $400,000 mortgage, to fraudulently obtain two Mercedes Benz (one 2007 and one 2010) cars, and to pay off credit card bills. In addition, King was convicted of a scheme to use phony cashier’s checks to pay off his co-defendant’s five luxury cars.
Daniel D. Dxrams, currently known as “Daniel Kusi,” formerly known as “Danny D. Dxrams,” 40, of Maplewood, New Jersey, was convicted for his role in a scheme to fraudulently pay off a Rolls Royce, Bentley, and three Mercedes Benz cars (two 2015 cars and one 2016 car). In addition, Dxrams was convicted of bankruptcy fraud and making a false oath during a bankruptcy proceeding.
According to documents filed in this case and the evidence at trial:
King conspired with Melissa Reynolds to make fraudulent money orders on their home computers. They mailed these phony money orders to a credit union in an effort to fraudulently pay off their two Mercedes Benz cars. Although the credit union rejected both bogus money orders, King and Reynolds mailed correspondences to the credit union falsely claiming that the debt was satisfied. They then stopped paying their car loans, and King kept the car. King and Reynolds mailed a fraudulent money order in the amount of $432,000 to a financial institution to pay off their mortgage. The financial institution erroneously accepted the fraudulent payment and credited it as a payoff for the mortgage. When the financial institution filed a suit seeking to reinstate the fraudulently discharged mortgage, King and Reynolds continued to allege in court that the mortgage had been paid and submitted a phony receipt for the bogus money order. King also made and mailed fraudulent money orders in an attempt to pay off his credit card bills.
Dxrams, King, and Reynolds conspired to fraudulently pay off Dxrams’ five luxury cars. They sent a bogus $101,000 cashier’s check to a finance company that enabled Dxrams to obtain a 2012 Bentley for free. Dxrams sold the car to a third party for approximately $82,000 and then issued a bank check to King for approximately $25,000. The defendants also used this scheme in an effort to fraudulently obtain three Mercedes-Benz cars and a Rolls Royce.
Dxrams was also convicted of bankruptcy fraud and making a false oath before the bankruptcy court. In December 2017, Dxrams filed a bankruptcy petition under penalty of perjury. He falsely concealed his ownership of a car rental business and the gross receipts he earned through this car rental business, his sale of the Bentley, his receipt of money from a personal injury lawsuit, his ownership of firearms, and his marital status, among other things. In January 2018, Dxrams appeared before the bankruptcy trustee and, after being placed under oath, made false statements concerning his bankruptcy petition and his sale of the Bentley.
Reynolds previously pleaded guilty to conspiracy to commit bank fraud and mail fraud affecting financial institutions, and is awaiting sentencing. Another defendant, Arthur M. Martin III, has also pleaded guilty for his role in a scheme to fraudulently discharge a mortgage on his home, and is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. Office of Homeland Security and Preparedness, under the direction of Director Jared Maples; the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Debbi Mayer; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi with the investigation leading to the convictions.
The government is represented by Assistant U.S. Attorney Anthony Moscato, Chief of the U.S. Attorney’s National Security Unit, and Lakshmi Srinivasan Herman, of the National Security Unit, in Newark.
Paterson, New Jersey, Man Charged with Conspiring to Distribute Heroin and CocaineRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man was indicted today for conspiring to distribute heroin, U.S. Attorney Craig Carpenito announced today.
Rolfi Ferreira-Cruz, 25, was charged by indictment with one count of conspiring to distribute and possess with the intent to distribute 100 grams or more of heroin and a quantity of cocaine (Count One), possessing with the intent to distribute 100 grams or more of heroin and a quantity of cocaine (Count Two), and possessing a firearm in furtherance of a drug trafficking crime (Count Three). Ferreira-Cruz is currently in custody in the Dominican Republic for attempted murder in a June 9, 2019, shooting.
Counts One and Two carry a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and a $5 million fine. Count Three carries a mandatory minimum penalty of five years in prison to be served consecutively to any other term of imprisonment.
U.S. Attorney Carpenito credited special agents of DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, as well officers of the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Leah Gould of the OCDETF/Narcotics Unit in Newark.
The charge and allegations of the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Passaic County Man Sentenced to 78 Months in Prison for Role as Brothel LeaderRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 78 months in prison for his role as the leader of a statewide brothel ring that harbored illegal aliens and transported women across state lines for prostitution, U.S. Attorney Craig Carpenito announced.
Juan Fredy Hernandez-Zozaya, 41, of Passaic, New Jersey, was convicted on Jan. 15, 2019, following a one-week trial for conspiracy to commit interstate transport for purposes of prostitution, and conspiracy to harbor illegal aliens. U.S. District Judge Stanley R. Chesler presided over the trial and imposed today’s sentence. The 78-month prison term was ordered to run consecutive to a 56-year state sentence Hernandez-Zozaya had previously received for state murder charges, and included a three-year term of supervised release.
According to documents filed in this case, evidence at trial, and statements made in court:
From at least March 2011 through September 2014, Hernandez-Zozaya served as the leader of a large-scale prostitution ring that operated throughout New Jersey, including at brothel locations in New Brunswick, Trenton, Orange, Asbury Park, Lakewood, and Bridgeton. Hernandez-Zozaya and his girlfriend, Elizabeth Rojas-Rojas, employed dozens of women and other workers to run the brothels, the large majority of whom were in the country illegally.
The conspiracy also involved at least three murders committed at Hernandez-Zozaya’s behest by “enforcers” for the prostitution business that were hired and managed by Hernandez-Zozaya. One such enforcer, Wilmer Chavez Romero, was previously convicted by a jury of multiple counts of racketeering, assault, firearms offenses, and murder in aid of Hernandez-Zozaya’s enterprise. Chavez Romero was sentenced on March 27, 2019, by U.S. District Court Judge William H. Walls to life in prison. Hernandez-Zozaya was himself previously convicted in Cumberland County Superior Court of committing two murders related to the brothel enterprise. In imposing the sentence, Judge Chesler noted these related acts of violence, as well as Hernandez-Zozaya’s “horrendous” conduct in employing and exploiting those women who, as a result of their immigration status, had little choice but to work at the brothels.
U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark with the investigation leading to today’s sentencing. He also thanked the Cumberland County Prosecutor’s Office, Trenton Police Department, Mercer County Prosecutor’s Office, and the N.J. State Police Ballistics Lab, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Meredith Williams and Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Anthony Iacullo Esq., Nutley, New Jersey, and Kelley Sharkey Esq., Brooklyn, New York
Ocean County Man Admits Producing Images of Sexual Abuse of Children and Advertising Child PornographyRead the Press Release
Plea Agreements Call for Total Sentence of 30 to 40 Years in Prison
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted producing images of himself sexually abusing young children, U.S. Attorney Craig Carpenito announced.
Sebastien Attar, 35, of Brick, New Jersey, pleaded guilty before U.S. District Peter G. Sheridan in Trenton federal court to an information charging him with two counts of sexual exploitation of children. Separately, Attar also pleaded guilty before Judge Sheridan to a superseding indictment charging him with one count of advertising child pornography.
According to documents filed in the case and statements filed in court:
Beginning in mid-2017, federal law enforcement began investigating individuals participating in a private chat messaging group dedicated to the discussion and dissemination of images and videos depicting the sexual abuse of children. The private chat group was named “Taboo Train 2.0,” and law enforcement identified Attar as a member of that group, operating with the account identifier “Seb Seb.” The investigation revealed that on multiple occasions and in response to requests from other users, Attar, operating as “Seb Seb,” shared with the “Taboo Train 2.0” chat group images depicting sexual acts between adults and very young children.
In March 2018, in connection with the investigation of the “Taboo Train 2.0” chat group, federal law enforcement agents executed a search warrant at Attar’s Brick, New Jersey residence, and seized a number of electronic devices and electronic storage media. In July 2018, a grand jury sitting in the Northern District of Georgia returned a superseding indictment charging Attar and others with advertising child pornography.
In January 2019, during a forensic review of the electronic media seized pursuant to the search of Attar’s residence, law enforcement discovered graphic images in which an individual – later identified as Attar – had photographed himself engaged in sexual acts with two extremely young children, estimated to be less than one month old and less than six months old, respectively, at the time the images were produced. Upon discovery of these images, Attar promptly was arrested and charged in a criminal complaint filed in the District of New Jersey, leading to the two-count information filed today. As part of today’s resolution, the superseding indictment filed in the Northern District of Georgia against Attar was formally transferred to the District of New Jersey so that Attar could plead guilty to that charge in conjunction with his guilty plea to the information filed in this district.
The statutes under which Attar pleaded guilty each carry a statutory mandatory minimum term of 15 years in prison, a statutory maximum of 30 years in prison, and a maximum fine of $250,000 on each count. If accepted by the Court at the time of sentencing, the parties’ plea agreements would result in Attar serving a stipulated total sentence between 30 and 40 years in prison. Sentencing is scheduled for Oct. 3, 2019.
U.S. Attorney Carpenito credited special agents of the FBI-Newark Field Office, under the direction of Special Agent in Charge Gregory W. Ehrie, and special agents of the FBI-Atlanta Field Office, under the direction of Special Agent in Charge J.C. Hacker, with the investigations leading to today’s guilty pleas. Carpenito also thanked prosecutors from the U.S. Attorney’s Office for the Northern District of Georgia, under the direction of U.S. Attorney Byung J. Pak, for their assistance.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: David Jay Glassman Esq., Marlton, New Jersey
Gloucester County Man Charged with Using Fraudulent Invoices to Steal from Hospitals, Clinics and Doctors’ OfficesRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was arrested today for allegedly mailing more than 10,000 fraudulent invoices for non-existent medical supplies to hospitals, clinics and doctor’s offices throughout the United States, U.S. Attorney Craig Carpenito announced.
Robert S. Armstrong, 48, of Turnersville, is charged by complaint with three counts of mail fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
According to documents filed in this case:
Operating under the name of Pinnacle Medical Supplies, Armstrong prepared fraudulent invoices billing hospitals, clinics and doctors’ offices across the United States for medical supplies that the providers never ordered or received. The invoices included fraudulent shipping information and a fraudulent address.
Armstrong then contracted with a legitimate bulk mailing company to mail more than 10,000 invoices to medical providers. Each invoice included a payment envelope pre-addressed to Pinnacle Medical Supply at a mail box Armstrong had set up with commercial mail receiving agents.
In response to the phony invoices, at least 169 medical providers sent monies to Pinnacle Medical Supply. Armstrong deposited those checks – totaling $43,248 – from the victim medical providers into a bank account he opened in the name of Pinnacle Medical Supply.
The charge of mail fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Armstrong or twice the gross losses to the victims of his offense.U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker in Philadelphia, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Richard Coughlin Esq., Federal Public Defender, Camden
Two New Jersey Men Charged with Robbery of Convenience StoreRead the Press Release
TRENTON, N.J. – Two men have been charged in connection with the armed robbery of a convenience store in Mercer County, New Jersey, on June 16, 2019, U.S. Attorney Craig Carpenito announced today.
Omar Feliciano-Estremera, 42, and Gabriel Lopez, 31, both of Trenton, are each charged by complaint with one count of Hobbs Act robbery and will make their initial court appearances before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court on a date to be determined.
According to the complaint:
Lopez entered a convenience store in Hamilton Township, New Jersey, displayed a black handgun to the clerk and demanded the money in the store’s register. Law enforcement officers conducting surveillance observed Lopez exiting the convenience store immediately after the robbery and heading toward a minivan belonging to Feliciano-Estremera, who was a suspect in an earlier robbery in which his minivan was captured on camera while acting as the getaway car.
In addition to the surveillance, law enforcement officers were tracking Feliciano-Estremera’s cellular phone. As Lopez exited the convenience store, he observed law enforcement vehicles with their lights activated and he ran to a nearby wooded area. Law enforcement officers pursued and apprehended Lopez, who resisted arrest and threatened to shoot an officer. Officers then placed Feliciano-Estremera, who was seated in the driver’s seat of the minivan, under arrest as the suspected getaway driver. Law enforcement officers searched the wooded area through which Lopez had fled and recovered a black handgun matching the description of gun Lopez allegedly carried during the robbery. The convenience store’s video camera also captured Lopez conducting the robbery.
The count of Hobbs Act robbery carries a maximum potential sentence of 20 years in prison and a $250,000 fine, or twice the 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; the Hamilton Police Department, under the direction of Chief James M. Stevens; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Alexander Ramey of the Criminal Division in Trenton.
The charge and allegations in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Twenty-Seven Defendants Charged in Takedown of Newark Open-Air Drug MarketRead the Press Release
NEWARK, N.J. – Twenty-seven people have been charged for their roles as members, associates, and suppliers of a Newark-based drug-trafficking organization that distributed heroin and crack cocaine and used firearms to protect their illegal operation, U.S. Attorney Craig Carpenito announced today.
The charges and arrests resulted from a long-running wiretap investigation led by the U.S. Attorney’s Office and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, in conjunction with the Newark Police Department and the U.S. Drug Enforcement Administration. The charges include operating a continuing criminal enterprise and conspiracies to distribute one kilogram of heroin and/or 280 grams of crack cocaine. (See chart below.)
The 20 defendants arrested today are scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III. Five defendants were already in custody on state charges and two remain at large.
“These defendants are charged with orchestrating and participating in a massive drug trafficking organization that pumped heroin and crack cocaine into the streets of Newark and surrounding areas virtually non-stop,” U.S. Attorney Carpenito said. “As alleged in the complaint, they operated out of an abandoned home in Newark that they turned into a fortress protected by illegal firearms, which featured a fast-food-style drive-through window for the quick and easy sale of these dangerous drugs. We are proud to work with our federal, state, and local partners in targeting criminal organizations like these and bringing the participants to justice.”
“With these types of multi-agency partnerships we can rid the city of some of these criminal gangs that make the neighborhoods they operate unsafe and damage the reputation of the city,” Newark Public Safety Director Anthony F. Ambrose said. “The criminals perpetuate the narrative that Newark is crime-ridden when, in fact, most areas are safe, and the overwhelming majority of people are hard-working folks who want to see their streets cleansed of the criminal element. I’d like to thank U.S. Attorney Craig Carpenito and all of our other federal partners for putting their resources into smashing these rings.”
“These arrests are the culmination of the diligent investigative work conducted by our ATF special agents, in cooperation with our federal, state and local partners, who were tasked with targeting violent offenders in the South District of Newark and beyond,” ATF Newark Field Division Special Agent in Charge Charlie J. Patterson said. “These arrests should serve as a warning to those who choose to plague and flood their communities with violence and drugs. Their engagement in such crimes will bring the full force of the federal justice system against them. ATF would like to especially extend our gratitude to all of our agency partners and the United States Attorney's Office for their continued partnership in combatting violent crime in the greater Newark area.”
“The members of this drug organization went to great lengths to protect their illegal activity by turning an abandoned building into a fortress,” DEA New Jersey Division Special Agent in Charge Susan A. Gibson said. “The around the clock drug distribution of these drug dealers has been a scourge on the community. The public should know that DEA and all of our partners will continue to work to make every community safe.”
According to the documents filed in this case and statements made in court:
Several of the defendants charged today are members and associates of a Bloods-affiliated gang called the “CKarter Boys” – a play on “the Carter,” the name of the drug distribution building in the 1991 film New Jack City. As Bloods members, the CKarter Boys use the letters “CK” to signify “Crip Killer,” a sign of disrespect to their rival gang, the Crips.
The investigation revealed that the organization’s leaders – Shaheed Blake, a/k/a “Sha,” a/k/a “Sha Gotti,” a/k/a “Bruh,” and Anderson Hutchinson, a/k/a “Murda Rah” – operated a massive drug market that operated 24 hours a day, seven days a week, flooding the streets of Newark with heroin and crack cocaine and generating approximately $10,000 in daily revenue.
Blake, Hutchinson, and members of their organization sold heroin and crack cocaine to customers out of two neighboring, abandoned houses near the Newark-Irvington border. These drug dens were located in the heart of a residential community, just two blocks from the Thurgood Marshall Elementary School, an Irvington public school serving children from pre-kindergarten to fifth grade.
The organization made efforts to fortify one of the abandoned residences – 921 South 20th Street in Newark – boarding up all doors and windows until it was virtually impenetrable. The defendants accessed the residence by way of a ladder to a second-floor window, pulling the ladder inside behind them. Once inside, the defendants would sell heroin and crack-cocaine through a small hole that was cut out on a first-floor outer wall, allowing customers to purchase narcotics in exchange for currency, similar to a restaurant’s drive-through window. In a backyard shed, the defendants stored narcotics, a communal cell phone that was used to operate the business, and firearms, including a .45 caliber Hi-Point and 9mm Sig Sauer firearms, and several boxes of .45 caliber and .380 caliber ammunition that were seized during the investigation.
In addition to the charges against Blake, Hutchinson, and numerous members of their distribution operation, five of the organization’s drug suppliers were charged.
U.S. Attorney Carpenito credited special agents of ATF, under the direction of Special Agent in Charge Patterson in Newark; members of the Newark Department of Public Safety, under the direction of Public Safety Director Ambrose, and special agents of the DEA-New Jersey Division, under the direction of Special Agent in Charge Gibson, with the investigation leading to the charges.
He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Irvington Police Department, under the direction of Director Tracy Bowers; the Union County Prosecutor’s Office, under the direction of First Assistant Attorney General and Acting Prosecutor Jennifer Davenport; the Belleville Police Department, under the direction of the Chief Mark Minichini; the West Orange Police Department, under the direction of Chief James Abbott; the Livingston Police Department, under the Direction of Chief Gary Marshuetz; the Nutley Police Department, under the Direction of Chief Thomas J. Strumolo; the Orange Police Department, under the direction of Director Todd Warren; and the Verona Police Department, under the direction of Chief Christopher Kiernan.
The CKarter Boys were Violent Crime Initiative (VCI) targets. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer 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 considered innocent unless and until proven guilty.
19-175
Defendant
Age
Charges
Potential Penalties
Shaheed Blake a/k/a "Sha" a/k/a "Bruh" a/k/a "Sha Gotti"
36
Continuing Criminal Enterprise Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
20 year mandatory minimum; up to life 10 year mandatory minimum; up to life
Anderson Hutchinson a/k/a "Murda Rah"
37
Continuing Criminal Enterprise Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
20 year mandatory minimum; up to life 10 year mandatory minimum; up to life
Keyenn Rodgers a/k/a "Ali Bang"
49
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Jason Colon
37
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Jesse Scott a/k/a "King"
41
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Hanif Yarrell a/k/a "Haz"
37
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
William Teal a/k/a "Bam"
42
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Daquan Lockhart a/k/a "Slim"
29
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
**Jabaar Blake a/k/a "Jab"
39
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Sharif Davis a/k/a "Reek"
36
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Dorrell Blake a/k/a "Rell"
43
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
**David Rogers a/k/a "Fifty"
26
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Roger Thomas a/k/a "Riq"
49
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Anthony Bowens a/k/a "Fu"
55
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin Conspiracy to distribute 28 grams or more of crack cocaine
10 year mandatory minimum; up to life 5 year mandatory minimum; up to 40 years
Shadeasha Ford a/k/a "G-Girl" a/k/a "G-Baby"
40
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Aldoray McClain a/k/a "Sal"
49
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
*Rasheem Langley a/k/a "Q"
46
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin Conspiracy to distribute 28 grams or more of crack cocaine
10 year mandatory minimum; up to life 5 year mandatory minimum; up to 40 years
Brittney Thomas a/k/a "Queen"
30
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
*Andrew Knox a/k/a "Mil"
50
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
**Todd Garrett a/k/a "T"
51
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Majuan Green
38
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
**Lamont Pugh a/k/a "Monty"
50
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Marquise O'Neal a/k/a "Mook"
51
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Rayshell Goff
49
Conspiracy to distribute 28 grams or more of crack cocaine
5 year mandatory minimum; up to 40 years
Bernard Brown a/k/a "BB"
52
Conspiracy to distribute 28 grams or more of crack cocaine
5 year mandatory minimum; up to 40 years
**Paul Johnson
40
Conspiracy to distribute 28 grams or more of crack cocaine
5 year mandatory minimum; up to 40 years
Aaron Watson a/k/a "AR"
42
Distribution of 28 grams or more of crack cocaine
5 year mandatory minimum; up to 40 years
*at large
**in custody on state charges
Middlesex County Man Admits Heroin DistributionRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man today admitted that he conspired to distribute more than 100 grams of heroin as part of a conspiracy responsible for distributing significant quantities of heroin and cocaine in the Bayshore area of Monmouth and Middlesex counties, U.S. Attorney Craig Carpenito announced.
Richard Gethers, a/k/a “Richie,” a/k/a “Bart,” 47, of Perth Amboy, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Gethers also admitted to conspiring to distribute and possess with intent to distribute a quantity of cocaine.
In November 2018, Gethers and 14 others were charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine. Gethers is the third defendant to plead guilty.
According to documents filed in this case and statements made in court:
From May 2017 to November 2018, the defendants and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region of Middlesex and northern Monmouth counties.
Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Gethers and co-defendants Guy Jackson and Deberal Rogers regularly obtained supplies of large quantities of heroin and cocaine for further distribution from Gregory Gillens. Lashawn Mealing, Jackson’s wife, also engaged in the conspiracy to distribute narcotics.
Members of the conspiracy sold the narcotics to other conspirators, distributors, sub-dealers, and end-users in the Bayshore area. Some of the heroin distributed by the conspiracy contains fentanyl, a dangerous synthetic opioid.
The heroin conspiracy count to which Gethers pleaded guilty carries a statutory mandatory minimum term of imprisonment of five years, a maximum potential penalty of 40 years, and a maximum fine of $5 million. Sentencing is scheduled for Oct. 8, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff's Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the N.J. State Police, under the direction of Col. Patrick J. Callahan, Superintendent; the Matawan Police Department, under the direction of Chief Thomas J. Falco, Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief James K. Pigott; the Hazlet Police Department, under the direction of Chief Philip Meehan; and the Aberdeen Police Department, under the direction of Chief John T. Powers, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining 12 defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel: David R. Oakley Esq., Princeton, New Jersey
Somerset County, New Jersey, Man Sentenced to Seven Years in Prison for Interstate Travel to Engage in Illicit Sexual Conduct and Receipt of Child PornographyRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 84 months in prison for interstate travel to engage in sexual activity with a minor and receipt of images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Stephen Bradley Mell, 53, of Far Hills, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of interstate travel to engage in illicit sexual conduct and one count of receipt of child pornography.
According to documents filed in this case and statements in court:
From July 2017 through December 2017, Mell knowingly traveled in interstate commerce for the purpose of engaging in the production of child pornography and sexual acts with a minor who he knew to be less than 17 years of age. Mell also admitted knowingly receiving child pornography in interstate commerce during the same period.
In addition to the prison term, Judge Martinotti sentenced Mell to five years of supervised release, fined him $40,000 and ordered him to pay restitution of $35,200 and a Justice for Victims of Trafficking Act assessment of $5,000.U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit.
Defense counsel: Robert Bianchi Esq., West Caldwell, New Jersey; David Bruno Esq., West Caldwell; Michael Koribanics Esq., Clifton, New Jersey; and John Whipple, Morristown, New Jersey
Former Corrections Officer Admits Distribution of Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted his role in distributing images and videos of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Michael A. Ruggiero, 37, of Forked River, New Jersey, a former corrections officer, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of distribution of child pornography.
According to documents filed in this case and statements made in court:
From April 16, 2016, to April 19, 2016, Ruggiero used a mobile chat application to distribute and share over the internet images and videos of child sexual abuse. Some of the images and videos were of prepubescent children or children under the age of 12. Ruggiero also admitted that he received over the same mobile chat application other images and videos of child sexual abuse and that he possessed additional depictions of child sexual abuse on his cellular telephone at the time of his arrest in June 2017.
The charge of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Oct. 3, 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 A. Michael; inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Daniel B. Brubaker, Philadelphia Division; and members of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Telesforo Del Valle Jr. Esq., New York
Dental Assistant Sentenced to 19 Months in Prison for Unlawful Prescription Opioid Pain Pills DistributionRead the Press Release
CAMDEN, N.J. – A Pennsylvania woman was sentenced today to 19 months in prison for unlawfully distributing prescription opioid pain medication in the Philadelphia and South Jersey areas, U.S. Attorney Craig Carpenito announced.
Nancy Ayres, 44, a/k/a “Nancy Esslinger,” of Upper Chichester, Pennsylvania, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging her with one count of distributing and possessing with intent to distribute oxycodone. Judge Bumb imposed the sentence today in Camden federal court.
According to the documents filed in the case and statements made in court:
Ayres is a dental assistant and has worked in several dental offices in the Philadelphia area and neighboring states. Beginning in at least December 2017, Ayres obtained prescriptions in close proximity to each other for large quantities of oxycodone pills from at least three different medical professionals.
Between April 2018 and June 2018, Ayres allegedly sold 1,044 15- and 20-milligram oxycodone tablets. Ayres made representations that she could obtain other prescription medications for sale, including muscle relaxers and medications for pain management, erectile dysfunction, and anxiety.
In addition to the prison term, Judge Bumb sentenced Ayres to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson,; and the N.J. Attorney General’s Atlantic City Task Force, under the direction of Attorney General Gurbir S. Grewal, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the Criminal Division in Camden.
Union County, New Jersey, Man Sentenced to 25 Months in Prison in Scheme to Manipulate Microcap Stock by Touting A ‘Wellness Social Community for People and Their Pets’Read the Press Release
TRENTON, N.J. – The owner of a purported business consulting firm was sentenced today to 25 months in prison for operating a $1.1 million scheme that artificially inflated the stock price of a publicly traded company he controlled, U.S. Attorney Craig Carpenito announced.
James Farinella, 52, of Springfield, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to one count of conspiracy to commit securities fraud. Judge Thompson imposed the sentence today in Trenton federal court.According to the documents filed in this case and statements made in court:
From June 2012 through December 2012, Farinella and others allegedly operated a scheme to profit by fraudulently inflate the prices of Pazoo Inc. (PZOO). Pazoo had little or no real business operations, and when it started trading in June 2012, Farinella controlled 98 percent of the free-trading shares in Pazoo.
Farinella and other conspirators allegedly inflated the price of those shares by orchestrating a series of trades between accounts they controlled to create the appearance that Pazoo stock was rising in price and heavily traded. In order to further inflate the prices, Farinella and his conspirators also disseminated misleading promotional materials to lure investors to purchase the stocks, including touting Pazoo as a leading provider of nutritional supplements for people and their pets.
After inflating the price of the stock, Farinella and his conspirators sold large volumes of the stock to over 1,000 investors at the artificially inflated prices. The company’s stock price then dropped, causing victims of the scheme to suffer losses. The alleged stock manipulation scheme generated approximately $1.1 million in gross trading proceeds.
In addition to the prison term, Judge Thompson sentenced Farinella to 3 years of supervised release.The U.S. Securities and Exchange Commission (SEC) has a civil complaint pending against Farinella.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Marc P. Berger, for its assistance in this matter.
The government is represented by Assistant U.S. Attorney Justin S. Herring, Chief of the Cybercrimes Unit in Newark.
Defense counsel: Bruce I. Goldstein Esq., Florham Park, New Jersey
Owner of Moving Companies Pleads Guilty to Million Dollar Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A Clifton, New Jersey, man admitted today to owning and operating a variety of household goods moving companies in New Jersey that systematically extorted hundreds of customers, U.S. Attorney Craig Carpenito announced.
Rami Zubidat, 31, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Zubidat and his co-conspirators jointly operated numerous moving companies by quoting customers “low-ball” price estimates for household goods moves and then raising prices on the date of the move after the goods were loaded and the customers in vulnerable positions. Through this scheme, Zubidat and his co-conspirators consistently, over a number of years and hundreds of moves, raised final prices for moves above the allowed increase from initial estimates as provided by federal regulations, including increases as high as 400 percent on the day of the move. The collective difference between the many estimates and the final balances for the customers’ moves was over a million dollars. Zubidat personally owned a number of the moving companies involved.
The conspiracy to commit wire fraud charge carries a maximum penalty of 20 years in prison and a fine of $250,000. Zubidat has been in custody on this charge since August 2018. Sentencing is scheduled for September 19, 2019.
U.S. Attorney Craig Carpenito credited special agents of the Department of Transportation-Office of the Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker, Northeast Region; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, Newark Division; and special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Angel Melendez, New York Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Stephen Turano, Esq., Newark, New Jersey
Eleven People Charged in Takedown of Trenton Drug Trafficking OrganizationRead the Press Release
Six Arrests Made in Coordinated Takedown by Federal and State Law Enforcement; Two Defendants At-Large; One Defendant Currently Released Under the Supervision of the United States Pretrial Services Agency; Remaining Two Defendants Already in Custody
TRENTON, N.J. – Criminal charges were unsealed today against 11 individuals who are allegedly part of a conspiracy to distribute significant quantities of heroin in Trenton, U.S. Attorney Craig Carpenito announced.
The complaint unsealed today charges 11 defendants with conspiracy to distribute 100 grams or more of heroin, a Schedule I controlled substance. One of the defendants – Jawaan Foreman – is also charged with distributing cocaine base, a Schedule II controlled substance.
The six defendants arrested today – Alterrick Livingston, Foreman, Darryl Young, Paul Beckford, RJ Beckford, and Larry Murphy - are scheduled to have their initial appearances this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court. One defendant, Devonte McNeil, is serving a sentence in state prison and will have his initial appearance at a later date. Two other defendants, Robert Gbanapolor and Duane Paulino-Escalera, have been previously charged with federal crimes related to the instant complaint and will also have initial appearances at a later date. Gbanapolor has been ordered detained and Paulino-Escalera is on pretrial release.
According to documents filed in this case:
From June 2018 through May 2019, the defendants and others engaged in a heroin trafficking conspiracy in the areas of Stuyvesant Avenue, Hoffman Avenue, and Highland Avenue in Trenton, as well as in the area of Barbary Road in Philadelphia, Pennsylvania.
Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Robert M. Gbanapolor obtained regular supplies of “bricks” of heroin (approximately 50 smaller, individually packaged glassine envelopes or baggies containing heroin) from Duane Paulino-Escalera, whom Gbanapolor referred to as “Papi.” Other key members of the drug trafficking conspiracy included Jawaan Foreman, Larry Murphy and Izae Alford.
Members of the conspiracy distributed the heroin supplied by Papi to other conspirators, distributors, sub-dealers, and end users in and around Trenton. Law enforcement officers intercepted numerous discussions among the conspirators regarding issues such as heroin quality and availability, branding, quantity and customer satisfaction.
In addition to being charged with conspiracy to distribute heroin, Jawaan Foreman also was charged in the complaint with one count of distributing cocaine base on May 8, 2019.
The drug conspiracy count carries a statutory minimum term of imprisonment of five years, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. The count charging Foreman with distribution of cocaine base carries a maximum potential penalty of 20 years in prison and a maximum fine of $1 million.
U.S. Attorney Carpenito credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, Camden Resident Office, under the direction of Special Agent in Charge Susan A. Gibson; and task force officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley, with the investigation leading to today’s charges. He also thanked detectives and officers of the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Charles A. Fiore; detectives and officers of the Gloucester Township Police Department, under the direction of Chief Harry Earle; members of the N.J. State Police, under the direction of Col. Patrick J. Callahan; detectives and officers of the Bordentown Township Police Department, under the direction of Chief Brian Pesce; and special agents of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies dedicated to identifying and dismantling the most serious drug trafficking, weapons trafficking and money laundering organizations.
The government is represented by Assistant U.S. Attorneys Eric A. Boden and Michelle Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Defendants
Name
Age
Residence
Robert M. Gbanapolor
32
Trenton
Duane Paulino-Escalera
27
Trenton
Jawaan Foreman
35
Trenton
Larry Murphy
36
Trenton
Izae Alford*
20
Trenton
Paul Beckford
31
Trenton
RJ Beckford
21
Trenton
Alterrick Livingston
19
Trenton
Darryl Young
27
Trenton
Devonte McNeil
28
Trenton
Shamir Kelley*
27
Trenton
* denotes at-large
Bronx Man Admits Theft of Government Property and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted his role in a scheme to obtain and ultimately cash more than $1 million in fraudulent income tax refund checks issued by the United States, U.S. Attorney Craig Carpenito announced.
Wellington Feliz, 36, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to two counts of an indictment charging him with theft of government property (Count Two) and aggravated identity theft (Count Four).
According to documents filed in this case and statements made in court:
Feliz admitted that he and his conspirators deposited over $1 million in fraudulently obtained income tax refund checks into bank accounts controlled by him.
Stolen Identity Refund Fraud (SIRF) schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They complete IRS-1040 tax return forms using the fraudulently obtained information and falsifying wages earned, taxes withheld and other data, always ensuring that fraudulent tax return generates a refund. The perpetrators then direct the U.S. Treasury Department to mail the refund checks to locations they control or can access. In some cases, they bribe mail carriers to remove the refund checks from their mail routes. With the fraudulently obtained refund checks in hand, the perpetrators generate cash proceeds by depositing the checks into bank accounts they control.
Feliz admitted that he knew that the approximately 180 tax refund checks that he and others deposited into bank accounts under his direct control did not belong to him or the company named on the bank account. He admitted to personally withdrawing funds from these accounts and profiting from his role in the scheme. He also admitted that he knew that the checks were issued by the IRS and the U.S. Treasury, and that it was illegal to deposit the tax refund checks and use the proceeds for his own benefit.
Feliz was initially charged with six co-defendants (Luis Pena, Lourdes Ortiz, Raymundo Hernandez, Isaias Hernandez, and Gloria Rivera of the Bronx, New York; and Fausto Bernard of Newark) in a criminal complaint alleging conspiracy to commit theft of government funds, relating to a SIRF scheme that caused more than $2.6 million in losses to the United States government. Feliz and Isaias Hernandez were later charged by indictment with conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. After being charged by complaint, Feliz violated the terms of his pretrial release conditions and fled to the Dominican Republic. In April 2019, Feliz was extradited to the District of New Jersey.
All six co-defendants have pleaded guilty to and have been sentenced for their roles in the scheme. One additional conspirator, Angel Fernandez of Newark, has also pleaded guilty to charges regarding his participation in the conspiracy. All have been ordered to pay restitution to victims and forfeiture to the United States.
The theft of government property charge to which Feliz pleaded guilty carries a maximum penalty of 10 years in prison and a fine of the greater of $250,000, twice the gross amount of any pecuniary gain that any persons derived from the offense; or twice the gross amount of any pecuniary loss sustained by any victims of the offense. The aggravated identity theft charge carries a mandatory sentence of two years, which must run consecutively to any term of imprisonment imposed on the theft of government property charge. Sentencing is scheduled for September 24, 2019.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt; special agents of the U.S. Postal Service – Office of the Inspector General, under the direction of Special Agent in Charge Matthew Modafferi; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Francesca Liquori and Sara F. Merin of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Laurie M. Fierro Esq., Kinnelon, New Jersey
Morris County Woman Admits Conspiring with Iranian National to Illegally Export Aircraft Components to IranRead the Press Release
Iranian National Charged In Scheme to Evade U.S. Sanctions
NEWARK, N.J. – A Morris County, New Jersey, woman today admitted her role in a scheme to illegally smuggle millions of dollars’ worth of aircraft parts from the United States to Iran, U.S. Attorney Craig Carpenito announced.
Joyce Eliabachus, a/k/a “Joyce Marie Gundran Manangan,” 52, of Morristown, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging her with one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA) in connection with her role in an international procurement network that smuggled over $2 million worth of aircraft components to Iran.
In addition to the guilty plea, a complaint was unsealed today in New Jersey against Peyman Amiri Larijani, 33, a citizen and resident of Iran charging him with one count each of conspiracy to violate Iranian Transactions and Sanctions Regulations (ITSR), conspiracy to commit money laundering, and conspiracy to smuggle goods from the United States. Larijani was also charged in U.S. District Court for the District of Columbia in two separate indictments unsealed June 4, 2019.
The guilty plea by Eliabachus and the charges unsealed against Larijani follow a joint investigation by the U.S. Department of Homeland Security, Homeland Security Investigations, and the U.S. Department of Commerce, Office of Export Enforcement.
“Eliabachus and others allegedly ran an international smuggling ring that shipped $2 million in aircraft parts to multiple Iranian airlines, including a company that has provided financial, material, and technological support to the Islamic Revolutionary Guard Corps,” U.S. Attorney Carpenito said. “This arrest, which was made possible by a close collaboration between our office and our partners at Homeland Security Investigations and the Office of Export Enforcement, has snuffed out another source of funds and goods to overseas entities that may endanger our national and economic security.”
“Today’s action is the result of outstanding collaborative efforts by the Office of Export Enforcement, the Justice Department, and Homeland Security Investigations,” Special Agent in Charge Jonathan Carson of the Office of Export Enforcement said. “This arrest will cut-off a key supplier to a proliferation network which illegally sold U.S. origin items to Iran. Violations such as these jeopardize national security and undermine U.S. foreign policy. We will continue to vigorously pursue violators wherever they may be.”
“For over two years, Eliabachus illegally engaged in aircraft component sales to Iran, a nation listed by the United States as a state sponsor of terrorism,” Brian Michael, HSI Newark Special Agent in Charge, said. “This potentially endangered U.S. security, particularly as one of the Iranian companies sold to does business with the Iranian Revolutionary Guard, a military unit tied to terrorist acts around the world. As protectors of the homeland, HSI is proud to have worked with other government agencies to have exposed this dangerous network.”
According to documents filed in this case and statements made in court:
Eliabachus, Larijani and others were part of an international procurement network that surreptitiously acquired large quantities of aircraft components from United States-based manufacturers and vendors and unlawfully exported them to entities in Iran using freight-forwarding companies in the United Arab Emirates (UAE) and Turkey.
Eliabachus was the principal officer and operator of Edsun Equipments LLC, a purported New Jersey-based aviation parts trading company run out of her Morristown residence. Larijani was the owner of an Iran-based procurement firm and served as operations and sales manager of a network of supply and engineering companies in Tehran, Iran, and Istanbul, Turkey.
From May 2015 through October 2017, Eliabachus, Larijani, and their conspirators facilitated at least 49 shipments containing 23,554 license-controlled aircraft parts from the United States to Iran, all of which were exported without the required licenses.
Eliabachus conspired with Larijani, whose international network helped initiate the purchase of United States-origin aircraft components on behalf of Larijani’s clients in Iran. The network’s client list included Iranian airline companies, several of which have been officially designated by the United States as a threat to national security, foreign policy, or economic interests. One company, Mahan Air Co., has been subject to sanctions by the United States for providing financial, material and technological support to the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), and allegedly ferrying arms and reinforcements to designated terrorist groups such as Hezbollah and Hamas.
Eliabachus used her company to finalize the purchase and acquisition of the requested components from the various United States-based distributors. She repackaged and shipped the components to shipping companies in the UAE and Turkey, where Larijani and other Iranian conspirators directed the components to locations in Iran.
In order to obscure the extent of the network’s procurement activities, Eliabachus routinely falsified the true destination and end-user of the aircraft components she acquired. She also falsified the true value of the components being exported in order to avoid filing export control forms, which further obscured the network’s illegal activities from law enforcement.
The funds for the illicit transactions were obtained from the Iranian purchasers, funneled through Turkish bank accounts held in the names of shell companies controlled by the Iranian conspirators. The money was ultimately transferred into one of Edsun Equipments’ accounts in the United States. The network’s creation and use of multiple bank accounts and shell companies abroad was intended to conceal the true sources of funds in Iran, as well as the identities of the Iranian entities who were receiving U.S. aircraft components.
The count of conspiracy to violate IEEPA, to which Eliabachus pleaded guilty, carries a maximum potential of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 24, 2019.
The counts against Larijani are punishable as follows: conspiracy to violate the ITSR carries a maximum penalty of 20 years in prison and a $1 million fine; conspiracy to commit money laundering carries a maximum penalty of 20 years in prison and a $500,000 fine; conspiracy to smuggle goods carries a maximum penalty of five years in prison and a $250,000 fine. The charges against Larijani are only allegations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, and the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, under the direction of Special Agent in Charge Jonathan Carson in New York, with the investigation.
The government is represented by Assistant U.S. Attorneys Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit, and Sarah Devlin of the office’s Asset Recovery and Money Laundering Unit, with assistance from Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Defense counsel:
Eliabachus: John Yauch Esq., Assistant Federal Public Defender, NewarkHudson County Man Arrested for Possession with Intent to Distribute Heroin and CocaineRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was arrested today and charged with possession with intent to distribute heroin and cocaine, U.S. Attorney Craig Carpenito announced.
Hason Armfield, 41, of Jersey City, New Jersey, is charged by complaint with one count of possession with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin and one count of possession with intent to distribute a mixture and substance containing a detectable amount of cocaine. He appeared today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was detained.
According to the documents filed in this case and statements made in court:
An authorized search of Armfield’s residence revealed more than 100 grams of heroin, approximately 200 grams of cocaine, drug paraphernalia, and U.S. currency.
The possession with intent to distribute 100 grams or more of heroin has a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, and a $5 million fine. The possession with intent to distribute cocaine has a maximum sentence of 20 years in prison and a $1 million fine.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Division; and members of the Jersey City Police Department, under the direction of Chief of Police Michael Kelly, with the investigation leading to the charges.
This investigation was part of the Jersey City Violent Crime Initiative (VCI), where the U.S. Attorney’s Office has partnered with state, federal, county and local law enforcement to investigate crime in Jersey City.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office’s Violent Crimes Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Kathleen M. Theurer Esq., Jersey City
Middlesex County Woman Arrested for $1.7 Million Bank Fraud SchemeRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, woman was arrested today for allegedly orchestrating a $1.7 million bank fraud scheme that involved writing fraudulent business checks, U.S. Attorney Craig Carpenito announced.
Tammy Martinez, 46, of South Amboy, New Jersey, is charged by complaint with one count of bank fraud. Federal agents arrested Martinez this morning; she 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 January 2014 through March 2019, Martinez served as an office manager and bookkeeper for a company in Newark. Beginning in January of 2014, Martinez used her position to issue fraudulent company checks made payable to herself or cash and forged the signature of her manager on the checks. Martinez then converted the fraudulent company checks into cash at bank branches in New Jersey. Martinez’s bank fraud scheme resulted in more than $1.7 in losses.
The bank fraud count carries a maximum potential penalty of 30 years in prison and a $1 million fine.
U.S. Attorney Carpenito credited special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney in Newark, and the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Jamel Semper of the U.S. Attorney’s Office Economic Crimes 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: Peter Carter Esq., Assistant Federal Public Defender, Newark
Former Hudson County Public Official Charged with Accepting Bribes for Patient ReferralsRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, woman formerly employed by the Hudson County Office on Aging was charged today with accepting bribes for referring patients in need of home health care aides, U.S. Attorney Craig Carpenito announced.
Myrtha Nicolas, 61, of Jersey City, New Jersey, was charged by complaint with one count of extortion under color of official right. She made her initial appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court today and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
The Hudson County Office on Aging is an agency of the N.J. Division of Disability Services (DDS) under the State of New Jersey’s Department of Human Services. The DDS works to streamline access to services and information designed to promote and enhance independent living for individuals with disabilities. Included among the services coordinated by DDS were Managed Long Term Services and Supports (MLTSS), whether for an individual living at home, an assisted living facility, or a nursing home.
As a referral coordinator for the Office on Aging, Nicolas exercised control over the coordination and assignment of patients with disabilities in need of home health care services to companies that provide home health care aides.
In June of 2016, Nicolas was approached by a confidential witness (the “CW”) who was a self-employed executive of a home health care company. Nicolas agreed to help refer patients to the CW and agreed to accept $500 dollars per patient she referred to the CW’s company.
On Aug. 4, 2016, Nicolas accepted a payment of $600 for the referral of a patient. The CW complained that the CW was forced to redirect the patient to another health care company because the patient proved difficult, prompting Nicolas to assure the CW that the CW “will get the easy ones,” in the future. On Jan. 23, 2017, Nicolas accepted another $600 cash payment for a patient referral. Nicolas confirmed that she had previously received gift cards from the CW years earlier, but expressed no preference whether future payments from the CW would be in cash or gift cards. On Oct. 17, 2017, Nicolas accepted a final corrupt payment of $1,000 from the CW for patient referrals, promising the CW that in terms of future patients, “whatever I have, you’ll have.”
The extortion under color of official right charge carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions 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
California Man Admits Transporting 14 Kilograms Heroin and FentanylRead the Press Release
NEWARK, N.J. – A Riverside, California, man today admitted transporting large amounts of heroin and fentanyl from California to New Jersey for distribution in New Jersey, U.S. Attorney Craig Carpenito; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration, New York Division; New York City Police Commissioner James P. O’Neill; Keith M. Corlett, Acting Superintendent of the New York State Police; and Angel M. Melendez, Special Agent in Charge, Homeland Security Investigations, New York Field Office, announced.
Joselito Colindres, 42, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute over one kilogram of heroin and over 400 grams of fentanyl.
According to documents filed in this case and statements made in court:
On Oct. 21, 2018, law enforcement officers learned that Colindres and Nester Estuardo Ruano Gutierrez were driving a tractor-trailer containing narcotics from California to New Jersey and elsewhere. After a lawful search of the tractor trailer, law enforcement officers found boxes of narcotics, including approximately 10 kilograms of heroin and four kilograms of fentanyl. Colindres admitted in court that these narcotics were intended for sale in and around New Jersey.
The count of conspiracy to distribute and possess with intent to distribute over one kilogram of heroin and 400 grams of fentanyl carries a maximum penalty of life imprisonment, a mandatory minimum term of 10 years in prison and a $10 million fine. Sentencing is scheduled for Oct. 10, 2019. Gutierrez has pleaded guilty and is awaiting sentencing.
U.S. Attorney Carpenito credited the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force (OCDETF) and the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), with the investigation leading to today’s guilty plea.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; IRS-Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF), Newark. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Hoboken-Based Accountant Admits Tax EvasionRead the Press Release
NEWARK, N.J. – A Hoboken-based accountant today admitted failing to pay more than $914,000 in taxes on income generated from his accounting firm and various rental properties he owned, U.S. Attorney Craig Carpenito announced.
Louis Picardo, 64, of Hoboken, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler to one count of an information charging him with federal income tax evasion.
According to documents filed in this case and statements made in court:Picardo served as the tax collector in Hoboken between 1973 and 2008 and was a partner in Cannarozzi & Picardo LLC, a Hoboken-based accounting firm. Picardo also was a member of multiple entities (the “Picardo Entities”) that managed both commercial and residential properties in Hudson County.
Picardo failed to report $3,725,853 in taxable income that he collected from Cannarozzi & Picardo and the Picardo Entities on federal income tax returns he filed with the IRS for the tax years 2012 to 2015, resulting in a tax loss to the United States of $914,908.
The tax evasion charge is punishable by a maximum penalty of five years in prison and potential fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 25, 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 Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Rahul Agarwal, Deputy Chief of the Criminal Division.
Defense counsel: Peter Willis Esq., Jersey City
Five Members of Violent Newark Drug Enterprise Indicted on Racketeering and Murder ChargesRead the Press Release
Alleged Enterprise Leader Charged with Three Murders
NEWARK, N.J. – Five alleged members of a large-scale narcotics enterprise were charged for their respective roles in several murders, firearms offenses and conspiracy to distribute illegal drugs, U.S. Attorney Craig Carpenito announced today.
Michael Healy, 38, of Montclair, New Jersey, the alleged leader of the enterprise; and Leevander Wade, 39; Ali Hill, 26; Thomas Zimmerman, 23; and Tyquan Daniels, 23; all of East Orange, New Jersey were charged in a 12-count superseding indictment with violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), murder, drug conspiracy and related charges. (See chart below.)
“Today’s indictment charges Michael Healy and his fellow gang members with committing murders and other acts of violence on the streets of New Jersey to further their drug trafficking enterprise,” U.S. Attorney Craig Carpenito said. “The indictment alleges that they murdered a witness against them – and an innocent person they mistook for that witness – and anyone else they believed posed a threat to their illegal business. Prosecuting dangerous individuals like these is one of this Office’s highest priorities.”
“According to the indictment, these defendants were part of a murderous drug trafficking organization delivering drugs across the nation from west coast to east,” FBI-Newark Special Agent-in-Charge Gregory W. Ehrie said. “Keeping the public safe is a primary responsibility of the FBI. When violent criminals come in to our communities to destroy our quality of life, we will take action to get them off our streets and protect our neighbors.”
Healy and Wade are charged with three murders, including the murder of a federal informant. Zimmerman and Daniels are charged in two of the murders, including the federal informant, and Hill is charged in the murder of the federal informant only. All three of the murder counts charged in the superseding indictment are eligible for the federal death penalty upon conviction.
According to documents filed in this case and statements made in court:
In February 2018, having found out that one of his conspirators, identified in the indictment as “A.S.,” was cooperating with law enforcement by providing information against the Healy drug trafficking enterprise (DTE), Healy ordered members of the Bloods in East Orange to kill “A.S.” On Feb. 3, 2018, in Bloomfield, New Jersey, Zimmerman and Daniels allegedly shot and killed Victim-1, an innocent bystander they mistook for “A.S.” Realizing they killed the wrong person, members of the Healy DTE then shot and killed “A.S” on March 12, 2018, in Bloomfield.
On April 6, 2018, believing that another member of the enterprise – identified in the indictment as “J.C.” – might also be cooperating with law enforcement, Healy allegedly shot and killed “J.C.” in Newark.
Healy’s DTE operated in and around Newark beginning in approximately 2012. While incarcerated in the Maryland state corrections system between 2003 and 2012, Healy became a member of the Tree Top PIRU set of the Bloods street gang. After his release from prison in April 2012, Healy formed and led the Healy DTE, a large and sophisticated drug distribution organization that obtained, transported and distributed large amounts of cocaine, heroin, fentanyl and marijuana. Healy used his leadership status in the Tree Top PIRU Bloods to assist him with obtaining suppliers, recruiting and controlling enterprise members, and otherwise conducting the Healy DTE’s operations.
The Healy DTE transported multi-kilogram quantities of controlled substances from California to New Jersey by various means, including private aircraft, vehicles with hidden secret compartments, and the U.S. Postal Service. The Healy DTE then processed and repackaged the controlled substances at various “stash houses” in New Jersey. The Healy DTE distributed some of the controlled substances in New Jersey, including through Bloods gang members in East Orange. Given his leadership status in the Bloods, his reputation for violence, and his supply of controlled substances, Healy exercised control over two local Bloods gang sets in East Orange: the Mob PIRUs and the Brick City Brims. The Healy DTE also transported some of the controlled substances from New Jersey to Maryland for further distribution.
The counts in the superseding indictment carry the following maximum potential penalties:
Count
Offense
Defendant(s)
Maximum Penalties
1
Racketeering
All defendants
Life in prison; $250,000 fine
2
Racketeering Conspiracy
All defendants
Life in prison; $250,000 fine
3
Murder in Aid of Racketeering (Victim-1 Murder)
Healy, Wade,
Zimmerman and Daniels
Life in prison or death penalty; $250,000 fine
4
Use of Firearm in Furtherance of Violent Crime (Victim-1 Murder)
Healy, Wade,
Zimmerman and Daniels
Life in prison; $250,000 fine
5
Murder in Aid of Racketeering (“A.S.” Murder)
All defendants
Life in prison or death penalty; $250,000 fine
6
Conspiracy to Murder a Federal Witness (“A.S.” Murder)
All defendants
Life in prison or death penalty; $250,000 fine
7
Use of Firearm in Furtherance of Violent Crime (A.S. Murder)
All defendants
Life in prison; $250,000 fine
8
Murder in Aid of Racketeering (J.C. Murder)
Healy and Wade
Life in prison or death penalty; $250,000 fine
9
Use of Firearm in Furtherance of Violent Crime (J.C. Murder)
Healy and Wade
Life in prison; $250,000 fine
10
Felon in Possession of a Firearm
Healy
10 years in prison; $250,000 fine
11
Felon in Possession of a Firearm
Daniels
10 years in prison; $250,000 fine
12
Conspiracy to Distribute Controlled Substances
All defendants
Life in prison; $10,000,000 fine
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; and the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose, with the investigation leading to the indictment. He also thanked the Essex County Prosecutor’s Office; the Union County Prosecutor’s Office, East Orange Police Department; Montclair Police Department, and the Maryland Department of Public Safety and Correctional Services, Intelligence and Investigative Division.The government is represented by Senior Trial Counsel Robert L. Frazer and Special Assistant U.S. Attorney Naazneen Khan of the U.S. Attorney’s Office’s Violent Crimes Unit.
The charges in the superseding indictment are merely allegations, and the defendants are each presumed to be innocent unless and until convicted.
Defense counsel:
Healy: Anthony Pope Esq., Newark, Stephen Turano Esq., Newark, Thomas Ambrosio Esq. Lyndhurst, New Jersey
Wade: Troy Archie Esq., Cinnaminson, New Jersey
Hill: Gary Mizzone Esq., Little Falls, New Jersey
Zimmerman: Henry Klingeman Esq., Newark
Daniels: Thomas Ashley Esq., NewarkCEO of Public Commodities Trading Company Charged in $66 Million Accounting Fraud SchemeRead the Press Release
Defendant Allegedly Inflated Company’s Revenue to Defraud Investors
NEWARK, N.J. – The CEO of a publicly traded commodities trading company has been indicted for allegedly orchestrating an accounting scheme to defraud investors and others by recognizing more than $66 million in fake revenue in the company’s public filings, U.S. Attorney Craig Carpenito announced today.
Venkata Meenavalli, 49, of India, was charged by indictment with securities fraud.According to documents filed in this case:
In 2017 and 2018, Meenavalli and others orchestrated a multimillion-dollar accounting fraud relating to Longfin Corp., a publicly traded company purportedly engaged in sophisticated commodities trading and so-called “cryptocurrency” transactions, including “blockchain-empowered solutions.” In fact, Longfin did not engage in any revenue-producing cryptocurrency transactions, and did not use the blockchain to empower any solutions. Longfin reported as revenue millions of dollars of commodities transactions, which were actually sham events between Longfin and separate entities Meenavalli controlled, using phony bills of lading and other fraudulent documents.Longfin fraudulently reported in its public filings with the U.S. Securities and Exchange Commission (SEC) more than $66 million of revenue that was never actually earned and should never have been recognized. By including this phony revenue in the company’s public filings, Meenavalli and others made Longfin’s shares more attractive to potential investors.
Longfin’s 2017 Form 10-K (a required annual report to the SEC) claimed that its primary source of revenue was from “structured trade finance,” including “the sale of physical commodities.” Longfin falsely reported million in accounts receivable in purported physical commodity sales that never occurred. In fact, Meenavalli allegedly owned or controlled several entities that purportedly did business with Longfin, and did not disclose those relationships to Longfin’s shareholders or the investing public.
The count of securities fraud with which Meenavalli is charged carries a maximum potential penalty of 20 years in prison and a $5 million fine.
Separately, the U.S. Securities and Exchange Commission today filed a new fraud action against Longfin and Meenavalli for falsifying the company’s revenue and, together with a former Longfin consultant, for fraudulently securing the company’s listing on Nasdaq.U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to charges announced today. He also thanked the U.S. Securities and Exchange Commission in Washington, D.C., and Stephanie Avakian and Steven Peikin, co-directors of the Division of Enforcement, for the assistance of the Enforcement staff.
The government is represented by Assistant U.S. Attorney Catherine Murphy of the U.S. Attorney’s Office’s Economic Crimes Unit and Zach Intrater, Executive Assistant U.S. Attorney.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.Bergen County Man Arrested on Child Pornography ChargesRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested and charged today with distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Jeffrey Laino, 37, of Washington Township, New Jersey, was arrested at his home. He is charged by complaint with one count of distributing child pornography. Laino made his initial appearance before U.S. Magistrate Judge Cathy L. Waldor today in Newark federal court.
According to documents filed in this case and statements made in court:
In January 2019, an undercover law enforcement officer conducted an online session using a publicly available peer-to-peer (P2P) program, which allows internet users to trade digital files. During this session, a user shared multiple files of featuring images of child sexual abuse from an internet address traced to Laino’s residence.
In February 2019, law enforcement officers received information from a victim living in Ohio who was approached on the social media application Snapchat by an individual using a screen name that included “Jeff L.” In chats with the Ohio victim, “Jeff L.” stated that he was from New Jersey and had obtained nude pictures of the Ohio victim – taken when she was 14 to 15 years of age – by downloading them from the Internet. The IP address of “Jeff L.” Snapchat user was assigned, at the approximate times the chats took place, to an account located at Laino’s residence.
The count of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s arrest.
The government is represented by Executive Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Man from Toadlena, N.m. Charged with Aggravated Sexual Abuse in Indian CountryRead the Press Release
ALBUQUERQUE – Garrith Bitsilly, 32, of Toadlena, N.M., appeared in federal court yesterday on charges of aggravated sexual abuse and abusive sexual contact in Indian Country.
According to a criminal complaint, Bitsilly allegedly committed numerous acts of sexual abuse against the victim, who was less than 12 years old, over the course of about seven months in 2014. The victim was staying at Bitsilly’s home in San Juan County during this time while the victim’s mother was deployed to Afghanistan with the military. Bitsilly is an enrolled member of the Navajo Nation.
Criminal complaints are merely accusations. A defendant is presumed innocent until proven guilty. Bitsilly is currently on release to a halfway house pending trial. He faces from 30 years to life in prison if convicted of aggravated sexual abuse. Bitsilly faces up to life in prison if convicted of abusive sexual contact.
The Farmington office of the FBI investigated this case. Assistant U.S. Attorney Elisa C. Dimas is prosecuting the case.
Two Bergen County Men Admit Roles in Fraud SchemeRead the Press Release
NEWARK, N.J. – Two Bergen County, New Jersey, men have admitted their respective roles in a scheme to defraud financial institutions and others, U.S. Attorney Craig Carpenito announced today.
Steve Young Kang, a/k/a “Steven Young Kang” and “Young Tae Kang,” 64, of Ridgefield, New Jersey, and Young Jin Son, a/k/a “Joshua Son,” 49, of Norwood, New Jersey, pleaded guilty on May 30, 2019, before U.S. District Judge William J. Martini in Newark federal court to separate informations charging each defendant with one count of bank fraud and one count of wire fraud.
According to documents filed in these cases and statements made in court:
Kang, Son and others fraudulently induced mortgage lenders to participate in “short sale” transactions. In a typical short sale transactions, a financial institution agrees to allow a house owner in financial distress to sell his or her home for less than they owe on their mortgages. Such transactions are called short sales because the market value of the house is less than the amount owed by the house owner and the lender agrees to accept a payment “short” of the amount owed by the house owner.
Kang, a real estate broker and agent, admitted to a scheme in which, from June 2013 to January 2017, he sold his own properties and recruited others to sell properties in short sales to a co-schemer, Mehdi Kassai, who was able to obtain the properties for substantially less than the properties were actually worth through false documents, straw buyers, cosmetic damage to properties, and restricting the ability of others to bid on and buy those properties. Kassai then sold many of those properties to third-parties at a substantial profit. Kang defrauded financial institutions and others of $2.7 million in this manner.
Son, a real estate broker and agent, admitted recruiting others to sell properties in short sales to Kassai, who obtained the properties for substantially less than they were actually worth through false documents, straw buyers, cosmetic damage to properties, and restricting the ability of others to bid and buy those properties. Kassai sold many of those properties to third-parties at a substantial profit. Son defrauded financial institutions and others of $1.9 million in this manner.
The bank fraud and wire fraud charges each carry a maximum potential statutory penalties of 30 years in prison and a $1 million fine. Kang and Son have both agreed to forfeit the proceeds of the scheme. Sentencing for both defendants is scheduled for Oct. 1, 2019. Kassai previously pleaded guilty to his role in the scheme and is awaiting sentencing.
U.S. Attorney Carpenito credited the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge, Robert Manchak; and special agents of the U.S. Department of Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the guilty pleas.
The government is represented by Senior Trial Counsel Andrew Leven of the Healthcare & Government Fraud Unit of the U.S. Attorney’s Office, District of New Jersey, and Special Assistant U.S. Attorneys Charlie Divine and Kevin Di Gregory of the Federal Housing Finance Agency, Office of Inspector General.
Leader of Trenton Drug Trafficking Conspiracy Admits Heroin Distribution and Firearms OffensesRead the Press Release
Second Defendant also Pleads Guilty to Distributing Multiple Controlled Substances as Part of Conspiracy
TRENTON, N.J. – A Trenton man today admitted his leadership role in a significant drug trafficking conspiracy that distributed more than one kilogram of heroin in Trenton and the surrounding area, and also admitted possessing firearms in furtherance of the drug conspiracy, U.S. Attorney Craig Carpenito announced today.
Jakir Taylor, a/k/a “Jak,” 28, pleaded guilty before Chief U.S. District Judge Freda L. Wolfson in Trenton federal court to two counts of a superseding indictment charging him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin (Count One), and possessing and conspiring to possess one or more firearms in furtherance of a drug trafficking crime (Count Seven).
Another member of the conspiracy, Alonzo Leary, a/k/a “J-Buck,” a/k/a “Buck,” 37, of Trenton, pleaded guilty May 30, 2019, before Judge Wolfson to an information charging him with one count of conspiracy to distribute and possess with intent to distribute multiple controlled substances, including heroin, oxycodone, and alprazolam.
In October 2018, Taylor, Leary, and 24 other members of a drug trafficking conspiracy operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. Taylor and others also were charged with additional firearms offenses. On April 11, 2019, a grand jury returned a nine-count superseding indictment charging Taylor and eight other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearm offenses. Of the 26 defendants charged in the criminal complaint, Taylor is the eighth defendant to plead guilty, and Leary is the ninth. The charges in the superseding indictment and the criminal complaint are currently pending against the 17 remaining defendants.
According to documents filed in this case and statements made in court:
From as early as October 2017 to October 2018, the defendants and others engaged in a large narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Taylor and Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from defendant David Antonio, whom they referred to as “Papi.” Intercepted communications between and among Taylor, Roberts, Antonio, and other conspirators revealed that Taylor and Roberts agreed to obtain from Antonio a “motherlode” supply of as many as 1,500 bricks – approximately 1.5 kilograms of heroin – in a single delivery. Taylor said that he intended to “flood the streets” of Trenton with this large supply. Taylor also admitted that he and his conspirators possessed at least one firearm to assist his drug trafficking operations, and on multiple occasions during the conspiracy Taylor actively sought to obtain additional firearms from other sources.
Intercepted telephone communications revealed that Leary participated in the drug trafficking as a close associate of Omar Council, Brian Phelps, Gary Ausmore, and other members of the conspiracy. These communications revealed that Leary participated in the conspiracy by distributing quantities of heroin, oxycodone, and alprazolam (commonly known as Xanax) to other narcotics dealers and end users.
The drug conspiracy count to which Taylor pleaded guilty carries a statutory mandatory minimum term of imprisonment of 10 years, a maximum potential penalty of life in prison, and a maximum fine of $10 million. The firearms count to which Taylor pleaded guilty carries a statutory mandatory minimum term of five years in prison and a maximum potential penalty of life years in prison, and must be served consecutive to the sentence imposed on the drug conspiracy count. The drug conspiracy count to which Leary pleaded guilty carries a statutory maximum term of 20 years in prison and a maximum fine of $1 million. Taylor’s sentencing is scheduled for Oct. 1, 2019, and Leary’s sentencing is scheduled for Sept. 4, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Satellite Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s guilty pleas.
He also thanked officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the N.J. State Board of Parole for their assistance in the case.
The government is represented by Assistant U.S. Attorneys J. Brendan Day and Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Taylor: Jerome A. Ballarotto Esq., Trenton
Leary: Robert B. Haney Esq., West Windsor, New JerseyU.S. Attorney Carpenito and N.J. Attorney General Grewal Announce New Collaborative Initiative to Fight Violence in TrentonRead the Press Release
U.S. Attorney’s Office, N.J. Division of Criminal Justice, N.J. State Police, Trenton Police, Mercer County Prosecutor’s & Sheriff’s Offices, ATF, DEA & FBI Partner to Target the Most Violent Offenders
TRENTON – Citing two mass shootings in Trenton that left one dead and 15 others wounded during Memorial Day Weekend, U.S. Attorney Craig Carpenito and N.J. Attorney General Gurbir S. Grewal today announced a new collaborative initiative to fight violence in Trenton involving the U.S. Attorney’s Office, the N.J. Division of Criminal Justice, N.J. State Police, Trenton Police Department, Mercer County Prosecutor’s Office, Mercer County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms & Explosives, U.S. Drug Enforcement Administration, and FBI.
While the announcement follows the violent weekend in the capital city, U.S. Attorney Carpenito and Attorney General Grewal noted that the partnering agencies have been developing the Trenton Violent Crime Initiative (VCI) for several months.
“We know that partnering with state and local law enforcement works, because we’ve proven it,” U.S. Attorney Carpenito said. “In 2018, for the first time in this office’s history, we simultaneously initiated three Project Safe Neighborhood programs in Newark, Camden and Jersey City. These violent crime initiatives resulted in significant reductions in crime in all three cities. Crime is down 15 percent in Newark from 2017 to 2018 and violent crime was down 18 percent in Camden from 2017 to 2018. Crime in both cities are at a 50-year low. In addition, shooting incidents are down 69 percent in Jersey City between comparable periods in 2018 and 2019. We intend to work closely with Attorney General Grewal, and all our federal, state and local partners with the goal of achieving similar results.”
“We are committed to using every tool at our disposal to fight violence in Trenton, which means collaborating across all levels of law enforcement and sharing intelligence and resources through our new Violent Crime Initiative,” said Attorney General Grewal. “The time to act is now, before more lives are lost. We cannot stop every shooting, but we want city residents to know that we stand with them, and we will work with the Trenton Police, the County Prosecutor’s Office, and all of our partners to arrest the gun-toting criminals who are bringing violence and fear to their neighborhoods.”
The Trenton VCI is based on a model that has been successfully deployed in Newark and Jersey City by the U.S. Attorney’s Office, N.J. State Police, and law enforcement partners. Leaders from the participating agencies will meet regularly to review intelligence regarding the most violent offenders in Trenton, their accomplices, crime trends, and potential leads that can be acted on by the partnering agencies. In analyzing intelligence, the partnering agencies will look at all of those involved in shootings, including victims as well as shooters, because victims in many cases may be likely participants in future gun violence.
The initiative will rely on intelligence and analysis from the N.J. State Police Regional Operations Intelligence Center (ROIC). The ROIC will work with the Trenton Police Department to identify the top violent offenders and violent crime suspects in Trenton, including gang members, drug dealers, and serial offenders. Federal, state, and county prosecutors will then make determinations regarding which prosecuting agency should pursue potential leads regarding those violent offenders.
Ultimately, the partnering agencies – including state, federal, county and local law enforcement – will use the intelligence and plans developed through the VCI meetings to investigate violent offenders and conduct other law enforcement operations to dismantle and disrupt violent criminal elements in the city, including execution of warrants and crime suppression efforts focused on likely violence “hot spots.”
Hoboken Man Admits Conspiring to Promote A Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A Hoboken, New Jersey, man today admitted his role in a conspiracy to promote a voter bribery scheme during a municipal election, U.S. Attorney Craig Carpenito announced.
Dio Braxton, 43, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an indictment charging him with conspiring with Frank Raia and others to use the mail to promote a voter bribery scheme during the 2013 municipal election in Hoboken.
According to documents filed in this case and statements made in court:
Braxton and others, at Raia’s direction, participated in a scheme to pay certain Hoboken voters $50 each if those voters applied for and cast mail-in ballots in support of Raia’s city council campaign and a rent control referendum that Raia supported. Braxton and others working for Raia provided voters with vote-by-mail applications and then either mailed or delivered the completed applications to the Hudson County Clerk’s office. After the voters completed mail-in ballots, Braxton and others working for Raia either mailed or delivered them to the Hudson County Clerk’s Office.
After the election, Braxton and others handed out $50 checks to voters from an entity hired by Raia’s Political Action Committee. Before handing the checks to voters, Braxton and others working for Raia required the voters to sign declarations stating that they had worked for the campaign. In reality, many of these voters never actually worked for the campaign and these declarations were merely a way for Braxton, Raia, and others to hide the fact that the voters had been paid for their votes.
Braxton faces a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 10, 2019.
Raia was previously indicted on the same charge and is awaiting trial. The charge against him is merely an accusation, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
Defense counsel: Vincent J. LaPaglia Esq., Hoboken
Four People Charged with Credit Card ‘Bust Out’ Scheme to Defraud BanksRead the Press Release
NEWARK, N.J. – Four people were arrested today in connection in a scheme to defraud banks by using stolen and altered identities to fraudulently obtain credit cards and then using those cards to make over $2.5 million in charges that were never repaid, U.S. Attorney Craig Carpenito announced.
Shahid Akhtar, 42, of Linden, New Jersey; Tassadiq Hussain, 70, of Sayreville, New Jersey; Asif Ali, 39, of Carteret, New Jersey; and Mohammad Mushtaq, 54, of Valley Stream, New York; are each charged by complaint with one count of conspiring to defraud financial institutions. The defendants are scheduled to appear later today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to documents filed in this case and statements made in court:
The defendants engaged in a scheme to use stolen and altered identities to obtain credit cards from financial institutions and then use those credit cards to make purchases that they had no intention to repay, leaving the financial institutions to bear the losses.
The defendants and their conspirators used the personally identifying information of actual people, including dates of birth, drivers’ license numbers, and Social Security numbers, to create “synthetic identities,” sometimes by pairing the name and Social Security number of actual person with a fictitious birthdate, and sometimes by pairing the person’s Social Security number with a fictitious name and birthdate. They often used the name and Social Security number of a minor and altered the birthdate to make the identity appear to be that of an adult.
The defendants and their conspirators then used the stolen and synthetic identities to obtain lines of credit, primarily through opening credit card accounts at financial institutions (the “fraud cards”). The fraud cards were maintained in good standing with the financial institutions long enough to establish the creditworthiness of the stolen and synthetic identities. The defendants and their conspirators then “busted out” the fraud cards by making large purchases and never repaying the debts.
The defendants and their conspirators also incorporated and registered in various states numerous purported companies that did little or no legitimate business (the “sham companies”). The sham companies typically reported mailing addresses that were not brick-and-mortar business locations but were in fact “virtual mailboxes” offered by a company that provides mail receiving and forwarding services, as well as virtual office space, for a fee. The defendants and their conspirators used these sham companies to make hundreds of thousands of dollars’ worth of charges to the fraud cards, which were then deposited in bank accounts opened in the sham companies’ names. The defendants and their conspirators then withdrew these funds in cash.
The defendants and their conspirators routinely used “drop addresses” in New Jersey, New York, and elsewhere as the purported mailing addresses for the fraud cards and the sham companies. These drop addresses were typically not residential locations, but rather mailboxes offered for lease for the receipt of mail by a commercial package delivery company. In most cases, the defendants and their conspirators rented these mailboxes using fraudulent identification documents created using stolen and altered identities. The drop addresses were then maintained for the purpose of receiving mail sent in connection with the fraud cards and the sham companies.
The charge of conspiring to defraud financial institutions carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s arrests.
The charges in the complaint are merely allegations, and the defendants are presumed to be innocent unless and until convicted.
The government is represented by First Assistant U.S. Attorney Rachael A. Honig.
Paterson Contractor Admits Role in Scheme with Former Municipal Utilities Authority Commissioner to Steal Funds and Pay KickbacksRead the Press Release
NEWARK, N.J. – A Paterson-based contractor today admitted conspiring with a commissioner of the now-defunct Paterson Municipal Utilities Authority (MUA) to steal funds and pay kickbacks in return for obtaining work from the authority, U.S. Attorney Craig Carpenito announced.
Anthony Cacciola, 47, of Waldwick, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit extortion under color of official right.
According to documents filed in this case and statements made in court:
Cacciola operated a Paterson-based business specializing in fence installation and repair for both commercial and residential properties. In 2012 he was introduced to Erik Lowe, an MUA commissioner from February 2009 through May 2015. In this position, Lowe exercised control over the finances of the MUA, which had been created to manage the hydroelectric plant on the Passaic River in Paterson and manage certain surrounding properties.
Cacciola admitted that Lowe would inflate the dollar amount of the checks Lowe provided to Cacciola for various MUA contracts well beyond the actual value of the services performed. Cacciola admitted that this enabled him to kick back to Lowe thousands of dollars in cash for Lowe’s official assistance in directing work to Cacciola. Near the end of the scheme, Cacciola began accepting MUA checks from Lowe worth thousands of dollars knowing that no job had been, or would be, performed. Cacciola accepted a total of $141,700 in MUA checks from Lowe, out of which Cacciola paid tens of thousands of dollars in cash kickbacks to Lowe.
The count to which Cacciola pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. As part of his plea, Cacciola must pay restitution of $89,900. Sentencing is scheduled for Sept. 23, 2019.Lowe pleaded guilty on May 30, 2018, before former Chief U.S. District Judge Jose L. Linares to one count of extortion under color of official right involving the same scheme to which Cacciola today pleaded guilty, and one count of conspiracy to commit extortion under color of official right pertaining to a separate fraud/kickback scheme involving Paterson MUA funds with Carnell Baskerville. Lowe is scheduled to be sentenced by Judge McNulty on June 4, 2019. Baskerville was sentenced by Judge Linares on Oct. 23, 2018, to 21 months in prison.
U.S. Attorney Carpenito credited special agents of the FBI under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
Defense counsel: John Bruno Esq., Rutherford, New Jersey
Charges Dismissed on March 17, 2020Read the Press Release
NEWARK, N.J. – A doctor based in Trenton and Delran, New Jersey, was charged today with health care fraud for billing Medicaid and Medicare for in-person services during periods when he was traveling out of state, U.S. Attorney Craig Carpenito announced.
Vedat Obuz, 54, of Merion Station, Pennsylvania, is charged by complaint with one count of health care fraud. Obuz made his initial appearance before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Between July 2014 and October 2018, Obuz billed Medicaid for $358,779 and Medicare for $57,396 for patient care that took place when he was traveling and was not present at his medical practice. The medical codes used in the billings indicated that Obuz was the treating physician and the services billed for required him to be physically present to see the patients.
For example, travel records show Obuz was in Tel Aviv, Israel, from Nov. 1-6, 2017. On Nov. 2-4, 2017, Obuz billed Medicare and Medicaid $4,660 for treating approximately 30 patients. Travel records show Obuz was in Istanbul, Turkey, from April 18-22, 2018. On April 19-21, 2018, he billed Medicare and Medicaid $7,770 for treating 53 patients.
The health care fraud count carries a maximum penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott Lampert; the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; and the Camden County Police Department, under the direction of Chief J. Scott Thomson, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Health Care and Government Fraud Unit of the U.S. Attorney’s Office in Newark.
The charge and allegations in the complaint are merely accusations, and defendant is presumed innocent unless and until proven guilty.
Defense counsel: Ernest E. Badway Esq., Morristown, New Jersey
Camden Man Convicted of Robbing Two Banks, Attempting to Rob A ThirdRead the Press Release
CAMDEN, N.J. – A Camden man was convicted today of robbing two banks, and attempting to rob a third bank over a 10-day period in July 2018, U.S. Attorney Craig Carpenito announced.
Anthony L. Livingston, 48, was convicted of two counts of bank robbery, and one count of attempted bank robbery following a one-week trial before U.S. District Judge Renee Marie Bumb in Camden federal court. The jury deliberated less than three hours before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
On July 14, 2018, Livingston entered the Gloucester Township PNC Bank wearing sunglasses and a hat. He presented a demand note to the teller and then left the bank with the stolen cash.
On July 24, 2018, Livingston attempted to recruit a homeless man to rob the Stratford PNC Bank on his behalf. Livingston instructed the man on how to rob the bank, gave him a demand note to show to the teller, and drove the man to the bank. The man walked into the bank and told the employee that he had been sent there to rob the bank and that he did not want to do it, and that the bank should call the police because the person who had sent him was waiting for him outside.
Four hours later, Livingston recruited co-defendant Laque Hunter to rob the Collingswood Ocean First bank on his behalf, and drove Hunter to the bank. Hunter robbed the bank with a demand note. Livingston served as the getaway driver, and the two split the proceeds. Hunter pleaded guilty on April 2, 29019, and is awaiting sentencing.
At the time of these crimes, Livingston was on federal supervised release. On July 13, 2018, one day before the first bank robbery, Livingston completed a 220-month term of imprisonment for having robbed eight banks in southern New Jersey in 2000 and 2001.
Each count on which Livingston was convicted carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 5, 2019.
U.S. Attorney Carpenito credited special agents of the FBI-Cherry Hill, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; 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 Sheriff’s Office, under the direction of Sheriff Gilbert “Whip” Wilson; the Collingswood Police Department, under the direction of Chief Kevin J. Carey; the Gloucester Township Police Department, under the direction of Chief W. Harry Earle; and the Stratford Police Department, under the direction of Chief Ronald M. Morello, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Kristen M. Harberg and Patrick C. Askin of the Camden Office.
Defense counsel: John B. Brennan Esq., Marlton, New Jersey
South Carolina Man Admits Illegally Trafficking FirearmsRead the Press Release
NEWARK, N.J. – A South Carolina man who participated in the sale of 17 firearms, including five assault rifles, today admitted his role in a scheme to illegally sell weapons in New Jersey, U.S. Attorney Craig Carpenito announced.
Richard Lowman, 30, pleaded guilty before U.S. District Court Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of conspiracy to engage in the unlicensed business of dealing in firearms.
According to documents filed in this case and statements made in court:
On six different dates between May 2017 and September 2017, Lowman – sometimes accompanied by his uncle, Reginald Moultrie – met with an individual in Newark for the purpose of selling firearms. Lowman personally participated in the sale of an assault rifle on a Newark street in May 2017. During a later transaction in August 2017, Lowman travelled from South Carolina to New Jersey and transported multiple firearms across state lines. Ultimately, six firearms were sold inside a residence in Newark on that occasion.
Seventeen firearms, including five assault rifles, were illegally sold by Lowman and Moultrie over five months. Neither Lowman nor Moultrie had a license to sell firearms. Moultrie previously pleaded guilty to possession of a firearm after having been convicted of a felony and is currently awaiting sentencing.
The charge of conspiracy to engage in unlicensed dealing of firearms carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 5, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and officers of the Newark Police Department, under the direction of Department of Public Safety Director Anthony F. Ambrose, 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 National Security Unit in Newark.
Somerset County Man Charged with Attempts to Provide Material Support to Hamas, Making False Statements, and Making Threat Against Pro-Israel SupportersRead the Press Release
Also Discussed Bombing Trump Tower and Israeli Embassy in New York
NEWARK, N.J. – A Somerset County, New Jersey, man was arrested today for attempting to provide material support to Hamas, lying on his application to enlist in the U.S. Army, and making a threat against pro-Israel supporters, U.S. Attorney Craig Carpenito, Assistant Attorney General John C. Demers of the U.S. Department of Justice’s National Security Division, FBI-Newark Special Agent in Charge Gregory W. Ehrie and FBI Assistant Director for Counterterrorism Michael McGarrity announced.
Jonathan Xie, 20, of Basking Ridge, New Jersey, was arrested this morning and is charged by complaint with two counts of attempting to provide material support to a designated terrorist organization, two counts of making false statements, and one count of transmitting a threat in interstate commerce. He is scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
“Homegrown violent extremists like Xie are a serious threat to national security,” U.S. Attorney Carpenito said. “The actions that he took and planned to take made that threat both clear and present, and we commend our law enforcement partners for working closely with us to stop him before he could carry out his plans to commit violence on American soil. We will continue to do everything in our power to safeguard our country and its citizens from the threat of terrorism, whether that threat comes from abroad or – as here – from within.”
“The FBI remains vigilant in its efforts to protect the public from those who support terrorist groups and ideologies,” Special Agent in Charge Ehrie said. “Thanks to the hard work and determination of our agents and their law enforcement partners on the Joint Terrorism Task Force, this defendant’s further support to terrorism was disrupted and a threat to the safety of our community was averted. This case also illustrates the value of public awareness and participation. When you report suspicious activity, you become a force multiplier in the mission to keep America safe.”
“The FBI is committed to stopping anyone who attempts to assist terrorist organizations or who threatens to commit acts of violence in our communities,” said Assistant Director McGarrity, FBI Assistant Director for Counterterrorism. “The threat from homegrown violent extremists who self-radicalize remains persistent. While more Americans may be familiar with ISIS, we take seriously those who wish to help any designated terrorist organization. I commend the hard work of the Newark Joint Terrorism Task Force on this case.”
According to documents filed in this case and statements made in court:
In April 2019, Xie appeared in an Instagram Live video wearing a black ski mask and stated that he was against Zionism and the neo-liberal establishment. When asked by another participant in the video if he would go to Gaza and join Hamas, Xie stated “yes, If I could find a way.” Later in the video, Xie displayed a Hamas flag and retrieved a handgun. He then stated “I’m gonna go to the [expletive] pro-Israel march and I’m going to shoot everybody.” In subsequent Instagram posts, Xie stated, “I want to shoot the pro-israel demonstrators . . . you can get a gun and shoot your way through or use a vehicle and ram people . . . all you need is a gun or vehicle to go on a rampage . . . I do not care if security forces come after me, they will have to put a bullet in my head to stop me.”
In December 2018, Xie sent $100 via Moneygram to an individual in Gaza who Xie believed to be a member of the Al-Qassam Brigades – a faction of Hamas that has conducted attacks, to include suicide bombings against civilian targets inside Israel. At approximately the same time that Xie sent the money, he posted on his Instagram account “Just donated $100 to Hamas. Pretty sure it was illegal but I don’t give a damn.” In April 2019, Xie sent a link to a website for the Al-Qassam Brigades to an FBI employee who was acting online in an undercover capacity. Xie described the website as a “Hamas” website and stated he had previously sent a donation to the group. Xie then sent screenshots of the website to the undercover employee and demonstrated how to use a new feature on the website that allows donations to be sent via Bitcoin. On or about April 26, 2019, Xie sent a donation of approximately $20 in Bitcoin (including transaction fees) via the website as a test to see whether the Bitcoin feature worked.
In February 2019, Xie stated that he wanted to join the U.S. Army “to learn how to kill… So I can use that knowledge.” He stated “Idk [I don’t know] if I pass the training…If I should do lone wolf.That is why I have to learn military techniques from the Army . . . ” Consistent with his plan to join the U.S. Army, Xie completed Security Clearance Application for National Security Positions in February 2019. He answered “no” to the question “Have you EVER associated with anyone involved in activities to further terrorism?” An error occurred in processing Xie’s application and Xie was required to complete the application a second time approximately ten days later. He again answered “no” to the question.
The investigation revealed additional social media accounts for Xie, including a YouTube account which contained, among other things, a playlist containing videos, many of which advocated or propagandized Soldiers for Allah, the war in Syria, Hezbollah (a foreign terrorist organization), and the Houthi movement in Yemen, as well as support for Bashar al Assad, Saddam Hussein, and North Korea.
Around April 20, 2019, FBI surveillance observed Xie outside of the Trump Tower building in New York City. Shortly thereafter, according to Instagram records, Xie posted two photos to his Instagram account: One with the words “I want to bomb Trump Tower" imposed over the building image and the other with the words “[S]hould I bomb Trump Tower,” a “Yes/No” poll, and an emoji of a bomb imposed over the Trump Tower building image. Xie subsequently posted on Instagram, “Okay, so I went to NYC today and passed by Trump Tower and then I started laughing hysterically . . . shit I forgot to visit the Israeli embassy in NYC . . .i want to bomb this place along with trump tower.”
U.S. Attorney Carpenito credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and the U.S. Department of Defense, Army Counterintelligence, 902d Military Intelligence Group, with the investigation leading to today’s arrest. He also thanks the U.S. Secret Service for its assistance with the case.
Each count of attempt to provide material support to a designated terrorist organization carries a maximum penalty of 20 years in prison and a $250,000 fine. Each count of making false statements related to international and domestic terrorism carries a maximum penalty of eight years in prison and a $250,000 fine. The count of transmitting a threat in interstate commerce carries a penalty of five years in prison and a $250,000 fine.
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit and Trial Attorney Bridget Behling of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
New Jersey Man Charged with Attempting to Provide Material Support to Hamas, Making False StatementsRead the Press Release
A Somerset County, New Jersey, man was arrested today for attempting to provide material support to Hamas, lying on his application to enlist in the U.S. Army, and making threats against pro-Israel supporters. Assistant Attorney General for National Security John C. Demers, U.S. Attorney Craig Carpenito for the District of New Jersey, FBI Assistant Director for Counterterrorism Michael McGarrity and Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Field office made the announcement.
Jonathan Xie, 20, of Basking Ridge, New Jersey, was arrested this morning and is charged by complaint with two counts of attempting to provide material support to a designated terrorist organization, two counts of making false statements, and one count of transmitting a threat in interstate commerce. He is scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
“According to the allegations in the complaint, Xie sent money intended for Hamas and tried to join our military hoping to learn skills that would help him commit violence in our country,” said Assistant Attorney General Demers. “Thanks to the agents, analysts, and prosecutors working on this investigation, Xie is now in custody and will be held accountable for his crimes.”
“Homegrown violent extremists like Xie are a serious threat to national security,” U.S. Attorney Carpenito said. “The actions that he took and planned to take made that threat both clear and present, and we commend our law enforcement partners for working closely with us to stop him before he could carry out his plans to commit violence on American soil. We will continue to do everything in our power to safeguard our country and its citizens from the threat of terrorism, whether that threat comes from abroad or – as here – from within.”
“The FBI is committed to stopping anyone who attempts to assist terrorist organizations or who threatens to commit acts of violence in our communities,” said Assistant Director McGarrity. “The threat from homegrown violent extremists who self-radicalize remains persistent. While more Americans may be familiar with ISIS, we take seriously those who wish to help any designated terrorist organization. I commend the hard work of the Newark Joint Terrorism Task Force on this case.”
“The FBI remains vigilant in its efforts to protect the public from those who support terrorist groups and ideologies,” Special Agent in Charge Ehrie said. “Thanks to the hard work and determination of our agents and their law enforcement partners on the Joint Terrorism Task Force, this defendant’s further support to terrorism was disrupted and a threat to the safety of our community was averted. This case also illustrates the value of public awareness and participation. When you report suspicious activity, you become a force multiplier in the mission to keep America safe.”
According to documents filed in this case and statements made in court:
In April 2019, Xie appeared in an Instagram Live video wearing a black ski mask, and stated that he was against Zionism and the neo-liberal establishment. When asked by another participant in the video if he would go to Gaza and join Hamas, Xie stated “yes, If I could find a way.” Later in the video, Xie displayed a Hamas flag and retrieved a handgun. He then stated “I’m gonna go to the [expletive] pro-Israel march and I’m going to shoot everybody.” In subsequent Instagram posts, Xie stated, “I want to shoot the pro-israel demonstrators . . . you can get a gun and shoot your way through or use a vehicle and ram people . . . all you need is a gun or vehicle to go on a rampage . . . I do not care if security forces come after me, they will have to put a bullet in my head to stop me.”
In December 2018, Xie sent $100 via Moneygram to an individual in Gaza who Xie believed to be a member of the Al-Qassam Brigades – a faction of Hamas that has conducted attacks, to include suicide bombings against civilian targets inside Israel. At approximately the same time that Xie sent the money, he posted on his Instagram account “Just donated $100 to Hamas. Pretty sure it was illegal but I don’t give a damn.” In April 2019, Xie sent a link to a website for the Al-Qassam Brigades to an FBI employee who was acting online in an undercover capacity. Xie described the website as a “Hamas” website and stated he had previously sent a donation to the group. Xie then sent screenshots of the website to the undercover employee and demonstrated how to use a new feature on the website that allows donations to be sent via Bitcoin. On or about April 26, 2019, Xie sent a donation of approximately $20 in Bitcoin (including transaction fees) via the website as a test to see whether the Bitcoin feature worked.
In February 2019, Xie stated that he wanted to join the U.S. Army “to learn how to kill… So I can use that knowledge.” He stated “Idk [I don’t know] if I pass the training…If I should do lone wolf. That is why I have to learn military techniques from the Army . . .” Consistent with his plan to join the U.S. Army, Xie completed a Security Clearance Application for National Security Positions in February 2019. He answered “no” to the question “Have you EVER associated with anyone involved in activities to further terrorism?” An error occurred in processing Xie’s application and Xie was required to complete the application a second time approximately ten days later. He again answered “no” to the question.
The investigation revealed additional social media accounts for Xie, including a YouTube account which contained, among other things, a playlist containing videos, many of which advocated or propagandized Soldiers for Allah, the war in Syria, Hezbollah (a foreign terrorist organization), and the Houthi movement in Yemen, as well as support for Bashar al Assad, Saddam Hussein, and North Korea. Around April 20, 2019, FBI surveillance observed Xie outside of the Trump Tower building in New York City. Shortly thereafter, according to Instagram records, Xie posted two photos to his Instagram account: One with the words “I want to bomb Trump Tower” imposed over the building image and the other with the words “[S]hould I bomb Trump Tower,” a “Yes/No” poll, and an emoji of a bomb imposed over the Trump Tower building image.
Xie also posted on Instagram his desire to blow up the Israeli Embassy in New York, and the need for “someone … to get a truck filled with explosives and blow up the Coachella event.”
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and the U.S. Department of Defense, Army Counterintelligence, 902d Military Intelligence Group, with the investigation leading to today’s arrest.
Each count of attempt to provide material support to a designated terrorist organization carries a maximum penalty of 20 years in prison and a $250,000 fine. Each count of making false statements carries a maximum penalty of five years in prison and a $250,000 fine. The count of transmitting a threat in interstate commerce carries a penalty of five years in prison and a $250,000 fine.
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit and Trial Attorney Bridget Behling of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Middletown, New Jersey, Investment Manager and Former Fire Chief Sentenced to 15 Years in Prison for Running Ponzi Scheme to Steal More Than $10 MillionRead the Press Release
NEWARK, N.J. – An investment manager with an office in Middletown, New Jersey, was sentenced today to 180 months in prison for running a Ponzi scheme, concealing losses, faking investment returns, and stealing more than $10 million in investor money, U.S Attorney Craig Carpenito announced today.
Vincent P. Falci, 59, of Middletown, was convicted Dec. 13, 2018, of all four counts of a superseding indictment: three counts of wire fraud and one count of securities fraud following a two-week trial before U.S. District Judge Anne E. Thompson, who imposed the sentence today in Trenton federal court.
According to the superseding indictment and evidence at trial:
Falci controlled a number of investment funds under the names “Saber Funds” and “Vicor Tax Receivables LLP.” The Saber Funds were a collection of investment funds that Falci created and operated, starting in the early 2000s. Many of his earliest victims were friends, family, and associates. Falci served as a fire chief in Middletown, and many early victims were policemen, fireman, and retirement funds for first responders. The Saber Funds grew to have more than 200 investors from whom the defendant raised more than $10 million.
Falci falsely told investors that the Saber Funds were conservatively invested in tax liens – which generated high returns with little risk. In reality, Falci diverted investor money to himself, his family, and to other companies he controlled. Some of the diverted funds were used for riskier ventures, such as day trading and real estate. Falci concealed losses and his own theft from investors. Based on these misrepresentations, investors continued to entrust additional funds to Falci and left previous investments under his control.
In early 2012, Falci started the Vicor Fund, targeting wealthier investors with greater sophistication in financial affairs. The investors in the Vicor Fund included financial industry professionals, and Falci ultimately raised $20 million from these victims. He again falsely represented that he had experience and a track record of success investing in tax liens, and promised that he could produce high rates of return with little risk. In reality, the assets of the Vicor Fund were rapidly depleted by Falci’s theft.
In order to support his own lifestyle and repay investors the gains he had promised, Falci stole more than $10 million from the Vicor Fund between 2012 and 2016. At the same time, he reported fake investment gains to his investors on every monthly statement. Falci concealed his theft in several ways, including by diverting funds to a fake company that he created to steal from investors. He also forged emails and reports, and created fake assets for the fund.
In addition to the prison term, Judge Thompson sentenced Falci to three years of supervised release, with restitution and forfeiture to be determined at a later date.
U.S. Attorney Carpenito credited inspectors of U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to today’s verdict. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Office, under the direction of Attorney General Gurbir Grewal and Bureau Chief Christopher Gerrold, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Justin Herring, Chief of the Cybercrimes Unit of the U.S. Attorney’s Office in Newark.
Middlesex County Man Admits Participation in Conspiracy to Illegally Export Firearms and Other Items to UkraineRead the Press Release
NEWARK, N.J. – An Edison, New Jersey, man today admitted that he conspired to export, without a license, firearms and other items subject to the export control list, U.S. Attorney Craig Carpenito announced.
Gene Shilman, 62, a native of the Soviet Union, pleaded guilty before U.S. District Court Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of conspiracy to violate the Arms Export Control Act, the International Emergency Economic Powers Act, and the Export Control Reform Act.
According to documents filed in this case and statements made in court:
From May 2014 through October 2018, Shilman entered into a conspiracy that included a conspirator living in Ukraine. Shilman exported defense articles regulated by the Arms Export Control Act. He exported to Ukraine items that are on the commerce control list as well as items with both defense and civilian uses that are subject to the Export Control Reform Act. Shilman never obtained the required export license from the U.S. Department of Commerce.
Shilman ordered and received firearm components and parts, ammunition, night-vision goggles and bulletproof vests from various vendors and firearms dealers in the United States. He received numerous wire transfers from overseas locations to pay for the purchase of these items. Shilman repackaged and shipped these munitions to overseas locations without the required export licenses.
In September 2018, Shilman completed a Customs Declaration form at a U.S. Post Office in Middlesex County, New Jersey, on which he falsely represented that the contents of the parcel destined for Ukraine contained tools and cartridges. An inspection of the parcel revealed that it actually contained multiple upper receivers, ammunition magazines and threaded barrels for handguns and a set of front and rear sights for a handgun.
The conspiracy count with which Shilman is charged carries a maximum potential sentence of five years in prison.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and the U.S. Department of Commerce, under the direction of Special Agent in Charge Jonathan Carson, with the investigation leading to the arrests.
The government is represented by Assistant U.S. Attorney and Thomas S. Kearney of the U.S. Attorney’s Office National Security Unit in Newark.
Chinese National Charged with Importing AnaloguesRead the Press Release
NEWARK, N.J. – A Chinese national who has held high-level executive positions at chemical and pharmaceutical companies in China has been arrested and charged with drug and money laundering offenses, including the importation of fentanyl analogues, U.S. Attorney Craig Carpenito announced today.
Hao Qin, a/k/a “John Chin,” 32, is charged by complaint with one count of conspiracy to import controlled substance analogues and one count of conspiracy to commit international money laundering. The defendant was arrested late yesterday after landing at Los Angeles International Airport and will have his initial appearance today before U.S. District Judge Jean Rosenbluth in the Central District of California.
According to documents filed in this case and statements made in court:
Agents of the Drug Enforcement Administration received information from a cooperating witness that Qin and others were involved in the distribution of controlled substances and controlled substance analogues used to manufacture synthetic cannabinoids for human consumption. They were also aware that Qin and others were laundering their illegal proceeds.
During the time of the conspiracy, Qin was a high-level executive for pharmaceutical and chemical companies. He was allegedly responsible for importing more than 500 kilograms of controlled substance analogues into the United States. Among the substances imported by Qin and his conspirators through Qin’s chemical business were furanyl fentanyl and 4-FIBF, two potent analogues of the opioid drug fentanyl.
Qin is also charged with laundering the proceeds of his international drug business, including accepting wire payments designed to pay off a drug debt of more than $500,000 incurred by one of Chin’s former clients in the United States.
The count of conspiracy to import controlled substance analogues is punishable by a maximum of 20 years in prison and a fine of $1 million, and the count of conspiracy to commit international money laundering is punishable by a maximum of 20 years in prison and a fine of $500,000.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.U.S. Attorney Carpenito credited special agents with the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to the charges. The investigation was supported and coordinated by the Department of Justice’s multi-agency Special Operations Division.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Office’s Cyber Crimes Unit, Assistant U.S. Attorneys Sammi Malek of the Office’s Economic Crimes Unit, and Erica Liu, Chief of the Office’s Opioids Unit.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Members of Jersey City Gang Charged with ShootingRead the Press Release
NEWARK, N.J. – Two members of a Jersey City gang have been charged with the Jan. 9, 2019, shooting of two people and the attempted shooting of a third person, U.S. Attorney Craig Carpenito announced today.
Jalil Holmes, a/k/a “Broadday,” 19, of East Orange, New Jersey, and Jakeem Gibson-Madison, a/k/a “Beanz,” 24, of Jersey City, New Jersey, made their initial appearances today before U.S. Magistrate Judge Mark Falk in Newark federal court. They each are charged by complaint with three counts of assault with a dangerous weapon in aid of racketeering activity and three counts of discharging a firearm during a crime of violence.
According to the documents filed in this case and statements made in court:
Holmes and Gibson-Madison are allegedly both members of a street gang known to operate in the area of the Marion Gardens Housing Complex in Jersey City. In retaliation for the December 2018 murder of a fellow gang member, Holmes and Gibson-Madison sought out individuals associated with a rival gang. They located a BMW automobile that Holmes believed was occupied by rival gang members. While Gibson-Madison parked their car around the corner, Holmes approached the BMW, pulled a handgun from his waistband and fired multiple shots into the vehicle. One victim suffered three gunshot wounds to his back, a second victim suffered two gunshot wounds to his back, and the third victim was not hit.
Each count of assault with a dangerous weapon in aid of racketeering activity is punishable by up to 20 years in prison. Each count of discharging a firearm during a crime of violence carries a mandatory minimum term of 10 years in prison and a maximum sentence of life in prison, which must run consecutively to any terms imposed on the other counts.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Desiree Grace Latzer and Elaine K. Lou of the Organized Crime and Gangs Unit in Newark.
Virginia Man Sentenced to 19 Months in Prison for Role in Medicare FraudRead the Press Release
Ocean County Co-Defendant Recently Sentenced to 13 Months in Prison
TRENTON, N.J. – A Virginia man was sentenced today to 19 months in prison for his role in a scheme that used the purported non-profit The Good Samaritans of America to defraud the Medicare Program of more than $525,000 by convincing hundreds of senior citizens to submit to genetic testing, U.S. Attorney Craig Carpenito announced.
Kenneth Johnson, 39, of Lorton, Virginia, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiring to wrongfully access individually identifiable information.
His co-defendants also previously pleaded guilty before Judge Thompson; Sheila Kahl, 47, of Ocean County, was sentenced May 14, 2019, to 13 months in prison, and Seth Rehfuss, 44, of Somerset, New Jersey, was sentenced May 10, 2019, to 50 months in prison.
According to documents filed in this case and statements made in court:
Rehfuss used The Good Samaritans of America to gain access to groups of senior citizens in various low-income senior citizen housing complexes and persuaded them to submit to genetic tests without any involvement of a health care professional. Contrary to what he told the senior citizens and staff at the housing complexes, Rehfuss was a sales representative for laboratories, a fact he concealed from his targets. In order to convince senior citizens to submit to genetic testing, he used fear-based tactics during the presentations, including suggesting the senior citizens would be vulnerable to heart attacks, stroke, cancer and suicide if they did not have the genetic testing.
To get the tests authorized, Rehfuss used advertisements on Craigslist to recruit health care providers for the scheme. The health care providers were paid thousands of dollars per month by Rehfuss and others to sign their names to requisition forms authorizing testing for patients they never examined or had any interaction with. Rehfuss and his conspirators, including Kahl and Johnson, established email accounts, phone numbers, and made-up “office manager” names for the requisition forms that made it seem as though the health care providers were actually treating the patients being swabbed and would be evaluating the test results.
Rehfuss, Kahl, Johnson, and others caused the Medicare program to pay two clinical laboratories for the fraudulent test claims that the scheme generated. They obtained and divided more than $100,000 in commission payments from the laboratories.
The conspirators were also actively working towards expanding the scheme outside of New Jersey into other states, including: Georgia, Delaware, Virginia, Maryland, Pennsylvania, South Carolina, Michigan, Mississippi, Florida, Tennessee and Arizona.
In addition to the prison term, Judge Thompson sentenced Johnson to three years of supervised release, ordered him to pay restitution of $525,000 and forfeiture of $525,000.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; special agents of the U.S. Attorney’s Office for the District of New Jersey; and the Cape May County Department of Aging and Disability Services, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman, Bernard J. Cooney and Sara F. Merin, of the Health Care & Government Fraud Unit in Newark.
Defense counsel:
Johnson: David B. Glazer Esq., Livingston, New Jersey
Kahl: Stacy A. Biancamano Esq., Cranford, New Jersey
Rehfuss: Aidan P. O’Connor Esq., Hackensack, New JerseyInsurance Broker Bookeeper Sentenced to 27 Months in Prison for Stealing $900,000 from EmployerRead the Press Release
NEWARK, N.J. – A former accounting specialist in the Ridgefield Park, New Jersey, office of an insurance broker was sentenced today to 27 months in prison for defrauding her employer of approximately $900,000, U.S. Attorney Craig Carpenito announced.
Violeta McGough, 57, of Bergenfield, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging her with one count of wire fraud. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2008 through October 2015, McGough allegedly made numerous fraudulent accounting entries to steal funds that her employer – identified as “Victim-Company 1” – collected as insurance premiums. The premiums were for policies underwritten and issued by Victim-Company 1 on behalf of a United Kingdom-based insurance syndicate that actually held the risk. As part of her employment duties, McGough tracked premiums collected by Victim-Company 1 and its monthly payments to the syndicate.
McGough repeatedly used her access to Victim-Company 1’s books to divert a portion of those payments to her personal use. McGough disguised the stolen funds as reimbursed premiums for cancelled policies. She caused Victim-Company 1 to generate checks payable to a person identified in the complaint as “Individual 1,” who suppossedly worked for a premium financing company, but did not actually work there. McGough personally deposited the checks into Individual 1’s bank account and the bulk of the funds were transmitted back to McGough’s bank account.
In addition to the prison term, Judge Arleo sentenced McGough to three years of supervised release.
U.S. Attorney Carpenito credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the U.S. Attorney’s Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
Nebraska Man Charged with Selling Employer’s Confidential InformationRead the Press Release
NEWARK, N.J. – A Nebraska man was arrested today for allegedly selling one of his employer’s databases, U.S. Attorney Craig Carpenito announced.
Timothy Young, 49, of Moorefield, Nebraska, is charged by complaint with one count of wire fraud. He is scheduled to make his initial appearance May 17, 2019, before U.S. Magistrate Judge F.A. Gossett III, in Omaha, Nebraska, federal court.
According to documents filed in this case:
Young was employed at a data analytics and risk assessment firm based on New Jersey. The company serves customers worldwide, including entities providing insurance and financial services as well as government entities. The company maintains a network that houses, among other things, significant amounts of personally identifiable information.
Young provided to an individual he met online non-public information from the company’s system, including names, logon names, passwords, email addresses, and telephone numbers for some of the company’s clients. Young expected to be paid for providing this information.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Young or twice the gross loss suffered by the victim.
U.S. Attorney Carpenito credited special agents the FBI Cyber Task Force, which includes special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and task force officers from the N.J. State Police, Jersey City Police Department and Federal Protective Service, with the investigation leading to today’s arrest. He also thanked FBI Omaha, under the direction of Randall C. Thysse, for its role in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cyber Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Middlesex County CPA Sentenced to 27 Months in Prison for Filing False Tax ReturnRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, certified public accountant was sentenced today to 27 months in prison for underreporting his income on his personal tax return, avoiding paying more than $672,000 in taxes, U.S. Attorney Craig Carpenito announced.
Amit Govil, 58, of New Brunswick, New Jersey, previously pleaded guilty before U.S. District Judge Jose L. Linares to Count 1 of an indictment charging him with making and subscribing a false tax return. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Govil, licensed as a CPA in New York and New Jersey, operated P&G Associates, a business headquartered in East Brunswick, New Jersey, providing risk management and audit services to community banks. Govil admitted that for the tax year 2010, he underreported and failed to report the gross receipts or sales of P&G Associates on Schedule C of his personal tax return, avoiding more than $672,000 in taxes.
In addition to the prison term, Judge Linares sentenced Govil to one year of supervised release.
U.S. Attorney Carpenito credited special agents of the IRS, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Courtney A. Howard and Catherine R. Murphy of the U.S. Attorney’s Office Economic Crimes Unit.
Essex County Man Admits Role in $2 Million Fraudulent Check Scheme Targeting Home-Improvement StoresRead the Press Release
NEWARK, N.J. – A Newark man today admitted his role in a phony check scheme that resulted in the theft of over $2 million in merchandise from multiple home-improvement stores throughout the country, U.S. Attorney Craig Carpenito announced.
Lessie Dickerson III, 35, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to one count of an indictment charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
From December 2013 and through February 2017, Dickerson and others conspired to obtain merchandise or store credit from home-improvement stores in the eastern United States, including New Jersey, by purchasing items with fraudulent checks. They entered home-improvement and other retail stores and gathered high-value items, like air conditioners or hardwood flooring. Dickerson and others then typically “purchased” the items either by a fraudulent check with a phony name but authentic account and routing numbers, or by pretending to be an authorized signatory on a store credit account that Dickerson and others had previously opened with a phony check.
During some of the transactions, Dickerson and others displayed fake driver’s licenses that had been created by one of the conspirators, which either duplicated the phony name imprinted on the fraudulent check they presented for payment or matched the name of an authorized signatory on a store credit account that they had previously opened.
Dickerson and others allegedly stole over $2 million in merchandise from various retailers in New Jersey, New York, Pennsylvania, Delaware, North Carolina, Georgia, Virginia, Connecticut, Massachusetts, and South Carolina.
The count of conspiracy to commit wire fraud carries a maximum potential of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 16, 2019.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s guilty plea. He also thanked the Union Township Police Department, the Holmdel Police Department, the Passaic County Prosecutor's Office, the Totowa Police Department, and the Monroe Township Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Paterson Police Officer Admits Conspiring to Violate Civil Rights, Filing A False Police ReportRead the Press Release
NEWARK, N.J. – A City of Paterson police officer today admitted conspiring with other officers to violate the civil rights of individuals in Paterson, and to filing a false police report to conceal his criminal activity, U.S. Attorney Craig Carpenito announced.
Police Officer Matthew Torres, 30, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with conspiracy to violate individuals’ civil rights and filing a false police report.
According to documents filed in this case and statements made in court:
Torres, along with other Paterson police officers, including Eudy Ramos, Jonathan Bustios, Daniel Pent, and others, stopped and searched motor vehicles, without any justification, and stole cash and other items from the occupants of the motor vehicles. Torres and the other officers sometimes used fake paperwork to trick individuals into believing that the cash seizures and vehicle stops represented legitimate law enforcement encounters. Torres and the other officers also stopped and searched individuals on the streets of Paterson, and illegally took their money. To cover up their criminal activity, Torres and his fellow officers filed false police reports.
For example, on Dec. 7, 2017, while on duty, Torres and Ramos conducted a vehicle stop in Paterson. Torres and Ramos searched the vehicle, the driver, and the passenger. The passenger advised Torres and Ramos that he had a small quantity of marijuana. He also had approximately $3,100. Ramos and Torres told the passenger that they could take $500 from the passenger and have him sign a piece of paper. Ramos then placed a call, purportedly to his superior, and told the passenger that the superior officer said it had to be $800. Ramos took out a piece of white paper, wrote something on it, and told the passenger to sign it. Afterwards, Torres and Ramos released the driver and passenger. Torres and Ramos stole approximately $800 from the passenger, and they shared the stolen cash proceeds. In order to conceal their theft of monies, Torres and Ramos each omitted the encounter from their daily Paterson Police Department activity logs.
The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison. The false records count carries a maximum penalty of 20 years in prison. The maximum fine for each count is $250,000. Sentencing is scheduled for Sept. 9, 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 arrest. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
Defense counsel: John C. Whipple Esq., Morristown, New Jersey
Doctor Described as ‘Candy Man’ and ‘El Chapo of Opioids’ Charged with Distributing Opioids to PatientsRead the Press Release
NEWARK, N.J. – A Bergen County doctor has been charged with distributing opioids without a legitimate medical reason and falsifying medical records to cover it up, U.S. Attorney Craig Carpenito announced.
Robert Delagente, 45, of Oakland, New Jersey, is charged by complaint with one count of distribution of controlled dangerous substances and one count of obstruction of justice. Delagente is scheduled to appear 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:
Beginning in May 2014, Delagente was a doctor at a medical practice called North Jersey Family Medicine (NJFM) in Oakland, New Jersey. He allegedly described himself in conversations pertaining to his prescribing of painkillers as the “Candy Man” and the “El Chapo of Opioids.” Delagente knowingly prescribed controlled substances, such as oxycodone, Percocet, Tylenol with codeine, and various benzodiazepines (alprazolam, diazepam, clonazepam, and temazepam), outside the ordinary course of professional practice and without a legitimate medical purpose. He ignored the inherent danger and medical risk of overdose, drug abuse, and death that can accompany prescriptions of highly addictive opioids, benzodiazepines, and muscle relaxers, both on their own and in combination with one another.
Delagente prescribed controlled substances without ever seeing the purported patient for a medical visit or even discussing with the patient the medical need for the prescription. He allowed patients to ask him for controlled substances via text message and would write a prescription for patients that he would leave at the front desk, without requiring an office visit or consultation of any kind. He allowed patients to dictate the strength and dosage of the controlled substances he prescribed for them. Delagente also prescribed the dangerous drug combination known as the “Holy Trinity,” comprised of opioids (usually oxycodone), benzodiazepines (usually alprazolam) and muscle relaxers (usually carisoprodol).
Delagente failed to monitor patients for addiction and ignored drug screening tests to determine whether certain patients were taking illicit drugs. In fact, Delagente prescribed controlled substances to patients he knew were addicted to opioids or other controlled substances. In one instance, an NJFM employee texted Delagente that a patient had gotten a babysitter and driven a long distance to get to the practice, but had been unable to see a doctor. Delagente responded: “Oh well … C’est la vie! Lol … He can wait for his oral heroin another day. Lol.”
One patient texted Delagente that the patient “probably can’t stop the pk’s,” referring to painkillers. The patient told Delagente that the patient “would need a plan to stop…not cold turkey.” A few days later, when the patient was having trouble obtaining pain medication, the patient wrote to Delagente that “If I go 4 days without [painkillers] I am in huge trouble.” In response, Delagente wrote “I will leave you a short supply RX [prescription] at the front to pick up.” Delagente then wrote the patient a prescription for 120 tablets of 30-milligram oxycodone for 30 days. Delagente at one point told this patient: “I’m literally sticking my neck out and can lose my medical license or [be] arrested for what I just did.”
Delagente also was charged with altering medical records of patients who received controlled substance prescriptions from him after law enforcement officials had subpoenaed the records from him in late April 2019.
Delagente faces a maximum penalty of 20 years in prison and a $1 million fine on the distribution of controlled dangerous substances charge. Delagente faces a maximum penalty of 20 years in prison and a $250,000 fine on the obstruction charge.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Erica Liu, Chief of the Opioids Unit, and Jason S. Gould of the Opioids Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Riza Dagli Esq., Roseland, New Jersey