District of New Jersey
Press releases recorded for this federal judicial district.
Somerset County Man Sentenced to 50 Months in Prison for Role in Medicare FraudRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 50 months in prison for using the purported non-profit The Good Samaritans of America to defraud the Medicare Program of more than $430,000 by convincing hundreds of senior citizens to submit to genetic testing, U.S. Attorney Craig Carpenito announced.
Seth Rehfuss, 44, of Somerset, New Jersey, previously pleaded guilty before U.S. District Judge Ann E. Thompson to a superseding information charging him with one count of conspiracy to commit health care fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Rehfuss admitted that he 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, Rehfuss 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, Sheila Kahl and Kenneth 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.
Rehfuss and others 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 Rehfuss to three years of supervised release, ordered him to pay restitution of $434,963 and forfeiture of $66,844.
Sheila Kahl, 47, of Ocean County, previously pleaded guilty and is scheduled to be sentenced May 13, 2019. Kenneth Johnson, 39, of Lorton, Virginia, pleaded guilty and is scheduled to be sentenced May 20, 2019.
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 Bernard J. Cooney, Sara F. Merin, and Danielle Alfonzo Walsman of the Health Care & Government Fraud Unit in Newark.
Newark Man Charged After Authorities Locate Heroin Mill in His ApartmentRead the Press Release
NEWARK, N.J. – A Newark man was charged today with narcotics offenses after an authorized search revealed that he was operating a large-scale heroin mill out of his apartment, U.S. Attorney Craig Carpenito announced.
Alexis Garcia Cabrera, 49, is charged by complaint with one count of possessing over one kilogram of heroin with intent to distribute. Garcia Cabrera made his initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was released on home detention.
According to documents filed in this case and statements made in court:
On May 9, 2019, Drug Enforcement Administration (DEA) agents executed a search warrant at Garcia Cabrera’s residence and located multiple freezer-type bags containing heroin, as well as a large quantity of loose heroin that was in the processing stage. Law enforcement officers also located equipment used to process and “cut” heroin, including grinders, sifters, and chemical cutting agents, and large quantities of materials designed to package heroin for street-level distribution, including more than 1,000 glassine envelopes. Agents also located multiple “bricks” of heroin, or packages of 50 individual doses, which are intended for street-level distribution.
The count of possession of over one kilogram of heroin with intent to distribute carries a maximum penalty of life in prison, a mandatory minimum term of 10 years in prison and a $10 million fine.
U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s charge.
The government is represented by Special Assistant United States Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender, Newark
New York CPA Sentenced to 14 Months in Prison for False Tax FilingRead the Press Release
NEWARK, N.J. – A certified public accountant from New York was sentenced today to 14 months in prison for filing a tax return in his own name that contained materially false information, U.S. Attorney Craig Carpenito announced.
Christopher Miu, 58, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of subscribing to a tax return that he knew substantially understated his gross income. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between 2008 and 2014, Miu failed to file income tax returns own his own behalf. When he ultimately filed returns for those years, Miu substantially under-reported his gross income, leading to a tax loss to the United States of more than $550,000.
In addition to the prison term, Judge Martini sentenced Miu to one year of supervised release and ordered him to pay restitution of $670,000.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan R. Tafur, with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Andrew Leven of the Healthcare and Government Fraud Unit of the U.S. Attorney’s Office, District of New Jersey.
Defense counsel: Aidan P O’Connor Esq., Hackensack, New Jersey
Mercer County Man Indicted on Production of Child Pornography Abroad, Illicit Sexual Conduct Abroad, and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man, formerly of Ocean County, New Jersey – a cargo pilot who traveled abroad frequently – was indicted today for allegedly using two minors to participate in acts of child sexual abuse, which he video-recorded and imported to the United States, U.S. Attorney Craig Carpenito announced.
Frank William Maile, 63, of Hamilton, New Jersey, and formerly of New Egypt, New Jersey, was previously arrested on May 1, 2018, by agents of the Department of Homeland Security (DHS), Homeland Security Investigations (HSI). Maile is retired from the U.S. Air Force and, before his arrest, worked as a cargo pilot. A grand jury sitting in Trenton today returned a five-count indictment against Maile, charging two counts of production of child pornography abroad, two counts of illicit sexual conduct abroad, and one count of possession of child pornography.
According to documents filed in this case and statements made in court:
Between Nov. 27, 2015, and Dec. 27, 2015, while in the Philippines, Maile created images and videos of two minor females engaging in multiple sex acts. Between Feb. 18, 2016, and March 28, 2016, Maile traveled to the Philippines and engaged in sexual contact with both victims, which constituted commercial sex acts because they were performed for compensation, and also created additional videos of the victims. Maile also possessed additional images of child sexual abuse in New Jersey at the time of his arrest.
The charges of producing child pornography abroad each carry a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charges of engaging in illicit sexual conduct in a foreign place each carry a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum potential penalty of 10 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the DHS Cherry Hill office, under the direction of Resident Agent in Charge Richard Reinhold, with the investigation leading to the charges. He also thanked the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and the Plumsted Township Police Department, under the direction of Chief Earl Meroney, for their assistance with the investigation.
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 in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Anyone with information regarding possible victims of this activity is urged to contact HSI’s tip line at 866-DHS-2-ICE.
Defense counsel: Jerome A. Ballarotto Esq., Trenton
Hudson County Woman Convicted at Trial of Enslaving Sri Lankan Woman for over Nine YearsRead the Press Release
CAMDEN, N.J. – A Hudson County, New Jersey, woman was convicted today of charges of forced labor, alien harboring for financial gain, and marriage fraud, U.S. Attorney Craig Carpenito and Assistant Attorney General Eric Dreiband of the Civil Rights Division announced.
Alia Imad Faleh Al Hunaity, a/k/a “Alia Al Qaternah,” 43, was found guilty on all counts of the indictment against her following a six-day trial before U.S. District Judge Robert B. Kugler in Camden federal court. The jury deliberated for two hours before returning the guilty verdicts.
“The defendant in this case treated the victim as a slave,” U.S. Attorney Carpenito said. “Al-Hunaity kept the victim in this country illegally and hid her away, in order to force her to perform household work for Al-Hunaity without pay, privacy, or the ability to move about freely. Through the guilty verdicts in this case and other prosecutions like it, this office continues to work to ensure that the evil of human trafficking is brought out from hiding and into the light so that it may be punished appropriately.”
“The defendant took advantage of the victim for years, forcing her to live in terrible conditions, work without pay, and then enter into a fraudulent marriage to continue the cycle of abuse,” Assistant Attorney General Dreiband said. “The Department of Justice will continue to investigate and vigorously prosecute forced labor cases so that victims can obtain justice.”
According to documents filed in this case and the evidence at trial:
Hunaity brought the victim, a Sri Lankan national, to the United States on a temporary visa in 2009 to perform domestic work. Hunaity caused the victim to overstay her visa and remain in the United States illegally for over nine years. Hunaity forced the victim to cook and clean her homes in Woodland Park and Secaucus, New Jersey, and to care for her three children, all without pay. She limited the victim’s interactions with the world outside of Hunaity’s homes. During this time, Hunaity required the victim to sleep on a bed in a public space in Hunaity’s homes, including in the kitchen. In 2018, Hunaity forced the victim to marry her so that the victim could obtain legal residence and Hunaity could continue to force her to work without fear of the victim being deported.
The forced labor charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Sept. 4, 2019.
U.S. Attorney Carpenito and assistant Attorney General Dreiband credited special agents of U.S. Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Brian Michael, and special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s verdicts.
This case was prosecuted in conjunction with the interagency Anti-Trafficking Coordination Team initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies. U.S. Citizenship and Immigration Services’ Newark Fraud Detection and National Security Unit also provided support.
The government is represented by Assistant U.S. Attorneys Andrew Macurdy and Alyson M. Oswald of the U.S. Attorney’s Office for the District of New Jersey, Criminal Division, and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Hudson County Woman Convicted at Trial of Compelled Labor of Sri Lankan Woman for over Nine YearsRead the Press Release
A Hudson County, New Jersey, woman was convicted today on charges of forced labor, alien harboring for financial gain, and marriage fraud, announced Assistant Attorney General Eric Dreiband of the Civil Rights Division and U.S. Attorney Craig Carpenito for the District of New Jersey.
Alia Imad Faleh Al Hunaity, aka “Alia Al Qaternah,” 43, was found guilty on all counts of the indictment against her following a six-day trial before U.S. District Judge Robert B. Kugler in Camden federal court. The jury deliberated for two hours before returning the guilty verdict.
“The defendant took advantage of the victim for years, forcing her to live in terrible conditions, work without pay, and then enter into a fraudulent marriage to continue the cycle of abuse,” said Assistant Attorney General Eric Dreiband. “The Department of Justice will continue to investigate and vigorously prosecute forced labor cases so that victims can obtain justice.”
“The defendant in this case treated the victim as a slave,” U.S. Attorney Carpenito said. “Al-Hunaity kept the victim in this country illegally and hid her away, in order to force her to perform household work for Al-Hunaity without pay, privacy, or the ability to move about freely. Through the guilty verdicts in this case and other prosecutions like it, this office continues to work to ensure that the evil of human trafficking is brought out from hiding and into the light so that it may be punished appropriately.”
According to documents filed in this case and the evidence at trial, Hunaity brought the victim, a Sri Lankan national, to the United States on a temporary visa in 2009 to perform domestic work. Hunaity caused the victim to overstay her visa and remain in the United States illegally for over nine years. Hunaity forced the victim to cook and clean her homes in Woodland Park and Secaucus, New Jersey, and to care for her three children, all without pay. She further limited the victim’s interactions with the world outside of Hunaity’s homes. During this time, Hunaity required the victim to sleep on a bed in a public space in Hunaity’s homes, including in the kitchen. In 2018, Hunaity forced the victim to marry her so that the victim could obtain legal residence and Hunaity could continue to force her to work without fear of the victim being deported.
The forced labor charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Sept. 4.
U.S. Homeland Security Investigations, Newark Division, under the direction of Brian Michael, led the investigation.
This case was prosecuted in conjunction with the interagency Anti-Trafficking Coordination Team initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
The government is represented by Assistant U.S. Attorneys Andrew Macurdy and Alyson M. Oswald of the U.S. Attorney’s Office for the District of New Jersey, Criminal Division, and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Passaic County, New Jersey, Man Convicted in Heroin Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was convicted today on charges that he conspired to distribute at least one kilogram of heroin, U.S. Attorney Craig Carpenito announced.
Yasmil Minaya, a/k/a “Animal,” 33, was convicted on both counts of the indictment against him: one count of conspiracy to distribute one kilogram or more of heroin and one count of distribution and possession with intent to distribute one kilogram or more of heroin. Minaya was convicted following a two-week trial before U.S. District Judge Kevin McNulty in Newark federal court. The jury deliberated one day before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
Law enforcement officials learned that Minaya and his co-defendants were serving as New Jersey and New York area distributors for a drug trafficking organization operating in the Dominican Republic, Mexico and elsewhere. The organization’s narcotics were usually transported to this area via truck and were paid for by the defendants before being sold on the street. The drug organization has been linked to several multiple-kilogram seizures of heroin, including a seizure of approximately two kilograms of heroin in March 2015, four kilograms in November 2015, and 10 kilograms in January 2017.
The counts on which Minaya was convicted carry a mandatory minimum sentence of 10 years imprisonment, a maximum sentence of life imprisonment, and a maximum fine of $10 million per count. Sentencing is scheduled for Sept. 4, 2019.
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, and officers with the N.J. State Police, Trafficking North Unit, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the OCDETF/Narcotics Unit in Newark and U.S. Attorney Carpenito.
Hoboken, New Jersey, Man Admits Promoting Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A Hoboken, New Jersey, man today admitted promoting a voter bribery scheme in two city elections, U.S. Attorney Craig Carpenito announced.
Matthew Calicchio, 28, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to an information charging him with using the mails to promote voter bribery from 2013 to 2015 in municipal elections in Hoboken.
According to documents filed in this case and statements made in court:
In November 2013, Calicchio, Lizaida Camis, Dio Braxton and others – at Frank Raia’s direction – participated in a scheme to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots for the November 2013 Hoboken municipal election. Under New Jersey law, registered voters are permitted to cast a ballot by mail. They must complete and submit to their county clerk’s office an Application for Vote by Mail Ballot (VBM Application). The clerk’s office processes the application and sends the applicant a mail-in ballot.
After the mail-in ballots were delivered to the Hoboken voters, Camis and others went to the voters’ residences and, in some cases, instructed the voters to vote for a rent control referendum that Raia supported. Camis and others 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 instructed Calicchio, Camis, and Braxton that if the ballots did not come back open, the voters would not get paid. Braxton, Camis and others then checked the ballots to ensure that the voters had voted for the correct slate of candidates, including for Raia, and that they had voted for the referendum that was favored by Raia. Calicchio and others mailed certain of the completed ballots to the Hudson County Clerk’s Office. After the election, the voters received $50 checks from an entity associated with Raia.
In November 2015, Calicchio and Willie Rojas agreed to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots in the November 2015 Hoboken municipal election in favor of a certain candidate for City Council. The candidate told Calicchio that the candidate wanted to win at all costs, and the candidate further indicated that everyone who voted by mail would get paid. Willie Rojas provided voters with VBM Applications, told the voters that they would get paid $50 for casting mail-in ballots, and then delivered the completed VBM Applications to the Hudson County Clerk’s office. After the mail-in ballots were delivered to the voters, Rojas went to the voters’ residences to collect the mail-in ballots. Calicchio and Rojas then checked the ballots to ensure that they had been cast for their candidate, and Calicchio signed an affidavit for each ballot falsely stating that he had assisted the voters in completing their ballots. After the election, the candidate handed Calicchio an envelope with $50 checks, and Calicchio passed the envelope to Rojas, who gave the checks to the voters.
The count to which Calicchio pleaded guilty is punishable by a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 12, 2019.
Camis previously pleaded guilty to her role in the scheme and is awaiting sentencing. Braxton and Raia were previously indicted and Rojas was previously charged by complaint. The charges against them are merely accusations, and they are 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 Rahul Agarwal, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Michael P. Koribanics Esq., Clifton, New Jersey
Former Ocean County Chiropractor Sentenced to Five Years in Prison for Income Tax Evasion and Failure to File Report of Russian Bank AccountRead the Press Release
TRENTON, N.J. – A former chiropractor with offices in Lakewood, New Jersey, was sentenced today to 60 months in prison for evading income taxes totaling more than half a million dollars from 2012 through 2015 and failing to report a Russian bank account, to which he wired more than $1.5 million, U.S. Attorney Craig Carpenito announced.
Carlo Amato, 57, of Beachwood, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to one count of tax evasion and one count of failure to file a report of foreign financial account (FBAR) while violating another law of the United States and as part of a pattern of illegal activity involving more than $100,000 in a 12-month period. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From 2012 through 2015, Amato operated a chiropractic office in Lakewood through two entities: Chiropractic Care Consultants Inc. and Accident Recovery Physical Therapy. He deposited, or caused to be deposited, checks for chiropractic services into accounts held in the names of his minor children. Amato knew that these checks were taxable as income, but he did not disclose the payments to his accountant, nor did he report them on his tax returns. Amato also failed to report as taxable income certain additional funds that were deposited into Chiropractic Care’s and Accident Recovery’s business bank accounts. For example, Amato reported $0 in taxable income and $0 in tax due on his 2014 income tax return. His taxable income for 2014 was, in fact, $561,258, and Amato admitted that the tax due and owing to the IRS for 2014 was $197,036. Amato admitted that he also evaded more than $300,000 in taxes for the tax years 2012, 2013, and 2015.
Amato, a U.S. citizen, admitted that in 2014, he had an account at UniCredit Bank in Russia. He admitted that he wired more than $1.5 million to Russian bank accounts, including the UniCredit Bank account, and that he knew that he was obligated to report any foreign bank account with an aggregate value of more than $10,000. Amato admitted that he nonetheless failed to file a report of foreign account, commonly known as an FBAR, for the year 2014. Amato also admitted that the funds he failed to report were the product of a fraudulent scheme in which Amato overbilled at least six insurance companies by more than $1 million by billing for services that were never rendered. Amato previously pleaded guilty in Ocean County Superior Court to first degree financial facilitation of criminal activity for money laundering of funds from the overbilling scheme.
In addition to the prison term, Judge Shipp sentenced Amato to three years of supervised release.
Under the terms of his plea agreement, Amato will file amended tax returns and make full restitution for the years 2012 through 2015 and file accurate FBARs for the years 2012 through 2017.
U.S. Attorney Carpenito credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s sentencing. U.S. Attorney Carpenito thanked the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Trenton.
Defense counsel: Thomas R. Ashley Esq., Newark
President and Chief Executive Officer of Now-Defunct Code Green Solar LLC Admits Wire Fraud SchemeRead the Press Release
CAMDEN, N.J. – A former Camden County, New Jersey, man today admitted perpetrating a long-running scheme to defraud the U.S. Treasury Department of millions of dollars by falsely claiming federal rebates for solar panels his company never installed, U.S. Attorney Craig Carpenito announced.
Charles E. Kartsaklis, 41, formerly of Erial, New Jersey, and now living in Davenport, Florida, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of wire fraud. Kartsaklis was released on bail.
According to documents filed in this case and statements made in court:
Since 2009, Kartsaklis has been the president and chief executive officer of Code Green Solar LLC, a now-defunct New Jersey solar panel installation business. In 2011 and 2012, Kartsaklis submitted proposals on behalf of Code Green Solar to install solar panels at several businesses in New Jersey, identified in court papers as Businesses 1 through 5. Businesses 1 through 5 rejected the proposals. Nevertheless, Kartsaklis applied for and obtained federally funded rebates totaling more than $3 million by falsely claiming that Code Green Solar had installed solar panels on each of those businesses. He manufactured fraudulent documents and electronically transmitted them to the U.S. Treasury Department, including:
• applications for funds pursuant to the American Recovery and Reinvestment Act;
• phony “Solar Power Purchase Agreements,” which purported to reflect agreements pertaining to the purchase of electricity between Code Green Solar and Businesses 1 through 5;
• fraudulent emails to purporting to be from a utility company verifying that the utility company had installed electric meters at Businesses 1 through 5; and
• annual reports for years 2013, 2014, 2015, 2016 and 2017, which falsely certified that the panels at Businesses 1 through 5 were still generating electricity, and which Code Green Solar was required to send for five years in order to keep the rebate money.The wire fraud charge to which Kartsaklis pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Kartsaklis has agreed to make full restitution in the amount of $3,081,938. Sentencing is scheduled for Aug. 23, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster, and special agents of the U.S. Treasury Department, Office of Inspector General, under the direction of Special Agent in Charge Anthony Scott, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: Justin R. White Esq. and Michael L. Testa Sr. Esq., Vineland, New Jersey
International “Malvertiser” Extradited from the Netherlands to Face Hacking Charges in New JerseyRead the Press Release
A Ukrainian national charged with participating in a years-long, international scheme to infect computers with malware through online advertisements – so-called “malvertising” – will appear in Newark, New Jersey federal court today after being extradited from the Netherlands, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Craig Carpenito for the District of New Jersey announced.
Oleksii Petrovich Ivanov, 31, is charged by indictment with one count of conspiracy to commit wire fraud, four counts of wire fraud, and one count of computer fraud. The indictment was returned on Dec. 3, 2018, and unsealed upon his arrival in the United States on May 2, 2019. Ivanov is scheduled to appear today before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.
“Cyber criminals who harm victims in the United States and around the world cannot rely on fake identities and international borders to evade justice,” said Assistant Attorney General Benczkowski. “This case and today’s extradition demonstrate that the United States and its international partners will find cyber fugitives and bring them to face justice in the United States, no matter where they commit their crimes.”
“This defendant engaged in an extraordinary and far-reaching scheme to infect and hack computers throughout the United States and the world,” said U.S. Attorney Carpenito. “This ‘malvertising’ scheme is especially dangerous because it uses online ads to target millions of unsuspecting Internet users engaged in activities as routine as booking their next vacation.”
Ivanov was arrested on Oct. 19, 2018, following an international investigation led by the U.S. Secret Service and in coordination with Dutch law enforcement. He had been detained by the Dutch authorities pending the resolution of the extradition proceedings.
According to the indictment, unsealed in Newark federal court on May 2, 2019, and other court filings, between around October 2013 through May 2018, Ivanov conspired to defraud millions of internet users around the world by launching malicious online advertising campaigns that appeared legitimate, but attempted to direct the internet browsers of victim computers towards malicious computer programs (“malware”), unwanted advertisements, and other computers that could install malware. As a result of the scheme, Ivanov and others caused unsuspecting internet users to view or access malicious advertisements on more than one hundred million occasions.
Online advertising companies work with companies and individuals to publish their online advertisements on the internet. These companies place advertisements on third-party websites, such as shopping, news, entertainment, or sports websites. These advertisements include web banners, frame ads, and other graphical advertisements and are delivered through websites that are accessed by computer users.
To carry out the scheme, Ivanov and co-conspirators are alleged to have used fake online personas and fake companies to pose as legitimate advertisers seeking to purchase online advertisements. According to the indictment, Ivanov and his co-conspirators told the advertising companies they were distributing ads for real products and services, and even created false banners and websites showing purported advertisements. But, in reality, the advertisements they purchased were used to push malware out to the computers of victims who viewed or clicked on the advertisements.
For instance, in June and July 2014, the defendant allegedly posed as “Dmitrij Zaleskis,” CEO of a fake United Kingdom company called “Veldex Limited” to submit a series of malicious advertisements to a U.S.-based internet advertising company for distribution, including two campaigns submitted on July 15, 2014 that were viewed or accessed approximately 17,328,129 times in a matter of days. The internet advertising company repeatedly told Ivanov that his advertisements were being flagged as malware threats, but Ivanov denied any wrongdoing and persuaded the company to continue running his malicious advertisements for months.
After online advertisers and advertising server platforms flagged many of the co-conspirators’ advertisements as malicious, Ivanov and others are alleged to have lied and denied that their advertisements were malicious. When their advertisements were banned as malicious, they switched to new online advertising companies and used new fake identities to buy more advertisements.
Ivanov and co-conspirators also allegedly used false identities to register internet domains that hosted malicious advertisements, and launch purported advertising campaigns. Ivanov and others also allegedly attempted to enrich themselves by offering to sell access to networks of infected devices or “botnets. Ivanov is alleged to have successfully infected or aided and abetted the infection of computers with malware that he controlled, including botnet malware that infected more than one hundred devices in the District of New Jersey.
The investigation was conducted by the U.S. Secret Service Criminal Investigations, under the direction of Director Director James M. Murray, and the Newark Field Office under the direction of Special Agent in Charge Mark McKevitt. Substantial support was also provided by the Secret Service’s Attaché Office in The Hague and the Justice Department’s Office of International Affairs in coordinating the extradition of Ivanov. The Department thanks the public prosecutors of the Dutch National Public Prosecution Service, the National High Tech Crime Unit of the Dutch National Police, and the National Crime Agency (UK) for their tremendous assistance with this case.
Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), Chief Justin S. Herring of the U.S. Attorney’s Office Cybercrimes Unit and Assistant U.S. Attorneys Melissa Wangenheim and Dara Govan of the District of New Jersey are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
International ‘Malvertiser’ Extradited from Netherlands to Face Hacking Charges in New JerseyRead the Press Release
NEWARK, N.J. – A Ukrainian national charged with participating in a years-long, international scheme to infect computers with malware through online advertisements – so-called “malvertising” – will appear in Newark federal court today after being extradited from the Netherlands, U.S. Attorney Craig Carpenito for the District of New Jersey and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced.
Oleksii Petrovich Ivanov, 31, is charged by indictment with one count of conspiracy to commit wire fraud, four counts of wire fraud, and one count of computer fraud. The indictment was returned on Dec. 3, 2018, and unsealed upon his arrival in the United States on May 2, 2019. Ivanov appeared today before U.S. Magistrate Judge U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.
“This defendant engaged in an extraordinary and far-reaching scheme to infect and hack computers throughout the United States and the world,” U.S. Attorney Carpenito said. “This ‘malvertising’ scheme is especially dangerous because it uses online ads to target millions of unsuspecting Internet users engaged in activities as routine as booking their next vacation.”
“Cyber criminals who harm victims in the United States and around the world cannot rely on fake identities and international borders to evade justice,” said Assistant Attorney General Benczkowski. “This case and today's extradition demonstrates that, through international cooperation, we are able to bring cyber thieves to justice in the United States, wherever they may commit their crimes.”
Ivanov was arrested Oct. 19, 2018, following an international investigation led by the U.S. Secret Service in coordination with Dutch law enforcement. He had been detained by Dutch authorities pending the resolution of the extradition proceedings.
According to documents filed in this case and statements made in court:
From October 2013 through May 2018, Ivanov conspired to defraud millions of internet users around the world by launching malicious online advertising campaigns that appeared legitimate, but attempted to direct victims’ browsers to malicious computer programs (malware), unwanted advertisements, and other computers that could install malware. Ivanov and others caused unsuspecting users to view or access malicious advertisements on more than 100 million occasions.
Ivanov and his conspirators used fake online personas and fake companies to pose as legitimate advertisers seeking to purchase online advertisements. They told the advertising companies they were distributing ads for real products and services, and even created false banners and websites showing purported advertisements. The advertisements they purchased were used instead to push malware out victims.
For example, in June and July 2014, Ivanov posed as “Dmitrij Zaleskis,” CEO of a fake United Kingdom company called “Veldex Limited,” to submit a series of malicious advertisements to a United States-based internet advertising company for distribution, including two campaigns submitted on July 15, 2014, that were viewed or accessed 17,328,129 times in a matter of days. The internet advertising company repeatedly told Ivanov that his advertisements were being flagged as malware threats, but Ivanov denied any wrongdoing and persuaded the company to continue running his malicious advertisements for months.
After online advertisers and advertising server platforms flagged many of the conspirators’ advertisements as malicious, Ivanov and others lied and denied that their advertisements were malicious. When their advertisements were banned as malicious, they switched to new online advertising companies and used new fake identities to buy more advertisements.
Ivanov and his conspirators also used false identities to register internet domains that hosted malicious advertisements, and launch purported advertising campaigns. Ivanov and others also attempted to enrich themselves by offering to sell access to networks of infected devices or “botnets.” Ivanov successfully infected or aided and abetted the infection of computers with malware that he controlled, including botnet malware that infected more than 100 devices in New Jersey.
U.S. Attorney Carpenito and Assistant Attorney General Benczkowski credited special agents of the U.S. Secret Service, Criminal Investigations, under the direction of Director James M. Murray, and the Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, for the investigation leading to the indictment. Substantial support was also provide by the Secret Service’s Attaché Office in The Hague and the Justice Department’s Office of International Affairs in coordinating the extradition of Ivanov. The Department also thanks the public prosecutors of the Dutch Ministry of Security and Justice, the National High Tech Crime Unit of the Dutch National Police, and the National Crime Agency (UK) for their assistance with this case.
The wire fraud conspiracy and substantive wire fraud counts with which Ivanov is charged carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or victim loss from the offense. Ivanov is also charged with a computer fraud count that carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense.
The government is represented by Justin S. Herring, Chief of the U.S. Attorney’s Office Cybercrimes Unit, and Assistant U.S. Attorneys Melissa Wangenheim and Dara Govan, District of New Jersey, and Aarash Haghighat, Trial Attorney with the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
The charges and allegations contained in the indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
Former U.S. Army Employee at Picatinny Arsenal Sentenced to Five Years in Prison for Receiving Bribes and Directing KickbacksRead the Press Release
NEWARK, N.J. – A Pennsylvania man was sentenced today to 60 months in prison for using his position as an employee of the U.S. Army Contracting Command New Jersey (ACC-NJ) in connection with his role in two conspiracies in construction projects at Picatinny Arsenal (PICA) and Joint Base McGuire-Dix Lakehurst (Ft. Dix), U.S. Attorney Craig Carpenito announced.
Kevin Leondi, 58, of Stroudsberg, Pennsylvania, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Counts One and Two of a superseding indictment charging him with conspiring to defraud the United States by soliciting and accepting bribes, and conspiring to steer kickbacks from one conspirator to another. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Leondi represented the Army in renovation projects at PICA and Ft. Dix. A company referred to in the indictment as “Construction Company No. 1” served as a Job Order Contractor, also known as a “prime contractor,” for construction projects at PICA and Fort Dix. James Conway was employed by Construction Company No. 1 as a regional project manager of large-scale projects at PICA and Ft. Dix. George Grassie ran a construction, excavating and landscaping business in Pennsylvania that did subcontracting work at the bases.
From December 2010 through August 2015, Leondi solicited and accepted more than $150,000 in bribes from Grassie and others in return for task orders and other favorable assistance at the bases, and for not denying them future work. Leondi and the conspirators would disguise the bribes in the form of facially legitimate transactions, with Leondi buying vehicles and equipment from the conspirators at cut-rate prices or selling them equipment at inflated prices. In another instance, Leondi had Grassie absorb the costs that another contractor incurred in renovating property that Leondi owned in East Stroudsburg, Pennsylvania.
Leondi also admitted that he conspired to steer at least $48,000 in corporate kickbacks from Grassie to Conway to improperly obtain and reward Conway for his giving subcontracts and other favorable assistance to Grassie relating to Conway’s employer’s contracts with the federal government at PICA and Ft. Dix. The kickbacks included cash payments to help Conway pay his mortgage as well as free construction work at Conway’s home in Pennsylvania.
Grassie pleaded guilty in February 2017 to one count of conspiracy and one count of providing unlawful kickbacks for his role in the bribery and kickback conspiracies. Conway pleaded guilty to accepting unlawful kickbacks and a wire fraud charge involving other fraudulent conduct in August 2016. Both defendants are awaiting sentencing.
In addition to the prison term, Judge Wigenton sentenced Leondi to three years of supervised release and fined him $25,000.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Leslie Faye Schwartz and Senior Trial Counsel Mark J. McCarren, of the U.S. Attorney’s Office’s Special Prosecutions Division.
Atlantic City Man, Leader of Drug Trafficking Organization, Sentenced to 22 Years in PrisonRead the Press Release
CAMDEN, N.J. – An Atlantic City man was sentenced today to 264 months in prison for his role in a drug trafficking and money laundering in the Atlantic County area, U.S. Attorney Craig Carpenito announced.
Toye Tutis, 46, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to Count One of a second superseding indictment, charging him with conspiracy to distribute and possess with intent to distribute cocaine, crack cocaine and heroin, and Count 13 charging him with conspiring with his long-time paramour, Jazmin Vega, 45, to launder his drug trafficking proceeds. Vega also pleaded guilty to the conspiracy to launder Tutis’ drug proceeds in Count 13 and is scheduled to be sentenced June 14, 2019.
“Defendant Tutis laundered more than just clothing at his Atlantic City laundromat – he also laundered the proceeds of his significant heroin and cocaine drug trafficking ring,” U.S. Attorney Carpenito said. “The sentence handed down today punctuates the end of both his drug trafficking and his money laundering activities, and is yet another example of our efforts to clean up the streets of Atlantic City and the towns surrounding it.”
“This defendant littered the streets of Atlantic City and surrounding areas with dangerous drugs and then washed the money through his laundromat, various businesses and multiple real estate transactions,” FBI Newark Special Agent-in-Charge Gregory W. Ehrie said. “The magnitude of his crimes may never be fully known but his actions fed a deadly drug epidemic that claims countless lives. The FBI is committed to working with our local, state and federal law enforcement partners to drive drug traffickers like Toye Tutis out of business and rid the community of these threats to public health and public safety.”
“Mr. Tutis’ actions show his main concern was making a profit off the misery of others,” said Susan A. Gibson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division. “His term in federal prison will allow him to experience some misery of his own. DEA and our law enforcement partners will continue to pursue those who choose to poison our community.”
According to documents filed in this case and statements made in court:
From 2010 through December 2014, Tutis operated a large-scale drug trafficking ring out of the Ta’Ja Laundromat in Atlantic City, purchasing and distributing between 150 to 450 kilograms of cocaine and approximately 26 kilograms of heroin, and laundering between $1.5 million and $3 million in drug proceeds. Tutis was aided by Vega, who admitted to laundering his drug trafficking proceeds in several ways, including through the couple’s various businesses – Ta’Ja Construction I LLC; Ta’Ja Real Estate Investors LLC; and Integrity Heating and Cooling LLC; and by purchasing more than 30 properties with tainted funds. As part of their plea agreements, Vega and Tutis have to forfeit 20 properties, cash and other assets.
In addition to the prison term, Judge Simandle sentenced Tutis to five years of supervised release.
Nine other people have pleaded guilty to participating in the drug trafficking conspiracy or other related drug trafficking in the Atlantic County area, including:
- Kabaka Atiba, 49, of Atlantic City, sentenced on Oct. 16, 2017, to 120 months in prison and five years of supervised release;
- Tozine Tiller, 45, of Absecon, sentenced on Jan. 3, 2018, to 235 months in prison and five years of supervised release;
- TeJohn Cooper, 45, of Galloway Township, sentenced on Sept. 12, 2017, to 96 months in prison and one year of supervised release;
- Ronald Douglas Byrd, 53, of Pleasantville, sentenced on July 11, 2017, to 96 months in prison and five years of supervised release;
- Kareem Taylor, 43, of Atlantic City, sentencing scheduled for June 3, 2019;
- Talib Tiller, 46, of Mays Landing, sentenced on Sept. 5, 2017, to 57 months in prison and three years of supervised release;
- John Wellman, 43, of Somers Point, sentenced on July 13, 2017, to 130 months in prison and five years of supervised release;
- Phillip Horton, 53, of Los Angeles, California, sentencing scheduled for June 3, 2019;
- and Francisco Alberto Rascon-Muracami, 25, of Obregon, Mexico, sentenced on Oct. 30, 2015, to 70 months in prison and five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; the DEA’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police; the Pennsylvania State Police, the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorneys Diana Carrig of the Camden Division, Jonathan M. Peck of the Newark Division and Peter W. Gaeta of the Asset Recovery and Money Laundering Unit.
Union County, New Jersey, Man Charged with Armed Robbery of Business OwnerRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was arrested and charged today for allegedly robbing a New Jersey business owner at gunpoint in February 2019, U.S. Attorney Craig Carpenito announced.
Raymond Scura, 29, of Kenilworth, New Jersey, is charged by complaint with one count of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. He is scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court. Scura previously was arrested and charged in March 2019 with wire fraud and aggravated identity theft.
According to the complaints and other documents filed in this case:
In February 2019, Scura was a customer of an internet-based business owned and operated by the victim. Scura wrote at least one fraudulent check to the victim to pay for the services of the business. When the victim insisted on cash payment, Scura drove with the victim to a bank, where Scura brandished a firearm, threatened to kill the victim, and demanded that the victim deposit a fraudulent check into the victim’s bank account and withdraw the same amount of money as set forth in the check. Scura led the victim to an ATM, where he directed the victim to insert the victim’s bank card into the ATM, asked for the victim’s PIN, input the PIN himself, and deposited the check. Scura then led the victim to a teller, where the victim withdrew the money as directed. Scura and the victim left the bank, where Scura demanded, at gunpoint, that the victim hand him the money withdrawn at the bank.
Scura was charged by complaint in March 2019 with allegedly defrauding various individuals and entities by obtaining and attempting to obtain merchandise, services, and cash. In some circumstances, Scura obtained goods and services, including a country club membership, limousine services, luxury hotel expenses, wine, and a Rolex watch, by charging such items to credit card accounts that were not his own and which he did not have authorization to access or use. Scura also wrote and presented personal checks both in his own name and in the name of victims from accounts Scura knew were either closed or held insufficient funds to cover the checks.
The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be served consecutively to any other sentence imposed. The Hobbs Act robbery charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud affecting a financial institution charge carries a statutory maximum of 30 years in prison and a $1 million fine, and the aggravated identity theft charge carries a mandatory minimum sentence of two years in prison, which must be served consecutively to any other sentence imposed.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and members of the Belleville Police Department, under the direction of Chief of Police Mark Minichini, with the investigation leading to the charges against Scura. He also thanked the Summit Police Department, the Union County Prosecutor’s Office, the Burlington County Prosecutor’s Office, and the Evesham Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations against Scura are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel: Anthony Iacullo Esq., Clifton, New Jersey
Pennsylvania Man Sentenced to Three Years in Prison for Defrauding Lending Company of More Than $400,000Read the Press Release
CAMDEN, N.J. – The president of a staffing company was sentenced today to 36 months in prison for defrauding a commercial finance lending company out of more than $400,000, U.S. Attorney Craig Carpenito announced.
Jeremy Hare, 48, of Philadelphia, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with wire fraud. Judge Bumb imposed the sentence today in Camden federal court.According to documents filed in the case and statements made in court:
Hare was the president and managing member of Apollo Search Partners LLC, a staffing agency with an office in New Jersey. On June 16, 2017, Hare had Apollo enter into a financing agreement with a commercial finance lender that offered funding to companies so that they could meet payroll and other obligations. The lender agreed to provide funding to Apollo. In order to get funding, Apollo would provide the Victim Company invoices and supporting time cards for each person Apollo staffed with a client.
Between June 20, 2017 and Aug. 15, 2017, Hare submitted more than 15 invoices to the lender even though Apollo never staffed most of the individuals listed on the invoices and the time sheets submitted with the invoices included hours that were never worked. Based on those invoices, the lender provided more than $400,000 to Apollo between June and August 2017. To date, the lending company has not received reimbursement for that funding.
In addition to the prison term, Judge Bumb sentenced Hare to three years of supervised release and ordered him to pay $411,838 in restitution.
U.S. Attorney Carpenito credited and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Andrew Kogan of the U.S. Attorney’s Office Cybercrime Prevention and Enforcement Unit and Sarah Devlin of the Asset Recovery and Money Laundering Unit in Newark.
Defense counsel: Ronald L. Greenblatt Esq., Philadelphia
Union County, New Jersey, Man Admits Bribing Mail Carriers to Steal Credit CardsRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a scheme to bribe mail carriers to steal credit cards from the mail, U.S. Attorney Craig Carpenito announced.
Olagoke Araromi, 22, of Union, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to a three-count information charging him with bribery of U.S. Postal Service mail carriers, bank fraud and aggravated identity theft.
According to documents filed in the case and statements made in court:
Araromi and Moussa Dagno, 24, of Harrison, New Jersey, recruited at least a half dozen U.S. Postal Service (USPS) mail carriers and employees to steal credit cards from the mail in exchange for cash bribes, typically $100 per stolen card. Once Araromi had taken possession of the stolen credit cards and activated them, he and Dagno would use the cards to purchase high-end electronics and clothing at various retail stores throughout New Jersey. In February, 2018 law enforcement seized six laptops and a smartphone from the Harrison residence shared by Araromi and Dagno at that time, all of which had been purchased with the stolen credit cards.
Several of the USPS employees who accepted bribes from Araromi and Dagno have already pleaded guilty to bribery charges, including: former mail carriers Zenobia Gilmer, Ayesha Troztz and Kyanne Costley, who had delivery routes in Mt. Arlington, East Orange and Elizabeth, New Jersey; and Jennel Williams, who formerly worked as a clerk in the Newark Main Post Office. All four admitted to stealing credit cards from the mail and delivering them to Araromi or Dagno in exchange for payments, and all are awaiting sentencing. A fifth mail carrier from Jersey City, Jacquan Miller, has been charged by complaint for his role in the scheme. On April 8, 2019, Dagno pleaded guilty to the same charges to which Araromi pleaded guilty today, and is awaiting sentencing.
The bribery charge to which Araromi pleaded guilty carries a maximum potential penalty of 15 years in prison; the bank fraud charge carries a maximum penalty of 30 years in prison. The aggravated identity theft charge carries a mandatory sentence of two years in prison which must be served consecutively to any sentence Araromi receives on the bribery and bank fraud charges. The bank fraud charge carries a maximum potential fine of $1 million; the maximum potential fine for each of the bribery and the aggravated identity theft charge is $250,000. Sentencing is currently scheduled for Sept. 9, 2019.U.S. Attorney Carpenito credited special agents with the USPS Office of Inspector General, under the direction of Special Agent in Charge Matthew Modaffferi, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Jihee G. Suh of the U.S. Attorney’s Special Prosecutions Division in Newark.
The charges and allegations against Jacquan Miller are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense Counsel: Anthony J. Iacullo Esq. & Joshua Reinitz Esq., Nutley, New Jersey
Paterson, New Jersey, Man Found Guilty of Distributing HeroinRead the Press Release
NEWARK, N.J. – A federal jury today found a Paterson, New Jersey, man guilty of two counts of drug trafficking offenses, U.S. Attorney Craig Carpenito announced.
Reinaldo Rodriguez, 30, a/k/a “Memo,” and “Killa,” was convicted of conspiracy to distribute a kilogram or more of heroin and possession with the intent to distribute heroin following a four-day trial before U.S. District Judge Susan D. Wigenton in Newark federal court.
According to documents filed in this case and the evidence presented at trial:
From June 2015 through April 20, 2016, Rodriguez participated in a conspiracy to distribute heroin to street-level drug dealers in the Paterson area. The conspirators obtained their heroin from a supplier in Bronx, New York, where it was packaged and stamped “Goosebumps,” “Transformers,” “Wendy’s” and “New Jack City,” designating the source. Law enforcement officials conducted surveillance while Rodriguez delivered stamped “bricks” of heroin to a confidential source. Rodriguez was heard discussing drug trafficking on court-authorized wiretaps.
Rodriguez faces a mandatory minimum term of imprisonment of 10 years and a maximum of life in prison for the conspiracy count.
U.S. Attorney Carpenito credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson, and the Paterson Police Department, with the investigation leading to today’s conviction.
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 Senior Trial Counsel Jamie L. Hoxie of the OCDETF/Narcotics Unit and Assistant U.S. Attorney Heather Suchorsky of the Organized Crime/Gangs Unit of the U.S. Attorney’s Office in Newark.
Leader of Newark Drug Trafficking Organization Charged with Continuing Criminal EnterpriseRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man has been indicted on an additional charge stemming from his role as the leader of a drug trafficking organization that dealt heroin and crack cocaine in and around Newark, U.S. Attorney Craig Carpenito announced today.
Keith Herd, 31, of Newark, is charged in a second superseding indictment, returned April 24, 2019, with one count of engaging in a continuing criminal enterprise. Herd was charged by indictment in August 2018 with two counts of distribution and possession with intent to distribute heroin. A superseding indictment in October 2018 added one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin. Herd and his co-defendants will be arraigned on the new indictment at a date to be determined.
According to documents filed in this case and statements made in court:
Herd was the main heroin supplier in and around Hayes Street and 14th Avenue in the area of the New Community Corporation community development (NCC) and the leader of the Brick City Brim set of the Bloods street gang within NCC. In addition to selling narcotics in and around NCC, Herd and members of the organization alerted each other to police and rival gang member or drug dealer presence within NCC, shared narcotics supplies, narcotics proceeds, customers, and raised money for each other following arrests.
If convicted, Herd faces mandatory term of life in prison.
Herd was originally charged by complaint along with 10 other individuals in March 2018. An additional 17 individuals were charged by complaint in April and August of 2018. Furad Loyal, 37, Tyrone Brown, 35, and Raheem Tarry, 33, all of Newark, are indicted with Herd on narcotics conspiracy, distribution, and possession charges for their respective roles in the NCC drug trafficking organization. Loyal also faces firearms possession charges.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to the charges. He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, New Jersey State Parole, and the U.S. Marshals for their assistance.
Herd and the NCC drug trafficking organization were part of the original 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 sole purpose of combatting violent crime in and around the 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’s New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Camden County, New Jersey, Man, Admits Attempting to Distribute and Attempting to Possess with Intent to Distribute Crystal MethamphetamineRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey man today admitted his role in a scheme to possess and distribute crystal methamphetamine, U.S. Attorney Craig Carpenito announced.
Mauricio Melendrez, 46, of Blackwood, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him one count of attempt to distribute and possess with intent to distribute five grams or more of crystal methamphetamine.
According to documents filed in this case and statements made in court:
In May 2014, Melendrez arranged for the delivery of a package containing approximately two pounds of crystal methamphetamine stuffed inside a 4-slice toaster oven. Before the package could be delivered to its intended address on June 3, 2014, law enforcement seized it. Melendrez later discussed this package of crystal methamphetamine with another individual and stated it had been sent to him by a “cartel,” and that Melendrez still owed the cartel money for the crystal methamphetamine.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Susan A. Gibson in Newark, with the investigation leading to today’s guilty plea.
The count to which Melendrez pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and a fine of up to $5 million, or twice the gross gain or loss resulting from the offense. Sentencing is scheduled for Aug. 1, 2019.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Passaic County, New Jersey, Man Admits Role in Business Email SchemeRead the Press Release
TRENTON, N.J. – A Passaic County, New Jersey, man today admitted opening bank accounts and recruiting others to open bank accounts as a conduit for stolen funds in connection with a wide-ranging business email compromise scheme, U.S. Attorney for the District of New Jersey Craig Carpenito announced.
Lawrence Espaillat, 41, of Clifton, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this and other cases and statements made in court:
From March 2017 to June 2018, Espaillat, conspirators Corry Pringley and Amanda Suazo, and others participated in the scheme to steal more than $1 million dollars from individual and corporate victims. The scheme involved recruiting “mules” – including Espaillat, before he rose to the level of recruiter – Suazo and Pringley, to provide their personal identifying information. This information was used to incorporate sham businesses with the N.J. Department of the Treasury under the mules’ names. The mules eventually opened bank accounts in the names of the sham corporations.
A related cyberattack aspect of the scheme involved creating email addresses mimicking – but differing slightly from – legitimate email addresses of supervisory employees at various companies, vendors that did business with those victim companies, mortgage lenders that dealt with individuals in connection with real estate purchases, and brokerage firms and accountants who provided financial services. The conspirators used these deceptive email addresses to send emails that appeared to be requests for payment of legitimate invoices or debts owed by the victims. The victims were deceived into transferring funds by wire into the bogus bank accounts opened by the money mules and controlled by the conspirators. After the victims complied with the fraudulent wiring instructions, Espaillat, Suazo and Pringley, under the direction of other conspirators, quickly debited thousands of dollars from the accounts through in-person and ATM withdrawals and debit card purchases. They also transferred the funds to foreign bank accounts they controlled. Espaillat, Suazo and Pringley kept a fraction of the proceeds as payment.
For example, over a three-day period in April 2018, a corporate victim in Texas deposited $3.8 million dollars in a bank account opened by Pringley and controlled by Espaillat, Pringley and Suazo, who withdrew or transferred more than $1 million from the account.
The conspiracy charge to which Espaillat pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss. Sentencing is scheduled for July 30, 2019.
Suazo and Pringley pleaded guilty on Jan. 17, 2019, and Feb. 14, 2019, respectively, to separate informations charging each with one count of conspiracy to commit wire fraud. They are awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Eric A. Boden of the U.S. Attorney’s Trenton office.
Former Deputy Chief of Staff in N.J. Governor’s Office Sentenced to 13 Months in PrisonRead the Press Release
NEWARK, N.J. – A member of then-Gov. Christopher J. Christie’s senior staff was sentenced today to 13 months in prison for her role in a scheme to punish the mayor of Fort Lee, New Jersey, by misusing Port Authority resources to cause traffic problems in the borough, Attorney for the United States Mark Coyne announced.
Bridget Anne Kelly, 46, former deputy chief of staff to Gov. Christie, and co-defendant William E. Baroni, 47, formerly the deputy executive director of the Port Authority, were each convicted on Nov. 4, 2016, following a six-week trial before U.S. District Judge Susan D. Wigenton on all seven counts with which they had been charged. Judge Wigenton imposed the sentence today in Newark federal court.
Kelly and Baroni were each convicted of conspiring to misuse, and actually misusing, property of an organization receiving federal benefits; conspiring to commit, and actually committing, wire fraud; conspiring to injure and oppress certain individuals’ civil rights, and acting under color of law to deprive certain individuals of their civil rights. Kelly was originally sentenced to 18 months in prison and Baroni was originally sentenced to 24 months in prison.
The defendants both appealed their convictions. In a unanimous, precedential opinion, the U.S. Court of Appeals for the Third Circuit on Nov. 27, 2018, affirmed five of seven convictions for each defendant, upholding all but the civil rights counts of conviction and remanding the case to Judge Wigenton for resentencing. Baroni was resentenced Feb. 26, 2019, to 18 months in prison.
All of the charges relate to the defendants’ scheme to manufacture traffic problems in Fort Lee by, without public warning, reducing from three to one the number of local access lanes, located in Fort Lee, to the upper level of the George Washington Bridge, and the toll booths servicing those lanes. This was done to punish Mayor Mark Sokolich for not endorsing Gov. Christie’s re-election bid.
A third conspirator, David Wildstein, the former director of Interstate Capital Projects at the Port Authority, pleaded guilty May 1, 2015, to a separate information charging him with two counts of conspiracy for his role in the scheme. Wildstein pleaded guilty to conspiring to misuse the property of an organization receiving federal benefits and conspiring to injure and oppress certain individuals’ civil rights in connection with his role in causing traffic problems to punish Mayor Sokolich. Wildstein was sentenced July 12, 2017, to three years of probation.
According to documents filed in this case, statements made in court and the evidence at trial:
In August 2013, after Kelly confirmed that Mayor Sokolich would not be endorsing Gov. Christie for re-election in November 2013, Baroni, Kelly, and Wildstein decided to punish the mayor by deliberately causing significant traffic problems in Fort Lee under the false pretense of a traffic study.
From the morning of Sept. 9, 2013, to Sept. 13, 2013, they caused the local access lanes to be reduced so that only one toll booth, instead of the usual three, was accessible to the approach to the bridge for local traffic traveling through Fort Lee. To maximize the congestion and the punitive impact on Mayor Sokolich, Baroni, Kelly and Wildstein caused these lane and toll booth reductions to start on the first day of the school year without any advance notice to Mayor Sokolich, the Fort Lee chief of police or borough residents. The lane and toll booth reductions resulted in significant traffic in Fort Lee, for motorists intending to access the George Washington Bridge from local lanes and for residents, whose streets were choked with traffic.
The conspirators agreed to disregard any inquiries from Mayor Sokolich and other Fort Lee officials about the lane and toll booth reductions. They purposely ignored communications from Mayor Sokolich, including his pleas for help, requests for information, and repeated warnings about the increased risks to public safety. On Sept. 9, 2013, after Baroni received an email that Mayor Sokolich had called about an urgent matter of public safety, Wildstein sent an email to Baroni reiterating that Baroni should maintain “radio silence” toward the mayor. On Sept. 10, 2013, Kelly sent Wildstein a text message stating: “I feel badly about the kids … I guess,” to which Wildstein replied, “They are the children of Buono voters …” a reference to Christie’s opponent in the gubernatorial election, state Sen. Barbara Buono (D-Middlesex).
When Kelly was made aware of Mayor Sokolich’s communication regarding an urgent matter of public safety, she thanked Wildstein for confirming that Baroni had maintained “[r]adio silence” toward Mayor Sokolich. On Sept. 12, 2013, Baroni instructed a Port Authority employee through coded language that the employee should not contact Mayor Sokolich.
The three conspirators concocted and promoted a sham story that the lane reductions were for a traffic study. They created and advanced this cover story so they could use Port Authority property, including the time and services of unwitting Port Authority personnel and other resources, to implement the lane and toll booth reductions and conceal their true punitive purpose.
On Nov. 25, 2013, with Kelly’s and Wildstein’s knowledge, Baroni provided false and misleading testimony about the lane and toll booth reductions to the N.J. Assembly Transportation, Public Works, and Independent Authorities Committee.
In addition to the prison term, Judge Wigenton sentenced Kelly to one year of supervised release, fined her $2,800 and ordered her to pay restitution of $14,314.
Attorney for the United States Coyne credited criminal investigators of the Port Authority, Office of Inspector General, under the direction of Inspector General Michael Nestor; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; and criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Lee M. Cortes Jr., Vikas Khanna, David W. Feder and Senior Litigation Counsel J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division.
Two Trenton Police Officers Charged with Civil Rights Violations, Obstruction of JusticeRead the Press Release
TRENTON, N.J. – Two Trenton police officers have been charged with civil rights and obstruction of justice charges for allegedly assaulting a man they were arresting, U.S. Attorney Craig Carpenito announced today.
One of the officers, who has since left the Trenton Police Department, is charged with additional civil rights and obstruction counts for allegedly assaulting a second defendant while in a holding cell at Trenton Police Headquarters.
Trenton Police Officer Drew Inman, 25, of Hamilton, New Jersey, and former Trenton Police Officer Anthony Villanueva, 25, of Ewing, New Jersey, are charged in a six-count indictment that was returned by a federal grand jury on April 18, 2019, and unsealed today. Both defendants are charged with one count aiding and abetting one another to deprive a man of his civil rights. Villanueva is charged with two counts of obstruction, and Inman with one count of obstruction, in connection with that incident. Villanueva is also charged with depriving a second man of his civil rights in a separate incident, and with obstruction related to that second incident.
“Police work is difficult and dangerous, but officers need to respect the civil rights of the people they are policing,” U.S. Attorney Carpenito said. “They cannot resort to excessive force in performing their duties. Incidents like these erode the public’s confidence in law enforcement, and make policing harder for everyone whose job it is to keep our communities safe.”
“Civil Rights violations are of great concern, particularly when the allegations involve a member of law enforcement,” FBI Newark Special Agent in Charge Gregory W. Ehrie said. “The public has an absolute right to trust that law enforcement will protect those they serve and keep them safe. When that trust is violated, it makes it more difficult for our fellow police officers and federal agents to maintain the community's confidence.”
According to documents filed in this case and statements made in court:
On April 9, 2017, a Trenton man involved in a routine traffic stop fled in his vehicle and then on foot and was pursued by Trenton police officers. The man was eventually surrounded by Trenton police officers and complied when he was ordered to put his hands in the air. While the man was complying with further police commands, Villanueva approached the man and punched him in the face and Inman tackled the man to the ground. Inman and Villanueva then punched the man numerous times, while he cried out in pain, and told officers, “stop hitting me in my face,” and “you’ve got my hands.”
Inman and Villanueva returned to the police station to prepare reports in connection with the victim’s arrest. To justify their actions against the victim, Inman and Villanueva prepared and submitted false and fraudulent reports, in which they attempted to portray the victim as the aggressor and an ongoing threat.
On Nov. 28, 2017, Villanueva, who had been assigned to work in the holding cell area of Trenton Police Headquarters, sprayed Oleoresin Capsicum (commonly referred to a “pepper spray”) on a prisoner who was confined in a holding cell. Villanueva later completed an incident report that contained numerous false statements designed to conceal his unlawful conduct and improper treatment of the prisoner.
The violation of civil rights counts each carry a maximum penalty of 10 years in prison. The false records counts each carry a maximum penalty of 20 years in prison. The maximum fine for each of the charges is $250,000.
The charges and accusations contained in the indictment are merely accusations, and Inman and Villanueva are presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorneys Molly Lorber, Joseph Gribko and Ray Mateo of the U.S. Attorney=s Office Criminal Division in Trenton in the criminal case.
Owner of Defense Contracting Firm Admits Defrauding U.S. Department of Defense and Conspiring to Violate Arms Export Control ActRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man today admitted defrauding the U.S. Department of Defense (DoD) by providing military equipment parts that were not what he had contracted to provide and illegally accessing technical information because he was not a United States citizen, U.S. Attorney Craig Carpenito announced.
Oben Cabalceta, 53, of Atco, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of wire fraud and one count of conspiracy to violate the Arms Export Control Act.
According to documents filed in this case and statements made in court:
Cabalceta was the owner of two companies: Owen’s Fasteners Inc. (Owen’s) and United Manufacturer LLC (United), two manufacturing companies in West Berlin, New Jersey.
Cabalceta admitted that between August 2004 and March 2016, Owen’s and United obtained contracts with the DoD by falsely claiming that the military parts it contracted to provide would be the exact product provided by authorized manufacturers. The DoD contracts specified that the military parts were critical application items for military equipment, including aircraft. Contrary to the contract, Cabalceta either used his companies to contract with local manufactures to supply non-conforming parts or made the parts himself at a significantly reduced cost. The non-conforming parts were shipped from New Jersey to various DoD locations around the country. DoD paid Owen’s and United $1,890,939 for those parts.
Cabalceta also admitted that he was a native and citizen of the Republic of Costa Rica who overstayed his tourist visa in 2000 and was not lawfully in the United States. To further his fraud on the DoD, in August 2005 and November 2010, Cabalceta caused his brother-in-law, Roger Sobrado, to submit to the DoD a fraudulent application for access to export controlled drawings and technical data on behalf Owen’s. In 2015, Cabalceta caused an accomplice to submit to the DoD a fraudulent application for access to export controlled drawings and technical data on behalf Owen’s.
Cabalceta acknowledged that access to the controlled drawings and technical data was limited to citizens of the United States and those lawfully in the United States. He admitted that on July 28, 2011, and at various times between January 2013 and November 2015, while unlawfully in the United States, he accessed or downloaded drawings that were sensitive in nature that required special access.
The count of wire fraud to which Cabalceta pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of conspiracy to violate the Arms Control Export Act to which he pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for Aug. 2, 2019.
On Oct. 11, 2018, Sobrado pleaded guilty before Judge Hillman to a three-count information charging him with conspiracy to commit wire fraud, conspiracy to violate the Arms Export Control Act, and income tax evasion. Sobrado’s sentencing is pending.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the U.S. Attorney’s Office; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; special agents of IRS - Criminal Investigation, under the direction of Special Agent In Charge John R. Tafur; and special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge John F. Grasso for 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.
Three Camden Men Convicted of Drug Trafficking and Firearms ChargesRead the Press Release
CAMDEN, N.J. – Three Camden men have been convicted by a federal jury of conspiring to sell cocaine base (crack cocaine), furanyl fentanyl, and heroin, distributing and possessing with intent to distribute these drugs, being a convicted felon in possession of a handgun, and witness tampering, U.S. Attorney Craig Carpenito announced today.
John Gunther a/k/a “Critty,” 35, Taleaf Gunther a/k/a “Leafy” and “L,” 33, and William Roland a/k/a “Chill,” 37, were convicted April 18, 2019, after an 11-day trial before U.S. District Judge Renée Marie Bumb in Camden federal court. The jury deliberated for about a day-and-a-half before returning guilty verdicts on 10 counts.
According to documents filed in this case and the evidence at trial:
Brothers John and Taleaf Gunther worked together to lead a prolific drug trafficking organization that sold crack cocaine, heroin, and the synthetic opioid furanyl fentanyl around the 1700 block of Filmore Street in Camden, which was controlled by the organization. Roland assisted the Gunther brothers as a manager within the organization. Ten members of the drug ring were initially arrested in June 2017 following a long-term investigation by the FBI, which utilized multiple telephone wiretaps, surveillance, confidential informants, cooperating witnesses, more than 20 controlled drug purchases, a GPS vehicle tracker and four court-authorized search warrants, among other investigative techniques. The investigation ultimately led to the seizure of more than 300 grams of crack cocaine, quantities of furanyl fentanyl and heroin, a firearm, and drug paraphernalia. Shortly after the execution of search warrants in the case, investigators learned that Taleaf Gunther also attempted to bribe another member of the conspiracy to lie to police about a handgun recovered from a residence he used. An eleventh member of the organization was charged in 2018.
The defendants face a maximum penalty of life in prison, a fine of up to $10 million, and at least 10 years of supervised release. Each of the defendants have multiple prior felonies in state court and, therefore, face possible mandatory minimum sentences of 15 years in prison.
The eight other defendants – Mark Campbell a/k/a “D” and Diz,” 39, Daron Suiter, 24, Davon Leak, 20, George Williams, 44, Karim Johnson, a/k/a “Chicky,” 40, Latoya Whealton a/k/a “Toya,” 34, Rajai Gaines, a/k/a “Jigga,” and Malcolm McCoy, 28 – previously pleaded guilty. Gaines and Johnson were each sentenced to 10 years in prison, Leak to 74 months in prison and Suiter to five years in prison. Campbell, Whealton, McCoy and Williams are awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael 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; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the guilty verdicts.
He also thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Gloucester Township Police Department, the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alisa Shver of the U.S. Attorney’s Office Criminal Division in Camden.
Somerset County, New Jersey, Man Sentenced to 46 Months in Prison for International Arms TraffickingRead the Press Release
TRENTON, N.J. -- A Somerset County, New Jersey, man was sentenced today to 46 months in prison for illegally exporting from the United States a wide array of weapons, including assault rifles, U.S. Attorney Craig Carpenito announced.
Pedro Vergara, 55, of Branchburg, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of smuggling firearms from the United States. Judge Shipp imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court
From May 2017 through November 2017, Vergara purchased a number of firearms, including assault rifles, from various New Jersey-based firearms dealers, including:
- Six Century Arms, Model RAS47, 7.62 x 39 caliber rifles, each with defaced serial numbers;
- Two Romarm / Cugir, Model WASR-10, 7.62 x 39 caliber rifles, each with defaced serial numbers;
- Two Inter Ordnance Inc., Model Sporter, 7.62 x 39 caliber rifles, each with defaced serial numbers;
- One Beretta, Model PX4 Storm, 9mm caliber pistol with serial number PX299818;
- One Henry Repeating Arms, Model H001, .22 caliber rifle;
- One Smith & Wesson, Model 640, .357 caliber revolver;
- 2,000 rounds of 7.62 x 39 caliber Wolf ammunition;
- 100 rounds of .22 caliber Sellier & Bellot ammunition;
- 50 rounds of Winchester .17 HMR (Hornady Magnum Rimfire) caliber ammunition;
- 50 rounds of Blazer .357 caliber ammunition;
- 25 rounds of American Eagle .357 caliber ammunition;
- 550 rounds of American Eagle .22 caliber ammunition; and
- 500 rounds of CCI .22 caliber ammunition.
Vergara planned to smuggle the firearms, as well as thousands of rounds of ammunition, to a location in Paraguay and illicitly resell the weapons on the black market for profit. Vergara took steps to conceal the firearms in shipping boxes, and transported the boxes from New Jersey to a shipping company located in New York. He also concealed ownership interest in the firearms by obliterating or defacing the serial numbers from at least 10 of the weapons.
In addition to the prison term, Judge Shipp also sentenced Vergara to two years of supervised release and fined him $10,000.
U.S. Attorney Carpenito credited special agents of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit.
Ocean County Attorney Convicted of Failing to Pay over Payroll Taxes and Making False Statements on Loan ApplicationRead the Press Release
TRENTON, N.J. – A federal jury today convicted George Gilmore, a partner at an Ocean County law firm, of two counts of failing to pay over to the IRS payroll taxes withheld from the firm's employees and one count of making false statements on a bank loan application submitted to Ocean First Bank N.A., First Assistant U.S. Attorney Rachael A. Honig announced.
Gilmore, 69, of Toms River, New Jersey, was acquitted of two counts of filing false tax returns for calendar years 2013 and 2014; the jury could not reach a unanimous verdict on one count of income tax evasion for calendar years 2013, 2014, and 2015. The verdicts were returned following a trial that began April 1, 2019, before U.S. District Judge Anne E. Thompson in Trenton federal court.
According to documents filed in this case and the evidence at trial:
Gilmore worked as an equity partner and shareholder at Gilmore & Monahan P.A., a law firm in Toms River, where he exercised primary control over the firm’s financial affairs. Because he exercised significant control over the law firm’s financial affairs, Gilmore was responsible for withholding payroll taxes from the gross salary and wages of the law firm’s employees to cover individual income, Social Security and Medicare tax obligations. For the tax quarters ending March 31, 2016, and June 30, 2016, the law firm withheld tax payments from its employees’ checks, but Gilmore failed to pay over in full the payroll taxes due to the IRS.
Gilmore also submitted a loan application to Ocean First Bank containing false statements. On Nov. 21, 2014, Gilmore reviewed, signed, and submitted to Ocean First Bank a Uniform Residential Loan Application (URLA) to obtain refinancing of a mortgage loan for $1.5 million with a “cash out” provision that provided Gilmore would obtain cash from the loan. On Jan. 22, 2015, Gilmore submitted another URLA updating the initial application. Gilmore failed to disclose his outstanding 2013 tax liabilities and personal loans that he had obtained from others on the URLAs. Gilmore received $572,000 from the cash out portion of the loan.
The two counts of failing to collect, account for, and pay over payroll taxes each carry a maximum penalty of five years in prison, and a $250,000 fine, or twice the gross gain or loss from the offense. The count of loan application fraud carries a maximum penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for July 23, 2019.
First Assistant U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, special agents with U.S. Attorney’s Office under the direction of Supervisory Special Agent Thomas Mahoney, and special agents of the FBI Red Bank Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, for the investigation leading to today’s verdicts.
The government is represented by Deputy U.S. Attorney Matthew J. Skahill; Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division; and Trial Attorney Thomas F. Koelbl of the U.S. Department of Justice - Tax Division.
Defense counsel: Kevin H. Marino Esq., Chatham, New Jersey
New York Woman Sentenced to 27 Months in Prison for Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York woman was sentenced to 27 months in prison for running an investment scheme that defrauded victims of hundreds of thousands of dollars, U.S. Attorney Craig Carpenito announced.
Alisa Adler, 58, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging her with two counts of wire fraud. Judge Cecchi imposed the sentence on April 16, 2019, in Newark federal court.
According to documents filed Information:
From January 2009 through August 2014, Adler took loans and investments from multiple victims and told them that their money would be used for certain specified investments through her company, ASG Real Estate Services Group Inc. To induce potential investors to give her money, Adler provided them with promotional materials and other documents, and told them that their money would be repaid within a certain amount of time. Adler did not use the majority of invested funds for the specific real estate investments she had presented to the victims. Instead, she used it to, among other things, repay prior investors and pay her own personal expenses.
In addition to the prison term, Judge Cecchi sentenced Adler to three years of supervised release and ordered her to pay restitution of $1,254,000.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the sentencing.
The government is represented by Executive Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Jacob Laufer Esq., New York
Italian Shipping Company to Pay $4 Million for Concealment of Pollution from VesselRead the Press Release
NEWARK, N.J. – A shipping company based in Italy today admitted discharging oily waste and other pollutants into the sea and then lying about it, U.S. Attorney Craig Carpenito and Assistant Attorney General Jeffrey Bossert Clark announced.
The company, d’Amico Shipping Italia S.p.A., pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging it with violating the Act to Prevent Pollution from Ships. Under terms of the plea agreement, d’Amico will pay a $4 million penalty and be placed on probation for four years. During probation, the company will be subject to the terms of an environmental compliance program that requires outside audits by an independent company and oversight by a court-appointed monitor
According to documents filed in this case and statements made in court:
The charge to which d’Amico pleaded guilty related to the deliberate concealment of vessel pollution from an oil tanker – the M/T Cielo di Milano – owned by that company, which visited ports in New Jersey multiple times, as well as ports in Maryland and Florida. The company admitted that the ship’s crew intentionally bypassed required pollution prevention equipment by discharging machinery space bilge water and oily waste from the vessel’s engine room through its sewage system into the sea. The company also admitted that crew members falsified the vessel’s Oil Record Book, a required log regularly inspected by the Coast Guard; made false statements to the Coast Guard during its inspection of the M/T Cielo di Milano in January 2015; and destroyed the vessel’s sounding log after the Coast Guard had boarded the vessel.
The company admitted the following in a detailed joint factual statement filed in Court:
- From August 2014 through January 2015, the M/T Cielo di Milano used two different methods to illegally dispose of oily waste, both of which involved discharging it from the vessel’s sewage holding tank into the sea.
- Some of the discharges took place within the exclusive economic zone, that is, within 200 nautical miles of the United States.
- Two different chief engineers were involved in the illegal discharges and the intentional falsification of the Oil Record Book to cover up those discharges.
- One chief engineer falsified the Oil Record Book to state that bilge water had been processed through the vessel’s pollution control equipment when, in fact, it had not.
- The crew routinely hid equipment used to conduct the discharges when the vessel entered port.
- During a Coast Guard inspection of the vessel in Bayonne, New Jersey, in January 2015, the chief engineer and second engineer lied to inspectors and told lower-level crew members to lie as well.
- After the Coast Guard departed the vessel, the chief engineer destroyed a notebook containing tank soundings by burning the pages in the vessel’s boiler flame in order to conceal the notebook from the Coast Guard.
The proposed $4 million penalty includes $1 million in organizational community service payments to restore the coastal environment of New Jersey. The plea agreement directs funds to environmental projects that will be selected by the National Fish and Wildlife Foundation to support the cleanup of marine pollution, preservation of aquatic life, and restoration of the shorelines around Newark Bay.
U.S. Attorney Carpenito and Assistant Attorney General Clark credited special agents of the U.S. Coast Guard Investigative Service, under the direction of Special Agent in Charge Richard D. Cox and Assistant Special Agent in Charge Eric J. O’Hearn, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary of the Health Care and Government Fraud Unit and Kelly Graves of the Organized Crime Unit in Newark.
Former Business Manager of Assisted Living Facility Admits Stealing Almost A Quarter Million Dollars from Elderly VictimRead the Press Release
NEWARK, N.J. – The business manager of a Morris County, New Jersey, assisted living facility today admitted that she exploited her position to steal approximately $237,000 from an elderly victim under her care, U.S. Attorney Craig Carpenito announced.
Marcella Drakeford, 46, of Jensen Beach, Florida, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to Count One of an indictment charging her with mail fraud.
According to documents filed in the case and statements made in court:
Beginning in December 2016, Drakeford allegedly agreed to help manage her victim’s financial affairs and pay for her care. She was granted limited access to the victim’s checking account. Unbeknownst to victim or the victim’s guardian, Drakeford already had fraudulently gained access to the victim’s credit card account and had several cards issued in her name. Drakeford then used the credit cards for personal expenditures, including luxury clothing, jewelry, and automobiles, dental work, rent, and utilities. Drakeford paid off the credit card bills with checks drawn on the victim’s checking account, all without permission.
The charge of mail fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss caused by the scheme. Sentencing is scheduled for July 22, 2019.
U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Services under the direction of Inspector in Charge James V. Buthorn, for the investigation leading to today’s guilty plea. He also thanked the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp, and the Morristown Police Department, under the direction of Chief Peter Demnitz, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office’s Cyber Unit.
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
Atlantic City, New Jersey, Man Admits Insurance Fraud, Drug DistributionRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man today admitted to staging a fake robbery of a Union County, New Jersey, pawnshop for the purpose of perpetrating an insurance fraud and to distributing illegal drugs, U.S. Attorney Craig Carpenito announced.
Salvatore “Sam” Piccolo, 67, of Atlantic City, a member of the Philadelphia La Cosa Nostra organized crime family, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with distribution 216 grams of methamphetamine and one count of wire fraud.
According to documents filed in this case and statements made in court:
Piccolo admitted that on April 19, 2014, he and an accomplice entered a pawnshop in Union County, purportedly to sell some silver items. Once inside the shop, the accomplice displayed a hand gun while Piccolo, wearing a nylon mask, chained the front doors closed to prevent anyone from entering. The owner was bound, as a pretense, while Piccolo and his accomplice looted the safe of what the owner told police was approximately $60,000 in cash, several pieces of jewelry, and a hand gun. The owner later submitted to his insurance company a fraudulent loss claim that was paid for approximately $174,000.
Piccolo also admitted making three sales of methamphetamine totaling 216 grams of the drug to an undercover FBI agent. Subsequent laboratory analysis determined the methamphetamine to be 99 percent pure.
The distribution of methamphetamine charge carries a minimum of 10 years in prison and a maximum penalty of life in prison; the wire fraud charge carries a maximum penalty of 10 years in prison. Both counts are also punishable by a fine of $250,000. Sentencing is scheduled for July 18, 2019.
U.S. Attorney Carpenito credited special agents of FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the Criminal Division, Camden Office, and Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney=s Office Organized Crime/Gangs Unit in Newark.
Operator of Tax Preparation Business Indicted on Tax Fraud and Tax EvasionRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was arrested today by federal agents on charges of tax fraud and tax evasion, U.S. Attorney Craig Carpenito announced.
Terrance LeGall, 64, of Linden, New Jersey, is charged by indictment with 11 counts of aiding and abetting the preparation of a false tax return and eight counts of tax evasion for failure to file personal and corporate income tax returns. LeGall is scheduled to make his initial appearance 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:
Since 2009, LeGall was the sole operator of LeGall Group Inc. (LGI), a tax return preparation business in Union County, New Jersey. From 2013 to 2017, LeGall prepared false tax returns for his clients. He allegedly included fake charitable contributions, unreimbursed business expenses and business losses that he knew his clients had not actually incurred. These returns resulted in a reduction in his clients’ tax liability and fraudulent refunds from the IRS. LeGall acted as a “ghost preparer,” in that although he prepared income tax returns for his clients, he did not identify himself anywhere on the returns as a preparer, and electronically filed the returns in a manner that made it look like the returns had been filed by the taxpayers. LeGall also evaded the assessment of federal taxes in excess of $600,000 by willfully failing to file personal and corporate tax returns for the tax years 2012 through 2015. LeGall attempted to hide his source of income by depositing the proceeds of his tax preparation business into bank accounts belonging to his family members.
Each count of aiding and abetting in the preparation of false tax returns carries a maximum prison sentence of three years and a $250,000 fine. Each count of failure to file personal and corporate income tax returns carries a maximum prison sentence of five years and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Sammi Malek of the Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: John Yauch Esq. Assistant Federal Public Defender, Newark
Head of Newark Drug Trafficking Organization Sentenced to 15 Years in Prison for Conspiracy to Distribute Heroin, Fentanyl, and Crack Cocaine and Possession of A FirearmRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 180 months in prison for his role in a conspiracy to distribute over a kilogram of heroin, 150 grams of fentanyl, and 240 grams of crack cocaine as well as possession of a firearm by a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Ahmad Johnson, a/k/a “OC,” 38, previously pleaded guilty before U.S. District Judge Kevin McNulty to a superseding information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin, 28 grams of cocaine base, and 40 grams of fentanyl, and one count of being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:
From September 2016 through June 2017, Johnson and other members of the Johnson Drug Trafficking Organization engaged in a heroin distribution conspiracy that operated in and around Newark.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement officers learned that Johnson was a leader of the conspiracy and was responsible for obtaining wholesale amounts of narcotics, including heroin and cocaine, and processing and packaging the narcotics for sale in the Newark area. At times, after the narcotics were processed and packaged for sale, Johnson found users to “test” the narcotics to evaluate the quality, potency, and danger for broader distribution. After the narcotics were tested, members of the Johnson DTO sold the narcotics to other distributors and to users.
In addition to the prison term, Judge McNulty sentenced Johnson to five years of supervised release.
U.S. Attorney Carpenito credited special agents and officers with Drug Enforcement Administration’ High-Intensity Drug Trafficking Area (HIDTA) Group 1, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office, Economic Crimes Division in Newark.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Dennis S. Cleary Esq., West Orange, New Jersey
Essex County, New Jersey, Man Admits Conspiracy to Commit Healthcare FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in a conspiracy to submit false and fraudulent insurance claims for out-of-network chiropractic services that were never performed, U.S. Attorney Craig Carpenito announced.
Keasam Johnson, 35, of East Orange, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of conspiracy to commit healthcare fraud.
According to the documents filed in this case and statements made in court:
Johnson worked as a supervisor in the New Jersey office of a large telecommunications company until August 2017. A co-defendant Tiffany Marsh, 41, of West Orange, was a medical biller and the owner and operator of TJB Medical Billing Consultants LLC, through which she provided medical billing to health care providers, including two New Jersey chiropractors. Marsh and Johonson were charged June 26, 2018 with one count each of conspiracy to commit healthcare fraud.
Johnson and other conspirators submitted false and fraudulent insurance claims for out-of-network chiropractic services that were never performed. Marsh allegedly used her access to the billing software at the chiropractor offices to generate the fraudulent claims. Johnson recruited telecommunications company employees to participate in the scheme. The fraudulent claims resulted in the payment of reimbursements to conspirators in exchange for a portion of the proceeds.
The charge of conspiracy to commit health care fraud carries a maximum sentence of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 24, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office’s OCDETF/Narcotics Unit.
The pending charge and allegations against Marsh are merely accusations, and she is presumed innocent unless and until proven guilty.
Cumberland County, New Jersey, Man Convicted of Three Armed Bank Robberies and Related ChargesRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man was convicted today for his role in three armed bank robberies and related charges, U.S. Attorney Craig Carpenito announced.
Stephan Byrd, 44, of Vineland, New Jersey, was convicted following a two-week trial before U.S. District Judge Robert B. Kugler in Camden federal court on three counts of bank robbery; two counts of using and brandishing a firearm in furtherance of bank robbery; one count of using and discharging a firearm in furtherance of bank robbery; and one count of being a felon in possession of a firearm. The jury deliberated for approximately six hours before returning the verdicts.
According to documents filed in this case and the evidence at trial:
On June 7, 2014, Byrd entered the Ocean City Home Bank in Mays Landing, New Jersey, armed with a gun. He approached the bank teller counter, pointed his gun at bank employees, warned them not to push the panic alarm button, and ultimately stole $5,576. Byrd fled the scene through the nearby woods.
On July 19, 2014, Byrd entered the Newfield National Bank in Vineland, New Jersey, with Charles Sanders, who pleaded guilty previously to his role in the crime. Both Byrd and Sanders were armed with guns and covered up from head to toe. Sanders remained in the lobby of the bank while Byrd vaulted the bank counters to gain access to the bank tellers and cash drawers. Byrd pointed his gun at various bank employees and stole $10,297 from the bank drawers, after which he and Sanders fled through the nearby woods. The money contained dye packs, which exploded during Byrd’s and Sanders’ escape.
On July 21, 2014, Byrd entered the Newfield National Bank in Malaga, New Jersey, armed with a gun and covered up from head to toe. Byrd vaulted the bank counters to gain access to the teller drawers, pointed his gun at the bank tellers, stole $6,139, and ran into the nearby woods. After Byrd ran into the woods, a bank customer attempted to follow him in order to get identifying information. When Byrd noticed that he was being followed, he pointed his gun at the customer and fired a shot in the customer’s direction. Byrd then fled the scene.
Based on today’s convictions, Byrd faces a combined mandatory minimum sentence of 24 years in prison and a potential maximum sentence of life in prison. Each of the seven counts is also punishable by a fine of up to $250,000. Sentencing is scheduled for July 18, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; officers with the Vineland Police Department, under the direction of Chief Rudy Beu; and officers with the Hamilton Township Police Department, under the direction of Chief Stacy V. Tappeiner, with the investigation leading to today’s guilty verdict. U.S. Attorney Carpenito also thanked the officers of the North Brunswick Police Department, the FBI’s Philadelphia Division, and forensic scientists with N.J. State Police Office of Forensic Sciences and Ballistics Laboratory for their assistance in the case.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Jason Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Troy Archie Esq., Camden
Bergen County, New Jersey, Real Estate Developer Admits Conspiracy to Deceive Mariner’s Bank and FDICRead the Press Release
NEWARK, N.J. – An Englewood, New Jersey-based real estate developer today admitted his role in a conspiracy to illegally obtain nominee loans from Mariner’s Bank, U.S. Attorney Craig Carpenito announced.
James Demetrakis, 79, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of conspiracy to make false entries to deceive a financial institution and the FDIC.
According to documents filed in this case, a related case against Fred Daibes and Michael McManus, and statements made in court:
Demetrakis’ longtime business partner, Daibes, was the founder and, until April 2011, chairman of the board of directors, at Mariner’s Bank. The bank was subject to federal banking regulations that placed limits on the amount of money that the bank could lend to a single borrower. Between January 2008 and December 2013, Demetrakis conspired with Daibes and others to orchestrate a nominee loan scheme designed to circumvent the lending limits by ensuring that millions of dollars in loans flowed from Mariner’s Bank to the nominees to Daibes, while concealing from both Mariner’s Bank and the FDIC Daibes’ beneficial interests in those loans.
Demetrakis served as the nominee for a $1.8 million line of credit and recruited two of his relatives to serve as nominees for a $2.625 million loan. After receiving the proceeds of the loans, Demetrakis and the other nominees distributed these monies to Daibes. Daibes and the nominees, including Demetrakis, failed to disclose to Mariner’s Bank that Daibes arranged to make both the interest and principal payments on the loans.
The nominee loans became delinquent on certain occasions when Daibes failed to give the nominees, including Demetrakis, the funds to make the monthly payments. After the FDIC began an investigation into one of the loans, Daibes, McManus, and others created and submitted to the FDIC a false, backdated sales contract to make it appear as though Demetrakis had obtained the $1.8 million loan from Mariner’s Bank in order to pay Daibes for his interest in a real estate venture.
Daibes and McManus were indicted Oct. 30, 2018, on conspiracy and bank fraud charges, which remain pending. The charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.
The conspiracy charge to which Demetrakis pleaded guilty carries a statutory maximum of five years in prison and a maximum fine of $250,000. Sentencing is scheduled for July 23, 2019.
U.S. Attorney Carpenito credited special agents from the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney; special agents of the FDIC, Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Edward Plaza Esq., Little Silver, New Jersey
Atlantic County, New Jersey, Man Admits Role in Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted defrauding New Jersey state health benefits programs out of millions of dollars by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced.
Edward Sutor Jr., 36, of Linwood, New Jersey, a Ventnor City firefighter, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Sutor was one of the owners of a company formed to market prescription compounded medications, referred to as “Company 1.” From May 2015 through February 2016, Sutor and others associated with the company persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications.
The conspirators learned that certain compounded medication prescriptions – including pain, scar, and antifungal creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply. The conspirators also learned that the N.J. State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, would cover compounded medication prescriptions.
Sutor and his conspirators entered into an agreement under which Company 1 would receive a percentage of the amounts paid to compounding pharmacies for prescriptions secured by Sutor and his conspirators. Sutor and his conspirators then recruited public employees, offered them hundreds of dollars per month, and persuaded them to agree to obtain prescription compounded medications without any examination by a medical professional to indicate that the medications were medically necessary. Sutor would obtain insurance and personal information from the public employees and give that information to conspirators. Company 1 would receive a percentage of the amounts paid on these fraudulent prescriptions, which Sutor and others would share.
According to the information, Sutor and his conspirators caused New Jersey to pay over $2 million in fraudulent claims for compounded medications for public employees.
Sutor received $335,552 in gross proceeds for his role in the scheme. As part of his plea agreement, Sutor must forfeit these criminal proceeds and pay restitution of at least $2,682,708. He faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 17, 2019.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Alyson M. Oswald of the U.S. Attorney’s Office in Camden.
Defense counsel: John Zarych Esq., Northfield, New Jersey
Essex County, New Jersey, Man Admits Stealing $1.9 Million in Food Stamp BenefitsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in exchanging $1.9 million in Supplemental Nutrition Assistance Program (SNAP) benefits for cash, U.S. Attorney Craig Carpenito announced.
Jose Perdomo, 34, of Newark, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of SNAP fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity.
According to documents filed in this case and statements made in court:
From January 2017 to September 2018, Perdomo was an employee of M&R Supermarket, a small grocery store in Newark. His father, Juan Perdomo, ran the everyday operation of the business since M&R’s opening in 2015.
M&R was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp Program. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits but may not exchange SNAP benefits for cash.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, to use to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in 11 “purchases” at M&R Supermarket, where Jose Perdomo and Juan Perdomo exchanged money for SNAP benefits.
The bank account of M&R Supermarket, where the store receives SNAP payments, showed numerous cash withdrawals in excess of $10,000 by Juan Perdomo and Maria Rodriguez, as well as several cashed checks in excess of $10,000 by Jose Perdomo.
In September 2018, Jose Perdomo and Juan Perdomo and were charged by complaint with SNAP benefit fraud and conspiracy to commit wire fraud. The Perdomos and Rodriguez – Juan’s wife and Jose’s mother – were also charged with money laundering conspiracy. The charges against Juan Perdomo and Rodriguez remain pending, and they are merely accusations; the defendants are presumed innocent unless and until proven guilty.
The count of SNAP benefit fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss. The count of engaging in monetary transactions in property derived from specified unlawful activity carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the value of the property involved in the transaction. Sentencing is scheduled for Aug. 5, 2019.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael, and IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Perry Farhat of the U.S. Attorney’s Office Criminal Division in Newark.
Passaic County, New Jersey, Couple Admit Roles in Illegal Food Stamps SchemeRead the Press Release
TRENTON, N.J. – A Passaic County, New Jersey, couple admitted today that they took part in a food stamps fraud scheme, U.S. Attorney Craig Carpenito announced.
Ibrahim Zughbi, 65, and his wife, Miriam Zughbi, 61, of Wayne, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court. Ibrahim Zughbi pleaded guilty to an information charging him with Supplemental Nutrition Assistance Program (SNAP) – formerly known as the Food Stamp Program – benefit fraud and money laundering. Miriam Zughbi pleaded guilty to an information charging her with conspiracy to defraud the United States through SNAP benefit fraud.
According to documents filed in these cases and statements made in court:
From January 2014 to January 2018, the defendants owned and worked at Jamaica Meat Market, a medium-size grocery store in Paterson, New Jersey. Ibrahim Zughbi had been previously barred from participating in the SNAP program for allowing benefits to be exchanged for cash in a prior store that he owned. Ibrahim Zughbi listed a nominee as the store’s owner in order for Jamaica Meat Market to participate in the program.
Jamaica Meat Market was authorized to accept benefits provided by SNAP, which is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits. They may not exchange SNAP benefits for cash. The Zughbis exchanged more than $4.5 million in SNAP benefits for cash between 2014 and 2018.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the amount is credited to the retailer’s designated bank account.
To conceal the proceeds of the SNAP benefit fraud, Ibrahim Zughbi wrote inflated checks from the Jamaica Meat Market account containing the SNAP fraud proceeds to a supplier, and then received funds back in cash from the supplier. Zughbi also issued checks to family members with no apparent connection to Jamaica Meat Market.
Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of a confidential source who, at the direction of law enforcement, engaged in 16 “purchases” at Jamaica Meat Market where one or both defendants exchanged money for SNAP benefits.
The SNAP fraud and money laundering charges each carry a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. The conspiracy charge carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 17, 2019.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture –Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, and 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 guilty pleas. He also thanked the Passaic County Prosecutor’s Office, the Wayne Township Police Department and the Paterson Police Department for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel:
Ibrahim Zughbi: Alan Zegas Esq., Summit, New Jersey
Miriam Zughbi: Sean McGovern Esq., NewarkMonmouth County, New Jersey, Man Sentenced to Five Years in Prison for Receiving Child PornographyRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 60 months in prison for receiving child pornography, U.S. Attorney Craig Carpenito announced.
Jason DiSanto, 39, of Ocean Township, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an indictment charging him with receiving child pornography. Judge Martinotti imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
A law enforcement investigation into DiSanto’s online activities began in September 2016 when a video of child sexual abuse was shared from a web address registered to his residence. On Nov. 5, 2017, DiSanto was met by law enforcement upon re-entering the United States from an international trip. Law enforcement examined various electronic devices that DiSanto was carrying and located a video of child sexual abuse, as well as a link to additional items of child pornography, on his laptop computer. DiSanto previously acknowledged downloading the video, which he knew constituted child pornography, while in New Jersey.
In addition to the prison term, Judge Martinotti also sentenced DiSanto to five years of supervised release. Additionally, DiSanto will be required to register as a sex offender.U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation.
The government is represented by Special Assistant United States Attorney Shawn Barnes of the U.S. Attorney’s OCDTEF/Narcotics Unit in Newark.
Defense counsel: David T. Schlendorf Esq., Toms River, New Jersey
Former Warren County, New Jersey, Man Convicted of Receiving and Possessing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A former Warren County, New Jersey, man has been convicted of receiving and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced today.
Derrick Baer, 36, formerly of Pohatcong, New Jersey, was convicted April 9, 2019, of one count of receiving child pornography and one count of possessing child pornography following a six-day trial before U.S. District Judge Claire C. Cecchi in Newark federal court.
According to documents filed in this case and the evidence at trial:
In May 2010, in connection with an investigation into a suspicious death at Baer’s residence, law enforcement obtained Baer’s consent to seize computer equipment from the residence. That equipment contained at least 348 images and 33 video files of child sexual abuse.
The receipt of child pornography count is punishable by a maximum potential penalty of 20 years in prison, a minimum penalty of five years in prison, and a fine of $250,000. The possession count is punishable by a maximum potential sentence of 10 years in prison. Sentencing is scheduled for July 23, 2019.
U.S. Attorney Carpenito credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Pohatcong Township Police Department, under the direction of Chief Scott Robb; the N.J. Regional Computer Forensics Lab; and the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorneys David W. Feder and Lyndsay Ruotolo of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Michael N. Pedicini Esq., Chatham, New Jersey
California Man Charged with Conspiracy to Possess with Intent to Distribute over 53 Kilograms of Fentanyl and CocaineRead the Press Release
NEWARK, N.J. – A California man was arrested and charged today in connection with his role in driving into New Jersey with a tractor trailer containing suspected fentanyl and cocaine, U.S. Attorney Craig Carpenito; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration; 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, announced.
Jose Santos Garcia Guzman, 43, is charged by complaint with one count of conspiracy to possess with intent to distribute approximately 53 kilograms of suspected fentanyl and cocaine. He is scheduled to appear 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:
Law enforcement officers arrested Guzman today in Middlesex County, New Jersey. During an investigation into a drug trafficking organization, law enforcement officers learned that the organization was shipping narcotics from California via tractor trailer. Officers conducted surveillance of a tractor trailer driven by Guzman. While he was in Keasbey, New Jersey, the truck he was driving was stopped by law enforcement officers.
Guzman provided both oral and written consent to search the tractor trailer, in which law enforcement officers found the suspected fentanyl and cocaine. Law enforcement subsequently field tested the substances; approximately 46 kilograms tested positive for the presence of cocaine, and approximately seven kilograms tested positive for the presence of fentanyl.
The count of conspiracy to possess with intent to distribute fentanyl and cocaine carry a mandatory minimum penalty of 10 years in prison, a maximum of life in prison, and a $10 million fine.U.S. Attorney Carpenito credited the Drug Enforcement Administration’s New York Division, under the direction of Special Agent in Charge Donovan, with the investigation. Today’s arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force (OCDETF) and the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA, the New York City Police Department, the New York State Police, Immigration and Customs Enforcement – Homeland Security Investigations, the U. S. Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, the U.S. Marshals Service, New York National Guard, the Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision.
U.S. Attorney Carpenito also thanked New York City’s Special Narcotics Prosecutor Bridget G. Brennan for assisting in the investigation.
The government is represented by Assistant U.S. Attorney Meredith Williams, Chief of the U.S. Attorney’s Office OCDETF/Narcotics Unit.Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark
Seven People Charged in New Jersey Massive Health Care Fraud Scheme Involving Telemedicine and Durable Medical Equipment (DME)Read the Press Release
Hundreds of Thousands of Elderly and/or Disabled Patients Nationwide and Abroad Lured into Criminal Scheme to Bilk Medicare
NEWARK, N.J. – One of the largest health care fraud schemes investigated by the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and prosecuted by the Department of Justice resulted in charges against 24 defendants – seven of whom were charged in the District of New Jersey – including the CEOs, COOs and others associated with five telemedicine companies, the owners of dozens of durable medical equipment (DME) companies and three licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $1.2 billion in loss, as well as the execution of over 80 search warrants in 17 federal districts. In addition, the Center for Medicare Services, Center for Program Integrity (CMS/CPI) announced today that it took adverse administrative action against 130 DME companies that had submitted over $1.7 billion in claims and were paid over $900 million.
U.S. Attorney Craig Carpenito of the District of New Jersey, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Sherri A. Lydon of the District of South Carolina, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division, Deputy Inspector General for Investigations Gary Cantrell of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chief Don Fort of the IRS Criminal Investigation (CI) and Deputy Administrator and Director of CPI Alec Alexander of the CMS/CPI made the announcement.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Districts of New Jersey, South Carolina and the Middle District of Florida. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, IRS - Criminal Investigation and other federal law enforcement agencies participated in the operation.
The charges announced today target an alleged scheme involving the payment of illegal kickbacks and bribes by DME companies in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for back, shoulder, wrist and knee braces that are medically unnecessary. Certain of the defendants allegedly controlled an international telemarketing network that lured over hundreds of thousands of elderly and/or disabled patients into a criminal scheme that crossed borders, involving call centers in the Philippines and throughout Latin America. The defendants allegedly paid doctors to prescribe DME either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen. The proceeds of the fraudulent scheme were allegedly laundered through international shell corporations and used to purchase exotic automobiles, yachts and luxury real estate in the United States and abroad.
According to allegations in court documents, some of the defendants obtained patients for the scheme by using an international call center that advertised to Medicare beneficiaries and “up-sold” the beneficiaries to get them to accept numerous “free or low-cost” DME braces, regardless of medical necessity. The international call center allegedly paid illegal kickbacks and bribes to telemedicine companies to obtain DME orders for these Medicare beneficiaries. The telemedicine companies then allegedly paid physicians to write medically unnecessary DME orders. Finally, the international call center sold the DME orders that it obtained from the telemedicine companies to DME companies, which fraudulently billed Medicare. Collectively, the CEOs, COOs, executives, business owners and medical professionals involved in the conspiracy are accused of causing over $1 billion in loss.
“The indictments we are unsealing today charge the defendants with running a complex, multilayered scheme to defraud our Medicare system and avoid detection by government regulators,” said U.S. Attorney Craig Carpenito. “The defendants took advantage of unwitting patients who were simply trying to get relief from their health concerns. Instead, the defendants preyed upon their weakened state and pushed millions of dollars’ worth of unnecessary medical devices, which Medicare paid for, and then set up an elaborate system for laundering their ill-gotten proceeds. We are proud to join our law enforcement partners in New Jersey and around the country to put a stop to this unscrupulous criminal activity.”
“These defendants — who range from corporate executives to medical professionals — allegedly participated in an expansive and sophisticated fraud to exploit telemedicine technology meant for patients otherwise unable to access health care,” said Assistant Attorney General Benczkowski. “This Department of Justice will not tolerate medical professionals and executives who look to line their pockets by cheating our health care programs. I commend the Criminal Division prosecutors and our partners from U.S. Attorney’s Offices and law enforcement agencies across the country for their unrelenting efforts to stop this alleged fraud before more money was stolen from American taxpayers.”
“Today, one of the largest health care fraud schemes in U.S. history came to an end thanks to close collaboration and coordination between the FBI and partners including HHS-OIG and IRS-CI,” said FBI Assistant Director Robert Johnson. “Health care fraud causes billions of dollars in losses, it deprives real patients of the critical health care services they need, and it can endanger the lives of real patients so individuals like those arrested today can profit from their criminal activity. Through today’s coordinated national effort, we put an end to this egregious and costly health care fraud scheme, and the public can rest assured the FBI will continue to make health care fraud investigations a top priority.”
“Our law enforcement officers are focused on preventing and uprooting health care fraud schemes like those alleged today,” said HHS-OIG Deputy Inspector General for Investigations Gary Cantrell. “These schemes divert money from taxpayer-funded federal health care programs into the hands of criminals. Working closely with our law enforcement partners, our agency will continue to investigate and disrupt attempts to undermine Medicare and target beneficiaries.”
“The breadth of this nationwide conspiracy should be frightening to all who rely on some form of healthcare,” said IRS-CI Chief Don Fort. “The conspiracy described in this indictment was not perpetrated by one individual. Rather, it details broad corruption, massive amounts of greed, and systemic flaws in our healthcare system that were exploited by the defendants. We all suffer when schemes like this go undiscovered and I’m proud of the work our agents did in working with our partners to uncover this complex scheme.”
“The Centers for Medicare & Medicaid Services (CMS) Center for Program Integrity (CPI) is proud to work very closely everyday with our law enforcement partners to stop exploitation of vulnerable patients and misuse of taxpayer dollars,” said Deputy Administrator and CPI Director Alec Alexander. “In this case CMS has taken swift administrative action and has suspended payments to 130 distinct providers thereby likely preventing billions of additional dollars in losses. CMS remains committed to protecting the millions of beneficiaries we are honored to serve and to preventing fraud of all sorts in the Medicare and Medicaid programs.”
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
In the District of New Jersey, Strike Force Attorneys brought charges against Creaghan Harry, 51, of Highland Beach, Florida; Lester Stockett, 51, of Deefield Beach, Florida; and Elliot Loewenstern, 56, of Boca Raton, Florida; the owner, CEO and VP of marketing, respectively, of purported call centers and telemedicine companies, for their alleged participation in a $454 million illegal health care kickback and international money laundering scheme related to the solicitation of illegal kickbacks and bribes in exchange for the referral of DME orders to DME providers. In addition, Joseph DeCoroso, M.D., 62, of Toms River, New Jersey, was charged in a $13 million conspiracy to commit health care fraud and separate charges of health care fraud for writing medically unnecessary orders for DME, in many instances without ever speaking to the patients, while working for two telemedicine companies. The cases are being prosecuted by Fraud Section Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson.
In addition to the Strike Force Prosecutions, the U.S. Attorney’s Office for the District of New Jersey brought charges against Neal Williamsky 59, of Marlboro, New Jersey, and Nadia Levit, 39, of Englishtown, New Jersey, owners of approximately 25 DME companies, for their alleged participation in a $150 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. Albert Davydov, 26, of Rego Park, New York, was also charged for his alleged participation in a $35 million scheme related to the payment of kickbacks and bribes in exchange for medically unnecessary DME orders. The cases are being prosecuted by Erica Liu, Chief of the Opioids Unit, and Assistant U.S. Attorneys Brian Urbano and Stephen Ferketic of the District of New Jersey.
The charges against the defendants are merely allegations, and they are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and DME marketing schemes – including Video Doctor USA, AffordADoc, Web Doctors Plus, Integrated Support Plus and First Care MD – should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.
Camden County, New Jersey, Man and Philadelphia Man Admit Roles in Conspiracy to Distribute OxycodoneRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man and a Philadelphia man today admitted their respective roles in conspiring to distribute oxycodone, U.S. Attorney Craig Carpenito announced.
Daniel Watson, 40, of Bellmawr, New Jersey, and Prussia Hing, 36, of Philadelphia, pleaded guilty before U.S. District Court Judge Jerome B. Simandle in Camden federal court to separate informations charging them each with one count of conspiracy to distribute and possess with intent to distribute oxycodone. Watson and Hing were previously charged in connection with one of the largest national healthcare fraud and opioid enforcement actions ever taken by the U.S. Department of Justice.
According to documents filed in this case and statements made in court:
From December 2017 through June 26, 2018, Watson and Hing conspired with each other and others to distribute unadulterated oxycodone and pressed pills containing oxycodone and hydrocodone, codeine, and methylphenidate. Hing was a source of supply; Watson made eight sales to an undercover officer and a confidential informant, totaling 1,080 oxycodone pills. The final three sales occurred in the vicinity of a Philadelphia hospital, where a conspirator worked as an anesthesiology technologist.
The drug trafficking conspiracy to which Watson and Hing pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of up to $1 million. Sentencing for both defendants is scheduled for July 17, 2019.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Christina O. Hud of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Watson: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Hing: Gregory Pagano Esq., Philadelphia
Middlesex County, New Jersey, Man Admits Attempting to Obtain United States Citizenship by FraudRead the Press Release
NEWARK, N.J. – An Iselin, New Jersey, man today admitted that he attempted to fraudulently obtain United States citizenship, U.S. Attorney Craig Carpenito announced.
Pal Singh, a/k/a “Surinder Singh,” a/k/a “Harpal Singh,” 67, an Indian national, pleaded guilty before U.S. District Court Judge Esther Salas to an information charging him with one count of attempted naturalization fraud.
According to documents filed in this case and statements made in court:
In March 1992, Singh applied for admission into the United States as a tourist at Los Angeles International Airport by presenting an Indian passport that purported to contain an entry visa to the United States. Singh was refused admission because the entry visa was deemed fraudulent and he was detained pending exclusion proceedings. Singh thereafter applied for asylum in the United States in his true name, and he was released on bond while his asylum claim was evaluated. In June 1993, an immigration judge in New York denied Singh’s asylum application and Singh was ordered to surrender for deportation. Singh failed to appear for his deportation as ordered.
In August 1995, Singh fraudulently applied for asylum in the United States under the identity of “Harpal Singh,” and claimed that he had entered the United States by crossing the United States-Mexico border in December 1994. Singh did not disclose that he had previously been denied asylum under his true identity. In March 1996, an immigration judge denied Singh’s second asylum application and he was again ordered to surrender for deportation. Singh again failed to appear for his deportation.
In May 1996, Singh fraudulently applied for asylum in the United States under the identity of “Surinder Singh,” claiming that he had entered the United States by crossing the United States-Mexico border in November 1995. Singh did not disclose that he had previously been denied asylum under his true identity and under the identity of Harpal Singh. This application further claimed that Surinder Singh had been beaten and tortured in India in 1994 despite the fact that Singh had been living in the United States at the time under his true identity. In June 1996, the Immigration and Naturalization Service granted Singh’s third asylum application in the name of “Surinder Singh” based on fraudulent information provided by Singh.
In December 2015, Singh filed an Application for Naturalization, Form 400-N, with the U.S. Department of Homeland Security under the identity of Surinder Singh. He falsely answered questions relating to his identity, his prior immigration applications, and his immigration status, among others. In May 2018, Singh appeared in the identity of Surinder Singh before an officer of the Department of Homeland Security in Newark for an interview, which was conducted under oath and video-recorded. Singh was also assisted by counsel and by a Punjabi interpreter. Singh falsely answered additional questions relating to his identity, his prior immigration applications, and his immigration status, among others.
A qualified fingerprint examiner from the U.S. Department of Homeland Security’s Biometric Support Center has compared fingerprints taken of Singh when he initially attempted to enter the United States in March 1992 to fingerprints taken in the names of Harpal Singh and Surinder Singh in connection with the above-described immigration proceedings. The fingerprint examiner concluded that the same individual made all of the fingerprints.
The attempted naturalization fraud charge carries a maximum potential sentence of 10 years in prison. Sentencing is scheduled for Aug. 5, 2019.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, 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.
Hudson County, New Jersey, Man Pleads Guilty to Bribing Mail Carriers to Steal Credit CardsRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted his role in a scheme to steal credit cards from the mail, U.S. Attorney Craig Carpenito announced.
Moussa Dagno, 24, of Harrison, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count each of bribery of U.S. Postal Service (USPS) mail carriers and employees, bank fraud and aggravated identity theft. Dagno, who was arrested in February of 2018, remains detained pending his sentencing.
According to documents filed in the case and statements made in court:
Dagno recruited several USPS mail carriers and employees to steal credit cards from the mail in exchange for bribes of $100 per stolen card. Dagno activated the cards under false pretenses, and he and others would use the cards to purchase high-end electronics and clothing at various retail stores throughout New Jersey. At the time of his arrest, law enforcement seized six laptops and a smartphone from Dagno’s residence, all of which had been purchased with credit cards stolen by USPS workers involved in the scheme.
Several of the USPS mail carriers and employees who accepted bribes from Dagno and others have already pleaded guilty to bribery charges and are awaiting sentencing. These individuals include: former mail carriers Zenobia Gilmer, Ayesha Trotz and Kyanne Costley, who had delivery routes in Mt. Arlington, New Jersey, East Orange, New Jersey, and Elizabeth, New Jersey, as well as Jennel Williams, who formerly worked as a clerk in the Main Post Office in Newark. All four admitted to stealing credit cards from the mail and delivering those stolen cards to Dagno or another individual working with Dagno.
The bribery charge to which Dagno pleaded guilty carries a maximum potential penalty of 15 years in prison; the bank fraud charge to which Dagno pleaded guilty carries a maximum penalty of 30 years in prison; and the aggravated identity theft charge to which Dagno plead guilty carries a mandatory sentence of two years in prison, which will be served consecutively to the sentence Dagno receives on the other charges. The bank fraud charges carries a maximum potential fine of $1 million, while the maximum potential fine for both the bribery and aggravated identity theft is $250,000. Sentencing is currently scheduled for July 17, 2019.
U.S. Attorney Carpenito credited special agents of the USPS - Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Jihee G. Suh of the U.S. Attorney’s Special Prosecutions Division in Newark.
Paterson, New Jersey, Woman Admits Calling in Hoax Bomb Threats to Camden Federal Courthouse and Hughes Justice Complex in TrentonRead the Press Release
CAMDEN, N.J. – A Paterson, New Jersey, woman today admitted calling in hoax bomb threats to the federal courthouse in Camden and the Hughes Justice Complex in Trenton, New Jersey, U.S. Attorney Craig Carpenito announced.
Amdije Toska, 40, pleaded guilty before Senior U.S. District Judge Robert B. Kugler in Camden federal court to an information charging her with one count of hoax bomb threats.
According to documents filed in this case and statements made in court:
On the morning of Jan. 12, 2018, Toska called the Clerk’s Office of the Camden federal courthouse and stated there was a bomb in the building. The Clerk’s Office employee who answered the phone recognized Toska as a civil litigant with a case assigned to a U.S. District Court judge, who had previously issued an order directing Toska to cease all communications with the Clerk’s Office and permitting the Clerk’s Office to disconnect future calls from Toska.
Later than morning, Toska called back and said, “There’s a bomb in the building, run.” Bomb detecting K-9 units from the Camden County Police, U.S. Park Service (Philadelphia Office) and Camden County Sheriff’s Office responded to the federal courthouse.
That afternoon, Toska again called another bomb threat into the Clerk’s Office. When the employee who answered the phone asked Toska why she was making bomb threats, Toska responded, “The judge is torturing me, so I am torturing you, an eye for an eye.”
Meanwhile, earlier that same morning, Toska called the Hughes Justice Complex and stated that there was a bomb in the building. As a result of this call, officials at the Hughes Justice Complex evacuated the building.
The following post on “Amie Toska’s” Facebook account appeared that day: “I have had enough of being ignored I am prank calling the entire world.” Also, a Twitter account believed to be associated with Toska posted a “reply” stating, “I just called Doj in DC, Camden courts and Njtpd lawyer and told them there’s a bomb in the building then I hung up…There is no bomb but I will continue to scare them until I am heard…I want JUSTICE DAMMIT.” Another “reply” stated, “I’m not gonna stop calling the courts/doj/or njt lawyer and telling them there’s a bomb in the building. I will make them suffer by getting them scared. Let them shit in their pants for days. Idgaf….I want JUSTICE.”
The count of making hoax bomb threats is punishable by a maximum of five years in prison and a fine of $250,000. Sentencing is scheduled for July 18, 2019.
U.S. Attorney Carpenito credited the U.S. Marshal Service, under the direction of United States Marshal Juan Mattos Jr., District of New Jersey, and special agents of the FBI, South Jersey Resident Agency, Philadelphia Division, under the direction of Special Agent in Charge Michael T. Harpster, with the investigation leading to today’s guilty plea.
The government is represented by Deputy U.S. Attorney Matthew J. Skahill and Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office in Camden, New Jersey.
Newark Man Convicted of Possession of Heroin and FirearmRead the Press Release
NEWARK, N.J. – A Newark man previously convicted of four felonies in state court and a federal drug distribution crime was convicted by a federal jury today of possession with the intent to distribute heroin, possession of a handgun while committing a drug crime, and being a convicted felon in possession of a handgun, U.S. Attorney Craig Carpenito announced.
Jihad Garrett, 35, was convicted after a four-day trial before U.S. District Judge William J. Martini in Newark federal court. The jury deliberated for two and a half hours before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
On Feb. 23, 2018, Newark police officers saw Garrett in a vehicle that was similar to a vehicle wanted in a series of carjacking and shooting incidents over the previous month. When the police officers approached the car, Garrett told them, among other things, that he also was a police officer. While talking with Garrett, the police officers saw that Garrett had over $2,500 in cash rolled up in his breast pockets. After a canine unit indicated that there were drugs in the car, the car was towed and the police obtained a search warrant to conduct a further search of the car. The police found over 500 individual doses of heroin packaged for street-level distribution and a .40 caliber handgun in the front seat area of the car.
Garrett had previously been convicted of four drug felonies in Essex and Union counties. In 2011, Garrett was sentenced to 74 months in federal prison after being convicted for distribution of heroin.
The defendant is facing a maximum potential penalty of life in prison and a fine of up to $250,000. Sentencing is scheduled for Aug. 15, 2019.
U.S. Attorney Carpenito credited law enforcement officers of the Newark Police Department, under the leadership of Public Safety Director Anthony Ambrose; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Bureau of Alcohol Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie Patterson; and the Essex County Sheriff’s Department, under the direction of Sheriff Armando Fontoura, with the investigation leading to today’s conviction.
The government was represented at trial by Senior Trial Counsel Robert Frazer and Assistant U.S. Attorney Desiree Latzer of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
New Mexico Man Sentenced to Four Years in Prison for Role in Multi-State Dog Fighting ConspiracyRead the Press Release
Robert Arellano, 65, of Albuquerque, New Mexico, was sentenced today in federal court in Trenton, New Jersey, to a total of four years in prison for his role in a multi-state dog fighting conspiracy. Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Craig Carpenito of the District of New Jersey made the announcement.
A jury previously convicted Arellano of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, and two felony counts of selling, transporting, and delivering dogs intended for use in an animal fighting venture. Arellano also pleaded guilty to three felony counts of possessing a dog intended for use in an animal fighting venture in a related federal case in New Mexico that was consolidated with his New Jersey case for sentencing. Judge Peter G. Sheridan presided over the trial and imposed the sentence, which includes three years’ supervised release following Arellano’s term of imprisonment.
Three other defendants were convicted as part of the same jury trial; two defendants will be sentenced on May 29, 2019, and the third defendant will be sentenced on May 30, 2019.
“Animal fighting for sport is not an activity a civilized country tolerates,” said Assistant Attorney General Clark. “Our Division will continue to pursue and prosecute illegal animal fighting ventures across the country.”
“Dog fighting is vicious and cruel. Beyond the needless suffering it inflicts on animals, it exacts a toll on local animal shelters, humane organizations, and the taxpayers of New Jersey,” U.S. Attorney Carpenito said. “As today’s sentencing shows, if you fight dogs in New Jersey, you will face prosecution and imprisonment.”
“Dogfighting for entertainment and profit is the organized and heinous business of breeding and conditioning dogs to fight each other until one dog kills the other,” said U.S. Attorney John C. Anderson for the District of New Mexico. “Today’s sentencing brings to an end Mr. Arellano’s 30 years in this unconscionable business, and hopefully will deter others who seek to profit from forcing animals fight to the death. In New Mexico, we will continue to seek out and punish those who exploit and abuse animals.”
According to trial evidence and court documents filed in connection with the cases, the defendant and his associates regularly fought dogs – including to the death – and repeatedly trafficked in dogs with other dog fighters across several states for the purpose of dog fighting. Arellano and the other defendants also maintained significant numbers of fighting dogs and substantial dog fighting equipment, such as dog treadmills, intravenous drug bags and lines, “breeding stands” used to immobilize female dogs, and chains weighing up to several pounds per linear foot. A defendant who pleaded guilty to charges in a related case admitted that his dog died in his car on the way home after a dog fight. Evidence at trial showed that dog deaths from fighting were a common outcome. Another defendant convicted at trial attempted to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects.
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” said Special Agent in Charge Bethanne M. Dinkins for U.S. Department of Agriculture’s Office of Inspector General. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
“Dog fighting, far from being any kind of ‘sport’, shows a complete disregard for animals and is both despicable and cruel,” said Brian Michael, Special Agent in Charge, Homeland Security Investigations, Newark. “HSI will continue to cooperate with our local, state and national partners, as happened here, to investigate such crimes so the perpetrators can be prosecuted to the fullest extent of the law.”
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, eleven defendants from five states have been convicted and sentenced to a total of 164 months in prison as part of Operation Grand Champion. Additionally, 113 dogs have been rescued, and either surrendered or forfeited to the government. The government is represented by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section, and Assistant U.S. Attorney Kathleen O’Leary. The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.
New Mexico Man Sentenced to Four Years in Prison for Role in Multi-State Dog Fighting ConspiracyRead the Press Release
TRENTON, N.J. – A New Mexico man was sentenced today to 48 months in prison for his role in a multi-state dog fighting conspiracy, U.S. Attorney Craig Carpenito of the District of New Jersey and Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division announced.
Robert Arellano, 65, of Albuquerque, New Mexico, was convicted Oct. 16, 2018, of one felony count of conspiracy to violate the animal fighting prohibitions of the federal Animal Welfare Act, and two felony counts of selling, transporting, and delivering dogs intended for use in an animal fighting venture. Arellano also pleaded guilty to three felony counts of possessing a dog intended for use in an animal fighting venture in a related federal case in New Mexico that was consolidated with his New Jersey case for sentencing. Judge Peter G. Sheridan presided over the trial and imposed the sentence today in Trenton federal court.
Three other defendants were convicted as part of the same jury trial; two defendants will be sentenced on May 29, 2019, and the third defendant will be sentenced on May 30, 2019.
“Dog fighting is vicious and cruel,” U.S. Attorney Carpenito said. “Beyond the needless suffering it inflicts on animals, it exacts a toll on local animal shelters, humane organizations, and the taxpayers of New Jersey. As today’s sentencing shows, if you fight dogs in New Jersey, you will face prosecution and imprisonment.”
“Our justice system will not tolerate the torment and death of animals in the fighting ring, as this week’s sentencing proceedings demonstrate,” Assistant Attorney General Clark said. “In our Division, we will continue to place a high priority on pursuing and prosecuting illegal animal fighting ventures across the country.”According to documents filed in this case and related cases and the evidence at trial:
Arellano and his associates regularly fought dogs – including to the death – and repeatedly trafficked in dogs with other dog fighters across several states for the purpose of dog fighting. Arellano and the other defendants also maintained significant numbers of fighting dogs and substantial dog fighting equipment, such as dog treadmills, intravenous drug bags and lines, “breeding stands” used to immobilize female dogs, and chains weighing up to several pounds per linear foot. A defendant who pleaded guilty to charges in a related case admitted that his dog died in his car on the way home after a dog fight. Evidence at trial showed that dog deaths from fighting were a common outcome. Another defendant convicted at trial attempted to set up a “class” for dog fighters to practice administering I.V. fluids to injured dogs, using live dogs as their practice subjects.
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture-Office of Inspector General said. “Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
In addition to the prison term, Judge Sheridan sentenced Arellano to three years of supervised release.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, eleven defendants from five states have been convicted and sentenced to a total of 164 months in prison as part of Operation Grand Champion. Additionally, 113 dogs have been rescued, and either surrendered or forfeited to the government.
The government is represented by Assistant U.S. Attorney Kathleen O’Leary of the District of New Jersey and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section.
The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.
Defense counsel: Samuel Bregman Esq., Albuquerque, New Mexico